BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Agreement with Maze and Associates for Financial Audit Services for Fiscal Years 2019, 2020, and 2021, With Option to Extend Two Additional Years.
End
RECOMMENDATION:
Recommendation
Approve the agreement with Maze and Associates for financial audit services for Fiscal Years 2019, 2020, and 2021 for a fee of $222,480, with option to extend two additional years for an additional fee of $160,061, making the total $382,541 for five years.
Body
SUMMARY:
The prior financial auditing services agreement was a three-year agreement (with subsequent extensions) with the auditing firm Vavrinek, Trine, Day & Co., LLP for auditing services for Fiscal Years 2013, 2014, 2015, 2016, 2017, and 2018. The attached agreement with Maze and Associates is a three-year agreement for financial audit services for Fiscal Years 2019, 2020 and 2021 (with the option to extend two additional years).
Board Policy 5.1.2.1 requires that for financial auditing services contracts, the terms of the contract shall not exceed (5) fiscal year periods subject to audit and the contract shall not be awarded to the same auditing firm for consecutive terms.
The approval and execution of the attached agreement is necessary in order to comply with: (1) the State law (Governmental Code Section 26909) that requires an annual examination and audit of the Santa Clara Valley Water District's financial records to be performed by an independent qualified certified public accountant; (2) the Single Audit Act of 1984, as amended on 2003 (the Act) that requires state and local governments to have a single audit according to the Act if they receive Federal financial assistance of $750,000 or more; (3) the Board policy BL-5.5 Monitoring BAO Performance under the category of Board-CEO Linkage sets forth under Financial Condition and Activities that external monitoring be reported on an annual basis; and (4) Executive limitation 4.3 which ensures that actual revenues and expenditures are within projected revenues and expenses and the separation of capital and operational items.
FINANCIAL IMPACT:
Funds for auditing Fiscal Year 2019 are provided for in the Fiscal Year 2020 budget of the General Accounting Unit for $45,635 and the Water Enterprise Fund for $26,200. Funds in the amount of $74,160, $76,485, $78,849, and $81,212 for auditing Fiscal Years 2020, 2021, 2022, and 2023, respectively, will be budgeted and encumbered in the subsequent fiscal years.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Agreement
UNCLASSIFIED MANAGER:
Manager
Darin Taylor, 408-630-3068