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ADMINISTRATIVE
COMMITTEE |
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10. |
CONSIDER
AUTHORIZATION TO CONTRACT WITH HAYASHI & WAYLAND TO CONDUCT ANNUAL
FINANCIAL AUDIT FOR FISCAL YEAR 2012-2013 |
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Meeting
Date: |
June 10, 2013 |
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: |
$31,250 for basic audit
& $2,500 for group audit |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on June 10, 2013 and recommended _____________. |
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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 three-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) 2011-2012. 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 one-year proposal from H&W.
H&W has submitted a one-year
proposal to conduct the audits for FY 2012-2013 in the amount of $31,250, which
is the same price as prior year’s audit cost.
The audit proposal also includes additional cost in the range of $1,800
to $2,500 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. The
proposed budget for FY 2013-2014 includes $31,500 to fund the audit for FY 2012-2013.
RECOMMENDATION: District staff recommends that the Board authorize the Chief Financial Officer to enter into a one-year agreement with Hayashi& Wayland to conduct the annual audit of the District’s financial records for a total cost of $33,750. The Administrative Committee reviewed this item at its June 10, 2013 meeting and recommended __________ by a vote of _ to _.
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 2011-2012 cost $31,250 and concluded the latest
three-year agreement with H&W.
10-A Hayashi & Wayland Audit Proposal
U:\staff\Board_Committees\Admin\2013\20130610\10\item10.docx