25D - AGMT - FINANCIAL AUDIT SRVS

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LSECTION 7: COST PROPOSAL: Pocket-ftotec. tors We innovate to'cut costs, but NEVER at the expense of quality. Value fox Fees, Our fee philosophy is to foster long-term client relationships by offering fair and competitive pricing. Over the years, we have gained an in-depth understanding of the resources required to perform the City's audit. Based on this experience, we have developed a pricing model which will allow us to provide the requisite experience, commitment and quality for your engagement. The City requires a high level of expertise and specialized skills that cross multiple disciplines. Our professionals have a proven reputation for demonstrating an uncompromising dedication to responsive, value-added service. We believe our proposed fees reflect the MGO Team's experience along with our sensitivity to the budgetary concerns you are facing. Below is a summary of assumptions utilized in our fee analysis based on the information noted in the Request for Proposal. Should any of the assumptions noted change based on the City's request or the uncertainty surrounding the financial reporting requirements of the former redevelopment agency, we will work closely with City Management to determine the impact on our fee analysis. Our proposed all-inclusive fees summarized below for completion of audit services assume the following: 1. The Orange County Fire Authority agreed upon procedures begins FY 2013 and is assumed to be performed annually thereafter for the remainder of the contract period. 2. Internal Audit Operational Audits only occur FY 2012, 2013 and 2014. No Internal Audit Operational Audits will occur in FY 2015. 3. The Single Audit includes 8 major programs. Any additional major programs will be billed at the discounted hourly rates commensurate with level of effort, not to exceed $5,000 for each additional major program identified. 4. The State Controller Reports for the former Agency will be performed for the entire duration of the contract. 5. Stand-alone audits of the Successor Agency and Successor Housing Agency will be required for the entire duration of the contract. The cost assigned to these audits represent the level of effort to compile stand alone financial reports. The cost and level of effort related to performing test of controls, compliance and substantive testwork of the Successor Agencies is part of the City Audit fees as the Successor Agencies will be reported in the City's CAFR. The former Agency represents more than 40% of the City's governmental fund assets in the FY 2011 CAFR . 6. All out-of-pocket expenses, including parking, telephone, fee, copying and reproduction are included in the all- inclusive maximum price. You will not be biiied separately for these costs. EXHIBIT C r,''? ?road4'oBrs?a?AROO?mi+aotK 43 25D-24