Munhall council hires accounting firm to perform overdue audits
Munhall officials have chosen an accounting firm to perform long overdue audits for 2011 and 2012 along with the upcoming report for 2013.
Council unanimously approved the hire of Mark C. Turnley, CPA, at a flat rate of $6,500 per audit after opening and reviewing two other bids during a meeting Wednesday.
Former borough manager Matt Galla — who was released from jail earlier in the day on charges of allegedly embezzling $230,000 from taxpayers — allegedly lied about completing the 2011 and 2012 audits, according to a criminal complaint filed by a detective with the Allegheny County District Attorney's Office. Those missing audits cost the borough more than $354,000 in RAD money.
Castle Shannon-based Hosack Specht Muetzel & Wood completed the last known borough audit in 2010, and although councilors expressed a desire to remain with the firm due to its prior knowledge of Munhall's situation, the company's proposed rates were too high.
“They estimated their fees to range between $20,000 and $25,000 per year,” said interim borough manager Harry Faulk. “And the second proposal from RC Holsinger Associates Inc. was $9,200 for the 2011 audit, $9,300 for the 2012 audit and $9,300 for 2013.”
Faulk said the lowest bid from Turnley included a client list consisting of two cities, 15 boroughs, 15 townships and four councils of governments.
Council president Dan Lloyd said regardless of the auditor, the final results should be the same.
“We know that with what's happened, what's transpired, that we're going to get a qualified report no matter who does the audit, whether you pay $25,000 or $6,500,” he said. “I spoke to Mr. Turnley and I also spoke to a couple other auditing firms that said his work is good and on time. My feeling is to take the lowest responsible bidder.”
The borough now has until May 31 to complete the audits or risk losing further contributions from the county.
Tim Karan is a staff writer for Trib Total Media.