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Type:
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Council Consent
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Status:
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Passed
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On agenda:
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11/18/2025
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Final action:
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11/18/2025
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Title:
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Consideration of award of contract to Clifton Larson Allen (CLA) for external audit services.
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Focus Area: Economy
Staff Contact: Jamie Robichaud
Subject: Consideration of award of contract to Clifton Larson Allen (CLA) for external audit services
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title:
title
Consideration of award of contract to Clifton Larson Allen (CLA) for external audit services.
Body
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Summary:
Staff recently conducted a Request for Proposals (RFP) process for external audit services and received 5 responses. A staff panel consisting of key finance team members and the internal auditor interviewed the top 3 scoring firms. Staff is recommending moving forward with awarding the contract for audit services to the top-scoring audit firm of Clifton Larson Allen (CLA). The contract is drafted as a three year contract, with the option to renew for up to two additional one year periods.
CLA is one of the largest state and local accounting firms in the U.S., serving more than 3,700 governments nationwide. Included below are two tables. The first compares the costs we received from the top 3 scoring firms. The second shows the City’s actual audit costs for 2022-2024 financial audits. CLA’s bid is almost $50K lower than what we received from our existing audit firm.
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CLA |
AGH |
RSM |
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2025 Audit Cost |
$ 96,075 |
$ 137,000 |
$ 127,950 |
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2026 Audit Cost |
$ 99,900 |
$ 144,000 |
$ 134,400 |
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2027 Audit Cost |
$ 103,900 |
$ 151,000 |
$ 141,120 |
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Single Audit Cost per Major Program - 2025 |
$ 6,800 |
$ 7,500 |
$ 6,500 |
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Olathe Housing Authority Audit - 2025 |
$ 17,500 |
$ 20,000 |
$ 16,000 |
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Fireman's Relief Fund Audit and 990 Prep |
$ 12,300 |
$ 13,000 |
$ 15,500 |
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Park & Rec Foundation 990 Prep |
$ 1,700 |
$ 3,300 |
$ 3,500 |
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Mahaffie Foundation 990 Prep |
$ 1,700 |
$ 3,300 |
$ 3,500 |
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Total Expected Cost for 2025 with 1 Maj. Prg. |
$ 136,075 |
$ 184,100 |
$ 172,950 |
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2022 |
2023 |
2024 |
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Audit Cost |
$ 95,000 |
$ 101,500 |
$ 106,500 |
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Single Audit Cost per Major Program |
$ 6,000 |
$ 6,500 |
$ 6,800 |
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Olathe Housing Authority Audit |
$ 17,500 |
$ 17,000 |
$ 17,850 |
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Fireman's Relief Fund Audit and 990 Prep |
$ 11,800 |
$ 12,250 |
$ 12,700 |
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Park & Rec Foundation 990 Prep |
$ 3,000 |
$ 3,100 |
$ 3,200 |
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Mahaffie Foundation 990 Prep |
$ 3,000 |
$ 3,100 |
$ 3,200 |
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Total Cost |
$ 136,300 |
$ 143,450 |
$ 150,250 |
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Financial Impact:
The total cost of the audit is budgeted within the Economy Focus Area operating budget, and the proposed contract costs may in a small budgetary savings in 2026 depending on the number of major programs subject to single audit, as the total budget for the audit and financial statement prep was programmed at $150,000 in 2026.
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Action Needed:
Consider approval of contract with Clifton Larson Allen (CLA) for external audit services.
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Attachment(s):
A. Contract
B. CLA Proposal
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