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HomeMy WebLinkAboutStaff Report 2304-13792 1 0 7 Policy & Services Committee Staff Report From: City Auditor Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: May 9, 2023 Report #:2304-1379 TITLE Approval of Office of City Auditor Task Order Change - FY23-05 Various Reporting & City Hotline RECOMMENDATION The City Auditor recommends that the Policy & Services Committee recommend City Council approve the change to the Task Order FY23-05 Various Reporting & City Hotline. ANALYSIS In accordance with our agreement with the City, Baker Tilly is required to conduct recurring activities each year. Task 5 is one of those recurring activities and described in our agreement as follows: Task 5. Preparation of Quarterly Reports, Annual Status Report, Provision of City Hotline, and Other Ongoing Office Administrative Functions The current contract, Amendment NO.1, includes the budget schedule for FY2022-23, FY2023- 24 and FY2024-25 that shows a budget amount of $60,000 each year for Task 5. The main activities related to this task have been meetings with management and City Council members and preparing staff reports for City Council and Committee meetings. However, Baker Tilly needs to perform other activities normally performed by the Internal Audit function, namely, engagement project management and annual audit plan monitoring. Additionally, in recent months, Baker Tilly started spending more time on the City Hotline-related activities. It is expected to have more activities at least for the next few months. To cover the hours and costs that will occur for the next few months, the budget allocated to the remaining two audits listed in the approved FY23 Audit Plan, Long Range Planning and ADA Compliance, need to be applied to Task 5. Baker Tilly proposed some of the budget for Long Range Planning to be applied to Task Order 4.20 Procurement Process Review ($19,350) and Task Order 4.08 Public Safety Building ($19,734). The remaining amount of $43,416 for Long Range Planning and the budgeted amount of $61,500 for ADA Compliance, totaling $104,916, 2 1 0 7 can be applied to Task 5. This will result in the total task order amount of $164,916 for the 621 project hours. The updated information is included in the attached modified Task Order FY23-05. FISCAL/RESOURCE IMPACT The change is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the FY 2023 Operating Budget for the Office of the City Auditor. ATTACHMENTS Attachment A: TASK ORDER FY23-05 Various Reporting & City Hotline (Modified) APPROVED BY: Adriane D. McCoy, City Auditor PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY23-05 Various Reporting & City Hotline (Modified) Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK ORDER NO.: FY23-005 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: July 1, 2022 COMPLETION: June 30, 2023 4 TOTAL TASK ORDER PRICE: $60,000 164,916 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: ▪SERVICES AND DELIVERABLES TO BE PROVIDED ▪SCHEDULE OF PERFORMANCE ▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: •Services and Deliverables To Be Provided •Schedule of Performance •Maximum Compensation Amount and Rate Schedule (As Applicable) •Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly will provide the following services in Task 5: •Quarterly Reports •Annual Status Report •Provision of the City Hotline •Office Administrative Functions •Engagement project management •Annual audit plan monitoring Deliverables: Legislative documents will be prepared to present the financial statements and reports prepared by an external auditor to the Finance Committee •Quarterly Reports (4 in FY23) •Annual Status Report Schedule of Performance Anticipated Start Date: July 1, 2022 Anticipated End Date: June 30, 2023 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $164,916 60,000. The not-to-exceed budget is based on an estimate of 185 621 total project hours, of which 135 376 are estimated to be completed by the City Auditor. Reimbursable Expenses Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $28,400. The following summarizes anticipated reimbursable expenses: •Round-trip Airfare – $6,700 (10 round trip flights) •Ground Transportation (car rental or Uber/taxi) - $6,700 •Hotel accommodation - $10,000 (40 nights) •Food and incidentals – $5,000