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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 4 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 11 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. 18 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.