ITEM TITLE:
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Consider approving the amendment to the professional service agreement with Forvis-Mazars acknowledging that the firm will not be investigating the following: 1. Mergers or acquisitions, 2. Change in accounting principles, 3. Substantial doubt about the entity’s ability to continue as a going concern, 4. Violation of covenants in debt arrangements, 5. Indications of fraudulent financial reporting or misappropriation of assets, 6. Quantitative impairment analysis of long-lived assets.
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INITIATOR: Rebecca Johnson, Finance Director
STAFF INFORMATION SOURCE: Rebecca Johnson, Finance Director
1. BACKGROUND: Forvis-Mazars presented an amended professional services agreement after having executed a draft version during the working period of closing FY23 and beginning FY24 audits. The amendments were created to clarify 6 items that will not be investigated in their auditing process. The six transactions or activities that will not be contemplated by Forvis-Mazars per the amendment are: 1. Mergers or acquisitions, 2. Change in accounting principles, 3. Substantial doubt about the entity’s ability to continue as a going concern, 4. Violation of covenants in debt arrangements, 5. Indications of fraudulent financial reporting or misappropriation of assets, 6. Quantitative impairment analysis of long-lived assets.
EXHIBIT: City of Lawton Audit Contract, City of Lawton Contract Addendum, City of Lawton Agreed Upon Procedures
KEY ISSUES: N/A
FUNDING SOURCE: No new expenses to account for.
STAFF RECOMMENDED COUNCIL ACTION: Approve the Amended City of Lawton Audit Contract.