SR-200-004 (7)
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Council Meeting: July 08, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Contract With Conrad and Associates To Provide Auditing Services for the City for the
Fiscal Years 2002-03 through 2007-08
Introduction
This is to recommend that the City Council authorize the City Manager to negotiate and execute a
contract with Conrad & Associates to provide audit services to the City of Santa Monica at a cost not
to exceed $500,000 for a five-year term.
Background
In March 2003, a Request for Proposal for audit services for a five-year term beginning with the
current fiscal year was sent to twenty-four accounting firms. Seven firms submitted proposals.
The City’s Audit Committee comprised of representatives from the City Manager’s Office and
Resource Management, Big Blue Bus, Environmental and Public Works Management, Community
and Cultural Services, and Finance Departments evaluated the seven proposals. The proposals were
evaluated on: (1) the firm’s local government experience; (2) the qualifications of staff assigned to
conduct audit work; and, (3) fixed cost for the audit services. Four of the seven firms were invited to
make presentations to the City’s Audit Committee.
As a result of the evaluation process, the Committee recommended, and the City Manager concurred,
that Conrad and Associates be retained to provide audit services for the City of Santa Monica.
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Budget/Financial Impact
Funds for the first year of the engagement are available at the following accounts:
01222.577040 - $90,400 (General Fund)
01544.577040 - $2,800 (Senior Nutrition Program)
01264.577040 - $6,800 (Housing Authority)
The General Fund cost will be proportionately allocated among all of the City’s funds through the
City’s Administrative Indirect Cost Allocation.
Recommendation
It is recommended that the City Manager be authorized to negotiate and execute a contract with
Conrad and Associates for audit services for a five-year term commencing with execution of the
agreement at a cost not to exceed $500,000.
Prepared by: Steve Stark, Director of Finance
Candace Tysdal, Financial Operations Manager
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