Explanation
BACKGROUND: This legislation authorizes the City Auditor to modify a service contract with Rea & Associates, Inc. and increase funding in an amount up to $16,500.00 for professional auditing services for the calendar year 2025 for the City of Columbus and the Office of the Franklin County Municipal Clerk. This modification is necessary due to an increase in the number of Single Audit major programs required to be audited. Due to the level of expenditures in some federal programs, the number of programs Rea & Associates must audit has increased from six (6) to eight (8) major programs.
All political subdivisions of Ohio are required to be audited by the Auditor of the State of Ohio or his designee (AOS). The United States Office of Management and Budget through the Single Audit Act of 1996, as amended, has made it possible for all federal grants to be audited via one comprehensive audit. The original contract was authorized by ordinance 1747-2025 and approved by City Council on July 14, 2025.
In accordance with C.C. 329.09(a):
1) Amount of additional funds: $16,500.00
Original Agreement $352,000.00 (PO522097)
Modification no. 1 $16,500.00
Total $368,500.00
2) Reason need for additional funds were not foreseen: The total federal program expenditures for 2025 were estimated at the time of the original procurement and contracting, in mid-2025. Final 2025 expenditure levels require audits of two additional programs.
3) Reason other procurement methods were not used: Per Ohio Revised Code the independent audit selection process is dictated by the Auditor of State and the resulting agreement covers five years. It is not permissible to contract separately for these additional services within the single audit.
4) How cost was determined: The proposal price included six major program audits and noted that additional program audits would require a contract modification and be billed at the established hourly rate. It is estimated that 150 additional hours will be needed to complete the required audits.
CONTRACT COMPLIANCE: Rea & Associates, Inc. contract compliance no. is CC-049856 and is valid through July 18, 2026.
FISCAL IMPACT: $16,500 is available within the Auditor’s Office operating budget.
EMERGENCY DESIGNATION: Emergency designation is requested to ensure uninterrupted audit services allowing Rea & Associates, Inc. to meet requirements for a timely audit, ensuring that the City not be delayed in issuing its Annual Comprehensive Financial Report (ACFR), and meeting all deadlines for prompt financial reporting, a key component in the City’s credit ratings and essential to providing timely and transparent financials to all stakeholders.
Title
To authorize the City Auditor to modify an existing agreement along with the Auditor of the State of Ohio, and Rea & Associates, Inc., for additional professional auditing services for calendar year 2025; to authorize the expenditure of up to $16,500.00 from the General Fund; and to declare an emergency. ($16,500.00)
Body
WHEREAS, all political subdivisions of Ohio are required to be audited by the Auditor of the State of Ohio or his designee; and
WHEREAS, ordinance 1747-2025 authorized the City Auditor’s Office to enter into agreement, along with the Auditor of State, with Rea & Associates for professional audit services for 2025; and
WHEREAS, this ordinance is being submitted in accordance with the relevant provisions of City Code chapter 329 pertaining to contract modifications; and
WHEREAS, it is necessary to authorize an expenditure of $16,500.00 or so much thereof as may be needed, for additional major program audit expenses; and
WHEREAS, an emergency exists in the usual daily operation of the City Auditor’s Office in that, it is immediately necessary to authorize the City Auditor to modify and increase the agreement for audit services with Rea & Associates, Inc., ensuring uninterrupted audit services thus avoiding financial reporting delays and meeting all deadlines for the prompt and transparent financial reporting essential to the City’s credit ratings for the immediate preservation of public health, peace, property, welfare and safety;
NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized to modify and increase the agreement with the Auditor of the State of Ohio and Rea & Associates, Inc for additional major program audit expenses, in accordance with the original agreement (PO522097) and the additional amount of $16,500.00.
SECTION 2. That the sum of $16,500.00, or so much thereof as may be necessary, is hereby authorized to be expended from the General Fund 1000, Department 22-01, per the accounting codes in the attachment to this ordinance.
See Attached File: 0589-2026 Legislation Template.xlsx
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves or vetoes the same.