CITY COMMISSION AGENDA ITEM

Department:	Finance		Commission Meeting Date:  December 27, 2017
Staff Contact:	Bryan Kidney, Finance Director
Recommendations/Options/Action Requested:
Authorize Mayor and City Manager to sign an Audit Engagement Letter with Mize Houser & Company, P.A. covering the period ending December 31, 2017.
Executive Summary:		The City is required to have an annual financial audit performed by an independent auditing company. In 2013, the City Commission authorized engaging Mize Houser to conduct annual financial audit for 2013 and up to four additional years.  As 2017 will be the fourth additional year, the City will be issuing a new Request for Proposals before the next audit cycle.  Best practices as identified by the American Institute of Certified Public Accountants Professional Standards to include a governance line as an option for signature on the engagement letter. The engagement letter confirms that a common understanding of the terms of the audit engagement exists between the auditor and management and, when appropriate, those charged with governance. The attached engagement letter from Mize Houser & Company, P.A. describes in detail elements of the audit, management’s responsibility in preparation for the audit, and the associated fees and timing. Fees are based on the amount of time required at various levels of responsibility, including actual out-of-pocket expenses.  These fees are $39,975 with a single audit.  Single audits are required in each year that a city expends over $750,000 in Federal Awards. The auditors have communicated to staff that part of their fieldwork this year will be a review of the new accounts receivable procedures.
Strategic Plan Critical Success Factor		Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		The fiscal impact to the City is $39,975.  This item was in the 2018 Finance General Overhead budget.
Attachments:		Engagement Letter

Reviewed By: (for CMO use only)

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