Agenda - 06-06-2000-8i - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 6, 2000 Action Agenda Item No. ~~ SUBJECT: Audit Contract for the June 30, 2000 Fiscal Year DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Contract and Engagement Letter INFORMATION CONTACT:. Ken Chavious, ext 2453 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 9fi8-4501 Durham fi88-7331 Mebane 33fi-227-2031 PURPOSE: To consider awarding a contract to Deloitte and Touche, LLP, for the provision of audit services for the fiscal year ending June 30, 2000. BACKGROUND: During the spring of 1997, County staff pursued a request for proposal process for audit services. Staff recommended and the Board approved the proposal submitted by Deloitte and Touche, LLP. The 1997 RFP stated that the County would contract with the successful firm for a period of at least three years. The final year of the County's commitment to Deloitte and Touche, LLP was last year. Staff has been very pleased with the services provided by Deloitte and Touche, LLP during the past three years. In many cases, consultation and advice above and beyond the contract requirements has been provided by the firm. Staff desires to work with Deliotte and Touche, LLP far one mare year and consider pursuing another RFP process for the audit of the 2000-2001 fiscal year. FINANCIAL IMPACT: The fee proposed for the 2000 audit is $66,500. This is a 10% increase over last year. The majority of the increase is attributed to compliance testing required by the state and federal government under the single audit act. In addition, the following factors contribute to the increase: • Revenues in all funds have increased from $97.9 million to $113.3 million (15%) • Expenditures in all funds have increased from $98.9 million to $117.4 million (19%) • State Bond expenditures of $10 million • Expenditures and investments related to $40 million in bonds recently sold. • Addition of the Landfill fund. These items significantly increase the number of accounting transaction and, in turn, impacts the amount of testing, sampling and time required by the auditors. Expenditures related to the single audit are partially recouped through indirect casts reimbursements in Social Services and Child Support, and the Landfill fund will be charged its fair share of the audit costs. The net cost to the County is expected to be approximately $58,000. RECOMMENDATION(S): The Manager recommends that the Board approve the audit contract far the fiscal year ending June 30, 2000 with Deloitte and Touche, LLP and authorize the Chair to sign.