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ORANGE COUNTY 1 <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> ACTION AGENDA ITEM ABSTRACT Item No.-V.=---b <br /> Meeting Date: June 26, 1995 <br /> SUBJECT: 1994-95 Audit Contract <br /> ------------------------------ ---------------------------------- <br /> DEPARTMENT: Finance PUBLIC HEARING YES: NO: X <br /> ------------------------------- ---------------------------------- <br /> ATTACHMENT(S) : INFORMATION CONTACT: Ken Chavious <br /> Ext 2453 <br /> Contract TELEPHONE NUMBER- <br /> Engagement Letter Hillsborough - 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> ---------------------------------------------------------------------- <br /> PURPOSE: To consider awarding a contract to perform the audit for the <br /> fiscal year ending June 30, 1995. <br /> BACKGROUND: Local governments are required by G.S. 159-34 to have an <br /> annual audit of their financial records by an independent <br /> auditor. The audit for 1994 was performed by Deloitte and <br /> Touche, an international accounting firm with an excellent <br /> reputation in the field of Governmental Accounting and <br /> Auditing. <br /> Deloitte & Touche has proposed a contract to perform the 1994- <br /> 1995 audit for a fee of $54,500. The audit costs consist of <br /> $32,500 for the Comprehensive Annual Financial Report (CAFR) <br /> and certification of tax levy, and $22,000 for the Single <br /> Audit of grant funds. The Single Audit is required by the <br /> State and Federal goverments as a condition for receipt of <br /> grant funds. <br /> The proposed costs reflect an increase of $2,000 or 3.8% over <br /> the previous year. The increase in costs results from the <br /> additional work required of the auditors to insure the <br /> County's compliance with the new Governmental Accounting <br /> Standards Board (GASB) recommendations and additional grant <br /> programs which will require more review by the auditors to <br /> comply with the Single Audit Act. The auditors will be <br /> indivdually testing these programs as well as performing more <br /> compliance testing than in previous years. The majority of <br /> costs associated with the Single Audit are recouped through <br /> indirect cost reimbursements received from State and Federal <br /> grantors. <br /> RECOMMENDATION(S) : The manager recommends that the Board approve the audit <br /> contract with Deloitte & Touche for fiscal year 1994-95 and <br /> authorize the Chair to sign. <br />