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Council reviews sole auditing proposal from CLA amid concern over higher fee
Summary
Council members reviewed a single proposal from auditing firm CLA, noting the firm's national experience and remote audit process but expressing concern about a significant fee increase compared with the prior year's cost; the item was set for approval at the next council meeting.
The Blackduck City Council reviewed a single proposal from the auditing firm CLA and discussed whether to accept its contract for the upcoming fiscal audit. Staff noted that "CLA is the only auditing company that put in" a proposal in response to the request for bids and emphasized CLA's national resources and experience working with municipal clients.
Council members raised questions about the cost. One council member contrasted the proposal with the city's most recent payment for audit services, saying the city paid Miller McDonald about $18,000 for the 2023 audit while the proposal under consideration represented a "considerable cost increase" and discussion referenced figure ranges in the $40,000–$50,000 area. Staff clarified that travel was not included in the base fee and that auditors could travel if needed.
Speakers also discussed practical matters tied to remote auditing: council members said modern audits rely heavily on document upload and remote communication and that auditors might not be on site except when necessary. Staff said a larger firm such as CLA could provide quicker responses and broader resources even if most communications occur over Zoom or email.
The council did not take a formal vote on the contract during the meeting but agreed to place the proposal on the next council meeting's agenda for a formal decision. A procedural motion to approve the evening agenda passed at the meeting.
