On September 16, 2024, the Council of the United Counties of Stormont, Dundas, and Glengarry (SDG) passed a motion to appoint MNP LLP as the municipal auditors for a five-year term. This decision follows a formal Request for Proposal (RFP) process initiated in July 2024, which resulted in MNP LLP being the sole bidder for the external audit services contract.
Rebecca Russell, the Director of Financial Services and Treasurer for SDG Counties, presented the recommendation to Council, emphasizing MNP’s long-standing relationship with the counties. She noted that MNP, formerly known as CKDM LLP, has been the counties’ audit firm for many years and is highly familiar with their operations and processes.
“This past summer, we submitted an RFP for auditors to provide audit services for the next five-year term. We received one bid from MNP LLP. We have been very happy with the services they have provided over many years, and prior to MNP, we worked with CKDM. Despite the increased cost, their fees remain within the industry norm. We’ve benefited from very low fees for many years, but the new fees are more in line with the industry standard. I recommend we move forward with MNP LLP.”
Warden Jamie MacDonald then inquired, “Do you have any thoughts on why there was only one bid?”
Russell responded, “Based on communication with other treasurers across Ontario since COVID, auditors are having difficulty with staffing and are struggling to take on large contracts like municipal audits. One county, Renfrew, had their long-term auditor step away due to staffing shortages. This is reflective of the industry’s current state.”
MacDonald replied, “It seems like quite an increase. If it had doubled, that would be one thing, but it nearly tripled and seems a little crazy.”
Councillor Carma Williams expressed concern, saying, “I have to admit, I’m experiencing a bit of sticker shock here. You mentioned the costs are in line with industry standards. Do we have any numbers from other companies or surrounding municipalities to back that up? It would be more reassuring to know we have numbers to back that up.”
Russell replied, “I could compile numbers from emails we’ve exchanged over the last couple of years, but I believe our costs are still lower than what some local municipalities are paying. If Council wishes, we could defer and gather that information. However, I can’t guarantee we would get more bids if we went out to RFP again, or that MNP’s price would remain the same. Based on what I’ve seen from other counties, fees can range between $50,000 and $70,000. We’ve been lucky to have kept ours lower for so long, but this increase was expected, similar to rising insurance and consulting costs.”
Councillor Jason Broad added, “I’m facing the same challenges on other boards I sit on. We are struggling to get RFP responses, and we can’t get folks to bid. All the companies are facing staffing issues.”
Councillor Lachlan McDonald further commented, “Some of these increased costs are due to changes in legislation. For example, auditors now have to account for post-closure costs and other additional requirements. When I was with South Glengarry, local audit costs were between $25,000 and $30,000 in 2021. I expect they’ve risen to $70,000 or $90,000 now. The Counties have historically had lower audit fees, and this is bringing us more in line with what other municipalities are paying.”
Russell confirmed, “Yes, audit standards have changed. For example, CAS 315 came out a few years ago, which required additional audit work that added $14,000 to our fees. The new Asset Retirement Obligation standards are also contributing to the increased cost. Despite these changes, we ensure we minimize any additional fees on our end.”
With no further questions or debate, the motion was called. The motion to accept MNP LLP’s proposal was carried.
