Explanation
This ordinance will authorize the City Auditor to enter into a contract modification for professional auditing services with Plante & Moran, PLLC for the calendar year 2017, with the City of Columbus and the Office of the Franklin County Municipal Court Clerk. This ordinance authorizes the expenditure of up to $401,070.00
All political subdivisons 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 AOS and the City of Columbus Auditor have concurred that the most appropriate way to meet all such requirements is to engage an independent public accounting firm (IPA) to conduct an independent audit of the City's accounting records and those of the Office of the Franklin County Municipal Court Clerk including federal and state grants.
The AOS office oversees a competitive process for selecting IPAs to perform government audits on behalf of the office. In August 2012, the City of Columbus completed the AOS competitive bidding process for the audit contract covering each of the five years from 2012 through 2016, with each year being subject to the authorizing appropriation of Council. Plante & Moran, PLLC was selected through this competitive bidding process. For the audit of fiscal year January 1, 2017 through December 31, 2017, the AOS has made a recommendation that the City pursue a 1-year extension of the 2012-2016 contract with IPA Plante & Moran, PLLC at a negotiated fee.
As the audit contract fees increased each year from 2012 through 2016 by 2.5% per year, Plante & Moran, PLLC has agreed to the terms of the contract with a 2.5% increase for the 2017 audit. The fee for 2017 with a 2.5% increase over the 2016 contracted fee is $401,070.00.
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.
Plante & Moran Contract Compliance Number is 38-1357951.
FISCAL IMPACT
Funds are currently budgeted in the City Auditor's department for this expenditure.
Title
To authorize the City Auditor to enter into a contract modification, along with the Auditor of the State of Ohio, with Plante & Moran, PLLC for professional auditing services for calendar year 2017; to authorize the expenditure of up to $401,070.00 from the General Fund; and to declare an emergency. ($401,070.00)
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, 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; 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 an independent public accounting firm to conduct an independent audit of the City's 2017 accounting records and those of the Office of the Franklin County Municipal Court Clerk including federal and state grants; and
WHEREAS, it is important that the City not be delayed in issuing its Comprehensive Annual Financial Report for the year ended December 31, 2017; and
WHEREAS, maximum efficiencies can be achieved by including the Office of the Franklin County Municipal Court Clerk; and
WHEREAS, the Auditor of the State of Ohio oversees a competitive process for selecting independent public accounting firms to perform audits; and
WHEREAS, the Auditor of State of Ohio has recommended the City pursue a one-year extension of the 2012-2016 audit contract; and
WHEREAS, an emergency exists in the usual daily operations of the City Auditor in that it is immediately necessary to authorize the Auditor to enter into a contract modification in order to provide uninterrupted Audit service, thereby preserving the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized to enter into a contract modification, along with the Auditor of the State of Ohio, with Plante & Moran, PLLC, to extend the contract in order to conduct an audit of the City's 2017 accounting records and financial statements and to render an opinion thereon.
SECTION 2. That this agreement includes the audit of the Office of the Franklin County Municipal Court Clerk.
SECTION 3. That the sum of ($401,070) or so much thereof 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: Ord 1914-2017 Legislation Template.xls
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 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 6. 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 or vetoes the same.