Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Contract #20230026 for Auditing Services.
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Submitted By: Nathaniel Rubel, Assistant Procurement Director
Strategic Plan Link: The City’s Mission to be financially responsible.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Nathaniel Rubel, Procurement Management Division.
2. Parties: City of Port St. Lucie and MSL, P.A.
3. Purpose: To conduct the required annual financial audit.
4. New/Renewal/Modified: New.
5. Duration: The initial Contract term is for five (5) years with the audit for fiscal years ending September 30, of 2023, 2024, 2025, 2026, and 2027. The Contract includes a renewal option that may be negotiated for 1 (one) additional three (3)-year term.
6. Benefits to Port St. Lucie: The Auditor will perform an annual examination of the City’s basic financial statements to express opinions on the fairness with which the statements present the financial positions, results of operations, and changes in financial position in conformity with generally accepted accounting principles.
7. Cost to Port St. Lucie (Annual and Potential): The cost of the annual financial audit for the Fiscal Year (FY) ending September 30, 2023, is $95,000.00. The cumulative cost to conduct the annual financial audits for the initial five-year Contract term is $500,000.00.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve Contract #20230026 for Auditing Services with MSL, P.A.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve Contract #20230026.
2. Move that the Council not approve Contract #20230026 and provide staff with direction.
Background: As a governmental agency, the City must adhere to statutory requirements to audit all financial activity. Under the direction of the City Manager, the Finance Department prepares an Annual Comprehensive Financial Report (ACFR) every year. The audit firm will perform an annual examination of the basic financial statements to express opinions on the fairness with which the statements present the financial positions, results of operations, and changes in financial position in conformity with generally accepted accounting principles.
An RFP was advertised on DemandStar on May 9, 2023, with a proposal due date of June 8, 2023. During the advertisement period, 310 suppliers were notified, 10 of those downloaded the solicitation documents, and 2 submitted proposals. On June 21, 2023, the Auditor Selection Committee met to evaluate and rank the proposals received. The rankings are as follows: (1) MSL, P.A. (2) Mauldin & Jenkins, LLC. After review of the rankings, The Auditor Selection Committee voted to recommend award to the top ranked firm, MSL, P.A.
Issues/Analysis: At the June 26, 2023, Council meeting, Council approved Resolution 23-R68, A Resolution of the City of Port St. Lucie, Florida, Approving the Auditor Selection Committee’s Recommendation of Award in RFP #20230026 for Auditing Services, Selecting the Highest-Ranked Qualified Firm, and Designating the City Manager, and/or His Designees to Negotiate a Contract with Said Firm in Accordance with Section 218.391, Florida Statutes. As designated by the City Manager, staff negotiated the attached Contract, signed by MSL, P.A. for Auditing Services.
Financial Information: Funds are appropriated for auditing services in allocated funds various department accounts.
Special Consideration: N/A.
Location of Project: N/A.
Attachments: 1. Contract #20230026
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 23167-01.
Legal Sufficiency Review:
Reviewed by Richard A. Berrios, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.