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Council OKs two‑year independent audit contract totaling $300,000 after staff defends firm and process
Summary
The Auburn City Council authorized a two‑year contract for independent financial audits for fiscal years 2025 and 2026, totaling $300,000, after the city manager and finance staff described the scope of work and the need for timely, independent audits to preserve bond ratings and borrowing capacity.
The Auburn City Council authorized a two‑year independent audit contract covering fiscal year 2025 ($142,000) and fiscal year 2026 ($158,000), for a combined total of $300,000.
The item (10B2) drew comments from Council and from public speaker Robert Wilkins, who had earlier requested postponement to better understand what the city received for the $300,000 audit. City Manager Megan McGowan and finance staff defended the practice of contracting with an independent local auditing firm rather than relying on the state examiner, citing the need for a timely audit to preserve debt issuance capabilities.
Heidi Lowry, accounting and financial reporting manager (acting in a senior finance role during the meeting), told council the city's external auditor typically spends an average of about 550 hours on the audit, reviews more than 100 items and examines internal control, federal funding compliance and implementation of GASB statements. McGowan told the council, "If we don't deliver an audit in a timely fashion, we can't issue any debt," and said the state audit office is often backlogged, which could delay the city's access to capital markets.
Council discussed the firm's familiarity with the city's books and the value of a timely, independent audit. Staff confirmed the contract is standard practice for municipalities and noted the developer and bank community, as well as rating agencies, rely on audited financial statements. Council approved the two‑year contract on a motion and second; no roll‑call vote with individual member names was read into the record.
The contract was presented in the packet as an independent audit engagement; staff noted the firm has an ongoing relationship with the city and that the annual audit work includes testing of accounts, notes to the annual financial report and fraud‑prevention review. The city manager and finance staff said the independent audit supports Auburn's ongoing AA+ bond rating and timely financial reporting.
