To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, Finance Director
Pete Managers, Assistant Finance Director
Title
Resolution Authorizing the Engagement of Eide Bailly, LLP, for the Fiscal Year 2025 Town of Castle Rock Independent Annual Audit
Body
________________________________________________________________________________
Executive Summary
On September 4th, 2025, the Finance Department issued a Request for Proposal seeking auditing services for the year ended December 31, 2025. A selection panel comprised of the Finance Director, Assistant Finance Director, Finance Project Analyst and Finance Administrative Assistant conducted interviews on October 20th, 2025
Staff notified the Audit Committee that the selection panel recommends Eide Bailly to conduct the Town’s auditing services for the fiscal year December 31, 2025. The purpose of this Resolution (Attachment A) is for Town Council to approve the engagement of Eide Bailly as the Town’s auditors.
Discussion
Since 2018, Forvis, LLP, has served as the Independent Auditor and successfully completed the annual financial audit and consent letters for the Town of Castle Rock. The Government Finance Officers Association (GFOA) guidance and industry standards recommend that municipalities bid out audit services every five years. As such and as the Town continues to grow, the Finance staff places great importance on evaluating other independent auditors who could not only perform a financial audit but also provide tools and technical guidance for the implementation of new pronouncements and other complex transactions.
Six certified public accounting firms submitted proposals to perform the annual financial audit for the Town. For each proposal submitted and for guidance during selection of firms to interview, the panel used the following criteria:
Content of the proposal
1. Qualifications in the area of experience, education and certifications for the firm and the staff to be assigned to this project
2. Fee range of proposal
3. Continuity in the personnel assigned to this project and a demonstration in their estimate of time on this project that they plan to have enough experienced and higher-level staff supervising the audit on a constant basis
4. Location of firm
5. References from clients of similar projects
After reviewing the proposals based on the above criteria, the panel selected the following firms to make a presentation on their services and why they would do the best job for the Town:
1. Eide Bailly, LLP
2. Plante Moran
After completion of the firm’s presentations, the panel discussed the merits of each firm and unanimously agreed to recommend Eide Bailly, LLP to the Audit Committee as the Town’s auditors for fiscal year December 31, 2025.
Along with cost, the panel considered many other important factors when selecting the auditing firm. Eide Bailly, LLP is an established and highly regarded firm with many years of government auditing experience. Eide Bailly’s experience with larger governments coupled with their familiarity with the Town of Castle Rock makes them
an excellent fit for the Town as it continues to grow and experience new and complicated finance structures. Eide Bailly, LLP will bring a fresh perspective to the auditing process and represents the most responsive, reasonable and beneficial Independent Auditor for the Town of Castle Rock.
BUDGET IMPACT
The fees for the contract with Eide Bailly include $68,600 for the financial statement audit and, if required, an additional $9,000 for the Single Audit, for a subtotal of $77,600 in annual and Single Audit fees. There is also a technology fee of $3,900 and any additional consulting services, if requested, would be billed separately at hourly rates ranging from $275 to $425.
Staff Recommendation
Staff recommends that Town Council approve the Resolution as written.
Proposed Motion
“I move to approve a Resolution authorizing the engagement of Eide Bailly, LLP for financial auditing services.”
ATTACHMENTS
Attachment A - Resolution
Attachment B - Statement of Work
Exhibit 1 - Master Service Agreement