HomeMy WebLinkAbout9.a. Proposal for Audit Servicesr^
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: December 5, 2000
AGENDA ITEM: Proposal for Audit Services
AGENDA SECTION:
New Business
PREPARED BY: Jeff May, Finance Director
AGEND
9 -A
ATTACHMENTS: Letter from Former Auditor, Letter from
APPROVED BY:
Prospective New Auditor
For your consideration this evening is the status of our audit services. Our firm of 18 -plus years,
Boeckermann, Heinen & Mayer, is discontinuing their governmental audit services effective
immediately. The attached letter explains their reasons for doing so and also recommends another
firm that could possibly take over our audit. Tom Burt and I have met with both of the firms and feel
that this is the action we should take for this year's audit because of the timing of our old audit firm to
discontinue working with us. To go through a formal process at this point would be time consuming
and leave us in a difficult position to finish our audit in a timely manner and meet the reporting
guidelines of the State. We feel that by utilizing the new firm, Virchow, Krause & Company (VKC),
we will be able to make a fairly smooth transition and "test" the new firm out. If we are pleased with
their services, we can hopefully begin another long relationship with the new firm. If we are less than
pleased, we will have all summer and fall of next year to go through a formal bidding process in
choosing a new firm.
Virchow, Krause & Company have agreed to basically the same rate structure that we have had with
Boeckermann, Heinen & Mayer. VKC has a much larger staff base, especially in the area of
governmental clients. With the coming implementation of GASB 34, we feel that having a larger firm
like VKC will give us better service in the City's implementation of these new reporting requirements.
RECOMMENDED ACTION:
Motion to allow staff to take the necessary steps to retain the services of Virchow, Krause &
Company for the year 2000 audit services.
COUNCIL ACTION:
BOECKERMANN HEINEN & MAYER
., P.A.
C E R T I F I E D P U d L I C A C C O U N T A N T S
November 30, 2000
Mayor and City Council
City of Rosemount
2875 —145' Street west
Rosemount, Minnesota 55068 -4997
Dear Mayor and Ccuncil Members:
Thank you for your business over these past many years. You have been a valued client of Boeckermann,
Heinen and Mayer, P.A. and we have appreciated your loyalty. Because of our long relationship, this is a
difficult letter to write.
Our firm has decided to move out of the governmental audit services business effective immediately. We
have built our firm on providing high quality services to all of our clients and have felt that if that ability
changes we need to react. With the commitment required to keep current with the governmental reporting
standards, in particular with Governmental Accounting Standards Board Statement Number 34 and the
difficulty in obtaining staff, we have decided that we cannot continue to provide the high level of service
that we built our firm on.
In order to have you continue to receive high quality service and make a transition as seamless as possible,
we have negotiated an arrangement with Virchow, Krause &. Company, LLP to work with our clients.
Boeckermann, Heinen and Mayer, P.A. staff will be involved in the audit as much as is necessary in order
to allow a smooth =nsition. We will make our workpapers available for their use during the audit and be
available to provide background information to them I have known personnel from Virchow, Krause &
Company, LLP for sc--eral years and I am very confident that you will continue to receive a very high level
of service.
Thank you for the long -term relationship. I am willing to answer any questions you may have.
Sincerely,
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Allen A Heinen, CPA
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7900 Xerxes Avenue South • Suite 2300
Bloomington, MN 55431 -1115
Virchow, Krause & Company, LLP 612/835 -1344 • FAX 612J835,5845
Certified Public Accountants & Consultants
November 28, 2000
Mr. Thomas Burt, City Administrator
City of Rosemount
2875 —145' Street West
Rosemount, Minnesota 55068 -4997
Dear Mr. Burt:
It was a pleasure meeting with you and Jeffrey May concerning the upcoming audit needs of the
City. As AI Heinen and 1 explained, we are working with the Boeckermann Heinen & Mayer firm _
during 2000 to transition your audit
As you know, Virchow, Krause & Company, LLP is one of the largest governmental service
providers in the Midwest. We provide services to over 250 cities and 400 governmental units.
We also provide software support and services to approximately 300 cities, including the City of
Rosemount, through our software affiliate, CIVIC Systems. We took forward to assisting with
your audit needs.
With regards to pricing, we will be stepping into the same fee structure as in prior years. We
anticipate a 3% increase over last year's fees.
If you have any questions regarding the above, please contact me.
Sincerely,
VIRCHOW, KRAUSE & COMPANY, LLP
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Daryl De am, CPA, Partner
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