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Consequently, only a handful of CPA flrnls have actually performed audits on governments that have adopted the new standard. KDV, as the City's auditor is among the very few. During the past several weeks, Staff conducted a review of the services provided by KDV, and is very pleased with their professionalism, expertise, and overall performance. Recommendation For the reasons noted above, it is Staffls preference to forgo a formal, Request-for-Proposal (RFP) process and instead, negotiate a contract e�tension with the firm of KDV for an additional three (3) year period. This recommendation is based on the following: ❑ The level of changes in the City's finance and accounting operations has placed an unusually high amount of strain against the finance, accounting, and audit functions. Maintaining continuity with respect to the City's auditors will help facilitate the remaining transition issues, and allow for a more effective audit process over the next few years. 0 Given the relative few CPA fltlris that have proven expertise in auditing financial statements under the new industry standards, Staff estimates that very few firms will be in a position to provide a competitive bid for a new contract. ❑ By negotiating a contract extension, the City will be in a better position to select a timeframe for the audit that is more timely and more balanced with respect to our current fiscal calendar. It may also increase the likelihood of experienced personnel being assigned by the audit ium. Because the professional relationship between the City and KDV is relatively new, Staff does not believe that public confidence, or the independence of the audit itself, would be compromised by renewing for another three (3) year term. In addition, given the current number of qualified CPA firms in a position to bid for services, a strong probability e�sts that KDV would indeed provide the most competitive, qualified bid. In the event that negotiations between Staff and KDV fail to secure a competitive contract, Staff is prepared to initiate an RFP process. Staff will present the terms of the contract to the Council for formal approval at a later date.