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Committee tightens RFP scope to reference GAGAS and clarify MD&A assistance
Summary
During a page-by-page review the committee added language to the RFP to reference both GAAP and GAGAS standards and discussed limits on auditor assistance for the management discussion and analysis (MD&A). Members emphasized the city retains responsibility for MD&A content.
Committee members recommended explicitly referencing both generally accepted accounting principles (GAAP) and generally accepted government auditing standards (GAGAS, the "Yellow Book") in the RFP's scope of services. The change is intended to make clear the standards auditors must follow when expressing opinions on the city's financial statements.
Members also raised concerns about wording that suggested auditors might prepare the MD&A, which the committee said could create a perception issue if staff ultimately signs a document prepared largely by the auditor. The Chair urged caution: "I don't like that statement," and asked that the RFP clarify that the city retains responsibility for the MD&A but that the auditor may assist in a supporting role.
Staff and members said they expect the firm to provide assistance and guidance on MD&A drafting without supplanting city responsibility; the RFP will be edited to reflect that balance.
