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HomeMy WebLinkAboutcc 1-15-13 Approval to new audit firmMAYOR AND COUNCIL COMMUNICATION DATE: 1/15/2013 CONSENT ITEM #: 15 MOTION Regular Agenda AGENDA ITEM: Approval of New Audit Firm SUBMITTED BY: Cathy Bendel, Finance Director REVIEWED BY: Dean Zuleger, City Administrator SUMMARY AND ACTION REQUESTED: The City Council is respectfully asked to approve the acceptance of the attached proposal for Professional Audit Services from Smith Schafer & Associates and enter into a three year contract for services covering 2012, 2013 and 2014. BACKGROUND INFORMATION: As directed by the City Council on November 20, 2012, an RFP was issued to obtain competitive quotes for the year-end audit services. Eight firms expressed interest and of those, two proposals were reviewed in depth by the City Administrator and the Finance Director; Abdo Eick & Meyers, LLP and Smith Schafer & Associates LTD. As anticipated, both firms proposed an annual average rate significantly lower than the actual 2011 costs; a 12% proposed reduction by Abdo Eick & Meyers, LLP and a 26% proposed reduction by Smith Schafer & Associates. RECOMMENDATION: Although both firms are extremely professional and competent, it is recommended that the City Council approve moving the annual contract for audit services to Smith Schafer & Associates for the audit periods of 2012-2014. This will allow for a cost savings of $21,000 over the three year contract period as well as providing for a fresh review by a new firm. “Move to approve the three year annual audit contract to Smith Schafer and Associates beginning with year-end 2012” . ATTACHMENTS: 1. Proposal for Audit Services – Abdo, Eick & Meyers LLP 2. Proposal for Audit Services – Smith Schafer & Associates, LTD