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HomeMy WebLinkAbout36-15 RESOLUTIONRESOLUTION NO. 36-15 A RESOLUTION TO APPROVE A CONTRACT WITH GRANT THORNTON LLP IN THE AMOUNT OF $87,500.00 TO PROVIDE INDEPENDENT AUDIT SERVICES TO THE CITY OF FAYETTEVILLE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with Grant Thornton LLP in the amount of $87,500.00 to provide independent audit services to the City of Fayetteville. A copy of the engagement letter for services is attached to this Resolution and made a part hereof. PASSED and APPROVED this 3rd day of February, 2015. ATTEST: By; zj&C'0 1111�' '4MA SONDRA E. SMITH, City Clerk/Trea�s`ueg,,,,rf�o`�s K FAYETTEVILLE.X �Z• . •m�,ye /fAN��P.•���� ON City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 479-575-8323 Text File File Number: 2015-0020 Agenda Date: 2/3/2015 Version: 1 Status: Passed In Control: City Council File Type: Resolution Agenda Number: A. 14 GRANT THORNTON LLP CONTRACT: A RESOLUTION TO APPROVE A CONTRACT WITH GRANT THORNTON LLP IN THE AMOUNT OF $87,500.00 TO PROVIDE INDEPENDENT AUDIT SERVICES TO THE CITY OF FAYETTEVILLE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a contract with Grant Thornton LLP in the amount of $87,500.00 to provide independent audit services to the City of Fayetteville. A copy of the engagement letter for services is attached to this Resolution and made a part hereof. City of Fayetteville, Arkansas Page 1 Printed on 21412015 City of Fayetteville Staff Review Form 2015-0020 Legistar File ID 2/3/2015 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Accounting & Audit / Marsha Hertweck 1/13/2015 Finance & Internal Services Department Submitted By Submitted Date Division / Department Action Recommendation: Approval of the engagement of Grant Thornton for the City's 2014 annual audit. The 2014 audit cost has been budgeted in the 2015 budget. Account Number Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? NA Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title V20140710 Previous Ordinance or Resolution # Original Contract Number: Comments: Approval Date: To: Mayor Lioneld Jordan and the Fayetteville City Council Thru: Paul Becker, Finance Director From: Marsha Hertweck, Accounting Director Date: January 12, 2015 Subject: Annual Audit Recommendation Approval of the third year of a five year contract with Grant Thornton for annual audit services for the 2014 audit. Discussion The City is required, under Arkansas statutes and applicable bond issues, to have an annual financial audit conducted by either Legislative Audit or a Certified Public Accounting firm licensed in Arkansas. Because of the requirements of bond indentures, the City has for the past thirty plus years utilized the services of a private CPA firm to perform these mandated financial audits. Grant Thornton was selected by the City following the applicable rules and regulations concerning the procurement of auditing services for a five year contract beginning with the 2012 audit. Under this contract Grant Thornton will provide an annual audit of the City's financial statements and a review of the City's internal control system as required by state law. In addition to the financial audit, Grant Thornton will issue a report on internal control and compliance requirements for major federal award programs as required by the Single Audit Act. The single audit is the primary mechanism used by federal agencies to ensure accountability for federal awards to non-federal entities. Finally, Grant Thornton will also provide technical assistance to the City in producing the Comprehensive Annual Financial Report (CAFR). The CAFR includes the City's financial statements as well as statistical information required by the City's bond covenants. Budget Impact The cost of the 2014 audit is $87,500. The audit has been budgeted in General Fund and various other funds in the 2015 budget. Mailing Address: 113 W. Mountain Street www.fayetteville-argev Fayetteville, AR 72701