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City Cbuncil. Melting 10120/20 <br />Consideration Awroval of Audit Seryice'Amement. (TK) <br />y.. <br />A. REFERENCE: AND BACKGROUND: <br />71ie City has usedCliRpnL� soaAllen (CLA) for audit services, since.2007. Also over that period,. we have:had <br />a number principals ovdrseeing-the Towns audit. T`liis past two years, the. -firm tried performing more of 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 prescnted:to the Council. the past two years after die <br />.Tune 30" deadline. In addi.09n,, the auditors made. some corrections to previous. years audits. (prior period <br />adjustments were needed): The audit costs continue to increase each year, with the °2010-eitidit.costinb <br />$12,100.04 oompared.to $I I,500 and $11;000 for 20-18 and:2017-respectively. <br />Because of the. -difficulties this past two years and because t11e City had not completed a UP for -.audit services <br />and a. very longtime, staff sent out.a RFP to 7 Audit Firms who specialize in. governmental audits, including <br />CLA. Of the 7 firms, 5 have offices in the Metro. Area and 2. in the St Cloud Area. The City received-4 <br />proposals. The tables -below outline the estimated'.hours to complete the.axdit and the:cost for each firm: <br />Audit Costs <br />2020 <br />Average <br />2020 <br />2.021 <br />2022 <br />2023• <br />26-24 <br />Hrly Audit <br />Firm Name <br />Hours <br />Audit Cost <br />Audit Cost <br />Audit Cott <br />Auditt6st <br />Audit Cost <br />Costs <br />Schlenner Wenner&.Co <br />95 <br />$12,000.00 <br />$12,350:00 <br />$12,750.00 <br />$13,100.00 <br />$13,500,00 <br />$126.32 <br />MMKR & Co. kA. <br />125 <br />$13,000:00 <br />$134000:00 <br />$131506.06 <br />$14,000..00 <br />$14,500.00 <br />$104.00 <br />l3&ga6KDV <br />130 <br />$14,400.00 <br />$14,790.00 <br />$15,190.00 <br />$15,600.0.0 <br />$15,990.00 <br />$110.77 <br />Abdo Eick.. & Meyers LLP <br />84 <br />$14,W2.00 <br />$15,200.00 <br />$15,500.00 <br />$15,800.00 <br />$16,100.00 <br />$177.64 <br />Clifton Larson Allen <br />No Response: <br />Redpath and -Company No Response <br />Coriway Deuth &Schmiesing PLLP No Response <br />The big difference between the proposals is the staff time to complete: the audit and the level of staff working <br />those hours. as shown in the. table.below. <br />Schlenner Wenner& Co <br />MMKR & Co., P.A. <br />Be.rganKDV <br />Abdo Eick & Meyers LLP <br />Staff Supervisory <br />Accountants Senior Assoc Manaaers <br />50 <br />20 <br />15 <br />40 <br />30 <br />18 <br />60 <br />40 <br />20 <br />46 <br />2.0 <br />Support <br />Partners <br />Staff <br />Total <br />10 <br />0 <br />95 <br />12 <br />25 <br />1.25 <br />10 <br />0 <br />130 <br />S. <br />10 <br />84 <br />Based on cost*S'chlenner Wenner & Co. 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 :lowesl..Both firms.,. believe would. do a f nejob <br />for the.City. <br />Al. Budget Impact: The budget.impact would:be too incorporated. the audit. casts int.�a future <br />t budgets: <br />