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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 19, 2008 <br />Action Agenda <br />Item No. <br />SUBJECT: Cost Allocation Plan Contract <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Contract <br />INFORMATION CONTACT: <br />Howard Fitts, 245-2452 <br />PURPOSE: To consider a contract for the preparation of the. County's 2007 Cost Allocation <br />Plan. <br />BACKGROUND: Office of Management and Budget Publication A-87 requires counties <br />receiving federal funds to develop a Cost Allocation Plan annually. Preparation of this plan <br />qualifies the County to receive reimbursement for local resources used to administer certain <br />State and Federally funded programs. In addition, the Cost Allocation Plan is a tool used by <br />staff in developing the full cost of providing certain services. <br />Staff is recommending that the County contract with Tim McKinnie & Associates, Inc. <br />to prepare the cost plan for 2007. This firm's experience with counties in the state of North <br />Carolina is very extensive. Tim McKinnie & Associates currently prepares cost plans for 21 <br />counties in the State of North Carolina. In addition, the principal to be assigned to the County <br />has a vast knowledge and experience in cost plan preparation. Also, the cost proposed for the <br />engagement is comparable to the County's experience over the past several years. In fact, the <br />fee of $8,000 quoted by Tim McKinnie & Associates is the same as last year cost plan fee <br />preformed by Tim McKinnie & Associates. The fee quoted is $1,200 less than the County paid <br />for the 2005 cost plan performed by another firm. The County had a successful engagement <br />with Tim McKinnie & Associates last year. <br />FINANCIAL IMPACT: As mentioned above, the cost of the contract for the 2007 Cost <br />Allocation Plan is $8,000, which is the same as last year and is $1,200 less than the <br />2005 Cost Plan. Funds to pay for the current year contract are budgeted in Central Services. <br />General fund revenues from the State and Federal governments and internal charge backs <br />resulting from the Cost Allocation Plan have been in excess of $700,000 annually over the past <br />several years. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the contract with <br />Tim Mckinnie & Associates, Inc. and authorize the Chair to sign.