Agenda - 03-22-1982 - Laserfiche WebLink

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'UC1839 cFIAE. COUNTY' J.1-1 BOARD OF actioo �=naa. Item No. g' � ACTION IAGE,:a; aaSTRKT MEETzsC; DATE March 2?. 198; Audit Contract for Year Ending June 30,, l982 Department: County Manager --- Public H=aring: yes X no 'r�r.zmation Contact: Ken Thompson Attachment(s): Yes' PhooeMniDer: 732-8181 ext. 501 PURPOSE: To consider selecting an accounting firm to do the FY 1981-82 audit. NEED: General Statute 159-34 requires each local government to have its accounts audited by an independent auditor after the close of each fiscal year. This way a unit's financial procedures and internal controls can be tested as to accuracy and reliability and whether they are in conformity with generally accepted accounting principles. The audit concludes with a report that contains financial statements showing the unit's financial position together with the auditor's opinion and comments thereon. There is normally also a management letter which makes suggestions for improving procedures and control. The same statute establishes certain requirements which among others include: 1. The auditors must be selected by and report to the Board. 2. The Board may select any certified public accountant or accountant certified by the Local Government Commission. 3. The audit contract must be in writing, setting out the terms and conditions including the scope of the audit' The audit contract must be submitted to and approved by the secretary of the Local Government Commission. Likewise, the auditor's bills must be submitted for the secretary's approval before they may be paid. On March 2, 1982, requests for proposals for the County's annual audit were submitted to the following firms: 1. Peat, Marwick, Mitchell & Company 2, Thomas, Knight, Trent, King & Company 3. John C. Muse Company 4. Touche Ross & Company All four firms responded promptly with their proposals and met with the Finance Director to discuss the request. I have analyzed the proposals per our criteria set out in our request and that analysis is attached to aid in your selection. IMPACT: Orange County needs to contract with an audit firm that has a demonstrated understanding of the needs of Orange County. The prior experience of the firm and reputation are very important parts of the evaluation process. I believe each of these firms can provide good service to Orange County. The cost effectiveness of the fees when compared to the expected product appears to be the determining factor as evidenced by the attached analysis. RECOMMENDATION: Award contract to Thomas, Knight, Trent, King & Company or Touche Ross & Co,