Kent County approves Rehmann auditing contract


After tabling its vote for a short time, the Kent County Finance Committee approved a renewal of a five-year agreement with Rehmann for financial auditing services Tuesday.

“Given the satisfactory service of Rehmann . . . during the initial five-year contract period, it is recommended to accept Rehmann’s cost proposal. Each year of the proposal will be contingent upon the county of Kent, at its sole discretion, issuing a purchase order for each year under audit,” said Daryl Delabbio, county administrator and controller, prior to the vote.

Rehmann, which has its headquarters in Saginaw and nine offices across the state, won the county contract over BDO Seidman in 2008 with a bid of $710,000 for the five years, or $240,000 less than BDO’s bid.

Under the new agreement, Rehmann would receive $775,800 for the five years. The company would keep next year’s price at this year’s level and then increase its rate by 2 percent for each of the following four years. “The proposed fees are considered fair and reasonable,” said Delabbio.

The contract would run from 2013 through 2017. “Frankly, it’s hard to get auditors to do a three-year deal, let alone a five-year deal,” said Commissioner Jim Saalfeld.

Commissioner Roger Morgan asked for the vote to be delayed because he wanted to compare the new agreement to the contract commissioners approved five years ago. Morgan said he was pleased with the contract, which doesn’t need to be ratified by the full commission.

The current contract with Rehmann expires at the end of this year.

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