HomeMy WebLinkAboutAgenda - 04-15-2008-4gORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 15, 2008
Action Agenda
Item No. __~~_
SUBJECT: 2008 Statement Preparation Contract
DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Engagement Letter/Contract with Cherry
Bekaert & Holland Gary Humphreys 245-2453
PURPOSE: To consider approving a contract for the preparation of the Schedule of State and
Federal Financial Assistance for the fiscal year ending June 30, 2008.
BACKGROUND: Last year, the County contracted with the accounting firm of Cherry, Bekaert
& Holland to prepare the Schedule of State and Federal Financial Assistance at a cost of $7,500
in conjunction with the annual audit. McGladrey & Pullen cannot prepare this statement due to
the fact that would present a conflict in performing the audit. Cherry, Bekaert & Holland has
proposed a fee of $ 7,750 to prepare this Statement for the fiscal year 2008, an increase of
$250.
FINANCIAL IMPACT: As stated above, the cost of the contract with Cherry, Bekeert and
Holland to prepare the Statement of State and Federal Financial Assistance is $7,750. Funding
for this action was included in the FY2007-08 Central Services professional services account.
RECOMMENDATION(S): The Manager recommends that the Board approve the contract with
Cherry, Bekeert & Holland for preparation of Schedule of State and Federal Financial
Assistance and authorize the Chair to sign the contract.
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Cherry, llekaert & Holland, L.L.P.
The Firm of Choice. www.cb6.com
2626 Glenwood Avenue -Suite 30D
Raleigh, Noah Carolina 27608
phone 919.782.1040
fax 919.783.097
March 31, 2008
Mr. Gary Humphreys, Financial ServicesDirector
Orange County
208 South Cameron Street
Hillsborough, North Catalina 27278
Dear Gary.
This letter of arrangement between Orange County; North Carolina (the "County"} and Cherry,
Bekaert & Holland, L.L.P. sets forth the nature and scope of the services we wilE provide, the
County's required .involvement and assistance in support of our services, the related fee
arrangements and otherterms and conditions designed to assure that our professional services are
performed to achieve the mutually agreed upon objectives of theCounty.
SUMMARY OF SERVICES
We will prepare the Schedule of Expenditures of Federal and State Awards (the uschedule"} of the
County as of and for the year ended June 30, 2008. However, management is responsible for the
schedule. In your representations to us, you willbe asked to acknowledge our role in this regard,
and your review, approval, and responsibility for the schedule. Further, you are responsible for
designating a qualified management-level individual to be responsible and accountable for
overseeing these services.
Any additional services that you may request, and that we agree to provide, will be subject of
separate written arrangements.
Eddie Burke, who will be responsible far assuring fhe overall quality, value, and timeliness of our
services to you, wiH lead the engagement.
TERMS AND GONDITIONS SUPPORTING FEE
As a result of our planning process, the County and Cherry, Bekaert & Holland, L.t..P. have agreed
to a fee, subject to the following conditions.
To facilitate meeting our mutual objectives, the County will provide in a timely manner audit
schedules and supporting information, including timely communication of all significant accounting
and financial reporting matters, as well as clerical assistance as mutually agreed upon and as is
normal and reasonable in the circumstances. When and if for'any reason theCounty is unable to
provide such schedules, information and assistance, Cherry, Bekaert & Holland, l_.L.P. and the
County will mutually revise the fee to reflect additional services, if any, required of us to achieve
these objectives.
a..~.m,...~
BAKER TtLLY
INTERNATIONAL
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In providing our services, we will consult with the County with respect to matters of accounting,
financial reporting, or other significant business issues. Accordingly, time necessary to affect a
reasonable amount of such consultation is reflected in our fee. However, should a mafter require
research, consultation, or work beyond that amount, Cherry, Bekaert & Holland, L.L.P. and the
County will agree to an appropriate revision in services and fee.
Except far any changes in fees, which may result from the circumstances described above, ourfees
will be Limited to those set forth below.
FEE
Our fees for these services will be based upon our customary billing practices at the time of the
engagement. Bills far services will be rendered as work progresses and are due within 15 days from
invoice date. A service charge will be added to pas# due accounts aqua! to 7 %% per month (18%
annual rate) on the previous month's balance less payments received during the month, with a
minimum charge of $2.00 per month. The fee for our audit as described in this letterwill not exceed
$7,750. This fee is based on anticipated cooperation from your personnel and the assumption that
unexpected circumstances will not,be encountered during the audit. If significant additional time is
necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional
costs. Any modification to the fee shall be in writing and signed by both parties. You agree to pay all
costs of collection (including reasonable attorneys' fees} that we may incur in connection withthe
collection of unpaid invoices.
ACCESS TO WORKING PAPERS
The working papers for the engagement are the property of Cherry, Bekaert & Holland, L.L.P. and
constitute confidential information. Except as discussed below, any requests for access to our
working papers will be discussed with you prior to making them available to requesting parties.
The workpapers for #his engagement will be retained for a minimum of three years after the date of
completion of the schedule or for any additional period requested by the County. If we are aware
that a federal or State awarding agency, pass-through entity, or other party is contesting the
schedule, we will contact the agency contesting the schedule far guidance prior to destroying the
workpapers.
Our Firm, as well as all other major accoun#ing firms, participates in a "peer review" program,
covering our audit and accounting practices. This program requires that once every three years we
subject our quality assurance practices to an examination by another accounting firm. As part of the
process, the other firm will review a sample of our work. It is possible that the work we perform for
you may be selected by the other firm for their review. if it is, they are bound by professions!
standards to keep all information confidential. If you object to having the work we do far you
reviewed by our peer reviewer, please notify us in writing.
USE OF THIRD PARTY SERVICE PROVIDERS
The firm may from time to time, and depending on the circumstances, use third-party service
providers in serving your account. We may share confiders#ial information about you with these
service providers, but remain committed to maintaining the confidentiality and security of our
information. Accordingly, we maintain internal policies, procedures and safeguards to protect the
confidentiality of your personal information. In addition, we will secure confidentiality agreements
with all service providers to maintain the confidentiality of your information and we will take
reasonable precautions to determine that they have appropriate procedures in place to prevent the
unauthorized release of your confidential information to others.
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In the event that we are unable to secure an appropriate confidentiality agreement, you wiQ be asked
to provide your consent prior to the sharing of your confidential information with the third-party
service provider. Furthermore, the firm will remain responsible for the work provided by any such
third-party service providers.
SUBPOENAS
In the event we are requested or authorized by you or required by government regulation, subpoena,
or other legal process to produce outworking papers or our personnel as witnesses with respect to
our engagement for you, you will, so long as we are not a party to the proceeding in which the
information is sought, reimburse us for our professional time and expense, as well as the fees and
expenses of our counsel, incurred in responding to such a request.
OTHER MATTERS
If any dispute, controversy or claim arises in connection with the performance or breach of this
agreement, either party may, on written notice to the other party, request that the matter be
mediated. Such mediation would be conducted by a mediator appointed by and pursuant to the Hales
of the American Arbitration Association (AAA) or such other neutral facilitator acceptable to both
parties. Both parties would exert their best efforts to discuss wi#h each .other in good faith their
respective positions in an attempt to finally resolve such dispute, controversy, or claim.
Client and accountant both agree that any dispute over fees charged by the accountant to the client
will be submitted for resolution by arbitration in accordance with the Rules for Professional
Accounting and Related Services Disputes of the AAA. Any award rendered by the Arbitrator
pursuant to this Agreement may be filed and entered and shall be enforceable in the Superior Court
of the County in which the arbitration proceeds. In agreeing to arbitration, we both acknowledge that,
in event of a dispute over fees charged by the accountant, each of us is giving up the right to have
the dispute decided in a court of law before a judge or jury and instead we are accepting the use of
arbitration for resolution.
The prevailing party shall be entitled to an award of reasonable attorneys'tees and costs incurred in
connection with the arbitration of the dispute in an amount to be determined by the arbitrator.
if the foregoing is in accordance with your understanding, please sign this letter in the space
provided and return it to us. If you have any questions, please call Eddie Burke at (919) 782-1040.
Very truly yours,
CHERRY, BEKAERT & HOLLAND, L.L.P
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Enclosure
RESPONSE:
This letter correctly seas forth the understanding of Orange County, North Carolina.
By:,