Title
Selection of External Auditors for Professional Auditing Services (B)
Explanation
Florida Statutes section 218.39 and Gainesville Code of Ordinances section 2-433 require the City Commission to employ an independent certified public accountant, not connected with the government of the City, to audit the accounts maintained and the financial statements prepared by the City for each fiscal year. Resolution 150127 requires the City Auditor to be responsible for coordinating all financial audits, preparing Requests for Proposals (RFP) for external audit firms, evaluating and rating all proposals, monitoring the progress of the audit, and ensuring that contractual terms have been fulfilled.
In 2016, the City’s professional auditing services contract was bid. The General Government segment was awarded to Carr, Riggs, & Ingram, LLC, by the City Commission on February 2, 2017, for a contract period of three years beginning with the fiscal year 2017 audit. The contract required delivery of the combined financial statements and “all required reports” by January 31, 2018. On May 24, 2018, the City Auditor provided formal notice that the audit firm was in default of the contract for failure to timely deliver the required financial reports and allowed 10 calendar days to cure the default or risk the City exercising its right to terminate the contract for cause. On June 6, 2018, the City Auditor advised that the firm remained in default for failure to deliver the required financial statements. On June 12, 2018, the City Auditor issued formal notice to Carr, Riggs, & Ingram, LLC, that the failure to timely cure the default was considered a breach of contract and that effective June 13, 2018, the City would pursue seeking bids for new external auditors for the remaining two years of the contract.
On June 12, 2018, the Fiscal Year 2017 audited financial reports were presented to and accepted by the Audit and Finance Committee and subsequently submitted and approved b...
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