Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Fees Budget topic
No spam. Unsubscribe anytime.
Internal auditor warns of extra audit invoices, recommends limits on council consultations
Summary
The internal auditor told the committee an engagement letter allows the state to bill hourly for additional letters and consultations, which caused a $3,600 overrun last year; members discussed capping council consultations and possibly adding a budget line.
The committee heard that the external auditors' engagement letter includes fees for additional work requested by the state, which are billed hourly and can cause unanticipated charges.
Samantha, the internal auditor, said the engagement letter specifies that letters from the comptroller are charged hourly and that last year those letters cost $3,600. She told the committee, “There will be an additional payment to them above what the original contract passes,” and noted the external audit contract itself is roughly $165,000 for regular services. Committee members raised that Crossland consults with council members and that those consultations can be billed (the transcript records Crossland at about $250 an hour). Members proposed capping consultation time or directing the audit committee to recommend a cap to council to reduce the risk of surprise invoices.
Staff described the contract-amendment and payment process when costs exceed the council's budget allocation and said Penny (the contracting officer) is authorized up to $10,000 to approve additional contracted services; if costs exceed budget, a formal budget amendment would be required.
