To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Authorization to Extend and Amend Contract with Macias Gini & O'Connell, LLP for Professional Auditing Services
RECOMMENDATIONS:
APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract extension agreement with Macias Gini & O’Connell, LLP, for professional auditing services related to financial compliance audits, review of the County's basic financial statements contained in the Annual Comprehensive Financial Report in conformity with generally accepted accounting principles and federal financial assistance program audits extending the termination date to September 30, 2023 with no change to the payment limit of $1,962,057.
FISCAL IMPACT:
No additional General Fund cost. The proposed action extends the contract with Macias Gini & O’Connell, LLP through September 30, 2023, with no increase to the total payment limit of $1,962,057 previously authorized by the Board of Supervisors.
BACKGROUND:
The California Government Code requires the Board of Supervisors to examine and audit the accounts of all offices having the care, management, collection or disbursement of money belonging to the County or money received or disbursed by them under the authority of the law. In addition, an audit of the County’s federal financial assistance programs is required under the Single Audit Act.
On March 5, 2018, the County issued a Request for Proposals (RFP) for professional auditing services, including conducting financial compliance audits, expressing an opinion on the fair presentation of the County's basic financial statements contained in the Annual Comprehensive Financial Report in conformity with generally accepted accounting principles of the United States of America, and federal financial assistance program audits such as the Single Audit. In addition, the RFP included an external audit of the financial statements of the County of Contra Costa Public Financing Authority (the “PFA”). Two firms submitted proposals and a panel was convened to review the proposals and conduct interviews. Macias Gini & O'Connell, LLP (MGO) was selected by the panel for recommendation to the Board of Supervisors to serve the County for the next three years with the option of renewing for an additional two years.
On May 8, 2018, the Board of Supervisors authorized the County Administrator to execute a contract with MGO in the amount of $1,141,617 for the professional auditing services outlined above for the period of May 14, 2018 to May 31, 2021.
On April 21, 2021, the Board of Supervisors authorized a contract extension and amendment to the contract with MGO extending the contract by two additional years, as contemplated in the 2018 RFP. The County pre-negotiated the annual rates for years four and five with MGO during the RFP award process in anticipation of an extension being recommended to the Board of Supervisors at a future date, so long as MGO was performing in line with the contract. The total cost of the additional two-year period was approved not to exceed $820,440, bringing the total contract cost to $1,962,057.
Today’s action requests that the Board of Supervisors extend the contract through September 30, 2023, due to the external audit of the PFA being delayed. In discussions with the Auditor-Controller’s Office, there is a preference to track the final payments to MGO against the current contract rather than issuing a single payment not assigned to a contract in consideration for final expenses related the fiscal year 2021/22 external audit of the PFA.
CONSEQUENCE OF NEGATIVE ACTION:
Should the proposed action not be approved by the Board of Supervisors, the County will not have a vehicle to pay MGO for services rendered related to the external audit of the PFA.
☒Recommendation of the County Administrator
☐ Recommendation of Board Committee
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I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. |
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ATTESTED: |
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Monica Nino, County Administrator and Clerk of the Board of Supervisors |
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By: |