MEMORANDUM

TO: William Popp, President

Members of the Kenai Peninsula Assembly

THRU: Dale Baley, Mayor

Mark Fowler, Purchasing and Materials Manager

FROM: Jeffrey Sinz

DATE: June 8, 2000

RESOLUTION 2000- AWARD OF CONTRACT FOR PROFESSIONAL SERVICES FOR ASSISTANCE IN IMPLEMENTING GASB34

The Governmental Accounting Standards Board (GASB) has adopted Pronouncement Number 34 that changes the financial reporting model utilized by local governments. The Borough is required to implement GASB 34 during FY2002 and will require the assistance of a qualified accounting firm with planning implementation.

As part of the RFP for audit services, the finance department requested and received profiles of the accounting firm's technical knowledge of and assistance that could be provided in implementing GASB 34. The evaluation committee reviewed the firm's profiles and resources available to assist with implementing GASB 34. The proposal by KPMG was scored the highest.

The services will consist of obtaining an understanding of the project scope, conduct a readiness assessment, determine the impact of preparing the financial statements in accordance with GASB 34, identify any modifications that will be necessary to achieve and remain in compliance with the standard, and prepare a plan for making the changes and the undertaking the projects necessary for implementing the new reporting model.

The funding for this project is provided for in 100.11410.00000.43011. The attached resolution request award of a contract to KPMG for the proposed not-to-exceed amount of $50,000.