Title
Contract No. 2104125 External Auditor Services
Body
Agenda of: April 27, 2022
Item No.: 2022-147
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Brian Baker
Audit Committee Chairman
Great Lakes Water Authority
DATE: April 27, 2022
RE: Contract No. 2104125
External Auditor Services
Vendor: Baker Tilly US, LLP
MOTION
Pending recommendation of the Audit Committee, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes a contract in an amount not to exceed Eight Hundred Thousand and 00/100 Dollars ($800,000.00) which includes $201,500 for the audit of the annual financial statements for FY 2022, $211,500 for FY 2023, $222,000 for FY 2024, and $165,000 for other technical services, between the GLWA and Baker Tilly US, LLP to serve as the External Auditor of the GLWA for a term of three (3) years, and authorizes the Interim CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
According to the Articles of Incorporation, Article 7J, the Audit Committee shall, once every three (3) years, recommend three (3) independent certified public accounting firms that, in the judgment of the Audit Committee, possess sufficient resources and qualifications to conduct annual financial audits of the accounts of the Authority. From the three recommendations of the Audit Committee, the Board may select the independent certified public accounting firm with whom the Authority shall execute an agreement to conduct annual financial audits for the succeeding three (3) fiscal years of the accounts of the Authority.
JUSTIFICATION
Subject to a request for proposal process facilitated by GLWA Procurement, two qualified proposals were received on March 28, 2022 for external auditor services. Those proposals were reviewed to ensure that all minimum criteria was met and the written proposals were scored. Oral presentations were received on April 14, 2022 and a final scoring was then tabulated. As required by the Articles, the Audit Committee has reviewed and is forwarding the two (2) firms for consideration by the full Board in selecting the External Auditor for GLWA.
See attached Procurement Report and related supporting documents. All materials related to the proposal, proposal responses, and presentations are posted at www.glwater.org in the Audit Committee binder for the meeting on April 22, 2022.
FINANCIAL PLAN IMPACT
Summary: Annual financial auditing services is included in the financial plan.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Financial Reporting & Accounting... Administrative Services 884111
Expense Type(s): Auditing (611200) (Including annual external audit and other technical services)
Estimated Cost by Year and Related Estimating Variance:
Fiscal Year Amount
FY 2023 Budget $307,200.00
FY 2024 Financial Plan 313,400.00
FY 2025 Financial Plan 316,600.00
Total Financial Plan Forecast $937,200.00
Proposed Contract Amount $800,000.00
Forecast Variance (positive/ (negative)) $137,200.00
COMMITTEE REVIEW
This matter was reviewed at the Audit Committee on April 22, 2022. The Audit Committee unanimously recommended that the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes a contract in an amount not to exceed Eight Hundred Thousand and 00/100 Dollars ($800,000.00) which includes $201,500 for the audit of the annual financial statements for FY 2022, $211,500 for FY 2023, $222,000 for FY 2024, and $165,000 for other technical services, between the GLWA and Baker Tilly US, LLP to serve as the External Auditor of the GLWA for a term of three (3) years, and authorizes the Interim CEO to take such other action as may be necessary to accomplish the intent of this vote.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.