To: Board of Supervisors
From: Joanne M. Bohren, CPA, County Auditor-Controller
Report Title: Contract Extension with Macias Gini & O'Connell, LLP for Professional Auditing Services related to County Financial Statements, Single Audit and Measure X
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to execute a contract amendment with Macias Gini & O'Connell, LLP, increasing the payment limit by $1,089,364, from $1,490,447 to 2,579,811 for professional auditing services related to conducting financial compliance audits and extending the contract term by two-years to May 31, 2028.
FISCAL IMPACT:
Up to $1,089,364; $1,049,936, or 96.4% General Fund, $39,428, or 3.6% Measure X.
BACKGROUND:
On April 24, 2023, the County issued a Request for Proposals (RFP) for professional auditing services, including annual external audits of the County, In-Home Supportive Services (IHSS) Public Authority, and the County of Contra Costa Public Financing Authority. In addition, the RFP scope includes the annual Single Audit required of all entities receiving over $750,000 (now $1,000,000) from the federal government. The external audit of the County's financial statements is separate from the Single Audit of the County's federal expenditures.
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 ultimately recommend Macias Gini & O'Connell, LLP (MGO) to be granted the contract.
On May 23, 2023, the Board of Supervisors authorized a three-year contract period with two optional one-year extensions. At that time, staff pre-negotiated the potential year 4 and 5 fees to lock in predictable rates should the Board authorize a future extension of the contract. On June 25, 2024, the Board amended the contract to add an engagement related to an external audit of Measure X program funds, which also included pre-negotiated rates through year 5.
Today’s action requests that the Board extend the contract for two additional years through May 31, 2028 and increase the contract payment limit by $1,089,364 reflecting the rates for the two additional years of the engagement.
CONSEQUENCE OF NEGATIVE ACTION:
The County will be unable to comply with the California Government Code and the Single
Audit Act.