HomeMy WebLinkAbout15.F.3. Auditor's Proposal for 2003 Audit
IS: F 3.
CITY OF SHAKOPEE
Memorandum CONSEr~T
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Auditor's Proposal for 2003 Audit
DATE: July 22, 2003
Introduction & Background
The city has received the proposal for the provision of audit services
for FY 2003. The firm is Kern, DeWenter and Vi ere whom the council
selected five years ago.
The proposed price for the basic audit is $22,500 compared to $21,500
for FY 2002. The cost to prepare the annual financial report is $4,600
versus $4,600 last year.
The city is required by accounting standards to implement GASB 34 this
year. The fee proposed by the auditors to implement GASB 34 is $7,000.
Alternatives
1. Retain just the basic audit at $22,500.
2. Retain the basic and the annual report for $27,100.
3. Retain the basic and report and GASB 34 implementation for
$34,100.
Recommendation
Alternative #3. This alternative contracts out some of the finance
workload at the peak time of the year. The auditors are qualified to
do the work. Also, this reduces the need for additional staff in that
time frame and is more cost effective.
Action
Move to retain Kern, DeWenter and Viere as auditors for fiscal year
2003 at the proposed amount of $34,100.
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Gfegg ~d
Finance Director
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