Title
Selection of External Auditors for Professional Auditing Services for GRU (B)
**This item is informational**
Explanation
The Amended and Restated Utilities System Revenue Bond Resolution requires an annual audit of the Utility’s financial statements. Gainesville Regional Utilities’ current contract for professional auditing services expires after completion of all reports associated with the financial audit for the fiscal year ending September 30, 2016.
On June 16, 2016, the City Commission authorized the issuance of a RFP for professional auditing services utilizing the methodology and selection factors recommended by the Audit and Finance Committee. On September 15, 2016, the City’s Purchasing Division publicly issued the RFP prepared by the City Auditor’s Office for both General Government and GRU.
On October 27, 2016, Gainesville Regional Utilities received four (4) responses. The evaluation team was appointed by the City Auditor to evaluate the proposals in accordance with criteria set forth in the RFP, excluding price proposals. On November 7, 2016, team members each submitted evaluation scores on the written proposals to Purchasing. The two (2) highest ranked firms were asked to make oral presentations to the team on December 1. Based on the oral presentations, the final ranking was tabulated as follows:
1st - Baker, Tilly, Virchow, Krause, LLP
2nd - Purvis, Gray and Company
Fiscal Note
Professional Auditing Service fees are included in the GRU budget. Baker, Tilly, Virchow, Krause, LLP, the first ranked firm for GRU, submitted a first year price
fee of $116,100. The RFP was structured to allow for annual price adjustments beginning with the second year of the three year contract based on the Consumer
Price Index (CPI) for the Southern Region, all urban consumers, all items, with a five percent (5%) limit on any increase. Should the City Auditor choose to extend
the contract for the optional two (2) year extensions, prices will be negotiated with the contractor.
Recommendation:
Hear an update from staff.