HomeMy WebLinkAboutMINUTES - 03182008 - C.2 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA L
TO: BOARD OF COMMISSIONERS
FROM: Joseph Villarreal, Executive Director
DATE: March 18, 2008
SUBJECT: CONTRACT FOR AUDITING SERVICES
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
1. APPROVE a contract in the amount of $36,000 with Harn & Dolan to perform an independent audit
for the Housing Authority of the County of Contra Costa for fiscal year ending (FYE) 2008. The contract
will include an option to continue in FYEs 2009 and 2010.
2. AUTHORIZE the Executive Director of the Housing Authority to execute the contract with Harn &
Dolan.
II. FINANCIAL IMPACT:
This contract is funded by the U.S. Department of Housing and Urban Development's (HUD)
Capital Fund Program. The amount of the contract is within the amount budgeted for this purpose.
III. REASONS FOR RECOMMENDATION/BACKGROUND
All housing authorities are required to have an independent audit conducted annually. This audit
must be reviewed and approved by HUD. The housing authority last solicited for audit services in 2005.
On December 15, 2007 the Authority invited proposals from independent public accounting firms
to perform an audit of HACCC's various programs for FYE 2008, 2009 and 2010. The Request for
Proposals (RFP) was advertised in the Contra Costa Times and the RFP was mailed to twenty firms who
were either on the Authority's bidders list or who requested an RFP. Four firms submitted bids in
response to the Authority's RFP. Two firms formally declined to bid on the RFP, but expressed interest in
bidding in the future. The audit proposals were evaluated and reviewed by an independent evaluation
committee comprised of the Finance Directors from the Alameda County, Alameda City, and San Joaquin
County Housing Authorities. All proposals were rated using a four-step process. First, firms were
screened to ensure that they were properly licensed, independent and that no disciplinary action had been
taken against them in the past three years or was pending. Then the evaluation committee rated each
firm on a variety of criteria such as the firm's use of a quality control program, the ability to meet HUD and
HACCC deadlines, the quality of the personnel who will be assigned to the Authority's edit, the level of
CONTINUED ON ATTACHMENT: X YES SIGNATURE
Joseph Villarreal.Executive Director
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON� �_/ O �_ APPROVED AS RECOMMENDED OTHER
VOTE.OF COMMISSIONERS
� '��� 114EIZEBY CERTIFY TI IAT THIS IS A
UNANIMOUS (ABSENT- j TRUE AND CORRECTCOPY OF AN
AYES: / NOES: ACTION TAKEN AND ENT E'RED ON THE
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ABSENT: _ ABSTAIN: _ MINUTES OF THE BOARD OF
COMMISSIONERS ONTI I IF DATE SHOWN.
ATTESTED � A$ 0
JOSEPH VILLARREAL, SECRETARY
OF THE BOARD OF COMMISSIONERS
cc: CAO Office AND E.XECUTIVE DIRECTOR
13Y DEPUTY
I I:Uudyl-la),cs\MSOI;FIC'E\WIi\WORD\BOARD\BO-Independent Auditor Ctmtract A%rard.doc
Contract for Auditing Services
March 18,2008 v
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experience auditing housing authorities and a description of the work that will be provided. Third,
references were checked and, finally, a formula-based rating was used to score the firms based on their
proposed cost.
All of the responding firms met the mandatory criteria outlined in the RFP. The evaluation committee's
ratings and the references favored Harn & Dolan. Additionally, Harn & Dolan was the only firm that called for
100% of the audit to be completed by a partner of the firm. Harn & Dolan's bid to complete the project was
$36,000 compared to $37,275 by Smith Marion & Co., $40,750 by Patel & Associates, and $74,000 by Yeager
& Boyd LLC.
Based on these facts, we are recommending that Harn & Dolan be awarded this contract.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect not to approve the execution of a contract with Harn & Dolan
to perform the required independent audit, the Housing Authority of the County of Contra Costa would be
delayed in its timely selection and performance of the Agency Wide Audit. This could cause the Authority to
fall out of compliance with statutory and regulatory mandates requiring an independent audit conducted in a
timely manner.
bo-menev wide budget