Body
Department of Finance
Reference:
To: Mayor Richard N. McLean and Members of City Council
Through: Philip Rodriguez, City Manager
Prepared By: Jean Starr, Finance Director
Date Prepared: November 28, 2017
PURPOSE
To request City Council approval of Hamblin & Associates, LLC as the auditor to audit the City's 2017 financial statements.
BACKGROUND
Financial Policy
In January 2017, the City adopted the "Independent Audit Policy" (see Attachment.) Section IV. Appointment of Auditor states:
"To create a balance between independence, fresh perspectives, staff continuity, audit efficiency and competitive pricing the City will solicit proposals for auditing services at least every five years. The auditor selected shall have no direct personal interest in the fiscal affairs of the City, an elected official of the City, or any employee of the City. The incumbent auditor is barred from responding to the solicitation unless the firm can indicate a rotation of principals.
The Council shall annually approve the appointment of an auditor to audit the City's financial statements."
History of Recently Appointed Auditors
Hamblin & Associates, LLC has audited the City's 2013, 2014, 2015 and 2016 financial statements. Hamblin & Associates, LLC was started in late 2012 by Lyman Hamblin who worked for the CPA firm, Johnson & Associates. At the time Hamblin & Associates LLC was engaged in 2013 no formal solicitation was completed.
Johnson and Associates was appointed to audit the City's 2011 and 2012 financial statements. Dean Johnson was the principal in charge of the 2011 and 2012 audits. The Johnson and Associates firm was dissolved due to Mr. Johnson's medical illness.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
FINANCIAL IMPACT
Appropriation for audit services has been included in the 2018 adopted budget.
STAFF RECOMMENDATION
Staff recommends appointment of Hamblin & Associates, LLC to audit the City of Brighton's 2017 financial statements. Also,...
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