Board authorizes distribution of entrance-audit RFP; trustees ask for 5-, 8- and 12-year bids

GROSSE ILE, Mich. — The Grosse Ile Township Board on July 28 authorized distribution of an entrance-audit request for proposals (RFP) to solicit outside firms to review township policies, procedures and financial records. The board amended the RFP to request price quotes for three look-back timeframes: five, eight and 12 fiscal years.

The board’s authorization covers distribution of the RFP only; approving a contract with a selected firm would require a separate board action. In discussion, trustees and staff clarified that the proposed engagement would examine procurement practices, accounts payable, internal controls and segregation of duties and could extend into financial data if the reviewers determine additional testing is needed.

Scope and look-back debate: Trustees debated how far back auditors should examine records. Several trustees asked for longer reviews to capture multiple administrations; others warned of cost and diminishing returns for older data. One trustee said he had obtained prior cost estimates and thought three-year pricing had been “a really good price.” Another trustee recommended getting multiple quotes to compare cost and sampling approaches.

Teresa, the township’s finance/accounting staff, explained that forensic-style work can require larger sample sizes and additional testing when firms peel back “layers” to follow monetary transactions. The board heard that some firms that respond could be forensic practitioners (including forensic CPAs and attorneys) and would pursue further testing if preliminary review suggested irregularities.

Motion and amendments: After debate, trustees asked staff to revise the RFP to solicit bids for five-, eight- and 12-year reviews so the board could compare prices and sampling approaches. Trustees also confirmed that the action being approved was distribution of the RFP and not contract authorization.

Outcome and next steps: The board voted to authorize distribution of the entrance-audit RFP as amended. Staff will circulate the revised RFP to prospective firms and return to the board for contract authorization and firm selection after proposals and interviews (if any) are completed.

What the RFP will look for: The distributed scope will evaluate procurement practices, accounts payable, internal control structure and the accuracy of financial recordkeeping; proposals will include proposed testing and a proposed schedule. Staff said they will include interviews of responding firms as part of the selection process.

Board members noted the need to balance scope, cost and the ability to act on any findings; trustees asked that staff bring pricing and interview results back for a future board decision.