Audit Services RecommendationCITY OF DUBUQUE, IOWA
MEMORANDUM
April 30, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Audit Services Recommendation
Finance Director Ken TeKippe and the Audit Committee are recommending approval of
Eide Bailly LLP as the City's auditing firm for the next five years.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Kenneth J. TeKippe, Finance Director
Finance Department
S0 West 13th Street
Dubuque, Iowa 52001-4864
TO:
FROM:
SUBJECT:
DATE:
Michael Van Milligen, City Manager
Kenneth J. TeKippe, Finance Director
Audit Services Recommendation
April 27, 2001
INTRODUCTION
Fiscal year ended June 30, 2000 marked the final year of the previous five-year contract
for.providing audit services for the City of Dubuque. An audit committee was formed to
review proposals and recommend a firm for providing audit services to the City for the
next five fiscal years (FY'01 - FY'05). Committee members consisted of: Ken
TeKippe, Finance Director; Pauline Joyce, Administrative Services Manager; Dawn
Lang, Assistant Finance Director; Chris Kohlmann, Information Services Manager;
Agnes Kramer, Community Development Specialist; David Harris, Housing and
Community Development Director; and Gil Spence, Leisure Services Manager.
A Request For Proposal (RFP) for audit services was developed. A letter was issued on
February 28, 2001 to the following five CPA firms to solicit their interest: Deloitte &
Touche LLP, Cedar Rapids; Eide Bailly LLP, Dubuque; Honkamp Krueger & Co. P.C.,
Dubuque; McGladrey & Pullen LLP, Dubuque; and O'Connor Brooks & Co. P.C.,
Dubuque.
DISCUSSION
Four firms responded with a timely notification of interest. On March 8, 2001, the RFP
and various City financial reports for FY'00 were provided to the firms: Honkamp
Krueger & Co. P.C.; McGladrey & Pullen LLP (Moline Office); Deloitte & Touche LLP
and Eide Bailly LLP.
Timely proposals were received from Eide Bailly LLP and McGladrey Pullen LLP.
Deloitte & Touche LLP submitted a letter declining to submit a proposal due to their
heavy workload during the timeframe planned for the audit. Honkamp Krueger & Co.
P.C. submitted a letter declining to submit a proposal with no reason provided. Both
firms appreciated the opportunity and would like to be considered in the future.
Service People
Integrity Responsibility
Innovation Teamwork
The audit committee conducted interviews at City Hall with representatives of the two
firms submitting proposals. Telephone calls to references of both firms were made. The
proposals submitted, interviews conducted and telephone references indicate that both
firms are qualified and would be able to conduct the audits. The audit committee has
evaluated the frans and has recommended that Eide Bailly LLP be retained as the CPA
firm to provide audit services for the next five years. Based on the strong consensus of
the committee, I recommend your support in seeking City Council approval to issue a
contract.
Significant factors benefiting Eide Bailly LLP include prior experience auditing City of
Dubuque records, number of other similar sized Iowa cities audited, price ($51,900 lower
over five year proposal), local office/convenience of access to senior audit staff and
GASB #34 readiness. There could be benefits to utilizing a new CPA firm with an
alternative audit approach and a fresh set of eyes. The committee felt with the recent
hiring of Dawn Lang as Asmstant Finance Director and myself as Finance Director
provides the City an opportunity for new individuals to review the various accounting
procedures/policies in place. We anticipate implementing internal auditing procedures
and providing increased assistance to internal City departments over the next 2 - 3 years.
Copies of the RFP proposals received, as well as all other correspondence regarding the
process are available for review by you or other interested parties.
ACTION
The audit committee requests your review and submission to the City Council for
approval of Eide Bailly LLP as the City's auditing firm for the next five years. If there
are any questions on this issue, please contact me. Thank you for your assistance.
KJT/mjm
CC;
Pauline Joyce, Administrative Services Manager
Dawn Lang, Assistant Finance Director
Chris Kohlmann, Information Services Manager
Agnes Kramer, Community Development Specialist
David Harris, Housing and Community Development Director
Gil Spence, Leisure Services Manager