1l. Audit & Accounting 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
.it.
MEMORANDUM
TO:
GS\~
O'YJ
Mayor & City Council
FROM:
Greg Sticha, Finance Director
DATE:
September 25,2006
SUBJ:
Audit & Accounting Services Contract
BACKGROUND
Our current auditing and accounting services contract with Ill..B Tautges Redpath
expired after the completion of the 2005 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 2006-2008.
The RFPS were mailed out in June and due back July 31,2006. We received bids
from six firms and a summary of those bids are included in an attached
spreadsheet. ~fte-r,I:~yiywing the proposals, three firms were selected to
~ - ',', " : ,. .. .,,'.,' :':, .. -', .,: '. .. " ': .. ..: '.. ..
interview. Thqse interY~~wswere conducted the second week of August.
/"'.' .?.,.....:. ',.'-,:,-,:... - .
The three finali:~t~jf1,c'itidedkl5,V,LAWCO, and Ill..B Tautges; The audit
selection comririHe.eihei'after. theinterviews and discussed the three finalists.
;,.,
RECOMMENDAtIQ~"",
After reviewing the.!~Ht\~NRr9Posa.l.s~dconduCting the interviews, ,the audit'
selection committeif~W.thah1ie'difterence in cost of less than $1,000 with
~ ,J'~'-'.,.',:"::"_:,::":>""" -"", - -,- .. . .. .. _'. .. ..",.. '" ._', ,'.., ".'
Ill..B Tautges's propos~.:tom~Jl~~t'~l()sest bidder, was not enough to ,offset other
potential costs orh~Yirrg~'n~w liJ.ld,itfirm conduct the, audit If a new firm is
selected, the addi.tioriili\htiestaffwould need to provide new documentation and
"t " ',J ,,',' , '''', ',", " "" "
support orint~njaI.~bittfols ahdoperating procedures would amount to well more
than $1,000:' ""','.,; " .
, .
In addition,sf~tfaI14m~agel11~I1t hasheen very pl~ased with the quality of work
Ill..B Tautges R~g~a.~)1~s!:giveiithe'citY()Verthe past several years, including
being a key part :iq;i'~~~i~ti.'xigjh~citYin,:reCeiYinga' 1argeportion of the state's TIP
grant pool four yeafi-~gO,;~pti assist~hcewith transition of finance directors in
2004- 2005,"- . ' " .
The City 01 Chanhassen · A growing community with clean lakes, Quality schools, a channing downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Audit & Accounting Services Contract
September 25, 2006
Page 2 of2
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 2006-
2008.
ATTACHMENT
1. RFP Summary Spreadsheet.
City of Chanhassen
2006-2008 Audit Proposals
Number of Estimated Total Audit Hours
Houri Rates
Partner
Mana er
Senior
Staff
Total Audit Cost
Total Accountin Service Cost
Total Audit & Accountiun Services
Number of Estimated Total Audit Hours
Houri Rates
Partner
Mana er
Senior
Staff
Total Audit Cost
Total Accountin Service Cost
Total Audit & Accountiun Services
Number of Estimated Total Audit Hours
Houri Rates
Partner
Mana er
Senior
Staff
Total Audit Cost
Total Accountin Service Cost
Total Audit & Accountiun Services
2006
MMKR Abdo
475
180.00 180.00 217.00
110.00 130.00 150.00
90.00 0.00 100.00
80.00 89.00 86.00
48,250.00 42,519.00 50,828.00
35,600.00 39,700.00 46,120.00
83,850.00 82,219.00
2007
MMKR Abdo
475
180.00 187.00 241.00
110.00 135.00 155.00
95.00 0.00 104.00
80.00 93.00 89.00
48,825.00 44,220.00 52,208.00
36,200.00 41,400.00 47,795.00
85,025.00 85,620.00
2008
MMKR Abdo
475
180.00 195.00 249.00
115.00 141.00 161.00
95.00 0.00 107.00
80.00 96.00 92.00
49,275.00 45,989.00 53,613.00
36,600.00 42,900.00 49,270.00
85,875.00 88,889.00
Accounting Service Hours were based on a finance department estimate of 80 hours at manager level, 120 hours at senior level, and 200 at staff level