ADMINISTRATION - Joe Huss, Finance Director
Title
APPROVE AUDITOR CONTRACT
Background
In August staff sent a Request for Proposals for audit services to eight audit firms that currently audit municipalities in the State of Minnesota. Eight proposals were received. Staff held initial discussions with the respondents and formal interviews with the three finalist firms.
The three finalists are as follows:
· Redpath and Company, Ltd. (the City's current auditor, formerly HLB Tautges, Redpath and Company)
· Malloy, Montague, Karnowski, Radosevich & Company (MMKR)
· Kern, DeWenter, Viere, Ltd. (KDV)
Based on the proposals, interviews and references, staff recommends that the firm of Redpath and Company, Ltd. be re-appointed to perform the City's financial audit for the upcoming five-year period with years ending December 31, 2014, 2015, 2016, 2017 and 2018 at the estimated cost as follows:
2014 $40,250
2015 $41,950
2016 $44,000
2017 $46,000
2018 $49,000
Redpath and Company has been the City's Auditors for the past five years (2009-13) and has performed exceptionally during their tenure. The 2014 proposed amount reflects a $5,000 (11%) decrease from the 2013 base audit cost. Additional services required for the implementation of any new Governmental Accounting Standards Board (GASB) pronouncements, or for audit services required under the Federal Government Single Audit standards would be performed by Redpath and Company, Ltd. under a separate engagement and could result in additional fees.
A formal contract and engagement letter will be brought before the Council for approval before the audit work has begun.
Recommendation
By motion, appoint the firm of Redpath and Company, Ltd. to perform the annual audit of the City's financial statements for years ending December 31, 2014, 2015, 2016, 2017 and 2018.