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First Extension/Amendment to the Agreement for Professional Auditing Services between the City of Gainesville and Davis, Monk & Company and Ernst & Young LLP (B)
Explanation
The City's Charter requires an annual financial audit to be completed by an independent certified public accountant. For the past five years, the independent CPA firms of Davis, Monk & Company and Ernst & Young LLP have provided these services through a contract executed in August 2001 and administered by the City Auditor's Office. The contract provides an option to extend these services for an additional three years and the joint venture of Davis, Monk and Company and Ernst & Young LLP is agreeable to extending the agreement. They have requested an increase in the base fee for audit services, due to increased governmental accounting and auditing pronouncements that will impact the City's future audits.
The City Auditor's Office has discussed the proposed contract extension with representatives from both General Government and Gainesville Regional Utilities and there is consensus that the proposed three year extension would be in the City's best interest given the high level of service and competitive rates provided by the current vendor. In addition, a review of the independent auditors' services and fees and a comparative analysis of fees charged to other Florida municipalities for similar services indicates that their proposed rates remain competitive. A competitive selection process will be conducted at the end of the three year extension.
Fiscal Note
The base fee for audit services was approximately $160,000 for the fiscal year 2005 audit. Fees for the next three years are proposed at $170,000, $180,000 and $190,000 as shown in Exhibit A. Fees for these services are shared by General Government and Gainesville Regional Utilities and will be provided in the proposed budget documents for each.
Recommendation
The City Commission: 1) Approve the firs...
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