Committee backs three-year extension with Baker Tilly for city audits, flags ERP-related one-time cost

The Middleton Finance and Personnel Committee on Sept. 2 recommended that City Council approve a three-year extension with Baker Tilly for audit services covering fiscal years 2025 through 2027. The committee record lists a three-year fiscal impact of $234,900 and an additional one-time charge of $7,500 for the first year connected to the city's enterprise resource planning (ERP) system implementation.

A committee member moved to recommend the extension and a committee member named in the transcript as 'Crowell' seconded. Bill (appearing on the meeting record) explained the $7,500 charge: "As part of that, the first year following implementation, they will be going through and reviewing and updating all of the internal control documents and procedures, doing additional testing, testing the processes that are mapped out in the new system, as well as, incorporating things like the updated chart of accounts, into their auditing system." He described the work as a re-evaluation of audit procedures and additional testing tied to the ERP rollout.

Committee members asked whether the city would typically put the work out to bid and whether the proposed prices were comparable. Bill said the city had solicited proposals in the past (noting the original selection of Baker Tilly about seven years earlier), that Baker Tilly proposed a 3% annual increase, and that staff judged the proposal reasonable given ERP timing and local comparisons. The committee recommended the extension by voice vote with ayes recorded. The transcript does not specify a funding source for the contract extension beyond the stated fiscal impact.