Agenda - 03-01-2005-5g - Laserfiche WebLink

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HEL,PLNG GOVERNMENT SERVE ~ dE PEOPLE° January .31, 2005 Mr. Ken Chavious Orange County Finance Director 208 S. Cameron Street Hillsborough, North Carolina 27278 Dear I{en: Last Thursday, we talked about the News and Observer article that had several unfavorable things to say about MAXIMUS after we were awarded a contract to do an efficiency study for the Town of Chapel Hill. The following day, a more favorable article appeared in the Durham paper with comments from some very satisfied clients of MAXIMUS You indicated that your board members were holding off on approving the Cwo contracts that we have before them (for the FY 04 cost allocation plan and the FY 04 EMS Medicaid Cost Report) until more information was provided that addressed the issues in Che article. I am enclosing the letter' wtitCen by Rachael Rowland, our Vice President of Government and Public Relations, for the Town of Chapel Hill.. The letter offers quite a biC of insight and explanation into the allegations in the article. I would like to add that Orange County has been a valued client of ours in the North Carolina office for at least 20 of Che 26 years that we have been prepay°ing cost plans in the State. I have been preparing cost plans and related studies in NC for more than 23 years and have prepared the last six plans for the County personally- I also prepared a pro forma full cost plan to identify proposed overhead for the Landfill when the county took that over and have prepared the County's EMS Medicaid Cost Report for the four years that that project has been in existence. The last cost plan identified in excess of $1.6 million in indirect costs for Social Services and Child Support. The county realizes approximately 50% reimbursement for those costs. You also know that, as part of our fee, I am always available to answer questions and offer expertise or advice when issues arise during the year. Currently, we prepare cost plans for more than 100 counties, cities, and state agencies in North Carolina and EMS reports for 25 counties.. We also assist many of our clients with rate calculations for health grants and with calculating projected reimbursements for new social services buildings, We are totally dedicated to preparing quality work on a timely basis for our clients each year. I understand how what was published would cause you, your manager, and the board concern. I sincerely hope that this letter, Rachael's letter, and an internal review of t 100 LOCGL'Ii COllRI', SUI7 f D-100 ~ RAL PIGFI, NC 27609 ~ 919 876.8042 ~ 919 878.8592 PAX ~ W WW MAXIMUS COM