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City updates contract with Clarion for interim finance services as auditors continue backlog work
Summary
City staff and Clarion representatives reported progress reducing audit backlog and described ongoing outsourced finance services; commissioners raised questions about long-term staffing versus continued contracting.
City staff and Clarion LLC representatives updated the Safety Harbor Commission Monday on an outsourced finance-services agreement intended to address large turnover in the finance department and to advance delayed audits and budget preparation.
City staff said Clarion began providing CFO-level and senior accounting services to the city on Dec. 1, 2024, after the finance department lost multiple long-tenured employees. The city’s presentation said the firm is assisting with budgeting, monthly reconciliations, accounts-payable processing, purchase-order change orders and monthly audit preparation. “When we agreed to engage Clarion in December 2024, that list had about 140 outstanding audit items; as of today the list has been reduced to six,” staff said, reporting that the goal remains to complete both the fiscal year 2023 and 2024 audits by June 30.
Andrew Laflin, Clarion’s chief executive, said the firm was pleased to be working with staff. “We’re encouraged by what we’ve seen in our tenures thus far in reducing the audit requests and getting the audit preparation process forward,” Laflin said. Al Braithwaite, Clarion senior accountant and consultant, told the commission Clarion is not the audit firm and noted the city’s audit will be performed by CliftonLarsonAllen; Clarion’s work provides preparation and accounting support rather than independent audit services.
Commissioners asked about how long the city might rely on contracted services versus rebuilding in-house capacity. Staff said Clarion’s current contract covers the remainder of the fiscal year and recommended budgeting for continued Clarion assistance in FY26 while the city recruits for vacant finance posts, including an assistant finance director. Commissioners expressed a mix of support and caution — many acknowledged the immediate need to clear audit items and restore compliance, while some said they want a clearer long-term plan that balances outsourcing and hiring.
Staff said they will return with more detailed planning as audits are completed and as the FY26 budget is prepared. Clarion and city managers said they expect to provide another status update to the commission in roughly two months.
