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��� � <br />���� <br />�emo <br />To: Mayor and City Council <br />Neal Beets, City Manager � <br />��f��, <br />From: Chris Miller, Finance Director i� <br />� <br />Date: October 17,2005 <br />Re: Discussion on Awarding a new 3-Year Audit Services Contract <br />Introduction <br />State Statute requires all municipalities to obtain an independent annual financial audit. As is <br />commonplace, the City typically enters into 3-year contracts with a CPA firm to provide this <br />service. The current audit services contract with Kern, DeWenter, Viere (KDV) expires at the <br />end of this year. <br />Last month, City Staff prepared and issued a request for proposal (RFP) to 7 qualified firms in <br />the metro area. We received six responses. Each of these responses was evaluated by the <br />Finance Director and Assistant Finance Director based on the following criteria: <br />1) Experience in municipal audits for cities our size <br />2) Experience in the Government Finance Officers Association 'Excellence in Financial <br />Reporting' program <br />3) Experience and strength of audit team <br />4) Overall price <br />All of the 6 responding firms were qualified to provide the City's audit. Overall price quotes for <br />the cumulative 3-year period ranged from $85,020 to $107,400. From the list of respondents, <br />— City Staff selected 2 finalists to interview. The finalists included the firms of; Kern DeWenter, <br />Viere (KDV), and Malloy, Montague, Karnowski, and Radosevich (MMKR). <br />Staff Recommendation <br />_ Based upon the originally submitted responses and the interviews, City Staff is recommending <br />that the City award a 3-year Audit Services Contract to the firm of MMKR. The contract will <br />cover the fiscal years of 2005-2007 (to be audited in the following year). The total contract <br />amount will be $87,150, of which $28,000 will be incurred in 2006. The amount budgeted in <br />2006 is $26,000, so a slight budget adjustment or a draw from contingency funds will be needed. <br />MMKR was t�e 2°d lowest bid, albeit only $2,000 more than the lowest bid for the entire 3-year <br />period. However, considering MMKR's overall strength of qualifications, and in recognition of <br />the fact that the City has been with the audit firm of KDV for the past 6 years; Staff feels that it <br />would be prudent to switch to MMKR. <br />� <br />