To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Authorization to Amend Contract with Macias Gini & O'Connell, LLP to include the Measure X Audit in the Existing Contract for Professional Auditing Services
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract amendment with Macias Gini & O’Connell, LLP to incorporate Measure X audit services into the existing contract for professional auditing, and increase the payment limit by $44,970 to an amount not to exceed $1,490,447, with no change to the term ending May 31, 2026 (100% Measure X).
FISCAL IMPACT:
The proposed action adds additional services to the contract with Macias Gini & O’Connell, LLP with an increase of $44,970 to the current contract limit of $1,445,477, for a total contract price not to exceed $1,490,447.
BACKGROUND:
Measure X revenues are general purposes revenues blended within the County’s existing financial statements. In Fall of 2023, the Board of Supervisors provided policy direction to perform an annual fiscal year audit of expenditures of tax revenue generated by Measure X to ensure that expenditures conform to the stated intent of the ballot measure and the Board’s direction for specific allocations.
An audit of Measure X expenditures requires knowledge of the County’s financial systems and statements and is compatible with the existing contract for professional auditing services being performed by Macias Gini & O’Connell, LLP (MGO). The existing contract for professional auditing services includes annual external audits of the County, In-Home Supportive Services (IHSS) Public Authority, County of Contra Costa Public Financing Authority, and the Single Audit required of all entities receiving over $750,000 from the federal government.
The current contract with MGO was competitively bid, with a Request for Proposals issued by the County on April 24, 2023. Proposals were due from interested firms on May 12, 2023, and the County received two proposals from qualified, public sector accounting firms; Macias Gini & O'Connell, LLP and Eide Bailly, LLP. Following receipt of the proposals, the County convened a review panel on May 17, 2023 to review each proposal and make a recommendation for contract award to the Board of Supervisors. The review panel used a consensus based, forced ranking approach to evaluate the proposals, and recommended Macias Gini & O'Connell, LLP (MGO) to be granted the contract award by the Board of Supervisors for a three-year period with two optional one-year extensions. The contract period, including optional extensions, will not exceed five-years, at which point it will be necessary to proceed with a new RFP process for the next contract cycle.
The proposed contract amendment is necessary to authorize and approve payment for the County’s auditors to complete an annual audit and report on expenditures related to Measure X, in accordance with Board direction.
CONSEQUENCE OF NEGATIVE ACTION:
Should the proposed action not be approved by the Board of Supervisors, the County will not be able to perform an independent audit of Measure X expenditures.