City Council

(21) 22-1022-S1 BUDGET, FINANCE AND INNOVATION COMMITTEE REPORT relative to the annual audit and a request for authority to execute a contract with Macias, Gini and O’Connell, LLP, for single audits of Fiscal Years (FY) 2022-23, 2023-24, and 2024-25. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: AUTHORIZE the Controller, with the assistance of the City Administrative Officer and the Board of Public Works (BPW), to award the annual audit contract for the FYs 2022-23, 2023-24 and 2024-25, with options to extend the contract for up to two additional years covering FYs 2025-26 and 2026-27 to Macias, Gini and O’Connell, LLP. AUTHORIZE the Mayor and City Council President to execute the contract, attached to the Council file, as reviewed by City Attorney as to form, on behalf of the City. INSTRUCT the BPW, Office of Accounting, to arrange for the Sewer Construction and Maintenance Fund to reimburse the General Fund in the amount of $96,965 for the 2022-23 FY audit. For audits in the following years, the actual fees and hourly rates for each subsequent year will be increased by 2 percent each year over the preceding year. INSTRUCT the Los Angeles Department of Transportation to arrange for the Assembly Bill 2766 Audit to reimburse the General Fund in the amount of $26,633 for the 2022-23 FY audit. For audits in the following years, the proposed fees and hourly rates for each subsequent year will be increased by 2 percent each year over the preceding year. INSTRUCT the Los Angeles Housing Department (LAHD) to arrange for the Low and Moderate Housing Fund to reimburse the General Fund in the amount of $40,617 for the 2022- 23 FY audit. For audits of the following years, the 2023-24 FY amount will be increased by 2 percent each year over the preceding year. INSTRUCT the LAHD to arrange for the McKinney Act Savings Fund to reimburse the General Fund in the amount of $17,594 for the 2023-24 FY audit. REQUEST the Controller to work with the relevant Departments to reimburse the General Fund using various grant funds from their portion of the single audit where funds are available and where grant provisions allow for payment of audit costs either directly or through the City’s Cost Allocation Plan. INCORPORATE in the Adopted Budget General City Purposes budget funding to cover the audit costs of each FY.