Hospital authority approves $910,000 KPMG engagement to review accounting and operations

The Hospital Authority Board approved a contract with KPMG for accounting, financial reporting and operational-efficiency advisory services on a motion that passed during the board meeting.

The engagement was described to the board as a roughly three-month advisory project with a total negotiated cap of $910,000 that includes a weekly consulting cap and a $100,000 flat fee. The presenter said the fee cap is inclusive of expenses and that KPMG will be asked to use local staff where possible. The board was told the engagement is intended to close gaps in month-end and year-end close processes, update accounting policies and standard operating procedures, and support cost-report preparation.

Board members asked about the fee, the timeline and whether funds were available. The presenter said the engagement start date is May 1, 2025, and the planned end date is in mid-August 2025, that Metro Finance had been consulted, and that funds were set aside for the work. The board was also told the engagement includes two opportunities for a KPMG representative to present updates to the board.

The board had previously requested multiple proposals; the presenter said three firms were considered and KPMG was selected. A board member requested more detail about vendor pricing comparisons; the presenter declined to disclose competing vendors’ costs to protect those organizations’ proposals.

Outcome: On a motion and second recorded by the chair, the board voted in favor and the motion passed.

The board framed the engagement as part of a broader push for “economics, accountability and culture” around finance and to accelerate remediation steps before the new fiscal year.

Ending: The board approved the KPMG engagement and asked staff to share periodic updates; KPMG is scheduled to begin work May 1 and to provide at least two in-person briefings to the board during the engagement.