TITLE: Title
Independent Audit Contract for FY 2016-17
PURPOSE: To award contract for the Town’s annual independent audit for the fiscal year ending June 30, 2017.
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DEPARTMENT: Finance
CONTACT INFORMATION: Arche L. McAdoo, 918-7439
INFORMATION: The Local Government Budget and Fiscal Control Act (LGBFCA) requires each local government to prepare an annual financial report on their financial position at the end of the fiscal year and financial results of operations. The LGBFCA also requires that this financial report be audited by an independent certified public accountant.
Dixon Hughes Goodman LLP, the Town’s independent auditor, has submitted a contract to audit the Town’s accounts and letter of engagement for the fiscal year ending June 30, 2017. The audit cost is $51,490.00, unchanged from last year. Depending upon the total expenditures of state and/or federal funds (e.g. Powell Bill Funds), the Town may be required to have one or more single audits prepared. The additional cost would be $3,000 for up to two major programs and $1,750 for any additional major program thereafter. At the request of the Town, Dixon Hughes Goodman LLP has included preparation of the Town’s annual financial statements at an additional cost of $3,100.00.
FISCAL & STAFF IMPACT: The total cost for audit and financial statement preparation will not exceed $59,340.00. Funds for the cost of the annual audit and financial statement preparation have been requested in the Finance Department’s FY 2017-18 general fund operating budget.
RECOMMENDATION: That the Board: 1) award a contract to Dixon Hughes Goodman LLP for a total cost not to exceed $59,340 for audit of Town accounts and preparation of annual financial statements for fiscal year ending June 30, 2017; and, 2) authorize the Mayor to sign the Audit Contract and the Dixon Hughes Goodman LLP Letter of Engagement required by the Local Government Commission.