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Home My WebLink About01/18/1994, C-2 - REQUEST FOR PROPOSALS FOR AUDITING SERVICESMEETING DATE. city of San tuIS OBISpo - - COUNCIL AGENDA REPORT MN NUMSMd. FROM: William C. Statler, Director of FinanceU/&P-� (� Prepared by: Carolyn Dominguez, Accounting Manager C(J SUBJECT: REQUEST FOR PROPOSALS FOR AUDITING SERVICES CAO RECOMMENDATION Approve request for proposals (RFP) for audit services. DISCUSSION Section 810 of the City Charter requires an annual audit of the City's financial statements by an independent certified public accountant. In 1987 the City entered into a contract for auditing services with KPMG Peat Marwick, one of the "Big Six" accounting firms. While their services have been satisfactory, the contract extensions have expired. As such staff recommends that a formal RFP process occur so that the City can be assured of receiving the quality professional services required at the best competitive price. Key elements of the workscope and selection process include: ■ Scope of services. Audit work will include: - City general purpose financial statements - Single Audit Act financial and compliance report - Transportation Development Act (TDA) financial and compliance report - Whale Rock Commission annual financial statements - Central Coast Cities Self- Insurance Fund ( CCSIF) annual financial statements Although included in the overall scope of services for efficiency purposes, the TDA, Whale Rock, and CCSIF reports are separately financed through their own respective funding sources. ■ Contract term. The RFP provides for a three year term with an option to renew for another three years. ■ Load goveronent expertise. The successful bidder will have demonstrated expertise in performing local government audits in accordance with generally accepted accounting principles and auditing standards as well as guidelines for the GFOA Certificate of Excellence in Financial Reporting program. ■ Staff resources. California cities end their fiscal year on June 30, which results in all of them requiring audit services at the same time. We will be looking for assurances that the successful firm has the trained resources available to service the City during this busy period. ■ Prospective bidders RFP's will be sent to all of the "Big Six" accounting firms as well ��n�i�i►►�IIIIIIIIII °�11� city of san luIs 0131spo COUNCIL AGENDA REPORT as to all other firms that have expressed an interest over the past several years in submitting a proposal for audit services (Attachment A). In addition, a notice requesting proposals will be published in the Telegram Tribune, and proposals submitted by other firms will be considered. ■ Review procem All proposals will be reviewed and rated by a Review Committee composed of the Assistant CAO, Director of Finance, and Accounting Manager. As detailed in the RFP, proposals will be evaluated for both technical qualifications and price. A recommendation for awarding the contract will be presented to Council in March. FISCAL IMPACT Audit services for 1992 -93 totaled $59,500 as follows: City financial statements (including Single Audit Act report) $38,000 TDA audit 5,000 Whale Rock Commission 3,000 CCCSIF 13.500 Total 5 0 It is expected that costs for audit services for 1993 -94 will be similar to these amounts. ALTERNATIVES ■ Renegotiate existing contract with KPMG Peat Marwick. Although we are satisfied with the services provided by. our current auditor, we do not recommend this alternative at this time. It is desirable to periodically seek proposals in order to ensure competitive pricing and services. However, KPMG Peat Marwick has been invited to submit a proposal for future auditing services. ATTACHMENT Bidders list ON FILE IN THE COUNCIL OFFICE Request for proposals for auditing services AUDITING SERVICES Specifications No. 93 -68 BIDDERS LIST Requests for RFP received from: KPMG Peat Marwick Tom Snow, Audit Partner 725 South Figueroa Street Los Angeles, CA 90017 (213) 955-8475 Brown, Waits, and Armstrong Ben Reyes, Audit Partner 4200 Truxtun Avenue, Suite 300 Bakersfield, CA 93309 (805) 324 -4971 Leon E. Elwell, CPA 918 Truxtun Avenue Bakersfield, CA 93301 (805) 322 -5113 Macias and Pierini, CPA's Kenneth A Macias, Managing Partner 8880 Cal Center Drive, Suite 210 Sacramento, CA 95826 (916) 363-2220 Other Audit Firms: Arthur Andersen & Company David J Azevedo, Partner 1 Market Plaza San Francisco, CA 94105 (415) 546 -8701 Deloitte & Touche Regina M. Gilson 60 S. Market Street San Jose, CA 95113-2303 (408) 998 -4000 Price Waterhouse Government Services Audit Partner 150 Almaden Blvd. #1200 San Jose, CA 95113 (408) 282 -1200 RJM Miranda & Company Jay Siegel, Vice — President 6 Hutton Centre Drive, Suite 1050 Santa Ana, CA 92707 (714) 434 -2500 Moss, Levy & Hartzheim, CPA's Robet M. Moss 9465 Wilshire Blvd., Suite 915 Beverly Hills, CA 90212 (310) 275 -0143 Glenn, Burdette, Phillips & Bryson, CPA's Attn: Audit Partner 1150 Palm Street San Luis Obispo, CA 93449 Coopers & Lybrand Douglas R. Wachtel, Manager 333 Market St San Francisco, CA 94105 (415) 957 -3532 Ernst & Young Carola De Leede, Manager 18400 Von Karman Ave Irvine, CA 92715 (714) 252-2439 d *24