The accounting firm finalists to handle certain city auditing services the next five years are down to two. But Springfield City Council members are at odds with the recommendation by city staff and a committee that reviewed the two requests for proposal.
At last night’s council meeting, city Finance Director Mary Mannix Decker told council members the four-person review committee chose Kansas City-based RSM US LLP over current provider BKD LLP. The city is required to rebid auditing services every five years.
Results of an RFP for auditing services for the police and fire pension plan, as well as the city’s financial statement audit, put RSM ahead of hometown firm BKD. RSM outscored BKD in a point system factoring the firms’ experience with similar audits, cost of services and staff qualifications.
When questioned by Councilman Ken McClure, Decker said the cost differential was about 3 percent, with RSM quoting about $5,000 less per year than BKD. RSM’s proposal came in at $130,650 for services beginning this next fiscal year through 2020.
“The price difference is not significant,” McClure said as he prepared an amendment to the bill. “I would move that we support our local business here by continuing the contract with them.”
McClure’s motion formally replaced RSM with BKD in the bill language “in order to keep the business of auditing services local for the benefit of the local economy and to maintain continuity with BKD LLP as the city’s auditing firm, reducing the time needed for the auditing staff to perform its work.” Councilman Craig Hosmer seconded the motion.
The move brought up questions of risk and legality. The city has not established a local preference ordinance for selecting contract work.
“Are we legally able to do this?” Councilwoman Kristi Fulnecky asked. “If we want to do local preference, it sounds like we’d have to rebid it. The lowest bidder would probably file a lawsuit against us.”
City legal staff affirmed council’s final authority, once taking into account the committee’s objective recommendation.
“If you just want to accept BKD, then so be it,” Decker said.
RSM and BKD were the only firms that responded to the city’s RFP.
Hosmer suggested the local preference in contract decisions should not be made on a case-by-case basis.
“I think we should have something set up so everybody knows it’s not just who you know on council that you can get a change made. It’s a process we set up that everybody’s playing by the same rules,” he said, before moving to refer the local preference consideration to the city’s plans and policies committee.
Hosmer then moved to table the bill until July 11, which passed 7-2. McClure withdrew his amendment to select BKD in support of Hosmer’s motion.
He further explained why he’s leaning toward BKD.
“That company is a crown jewel of the city’s business community and not only well known locally but an established, incredible firm nationally,” McClure said. “They’ve been an effective auditor for the city.”
