Title
Contract No.: GLWA-CS-132, Change Order No. 1, External Auditor Services
Body
Agenda of: September 13, 2017
Item No.: 2017-379
Amount: $127,508.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: September 8, 2017
RE: Contract No.: GLWA-CS-132, Change Order No. 1, External Auditor
Services
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA) authorizes the Chief Executive Officer (CEO) to enter into Change Order No. 1 Contract No. GLWA-CS-132, "External Auditor Services" with an increase of $127,508.00 for a total cost not to exceed $863,516.00 and to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The firm of Rehmann Robson was selected to provide auditing services for the Great Lakes Water Authority (GLWA) in January 2017. The timing of this selection was performed sequentially and in coordination with the City of Detroit who appointed a new audit firm late in calendar year 2016 for the year ended June 30, 2016. Given that this was the inaugural audit for the GLWA, the timing and completion of the audit for the predecessor entity, the City of Detroit Water & Sewerage Department (DWSD), was a critical path item.
At the time that GLWA was seeking audit proposals, it was anticipated that the City and DWSD's audited financial reports would be completed by March 31, 2017 however, that date was subsequently extended until May 31, 2017. The City's report was filed on May 31, 2017. Separately, on May 19, 2017, it was decided that all parties would be best served by a six-month audited financial report of DWSD through December 31, 2015 to support the opening statements of net position on January 1, 2017 for the regional and local systems. That report was issue...
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