Agenda

Return

C. 43

To:	Board of Supervisors
From:	Monica Nino, County Administrator
Date:	May 23, 2023

Contra

Costa

County

Subject:

Authorization to Contract with Macias Gini & O'Connell, LLP for Professional Auditing Services related to County Financial Statements & Single Audit

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/23/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Timothy Ewell, (925) 655-2043
cc:	Hon. Robert R. Campbell, Auditor-Controller

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: May 23, 2023
,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the County Administrator, or designee, to execute a contract with Macias Gini & O'Connell, LLP in the amount of $1,527,401 for professional auditing services related to conducting financial compliance audits for the period of June 1, 2023 to May 31, 2026.

FISCAL IMPACT:

Up to $1,527,401; 100% General Fund. Appropriations are authorized in the Board of Supervisors – Administration budget.

BACKGROUND:

On April 24, 2023, the County issued a Request for Proposals (RFP) for professional auditing services, including annual external audits of the County, In-Home Supportive Services (IHSS) Public Authority, and the County of Contra Costa Public Financing Authority. In addition, the RFP scope includes the annual Single Audit required of all entities receiving over $750,000 from the federal government. The external audit of the County's financial statements is separate from the Single Audit of the County's federal expenditures.

BACKGROUND: (CONT'D)

California Government Code section 25250 requires that the Board of Supervisors commission audits of public funds on a regular basis stating in pertinent part that the Board, "... shall examine and audit, or cause to be audited, the financial accounts and records of all officers having responsibility for the care, management, collection, or disbursement of money belonging to the county or money received or disbursed by them under authority of law. The audit shall encompass the immediately preceding two-year period, or any portion thereof not included in a prior audit."

In addition, the same code section states that, "... the board of supervisors may employ the services of an independent certified public accountant or licensed public accountant to perform an examination of the financial statements in accordance with generally accepted auditing standards."

Proposals were due from interested firms on May 12, 2023, and the County received two proposals from qualified, public sector accounting firms; Macias Gini & O'Connell, LLP and Eide Bailly, LLP. Following receipt of the proposals, the County convened a review panel on May 17, 2023 to review each proposal and make a recommendation for contract award to the Board of Supervisors. The review panel used a consensus based, forced ranking approach to evaluate the proposals. The review panel is recommending Macias Gini & O'Connell, LLP (MGO) to be granted the contract award by the Board of Supervisors for a three-year period with two optional one-year extensions. Factors that contributed to this decision are that the upcoming FY 2022/23 financial audit will include financial data from the legacy finance system and the new Workday system (effective April 1, 2023), making it a difficult year to transition to a new firm. Also, the County continues to receive and expend a significant amount of one-time, COVID era federal funds, which are subject to the Single Audit. In any event, the contract period, including optional extensions, will not exceed five-years, at which point it will be necessary to proceed with a new RFP process for the next contract cycle.

CONSEQUENCE OF NEGATIVE ACTION:

The County will be unable to comply with the California Government Code and the Single Audit Act.