10/3/2000 - Laserfiche WebLink

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TO: Board of County Commissioners THRU: James E. Chandler. County Administrator DATE: September '_7.2000 SUBJECT: Audit Services FROM: Joseph A. Baird. Assistant County Administrator u% Pursuant to Section 11.45 Florida Statutes, Indian River County sent out a Request for Proposals for Audit Services for the fiscal years ending September 2000, 2001, 2002, 2003, and 2004. Only one firm, Harris, Cotherman, & Associates responded to the request for proposals. As required by law, the audit selection committee was composed of the Clerk of the Circuit Court, Tax Collector, Supervisor of Elections, Sheriff. and Property Appraiser, and a member of the Board of County Commissioners. On May 24, 2000 a meeting of the audit selection committee unanimously recommended that Harris, Cotherman, & Associates be engaged by the Board of County Commissioners to provide audit services for Indian River County. Harris. Cotherman. and Associates are our current auditors. The Board of County Commissioners on June 6, 2000 approved the audit selection committee's recommendation and authorized staff to begin negotiating with Harris. Cotherman, and Associates. The staff negotiating team is Joe Baird, Assistant County Administrator, and Jeffrey K. Barton. Clerk of Circuit Court. The negotiation team has met several times with Hams, Cotherman, and Associates and had numerous phone calls. Audit negotiations have been complicated for all local governments due to the enactment of the GASB 34 which is the new reporting standard that all governments must follow. GASB 34 requires governments to present -their financial statements differently than has been in the past; therefore, there is additional work that has to be done by both staff and the auditors. All local governments of our size are to implement GASB 34 by 2002 which is the middle of the proposed contract period. The audit selection committee felt early implementation of GASB 34 in 2001 was beneficial for all county interests, and all members of the committee voted for early implementation except the Tax Collector. The negotiation team feels Hams. Cothetanan, an -a' Associates has done a good job in the past and would continue to do so in the future. Harris. Cotherman. and Associates' initial offer was a five year contract price of an average of S 135.000 per year over a five year period, plus the 551.035 one time implementation cost for GASB 34. The GASB impiementation cost they mould allow to have been spread over severai years if Indian River County- wanted to do so. The Clerk's Office has agreed to do their own preparation of the CAFR including all financial statements and footnotes for the County Board of Commissioners and Constitutional Officers. The auditor _tyill be reponsible for the implementation of GASB 34 which includes review of MD&A letters, infrastructure valuation and depreciation method, accounting policies and associated internal control change; changes and identification of major funds, restate opening balances: and restatement of entries. October 3, 2000 - 88 is •