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The Kennedy Center for the Performing Arts changed auditors last year after twenty years with its previous firm, a sizeable but non-"Big Eight" firm. The Center began with an RFP but the process was aborted in favor of a Board decision to engage Arthur Anderson. The Nature Conservancy also recently sought out a "Big Eight" after twenty-five years as the client of a local firm, picking Coopers & Lybrand.

The National Geographic, the Cocoran, and the National Gallery of Art have been and continue to be "Big Eight" clients. The Geographic has been with its external auditor for twenty years. While the matter of rotation comes up every few years, there is no rotation policy. The National Gallery of Art, on the other hand, changed auditors at the beginning of FY 1988 after fifty years with one firm. The Treasurer informally screened potential candidates to three, introduced two to the appropriate Board member, and the selection of Coopers & Lybrand was made. The National Academy of Sciences has been with its current auditor over twenty years.

[[underline]] Major Museums Outside the Washington Area [[/underline]]

Of ten major art and science museums and one major library surveyed, all but two have utilized the current auditor for more than ten years. Of the eight, two have had the same audit firm for more than fifteen years, three for more than twenty-five years. The Museum of Modern Art in New York issued an RFP two to three years ago; the long tenured incumbent was retained. 

The one museum that did change auditors did so for cause, believing that the fees charged by its previous firm of twenty years were "usurious." The replacement firm was preferred by the Financial Officer and is now in its fourth years. The New York Public Library also changed auditors about five years ago as part of a general housecleaning of the whole institution that saw major changes in personnel, structure, public stance and general financing.

It is interesting to note in this context that the tenure of outside auditors among those contacted exceeds that of the respondents. Many of the fiscal officers surveyed were relatively new to their positions.

[[underline]] Colleges and Universities [[/underline]]

Twelve colleges and universities were called including three within the Washington area. The group as a whole was even more loyal to their external auditor than the museums. The average tenure of the outside audit firms for eight of the twelve schools is over thirty years.

Two of the three schools that have changed audit firms have done so because of Board discomfort with the longevity of service of their prior audit firms. Both issued RFPs; the decision for the new firm was made competitively as judged by the Board and staff. The third school selected a new auditor after losses which appear to have gone undetected or at least unreported over some period of time. The University of Virginia is audited by the Commonwealth.