DATE: June 15, 2021
SUBJECT:
Title
PRESENTATION FROM THE PORT AUDITOR ON BEST PRACTICES RELATED TO EXTERNAL AUDIT AND PUBLIC AUDIT OVERSIGHT COMMITTEE MEMBERS WITH DIRECTION TO STAFF
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EXECUTIVE SUMMARY:
During the February 2021 Board of Port Commissioners (BPC) meeting, a request was made for the Port Auditor to give a presentation outlining the best practices for selecting external audit services through a competitive bid process and if firm rotation is required.
During the April 2021 BPC meeting, the Port Auditor was asked to give a presentation regarding best practices for term limits of public Audit Oversight Committee (AOC) members.
Based on a review of best practices related to external audit services, the Port Auditor recommends the Board to direct staff to conduct a request for proposal (RFP) for external audit services at the end of the contract period including any exercised option years. The requirement of a mandatory firm rotation (MFR) has not been widely recommended and leading accounting governing bodies have laid out alternatives to MFR such as partner rotation, and therefore, the Port Auditor does not recommend MFR.
Additionally, based on a review of best practices, the Port Auditor recommends the Board direct staff to return to the Board with a proposed amendment to BPC Policy Number 776, Audit Oversight Committee, to include language about term limits for public AOC members.
RECOMMENDATION:
Recommendation
Receive presentation from the Port Auditor on best practices related to external audit and pubic Audit Oversight Committee member and provide direction to staff.
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FISCAL IMPACT:
This agenda has no fiscal impact in this fiscal year.
COMPASS STRATEGIC GOALS:
This agenda item supports the following Strategic Goal(s).
* A Port that the public understands and trusts.
* A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
In March 2021, the Port Auditor submitted to the...
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