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Commissioners select Clark Schafer Hackett after heated debate over auditor rotation
Summary
After a prolonged exchange about auditor rotation and institutional knowledge, the Livingston County Board approved Clark Schafer Hackett as the county auditor; an amendment to retain Plante Moran failed on a roll call.
The Livingston County Board of Commissioners voted to appoint Clark Schafer Hackett as the county's external auditor following a contested debate about whether to retain long-time auditor Plante Moran. The board considered competing procurement evaluations, staffing-hour estimates and the desirability of “fresh eyes.”
Commissioner Greg Gross (moved the amendment to substitute Plante Moran) argued Plante Moran had long experience auditing the county, quoting a first-year price of $119,828 and a proposed block of 850 hours and stressing continuity and institutional knowledge. Supporters of retention noted Plante Moran’s long history serving large Michigan counties and argued the higher quoted hours and experience justified staying with the firm.
Commissioner Nakagiri and others pushed for rotation, citing best practices used by publicly traded companies to rotate auditors and a desire to bring a partner with a Certified Fraud Examiner (CFE) designation to the engagement. Proponents of Clark Schafer Hackett cited the evaluation committee’s recommendation based on qualifications and experience of staff who would perform the audit.
The board voted first on an amendment to substitute Plante Moran for Clark Schafer Hackett; the amendment failed on a recorded roll call. The board then voted on the original resolution to appoint Clark Schafer Hackett, which passed on roll call (Yes: Sample, Nakagiri, Drake, Deaton, Panovich, Fiani, Helzerman; No: Gross, Domas).
Board members and staff noted the evaluation committee ranked Clark Schafer Hackett highest among respondents to the county RFP and that the procurement process considered qualifications, hours and local staffing. Commissioners who voted for rotation said they sought independent review and a partner with fraud-examination credentials; commissioners who opposed the switch said the difference in first-year price and institutional knowledge weighed in favor of Plante Moran.
The decision ends a weeks-long internal debate and will direct the county to begin contracting with Clark Schafer Hackett for upcoming audits. The board did not specify contract dollar amounts or the engagement start date in the public discussion; those details are expected to be finalized in contract documents.
