Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 20, 2024
Subject
SUBJECT: ANNUAL FINANCIAL AND COMPLIANCE AUDITS OF METRO AND ITS COMPONENT UNITS FY24-29
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award a firm-fixed unit rate Contract No. PS108960(2)000 to Crowe LLP (Crowe) to perform annual financial and compliance audits of Metro and its component units in the not-to-exceed (NTE) amount of $2,096,970 for the five-year base term, and $464,450 for the one-year option term, for a total combined NTE amount of $2,561,420, effective July 1, 2024, subject to resolution of all properly submitted protest(s), if any.
Issue
ISSUE
Metro is required to have an independent Certified Public Accountant to perform annual financial and compliance audits. The audit reports are submitted to funding partners and financing institutions relative to Metro bond issues. The recommended contractor shall begin with the audit of Metro's financial statements and component units starting the fiscal year ending June 30, 2024.
Background
BACKGROUND
Los Angeles County Metropolitan Transportation Authority (Metro) was created by State of California Assembly Bill 152, Los Angeles County Metropolitan Transportation Authority Reform Act of 1992, which became effective on February 1, 1993. Metro is unique among the nation's transportation agencies. It serves as a planner, coordinator, designer, builder, operator, and funding partner of the transportation network serving the most populous county in the nation. State law requires Metro to publish a complete set of audited financial statements within six months of the close of each fiscal year.
The financial and compliance audits must be conducted in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards
(Government Auditing St...
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