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Finance Committee
Agenda Item Summary
ITEM TITLE: AGENDANO._ &.E.
Resolution No. 22-R-0016 — Audit Engagement Letter with Lauterbach | FILE NO.
& Amen, LLP for fiscal years ending December 31, 2022 through
December 31, 2024 COMMITTEE AGENDA DATE: February 24, 2022
COUNCIL AGENDA DATE: March 7, 2022
STAFF REVIEW: Linda M. Martin SIGNATURE.
APPROVED BY CITY ADMINISTRATOR SIGNATURE
ITEM SUMMARY:
With the completion of the annual audit for the fiscal year ended December 31, 2021, the term of the current four-year
engagement with Lauterbach & Amen, LLP will conclude. For each fiscal year that Lauterbach & Amen, LLP has audited the
City’s financial statements, the City has received the Certificate of Achievement for Excellence in Financial Reporting for its
annual report.
In October 2021, the Governmental Accounting Standards Board issued Statement No. 98, Annual Comprehensive Annual
Report (ACFR), officially changing the name comprehensive annual financial report to annual comprehensive financial report
and the acronym to ACFR (formerly CAFR). The Government Finance Officers Association (GFOA) has directed that any
reference to the report, as CAFR, be stopped immediately and refer to the report as “Annual Report” or ACFR. This policy
change is the result of a new understanding that the acronym CAFR mimics the pronunciation of a deeply derogatory term and
offensive racial slur often used in other parts of the world. GFOA has determined that there is a responsibility to act as part of
its commitment to diversity, equity and inclusion.
In order for an ACFR to be considered for the Certificate of Achievement award, the ACFR is evaluated by the GFOA -
Certificate of Achievement Program Special Review Committee. That Committee determines if the ACFR meets the program's
high standards of financial reporting techniques, full disclosure and clear communication of financial position of the City, as
measured by seventeen grading categories for which a grade is determined. Each ACFR submitted during the most recent
four-year engagement with Lauterbach & Amen, LLP has received the highest grade available of “Proficient” for all seventeen
grading categories.
Attached for your review is the engagement letter from Lauterbach & Amen, LLP that confirms the understanding of audit
services to be provided for fiscal years ended December 31, 2022 through December 31, 2024, annual audit fees of $43,000,
$43,870 and $44,740, and single audit annual fees of $4,000, $4,080 and $4,160 for the respective three years. The fee for
auditing services for fiscal year ended December 31, 2021 is $43,000; no increase in annual fee is being proposed for fiscal
year December 31, 2022. Appropriate funds have been budgeted in the proposed three-year budget for fiscal years 2022,
2023 and 2024, and as presented within the attached engagement letter.
The City has had a good working relationship with Lauterbach & Amen, LLP, including technical assistance provided by
Lauterbach & Amen with regard to other accounting and intergovernmental agreement matters. Therefore, staff recommends
approval of the engagement letter with Lauterbach & Amen, LLP, as attached.
ACTIONS PROPOSED: Approve Resolution No.22-R-0016 authorizing the Mayor to sign a three-year Engagement Letter with
Lauterbach & Amen, LLP for annual audit and single audit services, beginning with Fiscal Year 2022.
COMMITTEE RECOMMENDATION: Committee recommends approval of Resolution No. 22-R-0016 for authorization to
retain Lauterbach & Amen, LLP for annual auditing services for Fiscal Years 2022-2024.