TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Finance Committee of the Salem City Council and the Urban Renewal Agency of the City of Salem
SUBJECT:
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Selection of the City and Urban Renewal Agency Auditor
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance
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SUMMARY:
summary
The Council Finance Committee reviewed and scored proposals submitted in response to the request for proposals for financial auditing services. The Committee recommends that City Council award the financial auditing services contract to REDW, LLC as the highest scoring proposal.
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ISSUE:
Shall City Council award the City and Urban Renewal Agency’s financial auditing services contract to REDW, LLC?
RECOMMENDATION:
recommendation
Award the City and Urban Renewal Agency’s financial auditing services contract to REDW, LLC.
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FACTS AND FINDINGS:
The audit of fiscal year 2024-25 completed the prior five-year auditing contract. Council Policy C-4 requires a competitive Request for Proposals (RFP) for the auditing contract every five years. At the close of the current RFP process, the City received responses from Eide Bailly, LLP; REDW, LLC; and SingerLewak, LLP. REDW is the City’s current auditor.
During their meeting on May 18, 2026 the Finance Committee discussed the responses to the RFP. Three members later independently submitted scores. Staff tallied the scores and REDW’s proposal received the highest total score.
Auditing of fiscal year 2025-26 will be the first year of the five-year contract. The proposed fee is $135,000, which is an increase of 7.8% over the prior year audit’s original proposed fee. However, it is less than the final total fees for the prior year. The cost includes auditing of the City, Urban Renewal Agency and Salem Convention Center for an estimated 750 staff hours. For each subsequent year of the contract, the cost is proposed to escalate at rates of 7.0%, 6.6%, 6.2% and 6.1% respectively.
BACKGROUND:
Selection of the City and Urban Renewal Agency auditor is guided by Council Policy C-4 and Oregon Public Contracting Rules. As a requirement of Council Policy C-4, the awarding of the contract must go before the City Council for approval.
Jeremy Morgan
Financial Reporting Manager
Attachments:
1. None.