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ITEM: |
CONSENT
CALENDAR |
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5. |
CONSIDER
AUTHORIZATION TO CONTRACT WITH HAYASHI & WAYLAND TO CONDUCT ANNUAL
FINANCIAL AUDIT FOR FISCAL YEAR ENDING 2014, 2015, AND 2016 |
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Meeting
Date: |
May 19, 2014 |
Budgeted: |
Yes |
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From: |
David J.
Stoldt, |
Program/ |
Services & Supplies |
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General
Manager |
Line Item No.: |
Professional Services |
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Prepared
By: |
Suresh
Prasad |
Cost Estimate: |
$33,750 for 2014 $35,250 for 2015 $36,750 for 2016 |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on May 12, 2014 and recommended approval. |
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CEQA Compliance: N/A |
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SUMMARY: The District is required to have an audit of its financial records performed on an annual basis. The latest single year agreement with the firm of Hayashi and Wayland (H&W) to conduct the annual audit expired with the completion of the audit for Fiscal Year (FY) 2012-2013. Due to the uniqueness of the District’s operations, including its involvement with the CAWD/PBCSD Wastewater Reclamation Project (Project), there is a high learning curve for auditors to become sufficiently knowledgeable with the District’s financial records to enable them to complete a timely and adequate audit. H&W has also conducted audits of the Project in the past, and although the Project currently utilizes a different auditing firm, H&W’s familiarity with the Project makes it much easier for them to incorporate the Project’s current financial information into the District’s audit report. Based on this familiarity with the operations of the District and the Project, as well as the excellent quality of past audits, District staff requested a new three-year proposal from H&W.
H&W has submitted a three-year
proposal to conduct the audits for fiscal year ending 2014, 2015, and 2016 in
the amount of $105,750. The 2014 price is
the same price as prior year’s audit cost.
The audit proposal also includes costs to cover for newly adapted Group
Auditing Standards, which includes work of component auditors. This new standard covers for the CAWD/PBCSD
Financial Statements as being part of the District’s Financial Statements.
RECOMMENDATION: District staff recommends that the Board authorize the Chief Financial Officer to enter into a three-year agreement with Hayashi & Wayland to conduct the annual audit of the District’s financial records for a total cost of $105,750. The Administrative Committee reviewed this item at its May 12, 2014 meeting and recommended approval by a vote of 2 to 0.
BACKGROUND: Annually,
the District is required to secure an independent audit of its financial
operations in conformance with the requirements set by the Governmental
Accounting Standards Board (GASB) and the California State Controller. Due to the uniqueness of the District’s
operations, including its involvement with the Reclamation Project, the
District has used the accounting firm of H&W to conduct the annual audit of
the District’s financial records since 1989.
The audit for FY 2012-2013 cost $33,750 and concluded the latest single-year
agreement with H&W.
5-A Hayashi & Wayland Audit Proposal
U:\staff\Boardpacket\2014\20140519\ConsentClndr\05\item5.docx