| Present, Discuss, and Consider Action on a Resolution Approving the Professional Consulting Agreement Between the Town of Addison and BKD, LLP to Perform Audits for Fiscal Years 2021, 2022, and 2023 (with the Option to Extend the Agreement for Fiscal Years 2024 and 2025 for Additional Fees), and Authorizing the City Manager to Execute the Agreement in an Amount Not to Exceed $287,500. |
As part of the Town’s Charter requirement and financial best practices, the Town engages an independent audit firm to conduct an annual financial audit. This year, the Town prepared a Request for Qualifications (RFQ) for external audit services. Six firms responded to the RFQ and two finalists were selected and interviewed by a review committee. The committee consisted of the Chief Financial Officer and Controller, both of whom are Certified Public Accountants. The committee unanimously selected the firm of BKD, LLP as the most qualified provider of external audit services for the Town. BKD, LLP has been the Town's external audit firm since 2016.
BKD, LLP is a national CPA and advisory firm that offers clients a variety of services in accounting, audit and assurance, tax, risk management, technology, corporate finance, forensic and valuation services and wealth management. Firm-wide, they serve approximately 240 governmental entities in Texas, 25 of which are municipalities. The local office, which will service this audit, is located in Addison at 14241 Dallas Parkway, Suite 1100, Dallas, TX 75254-2961.
Attached is a professional services agreement with BKD for a period of three years (FY2021-2023) with two one-year extension options (FY2024 & FY2025). Exhibit A to the agreement is BKD, LLP's technical proposal dated May 25, 2021. Exhibit B to the agreement is the Consultant's Cost Proposal for Fiscal Years 2021, 2022, and 2023. Exhibit C to the agreement outlines the terms and conditions contained in the Town's Request for Proposal. Exhibit D to the agreement is the Consultant's Engagement Letter dated July 7, 2021.
The Audit Engagement fee for the external Financial Audit for the period ending September 30, 2021 is $86,000 and the Single Audit Fee is $7,000 for a total fee of $93,000. The Audit Engagement fee for the external Financial Audit for the period ending September 30, 2022 is $88,500 and the Single Audit Fee is $7,250 for a total fee of $95,750. The Audit Engagement fee for the external Financial Audit for the period ending September 30, 2023 is $91,250 and the Single Audit Fee is $7,500 for a total fee of $98,750. For the most recently completed audit for the period ended September 30, 2020 the Audit Engagement fee was $100,000 and the Single Audit Fee was $7,000 for a total fee of $107,000. |