The URL can be used to link to this page

Home My WebLink About1997-05-28 97-241 ORDERCOUNCIL ACTION Date: May 27, 19W Item No. 97-241 Item/Subject: Auditing Services Responsible Department: Purchasing/Finance Commentary: As noted in the attached memorandum from Ron Heller add Debbie Cyr, the City reissued a request for proposals for auditing services and received three proposals on April 30, 1997. After reviewing the proposals shelf recommended award to MO subject to interviews with the two bullish, Foster, Carpenter & Black of Banger and Runyon Koslow Ouellette of South Portland. On May 14, 1997 the two firms were imserviewed by a selection wurdttce consisting of members of the Finance Committee and City self After the interviews the situation committee unanimously selected Runyon Kersteen Ouellette to perform the City's financial audits. The Finazico Committee voted to award the throe year contract (with an option to renew for an additional died yews) to RKO and radiation the matter to the City Council with a recommendation for approval. dad Manager's Comments: City Manager Associated Immurement Memorandum from Ron Heller/Debbie Cyr. Proposal lBglWghts Spreadsheet. Budget Approval: Finance Director Legal Approval: city Sohdror Introduced For Passage _ First Reading Referral 9]-241 marmtococancilarsoocy bCay 28, 1997 OF • ff City Auditing Services By W My Coamii N W a1v of Baa . OBDEREDr David N. Pen TUT ¢grin, Parcbasing Agan is hereby authorized to execute a three year contract with Runyon Kersteen Ouellette for $132,000.00 for City financial auditing services. IN CITY COUNCIL May 28. 1997 Passed LEAK 97-241 ORDER Title, Authorizing Three Year Contract Award to Runyon Kersteen Ouellette for City Auditing Services .....4...�..�........................... �Couneilman 9]-241 To: Finance Committee Members From: Run HeDedDebbie Cyr Date: May 12, 199] Re: Staffrecru mendationOuditing services In accordance with your insVuctimg, sMffrecemy retained a request for proposals (RFP) for auditing services. Notification ofthe RFP (not Me RFP itself) was sent to 19 firms within fie stare, including nine in Bigger, and an ad was placed in Me Bangor Daily News. The notices and ad yielded three proposals: two from Portland, and we from Bangor. These firms are Runyon Bardeen Collette ("RKO"); Ron L. Beaulieu & Company; and Foster, Carpenter, Black & Co. ("FCB -T The first two are located N Portland. FCB is a Danger Ron. Per your direction, RKO and FCB will be making presentation to you this Wednesday, the 146 of May. You will fend attached k this memo, an bem-by-item comparison of Met we firms' proposals. Additionally, we have contacted Me references with which we were Remiained, and will give you an overview of Mose responses at the meeting. In the meamime, we have reviewed them proposals and are pleased he present you with our recommendation, ourreasoning and a brief compamfive overview. Our recommendation is to contract with Runyon gardens Oullette. We have two principal eseem for making this recommendation. First, they offer greener resources and broader experience in succeeding with respect a city of our sin and complexity Man does FCB. Second, we intend ro issue our first-ever CompeMvive Annual Preavd Report (CAFPd, and need Me assistance of fico with this experience RKO has the experience. Recognizing thee[ one of the more important factors in selorting afiirm is cosq 9 $132,000 for a moor year mgagement the MO proposal is Me most costly of the Mme submitted. This represents a significant increase over oro curnnt auditing costs, and is $29,000 more than FCB's proposal. Our position is that this additional cos[ is well worth Me benefits. As wive now twice discovered with respect to auditing services, Bangor firms do not appear to numb the more specializedand cr0uwc need. This is probably due ro the relatively small umber ofshmilarly outgsized and complex %ovmmmts located nearby,Ne presence of terns would allow a Bangor firm ro gain Me expertise we feel we require. Nevertheless, itremains our personal preference an do businesswith Bangor finny. Bangor is an increasingly complex Respond enflty, encompassing eight enterprise funds, a large umber of trust and agency fiends and some fairly complicated financial relationships. At the some time, external Binding sources require ever-gremer levels of compliance reporting that are peculiar to a government of our size aM nature. As we grow in wmplexhy, it becomes increasingly important to have an auditor with Me staff, resources and expedience on addresg Me issues we will kce. We believe Mat, relative to FCB, RKO W such capabilities. Spacifiwlly: 9]-241 To: Fluence Corrmtittee Members From: Ron HellerMebbie Cyr Date: May 12,1997 Re: Staff recormaendatioWauditing services Page: 2of2 ♦ They audit mote governments of similar sim used complexity thanFCB. TLdr Qummadient list includes the cities of Lewiston, Augusm and Waterville. PCB, on the ether hand, lists Holden, Buckspog, Pleasant Point, Indian Township Tribal Government and the Passamaquoddy Tribe as their used comparble engagements. Induced, a reference check makes this distinction readily dormant. Overall, the WO climate we contacted seemed more sophisticated and aware of their accounting read finance insists bean did Kiss. ♦ RKO's resource base appears broader, given their affiliation with McGladrey@Pullen.This allows them to draw upon additional resources, as necessary. We seem to have reached apointwhere we are doing most things extremely well. This hos been coninned by our auditor's command; in our lam two audio. We feel that RKO is beg positioned In help us improve our governing gold financial proctius. As always, we look forward to seeing you on the 14th. 92-241 Qi4ri. Runyon Keretem oetlletle Faehr,Qpe , Bleek&Cm reafservieen Requires �cefB Yea 1/n CannNning4ndiAdneVAut GmuplScM1Nules Yes Yes Intmelcomml Yee Yes; BPM 45 Yes Yes Single Audit Yee Yes M P Yes Yes SPecW Conidmedon CMR Yes No Genml Rsquiremenn Pnllowstl insnucticm Yes Yea W ybest qualified ieepexiessece Papenmce Nationel nfilinim Poetapon Bengoe National mining Pm,tilivwiJ. fe]W mdmmmming smmmfeemn oomplience.soluceL Pmvmeuwnelnnin. ingmclimis TecMiml Proposal Pi,m Qielifi<elioWGapacity All nine CPM pro curainesiv gov<nioim,w auditors +Munis,quengcMs 75%ofmditseMossm &Swetlepu formuniuglitics,,w1- fptofits Independent Yes Yes I.isemed Yes Yes NOCanlicl YM UNK Pirm3iu 26 10 43hRDetlictletlm GovtAwit 13 9 Lomtian SPONCemdm BanwAuckymt NumtserofRoursProposed Staff mm V506 Mewger/$uPervim 1260 0 PVIntt/Managa(PCH) 1/114 M40 Total boon M08 W" Brnttlown of Andcigtetl Hrs by Tazk Hm Conf, Plenninb l^m^cICM LVc 255 0 Pieldxok Nc Complianm 222 48 f,RePorlr 126 126 QIbal ftff 116 11 0 Tow boon hours '/PB 746 _ Quelily Review yesM S Yeas Im, Field Review Ye✓mO on YWNOActlon SwfQulifintims Kas,eeMywn PaunrBlazk ma,e Mmog r Senior flemmWCnntlal Staff MckaY3paam/Brown Cor6mungProfessional Mucalim Yes Yes