CLEARLAKE >> The Lake County/Area Planning Council (APC) approved an auditing services contract Wednesday. A potential conflict of interest created much of the debate ahead of the approval.
The contract between the APC and Smith & Newell, from Ukiah, will last for three years. Smith & Newell have provided auditing services since August 2010.
The cost of auditing services are not to exceed $9,000 for the current fiscal year, $9,100 for next year and $9,200 for the 2015/16 fiscal year. If a single audit is required, an additional cost of $1,300 will be applied, APC Executive Director Lisa Davey-Bates said.
A contract for fiscal/administrative and planning services was discussed by the APC.
“The intent at this meeting was that we would have a contract, and that is not the case,” Lars Ewing said. “That is not to say we haven”t made progress.”
Ewing expects a contract will be drafted and sign by Oct. 1.
“I would like to switch this as quickly as possible,” Ewing added.
According to Davey-Bates, a Caltrans pre-award audit draft found that there was a conflict-of-interest created by the public service agreement between the APC and Dow & Associations. “The APC is awaiting the outcome of the opinion of the Mendocino County Counsel in identifying staffing options to the Mendocino Council of Governments board, who has received a similar audit finding,” the draft document states. The audit also found that the procurement of the public service agreement was against federal regulations, as well as Caltrans” agreement requirements. The reason the procurement was not in compliance was “that an in depth cost estimate was not provided,” the draft document stated. Finally the audit found that the APC had weak control over invoices and did not have documentation to support invoices paid by APC, according to Bates.
In light of a new contract being drafted, a termination notice to Dow and Associates was unanimously approved by the APC. Dow and Associates currently provides administrative services to the council.
In April, the APC approved reducing the number of days required to terminate from 120 days to 30 days.
If both parties agree, the contract will be terminated on Sept. 30, which is 10 days less than the 30 day requirement. The termination is contingent upon a new contract being in affect by Oct. 1.
Contact J. W. Burch, IV at 900-2022.
