Despite experiencing “sticker shock” at a bill that is soaring by more than $140,000 in five years, the United Counties of Stormont, Dundas, and Glengarry council has retained MNP LLP as the county auditors at least until 2029.
This decision follows a formal Request for Proposal (RFP) process initiated in July which resulted in MNP LLP being the sole bidder for the external audit services contract.
Over the past five years (2019–2023), the total costs for audit services amounted to $93,507. The costs for the upcoming five-year period, from 2024 to 2028, will rise by $141,532, bringing the total to $235,040. “Despite this increase, the costs remain consistent with the standard rates for auditing services for similar upper-tier operations, and we have benefited from lower fees for many years,” treasurer Rebecca Russell told council.
Warden Jamie MacDonald asked, “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.”
North Glengarry Deputy Mayor 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.”
South Dundas Mayor 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.”
South Glengarry Mayor 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.” The former South Glengarry treasurer, observed, “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.”
In 2018, the counties paid $14,973 for auditors’ services for the counties, as well as the police services and library. In 2022 and 2023, the bill was $24,295. For 2024, the tab will be $43,166.
