ITEM: 12.10 ADMINISTRATION - Joe Huss, Finance Director
Title
APPOINT HLB TAUTGES REDPATH AS AUDITORS AND EXTEND CONTRACT THROUGH FISCAL YEAR 2014
Background
In 2009, following a Request For Proposals (RFP) process, Council appointed HLB Tautges Redpath (HLBTR) to perform the City's annual audit for the years ending December 31, 2009, 2010, and 2011, with the option to renew the agreement for an additional three-year period. The option to renew is at the sole discretion of the City.
For 2011, per the agreement in place, the City paid $42,000 for audit and statement preparation services. The proposed fees over the next three years are as follows:
Year |
Fee |
Increase |
2011 |
$42,000 |
|
2012 |
$44,000 |
4.8% |
2013 |
$45,250 |
2.8% |
2014 |
$46,500 |
2.8% |
The average annual increase over the three years is 3.5%. The agreement also provides for HLBTR to provide accounting assistance to the City if the need arises. In recent years, with staffing shortages in the Finance Department due to serious health-related absences, the City has utilized this provision. In 2012, the cost for accounting assistance was $11,500. The agreement calls for amounts not to exceed $14,000; $14,500; and $15,500 for 2012, 2013, and 2014, respectively. Payment for accounting assistance services would only be incurred on an as-needed basis, and would not exceed the amounts listed above.
HLBTR is considered to be one of the top municipal audit firms in Minnesota, and has provided exceptional audit and consulting services to Blaine over the past three years.
Recommendation
Based on the above, it is staff's recommendation that the audit services agreement be renewed for an additional three years, and that Council reappoint HLBTR to perform the City's annual audit for the years ending December 31, 2012, 2013, and 2014.