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City of <br />Qk*l <br />River <br />Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />4.5 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Consent <br />October 4, 2021 <br />Lori Ziemer, Finance Director <br />Item Description <br />Reviewed by <br />Proposal for Audit Services with BerganKDV <br />Cal Portner, City Administrator <br />Reviewed by <br />Action Requested <br />Approve, by motion, an agreement for audit services with BerganKDV for the years ending 2021-2025. <br />Background/Discussion <br />The city's contract for auditing services ended with the 2020 audit. Staff issued a request for proposal (RFP) <br />for audit services for the fiscal years 2021 through 2025 and received proposals from four firms. All four <br />firms are well qualified and experienced in government auditing and accounting. <br />Finance staff interviewed and evaluated the four firms on a number of criteria including: audit firm/staff <br />experience, similar government engagement experience, approach to audit quality, communication and <br />responsiveness with city staff, value-added services, and proposed fee. <br />While each firm presented quality proposals, staff recommends BerganKDV based on the criteria listed <br />above. BerganKDV audits over 60 municipalities with many similar engagements to Elk River. BerganKDV's <br />references have indicated a high degree of satisfaction and stated staff members are knowledgeable of any <br />changes and help cities implement these changes. In addition, staff is in communication with city staff and <br />responsive to questions or consulting not just during the audit but throughout the year. <br />Over the five-year term, the audit fee proposal from BerganKDV was the lowest all-inclusive bid of <br />$163,635. The bids ranged from $163,635 to $181,145. Additional fees will apply for a Single Audit should <br />the city expend more than $750,000 of Federal fund in any year. <br />Financial Impact <br />The proposal for city audit services by BerganKDV for the years 2021-2025 is as follows: <br />Year <br />Audit Fee <br />2021 <br />$30,985 <br />2022 <br />$31,825 <br />2023 <br />$32,700 <br />2024 <br />$33,600 <br />2025 <br />$34,525 <br />Total <br />$163,635 <br />The Elk River Vi ion <br />_-i a1,,e1r0rrrh1, rorrrr71r1111t, ra, M retobrfirrrrrj; P 01 w E e E o ® r <br />