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Board approves independent risk assessment contract, directs staff to bring top three forensic‑audit bidders

Orange County Board of Supervisors · September 23, 2025
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Summary

The board authorized a contract with Macias Gini & O'Connell LLP for an independent risk assessment to update the FY25‑26 audit plan and instructed staff to return with the top three forensic‑audit proposals after evaluations raised concerns about a top bidder's use of artificial intelligence.

The board authorized the county procurement officer to execute a contract with Macias Gini & O'Connell LLP to perform an independent risk assessment and update the fiscal‑year 2025‑26 audit plan. County staff said the contract will help the county identify high‑risk audit areas and will inform the FY26‑27 audit plan.

A department representative explained the status of a separate, board‑directed forensic audit: the county released a request for proposals on June 27, received 10 submissions by the July 18 deadline, and completed an evaluation Sept. 9. Negotiations with the highest‑scoring firm were under way, the staffer said, but evaluation members and staff raised concerns about the leading bidder’s proposed use of artificial intelligence in auditing work.

“...there were concerns with the highest ranking proposal and its reliance on artificial intelligence,” County staff said when describing the evaluation. Several supervisors said they wanted the board to see more than a single negotiated recommendation. One supervisor asked that staff bring back the top three ranked proposals and pause further negotiations until the board reviewed them.

County staff confirmed the procurement process follows county purchasing procedures: negotiation with the highest‑scoring bidder is standard practice, but if negotiations fail the department will move to the next ranked bidder. Supervisors directed staff to return with the top three recommended bidders and additional materials so the board can make a selection.

What happens next: staff will complete any necessary contract negotiations for the Macias Gini & O'Connell engagement and will return to the board with the top three forensic‑audit proposals for further direction and possible selection.