Agenda - 06-26-1996 - VIII-C - Laserfiche WebLink

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r 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No._V.M7--G ACTION AGENDA ITEM ABSTRACT Meeting Date: June 26, 1996 SUBJECT: 1995-96 Audit Contract DEPARTMENT: Finance PUBLIC HEARING: YES: NO: X ATTACHMENT(S): INFORMATION CONTACT: Contract Ken Chavious Ext. 2453 Engagement Letter TELEPHONE NUMBER: Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 - PURPOSE: To consider awarding a contract for the annual audit for the fiscal year ending June 30, 1996. BACKGROUND: Local Governments are required by G.S. 159-34 to have an annual audit of their financial records by an independent auditor. The audit for the fiscal year ended June 30, 1995 was performed by Deloitte and Touche, an international accounting firm with an excellent reputation in the field of governmental accounting and auditing. Deloitte and Touche has proposed a contract to perform the 1996 audit for a fee of$58,250. The audit costs consist of$33,250 for the regular audit of the financial statements,procedures, and certification of tax levies,and$25,000 for the single audit required by the Federal and State Governments for grant funds. The cost of the regular audit reflects an increase of $750 over the previous year while the cost of the single audit increased$3,000. The increased costs in the single audit area are the result of funding increases in grant programs,such as Smart Start,as well as,new grant funds received in other human services areas. The additional costs associated with the single audit will be paid by administrative funds associated with each grant and indirect cost reimbursements from the grantors. There will be no additional cost to the County except for the$750 mentioned above for the regular audit. Deloitte and Touche have done excellent work for the County in recent years,and staff strongly recommend approval of the proposed contract for the audit for the fiscal year ended June 30, 1996. Staff also believe that it is prudent to periodically assess alternatives for required audit services, and to that end, staff intend to solicit requests for proposals for audit services for the next fiscal year. Staff will prepare and distribute RFPs in late Fall 1996, evaluate responses from auditing firms,and make recommendations to the Board of Commissioners in Spring 1997 concerning which firm should perform audit services for the fiscal year that will end June 30, 1997. RECOMMENDATION(S): The Manager recommends that the Board approve the Contract with Deloitte and Touche for the fiscal year ending June 30, 1996 and authorize the Chair to Sign.