Amended Item 3E- Selection of Audit FirmCITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AMENDED ITEM 3E
SEPTEMBER 12, 2016
AGENDA ITEM: Selection of Audit Firm
SUBMITTED BY: Audit Selection Committee:
John Stinson, City Commissioner
Nelson Van Liere, City Manager
Russell Caffey, Finance Director ~y
DATE: September 7, 2016
BACKGROUND: The City Commission authorized the staff to advertise and take proposals for the selection
of an audit firm to perform annual audits of the City's financial statements for a four year
term with an optional two year extension . The City formed an Auditor Selection
Committee consisting of Commissioner John Stinson, City Manager Nelson Van Liere and
Finance Director Russell Caffey.
BUDGET:
The Committee met on August 30, 2016 to discuss the received proposals. Three firms
responded with proposals. Qualifications, price, location and past history were
discussion topics . Based on this discussion the committee selected two firms to interview.
Those firms were interviewed on September 6, 2016. After completion ofthe interviews,
the Committee discussed the merits of both firms. At the conclusion of the meeting the
Committee came to a consensus and recommends the firm of Purvis Gray & Co. The
Committee also recommends that the firm be required to rotate their partner on the
engagement for fiscal year 2017 .
There are sufficient funds in the Finance Department Budget for this year's cost and the
remainder will be included in subsequent year's budgets . The price proposal submitted
by Purvis Gray is less than the current year's budget.
RECOMMENDATION: Authorize the City Manager to engage Purvis Gray & Company for a term of four
years with the option to extend an additional two, one year periods, per dollar cost bid
submittal attached .
ATTACHMENT: Audit Selection Committee Price Reconciliation
Dollar Cost Bid-Purvis Gray & Company
Proposal-Purvis Gray & Company {PDF copy linked-hardcopy available upon request)
CITY MANAGER APPROVAL: ---11-~ o?~
Firm Name
FY16 $
FY17
FY18
FY19
$
Single Audit Fed 1
Single Audit State2
SRF Loan report
Estimated Hours
City of Atlantic Beach
AMENDED ITEM 3E
SEPTEMBER 12, 2016
Auditor Selection Committee Price Reconcilation
Moore Stephens Lovelace Carr Riggs Ingram Purvis Gray & Company
Orlando Gainesville Gainesville
46,000 $ 42,000 $ 40,800
47,000 42,750 41,000
48,000 43,750 42,000
49,000 45,000 43,000
190,000 $ 173,500 $ 166,800
3,500 2,800 3,000
2,500 1,000 3,000
2,000 300 500
n/a 390 380
1 -Applicable only if COAB spends more than $750k in federal funds in a fiscal year. I do not think we
will meet this threshold in FY16 or FY17
2 -Applicable only if COAB spends more than $7501< in state funds in a fiscal year. I do not think we w i ll
meet this threshold in FY16 or FY17
Do l lar Cost Bid
PURVIS, GRAY AND COMPANY, LLP
PROFESSIONAL AUDITING SERVICES
CITY OF ATLANTIC BEACH, FLORIDA
REQUEST FOR PROPOSAL NO. 16-03
DOLLAR COST BID
Estimated
Partner
Managers and Seniors
Staff
Clerical
All-inclusive Fee for Audit, September 30, 2016
All-inclusive Fee for Audit, September 30,2017
All-inclusive Fee for Audit, September 30,2018
All-inclusive Fee for Audit, September 30, 2019
Additional Fee for Federal Single Audit, if Appli cab I e, Each Year
Additional Fee for State Single Audit, if Applicable, Each Year
Additional Fee for Project-specific SRF Loan Report
Hours
80
200
60
40
380
Quoted
Hourly
Rates
$ 150 $
110
80
so
$
$
$
$
$
$
$
The above fee quote i nc I udes any out-of-pocket costs that may be incurred (i.e., travel, lodging, etc.).
Hourly rates for additional serv i ces vary based upon the I evel of staff (i.e., partner, senior, etc.)
required to perform the additional services. We agree to perform additional services at the same
hourly rates set forth above for completion of the basic audit.
Authorized Signature: _<6:J,_...o~:::.~~'--~-.!...------
Ronald D. Whitesides, C.P.A., Partner
City of Atlantic Beach, Florida-RFP# 16-03
AMENDED ITEM 3E
SEPTEMBER 12, 2016
Total
12,000
22,000
4,800
2,000
40,800
41,000
42,000
43,000
3,000
3,000
500