Council selects Gilbert & Stewart for municipal audit after two bids

Morgan City Council voted to select Gilbert & Stewart CPAs to provide annual audit services after staff evaluated two proposals in response to a competitive request for proposals.

What happened: Ty told the council the city's incumbent auditor had been absorbed into another firm and could no longer provide both internal accounting services and independent audit services. The city issued an RFP, received two proposals and staff recommended Gilbert & Stewart as the lower-priced, qualified bidder.

Key considerations: Ty said Gilbert & Stewart's proposal included no escalator for five years and included an on-site visit, while the higher-priced competitor proposed periodic rate increases and a more remote review. "Gilbert and Stewart CPAs was the lower low bid. As far as I can tell, all the qualifications are the same between the two," Ty said. Council members asked about partner-hour rates, single-audit requirements and whether the firm would charge additional fees if audits required more hours. Ty said the proposals are for an annual bid amount and the city pays only for hours actually worked up to that annual bid.

Single-audit note: Staff explained a single audit (an in-depth federal funds audit) is required only if the city spends the federal threshold amount in a fiscal year. Ty said the city has not yet met the threshold for a single audit during his tenure.

Council action: A council member moved to accept Gilbert & Stewart as the city's auditor for the proposed contract term and council approved the motion.

Ending: Staff will proceed to finalize engagement terms with Gilbert & Stewart and schedule audit work. Council requested staff remain attentive to single-audit triggers if federal grants increase.