TITLE
Title
APPROVE EXTERNAL AUDIT CONTRACT AND AGREED UPON PROCEDURES - CHERRY BEKAERT, LLP
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SPONSOR
Sponsor
Harley Will
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BACKGROUND
Background
As a result of negotiations with the County's Audit Committee, Cherry Bekaert, LLP submitted a proposal to extended their January 8, 2016 external audit contract with the Board of County Commissioners for Guilford County. The proposal is for fiscal years 2019 through 2021 at costs ranging from $91,900 to $93,750.
The Board had completed a request for proposal and awarded the contract to Cherry Bekaert, LLP in 2008 through 2010 at a cost of $80,750 to $89,250 for the first three year team. It subsequently 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. The contract was extended for three years in 2016 to include fiscal years 2016, 2017, and 2018; with a 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. had to increase an annual audit fee to $91,000 for FY 2018 to complete the County’s annual financial statement audit. The one factor that forced the increase was the number of programs that needed to be audited to meet the requirement to test programs that represent 50% of the federal funds received by the county. This was due to the fact that in previous audits major Federal programs were defined as those with of $3,000,000 or more. The changes made by the OSA now lowers the County’s threshold defining major Federal programs to approximately $...
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