HomeMy Public PortalAbout20130905auditcommminutes.docCity of Tybee Island, Georgia
Audit Committee Meeting
Minutes
September 5, 2013
The meeting was held at City Hall starting at 5:00 pm.
Present were:
Committee members: Chairman Dick
Smith, John Branigin, Sue Getty and Bill Blakey. City Council Audit Liaison: Tom Grover. City Finance Director: Angela Hudson. City Manager: Diane Schleicher.
August 21, 2013 minutes
were approved.
There was a discussion of what firm would audit the city for fiscal year 2013. Diane reported on her meeting with Butch Widdon of Baird. Diane felt that relationship
was not repairable. Angela reported on her interaction with Butch on August 22 and said that though she could work with Baird on the 2013 audit it would not be the most comfortable
relationship. John indicated that after listening to all this he felt the relationship was broken beyond repair. Dick read an email from committee member Rob Callahan (who was not
able to attend the meeting) indicating he was in support of Angela’s recommendation to terminate Baird as Tybee’s auditor.
A question raised regarding changing auditors was would Baird
& Co. sue the City? It was also pointed out that given the multiple problems with the 2012 audited financials (including significant prior period adjustments) if Tybee were a public
company the lawsuits would be coming out of the woodwork. Having Baird on our side might be beneficial. Both Angela and Diane assured the committee they were confident that there would
be no lawsuit filed by Baird.
Diane and Angela then presented a backup plan. Angela had contacted people she knew at Malden & Jenkins (MJ) another audit firm. MJ had submitted a proposal
to do the 2013 audit while Angela was on vacation. They said they could complete the audit by December 31, 2013 which is when it must be submitted to the state.
There was a discussion
of past problems when MJ audited the city’s financials. Principal complaints were lack of responsiveness and meeting timetables, this was why they were not asked to submit proposals
during the last two audit rotations. The last audit they did was submitted 12 months after year end with no opportunity for the city to even review the report. Angela indicated she
was quite confident that MJ would be able meet the city’s deadlines.
There was a discussion of the need for MJ to guarantee deadlines and for financial penalties if deadlines were
not met. There was also discussion of insuring that there was
a detailed work plan with dates and milestones so progress could be measured. MJ needs to understand that a December 31, 2013 report delivery date is not moveable.
The committee
vote to recommend that the city hire MJ to do the 2013 audit.
Adjourned at 5:45 pm.