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Agenda Item
ASR
Control 26-000063 |
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MEETING
DATE: |
03/24/26 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
Auditor-Controller (Approved) |
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Department contact person(s): |
Andrew
N. Hamilton (714) 834-2457 |
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Salvador
Lopez (714) 834-2470 |
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Subject: Independent Auditing and Related
Services Contract-Amendment
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $134,200 |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 3/28/2023 #11 |
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RECOMMENDED
ACTION(S):
Authorize
the County Procurement Officer or Deputized designee to execute Amendment
Number One to Contract MA-003-23010066 with Eide Bailly LLP to perform
independent auditing and related services to increase the Contract amount by
$134,200 for a revised cumulative total amount not to exceed $1,982,436 through
April 30, 2026.
SUMMARY:
Approval
of Amendment Number One with Eide Bailly LLP will ensure the continued
independent audit services for the County.
BACKGROUND
INFORMATION:
Original Contract
On March 28, 2023, the Board of
Supervisors (Board) approved Contract MA-003-23010066 with Eide Bailly LLP for
independent auditing and related services for Fiscal Years (FY) 2022-23, 2023-24, and 2024-25.
The Board approved a contingency
contract cost increase, not to exceed 10% of the fixed price for each of the
fiscal years ending June 30, 2023, 2024 and 2025. Eide Bailly LLP may request a
proposed increase in the established maximum price that is 10% or less of the
fixed price in writing to the Purchasing Agent. Any increase greater than 10%
of the fixed price will be submitted to the Board for approval.
Amendment One
The County is required to submit a
Single Audit Report to the Federal Office of Management and Budget (OMB)
annually by March 31st. Eide Bailly is contracted to supply a multiple-part auditor’s
report on the County’s compliance with requirements of all Federally-funded
programs for which it received funding, in accordance with the Single Audit Act
Amendments of 1996, the OMB’s Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the
most recent edition of the Government Accountability Office's “Government
Auditing Standards” and the most recent edition of the Association of
International Certified Professional Accountants (AICPA) Audit and Accounting
Guide, “Audits of State and Local Governments” for the FY 2024-25. Any planning efforts, including risk
assessment to determine which of the County’s Federal programs are “major”
programs, and specific format and report requirements, shall be coordinated
with the OMB and the Federal cognizant agency as necessary.
For FY 2024-25, Eide Bailly LLP
identified 19 major programs that require a single audit based on the following
criteria: 1) federal program expenditures reached the dollar threshold of
$3,000,000, and 2) the federal program had not been audited within three years.
The County is a high-risk auditee, and Eide Bailly is required to audit 40% of
the County’s federal expenditures. As a result, the identification of the 19
major programs is completed after the contract is signed and a thorough
analysis is done to ensure the 40% audit coverage. The FY 2024-25 contract cost
for the Single Audit is based on eight major programs. Adding 11 additional
major programs would cost $12,200 each, for a total increase of $134,200.
The Amendment Number One to Contract
MA-003-23010066 increases the contract amount by $134,200 for a cumulative
total amount not-to-exceed $1,982,436 through the existing contract termination
date of April 30, 2026. This increase ensures the provision of essential
auditing services required to maintain compliance with federal audit
regulations.
The 10% contingency for the FY 24-25
contract was used to cover additional costs related to delays in the Schedule
of Assets, addressing past single audit findings, and developing a Single Audit
Subrecipient Monitoring checklist to strengthen internal controls.
FINANCIAL
IMPACT:
Appropriations
for this contract are included in Auditor-Controller, Budget Control 003, FY
2025-26 Budget. Billings to General Fund departments offset 60% of the costs
and over 65 Non-General Funds offset 40% of the costs.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A- Contract MA-003-23010066
Attachment B- Contract MA-003-23010066-Amendment One
Attachment C- Contract Summary Form