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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No. V3IL-Cr <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 6, 1994 <br /> SUBJECT: 1993-94 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, 1994. <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 1993 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 1993- <br /> 1994 audit for a fee of $52,500. The audit costs consist of <br /> $31,500 for the Comprehensive Annual Financial Report (CAFR) <br /> and certification of tax levy, and $21,000 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. In order to meet the Single Audit requirements, <br /> the auditor must perform financial, as well as, compliance <br /> testing as established by audit guidelines issued by the <br /> grantors. The proposed costs reflect an increase of $2,700 <br /> over the previous year. <br /> The audit costs associated with the CAFR, tax levy and <br /> internal control structure have not increased for several <br /> years. This is due mainly to the work undertaken by the <br /> Finance Department staff in the preparation of all statements <br /> and schedules, many of which used to be prepared by the <br /> auditors. The increase can be attributed to 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. <br />