Title
Contract # 24171 - Professional Audit Services for Lake County - Change Order #5 - Three (3) Year Contract Extension
Staff Summary
· In 2004, Lake County entered into a three (3) year contract with extensions Virchow, Krause & Company, Madison, Wisconsin to perform professional audit services.
· A number of Change Orders have been approved during the intervening period based on new reporting requirements.
· Lake County must comply with new Risk Assessment Standards (SAS 112) which become effective for the FY08 audit. These services are outside the scope of the contract. Staff discussions with other units of government indicate the additional audit work to comply with RAS costs between 15-30% of the total audit fee.
· The FY 08 audit will be conducted in the final renewal option year beginning December 1, 2008
· Virchow Krause & Company has proposed a 12% increase spread over a three-year period in exchange for a two-year extension to the contract.
· These changes were not reasonably foreseeable at the time the contract was signed, are germane to the original contract. This change order is in the best interests of the County and authorized by law.
· The proposed fees for a three year renewal would be as follows:
Proposed fiscal year 2008 contract: $180,300
Proposed fiscal year 2009 contract: $192,900
Proposed fiscal year 2010 contract: $206,400
Body
TO: Chair, Financial and Administrative Committee
FROM: Gary L. Reis, Purchasing Agent
DATE: October 1, 2008
RE: Contract # 24171 - Professional Audit Services for Lake County - Change Order #5
Effective November 2004, Lake County entered into a three-year contract with two one-year renewal periods with Virchow, Krause & Company, Madison, Wisconsin to perform professional audit services for Lake County in the amount of $373,500.
In September, 2005, Change Order #1 was approved for FY04 audit services outside the scope of the contract in the amount of $30,000 and Change Order #2, which incorporated ...
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