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According to the Office of Procurement and Property Management, when the decision was made to change auditors, a draft RFP was prepared.  However, in lieu of the RFP, a letter went to the "Big Eight" from the Treasurer to elicit interest.  The responses were reviewed by the Treasurer and internal staff, which recommended Coopers & Lybrand to the Executive Committee.  The Treasurer signed the agreement with Coopers & Lybrand.

[[underlined]] Recommended Selection Process [[/underlined]]

The Office of the Procurement and Property Management recommends that in the future, the Institution follow standard procurement procedures.  Requirements would be prepared by the Treasurer and/or the Audit and Review Committee, translated into an RFP by OPPM, responses garnered and reviewed by an Evaluation Committee, appointed from staff and Regents to rank the candidates.  It is anticipated the Evaluation Committee would include Regent members of the Audit and Review Committee.  The highest ranked candidates might be called upon to make presentations.

The ultimate contract would be negotiated by OPPM.  The length of the contract with the selected auditor would be at the discretion of the Audit and Review Committee.  The survey conducted by the Institution found that, with the exception of cities and two universities, external auditors operated without a term contract but rather at the pleasure of the governing board.  A new agreement was/is signed each year in conjunction with acceptance of the annual audit plan.

The Treasurer on a previous occasion suggested that if the Institution wanted to be "squeaky clean" it would exclude from the bidding process its prior auditor, Peat Marwick; its current auditor, Coopers & Lybrand; and Price Waterhouse, which is helping to implement both the payroll/personnel system and the future accounting system.  That position should probably be reconsidered in light of comments offered during the interviewing process.  The City of New York was the only interviewee to exclude the incumbent from bidding.

Moreover, the majority of the colleges, universities, and museums surveyed are using Coopers & Lybrand, suggesting it to be the premier firm servicing like organizations.

[[underlined]] Criteria for Selection [[/underlined]]

An independent public accountant seeks to determine whether financial statements issued by the institution are fair representations of its financial position, whether data are accurate and accounting nomenclature proper, and whether the statements are the end results of procedures that are generally accepted and consistent with similar previous statements.  Accordingly, the examination includes those tests and other auditing procedures considered necessary for the purpose.  Such an examination is concerned with the overall reliability of accounting records, the integrity of management, the soundness of internal control, the effectiveness of the institution's program of internal auditing, and the