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HomeMy WebLinkAboutDocumentation_Workshop_Tab 04_3/2/2020Agenda Item #4. Workshop STAFF MEMO Meeting: Workshop - Mar 02 2020 Staff Contact: Hugh Dunkley, Finance Director Discussion on External Auditor Selection Committee Department: Finance �J Discussion on manner of appointment and overall process for selecting independent CPA firm to perform the Village's annual financial audit Each Council Member to consider nominating one individual to serve on Auditor Selection Committee, pending formal action at April 9th regular Council meeting. auditor selection wshop memo march 2 2020 ADA Page 43 of 55 Agenda Item #4. Memorandum To: The Honorable Mayor Abby Brennan, Vice Mayor Kristi Johnson and Members of the Village Council THRU: Jeremy Allen, Village Manager FROM: Hugh B. Dunkley, Finance Director DATE: February 21, 2020 SUBJECT: Selection of Independent CPA Firm for Annual Audit The current auditing contract with the CPA firm of Marcum LLP will expire after the Fiscal Year 2019 audit is completed. Section 218.391, Florida Statutes, requires that each local governmental entity, district school board, charter school, or charter technical career center, prior to entering into a written contract with an external auditor, use specified auditor selection procedures when selecting an auditor to conduct the annual financial audit. The auditor selection procedures referenced above provides, in part, for the following: 1. That the Village Council establish an auditor selection committee; 2. That the Committee consist of at least three members; 3. One member of the Committee must be a member of the Village Council and shall serve as chair of the Committee; and 4. An employee, the Village Manager, or the chief financial officer [Finance Director] of the Village may not serve as a member of an auditor selection committee; however, an employee, the Village manager, or the Finance Director of the Village may serve in an advisory capacity. The Committee will be ad hoc in nature and the primary purpose of the Committee will be to (a) establish factors to be used for the evaluation of audit services to be provided by a certified public accounting firm; (b) evaluate proposals provided by qualified firms; and (c) rank and recommend in order of preference no fewer than three firms deemed to be the most highly qualified to perform the required services. Staff recommends that each member of the Council might appoint one member of the Audit Selection Committee. The Council member that is ultimately chosen as the chairperson of the Committee would be excluded from appointing his/her selection. This will enable five (5) members to serve on the Committee, which meets the statutory requirement of at least three (3) members. Staff has attached herein a graphic of the typical auditor selection process. Page 44 of 55 Agenda Item #4. VILLAGE OF TEQUESTA, FL EXTERNAL AUDITOR SELECTION PROCESS Approvalof Committee Members . Apr9 Council Mtg to Approve Worksho with Council Release of RFP RFPSubmission Deadline .To Ranked Firm Mart P I0-M.Ya 0-Jun 12 Aug 13 2020 Audit Committee Mtg - -Pl. - Apr 30 RFP Response Period M.ayg - Jun 12 Audit Committee Evaluation Mtg - Jun 15- Jun 26 Oral Pre se ntation s before Committee - Jun 29 - Ju 11.0 2020 Page 45 of 55