Agenda - 06-02-1997 - 9b - Laserfiche WebLink

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2 • Experience levels of both the individuals and the firm with County government audits; • Audits of Counties of comparable size and program type; • Ability to provide services which are required by the county from time to time and may fall outside the audit process; and • Other factors,such as degree of automation which would provide a more efficient means for producing the audit schedules and work papers, as well as the Comprehensive Annual Financial Report(CAFR). It should be noted that the award of proposals for professional services is based on the criteria associated with the expected quality of service, and not on price. While price may be a factor in the evaluation, it is not the determining factor. After considerable deliberation,the Audit Committee agreed that two of four firms would best meet the County's needs. However,the committee recommends that Deloitte-Touche be selected for the following reasons: • Best overall experience with audits of County governments; • The on-site individuals had more County audit experience than other firms; • This firm demonstrated extensive knowledge regarding the new standards for issues related to the single audit and schedule of financial assistance. Single audit changes will be reflected in the current year's audit. Further,there are significant changes on the horizon as it respects reporting in compliance with the Government Accounting Standards Board(GASB) requirements. The audit firm selected will play a key role in assisting Orange County in complying with, and implementation of,the new standards. • This firm's ability to provide automation capabilities was the best of all firms interviewed. It will be possible for the County to produce its schedules and work papers in significantly less time by using software that has been developed by Deloitte Touche and which will be made available to the County at no charge. This software will be available throughout the year to allow County Staff to produce reports which can be used as management tools(e.g. expenditure and revenue trends, cash flow projections, investment interest allocation). • Although the Audit Committee did not place undue emphasis upon the historical knowledge held by Deloitte Touche,their experience in working with Orange County will undoubtedly be advantageous within the next year as we pursue the November 1997 bond referendum,as well as implementation of the Strategic Automation Plan initiative regarding replacement of the County's business system software. Deloitte& Touche's proposed price for the 1996-97 audit is $56,300. The County's agreement with this firm for the 1995-96 audit was$58,250. The Board is requested to approve a contract for a one- year engagement,with the intent to renew annually for three to five years. As a matter of policy,the Audit Committee has recommended that the RFP process be repeated every three(3)to five(5) years. RECOMMENDATION(S): The Manager recommends that the Board award the audit contract for the fiscal year ending June 30, 1997 to Deloitte&Touche, LLP, in an amount not to exceed $56,300; and authorize the Chair to sign on behalf of the Board.