Supporting Document (ffe363f2...)

■* V*
\ •'
I
Item 7
nnmgM
REPORT
\x
Meeting Date: 
April 28, 2026
Charter Provision: Provide for the independent annual audit of the City’s financial 
statements.
Objective: 
Financial StatementAudit Services Contract Extension
ACTION
Financial Statement Audit Services Contract Extension. Adopt Resolution No. 13649 
authorizing Contract No. 2025-076-COS-E1, the first one-year extension of with Heinfeld, 
Meech &Co., P.C. for the audit of the City’s FY 2025/26 financial statements and related 
services.
Background
The City Charter, Article 6 §14, requires the City's financial statennents to annually be audited 
by certified public accountants who are independent of the City’s fiscal affairs. The City 
Council (s to designate the CPA firm to perform the audit, which is to be conducted in 
accordance with generally accepted government auditing standards.
The contracted audit firm reviews the annual financial statements prepared by the City 
Treasurer's Office, including:
• 
the City's Annual Comprehensive Financial Report,
• 
annual reports for five component units: the Municipal Property Corporation and four 
Community Facilities Districts.
To help the City meet federal funding obligations, the CPA firm also audits:
• 
the City's schedule of expenditures of federal assistance and related compliance (the 
“Single Audit” report),
• 
Housing and Urban Development (HUD) required financial schedules and supporting 
data submitted to the Real Estate Assessment Center (REAC) database forfederally 
supported housing programs.
Additionally, to comply with state funding requirements, the CPA firm examines:
• 
the City's Annual Expenditure Limitation Report (AELR),
• 
and ensures proper use of the Highway User Revenue Fund (HURF).
City Council approved the initial contract award to Heinfeld, Meech & Co., P.C., on May 20, 
2025, with the option to renew for 4 additional one-year terms. Renewal is contingent upon
Action Taken

City Council Report | FINANCIAL STATEMENT AUDIT SERVICES CONTRACT EXTENSION
recommendation of the City Auditor, concurrence of the Purchasing Director, and City Council 
authorization. This is the first requested contract extension under this contract.
ANALYSIS & ASSESSMENT 
Policy Implications
The award of this contract aligns with the City Charter and the related Council-adopted financial 
policy. These require the Council to designate the certified public accountants to perform the annual 
financial statement audit and to receive the resulting audit reports.
RESOURCE IMPACTS 
Available funding
Funding for the $118,400 contract cost for the FY 2025/26 financial statement audit services has 
been included in the City Auditor’s budget. Because preliminary work begins prior to fiscal year end, 
part of this funding is in the current FY 2025/26 budget, with the remainder to be included in the City 
Auditor’s proposed FY 2026/27 budget.
Staffing, Workload Impact
The required annual financial statement audit is incorporated into the workload of existing City staff.
OPTIONS & STAFF RECOMMENDATION 
Recommended Approach
Adopt Resolution No. 13649 authorizing Contract No. 2025-076-COS-E1, the first one-year 
extension of with Heinfeld, Meech &Co., P.C. for the audit of the City’s FY 2025/26 financial 
statements and related services.
Description of Option B
Not approve contract No. 2025-076-COS-E1 and direct the City Auditor to rebid these auditing 
services. This option may delay issuance of the City’s audited financial statements.
Proposed Next Steps
Execute the one-year contract extension with Heinfeld, Meech & Co., P.C., and the City Auditor’s 
Office will coordinate with the City Treasurer’s Office and the CPA firm to schedule the FY 2025/26 
financial audit for timely completion.
RESPONSIBLE DEPARTMENT
City Auditor's Office
Page 2 of 3

City Council Report | FINANCIAL STATEMENT AUDIT SERVICES CONTRACT EXTENSION 
STAFF CONTACTS
Lai Cluff, Acting City Auditor, LCluff(cDScottsdaleAZ.gov (480) 312-7851
APPROVED BY
Lai Cluff, Acting City Auditor
Date
ATTACHMENTS
1. Resolution 13649
2. Contract Extension #1, Contract No. 2025-076-COS-E1
Page 3 of 3

RESOLUTION NO. 13649
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE,
MARICOPA COUNTY, ARIZONA, APPROVING CONTRACT NO. 2025-076-
COS-E1, AN EXTENSION TO AN EXISTING CONTRACT WITH HEINFELD,
MEECH, & CO., P.C. TO AUTHORIZE A ONE-YEAR EXTENSION OF THE
CONTRACT.
WHEREAS, the city has a need for financial statement audit services; and
WHEREAS, Heinfeld, Meech, & Co., P.C. was selected by the city to provide this service 
under Contract No. 2025-076-COS (the “Contract”); and
WHEREAS, extensions of the Contract are subject to approval by City Council; and
WHEREAS, the city desires to extend the Contract for the term of May 21, 2026, through 
May 20, 2027.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Scottsdale, Maricopa 
County, Arizona, as follows:
Section 1. The City Council hereby authorizes, approves and directs the Mayor to 
execute, on behalf of the city. Contract No. 2025-076-COS-E1 with Heinfeld, Meech, & Co., P.C. 
to extend the Contract for the term of May 21, 2026, through May 20, 2027.
Section 2. The City Council hereby authorizes the City Auditor or designee to execute any 
other documents and take such other actions as are necessary to carry out the intent of this 
Resolution.
PASSED AND ADOPTED by the Council of the City of Scottsdale, Maricopa County, 
Arizona this____day of________________ , 2026.
ATTEST:
CITY OF SCOTTSDALE, an Arizona 
municipal corporation
Ben Lane, City Clerk 
APPROVED AS TO FORM:
Luis E. Santaefta, Interim'City Attorney
By: Lindsay Hampshire, Assistant City Attorney
Lisa Borowsky, Mayor
19061266
Page 1 of 1 
Resolution No. 13649
ATTACHMENT 1

Contract No. 2025-076-COS-E1
City of Scottsdale 
Contract Extension
Contract Number 2025-076-COS
Title
FINANCIAL STATEMENT AUDIT SERVICES
Consultant
Heinfeld. Meech & Co.. P.C.
Date
April 28,2026
Description
Contract Extension # 1
Contract Change
Effective 5/21/2Q2R, to 5/20/2027
The City of Scottsdale hereby extends Contract 2025-076-COS for a period of (1) year. 
All terms and conditions shall remain the same as the current contract. The contracted 
rate for financial statement audit services for the fiscal year ending 6/30/2026 is 
$118,400. Contract extension will go into effect upon Council approval and dates listed 
above.
By signing below, you agree to the following;
Contract terms and conditions require current certificates of insurance to be on file with the City 
during the contract term. Failure to do so may render this extension void. The required insurance limits 
are listed in the original contract.
You acknowledge your firm is complying with the E-Verify requirements as stated in your contract.
J
[Signatures on following page.]
Page 1 of 2
19060412
ATTACHMENT 2

Contract No, 2025-076-COS-E1
IN WITNESS WHEREOF, the Parties have executed this Contract Extension as of the date set 
forth above.
CITY OF SCOTTSDALE, an 
Arizona municipal corporation
Lisa Borowsky, Mayor
CONSULTANT:
Heinfield, Meech & Co., P.C. 
10120 N. Oracle Rd.
Tucson, AZ 85704
Authorized Representative Signature
Diane Bradley_________________
Name
Partner - Administration________________
Title
ATTEST:
Ben Lane, City Clerk
REVIEWED BY:
Lai Cluff, Acting City Auditor 
Contract Administrator
Mn l\^ers, MPA, Cf
CPPO, NIGP-CPP, CPPB
Purchasing Director
APPROVED AS TO FORM:
<j/l(AA.cilj2ajLVHr^yvLp^
Luis E. Santaellafintedm City^Attorney
By; Lindsay Hampshire, Asst. City Attorney
Page 2 of 2
19060412
i
i