2a. & b. Presentation of 1994 Audit Report, Cliff Hoffman, Deloitte & Touche AND 1995 Audit ContractCITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: August 15, 1995
SUBJ: A. Presentation of 1994 Audit Report, Cliff Hoffman, Deloitte & Touche;
B. 1995 Audit Contract
A. AUDIT REPORT: Please bring your copy of the 1994 Financial Report as prepared by
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Deloitte & Touche. If you cannot locate your co' call Karen Engelhardt at 937 -1900 ext.
104. Attached please find a copy of the Management Report for your review. Cliff
Hoffman will walk us through both reports oil Monday evening.
B. 1995 AUDIT CONTRACT: Following Deloitte's presentation and departure, I would like
to discuss the 1995 audit contract. In light of all of the financial activity from this past
year, I strongly believe that this not the time to make 'a switch in city auditors. Specifically,
Deloitte has played a major role in helping us through the entire investment turmoil,
investor rating services, and the switch over from Ramsey County to in -house computing
services. They are also the logical choice to help in preparing a 5 year capital budget,
provide advice as to when to sell certain investments, and, to prepare an RFP for the official
depository for 1996. The financial calendar anticipated that we would prepare RFPs for the
official depository at this time for selection by November 1 ; I think it is reasonable that we
can meet the requirement to develop an RFP and have a recommendation ready by
November 1 if we ' remain with Deloitte & Touche. - However, if we were to now start the
RFP process for '1f auditor; it would be very difficult to be into a ,position of making that
selection and thenaviang that firm help us develop an RFP for official depository and still
meet the November deadline."
As of this point, I do not have a proposed contract from Deloitte. I have informed them of
my recommendation to the city council and,., not'surprisingly, they totally agree with that
recommendation. I sincerely believe that their agreement is in light of the points brought
out at the beginning of this item and not self - serving. They are also in agreement that this
contract should be a one year contract vs. the previous three year contracts. This office has
every intention of bidding out this service next year, but, again, I do not believe it is in the
city's best interest to bid that service for this year.
MEMORANDUM