Title
Requisition No. REQ-0002648
External Auditing Services
O&M
Body
Agenda of: June 25, 2025
Item No.: 2025-165
Amount: $852,500.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 25, 2025
RE: Requisition No. REQ-0002648
External Auditing Services
Vendor: Baker Tilly US, LLP
Status: New Contract/PO
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, Financial Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Requisition No. REQ-0002648, “External Auditing Services” with Baker Tilly US, LLP, at a cost not to exceed $852,500.00 for a duration of three (3) years with one (1) renewal option for six (6) months for a total duration of three and one/half (3.5) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
According to the Articles of Incorporation, Article 7J, the Audit Committee shall, once every three (3) years, recommend three (3) independent certified public accounting firms that, in the judgment of the Audit Committee, possess sufficient resources and qualifications to conduct annual financial audits of the accounts of the Authority. From the three recommendations of the Audit Committee, the Board may select the independent certified public accounting firm with whom the Authority shall execute an agreement to conduct annual financial audits for the succeeding three (3) fiscal years of the accounts of the Authority.
JUSTIFICATION
Subject to a request for proposal process facilitated by GLWA Procurement, five qualified proposals were received on April 8, 2025, for external auditor services. Those proposals were reviewed to ensure that all minimum criteria were met, and the written proposals were scored. Oral presentations were received on April 24, 2025, and a final scoring was then tabulated. The Procurement Report is attached.
FINANCIAL PLAN IMPACT
Summary: Annual financial auditing services is included in the financial plan.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Financial Reporting & Accounting... Administrative Services 884111
Expense Type(s): Auditing (611200) (Including annual external audit and other technical services)
Estimated Cost by Year and Related Estimating Variance:
Fiscal Year Amount
FY 2025 Budget $322,000.00
FY 2026 Financial Plan 326,400.00
FY 2027 Financial Plan 330,900.00
Total Financial Plan Forecast $979,300.00
Proposed Contract Amount $852,500.00
Forecast Variance (positive/ (negative)) $126,800.00
COMMITTEE REVIEW
In preparation for the auditor selection process, at the March 14, 2025, Special Audit Committee meeting, the Audit Committee requested GLWA Financial Services Area Staff to complete the evaluation of written proposals and to also conduct the resulting proposal interviews. Staff was then also tasked with providing a recommendation to the Audit Committee for review. The nature of the assignment was to align with the requirement of the articles via the transparent procurement process.
On April 8, 2025, five proposals for external auditor services were received by GLWA via the Bonfire portal. The proposals were reviewed by an evaluation panel to ensure that all minimum criteria were met, and the written proposals were scored. Oral presentations were received on April 24, 2025 from the three highest scoring firms. Based on those presentations, subsequent follow-up questions were drafted by the evaluation panel focusing on the assigned audit firm personnel with first-hand experience auditing clients with Workday ERP. The Buyer submitted those follow-up questions to the vendors as well the resulting answers back to the evaluation panel. As a final step, the Buyer provided the evaluation panel with the proposed fees. The final scoring was then tabulated based on all information received in accordance with the scoring matrix.
A recommendation was presented to the Audit Committee at its meeting on June 6, 2025. The Audit Committee unanimously recommended that the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Requisition No. REQ-0002648, “External Auditing Services” with Baker Tilly US, LLP, at a cost not to exceed $852,500.00 for a duration of three (3) years with one (1) renewal option for six (6) months for a total duration of three and one/half (3.5) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.