D. Audit Proposal RecommendationIncorporated 1892
telephone (406) 756-7700
Douglas Rauthe
FAX (406) 758-7758
Mayor
Post Office Box 1997
Kalispell, MT
Clarence W. Krepps
Zip 59903-1997
City Manager
DATE: September 5, 1997
City council
Members:
TO: Clarence Krepps
Gary W. Nystul
City Manager
Ward I
Cliff Collins
Mayor Rauthe and City Council Members
Ward I
Norbert F. Donahue
FROM: Amy Robertson
Ward II
Finance Director Jam"
Dale
Ward 11 ll
RE: Audit Proposals
nson
Wa ddtIII
We recentlyadvertised for Requests for Proposals for Audit Services in both the Dail
q p Y
John Graves
Ward !II
Interlake and the Missoulian. We had three inquiries and two proposals. The Firms
submitting proposals are:
Pamela B. Kennedy
Ward IV
Nordwick, Denning and Downey, CPA's from Kalispell
W rd IV Larson
Ronald Paul Foltz, CPA from Missoula
Accounting firms eligible to audit local governments must be on the State's roster of
Independent Auditors authorized to conduct audits of Montana Local Government
Entities. Both these entities are on the roster. Both firms are highly qualified to
perform governmental audits of our scope. Both firms are able to perform the work in
the time frame requested and both firms have had recent peer reviews of their work.
Both firms estimated approximately the same number of hours for field work and both
prices are estimates of maximum costs.
The prices bid for the audits are as follows:
Nordwick, Denning & Downey, CPA's
1997
Hours rate
Total
On -site auditors
255 $40
$10,200
Reviewer
35 $45
$ 1,575
Clerical
225
Total for 1997
290
$12,000
Total for 1998
$12,600
Total for 1999
$13,200
Ronald Paul Foltz, CPA
Initial
Regular
rate
Total
Hours
Hours
General Supervisor 20
40
$85
$ 5,100
Supervising Accountant 30
120
$50
$ 7,500
Asst. Accountants 10
140
$30
$4,500
60
300
$17,100
Travel, lodging, per diem, secretarial
1,900
$19,000
Discount for initial audit (approximately 20%)
(3,500)
Total for 1997
$15,500
Total for 1998 $16,000
Total for 1999 $16,500
It would be my recommendation to hire Nordwick, Denning and Downey, CPA's.
- Both firms are capable but I believe we benefit more from having consistency and I
find it's been helpful having the same auditors audit the City as audit the County. I
also think we should hire locally when their is someone qualified to perform the work.
I've also enclosed the list of clients provided by the accounting firms.
Thank you for your consideration.
C. Qualifications of the Firm
Firm Description: We are firm of certified public accountants with offices in
Missoula and Kalispell, specializing in local government audits.
2. Partners and Staff:
Missoula Office
Stan Nordwick - Partner
Nicole Baker, Staff Auditor
Kalispell Office
Robert K. Denning - Partner
Kim M. Downey - Partner
Deborah Long - Staff Auditor
3. Clients: Since the inception of our firm on January 4, 1994, we either have
performed or have contracted to perform audits of the following local government
units:
City of Missoula
City of Kalispell
City of Whitefish
City of Thompson Falls
City of Ronan
City of Columbia Falls
City of East Helena
City of Cutbank
Town of Boulder
Town of Eureka
Town of Drummond
Town of Hot Springs
Town of Browning
Town of Cascade
Town of Plains
Town of Stevensville
Town of Sunburst
Hot Springs School District Number 14-J
Anaconda School District Number 10
Darby School District Number 9
East Helena School District Number 9
Somers School District Number 20
Victor School District Number 7
Approximately 20 Additional
School Districts
Approximately 5 Irrigation Districts
S.
Flathead County
Sanders County
Lincoln County
Lake County
Mineral County
Broadwater County
Jefferson County
Beaverhead County
Anaconda - Deerlodge County
Granite County
Pondera County
Kalispell School District Number 5
Bigfork School District Number 38
Whitefish School District Number 44
Troy School District Number 1
Eureka School District Number 13
Ronan School District Number 30
Alberton School District Number 2
Browning School District Number 9
Florence School District Number 15-6
Philipsburg School District Number 1
Townsend School District Number 1
Butte School District Number 1
Approximately 8 School Reviews
Several Non-profit Corporations
Y
RONALD PAUL FOLTZ
Certified Public Accountant
LOCAL GOVERNMENT AUDIT CLIENTS
City of Missoula - Financial and Compliance audit, including a Federal
"Single" Audit, for the five years ended June 30,
1993. These audits included Federal compliance
audits on major EPA grants.
School Districts - My firm performs Financial and Compliance Audits
for thirteen school districts. The larger of these
districts are:
Columbia Falls School District No. 6
Missoula School District No. 1
Helena School District
Other Local Governments- My firm has audited or presently audits the
Missoula Redevelopment Agency, Missoula Rural
Fire District, Town of Alberton, and the Missoula
County Conservation District. We also did the
initial audit of the Lakeside County Sewer District.
Non -Profit Organizations- My firm audits several non-profit organizations
including the Montana Society of Certified Public
Accountants.
Commercial Organizations My firm audits several commercial organizations.
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