FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Selection of Accounting Firms to Perform Agreed Upon Procedures for FY 2020-21
RECOMMENDATION:
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Approve the engagement of Brown Armstrong in the sum of $30,195 for two agreed upon procedures reports, and approve the engagement of Davis Farr in the sum of $6,500 for one agreed upon procedures report.
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BACKGROUND:
In July 2020, the Board approved an FY 2020-21 Audit Workplan with three specific areas for Agreed Upon Procedures reports to be prepared by an independent accounting firm or firms. Those reports cover the following areas:
1. Benefits and Customer Service - Accuracy of Member Information
2. Benefits and Customer Service - Death Benefit Processes - Payments to Beneficiaries and Member Death Verification
3. Financial and Investment Operations - Cash management procedures and Wire transfer process.
In October 2020, staff released a Request for Proposals, which was posted on sbcera.org and publicized through social media. SBCERA received five proposals from qualified independent accounting firms.
A committee consisting of the Chief Financial Officer Amy McInerny, Chief Executive Officer Debby Cherney and both Accounting Managers Christina Cintron and Jayson Eaton reviewed and evaluated the proposals. Two firms stood out from the others in terms of the thoroughness of their proposed procedures, and staff recommends that the Committee recommend that the Board approve contracts as follows:
1. Brown Armstrong - $30,195
a. Benefits and Customer Service - Accuracy of Member Information
b. Benefits and Customer Service - Death Benefit Processes - Payments to Beneficiaries and Member Death Verification
2. Davis Farr - $6,500
a. Financial and Investment Operations - Cash management procedures and Wire transfer process.
Brown Armstrong is recommended due to their in-depth industry knowledge and pension experience. They are currently the financial statement auditors for SBCERA, so thes...
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