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Audit committee warned of extra audit charges tied to comptroller letters
Summary
The internal auditor told the audit committee that letters from the state comptroller could generate additional hourly charges beyond the external audit contract and that the audit firm has begun field work; members discussed hourly rates and potential budget effects.
The committee's internal auditor told the audit committee that the external auditor's engagement letter has been signed and returned, and cautioned that letters from the state comptroller can create additional hourly charges beyond the original contract. "There will be an additional payment to them above what the original contract passes," the internal auditor said.
The internal auditor said the external firm has started field work and that last year the comptroller-related letters cost about $3,600. Committee members asked whether the hourly rate had changed (figures of $150, $200 and $250 per hour were referenced during the discussion). The auditor said she would check the current rate and that higher hourly charges could increase this year's outlay.
Why it matters: the extra work tied to state communications is charged hourly and is paid from the city council's budget allocation for auditing services. Committee members discussed options to limit surprise costs, including setting an informal cap on council-member consultations with the auditor so the city is not unexpectedly billed.
