TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authorization to exercise the third renewal option and issue purchase order to McGladrey and Pullen, LLP, for professional auditing services for the fiscal year ending December 31, 2008, in an amount not to exceed $306,920.00, Account 101-40000-601170 and P802-11000-798200 (05-RFP-16) Requisition 1263218
Body
Dear Sir:
On November 3, 2005 the Board of Commissioners authorized the Purchasing Agent to issue a purchase order and enter into an agreement to McGladrey and Pullen, LLP for professional auditing services for the fiscal year ending December 31, 2005 audit, in an amount not to exceed $220,900.00.
Based on the satisfactory performance of the 2007 audit, authorization is requested to exercise the third of the four renewal options for the financial audit ending December 31, 2008.
McGladrey and Pullen, LLP will perform the audit in an amount not to exceed $306,920.00, which is $48,720.00 higher than the amount stated in the original agreement of November 29, 2005. The increase of $30,000.00 is required to cover auditing services for the GASB Statement on Auditing Standards 104 through 111 and the remaining $18,720.00 of the increase is required to provide for professional auditing services of the Metropolitan Water Reclamation District Retiree Health Care Trust.
Minority firm utilization is expected to remain unchanged with E.C. Ortiz & Co., Minority -owned Business Enterprise for approximately 20% and Velma Butler & Co., Women -owned Business Enterprise and Small Business Enterprise for approximately 10%. We anticipate these firms will work in the area of preparing the single audit, compliance testing, internal control testing and inventory and asset observations.
Funds are being requested in 2009 in Account 101-40000-601170 and P802-11000-798200, and are contingent on the Board of Commissioners approval of the District’s budget for that year.
Requested, Jacqueline Torres, Director of Finance/Clerk
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 18, 2008