June 13, 2017
MEMO TO: Mayor Barber and Board of Commissioners
FROM: Frank A. Rush, Jr., Town Manager
SUBJECT: Resolution Authorizing Audit Services Contract - (Summary & Suggested Motions)
The Board of Commissioners is asked to approve the attached resolution authorizing a new one-year audit services contract with S. Preston Douglas & Associates, LLP, of Lumberton, NC for the FY 16-17 financial audit. The total amount of the contract is $14,000, and includes assistance with the preparation of annual financial statements and all required auditing services.
From FY 10-11 through FY 15-16, the Town’s financial statements have been audited by Williams, Scarborough, Smith, and Gray (WSSG), of New Bern, NC. WSSG recently notified Town staff that their firm will no longer offer these services to governmental units. Therefore, Town staff solicited proposals from six regional CPA firms for audit services for the fiscal year ended, June 30, 2017. Two firms submitted proposals, and were interviewed and considered by the Board’s Audit Committee. The Audit Committee recommended the new contract be awarded to S. Preston, Douglas, & Associates, LLP (SPD&A). (The other proposal was submitted by Dixon Hughes Goodman, LLP of High Point, NC, and included a total cost of $29,000.)
SPD&A is an experienced audit firm with significant local government experience. Other current and past SPD&A clients include the City of Greer, SC, the City of Archdale, Town of Oak Island, Town of Sunset Beach, and Town of Leland, NC, among others. Finance Director Laura Rotchford contacted several SPD&A municipal clients, and all expressed satisfaction with SPD&A’s services.
SPD&A has committed to complete the Town’s FY 16-17 audit in a timely manner, and will have the report finalized for presentation to the Board of Commissioners at your November regular meeting. SPD&A has committed to the following milestone dates:
• By June 30, 2017 – complete all preliminary work associated with FY 16-17 audit;
• By August 25, 2017 – perform audit and testing procedures at Town offices;
• By September 30, 2017 – submit complete draft report and financial statements for review and preparation of Management’s Discussion and Analysis by the Town Manager and Finance Director;
• By October 31, 2017 – Final completion of the audited financial statements; and
• By November 11, 2017 – Board of Commissioners review of final report.
SPD&A’s proposed fee for the FY 16-17 audit is $14,000, which is within the FY 17-18 budget for this service, and is slightly less than the Town’s prior firm’s fee for the FY 2016 audit.
I recommend approval of the attached resolution.