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ORANGE CAUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 14, 2004 <br />Action Agenda <br />Item No. <br />SUBJECT: Progress Report from Robert Segal, CPA, for School Efficiency Study <br />DEPARTMENT: County Manager <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />None <br />INFORMATION CONTACT: <br />Rod Visser, ext 2300 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To receive an update from the firm of Robert S. Segal, CPA, PA regarding <br />preliminary findings from an examination of opportunities for achieving budgetary efficiencies in <br />the operations of the two school systems. <br />BACKGROUND: At the September 27, 2004 joint work session of the three governing <br />boards, there was discussion and general agreement that it would be beneficial to retain the <br />services of the Robert Segal CPA firm to examine County and school finance records to <br />determine if additional savings could be achieved. As was reported at the BOCC's regular <br />meeting on September 21, 2004, the County and both school systems have taken a number of <br />significant steps in recent years to enhance revenue collection and to reduce expenditures <br />through more advantageous contracting and spending approaches. The Segal firm was <br />engaged several years ago by all three governing boards for revenue enhancement/expense <br />reduction analysis, and succeeded in producing hundreds of thousands of dollars in savings <br />and additional revenue for all three entities. <br />The Segal firm is conducting work based on individual agreements with each of the governing <br />boards to authorize examination of each entity's financial records and to provide far <br />remuneration should the firm succeed in identifying operational efficiencies of interest to the <br />governing board. The Segal firm has concentrated its efforts during November and early <br />December on the two school systems. Bab Segal will attend the December 14 meeting and <br />provide a brief verbal report on preliminary findings thus far. <br />FINANCIAL IMPACT: Under the agreement, the Segal firm would retain 50% of all savings <br />achieved during the first 24 months after recommendations are accepted by the Board, and <br />actual savings are achieved and documented. There is no upfront cost to the contract. Other <br />than any retainer the County might pay for specific efficiency examinations that do not involve <br />