For City Council Meeting [January 8, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
Sean Grayson, Interim City Administrator
FROM: Jessica Brown, Finance Director
Title
Request City Council to Authorize a Purchase Order Change Notice (2019-1059) with Robert Half International, Office Team in the amount of $17,000 to Provide Audit Accounting Services in the Finance Department for Fiscal Year 2018/19, increasing the Purchase Order to a total of $32,000.
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BACKGROUND:
Beginning in fiscal year 2017-18 and into 2018-19, the Finance Department (Department) has experienced significant staff turnover. This combined with a decrease of four positions over the last five years has resulted in key financial tasks not being completed thus impacting the 2017-18 yearend close and financial audit.
In October, 2018, the Department procured temporary audit accounting services from Robert Half International, Office Team to assist with the completion of financial tasks to support the 2017-18 year end close and financial audit. A purchase order for $15,000 was authorized to supplement staff. It is estimated that the financial audit should be completed by the end of February 2019. The Department seeks to extend the current purchase order with Robert Half International, Office Team to continue temporary audit accounting services through yearend close and the financial audit to ensure the City’s financial records are up-to-date and accurate. The City will terminate the services shortly after final audit fieldwork.
ANALYSIS/DISCUSSION:
The temporary audit accounting services provided through Robert Half International, Office Team provide the Department with specific catch up work relating to audit reconciliations... The Department has not been able to timely complete key financial tasks due to various vacancies in the latter half of 2017-18 and the first half of 2018-19 including the Finance Manager, Accounting Supervisor, an Accounting Technician, Payroll Analyst, and the elimination of one Accountant position in 2017-18. External auditors will be on site for final fieldwork in late January and the City must have all reconciliations for 2017-18 completed before draft audited financials are produced.
A purchase order change notice of $21,000 is required in order to extend the temporary services through early February 2019. After the change notice is processed, the total purchase order will be $36,000.
ENVIRONMENTAL IMPACT:
Pursuant to Section 15378 of the California Environmental Quality Act, the proposed request is not a project. A ‘Project’ means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. A project does not include the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment or Organizational, or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and approved this staff report
FINANCIAL IMPACT:
Operating Budget Impact
The total cost associated with the approval of this item for the Purchase Order Change Notice is $21,000 for a total Purchase Order amount of $36,000. Temporary staff from Robert Half International is charged at $48.79 per hour for an Audit Accountant. Due to turnover within the Finance Department, there is estimated personnel savings in the amount of $166,122 from partial vacancies of the Finance Director, Accounting Supervisor, and Payroll Analyst position in Account Numbers 010-500-2150-1001, 010-500-2151-1001, and 010-500-2156-1001.
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
Licensing
Prior to execution of the Purchase Order Change Notice, the vendor shall submit a business license application and pay a Business License tax at the rate of $104.00, as well as Administration and State fees.
RECOMMENDATION:
Staff recommends that the City Council Authorize a Purchase Order Change Notice (2019-1059) with Robert Half International, Office Team in the amount of $21,000 to provide temporary audit accounting services in the Finance Department through February 2019, increasing the total Purchase Order to $36,000.