Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES CONTRACT WITH CIUNI & PANICHI, INC. FOR THE PREPARATION OF THE CITY'S 2020 ANNUAL FINANCIAL STATEMENTS.
Brief Description: This is a contract with an accounting firm to assist staff in the preparation of the 2020 annual financial statements.
Body
Legislative History
None
Purpose & Explanation
The City's annual financial statements are required to be reported on an accrual basis. This is a contract with an accounting firm to assist staff in preparation of those statements and related notes to the financial statements. The City has always used this service as it is deemed the most efficient approach in preparing our statements for audit.
Our 2020 statements will include Governmental Accounting Standards Board (GASB) Nos. 68 and 75 which are the reporting requirement for pensions. In summary, local governments are required to report their share of the net pension liability on the balance sheet. This requires additional calculations and disclosures in our statements. In addition, we are required to report Other Post-Employment Benefits (OPEB) which includes reporting our share of the unfunded liability for retiree health care.
New for 2020 implementation is GASB 83 - Certain Asset Retirement Obligations (AROs)
Examples of AROs are the wells at the water plant as well as the new brine well. We need to determine if there is a legally enforceable liability associated with the retirement of the asset and report the value of that liability. This was originally scheduled to be implemented for 2019 but COVID related issues caused a one-year delay.
The estimated costs are as follows:
Financial Statement Preparation $29,100
GASB 68/75 Supplemental Data $ 3,400
GASB 83 Implementation $ 1,500
Total $34,000
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached:...
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