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CONSENT ITEM – 6N MEMORANDUM DATE: November 13, 2018 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: Professional Auditing Services Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Authorize staff to enter into agreement with MMKR to provide Professional Auditing Services for the year ending December 31, 2018, with the option of auditing its financial statements for each of the four subsequent fiscal years. Background A Request for Proposals was distributed earlier this year to solicit bids for auditing services. Discussion This City is not dissatisfied with our current auditor, MMKR, but wanted to take a look at what other firms are offering. The City received bids from four firms, all of which are very qualified to do the work required. The proposals were reviewed by staff and three of the firms were within a few thousand dollars of each other over the 5 year period. Bids for Services 2018 - 2022 MMKR AEM BerganKDV Auditing services and CAFR preparation $162,255 $161,100 $170,100 Single Audit (if needed) $14,000 $21,000 $16,550 The Single Audit fees are only paid if a Single Audit is required to be completed for that fiscal year. The City does not anticipate needing a Single Audit over the next five years at this time. Staff is recommending that the City continue its relationship with its current auditor, MMKR. AEM has the lowest bid for audit services, but if a Single Audit is needed, the cost difference would be realized in one year. The benefits of maintaining continuity and a relationship that has been developed over the past 12 years outweighs the approximately $230 cost per year. MMKR’s proposal for the 2018 audit fee and CAFR preparation is $31,175. The 2017 audit fee was $35,800. This is a reduction in fee from 2017 in the amount of $4,625.