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Trustees split over audit renewal; three‑year contract approved after one‑year motion fails
Summary
After debate about auditor rotation and onboarding costs, the Pacific Grove board rejected a one‑year audit contract motion and approved a three‑year renewal with Eide Bailly 4–1, citing continuity and partner rotation practices under Ed. Code.
The Pacific Grove Unified School District board on May 21 considered whether to renew audit services with Eide Bailly for one year while soliciting proposals or to approve the three‑year contract presented in the consent packet.
Chair (role) moved to approve a one‑year contract for $81,000 and explore other firms; the motion was seconded and discussed. "Best practice can be to rotate firms every five to seven years," the chair said during debate. Several trustees and staff pointed out that Education Code requires the audit partner to rotate every six years and that Eide Bailly has been rotating audit teams internally, which staff said preserves fresh oversight without the cost and delay of onboarding a new firm.
Assistant Superintendent Jorn told the board that while changing firms can provide a fresh set of eyes, it also carries onboarding burdens and extra costs, and that Eide Bailly has rotated engagement partners on the district's account in recent years. Trustee Atmar and Clerk Shamas expressed concern about the cost and administrative burden of switching firms now.
The motion to approve a one‑year contract failed on a roll call vote. A subsequent motion to approve the contract as presented (three years) passed 4–1. The board directed staff to proceed with the approved contract and to monitor partner rotation requirements under the Education Code.
The board’s discussion focused on balancing the value of a fresh audit perspective against continuity and the expense of transition. Staff noted the district’s audit team has changed personnel in recent cycles and that the Education Code requires partner rotation rather than mandating firm‑level changes.
The contract renewal will move forward per the terms in the board packet; staff said audit team assignments and partner rotation schedules will continue to be monitored and reported to the board.
