In July of 2015, the City was informed by Mayer Hoffman McCann, P.C., the City’s independent audit firm, that the firm would no longer be providing governmental auditing services.  It should be noted that there was a contract in place for Mayer Hoffman McCann, P.C. to provide services through the end of fiscal year ending September 30, 2016.  Mayer Hoffman McCann’s termination of the agreement has resulted in having to expedite the request for proposal for independent audit services. 

AUTHORATATIVE REFERENCE:

•  Florida Statute, Section 218.39 and the City’s Charter, Section 2.10, require that the City has an annual financial audit of its accounts and records, performed by an independent certified public accountant.  Furthermore, Section 2.10 of the City’s Charter states that “such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect, in the fiscal affairs of the City government or any of its officers. The City Council may, upon consideration of sealed proposals, and after review of qualifications, designate such accountant or firm annually or for a period not exceeding three (3) years.”

•  Florida Statute, Section 218.391, requires specific procedures to be followed by local governments with respect to selecting an auditor to conduct the annual financial audit, one of which is that an audit committee must be established to assist in the selection process.   

   The audit committee shall:

•   establish factors to use for the evaluation of audit services to be provided, including, but not limited to, the ability of personnel, experience, and ability to furnish the required services;

•  publicly announce requests for proposals;

•  provide interested firms with a request for proposal;

•  evaluate proposals provided by qualified firms;

•  rank and recommend in order of preference to the City’s governing body no fewer than 3 firms deemed to be the most highly qualified to perform the required services.

• While the composition of the audit committee is not specifically noted in the statute, the Government Finance Officers Association (GFOA) has recommended the following as a best practice:

• All members should possess a basic understanding of governmental financial reporting

•  The committee should have access to the services of at least one financial expert, either a committee member or an outside party

•  Minimum membership of the committee should be no fewer than 3 members

    Historically, the approved audit committee has been composed of the     City Manager, Finance Director, and Chief Accountant.

OTHER PERTINENT INFORMATION:

The tentative timetable for auditor selection is as follows:

           November 11, 2015          Distribution of Request for Proposals

           November 30, 2015          Return Deadline for RFP (2:00 p.m.)

           December 2, 2015            Preliminary Ranking to Determine Finalists

           December 7 - 10, 2015     Oral interviews with Finalists (usually three)

           December 8, 2015            Final Ranking Complete