HomeMy WebLinkAbout03.g. Hire Maze & Associates to audit financial statements for four years plus optionCentral Contra Costa Sanitary District 3,
BOARD OF DIRECTORS J
POSITION PAPER
Board Meeting Date: June 20, 2013
Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A
PROFESSIONAL SERVICES AGREEMENT WITH MAZE & ASSOCIATES
TO PERFORM FINANCIAL AUDIT SERVICES FOR THE FISCAL YEARS
2012 -13 THROUGH 2015 -16 WITH THE OPTION OF A ONE -YEAR
EXTENSION
Submitted By. Initiating Dept. /Div.:
Thea Vassallo CPA, Finance Manager Administration /Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION: P, �
C. Swanson
Provisional General Manager
ISSUE: The Board of Directors is required to appoint the District's independent auditor
to perform the examination of the financial statements beginning with Fiscal Year (FY)
2012 -13 through 2015 -16 with the option of a one -year extension.
RECOMMENDATION: Appoint Maze & Associates, Certified Public Accountants, as
the District's independent auditor for four years commencing with FY 2012 -13 with the
option of a one -year extension.
FINANCIAL IMPACTS: The audit fee for Cropper Accountancy Corporation for FY
2011 -12 was $35,000. Additional fees are charged for work requested by the District
which is outside the scope of the audit. Maze & Associates has proposed a fee of
$29,583 for FY 2012 -13. This amounts to a $5,417 savings for the first year of audit
services. The anticipated four -year expense for FY 2012 -13 through FY 2015 -16
amounts to $118,332.
ALTERNATIVES /CONSIDERATIONS: The firm Cropper Accountancy Corporation
could be extended another year; this is not recommended. The Board could appoint
the alternate firm at a higher cost of $45,800 per year.
BACKGROUND: The Board has followed the practice of rotating the District's auditor
after four or five consecutive annual audits. Cropper Accountancy Corporation
however, has served as the District's auditor for the last six fiscal years, FY 2006 -07
through FY 2011 -12. The contract was extended a sixth year to maintain continuity due
to anticipated staff turnover. District staff contacted five Bay Area firms. Two firms
submitted proposals - Maze & Associates and Vavrinek, Trine, Day & Co. Finance
Manager Thea Vassallo reviewed the two proposals.
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Ordinance 2013 -15 6- 20- 13.DOC Page 1 of 2
POSITION PAPER
Board Meeting Date: June 20, 2013
subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A
PROFESSIONAL SERVICES AGREEMENT WITH MAZE & ASSOCIATES
TO PERFORM FINANCIAL AUDIT SERVICES FOR THE FISCAL YEARS
2012 -13 THROUGH 2015 -16 WITH THE OPTION OF A ONE -YEAR
EXTENSION
COMMITTEE RECOMMENDATION: The Budget and Finance Committee reviewed
the proposals, interviewed both firms, and recommended appointment of Maze &
Associate at its May 14, 2013 meeting.
RECOMMENDED BOARD ACTION: Appoint Maze & Associates, Certified Public
Accountants, as the District's independent auditor for FY 2012 -13 through FY 2015 -16,
with the option of a one -year extension.
C:\ Users \dandersonWppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \ORD 266 SSC
Ordinance 2013 -15 6- 20- 13.DOC