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 addi...
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