DEPARTMENT: Finance Department
DEPARTMENT HEAD: Troy Elliott, CPA, Deputy Chief Financial Officer
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Engagement of a Professional Consultant to Provide Accounts Payable Recovery Audit Services
SUMMARY:
This ordinance authorizes the City to enter into a professional services contract with Professional Auditing Services of America, Co. (PAS) to provide accounts payable recovery audit services to the City. Under this contract, the selected consultant will audit vendor payment data for missed cash discounts, duplicate payments, unapplied credits and other issues, and seek recoveries from the vendors. Once the recoveries are received by the City, a 21% contingency fee will be paid to the consultant. Recovered monies will be returned to the fund from which the expenditure was made.
BACKGROUND INFORMATION:
The City's non-payroll vendor payments have averaged approximately $1.17 billion over each of the past five fiscal years. A contingent fee based audit is a no-cost way to confirm the Finance Department has adequate controls in place and to identify control gaps and make recommendations for improvements.
On May 3, 2016, the City released a Request for Proposal (RFP) for Accounts Payable Recovery Audit Services. A pre-submittal conference was held on May 10, 2016 to allow for Respondent questions and clarification to the RFP. Two (2) proposals were received by the June 1, 2016 deadline. The Evaluation Committee included representatives from the Finance Department, with a representative of the City Attorney's Office serving as an advisory non-voting member of the Evaluation Committee. The evaluation of each proposal was based on a total of 100 points: 20 points allotted for experience, background, qualifications; 25 points allotted for proposed plan; 20 points allotted for cost/compensation; and 20 points allotted for Small Business Economic Development Advocacy (SBEDA) Program. The Small Business Enterpr...
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