Stafford council approves three-year audit contract with Patillo, Brown & Hill

The Stafford City Council on June 18 voted to award the city's state-required annual financial audit contract to Waco-based Patillo, Brown & Hill (PBNH).

City financial staff sought council approval for the contract, saying state law (local government code 103.001) requires an independent external audit. The presenter said the city issued a request for proposals in early May, received two responses and that the finance committee members who reviewed the proposals recommended PBNH based on government experience, team qualifications, audit approach and cost. The city's presenter said the proposed fees were $50,900 for FY24 and FY25, $51,900 for FY26 and $52,900 for FY27, and that the amounts include the Fort Bend Economic Development Corporation's portion so the net cost to the city would be lower.

The city's presenter acknowledged the city has missed the March 15 filing deadline to submit audited financial statements to the comptroller's office and said the previous auditor left in January. The presenter said the city has notified the comptroller and bond-rating agencies about the situation and that PBNH expects to meet the necessary timeline once work begins. PBNH partner Chris Pruitt told council the firm performs many municipal audits across Texas and would perform the work largely remotely but with some on-site procedures.

Council then considered the engagement letter for the audit firm. After no extended discussion, a council member moved to approve awarding the contract and to approve the engagement letter; the motion passed on a voice vote. The transcript records "All in favor? Motion passes." There was no roll-call tally recorded in the meeting transcript.

City staff said PBNH will contact the prior auditor and that while some previously compiled city work can be reused, the new auditors must perform their own verification and sampling as required by auditing standards.

The contract award restores a formal audit process the city said it lacked since its previous auditor departed earlier this year. Staff said the audit opinion will be relied on by grantors, bond rating agencies and the public and that the firm will also evaluate internal controls and compliance (including single-audit requirements if the city's federal expenditures exceed thresholds).

Council did not direct additional actions during the meeting beyond approving the award and engagement letter; staff said it would proceed with the audit work and file the completed audited financial statements with the comptroller and other agencies once the audit is complete.

The council's approval was recorded in the meeting transcript as passing without an itemized roll-call vote recorded in the public minutes.

A copy of the engagement letter and the RFP evaluation were included in the meeting packet.