In This Issue
    • UPDATE:
      Agreed Upon Procedures = Agreeable Savings
      An Initiative Launched by Auditor of State Mary Taylor Earlier this Year

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UPDATE:
Agreed Upon Procedures = Agreeable Savings

By Jeannie M. Foley - Public Affairs Staff Writer

An initiative launched by Auditor of State Mary Taylor earlier this year has already saved hundreds of smaller government entities in Ohio nearly $500,000 in audit costs, and that’s just for starters.

As detailed in the Spring 2010 edition of Best Practices, this new program offers qualifying entities an attractive alternative to a standard financial audit.

EXAMPLES:

    • Village of New Middletown (Mahoning County) saved more than $7,000 with an AUP – a better than 40 percent savings.

    • Village of Hills and Dales (Stark County) saw savings of more than $5,000 – a 60 percent reduction in costs

    • Ohio Township (Gallia County) reduced their costs by more than $3,000 - a better than 70 percent savings

    • Jackson Township (Champaign County) saved more than $3,000 - a more than 60 percent reduction in costs

The new option is a less costly engagement known as an Agreed Upon Procedure (AUP). To date, more than 300 smaller government entities – including townships, villages, public libraries and agricultural societies – have qualified for and chosen an AUP. About 100 additional AUPs are now being completed, promising an even greater total savings when all the results for 2010 are in.

While individual results have varied, the total savings to clients who chose AUPs are nearly $500,000 when compared to the previous financial audit. On average, costs have been reduced approximately 40 percent for those who have opted for an AUP, and in some cases the savings are even higher.

In each example on the right, savings are computed by comparing this year’s AUP cost to charges for the previous financial audit. For more details about the AUP option, including eligibility requirements, see the Spring 2010 Best Practices newsletter or Auditor of State Bulletin 2009-012.