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File #: 1662-2021    Version: 1
Type: Ordinance Status: Passed
File created: 6/16/2021 In control: Finance Committee
On agenda: 7/12/2021 Final action: 7/15/2021
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 2021; to waive competitive bidding; to authorize the expenditure of up to $424,592.00 from the General Fund; and to declare an emergency. ($424,592.00)
Attachments: 1. Legislation template 2021 audits.pdf, 2. Waiver Form Ord 1662-2021

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 2021, for the City of Columbus and the Office of the Franklin County Municipal Court Clerk, and to authorize the expenditure of up to $424,592.

 

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 2021, with a 2.0% increase over the 2020 contracted fee, is $424,592.

 

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.

 

Emergency action is requested to avoid any delays in finalizing the contracts and ensure work may begin on schedule to allow the Auditor’s Office to meet their requirements for a timely audit.

 

 

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 2021; to waive competitive bidding; to authorize the expenditure of up to $424,592.00 from the General Fund; and to declare an emergency. ($424,592.00) 

 

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 2021 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 Annual Comprehensive Financial Report for the year ended December 31, 2021; 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 in accordance with Chapter 329 of the City of Columbus 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 City Auditor's Office in that it is immediately necessary to authorize the Auditor to enter into contracts 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 an agreement along with the Auditor of the State of Ohio, with Plante & Moran, PLLC, to conduct an audit of the City's 2021 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 the competitive bidding provisions of the Columbus City Codes Chapter 329 be waived, 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 ($424,592), or so much thereof as may be necessary, 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 1662-2021 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.