Title
Consider and take action on appointing Weaver Tidwell, LLP independent auditors for the City of League City and authorizing the City Manager to execute the audit contract for the fiscal years ended September 30, 2014, 2015 and 2016. (Director of Finance)
Background:
Approval of this item will engage independent auditors, as is required by State Law and City Charter to perform an annual audit of the financial statements of the City and perform the "single audit" as is required for recipients of Federal funds.
For the 7 fiscal years 2007-2013 the City was audited by the firm Belt Harris Pechacek. While League City does not have mandatory auditor rotation as many local governments do, rotation and competition is considered a “best practice.” The Government Finance Officers Association recommends the following in their document “Best Practice - Audit Procurement”:
“Governmental entities should undertake a full scale competitive process for the selection of independent auditors at the end of the term of each audit contract. Ideally, auditor independence would be enhanced by a policy requiring that the independent auditor be replaced at the end of the audit contract, as is often the case in the private sector.”
The City issued a Request for Proposals from qualified firms to perform the annual audit for the three years FY 2014-2016, with an option for 2 additional years. On May 7, 2014, the City City received 8 proposals from the following accounting firms: Sanderson Knox & Company, BKD, Weaver Tidwell, Whitley Penn, Belt Harris Pechacek, White Samaniego Campbell, Patillo Brown & Hill and Brooks Cardiel. A committee of 4, consisting of the Deputy City Manager, Internal Auditor, Director of Finance and Controller, independently scored the proposals based upon the following criteria as defined in the RFP:
1. Mandatory elements including demonstration of valid license, training and independence from the City.
2. Technical qualifications concerning rel...
Click here for full text