Title
To authorize and direct the City Auditor to enter into an agreement with Clark, Schaefer, Hackett & Co., Certified Public Accountants, for professional auditing services for calendar year 2006 and to authorize the expenditure of $308,750 from the General Fund and to declare an emergency. ($308,750)
Explanation
This ordinance will authorize the City Auditor to enter into an agreement for professional auditing services for the calendar year 2006, of the City of Columbus and the Office of Franklin County Municipal Court Clerk, and to authorize the expenditure of $308,750.
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 Clark, Schaeffer, Hackett & Co., Certified Public Accountants.
The audit agreement covers 5 years (2006-2010) with each year being subject to the authorizing appropriation of Council. This 2006 ordinance represents the first year of this five-year cycle. Annual costs of the audits are as follows:
Audit Period Audit Cost
2006 $ 308,750
2007 308,750
2008 325,000
2009 338,000
2010 347,750
Bids were also received for auditing services for the 2006-2010 five year period for other political subdivisions. These other political subdivisions will, however, pay Clark, Schaefer, Hackett & Co. directly for the audit costs. Such costs will not be channeled through the City. The other political subdivisions and the respective bids are:
Franklin Park
Conservatory
Columbus Regional Joint Recreation RiverSouth
Year Airport Authority District Authority
2006 $ 57,000 $ 23,750 $ 14,250
2007 57,000 23,750 14,250
2008 60,000 25,000 15,000
2009 62,400 26,000 15,600
2010 64,200 26,750 16,050
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.
Body
Whereas, all political subdivisions of Ohio are required to be audited by the Auditor of the State of Ohio or her designee, 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 Auditor of the State of Ohio and the Columbus City Auditor have concurred that the most appropriate way to meet all such requirements is to engage Clark, Schaefer, Hackett & Co., Certified Public Accountants to conduct an independent audit of the City's 2006 accounting records and those of the Office of Franklin County Municipal Court Clerk including federal and state grants, and
Whereas, Clark, Schaefer, Hackett & Co., CPA's submitted the lowest bids for audits of all of the aforementioned political subdivisions, and
Whereas, maximum efficiencies can be achieved by including the Office of Franklin County Municipal Court Clerk, and,
Whereas, an emergency exists in the usual daily operation of the City Auditor's office in that it is immediately necessary to engage Clark, Schaefer, Hackett & Co., Certified Public Accountants, to conduct an independent audit of the City's 2006 accounting records and those of the Office of Franklin County Municipal Court Clerk including federal and state grants The Auditor of the State of Ohio and the Columbus City Auditor both concur that this is the most appropriate way to meet all such requirements for the preservation of the public health, peace, property, safety, welfare; 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 Clark, Schaefer, Hackett & Co.,Certified Public Accountants, to conduct an audit of the City's 2006 accounting records and financial statements and to render an opinion thereon.
Section 2. That this agreement include the audit of the Office of Franklin County Municipal Court Clerk.
Section 3. That the sum of $308,750 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 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 after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.