Agenda - 05-03-2007-4d - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 3, 2007 Action Agenda Item No. q-- -C~ SUBJECT: 2007 Audit Contract DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Audit Engagement Letter and Contract Ken Chavious, 245-2453 PURPOSE: To consider awarding a contract for the provision of audit services for the fiscal year ending June 30, 2007. BACKGROUND: In the spring of 2001,County staff pursued a request for proposal process for selection of an audit firm. The end result of this process was the selection of Cherry Bekaert and Holland as the County's auditors., During the last RFP process staff informed the Board that, in accordance with recommended financial practices, the RFP process, for audit services would be repeated every three to five years. The fiscal year ended June 30, .2006 marked the fith year with Cherry Bekaert, which represented atwo-year extension of the original three year commitment. During the presentation of the audit contract for the 2006 fiscal year last spring, the Board recommended that staff pursue a RFP process for the 2007 audit. Similar to the 2001 auditor selection process, an Audit Committee was formed in early March 2007 for the purpose of assisting the Finance Director in matters related to the selection of the County's auditors. This committee consists of the Finance Director, the Director of Purchasing and Central Services and the Budget Director. It is important to note the RFP process is not necessarily done to make a change, but to insure that the level and quality of services received by the County is adequate when compared to what others firms may have to offer. An RFP was drafted, reviewed and approved by the Committee. The RFP requested responses to various items specifically related to performing audit services for the County. The RFP was sent to 5 firms most noted for the performance of governmental audits. The committee received responses from only one firm. Inquiries of other firms yielded similar responses that included their ability to meet the County's timeframes citing other audit commitments. One of the firms stated that it was moving away from County audits due to the complexity and the level of staffing required and felt that their fees would not be competitive with smaller firms. There is noticeable trend in the audit industry of the larger firms moving away from governmental audits. The incumbent firm also chose not to respond due to similar reasons.