Okaloosa County BOCC — May 17, 2016 — May 6 Minutes Audit Meeting Signed

Audit Selection Committee May 6, 2016 A meeting of the Audit Selection Committee was called to order at 9:10 a.m. in the 3" Floor Conference Room at the Brackin Building, located in Crestview. Members present were: J. D. Peacock II, Clerk of Circuit Court Paul Lux, Supervisor of Elections Benjamin F. Anderson, Tax Collector Nathan Boyles, Board of County Commissioners Doug Gaylord, representing Sheriff Larry Ashley Also in attendance were Gary Stanford, Finance Director; Kay Godwin, Deputy County Administrator; Zan Fedorak, Purchasing Manager; Keri Holguin, Tax Collector’s Office; and Shirley Young, Supervisor of Elections Office Mr. Peacock welcomed everyone to the second 2016 Okaloosa County Audit Selection Committee meeting. Mr. Boyles made motion, seconded by Mr. Gaylord, to approve the minutes for March 22, 2016. 5 yeas. Mr. Peacock stated the purpose of today’s meeting was to go over the vendor rankings to determine if personal presentations from the vendors were needed. Mrs. Fedorak reiterated the purpose of the meeting and further stated if the Committee is prepared to rank the vendors, the rating sheets will be required to be submitted today. If it’s decided presentations are needed, the ranking sheets can be submitted after presentations are completed. Mr. Peacock stated he was prepared to rank the vendors but opened the floor for a discussion on the matter. Mr. Gaylord said his understanding was the committee members would rank the vendors and determine where they ranked at today’s meeting, which Mr. Peacock stated that was his understanding as well, but he wanted to get a consensus from the Committee. Mr. Boyles said he was prepared to rank the vendors today without personal presentations. Audit Selection Committee May 6, 2016 In response to Mr. Lux’'s concerns, Mrs. Fedorak stated 1if the committee members have minor questions regarding the proposals, they could present them to her and she would follow up with the firms for clarification. Mr. Lux said the ranking sheet reflects similar information in category two (Ability, capacity, and skill of the proposer to perform the services on a timely basis), three (Experience of the business & individual members of the Dbusiness in accomplishing similar services) and next to last (References & recent, current, and projected workload capacity of proposing auditors). He stated they all have a wealth of experience and their number of staff and hours are almost identical. He further stated he is aware the committee is not allowed to use price as the sole determining factor and the prices varied widely but several of the lowest numbers are out of county/state vendors. Mr. Lux asked if the firm traveled to Okaloosa County unprepared and had to return at a later date, how would it affect the price submitted--would the County be invoiced for the price submitted or a different price as a result of exceeding the allotted hours? He further noted local firms can return the following day versus an out-of-county firm. Mr. Peacock said he assumes travel was factored into their responses to the Requests for Proposal (RFP) and that would be a negotiation conversation. If selected, they can be held to the price they bid; however, that’s a discussion Purchasing would initiate. Mr. Anderson shared Mr. Lux’s concerns and further stated one distinction between those two firms are they had the smallest number of hours allocated (Warren Averett 1960 hours and Carr, Riggs, & Ingram (CRI) over 2000 hours). When factoring the number of hours allocated and their gross amount, they have the lowest gross amount but the highest per hour cost, approximately $450.00 per hour. He said there’s the possibility of them requesting additional monies after proposing the lowest amount. Mr. Peacock expressed his concern as well and stated upon his reference review that he noted work in a Florida county similar in size to Okaloosa County, whereas the other firms did not 2 Audit Selection Committ