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Board approves three-year contract for federal reimbursement services rather than six-year option
Summary
Koochiching County approved a three-year contract with a consultant to prepare indirect-cost and federal reimbursement reports required by accounting and audit standards; the board chose the shorter contract after discussing pricing and annual payment timing.
The Koochiching County Board voted Jan. 14 to authorize a three-year contract with a firm that prepares federal reimbursement and indirect-cost reports required for compliance with accounting and audit standards.
County staff explained the contracted service compiles time studies and financial data into the reports needed for reporting under Governmental Accounting Standards Board (GASB) and federal program requirements. The vendor presented two options: a three-year engagement and a six-year engagement; staff said the three-year total was $10,220 and the six-year option was listed at $20,440, with no additional discount for a six-year commitment.
After discussing value and prior experience with the vendor, the board approved a three-year contract and confirmed the fee will be paid annually. The motion carried by voice vote.
Why it matters: the contract supports compliance with audit and accounting standards and helps the county document and recover allowable indirect costs under federal programs. The three-year option preserves flexibility to revisit procurement sooner.
Board action: motion to approve the three-year maximum service cost allocation contract and authorize the administrator to sign was approved; staff will arrange annual payments per the contract.
