The URL can be used to link to this page

Home My WebLink About04/19/2005, C2 - REQUEST FOR PROPOSALS FOR AUDIT SERVICES council 'c°°°°� 4-19-05 j acEnaa Repom 1�N�.bv CITY OF SAN LUIS O B I S P O FROM: Bill Statler, Director of Finance &Information Technology Carolyn Dominguez,Finance Manager SUBJECT: REQUEST FOR PROPOSALS FOR AUDIT SERVICES CAO RECOMMENDATION Authorize issuing a request for proposals for audit services. DISCUSSION Section 810 of the City Charter requires an annual audit of the City's financial statement by an independent certified public accountant. In 1993, the Council entered into a multi-year contract for auditing services with Glenn, Burdette, Phillips & Bryson, Certified Public Accountants (GBPB). Due to compliance issues with Governmental Accounting Standards Board (GASB) Statement 34 (which set forth sweeping changes in local and state financial reporting requirements), the Council extended their contract in April 2000 and August 2003. While their services have been outstanding, the final contract extension has expired. As such, staff is recommending issuing a formal request for proposals (RFP) so the City can be assured of receiving quality professional services at the best competitive price. Key elements of the workscope and selection process include: Scope of Services. Audit work will include: 1. City basic financial statements. 2. Single Audit Act financial and compliance reports. 3. Transportation.Development Act(TDA)financial and compliance report. 4. Whale Rock Commission annual financial statements. Although included in the overall scope of services for efficiency purposes, the TDA and Whale Rock 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. Local Government Expertise. The successful proposer will have demonstrated expertise in performing local government audits in accordance with generally accepted accounting principles and auditing standards as well as guidelines set forth in the Certificate of Excellence in Financial Reporting program of the Government Finance Officers Association of the United States and Canada. Ca- f j Request for Proposals for Audit Services Page 2. -- - Staff Resources. Most California cities and other government agencies 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 Proposers. A Notice of Interest to propose on audit services has been sent electronically to all firms with offices in California that have expressed an interest over the past several years in submitting a proposal for audit services (Attachment 1). An RFP will be transmitted electronically to all interested responders. In addition, a notice requesting proposals will be published in The Tribune and posted on the City's website. Any additional firms with interest in proposing will be e-mailed the RFP. Review Process. All proposals will be received electronically via e-mail and reviewed and rated by a special Review Committee composed of the Director of Finance & IT, the Principal Administrative Analyst, the Transit Manager, the Utilities Senior Administrative Analyst, the Finance Manager,Accounting Supervisor and Customer Services Supervisor. The proposer's will be rated on experience and expertise, approach to completing the work, their understanding of the workscope and proposed compensation. Contract Award by the Council. The Council typically delegates award of consultant contracts to the CAO if the cost is within the budget. In the case of audit services, however, it is important that the Council award the contract: in accordance with generally accepted accounting principles, the independent auditors' report, which encompasses staff's management of the City's financial operations, is made directly to the Council. As such, the auditors' selection and contractual relationship should be made directly by the governing body. Schedule. The following summarizes the proposed selection process schedule: Task Date Issue Notice of Interest in proposing audit services 3-25-05 Issue RFP for audit services 4-20-05 Complete proposal evaluation 5-17-05 Conduct finalist interviews,if required 5-20-05 Recommend contract award to the Council 6-7-05 FISCAL IMPACT Similar audit services for 2003-04 totaled approximately$55,200 as follows: City Financial Statements (including Single Audit Act report) 46,600 TDA Financial and Compliance Audit 4,700 Whale Rock Commission. 3,900 Total $ 55,200 It is expected that costs for audit services for 2004-05 will be-similar to these amounts.. ca �a I Request for Proposals for Audit Services Page 3 ALTERNATIVES Renegotiate the Existing Contract with GBPB. Although we are satisfied with the services provided by our current auditor, we do not recommend this alternative at this time. It is prudent for the City to periodically seek formal audit proposals in order to ensure competitive pricing and services. However, as noted above, GBPB has provided outstanding services to the City, and we plan to invite them to submit a proposal as part of the selection process ATTACHMENT Proposers List ON FILE IN THE COUNCIL OFFICE Request for Proposals for Audit Services Financc/Audit Folders/RFP for Audit Services,2005/Council Agenda Report,Audit Services RFP Cc; , 3 PROPOSERS LIST AUDITING SERVICES—SPECIFICATION NO.90425 Caporicci & Larson Macias, Gini &Company, LLP Nasi Raissian,CPA Ken Macias 180 Grand Ave, Ste. 1365 3927 Lennane Dr, Ste 200 Oakland, Ca 94612 Sacramento, Ca 95834-1922 (877) 862-2200 Ext. 126 (916)928-4600 (866)436-0927 (916)928-2755 nraissian@c-lcpa.com kmacias@mgcpa.biz Diehl, Evans &Company, LLP Mayer Hoffman McCann P.C. William S Morgan,CPA Benjamin P Reyes, CPA 2121 Alton Parkway, Ste 100 5060 California Ave, Ste 800 Irvine,Ca 92606-4906 Bakersfield,Ca 93309 (949) 399-0600 (661) 325-7500 (949) 399-0610 (661) 325-7004 Bi11M@diehlevans.com breyes@cbiz.com Glenn,Burdett, Phillips &Bryson Maze& Associates Kathi Niffenegger, CPA Scott Maze 1150 Palm St 1931 San Miguel Dr, Ste 100 San Luis Obispo, Ca 93401 Walnut Creek,CA 94596 (805) 544-1441 (510)930-0902 (805) 544-4351 (510)930-0135 KN@GBPB.com scottm@mazeassociates.com Kevin W Harper, CPA Moreland &Associates, Inc 3002 Seriana Ct Kathryn Beseau, Partner Union City,Ca 94587 1201 Dove St, Ste 680 (510) 324-1022 Newport Beach, Ca 92660 (510)324-1022 (949)221-0025 kevinharpercpa@cs.com (949)221-0035 kbeseau@moreland-assoc.com KPMG Peat Marwick Moss, Levy &Hartzheim (declined invitation to propose) Robert M Moss, CPA 9107 Wilshire Blvd, Ste 320 Beverly Hills,Ca 90210 (310)273-2745 (310)273-1689 mlhbh@pacbell:net Lance, Soll&Lunghard,LLP Vavrinek,Trine, Day &Co Richard K Kikuchi, CPA Kevin Pulliam, CPA 203 North Brea Blvd, Ste 203 P O Box 4407 Brea,Ca 92821-4056 Rancho Cucamonga, Ca 91729-4407 (714)672-0022 (909)466-4410 (714)672-0331 (909)466-4431 rkikuchi@lslcpas.com jaguilar@VTDCPA.com Finance: Audit Folders/auditing services RFP/Proposers List 2005 n