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CITY COUNCIL <br />AGENDA ITEM 1B <br /> <br /> <br />STAFF ORIGINATOR: Sarah Cotton, Finance Director <br /> <br />MEETING DATE: November 14, 2016 <br /> <br />TOPIC: Appointment of Accounting Firm for Auditing Services for 2016- <br />2018 <br /> <br />VOTE REQUIRED: Simple Majority <br /> <br />INTRODUCTION <br /> <br />The City Council reviewed auditing service proposals for 2016 – 2018 at the November 7th <br />work session. <br /> <br />BACKGROUND <br /> <br />In September staff sent out Requests for Proposals (RPF) for auditing services for 2016, 2017, <br />and 2018 to five a public accounting firms. All of the firms perform audits for various <br />governmental entities in the Metro and Greater Minnesota areas. Four proposals were received <br />by the October 14th deadline. The responding firms were Abdo, Eick & Meyers LLP, <br />CliftonLarsonAllen LLP, Redpath and Company, and Ber ganKDV. Staff did have the chance <br />to meet representatives from each of the firms prior to their submission of auditing service <br />proposals. <br /> <br />In reviewing the proposals, staff found no significant difference in any of the firms’ ability to <br />perform the audit for Lino Lakes. Each firm would provide adequate experienced professionals <br />to review internal controls and perform the audit functions, with the independence and <br />objectivity required. The other primary consideration is cost. Our audit cost for 2015 was <br />$36,850 with the firm of CliftonLarsonAllen LLP. The proposed cost to perform the City’s <br />audit ranged from $32,000 to $36,350 for 2016. <br /> <br />Given all the factors involved, including cost, a case could be made either way for retaining the <br />present audit firm or for changing firms. Staff is proposing a change to Redpath and Company <br />to provide auditing services to the City of Lino Lakes for 2016, 2017, and 2018. Staff is <br />hoping a change in firms will provide a fresh look into the city’s financial operations and <br />another financial perspective. The City is expecting to save $7,225 over the three year period. <br />It was the consensus of the City Council to appoint Redpath and Company for the audit years <br />of 2016 – 2018. <br /> <br />RECOMMENDATION <br /> <br />Staff recommends the City Council appoint, by motion, the firm of Redpath and Company for <br />the City’s audit services firm for the years 2016-2018. <br /> <br />ATTACHMENTS <br /> <br />None