The firm contracted to complete Indianola’s 2018 audit needs the work papers from the 2017 audit that was previously completed by Brown & Ewing.
Brown & Ewing has those papers, but the firm, terminated in the spring of 2022 by the city, says it needs upwards of $30,000 for work it completed toward the 2018 audit before they would consider handing those documents over.
The City of Indianola, particularly Board Attorney Kimberly Merchant, insists on seeing a detailed invoice of the work Brown & Ewing claim to have done.
The stalemate may very well be coming to an end soon as the board voted this past Monday night to authorize Merchant to negotiate with Brown & Ewing.
“I’m all for paying them if they give us the supporting evidence,” Ward 1 Alderman Gary Fratesi said.
The issue was brought to the board by Ward 4 Alderman Marvin Elder, who protested the vote last month to not pay the invoice and ask Tan, Brown & Russ Co. to move on without the 2017 work papers.
“If we don’t handle this right now, we’re kicking this can down the road. This is a delay tactic to not get our audits done,” Elder said.
Mayor Ken Featherstone noted that Scott Hodges, with the new firm, noted in an email that recreating the 2017 audit would take more time and money, and he was doubtful some of the papers could be replicated from scratch.
“He mentioned that he needs that information from Brown & Ewing,” Featherstone said.
Elder asked Merchant for documentation of the communication she has had with Brown & Ewing since the board terminated the contract with the firm.
“We don’t have anything from them,” she said. “That’s my problem with them.”
Featherstone later concurred by stating that Brown & Ewing provided no evidence it had completed the 75% of the 2018 audit like was claimed on the invoice.
“It has to go right along with that invoice,” he said. “In case we’re ever audited, we can’t just show the auditor the invoice and no work that accompanied it.”
The board did vote to allow Merchant to open negotiations, with $10,000 being the initial offer.
Elder was not thrilled with that number.
“I think that’s low-balling,” he said.
Ward 2 Alderman Darrell Simpson said the firm simply needs to show the work that it completed on the 2018 audit.
“They’re holding us hostage. We pay our bills, but we need to know what we’re paying for,” he said.
