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File #: 22-0989    Version: 1 Name: 6/21/22 Rehmann Auditing Services
Type: Resolution Status: Passed
File created: 6/21/2022 In control: City Council
On agenda: 6/21/2022 Final action: 6/21/2022
Enactment date: 6/21/2022 Enactment #: R-22-208
Title: Resolution to Approve an Agreement for Auditing Services with Rehmann Robson, LLC for ($405,000.00/5 years)
Attachments: 1. RFP 22-31 Document.pdf, 2. Rehmann Auditing PSA 06 21 22.pdf

Title

Resolution to Approve an Agreement for Auditing Services with Rehmann Robson, LLC for ($405,000.00/5 years) 

Memorandum

This resolution requests approval of a five-year contract, with two optional one-year extensions, for independent auditing services with Rehmann Robson, LLC.

 

The attached resolution seeks approval of a professional services contract with Rehmann Robson, LLC for independent auditing services in the amount of $405,000.00 for a five-year period, on behalf of the Financial and Administrative Services unit.  This agreement is presently needed because the agreement with the former independent audit firm has expired. This agreement gives the Financial and Administrative Services unit the option to renew the agreement for two additional one-year periods at a cost of $90,000.00 and $93,000.00 for fiscal years 2027 and 2028 respectively.

 

On April 19, 2022, the City received proposals in response to Request for Proposal (RFP) No. 22-31 from five firms.  The RFP required each consultant to submit professional qualifications, past involvement with similar projects, work  plan, and fee proposals.  A selection committee comprised of Financial staff reviewed the proposals to determine which firms were most qualified to perform the required services.  Three firms were interviewed,  evaluated and scored on several criteria:

 

                     Professional Qualifications - 25 points

                     Past Involvement with Similar Projects - 25 points

                     Proposed Work Plan - 20 points

                     Fee Proposal - 30 Points

 

After reviewing and scoring the proposals, staff ranked the responding firms in the following order:

 

1.                     Rehmann Robson, LLC: $405,000

2.                     Maner Costerisan: $562,400

3.                     Yeo & Yeo, PC: $692,750

 

Based on the proposals and fee schedules submitted, the selection committee decided to award Rehmann Robson, LLC the Auditing Services Contract.

 

Rehmann Robson, LLC complies with the City’s non-discrimination and living wage ordinances.

 

Budget/Fiscal Impact: Funds for the first year of this agreement have been budgeted in the approved FY23 General Fund Finance budget and will be annually budgeted, pending City Council approval, for all remaining years of the contract term.

The Financial and Administrative Services unit recommends Rehmann Robson, LLC for appointment by the Mayor and City Council as the City of Ann Arbor’s independent auditor for a five (5) year commitment with an option to renew for two additional one-year extensions, commencing with the audit of the fiscal year ending June 30, 2022.

Staff

Prepared by:                                          Tami Cook, Accounting Manager

Reviewed by:                     Marti Praschan, Financial Services Area Administrator and CFO

Approved by:                                          Milton Dohoney Jr., City Administrator

Body

Whereas, The City issued a Request for Proposal No. 22-31, to identify certified public accountants to conduct an independent audit of the City’s accounts as required by the City Charter Section 8.15;

 

Whereas, On April 19, 2022 five firms responded to the RFP;

 

Whereas, The attached Auditing Services contract will allow the City to receive audit services as required by City Charter Section 8.15;

 

Whereas, Funding is available in the approved FY23 General Fund Finance budget for this agreement;

 

Whereas, The Financial and Administrative Services unit plans to budget sufficient funding for FY24 - FY27, pending City Council approval, in the General Fund Finance budget; and

 

Whereas, Rehmann Robson, LLC complies with the requirements of the City’s Living Wage and Non-Discrimination ordinances;

 

RESOLVED, That City Council approve the attached Auditing Services contract with Rehmann Robson, LLC for a 5-year commitment with an option to renew for up to two one-year extensions for the annual fees as shown below:

Year Ending June 30                                          Audit Cost

2022                                                                                                         $75,000

2023                                                                                                         $78,000

2024                                                                                                         $81,000

2025                                                                                                         $84,000

2026                                                                                                         $87,000

2027 (Optional)                                                               $91,000

2028 (Optional)                                                               $95,000

 

RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Professional Services Agreement with Rehmann Robson, LLC after approval as to substance by the City Administrator and approval as to form by the City Attorney; and

 

RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution including execution of any authorized renewals and any changes or amendments.