HomeMy WebLinkAboutAgenda - 12-14-2004-7cORANGE CAUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 14, 2004
Action Agenda
Item No.
SUBJECT: Progress Report from Robert Segal, CPA, for School Efficiency Study
DEPARTMENT: County Manager
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
None
INFORMATION CONTACT:
Rod Visser, ext 2300
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To receive an update from the firm of Robert S. Segal, CPA, PA regarding
preliminary findings from an examination of opportunities for achieving budgetary efficiencies in
the operations of the two school systems.
BACKGROUND: At the September 27, 2004 joint work session of the three governing
boards, there was discussion and general agreement that it would be beneficial to retain the
services of the Robert Segal CPA firm to examine County and school finance records to
determine if additional savings could be achieved. As was reported at the BOCC's regular
meeting on September 21, 2004, the County and both school systems have taken a number of
significant steps in recent years to enhance revenue collection and to reduce expenditures
through more advantageous contracting and spending approaches. The Segal firm was
engaged several years ago by all three governing boards for revenue enhancement/expense
reduction analysis, and succeeded in producing hundreds of thousands of dollars in savings
and additional revenue for all three entities.
The Segal firm is conducting work based on individual agreements with each of the governing
boards to authorize examination of each entity's financial records and to provide far
remuneration should the firm succeed in identifying operational efficiencies of interest to the
governing board. The Segal firm has concentrated its efforts during November and early
December on the two school systems. Bab Segal will attend the December 14 meeting and
provide a brief verbal report on preliminary findings thus far.
FINANCIAL IMPACT: Under the agreement, the Segal firm would retain 50% of all savings
achieved during the first 24 months after recommendations are accepted by the Board, and
actual savings are achieved and documented. There is no upfront cost to the contract. Other
than any retainer the County might pay for specific efficiency examinations that do not involve
directly measurable savings, the Segal firm is remunerated only if savings are actually
achieved.
RECOMMENDATION(S): The Manager recommends that the Board receive the update as
information from the Robert Segal CPA firm.