Document Page 1 of 8 UNITED STATES BANKRUPTCY COURT DISTRICT OF NORTH DAKOTA In Re: Vanity Shop of Grand Forks, Inc., Case No.: 17-30112 Chapter 11 Debtor. NOTICE OF FIRST INTERIM APPLICATION FOR ALLOWANCE OF FEES TO EIDE BAILLY, LLP, AS AUDITOR OF ERISA PLAN TO: ALL INTERESTED PARTIES: NOTICE IS HEREBY GIVEN that the Eide Bailly, LLP, as auditor of Debtor s ERISA Plan, has filed its first application for allowance of compensation, a copy of which application is attached hereto and served upon you. Pursuant to this Court s Order [Docket No. 360] granting Debtor s Motion to Limit Notice of its First Interim Application for Allowance of Fees to Eide Bailly, LLP, as Auditor of ERISA Plan [Docket No. 359], this Notice of First Interim Application for Allowance of Fees to Eide Bailly, LLP, as Auditor of ERISA Plan, will be provided to the United States Trustee, the Official Committee of Unsecured Creditors; and any other party or its counsel who has filed a notice of appearance or is registered to receive notice via ECF in the abovecaptioned case. Additionally, Debtor will make a complete copy of the Application available by e-mail or other suitable delivery method upon request of (and without charge) any party in interest requesting a copy directed to the undersigned.
Document Page 2 of 8 NOTICE IS FURTHER GIVEN that written objections to said application, if any, shall be filed with the Clerk of the United States Bankruptcy Court, whose address is Quentin N. Burdick Courthouse, 655 First Avenue North, Suite 210, Fargo, North Dakota 58102-4932, with a copy mailed to Debtor s counsel, whose name and address is listed below, within twenty (21) days from the date of the mailing of this Notice. Any objections not filed and served may be deemed waived. Dated this 10 th day of August, 2017. VOGEL LAW FIRM BY: /s/ Caren W. Stanley Jon R. Brakke (#03554) jbrakke@vogellaw.com Caren W. Stanley (#06100) cstanley@vogellaw.com 218 NP Avenue PO Box 1389 Fargo, ND 58107-1389 Telephone: (701) 237-6983 Fax: (701) 476-7676 COUNSEL TO DEBTOR IN POSSESSION 2981395.1 2
Document Page 3 of 8 UNITED STATES BANKRUPTCY COURT DISTRICT OF NORTH DAKOTA In Re: Vanity Shop of Grand Forks, Inc., Case No.: 17-30112 Chapter 11 Debtor. FIRST INTERIM APPLICATION FOR ALLOWANCE OF FEES TO EIDE BAILLY, LLP AS AUDITOR OF ERISA PLAN Eide Bailly, LLP ( Eide Bailly ), as auditor for the ERISA Plan for the Debtor, hereby submits its First Interim Application for Allowance of Fees (the Application ) for entry of an Order pursuant to 11 USC 330 for allowance of fees. In support hereof, Eide Bailly respectfully represents as follows: 1. This Court has jurisdiction over this motion pursuant to 28 USC 157 and 1334 and Rule 5005 of the Federal Rules of Bankruptcy Procedure. The statutory predicate for the relief sought herein is section 330 of the Bankruptcy Code. Eide Bailly requests allowance and payment of compensation for professional services rendered. 2. This case was commenced as a Chapter 11 proceeding by the filing of a petition on March 1, 2017 (the Petition Date ). The Debtor has continued in the management of its business since the Petition Date. 3. Pursuant to this Court s Order of May 10, 2017, employment of Eide Bailly as auditor for the ERISA Plan for the Debtor was authorized, effective April 21, 2017 (the Eide Bailly Retention Order ) [Doc. 268]. 4. This is an interim application for compensation. Eide Bailly has made no previous application for allowance of fees in this case. A payment of $17,250.00 was paid
Document Page 4 of 8 pre-petition to Eide Bailly pursuant to an engagement agreement of date January 17, 2017 [Doc. 245, Exhibit A] to audit the 401(k) employee benefit plan governed by ERISA. 5. The specific services provided by Eide Bailly rendered for work through July 14, 2017, in connection with the audit of Debtor s 401(k) Savings Plan for the year ending December 31, 2016, are detailed on the Invoice #EI00534330 (the Invoice ) and annexed hereto as Exhibit A. Additionally, the identity of the CPA, the hourly rate of compensation of said CPA, and the time spent in providing the services are detailed in the table below: Accountant Staff Level Description of Work Hours Hourly Amount Performed Rate Associate Planned engagement, completed testing in all audit areas (contributions, participant data, benefit payments, and investments), Katie Frank, CPA conducted required fraud 55.50 $125.00 $6,937.50 interviews, journal entry testing, completed walkthroughs, and wrote financial statements and required communication letters Lauren Ott Paraprofessional Prepared engagement letter and planning letter.50 125.00 62.50 Michael Bigwood Associate Compliance testing 1.20 125.00 150.00 2
Document Page 5 of 8 Partner Completed required Partner review of the staffs audit workpapers, answered questions of the staff related to Corey Enger, CPA the audit, various consultations/conversations 9.65 400.00 3,860.00 with client (CFO and Board) and attorneys, reviewed, approved and signed audit report Katie Potter Admin Processed audit report and required communication letters.50 100.00 50.00 Manager Cold review of financial Zach Jastram, CPA statements before issuance - required by independence rules.25 175.00 43.75 as a member not on audit team Katie Frank, CPA Associate Planning procedures.25 144.00 36.00 Justin Montplaisir Intern Set-up audit binder.75 115.00 86.25 Costs postage 4.90 Totals: 68.60 hours $11,230.90 Courtesy Discount ($2,730.90) Grand Total: $8,500.00 6. The total sum due to Eide Bailly for professional services rendered through July 14, 2017, on behalf of Debtor for the audit of the Debtor s 401(k) Savings Plan is 3
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Document Page 7 of 8 EXHIBIT A (Invoice# EI00534330) 2981074.1 5
Document Page 8 of 8 INVOICE EBP Vanity of Grand Forks 1001 25th St NW Fargo ND 58108 Invoice #: Client #: Current Balance Due: Total Balance Due: EI00534330 2450 $8,500.00 ($8,750.00) Please return top portion with payment Professional services rendered in connection with the audit of Vanity of Grand Forks 401(k) Savings Plan for the year ending December 31, 2016 - work completed July 14, 2017 8,500.00 Invoice Total Escrow payment received 5.15.17 8,500.00 $(17,250.00) $(8,750.00) Total Balance Due for 12.31.17 audit Date: 05/15/17 Client #: 2450 Invoice #: EI00534330 Page: 1 Please remit to: Eide Bailly LLP 4310 17th Ave. S. P.O. Box 2545 Fargo, ND 58108-2545 Phone 701.239.8500 Fax 701.239.8600 For your convenience ACH payment instructions: ACH Routing # 091310521 Checking Acct # 650200447 Acct Name: Eide Bailly LLP Fargo Office Monthly 1.0% Late Fee Accrued on Balances Over 30 Days Past Due