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Officials say full audit bids exceed budget; staff search for affordable auditor
Summary
City finance staff told the board they budgeted $12,000–$14,000 for a full audit but received bids around $25,000; staff said some firms are no longer doing full audits for small Missouri governments, complicating procurement.
Board members pressed staff about the city's audit procurement after finance staff said no firms had bid within the city's expected range.
"We don't have any firms that have bid an audit within the budget of the city," the staff member said. He added that firms expressing interest submitted bids near $25,000, above the city's $12,000–$14,000 budget.
Staff explained that some audit firms have shifted away from full audits for smaller Missouri governments because of staffing constraints and cost; some firms instead offer simplified engagements (referred to in the discussion as "KMAG" audits in neighboring Kansas) that require less extensive accrual accounting.
When a board member asked whether that meant the city was putting the audit off, staff replied, "No, we have not put it off," and said the board's preference is to secure a full audit rather than a compiled report — but finding a firm at the lower budget range has been difficult.
The discussion did not identify a specific selected audit firm or provide a full timeline for procuring and completing the audit. Staff said the higher market prices are a regional trend affecting small governments' ability to obtain full audits within low budgets.
(Attributions: quotes and assertions in this article are taken from the meeting transcript; the audit procurement statements are attributed to the finance staff member recorded as S4.)
