Orange County NC Website
Browse       Search
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 20, 2017 <br /> Action Agenda <br /> Item No. 8-I <br /> SUBJECT: Amended Contract Regarding Fee for FY 2016-2017 Audit <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Amended Contract Gary Donaldson, (919) 245-2453 <br /> PURPOSE: To approve a contract amending the fee for the FY 2016-17 audit by Mauldin & <br /> Jenkins, PLLC from $78,500 to $84,500 due to increased State audit requirements for the <br /> Medicaid audit program. <br /> BACKGROUND: An audit of Orange County's financial records and transactions is required <br /> each year. Orange County previously contracted with the audit firm of Mauldin & Jenkins, PLLC <br /> to perform the County's audits for a three year period beginning last year. The FY 2016-17 <br /> audit will be the second year of the three-year contract. Audit contracts and any amendments <br /> require Board approval, and North Carolina General Statute 159-34 requires changes to be <br /> approved by the Local Government Commission (LGC) after Board approval. <br /> The audit fee change is due to an increase in the scope for the Medicaid audit program. For FY <br /> 2015-16 there were four (4) basic requirements on each Medicaid participant's file and five (5) <br /> financial verification tests. For the FY 2016-17 audit procedures, the new State guidance has <br /> eleven (11) basic requirements and ten (10) financial verification tests. Additionally, the State <br /> has required an increase in the sample size. <br /> The audit fee increase addresses additional time for the auditors to review, examine and test the <br /> Orange County Department of Social Services (DSS) state reporting and reconciliation of <br /> federal and state grant awards and program expenditures. <br /> SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated <br /> with this item. <br /> FINANCIAL IMPACT: The $6,000 increase is included in the Manager's Recommended FY <br /> 2017-18 budget. <br /> RECOMMENDATION(S): The Manager recommends that the Board approve the amended <br /> contract and authorize the Chair to sign. <br />