AATA Approves Auditor Rotation

At its June 16, 2011 meeting, the Ann Arbor Transportation Authority board unanimously approved a new auditor rotation policy. The policy would entail that the AATA not use the same auditor for longer than two four-year terms – a total of eight years.

Sue McCormick, who also serves as the city of Ann Arbor’s public services area administrator, was the board member who originally suggested looking into the issue of implementing an auditor rotation policy. She had raised the issue at the board’s Sept. 16, 2010 meeting, when board members approved a contract with Rehman as its auditor, but only for one year.

Among the risks cited by the AATA in adopting the rotation policy were the potential for needing to hire an auditor with less experience, who would produce a lower quality of work, and the potential that competitive bidding would be restrained. Among the benefits cited by the AATA in adopting the rotation policy were independence, a fresh approach, and lower cost.

At the board’s May 19 meeting, Charles Griffith, chair of the board’s performance monitoring and external relations committee, had indicated to his colleagues that the policy would need to come before the board at its June meeting so that there will be time to issue a request for proposals in time for next year’s audit.

This brief was filed from the boardroom of the Ann Arbor District Library’s downtown location, where the AATA board holds its meetings. A more detailed report will follow: [link]