Finance Committee Agenda and Packet 2013 04 15

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CITY COUNCIL COMMUNICATION AGENDA ITEM ___ SUBJECT: PROPOSAL FOR AUDITING SERVICES DATE:APRIL 15, 2013 PRESENTED BY: KEVIN C. WATSON, FINANCE DEPARTMENT SUMMARY: On June 30, 2008, the Finance Department issued a Request for Proposals (RFP) for Professional Auditing Services. On or before August 8, 2008, the City received proposals from five firms. Ultimately, Eide Bailly (then Gordon, Hughes, & Banks) was awarded the bid based on the following five-year cost proposal: AuditAuditAdminAll-Inclusive Year FeesFeesCost 2008 $22,500 $1,200 $23,700 2009 $23,625 $1,300 $24,925 2010 $24,800 $1,400 $26,200 2011 $26,000 $1,500 $27,500 2012 $26,000 $1,500 $27,500 A-133 Federal Compliance Auditing (Single Audit) was bid at $8,000 per program in 2008 and subject to annual negotiation thereafter. A-133 auditing was not required for the 2008 or 2009 audit, but was for the 2010 audit due to the large amount of Federal grants on the Highway 42/South Boulder Road project. A-133 auditing was not required for the 2011 audit but will be required for the 2012 audit. Since the 2012 audit is the last year of the Eide Bailly engagement, the Finance Department has developed a new RFP and presented a draft to the Finance Committee at the March 18 meeting. The Finance Committee authorized the Finance Director to negotiate an additional one to two years of auditing services with Eide Bailly Assuming no major change in the City’s fund structure, Eide Bailly has proposed the following fees if the City would extend their contract through the 2014 audit. 2013: 2014: Financial Statement Audit $27,000 Financial Statement Audit $27,500 A-133 Audit (per program) $8,500 A-133 Audit (per program) $8,500 Administration Fees $1,600 Administration Fees $1,600 CITY COUNCIL COMMUNICATION 5