1f. Audit Services Contract
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952:227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227,1110
Public Works
1591 Park Road
Phone: 952,227.1300
Fax: 952,227.1310
Senior Center
Phone: 952.227.1125
Fax: 952,227.1110
Web Site
www.ci.chanhassen.mn.us
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MEMORANDUM
TO:
Mayor & City Council
FROM:
0)'
Greg Sticha, Finance Director
DATE:
D~
July 13, 2009
SUBJ:
Audit Services Contract
BACKGROUND
Our current auditing and accounting services contract with HLB Tautges Redpath
expired after the completion of the 2008 audit. In May, staff contacted all the
local accounting firms that have significant experience with government clients to
request bids for accounting and auditing services for audit years 2009-2011.
The RFPs were mailed out in March and responses were evaluated by the audit
selection committee. We received bids from seven firms and a summary of those
bids are included in ,an attached spreadsheet.
RECOMMENDATION
After reviewing the written proposals, the audit selection committee felt that the
difference in cost of less than $1,500 with HLB Tautges's proposal to the next
closest bidder, was not enough to offset other potential costs of having a new
audit firm conduct the audit. If a new firm is selected, the additional time staff
would need to provide new documentation and support of internal controls and
operating procedures would amount toc1ose to the $1,500.
In addition, staff and management has been very pleased with the quality of work
HLB Tautges Redpath has given the city over the past several years, including
being a key part in assisting the city in receiving a large portion of the state's TIP
grant pool several years ago, and assistance with transition of finance directors in
2004-2005.
Therefore, it is staff's recommendation that the City sign a three year audit and
accounting services contract with HLB Tautges Redpath, for audit years 2009-
2011.
ATTACHMENT
1. RFP Summary Spreadsheet.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
City of Chanhassen
2009-20011 Audit Proposals
2009
KDV LAWCO MMKR Virchow Krause Abdo Eide Baillv HLB Tautaes
Number of Estimated Total Audit Hours 450 380 370 400 315 480 380
Hourly Rates
Partner 150.00 153.00 195.00 243.00 200.00 250.00 233.00
Manager 125.00 0.00 140.00 118.00 145.00 160.00 163.00
Senior 100.00 98.00 85.00 135.00
Staff 80.00 83.00 70.00 102.00 92.00 100.00 90.00
Sectretarial 50.00 43.00 40.00 65.00 0.00 70.00
Total Audit Cost 35,050.00 40,330.00 37,925.00 47,500.00 36,675.00 72,075.00 36,500.00
2010
KDV LAWCO MMKR Virchow Krause Abdo Eide Bailly HLB Tautges
Number of Estimated Total Audit Hours 400 380 370 400 315 480 380
Hourly Rates
Partner 150.00 158.00 200.00 248.00 206.00 260.00 233.00
Manager 125.00 0.00 145.00 120.00 149.00 170.00 163.00
Senior 100.00 103.00 85.00 140.00
Staff 80.00 88.00 75.00 104.00 95.00 105.00 90.00
Sectretarial 50.00 48.00 40.00 67.00 70.00
Total Audit Cost 36,300.00 42,230.00 38,975.00 48,450.00 37,791.00 75,375.00 37,750.00
2011
KDV LAWCO MMKR Virchow Krause Abdo Eide Baillv HLB Tautaes
Number of Estimated Total Audit Hours 400 390 370 400 315 480 380
Hourlv Rates
Partner 150.00 163.00 210.00 253.00 212.00 265.00 233.00
Manager 125.00 0.00 150.00 122.00 153.00 175.00 163.00
Senior 100.00 108.00 85.00 145.00
Staff 80.00 93.00 75.00 106.00 98.00 110.00 90.00
Sectretarial 50.00 53.00 40.00 69.00 70.00
Total Audit Cost 37,300.00 45,210.00 39,800.00 49,400.00 38,907.00 77,775.00 39,000.00