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ORANGE COUNTY <br />BOARD OF COMMISSIONERS . <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 5, 2001 <br />Action Agenda <br />Item No. <br />SUBJECT: Contracts with Cherry, Bekaert 8~ Holland for Financial Auditing Services <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Audit Engagement Letter and Contract <br />GASB 34 Implementation Engagement <br />Letter <br />INFORMATION CONTACT: <br />Ken Chaviaus, ext 2453 <br />TELEPHONE NUMBERS: <br />Hillsborough <br />Chapel Hill <br />Durham <br />Mebane <br />732-8181 <br />868.4501 - <br />688-7331 <br />336-227-2031 <br />PURPOSE: To consider approving contracts with Cherry, Bekaert, & Holland, LLP for the <br />provision of audit services for the fiscal year ending June 30, 2001 and for assessment and <br />initial implementation services associated with Governmental Accounting Standards Board <br />(GASB) Statement 34. <br />BACKGROUND: In the spring of 1997, County staff pursued a Request for Proposal (RFP) <br />process far selection of an audit firm. The end result of that process was the BOCC's approval <br />of the selection of Deloitte & Tauche as the County's auditors. During the last RFP process, <br />staff informed the Board that, in accordance with recommended financial practices, the RFP <br />process for audit services would be repeated every three to five years. The fiscal year ending <br />June 30, 2000 marked the fourth year with Deloitte & Touche, which represented cone-year <br />extension of the original three-year commitment. After a reassessment. of the past four years, <br />staff decided to pursue a RFP process far the audit for the fiscal year ending June 30, 2001. <br />Similar to the 1997 auditor selection process, an Audit Committee was formed in early March <br />2001 for the purpose of assisting the Finance Director in matters related to the selection of the <br />County's auditors as well as reviewing other audit related matters throughout the annual audit <br />process. This committee consists of the Finance Director, the Director of Purchasing and <br />Central Services, the Director of Revenue, and the Assistant County Manager. It is importan_ t to <br />note that the RFP process is not necessarily done to make a change in audit firms, but to <br />ensure that the level and quality of services received by the County are adequate when <br />compared to what others firms may have to offer. <br />A RFP was drafted, reviewed and approved by the Committee in early April, 2001. The RFP <br />requested responses to various items specifically related to performing audit services for the <br />County. In addition, audit firms were asked to provide information on auditing services related <br />to the implementation of GASB 34 which would impact the County next fiscal year ending June <br />