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HomeMy WebLinkAbout(0005) IR 21-10600 - External Financial Audit Services Selection ProcessINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10600 PRTEot c e�cw?.e 1@7'3 To the Mayor and Members of the City Council June 22, 2021 Page 1 of 1 SUBJECT: EXTERNAL FINANCIAL AUDIT SERVICES SELECTION PROCESS The purpose of this Informal Report is to brief the Mayor and City Council on the selection process for External Financial Audit Services. The Financial Management Services Department issued a Request for Qualifications (RFQ) for External Financial Audit Services. The procurement of professional services is exempted from competitive bidding requirements, under Chapter 252 of the Texas Local Government Code, and requires approval by the City Council. Services provided under this engagement allow the City to ultimately publish the Annual Comprehensive Financial Report. As recommended by the Government Finance Officers Association (GFOA), the City has undergone a competitive process for the selection of these services. The GFOA also offers a best practice on external auditor rotation in certain circumstances after a multi -year contract. A selection committee, consisting of the City Controller/Assistant Director of Finance, City Treasurer/Assistant Director of Finance, the Financial Reporting Manager, City Internal Auditor, Assistant Director - Water Utility, and a Diversity & Inclusion Business Equity Division designee, was responsible for reviewing the six proposals received and assisted in developing this recommendation. Proposals were evaluated based on criteria outlined in the RFQ. The Financial Management Sevices Department has recommended BKD, LLP (BKD) to serve as the City's external independent auditor starting with the FY21 external financial audit for three consecutive years with two one-year renewals. BKD has a history of serving numerous Texas municipalities and other large cities across the country, such as the City of San Antonio, the City of Arlington, the City of Los Angeles, and the City of Phoenix. BKD also offers a fresh perspective, efficiencies, and financial reporting technologies, based on their experience providing services to approximately 220 governmental entities, including approximately 30 municipalities and their component units. Weaver and Tidwell, LLP has served as the City's External Auditors from FY2016 through FY2020 and has been an excellent partner in accomplishing the City's internal goal of early issuance of the Annual Comprehensive Financial Report. They have been a value-added part of the City's accounting and financial reporting providing multiple services needed beyond the City's external financial audit, such as assistance with the implementation of new accounting standards. The City was very pleased with the services that were provided by Weaver. If you have any questions, please call Reginald Zeno, Chief Financial Officer, at 817-392-8500 or Anthony Rousseau at 817-392-8338. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS