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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 17, 2005 <br />Action Agenda , <br />Item No.,~- I <br />SUBJECT: Audit Contract for the June 30, 2005 Fiscal Year <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Contract and Engagement Letter <br />INFORMATION CONTACT: <br />Ken Chavious, ext 2453 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider awarding a contract to Cherry, Bekaert & Holland, Certified Public <br />Accountants, for the provision of audit services far the fiscal year ending June 30, 2005, <br />BACKGROUND: "The Local Government Budget and Fiscal Control Act" requires all units of <br />government in the State to undergo an annual audit, During the spring of 2001, County staff <br />pursued the most recent request for proposal (RFP) process for financial audit services.. Staff <br />recommended, and the Board approved, the proposal submitted by Cherry, Bekaert & Holland, <br />Certified Public Accounts, The RFP stated that the County would contract with the successful <br />firm far a period of three to five years. The 2004 audit marked the fourth year of working with <br />this firm. <br />Staff has been very pleased with the work performed an the audits for the past four fiscal years. <br />The auditors performed their work in a professional and timely manner and worked extremely <br />well with staff in the completion of the audit and production of the Comprehensive Annual <br />Financial Report (CAFR). In addition, a significant amount of service and advice has been <br />provided outside of the audit process over the years. The overall audit casts paid by the County <br />for the past four years have been very competitive, The cost proposed for the 2005 audit <br />remains competitive and comparable to governments similar in size to the County, Cherry, <br />Bekaert & Holland has proposed a contract for the 2005 audit that reflects a 5% increase over <br />the previous year, This increase is mainly the result of additional audit work required in the area <br />of compliance auditing or the "single audit" related to Federal and State grants, <br />Staff desires to continue the relationship with Cherry, Bekaert & Holland for the 2005 fiscal year <br />audit and re-evaluate the contract next spring with the possibility of pursuing a request for <br />proposal process. <br />FINANCIAL IMPAGT: The fee proposed for the 2005 audit is $71,000, Funds to cover the <br />audit costs will be included in the 2005-2006 Central Services budget, <br />