HomeMy WebLinkAboutMINUTES - 05031988 - 1.54 1-054 �M
�TO `HOARD OF SUPERVISORS
FROM: V� ��V1 1` a
Phil Batchelor, County Administrator
C�lJ.7lQ
DATE;
'April 28, CN �/
1988 . �/..111►J
SUBJECT;
Audit Services Contract
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND .JUSTIFICATION
RECOMMENDATIONS
Award three year contract to Peat. Marwick Main and Company for
audits of the County's finances, internal operations and federal
financial assistance programs ( single audit) in' the amount of
$85,000 for .FY 1987-1988, $91,000 for FY 1988-1989, and $96,000
for FY 1989-1990, and authorize County Administrator or his
-designee to execute said contract as recommended by the County
Grand Jury. and County Administrator.
BACKGROUND
On February 12, 1988, a Request for Proposal (RFP) for furnishing
audit services to the 1987-1988 Grand Jury and Board of
Supervisors was sent to ten independent public accounting firms.
Five firms responded by the March 18, 1988 deadline. The firms
were:
Arthur Young & . Co. (AY)
. : Deloitte, Haskins & Sells (DH&S)
Ernst & Whinney (E&W)
Arthur Anderson & CO. (AA)
Peat Marwick Main & Co. (PMM).
The ,following .sections summarize the responses of each firm to
the various elements in the RFP.
I . Responsiveness of the Proposals to County Requirements
The text of .each .response indicated that the proposing audit
firms have a clear and complete understanding of the work to
be done in Contra Costa County. They all acknowledged and
made a commitment to meet the deadlines established by the
`County for .both the County financial audit and the Single
Audit.
CONTINUED ON ATTACHMENT'• _X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER _
SIGNATUREIIS1: npp
ACT,I ON OF,.BOARD ON MaT 3-j ,1'ZG�A APPROVED AS RECOMMENDED X- OTHER
VOTE OF .SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT --- ) AND CORRECT COPY OF AN ACTION TAKEN
AYES:, NOES'. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED MAY 3 1988
Auditor-Controller - - -�
Grand JLiry PHIL BATCHELOR, CLERK OF. THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-83 _'DEPUTY
-2-
II . Cost & Hours
A. Cost
Financial Single
Year Audit Audit Total
AY 1987-88 $67,000 $32, 000 $ 99,000
1988-89 70,000 34,000 104,000
1989-90 73 ,000 36,000 109,000
DH&S 1987-88 73 ,000 19, 000 92, 000
1988-89 80,000 21,000 101,000
1989-90 84,000 22,000 106,000
E&W 1987-88 70,000 20, 000 90,000
1988-89 73 ,000 21,000 94,000
1989-90 77 ,000 22,000 . 99,000
AA 1987-88 82,550 27,000 109, 550
1988-89 87, 000 28, 500 115, 500
1989-90 91,000 30,000 121,000
PMM 1987-88 53 ,000 32,000 85, 000
1988-89 57, 000 34,000 91,000
1989-90 60,000 36,000 96,000
NOTE: All of the above costs are based
on the County committing to retain
the selected firm for a three year
period.
B. Hours
Financial Audit Single Audit Total
AY 1800 600 2400
DH&S 2400-2800 600-700 3000-3500
E&W 1400-1550 400 1800-1950
AA 1820 590 2410
PMM 1900-2100 1000-1200 2900-3300
III . Experience with Similar Engagements
All proposers indicated that their Northern California
offices have had recent experience in performing city and
county financial (CAFR) and Single Audits. Each proposer
has a demonstrated interest and involvement in serving
public sector clients.
Each proposer indicated that staff assigned to the Contra
Costa County audits would have relevant experience and
specific training in governmental auditing.
IV. Size, Structure and Location of Offices
With the exception of Arthur Anderson, the proposers would
primarily provide staffing from their Walnut Creek offices.
Arthur Anderson would rely on their San Francisco and
Oakland offices for staffing.
Each firm indicated that certain specialized staff support
may come from Northern California offices outside Contra
Costa County; e.g. Sacramento, Oakland, San Francisco, etc.
All of the proposers have large and diverse practices in
Northern California.
• -mow
-3-
V. Affirmative Action
Each proposer proudly spoke of its affirmative action
programs to hire and promote women, minorities and other
disadvantaged individuals.
VI . Other Information
Each of the five proposers acknowledge the specialized
nature of the health care environment. All of the firms
have separate and distinct health care practices in Northern
California that would be assigned to review and audit the
operations of the County Hospital and Health Maintenance
Organization. The results of the review would be
incorporated into the County' s financial and Single Audits.
VII . Significant Staffing Assignments
CAFR Mgr/Single Health
Partner Audit Mgr. Care Mgr.
AY Jim Karling Steve Schmidt Jerry Bajada
John Woo (Principal
DH&S Scott Kemp/ Kevin Harper Mike King
George Baumgartner
E&W Jim Olson Linda Okubara G. Vasconcellos
AA Dave Azevedo Mike Miller Mary Conncik
PMM Lou Miramontes Tom Gard Robin Yashimura
Dorothy Englund
The recommendation of the 1987-1988 Grand Jury that the fiscal
and single audits for Fiscal Years 1987-1988 through 1989-1990 be
awarded to Peat Marwick Main and Company is attached.
a