05 Staff Report
PREPARED BY: Stephen Conway
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/17/2020
ITEM NO: 5
DATE: March 11, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to execute a first amendment to the agreement
for financial auditing services with Badawi and Associates to extend the
contract for two years for a total contract amount not to exceed $167,985.
RECOMMENDATION:
Authorize the Town Manager to execute a first amendment to the agreement for financial
auditing services with Badawi and Associates to extend the contract for two years for a total
contract amount not to exceed $167,985.
BACKGROUND:
In 2017, the Town of Los Gatos issued a Request for Proposals (RFP) for qualified independent
certified public accounting firms to audit its annual financial statement for three fiscal years (FY
2016/17, 2017/18, and 2018/19), with an option to extend the agreement an additional two
fiscal years with Town Council approval. After a thorough review of the RFP responses, the
review committee selected Badawi and Associates, Certified Public Accountants as the firm to
provide the Town with auditing and other optional services.
DISCUSSION:
For the past three years, Badawi and Associates have provided the following services for the
Town:
• The annual audit of the basic financial statements in accordance with Governmental
Accounting Standards and preparation of the Town’s Comprehensive Annual Financial
Report (CAFR);
• A report communicating information related to the audit to the Town Manager and
Town Council at the conclusion of the audit;
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SUBJECT: First amendment to the agreement for audit services with Badawi and
Associates
DATE: March 11, 2020
DISCUSSION (continued):
• A management letter containing any comments or recommendations resulting from
the review of systems of internal controls in connection with the financial audit;
• A Single Audit for grant funding if required under the Title 2 U.S. Code of Federal
Regulations; and
• Optional services including the preparation of the annual report of financial
transactions to the State Controller.
CONCLUSION:
Authorize the Town Manager to execute a first amendment to the agreement for audit services
with Badawi and Associates to extend the contract for two years for a total contract amount
not to exceed $167,985.
FISCAL IMPACT:
Funds for this amendment will be included in the Town’s proposed FY 2020/21 Operating and
Capital Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Agreement with Badawi and Associates
2. First Amendment to provide auditing and optional services with Badawi and Associates.