Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit And Compliance topic
No spam. Unsubscribe anytime.
Committee reviews Baker Tilly proposal as district considers tax-office changes
Summary
The finance committee reviewed a proposal from Baker Tilly for audit services and discussed the district’s evolving tax-office role after the board decided to stop collecting earned-income tax (EIT). Staff recommended delaying an auditor change given planned internal transitions.
Keystone Central finance committee members reviewed a multi-year proposal from auditing firm Baker Tilly and discussed how changes at the district tax office affect audit needs.
Joni, the staff presenter, told the committee the district’s three-year contract with Baker Tilly ended and the company submitted a proposal for continuing services. Joni said staff is transitioning to a new financial software system and that the tax office’s role is changing after the district stopped collecting earned-income tax (EIT). She told the committee she did not think this was “a good year to also bring on a new auditor” while the software conversion and tax-office changes take place and that any residual tax-office cleanup would be charged on an hourly basis under the proposal.
Committee members discussed contract length, asking whether the district had to commit to three years. Joni described typical auditor arrangements: “You can go 5. Typically, you don't go less than 2 just because it's kind of a rhythm to get 3 years.” Board members asked staff to ask Baker Tilly whether the contract could be revisited at each year end and whether a one-year option was available.
The committee also reviewed the effect of stopping EIT collection. Joni explained that because the district is no longer collecting EIT, “that takes out 75% of what we would bring in as far as the tax office.” Another committee member corrected earlier phrasing to note that “the school board majority chose not to collect the EIT.” Staff said the board will need to decide whether to retain the tax office to collect other taxes such as business privilege tax and local services tax (LST); if the district keeps those functions, the tax office would still need auditing.
No contract was executed at the meeting. Staff recommended keeping Baker Tilly for the coming year given the software conversion and evolving tax-office duties, and promised to return with details on options for contract length and any competing RFPs.
