Explanation
May 30, 2003
BACKGROUND
This ordinance will authorize the City Auditor to enter into an agreement for professional auditing services for the calendar year 2003, of the City of Columbus, the Columbus Regional Airport Authority (CRAA), the Franklin Park Conservatory District (the District) and the Franklin County Municipal Court, and to authorize the expenditure of $395,550, therefor.
At the direction of the Auditor of State an extensive request for proposals and evaluation process was conducted. Two proposals were received. Evaluations of these proposals were conducted by both the City Auditor's Office and the State Auditor's Office, independent of each other. Both offices concluded that the contract should be awarded to Deloitte & Touche LLP.
The audit agreement covers 5 years (2001-2005) with each year being subject to the authorizing appropriation of Council. This 2003 ordinance represents the third year of this five-year cycle. Annual costs of the audits are as follows:
Audit period |
Audit cost |
|
2001 |
$ |
390,000 |
2002 |
|
384,600 |
2003 |
|
395,550 |
2004 |
|
406,500 |
2005 |
|
417,450 |
CRAA and the District will reimburse the City for their proportionate share of the audit cost. The audit cost for the Columbus/Franklin County Affordable Housing Trust Corp (AHT) remains undetermined at this time but such cost will be borne by the AHT.
It should be noted that 15% of this contract will be subcontracted to a minority firm of certified public accountants. This has been a subcontracting requirement in the City's audit contract since 1985.
FISCAL IMPACT
Funds are currently budgeted in the City Auditor's department for this expenditure.
Title
To authorize and direct the City Auditor to enter into an agreement with Deloitte and Touche LLP for professional auditing services for calendar year 2003 and to authorize the expenditure of $395,550 from the General Fund. ($395,550)
Body
Whereas, the State of Ohio via the Auditor of State, the City Charter and certain of the City's bond indentures and other agreements require that an audit of the City's financial statements be conducted annually, and
Whereas, certain of the City's bond agreements call for the audit to be conducted by a nationally recognized firm of certified public accountants, and
Whereas, the United States Office of Management and Budget through the Single Audit Act of 1996 has made it possible for all federal grants to be audited via one comprehensive audit, and
Whereas, the State Auditor of Ohio and the City Auditor have concurred that the most appropriate way to meet all such requirements is to engage Deloitte & Touche LLP; Certified Public Accountants to conduct an independent audit of the City's 2003 accounting records including federal and state grants, and
Whereas, maximum efficiencies can be achieved by including the Columbus Regional Airport Authority (CRAA), The Franklin Park Conservatory District (the District) and the Franklin County Municipal Court; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City Auditor is hereby authorized and directed to enter into an agreement with the firm of Deloitte & Touche LLP, Certified Public Accountants, to conduct an audit of the 2003 accounting records and financial statements and to render an opinion thereon.
Section 2. That this agreement include the audit of the Columbus Regional Airport Authority (CRAA), the Franklin Park Conservatory District (the District) and the Franklin County Municipal Court and be in the amount of $395,550.
Section 3. That the sum of $395,550 or so much thereof as may be necessary, is hereby authorized to be expended from the General Fund 010, Department 22-01, Object Level-1 03, Object Level-3 3325, OCA 220145 for the aforesaid purpose.
Section 4. The City Auditor is hereby authorized to prorate the costs of this audit to the various funds of the City.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.