Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH CIUNI & PANICHI, INC. FOR FINANCIAL AUDIT SERVICES FOR THE CITY OF HUDSON FOR THE 2018-2022 AUDITS.
Executive Summary: This legislation authorizes the City Manager to enter into a contract for the City's annual audit for the years 2018-2022.
Body
Legislative History
The City approved Resolution 14-15 authorizing a contract with the Ciuni & Panichi, Inc. for the 2013-2017 financial audit. The Auditor of State performed the audits for 2011 and 2012.
Purpose & Explanation
The Auditor of State has the authority to either conduct the City's annual financial audit or award the audit through an RFP process to an independent public accounting (IPA) firm. The State determined the City's audit would be conducted by an IPA for 2013-2017.
The State has awarded an extension of the contract to Ciuni & Panichi, Inc for the five year contract period. The not to exceed annual costs are as follows:
Year Hours Cost
2018 270 $34,830
2019 300 * $40,500
2020 300 * $42,300
2021 300 * $44,100
2022 300 * $45,900
* Additional hours needed for Single Audit of federal grants. Single Audit required if City expends >$750,000 in federal grants in a fiscal year. If we do not expend >$750,000, the additional hours will not be charged to the City.
The 2017 audit cost was $30,960 for 240 hours. The additional hours for the 2018 audit are due to required additional testing for Governmental Accounting Standards Board (GASB) Statement 75 Accounting and Reporting for Postemployment Benefits Other than Pensions.
Ciuni & Panichi has performed our audit for several years after the State took back the audit. They are very familiar with City operations and has assisted in the preparation of our year-end financial statements for several years. We were satisfied with their prior audit performance and they consistently released the reports in a timely manner.
Timing Considerations
We request authorization to allow the a...
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