HomeMy WebLinkAboutcc 8.4.15 approval of Auditor Contract renewal (2)
MAYOR & COUNCIL COMMUNICATION
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DATE: August 4, 2015
CONSENT
ITEM #5 MOTION
AGENDA ITEM: Approve Auditor Contract extension
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Cathy Bendel, Finance Director
REVIEWED BY: Finance Committee
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item ................................................. Interim City Administrator
- Report/Presentation…………………………………Interim City Administrator
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates POLICY RECOMMENDER: Finance
FISCAL IMPACT: NA SUMMARY AND ACTION REQUESTED: As part of its Consent Agenda, the City Council
is asked to approve a three year contract extension for Audit services. No specific motion is
needed as this is recommended to be part of the overall approval of the Consent Agenda.
BACKGROUND INFORMATION: In 2012, the City of Lake Elmo put out an RFP for audit services to be provided on an annual basis. At that time, the City made the decision to hire
Smith Schafer & Associates to provide audit services, prepare and review the annual audit report
and to prepare and submit the report to the Minnesota state auditor. The contract at that time
was for three years and covered the 2012-2014 financial reports. STAFF REPORT: In 2012, it was decided to put out an RFP related to the contract services for
the performance of the annual audit and preparation of the annual financial report. As a result of
the bids received, the City decided to change audit firms which resulted in a cost savings.
City Council Meeting [Consent Agenda Item #5]
August 4, 2015
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Due to the growth and increased bonding needs of the City of Lake Elmo, it was decided late in
2013 to upgrade the annual report presentation to a Comprehensive Annual Financial Report
(“CAFR”) for the 2013 Audit report. Smith Schafer & Associates was very accommodating in
assisting the City to make this happen. They were able to convert the annual report and assist the Finance Department to build the statistical schedules which make this version of the report
extremely informative and a critical component for the bond rating agencies.
It is very time consuming and draining on resources to switch audit firms. The proposal from
Smith Schafer reflects an annual increase of 3% which is below market level annual increases for audit services (typically 4-5%). At the recommendation of the Finance Committee, the Finance
Director did request if there was any room to reduce the rate further. However the quoted rate
was as low as Smith Schafer could offer.
The Finance department has been very impressed with the audit team from Smith Schafer & Associates. They have been very professional, knowledgeable and efficient. As a result, the
Finance Director recommends extending the audit contract to cover the 2015-2017.
RECOMMENDATION: Based on the aforementioned, the staff recommends the City Council
approve extending the contract with Smith Schafer & Associates for three additional years (2015 – 2017).
ATTACHMENT:
1. Proposal from Smith Schafer & Associates to provide Audit Services to the City of Lake
Elmo for 2015 - 2017