TITLE
Title
APPROVE EXTERNAL AUDIT CONTRACTS - CHERRY BEKAERT, LLP
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SPONSOR
Sponsor
Harley Will
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BACKGROUND
Background
As a result of a request for proposals (RFP) process, Cherry Bekaert, LLP. was awarded the external audit contract by the Board of County Commissioners on April 3, 2008 for Guilford County. The RFP process was for fiscal years 2008 through 2010 at costs ranging from $80,750 to $89,250 with a provision to extend the term of engagement to cover additional fiscal years. The Board approved a three-year extension for fiscal years 2011 - 2013, at a cost of $84,000 each year with an additional two-year option at the base amount, plus the lessor of 1% or the consumer price index rate (CPI), as approved by the Audit Committee on 1/13/11. On 2/20/14, the Audit Committee approved exercising the two-year option for fiscal years 2014 and 2015 in the amounts of $84,840 and $85,519, respectively. On January 21, 2016, the Board approved a three-year extension of the contract with Cherry Bekaert, LLP for fiscal years 2016 - 2018 with the FY2016 base amount of $85,500 and annual increases of the lesser of the CPI (Consumer Price Index) increase, or 1%.
However, due to changes in audit requirements recently put forward by the Office of the State Auditor (OSA), Cherry Bekeart, LLP. has proposed an annual audit fee of $91,000 to complete the County’s annual financial statement audit. One change will include an increase in the number of programs that will be need to be audited to meet the requirement to test programs that represent 50% of the federal funds received by the county. In previous audits major Federal programs were defined as those with of $3,000,000 or more. The changes made by the OSA will now lower the County’s threshold defining major Federal programs to approximately $750,000. This means that more programs will now have to be audited as major Federal program to meet the County’s Single Audit requirements.
In addition to the a...
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