Body
Department of Finance
Reference: Forensic Audit Contract
To: Mayor Kenneth J. Kreutzer and Members of City Council
Through: Marv Falconburg, Acting City Manager
Prepared By: Amber Gibbs, Procurement & Contracts Manager, and Maria Ostrom, Director of Finance
Date Prepared: October 17, 2019
PURPOSE
To authorize a contract with Two Hills Accounting to conduct a forensic audit of the utility funds.
STRATEGIC FOCUS AREA
Financially Responsible
BACKGROUND
Service Provider shall complete a forensic analysis (“audit”) of the sources and uses of funds for the period January 1, 2008 through June 30, 2019 of the Water, Waste Water, and Storm Drainage Utilities, and confirm the December 31, 2018 ending fund balances in each Utility. All Services shall be performed in accordance with applicable industry standards which may include generally accepted accounting principles (US GAAP), generally accepted auditing standards (US GAAS), and standards applicable to forensic analysis and investigations.
Eight (8) formal proposals were received on September 13, 2019 and reviewed by the Council appointed Citizen Financial Audit Review Committee on October 3, 2019. Two Hills Accounting was selected by the Committee. At the October 15, 2019 Council Meeting, the Committee presented its recommendation and City Council authorized staff to engage Two Hills and prepare a contract.
The eight (8) proposing firms were as follows:
Carr Riggs & Inigram
Eide Bailly
FTI Consulting
Grassi & CO.
Marsh Minick P.C.
Plante Moran
Rubin Brown
Two Hills Accounting Consulting
FINANCIAL IMPACT
The contract cost is $54,350 which will be paid out of the utilities funds.
STAFF RECOMMENDATION
Staff recommends, on behalf of the appointed Citizen Financial Audit Review Committee, approval of the contract with Two Hills Accounting Consulting, in the amount of Fifty-Four Thousand Three Hundred Fifty Dollars ($54,350).
OPTIONS FOR COUNCIL CONSIDERATION
Ø Approval as presented
Ø Reject
Ø Require new proposals be prepared
Attachments:
Ø Resolution