4.1.
Finance Committee
- Meeting Date:
- 10/25/2011
- By:
- Diana Lund, Finance
Title:
Award Contract for Professional Audit Services
Background:
On September 13, 2011, the City Council authorized the preparation and distribution of Requests for Proposals for Professional Audit Services [RFP]. This is a professional service and, therefore, is not bound by the statutory bidding laws.
The City’s current auditors are Malloy, Montague, Karnowski, Radosevich, & Co, PA (MMKR). It should be noted that staff has been satisfied with MMKR’s work, but per the city's 2009 purchasing policy, RFP's for professional services are to be conducted every three years, unless specifically extended by city council. MMKR's current contract with the city officially ended on December 31, 2009, but their service was retained for 2010 as council authorized the extension due to a staffing change in finance. The purpose of the current RFP was for staff to determine that the current auditing services/price were competitive with local firms.
RFP’s [copy attached] were mailed directly to seven firms, each of which is currently active in the Minnesota Government Finance Officers Association [MNGFOA] and all of which actively audit cities in the metropolitan area. Those firms solicited are as follows:
Abdo, Eick & Meyers, LLP
Edina, Minnesota
Baker, Tilly, Virchow Krause, LLP
Minneapolis, Minnesota
Eide Bailly, LLP
Bloomington, Minnesota
HLB Tautges, Redpath LTD
White Bear Lake, Minnesota
KPMG Peat Marwick, LLP
Minneapolis, Minnesota
Kern, DeWenter, Viere, LTD.
St. Cloud, Minnesota
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
Minneapolis, Minnesota
The RFP requested a five-year contract for the City, Federal Audit (if needed) and the Fire Relief Association, with guaranteed not-to-exceed prices for each of the three years
The proposals were due on Monday, October 10, 2011, 2007 and the City received six proposals. Of the seven firms solicited; KPMG, Eide Bailly and Baker, Tilly, Virchow Krause declined to submit proposals. Whereas, Smith, Schafer & Associates (Private CPA firm), who was not solicited, presented a proposal.
Attached for your reference is the summary of the proposals received from the various auditing firms.
The City’s current auditors are Malloy, Montague, Karnowski, Radosevich, & Co, PA (MMKR). It should be noted that staff has been satisfied with MMKR’s work, but per the city's 2009 purchasing policy, RFP's for professional services are to be conducted every three years, unless specifically extended by city council. MMKR's current contract with the city officially ended on December 31, 2009, but their service was retained for 2010 as council authorized the extension due to a staffing change in finance. The purpose of the current RFP was for staff to determine that the current auditing services/price were competitive with local firms.
RFP’s [copy attached] were mailed directly to seven firms, each of which is currently active in the Minnesota Government Finance Officers Association [MNGFOA] and all of which actively audit cities in the metropolitan area. Those firms solicited are as follows:
Abdo, Eick & Meyers, LLP
Edina, Minnesota
Baker, Tilly, Virchow Krause, LLP
Minneapolis, Minnesota
Eide Bailly, LLP
Bloomington, Minnesota
HLB Tautges, Redpath LTD
White Bear Lake, Minnesota
KPMG Peat Marwick, LLP
Minneapolis, Minnesota
Kern, DeWenter, Viere, LTD.
St. Cloud, Minnesota
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
Minneapolis, Minnesota
The RFP requested a five-year contract for the City, Federal Audit (if needed) and the Fire Relief Association, with guaranteed not-to-exceed prices for each of the three years
The proposals were due on Monday, October 10, 2011, 2007 and the City received six proposals. Of the seven firms solicited; KPMG, Eide Bailly and Baker, Tilly, Virchow Krause declined to submit proposals. Whereas, Smith, Schafer & Associates (Private CPA firm), who was not solicited, presented a proposal.
Attached for your reference is the summary of the proposals received from the various auditing firms.
Observations:
Pros & Cons of retaining current auditing firm of MMKR: See attached list.
Recommendation:
Staff recommends entering into a five-year contract for professional audit services with the firm of Malloy, Montague, Karnowski, Radosevich & Co., P.A. for the not-to-exceed prices as provided in the proposal.
Funding Source:
The city's annual audit and fire relief audit are funded in the General Fund under the respective departments of finance and fire.
Council Action:
Motion to recommend to City Council to enter into a five-year contract with MMKR for the city's auditing services in the not-to-exceed prices as provided in the proposals.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 10/19/2011 04:31 PM |
- Form Started By:
- Diana Lund
- Started On:
- 10/12/2011 01:52 PM
- Final Approval Date:
- 10/19/2011