Explanation
This ordinance will authorize the City Auditor to enter into an agreement for professional auditing services with Plante & Moran, PLLC for the calendar year 2020, of the City of Columbus and the Office of the Franklin County Municipal Court Clerk, and to authorize the expenditure of up to $418,348.
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. The 2012-2016 contract with IPA Plante & Moran, PLLC was extended for one year for the 2017 audit. For the 2018-2021 audit years, the AOS has made a recommendation that the City pursue an additional four year extension with IPA Plante & Moran, PLLC at a negotiated fee.
As the audit contract fees increased each year from 2012 through 2017 by 2.5% per year, Plante & Moran, PLLC has agreed to the terms of the contract with a 2.0% per year increase for the 2018-2021 audits. The fee for 2020 with a 2.0% increase over the 2019 contracted fee is $418,348.
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 an agreement, along with the Auditor of the State of Ohio, and Plante & Moran, for professional auditing services for calendar year 2020; to waive the competitive bidding requirements of City Code; to authorize the expenditure of up to $418,348.00 from the General Fund; and to declare an emergency. ($418,348.00)
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 2020 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, 2020; 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 an additional four-year extension of the 2012-2016 audit contract, this ordinance requests waiving the competitive bidding provisions of Chapter 329 of the City Code to allow the City Auditor to establish a contract with Plante & Moran, PLLC as recommended by the Auditor of State of Ohio; and
WHEREAS, an emergency exists in the usual daily operations of the Auditor's Office in that it is immediately necessary to authorize the Auditor to enter into an agreement with the Auditor of State and Plante & Moran in order to provide uninterrupted Audit services, 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 an agreement, along with the Auditor of the State of Ohio, with Plante & Moran, PLLC, to conduct an audit of the City's 2020 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 2. That this Council finds it is in the City's best interest to waive the competitive bidding provisions of the City Code as the Auditor of State oversees the bidding process for selection of independent public accounting firms to perform audits.
SECTION 3. That the sum of ($418,348) 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 1682-2020 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 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.