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HomeMy WebLinkAboutItem 10 Contract Extension for Audit Services AGENDA ITEM SUMMARY Meeting Date: 4/16/2012 Meeting Type:Regular Meeting Staff Contact/Dept.: Nathan Bell/Finance Staff Phone No: 726-2364 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Financially Responsible and Stable Government Services ITEM TITLE: CONTRACT EXTENSION FOR AUDIT SERVICES ACTION REQUESTED: Approve the extension of the contract with Grove, Mueller & Swank, PC for audit services for the City of Springfield, Springfield Economic Development Agency, Metropolitan Wastewater Management Commission, and Regional Fiber Consortium for the fiscal year ending June 30, 2012. ISSUE STATEMENT: The audit contract with Grove, Mueller & Swank, PC expires on April 21, 2012. Council approval is required to extend the contract to cover the fiscal year ending June 30, 2012. ATTACHMENTS: 1) Audit Contract Amendment DISCUSSION/ FINANCIAL IMPACT: It has been the City’s policy to award contracts for audit services for a period of three years with the option of an additional two one-year extensions. The original contract and the first extension with Grove, Mueller, & Swank, PC covered the fiscal years ending June 30, 2008 through June 30, 2011. We are recommending that Council exercise the second and final one-year extension based on the firm’s satisfactory job performance over the previous contract period. This extension will expire April 16, 2013. The total contract cost for the audit of the fiscal year ending June 30, 2012 is $48,000. This is an increase of $3,000 (6.7%) over the previous year. While this increase is significantly larger when compared to prior years, the overall cost of the audit is reasonable in consideration of the increase in auditing requirements for organizations receiving Federal funds.