Donald J. Parnell

Finance Director

Town of Newmarket

Town Hall

186 Main Street

Newmarket, NH 03857

12/19/06

Town of Newmarket

Town Council

Dear Council Members:

As a result of a petition submitted to the Town Council which requested a “Prescribed Procedures Review Audit” I would like to share with you the results of the RFP that was sent to five regionally prominent accounting/auditing firms in addition to Municipal Resources Inc.

The Firms that received the RFP’s are as follows:

• Mason & Rich

• Plodzik & Sanderson

• Melanson & Heath

• Grzelak & Co.

• Vachon and Clukay

• Municipal Resources Inc.

The deadline for return of the RFP was the close of business on 12/18/06.

A total of two RFP’s were returned to Newmarket and the results are as follows:

• Mason & Rich – Submitted an estimate of between $35,000 to $45,000 to complete this audit. Their bid was based on actual hours spent at a rate of $75 to $195 hours per hour depending on the experience level of the individuals assigned to this review. If the review were to exceed the $45,000 they would come back to the town before proceeding. I have attached a copy of their entire proposal. There are some questions/clarifications that needed to be addressed before proceeding. These questions are noted on their RFP response.

• Municipal Resources Inc.(MRI) - This was approached differently. Municipal Resources Inc is currently under contract to provide a Financial Management Review for members of the Local Government Center (LGC) at no cost to their members (Earlier you received an example of this type of report for the City of Franklin). The RFP that was submitted by MRI incorporates that no cost study as part of their proposal. Thus, the actual (worst case) cost of the RFP ($95/hour not to exceed 80 hours) would be $7,600. Thus, MRI would be completing the entire review and part of the cost would be paid by the Local Government Center and Newmarket would be only paying for the portion that was not covered by the Local Government Center contract.

For your convenience I have attached a copy of the RFP that was sent out to the names listed above and a copy of each of the proposals that were received.

Please review the attached documents and let me know if you have any questions or need any additional information.

Regards,

Donald J. Parnell

Finance Director.