4.6. SR 10-17-2011REQUEST FOR ACTION
To Item Number
Ci Council 4.6.
Agenda Section Meeting Date Prepared by
Consent October 17, 2011 Lori Ziemer, Asst. Finance Director
Item Description Reviewed by
Approve Proposal for Auditing Services with Abdo, Eick & Tim Simon, Finance Director
Meyers, LLP Reviewed by ~~
Robert Thistle, Interim City
Administrator
Action Requested
The City Council is asked to approve Abdo, Eick & Meyers, LLP as the City's auditors for the December
31, 2011 audit engagement.
Background/Discussion
The RFP for auditing services for the City of Elk River, the Elk River Fire Relief, and the Elk River
Municipal Utilities was posted on the League of MN Cities' website and the city's website. The City
received proposals from five (5) well-qualified firms experienced in governmental auditing ranging in
price from $25,650 to $35,000 for the 2011 audit engagement.
A committee consisting of City, Fire Relief, and Utilities staff interviewed three firms to analyze which
firm would best meet the needs for all entities involved. The analysis took into account experience,
staffing, audit approach and presentation, in addition to price. The committee chose Abdo, Eick &
Meyers, LLP because of their experience and the number of hours partners and managers are involved in
the audit.
The engagement will begin with the December 31, 2011 audit, with the City's yearly option to extend it
up to five years.
Financial Impact
The recommended proposal with Abdo, Eick & Meyers, LLP anticipates an annual fee of $29,869 for the
2011 audit, with subsequent years ranging from $29,869 up to $32,639. The 2012 budget amount of
$30,500 will cover the cost of the 2011 audit. The Fire Relief and Utility audits will be funded by their
respective budgets.
Attachments
None
Action Motion by Second by Vote
FOIIOW Up