City Council Meeting Date: December 6, 2016
To: Mayor and City Council
City Administrator
From: Melanie Lammers, Finance Director
Title
Consider Awarding Contract for Audit services
Body
Action Requested:
The Northfield City Council authorizes the Finance Director to enter into a three year contract with Abdo, Eick, and Meyers for audit services.
Summary Report:
We issued a request for proposals for the audit services on October 4th. We received 3 bids, and reviewed them. The bids came in as follows:
2016
Eide Bailley $39,750
Abdo Eick and Meyers $35,775
Clifton Larson Allen $34,250
2017
Eide Bailley $40,900
Abdo, Eick, and Meyers $36,725
Clifton Larson Allen $34,500
2018
Eide Bailley $42,100
Abdo, Eick, and Meyers $37,800
Clifton Larson Allen $35,000
Staff had phone interviews with Clifton Larson Allen, and Abdo, Eick, and Meyers. After talking with both companies that had the lowest cost proposals, staff recommendation is to stay with our current auditors, Abdo, Eick, and Meyers. Abdo, Eick, and Meyers cost is very competitive with Clifton Larson Allen but there are a number of factors that lead us to considering other reasons to stay with Abdo, Eick, and Meyers at this time. The Finance Department is in the process of substantial policy updates, looking to enhance financial reporting and is intending to begin early analysis of pursuing a financial accounting software upgrade in future years which is going to spread the department workload capacity. While it can be beneficial to get a “new set of eyes” on accounting practices by bringing in a new audit firm, it will also create added work on City staff to educate and transition a new firm. Additionally, there are several training classes throughout the year that are not available through Clifton Larson Allen. These classes are aimed at improving processes in the Finance Department to help the year end close go smoother. They also talk about new laws and regulations in government finance to be aware of, how they will affect our books, and how we can create or improve process to account for them. The extra training and classes available to staff is the price difference between the low and middle bids.
Financial Impacts:
No financial impacts. Will be lowering the budgeted amount for audit services, and increasing amount of expense in elections.
Tentative Timelines:
Need to get a contract for audit services in place so we can begin preparing for the 2016 audit.