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WS — Item 5 WORK SESSION STAFF REPORT Work Session Item 5 Date: November 5, 2012 To: City Council From: Al Rolek Re: Audit Request for Proposals Background In September staff sent out Requests for Proposals (RPF) for auditing services for 2012, 2013 and 2014 to five 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 12 deadline. The responding firms were Abdo, Eick & Meyers LLP, CliftonLarsonAllen LLP, HLB Tautges Redpath, Ltd. and MMKR & Co., PA. 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 addition, each was asked to submit a maximum cost for performing the audit for the Centennial Fire District (CFD). This was done in anticipation of Lino Lakes assuming the accounting and finance role for the District. 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 2011 was $40,300 with the firm of CliftonLarsonAllen. The proposed cost to perform the City's audit ranged from $34,100 to $36,225 for 2012. The cost to perform the CFD audit ranged from $4,000 to $7,500 for 2012. The results of the audit cost proposals are as follows: