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Office of: <br />JOEL R. HANSON, Administrator <br />515 Little Canada Road <br />Little Canada, MN 55117 <br />612-484-2177 <br />FAX: 612- 484 -4538 <br />CITY OF LITTLE CANADA <br />RAMSEY COUNTY, MINNESOTA <br />January 4, 1991 <br />TO: Mayor Hanson and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />RE: 1991 Auditing Contract <br />MAYOR <br />Michael Fahey <br />COUNCIL <br />Beverly Scalze <br />Bill Blazoner <br />Rick Collova <br />Jim LaValle <br />Attached is a copy of Voto, Tautges, Redpath & Company, Ltd.'s <br />standard agreement for auditing /accounting services. Rates have <br />increased an average of 5% over the 1990 contract. I have made <br />comparisons with VTR's contract in other cities and found the rates <br />to be identical. <br />It should also be noted that I have compared our auditing costs with <br />those of other cities and found our's to be higher. However, this <br />can be attributed to the manner in which the audit has been conducted <br />in the City in the past with the auditors being responsible for much <br />of the preparatory work. Furthermore, I feel the services preformed <br />by Voto, Tautges & Redpath justify a higher fee in that they have <br />consistently displayed their skills and competencies to the benefit <br />of the City many times over. <br />Also, to address the higher costs we are working with VTR to attempt <br />to bring more of the audit preparation work in -house to reduce the <br />total annual fee payable. This will necessitate some training of our <br />staff by VTR to attain this goal. Therefore, we may not realize <br />short -term savings, but we should see dividends paid over the <br />long -term. <br />Therefore, I recommend that the Council authorize execution of the <br />agreement for auditing /accounting services for 1991 as proposed. <br />Page 14 <br />