Pittsfield Audit Committee Sees 2 'Advantageous' Proposals
PITTSFIELD, Mass. — The city received two strong proposals for an independent audit and will evaluate their cost as the last determining factor.
On Monday, the Auditing Services Evaluation Committee decided to advance proposals from CliftonLarsonAllen and from Scanlon and Associates, the firm that has audited Pittsfield for years.
The city received two bid responses that members generally saw as equally strong. Some pushed for a new set of eyes, and some were comfortable with the knowledge Scanlon has built about Pittsfield over the years.
They agreed that prices are an important factor and voted to advance both proposals to purchasing agent Colleen Hunter-Mullett so she can come back with financial information.
"I think one was longer, but when I looked at it, I thought they both had in-depth information for us, and I really didn't have any issues with any of them, and I think they're both highly advantageous in that," said Kathy Amuso, who was designated to review the proposals.
"… I contacted municipalities for both CliftonLarsonAllen and Scanlon, and no matter which one I contacted, all the CliftonLarsonAllen customers and clients highly recommended them, and the Scanlon clients highly recommended them."
She has worked with Scanlon through government since 2003 and, because both proposals were highly rated, doesn't see a reason to change.
"I think it's been pretty consistent. I think they've been good to work with; I think they found some issues that they worked with the City of Pittsfield on," Amuso explained.
Ward 1 Councilor Kenneth Warren, who has called for an independent audit for some time, is at the stage where he wants to consider the cost, recognizing that both are "highly, highly qualified."
He observed that Scanlon is predominantly in Western Mass, while CLA has more statewide contracts: "So there's pluses to both." If CLA costs $200,000 more per year, for example, that will be a deal breaker for Warren.
"Best practices in the scheme of auditors say there should be some changes, but like I said, to me it means money. If there's a big difference, and Scanlan's the lower one, I think I would stay with Scanlan. If they're very close, I might want to see some interviews and things. So I'm not at a stage to be ready to make a decision," he said.
"Like I said, there's pros and cons. Scanlan's been with us, and they've been good, but does familiarity breed contempt? Not contempt per se, but they just know so much that they overlook some things. But then again, do we want somebody from Boston who's not in close contact with us? I don't know. There's pluses and minuses, so I need to see money. Show me the money."
Karen Kalinowsky, a former city councilor, said she was on the body when this came up before. She thinks they are both qualified, but sees positives in a new auditor, explaining "I'm a big one for fresh eyes. We've had the same person looking at our numbers for years."
But for her, she wants to see the cost of each proposal first to ensure Pittsfield is being fiscally responsible.
"But I am one for fresh eyes looking at the paperwork, just because it's been so many years that Scanlan has done ours and I think sometimes you get you get lax, not purposely, but when you're doing something over and over and over again, it just becomes — you might not see something that pops right out even when it comes to numbers," Kalinowsky said.
Councilor at Large Peter White reported that Hunter-Mullett said once the evaluation committee has made a decision, she would open the price proposals and let everyone know the prices, and this may or may not change the committee's initial decision on who to award to.
"The purpose of the RFP is to award a contract based on merit/experience rather than price," White reported from his conversation with the purchasing agent. "We do not have to go with a low price in this situation because there are certain services that the city would be willing to pay more for in order to get a more experienced firm, for example."
Scanlon has said in the past that they bring in a different team each year so that it's not the same set of eyes. White can see advantages in both sides, but is leaning towards Scanlon.
On June 29, the Auditing Services Evaluation Committee, enacted through the Finance Committee, elected its leadership and laid out next steps in the procurement process for an independent city audit.
Ward 2 Councilor Cameron Cunningham was elected as the chair. Members of the committee also include Councilor at Large Earl Persip III along with White and Amuso, as well as Kalinowsky and other former councilor Yuki Cohen, and residents Richard Backer and Paul Procopio.
"It sounds like even if we were to make a decision, we have the option to change it if pricing causes it. So I don't see the reason to make a decision without that information. If we're allowed to change our decision afterwards anyway," Cunningham said.
The committee voted to open the financial process for both proposals to inform the decision.
This process was prompted by Rule 40 of the council rules and the City Charter.
In Rule 40, any year when the City Council votes to hold a competitive procurement process for an independent certified public accountant or firm to audit Pittsfield's books and accounts, the city must, through its Finance Committee with the assistance of the purchasing department, solicit requests for proposals or invitations for bids before June 1.
The council in March recommended that the purchasing agent draft a request for proposals and put it out to bid.
Warren said they are trying to keep it professional and make the best decision for citizens. He wasn't aware of reference checks for the last audit.
"There's stuff to be said on both sides. The fresh eyes approach, the best practices approach, the experienced approach, the working relationship approach," he said.
"So we've got a lot going for us, but I want to see numbers."
Tags: audit & evalu committee,
