Agenda Packets - 2005/05/23 - Laserfiche WebLink

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Item No: 9M Meeting Date: May 23, 2005 Type of Business: Council Business Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Charles Hansen, Finance Director Item Title/Subject: Resolution 6536 Authorizing Additional Audit Services from MMKR Malloy, Montague, Karnowski, Radosevich, & Co., P.A. (MMKR) has provided annual audit services for the City of Mounds View since the audit of the year ended December 31, 2001. The engagement letter for the audit of the year ended December 31, 2004 specifies fees of $25,900 plus expenses. This is based upon the agreement that City staff will perform all accounting work, draft the financial statements, print the financial statements, and submit reports as needed to other government agencies and organizations that need them. Due to my departure from the City of Mounds View and the resulting vacant staff position, City staff won’t be able to complete all the agreed upon work. MMKR has agreed to do additional work to complete the financial report. One provision of this is that MMKR wants to control all the work from the point where they take over. This work is outside the scope of the work in the normal engagement and will require additional payments to MMKR. A draft of the report will be complete by the time of my departure. MMKR’s additional duties will include producing a final draft ready for copying, copy and assemble the financial report, present to the City Council, and submit financial reports to outside agencies and organizations. Since the time to complete these tasks is difficult to estimate, we have agreed that MMKR will bill the city for the hours needed. The audit manager will be billed at $130 per hour (this is a discount off the normal audit rate of $150 per hour). Support staff that will do copy and assembly work will be billed at the rate of $40 per hour. This additional work is coming at a time when all of MMKR’s city clients are attempting to complete their financial reports by the June 30th deadline. It probably isn’t possible for MMKR to take on additional duties at Mounds View and complete them by June 30th. Due to the unusual circumstances of a staff vacancy, MMKR feels they can apply for and receive an extension to July 31st to complete the report.