Loading...
9.g) Staff Report-Staff Recommendation for Auditing Services � � � l�. '�-, SCANDIA Staff Report Date of Meeting: October 15, 2013 To: City Council From: Colleen Firkus, Treasurer, Kristina Handt, Administrator Re: Staff Recommendation for Auditing Services Background: Larson Allen has served as the city auditor since 2007. Last year Larson Allen merged with Clifton Gunderson and now operates under the name Clifton Larson Allen.The City last issued an RFP for auditing services in 2011. Although, Larson Allen was the third most expensive proposal,staff felt the continuity was important and recommended the Council remain with that firm. Since that time the auditing firm has provided new staff to complete the City's annual financial audits. Issue: Should the City change auditors based on the new proposals? Proposal Details: Staff used the same RFP issued in 2011 and solicited proposals from the following firms: Smith Schafer, Baker Tilly,KDV,Abdo Eick&Meyer,and Schlenner Wenner&Co. These firms provided proposals last time and were the lowest cost proposers who met the requirements in the RFP. Kristina and Colleen interviewed the two firms that responded-Abdo Eick &Meyer, and Schlenner Wenner& Co. A chart summarizing their proposals is included in your packet. Both met the City's requirements and seemed to be a good fit. However, Schlenner Wenner and Co.provided a much more favorable three year quote as they are looking to move into this area. Both firms can download and use our Banyon Fund Accounting data,which will save a lot of staff time. Clifton Larson Allen did not have or offer this capability. Also,the Clifton Larson Allen quote is$23,000 for each of the next two years. Fiscal Impact: Reduce audit expense by $6,700 on 2013 audit and$18,375 over three years with Schlenner Wenner& Co. OpNons: 1) Authorize staff to offer auditing services to Schlenner Wenner&Co. 2) Authorize staff to offer auditing services to Abdo, Eick&Meyer 3) Continue with Clifton Larson Allen Recommendation: Option l. Summary of Audit Proposals City of Scandia,September 2013 Firm: Abdo Eick&Meyers LLP Schlenner Wenner&Co. Contact: Brad J. Falteysek,CPA Molly Thompson,CPA 952 715-3004 320 251-0286 brad.faltevsek@aemcpas.com mthompson@swcocpas.com Cost: 2013 $20,305 $16,300 2014 $20,855 $16,875 2015 $21,475 $17,450 3-year Total $62,635 $50,625 Cost Rank 2 1 (1-high to 10-low) Hours: 2013 137 245 (Partner 23, Mgr.34,Staff 80) (Partner 20,Mgr.45,Staff 110) 2014 137 245 2015 137 245 Proposal meets Yes Yes requirements? Office location: Edina, MN St.Cloud, MN Size of firm: 90+; 20 in governmental services group 53 Governmental 35%of business;approx. 175 audits partner has 20+years audit experience experience: annually Local government Chisago City, Elk River, Lindstrom, Albany, Bayport,St.Augusta,Stewart, clients: Montrose, Rockford Holdingford, Little Falls Notes: Paperless;able to link to Banyon Paperless;able to link to Banyon financials financials Date of external quality review: 2008 Date of external quality review: 2010 1