REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on an Agreement for Professional Services with KPMG, LLC to provide auditing services for the Santa Clara Stadium Authority
Report
BACKGROUND
The Credit Agreement, entered into between the Santa Clara Stadium Authority (SCSA), Stadium Funding Trust (FinanceCo), and Goldman Sachs Bank USA on March 28, 2012, requires that the Stadium Authority file audited annual financial statements within 180 days after the end of each fiscal year. It further requires that the financial statements be audited by a nationally recognized independent certified public accounting firm (also known as the "Big Four") selected by the Stadium Authority.
In 2012, the SCSA issued a request for proposal (RFP) for professional audit services to perform the annual financial statements audit and received six proposals. After a rigorous scoring and interview process, Staff selected KPMG LLP to perform the audit services and the Santa Clara Stadium Authority Board approved a three-year contract with the firm on November 27, 2012. An amendment to the agreement for a one-year extension was approved on March 30; 2016 by the Executive Director of the Stadium Authority. On April 11, 2017, the Santa Clara Stadium Authority Board (Board)approved a one-year contract with KPMG LLP for audit services. Subsequently, the SCSA issued an RFP for audit services in September 2017 and KPMG was the only firm that provided a response. The Executive Director approved a one-year contract on May 31, 2018.
DISCUSSION
The current contract with KPMG for audit services has expired. The SCSA fiscal year ended on March 31, 2019 and the audit should be scheduled as soon as possible. Staff issued a formal RFP in November 2018 for audit services. Staff also contacted each of the Big Four accounting firms to determine if they would be interested in submitting a proposal for audit services. All of the firms declined except for KPMG LLP. Considering the time const...
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