PM Change Order Request

AID 1632990 · View on Simbli

Agenda Item

a. Approval of Change Order Request to RFP 23-543 Comprehensive Financial Audit of E-SPLOST IV and E-SPLOST V Spending (Not to exceed $320,000) ~ Updated 4.10.2024

Summary: Presented by: Mr. Joel B. Thibodeaux, Director Internal Audits & Compliance, Office of Audits & Compliance
Request: It is requested that the Board of Education consider and approve a change order and additional funds for RFP 23-543 Comprehensive Financial Audit of E-SPLOST IV and E-SPLOST V Spending to Plante Moran for an additional amount not to exceed $320,000.
Why: The DeKalb County School District has determined that a comprehensive financial audit of DCSD E-SPLOST IV and E-SPLOST V spending, to include all spending areas, shall be conducted by an outside, 3rd party firm in order to provide assurance to DCSD stakeholders of the District's compliance with state and local law and that all expenditures of E-SPLOST IV and E-SPLOST V funds by the District conform to the rules and guidelines of the Program.
Details: Task
Est. Hours
Contract Hourly Rate
Fees


Task 1: Documentation Gathering and Indexing
560
$225
$126,000


Task 2: Audit of Documentation
820
$225
$184,500


Expenses Related to Travel for Phase 1
$20,000


Plante Moran’s share of travel expenses that will not be billed to the District
($10,000)


Change Order Total
$320,500
Financial impact: $320,000 addition, bringing the total spend for RFP 23-543 to $1,081,000.

305.4000.530000.60535.7520.9990.8013.040.0000
Contact: Mr. Joel B. Thibodeaux, Director, Internal Audits & Compliance, Office of Audits & Compliance, 678. 676.0740
Effective: Upon Board Approval following legal review
Status: Submitted for Legal/Conatract review
Memorandum

  To:            DeKalb County School District Board of Education

  From:          Plante & Moran, PLLC

  Date:          March 15, 2024

  Re:            Change Order Request: RFP 23-543 Financial Auditing Services


Dekalb County School District Board of Education Members:

Plante & Moran, PLLC (“PM” or “we”) is in the process of conducting services associated with RFP 23-
543 Financial Auditing Services for DeKalb County School District (“DCSD”). Throughout our
engagement, we have been made aware of situations that have warranted increased time and effort on
behalf of DeKalb’s team members, resulting in increased time and costs. Due to these increased costs,
we are requesting a change order to the original purchase order associated with this RFP. Our request is
for an additional $320,000 due to the unforeseen circumstances noted below:

    1) DCSD did not maintain general ledger accounting records and supporting documentation for
       expenses digitally which is a change of understanding from when the original cost was presented
       in our bid.

    2) DeKalb County School District does not have resources available to provide PM with the required
       documentation to execute audit procedures for SPLOST IV and SPLOST V in accordance with
       RFP 23-543. At the request of the Board, PM has provided staffing resources of up to 7
       individuals to acquire the documentation necessary to complete the audit procedures.

    3) Throughout our audit procedures related to SPLOST V, our team has requested from DCSD staff
       members answers to clarifying questions regarding supporting documentation. Managing these
       communications and follow-ups with DCSD SPLOST process owners has required our team to
       dedicate additional hours that were not anticipated at engagement initiation.

We respectfully request an additional amount of $320,000 which is based upon our estimates for
completion. Itemized costs are summarized in the table below.

                                                                          Contract
                         Task                             Est. Hours     Hourly Rate         Fees
 Task 1: Documentation Gathering and Indexing                560            $225       $ 126,000
 Task 2: Audit of Documentation                              820            $225       $ 184,500
 Expenses Related to Travel for Phase 1                                                $ 20,000
 Plante Moran’s share of travel expense that will not be billed to the District        $ (10,000)
 Change Order Total                                                                    $ 320,000


Thank you,

Plante & Moran, PLLC