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Friday, March 8, 2013

Audit Cost Comparisons



With two snow days in a row, I’ve been able to dig through some of my old e-mails. I found this information about the cost of audits in small communities to be very interesting.

Once again, the Town of Templeton leads the way in audit costs. We expend $27,000/year for our audits, which have been performed by Melanson & Heath for many years. Melanson & Heath also performs audits for other communities: Hardwick ($15,500) and Hadley ($17,500).

The lowest cost for an audit was $6,000 (Leverett) performed by Scanlon & Associates. The highest cost was $27,000 (Templeton). The second highest cost was $19,000 (Halifax) performed by MLBCPA.

Question –
What are the factors that contribute to our high audit costs?

I am not advocating to end the practice of having our books audited. I am advocating investigating why our audit costs are so high and if there is a way to lower these costs.

My opinions…supported by FACTS ! ! !

Julie Farrell


5 comments:

  1. Are these figures for town audit or turbine audit?

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  2. I entered something about AAER wind turbines on another article, but it was too long and I am not able to delete it and start over. Go to:http://www.topix.com/forum/city/portsmouth-ri/TTOFQFUQT25J88TDP and you will find some problems and costs that the town of Portsmith RI is experiencing with the same type of turbine!

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  3. This blog is about the audit for the town books.

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    1. Sounds like it is time for new eyes to do our books. I can imagine what a mess they have been, so that may be why, the cost was so high. I give a lot of credit for Fred, our new accountant, for all the trouble he has gone through, trying to straighten last years books out. Like I told him, anyone else would have thrown in the towel a long time ago. Bev.

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  4. Before we see anymore comments about "us vs. them, sore loosers, etc etc," perhaps the selectmen to use one of the best things they have in their lil books, use Mr. Jeff Ritter to simply call Melanson & Heath and ask the question about the audit rates. Templeton is always free to put out RFP for audit services but perhaps we try a civil calm approach to this one. They may wish to keep a steady customer and lower the fee. I am all in favor of looking, discussing audits and the costs but before we go down the road of finger pointing and the lot, lets give Mr. Ritter a chance. Somewhere there is paper work (maybe the personnel policy) that says the town coordinator can/will do whatever additional duties the selectmen task him/her with so lets try it. Just a thought.

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