Laserfiche WebLink
POLICY HS <br />• 1/28/04 <br />ITEM: Consideration of RFP's for Audit Services <br />SUBMITTED BY: Roland Olson, Finance Director <br />REVIEWED BY: Heather Worthington, City Administrator <br />EXPLANATION: <br />Summary: A Request For Proposal "RFP" for auditing services for the City was sent to six <br />different auditing firms with experience in governmental auditing. Three proposals were <br />received. The other three firms responded and thanked us for considering them, but felt that the <br />resources needed to fulfill the service requirements of their current clients would make it unable <br />to provide adequate service to the City of Falcon Heights. <br />The three firms responding with an RFP were: Kern, DeWenter, Viere, Ltd <br />HLB Tauges, Redpath. Ltd. <br />Larson, Allen, Weishair & Co. LLP <br />The three firms not responding with an RFP were: MMKR Certified Pubic Accountants <br />Deloitte & Touche <br />Hoffman & Swintek <br />There is a new auditing requirement for all audits of accounting periods beginning on or after <br />December 15, 2002. "Statement on Auditing Standards (SAS) 99 Consideration of Fraud in a <br />Financial Statement Audit". One of the remedies to fraudulent misstatement in financial <br />statements by corporations was the development of SAS 99 which requires auditors to perform <br />more work in every audit in both identifying and responding to the risk of material misstatement <br />due to fraud. This additional audit work will add approximately 10% to the audit fees of all city <br />audits. Our audit cost for 2002 was $13,000. <br />Each proposal was reviewed by looking at service level, cost to provide the level of service, <br />GASB34 experience, and the firm's commitment to continuing education about <br />GASB34. Both Kern, DeWenter, Viere, and Larson, Allen, Weishair & Co would be able to <br />perform the audit in a reasonable time period where the field work would be completed <br />sometime in March. HLB Tauges, Redpath could not complete the field work until the end of <br />May. That would give almost no time to complete the CAFR, complete draft reports, an exit <br />conference, present the audit results to the City Council, and yet meet the State Auditor's time <br />requirements of June 30tH <br />• <br />~~ <br />