DATE: February 11, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator/CFO
Mike Lowe, Comptroller
SUBJECT:
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Consideration of Resolution 2016-08, A Resolution To Provide Authority To City Administrator To Execute Audit Contracts For The City To Be In Final Form Once Signed By City Administrator:
DRAFT Consideration Of Contract Number 2016-0025 with Crosslin & Associates for Financial And Compliance Auditing Services For The City For The Fiscal Year Ending June 30, 2016; (02-11-16 Finance 4-0)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the required annual financial and compliance audit for the City of Franklin.
Background
If approved, the 2016 audit would be the sixth (6) time Crosslin and Associates has performed the City’s audit. Excluding the 2016 audit, Crosslin would have 3 potential additional years (2017, 2018, and 2019) under the current RFP award.
Financial Impact
Per the RFP award, the fee for the 2016 audit would be $48,000. The City’s practice is to have 50% of the cost of the audit to be borne by the General Fund, 25% by the Water Utility Fund, and 25% by the Wastewater Utility Fund. Note that the majority of the cost of each annual audit is incurred during and paid by the budget for the first fiscal year immediately following the fiscal year being audited.
Recommendation
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Staff recommends approval of the annual audit contract with Crosslin and Associates.