HomeMy WebLinkAbout2014 06-19 FCA
AGENDA
Brooklyn Center Financial Commission
Thursday, June 19, 2014 – 6:30 PM
All American Conference Room (Main Level of City Hall)
I. Call to Order
II. Approval of Agenda
III. Approval of Minutes for January 16, 2014
IV. Mayor and City Council Compensation for 2015-2016
V. RFP for Audit Services
VI. Other Business
a. Future Meeting Dates
i. Work Session w/City Council: Budget Preparation - Capital
Projects on Monday, July 7, 2014
b. Feedback on Work Session w/Auditor on 2013 Audit
VII. Adjournment
Financial Commission Agenda Items No. 3
1
Financial Commission
Regular Meeting Minutes
January 16, 2014
1. Call to Order
The meeting was called to order by Mr. Newman at 6:35 PM
Members Present: Commissioners Newman, Landis, Kragness, Van Der Werf and
Schueller.
Members Absent: Council Liaison Lawrence-Anderson (excused).
Staff present was Finance Director Reinhardt.
2. Introductions
For the benefit of the members of the Commission, new Finance Director Mr.
Reinhardt introduced himself and gave a brief background.
3. Adoption of the Agenda
Without objection, Mr. Newman declared the agenda adopted.
4. Minutes
Mr. Landis moved adoption of the minutes from the March 21, 2013 meeting. Ms.
Kragness seconded the motion. With all voting in favor, the motion was adopted.
5. Election of Commission Chairperson
Ms. Kragness nominated Mr. Newman as Chairperson for 2014. Nominations were
closed. By unanimous consent Mr. Newman was affirmed Chairperson of the
Financial Commission for 2014.
6. Appointment of Commission Vice Chairperson
As required by the enabling resolution, Mr. Newman appointed Mr. Landis as the
Vice Chairperson for 2014.
7. RFP for Audit Services
Mr. Reinhardt reviewed the City Council Policy requiring that the Request for
Proposal (RFP) process be followed for securing financial statement audit services
every six years. Mr. Reinhardt then reviewed the RFP for Auditing Services that was
distributed with the meeting packet. Direction was provided to update the
dates/names of the RFP and to move forward with the process following completion
of the 2013 audit.
2
8. Capital Project Funding Policy
Mr. Reinhardt reviewed City Council resolutions approved on January 13, 2014 that
transferred uncommitted balances to the Capital Project fund and established a
Capital Project Funding Policy. The Policy specifically identifies three main funding
sources that will provide an estimated $1.1 million in annual funding as follows:
1. Audited year-end General Fund unassigned fund balance above 52% of
the next year’s General Fund operating budget.
2. Audited year-end Liquor Fund unrestricted cash balance that exceeds 3.5
months of the next year’s operating budget and one year of budgeted
capital equipment needs of the liquor operations.
3. Local Government Aid (LGA) received in the amount of $650,000 or half
of the amount received by the City (whichever is greater).
There was discussion on the Capital Projects, policy and funding sources. Mr.
Newman noted the importance of identifying projects in advance of the year they
are to be completed to make the public aware and to be able to plan for these
projects. The Commission discussed the possibility of adding a discussion on the
Capital Improvement Plan and Equipment Replacement as a future agenda item.
9. Future Meeting Dates
Commissioners were made aware that the City Council will host an Open
House/Forum session with all City Commissions on Wednesday, April 9, 2014
beginning at 6:00 PM in Constitution Hall at the Community Center.
Commissioners were made aware that the City Council will host a work session with
the Financial Commission and Auditor on Monday, June 2, 2014 beginning at 6:30
PM in the Council Chambers to discuss the result of the 2013 audit.
Adjournment
With no other business to transact, Mr. Newman adjourned the meeting at 7:36 PM.
Financial Commission Agenda Items No. 4
Memorandum
Date: June 19, 2014
To: Financial Commission
From: Nathan Reinhardt, Finance Director
Re: City Council Compensation for 2015 and 2016
Every two years it is the responsibility of the Financial Commission to review the
City Council’s compensation and recommend a compensation level for the
upcoming two years. The review and recommendation was last provided in
2012. The Commission’s recommendation will be forwarded to the City Manager
to present to the City Council.
In the City Council Code of Policies, Section 2.05 deals with City Council
compensation, a copy of that section has been included with this memo. The
Finance department has compiled a table of comparative compensation numbers
for the City Councils named in the policy.
In previous Commission reviews of Council compensation the goal of the
recommendation has been to keep Brooklyn Center’s City Council compensation
at or above the average of the comparison cities. The comparison chart
indicates the average levels for both the Mayor and Council Members for the past
six years.
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Financial Commission Agenda Items No. 5
City of Brooklyn Center
Minnesota
Request for Proposal
Professional Auditing Services
For Years Ending December 31,
2014, 2015, 2016
June 4, 2014
TABLE OF CONTENTS
I. INTRODUCTION
A. General Information
B. Instructions
C. Term of Engagement
D. Subcontracting
II. NATURE OF SERVICES REQUIRED
A. Scope of Work to be Performed
B. Auditing Standards to be Followed
C. Reports to be Issued
D. Reporting to the City Council
E. Special Considerations
F. Working Paper Retention and Access to Working Papers
III. DESCRIPTION OF THE GOVERNMENT
A. Contact Person
B. Background Information
C. Federal and State Assistance
D. Component Units
E. Pension Plans
F. Joint Ventures
G. Magnitude of Finance Operations
H. Technology
IV. TIME REQUIREMENTS
A. Proposal Calendar
B. Detailed Schedule for 2014 Audit
V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT
PREPARATION
A. Finance Department and Assistance
B. Work Area
C. CAFR Preparation
D. Other Report Preparation
VI. PROPOSAL REQUIREMENTS
A. Required Components
B. Technical Proposal
C. Dollar Cost Proposal
VII. EVALUATION PROCEDURES
A. Audit Proposal Evaluation & Criteria
B. Oral Presentations
C. Final Selection
D. Right to Reject Proposals
VIII. VOLUNTEER FIREFIGHTER’S RELIEF ASSOCIATION
A. General Information
B. Contact Person
C. Scope of Work to be Performed
D. Association Assistance During the Audit
E. Proposal Calendar
F. Detailed Schedule for 2014 Audit
G. Dollar Cost Proposal
H. Final Selection
ATTACHMENTS
A. Proposer Warranties
B. Schedule of Professional Fees and Expenses
I. INTRODUCTION
A. General Information
The City of Brooklyn Center (the City) is requesting proposals from qualified firms of
certified public accountants to audit its financial statements for the years ending December
31, 2014, 2015, and 2016.
The City of Brooklyn Center Volunteer Firefighters Relief Association (the Association) is
also requesting proposals, for their own separate audit for the same years identified above.
Firms interested in providing a proposal for this separate audit, should reference Section VIII
of this document.
These audits are to be performed in accordance with the provisions of applicable auditing
standards which are outlined later on within this request for proposals.
B. Instructions
To be considered, qualified firms must submit four (4) hard copies of their proposal. The
proposal must be received by 4:00 p.m. on August 4, 2014, addressed to:
Nathan Reinhardt, Finance Director
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Firms are also required to submit an electronic (PDF) version of their proposal, and should
be received by 4:00 p.m. on August 8, 2014, and should be sent to:
Nathan Reinhardt, Finance Director
nreinhardt@ci.brooklyn-center.mn.us
There is no expressed or implied obligation for the City to reimburse responding firms for
any expenses incurred in the preparing of proposals in response to this request.
The City reserves the right, where it may serve the City’s best interest, to request additional
information or clarification from proposers, or to allow corrections of errors or omissions. At
the discretion of the City, firms submitting proposals may be requested to make oral
presentations as part of the evaluation process.
The City reserves the right to retain all proposals submitted and to use any ideas in a
proposal regardless of whether that proposal is selected. Submission of a proposal indicates
acceptance by the firm of the conditions contained in this request for proposals, unless
clearly and specifically noted in the proposal submitted and confirmed in the engagement
letter between the City and the firm selected.
The City reserves the right to reject any or all proposals submitted.
Contact with personnel (including elected officials) of the City, other than Nathan Reinhardt,
Finance Director, in regards to this request for proposals may be grounds for elimination
from the selection process.
C. Term of Engagement
An initial three (3) year engagement contract is requested, for the years ending December 31,
2014, 2015 and 2016. An additional three (3) one year engagements will be available after
the initial contract, which will be subject to annual review, satisfactory negotiation of terms
(including a price acceptable to the City and the selected firm), as well as City Council
approval.
D. Subcontracting
Following the award of the audit contract, no subcontracting will be allowed without the
express prior written consent of the City.
II. NATURE OF SERVICES REQUIRED
A. Scope of Work to be Performed
The City will retain the accounting firm to audit its financial processes, records, and
statements in order to express an opinion on the fairness of the presentation of the
government-wide, major governmental funds, major business-type funds, and the aggregate
remaining fund financial statements in conformity with generally accepted accounting
principles.
The auditor shall also be responsible for performing certain limited procedures involving
required supplementary information required by the Governmental Accounting Standards
Board (GASB) as mandated by generally accepted auditing standards.
The City also desires the firm to review the presentation of the statistical section of the
comprehensive annual financial report, in so far as current generally accepted auditing
standards require such review.
The auditor is not required to audit the schedule of expenditures of federal awards if such
audit is not triggered by the threshold of funding received by the City.
B. Auditing Standards to be Followed
To meet the requirements of this request for proposals, the audit shall be performed in
accordance with:
Generally accepted auditing standards as set forth by the American Institute of
Certified Public Accountants (AICPA).
The standards for financial audits as set forth in the U.S. General Accounting
Offices’ (GAO) Government Auditing Standards.
The provisions of the most recent Single Audit Act.
The provisions of U.S. Office of Management and Budget (OMB) Circular A-133.
The provisions of the Minnesota Legal Compliance Audit Guide for Local
Government.
Any other Federal, State and local requirements in effect now, or placed into effect
during the engagements.
C. Reports to be Issued
Following the completion of the audit of the year's financial statements, the auditor shall
issue:
1. An Independent Auditor’s Report, expressing an opinion on the fair presentation of
the financial statements in conformity with generally accepted accounting principles.
2. An Independent Auditor’s Report, on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards.
3. An Independent Auditor’s Report, on the Schedule of Expenditures of Federal
Awards required by OMB Circular A-133 (if applicable).
4. An Independent Auditor’s Report, on Compliance for Each Major Federal Program
and Report on Internal Control Over Compliance Required by OMB Circular A-133
(if applicable).
5. An Independent Auditor’s Report, on Minnesota Legal Compliance
6. A Management Letter
7. Any other requested or required reports agreed upon in the annual engagement letter.
In the required report(s) on internal controls, the auditor shall communicate any reportable
conditions found during the audit. A reportable condition shall be defined using the standards
promulgated by the Statement of Auditing Standards (SAS) in effect for the year being
audited.
Non-reportable conditions discovered by the auditors shall be reported in the separate
Management Letter, which shall be referred to in the report(s) on internal controls.
The audit firm shall be required to make an immediate, written report of all irregularities and
illegal acts or indications of illegal acts of which they become aware of during the course of
the audit to the City Council and City Manager.
D. Reporting to the City Council
Auditors shall assure themselves that the City Council is informed of each of the following:
1. The auditor's responsibility under generally accepted auditing standards.
2. Significant accounting policies.
3. Management judgments and accounting estimates.
4. Significant audit adjustments.
5. Other information in documents containing audited financial statements.
6. Disagreements with management.
7. Management consultation with other accountants.
8. Major issues discussed with management prior to retention.
9. Difficulties encountered in performing the audit.
E. Special Considerations
The City will send its Comprehensive Annual Financial Report (CAFR) to the Government
Finance Officers Association of the United States and Canada (GFOA) for review in their
Certificate of Achievement for Excellence in Financial Reporting program. It is not
anticipated that the auditor will be required to provide special assistance to meet the
requirements of the program; however, the City will accept suggestions and assistance.
F. Working Paper Retention and Access to Working Papers
All working papers and reports must be retained, at the auditor's expense, for a minimum of
three (3) years following the issuance of an opinion, unless the firm is notified in writing by
the City of the need to extend the retention period. The auditor will be required to make
working papers available, upon request, to the following parties or their designees:
City of Brooklyn Center
Office of the State Auditor (OSA)
U.S. General Accounting Office (GAO)
Parties designated by the federal or state governments or by the City as part of an
audit quality review process
Auditors of entities of which the City is a sub-recipient of grant funds
In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow
successor auditors to review working papers relating to matters of continuing accounting
significance.
III. DESCRIPTION OF THE GOVERNMENT
A. Contact Person
The auditor's principal contact with the City will be:
Nathan Reinhardt, Finance Director
(763) 569-3345
nreinhardt@ci.brooklyn-center.mn.us
B. Background Information
The City is a northern metropolitan area suburban community located in Hennepin County.
The City encompasses approximately 8.5 square miles, with the most recent population
estimate to be 30,569 by the Metropolitan Council. The City was incorporated in 1911, and
currently operates under the “Plan B” form of government under Minnesota Statutes.
The City’s governing body consists of a Mayor and four Council Members, all of whom are
elected at large. The present Mayor and Council Members, as well as their respective terms
are listed below:
Tim Willson Mayor December 31, 2014
Carol Klevin Council Member December 31, 2014
Kris Lawrence-Anderson Council Member December 31, 2016
Lin Myszkowski Council Member December 31, 2016
Dan Ryan Council Member December 31, 2014
The City Manager is responsible for the daily management of City business and the
administration of policy as directed by the Council. Cornelius L. Boganey is the City
Manager and has served in this capacity since 2006.
The City employs approximately 275 full and part-time employees.
Governmental operations of the City had a 2014 expenditure budget in excess of $52 million,
and include: general administration, police & fire protection, building and community
standards, housing redevelopment, economic development, maintenance & construction of
community infrastructure, and community activities & recreational services.
Business-type operations of the City had a 2014 revenue budget in excess of $21 million, and
include: water utility, sanitary sewer utility, storm drainage utility, street light utility,
recycling utility, municipal off-sale liquor stores, executive golf course, Earle Brown event
center and three internal service funds.
The City currently has a bond rating of AA provided by Standard & Poors.
C. Federal and State Assistance
During 2013, the City expended in excess of $1.5 million in federally awarded funds, thus
requiring the need for a Single Audit.
It is expected that the City will require a Single Audit for 2014 and 2015, as Federal funds in
excess of $18 million from the Minnesota Public Facilities Authority (PFA) will be expended
for the construction of a water treatment plant.
The City also expects to continue to expend federally awarded funds through the Department
of Housing and Urban Development (HUD) for programs aimed at rehabilitating and
stabilizing the local housing market. The level of funding for these programs cannot be
predicted into the future, but by themselves have trigged a Single Audit in 2013 and previous
years.
D. Component Units
The City is responsible for two component units; the Housing and Redevelopment Authority
(HRA) and the Economic Development Authority (EDA), both of which are considered
blended component units, and are reported as special revenue funds within the City’s
Comprehensive Annual Financial Report.
E. Pension Plans
All full time and certain part-time employees of the City are covered by defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota
(PERA). The association administers the Public Employees Retirement Fund and the Public
Employees Police & Fire Fund which are cost sharing, multiple employer retirement plans.
The Volunteer Firefighter’s Relief Association has its own plan, and submits an audited
report to the City.
F. Joint Ventures
The City discloses its participation within the Comprehensive Annual Financial Report for the
following joint ventures:
1. LOGIS – A technology consortium.
2. LOGIS – An employee benefits consortium.
G. Magnitude of Finance Operations
The finance department is headed by Nathan Reinhardt, Finance Director. Nathan started with
the City in November of 2013. Prior to working for the City, Nathan was the Finance Director
for the City of Waseca, and the Assistant Finance Director for Carver County.
The Assistant Finance Director, Adam Flaherty, started with the City in January 2014. Prior
to working for the City, Adam worked as the Accountant for the City of Mound.
The finance department consists of five employees, which are outlined as follows:
Function Number of Employees
Finance Director 1
Assistant Finance Director 1
Accountant 1
Finance Technician (A/R & A/P) 1
Utility Billing Technician 1
H. Technology
The City is a member of LOGIS, which is a technology consortium of local government
entities, who share hardware, software and support services. Being a member of this
consortium gives the City access to JD Edwards ERP system, which the City uses for:
budgeting, general ledger, accounts payable, accounts receivable, fixed assets, and payroll.
The utility billing software provided through the consortium is CIS Infinity.
IV. TIME REQUIREMENTS
A. Proposal Calendar
Request for proposal issued June 4, 2014
Due date for proposals (4:00 p.m. at City Hall) August 4, 2014
City will review proposals by August 15, 2014
Interviews conducted by August 29, 2014
Selected firm notified September 10, 2014
B. Detailed Schedule for 2014 Audit
1. Detailed Audit Plan - This should be provided by the audit firm by January 1, 2015,
and will include all schedules, forms and documents needed to complete the audit,
and the party responsible for completing each respective task.
2. Preliminary Fieldwork – Completed by the last day of February 2015.
3. Audit Fieldwork – Completed by the second week of April 2015.
4. Formal Exit Interview – This meeting will be held with the City Manager, the
Finance Director, the Assistant Finance Director and any members of the audit staff,
including the in-charge partner. This meeting should be a formal review of the audit,
and presentation of draft versions of: 1) Opinion Letters; 2) Special Purpose Reports;
and 3) Management Letter.
5. Final Reports – All reports are due one week prior to the City Council work session,
which will be the first meeting of June 2015.
The auditor shall make at least one senior staff member available for an evening
meeting to review reports and findings at a City Council work session. At Council’s
discretion, you may also be asked to attend the City Council meeting at which the
reports would be accepted.
V. ASSISTANCE PROVIDED TO THE AUDITOR & REPORT PREPARATION
A. Finance Department and Assistance
The finance department staff and responsible management personnel will be available during
the audit to assist the firm by providing information, documentation and explanations. In an
effort to contain audit costs, the City will prepare as many audit worksheets and schedules as
is practical to reduce clerical work to be performed by the independent audit firm.
B. Work Area
The City will provide the audit staff with a conference room with table and chairs. The
auditor will also be provided reasonable access to the internet, telephones and office
equipment (copier, scanner, fax, etc). The City will work with the IT department to grant
restricted access to our local network for the audit staff.
C. CAFR Preparation
Report preparation, editing, printing, binding, etc., will be the responsibility of the City.
Electronic copies will be made available to the audit firm.
D. Other Report Preparation
Report preparation, editing, printing, binding, etc., will be the responsibility of the auditor.
The audit firm shall consult the Finance Director, who will provide a final number of fully
processed reports which will be provided to the City. Electronic copies of these reports are
also to be provided to the City.
VI. PROPOSAL REQUIREMENTS
A. Required Components
Submissions must be received by 4:00 p.m. by August 4, 2014 in order to be considered by
the City. Responses to this request for proposals should include the following information in
the order prescribed.
1. Title Page - This should include the subject of the proposal, the firm’s name, the
primary contact person, and contact information.
2. Table of Contents
3. Transmittal Letter – A signed letter of transmittal briefly stating the proposers
understanding of the work to be done, the commitment to perform the work within
the time outlined time period, a statement why the firm believes itself to be the best
qualified to perform the engagement and a statement that the proposal is a firm and
irrevocable offer for a period of 90 days.
4. Technical Proposal – This should follow the order and contents outlined in section
(VI.B) within this document.
5. Dollar Cost Proposal – This should follow the order and contents outlined in section
(VI.C) within this document.
6. Proposer Warranties – An executed copy of the Proposer Warranties, which is
attached to this document as: Attachment A.
B. Technical Proposal
The purpose of the proposal is to demonstrate the qualifications, competence and capacity of
the firms seeking to undertake an independent audit of the City in conformity with the
requirements of this request for proposals. As such, the substance of proposals will carry
more weight than their form or manner of presentation. The technical proposal should
demonstrate the qualifications of the firm and of the particular staff to be assigned to this
engagement. It should also specify an audit approach that will meet the request for proposals
requirements.
The proposal should address all the points outlined in the request for proposals. The proposal
should be prepared simply and economically, providing a straightforward, concise description
of the proposer's capabilities to satisfy the requirements of the request for proposals. While
additional data may be presented, the following subjects must be included. They represent the
criteria against which the proposal will be evaluated.
1. Independence
The firm should provide an affirmative statement that it is independent of the City as
defined by generally accepted auditing standards of the U.S. General Accounting
Office's Government Auditing Standards.
The firms should also list and describe the firm’s professional relationship involving
the City, its component units, or any of its agencies for the past five (5) years,
together with a statement explaining why such relationships do not constitute a
conflict of interest relative to performing the proposed audit.
In addition, the firm shall give the City written notice of any professional
relationships entered into during the period of this agreement.
2. License to Practice in Minnesota
An affirmative statement should be included that the firm and all assigned key
professional staff are properly registered and licensed to practice in Minnesota.
3. Firm Qualifications and Experience
The proposer should state the size of the firm, the size of the firm's governmental
audit staff, the location of the office from which the work on this engagement is to be
performed and the number and nature of the professional staff to be employed in this
engagement on a full-time basis and the number and nature of the staff to be
employed on a part-time basis.
The firm is also required to submit a copy of its most recent external quality control
review, with a statement whether that quality control review included a review of
specific government engagements.
The firm shall also provide information on the results of any federal or state desk
reviews or field reviews of its audits during the past three (3) years. In addition, the
firm shall provide information on the circumstances and status of any disciplinary
action taken or pending against the firm during the past three (3) years with state
regulatory bodies or professional organizations.
4. Partner, Supervisory and Staff Qualifications and Experience
Identify the principal supervisory and management staff, including engagement
partners, managers, other supervisors and specialists, who would be assigned to the
engagement. Indicate whether each such person is registered or licensed to practice
as a certified public accountant in Minnesota. Provide information on the
government auditing experience of each person.
Provide as much information as possible regarding the number, qualifications,
experience and training, including relevant continuing professional education, of the
specific staff to be assigned to this engagement. Indicate how the quality of staff over
the term of the agreement will be assured.
Engagement partners, managers, and other assigned staff may be changed if those
personnel leave the firm, are promoted, or assigned to another office; provided that
the replacements have substantially the same or better qualifications or experience.
The City retains the right to approve or reject replacements.
5. Similar Engagements with Other Governmental Entities
For the firm's office that will be assigned responsibility for the audit, list the most
significant engagements performed in the last five (5) years that are similar to the
engagement described in this request for proposal and who are awarded the GFOA
Certificate for Excellence in Financial Reporting. These engagements should be
ranked on the basis of total staff hours. Indicate the scope of work, date, engagement
partners, total hours, and the name and telephone number of the principal client
contact.
6. Specific Audit Approach
The proposal should set forth a work plan, including an explanation of the audit
methodology to be followed, to perform the services required in Section II of this
request for proposal. In developing the work plan, reference should be made to such
sources of information as the City's budget and related materials, organizational
charts, manuals and programs, and financial and other management information
systems.
Proposers will be required to provide the following information on their audit
approach:
Proposed segmentation of the engagement.
Level of staff and number of hours to be assigned to each proposed
segment.
Sample size and the extent to which statistical sampling will be used.
Extent of use of software.
Type and extent of analytical procedures.
Approach used to gain an understanding and document the City’s
internal controls structure.
Approach to be taken in determing applicable laws and regulations
which will be subject to the audit.
Approach to be taken in drawing audit samples for purposes of tests
of compliance.
7. Identification of Anticipated Potential Audit Problems
The proposal should identify and describe any anticipated potential audit problems,
the firm's approach to resolving these problems and any special assistance that will
be requested from the City.
8. Report Format
The proposal should include sample formats for required reports, including the
Management Letter.
C. Dollar Cost Proposal
1. Total All Inclusive Maximum Price
The dollar cost bid should contain all pricing information relative to performing the
audit engagement as described in this request for proposal. The total all-inclusive
maximum price to be bid is to contain all direct and indirect costs including all out-
of-pocket expenses.
The City will not be responsible for expenses incurred in preparing and submitting
the proposal. Such costs should not be included in the proposal.
The first page of the sealed dollar cost bid should include the following information:
Name of Firm
Certification that the person signing the proposal is entitled to
represent the firm, empowered to submit a proposal, and authorized
to sign a contract with the City.
2. Rates by Partner, Manager, Supervisory and Other Staff Levels, and Hours
The dollar-cost bid should include a schedule of professional fees and expenses,
presented in the format provided in Attachment B, that supports the total all-
inclusive maximum price.
3. Out of Pocket Expenses
All estimated out-of-pocket expenses to be reimbursed should be presented in the
format provided in Attachment B. All expense reimbursements will be charged
against the total all-inclusive maximum price submitted by the firm.
4. Single Audit
The pricing for the Single Audit (A-133), should be separated as a separate line item
in Attachment B.
5. Rates for Additional Professional Services
If it should become necessary for the City to request the auditor to render any
additional services to either supplement the services requested in this RFP or to
perform additional work as a result of the specific recommendations included in any
report issued on this engagement, then such additional work shall be performed only
if set forth in an addendum to the contract between the City and the firm. Any such
additional work agreed to between the City and the firm shall be performed at the
same rates set forth in the schedule of fees and expenses included in the dollar cost
proposal.
6. Manner of Payment
Progress payments will be made on the basis of hours of work completed during the
course of the engagement and out-of-pocket expenses incurred in accordance with
the firm's dollar cost proposal. Interim billing shall cover a period of not less than a
calendar month.
VII. EVALUATION PROCEDURES
A. Audit Proposal Evaluation & Criteria
Proposals submitted will be evaluated by the Finance Director, Assistant Finance Director
and the Financial Commission.
Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria
will have their proposals evaluated and scored for both technical qualifications and price.
The following represent the principal selection criteria which will be considered during the
evaluation process.
1. Mandatory Elements
a. The audit firm is independent and licensed to practice in Minnesota.
b. The firm has no conflict of interest with regard to any other work performed
by the firm for the City.
c. The firm adheres to the instructions in this request for proposal on preparing
and submitting the proposal.
d. The firm submits a copy of its last external quality control review report and
the firm has a record of quality audit work.
2. Technical Qualifications
a. Expertise and Experience
1. The firm's past experience and performance on comparable
government engagements.
2. The quality of the firm's professional personnel to be assigned to the
engagement and the quality of the firm's management support
personnel to be available for technical consultation.
3. The firm’s expertise with the GFOA Certificate of Achievement in
Financial Reporting program.
b. Audit Approach
1. Adequacy of a proposed staffing plan for various segments of the
engagement.
2. Adequacy of sampling techniques.
3. Adequacy of analytical procedures.
3. Price (please complete Attachment B).
B. Oral Presentations
During the evaluation process the City may, at its discretion, request any one or all firms to
make oral presentations. Such presentations will provide firms with an opportunity to answer
any questions the City may have on a firm's proposal.
Interviews are tentatively planned to be held at the meeting of the City’s Financial
Commission on the evening of August 21, 2014.
C. Final Selection
The Financial Commission will recommend to the City Council the appointment of an
independent CPA firm judged to be the most responsive and responsible proposer, for the
auditing services requested. The final decision with respect to the appointment will be made
by the City Council.
D. Right to Reject Proposals
Submission of a proposal indicates acceptance by the firm of the conditions contained in this
request for proposal unless clearly and specifically noted in the proposal submitted and
confirmed in the engagement letter between the City and the firm selected. The City reserves
the right without prejudice to reject any or all proposals.
VIII. VOLUNTEER FIREFIGHTER’S RELIEF ASSOCIATION
A. General Information
Unless otherwise noted within this section, proposals should follow the elements outlined in
other portions of this document.
There is no expressed or implied obligation for the Association to reimburse responding firms
for any expenses incurred in the preparing of proposals in response to this request.
The Association reserves the option to contract separately for the audit if they choose a firm
different than that awarded the City audit.
The Association reserves the right to reject any or all proposals submitted.
B. Contact Person
The auditor's principal contact regarding this request for proposal will be:
Nathan Reinhardt, Finance Director
(763) 569-3345
nreinhardt@ci.brooklyn-center.mn.us
Contact with personnel (including elected officials) of the Association, other than Nathan
Reinhardt, Finance Director, in regards to this request for proposals may be grounds for
elimination from the selection process.
C. Scope of Work to be Performed
In addition to completing the audit of the Association’s financial statements, the auditor shall:
Prepare, process, print and bind the audited financial statement report.
Prepare and submit all required reports to the Minnesota Office of the State
Auditor – Pension Oversight Division.
Prepare and submit any other require reports that may arise during the course of
the audit.
Prepare and submit the Form 990 to the Internal Revenue Service.
D. Association Assistance During the Audit
The auditor will have to coordinate meetings with the Association for information,
documentation and explanations. Historically the Association has not prepared their own
audit worksheets.
E. Proposal Calendar
Request for proposal issued June 4, 2014
Due date for proposals (4:00 p.m. at City Hall) August 4, 2014
Association will review proposals by August 15, 2014
Interviews conducted by October 7, 2014
Selected firm notified October 8, 2014
F. Detailed Schedule for 2014 Audit
1. Detailed Audit Plan - This should be provided by the audit firm by January 1, 2015.
2. Audit Fieldwork – Completed by the first week of May 2015.
3. Final Reports – All reports are due to the Association by June 19, 2015.
G. Dollar Cost Proposal
Pricing for the Fire Relief Association should be included separately in the fee proposal
schedule (Attachment B), and should be an all-inclusive cost for the services.
H. Final Selection
The final decision for the selection of an audit firm will be made by the Association’s
Board.
ATTACHMENT A
CITY OF BROOKLYN CENTER
PROPOSER WARRANTIES
A. Proposer warrants that it is willing and able to comply with State of Minnesota laws with
respect to foreign (non-state) corporations.
B. Proposer warrants that it is willing and able to obtain an errors and omissions insurance
policy providing a prudent amount of coverage for the willful or negligent acts, or omissions
of any officers, employees or agents thereof.
C. Proposer warrants that it will not delegate or subcontract its responsibilities under an
agreement without the prior written permission of the City.
D. Proposer warrants that all information provided by it in connection with this proposal is true
and accurate.
E. Proposer certifies that it can and will provide and make available at a minimum, all services
set forth in Section II, Nature of Services Requested.
Signature of Official: __________________________________________________
Name (typed):________________________________________________________
Title: _______________________________________________________________
Firm: _______________________________________________________________
Date: _______________________________________________________________
ATTACHMENT B
CITY OF BROOKLYN CENTER
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2014 FINANCIAL STATEMENTS
NOTE: The rate quoted should not be presented as a general percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price.
Hours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Total
Partners
$ $
$
Managers
$ $
$
Supervisory Staff
$ $
$
Other
(Specify)
$ $
$
Subtotal
$ $
$__________
Out-of-Pocket
Expenses
$
Meals and
Lodging
$
Transportation
$
Single Audit
$
Other
(Specify)
$
TOTAL –
CITY AUDIT
$
Fire Relief
Association
$
TOTAL –
ALL INCLUSIVE
$__________
ATTACHMENT B
CITY OF BROOKLYN CENTER
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2015 FINANCIAL STATEMENTS
NOTE: The rate quoted should not be presented as a general percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price.
Hours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Total
Partners
$ $
$
Managers
$ $
$
Supervisory Staff
$ $
$
Other
(Specify)
$ $
$
Subtotal
$ $
$__________
Out-of-Pocket
Expenses
$
Meals and
Lodging
$
Transportation
$
Single Audit
$
Other
(Specify)
$
TOTAL –
CITY AUDIT
$
Fire Relief
Association
$
TOTAL –
ALL INCLUSIVE
$__________
ATTACHMENT B
CITY OF BROOKLYN CENTER
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2016 FINANCIAL STATEMENTS
NOTE: The rate quoted should not be presented as a general percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price.
Hours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Total
Partners
$ $
$
Managers
$ $
$
Supervisory Staff
$ $
$
Other
(Specify)
$ $
$
Subtotal
$ $
$__________
Out-of-Pocket
Expenses
$
Meals and
Lodging
$
Transportation
$
Single Audit
$
Other
(Specify)
$
TOTAL –
CITY AUDIT
$
Fire Relief
Association
$
TOTAL –
ALL INCLUSIVE
$__________
Financial Commission Agenda Items No. 6
City Council and Financial Commission
Budget Schedule for 2015-2016
June 3, 2014 Tuesday Work Session
CAFR Presentation and Auditors Report
July 7, 2014 Monday Work Session
Capital Improvement Plan and Capital Project Funds
July 21, 2014 Monday Work Session
General Fund – Revenue/Department Requests
*August 6, 2014 Wednesday Work Session
General Fund – Department Requests
August 18, 2014 Monday Work Session
General Fund – Department Requests
September 8, 2014 Monday Regular City Council Meeting
Proposed adoption of preliminary levy and preliminary
governmental funds budgets
October 6, 2014 Monday Work Session
Special Revenue Funds, Debt Service Funds
Internal Service Funds
October 20, 2014 Monday Work Session
Utility Funds
November 3, 2014 Monday Work Session
Enterprise Funds
November 24, 2014 Monday Regular City Council Meeting
Proposed adoption of the 2015 pay plan,
2015 cafeteria contribution and 2015 utility rates
December 1, 2014 Monday Special City Council Meeting
Public hearing on the recommended budget and levy
followed by proposed adoption of final tax levies and
budgets
December 8, 2014 Monday Regular City Council Meeting
Continuation, if needed, of recommended budget and
levy discussion/approval
*Revised from original schedule draft