Agenda - Council - 09/13/2011 - Laserfiche WebLink

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CC Regular Session 5. 9. Meeting Date: 09/13/2011 By: Diana Lund, Finance Title: Authorize Requests for Proposals for Auditing Services Background: The City has retained the auditing firm of Malloy, Montague, Karnowski, Radosevich & Co. [MMKR] for the audits of its comprehensive annual financial reports and Fire Relief Association since 1990. The city has had three RFP's for auditing services since then, the last being 2007, with the contractual terms with MMKR ending on December 31, 2009. Due to a change in staffing, council authorized a one-year extension for 2010 audit services. In November 2009, the city passed a purchasing policy which states that a Request for Proposals (RFP) for professional services will be solicited every three years (unless specifically extended by City Council) for standard city services related to such services as auditing and legal services. As the auditing requirements are continuously changing and sometimes the changes can take a couple of years to implement, staff is requesting that the three-year RFP period be amended to five years. The time extension would allow staff and auditors enough time to incorporate said GASB (Government Accounting Standards Board) mandates and for staff to get a full understanding of what workspapers the auditors require. Over the past few years, the City has seen an increase in costs for auditing services due to the implementation of GASB 34 and the upcoming implementation of GASB 54 and other legal requirements such as the Single Audit Act and compliance reporting. The following is a detail of the cost of auditing services for the City and Fire Relief over the past eleven years: CAFR Year Budget Year City CAFR Fire Relief Cost Cost 2000 2001 $18,125 $1,613 2001 2002 $19,843 $1,715 2002 2003 $19,200 $1,842 2003 2004 $20,600 $1,928 2004 2005 $27,030 $2,543 2005 2006 $26,126 $2,558 2006 2007 $26,532 $2,666 2007 2008 $24,800 $2,950 2008 2009 $25,540 $3,160 2009 2010 $28,850 $3,250 2010 2011 $26,400 $3,250 RFP's would be due to the City by October 10, 2011. An analysis of the proposals would take place with a recommendation for award of service presented at the October 25, 2011 Finance Committee meeting. This time table would allow adequate time for the scheduling of preliminary audit work which generally takes place in late November and early December each year. As stated above, we will be looking for a five-year commitment with established not -to -exceed amounts for the City's regular Audit, the Fire Relief Audit and for a Single Audit (if required).