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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☐ Safe & Prosperous |
☒ Motion |
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Finance |
☐ Active & Appealing |
☐ Resolution |
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☒ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
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Procurement |
☐ Unique & Creative |
☐ Public Hearing |
TITLE: t
Request for Proposals Award: Transaction Privilege (Sales) and Use Tax Auditing Services
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SUMMARY RECOMMENDATION: Summary Recommendation
Authorize the City Administrator to execute a one-year contract, with the option to renew for four additional one-year periods, at an estimated annual expenditure of $60,000.00, depending on the appropriation of funds and satisfactory performance to Albert Holler & Associates, Queen Creek, Arizona. (Finance - RFP-24-252) (Douglas Allen/Robin R. Wilson)
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STRATEGIC OUTCOME:
This supports the City Council’s strategic outcome of Respected and Responsible, as it assures the City is being a good steward of public funds by utilizing the firm to maximize revenues to the City and educate business owners.
REPORT:
In January 2015, the Arizona Department of Revenue (DOR) assumed responsibility for collecting sales taxes (transaction privilege taxes) for all Arizona municipalities. As part of this change, DOR also assumed responsibility for auditing those collections. At the same time, DOR staffing levels within the department has hampered the ability to conduct audits within those cities.
Since the change, the City has noted a significant drop in the number of local audits conducted by DOR. These audits are necessary to ensure that taxes are collected and reported properly, and the taxes passed onto the consumer are correct. Several local businesses have expressed support of an audit program to make sure that businesses complying with the law are not left at a competitive disadvantage.
A Request For Proposal (RFP) process was initiated to obtain proposals. The evaluation committee, comprised of City staff and outside representation, reviewed and rated the only proposal received, based on the scoring matrix in the RFP. The firm is a highly experienced audit firm that includes audits in most communities of the state. The firm will work with the City to conduct an audit of financial records required by law. The number of audits to be performed in a 12-month period is estimated to be a minimum of 12.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 60,000.00 |
BUDGETED: |
$ 60,000.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $60,000.00
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001-17-40.6291 |
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To total; right click number & choose “Update Field” |
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FISCAL IMPACT STATEMENT:
Ensuring TPT compliance, education and dollars recovered for the City greatly exceeds the auditor fees.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
None
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☒ Department
☐ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
05/28/2024 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
05/28/2024 |