M E M O R A N D U M


								March 22, 2011

To:		Members of the Board of Trustees

From: 	Nancy L. Zimpher, Chancellor

Subject:	Approval of KPMG LLP to Provide Audit and Tax Services

Action Requested

      The proposed resolution approves KPMG LLP to provide audit and tax services beginning with the State University�s 2011 fiscal year.

Resolution

	I recommend that the Board of Trustees adopt the following resolution:

Resolved that the firm of KPMG LLP be, and hereby is, approved as the independent auditing firm to be retained to conduct the annual independent audit of the State University�s financial statements and to provide tax services for a three-year period beginning with the State University�s 2011 fiscal year, with an extension for an additional year permitted at the option of the State University; and, be it further

Resolved that the Chancellor, or designee, be, and hereby is, authorized to take appropriate action to retain the services of KPMG LLP upon such terms and conditions as the Chancellor, or designee, shall deem appropriate.

Background

      The State University of New York is required within 120 days after the close of its fiscal year of June 30 to submit to State officials annual financial statements which have been audited by an independent certified public accounting firm.  The contract for audit services concluded with the completion of the audit of the 2010 financial statements.  The State University of New York solicited bids from qualified independent firms to perform annual audits of its financial statements and to perform required tax services. 
      The solicitation of the proposal for these services was posted in the 
New York State Contract Reporter.  A formal Request for Proposals was sent to a total of 13 firms. As part of the proposal process, firms were permitted to submit questions for clarification of requirements outlined in the Request for Proposals.  Proposals were received from the firms of Bonadio & Co; Grant Thornton LLP; KPMG LLP; PricewaterhouseCoopers LLP; Toski, Schaefer & Co., P.C.; and UHY LLP.

      SUNY management established an evaluation committee to review the proposals submitted.  Each proposal submitted was reviewed and evaluated by each member of the evaluation committee.  The results of the evaluation were shared with senior University officials and Audit Committee members for their consideration.  

      On March 21, 2011, based on the recommendation of University staff, the Audit Committee conducted formal interviews of the two finalist firms, PricewaterhouseCoopers LLP and KPMG LLP.  As a result of this process, and after further discussion and careful deliberation with University staff, the Audit Committee recommends that KPMG LLP be retained to conduct the annual audit of the State University�s financial statements and to provide tax services for a three-year period beginning with the State University�s 2011 fiscal year, with an extension for an additional year permitted at the option of the State University.
Board Resolution                                  - 2 -                                   March 22, 2011

Board Resolution	-2-	March 22, 2011