Explanation
BACKGROUND
This ordinance will authorize the City Auditor to enter into an agreement for auditing services with the Auditor of State of Ohio for the calendar year 2024, for the City of Columbus and the Office of the Franklin County Municipal Court Clerk, and to authorize the expenditure not to exceed $347,530.00.
All political subdivisions of Ohio are required to be audited by the Auditor of the State of Ohio (AOS) or his designee. 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 AOS has determined that the most appropriate way to meet all such requirements is to conduct an independent audit of the City's accounting records, including federal and state grants.
Pursuant to Section 117.09 of the Ohio Revised Code (ORC), the AOS is responsible for audits of all public offices. Prior to 2022, the AOS allowed the City to participate in the selection of an independent certified public accountant to perform the required audit through the AOS competitive bidding process. The AOS has determined that his office will perform the 2024 independent audit of the City of Columbus. The AOS will also perform an audit of the Office of the Franklin County Municipal Court Clerk as part of the 2024 city audit procedures.
ORC 117.13 governs how the AOS charges public offices for the cost of audit services. The total costs of audits, both direct and indirect, are to be recovered by the AOS through charges to their clients. The AOS has traditionally recovered its cost using an hourly rate based on the type of service. For local governments, these costs are offset by resources available in the Local Government Audit Support Fund and the state General Revenue Fund. AOS Bulletin 2023-003 establishes the audit rate for local governments for the state Fiscal Year 2024 or until the AOS publishes a subsequent bulletin, at $41 p...
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