Addition_1 Audit Service Staff Report
Staff Report
Date of Meeting: November 4, 2020
To: City Council
From: Colleen Firkus. Treasurer
Re: Audit Engagement Proposals for 2020
Background: The City of Scandia has engaged Schlenner Wenner for audit services from 2013
to 2018 by three-year contracts. For 2019 we engaged them in a one-year contract. We have
had a good working relationship with this firm and audits have gone smoothly. Recently I
experienced a bank reconciliation issue through the first half of this year. I was unable to get a
resolution with Schlenner Wenner after 6 hours billed at $125 per hour. They also indicated
that it was not their role as our auditors. Therefore, the City engaged Abdo Eick & Meyers to
provide expert reconciliation services. The problem was solved within 5 hours with new
procedures set in place for future reconciliation work.
Issue: The City needs to engage an audit service for the year 2020 and beyond. Should the City
engage Schlenner Wenner for one year again, or enter into a three-year term contract with
Schlenner Wenner or another vendor such as Abdo Eick & Meyer.
Proposal Details: Schlenner Wenner has proposed a one-year contract of $20,200. This is a 3%
increase over the 2019 contract of $19,600. Engaging them in a three-year contract would
include an annual increase of 3%. Abdo Eick & Meyer submitted a proposal for a three-year
contract starting at $23,775 with a 2% annual increase.
Fiscal Impact: The 2021 Budget currently has $20,794. No change to the 2021 Budget would be
required with the Schlenner Wenner contract. An increase of $2,206 would be required in the
2012 Budget to engage the services of Abdo Eick & Meyer. The total of a three-year contract
with Schlenner Wenner at 3% increases would be $62,436. The total of a three-year contract
with Abdo Eick & Meyer at 2% increases would be $72,900.
Recommendation: I would recommend Schlenner Wenner for audit services and engage Abdo
Eick & Meyer for additional financial services.