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HomeMy WebLinkAboutMINUTES - 03272001 - HA.2 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Robert McEwan, Executive Director DATE: March 27, 2001 SUBJECT: AWARD CONTRACT FOR AUDITING SERVICES TO PATEL AND ASSOCIATES TO PERFORM AN AUDIT OF THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA'S VARIOUS PROGRAMS SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: AWARD the contract to Patel and Associates in the amount of $21,400 to perform an independent audit for the Housing Authority of the County of Contra Costa for the fiscal year 2000/2001 and AUTHORIZE the Executive Director to execute said contract. II. FINANCIAL IMPACT: The Housing Authority of the County of Contra Costa has included in the 2001/2002 annual budget necessary funds to perform an independent audit according to the U.S. Department of Housing and Urban Development's guidelines. III. REASONS FOR RECOMMENDATION/BACKGROUND On January 22, 2001 the Housing Authority invited proposals from independent public accounting firms to perform an audit of the Housing Authority's various programs for fiscal years ending March 31, 2001, 2002 and 2003. Advertisements were placed in two Bay Area newspapers, the Contra Costa Times and San Francisco Chronicle. Invitations were mailed to over twenty audit firms known to have experience auditing housing authorities. From the newspaper advertisements and mailings the Housing Authority received audit service proposals from seven accounting firms. The audit proposals were evaluated and scored by a three member evaluation committee comprised of the Finance Director of the Housing Authority of the County of.Santa Clara, the Chairperson of the Finance Committee for the Housing Authority Advisory Board and the Acting Deputy Executive Director of the Housing Authority. The proposals were reviewed and scored in three different areas; the mandatory criteria to qualify for further evaluation; technical competency and references as presented in the accounting firm's proposal and, thirdly, a score was given based upon the cost of the proposal. Attached for your review is a copy of the CONTINUED ON ATTACHMENT: ✓ YES SIGNATURE RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON March 27, 2001 APPROVED.AS RECOMMENDED XX OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A XX UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED March 27 20nj JOHN SWEETEN,CLERK OF THE BOARD OF COMMISSIONERS AND COUNTY ADMINISTRATOR B #14X EPU`I'Y \\housauth 1\user\bobmcmtz\msoffice\winword\bo-contract award-auditcontract.doc 'f March 27, 2001 Page 2 of 2 evaluation and scoring form. The County Auditor—Controller, Kenneth J. Corcoran, reviewed the evaluation methodology and ranking and found it to be satisfactory. The scores of the committee members were tabulated and the total overall score and ranking was determined for each accounting firm. The total score of the evaluation committee for the top three audit firms are: Audit Firm Points Patel &Associates 400.91 Vargas Lopez & Company 368.00 Novo radac & Company, LLP 363.55 It is my recommendation that the top ranked firm, Patel &Associates be awarded the contract. This recommendation is based on the following: 1. The ranking of the review committee. 2. Patel &Associates experience auditing housing authorities. They currently audit several housing authorities, including Alameda County Housing Authority and San Mateo County Housing Authority. 3. References obtained from current clients. The Housing Authority's Finance Director, Mr. Bakulesh Patel brought to my attention that he had been an employee of Patel &Associates for a four year period ending in September 1997, approximately three and a half years ago. Although they share the same last name, there is no family relation between the principal of Patel &Associates, Ramesh Patel and Bakulesh Patel. Both have submitted written statements that they see no conflict should Patel &Associates become the auditors for this agency. Mr. Corcoran was also consulted on this matter and found no reason to believe there would be a conflict of interest. The audit shall be made in accordance with Generally Accepted Auditing Standards (GAAS) issued by American Institute of Certified Public Accountants (AICPA) and Governmental Auditing Standards issued by the Comptroller General of the United States, General Accounting Office (GAO). The audit and the reports to be issued shall meet the requirements of Single Audit Act of 1984 (and Single Audit Act Amendments of 1996), OMB Circular A -133, "Audits of State, Local Governments and Non- Profit Organizations" and OMB Circular A-133 Compliance Supplement. The financial statements are to be prepared by the auditor using Generally Accepted Accounting Principles, (GAAP). The audit report and financial statements as well as all working papers will be subject to review and approval by HUD. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect not to approve the execution of a contract with Patel & Associates to perform the required independent audit, the Housing Authority of the County of Contra Costa may not be able to secure the required audit in a timely fashion and would, therefore, be out of compliance with HUD and other regulations. \\housautfi 1\user\bobmcmtz\msoffice\winword\bo-contract award-auditcontract.doc o N o y a N m o ro 4 rn A m VA m A A G ov o ?@ am o m 3 v o a d ao a mwo e . p :a c@ o @ 6 z �' 4: rn c m ° ° o m' C O U3 O t0 G O w = C O N O p@ n. N p @ j F O w to p 'O N w@ °' -► to m rn @ N I" n N (D ..s N, "O y GL p p N y0o D m Z m c° 0 0 0 o o@ �. m o (.0mn c C) CD a �• w o' ' o o p N c n c m ° 3 �_ ° o ° N ? v co CD 0 (Do N o p ° m C. n 3_ o 0 5 rn m a o @ w ° o n m a ov c n w CD w � N m o. � © ❑ d m m d rn@..a ° o to y 3 .,c K@ coo �. 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