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Board authorizes development of entrance-audit RFP; scope to return for approval
Summary
Trustees authorized staff to develop and distribute a request for proposals for an entrance (forensic) audit of township financial transactions. The board directed staff to return with a draft scope to avoid duplication with the annual audit and to coordinate timing with the auditors.
The Grosse Ile Township Board on June 9 authorized development and distribution of a request for proposals (RFP) to solicit firms to perform an entrance (forensic-style) audit of township financial transactions, but requested that staff return with a draft scope and timing so the board can avoid duplication with the municipality’s regular annual audit.
Nut graf: The motion authorizes staff to draft and circulate an RFP for a more in-depth review of financial records and internal controls (sometimes called an “entrance audit” or forensic review). Trustees and the finance director emphasized the RFP should be carefully scoped to avoid overlap with the state-required annual financial audit and to coordinate with the auditors scheduled to begin fieldwork next week.
Why an entrance audit: Trustees said the review is intended to provide additional independent review of internal controls and transaction bookkeeping beyond the standard financial audit. Supervisor Kevin Porcirilli said he contacted multiple firms and wants an outside set of eyes to review areas that present the greatest risk to township assets; Finance Director Theresa McLaughlin and the township’s external auditors described differences in approach between an annual audit (sampling and internal-control testing) and a targeted forensic review (a deeper, often issuer-driven inquiry).
Board direction: Trustees asked staff to draft the RFP and return it to the board for review before final distribution. Board members requested that the RFP specify the look-back period, proposed sample methods and the expected interaction with the external auditors to reduce duplication. The board also asked staff to check candidates’ professional credentials and security protocols before allowing off-premises review of sensitive records.
Outcome: Motion carried. Staff will develop the RFP, consult with Finance Director Theresa McLaughlin to refine scope and timing, and return to the board with a final draft prior to issuing the RFP.
