HomeMy WebLinkAboutIR 9025INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 9025
To the Mayor and Members of the City Council March 24, 2009
Page 1 of 1
SUBJECT: Increase in Fees for Auditing Services Provided by
.,. Deloitte and Touche for Fiscal Year 2007 and 2008 Audits
The March 24, 2009, City Council agenda contains two MBCs to authorize fee increases for
independent auditing services performed by Deloitte and Touche, LLP, for the Fiscal Year 2007
and 2008 Financial Audits.
M &C # G -16501 requests a fee increase for completion of the Fiscal Year 2007 Audit (2007
Audit). Additional auditing services in the amount of $135,000 were provided by Deloitte and
Touche to complete the 2007 Audit. Several issues were encountered during the 2007 Audit that
resulted in unanticipated work. The additional work involved reviewing, researching, testing and
validation related to the accrual of accounts payable, classification of fixed assets, and recording
of grant expenditures. The fee increase will bring the final cost of the 2007 Audit contract to
$1,245,000.
M &C # G -16502 requests an increase of $869,831, in the Fiscal Year 2008 Audit (2008 Audit) fee
for a total revised fee of $1,200,000. The 2008 Audit fee increase is related to similar fee
increases in Fiscal years 2004, 2005, 2006 and 2007. The Audit fees for Fiscal Years 2004
through 2007 were increased due primarily to unanticipated work involving material weaknesses
and follow -up procedures that overlap from each of the respective audits. The fee increase
continues with the 2008 Audit due to the need to address the overlapping issues and enhanced
audit industry standards. The table below contains a summary of fees paid for audits in Fiscal
Years 2004 through 2006:
Audit Year
Audit Fee
2004
$539,000
_
2005
$1,025,760
2006
$1,463,713
If you have any questions regarding this information, please contact Lena Ellis, Financial
Management Services Director /CFO, at (817) 392 -8517.
Dale A. sseler, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS