ORDINANCE NO. 240552
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Sponsor: Director of Finance Department
Authorizing the Manager of Procurement to enter into a contract with Allen, Gibbs & Houlik, L.C., to perform the annual independent audit of the City’s books and records for the fiscal year ending April 30, 2024, to perform other audit services, as requested, and to perform audit and tax services for various component units; further authorizing the Director of Finance to pay up to $714,250.00 in consideration for said audit and audit-related services; and recognizing this ordinance as having an accelerated effective date.
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WHEREAS, the City Charter, Section 836, requires that an annual audit be performed by an independent Certified Public Accountant, and the Federal and State governments are requiring recipients of Federal grants to utilize the OMB Compliance Supplement concept to perform a financial and compliance audit and requiring airports to audit facility charges on an annual organization-wide basis; and
WHEREAS, following the issuance of a request for proposals and evaluation of responses, the firm of Allen, Gibbs & Houlik, L.C., is found to be qualified to perform an audit of the City’s records, and to prepare both the annual report and the single audit concept and other audit-related services; and
WHEREAS, this is the first year of a five (5) year agreement with Allen, Gibbs & Houlik, L.C., pursuant to the provisions in the request for proposal (RFP) for audit services released in 2024 for both the City and various component units; and
WHEREAS, a revenue estimate reflecting reimbursement from component units for audit services in the amount of $120,250.00 was not included in the FY2024-25 Adopted Budget and the appropriation for component unit audit services does not currently reflect the full cost for those services. As a result, the revenue estimate and appropriation increase is included herein; and
WHEREAS, in order to implement these contractual services, it is necessary that the City be authorized to enter into a contract with Allen, Gibbs & Houlik, L.C., to provide an independent audit of the City’s books and records for the fiscal year ending April 30, 2024, other audit related services, and to provide an independent audit of various component units’ books and records for the fiscal year ending April 30, 2024, and related Internal Revenue Service 990 tax returns; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Manager of Procurement is hereby authorized to enter into a contract on behalf of the City, with Allen, Gibbs & Houlik, L.C., to perform the annual independent audit of the City’s financial books and records for the fiscal year ending April 30, 2024, to perform other audit-related services, and to provide an independent audit of various component units’ books and records for the fiscal year ending April 30, 2024, and related Internal Revenue Service 990 tax returns. A copy of said contract, in substantial form, is on file in the Manager of Procurement’s offices.
Section 2. Estimating revenue in the amount of $120,250.00 in the General Fund to the following account:
25-1000-129110-486110 Reimbursement for Audit Fees $120,250.00
Section 3. That the sum of $13,165.00 is hereby appropriated from the unappropriated fund balance of the General Fund to the following account:
25-1000-129110-B Independent Audit - Component Units $ 13,165.00
Section 4. That the Director of Finance is hereby authorized to expend up to $714,250.00 as consideration for the Fiscal Year 2024 financial audit from previously appropriated funds in the following funds and accounts:
25-1000-129100-B Independent Audit $405,000.00
25-1000-129110-B Independent Audit - Component Units 120,250.00
25-2330-512131-B Safety Net Providers 21,000.00
25-8010-809100-B Independent Audit 41,000.00
25-8110-809100-B Independent Audit 41,000.00
25-8300-629100-B Independent Audit 86,000.00
TOTAL $714,250.00
Section 5. That this ordinance, relating to the appropriation of money, is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter and shall take effect in accordance with that section.
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I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
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Tammy L. Queen
Director of Finance
Approved as to form:
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Samuel Miller
Assistant City Attorney