Single audit, relationship lead to county contract renewal
Harvey County needed to approve a new contract for auditing services — following the completion of the 2020 audit, the contract the county held with Lindburg Vogel Pierce Faris, Chartered came to an end.
That contract had lasted 12 years. In 2020 the county was subject to a "Single Audit" for the first time in almost a decade, and LVPF was able to add that to the contract.
A Single Audit, previously known as the OMB Circular A-133 audit, is an organization-wide financial statement and federal awards' audit of a non-federal entity that spends $750,000 or more in federal funds in one year.
COVID-19 funds from the federal government pushed the county over that threshold, which meant a single audit. County adminstration says that a single audit will be required for the next couple of years.
Because of the single audit process — and the longstanding relationship with LVPFC, the commission this week waived purchasing policy and approved a new contract with the firm.
"During [the single audit] process, finance staff invested a considerable amount of time and worked hard to ensure the County maintained compliance with federal guideline," wrote County Administrator Anthony Swartzendruber in a memo to the commission. "Finance staff also gained an understanding of what LVPF is looking for from the County for the single audit process"
The new contract will be in effect for fiscal years 2021 through 2023. Costs for audits will be $37,300 in 2021, $37,600 for 2022 and $37,900 for 2023. The county will also be responsible for expenses incurred during the audits. The fiscal year 2020 annual audit cost was $37,000 with expenses of $2,187 for a total of $39,187
"Staff believes retaining LVPF would be a prudent decision as we continue to traverse these unprecedented times of funds transferring from the federal government to local government," Swartzendruber wrote.
The single audit cost for 2020 was $12,400. Under a new contract proposed last month the single audit rates are bew$8,000 -$14,000 for the first major program required to be audited and an additional $3,000 to $5,000 for each additional major program to be audited. Actual determination of the major programs is not determinable until after year-end closing of the accounting records.
"Over these 12 years, LVPF has assisted County staff in making improvements to the County's financial operations, which allow for better accountability and internal control of financial resources," Swartzendrumber wrote.