Background/Discussion
Due to the expiration of the existing contract a Request for Proposal (RFP) for Professional Auditing Services was issued on February 26, 2020. The request was posted on the City’s website. Additionally, several firms were directly contacted who are currently engaged by other cities within the state of Iowa.
The City received two qualified proposals. The proposals were reviewed by a designated committee consisting of employees from the City’s finance team. The proposals were evaluated for technical qualifications, audit approach, customer service and price. Additionally, references were reviewed and interviews were held with each firm.
Pricing for the two firms were as follows:
RSM fees, including assistance with the CAFR preparation, totaled $61,750, $63,790 and $65,800 for fiscal years 2020, 2021 and 2022, respectively.
Eide Bailly fees, including assistance with the CAFR preparation, totaled $70,000, $72,400 and $75,300 for fiscal years 2020, 2021 and 2022, respectively.
As a point of reference the City paid $70,000 for audit services for fiscal year 2019 and budgeted $70,000 and $72,000 for fiscal years 2020 and 2021, respectively.
Additionally, both firms priced the services of auditing the City’s component units, which included the Council Bluffs Library Foundation and the Council Bluffs Airport Authority. If these organizations choose to be part of the audit contract, the City will pay the total of those audit services and then bill those organization for the audit services provided.
After evaluation of the criteria listed above, the evaluation team recommends that RSM be awarded the contract for Professional Auditing Services for the City of Council Bluffs. The engagement would begin with the audit of the upcoming financial statements for Fiscal Year 2020 and continue through Fiscal Year 2022. An option to continue for an additional three years is available.