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Sponsored by: Hunt <br /> CITY OF SEWARD,ALASKA <br /> RESOLUTION 2018-013 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, APPROVING AN EXTENSION TO THE AUDIT CONTRACT <br /> WITH BDO USA, LLC FOR THE YEARS 2017 AND 2018, AND <br /> APPROPRIATING FUNDS <br /> WHEREAS,the Seward City Council passed Resolution 2015-014 on February 23,2015, <br /> authorizing a three-year contract with BDO USA, LLC ("BDO") with an option to extend for an <br /> additional two years; and <br /> WHEREAS,the original resolution and the certified resolution posted in the City's official <br /> legislative history, shows the two-year extension can be authorized at the discretion of the city <br /> manager. The certified resolution failed, however, to take into account an amendment made by <br /> Council at the time of passage, which authorized the extension to be approved instead by the City <br /> Council; and, <br /> WHEREAS,the City's audit was conducted by BDO in 2014,2015 and 2016 and the current <br /> auditor's performance has been excellent and within budget,despite the City's transition to a new <br /> financial accounting system and a new federally qualified health center during this period of <br /> performance, as well as implementation of the new Governmental Accounting Standards Board <br /> (GASB) Statement No. 68 related to allocation of pension liabilities, with another major GASB <br /> Statement coming forth in 2018 related to the allocation of pension-related healthcare liabilities;and <br /> WHEREAS,auditor rotation is common in the private sector but less common in the public- <br /> sector where the lack of competition among audit firms fully qualified to perform public-sector <br /> audits is often managed through mandatory turnover of individual audit staff rather than audit firms, <br /> and between 2014 and 2017 the majority of the audit team serving on the City's audit experienced <br /> rotation,including the two highest-level auditors; and <br /> WHEREAS, BDO has served as the auditor for both the City of Seward and the Seward <br /> Community Health Center("CHC") where synergies are gained by utilizing the same firm, since <br /> most of the financial transactions of the Seward CHC are reported within the Comprehensive Annual <br /> Financial Report of the City; and <br /> WHEREAS,the City's audit is scheduled to begin in eight weeks,and a competitive request <br /> for proposals process is expected to result in a delay of the audit fieldwork,potentially delaying the <br /> audit until May or later, with May being the month where finance staff is fully engaged in the <br /> system-wide automated electric meter exchange project, with sole responsibility for ensuring the <br /> accuracy of utility billing changes,making staff unavailable for audit work in May; and <br /> WHEREAS, the current contract with BDO resulted from a competitive request for <br /> proposals ("RFP") process in 2015 where, for the third consecutive time, only two qualified and <br />