Agenda Date: 10/06/2026
Subject:
Title
Motion to approve an amendment increasing the cost of the Plante Moran Engagement for the 2025 Fiscal Year Audit
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Laurie Matta, Finance Director |
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Presentations: |
N/A |
PURPOSE:
Pursuant to Section 33 of the Littleton City Charter, the City is required to engage certified public accountants to conduct an annual independent audit. Council approval is requested to amend the cost of the engagement with Plante Moran to complete the City's 2025 Fiscal Year audit.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The master agreement with the City’s auditor firm, Plante Moran, anticipates annual audit services for up to five years, from 2023 through 2028. Each year, staff requests Council approval of an engagement letter outlining the services and fees for that year's audit.
The 2025 Fiscal Year audit has required additional time and resources due to financial reporting and reconciliation challenges associated with the City's implementation of Workday. Fiscal Year 2025 is the first full fiscal year in which the City has utilized Workday.
Beginning in October 2025, the City engaged a vendor to assist with Workday configuration challenges. Cost allocations and vendor automations required reconfiguration to ensure revenues and expenditures were accurately reported. The majority of the originally identified corrections were completed by May 1, 2026.
However, the current Workday configuration does not fully support the City's audit reporting requirements. As a result, financial statements have required significant manual preparation. These reporting limitations have continued to affect the Finance Department's ability to reconcile accounts and prepare accurate financial statements in a timely manner.
The resulting delays in the City's financial statement preparation also delayed the auditor's ability to complete audit procedures within the original anticipated timeframe. On June 11, 2026, the Mayor signed a request for an extension of the audit filing deadline with the State Auditor's Office. The State Auditor approved the extension on June 23, 2026.
The additional work for the City has caused additional work and project time for the auditors. Plante Moran has requested an amendment to this year’s engagement letter agreement in the amount of $58,950 to complete the 2025 Fiscal Year audit.
BACKGROUND:
Section 33 of the Littleton City Charter requires the City to have an independent annual audit conducted by a registered or certified public accountant and limits the same accounting firm to five consecutive years of service.
In 2023, the City issued a Request for Proposals (RFP) for the selection of a new auditing firm. Mayor Schlachter and then Mayor Pro Tem Barr assisted staff with the proposal review and interview process. Plante Moran was subsequently recommended by the review committee and selected as the City's auditing firm.
Due to the financial reporting and reconciliation challenges associated with the City's Workday implementation, additional time is required to complete the audit.
Prior Actions or Discussions
On April 21, 2026, City Council approved the engagement letter with Plante Moran for the 2025 Fiscal Year audit.
FISCAL IMPACTS:
The original fees for the 2025 Fiscal Year audit were $117,900, which includes the required Single Audit. The additional cost associated with extending the audit engagement is $58,950. Approval of the amendment would result in a total audit cost of $176,850 for the 2025 Fiscal Year.
STAFF RECOMMENDATION:
Staff recommends that City Council approve the amendment increasing the cost of the Plante Moran engagement to complete the 2025 Fiscal Year audit.
ALTERNATIVES:
The City is required by the City Charter to complete an independent audit for each fiscal year. Council may decline to approve the additional cost; however, the audit must still be completed to satisfy the City's statutory and reporting requirements.
PROPOSED MOTION:
Proposed Motion
I move to approve the amendment increasing the cost of the Plante Moran engagement by $58,950, for a total cost of $176,850, to complete the City's 2025 Fiscal Year audit.