Marion auditor in process of choosing firm to conduct forensic audit of city finances
The City of Marion auditor has narrowed the search for a firm to conduct a forensic audit of city finances to a pair of companies.
Auditor Miranda Meginness presented proposals from three firms that conduct forensic auditing services to Marion City Council during its meeting on Monday evening. She informed city council that she proposals from two firms - Veritas Solutions Group LLC based in Canton and Rea & Associates of Gahanna - are very similar in scope of service provided and estimated price range. According to the ordinance's language, the total amount for services rendered is not to exceed $55,540.
The forensic audit is needed to determine the source of large discrepancies in bank reconciliation amount for fiscal years 2020 and 2021, Meginness said. The difference in the amount of bank and book balances is about $315,000. Meginness said the discrepancies date back to administration of former Auditor Robert Landon and were discovered as her staff reviewed bank reconciliations from 2020 and 2021.
City council voted to give Meginness permission to hire the firm that she believes could best serve the city's needs in this matter. Council amended the proposed ordinance to remove a specific firm name and then voted to suspend the rules and pass the legislation on its second reading Monday evening.
Rea & Associates had previously submitted its proposal, which the city council finance committee approved and the full council first considered during its meeting on Oct. 24. Proposals from Veritas Solutions Group LLC, Medica LLC, and Digital Forensics Corp. were presented on Monday after city council had requested that Meginness seek out additional bids for the project.
The estimate for services provided by Veritas Solutions Group LLC is between $30,000 and $45,000. The Rea & Associates estimate ranged from $35,360 to $55,540.
According to documentation submitted by Veritas, the company could begin the forensic audit in November if hired immediately and anticipates completing the work by February 2023. Rea & Associates stated that if selected to do the project, work could begin in mid-December and be completed by March 2023.
"Based on the conversations that I've had so far, I would be between Veritas and Rea," Meginness told city council on Monday. "Both because I've sat down with both of them and had extensive conversations. It wasn't a short survey, it wasn't a five-minute phone call. ... I'd prefer one of those two. I'm leaning now after these (conversations) more towards Veritas because (forensic auditing) is their specialty and that's what they do as well as the start date and the bottom line."
Meginness also informed city council that she hopes to submit the proposed city budget for 2023 to the finance committee at next Monday's meeting. Council committee meetings are scheduled to begin at 6:30 p.m. on Monday, Nov. 21 at Marion City Hall.
To view city council meeting agendas and the upcoming schedule, go to the City of Marion website www.marionohio.us. To hear the audio of all meetings, go the City of Marion Ohio YouTube account.
Email: ecarter@gannett.com | Twitter: @AndrewACCarter
This article originally appeared on Marion Star: Marion auditor in process of choosing firm to conduct forensic audit
