|
TO: |
Audit Committee |
|
FROM: |
Viola Miller, CFO |
|
PRESENTER(S): |
Rob Lamph, Comptroller |
|
|
|
TITLE:
title
External Financial Auditor Recommendation
end
AGENDA ITEM TYPE:
Audit - Approval
RECOMMENDATION:
Recommend to the Board of Trustees the selection of Crowe, LLP as the agency’s external financial auditor
BACKGROUND:
State law requires the Authority to conduct an independent audit annually. Additionally, the Authority must complete a Single Audit of all federally funded programs it administers to maintain eligibility for continued funding. The Single Audit is a standard requirement for most local governments, including the Utah Transit Authority. The Authority also solicited services for auditing the pension plan and reviewing the agreed upon procedures for the National Transit Database reporting. Staff issued a Request for Proposal for Independent Auditors and received proposals from six audit firms.
DISCUSSION:
The selection committee reviewed and evaluated each proposal based on the firm’s experience with governmental auditing, including transit agencies, staff qualifications, ability to deliver the required services, and cost. Crowe, LLP received the highest overall score. Accordingly, the committee recommends engaging Crowe, LLP as the agency’s independent auditor for an initial three-year term, with two one-year options, for a maximum contract period of five years.
While Crowe, LLP served as the agency’s previous audit firm, the Government Finance Officers Association (GFOA) best practices emphasize prioritizing a firm’s qualifications in government and specific industries over simply rotating auditors. Crowe, LLP brings substantial experience in auditing government and transit agencies.
ALTERNATIVES:
The Committee could choose to not make a favorable recommendation to the Board of Trustees to approve Crowe, LLP as the agency’s external financial auditor.
FISCAL IMPACT:
The Comptroller’s annual budget includes an allocation for the annual external financial audit.
ATTACHMENTS:
None