Alamance County
NC

Action Item
2018-106

Business Personal Property Auditing Agreement

Information

Department:TaxSponsors:
Category:Authorization

Attachments

  1. Printout
  2. Evans Contract 2018-08-01

Issue/Action Requested

Approval to enter into an agreement with Evans and Associates for one year for Business Personal Property Auditing services.

Background/Purpose of Request

Best practice in the assessment of business personal property is to audit accounts every 5 to 8 years.  This ensures that the listed property is being accurately reported and taxed and allows for reasonable recapture of any improperly reported assets.  Our department lacks the staffing to audit 1/5 to 1/8 of our accounts annually and has traditionally outsourced this work.  Revenues from the discovery of improperly listed assets have always been in excess of the cost of the auditing program, so there has never been any net cost to the taxpayer.

 

In 2013, we entered into a five-year agreement with Tax Management Associates (TMA) to perform these auditing services.  With the expiration of this agreement, we decided to put this service out to bid to ensure that we are getting the most competitive rates.  The result of this bidding process is that Evans and Associates provided us with the lowest bid.  Evans has a good reputation in the industry and we have thoroughly investigated their work history and qualifications and are please with the results.

 

We are asking for approval to enter into an agreement with Evans and Associates for an initial term of one year with the option of continuing month-to-month thereafter.  The cost of this auditing program will not exceed $100,000 annually (which is the budgeted amount).

Meeting History

Jul 16, 2018 7:00 PM  Alamance County Board of Commissioners Regular Meeting

Jeremy Akins, Tax Administrator, explained that his department relied on self reporting for business property auditing. He continued that business owners submit a listing every year and that is used to generate their bills. In order to ensure they received accurate reporting, they have outsourced this audit service to Tax Management Associates for the past five years. He stated that they did not have the capacity to audit 4,000 businesses this in-house. Mr. Akins commented that he had worked with Randy Clark, Purchasing Manager, to utilize a bid process. He said that four major firms had responded all with similar qualifications and they checked references. He spoke that it eventually came down to the lowest price and he chose Evans and Associates. Mr. Akins stated that the cost of the contract had already been budgeted.

RESULT:APPROVED [UNANIMOUS]
MOVER:Bill Lashley, Vice Chairman
SECONDER:Robert E. Byrd, Commissioner
AYES:Amy Scott Galey, Bill Lashley, Eddie Boswell, Robert E. Byrd, Tim D. Sutton