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way o , .., SI"a Wanda <br />MAYOR <br />Bill Blesener <br />COUNCIL <br />Ricic Montour <br />John Reis <br />Michael McGraw <br />Shelly Boss <br />515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: August 2, 2012 <br />RE: Additional Billing from Auditors <br />With the transition in the Finance Director position we experienced this year, the City's <br />Auditor's (Tautges Redpath, Ltd.) incurred additional expense in completing the engagement. <br />(This is an amount above the contract maximum of $33,700.) As Peggy Moeller indicated <br />during her audit presentation on July 25th, this is a typical occurrence during a transition. In our <br />case, it was likely exacerbated given we didn't have a replacement until late July and our former <br />Finance Director, Shelly Rueckert, was stretched very thin given the demands of her new <br />position. <br />Attached is the total additional expense incurred ($7,635.50) with comments as to the reasons for <br />the additional time. Staff has talked with Ms. Moeller about these charges and we have agreed to <br />split them 50/50. The basis for the split arises from the fact that while the auditors did <br />experience inefficiencies, this was not communicated to me until after the audit was completed, <br />thereby preventing us from attempting resolve this problem. In justifying the payment, we did <br />realize savings in staff costs during the transition that will more than offset this additional <br />expense. <br />Subject to any comments or questions the Council may have, staff recommends we authorize an <br />additional payment of $3,817.75 to Tautges Redpath, Ltd. for the 2012 audit. <br />