HomeMy WebLinkAbout25E - AGMT - PROFESSIONAL AUDITING0
• A i..
CITY COUNCIL MEETING DATE:
MAY 3, 2016
TITLE:
CONTRACT AWARD TO WHITE NELSON DIEHL
EVANS LLP FOR PROFESSIONAL AUDITING
SERVICES
{STRATEGIC PLAN NO. 7, 5F)
1 "
CITY MANAGE
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
:'-:•
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Award a contract to White Nelson Diehl Evans LLP for professional auditing services, for a two-
year period beginning with the fiscal year -ending June 30, 2016 and June 30, 2017, in the
amount of $366,675, with a provision for one two-year renewal exercisable by the City Manager,
for the for the fiscal year -ending June 30, 2018 and June 30, 2019, subject to non -substantive
changes approved by the City Manager and City Attorney.
DISCUSSION
The Finance and Management Services Agency (FMSA) is responsible for overseeing the
financial statement audits and examinations along with the preparation of the City's
Comprehensive Annual Financial Report (CAFR). Annually, the City of Santa Ana utilizes the
services of an independent Certified Public Accounting firm to conduct the annual audit of the
City's financial statements as well as state and federal grant audits (Single Audit). The audits are
conducted in accordance with the generally accepted auditing standards and the Government
Auditing Standards issued by the Comptroller General of the United States. The standard annual
audits include evaluation of internal controls, determination of compliance to legal requirements,
application of General Accounting Standards Board (GASB) requirements, and validation that the
City's financial statements are presented in accordance with Generally Accepted Accounting
Principles (GAAP) in the United States of America.
On February 11, 2016, the FMSA released a Request for Proposals for professional auditing
services. A total of six accounting firms submitted proposals; Badawi & Associates, Lance, Soll
& Lunghard, LLP, Macias, Gini & O'Connell LLP, The Pun Group, Vasquez & Company LLP, and
White Nelson Diehl Evans LLP (WNDE). The six proposals were evaluated and ranked by a
Review Committee (Committee) comprised of Executive Director of Finance & Management
Services Agency, Assistant Director of Finance & Management Services Agency, Special
Assistant to the City Manager, Supervising Accountant, and Senior Management Analyst. The
evaluation was based on several factors, including but not limited to the following:
25E-1
Contract Award to White Nelson Diehl Evans LLP for Professional Auditing Services
May 3, 2016
Page 2
• Firms' technical qualifications and experience of key members for the engagement team
and the firm
• Experience with similarly sized governments relative to the City of Santa Ana
• Capability of handling all aspects of the audit
• Ability to provide continuity of staff from year to year
• Thoroughness of auditors proposed scope of work
• Clearly defined schedule of work to be performed and ability to meet required deadlines
• Reasonableness and competiveness of cost budget
Based upon the factors noted above, the Committee selected the top three firms to conduct in
person interviews; Lance, Soll & Lunghard, LLP, Macias, Gini & O'Connell LLP, and White
Nelson Diehl Evans LLP. Subsequently, FMSA staff interviewed the top three firms. Based on
FMSA's evaluation and review of references, White Nelson Diehl Evans LLP was selected as the
most qualified firm to conduct the City's annual audit(s) and examinations. They demonstrated
strong staffing with high level of technical knowledge regarding all aspects of the City's
engagement, and experience in the field of government accounting and auditing with similarly
sized governments. The firm has proposed to include two Engagement Partners for both the
preparation of the CAFR and Single Audit, which will provide the City with additional technical
assistance in complex accounting and auditing matters. Additionally, their highly experienced
audit team will allow the City to have a comprehensive, effective, and efficient audit.
White Nelson Diehl Evans LLP (WNDE) will conduct the following audits and reviews of the City:
• City Audit (CAFR), including management and audit committee letters
• Single Audit of Federal Grants
• Audit of Air Quality Improvement Program
• GANN Limit Review
• Compliance Review of the City's investment policy
• Preparation of the City's State Controller's Report
• Agreed Upon Procedures (if applicable)
• Agreed Upon Procedures or other services as requested by the Executive Director of
Finance & Management Services Agency
As such, staff recommends contracting with WNDE to perform the annual auditing services for a
period of two years and the option to renew for an additional two years.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #7 Team Santa Ana, Objective #5 (Create a
culture of innovation and efficiency within the organization), Strategy F (Explore opportunities to
engage with outside agencies, both private and public, to share information and increase
efficiencies).
25E-2
Contract Award to White Nelson Diehl Evans LLP for Professional Auditing Services
May 3, 2016
Page 3
FISCAL IMPACT
Funds for these services will be included in the following fiscal years' budget within the accounts
noted below along with their respective audit related costs. The allocations are subject to non -
substantive changes based on the actual work performed.
Year 1 (Audit of FY 2015-16)
Fiscal Year
Total Amount
FY 2015-16
$
36,000
FY 2016-17
$
44,000
FY 2016-17
$
2,275
FY 2016-17
$
3,475
FY 2016-17
$
25,000
FY 2016-17
$
10,000
FY 2016-17
$ 59,880
Total
$
180,630
Year 2 (Audit of FY 2016-17)
Fiscal Year
Total Amount
FY 2016-17
$
37,000
FY 2017-18
$
45,500
FY 2017-18
$
2,350
FY 2017-18
$
3,580
FY 2017-18
$
26,000
FY 2017-18
$
10,500
FY2017-18
$ 61,115
Total
$
186,045
Robert Cortez L,
Special Assistant to the City Manager
City Manager's Office
Accounts
01110110-62300
01110110-62300
01110130-62300
03116510-62300
14018760-62400
67018850-62400
General Fund & Various Grant Funds
Accounts
01110110-62300
01110110-62300
01110130-62300
03116510-62300
14018760-62400
67018850-62400
General Fund & Various Grant Funds
APPROVED AS TO FUNDS & ACCOUNTS:
° sttQ
Francisco Gutierrez kaio 3
Executive Director J
Finance & Management Services Agency
Exhibit: Professional Services Agreement — Audit Services
25E-3
25E-4
AGREEMENT FOR PROVISION OF FINANCIAL AUDIT SERVICES
THIS AGREEMENT, made and entered into this 41h day of May by and between White
Nelson Diehl Evans LLP (hereinafter "AUDITOR"), and the City of Santa Ana, a charter city
and municipal corporation organized and existing under the Constitution and laws of the State of
California (bereinafter "CITY").
RECITALS
A. The CITY issued a Request for Proposals, dated February 11, 2016, for an
independent audit of its financial statements and records.
B. Pursuant to said invitation, AUDITOR submitted a proposal which is hereby accepted
by CITY for provision of said professional service.
C. AUDITOR is recognized as a competent and qualified certified public accountant,
duly authorized to practice and licensed as such by the California State Board of
Accountancy.
D. In undertaking the performance of this Agreement, AUDITOR represents that it is
knowledgeable in its field and that any services performed by AUDITOR under this
Agreement will be performed in compliance with such standards as may reasonably be
expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
AUDITOR shall perform its Annual Independent Audit for the two fiscal years ending
June 30, 2016 through Juice 30, 2017 fiscal years, as set forth in CITY's Request for Proposals,
attached hereto as Exhibit A, and incorporated by this reference. Said services shall be
performed in accordance with the process set forth in AUDITOR'S Proposal, attached hereto as
Exhibit B. The Executive Director of Finance and Management for the City can request that
AUDITOR provide other auditing services upon request in lieu of the two agreed upon procedure
reviews identified in Exhibit C. In All exhibits referenced herein and attached hereto shall be
incorporated by reference as though attached in their entirety.
2. REPRE+SENTATIVES
For purposes of implementing this Agreement, the representative of CITY shall be the
Executive Director of the Finance and Management Services Agency, or his designated
representative, and the representative of the AUDITOR shall be NITIN P. PATEL, CPA
Engagement Partner. Except as may be otherwise stated herein, such representatives shall have
the authority to act on behalf of their respective parties in carrying out the terms of this
Agreement,
Page t of 9
25E-5
3. DELIVERY OF WORK PRODUCT - OWNERSHIP
AUDITOR warrants and represents that it has the absolute right to enter into and perform
this Agreement and will perform its obligations hereunder in accordance with standards and
practices prevailing in the industry. AUDITOR's contribution to the Project, including works to
be produced, by AUDITOR hereunder, will not infringe or misappropriate the proprietary or
personal rights of any third person or party. AUDITOR shall deliver to CITY any work product
which results from the services provided, Said work product shall be submitted in hard copy and
produced in a form compatible with CITY's information systems, as agreed between the Project
Manager and AUDITOR.
In regard to all material produced as a deliverable under this Agreement, including but
not limited to records, papers, drawings, specifications, programs, systems and other materials
prepared by AUDITOR, AUDITOR agrees, for itself and its affected officers, employees, agents,
contractors, and volunteer workers, that (a) other such material shall be the property of the CITY,
and may not be copyrighted without prior review from the CITY, and (b) the authors of all such
material, whether copyrighted or not, award to the CITY, and to its officers, agents and
employees acting within the scope of their official duties, as a condition of payment to the
AUDITOR, a royalty -free, nonexetusive, irrevocable license throughout the world for
governmental purposes to disclose, publish, translate, reproduce, and use such materials.
4. COMPENSATION
a. CITY agrees to pay, and AUDITOR agrees to accept as total payment for its services,
the rates and charges identified in AUDITOR's Cost Proposal, attached hereto as Exhibit C. The
total sum to be expended under this Agreement shall not exceed per fiscal year during the term
of this Agreement is FY 2015-16 is $180,630 and FY 2016-17 is $186,045,
b, Payments to AUDITOR shall be made within thirty (30) days after receipt by CITY of
invoices from AUDITOR, which shall be rendered not more often than monthly. Special
examinations, surveys, or detailed reports of any nature outside the scope of this Agreement shall
be billed separately by AUDITOR and must be specifically authorized in writing by CITY in
advance of such additional services proposed to be provided. Payment need not be made for
work which fails to meet the standards of performance set forth in the Recitals which may
reasonably be expected by CITY.
5. TERM
The term of this Agreement shall be for a period of two (2) consecutive years, beginning
with the fiscal year ending June 30, 2016 and June 30, 2017. CITY shall retain an option in its
sole discretion to extend auditing services for one additional two-year period, exercisable by the
City Manager, for the fiscal year ending June 30, 2018 and June 30, 2019, subject to non -
substantive changes approved by the City Manager and City Attorney.
Page 2 of 9
25E-6
6, INDEPENDENT CONTRACTOR
AUDITOR shall, during the entire term of this Agreement, be construed to be an
independent contractor and not an employee of the CITY. This Agreement is not intended nor
shall it be construed to create an employer -employee relationship, a joint venture relationship, or
to allow the CITY to exercise discretion or control over the professional manner in which
AUDITOR performs the services which are the subject matter of this Agreement; however, the
services to be provided by AUDITOR shall be provided in a manner consistent with all
applicable standards and regulations governing such services, AUDITOR shall pay all salaries and
wages, employer's social security taxes, unemployment insurance and similar taxes relating to
employees and shall be responsible for all applicable withholding taxes,
7. INSURANCE
Prior to undertaking performance of work under this Agreement, AUDITOR shall
maintain and shall require its subcontractors, if any, to obtain and maintain insurance as
described below:
a, Commercial General Liability Insurance. AUDITOR shall maintain cornmercial
general liability insurance which shall include, but not be limited to protection against claims
arising from bodily and personal injury, including death resulting therefrom and damage to
property, resulting from any act or occuurence arising out of AUDITOR's operations in the
performance of this Agreement, including, without limitation, acts involving vehicles. The
amounts of insurance shall be not less than the following: single limit coverage applying to
bodily and personal injury, including death resulting therefrom, and property damage, in the total
amount of $1,000,000 per occurrence, $1,000,000 in the aggregate. Such insurance shall (a)
name the CITY, its officers, employees, agents, volunteers and representatives as additional
insured(s); (b) be primary with respect to insurance or self-insurance programs maintained by the
CITY; and (c) contain standard separation of insureds provisions.
b. Business automobile liability insurance, or equivalent form, with a combined single
limit of not less than $1,000,000 combined single limit. Such insurance shall include coverage
for owned, hired and non -owned automobiles,
c. Worker's Compensation Insurance. In accordance with the provisions of Section 3300
of the Labor Code, AUDITOR, if AUDITOR has any employees, is required to be insured
against liability for worker's compensation or to undertake self-insurance. Prior to commencing
the performance of the work under this Agreement, AUDITOR agrees to obtain and, maintain
any employer's liability insurance with limits not less than $1,000,000 per accident.
d. Professional liability (errors and omissions) insurance, with a combined single limit
of not less than $1,000,000 per claim, and $1,000,000 in the aggregate.
e. The following requirements apply to the insurance to be provided by AUDITOR
pursuant to this section:
Page 3 of 9
25E-7
(i) AUDITOR shall maintain all insurance required above in full force and
effect for the entire period covered by this Agreement.
(ii) Certificates of insurance shall be furnished to the CITY upon execution of
this Agreement and shall be approved in form by the City Attorney.
(iii) Certificates and policies shall state that the policies shall not be canceled
or reduced in coverage or changed in any other material aspect without
thirty (30) days prior written notice to the CITY.
f. If AUDITOR fails or refuses to produce or maintain the insurance required by this
section or fails or refuses to furnish the CITY with required proof that insurance has beers
procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to
forthwith tenninate this Agreement. Such termination shall not effect AUDITOR's right to be
paid for its time and materials expended prior to notification of termination, AUDITOR waives
the right to receive compensation and agrees to indemnify the CITY for any work performed
prior to approval of insurance by the CITY.
g. INDEMNIFICATION
AUDITOR agrees to and shall indemnify and hold harmless the CITY, its officers,
agents, employees, consultants, special counsel, and representatives from liability: (1) for
personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of
claims for personal injury, including death, and claims for property damage, which may arise
from the negligent operations of the AUDITOR or its contractors, subcontractors, agents,
employees, or other persons acting on their behalf which relates to the services described in
section I of this Agreement; and (2) from any claim that personal injury, damages, just
compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects
arising from this Agreement. This indemnity and hold harmless agreement applies to all claims
for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to
have been suffered, by reason of the events referred to in this Section or by reason of the terms
of, or effects, arising from this Agreement. The AUDITOR further agrees to indemnify, hold
harmless, and pay all costs for the defense of the CITY, including fees and costs for special
counsel to be selected by the CITY, regarding any action by a third party challenging the validity
of this Agreement, or asserting that personal injury, damages, just compensation, restitution,
judicial or equitable relief due to personal or property rights arises by reason of the terms of, or
effects arising from this Agreement. CITY may make all reasonable decisions with respect to its
representation in any legal proceeding. Notwithstanding the foregoing, to the extent AUDITOR's
services are subject to Civil Code §2782.8, the above indemnity shall be limited, to the extent
required by Civil Code §2782.8, to claims that arise of, pertain to, or relate to the negligence,
recklessness, or willful misconduct of the AUDITOR.
Page 4 of 9
25E-8
9. CONFIDENTIALITY
All information gained by AUDITOR in performance of this Agreement shall be
considered confidential and shall not be released by AUDITOR without CITY'S prior written
authorization excepting that information which is a public record and subject to disclosure
pursuant to the California Public Records Act, government Code Section 6250 et sec,
AUDITOR, its officers, employees, agents, or subcontractors, shall snot voluntarily provide
declarations, letters of support, testimony at depositions, response to interrogatories or other
information concerning the project or cooperate in any way with a party who may be adverse to
CITY or whom AUDITOR reasonably should know maybe adverse in any subsequent litigation.
AUDITOR shall incur no liability under this Agreement for materials submitted by it which are
later released by CITY, its officers, employees, or agents. AUDITOR shall also incur no liability
for statements made by it at any public meeting, or for any document released by it for which
prior written CITY authorization was obtained.
If AUDITOR or any of its officers, employees, consultants, or subcontractors does
voluntarily provide information in violation of this Agreement, CITY has the right to
reimbursement and indemnity from AUDITOR for any damages caused by AUDITOR'S
conduct --including attomey's fees.
AUDITOR shall promptly notify CITY should AUDITOR, its officers, employees, agents
or subcontractors be served with any Suanmons, Complaint, Subpoena, Notice of Deposition,
Request for Documents, Interrogatories, Request for Admissions or other discovery requests
from any party regarding this agreement and the work performed hereunder. CITY retains the
right, but not the obligation, to represent AUDITOR and/or to be present at any deposition,
hearing, or similar proceeding. AUDITOR agrees to cooperate fully with CITY and to provide
CITY with the opportunity to review any response to discovery requests provided by AUDITOR.
However, CITY'S right to review any such response does not imply or mean the right by CITY
to control, direct, or rewrite said response.
CITY warrants that AUDITOR will have fully met the requirements of this provision by
obtaining CITY'S written approval prior to providing documents, testimony, or declarations;
Consulting with CITY before responding to a Subpoena or court order; in the case of depositions
upon providing Notice to CITY of same; or providing CITY opportunity to review discovery
responses prior submission. For purposes of this section, a written authorization from CITY
shall include a "faxed" letter.
10. CONFLICT OF INTEREST CLAUSE
AUDITOR covenants that neither it nor any officer or principal of their firm have any
interests, nor shall they acquire any interest, directly or indirectly which will conflict in any
manner or degree with the per£onriance of their services hereunder. AUDITOR further
covenants that in the performance of this Agreement, no person having such interest shall be
employed by them as an officer, employee, agent, or subcontractor.
Page 5 of 9
25E-9
11. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this
Agreement shall be in writing and shall be deemed to be properly given if delivered in person or
mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic
communication in the manner provided in this Section, to the following persons:
To CITY: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Facsimile (714) 647-6956
With courtesy copies to:
and
Executive Director of the Finance and Management Services Agency
City of Santa Ana
20 Civic Center Plaza (M-17)
P.O. Box 1988
Santa Ana, California 92702
Facsimile (714) 647-5414
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
Facsimile (714) 647-6515
To AUDITOR: White Nelson Diehl Evans LLP
Certified Public Accountants and Consultants
2875 Michelle Drive, Suite 300
Irvine, CA 92606-5165
(714) 978-1300-Telephone
npatel ,wndecoa.com
A party may change its address by giving notice in writing to the other party. Thereafter,
any communication shall be addressed and transmitted to the new address. If sent by mail,
communication shall be effective or deemed to have been given three (3) days after it has been
deposited in the United States mail, duly registered or certified, with postage prepaid, and
addressed as set forth above, If sent by facsimile, communication shall be effective or deemed to
have been given twenty-four (24) hours after the time set forth on the transmission report issued
by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating
these time frames, weekends, federal, state, County or City holidays shall be excluded.
Page 6 of 9
25E-10
12. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the CITY and
AUDITOR, and supersedes any and all other agreements, oral or written, between the parties. In
the event of a conflict between the terms of this Agreement and any attachments hereto, the
terms of this Agreement shall prevail. This Agreement may not be modified except by written
instrument signed by the CITY and by an authorized representative of AUDITOR, The parties
agree that any terms or conditions of any purchase order or other instrument that are inconsistent
with, or in addition to, the teens and conditions hereof, shall not bind or obligate AUDITOR nor
the CITY. Each party to this Agreement acknowledges that no representations, inducements,
promises or agreements, orally or otherwise, have been made by any party, or anyone acting on
behalf of any party, which are not embodied herein.
13. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of AUDITOR,
AUDITOR may not assign, transfer, delegate, or subcontract any interest herein without the prior
written consent of the CITY and any such assignment, transfer, delegation or subcontract without
the CITY's prior written consent shall be considered null and void. Nothing in this Agreement
shall be construed to limit the CITY's ability to have any of the services which are the subject to
this Agreement performed by CITY personnel or by other consultants retained by CITY.
14. TERMINATION
If, at any time during the term of this Agreement, CITY determines that AUDITOR is not
faithfully abiding by any term or condition contained herein, CITY may notify AUDITOR in
writing of such defect or failure to perform; which notice must give AUDITOR a ten (10)-day
notice of time thereafter in which to perform said work or cure the deficiency. If AUDITOR has
not performed the work or cured the deficiency within. the ten (10) days specified in the notice,
such shall constitute a breach of this Agreement and CITY may terminate this Agreement
immediately by written notice to the AUDITOR to said effect. Thereafter, neither party shall
have any further duties, obligations, responsibilities or rights under this Agreement except,
however, any and all obligations of AUDITOR'S surety shall remain in full force and effect, and
shall not be extinguished, reduced, or in any manner waived by the termination hereof. In said
event, AUDITOR shall be entitled to the reasonable value of its services performed from the
beginning of the period in which the breach occurs up to the day it received CITY'S Notice of
Termination, less any offset from such payment representing the CITY'S damages from such
breach. CITY reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the CITY'S sole discretion, so as to permit
a full and complete accounting of costs. In no event, however, shall AUDITOR be entitled to
receive in excess of the compensation quoted in its bid
Page 7 of 9
25E-11
15. ATTORNEYS FEES
In the event an action is commenced by either party to enforce any rights under this
Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and court
costs, in addition to any other relief granted by the Court.
16. DISCRIMINATION
AUDITOR shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited
by applicable law, in the recruitment, selection, training, utilization, promotion, termination or
other employment related activities or any activities under this Agreement. AUDITOR affirms
that it is an equal opportunity employer and shall comply with all applicable federal, state and
local laws and regulations,
17, JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this Agreement
shall be determined and governed by the laws of the State of California. Both parties further
agree that Orange County, California, shall be the venue for any action or proceeding that may
be brought or arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
AUDITOR shall, throughout the term of this Agreement, maintain all necessary licenses,
permits, approvals, waivers, and exemptions necessary for the provision of the services
hereunder and required by the laws and regulations of the United States, the State of California,
the City of Santa Ana and all other governmental agencies. AUDITOR shall notify the CITY
immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals,
waivers, and exemptions. Said inability shall be cause for termination of this Agreement.
19. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature hereinbelow has the power,
authority and right to bind their respective parties to each of the terms of this Agreement, and shall
indemnify CITY fully, including reasonable costs and attorney's fees, for any injuries or damages to
CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.
b. Captions and headings in this Agreement, including the title of this Agreement, are for
convenience only and are not to be considered in construing this Agreement.
c. All Exhibits referenced herein and attached hereto shall be incorporated as if filly set
forth in the body of this Agreement,
Page 8 of 9
25E-12
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
CITY OF SANTA ANA
ATTEST:
MARIA D. HUIZAR DAVID CAVAZOS
Clerk of the Council City Manager
APPROVED AS TO FORM:
Sonia R Carvalho
Cit4ef
Attney
By_
SANDOVA
Assistant City Attorney
RECOMMENDED FOR APPROVAL: CONSULTANT:
FRANCISCO OUITERREZ
Executive Director
Finance and Management Services By:
Tax ID#
Page 9 of 9
25E-13
EXHIBIT A
RFP 16-014
CITY OF SANTA ANA
Finance & Management Services Agency
20 Civic Center Plaza
Santa Ana, CA 92701
Sergio Vidal
Assistant Director of Finance & Management Services Agency
(714)647-5295
svI4A!2sa01a-ana.orq
KEY RFP DATES (Subject to change):
Issue Date:
February 11, 2016
Deadline for Questions about RFP:
February 19, 2016
Proposal Due Date:
March 4, 2016, by 4:00 p.m.
Review of Proposals:
March 7 - 22, 2016
Projected Award Date:
April 5, 2016
25E-14
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES 16.014
�C�iiC�7�i7�:7-EMI ♦ a • ¢ � • •
NOTICE IS HEREBY GIVEN that proposals will be received from qualified firms to provide
Professional Auditing Services. Responses to the Request for Proposal (RFP) will be
accepted until FridaMarch 4, 2016 by 4:40 p.m.
All notifications, updates and addenda will be posted on the City's online bid management and
publication system page at www.santa-ana,org/finance/vendor_registration.asp, Proposers
shall be responsible for monitoring the site to obtain information regarding this solicitation.
Failure to respond to required updates may result in a determination of a nonresponsive
proposal.
MAILED, DELIVERED BY HAND, or COURIERED proposals will be accepted at:
City of Santa Ana
Attn: Executive Director of Finance and Management Services
Finance Department, V Floor
20 Civic Center Plaza M-17
Santa Ana, CA 92701
It is the responsibility of the proposer to ensure that any proposals submitted shall have
sufficient time to be received by the City of Santa Ana prior to the proposal due date and time.
Questions regarding this Request for Proposal shall be made in writing via e-mail to Sergio
Vidal at svidal@santa-ana.ora. Enter "PROFESSIONAL AUDITING SERVICES RFP 16-014"
as the Subject title on all e-mail correspondence.
The receiving time in the Finance Department, 20 Civic Center Plaza, Santa Ana, CA
92701 will be the governing time for acceptability of proposals. Late proposals will NOT
be considered and will be returned to proposer unopened. Telegraphic, electronic, and
facsimile proposals will not be accepted.
ONLY SEALED PROPOSALS ARE ACCEPTABLE.
DO NOT E-MAIL RFP RESPONSES.
DO NOT FAX RFP RESPONSES.
25E-15
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES 16.014
TABLE OF CONTENTS
PAGE
1) PROJECT PURPOSE
4
2) BACKGROUND
4
8) SCOPE OF SERVICES
5
4) TIME REQUIREMENTS
7
5) ASSISTANCE TO BE PROVIDED TO THE AUDITOR
8
6) MINIMUM QUALIFICATIONS
8
7) RESPONSE TO RFP
8
8) SELECTION PROCESS AND CRITERIA
10
9) PROTESTS
11
10) RFP TIMETABLE
11
EXHIBIT A - SAMPLE AGREEMENT
EXHIBIT B - REFERENCES
EXHIBIT C - PROPOSER'S STATEMENT
EXHIBIT D - NONCOLLUSION AFFIDAVIT
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CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES 16.014
1) PROJECT PURPOSE
The City of Santa Ana (the City) is requesting proposals from qualified Certified Public
Accountant firms to perform its Annual Independent Audit for the two fiscal years ending June
30, 2016 through June 30, 2017, with the option to renew the contract for one additional two-
year term for a total of four years. The audits are to be performed in accordance with the
provisions contained in this Request for Proposals (RFP).
2) BACKGROUND
The City of Santa Ana is a Charter City in the State of California located in northern Orange
County. The City was incorporated in 1886 and operates under a Council -Manager form of
government. The City currently occupies a land area of 27.2 square miles and serves a
population of approximately 335,000. The City is bordered by Garden Grove, Tustin, Orange,
Costa Mesa, Fountain Valley, and Westminster. The City's fiscal year begins on July 1 and ends
on June 30.
The City of Santa Ana is a full service City of approximately 960 full-time and 440 part-time
employees with eight (8) agencies (departments). City services include police, water, sewer,
road maintenance, recreation, library, planning and building, and engineering services. The City
contracted with the Orange County Fire Authority to outsource its fire services in 2012, The City
Council is composed of an elected Mayor and six (6) Council Members,
A. Fund Structure
The following funds and account groups are currently presented in the City's Comprehensive
Annual Financial Report:
1. General Fund for the general operations of the City.
2. Nine Internal Service Funds including public works administration, equipment
maintenance and risk management.
3. Seven Enterprise Funds including water and sewer.
4. Seven Special Revenue Funds including the Housing Authority Fund.
5. Six Capital Project funds
6. One Debt Service Fund
7. Agency Funds held by the City in a trustee capacity.
8. Private -Purpose Trust Fund for Successor Agency
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B. Budgetary Basis of Accounting
The City's budget is adopted annually by the City Council and is prepared for each fund in
accordance with its basis of accounting (generally modified accrual). The City Manager is
responsible for preparation and implementation of the annual budget. While all unencumbered
appropriations are lapsed at year-end, valid outstanding encumbrances (those for which
performance under executory contract is expected in the next year) are re -appropriated and
become part of the subsequent year's budget. The City Council and the City Manager have the
authority to amend the budget during the year. The City's FY2015-16 total budget is
approximately $476 million with the General Fund budget totaling approximately $226 million.
The City maintains budgetary controls to ensure compliance with legal provisions embodied in
the appropriated budget approved by the City Council. The level of budgetary control is
established by function and activity within each fund.
C. Component Units
The City identified the Successor Agency to the Community Redevelopment Agency as a
Fiduciary Component Unit and Housing Authority of the City of Santa Ana and the Santa Ana
Financing Authority as Blended Component Units.
D. Federal, State and Local Assistance
The City receives financial assistance in the form of state and federal programs which vary from
year to year. Accordingly, compliance with the Single Audit Act of 1996 and implementing
regulations issued by the United States Office of Management and Budget (OMB) Circular A-
133, and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (2 CFR Part 200) will be required.
E. The City's Comprehensive Annual Financial Reports (CAFR) for the last ten years are available
on the City's website at:
hitp://www.ci.santa-ana,ca.us/finance/cafr/
The audits of the City for the past eight (8) fiscal years were performed by Macias GIN &
O'Connell LLP. It is anticipated that their work papers will be available for review.
3) SCOPE OF SERVICES
A. Terms
The City is selecting auditors to perform an examination and issue an opinion on the financial
statements of all fund types and account groups of the City for the two consecutive years
beginning with the fiscal year ending June 30, 2016 with the option for one additional two-year
period.
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B. Auditing Standards to be followed
The audits shall be performed in accordance with:
• Auditing standards generally accepted in the United States of America as set forth by the
American Institute of Certified Public Accountants;
• The standards set forth for financial audits in the General Accounting Office's (GAO)
Government Audit Standards (1994) Issued by the Comptroller General of the United States,
• The provisions of the Federal Single Audit Act as amended;
• U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local
Governments:
• The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR 200); and
• Other or new pronouncements or regulations in place now or in the future
C, Reports to be issued
• Comprehensive Annual Financial Report ("CAFR") — all funds including Fiduciary Funds,
Successor Agency and Housing Authority Financial Report
• Single Audit of Federal Grants and Other Financial Information
• Air Quality Improvement Fund Audit Report
• Report on the City's GANN Limit computation
• City's Investment Policy Compliance Review
• Annual on-line attestation of Financial Data Schedule (FDS) for the Santa Ana Housing
Authority
• Annual State Controller's Report
• Agreed Upon Procedures Report (two annually), to review the City's internal control
processes. The scope of review will include but not limited to the following:
o Cash handling
o Purchasing
o Assist in the Development of an Internal Audit Department framework
D. The auditor shall assist the City with the finalization of the CAFR. The audit timeline must take
into consideration that the City submits the CAFR to the Government Finance Officers
Association (GFOA) for review in their Certificate of Achievement for Excellence in Financial
Reporting program. The City also requires a management letter containing comments and
recommendations regarding the auditor's review and evaluation of the systems of internal
control and accounting procedures.
E. It is expected that the auditor will be available throughout the year for general consultation
regarding matters of accounting. The auditor may be asked to provide guidance on
implementation of new GASB and SAS requirements and provide expertise and
recommendations regarding specific of Federal and State regulations as to how they may
impact local government accounting.
If
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F. If requested, the auditor may be required to meet with staff and Council Members to review the
Management Letter and Audit. Attendance at Council meetings may also be requested.
G. If requested by the member of the bond financing team, the auditor may be asked to Issue a
"consent and citation of expertise" and any necessary "comfort letters" in relationship to City
financial statements and auditors' report, which are included in the Official Statement prepared
in connection with sale of debt securities.
H. Internal Audit Function
The City is currently developing an internal audit program via the hiring of an Internal Auditor
(Senior Accountnant). Due to the City currently developing its internal audit program, the
auditors would be responsible for conducting Agreed Upon Procedures to review the City's
internal control processes in addition to the regular annual audit. The scope of the review will
be defined by the Finance and Management Services Agency. A report from the auditors would
be required giving the scope of the work performed and recommendations the City should
implement to improve internal controls in the areas examined.
I. Working Paper Retention and Access to Working Papers
Working papers are to be retained for a period of five years and are to be made available (upon
reasonable notice) to City staff as well as any third parties authorized by the City.
J. Subcontracting
Should any firm submitting a proposal consider subcontracting portions of the engagement, that
fact must be clearly identified in the proposal along with the name of the proposed
subcontractor. Following the award of the audit contract, no additional subcontracting will be
allowed without prior written consent by the City's Executive Director of Finance and
Management Services Agency.
4) TIME REQUIREMENTS
It is anticipated that the audit work will be performed in two phases, Interim and Final Fieldwork:
A. Interim Fieldwork
Interim fieldwork shall take place in late May or early June and would consist of planning and
interim audit procedures (such as gaining an understanding of relevant systems, procedures
and internal controls, selected compliance and transaction testing, etc.)
B. Final Fieldwork
Final fieldwork would involve completing the examination of the General Purpose Financial
Statements, preparing opinion letters and other relevant financial reports. The final fieldwork Is
to begin no earlier than October 1, and shall be completed no later than November 15. This
schedule may be altered only by mutual agreement between the City and the auditor. Any
proposed audit adjustments must be identified no later than the conclusion of audit field work.
C. Draft Reports
The CAFR will be prepared by City staff. The Auditor will review the draft CAFR prepared by
the City and provide recommendations. The complete final draft of the City and its component
units' financial statements, including footnotes and supplementary schedules shall be
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completed by third week of November. Drafts of the GANN Limit Reports and review of the
City's Investment Policy are due no later than November 30. A draft of the management letter
is due no later than November 30. The City will review and provide comments or responses to
the auditors within 10 calendar days of receipt of each of the draft reports. A draft of Single
Audit report is due no later 60 days from the date of the completion of the CAFR.
5) ASSISTANCE TO BE PROVIDED TO THE AUDITOR
A. Finance Department and Clerical Assistance
City staff will be available to assist in the audit. City staff will prepare any necessary
schedules, provide documents (invoices, checks, council meeting minutes, etc.) and prepare
all confirmations. In addition, we will be available to respond to any questions which may
arise during the audit.
B. The City will provide the auditors with suitable workspace, telephone, access to FAX machine
and photocopier.
6) MINIMUM QUALIFICATIONS
Firms submitting bids shall meet the following minimum qualifications:
A. Firm shall have successfully completed audits of a minimum of ten (10) government agencies
including cities, in the preceding twelve months.
B. Staff assigned to the engagement shall have a minimum of one-year of experience in the audit
of municipalities. Managers or supervisors assigned to the engagement shall have a minimum
of five years of experience in the audit of municipalities. Partners assigned to the engagement
shall have a minimum of five years of experience in the audit of municipalities.
C. Firm shall have prepared and issued a minimum of five Single Audit reports in the preceding twelve
months.
7) RESPONSE TO RFP
A. Submission requirements:
Proposals shall contain the following information:
1. A general summary of the audit engagement plan including nature of interim and final
fieldwork testing procedures and the extent of support which will be required from City staff
(I.e. pulling invoices, checks, schedule preparation, etc.) Due to the City's limited staff, the
City will not be able to provide copying services.
2. A discussion of your firm's qualifications and relevant experience including recent
experience in compliance auditing under the Single Audit Act.
3. A list of the firm's most significant engagements in the last five (5) years.
4. A discussion of educational background and relevant experience of the Partner,
Supervisor(s) and Staff which will be assigned to this engagement.
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5. A summary of recent audit engagements of other similarly sized governmental agencies,
including individuals from four recent engagements whom we may contact for reference.
6. A preliminary schedule including tentative dates for completion of interim and final field
work, preparation of financial statements, footnotes, opinion letters and the management
letter.
7. A proposed budget including estimated hours for each member of the engagement team,
hourly billing rates, out-of-pocket expenses and a total proposed cost for each of the four
years. The budget must include an all-inclusive maximum price (including out-of-pocket
expenses) for all services outlined in Section 3C of this RFP. The budget should be broken
down by the items noted in Section 3C of this RFP by each fiscal year,
8. A listing of billing rates, by staffing level, which would apply to any supplemental services
which may be requested by the City during the term of this contract.
9. A statement that the firm is independent of the City and that it is unaware of potential
conflicts of interest.
10. An affirmative statement verifying the firm and all assigned key professional staff are
properly licensed to practice in California.
1 1, A copy of a report on its most recent external quality control review (peer review), with a
statement whether that quality control review included a review of specific government
engagements (required by Government Audit Standards).
12. Information on the results of any Federal or State desk reviews or field reviews of its audits
during the past three (3) years. In addition, the Proposer shall provide information on the
circumstances and status of any disciplinary action taken or pending against the firm during
the past three (3) years with State regulatory bodies or professional organizations.
13. A description of limits on liability, if any.
14. A warrant that the firm maintains a prudent amount of errors and ornissions insurance that
covers negligent acts and is applicable to the work requested in this RFP.
15. An acknowledgement by signature that the signer is authorized to contractually bind the
firm.
16. Any pending legal actions against the firm.
17. Proposer's Statement - Exhibit C
18. Noncollusion Affidavit — Exhibit D
B. Sealed Proposals: Proposals to the RFP should be addressed to City of Santa Ana, Finance
Department 3`d Floor, 20 Civic Center Plaza M-17, Santa Ana, CA 92701, and are due no later
than 4:00 p.m. March 4, 2016 . Five (5) copies of bound and sealed proposals are required. It
is the responsibility of the proposer to ensure that the proposal is delivered on time. Any
proposal received after the deadline will be disqualified.
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C. Proposals will be accepted only from parties that are free of all obligations and interests that
might conflict with the best interest of the City of Santa Ana, The City will not be liable for any
costs incurred in preparing proposals or associated travel costs. The proposer shall furnish the
City with such additional information as the City may reasonably require. The City reserves the
right to conduct pre -contract negotiations with any or all potential proposers.
D. Any questions regarding this Request for Proposal shall be made in writing via e-mail to Sergio
Vidal at svidal wsanta-ana.ora. Enter "PROFESSIONAL AUDITING SERVICES RFP 16-014"
as the Subject title on all e-mail correspondence.
E. Costs for developing proposals are entirely the responsibility of the respondent.
F. The respondent grants permission for the City to contact any individuals listed as references.
G. All submitted proposals, and information included therein and attached thereto, shall become
public records upon receipt by the City Council for consideration of selection of auditor.
H. All proposals must be valid for a period of not less than ninety (90) days from the closing date of
submission.
I. The proposer receiving the award will provide Certificates of Insurance to the City to verify
coverage in relationship to these services prior to commencing work.
8) SELECTION PROCESS AND CRITERIA
A. Selection Committee
All proposals will be reviewed by a selection committee designated by the Executive
Director of Finance and Management Services Agency. The selection process will
involve the review of the proposal for compliance with the requirements of the RFP,
qualifications of the firm and references.
Based upon the selection committee's review of the proposals, interviews may be
scheduled at the City of Santa Ana City Hall with the most qualified proposers. Finalists
will be notified of specific times and will be allowed a total of thirty minutes for their
presentation and to answer questions from the selection committee.
The selection committee will rank the audit firms and recommend the top ranked firm to
the City Council for award of contract,
The City is under no obligation to accept any proposal and reserves the right to
negotiate with respondents as to fees and terms. The City may reject proposals at its
sole discretion. If a proposal fails to satisfy any requirements outlined in this RFP, it may
be considered non -responsive and the proposal may be rejected.
The audit firms will be ranked based on the following criteria:
1. Technical qualifications and experience of key members of the engagement team
and the firm (20%)
2. Experience with similarly sized governmental agencies in providing the types of
services outlined in this RFP (15%)
to
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3. Capability of handling all aspects of the engagement as defined as well as
providing ongoing support and technical assistance throughout the year (10%)
4. Ability to provide continuity of staff from year to year (10%)
5. Thoroughness of auditors proposed scope of work (10%)
6. Clearly defined schedule of work to be performed and ability to meet required
completion dates for key parts of the audit (20%)
Reasonableness and competitiveness of cost budget (15%)
The award of the contract will not be based on the lowest fee proposed, but on a
combination of all of the above factors,
9) PROTESTS
Firms may file a "protest" to an RFP with the Finance & Management Services Department. In
order for a protest to be considered valid, the protest must:
Be filed in writing within five (5) business days of either the RFP issued date or before
5:00 p.m. of the 5th business day following the posting of Notice of Intent to Award
Contract on the City's website;
2. Clearly identify the specific irregularity or accusation;
3. Clearly identify the specific City staff determination or recommendation being protested;
4. Specify, in detail, the grounds of the protest and the facts supporting the protest; and
5. Include all relevant, supporting documentation with the protest at time of filing.
If the protest does not comply with each of these requirements, it will be rejected as Invalid. If
the protest is valid, the Finance Executive Director, or other designated City staff member, shall
review the basis of the protest and all relevant information. The Finance Executive Director will
provide a written decision to the protestor within ten (10) business days from receipt of protest.
The decision from the Finance Executive Director, or her/her designee, is final and no further
appeals will be considered.
10) RFP TIMETABLE (SUBJECT TO CHANCE)
Issue Date:
Deadline for Questions about RFP:
Proposal Due Date:
Review of Proposals:
Projected Award Date:
February 11, 2016
February 19, 2016
March 4, 2016, by 4:00 P.M.
March 7 — 22, 2016
April 5, 2016
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EXHIBIT A
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES
SAMPLE AGREEMENT
AGREEMENT FOR PROVISION OF FINANCIAL AUDIT SERVICES
THIS AGREEMENT, made and entered into this DAY day of MONTH, YEAR by and between NAME
OF AUDIT FIRM (hereinafter "AUDITOR"), and the City of Santa Ana, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California (hereinafter
"CITY',).
RECITALS
A. The CITY issued a Request for Proposals, dated DATE, YEAR, for an independent audit of its
financial statements and records.
B. Pursuant to said invitation, AUDITOR submitted a proposal which is hereby accepted by CITY for
provision of said professional service,
C. AUDITOR is recognized as a competent and qualified certified public accountant, duly authorized to
practice and licensed as such by the California State Board of Accountancy.
D. In undertaking the performance of this Agreement, AUDITOR represents that it is knowledgeable in
its field and that any services performed by AUDITOR under this Agreement will be performed in
compliance with such standards as may reasonably be expected from a professional consulting firm in
the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and
conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
AUDITOR shall provide financial auditing services for CITY's 2OXX-20XX fiscal years, as set forth in
CITY's Request for Proposals, attached hereto as Exhibit A, and incorporated by this reference, Said services
shall be performed in accordance with the process set forth in AUDITOR'S Proposal, attached hereto as Exhibit
B. All exhibits referenced herein and attached hereto shall be incorporated by reference as though attached in
their entirety.
2. REPRESENTATIVES
For purposes of implementing this Agreement, the representative of CITY shall be, the Executive Director
of the finance and Management Services Agency, or his designated representative, and the representative of the
AUDITOR shall be NAME TITLE Except as may be otherwise stated herein, such
representatives shall have the. authority to art on behalf of their respective parties in carrying out the terms of this
Agreement,
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3. DELIVERY OF WORI£ PRODUCT - OWNERSI3IP
AUDITOR warrants and represents that it has the absolute right to enter into and perform this Agreement
and will perform its obligations hereunder in accordance with standards and practices prevailing in the industry.
AUDITOR's contribution to the Project, including works to be produced by AUDITOR hereunder, will not
infringe or misappropriate the proprietary or personal rights of any third person or party. AUDITOR shall deliver
to CITY any work product which results from the services provided. Said work product shall be submitted in
hard copy and produced in a form compatible with CITY's information systems, as agreed between the Project
Manager and AUDITOR.
In regard to all material produced as a deliverable under this Agreement, including but not limited to
records, papers, drawings, specifications, programs, systems and other materials prepared by AUDITOR,
AUDITOR agrees, for itself and its affected officers, employees, agents, contractors, and volunteer workers, that
(a) other such material shall be the property of the CITY, and may not be copyrighted without prior review from
the CITY, and (b) the authors of all such material, whether copyrighted or not, award to the CITY, and to its
officers, agents and employees acting within the scope of their official duties, as a condition of payment to the
AUDITOR, a royalty -free, nonexclusive, irrevocable license throughout the world for governmental purposes to
disclose, publish, translate, reproduce, and use such materials.
4. COMPENSATION
a. CITY agrees to pay, and AUDITOR agrees to accept as total payment for its services, the rates and
charges identified in AUDITOR's Cost Proposal, attached hereto as Exhibit C. The total sum to be expended
under this Agreement shall not exceed $ MAXIMUM PEE per fiscal year, during the term of this Agreement.
b. Payments to AUDITOR shall be made within thirty (30) days after receipt by CITY of invoices from
AUDITOR, which shall be rendered not more often than monthly. Special examinations, surveys, or detailed
reports of any nature outside the scope of this Agreement shall be billed separately by AUDITOR and most be
specifically authorized in writing by CITY in advance of such additional services proposed to be provided.
Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals
which may reasonably be expected by CITY.
5. TERM
The term of this Agreement shall be for a period of two (2) consecutive years, beginning with the fiscal
year ending June 30, 2OXX. CITY shall retain an option in its sole discretion to extend auditing services for one
additional two-year period.
6. INDEPENDENT CONTRACTOR
AUDITOR shall, during the entire term of this Agreement, be construed to be an independent contractor
and not an employee of the CITY. This Agreement is not intended nor shall it be construed to create an
employer -employee relationship, a joint venture relationship, or to allow the CITY to exercise discretion or
control over the professional manner in which AUDITOR performs the services which are the subject matter of
this Agreement, however, the services to be provided by AUDITOR shall be provided in a manner consistent with
all applicable standards and regulations governing such services, AUDITOR shall pay all salaries and wages,
employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be
responsible for all applicable withholding taxes.
7. INSURANCE
Prior to undertaking performance of work under this Agreement, AUDITOR shall maintain and shall
require its subcontractors, if any, to obtain and maintain insurance as described below:
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a. Commercial General Liability Insurance. AUDITOR shall maintain commercial general liability
insurance which shall include, but not be limited to protection against claims arising from bodily and personal
injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising
out of AUDITOR's operations in the performance of this Agreement, including, without limitation, acts involving
vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily
and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000
per occurrence, $2,000,000 in the aggregate. Such insurance shall (a) name the CITY, its officers, employees,
agents, volunteers and representatives as additional insured(s); (b) be primary with respect to insurance or self-
insurance programs maintained by the CITY; and (c) contain standard separation of insureds provisions.
b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less
than $2,000,000 combined single limit. Such insurance shall include coverage for owned, hired and non -owned
automobiles.
c. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the Labor
Code, AUDITOR, if AUDITOR has any employees, is required to be insured against liability for worker's
compensation or to undertake self-insurance. Prior to commencing the performance of the work under this
Agreement, AUDITOR agrees to obtain and maintain any employer's liability insurance with limits not less than
$1,000,000 per accident.
d. Professional liability (errors and omissions) insurance, with a combined single limit of not less than
$1,000,000 per claim, and $2,000,000 in the aggregate.
e. The following requirements apply to the insurance to be provided by AUDITOR pursuant to this
section:
(i) AUDITOR shall maintain all insurance required above in fall force and effect for the
entire period covered by this Agreement,
(ii) Certificates of insurance shall be furnished to the CITY upon execution of this
Agreement and shall be approved in form by the City Attorney.
(iii) Certificates and policies shall state that the policies shall not be canceled or reduced in
coverage or changed in any other material aspect without thirty (30) days prior written
notice to the CITY.
f. If AUDITOR fails or refuses to produce or maintain the insurance required by this section or fails or
refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the
CITY shall have the right, at the CITY's election, to forthwith terminate this Agreement, Such termination shall
not effect AUDITOR's right to be paid for its time and materials expended prior to notification of termination.
AUDITOR waives the right to receive compensation and agrees to indemnify the CITY for any work performed
prior to approval of insurance by the CITY,
8. INDEMNIFICATION
AUDITOR agrees to and shall indemnify and hold harmless the CITY, its officers, agents, employees,
consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just
compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and
claims for property damage, which may arise from the negligence, recklessness or willful misconduct of the
AUDITOR or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which
relates to the services described in section I of this Agreement; and (2) from any claim that personal injury,
damages, just compensation, restitution, judicial or equitable relief is due by reason of the negligence,
recklessness or willful misconduct of AUDITOR arising from this Agreement. The AUDITOR further agrees to
indemnify, hold harmless, and pay all costs for the defense of the CITY, including fees and costs for special
counsel to be selected by the CITY, regarding any action by a third party asserting that personal injury, damages,
just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the
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terms of, or effects arising from this Agreement. CITY may make all reasonable decisions with respect to its
representation in any legal proceeding.
4. CONFIDENTIALITY
All information gained by AUDITOR in performance of this Agreement shall be considered confidential
and shall not be released by AUDITOR without CITY'S prior written authorization excepting that information
which is a public record and subject to disclosure pursuant to the California Public Records Act, government
Code Section 6250 et se . AUDITOR, its officers, employees, agents, or subcontractors, shall not voluntarily
provide declarations, letters of support, testimony at depositions, response 'to interrogatories or other information
concerning the project or cooperate in any way with a party who may be adverse to CITY or whom AUDITOR
reasonably should know may be adverse in any subsequent litigation. AUDITOR shall incur no liability under
this Agreement for materials submitted by it which are later released by CITY, its officers, employees, or agents.
AUDITOR shall also incur no liability for statements made by it at any public meeting, or for any document
released by it for which prior written CITY authorization was obtained.
If AUDITOR or any of its officers, employees, consultants, or subcontractors does voluntarily provide
information in violation of this Agreement, CITY has the right to reimbursement and indemnity from AUDITOR
for any damages caused by AUDITOR'S conduct --including attorney's fees.
AUDITOR shall promptly notify CITY should AUDITOR, its officers, employees, agents or subcontractors
be served with any Summons, Complaint, Subpoena, Notice of Deposition, Request for Documents,
Interrogatories, Request for Admissions or other discovery requests from any party regarding this agreement and
the work performed hereunder. CITY retains the right, but not the obligation, to represent AUDITOR and/or to
be present at any deposition, hearing, or similar proceeding. AUDITOR agrees to cooperate fully with CITY and
to provide CITY with the opportunity to review any response to discovery requests provided by AUDITOR.
However, CITY'S right to review any such response does not imply or mean the right by CITY to control, direct,
or rewrite said response.
CITY warrants that AUDITOR will have fully met the requirements of this provision by obtaining CITY'S
written approval prior to providing documents, testimony, or declarations; Consulting with CITY before
responding to a Subpoena or court order; in the case of depositions upon providing Notice to CITY of same; or
providing CITY opportunity to review discovery responses prior submission. For purposes of this section, a
written authorization from CITY shall include a "faxed" letter.
10. CONFLICT OF INTEREST CLAUSE
AUDITOR covenants that neither it nor any officer or principal of their firm have any interests, nor shall
they acquire any interest, directly or indirectly which will conflict in any manner or degree with the performance
of their services hereunder. AUDITOR further covenants that in the performance of this Agreement, no person
having such interest shall be employed by them as an officer, employee, agent, or subcontractor.
11. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in
writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail,
postage prepaid, or sent by facsimile or other telegraphic communication in the manner provided in this Section,
to the following persons:
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To CITY: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
facsimile (714) 647-6956
With courtesy copies to:
and
To AUDITOR:
Executive Director of the Finance and Management Services Agency
City of Santa Ana
20 Civic Center Plaza (M-17)
P.O. Box 1988
Santa Ana, California 92702
facsimile (714) 647-5414
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
facsimile (714) 647-6515
A patty may change its address by giving notice in writing to the other party. Thereafter, any
communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be
effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly
registered or certified, with postage prepaid, and addressed as set forth above. If sent by facsimile,
communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on
the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes
of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded.
12, EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the CITY and AUDITOR, and
supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between
the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail, This
Agreement may not be modified except by written instrument signed by the CITY and by an authorized
representative of AUDITOR. The parties agree that any terms or conditions of any purchase order or other
instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate
AUDITOR nor the CITY, Each party to this Agreement acknowledges that no representations, inducements,
promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein,
13, ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of AUDITOR, AUDITOR may
not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the CITY and
any such assignment, transfer, delegation or subcontract without the CITY's prior written consent shall be
considered null find void. Nothing in this Agreement shall be construed to limit the CITY's ability to have any of
the services which are the subject to this Agreement performed by CITY personnel or by other consultants
retained by CITY,
16
25E-29
14. TERMINATION
If, at any time during the term of this Agreement, CITY determines that AUDITOR is not faithfully
abiding by any term or condition contained herein, CITY may notify AUDITOR in writing of such defect or
failure to perform; which notice must give AUDITOR a ten (10)-day notice of time thereafter in which to perform
said work or cure the deficiency. If AUDITOR has not performed the work or cured the deficiency within the ten
(10) days specified in the notice, such shall constitute a breach of this Agroement and CITY may terminate this
Agreement itmxiediately by written notice to the AUDITOR to said effect. Thereafter, neither party shall have
any further ditties, obligations, responsibilities or rights under this Agreement except, however, any and all
obligations of AUDITOR'S surety shall remain in full force and effect, and shall not be extinguished, reduced, or
in any manner waived by the termination hereof. In said event, AUDITOR shall be entitled to the reasonable
value of its services performed from the beginning of the period in which the breach occurs up to the day it
received CITY'S Notice of Termination, less any offset from such payment representing the CITY'S damages
from such breach. CITY reserves the tight to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the CITY'S sole discretion, so as to permit a full and
complete accounting of costs. In no event, however, shall AUDITOR be entitled to receive in excess of the
compensation quoted in its bid
15, ATTORNEYSFEES
In the event an action is commenced by either party to enforce any rights under this Agreement, the
prevailing party shall be entitled to recover reasonable attorney's fees and court costs, in addition to any other
relief granted by the Court.
16. DISCRIMINATION
AUDITOR shall not discriminate because of race, color, creed, religion, sex, marital status, sexual
orientation, age, national origin, ancestry, or.disability, as defined and prohibited by applicable law, in the
recruitment, selection, training, utilization, promotion, termination or other employment related activities.
AUDITOR affirms that it is air equal opportunity employer and shall comply with all applicable federal, state and
local laws and regulations,
17. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity, interpretation,
performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the
laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for
any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
AUDITOR shall, throughout the term of this Agreement, maintain all necessary licenses, permits,
approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws
and regulations of the United States, the State of California, the City of Santa Ana and all other governmental
agencies. AUDITOR shall notify the CITY immediately and in writing of its inability to obtain or maintain such
permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this
Agreement.
19. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature hereinbelow has the power, authority and
right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully,
including reasonable costs and attorney's fees, for any injuries or damages to CITY in the event that such
authority or power is not, in fact, held by the signatory or is withdrawn.
17
25E-30
b. Captions and headings in this Agreement, including the title of this Agreement, are for convenience
only and are not to be considered in construing this Agreement.
c. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body
of this Agreement.
IN WITNESS WHEREOF, the, parties hereto have executed this Agreement the date and year first above written.
ATTEST
Clerk of the Council
APPROVED AS TO FORTM:
City Attorney
By:
CITY OF SANTA ANA
City Manager
AUDITOR
ME
25E-31
EXHIBIT B
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES
REFERENCES
List and describe fully the contracts performed by your firm which demonstrate your ability to provide
the supplies, equipment or services included in the scope of the proposal specifications. Attach
additional pages if required. The City reserves the right to contact each of the references listed for
additional information regarding your firm's qualifications.
Reference
Customer r
Address:
Contact Individual:
Phone Number:
Facsimile Number:
Contract Amount: Year:
Description of supplies, equipment, or services provided:
Reference
Customer I
Address:
Contract Amount:
Description of supplies, equipment, or services provided:
Reference
Customer t
Address:
Contract Amount:
Description of supplies, equipment, or services provided:
Contact Individual:
Phone Number:
Facsimile Number:
Year:
Contact Individual:
Phone Number:
Facsimile Number:
Year:
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL,
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
19
25E-32
EXHIBIT C
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES
PROPOSER'S STATEMENT
Proposer understands and agrees that this written RFP (or any part thereof specifically designated and
accepted by the City of Santa Ana, hereinafter City) shall constitute the entire agreement between
proposer and the City only after it has been accepted by the City Council, endorsed by the Clerk of the
Council with her signature and official seal noting hereon the action of approval of the Council, signed by
the Executive Director or his duly authorized agent, and signed by the City Attorney, denoting his approval
of the form of this document, and Its execution, and when it or an exact copy of it has been either delivered
to proposer or deposited with the United States Postal Service properly addressed to the proposer with the
correct postage affixed thereto.
Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will
furnish City all required bonds and certificate of liability insurance within ten (10) days (excluding
Saturdays, Sundays and City's legal holidays), or the funds, check, draft, or proposer's bond substituted in
lieu thereof accompanying this proposal shall become the property of the City and shall be considered as
payment of damages due to the delay and other causes suffered by City because of the fallure to furnish
the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by City
Is difficult to ascertain; otherwise said funds, check drafts, or proposer's bond substituted in lieu thereof
shall be returned to the undersigned.
Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth
in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under
the contract will be based upon the actual quantities of work satisfactorily completed.
All terms contained in the specifications, the certification of nondiscrimination by contractors, and the
required insurance certificates are to be incorporated by reference into this agreement and are made
specifically as part of this RFP.
Signed and Printed Name:
Title
Date
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE
20
25E-33
EXHIBIT D
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES
NONCOLLUSION AFFIDAVIT
NON -COLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and
Public Contract Code Section 7106)
To the CITY OF SANTA ANA
In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the
proposer declares that the proposal is not made in the interest of, or on behalf of, any undisclosed
person, partnership, company, association, organization, or corporation; that the proposal is genuine
and not collusive or sham; that the proposer has not directly or indirectly induced or solicited any other
proposer to put in a false or sham proposal, and has not directly or indirectly colluded, conspired,
connived or agreed with any proposer or anyone else to put in a sham proposal, or that anyone shall
refrain from bidding; that the proposer has not in any manner, directly or indirectly, sought by
agreement, communication, or conference with anyone to fix the proposal price of the proposer or any
proposer, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other
proposer, or to secure any advantage against the public body awarding the contract of anyone
interested in the proposed contract; that all statements contained in the proposal are true; and, further,
that the proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown
thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not
pay, any fee to any corporation, partnership, company association, organization, bid depository, or to
any member or agent thereof to effectuate a collusive or sham proposal.
Note: The above noncollusion affidavit is part of the proposal. Signing this proposal on the signature
portion thereof shall also constitute signature of this noncollusion affidavit. Proposers are cautioned
that making a false certification may subject the certifier to criminal prosecution.
Sig
State of California, County of
Subscribed and sworn to (or affirmed) before me on this day of 120 by
proved to me on the basis of satisfactory evidence to be the persons)
who appeared before me.
Notary Public Signature Notary Public Seal
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
21
25E-34
600 a M , I c
FOR THE TWO YEARS ENDING JUNE 30, 2017
(WITH AN OPTION FOR THE TWO YEARS
ENDING JUNE 30, 2019)
Submitted By:
25E-35
TITLE PAGE
RFP Subject: Certified Audits on the City of Santa Ana
For the Two Years Ending June 30, 2017
(With an Option for the Two Years
Ending June 30, 2019)
Name of Proposer: White Nelson Diehl Evans LLP
Certified Public Accountants and Consultants
Local Address: 2875 Michelle Drive, Suite 300
Irvine, CA 92606-5165
Telephone: (714) 978-1300
Fax: (714) 978-7893
Federal Identification Number: 33-0686301
California CPA License Number: PAR 6123
Website: www,wndecpa.com
Email: npatel@wndecpa.com
Contact Persons: Nitin P. Patel, CPA
Engagement Partner
Daphnie Munoz, CPA
Partner
Date: March 4, 2016
25E-36
CITY OF SANTA ANA
TABLE OF CONTENTS
March 4, 2016
Page
Number
Letter of Transmittal
1-2
Firm Profile and Qualifications:
Firm Organization Chart
3
Licensing and Independence
4
Size and Location of Firm
4
Range of Activities
4
Participation in "Quality Review" Programs
5
Education Programs
5
Participation in Professional Organizations
6
GFOA Award Program
7
Computer Auditing Capabilities
8
Insurance
g
Partner, Supervisory and Staff Qualifications and Experience:
Audit Team
g
Commitment Related To Personnel
9
Nondiscrimination Policy
g
Resumes of Audit Team Personnel
10 - 16
Firm Experience with Governmental Entities:
Similar Engagements with Other Municipal Entities
17 - 18
City Client References
18
Enterprise Fund Experience
19
Single Audit Experience
20
Experience with Preparation of State -Mandated Reports
20
Special Districts
21
Nonprofit Corporations and Joint Power Authorities
21
Scope of Work, Timing and Audit Approach:
Entities to Be Included in Audit
22
Reports to Be Issued and Due Dates
22
Audit Timing
23
Commitment to Deliver Reports on a Timely Basis
23
Audits to Be in Accordance with GAAS and Other Requirements
23 - 24
Audit Approach
24 - 25
Audit Approach Redevelopment Agency/Successor Agency
26
Approach to Internal Control
26
Single Audit Approach
27
Determining Laws and Regulations Subject to Audit
27
25E-37
CITY OF SANTA ANA
TABLE OF CONTENTS
(CONTINUED)
March 4, 2016
Page
Number
Scope of Work, Timing and Audit Approach (Continued):
Method of Sampling
Analytical Procedures
Management Letters
Potential Audit Problems
Retention of and Access to Audit Workpapers
Other Professional Services
Irregularities and Illegal Acts
Segmentation of the Audit Hours, By Partner and Staff Level
Segmentation of the Audit Hours, By Phases of the Audit
Discussion of Relevant Accounting Issues:
GASB Statement No. 72
GASB Statement No. 73
GASB Statement No. 74
GASB Statement No. 75
GASB Statement No. 76
GASB Statement No. 77
GASB Statement No. 78
GASB Statement No. 79
Consulting Services Department:
Overview of Services Provided
Attachment I:
Current City Client References
Lists of City and Special District Engagements - Performed in the Last 5 Years
Attachment II - Results of Outside Quality Review
Attachment III - Documents Requested in Request for Proposal:
Exhibit B - References
Exhibit C - Proposer's Statement
Exhibit D - Noncollusion Affidavit
27
28
28
28
28
28
28
29
29
30
30
30
30
31
31
31
31
32
33
25E-38
March 4, 2016
Mr. Sergio Vidal, Assistant Directorof
Finance and Management Services Agency
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Dear Mr. Vidal:
We are pleased to present our proposal to serve as independent auditors for the City of Santa Ana. We have
prepared this information in accordance with the guidelines set forth in your request for proposal.
Who We Are
White Nelson Diehl Evans LLP is a California certified public accounting and consulting firm with offices in
Irvine, Carlsbad and Escondido. Our firm has specialized in providing services to the governmental Industry for
over 80 years and has no intentions of discontinuing these services.
Why We Are The Best Qualified Firm
We consider ourselves to be the best qualified firm to perform auditing and accounting services for the City of
Santa Ana. Please consider these qualifications:
• A significant part of our practice is devoted to providing professional services to the governmental industry
and over the past year, the firm provided services to approximately 100 governmental organizations and
on an annual basis our firm issues over 150 reports on audits of local governmental agencies including,
Cities, the Successor Agency to Redevelopment Agencies, Special Districts and Joint Power Authorities.
• Our firm has devoted a substantial amount of time and resources in order to provide governmental
agencies with quality audits. Our knowledge of the industry is best demonstrated by the fact that our
clients who apply for the "Certificate of Achievement in Financial Reporting" issued by the Government
Finance Officers Association (GFOA) consistently receive that award. A list of these clients is presented on
page 7 of this proposal
• We are in a professional alliance with BDO Seidman, a National Accounting Firm, and a network of
accounting firms allowing us the ability to provide quality attestation services. The BDO Alliance provides
us access to BDO's personnel and technical resources which allows White Nelson Diehl Evans LLP to deliver
the range of services and capabilities of a large national firm, including the use of specialists to support the
needs of our clients.
• We are a full service CPA firm. Our Consulting Services Department can provide the City with a variety of
services, including investment policy compliance reviews, litigation support, dispute resolution services,
and consulting on a wide array of governmental issues.
Our audits include extensive use of information technology as described in detail on page 8 of this
proposal.
2975 NfichelleDnve, Sture 300, Ironie, CA 92606 -'Iel: 71=1.9'8,1300 > has. 71 9"8,7893
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25E-39
Why_We Are The Best Qualified Firm (Continue,
We understand that we provide a service to the City. We are committed to providing an effective and
efficient audit that will meet the proposed timing of the project deliverables by assigning experienced
governmental auditors. Understanding the size of the City of Santa Ana and the scope of work requested in
the proposal, we are proposing an engagement team with extensive governmental audit experience, The
staffing plan includes two partners, Nitin Patel, CPA, the engagement partner with 30 years of experience
and Daphnie Munoz, CPA, a partner with 18 years of experience, two managers, Kassie Radermacher, CPA
and Robert Perl, CPA, with 11 and 10 years of experience, respectively, who will manage the audit and two
supervisors, Tiffany Fung, CPA and Jesse Pattison, CPA, with 6 and 5 years of experience, respectively, who
will be on -site supervising and performing the audit fieldwork. We are confident that the proposed
staffing plan with an engagement team experienced in governmental audits and who are familiar with
municipal procedures will result in an effective and efficient audit that meets the project timing and
deliverables requirements with minimum disruption to your staff.
The scope of our services for the two years ending June 30, 2017 would be as follows:
• A financial audit of the basic financial statements of the City of Santa Ana, including the Successor
Agency and Housing Authority's transactions, in accordance In with auditing standards generally
accepted in the United States of America and Government Auditing Standards issued by the
Comptroller General of the United States, to be included in the Comprehensive Annual Financial
Report (CAFR), and assistance with the finalization of the CAFR.
+ A Single Audit of Federal Grants to be performed to meet the requirements of Title 2 U.S. Cade of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirement for Federal Awards (Uniform Guidance).
+ A financial and compliance audit of the Air Quality Improvement Fund.
• An agreed -upon procedures review of the calculation of the City's GANN Appropriations Limit (GANN),
as required by Section 1.5 of Article XI IIB of the California Constitution.
+ A compliance review of the City's Investment Policy.
• Preparation and submission of the Sana Ana Housing Authority's Financial Data Schedule
• Preparation and submission of the City's annual State Controller's Report.
• Two agreed -upon procedures reviews annualy regarding the City's internal control processes,
• A management letter containing any comments or recommendations resulting from our review of the
systems of internal controls in connection with the financial audits.
• A report communicating information related to the audit to those in charge of governance at the
conclusion of the audits,
We make a commitment to deliver all necessary reports based on the timetable presented herein on page 22,
Also, a more detailed discussion of our understanding of the work to be performed is set forth on pages 22
through 29.
Our goal is to provide the City with the highest quality of service, including a CAFR which meets all required
reporting standards. We are confident that our service and experience will be of benefit to the City and will
provide added value over and above the performance of the audit itself. Throughout the year, you should feel
comfortable in calling us for advice regarding accounting and auditing matters, as we are never too busy to
meet the needs of our clients.
We thank the City for the opportunity to present our proposal, Please feel free to contact me, or
Ms, Daphnie Munoz, CPA, , at (714) 978-1300 if you have any questions. This proposal constitutes a firm and
irrevocable offer for 90 days from the date of this letter. Ms. Munoz and I are authorized to represent ourfirm,
and bind the firm to a contract.
Very truly yours,
WHITE NELSON DIEHL EVANS LLP
(�to
Nitin R Patel, CPA
Engagement Partner
25E-40
FIRM ORGANIZATION CHART
* The staffing levels described above have remained fairly constant for the past four years.
25E-41
I,I, CEN INNGG AND INDEPENDENCE
Our firm, and all of our certified personnel, are properly licensed to practice public accounting in
California.
Also, we meet the independence requirements of "Government Auditing Standards", as published by
the U.S. General Accountability Office. We have no conflict of interest with the City and will provide
written notice to the City of any professional relationships contemplated with the City during our term
as auditors. We have not provided auditing or any other services to the City during the past five years.
SIZE AND LOCATION OF THE FIRM
White Nelson Diehl Evans LLP is a California accounting firm with offices in Irvine, Carlsbad and
Escondido.
Our firm has approximately 140 employees,
which includes 22 partners with separate
assurance and tax departments. Your City
would be served by the assurance department
from our Irvine office, which has
approximately 48 professional staff members,
including 11 partners, and 14 managers and
supervisors. The Irvine Office assurance
department staff with governmental
experience consists of four partners, four
managers, seven supervisors, six seniors and
twelve staff accountants.
White Nelson Diehl Evans LLP has extensive experience in providing auditing, accounting and
consulting services in the governmental sector. Over twenty thousand hours per year are devoted to
this area of our practice for over 100 governmental units including cities, successor agencies, special
districts, nonprofit corporations and joint power authorities.
1-faaflaffam
White Nelson Diehl Evans LLP is a full service CPA firm. We offer a broad range of services, including:
Certified Audits Tax Planning and Consulting
Compilations and Reviews Income Tax Preparation and Representation
Agreed -Upon Procedure Reviews Consulting Services
Financial Services Litigation Support Services
Our specific services available to governmental agencies are more fully set forth in this proposal.
4
25E-42
In July 2015, our firm underwent a quality review, by an independent CPA firm, under provisions of
the AICPA Quality Review Program. This review is required every three years and covered our audits
of governmental agencies. A final report dated July 22, 2015 with a pass rating on our systems and
procedures was received. A copy of the independent CPA firm's report is included herein at
Attachment II. Accordingly, we are confident that our current auditing standards and techniques meet
all existing requirements.
No regulatory action has ever been taken against any office of our firm due to substandard work. We
had no significant deficiencies noted in any federal or state desk reviews over the past three years,
�- H-11VA19ki
White Nelson Diehl Evans LLP has a formal continuing education program. All firm auditors are
required to obtain 80 hours of continuing education every two years in the accounting and auditing
area as required by Government Auditing Standards, and at least 24 hours of government related
continuing education courses. Our staff is continually expanding their knowledge of the governmental
Industry through our in-house training programs, programs offered by the AICPA, GFOA, the California
Society of Certified Public Accountants and other professional organizations, and through on-the-job
training.
Noted below is a description of certain in-house education courses taken by our partners and staff to
meet the governmental continuing education requirements. All personnel involved with governmental
auditing are required to attend these courses.
• Understanding the Risk Assessment Standards
® Understanding of GASB Statement No. 34, Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments
Understanding, and Auditing, Deposits and Investments of California Governmental Units
• Reviews of Internal Controls in Accordance With Statements on Auditing Standards
• Assessing Audit Risk and Materiality in Conducting An Audit
+ Consideration of Fraud in a Financial Statement Audit
• Computer Auditing in the Governmental Environment
• The Single Audit - New Provisions under Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform
Guidance).
• Laws and Regulations in the Government Sector
• Understanding GASB Statement54 related to Fund Balance Reporting and Governmental Fund
Type Definitions
• Understanding GASB Statement 65 related to reporting of Deferred Outflows and Deferred Inflows
of Resources
• Understanding the new GASB Pension Standards
25E-43
PARTICIPATION IN PROFESSIONAL ORGANIZA11ONS
Our partners and staff are actively involved in professional organizations in the governmental
accounting field. Noted below is a summary of our participation in various national and California
governmental organizations.
,
Our firm is a member of the AICPA Governmental Audit Quality Center. The Center is a firm -based
voluntary membership Center whose primary purpose is to promote the importance of quality
governmental audits to purchasers of governmental audit services. The Center provides members
with an online forum tool for sharing best practices, as well as discussions on audit, accounting, and
regulatory issues. As a member of the Center, the firm receives updates on changes in auditing and
accounting standards that effect governmental audits. The quality control partner is required to
attend an annual web cast to discuss auditing and reporting issues effecting governmental audits. Our
firm uses the resources of the Center to maintain the quality of our governmental audits.
Our firm is an associate member of the Government Finance Officers Association of the United States
and Canada(GFOA).
Also, we have web based access to the latest pronouncements issued by the Governmental
Accounting Standards Board (GASB) and the Financial Accounting Standard Board (FASB), including
Interpretations, Technical Pronouncements and Newsletters. We regularly analyze these
pronouncements and advise our governmental clients of changes in accounting rules.
Our Irvine office partners and our Director of Consulting Services are associate members of the
California Society of Municipal Finance Officers (CSMFO). Our personnel regularly attend local CSMFO
chapter meetings throughout Southern California, and the annual statewide conference. We often
provide public speakers for these meetings.
CSCPA
Several partners and principals of the firm have been members of the Governmental Accounting and
Auditing (GAA) Committee of the Orange County Chapter of the California Society of Certified Public
Accountants (CSCPA). Mr. Patel, Mr. Ludin and Mr. Morgan have each served as chairman of this
committee. Firm personnel have been involved over the years in preparing position papers issued for
professional organizations on governmental accounting matters. Currently, Mr. Patel and Mr. Callanan
are members of the State Governmental Accounting and Auditing Committee.
25E-44
The partner and manager will be involved in all phases of report preparation or review. Reporting
checklists will be used to assure compliance with all reporting requirements. In addition, another
member of the firm, not associated with the audit, and with extensive governmental auditing and
accounting experience, will review each financial statement audited and related reports. Based on
the high quality of our review process, we have been able to assist various clients in obtaining the
GFOA "Certificate of Achievement for Excellence In Financial Reporting". The recent clients that have
received the award are:
Cities:
Cities (Continued):
Alhambra
Palm Desert
Bellflower
Pico Rivera
Beverly Hills
Rancho Santa Margarita
Burbank
San Buenaventura
Camarillo
San Gabriel
Campbell
Sanger
Colton
Signal Hill
Costa Mesa
Stanton
Cypress
Tustin
Del Mar
West Covina
Downey
West Hollywood
Fountain Valley
Westminster
Gilroy
Goleta
Special Districts:
Hawaiian Gardens
Costa Mesa Sanitary District
Highland
Inland Empire Utilities Agency
Lake Forest
Las Virgenes Municipal Water District
Lakewood
Olivenhain Municipal Water District
Lancaster
Otay Water District
Newport Beach
Rancho California Water District
Santa Ana Watershed Project Authority
Yorba Linda Water District
25E-45
COMPUTER AUDITING CAPABILITIES
White Nelson Diehl Evans LLP uses technology to make the audit process more effective. We utilize a
paperless audit software, ProSystem fx Engagement, which allows us to manage our audit
documentation electronically. Some of the benefits of paperless audit are:
• Receive the City's schedules in either hard copy or electronic format.
• Import and integrate trial balance data from virtually any accounting system. We avoid the
time and expense of keying in account numbers, descriptions and account balances. We
simply take your electronic trial balance and import it directly into our audit software.
• Create our own lead sheets, which can include prior year balances. This helps us to easily
identify significant fluctuations between fiscal years.
• CAFR schedules are linked to trial balances, CAFR is updated automatically for any last minute
journal entries, if any.
Our approach includes using IDEA (Interactive Data Extraction and Analysis) which is a data analysis
software that can be used to analyze large amounts of information. It allows the firm to extract data
from the City's accounting records to tailor specific audit tests based on risk assessments. Some audit
procedures that IDEA can be utilized for are:
• Mechanical accuracy of worksheets or general ledgers.
• Exception and gap/completeness testing for missing check numbers.
• Cross checking different data bases for common information such as employee names.
• Duplicate testing of invoice numbers.
• Completeness of general ledger balances.
The firm also has document management software which allows our clients to access our web portal.
We utilize the web portal to transfer data files that are confidential or too large to be sent by e-mail.
fi�Yliit�ii!Clld
The firm has the following insurance coverage:
Each
Occurrence
Aggregate
Insurance Type
Limit
Limit
Deductible
Umbrella Policy
$ 4,000,000
$ 4,000,000 $
10,000
General Liability
1,000,000
2,000,000
-
Auto Liability- Mired &
Nonowned (1)
1,000,000
1,000,000
Workers' Compensation
1,000,000
1,000,000
Professional Liability
5,000,000
10,000,000
100,000
(1) Section 7 of the sample
contract requires $2,000,000 combined limit for automobile
insurance. We would
request the City accept
our existing automobile
liability
insurance.
25E-46
•' j ! 11 i a C
The audit team assembled consists of individuals who have extensive experience auditing
governmental agencies and are familiar with municipal accounting. In addition, each team member's
skill and experience developed working in other industries our firm serves can be applied to the
individual requirements of the City of Santa Ana..
The personnel assigned to the engagement team are as follows:
The engagement partner will be Mr. Nitin R Patel, CPA,. Mr. Patel has over 30 years of experience with
audits of local governments. He will be involved with all phases of the audit including (a) the planning
phase of the audit to assess risks related to the audit (b) a final review of all the work papers and
financial reports, and (c) attending any meetings with City's management and City council at the
conclusion of the audit, He will be responsible for assuring that all work for the City is performed in a
complete and timely manner.
Ms. Daphnie Munoz, CPA, will be the partner in charge of the Single Audit, Ms. Munoz has over
18 years of experience with audits of local governments. She will perform a detailed review of the
Single Audit workpapers and assure the Single Audit Is completed in a timely manner.
Mr. Robert J. Cailanan, CPA, will be the Technical Review Partner and will perform a quality review of
all reports issued in connection with the audit. Mr Calianan has over 26 years of experience with
audits of local governments. He will also consult on the accounting treatment of unusual transactions
or audit issues.
Ms. Kassie Radermacher, CPA will serve as the senior audit manager. Ms. Radermacher has over
11 years of experience with audits of local governments. She will be the primary contact for the City
and related audits. Mr. Robert Perl, CPA, will serve as the audit manager responsible for the Single
Audit and related reports. Mr. Perl has over 10 years of experience with audits of local governments.
They will (a) perform the initial review of the work papers including a review of the work completed
related to internal controls, (b) supervise the completion of the financial reports and management
letter and (c) assist in the audit of any complex or unusual audit areas.
The audit supervisors will be Ms. Tiffany Fung, CPA and Mr. Jesse Pattison, CPA. They have 6 and 5
years of experience with audits of local governments. They will be on -site supervising staff
accountants and performing the fieldwork including performing tests of internal controls, substantive
tests of account balances, and analytical tests.
Resumes for the above partners and personnel are included at pages 10 through 16.
We make a commitment to retain the same personnel on the City from year to year, except where
such personnel leave the firm, or where the change is approved by the City. If a staff member is
replaced, we make a commitment to replace that person with staff of at least equal experience.
Our firm has a policy to provide equal employment opportunities to all qualified persons without
regard to race, color, age, sex, religion, national origin or handicap.
25E-47
NITIN P. PATEL, CPA
Position
Engagement Partner
Education
University of California at Irvine, Bachelor of Arts in Economics
California State University at Long Beach Masters of Accounting Program
Licensing
Certified Public Accountant in California since 1988
Professional Organizations
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
California Society of Municipal Finance Officers (CSMFO) - Associate Member
Governmental Accounting and Auditing Committee of Orange County -
Committee Chairman (2001-2002)
California Governmental Accounting and Auditing Committee Member
Range of Experience
Has been with the firm since 1986 with emphasis in governmental accounting and financial reporting and is
responsible for firm's in-house governmental accounting and auditing training programs.
Experience includes supervision of over one hundred audits of governmental agencies including cities,
successor agencies/redevelopment agencies, non-profit corporations, joint powers authorities and special
districts.
CSMFO Report Reviewer for Award Program,
GFOA Report Reviewer for Award Program - Certificate of Achievement for Excellence in Financial Reporting.
Other experience includes providing consulting services for governmental agencies including special internal
control reviews, cost allocation plans, cable television rate reviews, reviews of City Treasurer operations and
transient occupancy tax reviews of city hotels/motels.
Mr. Patel was the engagement partner on the following local government audits in 2015:
Cities:
Cities (Continued):
Alhambra
Stanton
Artesia
West Hollywood
Bellflower
Westminster
Burbank
Colton
Special Districts:
Costa Mesa
Chino Basin Desalter Authority
Cypress
Costa Mesa Sanitary District
Gilroy
Cypress Recreation and Park District
Lake Forest
Inland Empire Regional Composting Authority
Laguna Hills
Inland Empire Utilities Agency
Laguna Woods
La Habra Heights County Water District
Newport Beach
La Puente Valley County Water District
Norwalk
Orchard Dale Water District
Palm Desert
Rancho California Water District
Rialto
Yorba Linda Water District
San Gabriel
Continuing Professional Education
Total hours were 186 in the last three years, of which 144 hours were for meeting the requirements of the
Government Audit Standards,
10
25E-48
DAPHNIE MUNOZ, CPA
Position
Partner
Education
De La Salle University, Philippines
Bachelor of Science in Accounting, 1995
Licensing
Certified Public Accountant in California since 2001
Professional Organizations
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
California Society of Municipal Finance Officers (CSMFO)
Range of Experience
Has been with the firm since 1998 with emphasis In governmental accounting and financial reporting.
Other experience includes providing consulting services for governmental agencies Including special internal
control reviews, and transient occupancytax reviews of city hotels/motels.
CSMFO Report Reviewer for Award Program.
GFOA Report Reviewer for Award Program- Certificate of Achievement for Excellence in Financial Reporting.
Speaker on numerous presentations of accounting, auditing, tax and personnel topics at in-house training
programs and instructor at firm's in-house governmental accounting and auditing seminars.
Experience includes of audits of various governmental agencies including cities, successor
agencies/redevelopment agencies, water districts, other special districts, non-profit corporations and joint
power authorities, including:
Cities:
Cities (Continued):
Alhambra
Tustin
Buena Park
West Covina
Burbank
West Hollywood
Colton
Westminster
Diamond Bar
Downey
Special Districts:
Goleta
Chino Basin Dutcher Authority
Healdsburg
Coachella Valley Association of Governments
Highland
Downey Cemetery District
Huntington Beach
El Toro Water District
Irvine
Inland Empire Regional Composting Authority
Lake Elsinore.
Inland Empire Utilities Agency
Lancaster
Laguna Beach County Water District
Mission Viejo
Las Virgenes Municipal Water District
Newport Beach
Midway City Sanitary District
Oceanside
Municipal Waster District of Orange County
Palm Desert
Orange County Water District
Pico Rivera
Placentia Library District
San Buenaventura
Rancho California Water District
San Fernando
South Coast Water District
Sanger
Southeast Area Animal Control Authority
Santa Clarita
Ventura Port District
Yorba Linda Water District
Continuing Professional Education
Total hours were 177 in the last three years, of which 151 hours were for meeting the requirements of the
Government Audit Standards.
25E-49 11
ROBERT J. CALLANANCPA
Position
Technical Review Partner
Education
Aquinas College, Grand Rapids, Michigan
Bachelor of Arts, Business Administration, 1988
Bachelor of Science, Accounting, 1988
Licensing
Certified Public Accountant in California since 1993
Professional Organizations
American Institute of Certified Public Accountants - Member
California Society of Certified Public Accountants - Member
California Society of Municipal Finance Officers (CSMFO) - Associate Member
California Governmental Accounting and Auditing Committee Member
Range of Experience
Twenty-six years with the firm specializing in governmental audit, accounting, and consulting services.
Two years of experience as Chief Financial Officer of a mortgage lending corporation.
Responsible for the firm's in-house governmental accounting and auditing training programs.
GFOA Report Reviewer for Award Program - Certificate of Achievement for Excellence in Financial
Reporting.
Mr. Callanan was the engagement partner on the following local government audits in 2015:
Cities:
Camarillo
Campbell
Del Mar
Hawaiian Gardens
Norco
Pico Rivera
Rancho Santa Margarita
San Buenaventura
Special Districts:
Laguna Beach County Water District
Pico Rivera Water Authority
Pomona -Walnut -Rowland Joint Water
Line Commission
Rowland Water District
Southeast Water Coalition
Sunset Beach Sanitary District
Surfside Colony Stormwater Protection District
Surfside Community Services District
Ventura Port District
Continuing Professional Education
Total hours were 209 in the last three years, of which 157 hours were for meeting the requirements of
the Government Audit Standards.
12
25E-50
KASSIE RADERMACHER CPA
Position
Senior Audit Manager
Education
West Virginia University
Masters of Professional Accountancy, 2005
Bachelor of Science, 2003
Licensing
Certified Public Accountant in California since 2010
Certified Public Accountant in Virginia since 2006
Professional Organizations
California Society of Certified Public Accountants (CSCPA)
Range of Experience
Ms. Radermacher has been with the firm since June 2009. Ms. Radermacher has performed all
phases of local governmental audits including cities, successor agencies/redevelopment agencies,
single audit of federal grants, special districts, compliance audits and agreed -upon procedures
engagements. As an audit manager, she is involved with planning the audit, performing fieldwork for
all aspects of the audit, supervising staff accountants and preparation of financial statements.
Ms. Radermacher served as the Audit Manager on the following local government audits in 2015:
City of Artesia
City of Bellflower
City of Cypress
City of Fountain Valley
City of Laguna Hills
City of Lake Forest
City of Newport Beach
City of Norwalk
City of Rancho Santa Margarita
City of Rialto
City of San Gabriel
City of Stanton
La Puente Valley County Water District
Lake Elsinore & San Jacinto
Watersheds Authority
Local Agency Formation Commission (LAFCO) -
Orange County
Midway City Sanitary District
Orchard Dale Water District
Orange County Mosquito & Vector Control
District
PIco Water District
Rancho California Water District
Santa Ana Watershed Project Authority
Yorba Linda Water District
Prior to joining the firm, Ms. Radermacher was senior in -charge of compilations, reviews, single
audits, and financial audits for non-profit and business clients with Rager, Lehman & Houck, P.C. in
Frederick, MD. She was also responsible for educating and monitoring the staff.
Continuing Professional Education
Total hours were 209 in the last three years, of which 189 hours were for meeting the requirements of
the Government Audit Standards.
25E-51 13
ROBERT PERL, CPA
Position
Audit Manager
Education
Brigham Young University- Hawaii, Laie, Hawaii
Bachelors of Accounting, 2006
Licensing
Certified Public Accountant in California since October 2010
Range of Experience
Mr, Perl has been with the firm since August 5, 2013. Mr. Perl has performed all phases of local
governmental audits including cities, successor agencies/redevelopment agencies, single audit of
federal grants, special districts, school districts, tribal councils, and compliance audits. As an audit
manager, he is involved with planning the audit, performing fieldwork for all aspects of the audit,
supervising staff accountants and preparation of financial statements. Mr. Perl served as the Audit
Manager on the following local government audits in 2015:
City of Burbank
City of Gilroy
City of Lancaster
City of Rialto
Monterey Peninsula Regional
Park District
In recent years, Mr. Perl has also been involved with the following governmental clients:
City of Downey
Prior to joining the firm, Mr. Perl was also involved with the following governmental clients:
City of Arvin
City of Delano
City of Tehachapi
Kern High School District
Tule River Tribal Council
Continuing Professional Education
Total hours were 208 in the last three years, of which 137 hours were for meeting the requirements of
the Government Audit Standards.
14
25E-52
TIFFANY FUNG. CPA
Position
Audit Supervisor
Education
University of California, Irvine
Bachelor of Economics with a minor in Accounting, 2010
Licensing
Certified Public Accountant in California since July 2013
Range of Experience
Ms. Fung has been with the firm since March 2011, Ms. Fung has performed all phases of local
governmental audits including cities, successor agencies/redevelopment agencies, single audit of
federal grants, special districts, and agreed -upon procedures engagements, As an audit supervisor,
she is involved with planning the audit, performing fieldwork for all aspects of the audit, supervising
staff accountants and preparation of financial statements. Ms. Fung worked on the following local
government audits in 2015:
Cities:
City of Newport Beach
City of Norwalk
City of Palm Desert
City of San Gabriel
City of Westminster
Special Districts:
Inland Empire Regional Composting
Authority
Inland Empire Utilities Agency
Lake Elsinore & San Jacinto Watersheds
Authority
Santa Ana Watershed Project Authority
In recent years, Ms. Fung has also been involved with the following governmental clients:
Cities:
City of Avalon
City of Colton
City of Costa Mesa
City of Downey
City of Tustin
City of West Covina
Special Distrlcts:
Chino Basin Desalter Authority
Costa Mesa Sanitary District
El Toro Water District
Laguna Beach County Water District
Rancho California Water District
South Coast Water District
Walnut Valley Water District
Continuing Professional Education
Total hours were 159 in the last three years, of which 143 hours were for meeting the requirements of
the Government Audit Standards.
25E-53 15
JESSE PATTISON CPA
Position
Audit Supervisor
Education
University of Arizona
Masters of Accounting, 2011
Bachelors of Science, 2010
Licensing
Certified Public Accountant in California since December 2014
Range of Experience
Mr. Pattison has been with the firm since August 2012. Mr, Pattison has performed all phases of audits
including Non-profit Corporations, Cities, Single Audit of Federal Grants, Special Districts, Compliance Audits,
Business Entities, and Agreed -Upon Procedures engagements. He has been involved with planning the audit,
performing fieldwork for all aspects of the audit and preparation of financial statements. Mr. Pattison has
been involved with the following Non-profit, Governmental and Business clients:
Governmental:
City of Alhambra
City of Artesia
City of Bellflower
City of Beverly Hills
City of Bu rba n k
City of Gilroy
City of Highland
City of Hawaiian Gardens
City of La Habra Heights
City of Laguna Hills
City of Lake Forest
City of Newport Beach
City of Sanger
California Joint Powers Insurance
Authority
Los Angeles Local Agency
Formation Commission
Orchard Dale Water District
Non-profit Corporations:
Boys and Girls Clubs of Garden Grove
Casa Romantica
Child Abuse Prevention Center
Collwood Terrace
Human Options, Inc.
Westview Services, Inc.
Business Entities:
Aubrey Group
Ganahl Lumber Company
Independent Capital Management
Ironman
Kellogg Supply
LeVecke Corporation
Meridian Graphics
Pacific American Fish, Co.
Park West
PGP Title, Inc.
Pool Water Products
Premier Land Title Insurance
Security Signal Devices, Inc.
Specialist in Customer Software
Styles for Less, Inc.
Trussed, Inc.
Venus Textiles, Inc.
Prior to joining the firm, Mr. Pattison was a staff accountant and performed reviews, single audits, and
financial audits for non-profit and business clients with Eide Bailly in Phoenix, Arizona.
Continuing Professional Education
Total hours were 126 in the last three years, of which 87 hours were for meeting the requirements of
the Government Audit Standards.
16
25E-54
SIMILAR ENGAGEMENTS WITH OTHER MUNICIPAL ENTITIES
Your request for proposal called for similar engagements, We are including 10 similar engagements,
listed alphabetically with total staff hours. These are set forth below:
Total
Engagement
Staff
City
Partner
Hours
Scone of Work
Beverly Hills
Ludin
785
City and Single Audits
Burbank
Patel
715
City, AQMD, Water and Utility Enterprise Fund
and Single Audits
Colton
Munoz
705
City, Single and Child Care Program Audits;
State Controller's Report
Lancaster
Callanan
635
City and Single Audits; State Controller's
Reports for City and Power Authority
Newport Beach
Patel
375
City & Single Audits; State Controller's Report
Norwalk
Patel
810
City, AQMD, Public Financing Authority, Transit
Other Component Units and Single Audits;
State Controller's Reports - City & Transit
Palm Desert
Patel
620
City, RDA, Recreation Authority, Housing
Authority and Single Audits
Rialto
Patel
720
City and Single Audits
San Buenaventura
Callanan
660
City, RDA Public Financing Authority and
Single Audits; State Controller's Report
Tustin
Munoz
615
City, RDA and Single Audits;
State Controller's Report
Certified audits were performed on the financial statements of all of these cities and their component
units for the past year.
25E-55 17
SIMILAR ENGAGEMENTS WITH OTHER MUNICIPAL E_ALLITIES CONTINUED;!
Client references for the cities listed on page 17 are included below.
City of Beverly Hills City of Lancaster
Mr. Don Rhoads Ms. Pamela Statsmann
Finance Director Assistant Finance Director
(310)285-2429 (661)723-6038
City of Burbank City of Newport Beach
Mr. Dino Balos Mr. Dan Matusiewicz
Accounting Manager Director of Finance
(818)238-5518 (949)644-3126
City of Camarillo City of Norwalk
Mr. Ronnie Campbell Ms. Jana Stuard
Finance Director Director of Finance
(805)388-5320 (562)929-5056
City of Palm Desert
Mr. Paul Gibson
Director of Finance
(760) 346-0611
City of Rialto
Mr. George Harris, II
Director of Administrative
and Community Services
(909) 421-7219
City of San Buenaventura
Ms. Bridgette Mclnally
Accounting Manager
(805)654-7892
City of Tustin
Ms. Jenny Leisz
Finance Manager
(714) 573-3079
A complete list of similar engagements for the past five years is included in Attachment I of this
proposal.
CITY CLIENT REFERENCES
One means of judging the high quality of our auditing and accounting services would be contact with
some of our clients over the past year.. We are including the names and phone numbers of the city
clients as presented in Attachment I of this proposal. We encourage you to contact any of these
individuals and verify our level of service.
18
25E-56
ENTERPRISE FUND EXPERIENCE
Most cities audited by our firm have a water utility enterprise fund, Noted below is a partial listing of
other enterprise funds audited by our firm in recent years:
City
Enterprise
Alhambra
Water, Sewer, Storm Drain, Sanitation, Golf Course
Artesia
Residential Refuse Service
Bellflower
Water
Beverly Hills
Water, Solidwaste, Wastewater, Stormwater
Burbank
Water Reclamation, Sewer, Golf, Electric Utility
Water Utility, Refuse Collection and Disposal
Camarillo
Water, Sanitary, Solidwaste, Transit
Colton
Electric Utility, Water Utility, Wastewater Utility
Cypress
Sewer
Del Mar
Water, Wastewater, Cleanwater
Downey
Water, Sewer, Golf Course, Transit System
Fountain Valley
Water, Solidwaste
Gilroy
Water, Sewer
Hesperia
Water, Sewer
Laguna Hills
Property Leasing
Lakewood
Water
Lancaster
Power Authority
Newport Beach
Water, Sewer
Norco
Water, Sewer
Norwalk
Transit System, Water, Sewer; Golf Course
Palm Desert
Golf Course
Pico Rivera
Water, Sports Arena, Golf
Rialto
Airport, Cemetery, Recreation, Wastewater, Water
San Buenaventura
Water, Sewer
Sanger
Water, Sewer, Disposal, Ambulance
Signal Hill
Water
Stanton
Sewer
Tustin
Water
West Covina
Simulator, Computer
West Hollywood
Sewer District, Sewer Charge, Solid Waste,
Landscape District and Street Maintenance
Westminster
Water
25E-57 19
SINGLE AUDIT EXPERIENCE
We perform single audit services for most of our cities and special districts that receive federal funds
as required by the Uniform Guidance. In recent years, Single Audits were performed for the following
cities and special districts.
Cities:
City of Alhambra
City of Artesia
City of Bellflower
City of Beverly Hills
City of Burbank
City of Camarillo
City of Campbell
City of Colton
City of Costa Mesa
City of Cypress
City of Del Mar
City of Downey
City of Fountain Valley
City of Gilroy
City of Goleta
City of Hawaiian Gardens
City of Hesperia
City of Highland
City of La Habra Heights
City of Laguna Hills
Special Districts:
Inland Empire Utilities Agency
Las Virgenes Municipal Water District
Qlivenhain Municipal Water District
Rancho California Water District
Valley Wide Recreation and Park District
City of Laguna Woods
City of Lake Forest
City of Lakewood
City of Lancaster
City of Newport Beach
City of Norco
City of Norwalk
City of Palm Desert
City of Pico Rivera
City of Rancho Santa Margarita
City of Rialto
City of San Buenaventura
City of San Gabriel
City of Sanger
City of Signal Hill
City of Stanton
City of Tustin
City of West Covina
City of West Hollywood
City of Westminster
We have experience with the preparation of various state -mandated reports, such as the State
Controller's Report and the Annual Street Report.
the state mandated reports, in recent years, for
Goleta, La Habra Heights, Laguna Hills, Lancaste
Sanger, Tustin and West Hollywood.
Specifically, with regard to cities, we have prepared
he Cities of Alhambra, Bellflower, Colton, Del Mar,
Norco, Norwalk, Pico Rivera, San Buenaventura,
20
25E-58
SPECIAL DISTRICTS
Noted below is a listing of special districts audited by our firm In recent years:
Borrego Water District
Calleguas Municipal Water District
Chino Basin Desalter Authority
Chino Basin Regional Financing Authority
Costa Mesa Sanitary District
Cypress Recreation and Park District
Downey Cemetery District
El Toro Water District
Grossmont Healthcare District
Heber Public Utilities District
Inland Empire Regional Composting Authority
Inland Empire Utilities Agency
La Habra Heights County Water District
La Puente Valley County Water District
Laguna Beach County Water District
Lake Elsinore and San Jacinto
Joint Powers Authority
Las Virgenes Municipal Water District
Leucadia Wastewater District
Midway City Sanitary District
Monterey Peninsula Regional Park District
Olivenhain Municipal Water District
Orange County Development Authority -
Eco-Rapid Transit
Orange County Vector Control District
Orchard Dale Water District
Otay Water District
Padre Dam Municipal Water District
Pico Water District
Placentia Library District
Rancho California Water District
Rincon del Diablo Municipal Water District
Rowland Water District
Santa Ana Watershed Project Authority
South Coast Water District
South County Regional Wastewater Authority
Sunset Beach Sanitary District
Surfside Colony Stormwater
Drainage District
Surfside Community Services District
Vallecitos Water District
Valley Wide Recreation and Park District
Ventura Port District
Yorba Linda Water District
NONPROFIT CORPORTIONS AND JOINT POWER AUTHORITIES
Noted below is a partial listing of nonprofit corporations and joint power authorities audited by our
firm over the past year. Some of these entities are "component units" which are combined into the
basic financial statements of governmental organizations which exercise oversight responsibility.
American Family Housing
Anaheim District of the Churches
of the Nazarene
Cal State L,A. Metrolink Authority
California Transplant
Casa de las Campanas
Casa Romantica Cultural Center
Child Abuse Prevention Center
Palm Desert Recreational Facilities Corporation
Pomona -Walnut -Rowland Joint
Water Line Commission
Public Cable Television Authority
The RARE Project
Trinity Children's Foundation
Trinity Youth Services
United Cerebral Palsy Association
Valencia Heights Water Company
Westview Services, Inc.
21
25E-59
ENTITIES TO BE INCLUDED IN AUDIT
City of Santa Ana
Successor Agency to the Community Redevelopment Agency
Housing Authority of the City of Santa Anan
Santa Ana Financing Authority
BEPQBTS TO BE ISSUED AND
DUE DATES
Draft
Final
Due Dates
Due Dates
Independent Auditor's Report on the City's
Comprehensive Annual Financial Report
N/A
December 10
Management Letter
November 30
December 10
Audit Committee Letter
November 30
December 10
Report on Compliance with Article XIIIB Appropriation
Limit (GANN Limit Review)
November 30
December 10
Single Audit Reports: 2 weeks 60 days after
Before Completion of
Due Date the CAFR
+ Independent Auditors' Report on Internal Control
Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial
Statements Performed in Accordance With
Government Auditing Standards
s Independent Auditors' Report on Compliance for
Each Major Program and on Internal Control Over
Compliance Required by the Uniform Guidance
and on the Schedule of Expenditures of Federal
Awards.
Air Quality Improvement Fund - Annual Financial Report November 30 December 10
Review of the City's Investment Policy November 30 December 10
City's State Controller's Report N/A January 31
Housing Authority's Financial Data Schedules 60 days after
Completion of
N/A the CAFR
Agreed -Upon Procedures Reviews TBD TBD
N/A - Not Applicable
TBD - To be Determined
22
25E-60
Assuming that the City's books are closed and ready for examination and that all necessary schedules
and documents are available for our use by October 1st each year, the suggested time schedule for the
various phases of the audit would be approximately as follows:
Entrance conference with key City staff. Discussion of any
prior audit concerns and the performance of interim work.
Interim audit fieldwork and management review
Final audit fieldwork and management review
Exit conference to summarize the results of the fieldwork
and to review significant findings
Deliver draft copies of reports
Deliver final reports
Completed By
Late May
Late May/Early June
November 15
November 30
See page 22
See page 22
COMMITMENT TO DELIVER REPORTS ON A TIMELY BASIS
If all books and records, schedules and documents are made available to us by October 1't, we make a
commitment to have audit team members available and to provide all reports by the due dates
specified above.
AUDITS TO BE IN ACCORDANCE WITH GAAS AND OTHER REQUIREMENTS
We will audit the financial statements of the City and the component units noted on the preceding
page. The financial statements of all entities where the City exercises oversight will be combined with
the City's financial statements, in accordance with GASB requirements. Our audit will be in
accordance with auditing standards generally accepted in the United States of America as set forth by
the AICPA, and will include such auditing procedures as we consider necessary under the
circumstances. We will apply certain limited procedures, which consist principally of inquiries of
management regarding methods of measurement and presentation of required supplementary
information, However, we do not audit such information and do not express an opinion on it. Any
supplemental financial statements will be subjected to auditing procedures as we consider necessary
in relation to the financial statements taken as a whole. The scope of our audit will not include any
statistical information, and we will not express an opinion concerning it.
Our audits will conform with the guidelines set forth in the AICPA's Industry Audit Guide, Audits of
State and local Governmental Units. Also, each examination will comply with the standards for
financial and compliance audits contained in the Government Auditing Standards, issued by the
U.S. General Accounting Office, the provisions of the Single Audit Act and the provisions of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirementfor Federal Awards (Uniform Guidance).
25E-61 23
AUDITS TO BE IN ACCORDANCE WITH GARS AND OTHER REQUIREMENTS (CONTINUED
Also, we will perform an agreed -upon procedures review of the City's Gann Spending Limitation
Computation as required by Section 1.5 of Article XIIIB of the California Constitution. Our review will
be performed in conformance with the provision of the "League of California Cities Uniform
Guidelines
AUDIT APPROACH
• Our audit approach is tailored to meet the technical requirements while maintaining professional
skepticism without forgetting that we provide a service. The following aspects of our audit
approach will add additional value to the audit services and minimize the amount of time spent
by the City's staff in dealing with the audit.
• We will assign experienced staff auditors including the in -charge field auditor having at least
3 years of experience. For first year engagements, all other staff will have at least 1 year of
experience. You will not spend time training our auditors.
• Whenever possible, we will use same format for audit supporting schedules used in prior years for
the current year audit. This will reduce time spent by the City staff in dealing with the audit when
a different audit firm is chosen.
Throughout the year we are available as a resource to our clients in researching technical
questions, dealing with new pronouncements, reviewing complex financial entries and helping
with any other issues as they arise.
• The work papers will be reviewed by the manager or partner as field work is being completed to
minimize additional questions after the fieldwork is completed.
Our firm uses a governmental audit program which will be modified to the City of Santa Ana's
operations to accommodate specific client circumstances. Our audit programs are organized by the
financial statement approach and general procedures. The requirements by the Standards for
assessing risk are utilized to modify the audit programs to focus on the higher risk areas of the
financial statements.
1. Audit Planning Procedures:
• Pre -audit conference with the City to establish process of communication between the
audit team and City staff.
• Discuss any new accounting pronouncements to be implemented in the current year.
• Establish scope of work and timing of fieldwork.
24
25E-62
2. Interim Fieldwork:
Gather information about the City and its environment, including internal control:
Evaluate the design of Internal controls that are relevant to
whether the control, either individually or in combinatior
preventing or detecting and correcting material misstatements.
Determine that the controls have been implemented, that is,
that the City is using it.
Specific areas to review include:
- Accounts payable/cash disbursements
- Accounts receivable/cash receipts
- Payroll disbursements
- Utility billing process
- Investment compliance
Property and equipment
Review of minutes of the City of Santa Ana.
Review of important contracts and debt agreements,
the audit and determine
is capable of effecting,
that the controls exist and
Interim exit conference with the City to review results of interim fieldwork, including any
findings,
3. Final Audit Work:
During the final audit work, we will assess "risk" of material misstatement based on understanding
of the City's audit environment, including Its internal control, to identify account balances to audit
that appear in the City's financial statements. Our audit programs will be specifically tailored to
address any significant risks identified. The Prepared by Client (PBC) list will be provided at least
one month in advance of fieldwork. Our work may include:
• Confirmation of cash and investments balances and testing of bank reconciliations.
• Confirm significant receivable balances or review subsequent cash receipts to verify
receivable balance.
• Search for unrecorded liabilities.
• Testing of interfund balances and transfers.
• Test capital asset additions and depreciation expense.
• Confirm long-term debt balances and review the accounting treatment of debt issued or
refunded.
• Test support for other significant assets or liabilities.
• Analytical procedures on balance sheet and revenue and expenditure accounts; to evaluate
and explain unusual fluctuations from prior year balances or current year budgeted
amounts.
• Review of attorney letters for significant legal matters affecting the City's financial position.
• An exit conference will be held to review any significant adjustments or findings,
The audit workpapers will be reviewed by our management team as the work is being performed
in the field so that at the conclusion of the fieldwork we are able to report any adjustments or
findings.
25E-63 25
AUDIT APPROACH REDEVFI OPMENTAGENCYJSUCCESSORAGENCY
Recent legislation related to the dissolution of Redevelopment Agencies will impact our audit
approach as detailed below.
Our procedures will include:
• Audit the balances reported for cash, investments, receivables, payables, capital assets and
long term liabilities as of end of the year.
C Review the activity reported on ROPS.
• Review the activities of the Successor Agency to ensure compliance with AB 26, AB 1484 and
other relevant legislation enacted.
APPROACH TO INTERNAL CONTROL
Our audit will include obtaining an understanding of the entity and its environment, including internal
control, sufficient to assess the risks of material misstatement of the financial statements and to
design the nature, timing, and extent of further audit procedures. Our understanding of the internal
controls will be completed by completing narratives and checklists for various processes related to
internal control. Tests of controls may be performed to test the effectiveness of certain controls that
we consider relevant to preventing and detecting errors and fraud that are material to the financial
statements and to preventing and detecting misstatements resulting from illegal acts and other
noncompliance matters that have a direct and material effect on the financial statements. Our tests,
if performed, will be less in scope than would be necessary to render an opinion on internal control
and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to
Government Auditing Standards.
As required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance), we will
perform tests of controls over compliance to evaluate the effectiveness of the design and operation
of controls that we consider relevant to preventing or detecting material noncompliance with
compliance requirements applicable to each major federal award program. However, our tests will be
less in scope than would be necessary to render an opinion on those controls and, accordingly, no
opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance.
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies. However, during the audit, we will communicate to management and those charged
with governance internal control related matters that are required to be communicated under AICPA
professional standards, Government Auditing Standards, and the Uniform Guidance.
26
25E-64
SINGLE AUDIT APPROACH
The single audit will be performed in accordance with all the requirements of the Single Audit Act, the
Uniform Guidance and Government Auditing Standards Issued by the GAO (the "Yellow Book") for
cities that expend greater than $750,000 in federal awards in fiscal year 2015-2016 and subsequent
years,
• We will identify the Major and Nonmajor Federal Programs of the City through the risk -based
approach required by the Uniform Guidance. This approach includes consideration of current
and prior audit experience, oversight by Federal agencies and pass -through entities, and the
inherent risk of the federal program.
• We will review all federal and industry -specific publications and guidance and inform the City
of any recent changes,
• We will perform tests of controls to evaluate the effectiveness of the design and operation of
controls that we consider relevant to preventing or detecting material noncompliance with
applicable compliance requirements. If weaknesses in the Internal controls are noted, we will
modify our audit program as needed.
• Our audit will Include tests of transactions related to major federal award programs for
compliance with applicable compliance requirements and certain provisions of laws,
regulations, contracts and grant agreements.
• Our procedures will consist of the applicable procedures described in the Uniform Guidance
for the types of compliance requirements that could have a direct and material effect on each
of the City's major programs. The purpose of those procedures will be to express an opinion
on the City's compliance with requirements applicable to major programs in our report on
compliance issued pursuant to the Uniform Guidance.
• We will assist the City in completing and filing the Data Collection Form,
DETERMINING LAWS AND REGIFLATIONS S IRiECT TO AUDIT
Under provisions of AICPA Auditing Standards, management of the City is responsible for identifying
to its outside auditors any laws and regulations which would have a significant effect on the audit.
This would include federal laws (such as federal grant regulations), State laws (such as permitted
investments under the California Government Code) and local laws (such as restrictions on special
revenues levied by the City). After our selection as auditors, we will consult with City officials
regarding these matters, to determine what laws and regulations need to be evaluated in connection
with our audit. If a City is not able to Identify specific laws and regulations that effect it, we have
references (California Government Code and Health and Safety Code) to the more common laws, rules
and regulations in our standard audit programs for the usual activities of a California City or Successor
Agency to the Redevelopment Agency which will assist us in identifying laws and regulations to review
in the audit.
METHOD OE SAMPLING
Our approach is to utilize random sampling based in our testing of the internal control systems related
to cash receipts, cash disbursements, payroll and utility billings. Based on a statistical conclusion used
by the firm our sample sizes can range from 25 to 60 transactions for each system. A random sample
selection allows each item in the population of an equal chance of being selected. In addition, for
disbursements, we may select a stratified sample of all transactions over a specified dollar amount for
review.
25E-65 27
ANALYTICAL PROCEDURES
Analytical procedures are used in the planning and final stages of the audit. In the planning phase, we
use analytical procedures to identify unusual financial transactions and comparing relationships to
expected results. We compare current year information to the prior years for balance sheet items,
revenues and expenditures. In addition, revenues and expenditures are compared to budgets to
identify unexpected results. In the final stages of the audit, the financial statements are reviewed to
identify expected relationships such as comparing debt paid to expenditures recorded on
governmental funds, transfers between funds, depreciation expense, etc. For all significant
relationships identified, explanations are obtained as to why the situation occurred and additional
audit procedures are applied to resolve any concerns.
MANAGEMENT LETTEM
In connection with each audit, a complete review of internal controls will be made of all significant
accounting procedures. Our firm uses an internal control questionnaire, computer systems
questionnaire and narration to gain an understanding of the internal control process as part of our
audit. We will identify weaknesses and after discussion with the appropriate City staff, we will submit
a management letter which will identify weaknesses observed during these reviews and throughout
the audit. The management letter will also assess the effect of the management letter comments on
the financial reporting process and recommend steps towards eliminating the weaknesses.
.I, ►
We do not anticipate any significant potential audit problems. If any potential audit problems are
identified, we will Immediately discuss them with the City's management. Our approach is to
coordinate the resolution of any problems with the City's management. Considering our experience
with auditing governmental entities and resources, we expect minimal disruption to the City's
management in resolving any identified audit problems.
IN 1911111111311110.1 1 l.' : M, ..:.. ...
In accordance with provisions of the Uniform Guidance, GAO requirements, and the California Board
of Accountancy, our audit workpapers will be maintained for at least seven years after the date of the
report. These workpapers will be made available as necessary to your cognizant audit agency (or its
designee), to GAO representatives, or to any other federal or state agency needing access to the
workpapers. Also, our firm will respond to any reasonable inquiries of successor auditors and we will
allow any successor auditors to review our workpapers.
We will be available for any other professional assistance you require to research and answer
accounting and reporting problems raised by the City, regardless of the time of year. Such assistance
may include, but is not limited to, tax questions, the review of bond documents, cost allocation
programs and employee benefit programs. We have provided several tax opinions to City audit clients
for matters relating to deferred compensation, fringe benefits, stipends and allowances, and other
issues. We also will keep the City informed of new developments affecting municipal finance and
reporting, changes in grant rules and regulations, etc.
11;3.irCH�J�l1��LCI�F� `LI�rL��T.T�Lr71iK�
We will make an immediate, written report of all irregularities, illegal acts or indications of illegal acts
of which we become aware, to those charged with governance.
28
25E-66
SEGMENTATION OF
Description of Services
1H]E AUDIT
Partners
HOURS,
Managers
BY PARTNER AND STAFF
Supervisory
Staff Staff
LEVEL
Clerical
Total
- City audit, Including management
and audit committee letters
40
80
240
440
-
800
Single Audit of Federal Grants
8
32
80
180
2
302
AQMD audit of the Air Quality
Improvement Fund
1
4
-
24
-
29
GANN Limit Review
1
8
9
Compliance Review of the
City's Investment Policy
2
12
-
15
-
30
Preparation of the Santa Ana
Housing Authority's
Financial Data Schedule
2
4
-
6
Preparation of the City's
State Controller's Report
.. -
8
-
40
48
Total Hours
53
141
320
708
2
1,224
Two Agreed -Upon Procedures
Reviews, Annually (1)
8
18
44
64
4
138
(1) The hours for the agreed -upon procedures are estimated and
subject to negotiation, once the
scope of each
agreed.
upon procedures are determined.
SEGMENTATION OF THE AUDIT HOURS
BY PHASES
OF THE AUDIT
Supervisory
Partners
Managers
Staff
Staff
Clerical
Total
Planning
8
16
24
40
-
88
Interim Fieldwork
16
32
72
120
-
240
Final Fieldwork and Review
29
93
224
548
2
896
Total Hours
53
141
320
708
2
1,224
25E-67 29
DISCUSSION OF RELEVANT ACCOUNTING ISSUES
GASB STATEMENT NO. 72
GASB Statement No. 72, "Fair Value Measurement and Application", is effective for periods beginning
after June 15, 2015. This Statement addresses accounting and financial reporting issues related to fair
value measurement. The definition of fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement
date. This Statement provides guidance for determining a fair value measurement for financial
reporting purposes. This Statement also provides guidance for applying fair value to certain
investments and disclosures related to all fair value measurements.
GASB STATEMENT NO. 73
GASB Statement No. 73, 'Accounting and Financial Reporting for Pensions and Related Assets That Are
Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB
Statements 67 and 68", is effective for periods beginning after June 15, 2015 - except for those
provisions that address employers and governmental nonemployer contributing entities for pensions
that are not within the scope of Statement 68, which are effective for periods beginning after
June 15, 2016. The requirements of this Statement extend the approach to accounting and financial
reporting established in Statement 68 to all pensions, with modifications as necessary to reflect that
for accounting and financial reporting purposes, any assets accumulated for pensions that are
provided through pension plans that are not administered through trusts that meet the criteria
specified in Statement 68 should not be considered pension plan assets. It also requires that
information similar to that required by Statement 68 be included in notes to financial statements and
required supplementary information by all similarly situated employers.
oww��Mai���
GASB Statement No. 74, "Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans", is effective for periods beginning after June 15, 2016. The objective of this Statement is to
improve the usefulness of information about postemployment benefits other than pensions (other
postemployment benefits or OPEB) included in the general purpose external financial reports of state
and local governmental OPEB plans for making decisions and assessing accountability. This Statement
also includes requirements to address financial reporting for assets accumulated for purposes of
providing defined benefit OPEB through OPEB plans that are not administered through trusts that
meet the specified criteria.
GASB Statement No. 75, 'Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions", is effective for periods beginning after June 15, 2017. The scope of this Statement
addresses accounting and financial reporting for postemployment benefits other than pension (other
postemployment benefits or OPEB) that is provided to the employees of state and local governmental
employers. This Statement establishes standards for recognizing and measuring liabilities, deferred
outflows of resources, deferred inflows of resources, and expense/expenditures for defined benefit
and defined contribution plans.
30
25E-68
GASB STATEMENT NO 76
GASB Statement No. 76, "The Hierarchy of Generally Accepted Accounting Principles for State and
Local Governments", is effective for periods beginning after June 15, 2015. The requirements of this
Statement improve financial reporting by (1) raising the category of GASB Implementation Guides in
the GAAP hierarchy, (2) emphasizing the importance of analogies to authoritative literature when the
accounting treatment for an event is not specified in authoritative GAAP; (3) requiring the
consideration of consistency with the GASB Concepts Statements when evaluating accounting
treatments specified in nonauthoritative literature.
GASB STATEMENT N0. 77
GASB Statement No. 77, "Tax Abatement Disclosures", is effective for periods beginning after
December 15, 2015. This Statement requires governments that enter into tax abatement agreements
to disclose the following information:
Brief descriptive information, such as the tax being abated, the authority under which tax
abatements are provided, eligibility criteria, the mechanism by which taxes are abated,
provisions for recapturing abated taxes, and the types of commitments made by tax
abatement recipients.
The gross dollar amount of taxes abated during the period.
Commitments made by a government, other than to abate taxes, as part of a tax abatement
agreement.
Governments should organize those disclosures by major tax abatement program and may disclose
information for individual tax abatement agreements within those programs.
GASB STATEMENT NO. 78
GASB Statement No. 78, "Pensions Provided Through Certain Multiple -Employer Defined Benefit
Pension Plans", is effective for periods beginning after December 15, 2015. This Statement amends
the scope and applicability of Statement 68 to exclude pensions provided to employees of state or
local governmental employers through a cost -sharing multiple -employer defined benefit plan that
(1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions
both to employees of state or local governmental employers and to employees of employers that are
not state or local governmental employers, and (3) has no predominant state or local governmental
employer (either individually or collectively with other state or local governmental employers that
provide pensions through the pension plan), This Statement establishes requirements for recognition
and measurement of pension expense, expenditures, and liabilities; note disclosures; and required
supplementary information for pensions that have the characteristics described above.
GASB STATEMENT NO, 79
GASB Statement No. 79, "Certain External Investment Pools and Pool Participants", is effective for
periods beginning after June 1.5, 2015, except for certain provisions on portfolio quality, custodial
credit risk, and shadow pricing, those provisions are effective for reporting periods beginning after
December 15, 2015. This Statement addresses accounting and financial reporting for certain external
investment pools and pool participants. It establishes criteria for an external investment pool to
qualify for making the election to measure all of Its investments at amortized cost for financial
reporting purposes, An external investment pool qualifies for that reporting if it meets certain
applicable criteria established in this Statement, It establishes additional note disclosure
requirements for qualifying external investment pools that measure all of their investment at
amortized cost for financial reporting purposes and for government that participate in those pools.
31
25E-69
Our fixed annual fees contemplate that conditions satisfactory to the normal progress and completion
of the examination will be encountered and that City accounting personnel will furnish the
agreed -upon assistance in connection with the audit. However, if unusual circumstances are
encountered which make it necessary for us to do additional work, we shall report such conditions to
the responsible City officials and provide the City with an estimate of the additional accounting fees
involved.
Noted below is a listing of work required by City staff to assist in the audit.
1. Technical assistance in familiarizing our staff with;
• The flow of information through the various departments and accounting systems.
• Reports generated by your accounting system.
• The system of internal controls.
• Controls established to monitor compliance with federal grants.
2. Preparation of trial balances for all funds, after posting of all year end journal entries.
3. Preparation of schedules supporting all major balance sheet accounts, and selected revenue and
expenditure accounts,
4. Typing of all confirmation requests.
5. Pulling and refiling of all supporting documents required for audit verification.
6. Preparation of the CAFR and footnotes, including the introductory section, management's
discussion and analysis and the statistical section for the CAFR.
32
25E-70
CONSULTING SERVICES DEPARTMENT
pVERVIEW OF SERVICES PROVIDED
White Nelson Diehl Evans LLP offers a wide range of consulting services to governmental agencies.
This section of our proposal summarizes the primary types of services provided by the firm.
The firm's Director of Consulting Services is Mr. William S. Morgan, CPA. Mr. Morgan has over thirty
years of experience in providing accounting, auditing and consulting services to California cities,
counties, successor agencies/redevelopment agencies, water districts, special districts, joint power
authorities and nonprofit corporations. Many of the firm's consulting projects are planned, supervised
and reviewed by Mr. Morgan.
Our firm provides the following types of services;
• Governmental Tax Consulting
• Performance and Operational Studies
• Redevelopment Consulting Services
• Reviews of City Treasurer Operations
• Cable Television and Broadband Consulting Services
• Reviews of Solid Waste Haulers and
Assistance With Trash Rate Negotiations
• Litigation Support and Dispute Resolution Services
• Fraud Investigations
• Hotel/Motel Transient Occupancy Tax Reviews
• Business License Operation Reviews
With regard to these engagements, we would intend to perform limited procedures reviews in
connection with each assignment, in accordance with the AICPA's attestation standards. Under the
provisions of the attestation standards, the City would designate what specific procedures it wishes to
have performed. We would then perform those procedures and report on our findings. This type of
engagement would not constitute a certified audit in accordance with auditing standards generally
accepted in the United States of America. Such special services are not part of our standard fee
arrangements and would be subject to a separate fee quotation.
25E-71 33
ATTACHMENT I
CURRENT CITY CLIENT REFERENCES
AND
LISTS OF CITY AND SPECIAL DISTRICT ENGAGEMENTS
PERFORMED IN THE LAST 5 YEARS
25E-72
ENT CITY CLIENT REFERENCES
One means cf Judging the high quality of our auditing and accounting services would be contact with some of our existing clients. We
are Including the names and phone numbers of our city clients over the past year. We encourage you to contact any of these Individuals.
City of Alhambra
City of Gllrov
City of Palm Desert
Mr. Paul Espinoza
Ms. Christina Turner
Mr. Paul Gibson
Finance Director
Finance Director
Director of Finance
(626)S70-5027
(408)846-0750
(760)346-0611
City of Artesia
City of Goleta
City of Pico Rivera
Ms. Justine Menzel
Ms. Genie Wilson
Mr.Kambiz Borhanl
Deputy City Manager
Finance Director
Senior Finance Manager
(562)865-6249
(805)961-7527
(562)801-4895
City of Bellflower
Cityof Hawaiian Gardens
City of Rancho Santa Margarita
Mr. Tae Pines
Ms,Linda Holllnsworth
Ms. Stefanie Turner
Director of finance
Finance Director/Treasurer
Finance Director
(562) 904.1424
(562) 420.2641 x236
(949) 635-1812
City of Beverly Hills
City of Hesperia
City of Rialto
Mr. Don Rhoads
Mr, Brian Johnson
Mr. George Harris, II
Finance Director
Director of Administrative Services
Director of Administrative
(310) 285.2429
(760) 947-1442
and Community Services
(909)421-7219
City of Burbank
City of Highland
City of San Buenaventura
Mr. Dino Balos
Mr. Chuck Dantuono
Ms. Bridgette Mclnally
Accounting Manager
Director of Administrative Services
Accounting Manager
(818)238-5518
(909)864-6861
(505)654.7892
City fCamarillo
City of Laguna Hills
Q of San Gabriel
Mr. Ronnie Campbell
Ms. Janice Mateo -Reyes
Mr. Thomas Marston
Finance Director
Finance Manager
Director of Finance
(805)388.5320
(949)707-2623
(626)308-2812
City of Campbell
City of Laguna Woods
City of Sanger
Mr. Jesse Takahashi
Ms. Margaret Cady
Ms. Patty Hartman
Finance Director
Administrative Services/
Interim Finance Director
(408) 866-2113
City Treasurer
(559) 876-6300
(949)639-0500
City of Colton
City of Stanton
Ms, Anita Agramonte
City of Lake Forest
Mr. Stephen Parker
Finance Director
Mr. Keith Neves
Director of Administrative Services
(909) 370-5039
Director of Finance
(714) 890-4226
(949)461-3400
City of Costa Mesa
City of Tustin
Ms. Colleen O'Donoghue
City of Lancaster
Ms. Jenny Lelsz
Assistant Finance Director
Ms. Pamela Statsmann
Finance Manager
(714)754-5421
Assistant Finance Director
(714) 573-3079
(661)723,6038
2iK (Cypress
City of West Covina
Mr. Matt Burton
City of Newport Beach
Ms. Chrlsta Buhagiar
Director of Finance & Administrative Services
Mr. Dan Matusiewicz
Finance Director
(714) 229-6718
Director of Finance
(626) 939-8463
(949)644-3126
City of Del Mar
City of West Hollywood
Ms, Teresa McBroome
City of Norco
Ms. Lorena QuiJano
Director of Finance/Treasurer
Ms. Olivia Hoyt
Accounting Services Manager
(858) 755.9354
Accounting Manager
(323) 848-6513
(951)270-5652
City of Fountain Valley
CiC�of Westminster
Mr. David Cain
City of Norwalk
Ms. Sherry Johnson
Finance Director/Treasurer
Ms. Jane Stuard
Accounting Manager
(714) 593-4501
Director of Finance
(714) 898-3311
(562)929-5056
25E-73
LOST OF CITY ENGAGEMENTS
We have listed below the cities which were under contract with us during the past five fiscal years
Period of Service
City
From
To
Scope of Work
Alhambra
2005
Present
CA, RDA, SA, SCR
Artesia
2012
Present
CA, RDA, SA
Avalon
2006
2012
CA, RDA, CCU, SCR
Bellflower
2013
Present
CA, SA, SCR, Financing Authority, Public Facilities Corp.
Beverly Hills
2012
Present
CA, SA
Burbank
2013
Present
CA, AQMD, SA, Water & Utility Enterprise Fund
Camarillo
2012
Present
CA, RDA, SA
Campbell
2013
Present
CA, SA, T, Solid Waste Management Authority
Colton
2014
Present
CA, SA, SCR, Child Care Program
Costa Mesa
2012
Present
CA, RDA, PFA, SA, Housing Authority
Cypress
2012
Present
CA, RDA, RA, SA
Del Mar
2014
Present
CA, SA, SCR
Downey
1987
2013
CA, RDA, AQMD, PFA, SA, OCU
Fountain Valley
2013
Present
CA, SA, Housing Authority, Financing Authority
Gilroy
2013
Present
CA, SA
Goleta
2013
Present
CA, SA, SCR, SR
Hawaiian Gardens
2012
Present
CA, RDA, PFA, SA
Hesperia
1997
Present
CA, RDA, SA
Highland
2012
Present
CA, SA
La Habra Heights
2008
2013
CA, SA, SCR
Laguna Hllis
2015
Present
CA, SA, SCR. SR
Laguna Woods
2015
Present
CA, SA
Lake Elsinore
2005
2012
CA, RDA, PFA, RA, SA
Lake Forest
2011
Present
CA, RDA, SA, Housing Authority
Lakewood
1974
2013
CA, RDA, SA
Lancaster
2013
Present
CA, SA, SCR - City, SCR - Power Authority
Newport Beach
2011
Present
CA, SA
Norco
2015
Present
CA, SA, SCR
Norwalk
2015
Present
CA, AQMD, PFA, SA, T, OCU, SCR - City & Transit
Oxnard
2013
2014
CA, SA, OCU
Palm Desert
2008
Present
CA, RDA, SA, Housing Authority
Pico Rivera
2012
Present
CA, PFA, SA, SCR, Water Authority
Port Hueneme
2012
2014
CA, SA, Housing Authority, Surplus Property Authority
Rancho Palos Verdes
2008
2012
CA, RDA, PI, SA, SCR, SR
Rancho Santa Margarita
2012
Present
CA, SA
Rialto
2013
Present
CA, SA
San Buenaventura
2011
Present
CA, RDA, PFA, SA, SCR
San Fernando
2007
2011
CA, RDA, SA
San Gabriel
2013
Present
CA, SA
Sanger
2011
Present
CA, RDA, PFA, SA, SCR
Signal Hill
1962
2013
CA, RDA, SA
Stanton
2012
Present
CA, RDA, SA
Tustin
2011
Present
CA, RDA, SA, SCR
West Covina
2011
Present
CA, RDA, AQMD, SA
West Hollywood
2014
Present
CA, SA, SCR
Westminster
1997
Present
CA, RDA, AQMD, SA
Legend:
AQMD -Air Quality Management District Audit RA- Recreation Authority
CA - City Audit RDA - Former Redevelopment Agency Audit
OCU- OtherComponentUnitAudits SA - Single Audit
PFA-Public Financing Authority SCR - State Controllers' Reports
PI - Public Improvement SR - Street Report
PP- Pension Plans T- Transportatlon
Substantially all of the above engagements were performed through the firm's Irvine office.
25E-74
LIST OF SPECIAL DISTRICT ENGAGEMENT
We have listed below the special districts which were under contract with us during the past five fiscal years,
Client Name
Borrego Water District
Calleguas Municipal Water District
Chino Basin Desalter Authority
China Basin Regional Financing Authority
Costa Mesa Sanitary District
Cypress Recreation and Park District
Downey Cemetery District
El Toro Water District
Encina Wastewater Authoirty
Grossmont Healthcare District
Heber Public Utilities District
Inland Empire Regional Composting Authority
Inland Empire Utilities Agency
La Habra Heights County Water District
La Puente Valley County Water District
Laguna Beach County Water District
Lake Elsinore and San Jacinto Joint Powers Authority
Las Virgenes Municipal Water District
Leucadla Wastewater District
Metro Wastewaster Joint Powers Authority
Midway City Sanitary District
Monterey Peninsula Regional Park District
Municipal Water District of Orange County
011venhain Municipal Water District
Orange County Development Authority - Eco-Rapid Transit
Orange County Vector Control District
Orchard Dale Water District
Otay Water District
Padre Dam Municipal Water District
Pico Water District
Placentia Library District
Puente Basin Water Agency
Rancho California Water District
Rancho Santa Fe Community Service District
Rincon del Diablo Municipal Water District
Rowland Water District
Santa Ana Watershed Project Authority
South Bay Irrigation District
South Coast Water District
South County Regional Wastewater Authority
Sunset Beach Sanitary District
Surfslde Colony Stormwater Drainage District
Surfslde Community services District
Sweetwater Authority
Vallecitos Water District
Valley Wide Recreation and Park District
Ventura Port District
Period of Service
From To
2006 2013
2015 Present
2011 Present
2015 Present
2005 2014
2012 Present
1987 2013
2008 2013
2012 Present
2011 Present
2014 Present
2011 Present
2011 Present
2002 Present
1986 Present
2002 Present
2013 Present
2007 2013
2010 Present
2013 Present
2012 Present
2015 Present
2007 2011
2009 Present
2015 Present
2013 Present
2012 Present
2009 2013
2009 Present
2010 Present
2015 Present
2005 2011
2012 Present
2011 Present
2015 Present
2007 Present
2013 Present
2012 Present
2011 2014
2013 Present
1986 Present
2010 Present
2010 Present
2012 Present
2010 2014
1986 Present
2011 Present
25E-75
ATTACHMENT II
RESULTS OF OUTSIDE QUALITY REVIEW
25E-76
Heidenreich & Heidenreich, CPAs, PL7LC
10201 S.5V Street, Suite 4170
Phoenix, A7 85044
(480)704-6301 fax 785-4619
System Review Report
July 22, 2015
To the Owners of
White Nelson Diehl Evans LLP
and the Peer Review Committee of the CA Society of CPAs
We have reviewed the system of quality control for the accounting and auditing practice of White
Nelson Diehl Evans LLP (the firm) in effect for the year ended March 31, 2015. Our peer review was
conducted in accordance with the Standards for Performing and Reporting on Peer Reviews
established by the Peer Review Board of the American Institute of Certified Public Accountants.. -As a
part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the
nature and extent of our procedures. The firm is responsible for designing a system of quality control
and complying with it to provide the firm with reasonable assurance of performing and reporting in
conformity with applicable professional standards in all materiel respects„ Our responsibility is to
express an opinion on the design of the system of quality control and the firm's compliance therewith
based on our review, The nature, objectives, scope, limitations of, and the procedures performed in a
System Review are described in the standards at www.aicpa.orgiprsummary.
As required by the standards, engagements selected for review included engagements performed
under the GovGmment Auditing Standards and audits of employee benefit plans.
In our opinion, the system of quality control for the accounting and auditing practice of White Nelson
Diehl Evans LLP in effect.for the year ended March 31, 2015, has been suitably designed and
complied with to provide the firm with reasonable assurance of performing and reporting in conformity
with applicable professional standards in all material respects. Firms can receive a rating of pass,
pass with deficlency(ies) or fall. White Nelson Diehl Evans LLP has received a peer review rating of
pass.
Heidenreich & Heidenreich, CPAs, PLLC
25E-77
ATTACHMENT III
DOCUMENTS REQUESTED IN REQUEST FOR PROPOSAL
25E-78
a
EXHIBIT B
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES
REFERENCES
List and describe fully the contracts performed by your firm which demonstrate your ability to provide
the supplies, equipment or services Included In the scope of the proposal specifications. Attach
additional pages if required. The City reserves the right to contact each of the references listed for
additional information regarding your firm's qualifloations.
Reference
Customer Name: City ofBurbank Contact Individual: Mr. Dino Balos
Address: 275 East Olive Avenue Phone Number: 818-238-6618
Burbank, CA 91510 Facsimile Number:
Contract Amount: $116,485 Year: 2016
Description of supplies, equipment, or services provided:
City, AQMD, Water and Utility Enterprise Fund and Single Audits
Reference
Customer Name: City of klalto
Address: 150 South Palm Avenue
Rialto, CA 92376
ContractAmount: $90,366
Description of supplies, equipment, or services provided:
City and SInl9le Audits
Reforen -a
Customer Name: City of Palm Desert
Address: 73.610 Fred Waring Drulve
Palm Desert, CA 92260
ContractAmount: $92.676
Contact Individual: Mr. George Harris, 11
Phone Number: 909-421-7219
Facsimile Number:
Year: 2016
Contact Individual: Mr. Paul Gibson
Phone Number: _760-346-0611
Facsimile Number; 760-340-0574
Year: 2016
Description of supplies, equipment, or services provided:
City, Successor Agency, Recreation Authority, Housing Authority and Single Audits TOT Reviews
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE.
19
25E-79
EX14IBIT C
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES
PROPOSER'S STATEMENT
Proposer understands and agrees that this written RFP (or any part thereof specifically designated and
accepted by the City of Santa Ana, hereinafter City) shall constitute the entire agreement between.
proposer and the City only after it has been accepted by the City Council, endorsed by the Clerk of the
Council with her signature and official seal noting hereon the action of approval of the Council, signed by
the Executive Director or his duly authorized agent, and signed by the City Attorney, denoting his approval
of the form of this document, and its execution, and when it or an exact copy of it has been either delivered
to proposer or deposited with the United States Postal Service properly addressed to the proposer with the
correct postage affixed thereto.
Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will
furnish City all required bonds and certificate of liability insurance within ten (10) days (excluding
Saturdays, Sundays and City's legal holidays), or the funds, check, draft, or proposer's bond substituted in
lieu thereof accompanying this proposal shall become the property of the City and shall be considered as
payment of damages due to the delay and other causes suffered by City because of the failure to furnish
the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by City
Is difficult to ascertain; otherwise said funds, check drafts, or proposer's bond substituted In lieu thereof
shall be returned to the undersigned.
Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth
in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under
the contract will be based upon the actual quantities of work satisfactorily completed.
All terms contained in the specifications, the certification of nondiscrimination by contractors, and the
required insurance certificates are to be incorporated by reference into this agreement and are made
specifically as part of this RFP.
White Nelson Diehl Evans LLP
Signed and Printed Name: lV-' — � (� Ci Nitin P. Patel, CPA
Title
Date March 4, 2016
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE..
20
25E-80
EXHIBIT D
CITY OF SANTA ANA
REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITING SERVICES
NONCOLLUSION AFFIDAVIT
NON-COLLUSfON AFFIDAVIT'
(Title 23 United States Code Section 112 and
Public Contract Code Section 7106)
To the CITY OF SANTA ANA
In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the
proposer declares that the proposal is not made in the interest of, or on behalf of, any undisclosed
person, partnership, company, associatlon, organization, or corporation; that the proposal Is genuine
and not collusive or sham; that the proposer has not directly or indirectly induced or solicited any other
proposer to put in a false or sham proposal, and has not directly or indirectly colludod, conspired,
connived or agreed with any proposer or anyone else to put In a sham proposal, or that anyone shall
refrain from bidding; that the proposer has not in any manner, directly or indirectly, sought by
agreement, communication, or conference with anyone to fix the proposal price of the proposer or any
proposer, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other
proposer, or to secure any advantage against the public body awarding the contract of anyone
interested in the proposed contract; that all statements contained In the proposal are true; and, further,
that the proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown
thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not
pay, any too to any corporation, partnership, company association, organization, bid depositary, or to
any member or agent thereof to effectuate'a collusive or sham proposal.
Note: The above noncoliusion affidavit Is part of the proposal. Signing this proposal on the signature
portion thereof shalf also constitute signature of this noncollusion affidavit. Proposers are cautioned
that making a false certification may subject the certifier to criminal prosecution.
State of California, County of
Subscribed and sworn to (or affirmed) before me on this _ day of_ March 2016 by
Nitin P. Patel , proved to me on the basis of satisfactory evidence to be the person(s)
who appeared before me,
*pu6lic
Signature
BRANOI MELENDE2
Commission # 2034882
•. Notary Publla • California
Orange County
M Gomm. Winds Jul27 2011
Notary Public Seal
THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL.
PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE,
21
25E-81
EXHIBIT C
SEALED COST PROPOSAL O.
.Vj
FOR THE TWO YEARS ENDING
JUNE 30, 2017
(WITH AN OPTION FOR TWO YEARS
ENDING JUNE 30, 2019)
Submitted by:
2875 Michelle Drive, Suite 300
Irvine, CA 92606
(714) 978-1300
25E-82
March 4, 2016
Mr, Sergio Vidal, Assistant Director of
Finance and Management Services Agency
City of Santa Ana
2.0 Civic Center Plaza
Santa Ana, CA 92701
Dear Ms. Vidal;
At your request, we have submitted our statement of qualifications under a separate cover.
The following information is included herein;
1. Schedule of Professional Fees and Expenses for the four years ending June 30, 2019,
2. Hourly Rates for Special Services.
By signing below, I am certifying to you that I am entitled to represent the firm, empowered
to submit this bid, and authorized to sign a contract with the City. Please contact us if
there are any questions regarding the fees or hourly rates quoted herein.
Very truly yours,
WHITE NELSON DIEHL EVANS LLP
�... (0 four-t-..
Nitin P. Patel, CPA
Engagement Partner
1
28-' 1%1Ichellc DuV c_ tinily 300, [rinr, C�92606 cl" Id R'8,13t7(I • I as 1 i 9'fi_
( )(%e 9..zalyd n, lh a ne ruxl Sen 15 'Pl C.OR, =lie,
25E-83
CITY OF SANTA ANA
TOTALALL-INCLUSIVE MAXIMUM PRICE
Our maximum fees for the four years ending June 30, 2019 will be as follows:
Description of Services
City audit, Including management
and audit committee letters
Single Audit of Federal Grants
AQMD audit of the Air Quality Improvement Fund
GANN Limit Review
Compliance Review of the city's Investment Policy
Preparation of the Santa Ana Housing Authority's
Fiscal Year
Option Years
2015-16 2016-17 2017-18 2018-19
$ 107,000 $ 110,210 $ 113,515 $ 116,920
38,720 39,880
3,475 3,580
895 920
4,550 4,685
41,075 42,305
3,G90 3,800
950 980
4,825 4,970
Financial Data Schedule 1,350 1,390 1,430 1,475
Preparation of the City's State Controller's Report 5,600 5,770 5,945 6,120
Total All -Inclusive Maximum Price $ 16I,590 $ 166,435 $ 171,430 $ 176,570
Two Agreed -Upon Procedures Reviews, Annually (1) $ 19,040 $ 19,610 $ 20,200 $ 20,805
(1) The hours and fees for the agreed -upon procedures are estimated and subject to negotiation,
once the scope of each agreed -upon procedures are determined.
2
25E-84
i
I
CITY OF SANTA ANA
4fOURLY RATES FOR ADDITIDNAL PROFESSIONAL SERVICES
If the City wishes us to perform consulting or other services outside the scope of the services
described herein, a separate written request from the City will be required. Our hourly rates
for these services during each year under the basic contract will be as follows:
Position
Partners
Managers
Supervisory Staff
Staff
Clerical
Option Years
2015-16
2016-17
_
2017-18 2018.19
$ 275
$ 283
$ 292 $ 300
200
205
212 219
150
155
159 164
100
103
106 109
60
62
64 66
25E-85
vvFii t ra his'r ae4ra r 9iwt ii_ r vrttanra.r '.
25E-86