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 2015 ANNUAL FINANCIAL STATEMENTS; AND DECLARING AN EMERGENCY.
Executive Summary: This is a contract with an accounting firm to assist staff in the preparation of the 2015 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.
In the past, this contract was below $25,000 and therefore did not require specific Council approval. Our 2015 statements will include the implementation of Governmental Accounting Standards Board (GASB) No. 68 which is the new reporting requirement for pensions. In summary, local governments are now required to report their share of the net pension liability on the balance sheet. This requires additional calculations and disclosures in our statements. The estimated costs are as follows:
Financial statement preparation $24,500
GASB 68 implementation $ 3,500
Total $28,000
Timing Considerations
Staff requests emergency language to allow the timely preparation of our annual financial statements.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends approval of the contract with Ciuni & Panichi, Inc. for the preparation of City’s 2015 annual financial statements.
Submitted by,
Jane Howington, City Manager
Jeff Knoblauch, Finance Director