9.e 1A Accounting Assistance Contract61 .� �
SCANDIA
Staff Report
Date of Meeting: July 21, 2020
To: City Council
From: Colleen Firkus, Treasurer
Re: Accounting Consultation Contract
Background: Since the beginning of the year I have not been able to reconcile our actual cash
position to what is recorded in our Fund Accounting system. The amount is less than $1,000
and does not affect the city's financial responsibilities, and I believe I have resolved some of the
issues. However, I need to be able to consult with someone who is proficient in resolving these
kinds of issues and is familiar with Banyon Fund Accounting. I have already requested
assistance from our audit firm, Schlenner Wenner, but they were unable to resolve the issues,
and there is a conflict in that their role is to audit our books, not "fix" them. We also have the
added financial complexity starting in April with accepting electronic payments and reconciling
the timing of recording those payments with when they actually clear the city's bank account.
Like what we are experiencing with COVID-19, this is an unprecedented issue during my time as
Treasurer with the City of Scandia. The increasingly complexity of the City's financial needs is far
beyond my initial position as Treasurer 20+ years ago of simply recording receipts and bank
reconciliation. It would be helpful to have on retainer professional accounting help to provide
assistance in implementing best accounting practices. This will help me to standardize practices
and position the City for a smooth financial transition for when I retire, which hopefully won't
be for another five years.
Proposal Details: Ken has recommended the firm of Abdo Eick & Meyers to provide this kind
of accounting assistance. I have been in touch with Victoria Holthaus, CPA, Partner, with that
firm and we are proposing the attached contract. The initial deposit of $3,000 will cover 20
hours of an Accounting Specialist's help, which should be more than enough to get things back
on track. The additional $300 per month is a budgetary suggestion to allow 2 hours per month
of additional help moving forward. I do not anticipate needing to utilize that much assistance
once the current issues are resolved, but it provides the necessary tools I will need to deal with
how to handle the increasing complexities of the City's financial needs.
Fiscal Impact: Due to the restrictions we are experiencing this year due to COVID-19, there is
$2,245 of unused funds in the Administration's Employee Training and Travel Budgets, and
$3,500 in Travel budgets in other departments in the General Fund. This should more than
cover any financial assistance the city should require through the balance of this budget year.
Recommendation: I am extremely encouraged by my conversations with Ms. Holthaus and
feel confident that this is a prudent action for the Council to approve.