Agenda - 04-15-2008-4h - Laserfiche WebLink

Browse Search

ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 15, 2008 Action Agenda Item No. 4 ' ~1 SUBJECT: Contract for Documentation of Orange County Fiscal Processes DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Engagement Letter/ Contract with Cherry Gary Humphreys, 245-2453 Bekaert & Holland PURPOSE: To consider approving a contract to the firm of Cherry, Bekaert & Holland for the provision of accounting services to document-the County's major systems in preparation for the audit. BACKGROUND: The new auditing standards place a responsibility on the organization being audited as well as the auditor. It is incumbent upon the organization being audited to provide documentation of all of the major operational systems which might have an impact on the financial results being reported on. The documentation requirement goes well beyond what has been required for audits prior to the new audit standards. This requirement is being addressed by organizations in various ways, some with significant internal audit functions and .internal accounting staffs that are able to address it in house. Most organizations, however, have had to staff this project by either contracting with a private firm or hiring additional staffing on a temporary basis. At this point, the timeframe to complete this is extremely short. This task needs to be completed for the beginning of the audit process in late June/early July, making time of the essence. The firm of Cherry, Bekaert & Holland was requested to provide a proposal to provide this work. Cherry, Bekaert & Holland is familiar with the Orange County organization as the County's previous auditors. The firm has a great deal of expertise in handling this type of engagement in general and has the staffing capacity to respond and provide the service within the tight timeframe needed. The firm has also coordinated with McGladrey & Pullen, the County's current auditors, in determining nine major processes which are to be documented. Cherry, Bekaert & Holland proposed a fee of $60,000 which represents a discount of approximately 30% from their standard fees. FINANCIAL IMPACT: The proposed fiscal impact for fiscal year 2007/2008 is $60,000 as described above. Funding for this action was included in the FY2007-08 Central Services professional services account. RECOMMENDATION(S): The Manager recommends that the Board approve the contract with Cherry, Bekaert & Holland to provide systems documentation services as outlined in the proposal and authorize the Chair to sign the contract.