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HomeMy WebLinkAbout(8b) Audit Proposals~ ~" ?acl4 C[TY 4F RT. J(1SNPN . . Council Agenda Item 8 b MEETING DATE: AGENDA ITEM: SUBMITTED BY: Finance December 4, 2008 Audit Proposals -Authorize the Mayor and Administrator to enter into a three year audit contract with LarsonAllen, LLP BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: None None BACKGROUND INFORMATION: The City of St. Joseph recently requested proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal years ending December 31, 2008, 2009 and 2010. After both individual and staff collaborative reviews of proposals, it was concurrently decided that LarsonAllen, LLP be selected to provide auditing services for the City graded on the low bid and technical components such as: past experience on comparable government engagements; the quality of the firm's professional personnel; adequacy of proposed staffing plan; and adequate audit approach. For reference, the firm's ranks (from highest to lowest) after the technical component were as follows: Audit Firm Name Total Technical Component Score Abdo, Eick & Meyers, LLP 25/25 Kern, DeWenter, Viere, Ltd. 24/25 LarsonAllen LLP 24/25 Conway, Deuth &Schmeising, PLLP. 20/25 Each audit firm provided a sealed dollar cost bid separate from their original proposals in order to ensure cost was not factored into their technical grade score. After total technical component grade scoring, the dollar cost bids were opened. City staff had previously agreed that any cost difference below $2,000 for the top two (2) ranked firms from the technical portion of the grading would be acceptable. The two firms that scored the highest on the technical score were more than $2,000 higher than lowest bidder. Listed below are the costs of each firm's proposal from lowest to highest: Audit Firm Name 2008 Cost 2009 Cost 2010 Cost Total Audit Cost LarsonAllen LLP $23,620 $24,780 $25,900 $74,300 Conway, Deuth &Schmeising, $27,750 $28,850 $29,975 $86,575 Kern, DeWenter, Viere, Ltd. $28,450 $29,590 $30,890 $88,930 Abdo, Eick & Meyers, LLP $29,065 $29,948 $30,861 $89,874 In addition, references and various clients were contacted for each of the firms that provided bids. All references and clients provided positive feedback on the client service and competitive fees for service. City staff concurrently recommends the selection of LarsonAllen, LLP to provide auditing services for the City of St. Joseph for the years ended December 31, 2008, 2009 and 2010. The firm achieved a satisfactory technical component score; its proposal was competitively priced; and its total auditing services proposal was $15,574 dollars lower than the highest technical component scored firm, Abdo, Eick & Meyers, LLP, for the three year period. BUDGET/FISCAL IMPACT: $23,620 - 2008 $24,780 - 2009 $25,900 - 2010 ATTACHMENTS: None REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to enter into athree- year audit contract with LarsonAllen, LLP