CC - Item 6E - One-Year Contract with Auditors s E M f
S e ROSEMEAD CITY COUNCIL
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siSTAFF REPORT
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TO: THE I IONORABLE MAYOR AND CITY COUNCIL
FROM: BILL R. MANIS, CITY MANAGER dye`
DATE: MARCH 28. 2017
SUBJECT: ONE-YEAR CONTRACT WITH AUDITORS
SUMMARY
The City of Rosemead currently contracts with a certified public accounting firm, Rogers,
Anderson, Malody and Scott, LLP (RAMS) for audit services. The contract expired at the
completion of the fiscal year 2015/16 audit. The City Council will consider entering into a one-
year contract with RAMS to complete the FY 2016/17 audit to provide stability to the Finance
Department during the transition of the new Finance Director. Staff will initiate a competitive
Request for Proposal (RFP) for the FY 2017/18 audit. The total contract amount for audit
services is $45,510, which is an increase of$628 or 1.4% from their prior contract fees.
STAFF RECOMMENDATION
That the City Council approve the one-year contract with Rogers, Anderson, Malody and Scott,
LLP.
FISCAL IMPACT
The proposed contract is for one year, with a cost of$45,510, for the fiscal year 2016/17 audit
services. Sufficient funds are budgeted every year for this service.
STRATEGIC PLAN IMPACT - None
BACKGROUND
The City entered into a contract with RAMS in fiscal year 2010/11 for audit and other
specialized accounting services for the City, the Successor Agency and the Housing
Development Corporation. The City also used RAMS in fiscal year 2013/14 for a Transient
Occupancy Tax audit. RAMS has provided the necessary staffing to complete the audits in a
timely manner, is available for telephone consultation throughout the year on financial matters,
and has worked well with the City's Finance department. Due to current turnover in
management staff, it would be helpful to work with an audit firm that is familiar with the City.
ITEM NUMBER: &E
City Council Meeting
March 28.2017
Page 2 of 2
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Pearl Lieu, Finance Director
Attachment: RAMS Proposal for One-Year Contract
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Attachment
RAMS Proposal for One-Year Contract
RA ROGERS,ANDERSON. MALODY 8 SCOTT. LLP
M S
733 E.Carnegie Dc Su,ie 100
Sari Bernardino.CA 92408
909 889 0871 T
909 889 5361 F
ra scpa.net
March 13. 2017
Pearl Lieu, Finance Director
City of Rosemead
8838 East Valley Blvd
Rosemead, CA 91770
Dear Pearl,
As you are aware, our contract with the City expired with the fiscal year
ending June 30, 2016. We are proud of the excellent service our firm has
provided the City. In addition to the audit, we have provided assistance to
the City in the preparation of its financial statements, we have been flexible
in our audit schedules to accommodate any requests of the City and we
have made ourselves available (at no extra charge) throughout the year to
answer questions raised by finance staff.
We have made it an absolute priority to provide the City with the best service
possible and we would like to continue providing those services. We would
like to propose a new one year contract in order to provide continuous and
uninterrupted auditing services. As has been the case during our current
contract period,we will continue to provide continuity of staffing, be available
to work with the finance staff in areas of technical accounting
pronouncements as well as compliance and internal control issues.We are
available for telephone consultation on various financial matters throughout
the year. All professional consultations throughout the year have been
included in our proposed fixed fee.
STABILITY. ACCURACY TRUST
Please see the attached fee schedule for our proposed fees for the fiscal year ending June 30,
2017. As you will see, we have increased the fees from the 2016 fee by 1.4%. We value the City
as an important client and look forward to continuing our services for the next year. Please do not
hesitate to contact us at(909) 889-0871 for further clarification. We look forward to continuing our
professional relationship with the City
Very truly yours,
ROGERS, ANDERSON, MALODY& SCOTT, LLP
Terry Shea, Partner
Certified Public Accountant
2
City of Rosemead
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Total Maximum Price
Rogers, Anderson, Malody & Scott, LLP
Cerified Public Accountants
2015/16 2016/17
City of Rosemead $ 25,160 $ 25,660
Successor Agency 5,516 5,625
Housing Corp 4,302 4,385
Single Audit Report 6,704 6,840
State Controller's Report 3,200 3,000
Grand Total $ 44,882 $ 45,510