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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. 11