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AGENDA ITEM <br />Date: October 27, 2025 <br />Title: Appoint Professional Auditing Firm <br />Presenter: Maggie Jin, Finance Director <br />Section: Consent Agenda <br />Item: 4 <br />Purpose: <br />The purpose of this council item is to gain council approval to appoint the professional auditing <br />firm for the fiscal years ending December 2025, 2026 and 2027 with future years extension <br />available. <br />2. Background: <br />Staff continuously reviews professional services contracted by the City, with the practice of a 5- <br />year review cycle. The last Request for Proposals (RFP) for Auditing Service was complete in <br />2019. Since then, the City has been with Abdo for its auditing service. Even with satisfactory <br />service, it is best practice to still go out for RFPs to ensure the City continues receiving exceptional <br />service for a competitive price. <br />The City is required to undergo an annual audit of its financial statements. The purpose of the <br />audit is to obtain reasonable assurance that the financial statements are free from material <br />misstatements. The audit also covers internal controls and Minnesota legal compliance. Upon <br />completion of the audit, a management report will be prepared for the City Council and <br />administration to be presented at a council meeting. <br />At the August 11, 2025 City Council meeting, City Council approved going out for RFP for <br />professional auditing service. The RFP opened on August 12 and closed on October 1. There were <br />5 proposals received. The lowest proposal came from Mauldin & Jenkins Certified Public <br />Accountants (MJ CPA), however, lacked examples of other Minnesota cities serviced. Staff is <br />recommending Abdo, which came in with the second lowest cost. A summary of cost comparison <br />is provided in attachment Exhibit A. <br />Abdo has a number of other cities within the area that they perform audit services for. Other cities <br />includes, but is not limited to, Mound, Long Lake, Excelsior, Chanhassen, and Albertville. <br />Additionally, Abdo has experience with auditing the City of Orono for the last 6 years and has <br />shown a continued interest and commitment to provide exceptional auditing services to the City. <br />3. Staff Recommendation: <br />Staff recommends a motion to appoint the audit firm of Abdo to perform the required audits for the <br />City of Orono for the fiscal years ending December 2025, 2026 and 2027 with future years <br />extension available. <br />26 <br />