11-20-2015 BPU RPT 07 - Laserfiche WebLink

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Wni =R tvtRUv ii -- RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: NOVEMBER 20, 2015 ITEM NO: 7 File ID — 15 -3687 — D SUBJECT: PROFESSIONAL SERVICES AGREEMENT FOR THE FINANCIAL AND PERFORMANCE AUDIT PROGRAM FOR THE RIVERSIDE PUBLIC UTILITIES — FOR $135,000 ISSUE: The issue for Board of Public Utilities consideration is to approve an expenditure in the amount of $135,000 for a financial and performance audit, and to recommend that the City Council approve a Professional Services Agreement for the work by outside auditors. RECOMMENDATIONS: That the Board of Public Utilities: Approve the expenditure of $135,000 for the financial and performance audits; 2. Recommend that the City Council approve a Professional Services Agreement with Baker Tilly Virchow Krause, LLP. ( "Baker Tilly "), of Madison, Wisconsin, in an amount not to exceed of $135,000 to conduct a financial and performance audit of Riverside Public Utilities; and 3. Recommend that the City authorize the City Manager, or his designee, to execute the Agreement, including making minor, non - substantive changes, and to sign all documents and instruments necessary to complete the transactions. BACKGROUND: On July 28, 2015, the City Council endorsed the Financial and Performance Audit Program providing for comprehensive and independent financial and performance audits of all departments by qualified experts on a five -year rotating basis. The first three departments to be audited are the Human Resources Department, Finance Department and Riverside Public Utilities. On August 7, 2015 the Board of Public Utilities made recommendations to the City Council regarding the scope of the proposed financial and performance audits. On August 11, 2015, the City Council approved the recommended scope. On September 9, 2015, Request for Qualifications (RFQ) 1547 was issued to seek proposals to provide independent, outside audits the Finance Department, Human Resources Department and Riverside Public Utilities.