SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract modification with RSM US LLP for external auditing services to add $450,000 and extend the term by six (6) months from October 1, 2025 to March 31, 2026 for a new contract total of $1,719,774.
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FISCAL IMPACT:
Funding for this action is available in the FY2025 Operating Budget.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☐ 2. Community
☐ 3. Workforce ☒ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: Completion of the Annual Comprehensive Financial Report (ACFR) Audit and Federal Single Audit helps ensure that CapMetro is operating as a fiscally responsible and transparent steward of public funds.
BUSINESS CASE: Extension of the contract end date from September 30, 2025, to March 31, 2026, will provide continuity of services and help ensure timely completion of fiscal year 2025 (FY25) audits. A new solicitation for external audit services covering FY26-FY30 has begun.
COMMITTEE RECOMMENDATION: The item was presented and recommended for approval by the Finance, Audit and Administration Committee on July 16th, 2025.
EXECUTIVE SUMMARY: In September 2020, RSM was awarded Contract #200616 for External Auditing Services via a competitive procurement process with Board resolution AI-2020-1226. This contract is for professional auditing services including financial statement audits of CapMetro and its retirement plans, Federal Single Audit, and other services. The financial audit reports include a report on internal controls, which informs the Board of Directors and management about areas of the organization that could benefit from improvements in policy and processes. The Single Audit culminates in a report on compliance and internal control over federal financial assistance programs in accordance with guidance published by the U.S. Office of Management and Budget. Other services include the application of agreed-upon procedures related to compliance with the National Transit Database (NTD) reporting requirements and the Public Funds Investment Act.
The cost impact of this pending contract modification requires Finance, Audit and Administration Committee approval for additional funds. The six-month contract extension will add up to $450,000 to the total contract cost. The previous Board approval for this contract was $1,269,774. If the contract modification is executed, the new contract Not-To-Exceed (NTE) total will be $1,719,744.
DBE/SBE PARTICIPATION: This is a modification to the current contract. The SBE goal assigned was 0% and the contractor committed to 0%, which will continue to be monitored during the term of the contract.
PROCUREMENT: On August 12, 2020, the CapMetro Board of Directors approved a resolution for the award of a contract to RSM US LLP for External Auditing services in the amount of $1,269,774. Additional audits have been added to the contract since it was awarded. Therefore, Board of Directors approval is requested to execute a contract modification to add $450,000 to the contract and extend the term by six (6) months from October 1, 2025 to March 31, 2026. The new contract total will be $1,719,774.
RESPONSIBLE DEPARTMENT: Finance
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2025-1545
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and CapMetro Management recognize the need to extend contract #200616 with RSM US LLP for external auditing services for an additional six-month period.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or her designee, is authorized to finalize and execute a contract modification to add $450,000 to the RSM US LLP contract and extend the term by six (6) months from October 1, 2025 to March 31, 2026 for a new contract total of $1,719,774.
____________________ Date: ____________________
Secretary of the Board
Becki Ross