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ADDITION <br />CABARRUS COUNTY <br />Ts ��a <br />BOARD OF • • <br />* <br />REGULAR MEETING <br />p �BcAR� fri� SEPTEMBER 19 20 <br />1 <br />AGENDA CATEGORY: <br />New Business <br />SUBJECT: <br />County Manager - Sales Tax Audit Contract with Dixon Hughes <br />Goodman, LLP <br />BRIEF SUMMARY: <br />Over the past year, the County has experienced a decline in sales tax <br />revenues, while many other local governments realized an increase of 2% <br />or more. It appears this decline may be the result of very large sales tax <br />refunds requested by non - profit agencies. County staff recommends <br />an audit be performed to ensure compliance with revenue laws by <br />employing professional auditing principles and practices in examination of <br />company records and tax reports. Staff recommends the firm of Dixon <br />Hughes Goodman LLP be utilized based on references from Forsyth and <br />Durham Counties. Since this is a service contract, no informal or formal <br />process was used or is needed to solicit firms. Anthony E. Flinchum will <br />conduct the audit and is the Partner -In- Charge of Sales and Use and <br />Property Tax. He joined the firm in 1994. Prior to joining the firm, he was <br />employed with the North Carolina Department of Revenue for 11 years. <br />The contract is "contingency based ", meaning the County <br />and municipalities will only pay a fee, ranging from 20% to 35 %, based <br />on actual monies recovered for the County. All the municipalities have <br />agreed, via email, to participate in the payment of the audit. The County <br />Attorney will prepare a MOU (Memorandum of Understanding) <br />designating the municipalities' participation amount, which is based on the <br />actual sales tax distribution percentage used for allocation. An audit of <br />this nature has not been conducted since 2003. <br />REQUESTED ACTION: <br />Motion to approve the contract between Cabarrus County and Dixon <br />G -6 Page 585 <br />