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City Council Meeting: 10/20/20 <br />Consideration Approval of.Audit Service Agreement. (TIC) <br />{ A. . REFERENCE AND BACKGROUND: <br />The City has used CliftonLarsonAllen (CLA) for audit services since 2007. Also over that period,. we Have had. <br />a number principals overseeing the Tow -Ws audit. This past two years, the firm tried performing more .cif the: <br />audit functions remotely and spent.less time on site., There have been problems with the: auditors being able to <br />complete the audit on time. The audit was completed and presented.to-the Cooncil the past two years after the <br />J,une.30`i' deadline. In addition, the .:uditrs made some corrections to previous years audits. (prior period <br />adjustments were needed). The audit costs continue to increase each.year, with the 2019: audit. costing <br />S 12,1.00.00 compared to $11,5 00 and $11,000 for 2019. and 2017 respectively. <br />Because of the difficulties this past -tx&,o: years and because the City had not coiiipleted a RTP for audit services <br />and a. very long time, staff sent out -a RFP to. 7.Audit Firms Who specialize in governmental audits, including <br />CLA. Of the 7 firms, S have.offrces iri the Metro Area and 2 in the St Cloud Area. The City received 4 <br />proposals. The tables .below oatli=the estimated hours to complete theau.dit and the cost .for each.fir.m. <br />Audit Costs <br />2020 <br />Average <br />2020 <br />1021 <br />2022 <br />2023 <br />2024 <br />Hrly Audit <br />Firm Name <br />Hours <br />Audit Cost <br />Audit Cost <br />Audit Cost <br />Audit Cost <br />AutlitCost <br />Costs <br />SchlennerWenner&Co <br />95 <br />$12,000.00 <br />$12,350.00 <br />$i2,750.00 <br />$13,100.00 <br />$13,500.ba <br />$126.32 <br />MMKR & Co. P.A. <br />125 <br />$13,000.00. <br />$13,000.00 <br />$13,500.00. <br />$14,000.00 <br />$14,500.00 <br />$10.4.00 <br />BerganKOV <br />130 <br />$14,400.00 <br />$14,790.o0 <br />:$15,190;00 <br />$15,600.00 <br />$15;990.00 <br />$110.77 <br />Abdo: Eick*.& Meyers LLP <br />84 <br />$14,922:00. <br />$15;200.00 <br />*$15,500.00 <br />$15,800.0.0 <br />$16,1:00.00 <br />$177.64 <br />Clifton LarsonAllen <br />No -Response <br />Redpathand;Company <br />No Response. <br />Conway Deuth & Schmiesing PUP No. Response <br />The big difference between the proposals is the staff time tp complete the audit and the level of staff working <br />those hours as shown*ui thetable below. <br />Staff <br />Supervisory <br />Support <br />.Accountants <br />Seni&Assoc <br />Managers <br />Partners <br />Staff <br />Total. <br />Schlenner Wenner & Co <br />50 <br />20 <br />15 <br />10 <br />0 <br />95 <br />MMKR.& Co. PA. <br />40. <br />30 <br />18 <br />12 <br />.25 <br />125 <br />BerganKDV <br />60 <br />40 <br />20. <br />10 <br />0 <br />130 <br />Abdo Eick: & Meye rs -LLP <br />46 <br />20' <br />8 <br />10 <br />84 <br />Based on cost. Se.hleriner Wenner -A. Ca. is the lowest cost due. to fewer hours. estimated to complete the audit. If <br />you go by estimated hourly rate, MMKR & Co. would, be the lowest; Both.firins I believe would do a fine job <br />for the City. <br />Al. Budget Impact: The budget impact wo'Wd 156106 incorporated the:'audit costs into future <br />budgets. <br />