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Finance staff recommend new audit contract as FY24–25 audited statements remain delayed
Summary
Committee was told audited FY24–25 financial statements remain delayed; staff recommended awarding a new audit contract to Mali LLP with a higher fee and a fee‑reduction addendum if delivery misses the agreed schedule.
District finance staff told the committee the audited financial statements for fiscal 2024–25 remain outstanding but are expected in April, and they recommended the district award a multi‑year audit contract beginning with the 2025–26 audit.
Mr. Pawling explained the district issued requests for proposals to four audit firms and received two comparable proposals. Staff recommended awarding the contract to Mali LLP; the recommended fee rose from roughly $23,500 (current year) to about $43,000 under the new engagement. To address timing concerns, the district negotiated an addendum that would reduce the fee by $1,000 per month for every month the audit is late beyond January 31.
Why it matters: Audited statements are used by rating agencies and underwriters when the district issues debt. Committee members praised staff for proactively notifying Moody’s and said timely audited financials are important given planned borrowing for capital projects.
Committee discussion focused on auditor bandwidth and industry staffing shortages. Members asked about on‑site versus cloud workflows, backup staffing if an on‑site manager leaves mid‑engagement, and retaining the auditor–board interview as an oversight check.
Quote: “We made an adjustment to the financial reports,” Mr. Pawling said, describing a corrected fund‑summary formula and the plan to update the electronic board packet.
What comes next: Staff will proceed with the recommended contract award language and monitoring expectations for timely delivery; the district also continues to provide interim financials to Moody’s and expects the full audited statements soon.
