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WS – Item 3 WORK SESSION STAFF REPORT Work Session Item No. 3 Date: November 7, 2016 To: City Council From: Sarah Cotton, Finance Director Re: Audit Request for Proposals Background In September staff sent out Requests for Proposals (RPF) for auditing services for 2016, 2017, and 2018 to five a public accounting firms. All of the firms perform audits for various governmental entities in the Metro and Greater Minnesota areas. Four proposals were received by the October 14th deadline. The responding firms were Abdo, Eick & Meyers LLP, CliftonLarsonAllen LLP, Redpath and Company, and BerganKDV. Staff did have the chance to meet representatives from each of the firms prior to their submission of auditing service proposals. The RFP asked the firms to provide information relative to the firm’s independence, license to practice, qualifications and experience, partner, supervisory and staff qualifications and experience, similar engagements with other government entities, specific audit approach, identification of anticipated potential audit problems, report format and maximum cost for performing the audit in each of the three years requested. In reviewing the proposals, staff found no significant difference in any of the firms’ ability to perform the audit for Lino Lakes. Each firm would provide adequate experienced professionals to review internal controls and perform the audit functions, with the independence and objectivity required, in accordance with auditing standards generally accepted in the United States of America, the standards for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the Single Audit Act Amendments of 1996, and the provisions of OMB Circular A-133. The other primary consideration is cost. Our audit cost for 2015 was $36,850 with the firm of CliftonLarsonAllen LLP . The proposed cost to perform the City’s audit ranged from $32,000 to $36,350 for 2016. The results of the audit cost proposals are as follows: 2016 2017 2018 Average Abdo, Eick & Meyers $36,350 $37,369 $38,364 $37,361 BerganKDV $33,700 $34,400 $35,100 $34,400 CliftonLarsonAllen $33,875 $35,375 $36,975 $35,408 Redpath and Company $32,000 $33,000 $34,000 $33,000