City Council Regular Meeting - Includes Action Taken


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Meeting Date: 07/18/2016  
Recommended by: Doug Sandstrom Prepared by: Jeffrey Graves, Budget Analyst
Finance Director Review: Celina Morris  
City Attorney Review: Brett Wallace  
Approved by: Jim Thompson Date Submitted: 06/27/2016
Type of Action Requested: Ordinance

Designate Henry and Horne, LLP as the City's Independent Certified Public Accountants, approve the engagement letter and related fees for the FY2016 annual financial audit, and an additional billing for the FY2015 annual financial audit.
Designate Henry and Horne, LLP as the City's Independent Certified Public Accountants, approve the engagement letter for the FY2016 Annual Financial Statement Audit, and approve fees in the amount of $61,000; whereas $56,000 is anticipated for the FY2016 Audit and $5,000 is an additional billing related to the FY2015 Financial Statement Audit.
Arizona Statutes section 9-481. (Audits of cities and towns) states "The governing body of each incorporated city or town shall cause an audit to be made by a certified public accountant or public accountant who is currently licensed by the Arizona state board of accountancy and who is not an employee of the city or town. Audits shall be made for each fiscal year for all incorporated cities." The cost for the financial statement and compilation of the Comprehensive Annual Financial Report is $56,000. The requested amount for FY2016 Annual Financial Audit reflects a 3%, or $1,400 increase, over prior year actual audit fees of $54,600 (which includes the $5,000 additional billing).

In addition to the audit of financial records and resulting opinion based on their audit findings, the following additional information is subjected to audit procedures:
- Schedule of expenditures of federal awards
- Annual expenditure limitation report
- Combining Funds Financial Statements and Budgetary Comparison of the Comprehensive Annual Financial Report
- Other Supplementary Information of the Comprehensive Annual Financial Report
- Statement that fulfills the HURF requirement
- ADEQ Report
The audit objective is the expression of opinions as to whether the City's Financial Statements are fairly presented, in all material respects, in conformity with the U.S. generally accepted accounting principles and to report on the fairness of the supplementary information.
The objective also includes reporting on:
- Internal control related to the financial statements and compliance with provisions of laws, regulations, contracts and grant agreement, where noncompliance would have a material effect on the financial statements in accordance with Government Auditing Standards
- Internal control related to major programs and an opinion on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations
The audit will be performed in accordance with U.S. generally accepted auditing standards, the standards for financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States, the Single Audit Act Amendments of 1996; provisions of OMB Circular A- 133, "Audits of States, Local Governments, and Non-Profit Organizations."
Funding for the FY2016 Audit is included in the Finance Department's FY2017 budget.  The additional fees for the FY2015 audit are an expense for FY2016. 
FIN O-Designate Independent Auditors
Henry & Horne Engagement Letter



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