To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider a resolution authorizing the City Manager to execute a contract with Whitley Penn, LLP for independent auditing services, on behalf of the City of Keller, Texas, for fiscal years ended September 30, 2022 through September 30, 2026.
Action Requested:
City Council consideration of a resolution authorizing the City Manager to execute a contract for independent auditing services Whitley Penn, LLP.
Background:
Article VIII. Section 15 of the City’s Charter requires an annual audit of the City's financial records and accounts by an independent certified public accountant. Each year the results of the audit are included in the Comprehensive Annual Financial Report (CAFR). Weaver and Tidwell, L.L.P. has previously served in this capacity as the City's auditor for Fiscal Years 2016 thru 2021 which included an initial five year contract approved in 2016 and a one year contract extension approved for 2021.
A Request for Proposal (RFP) was opened on May 20, 2022 and closed on June 13, 2022. A pre-bid conference was held on June 2, 2022 with one firm attending. On June 13, 2022, three firms submitted proposals.
An Audit Selection Committee comprised of City staff members performed an analysis of the mandatory elements, expertise, audit approach, and cost proposals received. The committee selected the firm that met the mandatory requirements and received the highest score on the other technical aspects, as outlined in the RFP. Attached is the summary of the results and best and final costs.
Whitley Penn, LLP has over 35 years municipal auditing services with seven Texas offices including both Dallas and Fort Worth. Current Texas municipal clients include Bellaire, Conroe, North Richland Hills, and Round Rock.
Financial Impact:
The first year (fiscal year 2022) cost for the recommended firm is $56,650. The current fiscal year's audit cost was $56,850. The five-year not to exceed amount for the recommended firm is $300,250.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial