To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Resolution Authorizing the Engagement of FORVIS, LLP, for the Fiscal Year 2023 Town of Castle Rock Independent Annual Audit
Body
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Executive Summary
The Finance Department staff requests the Town Council’s approval to designate FORVIS, LLP (formerly BKD, LLP) as the Independent Audit firm for the fiscal year ending December 31, 2023. Extending the audit engagement with FORVIS, LLP to a total of six years will provide for greater audit efficiencies and aligns with the Government Finance Officers Association (GFOA) guidance and industry standards.
Discussion
Since 2018, FORVIS, LLP has served as the Independent Auditor and successfully completed the annual financial audit, single audits as needed, and consent letters for the Town of Castle Rock. Additionally, FORVIS, LLP has served as an essential resource in preparing for and implementing new Government Accounting Standards Board (GASB) statements.
The Government Finance Officers Association (GFOA) guidance and industry standards recommend that municipalities enter into multiyear agreements of at least five years in duration when obtaining services of independent auditors to allow for greater continuity and to help minimize the potential for disruption in connection with the independent audit.
Budget Impact
The cost quoted for audit services from FORVIS, LLP is $85,665 and for single audit services is $10,250 per major program for the year ended December 31, 2023. Single audit services are anticipated for two federal programs for a total of $20,500. Due to the nature of audit services, the majority of the expenses for an audit are incurred in the subsequent year. Therefore, costs for the audit services proposed by FORVIS, LLP are included in the proposed budget for fiscal year 2024.
Attachments
Attachment A: Sole Source Justification Form
Attachment B: Service Agreement
Attachment C: Resolution