Orange County NC Website
Browse       Search
ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 8, 2002 <br /> Action Agen a <br /> Item No. <br /> SUBJECT: Audit Contract for the June 30,2002 Fiscal year <br /> DEPARTMENT: Finance PUBLIC HEARING: (YIN) No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Ken Chavious, ea. 2453 <br /> Contract and Engagement Letter <br /> TELEPHONE NUMBERS: <br /> Hillsborough 7324181 <br /> Chapel Hill 966J 01 <br /> Durham 688-7331 <br /> Mebane 336-227-2031 <br /> PURPOSE: To consider awarding a contract to Cherry, Bekaart& Holland, Certified Public <br /> Accounts, for the prevision of audit services for the fiscal year ending June 30.2002. <br /> BACKGROUND: During Me spring of 2001, County staff pursuetl a request for proposal (RFP) <br /> process for financial audit services. Staff recommended, and the Board approved, the proposal <br /> submitted by Cherry, Bekeert & Holland, Certified Public Accounts. The RFP stated that the <br /> County would contract with the successful firm for a period of at least three years. The 2002 <br /> audit will mark the second year of this commitment. In addition to the annual audit, the Boats <br /> approved contracts with the find to perform a needs assessment and Implementation work <br /> related to Governmental Accounting Standards Board (GASB) Statement 34, the new financial <br /> departing model. The financial reporting changes required by GASB 34 must be implemented in <br /> the County'a Comprehensive Annual Financial Report (CAFR) for the fiscal year ending Nis <br /> June, 2002. <br /> Staff was very pleased with the work performed on the audit for the 2001 fiscal year. The <br /> auditors performed their work in professional and timely manner and worketl extremely well with <br /> staff In the completion of the audit and production of the CAFR_ Staff was also pleased with the <br /> needs assessment for GASB 34 prepared by the firm as well as the work performed thus far on <br /> the implementation. It is expected that the changes in the County's financial reporting required <br /> by GASB 3a will be effectively implemented in the 2002 CAFR. <br /> FINANCIAL IMPACT: The fee for the 2002 audit Is $61,000. This represents a 6% increase <br /> over the 2001 audit cost of$57,500. The $61,000 figure is consistent with the firm's proposal <br /> accepted by the Board in the spring of 2001. Funds to cover the audit costs will be induced in <br /> the 2002-2003 Canted Services budget. <br /> RECOMMENDATION(S): The Manager recommends that the Board approve the Contract with <br /> Cherry, Bekaart& Holland for 2002 audit services, and authorize the Chair to sign it. <br />