Title
RFP No. 2020-102 - Professional Auditing Services and Comprehensive Annual Financial Report (CAFR) Preparation Services.
(Authorize the City Manager to finalize and execute a contract with BKD, L.L.P., in the amount of $132,500.00 for 2020 with up to a three percent increase annually through 2024. The term of this contract is for one year, with four additional one-year renewal options. The City Manager is authorized to exercise the renewal options, subject to annual appropriation of sufficient funds.)
Body
Name of Department
Finance
Project/Budgeted Amount
$175,000.00 per fiscal year
Sum of Bid/Bid Amount
$132,500.00 2020
$136,000.00 2021
$139,500.00 2022
$143,500.00 2023
$147,500.00 2024
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Requests for Proposals (RFP) for conducting the City’s annual financial audit with agreed-upon procedures and CAFR preparation were published in the Daily Commercial Record newspaper, broadcast through BidSync, an electronic bidding system, and posted on the City’s website. A total of seven responses were received.
Section 103 of the Texas Local Government Code requires municipalities to have its records and accounts audited annually and to prepare an annual financial statement based on the results of the audit. The City Charter, Article IV, Section 32 fulfills the auditing requirements.
“The City Council shall cause audits annually to be made of the books and of accounts of each and every department of the City. Such audits shall be made by a competent public accountant who shall be selected by the City Council, and a contract entered in from year-to-year; and such contract shall provide that the books of the City shall be audited at least annually; and such auditor’s report to the City Council shall be accessible to the public or for publication.”
In addition, this solicitation and resulting contract fulfills the requirements specified in the Accounting, Auditing and Financial Reporting Policy adopted by the City Council on February 4, 2019.
The following table shows the history of audit firms for the City.
Audit Firm Fiscal Years Audited Number of Years
BKD, L.L.P. 2015 through 2019 5 years
Grant Thornton 2008 through 2014 7 years
Deloitte 2002 through 2007 6 years
Arthur Anderson 1990 through 2001 12 years
KPMG 1979 through 1989 11 years
The RFP identified the scope of services and the time periods for performing the audit field work, completion of the audit reports and preparation of the CAFR. Each firm was requested to respond to several questions concerning their qualifications and to submit a proposed fee for their professional services. The RFP evaluation criteria included the following categories:
Experience and Qualifications 45 points
Capacity and Resources 30 points
References 10 points
Fee Schedule 15 points
Staff scored the responses based on the evaluation criteria (attached copy). BKD, L.L.P, scored the highest with Weaver & Tidwell, L.L.P., placing second.
BKD is the City’s current auditor and is a national CPA and Advisory firm serving clients for over 90 years. There are 40 offices including six in Texas with approximately 2,900 personnel and 300 partners. They are committed to the governmental industry with over 500 governmental clients nationwide. The Dallas office has 135 personnel of which 15 team members devote 80 percent of the year on government entities.
Recommended/Desired Action
Authorize the City Manager to finalize and execute a contract with BKD, L.L.P
Attachment(s)
Audit RFP Proposer Evaluation Summary
BKD L.L.P. Audit Team Profiles
Drafter
Cindy L. Smith
Head of Department
Cindy L. Smith