CB settles bill with auditor

By Alexander Rich, Staff Writer
Friday, March 23, 2007 | No comments posted.

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COOS BAY - The city of Coos Bay closed its account with Wall & Wall P.C. on Tuesday by paying a negotiated invoice of $8,500.

Under discussion in executive sessions for several months, the final settlement was approved by a 4-2 vote.

The Coos Bay firm had served as the city's auditor since 1999 without incident until last October, when a series of events led to accusations of improper behavior on the part of the city as well as the auditor.

The principal auditor, Rob Wall, spent several months trying to overcome what he thought were actions by Finance Director Janell Howard that undercut his objectivity. After three months, he decided he could not regain his independence and informed the City Council of his decision to disengage from his contract.

The City Council previously paid Wall & Wall about $11,000, but in January, it received an $18,000 invoice, which included the remainder of the original contract and bills for supplemental work. The city's attorney, Nate McClintock, was asked to negotiate a settlement, which was presented to the council on Tuesday.

“I think this is a reasonable agreement and it can allow the city to put this behind us,” McClintock said.

Mayor Jeff McKeown said he understood it is common practice to pay auditors for work rendered even if an audit cannot be completed. He was diplomatic in his remarks about the audit ordeal.

“We probably didn't handle the situation as well as we should have but we need to move on,” he said.

Pauly Rogers and Company P.C., which was selected to complete the city's audit after Wall & Wall disengaged, is scheduled to present its findings at the next council meeting, April 3.

In other business Tuesday, the council:

n asked staff to arrange a contract with Pauly Rogers to perform the city's audit for the next two years. The Tigard firm provides a discounted fee when it is hired for a three-year term. Councilors indicated they would be interested in hiring a local firm once the contract with Pauly Rogers is up.

n heard comments from police Chief Eura Washburn, who said the weekend's cage fighting event at the National Guard Armory “turned out well from a law enforcement perspective.” She said the absence of alcohol and thoughtful self-patrolling by the event's organizers contributed to the outcome. Washburn suggested the city should continue to explore how it might regulate future events. Councilor Roger Gould agreed, saying he would like to have residents share their views about the sport.
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