IRON MOUNTAIN — A Michigan accounting firm that’s expanding into the Upper Peninsula will perform auditing services for the city of Iron Mountain the next two years.

The city council on Monday awarded an audit bid to Saginaw-based Andrews Hooper Pavlik PLC, which acquired Makela, Toutant, Hill, Nardi & Katona P.C. of Marquette in December. The merger increased the number of AHP offices across the state to 10.

AHP’s bid was only slightly lower than one submitted by CliftonLarsonAllen LLP, a nationwide firm with an office in Iron Mountain that has done the city’s audits the past six years.

AHP’s bid for 2024 was $23,900, compared with $25,725 from CLA and $30,510 from Grand Rapids-based Gabridge & Co. For 2025, the numbers were $24,500 for AHP, $26,670 for CLA and $31,400 for Gabridge.

The savings over the next two years by choosing AHP over CLA will be $3,995.

If the amount of federal assistance the city receives requires a single audit, the additional cost under AHP would be $5,500 each year, an additional savings of $7,735 over CLA’s proposal.

A single audit is rarely a consideration for Iron Mountain, but it could happen with American Rescue Plan aid and water project grants in the mix, City Manager Jordan Stanchina said. The threshold is $750,000 in federal aid for each budget year.

While the city has had good experience with CLA, either firm would be capable of doing the job, Stanchina told the council.

Chief Finance Officer Heather Lieburn said she appreciates having CLA principal partner Scott Sternhagen available locally, but acknowledged a fresh look from AHP may be of value.

Council members Pam Maule and Ken Clawson said that a new perspective, as well as the cost savings, would make AHP a logical choice.

The council’s vote to accept AHP’s bid was unanimous. Mayor Dale Alessandrini and council member Mark Wickman were excused from Monday’s session.

CLA, in its latest audit presented in January, reported a $5.1 million improvement in the city’s net position as of June 30, 2023, compared to the previous year. The change was largely due to an adjustment in the estimated unfunded liability for retiree health benefits, which fell from $29.7 million to $25.4 million. An updated actuarial study contributed to the change.

Jim Anderson can be reached at 906-774-3500 ext. 226 or janderson@ironmountaindailynews.com.