n City receives unqualified opinion on its 2012 audit
GREENVILLE — The Greenville City Council has chosen to extend a contract with their current auditing firm Gabridge and Co.
The City Council is responsible for hiring the city attorney, manager and auditor when each term/contract has expired.
During Tuesday’s meeting, the council approved to extend the contract in a 5-1 vote. Councilman Larry Moss was absent from the meeting.
City Manager George Bosanic explained a contract was signed with the company for three years. The audit ending in December 2012 marked the end of that term.
The council had to decide whether or not to extend it for two years or bid out the contract to other auditing firms.
“There are pros and cons to extending (the contract),” Bosanic said. “There are also pros and cons to (bidding it out).”
In extending the contract, Gabridge and Co. offered a 10 percent discount from the 2012 audit fee, which saves the city about $1,800 each year.
According to the proposal, the fee would not exceed $16,100 each year. This amount is less than the first year fee of the current contract, which was a decrease from the previous contract.
“This is the first time in several years, if ever, that the actual audit fee was less than the proposed fee in the engagement letter and a decrease from the prior year,” said City Clerk Brad Hool in a recommendation letter to Bosanic.
However, Bosanic said going with the same firm over and over could cause the firm to get too comfortable.
Over the previous three-year contract, Bosanic said the company has been great and there were not any major problems although the company was late in getting the 2012 audit to the city.
Mayor Pro Tem Frances Schuleit asked if council chose to bid out if Gambridge and Co. could still place a bid.
Both Bosanic and Hool said that was possible, but more than likely the city would have lost out on the 10 percent discount.
Schuliet voted “no” because she would have liked to see what options were out there.
“I voted “no” because I believe there is value in seeing what is available,” Schuliet said. “It was nothing against the company.”
During the Jan. 22 City Council meeting, the council received its audit report from Gambridge and Co..
Certified Public Accountant Joseph Verlin said the city received an unqualified opinion.
“That is the highest opinion we can give,” Verlin said.
During the presentation, Verlin explained the opinion is important and not just a formality.