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2 <br /> 2. Child Support Enforcement <br /> 3. Housing Section 8 <br /> 4. Opioid Settlement <br /> 5. Temporary Assistance for Needy Families (TANF) <br /> 6. Public School Capital Outlay <br /> 7. Juvenile Crime Prevention Council <br /> The number of major programs subject to audit varies each year based primarily on (1) the <br /> composition of the County's federal awards and (2) the composition of the County's state <br /> awards. Staff will review further with the auditors the estimated programs to be audited to meet <br /> audit thresholds and standards. <br /> For the current audit year, these requirements resulted in a higher number of major programs <br /> than anticipated when the original $135,000 contract amount was established, leading to the <br /> additional cost. This increase was not the result of missed requirements or a change in audit <br /> standards adopted after contract approval. The auditors expect the number of required major <br /> programs — and associated costs — to decline in future years due to the expiration of COVID- <br /> related funding and the planned increase in federal and state threshold levels to $1,000,000. <br /> The attached Audit Services Contract Amendment increases the FY 2025 cost from $135,000 to <br /> $150,000. The FY 2026 and 2027 audit budgets are expected to be $140,000 and $145,000 <br /> respectively. Staff will present the required annual Local Government Commission audit contracts <br /> for those years at a future Board Business meeting. <br /> FINANCIAL IMPACT: The financial report indicates a strong financial position for Orange County. <br /> The Audit Services Contract Amendment increases the FY 2025 expense from $135,000 to <br /> $150,000. Approval of the appropriation for this additional funding is included in Budget <br /> Amendment #6 as part of this January 20, 2026 meeting agenda. <br /> ALIGNMENT WITH STRATEGIC PLAN: This item supports: <br /> • GOAL 6: DIVERSE AND VIBRANT ECONOMY <br /> RECOMMENDATION(S): The Manager recommends that the Board: <br /> 1) Receive the presentation on the Annual Comprehensive Financial Report (ACFR) for the <br /> fiscal year ended June 30, 2025 as information; and <br /> 2) Approve and authorize the Chair to sign the Audit Services Contract Amendment for the <br /> Fiscal Year 2025 audit services. <br />