To:  Dave Corliss, Assistant City Manager

From:  Ed Mullins, Finance Director

Date:  October 28, 2002

Subject:  Independent Auditor

            The initial three-year agreement with Lowenthal Singleton Webb & Wilson expired with the 2001 audit.  The City Commission approved an extension of the agreement for an additional two years.  The costs for the 2001, 2002, and 2003 audits were $24,700, $25,732, and $28,732, respectively.  The 2003 audit was more expensive because it included the initial implementation of GASB 34.   The proposed cost for the 2004 audit work is $25,700.

            The work of Lowenthal Singleton Webb & Wilson has been satisfactory.  Since the proposed cost of the audit is less than the cost of the prior two years, it is recommended that the agreement with the current auditor be extended for an additional year.  In addition, the firm has been contacted concerning the timing of the field work and completion of the audit report.  It is tentatively scheduled for the field work to begin about one month earlier than in previous years and for the basic financial statements to be completed in early May.

            The Finance Department would like to request City Commission approval of the selection of the firm of Lowenthal Singleton Webb & Wilson for the 2004 independent audit.  It is the intention of the Finance Department to prepare a Request for Proposal for the 2005 audit.  I will forward a copy of the proposed agreement to you.