HomeMy WebLinkAboutAgenda Report - February 20, 1985 (61)The City of Lodi has contracted with the firm of Ernst and Whinney
since 1976 to audit the City of Lodi's books. The audits have been
performed in a highly professional manner which has reduced
tensions and disruption in the organization. In addition to
providing an audit the auditors have also provided the City with a
written report discussing areas that need improvement and potential
problems within the Finance department. Staff is highly satisfied
with the present auditors.
The issue of whether or not to change auditors is one thatrests
heavily on fiduciary responsibility. There are really three
reasons to change auditors:
1. Dissatisfaction with the work of the present auditor.
2. The need to have a fresh look made of the financial records of
the city.
3. Appearance of propriety.
Ernst and Whinney is a large enough firm that each year there is a
change in the people doing the "hands on" work so that financial
records are being looked at each year with a different set of eyes.
At the same time the supervisory personnel remain on the audit for
two or three years and finally there is little turnover in the
principal who has overall responsibility. This has worked quite
well as the fresh look is there but at the same time there is
continuity in methods and formats which reduces city staff workload
and disruption.
There is little to mitigate the apprehensions that change should be
made to assure no collusion between City employees and auditors.
If we change auditors there will be a certain amount of
organizational trauma; not because a new auditor will purposefully
rile the organization, but because there is a change.
A new auditor certainly must learn the organization, areas of
responsibilities, the policies and procedures which have been in
place, for a number of years. This will require more time on the
part of staff to "show them around".
The decision then boils down to the appearance of fiduciary
responsibility as opposed to the organizational trauma of change.