NRS 354.624 requires the City provide for an annual audit of all of its financial statements in accordance with Generally Accepted Auditing Standards and that the audit be presented to Council.  NRS 354.624 (3) provides that the Council may, without requiring competitive bids, designate the auditor or firm annually.

The City’s auditors also prepare portions of the City’s Comprehensive Annual Financial Report (CAFR) as part of the services provided.

If approved, the City of Sparks will enter into a contract with Eide Bailly, LLP to provide financial statement audit services for fiscal years ending June 30, 2015 through June 30, 2017, with an option of extending for three years through June 30, 2020.

A request for proposals (RFP) for audit service, under RFP#14-15-009, was advertised on December 3, 2014 in the Reno Gazette Journal and known interested vendors were alerted to the availability of the proposal package via email.  The City received three proposals by the January 14, 2015 deadline which were reviewed and evaluated by finance department staff.  The RFP requested two separate quotes for services.  In the first scenario, the provider would audit the financial statements and prepare the Consolidated Annual Financial Report (CAFR).  In the second scenario, the provider would audit the CAFR as prepared by City staff.  The proposals are summarized and attached to this staff report.

One of the three respondents is Eide Bailly, LLP which recently merged with Kafoury Armstrong & Co.  Kafoury has performed audit services for the City for a number of years.  Under their proposal, Eide Bailly, LLP, has offered audit staff that is essentially the same as we had last year, or to rotate the partner and/or staff as desired by the City.  Their proposed fees for the fiscal 2015 audit ($136,100) represents a decrease of $600.00 for the City audit and a decrease of $7,300 for the Truckee Meadows Water Reclamation Facility audit.  

Finance department staff is in complete agreement that retaining experienced audit staff with knowledge of City operations will result in a quality audit.  Eide Bailly, LLP offers  such resources whereas other service providers cannot.

1. The City Council may approve the contract with Eide Bailly, LLP to provide financial statement audit services for the City of Sparks and the Truckee Meadows Water Reclamation Facility for fiscal years ending June 30, 2015 through June 30, 2017, with an option of extending for each of the three subsequent fiscal years through June 30, 2020.
2. Council may direct the Manager to provide other alternatives.

I move to approve the contract with Eide Bailly, LLP to provide financial statement audit services for the City of Sparks and the Truckee Meadows Water Reclamation Facility for fiscal years ending June 30, 2015 through June 30, 2017, with an option of extending for each of the three subsequent fiscal years through June 30, 2020.