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Robert S. Segal, CPA PA <br />1912 Eastchester Drive, Suite 206 <br />High Point, NC 27265 <br />September 26, 2005 <br />Mr. Moses Carey, Jr., Chairman <br />Orange County Board of County Commissioners <br />P.O. Box 8181 <br />Hillsborough, NC 27278 <br />Dear Mr. Carey: <br />Robert S. Segal, CPA PA is pleased to report its progress on the collaboration <br />project involving Chapel Hill - Carrboro City Schools, Orange County Schools and <br />Orange County. Since our last update, progress has been slowed due to the <br />audits each organization experiences every summer. The organizations have <br />concentrated their efforts completing their audits in order to make the time <br />deadlines required by the State of North Carolina. The following is an update: <br />Chapel Hill- Carrboro City Schools (CHCCS) <br />Telecommunication expenses <br />We have reviewed the telecommunications expenses and have prepared a <br />preliminary recommendation on how CHCCS could save approximately $67,000 <br />per year net of Universal Service Fund /e -rate discounts and related costs. <br />CHCCS is currently in the middle of a major infrastructure upgrade. CHCCS is <br />working with BellSouth and the University of North Carolina (UNC) to implement <br />a plan to connect to UNC in July 2005 for internet access at a reduced annual <br />cost. CHCCS did not initiate switching telecommunications services as we <br />recommended because they were in the middle of this upgrade. Once the <br />upgrade is complete, CHCCS is willing to review the recommendations and <br />implement any suggested cost saving strategies. <br />CHCCS IT shared that its long -range plan is to implement Voice Over Internet <br />Protocol (VOIP). They currently have implemented the Cisco VOIP solution in <br />two schools and several office locations. VOIP has a large up front capital cost <br />that may be offset by future reduced monthly phone costs, IT did not share with <br />us a vendor's projection of costs or projected savings for VOIP. Therefore, we <br />are unable to evaluate this computation of savings. Further, we speculate that <br />the IT /vendor projection of savings is not reduced by E -rate funding. IT has not <br />