TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
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Contract Amendment with Badawi & Associates for Auditing Services.
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RECOMMENDATION
Approve a contract amendment with Badawi & Associates to provide annual auditing services for FY 2025-26 and FY 2026-27 at a cost of $60,956 per year (totaling $121,912) and authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Funds in the amount of $60,956 will be included in the FY 2026-27 Proposed Budget, with ongoing appropriations to be programmed for FY 2027-28. Funding is contingent upon City Council adoption of the FY 2026-27 Budget.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City's values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
* Financial Stability
* Responsible Long-Range Planning
Revenue: Click or tap here to enter text.
Expenditure: 1003000-43515
Transfer In: Click or tap here to enter text.
Transfer Out: Click or tap here to enter text.
BACKGROUND
In 2023, the City of Chino issued a Request for Proposals for auditing services covering three fiscal years. On May 16, 2023, the City Council awarded a contract to Badawi & Associates for auditing services for an initial one-year term with two additional one-year options. The total contract value for the three-year term was $177,635.
ISSUES/ANALYSIS
According to the Government Finance Officers Association (GFOA), government entities should enter into a multiyear agreement of at least five years for audit services to support continuity of audit services. This two-year extension of the original three-year contract follows best-practice guidelines of the GFOA to ensure a quality audit by an auditor with institutional knowledge of the City.
For this contract amendment No. 3, Badawi & Associates has agreed to maintain the audit ye...
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