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MAR 16 1993 BOOK 89 f',,,F 32 <br />CABLE AND GARBAGE FRANCHISE AUDIT <br />OMB Director Joe Baird presented the following memo dated <br />March 10, 1993: <br />TO: Members of the Board <br />of County Commissioners <br />DATE: March 10, 1993 <br />SUBJECT: CABLE AND GARBAGE FRANCHISE AUDIT <br />OFFICE OF MANAGEMENT AND BUDGET <br />FROM: Joseph A. Bair <br />OMB Director <br />DESCRIPTION AND CONDITIONS <br />Earlier this year the Board of County Commissioners requested staff review the cost of <br />having Indian River County's Cable and Garbage Franchises audited to make sure the <br />County is receiving the correct franchise revenue. Staff has met with Coopers & Lybrand, <br />the County Auditors, to obtain their opinion and receive a quote for the cost. All audit <br />costs must be borne by the County not the franchise. <br />ANALYSIS <br />To clarify the analysis of the franchises we have separated Cable and Garbage. <br />Cable Franchise <br />The two (2) cable franchises in Indian River County are T.C.I. and Falcon Cable. The <br />auditors and staff have reviewed both franchise agreements and related documents. It was <br />found that Falcon Cable had a third party auditor verify the franchise revenue Indian River <br />County received. Our auditors feel that the third party verification was sufficient and <br />having an audit._ done in addition would be unnecessary. <br />T.C.I. Cable does not have a third party verify the revenue. T.C.I. Cable services both <br />Indian River County and City of Vero Beach. City of Vero Beach had also requested <br />Coopers & Lybrand review the cost to verify their franchise revenue; therefore, the auditors <br />submitted a joint proposal. Coopers & Lybrand has outlined a Scope of Work they feel <br />would be necessary to review T.C.I. Cable revenues and receive a reasonable comfort level <br />on the Indian River County and City of Vero Beach Franchise Revenue. <br />The cost of performing the total review as outlined in the Scope of Work attached is <br />$5,000-$7,000. City of Vero Beach cost is estimated at $1,565 to $2,190 and Indian River <br />County is $3,435-$4,810. Staff arrived at the pro rata cost based on the 1991/92 franchise <br />revenue from T.C.I. Cable (City of Vero Beach 1991/92 revenues were $143,858 and Indian <br />River County 1991/92 revenues were $316,026). <br />Staff is asking the T.C.I. Cable company if they would be receptive to having language <br />added to their franchise agreement which would require a third party audit verification to <br />be done to save the County from going through this process in the future. <br />28 <br />