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ITEM: |
CONSENT
CALENDAR |
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2. |
CONSIDER AUTHORIZATION OF
CONTRACT WITH ACCOUNTING FIRM TO CONDUCT ANNUAL AUDITS FOR FISCAL YEARS
2003-04, 2004-05 & 2005-06 |
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Meeting
Date: |
May 17,
2004 |
Budgeted: Yes |
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Staff
Contact: |
Rick
Dickhaut |
Program/Line
Item No.: Services |
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& Supplies –
Professional Services |
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Cost
Estimate: $54,750 (Three |
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Year
Total) |
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General
Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on May 11, 2004
and recommended ______________________________________. |
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CEQA
Compliance: N/A |
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SUMMARY: The District is required by Monterey County to have an annual audit performed by an accounting firm approved by the County Auditor-Controller. The three-year agreement with the firm of Hayashi and Wayland to conduct the annual audit of the District’s financial records expired in Fiscal Year (FY) 2002-03. Hayashi & Wayland has submitted a three-year proposal for the amounts of $17,000 for FY 2003-04, $18,250 for FY 2004-05 and $19,500 for FY 2005-06. If the District were to choose a one-year engagement, the cost for FY 2003-04 would be $18,250.
RECOMMENDATION: District staff recommends that the Board
authorize the General Manager to enter into a three-year agreement with Hayashi
& Wayland, beginning with FY 2003-04, to conduct the annual audit of the
District’s financial records for a total cost of $54,750.
BACKGROUND: The District’s financial operations are sufficiently complex that many accounting firms are not qualified to handle annual audits in conformance with the requirements set by the Governmental Accounting Standards Board (GASB), the Single Audit Act, the Office of the California State Controller and Monterey County. Additionally, for FY 2003-2004 the District audit will have to initiate compliance with GASB 34, which changes the way financial statements are presented. Furthermore, as the issuer of $34 million of public debt for the CAWD/PBCSD Wastewater Reclamation Project, the complexity of the District’s financial operations relating to the project is high and, in many instances, unique. The District has used the accounting firm of Hayashi & Wayland to conduct the annual audit of the District’s financial records since 1989. The firm has done an excellent job and is very familiar with the operations of the District. The cost of last year’s audit (FY 2002-2003) was $19,000.
U:\staff\word\committees\Admin\20040511\02\item2.doc