HomeMy WebLinkAboutResolutions - 1983.05.05 - 11656MI 0 'US RESOLUTION 8311 7 May 5, 1983
BY FINANCE COMnITTEE, DR., C. WTLLTAM CADDELL, CHAIRPERSON
IC RE z INI 1E(:EKDENT AUDIT OF OAKLAND COUNTY
TO THE OAKLAND COUNTY BOAPD OF COMMISSION -EPS
Pi. Chairperson, Ladies & Gentlemen:
WHEREAS the federal revenue sharing regulations require each.
recipient government to conduct an all funds independent audit once
every three years; and
WHEREAS the Federal Office of Management & Budget has issued
circular 4-102 attachment P which encourages all local units of
government to adopt the single audit concept for federal grant
audits; and
WHEREAS the U.S, Department of Labor, Of :'ice. Inspc2ctor
General. is requiring a unifying audit of the compreLersive audit
of the employment and training acts for 1982 al.1:1 1T3i and
WHEREAS the State of Michigan Department of Treasury will
require a legal compliance audit to be denducLed in cos 0::
the federal revenue sharing audit; and
WHEREAS the County of Oakland is desirous in havind ,Dri independent
aT1 funds financial audit, conducted annually; and
WHEREAS the present audit contract expires upon the completion
of the audit of calendar year 1982; and
WHEREAS it is necessary to seek request for proposals from the
independent certified public accounting firms to perform these audits
for Oakland. County for the years 1963, 1984 and 1985.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commisioners authorizes the County Executive to receive. proposals
from, the various eligible independent certified public accounting
Firms to meet our audit needs for 1983, 1904 and 1985, as outlined in
the attached request for proposal.
Mr. Chairperson, on behalf of the rialance Committee I move the
adoption of the foregoing resolution,
#831 I7 May 5, 7993
5th this day of May 19 83
Moved by Caddell supported by Jackson the resolution be adopted.
AYES: Law, McConnell, McDonald, McPherson, Moffitt, Moore, Nelson,
Olsen, Perinoff, Pernick, Price, RewoId, Wilcox, Aaron, Caddell, Calandro, Doyon,
Foley, Fortino, Geary, Gosling, Hobart, Jackson, R. Kuhn, S. Kuhn, Lanni. (26)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution #83117 adopted by the .Oakland County Board of Commissioners
at their meeting held on May 5, 1983
with the original .record thereof now remaining in my office-, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
LYNN/3. ALLEN, County Clerk/Register of Dt-J.
Deputy Clerk
COUNTY OF OAKLAND
REQUEST FOR AUDIT PROPOSAL
VI.
VIL
VIIL
TABLE OF CONTENTS
PAGE
I. Scope of the Audit, Audit Standards and Reporting Requirements ....... I
Description of Funds to be Audited .....••••••••••nn ••••••••••••••••"
ilL Description of Financial and Data Processing System .................. 11
Assistanc e to Proposers ..••••••••••••••••Pootseso•••••••••••••.•••n••• 13
V . Contents of Proposal eoe•oeon•••oeaeoePOP•••••••••••n•••••n•••eeeeea 14
Method of Evaluation and Selection • .•••••••••••••••••••nn •••••Oe• 15
Procedure for Submitting Proposal Coe -twee...". o•nn •••n •••eee•se e •••••• 17
Miscellaneous Items • — •aleoenome••••••••••••••••nn ••••••••••••wa• 19
IX. General Description of Oakland County ..... — — ..... ......... 21
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IV.
A. Scope of the Audit
The purpose of this examination is to express an opinion on the financial
statements of Oakland County for each year in the three year period beginning
with the year ended December 31, 1983. In addition to audits of the annual
financial statements, audits will be required of the Comprehensive
Employment and Training Act Grant for the fiscal years 1982 and 1983. The
County of Oakland is a prime sponsor for C.E.T.A. Grants and these audits are
to be unified audits of both the prime sponsor and subrecipients. If an
unqualified opinion will not be issued the reasons must be given in advance, in
writing. At the conclusion of the audit, a letter of comments and
recommendation shall be submitted. This letter should include a summary of
the audit findings and recommendations for change in accounting procedures
and methods of internal control.
Each audit will also meet requirements established by the Federal Office
of Management and Budget circular A-102 attachment P along with the
compliance supplement. The Federal cognizant agency for Oakland County is
the U.S. Department of Labor.
The County of Oakland is a recipient of Federal Revenue Sharing Funds
and as such is subject to financial and compliance audits every three years
under the Federal Revenue Sharing Act. The year for such audit is to be the
year ended December 31, 1983.
The County must also meet financial and compliance standards
established by the Treasurer of the State of Michigan. An examination is
required only once in three years and must be the same year as the revenue
sharing examinations. The Treasurer of the State of Michigan will be
receiving proposals under separate cover.
It is not intended that the audit would lead to additional contracts for
consulting services or services to correct deficiencies found through the audit.
It is general Oakland County policy that all such work would be done internally
by our own staff. In the event that corrective action can only be done by
outside firms, it is our policy to request new proposals for such work.
Generally, the firm conducting the audit would not be considered an
appropriate bidder for these new contracts.
B. Audit Standards
The audit is to be performed in accordance with:
I. Generally accepted auditing standards promulgated by the American
Institute of Certified Public Accountants.
2. Generally accepted auditing standards of the United States General
Accounting Office as set forth in Standards for Audit of Governmental
Organizations, Programs, Activities, and Functions.
3. Standards prescribed by the Treasurer of the State of Michigan.
4. Standards prescribed . in the Guidelines for Financial and Compliance
Audits of Federal Assisted Programs published by the United States
General Accounting Office.
5. Requirements outlined in the Federal Office of Management and Budget
Circular A-102 with attachment P and the compliance supplement.
6. Standards prescribed in the Audit Guide and Standards for Revenue
Sharing and Anti-recession Fiscal Assistance Recipients published by the
Federal Department of Treasury.
C. Report Requirements
The accounting and financial reporting of the County is performed in
accordance with generally accepted accounting principles as established by the
following:
2
I. The National Council on Governmental Accounting
2. Statements of the Financial Accounting Standards Board
3. "Audits of State and Local Governmental Units," including applicable
Statements of Position published by the American Institute of Certified
Public Accountants.
A comprehensive annual financial report will be prepared by the County
using the 1980 edition of "Governmental Accounting, Auditing, and Financial
Reporting" as a guideline. The auditors opinion will be included in the
County's financial statements. The County will be responsible for typing and
printing the financial reports.
At the conclusion of the audit, a letter of comments and
recommendations shall be submitted. The letter should include a summary of
the audit findings and recommendations for change in accounting procedures
and methods of internal control. The letter shall be addressed to Daniel T.
Murphy, Oakland County Executive. A minimum of one hundred copies of the
letter shall be furnished by the auditor.
Prior to submission of the completed report, the audit firm's staff will be
required to review a draft of the proposed report and management letter with
individuals named by the County Executive. In addition the audit firm's staff
will be required to review the Final Audit Report with the Finance Committee
of the Oakland County Board of Commissioners and may be required to review
the audit with the State Treasurer. The County will require that the audit of
the Comprehensive Annual Financial Report be completed by April 15 of the
year subsequent of the year being audited.
Report requirements specifically related to the audit of Comprehensive
Employment and Training Act funds will meet the recommendation of the
Office of Inspector General for the Department of Labor.
Description of Funds to be Audited
The General Fund is the largest fund and is used to account for all financial
transactions not properly accounted for in another fund.
Special Revenue Funds have been established to account for the proceeds of
specific revenue sources (other than special assessments) or to finance specified
activities as required by law or administrative regulations and include 87 funds as
follows:
Number
Fund Series . of Funds Description
22100 County Health Fund
22200-22201 2 Community Mental Health Fund
24900 1 Federal Revenue Sharing Fund
25900 1 Indigent Housing Fund
26000 1 Land Sales Fund
26800 1 County Library Fund
26900 1 Law Library Fund
27302-27537 53 Federal & State Grand Project Fund
Funds including CETA
29005 1 Social Welfare Funds
29210-29280 4 Child Care Funds
4
Fund Series
Number
of Funds Descrition
Debt Service Funds have been established to account for the accumulation of
resources for the payment of general long term debt principal and interest
31402-39900 144 Bond and Interest
Redemption Funds for
various Drainage Districts,
Oakland County Building
Authority and Airport
1-Hangar Construction Fund
(Listing furnished on request)
Capital Project Funds are used to account for the receipt and disbursement of
monies used for acquisition of Capital Facilities other than those financed by special
assessment, internal service and enterprise funds:
Number
Fund Series of Funds Description
40100 1 Building Fund
40200 1 Utilities Capital Improvements Fund
40300 1 Executive Office Building Const Fund
40400 1 Work Project Orders Fund
46100 1 Children's Village Construction Fund
Phase H
46150 1 Children's Village School Grant Fund
5
Fund Series
Number
of Funds Description
60600
60800
61673-61683 11
Enterprise Funds have been established to account for financing of special
activities and services performed for the General Public where the intent is to
recover the cost of the services through user charges and include the following:
Number
of Funds Fund Series
51200-51400
53000
53001-53028
58100-58120
59500
55100
Description
3 Building Authority Fund
1 Medical Care Facility Fund
28 Economic Development
4 Airport Funds
1 Food Service Fund
County Market Funds
Internal Service Funds were established for financing of special activities and
services performed by designated organizational units within Oakland County's
governmental jurisdiction for other organization units within the same governmental
jurisdiction and includes:
60100 Approx. 340 Drain Revolving Fund
separate entities
Lake Level Advance Fund
Lake Improvement Revolving Fund
Delinquent Tax Revolving and 100%
Tax Payment Various Series Fund
6
Number
Fund Series of Funds Description
62800 1 Audio Visual Aide Center Fund
63100 1 Facilities & Operations Fund
63300 1 Central Stores Fund
63600 1 Computer Service Fund
63900 1 Drain Equipment Revolving Fund
64600 1 Equalization Revolving Fund
65100 1 Laundry Fund
65400 1 Reproductions Fund
66000 1 Radio Communications Fund
66100 1 Motor Pool Fund
66400 1 Office Equipment Fund
66410 1 Convenience Copier Fund
66700 1 Stationery Stock Fund
67500 1 Communications Fund
Trust and Agency Funds are maintained to account for assets held by a
governmental unit and trustees or agent for individuals, private organizations and
other governmental units and includes:
7
Number
Fund Series of Funds Description
70145 1 Escheats Fund
70146-70152 5 State Funds
70200-70430 12 Undistributed Tax Funds
70501 1 Alimony Investment Trust Fund
70504 1 Cash Bond or Bail Fund
70506 1 Children's Village Investment Fund
70507 1 Child Advocacy Family Services
Project Fund
70508 1 Circuit Court Trust Fund
70510 1 Contractor Retainage Fund
70550 1 Legatee Fund
70555 1 McGregor Trust Fund
70558 1 Special Trust Fund
70565 1 Public Library Fund
70560 1 Psychological Training Project Fund
70650 1 Public Library Fund
70570 1 Redemption Trust Fund
70571 .1 Register of Deeds
70591-70593 4 District Court Trust Funds
71200-71270 12 Manpower Administrative &
CETA Funds
73000 1 Employees Retirement
73300 1 Employee& Deferred Compensation Fund
Fund Series
73500
73510
73520
73600
Description
Various Special Assessment
Funds (List furnished on request)
Number
of Funds
157
Fund Series
80800-85000
Number
of Funds Description
1 Fringe Benefit Fund
1 Workman's Compensation Fund
Unemployment Compensation Fund
1 Southeastern Oakland County Sewage
Disposal System Fund
Special Assessment Funds were created to account for special assessments
levied to finance public improvements or services petitioned by local units of
government The Drain Commissioner or the County D.P.W. act as the agent for the
local unit in issuing bonds and overseeing construction.
Please note that a complete fund listing with year end fund balance is
available upon request.
9
Fund Series
Number
of Funds Description
Fund Series
Number
of Funds Description
20800 Parks & Recreation Fund
The following funds are to be included in the combined financial statements, but are to be
excluded from the audit of the County:
20100 1 County Road Fund
70573 1 County Road Excrow Fund
86000 1 Road Comm. Special Assessment Fund
73400 1 Road Comm. Retirement System Fund
74500 1 County Road Risk Management Fund
47500 1 Road Comm. Orion Road Fund
70125 1 Road Comm. Social Security FICA Fund
Road Commission funds are excluded from the audit because the Oakland
County Road Commission has separate annual audits performed by Plante & Moran,
C.P.A.'s.
Parks and Recreation
The Oakland County Parks ESc Recreation Commission Fund is excluded because
it is audited annually by Janz & Knight, C.P.A.'s.
10
IlL Description of Financial & Data Processing Systems
Oakland County's Accounting records are kept on a modified accrual basis for
the General, Special Revenue, Capital Project, Enterprise and Internal Service
Funds. Trust and Agency, Debt Service and Special Assessment Funds are largely on
a cash basis. An encumbrance system is utilized for the payment of bills with the
input to the system being from purchase orders and from automated accounts
payable system. The system is generally in compliance with State and Federal
regulations and adheres closely to the concept and principles of the National Council
of Governmental Accounting with the exception of Fixed Asset Accounting. There
is currently no Fixed Asset group of accounts but a computerized system is now
being developed for installation in 1984.
The financial system is almost completely automated with the exception of
some funds and it is anticipated that all funds will be on the system by the end of
1983. An integrated Payroll and Personnel System processes hourly and salaried
payrolls, overtime, retirement and retroactive pay and electronically interfaces
with the financial system. As previously mentioned, an automated Accounts
Payable System interfaces the main financial system and an accounts receivable
system is currently being designed and implemented. The Payroll System is a batch
processing, on-line inquiry (C.I.C.S.) system utilizing C.O.B.A.L. (DOS/VSE).
Approximately 100-150 thousand checks are processed annually. The general ledger
system was developed from a package originally supplied by I.B.M. (B.A.C.I.S.) and
has been extensively modified. It is a batch processing, on-line inquiry and data
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entry (C.I.C.S.) system utilizing C.O.B.A.L. and Panosophic Easytrieve. There are
approximately 46,000 on-line items and in excess of 600,000 annual transactions
processed annually.
The Oakland County Computer Services Department currently utilizes I.B.M.
4341 Model Group IT Processors, (2) 3705 Communication Controllers, and 327x type
terminals. The system software includes: DOS/VSE, ClCS, vsANA, COBOL,
EASYTIZIEVE, IDMS DB/DC, RJE, SOLC, VTAM/NCP.
12
. IV. Assistance to Proposers
The County of Oakland's Management and Budget Department will assist the
firm selected in preparation of the annual audit. Those employees assigned to work
closely with the proposer are the following:
James M. Brennan, Director, Department of Management & Budget
Thomas M. Duncan, Manager of Accounting -
Thomas W. Ott, Chief of Special Accounting
Webster Gemmel, Chief of General Accounting
Gary Mann, General Accounting Supervisor
Don L. Lumsden, Chief of Institutional & Alimony Accounting
Douglas I Williams, Chief Deputy Treasurer
Rebecca Holowicki, Accountant
The personnel from the Accounting Department will prepare the draft of the
financial statements. In addition, they will assist in the preparation of audit
schedules and other audit functions, where appropriate. Upon completion of the
examination, the financial report will be typed and reproduced by the Accounting
Department.
The County's internal audit staff will not be available to assist in preparation
of the annual audit, however, copies of their audit reports will be available for
review. Any decision for auditing through the Oakland County Data Processing
System will be based on agreement reached between the County Executive and
proposer.
The County Department of Management and Budget and County Treasurer's
office realize that a firm in its first year of an engagement encounters certain
problems, and will assist the selected proposer in any realistic manner in order to
insure no decrease in the quality of work performed.
Office space will be available for representatives from the selected proposer
to perform all field work.
13
Contents of the Proposal
The audit proposal should be submitted in two parts. PART ONE will be used
to qualify the prospective proposers. PART TWO will be used to determine the
lowest qualified bidder, PART ONE should include the following items:
_I. A description of the auditing firm
2. A summary of the firm's experience in auditing governmental units
3. A list of present governmental clients in the State of Michigan including a
contact person
4. An example of an audited comprehensive annual financial report and a
compliance report of a similar government entity
5. Personnel resumes on those staff expected to service the County
6. A description of the auditing approach including allocation of resources
7. A timetable for delivering services
8. An estimate of the number of manhours required to complete the audit,
detailed in accordance with the following schedule:
1982 1983 1984 1985 TOTAL
All Funds Financial
Requirements of OIVIB A-102
Attachment P
Unified CETA Audit
Requirements of the Office
of Revenue Sharing
Total
MEMO: Manhours for State
Legal Compliance Audit
14
PART TWO is a sealed bid proposal and should include a schedule of fees and
the total audit costs in accordance with the following schedule:
1982 1983 1984 1985 TOTAL
All Funds Financial $ $
Requirements of OMB A-102
Attachment P
Unified C:ETA Audit
Requirements of the Office
of Revenue Sharing
Total $ $ $ $ $
MEMO: Manhours for State
Legal Compliance Audit
VI. Method for Evaluation and Selection of Proposer
Qualification of proposed bidders will be determined by the Finance
Committee based on staff evaluation of technical qualifications as contained in
PART ONE of the proposal. A maximum of 75 points could be awarded with a
minimum score of 60 to qualify. The sealed bid proposals (PART TWO) from firms
that fail to qualify will be returned unopened. A contract will be awarded to the
lowest bidder. in the event of a tie, the contract will be awarded to the lowest
qualified bidder scoring the highest qualifying points.
15
0-5
0-5
0-20
0-10
0-15
75
The evaluation of technical qualifications will be based on the following
criteria:
FACTOR
I. Organization size and structure of firm
2. Prior auditing experience
a. Preparation of Comprehensive Annual
Financial Reports & Compliance Audit
b. Auditing local governments
c. Auditing similar entities
3. Qualifications of staff, including consultants,
to be assigned to audit. Education,
position in firm, and years and types of
experience will be considered. This
will be determined from resumes submitted.
a. Qualifications and audit team makeup
b. Overall supervision to be exercised
over audit team by firm's management
4. Firm's understanding of work to be performed.
This will be determined by the approach to the
audit and the time estimate to perform each
section.
a. Audit coverage
b. Realistic time estimates of each
program section
Technical Points
POINT RANGE
0-5
0-5
0-10
16
VII. Procedures for Submittin Pro
1. Time Considerations and Requirements
The following dates are presented to give a clear definition of the
sequence of events and the time frame in which they will occur. The dates are
firm unless waived by an authorized person.
EVENT DATE
a. Proposer's Conference May 13, 1983
The Proposer's conference will be held at 2:00 p.m., Friday, May
13, 1983 in the Personnel Conference Room, Room 105, 1st floor, County
Executive Office Building, 1200 North Telegraph Road, Pontiac,
Michigan, 48053. At this proposers conference, the following documents
will be available:
1. Oakland County financial report for fiscal year ending
December 31, 1981
2. The Drain Commission annual report for 1982, Volume II of II
Financial Section
3. Oakland County 1983 adopted budget
4. Listing of Federal Grants
5. List of CETA subrecipients
6. Sewer and Water Financial Report
b. Proposal PART ONE Submitted 12:00 Noon, June 13, 1983
c. Conduct Proposal Evaluations 6/13/83-6122/83
d. Recommended Audit Firm to Finance
Committee for confirmation -
special meeting 6/23/83
e. Receive sealed bid proposal PART
TWO, fee schedule and total
proposed audit costs 6/28/83
17
Recommend audit firm to Finance
Committee 6/30/83
Contract Award Approval -
Board of Commissioners 7/7/83
Prior to award of the contract to the selected firm, the Oakland County
Board of Commissioners must approve the contract and the funds must
be appropriated.
h. C.E.T.A. subrecipient field work
completed 9/30/83
preliminary Audit Report due 11/30/83
j, C,E.T.A. Final Audit Report due 12/31/83
k. Date for Preliminary Report 04/15/84
Completion and Review
1. Date for Final Report Submission 04/30/84
m. Date for presentation to the Finance Committee of the Oakland County
Board of Commissioners will be set at a future time.
2, Where and To Whom Proposal Must be Sent
a. Send all proposals to:
Director of Management & Budget
County of Oakland
1200 North Telegraph
Pontiac, Michigan 48053
3. a. All proposals (PART ONE) must be received by 12:00 noon on June
1983.
Eight (8) copies of the proposals must be submitted. Please mark
envelope "OAKLAND COUNTY AUDIT PROPOSAL."
b. All proposals (PART TWO) must be received by 12:00 noon on June 28,
1983.
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g.
VIII. Miscellaneous items
A. Addenda to the R.F.P.
In the event it becomes necessary to revise any part of this R.F.P.,
addenda will be provided to all contractors who receive the basic R.F.P.
B. incurring Costs
The County of Oakland is not liable for any cost incurred by contractors
prior to issuance of a contract.
C. Rejection of proposals
The County of Oakland reserves the right to reject any and all proposals
received as a result of this R.F.P., or to negotiate separately with any source
whatsoever in any manner necessary to serve the best interests of the County.
This R.F.P. is made for information or planning purposes only. Oakland
County does not intend to award a contract solely on the basis of any response
made to this request or otherwise pay for the information so/icited or
obtained.
D. Oral Presentation
Contractors who submit a proposal may be required to make an oral
presentation of their proposal to an Evaluation and Selection Team designated
by the County Executive of Oakland County.
E. Prime Contractor Responsibilities
The selected contractor will be required to assume responsibility for all
services offered in his proposal whether or not he produces them.
Furthermore, Oakland County will consider the selected contractor to be the
sole point of contact with regard to contractual matters, including payment of
any and all charges resulting from the contract.
19
F.
H.
Non-Discrimination
In connection with the performance of work under this Contract, the
Contractor agrees not to discriminate against any employee or applicant for
employment because of sex, race, religion, color, national origin, or handicap.
The aforesaid provision shall include, but not to be limited to the followinge
recruitment or recruitment advertising; employment, upgrading, demotion or
transfer; layoff and selection for training, including apprenticeship, in
accordance with rules and regulations promulgated by the Federal (Compliance
Responsibility for Equal Employment Opportunity - Chapter 60, 60-1, 4, No. 1-
7) and State (Standards and Procedures for Executive Directive 1975-6,
Section H-C, IV-C and V-A & B) agencies and related Federal and State Laws
and Regulations.
News Releases
News releases pertaining to this R.F.P. or the audit project to which it
relates will not be made without prior approval of the office of the County
Executive, County of Oakland.
Contract Payment Schedule
Payment for any contract extended into as a result of the R.E.P. will be
made monthly upon receipt of contractor's billing statement. Eighty percent
of each monthly invoice will be remitted. The remaining 20% will be paid
upon delivery and acceptance of the final audit reports.
20
IX. general Description of Oakland County
To give the proposer a better understanding of the County and the community
it serves, a brief description of the organization and the community itself is
provided as follows:
A. Geo - Oakland County is a 907 square mile area abutting the
northern border of the City of Detroit. Except for a small irregularity in its
northern border, the County is a perfect square, reflecting the original plan of
25 townships, each six by six miles, when the County was organized in 1820.
Oakland's outstanding physical feature is its water; there are 450 lakes
of at least 10 acres in size, and approximately 1,200 smaller lakes and ponds.
The headwaters of five river systems also rise within its borders. In
consequence, Oakland has been an important recreation area throughout the
20th century.
Emulation - The 1980 census places the County's population at
1,011,792,, making it larger than 13 states and all but eight cities in the nation.
It is the second most populous of the seven county Detroit Metropolitan
Region. The 1980 census indicated that about five percent of the residents are
black, and one percent Latin-American. Nearly all of the remainder are of
Northern European extraction.
The 1980 census also ranked Oakland as the 11th most affluent of the
nation's 3,137 counties; second among those over one million in population.
Oakland consistently tops the list of Michigan's counties in both median and
per capita income, and the County has a wide-spread reputation among state
residents as a home for the affluent.
21
C. Government - There are 61 political subdivisions within Oakland County
- 26 cities, 23 townships, and 12 villages. Approximately 250 elected officials
set policy for these jurisdictions.
Until 1968, County government was administered by the Board of
Supervisors, which at that time had 87 members. Following the Avery V.
Midland County Texas Supreme Court decision, Michigan enacted "one man,
one vote" legislation. The Board of Supervisors was renamed the Board of
Commissioners and membership was reduced to a range of 25 to 35 persons.
After the 1970 census, the present 27-member body was established, with each
commissioner representing a district of approximately 34,000 residents. The
1980 census altered the district boundaries and increased the number of
constituents to about 37,500 but the Appointment Commission did not change
the number of seats from 27.
From 1851 to 1974, the administrative arm of County government was
the Board of Auditors. The auditors, appointed to staggered three-year terms
by the Board of Supervisors (and then by the Commission), supervised the daily
activities of the 27 separate departments of government, and prepared the
annual budget. Beginning in the late 1950s, the Chairman of the Board of
Auditors, elected by the Board of Commissioners from among the three
auditors, had achieved such power and authority as to be the "real"
administrative head of County government.
In addition to the Board of Auditors, there existed more than 30 other
boards, commissioners, and authorities. In most eases, appointment was made
to these by the Board of Commissioners, although some were state
appointments.
22
In 1974, the Michigan Legislature enacted Public Act 139 9 "the unified
form of county government act." Counties, by majority vote of the residents,
were permitted to adopt Act 139 as their operating code. Among other things,
the Act created a chief executive who could either be an elected County
Executive or a County Manager appointed by the Board of Commissioners.
In August of 1974, the voters of Oakland adopted Act 139 and chose the
elected County Executive option. The first and currently incumbent County
Executive was elected on a partisan basis the following November and took
office January 1, 1975. After serving an initial two year term, the County
Executive is elected to a four year term of office concurrent with the other
elected department heads.
Among other powers and duties granted to the newly established office,
the County Executive shall:
1) Supervise, direct and control the functions of all departments of
the County except those headed by elected officials.
2) Coordinate the various activities of the County and unify the
management of its affairs by enforcing all orders, rules, and
ordinances of the Board of Commissioners and laws of the State
required to be endorced by his office.
3) Prepare and submit to the Board a Recommended Annual County
Budget and Work Program, and administer the expenditure of funds
in accordance with appropriations. And, not less than once each
year, submit to the Board a proposed long-range capital
improvement program and capital budget.
23
In addition, the County Executive may veto any ordinance or resolution
adopted by the Board, including all or any items of an ordinance appropriating
funds (certain specific exclusions were included in a subsequent amendatory
act , P.A. 100 of 1980). As previously indicated, the County Executive shall be
responsible for the overall supervision of all County departments with the
following exceptions:
- Apportionment Commission
- Airport Zoning Board of Appeals
- Board of County Canvassers
- Board of Determination for Drainage Districts
- Civil Service Commission (Appeal Board)
- County Drainage Board
- Concealed Weapons Licensing Board
- Election Commissioner
- Jury Commission
- Library Board
- Parks and Recreation Commission
- Social Services Board
- Retirement Commission
- Plat Board
- Mental Health Board
- Board of Institutions (Medical Care Facility)
- Building Authority
- County Road Commission
24
- County Commissioners
- Prosecuting Attorney
-•ClerlaRegister
- County Treasurer
- County Sheriff
- County Drain Commissioner's Office
The foregoing officials continue to exercise the powers and functions as
provided by law, unless other powers and functions are delegated to an official
by the County Board of Commissioners. (A County Organization Chart is
provided as Attachment A.) The County Board of Commissioners, consisting
of 27 members elected on a, partisan basis to a two-year term of office, is the
governing
1) Establish policies to be followed by the government of the County
in the conduct of its affairs.
2) Adopt ordinances, rules and resolutions necessary for the conduct
of County business.
3) Establish committees of the Board necessary for the efficient
conduct of County business. Currently there are six Standing
Corn mittees:
- Finance Committee
- Health and Human Resources Committee
- Planning and Building Committee
- Public Services Committee
- General Government Committee
- Personnel Committee
body of the County and, as such, may among other things:
25
4. Accept gifts and grants in aid from a government or private source.
5. Adopt the annual County Budget and work program, and adopt and from
time to time revise and update a long range capital improvement
program and capital budget, as well as make appropriations, levy taxes,
and incur indebtedness in the manner authorized by law.
6. Inquire into the investigate the official conduct -and audit the accounts
of any County office.
Budveted Ooerations - The Annual County Budget recommended by the
County Executive and adopted by the County Board of Commissioners provides
an estimate of revenues and appropriations for the following funds:
- General Fund
- Health Fund
- Medical Care Facility
- Children's Village
- Camp Oakland
- Juvenile IVIaintenance
- Social Welfare
26
ear
1960
1961
1962
1963
1964
1965
1966
1967
1968-
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980 •
The primary source of revenue to fund budgeted operations is the current
Property Tax Levy. A history of budgeted finances is provided as follows:
S.E.V.
On millions)
Tax Total
Levy Budget
Year-End
Balance
Tax
Rate
1,822.9 5.62 mills 10,244,784 12,626,784
2,008.6 5.48 mills 11,007,232 13 5 600,733
2,094.7 5.25 mills 10,997,082 14,845,587
2,112.4 5.25 mills 11,090,143 15,536,902 5,359
2,202.6 5.19 mills 11,431,626 16,035,026 37,971
2,308.7 5.26 mills 12,143,678 17,218,878 (364,137)
2,447.4 5.30 mills 12,971,132 18,180,659 (38,785)
2,689.1 5.40 mills 14,520,982 18,463,932 245,940
3,6c3.4.7 5.40 mills 16,387,412 21,134,162 510,675
3,460.4 5.28 mills 18,270,759 25,833,778 429,184
4,026.2 5.16 mills 20,775,003 29,954,644 115,306
4,739.0 5.16 mills 24,453,191 35,675,691 389
5,098.5 5.26 mills 26,818,259 39,415,348 548,312
5,386.8 5.26 mills 28,334,795 44 3 549,057 984,040
5,836.9 5.26 mills 30,702,287 49,099,224 583,315
6,589.5 5.26 mills 34,661,027 55,737,288 36,114
7,181.6 5.26 mills 37,775,000 60,358,347 1,969,944
(1)
7,008.3 5.26 mills 36,863,881 66,180,269 1,275,215
7,714.8 5.23 mills 40,348,405 74,769,761 1,489,940
8,620.3 5.23 mills 45,083,996 78,669,772 1,975,725
9,847.8 4.90 mills 48,254,235 87,110,947 1,666,575
162,711
27
5pr,V. Tax Tax Total Year-End
Year(in millions) Rate Levy Budget Balance
1981 11,651.5 4.7031 mills 54,798,059 96,207,340 2,339,486
1982 13,247.8 4.6391 mills 61,457,994 109,600,014 2,320,282
(2) i983 14,277,4 4.6391 milts 66,234,125 114,340,505
(1) The decrease in valuation is a result of the new Michigan Single
Business Tax which exempts certain business inventory from ad valorem
taxation effective January 1, 1976. The new legislation also provides
that units of government will be reimbursed by the State out of
collections of revenues produced by the new Single Business Tax for the
loss sustained due to the elimination of inventories from the personal
property tax rolls, A personal property valuation loss of $477,191,347
has been agreed upon as the figure that is used for calculating annual
reimbursements. The settlement from the State is based upon the
County's operating millage rate and is received in February of the
following year.
(2) The Michigan State Tax Commission increased the equalized value
of residential property a factor of six percent (6%), Oakland County is
currently contesting this action in the State Court of Appeals.
Governmental Services Provided by Oakland County_ - The County budget
logically encompasses the i-tajor functions of the Cunty which offers a wide
variety of services to its residents. These governmental services have been
organized into major program classification and are discussed below:
28
The Administration of Justice Program includes:
Circuit Court
District Court
Probate Court
Juvenile Court
Law Library
Friend of the Court
Juvenile Maintenance
There are fourteen (14) Circuit Judges for the Sixth Judicial Circuit of
Michigan (Oakland County). The Circuit Court is a constitutional court, in
that it is mandated by Article VI of the 1963 State Constitution and has
original jurisdiction over all felony and divorce cases and most civil cases. It
is also the appeal court from decisions of the District, Municipal and Probate
Courts. The Circuit Court also provides administrative direction for the Law
Library, providing a comprehensive source of Federal and State legal material
for Oakland County.
It is the duty of the Friend of the Court to examine all records and files
in divorce cases where orders of decrees have been rendered and there are
dependent minor children listed as wards of the Court, The Friend of the
Court investigates all cases in pending divorce matters where there are minor
children; makes recommendations to the Circuit Courts on custody and
support, act as referee in taking of testimony of witnesses and statements of
parties upon pending motions involving minor children, and cites by contempt
action the defaulting payors who fail to comply with court orders for support
of minor children.
29
Public Act 4154 of 1968 established the District Courts of the State of
Michigan to replace the old Justice of the Peace system. The District Court
has jurisdiction of all misdemeanors, ordinances and charter violations, and of
all preliminary examinations in all felony cases. The District Court has
exclusive jurisdiction in civil actions when the amount does not exceed
$10,00fi, Public Act 4154 also established - Oakland County as the "District
Control Unit" for the 52nd District Court. The District Control Unit is
responsible for maintenance and operation of the courts and shall provide
suitable places where the judges shall hold court. The 52nd District Court
maintains nine District Court Judges and their staff at four locations:
Division I - Walled Lake
Division II - Clarkston
Division II/ - Rochester
Division IV - Troy
The Probate Court Department is comprised of three divisions. Probate
Court Division has jurisdiction over all matters relating to the settlement of
the estates of all deceased persons, the appointment of guardians of minors
and mentally ill persons, and of all cases involving juvenile delinquents and
dependents.
The Juvenile Court Division handles cases- involving neglected,
dependent, and delinquent minors. It makes investigations, provides clinical
services and casework supervision, and an adoption and foster boarding home
program.
The Juvenile Maintenance Division expends funds for board and care of
children through eighteen years of age who are placed in state institutions,
private institutions, and Juvenile Court foster boarding homes.
30
As a constitutionally created office, the Prosecuting Attorney has the
primary responsibility for the direction and control of criminal prosecution in
Oakland County representing the people of the State of Michigan.,
The Sheriff's Department is responsible for the delivery of law
enforcement services to the unincorporated areas of the County, the provision
of contractual service for law enforcement as required by participating
townships; the provision of support services in the areas of criminal
investigation, scientific analysis of evidence, and polygraph testing to other
departments as required.
The Sheriff's Department also accepts, delivers, and serves papers,
summonses, and subpoenas; executes civil court orders as directed by the
Circuit and other courts of the County; collects fees; conducts confiscations;
effects tax sales as directed by courts of competent jurisdiction.
It is also responsible for the maintenance of the County Jail, for the
housing, care, and custody of all prisoners in the County sentenced to one year
or less, of all nonbonded prisoners awaiting trial in Circuit Court, and those
detained for arraignment or trial in the several District Courts.
The Sheriff's Department has a statutory responsibility for the patrol of
450 lakes in the area, for which it maintains a fleet of boats and provides
divers for underwater recovery and rescue attempts.
The General Government and Legislative Program includes such
functions as the Clerk/Register, Treasurer, Drain Commissioner, Civil Counsel
and the Board of Commissioners. The office of the County Clerk and Register
of Deeds has been combined in Oakland County since 1958. The County Clerk
is general recorder of various official County records, such as births, deaths,
marriages, business and professional registration and Circuit Court records.
31
The County Clerk is the clerk to the Circuit Court, Secretary to nearly all
official County Boards and Commissions including the Board of
Commissioners, and is also the administrative official of the County Election
Commission. The division handles processing of applications for passports and
for citizenship and performs nurnberous statutory recording and clerical
services.
The Register of Deeds Office records official documents affecting
property 6wriership such as warranty and quit claim deeds, plats, mortgages,
chattel mortgages, surveys, land contracts and condominiums.
The County Clerk also certifies to the Board of Election Commissioners
the names and post office addresses of all party candidates whose petitions
meet the requirements of the Michigan Election Law. Upon completion of any
investigation or examination, the County Clerk shall make an official
declaration of the sufficiency or insufficiency of any nominating petition for
which a sworn complaint has been received or examined on his own initiative.
Principal functions of the 2.2.21y:Treasurer's Office are to:
- Receive, maintain custody of and disburse all County monies.
- Perform all investment, borrowing and debt management functions.
- Maintain the highest level of investments with the best interest rates
possible.
- Collect delinquent taxes in accordance with statutory provisions.
- Open and inventory contents of safety deposit boxes.
- Collect inheritance taxes.
- Sell dog licenses.
- The County Treasurer is also a member of the County Election Board,
Plat Board and Reappointment Commission.
32
- He is also Secretary/Treasurer of the County Employees
Retirement Commission, County Road Retirement Commission,
Deferred Compensation Board, Road Commission and all Drainage
Districts,
The Oakland Count: Drar.: Commissioner supervises and administers
upon petition by local units of government, the construction of new storm
drains and as agent for the County of Oakland by designation of the Board of
CoramissL,7mer'&, supervises and administers the construction of sewer and
water projects for local units of government in Oakland County. The Drain
Commissioner also operates, inspects and maintains previously constructed
County drains, both open and enclosed; and also operates and maintains the
legal levels of 42 lakes located within Oakland - County. The Drain
Commissioner also supervises and administers the operation of the
Southeastern Oakland County Sewage Disposal System serving 14
municipalities; the Drain Commissioner also represents both the municipalities
within the Southeastern Oakland County Sewage Disposal System and also, by
designation of the Board of Commissioners, the municipalities served by the
Evergreen-Fartnington, Clinton-Oakland and Huron Rouge sewer systems in
their contractual relationship with the City of Detroit which operates a
regional sewage treatment plant which accepts the sewage flow from all of
these districts. The Drain Commissioner also supervises the review of all
engineering plans for new subdivision plats to assure that they provide for
proper storm drainage; administers the enforcement of the Soil Erosion and
Sedimentation Act in 48 municipalities within Oakland County; serves as a
member of Lake Improvement Boards to improve certain Oakland County
lakes; and serves as a member of the County Parks and Recreation
Corn mission.
33
CiVil Counsel_ represents the County in all civil matters, and defends all
civil suits against the County, or any County official, or acts arising in the line
of duty. This office advises and assists all County officials, commission and
department heads on business and legal metters incident to the conduct of the
officials or departments. In addition, Civil Counsel attends all meetings of the
Board of Commissioners and acts as parliamentarian thereof, and advises and
assista all standing and special committees of the Board, when requested. The
office also renders, on written request, written opinions to officials or
department heads on the legality of actions or their interpretation.
As i ndicated previously, the Board of Commissioners is the legislative
body of Oakland County and in addition discharges a number of policy-making
responsibilities assigned by Public Act 139 of 1973; Unified Form of County
Government.
The County Executive, pursuant to Act 139 of the Public Acts of 1973,
supervises, directs and controls the functions of all departments of the County
except those headed by other elected officials. The County Executive
coordinates the various activities of the County, unifies the management of its
affairs by enforcing all orders, rules and ordinances of the Board of
Commissioners and laws of the State required to be enforced by his office.
The Executive Administrative Divisions include the Advance Program Group,
Federal and State Aid, Public Information, Community and Minority Affairs,
Cultural Affairs and an Internal Audit function. Under the direction of the
County Executive, the Audit Division is responsible for auditing all financial
transactions relating to County activities through the regular performance of
routine audits in all County departments. In addition, the Audit Division
provides management with the internal controls which are required to ensure
34
the integrity of the County's financial system through both verification and
appraisal of the effectiveness of the various departments' financial records,
controls and operation and the determination that management's procedures
and practices are in compliance with County, State and Federal laws and
regulations. The County Executive has responsibility for the following County
depart rn ents2
The Institutional and Human Services Den_rtment supervises County
Human Service Programs including Public Health, Community Mental Health,
Medical Care Facility, Niedical Examiner, and Children's Institutions, and acts
in a liaison capneity with the County Department of Social Services and the
Oakland-Livingston Human Services Agency as well as the Board of
institutions, and the Community Mental Health Services Board. The
Institutional and Human Services Department is responsible for coordinating
and improving the delivery of Human Services within financial and
organizational constraints established by the Board of Commissioners.
The Department of Public Works is responsible for constructing,
maintaining and operating all County storm and sanitary sewer, sewage and
solid waste disposal, general drainage and flood control facilities except as the
same are performed by the County Drain Commissioner. The Department
supervises the Community Development and Property Management functions,
and represents the County in joint planning activities with other jurisdictions.
The Parks and Recreation Divisions and Airport Divisions are also included in
this program area.
- 35
The Central Seices De.:partMent provides support to other County
functions as presented below:
Facilities and Operations - which is responsible for maintaining and
operating all County buildings and grounds; the operation of the County
markets and the Telephone Exchange.; the planning, design and
construction of County facilities; and the development of long-range
capital programs. Probation - which is responsible for providing services
to the Circuit and District Courts in the areas of pre-sentence
investigations and supervision of probationers.
Security - which is responsible for the protection of all County-
owned and leased properties. In addition, Security is responsible for
traffic control in parking areas and the evacuation and protection of
County employees in emergencies.
Support Services - which is a combination of intragovernmental and
enterprise funds, operations; printing; record retention; mail delivery;
property records; radio repair and communications; food services; dry
cleaning services; photocopy and microfilm; and the risk management
and safety program.
The Management an d Bud et De artmen.t. supervises the execution of the
annual County budget and maintains expenditure control; performs all central
accounting functions; collects moneys owing the County not particularly
within the jurisdiction of other County Departments; and performs all
investment, borrowing, and debt management functions except as done by the
County Treasurer. The Purchasing and Equalization Divisions are also included
in this Program area.
36
The Ellblie Services Department provides general services to the general
public and institutions through divisions concentrating on Vetrans Services,
Manpower Programs, Agriculture, Home Economics, Animal Control,
Emergency Medical Services, Disaster Control, Economic Development and a
County Reference Library.
The Personnel Department performs all personnel and labor relations
functions for the County. This includes recruiting and screening candidates
for employment, coordinating activities of the Personnel Appeals Board, and
interpreting and recommending changes in the Merit System, as well as
administrr,tiOn of the County's Affirmative Action Program.
The Comateisf.f_p_e_partment is responsible for providing all
inclusive data processing services; including program development, data
preparation and computer processing for internal departments as well as
selected programs for other local units of government. This department is
uniquely organized and jointly administered by the County Executive and a
private facilities management firm, Systems and Computer Technology, Inc.
Miscellaneous Non-Departmental Appropriations includes the salary
reserve accounts for overtime, classification and rate changes, and employee
fringe benefits as well as County allocations for other agencies and purposes,
such as, Building Authority, Huron Clinton Authority, and Capital
Improvement Fund, Chapter 20 and 21 drains, Insurance and Surety Bonds, the
Historical Society and the Tourist and Convention Bureau.
37
#83117 May 5, 1 983
1 93 3 5th this
Moved by Caddell supported by Jackson the resolution be adopted.
AYES: Law, McConnell, McDonald, McPherson, Moffitt, Moore, Nelson,
Olsen, Perinoff, Pernick, Price, Rewold, Wilcox, Aaron, Caddell, Calandra, Doyon,
Foley, Fortino, Geary, Gosling, Hobart, Jackson, R. Kuhn, S. Kuhn, Lanni. (26)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
1, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution #83117 adopted by the Oakland County Board of Commissioners
at their meeting held on May 5, 1983
with the original _record thereof now remaining in my office., and
that it is a true and correct transcript therefrom, and of the
whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
LYNyD. ALLEN, County Clerk/Register of
Deputy Clerk.