Audit Services Recommendation_Eide BaillyMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Audit Services Recommendation
DATE: April 12, 2011
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
Michael C. Van Milligen
Dubuque
kiltd
AA- America City
1 111 '
2007
Fiscal year ended June 30, 2010, was the final year of a five -year contract with Eide
Bailly, LLP to providing audit services for the City of Dubuque.
A Request for Proposal was issued for auditing services for the next five fiscal years
and five responses were received. After review of the proposals, three firms were
selected for interviews.
Finance Director Ken TeKippe and the RFP Review Committee recommend City
Council approval of Eide Bailly, LLP to continue as the City's auditing firm for the next
five fiscal years.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Masterpiece on the Mississippi
TO: Michael C. Van Miliigen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
SUBJECT: Audit Services Recommendation
DATE: April 11, 2011
INTRODUCTION
All current audit firms for 15 largest Iowa cities
All certified Public Accounting Firms in Dubuque
Two out of state firms that had expressed interest
DISCUSSION
Dubuque
AI-America City
1
2007
Fiscal year ended June 30, 2010 was the final year of a five -year contract for providing
audit services for the City of Dubuque. An audit services review committee was
established to review proposals and recommend a firm to provide audit services to the
City for the next five fiscal years (FY'11 — FY'15). Committee members included; Ken
TeKippe, Finance Director; Jean Nachtman, Assistant Finance Director; Jenny Larson,
Budget Director; Jason Hartman, Assistant Budget Director, Joe Pregler, Lead
Application /Network Analyst, Aggie Tauke, Community Development Specialist; Cheryl
Sheldon, Airport Accountant; and Chuck Goddard, Solid Waste Agency Administrator.
The committee developed an Audit Services Request for Proposal (RFP). The RFP
was posted on the City of Dubuque website and a letter was mailed on February 23,
2011 to the following:
Five firms submitted proposals: Baker Tilly Virchow Krause, LLP, Milwaukee,
Wisconsin; Denman & Company, LLP, West Des Moines, Iowa; Eide Bailly, LLP,
Dubuque, Iowa; LarsonAlien, LLP, Minneapolis, Minnesota; and McGladrey & Pullen
LLP, Davenport, Iowa.
The audit services review committee reviewed the proposals. Three firms were
selected for interviews: Baker Tilly Virchow Krause, LLP, Eide Bailly, LLP and
McGladrey & Pullen, LLP. The committee recommends retaining Eide Bailly LLP as the
CPA firm for the next five years. Significant factors for selecting Eide Bailly LLP include;
1) $100,000 plus lower cost over five years, 2) experience auditing the City of Dubuque
utilizing audit staff already familiar with City's employees and operations, 3) local office
with over 30 employees, 4) local employees perform audit work which provides
convenient access to senior audit staff, and 5) experience auditing other larger Iowa
governmental clients including cities of Ames, Cedar Falls, Iowa City and Urbandale
and counties of Dubuque and Linn .
Based on the consensus of the committee, I recommend seeking City Council approval
to issue a contract.
A copy of the Eide Bailly, LLP proposal and dollar cost bid are enclosed.
ACTION
The audit services review committee requests your review and submission to the City
Council for the approval of Eide Bailly, LLP to continue as the City's auditing firm for the
next five fiscal years and subsequent authorization for you to sign the audit service
agreement. If there are any questions on the process or recommendation, please feel
free to contact me. Thank you for your consideration.
KJT /jmg
Enclosures
cc: Jean Nachtman, Assistant Finance Director
Jenny Larson, Budget Director
Jason Hartman, Assistant Budget Director
Joe Pregler, Lead Application /Network Analyst
Aggie Tauke, Community Development Specialist
Cheryl Sheldon, Airport Accountant
Chuck Goddard, Solid Waste Agency Administrator