title
Review of Arthur J. Gallagher & Company Insurance Brokerage Services (B)
explanation
On August 8, 2005, the City Commission directed the City Auditor to review Arthur J. Gallagher's (Gallagher) records related to their return of approximately $1.3 million to the City of Gainesville (the City). The City Commission also directed the City Auditor to report back to the City Commission regarding how much the City had been overcharged and what the appropriate level of interest due from Gallagher would be. On December 8, 2005, the City Auditor provided an interim report to the Mayor and members of the City Commission related to these issues (Attachment 1), which resulted in the City receiving an additional $514,000 settlement payment from Gallagher.
The City Commission also directed the City Auditor to review internal City procedures related to insurance brokerage services and to provide recommendations for any necessary improvements in the processes related to insurance brokerage services. The attached report provides recommendations for improvement and includes a written response from the City Manager.
We request that the Committee recommend the City Commission accept our report and the City Manager's response. Also, in accordance with City Commission Resolution 970187, Section 10, Responsibilities for Follow-up on Audits, we request that the Committee recommend the City Commission instruct the City Auditor to conduct a follow-up review on recommendations made and report the results to the Audit and Finance Committee.
recommendation
The City Commission: 1) Accept the City Auditor's report and the City Manager's response; and 2) instruct the City Auditor to conduct a follow-up review on recommendations made and report the results to the Audit and Finance Committee.