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El <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 21, 1991 <br />SUBJECT: 1990 -91 Audit Contract <br />DEPARTMENT: Finance <br />ATTACHMENT(S): <br />Action Agenda <br />Item No. <br />PUBLIC HEARING YES: NO: Y <br />INFORMATION CONTACT: Ken Chavious <br />Ext 2453 <br />Contract TELEPHONE NUMBER - <br />Hillsborough - 733 -8181 <br />Chapel Hill - 968 -4501 <br />Mebane - 337 -3031 <br />Durham -- 688 -7331 <br />PURPOSE: To consider awarding a contract to develop the audit for the <br />fiscal year ending June 30, 1991. <br />I <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 1990 was performed by Deloitte and <br />Touche. In previous years the audit was performed by Touche <br />Ross, which merged with firm of Deloitte, Haskins, and Sells <br />in 1989 to form the firm of Deloitte & Touche. Both firms had <br />excellent reputations in the past, and the quality of service <br />provided to the county last year was not affected by the <br />merger. The fees are also very competitive with other firms <br />which perform audits of governments such as Orange County. <br />The quality of work can be attested by the fact that the <br />County's Annual Financial Statements have received national <br />recognition from the Government Finance Officer's Association <br />for the past several years. <br />Deloitte & Touche's proposed contract amount for the <br />Comprehensive Annual Financial Report and certification of tax <br />levy is $30,500, an increase of $1,900 from 1989 -90. The fee <br />for performance of the single audit of grant funds is $16,500, <br />an increase of $3,600 from 1989 -90. The increase in costs for <br />the single audit can be attributed to changes in audit <br />requirements made by the State and Federal governments. These <br />changes require the auditors to indivdually test more programs <br />as well as do more compliance testing than in previous years. <br />The majority of costs associated with the single audit are <br />recouperated through indirect cost reimbursements received <br />from State and Federal grantors. <br />RECOMMENDATION(S): Approve contract for fiscal year 1990 -91 and authorize the <br />Chairman to sign. <br />