AGENDA #4f

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manger

 

SUBJECT:       Audit Contract for Fiscal Year 2003-04

 

DATE:             May 24, 2004

 

The attached resolution would authorize the Mayor to sign a contract with the Certified Public Accounting firm of McGladrey and Pullen, LLP for conducting the annual audit for the 2003-04 fiscal year.  This designation would be based on the resolution adopted by the Council on April 24, 2000 expressing its informal commitment to retain this firm for the five-year period from 2000 to 2004, contingent upon McGladrey and Pullen’s satisfactory performance of the audit each year.

 

BACKGROUND

 

The Town’s required independent annual audit was performed for the last seven years by McGladrey and Pullen.  This firm is one of the leading firms in the State for governmental audits and provided a high quality audit report and audit services to the Town in the prior fiscal years.

 

On April 24, 2000, the Council adopted a resolution informally designating McGladrey and Pullen as auditors for the 1999-00 through 2003-04 fiscal years contingent upon satisfactory annual performance.

 

DISCUSSION

 

In accord with the resolution adopted by the Council in 2000, McGladrey and Pullen proposes to perform the 2003-04 audit for a fee not to exceed $45,000 unless the Town has additional major State or federal programs. 

 

Attached is a copy of the proposed Engagement Letter and the proposed contract for the audit.  The contract is in the standard form required by the Local Government Commission.  The contract must also be approved by the Secretary of the Commission.

 

RECOMMENDATION

 

That the Council adopt the attached resolution authorizing the Mayor to sign the proposed audit contract for 2003-04 with McGladrey and Pullen, LLP for a fee not to exceed $45,000 if the Town has no additional major State or federal programs from last year.


 

ATTACHMENTS

 

1.      McGladrey and Pullen CPA letter of April 28, 2004 (p. 4).

2.      Contract to Audit Accounts (p.11).


A RESOLUTION AUTHORIZING THE MAYOR TO SIGN THE ANNUAL AUDIT CONTRACT FOR FISCAL YEAR 2003-04 (2004-05-24/R-4)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Mayor to sign a contract with the Certified Public Accounting firm of McGladrey and Pullen, LLP in an amount not to exceed $45,000 if the Town has no additional major State or federal programs from last year and to accept a fee of no more than $2,500 for any single additional major State or federal program.

 

This the 24th day of May, 2004.