HomeMy WebLinkAboutFin Auditing Services 2022AGREEMENT FOR PROFESSIONAL SERVICES WITH
MAZE AND ASSOCIATES TO PROVIDE PROFESSIONAL AUDITING
SERVICES TO THE CITY OF SAN RAFAEL
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This Agreement is made and entered into this � day off,. 2022, by and between
the CITY OF SAN RAFAEL (hereinafter "CITY"), and MALI, AND .'ISSOCIATES
ACCOUNTING CORPORATION (hereinafter "CONSULTANT").
RECITALS
WHEREAS, the CITY has determined the need for professional auditing services; and
WHEREAS, the CONSULTANT has agreed to render such services.
AGREEMENT
NOW, THEREFORE:, the parties hereby agree as follows:
PROJECT COORDINATION.
A. CITY. The City Manager shall be the representative of the CITY for all
purposes under this Agreement. The Administrative Services Director, Nadine Atieh I Iade, is hereby
designated the PROJECT MANAGER for the CITY, and said PROJECT MANAGER shall
supervise all aspects of the progress and execution of this Agreement.
B. CONSULTANT'S Project Director. CONSULTANT shall assign a single
PROJECT DIRECTOR to have overall responsibility for the progress and execution of this
Agreement for CONSULTANT. Amy Meyer, Audit Partner, is hereby designated as the PROJECT
DIRECTOR for CONSULTANT. Should circumstances or conditions subsequent to the execution
of this Agreement require a substitute PROJECT DIRECTOR for any reason, the CONSULTANT
shall notify the CITY within ten (10) business days of the substitution.
2. DUTIES OF CONSULTANT.
CONSULTANT shall perform the duties and/ or provide services as described in
the Request for Proposal for Audit Services (attached Exhibit A) and pursuant to the
CONSULTANT'S Proposal dated December 31, 2021 (attached Exhibit 13) and incorporated
herein.
DUTIES OF CITY.
CITY shall cooperate with CONSULTANT in their performance under this agreement and
shall compensate CONSULTANT as provided herein.
4. COMPENSATION.
For the full performance of the services described herein by CONSULTANT, CITY
shall pay CONSULTANT pursuant to the Schedule of Fees and Expenses reflected in the
CONSULTANT'S Proposal (attached Exhibit I3), dated December 21, 2021.
The total compensation payable to CONSULTANT hereunder shall not exceed the following
amounts.
FY 21-22 I FY 22-23 I FY 23-24 I FY 24-25 FY 25-26 FY 26-27
Total Cost 1 $77,706 1 $80,035 $82,437 $84,911 , $87.458 1-$9--0',082
Payment will be made monthly upon receipt by PROJE'CT MANAGF,R of itemized
invoices submitted by CONSULTANT.
TEIW OF AGREEMENT.
The term of this Agreement shall be for four consecutive years for auditing fiscal
years ending June 30, 2022 through June 30, 2025. Upon mutual agreement of the parties, and
subject to the approval of the City Council, the term of this Agreement shall be extended for an
additional period of two years for auditing fiscal years ending June 30, 2026 and June 30, 2027.
TERMINATION.
A. Discretionary. F,ither party may tenninate this Agreement without cause upon thirty
(30) days written notice mailed or personally delivered to the other party.
B. Cause. Either party may terminate this Agreement for cause upon fifteen (15) days
written notice mailed or personally delivered to the other party, and the notified party's failure to cure
or correct the cause of the termination, to the reasonable satisfaction of the party giving such notice,
within such fifteen (15) day time period.
C. Effect of Termination. Upon receipt of notice of termination, neither party shall
incur additional obligations under any provision of this Agreement without the prior written consent
of the other.
D. Return of Documents. Upon termination, any and all CITY docurnents or materials
provided to CONSULTANT and CONSULTANT's documents and materials prepared for or
relating to the performance of its duties under this Agreement, other than CONSULTANT'S audit
documentation, shall be delivered to CITY as soon as possible, but not later than thirty (30) days after
termination.
7. OWNERSHIP OF DOCUMENTS.
Except for CONSULTANT'S audit documentation, which shall remain the sole property of
CONSULTANT, the written documents and materials prepared by the CONSULTANT in
connection with the perfomance of its duties under this Agreement, shall be the sole property of
CITY. CITY may use said property for any purpose, including projects not contemplated by this
Agreement.
8. INSPECTION AND AUDIT.
Upon reasonable notice, CONSUL'T'ANT shall make available to CITY, or its agent, for
inspection and audit, all documents and materials maintained by CONSULTANT in connection with
its performance of its duties under this Agreement. CONSULTANT shall fully cooperate with CITY
or its agent in any such audit or inspection.
9. ASSIGNABILITY.
The parties agree that they shall not assign or transfer any interest in this Agreement nor the
performance of any of their respective obligations hereunder, without the prior written consent of the
other party, and any attempt to so assign this Agreement or any rights, duties or obligations arising
hereunder shall be void and of no effect.
10. INSURANCE
A. Scope of Coverage. During the tern of this Agreement, CONSULTANT shall
maintain, at no expense to CITY, the following insurance policies:
1. A commercial general liability insurance policy in the minimum amount of
one million dollars ($1,000,000) per occurrence/two million dollars ($2,000,000) aggregate, for death,
bodily injury, personal injury, or properly damage.
2. An automobile liability (owned, non -owned, and hired vehicles) insurance
policy in the minimum amount of one million dollars ($1,000,000) dollars per occurrence.
3. If any licensed professional performs any of the services required to be
perfonmed under this Agreement, a professional liability insurance policy in the minimum amount of
one million dollars ($1,000,000) per occurrence/two million dollars ($2,000,000) aggregate, to cover
any claims arising out of the CONSULTANT's performance of services under this Agreement.
Where CONSULTANT is a professional not required to have a professional license, CITY reserves
the right to require CONSULTANT to provide professional liability insurance pursuant to this
section.
Wil. If it employs any person, CONSULTANT shall maintain worker's
compensation insurance, as required by the State of California, with statutory limits, and
employer's liability insurance with limits of no less than one million dollars ($1,000,000) per
accident for bodily injury or disease. CONSULTANT's worker's compensation insurance shall
be specifically endorsed to waive any right of subrogation against CITY.
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B. Other Insurance Requirements. The insurance coverage required of the
CONSULTANT in subparagraph A of this section above shall also meet the following requirements:
L Except for professional liability insurance or worker's compensation
insurance, the insurance policies shall be specifically endorsed to include the CITY, its officers,
agents, employees, and volunteers, as additional insureds (for both ongoing and completed
operations) under the policies.
2. The additional insured coverage under CONSULTANT'S insurance policies
shall be "primary and noncontributory" with respect to any insurance or coverage maintained by
CITY and shall not call upon CITY's insurance or self-insurance coverage for any contribution. The
"primary and noncontributory" coverage in CONSULTAN'T'S policies shall be at least as broad as
ISO form CG20 01 04 13.
3. Except for professional
insurance, the insurance policies shall include,
contractual liability and personal injury.
liability insurance or worker's compensation
in their text or by endorsement, coverage for
4. By execution of this Agreement, CONSULTANT hereby grants to CITY
a waiver of any right to subrogation which any insurer of CONSULTANT may acquire against
CITY by virtue of the payment of any loss under such insurance. CONSULTANT agrees to
obtain any endorsement that may be necessary to effect this waiver of subrogation, but this
provision applies regardless of whether or not CITY has received a waiver of subrogation
endorsement from the insurer.
5. If the insurance is written on a Claims Made Form, then, following tennination
of this Agreement, said insurance coverage shall survive for a period of not less than five years.
6. The insurance policies shall provide for a retroactive date of placement
coinciding with the effective date of this Agreement.
7. The limits of' insurance required in this Agreement may be satisfied by a
combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall
contain or be endorsed to contain a provision that such coverage shall also apply on a primary and
noncontributory basis for the benefit of CITY (if agreed to in a written contract or agreement) before
CITY'S own insurance or self-insurance shall be called upon to protect it as a named insured.
8. It shall be a requirement under this Agreement that any available insurance
proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or
limits shall be available to CITY or any other additional insured party. Furthermore, the requirements
for coverage and limits shall be: (1) the minimum coverage and limits specified in this Agreement; or
(2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds
available to the named insured, whichever is greater. No representation is made that the minimum
Insurance requirements of this agreement are sufficient to cover the obligations of the
CONSULTANT under this agreement.
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C. Deductibles and SIR's. Any deductibles or self-insured retentions in
CONSULTANT's insurance policies must be declared to and approved by the PROJECT
MANAGER and City Attorney and shall not reduce the limits of liability. Policies containing any
self-insured retention (SIR) provision shall provide or be endorsed to provide that the SIR may be
satisfied by either the named insured or CITY or other additional insured party. At CITY's option,
the deductibles or self-insured retentions with respect to CITY shall be reduced or eliminated to
CITY's satisfaction, or CONSULTANT shall procure a bond guaranteeing payment of losses and
related investigations, claims administration, attorney's fees and defense expenses.
D. Proof of Insurance. CONSULTANT shall provide to the PROJECT MANAGER
or CITY'S City Attorney all of the following: (1) Certificates of lnsurance evidencing the insurance
coverage required in this Agreement; (2) a copy of the policy declaration page and/or endorsement
page listing all policy endorsements for the commercial general liability policy, and (3) excerpts of
policy language or specific endorsements evidencing the other insurance requirements set forth in this
Agreement. CITY reserves the right to obtain a full certified copy of any insurance policy and
endorsements from CONSULTANT. Failure to exercise this right shall not constitute a waiver of
the right to exercise it later. The insurance shall be approved as to form and sufficiency by PROJECT
MANAGER and the City Attorney.
11. INDEMNIFICATION.
A. Except as otherwise provided in Paragraph 13., CONSULTANT shall, to the fullest
extent permitted by law, indemnify, release, defend with counsel approved by CITY, and hold
harmless CITY, its officers, agents, employees and volunteers (collectively, the "City
Indemnitees"), from and against any claim, demand, suit, judgment, loss, liability or expense of
any kind, including but not limited.to attorney's fees, expert fees and all other costs and fees of
litigation, (collectively "CLAIMS"), arising out of CONSULTANT'S performance of its
obligations or conduct of its operations under this Agreement. However, to the extent that liability
is caused by the negligence or willful misconduct of the City Indemnitees, the CONSULTANT's
indemnification obligation shall be reduced in proportion to the City Indemnitees' share of
liability for the negligence or willful misconduct. In addition, the acceptance or approval of the
CONSULTANT's work or work product by the CITY or any of its directors, officers or
employees shall not relieve or reduce the CONSUL,rANT's indemnification obligations. In the
event the City Indemnitees arc made a party to any action, lawsuit, or other adversarial proceeding
arising from CONSULTANT'S performance of or operations under this Agreement,
CONSULTANT shall provide a defense to the City Indemnitees or at CITY'S option reimburse
the City Indemnitees their costs of defense, including reasonable attorneys' fees, incurred in
defense of such claims.
13. Where the services to be provided by CONSULTANT under this Agreement arc
design professional services to be performed by a design professional as that term is defined under
Civil Code Section 2782.8, then, to the extent permitted by law including without limitation, Civil
Code sections 2782, 2782.6 and 2782.8, CONSULTANT shall indemnify and hold harmless the
CITY and its officers, officials, and employees (collectively City Indemnitees) from and against
damages, liabilities or costs (including incidental damages. Court costs, reasonable attorney's fees
as may be determined by the Court, litigation expenses and fees of expert witnesses incurred in
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connection therewith and costs of investigation) to the extent they are caused by the negligence,
recklessness, or willful misconduct of CONSULTANT, or any subconsultants, or subcontractor
or anyone directly or indirectly employed by them, or anyone for whom they are legally liable
(collectively Liabilities). Such obligation to hold harmless and indemnify any indemnity shall not
apply to the extent that such Liabilities are caused in part by the negligence or willful misconduct
of such City Indemnitee.
C. The defense and indemnification obligations of this Agreement are undertaken in
addition to, and shall not in any way be limited by, the insurance obligations contained in this
Agreement, and shall survive the termination or completion of this Agreement for the full period
of time allowed by law.
12. NONDISCRIMINATION.
CONSULTANT shall not discriminate, in any way, against any person on the basis of age,
sex, race, color, religion, ancestry, national origin or disability in connection with or related to the
performance of its duties and obligations under this Agreement.
13. COMPLIANCE WITH ALL LAWS.
CONSULTANT shall observe and comply with all applicable federal, state and local laws,
ordinances, codes and regulations, in the performance of its duties and obligations under this
Agreement. CONSULTANT shall perform all services under this Agreement in accordance with
these laws, ordinances, codes and regulations. CONSULTANT shall release, defend, indemnify and
hold harmless CITY, its officers, agents and employees from any and all damages, liabilities,
penalties, fines and all other consequences from any noncompliance or violation of any laws,
ordinances, codes or regulations.
14. NO THIRD PARTY BENEFICIARIES.
CITY and CONSULTANT do not intend, by any provision of this Agreement, to create in
any third panty, any benefit or right owed by one party, under the terms and conditions of this
Agreement, to the other party.
15. NOTICES.
All notices and other communications required or permitted to be given under this Agreement,
including any notice of change of address, shall be in writing and given by personal delivery, or
deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to
be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the
date of deposit with the United States Postal Service. Notice shall be given as follows:
TO CITY's Project Manager: Nadine Atich IIade
City of San Rafael
1400 Filth Avenue
San Rafael, CA 94915
F0 CONSULTANT's Project Director: Amy L. Meyer, CPA
Maze and Associates
3478 Buskirk Avenue, Suite 215
Pleasant I -Jill, CA 94523
16. INDI:PENDEN'I' CON"I'RAC"l'OR.
For the purposes, and for the duration, of this Agreement, CONSULTANT, its officers,
agents and employees shall act in the capacity of an Independent Contractor, and not as employees of
the CITY. CONSULTANT and CITY expressly intend and agree that the status of
CONSULTANT, its officers, agents and employees be that of an Independent Contractor and not
that of an employee of CITY.
17, ENTIRI. AGRI:IiMI:N'I' -- AMI;NDMF:NTS.
A. The terms and conditions of this Agreement, all exhibits attached, and all documents
expressly incorporated by reference, represent the entire Agreement of the parties with respect to the
subject matter of this Agreement.
13. This written Agreement shall supersede any and all prior agreements, oral or written,
regarding the subject matter between the CONSULTANT and the CITY.
C. No other agreement, promise or statement, written or oral, relating to the subject
matter of this Agreement, shall be valid or binding, except by way of a -written amendment to this
Agreement.
D. The terns and conditions of this Agreement shall not be altered or modified except
by a written amendment to this Agreement signed by the CONSULTANT and the CITY.
I.. If any conflicts arise between the terns and conditions of this Agreement, and the
terms and conditions of the attached exhibits or the documents expressly incorporated by reference,
the terms and conditions of this Agreement shall control.
18. SET-OFF AGAINST DEBTS.
CONSULTANT agrees that CITY may deduct from any payment due to CONSULTANT
under this Agreement, any monies -which CONSULTANT owes CITY under any ordinance,
agreement, contract or resolution for any unpaid taxes, fees, licenses, assessments, unpaid checks or
other amounts.
The waiver by either party of any breach or violation of any term, covenant or condition of
this Agreement, or of any ordinance, law or regulation, shall not be deemed to be a waiver of any
other term, covenant, condition, ordinance, law or regulation, or of any subsequent breach or violation
of the same or other term, covenant, condition, ordinance, law or regulation. The subsequent
acceptance by either party of any fee, performance, or other consideration which may become due or
owing under this Agreement, shall not be deemed to be a waiver of any preceding breach or violation
by the other party of any term, condition, covenant of this Agreement or any applicable law, ordinance
or regulation.
20. COSTS AND ATTORNEY'S FF,ES.
The prevailing party in any action brought to enforce the terms and conditions of this
Agreement, or arising out of the performance of this Agreement, may recover its reasonable costs
(including claims administration) and attorney's fees expended in connection with such action.
21. CITY BUSINESS LICENSF. / OTI IER TAXES.
CONSULTANT shall obtain and maintain during the duration of this Agreement. a CITY
business license as required by the San Rafacl Municipal Code. CONSULTANT shall pay any and
all state and federal taxes and any other applicable taxes. CITY shall not be required to pay for any
work performed under this Agreement, until CONSULTANT has provided CITY with a completed
Internal Revenue Service Form W-9 (Request for "Taxpayer Identification Number and Certification).
22. SURVIVAL OF TERMS.
Any terms of this Agreement that by their nature extend beyond the term (or termination) of
this Agreement shall remain in effect until fulfilled and shall apply to both Parties' respective
successors and assigns.
23. APPLICABLE I,AW.
The laws of the State of California shall govern this Agreement.
24. COUNTERPARTS AND ELECTRONIC SIUNATURL:.
This Agreement may be executed by electronic signature and in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one document.
Counterpart signature pages may be delivered by telecopier, email or other means of electronic
transmission.
IN WITNESS WHEREOF, the parties have executed this Agreement as ofthe day, month
and year first above written.
CITY OF SAN RAFAEL
JIB SCI fu J. Ci nager
ATTEST:
y LINDSAY LARA, City Clerk
APPROVED AS TO FORIM:
1
�CROBER"F F. EPS i i �1\1'. City uwomey
CONSULTANT
By: CSL
Name:—/I 41 Y L, MGVLiL
Title: V l (
[If CONSULTANT is a corporation, add signature of
second corporate officer]
By: _.
Name:
"Title:
CITY OF SAN RAFAEL CONSULTANT
JIM SCHUTZ, City Manager
ATTEST:
LINDSAY LARA, City Clerk
APPROVED AS TO FORM:
ROBERT F. EPSTEIN, City Attomey
By:
Title:
11f CONSULTANT is a corporation, add sigmWm of
second corporate officer]
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By: II ,J
Name: !1S 11Gn,4
Title: ( Q
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REQUEST FOR PROPOSALS (RFP) FOR PROFESSIONAL AUDITING SERVICES
Date Issued: November 24, 2021
Updated December 1, 2021
Proposals Due: December 31, 2021
The City of San Rafael is seeking proposals for the preparation of both financial and compliance
audit reports covering the City and its related operations from qualified firms of certified public
accountants.
Respondents to this RFP shall submit completed proposals electronically by 5:00 p.m. on
December 31, 2021 to the following email address:
Claire Coleman
Senior Management Analyst
City of San Rafael
1400 Fifth Avenue, Room 204
San Rafael, CA 94901
claire. colema rigci tyofsa n rafa el, orq
Please contact Claire Coleman if you have any questions:
Email: claire.coleman(cDcitvofsanrafael.orq
Phone: (415) 451-2474
Request for Proposals (RFP) for Professional Auditing Services
Table of Contents
Introduction.................................................................................................................................................. 3
Aboutthe City of San Rafael.................................................................................................................... 4
Scopeof Auditor Services......................................................................................................................... 5
Proposal Submission Requirements....................................................................................................... 6
Questionnaire.............................................................................................................................................. 7
Evaluation of Proposals and Selection Process....................................................................................9
Timingand Schedule...............................................................................................................................10
AdditionalInformation..............................................................................................................................11
2
Request for Proposals (RFP) for Professional Auditing Services
Introduction
The City of San Rafael ("City") is requesting proposals for Professional Auditing Services. All
proposals must be sent electronically to claire.coleman cDcityofsanrafael.orq by no later than
5:00 p.m. on December 31, 2021. Late proposals will not be considered. The proposals shall
be clearly marked Proposal for Professional Auditing Services.
Proposals must be responsive to City's request. The City will select a firm on the basis of
demonstrated competence and on the professional qualifications necessary for the satisfactory
performance of the services required. Cost alone shall not be the determinative factor.
The request for proposals does not obligate the City to award a contract, and the City reserves
the right to cancel the request for proposals if deemed in its best interest. Responding firms shall
be solely responsible for any expenses incurred in preparing proposals in response to this
request.
3
Request for Proposals (RFP) for Professional Auditing Services
About the City of San Rafael
The City of San Rafael was incorporated in 1874 and became a charter city in 1913. The City
operates under the Council/Manager form of government and is governed by a five -member City
Council, which comprises four districted councilmembers and an at -large mayor. The City's
mission is to enhance the quality of life and to provide for a safe, healthy, prosperous and livable
environment in partnership with the community. The City has a staff of about 412 full-time
employees and is a full-service city, which includes the following departments:
■ City Attorney's Office
■ City Clerk's Office
• City Manager's Office
• Community Development
■ Digital Service and Open Government
• Economic Development and Innovation
• Human Resources
■ Finance
• Fire
• Library and Recreation (includes Parks, Recreation, Library, and Childcare)
• Parking Services
■ Police
• Public Works
• San Rafael Sanitation District
The City's fiscal year begins on July 1 and ends on June 30. For Fiscal Year 2021-22, the City
of San Rafael has a total operating budget of approximately $128 million for all funds and the
General Fund makes up approximately $89.5 million of that total. While City operations generate
revenue from various public services, such as licensing, permitting, and building activity, the three
primary sources of revenue for the General Fund are sales tax, property tax, and transaction and
use tax (TUT). See the City website his://www.c;ityofsanrafael.org/departments/finance) for the
most recent City Operating and Capital Improvement Program Budget and the Comprehensive
Annual Financial Report (CAFR).
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Request for Proposals (RFP) for Professional Auditing Services
Scope of Auditor Services
The objective of this RFP is to receive proposals for professional audit services. Services shall
include, but are not necessarily limited to, the following described below.
The City of San Rafael desires the auditor to express an opinion on the fair presentation of its
basic financial statements in conformity with generally accepted accounting principles. The audit
shall include an examination of all City funds by certified public accountants duly authorized to
practice as such by the State of California. The auditor shall also be responsible for performing
certain limited procedures involving required supplementary information required by the
Governmental Accounting Standards Board, as mandated by generally accepted auditing
standards.
The auditor shall review and verify all trial balance worksheets and summary schedules including
balance sheets, revenues, expenditures, and changes in fund balance for each City fund. The
data source for the schedules will be the financial statements supplied by the City. An initial draft
of the CAFR will be prepared by City staff and will be given to the auditors during the final stage
of the audit. Final report preparation and necessary editing shall be the responsibility of the
Auditor.
The auditor shall submit for management review a draft of all reports. The final reports are subject
to review by the City Council. The auditor shall incorporate, as part of the basic proposal, meeting
time with staff and City Council for the purpose of discussing the audits or management letter and
its conclusions.
Reports To Be Issued
- Comprehensive Annual Financial Report (CAFR), including a web -ready CAFR PDF to be
issued on the fair presentation of the financial statements in conformity with generally
accepted accounting principles.
- Management and SAS 114 Letters, which includes findings, statements, observations,
opinion, comments, or recommendations, related to:
o Systems of internal control based upon the auditors' understanding of the control
structure and assessment of control risk.
o Compliance with applicable laws and regulations.
o Accounting systems, functions, procedures, and processes, especially regarding
cost effectiveness.
- Single Audit Report which includes a City prepared Schedule of Expenditures of Federal
Awards
- Child Development Program Audit Report
- Transportation Development Act (TDA) Program Audit Report
- Agreed -Upon Procedures Performed Related to the calculation of the Gann Appropriations
Limit
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Request for Proposals (RFP) for Professional Auditing Services
Proposal Submission Requirements
The proposal shall be organized and submitted with the following elements:
• Cover page
• Table of Contents
• Questionnaire
o Proposer shall provide responses and information to fully satisfy each item in the
Questionnaire (see section below). Each question item should be presented before
the proposer's response.
• Attachments
o A report on firm's most recent external quality review, any findings discovered as
part of that review and actions taken to correct those findings.
• The firm also must disclose 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,
as well as any pending or settled litigation within the past three (3) years.
o Any other attachments deemed relevant.
Please keep your proposal to no more than twenty (20) pages in length. This page limit includes
the cover page, table of contents, executive summary, questionnaire, and any supplemental
attachments.
C
Request for Proposals (RFP) for Professional Auditing Services
Questionnaire
A. Company and General Information
■ Company name and address.
■ Letter of transmittal signed by an individual authorized to bind the respondent, stating that
the respondent has read and will comply with all terms and conditions of the RFP.
• General information about the primary contact who would be able to answer questions
about the proposal. Include name, title, telephone number and email address of the
individual.
B. Qualifications and Experience of the firm
• Describe your firm's history and organizational structure. Include the size of the firm,
location of offices, years in business, organizational chart, and name(s) of owner(s) and
principal parties.
• Identify partners, manager, and seniors who will be assigned to work on this project and
the firm's office in which they are each located. Include brief summaries of their
background (including if they hold a current CPA license) and experience in auditing cities,
as well as their assigned responsibilities under the proposal.
• What is your firm's experience in public sector accounting and auditing?
• Comment on other areas that may make your firm different from your competitors.
C. Questions/Response to Scope of Services
• Describe the audit approach and methodology to be used to perform the services. This
may include a discussion of:
i. Approach to selection of sample size;
ii. Use of specialized software;
iii. Analytical procedures;
iv. Approach to internal control structure;
v. Approach to determining laws / regulations subject to audit test work;
vi. Identification of any anticipated problems, or special assistance required from city
staff; and
vii. The format of the report.
D. Fees
• Provide your fees for the proposed service.
■ Detail costs and hourly billing rates, as well as any proposed method of adjustment in
the cost of services for subsequent years of the engagement, if applicable.
■ Outline billing and payment expectations, including timing and method of payment.
• Describe any remaining fees not already detailed above.
• Present a specific "not to exceed" fixed fee, including associated fees (i.e., printing
costs, attendance at meetings, travel) and all direct and indirect costs.
7
Request for Proposals (RFP) for Professional Auditing Services
E. References
■ Provide a list of the municipal agencies for which the respondent has provided audit
services for the past three calendar years.
• Provide the following information for three client cities that are similar in size and scope to
the project requested by this proposal:
o Name of Public Agency
o Name and title of contact person
o Telephone number and email address of contact person
o Brief description of the scope of the audit performed
F. Implementation Schedule
• Include a work schedule and note key project milestones and timelines for
deliverables. Identify any assumptions used in developing the schedule. Any
assumptions regarding turnaround time for City Staff review should be clearly noted.
o Please note that auditor is responsible for identifying required review times for the
City input and must account for printing and distribution within any timelines
identified in this RFP.
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Request for Proposals (RFP) for Professional Auditing Services
Evaluation of Proposals and Selection Process
Evaluation of Proposals
The project's core team, composed of City staff, will evaluate all proposals in accordance with the
criteria listed below. The City team members, in applying the major criteria to the proposals, may
consider additional criteria beyond those listed. In addition to evaluating written proposals, twenty -
minute oral interviews may be requested to allow for a formal presentation by the proposer.
The final selection will be the firm which, in the City's opinion, is the most responsive and
responsible, meets the City's requirements in providing this service, and is in the City's best
interest. The City maintains the sole and exclusive right to evaluate the merits of the proposals
received.
Proposals will be evaluated based on the following criteria:
Thoroughness and understanding of the tasks to be completed
• Background and experience in professional audit and accounting services
Staff expertise and overall experience of personnel assigned to the work
Responsiveness to requirements of the project
• Recent public sector experience, preferably in a municipal setting conducting similar work
• Costs
Although price for the services will be an important part of the consideration for award of the
project, the City will consider the consultant's qualifications, expertise and level of professional
service in the award of the project.
Request for Proposals (RFP) for Professional Auditing Services
Timing and Schedule
We will make every effort to administer the RFP process in accordance with the terms and dates
outlined below. However, we reserve the right to modify the RFP process and dates as deemed
necessary.
Event
Time
Date
RFP Published and distributed
November 24, 2021
Proposal submission deadline
5:00 PM
December 31, 2021
Proposals reviewed and evaluated by staff
Janua 3 - 14, 2022
Recommendation to City Council with
Agreement
January 17, 2022
Contract work begins
January24, 2022
10
Request for Proposals (RFP) for Professional Auditing Services
Additional Information
All responses to this RFP will become the property of the City of San Rafael.
This RFP does not commit the City to award a contract or to pay any costs incurred in the
preparation of the company's proposal. The City reserves the right to modify or cancel this RFP
in part or in its entirety and to accept or reject any or all proposals received if they do not meet
the minimum requirements of this RFP. The City also reserves the right to negotiate with the
selected firm to revise the scope of services if necessary, including modifying the services
requested to more closely match City needs.
If your firm is awarded the contract, your services (as well as those provided by other members
of the team) will be subject to the terms of a Professional Services Agreement. Your company
should review the terms of the Agreement to ensure that the proposal is consistent with its
provisions and include in the proposal an acknowledgement of acceptance of those provisions,
including requirements for indemnification and insurance. If your company takes exception to any
of the terms, such concerns or exceptions must be expressly stated in the proposal.
Insurance and Business License
The firm receiving the contract for audit services shall procure and maintain, for the duration of
the contract, insurance as required in the City's standard professional services agreement. The
firm selected must have a valid City of San Rafael business license while conducting any work
under this contract for each year of the contract term. Additional information regarding the City's
business license program may be obtained by calling (415) 485-3051.
Standards To Be Followed
To meet the requirements of this request for proposal, these audits are to be performed in
accordance with all applicable and generally accepted auditing standards including, but not limited
to: the standards set forth for financial audits by the Government Accounting Standards Board
(GASB), in the General Accounting Office's (GAO) Government Auditing Standards, and in the
U.S. Office of Management (OMB) Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards.
Special Considerations
The City of San Rafael has received awards from the Government Finance Officers Association
(GFOA) for the "Certificate of Achievement for Excellence in Financial Reporting" for the past nine
years. The City of San Rafael anticipates that it will continue to send its Annual Comprehensive
Financial Report to GFOA for review in their Certificate of Achievement for Excellence in Financial
Reporting program. The format of reports shall allow the City to meet the requirements of that
program. This also requires that the auditor ensure that the audit report and financial statements
are completed in time for submission to GFOA. The auditor shall also assist with developing
responses to any comments or deficiencies noted by GFOA.
11
Request for Proposals (RFP) for Professional Auditing Services
Working Paper Retention and Access to Working Papers
All working papers and reports must be retained at the auditor's expense for a minimum of three
(3) years, unless the firm is notified in writing by the City of San Rafael of the need to extend the
retention period. The auditor will be required to make working papers available to the City of
Rafael or any government agencies included in the audit of federal grants. In addition, the firm
shall respond to the reasonable inquiries of successor auditors and allow successor auditors to
review working papers relating to matters of continuing accounting significance.
Contract Term
The contract shall be for four consecutive years for auditing fiscal years ending June 30, 2022
through June 30, 2025. Upon mutual agreement of the parties, and subject to the approval of the
Agency, the term of this Agreement shall be extended for an additional period of two years for
auditing fiscal years ending June 30, 2026 and June 30, 2027.
12
N'' MAZE
& ASSOCIATES
December 31, 2021
Claire Coleman
Senior Management Analyst
City of San Rafael
1400 Fifth Avenue, Room 204
San Rafael, CA 94901
Clai re.Colemanp_CityofSan Rafael.org
Dear Ms. Coleman:
In response to the City's request for proposals for professional auditing services, we are pleased
to enclose one electronic copy of our Proposal to continue to provide Professional Auditing
Services for the City of San Rafael.
Yours very truly,
Amy L. Meyer, CPA
Audit Partner
AM:saa
Enclosures
T 925.930.0902
Accountancy Corporation F 925 930 0135
3478 Buskirk Avenue Suite 215 e mazeomazeassociates corn
Pleasant Hill. CA 94523 w mazeassociates.com
This Page Left Intentionally Blank
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PREPARED O.
Claire Coleman
Senior Management Analyst
City of San Rafael
1400 Fifth Avenue, Room 204
San Rafael, CA 94901
Claire.Coleman(o),CitvofSanRafael. ❑rq
Amy L. Meyer, CPA MAZE 3478 Buskirk Ave, Suite 215
P (925) 930-0902
F (925) 930-0135 tit &ASSOCIATES
This Page Left Intentionally Blank
CITY OF SAN RAFAEL
PROFESSIONAL AUDITING SERVICES PROPOSAL
TABLE OF CONTENTS
Page
QUESTIONNAIRE
A. COMPANY AND GENERAL INFORMATION
Letterof Transmittal............................................................................................................................................... 1
B. QUALIFICATIONS AND EXPERIENCE OF THE FIRM
Overview....... .................. ...... .,................................ ....................................................................... •----••--............... 3
OrganizationChart..............................................................
AuditTeam..... ........................................ ......................................................._.....----.-------•.---- .---.._........_.............. 4
Resumes of Staff Assigned to Your Audit ..... .............. :...•-......... ---........ :............................... ................................... 4
Experience............................ .. ..... ............................ ......... .. ....... 6
Capacityand Resources.... . ................................ ................................. ..............--........................ ...--...... ....... 6
Professional Activities .................. ........ ___ .......... ................................................................ 7
StaffTraining........................................................................_..---------------............................---....- ....--.................... 7
C. QUESTIONS/RESPONSES TO SCOPE OF SERVICES
Overview.........................................................:.............::..:........:.......::..:.;.:...,......:.....:..:::..:.:...::..:......................... 8
SpecificAudit Strategy — Interim ................... :.................................. :.:...............:::::...._......----..._.....::............:.::..... 8
Laws, Regulations and Compliance...................................................................................................................... 8
System Controls, Transaction Cycle Processing Verification and Sample Sizes ................................................ 8
Remote Audit Considerations .................................... .......... .......................... ---........ ,...... ---...... ........ ...... ............ 9
Assessing Risks — Interim Phase_ .......... ......................................................... ................. ................... .................. 9
ClientTailored Risk Assessment......................................................................................................................... 10
Assessing Risks — Final Phase ............................... ___ ... ..... ................. :...... :.................................................. 10
Communication, Coordination, Prompt Service and Delivery of Reports............................................................. 11
Internal Quality Assurance System........................................................................................._....._.......---............. 11
D. FEES
TotalCost of Audit .................. ........ .... .......... ___ ....... ....... ____ ... ................. .................................................... 12
Whatour Price Includes..............------------............---........----------.......------......---.............--............ --........................ 12
Cost Rationale................................................................................................:..... ...:. 12
...,.........................................
Fees and Billings (Method of Payment).............................................................................----..............-----.....--.... 12
Total All Inclusive Maximum Price Summary ....................................................................................................... 13
GASB No. 87, Leases, and Potential Increase in Audit Scope................................................................._..._........ 13
E. REFERENCES
Cityand Town Clients...............................................................................................................---.....--•---------........ 14
References............................_......_...........---...........----...............--•- ............. .............. ---........................................ 15
F. IMPLEMENTATION SCHEDULE
Timeline for Audit Work..............................._...:................._.......:......::.::.. •:,.. •.....
ATTACHMENTS
External Quality Control Review/Peer Review......................................................... ............................... :. ....... 18
Federal or State Desk or Field Reviews ..............._................... .. 18
Litigation.................................................................. ............................................................................................... 18
License to Practice in California ................................... ............... ........................................ ........ .......... ....... 18
This Page Left Intentionally Blank
F MAZE
December 31, 2021
Claire Coleman
Senior Management Analyst
City of San Rafael
1400 Fifth Avenue, Room 204
San Rafael, CA 94901
Claire. Coleman@CityofSanRafael.orcl
Dear Ms. Coleman:
We appreciate this opportunity to submit our proposal to continue to provide Professional Auditing Services for the
City of San Rafael. We have read the request for proposals (RFP) and agree to comply with all terms and
conditions of the RFP. We understand we will audit the City's Basic Financial Statements and assist with the Annual
Comprehensive Financial Report for the four fiscal years beginning with the fiscal year ending June 30, 2022, with
the option to extend for an additional two years. We will also perform additional procedures and complete the other
assurance services as specified in the City's RFP within the time periods established by the City.
We are quite certain we are the most qualified firm to be your independent accountants. As our founder, Scott
Maze, first coined over forty years ago, "We are in Business to Help Our Clients Succeed!" Since that time, we
have rigorously employed this philosophy along with our commitment to continual improvement. Our clients know
from experience we employ a variety of techniques, technologies and strategies to maximize effective and
efficient audits without shifting our work onto our client's staff. We've summarized these techniques, technologies
and strategies below and explained them in more depth in our proposal.
• We are the best-known regional municipal audit firm in Northern California. Our firm has been in
business over 40 years, and over that time we have achieved national recognition with the consistently high
quality of our work and with our leadership on issues such as GASB Statements 34, 68 and 75, and internal
control enhancements. We frequently speak at CSMFO and CSDA events and webinars.
➢ The municipal industry is our main business. We believe we have the necessary qualifications to
perform your audit.
Annually, we serve over 200 municipalities including special districts, joint powers
authorities, successor agencies, housing authorities and financing authorities in the San
Francisco Bay Area.
We currently have over forty City or Town clients ranging in size from small towns to large
complex cities. We are proud to say that over forty of our clients publish award-winning Annual
Comprehensive Financial Reports, the majority of which we have provided assistance in
compiling reports.
We conduct over three dozen Single Audits annually.
Our Partners are actively involved in planning, conducting and completing the audit in our client's offices,
and our Partners are available when you need them. We resolve issues on the spot while the audit is going
on.
• We have a long-term track record of client retention beyond our client's original contract terms because of the
quality of our service.
T 925.930 0902
Accountancy Corporation F 925.930 0135
3478 Buskirk Avenue, Suite 215 e maze<dimazeassociates.com
Pleasant Hill. CA 94523 w mazeassociates.com
• We are properly licensed to practice in California. All key staff assigned to this audit possess California CPA
licenses.
• Everyone on our audit staff averages approximately 80 hours of training in municipal auditing and
accounting and 1500 hours of municipal audit experience each year. This means you do not train our
staff!
• Our fee includes one free day of training. Starting in 2016, we implemented the annual Maze Live training.
This will provide you with knowledge of upcoming GASB pronouncements and changes in the municipal field.
Past classes included topics such as year two of GASB Statement 68, GASB Update, Implementation of
GASB Statements 74 and 75, Fraud Environment, Cybersecurity and Single Audit under Uniform Guidance.
Future Classes will focus on similar topics as well as the information to prepare for the implementation of
GASB Statement 87.
• Our Closing Checklists help you prepare in advance for both our interim and year-end audits. These
Checklists do away with last-minute requests for schedules and analyses at year-end and help identify
potential problems early in the process. We will coordinate them with the work papers you are already
preparing, so you don't have to prepare workpapers only for the auditors.
As with all our audits, we are committed to providing timely, quality audit services to the City of San Rafael. We
have no doubt that we are the firm best qualified to perform the services described in the RFP. After you have
analyzed our proposal and - most important - talked with our references, we are quite confident you will agree.
Amy Meyer, Vice President (am m(Wmazeassociates.cam), and Katherine Yuen, Vice President
{katherinev(&mazeassociates.com), are authorized to represent, sign for and contractually obligate Maze &
Associates, a Professional Corporation, located at 3478 Buskirk Avenue, Suite 215, Pleasant Hill, CA, 94523,
P(925) 930-0902, F(925) 930-0135. The proposal is a firm and irrevocable offer for 90 days.
We look forward to the opportunity to continue to provide audit services for the City of San Rafael!
Yours very truly,
Amy L. Meyer, CPA
Audit Partner
AM:saa
RFP QUESTION: Describe your firm's history and organizational structure. Include the size of the firm,
location of offices, years in business, organizational chart, and name(s) of owner(s) and principal parties.
OVERVIEW - We are a professional services corporation located in Pleasant Hill, California. We presently have a
total of fifty-seven people including the following:
• Seven Shareholders, including five Audit Partners:
• Tim Krisch, CEO • David Alvey
• Chris Hunt, COO • Vikki Rodriguez
• Amy Meyer • Grace Zhang
• Katherine Yuen
• Three Directors
• Six Managers
• Six Audit Supervisors
Twenty of our professional staff are California Certified Public Accountants, and three additional staff members
are in the process of completing their applications for licensure. Thirty of our professional staff members
comprise our governmental audit staff, as our firm's emphasis is on governmental auditing and accounting.
Several of our professional staff have national accounting firm experience, which we have blended with the more
personal approach of a smaller firm.
All staff assigned to this engagement are full-time staff of our firm. We anticipate assigning two partners, one
manager, one supervisor, two to three audit associates and administrative support staff to this engagement. The
location of the office from which work on this engagement will be performed is Pleasant Hill, California. Our mailing
address is 3478 Buskirk Avenue, Suite 215, Pleasant Hill, CA 94523. Phone: 925-930-0902 Fax: 925-930-0135
The majority of our clients are cities, special districts, or other municipal entities and we do this work twelve
months of the year. We limit our practice in other areas and focus on being the best municipal audit firm in
Northern California. Our clients include several cities similar to the City in size. Our audit strategy is tailored to
municipalities and is quite different from the traditional approach adapted from commercial clients by general
practice accounting firms. We have focused on municipalities since 1986. We are active in GFOA, CSMFO,
CSDA and CMTA, and our Partners have been speakers at GFOA, CSMFO, CSDA and CMTA functions.
We are in business to help our clients succeed. We help you use the ever-growing tangle of accounting rules
properly, but to your best advantage, by helping you keep out of trouble and helping you do the right thing. We stay
in touch throughout the year to keep you informed of municipal accounting developments and to help you avoid
problems, instead of coming in afterwards to assess the damage. We rotate our audit emphasis based on our
planning meetings with you so areas that concern you can be addressed as a normal part of the audit at no extra
cost.
ORGANIZATION CHART- We are organized as follows:
Organizational Chart
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RFP QUESTION: Identify partners, manager, and seniors who will be assigned to work on this project
and the firm's office in which they are each located. Include brief summaries of their background
(including if they hold a current CPA license) and experience in auditing cities, as well as their assigned
responsibilities under the proposal.
AUDIT TEAM - We are proposing to assign Amy Meyer, CPA, as Engagement Partner, Katherine Yuen, CPA, as
Alternate/Technical Review Partner and Childcare Audit Partner, Whitney Crockett, CPA, as Manager, and
Kristine Manansala as Supervisor. We have selected this team based on their extensive municipal audit
experience.
We will balance out our resources with our Senior Associates and Associates to form a fully leveraged team. All of
our audit staff are experienced with audits of Basic Financial Statements, enterprise operations, retirement plans,
capital assets and infrastructure, long term debt, including swaps and related compliance and continuing
disclosures, and all other aspects of municipal accounting and financial reporting.
All personnel who are assigned to work on this engagement and the firm office in which they are located is Pleasant
Hill, California.
RESUMES OF STAFF ASSIGNED TO YOUR AUDIT (NOTE — client lists listed below have been
edited to include only City clients and exclude special district and authority clients — if you would like to
see our team members' full resumes, we will be happy to provide them.)
AMY MEYER, CPA, Engagement Partner — Amy graduated from the University of the
Pacific in 1993 with a B.S. in Accounting and a minor in Information Systems and has
worked with Maze & Associates since 1993. Amy is a California CPA and is a member of
r the California Society of CPAs and the American Institute of Certified Public Accountants.
ti Amy has assisted several of our clients with their computer applications and is very
comfortable using a variety of systems. She has been involved with a number of
accounting and GASB implementation training classes customized to our clients' needs.
Amy is also our PC applications expert. Amy currently serves on the Governmental
Accounting and Auditing Committee of the California Society of Certified Public
Accountants, which provides practical guidance to CPAs in the area of governmental
accounting and auditing in an effort to improve the quality of financial reporting on
governmental entities. Amy is also an Annual Comprehensive Financial Report reviewer for GFOA. She has
accumulated three hundred and four hours of continuing education during the last three years as an in-house
instructor and participant. She has gained valuable experience on the audits of the following:
City of Alameda
City of Livermore
Town of San Anselmo
City of Albany
Town of Los Gatos
City of San Carlos
City of American Canyon
City of Manteca
City of Modesto
Town of Atherton
City of Martinez
City of San Pablo
City of Belmont
City of Milpitas
City of San Rafael
City of Brentwood
City of Mountain View
City of Santa Clara
City of Concord
City of Oakley
City of Saratoga
City of Daly City
City of Palo Alto
City of South San Francisco
City of Dublin
City of Rancho Cordova
City of Tracy
City of EI Cerrito
City of Richmond
City of Turlock
City of Elk Grove
City of Rio Vista
City of Vallejo
City of Hercules
City of Rocklin
City of Waterford
City of Lathrop
City of Roseville
City of Woodland
4
KATHERINE YUEN, CPA, Alternate/Technical Review Partner and Childcare Audit
Partner — Katherine is a year-round municipal auditor and has been with Maze &
Associates since 1996. Over the years, she has taught classes both externally and
internally on topics including GASB Statements implementation, auditing techniques under
the Government Auditing Standards, and internal controls environment. She currently
T serves on the Governmental Accounting and Auditing Committee of the California Society
of Certified Public Accountants, which provides practical guidance to CPAs in the area of
governmental accounting and auditing in an effort to improve the quality of financial
reporting on governmental entities. She is also a member of the American Institute of
dA& Certified Public Accountants and the California Society of Certified Public Accountants.
She holds a Bachelor of Science degree in Business Administration from the University of
California, at Berkeley. She is a Certified Public Accountant in the State of California. Her relevant audit
experience includes:
City of Alameda
City of Los Banos
City of Rancho Cordova
Town of Atherton
Town of Los Gatos
City of Roseville
City of Belmont
City of Manteca
City of San Carlos
City of Benicia
City of Martinez
City of San Leandro
City of Campbell
City of Millbrae
City of San Mateo
City of Concord
City of Milpitas
City of San Rafael
City of Daly City
City of Monterey
City of San Rafael Child
Development Program
City of Davis
Town of Moraga
City of San Ramon
City of Dublin
City of Mountain View
City of Sausalito
City of Emeryville
City of Napa
City of South Lake Tahoe
Town of Fairfax
City of Newark
City of South San Francisco
City of Galt
City of Orinda
City of Tracy
City of Hayward
City of Oxnard
City of Walnut Creek
City of Lafayette
City of Palo Alto
City of Woodland
Town of Larkspur
City of Petaluma
Town of Woodside
City of Lathrop
City of Pinole
City of Los Altos
City of Pleasant Hill
WHITNEYL. CROCKETT, CPA, Manager— graduated from Washington State University with
a Bachelor of Arts in Business Administration in Accounting in May 2011 and received a
Masters of Accounting Degree in August 2012. She is a Certified Public Accountant in the
State of California. Whitney has received over 240 hours of continuing education in the
past three years and has participated in the following audits:
City of Alameda
Town of Atherton
City of Brisbane
City of Concord
City of Daly City
City of Dublin
City of East Palo Alto
City of EI Cerrito
Town of Fairfax
City of Hayward
City of Lafayette
City of Larkspur
City of Los Banos
City of Manteca
City of Martinez
City of Mountain View
City of Pittsburg
City of Milpitas
Town of Moraga
City of Oakley
City of Pacifica
City of Petaluma
City of Richmond
City of Roseville
City of Santa Clara
City of San Pablo
City of San Rafael
City of Sausalito
City of Vallejo
City of Watsonville
City of West Sacramento
Town of Woodside
KRISTINE MANANSALA, Supervisor — Kristine graduated from St Mary's College of
California in 2013 with a Bachelor of Science in Accounting, when she joined our firm.
Kristine has received over 240 hours of continuing education in the last three years.
Her audit experience includes the following:
City of Alameda
City of Milpitas
City of Brentwood
Town of Moraga
City of Davis
City of Mountain View
City of Galt
City of Oakley
City of Hayward
City of Orinda
City of Lafayette
City of Petaluma
City of Livermore
City of Pittsburg
City of Los Banos
City of Pleasanton
City of Manteca
City of Rancho Cordova
City of Richmond
City of San Leandro
City of San Rafael
City of South San Francisco
City of Tracy
City of Turlock
City of Vallejo
RFP QUESTION: What is your firm's experience in public sector accounting and auditing?
EXPERIENCE - Our practice includes over forty city and town clients and more than fifty special districts,
including over forty Comprehensive Annual Financial Report award winners—more award winners than any
other Northern California accounting firm or international firm branch office. Eighty percent of our practice is
municipal auditing, accounting and consulting, continuing throughout the entire year. Our growth can be seen in the
graph below, which shows the growth in the number of our total municipal entity clients in blue, City audit clients in
green and Comprehensive Annual Financial Report award winners in red.
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Every one of the above Comprehensive Annual Financial Reports won awards from GFOA and/or CSMFO.
As you can see from the client list in the References - City and Town Clients Section below, we have a winning
combination that has resulted in strong client loyalty and retention. Several clients who left have returned after
seeing the difference between our firm and our competitors. Others have remained our clients after completing a
full-blown proposal process, most recently Cities of Brentwood, Milpitas, Oakley, Pittsburg, Santa Clara and South
San Francisco.
RFP QUESTION: Comment on other areas that may make your firm different from your competitors.
CAPACITY AND ASSISTIVE RESOURCES - We have consistently demonstrated the ability of our capacity and
resources to meet the demands of our clients. We have never missed a reporting deadline for any of our clients.
Over the years we have made substantial additional investments in our people and our systems. We have
continued our policy of at least doubling the required amount of Continuing Education we provide our people.
We have moved most of our clients from a manual input of their general ledger data to a fully mechanized
computer upload of that data direct to our Excel -based financial statement formats. At the same time, we have
added significant numbers of internal data controls to financial statement formats. This strategy has virtually
eliminated input errors, increased efficiency, and allowed our clients to spend less time reviewing and approving
the financial statements. Not only does our direct upload produce fund -basis financial statements, it produces the
Entity -wide financial statements. And these improvements have been made without a hiccup - we consistently
deliver final draft financial statements and reports to our clients within a week of the last day of our
fieldwork.
Our client support is unmatched by any other firm. As a San Francisco Bay Area municipal audit niche firm with five
audit partners, we are positioned perfectly to provide staff and Council with a wide variety of resources. Support
ranges from turnkey financial statement drafts with linked footnotes and direct download -based financial statements
to professional continuing education sessions. We are active in professional organizations affecting local
government and have a strong presence in neighboring local governments which keeps our knowledge current that
we readily share with our clients. And we do not charge extra for the five-minute phone calls throughout the year.
PROFESSIONAL ACTIVITIES - We are active members of the Government Finance Officers Association and the
California Society of Municipal Finance Officers as well as the American Institute of Certified Public Accountants and
the California Society of Certified Public Accountants. We are also a member of the Association of California Water
Agencies (ACWA). We are frequent speakers at various organizations.
We attend CSMFO Northern California chapter meetings on a regular basis, and we have served as speakers on
various occasions. We also attend the CSMFO Annual Conference, at which our Partners and IT Director have
been speakers. We have also attended the League of California Cities' annual Financial Management Seminars.
Amy Meyer, Partner, and Katherine Yuen, Partner, serve on the Governmental Accounting and Auditing
Committee of the California Society of CPAs. David Alvey, Partner, serves on the Accounting Procedures and
Assurance Services Committee of CaICPA and the Professional Standards Committee of CSMFO. Amy Meyer
and David Alvey are Annual Comprehensive Financial Report reviewers for the Comprehensive Annual Financial
Report Award Program of the Government Finance Officers Association.
STAFF TRAINING - We believe the level of training we provide is unmatched by any other accounting firm. Our
audit staff receives an average of 80 hours of continuing education annually, including an average of over
48 hours of municipal audit and accounting training. These are twice the amount required by professional
standards.
Our program places heavy emphasis on governmental accounting and auditing classes conducted by our own
staff, supplemented by courses offered by the California Society of Certified Public Accountants, the American
Institute of Certified Public Accountants, the Government Finance Officers Association, the California State
Municipal Finance Officers Organization and the Association of California Water Agencies.
We accomplish this task by reserving up to two weeks each year solely for staff training. Our training is
very specific and very participatory; lectures are almost non-existent as people are involved in a continual give-
and-take format designed to educate while it helps us improve our services. We deal with specific clients and
situations, we solve problems and do case studies, and we train people for real-life situations through role-play
exercises. Everyone is equal in these exercises and everyone contributes their own experience in the field and
the ideas they have formulated from that experience. Suggestions coming out of staff training sessions are
the source of most of the service improvements and refinements we make each year.
RFP QUESTION: Describe the audit approach and methodology to be used to perform the services.
OVERVIEW - Our audit strategy is designed specifically for municipalities. We perform half our audit well before
year-end so we can identify problems early. Our strategy maximizes our efficiency and lessens the load on our
clients. When engaged to prepare the financial statements, we prepare proformas of them for your review, well
before year-end and we give you detailed interim and final -phase checklists of all the items we will need from you
months in advance. We have integrated GASB 34 requirements into our strategy so that there is a seamless
transition to the entity -wide statements.
We will plan the audit in detail and prepare an Audit Plan which details the information we will need from you to
complete our interim and year-end audits, along with the person responsible for preparing it and the date they will
have it ready. We tailor it to refer directly to the schedules you already prepare.
We do not require special reports or reconciliations just for our audit. We have found that coordinating our
team and our client's staff works very well because it helps minimize the impact on your staff at year end. This way
the Audit Plan includes most data we need from you so you and your staff can plan and schedule your work
accordingly. Our clients know from prior experience with our firm, that we excel at minimizing our impact on
your staff.
SPECIFIC AUDIT STRATEGY— INTERIM - Unlike older -style firms, we perform most of our important work at
interim, well before the end of the fiscal year. We use our interim work to identify and solve problems and plan the
year-end closing and audit in detail. Well before we begin our interim work, we will send you a list of the items we
need, so you will have time to prepare.
We forecast many year-end amounts at interim, so that we can limit the amount of work required at year-end and
concentrate instead on areas of concern. For example, we normally perform all our cash and investment testing at
interim, including sending confirmation letters to depositories and determining financial statement categorizations.
Performing these last two steps at interim allows plenty of time to follow up on confirmations or resolve questions
about the proper categorization of an investment without delaying the audit. As another example, we test long-term
debt at interim and forecast year-end balances and transactions for each debt issue.
We use remote inquiry as much as possible at interim, in order to increase our efficiency and reduce our impact on
your staff. We can download Council minutes and other documents from your website for review. Combining these
abilities with our checklists has allowed us to perform larger portions of the audit in our own offices and reduce our
questions to writing so that you have more time to deal with them.
LAWS, REGULATIONS AND COMPLIANCE - Our audits are designed to ensure that we test transactions for
compliance with the Single Audit Act and other applicable laws and regulations, including the California
Government Code, provisions of applicable grant guidelines, California Constitution Gann Limit requirements,
requirements of local measures, Transportation Development Act requirements, etc. We identify applicable laws
and regulations as part of our audit planning each year.
To the extent possible, we also begin our tests of compliance with laws and regulations at interim, including use of
the Uniform Guidance and the OMB Compliance Supplement and any other applicable compliance guidelines. Even
if the work cannot begin until year-end, we determine the applicable laws and regulations for our compliance testing
so that we may incorporate the necessary information into our year-end closing checklist. Our audit samples for
purposes of compliance vary based on the grant or compliance guidelines and are program -specific. The samples
are stratified to ensure we test transactions that are representative of the costs charged to grants.
SYSTEM CONTROLS, TRANSACTION CYCLE PROCESSING VERIFICATION AND SAMPLE SIZES - With
any data processing system upon which we intend to rely as a means of reducing substantive testing, we perform a
variety of tests to verify the accuracy of transaction processing, the reliability of system control points and
authorization controls, appropriateness of profile structures including Super -User rights access, and automated
functionality such as sub -ledger integration and auto -journal entry validity and set up controls.
Gaining an understanding of the design of relevant procedures, controls and authorization levels is integrated with
our risk assessment procedures discussed under the Client Tailored Risk Assessment section below. As part of
our risk assessment process, we identify those transaction cycles we intend to rely on. Both processing procedures
and controls that are to be relied on are tested with our audits.
Transaction cycle processing and control tests typically involve sampling techniques. Most of our transaction
samples are selected and tested during the interim portion of our work. Each sample will run from twenty-five to
sixty transactions in size. We use interval and judgment sampling techniques with a high degree of stratification.
Most municipalities operate more than one major revenue system. Therefore, we typically determine which revenue
transactions are processed with common procedures and controls and deem that to be a single population and
subject it to a single sample. Other revenue cycles processed with separate controls are tested with their own
samples. For example, it is common for separate samples to be selected for governmental receipts and each major
enterprise fund. Transaction cycles we sample are dependent on materiality to each client's financial statements but
typically include, payroll, disbursements, receipts, loans receivable, investments and budget transactions and in
accordance with the requirements of Statement of Auditing Standards #99 we also sample journal entries. Samples
from each grant audit or major federal award program are also made. Samples are triple purpose samples and we
test for correct recording, compliance with applicable policy or regulation and key control attributes — both manual
and automated. This includes verification of sub -ledger integration and auto -journal entry validity, if needed.
REMOTE AUDIT CONSIDERATIONS - With the global pandemic and related subsequent shelter -in-place
mandates that we all experienced in early 2020, we found that we needed to expand our remote audit abilities.
Our client's audits could not be deferred, even with the various extensions of filing deadlines that were allowed.
While many firms may have been caught off guard, we were already equipped to provide our clients with a very
smooth transition to remote audits. We had already transitioned to paperless audit workpapers over ten years
ago, already experienced with the use of secure client data transfer portals (LeapFile and SharePoint) that we
have used for a number of years, and our IT staff had been working on the implementation of Microsoft Teams —
that meant we were immediately able to conduct remote audits and shortly after that we were able to conduct
virtual meetings with our audit teams and with our clients. In the event a client did not have or was not able to use
Microsoft Teams, we also obtained a Zoom account to provide flexibility in that area. Of course, there were a
small number of clients that did not have the technological resources and/or personnel capacity to accommodate
a remote audit, and we made arrangements to conduct those audits onsite with the use of applicable safety
measures.
Now that the State and most counties are relaxing the restrictions, we still find that many of our clients are not
open to the public or are not able to provide an area to accommodate our entire audit team. We have also found
that some clients prefer to continue to conduct the audit remotely or a hybrid -remote audit. With the
hybrid -remote audit, we conduct a good portion of the audit remotely and our audit team or only a few team
members, depending on the ability to maintain safe social distancing, visit the client's offices to review any
documents or processes that are not readily available electronically. We are also working to obtain feedback from
our clients regarding the remote audit tools and processes that worked and those that could use improvement.
As with all of our services, we want to ensure that our clients receive the best possible quality of service, whether
in-person or remote on a computer screen.
ASSESSING RISKS — INTERIM PHASE - We have consistently employed a risk-based concept from our
firm's inception. Our audit checklists and programs were originated by reference to Audits of Local
Governments published by the Practioners' Publishing Company (PPC), a third -party vendor specializing in
producing audit guides for unique industries. But we have not simply used their guide as our approach. We have
customized it further for the simple reason that California municipalities have many unique risks not faced by
municipalities in other states. As you know, California state law and applicable regulations cover a wide variety of
areas such as cash and investment management, redevelopment compliance, transportation development act
programs, and child development programs.
Our primary objective in an audit of each client's financial statements is to opine on whether the financial
statements, including disclosures, are free of material misstatement. Our opinion must be based on sufficient,
appropriate audit evidence that we obtain, and this evidence must be documented. To achieve this objective, we
further refine our approach to be responsive to each individual audit. We may reduce the scope of our
substantive audit tests provided we conclude there are effective specific controls in place which would detect and
correct misstatements due to errors or fraud.
CLIENT TAILORED RISK ASSESSMENT - Our strategy to assessing risk begins with a brainstorming session of
our audit team where they review your prior year financial statements and operations to identify areas of major
audit risk. We also incorporate our consideration of other factors such as the risk of fraud, the economy,
regulatory complexities or changes, credit market conditions and others into our initial assessment. We may also
compare unusual transactions and estimates to those used by other municipalities or to current trends and issues.
Since we are a niche firm specializing in California municipalities this is relatively easy. For example, certain
development agreements are unique to municipalities. These agreements usually contain complex financial
transactions and legal restrictions. With so much experience in this area we can quickly design an efficient
response to these risks.
Major audit risks are further evaluated through consideration of relevant assertions to determine inherent risk due
to error or fraud. For example, cash on hand has a relative higher inherent risk of loss due to theft than an
infrastructure asset. High and medium inherent risk audit areas are further evaluated to determine relevant
internal controls needed to prevent, detect and correct errors or fraud.
We start our evaluation of your internal controls by interviewing staff and meeting with Department heads as
needed. We review policies and procedure manuals and other documentation to determine the design of
procedures and controls. As part of our evaluations, we document narrative memoranda outlining the duties of
each pertinent person as well as our GRID evaluation of the important nexus control points. The GRID is our own
design; it is a two -axis chart we use to identify potential conflicts of duties in your controls. We enhance our
evaluation by reviewing system profile reports, paying special attention to super -user rights. This data is then
used to determine the presence or absence of compensating controls designed to mitigate conflicts of duties
vested in a single individual.
We then test to verify that procedures and controls are operating effectively such that they reduce the risk that
errors or fraud could occur and go undetected and uncorrected. We use a variety of techniques to verify controls
are effective including: sampling, observation, documentation of reviews, examining system access reports and
comparisons with other data.
After this has been completed, we assess the risk of material misstatement which is determined by the relative
inherent risk of an area and the associated control risk to plan our substantive tests. That is, the risk that controls
are not in place or are not operating effectively. Areas with a low risk of material misstatement assessment may
receive limited substantive procedures while those with a high risk of material misstatement will receive significant
substantive procedures. We then design our final phase audit plan to ensure we obtain sufficient
appropriate evidence about the financial statements and disclosures. Specific audit procedures are
developed and documented in our audit programs and we develop potential internal control points for further
evaluation as to significance and communicate those to staff.
ASSESSING RISKS — FINAL PHASE - Although the majority of our evaluations and testing of internal controls is
completed with our interim testing, it is during the final phase that actual year end balances, transactions and
disclosures are known, and our substantive procedures are employed. These procedures and data often reveal
unusual or unexpected results that must be considered in the risk assessment process. Risk assessment
processes are iterative and cumulative. That is, we must continually re-evaluate our assessments based on
information and procedures gathered. It is not uncommon for an initial assessment and the corresponding
substantive audit work to be restructured as a result of new data. Indeed, it is the intent of current audit standards
that the audit be responsive to risks.
Our substantive procedures are selected to be responsive to the assessed risk and relevant assertion and
typically involve analytical procedures, third -party confirmation, estimation techniques, mini -max tests, trend
analyses, recomputations, corroboration with other tests, tests in total, sampling and comparisons to data
gathered in other municipal audits.
Risk assessment procedures would be incomplete without an evaluation of the adequacy of our evidence
obtained including internal control tests, any significant deficiencies or material weaknesses and substantive test
results. These factors are considered prior to the release of our opinion in a final re -assessment process
that includes our quality assurance review.
10
COMMUNICATION, COORDINATION, PROMPT SERVICE AND DELIVERY OF REPORTS - We will meet with
you at the start of each phase of work and conduct an exit conference at the end of each phase of work. This will
ensure you know everything we do, with plenty of time to address any issues.
Two key objectives for a well-run audit are to ensure timely communication of the audit results and to provide for
seamless coordination of the external auditors with staff. The concept is virtually identical to our Accounting
Issues Memorandum and detailed Interim and Closing Checklists that we typically prepare for our clients. The
Accounting Issues Memorandum concept was originated by one of our staff over two decades ago to function as
a partner's brief of an engagement's status. It worked so well we expanded it to all our audits and share it with our
clients. It has proven to be an indispensable communication and coordination tool ever since. This informal
memo condenses and summarizes the audit status and issues as of the end of our interim work. It includes
housekeeping matters, major and minor potential findings, scheduled audit fieldwork start and finish dates, etc.
We produce this memo right in your office before the conclusion of our interim work, so you have an idea of what
we've found so far and whether there are areas that need work.
Our Memorandum on Internal Control is drafted at year-end and may include significant issues raised with our
interim phase Accounting Issues Memorandum as well as issues arising from our year-end work. We review a
draft with you, so that you will have plenty of time to consider the facts and discuss our findings before the audit
results are presented to the Council.
We have always focused on reducing financial statement turn -around time. Our audit strategy emphasizes detail
planning and coordination of our staff and client staff to complete the audit as efficiently as possible. We have
found that completing all our work and our reports, if possible, as part of our fieldwork dramatically reduces the
time required to issue final reports to our clients. Our strategy allows our clients ample time to review all report
drafts before issuance, while ensuring that all reports are issued timely.
INTERNAL QUALITY ASSURANCE SYSTEM - Every one of our audit and assurance engagements has an
Engagement Partner responsible for the successful completion of the work as well as ensuring we maintain
quality levels that satisfy professional standards. We specifically structure our work for on-site Engagement
Partner participation while the audit is being conducted. This structure is by design to ensure we have active on
the job oversight of staff and timely completion of the work.
We have always subjected our audit and assurance engagements to a second Quality Assurance Review. This is
performed by a second partner that is not involved with the audit.
11
D. FEES
RFP QUESTION: Provide your fees for the proposed service.
Detail costs and hourly billing rates, as well as any proposed method of adjustment
in the cost of services for subsequent years of the engagement, if applicable.
TOTAL COST OF AUDIT - Our All -Inclusive Maximum Prices for the services specified in the Request for Proposal
for the fiscal years ending June 30, 2022 through June 30, 2027, are detailed on the next page. Our Total
All-inclusive Maximum Not to Exceed Prices for the services specified in the RFP are firm fixed fees.
WHAT OUR PRICE INCLUDES - Our price includes all the basic audit work and reports, statements and other
deliverables specified in your request for proposal. Our price also includes the items below at no additional cost:
1) Year-round support and telephone consultation on pertinent issues affecting your City.
2) Copies of our journal entries and our leadsheets used to support the amounts in your financial statements.
3) A Study Session for the Council and/or Audit Committee to discuss the audit process, financial statements
and recommendations.
4) Active Partner involvement in your work every year.
5) Our typed Interim Audit Checklist.
6) Our typed Annual Closing Checklist.
7) Our typed interim Accounting Issues Memorandum.
8) Preliminary draft financial statements and/or suggested revisions to the City's financial statement
disclosures at interim.
9) Overviews and summaries of upcoming pronouncements and regulation affecting the audited financial
statements.
10) Direct upload of general ledger data into our ProSystems trial balance software which is fully linked to
financial statement formats.
COST RATIONALE - We have always completed our work in the time budgeted and for the agreed upon fee. We
have never requested additional fees for work within the scope of the audit after our work was completed. As
always, we finish what we start, regardless of the accuracy of our budgets.
RFP QUESTION: Outline billing and payment expectations, including timing and method of payment.
FEES AND BILLINGS (METHOD OF PAYMENT) - Our fees are firm fixed prices. In determining our fees, we
understand that the City's records will be in condition to be audited; that is, transactions will be properly recorded in
the general ledger and subsidiary records, these accounting records and the original source documents will be
readily available to use, we will be furnished with copies of bank reconciliations and other reconciliations and
analyses prepared by the City and City personnel will be reasonably available to explain procedures, prepare audit
correspondence and obtain files and records.
Progress billings will be sent on the basis of actual audit work completed during the course of the engagement.
Interim billings do not cover a period of less than a calendar month. We do not bill for out-of-pocket expenses as
they are included in our stated all-inclusive maximum price.
We do not post separate rate structures for municipal audit work. We view this work as being every bit as
important and valuable as the work we perform for other clients and we put our best people on it. Any
consulting work you request will be performed at the same rates as our audit work.
IPA
TOTAL ALL-INCLUSIVE MAXIMUM PRICE SUMMARY AND
TOTAL ESTIMATED HOURS PER FISCAL YEAR
Audit Services 2021-22 2022-23 (1) 2023-24 (1) 2024-25 (1) 2025-26 (11 2026-27 (1) 1
City Audit (Annual Comprehensive Financial Report),
including web -ready ACFR PDF, Memorandum on
Internal Control (management letter) and SAS 114 letter
$56,870
$58,576
$60,333
$62,143
$64,007
$65,927
Single Audit (one major program) (2)
4,760
4.903
5.050
5.202
5.358
5.519
Child Development Program Audit
6,605
6,803
7,0071
7,217
7,434
7,657
Tranportation Development Act Report (TDA)
2,820
2,905
2,992
3,082
3,174
3,269
Appropriations (Gann) Limit Agreed Upon Procedures
916
943
971
1,000
1,030
1,061
Out-of-pocket expenses (3)
Total (all-inclusive maximum "not to exceed")
1 $71,9711.
$74,130
$76,353
$78,644
1 $81,003
$83,433
Optional Services (4):
City's Annual Report of Financial Transactions (State
ESTIMATED STANDARD
ANNUAL
HOURLY
POSITION
HOURS (5)
Controller's Report)
$4,920
$5,068
$5,220
$5,377
$5,538
$5,704
San Rafael Joint Powers Financing Authority State
12200
13500
Associates
30900
95.00
Administrative Staff
Controllers Report
$815
$839
$864
$890
$917
$945
NOTES:
(1) Our policy is to attempt to keep our clients fees constant after inflation. The current CPI for San Francisco Bay Area
Services Sector of the U.S. Department of Labor, Bureau of Labor Statistics for the San Francisco -Oakland Area
is 1.4% Therefore, fees for years subsequent to 2021 will be adjusted by the actual CPI, up to a maximum of 3%.
(2) Fee is per tested (major) program
(3) Out-of-pocket expenses are included in our standard hourly rate.
(4) The compilation of these reports was included in the engagement services in fiscal year 2021, but not included in the RFP.
(5) The RFP did not include a request for the breakdown of the hours by proposed engagement segment.
We would be happy to provide such a schedule, upon request
RFP QUESTION: Describe any remaining fees not already detailed above.
GASB No. 87, Leases, and Potential Increase in Audit Scope
Our consistent approach is to provide our clients with advance identification of new GASBs as they are issued. With every
audit, we provide overviews of new pronouncements including effective dates and we review these with City staff and, in
the year of implementation, we proforma new disclosures and add on additional data requests to our interim and closing
checklists. However, for the upcoming implementation of GASB Pronouncement 87, Leases, in fiscal year 2022, we
anticipate there will be an increase in the audit scope. We will not know the extent of the potential increase in audit scope,
if any, until we have additional conversations with City staff, and that change in scope could increase (or even decrease)
between now the end of and fiscal year 2022 if the City enters into new lease agreements or terminates existing
agreements. Therefore, once that information is known for fiscal year 2022, we will provide a cost estimate and addendum
to the engagement letter that will be based upon our standard hourly rates.
13
ESTIMATED STANDARD
ANNUAL
HOURLY
POSITION
HOURS (5)
RATES
Partners
46.50
$32500
Managers
50.50
20500
Supervisor
12200
13500
Associates
30900
95.00
Administrative Staff
850
8000
Total Annual Hours
536.50
NOTES:
(1) Our policy is to attempt to keep our clients fees constant after inflation. The current CPI for San Francisco Bay Area
Services Sector of the U.S. Department of Labor, Bureau of Labor Statistics for the San Francisco -Oakland Area
is 1.4% Therefore, fees for years subsequent to 2021 will be adjusted by the actual CPI, up to a maximum of 3%.
(2) Fee is per tested (major) program
(3) Out-of-pocket expenses are included in our standard hourly rate.
(4) The compilation of these reports was included in the engagement services in fiscal year 2021, but not included in the RFP.
(5) The RFP did not include a request for the breakdown of the hours by proposed engagement segment.
We would be happy to provide such a schedule, upon request
RFP QUESTION: Describe any remaining fees not already detailed above.
GASB No. 87, Leases, and Potential Increase in Audit Scope
Our consistent approach is to provide our clients with advance identification of new GASBs as they are issued. With every
audit, we provide overviews of new pronouncements including effective dates and we review these with City staff and, in
the year of implementation, we proforma new disclosures and add on additional data requests to our interim and closing
checklists. However, for the upcoming implementation of GASB Pronouncement 87, Leases, in fiscal year 2022, we
anticipate there will be an increase in the audit scope. We will not know the extent of the potential increase in audit scope,
if any, until we have additional conversations with City staff, and that change in scope could increase (or even decrease)
between now the end of and fiscal year 2022 if the City enters into new lease agreements or terminates existing
agreements. Therefore, once that information is known for fiscal year 2022, we will provide a cost estimate and addendum
to the engagement letter that will be based upon our standard hourly rates.
13
RFP QUESTION: Provide a list of the municipal agencies for which the respondent has provided audit
services for the past three calendar years.
CITY AND TOWN CLIENTS - The following table summarizes our most recent experience with audits of cities and
towns. We are responsible for all phases of the work on these clients. All of this work represents recurring
annual audit and related work; all this work and that presented in the table was completed on or before the
deadline from the first year listed for each client. Please also see the References Section for names and current
phone numbers for contacts on work quality and performance.
Population > 100,000
Population <100,000
Audits of City financial statements, Successor Agency, Healthcare
✓
✓
✓
Concord
District Financing Authority,Single Audit
2019 -Present
Yes
Yes
Yes
Audit of City financial statements, Successor Agency, Single Audit,
✓
'Daly Gty
Transportation Development Act Audit, Transportation Measure,
1992 -Present
J
✓
✓
1PAs audits
Yes
Yes
Yes
Audltof City finandal statements, Successor Agency, Single Audit,
✓
✓
✓
(Hayward
Transportation Development Act Audit, Transportation Measure,
2011 -Present
J
✓
✓
Financi ne Co-eperadenAudit
Yes
Yes
Yes
(Belvedere
Audit ofOtyfinancial statements, Successor Agency, Single Audi t,
2018 -Present
'
Santa Clara
Transportation Development Act Audit, Silicon Valley Power
2012 -Present
✓
J
✓
Audit
Yes
Yes
Yes
Population <100,000
14
Audltof Gtyflnancial statements, Successor Agency, Single Audit,
✓
✓
✓
,Alameda
ransportation Development Act Audit, Transportatl on Measures
2018 -Present
Yes
Yes
Yes
✓
,Atherton
Auditof Basic Financial Statements, Single Audit
2009- Present
Yes
Auditof Cuty financial statements, Successor Agency, Single Audit,
✓
✓
✓
(Belmont
Transportation Measure
1998 -Present
Yes
Yes
Yes
✓
✓
(Belvedere
Audit of Ciy financial statements
2018 -Present
'
Yes
Yes
Audit of City financial statements, Single Audit, Transportation
✓
✓
✓
'Benicia
Development Act Audit
2011- Present
Yes
Yes
Yes
Audit of Cityflrrencial statements, Successor Age ncy, Single Audit,
✓
✓
✓
(Brentwood
Transportation Development Act Audit
2007 -Present
Yes
Yes
Yes
(Brisbane
Audit of City financial statements, Successor Agency
2011 -Present
"
Audit of City financial statements, Single Audit, Transportation
✓
✓
✓
(Burlingame
2016 -Present
Development Act Audit;,
Yes
Yes
Yes
✓
✓
✓
(Davis
Audit of City financial statements, Single Audit
2015 -Present
Yes
Yes
Yes
✓
✓
✓
IElkGrove
Audit ofCityfinancial statements and Single Audit
2017 -Present
Yes
Yes
Yes
IFairfax
Auditof Basic Financial Statements
2009 -Present
'
Audit of City financial statements, Single Audit, Transportation
✓
✓
✓
(Half Moon Bay
2014 -Present
Development Act Audit
Yes
Yes
Yes
✓
J
'Lathrop
Audit of City financial statements, Single Audit
2011-2020
Yes
Yes
Yes
Auditof City financial statements, Single Audit, Transportation
J
J
J
(Los Altos
Measure
2014 -Present
Yes
Yes
Yes
Audit of City financial statements and North County Library
J
J
✓
'Los Altos Hills
Authority, Single Audit, Transportation Development Audit
2016- Present
Yes
Yes
Yes
Audit of City financial statements, Successor Agency, Single Audit,
J
J
.1'Manteca
Financing Authority Audit
1986- Present
Yes
Yes
Yes
Audit of City financial statements, Single Audit, Transportation
J
J
✓
IMartinez
Development Act Audit
2001 -Present
Yes
Yes
Yes
Audltof City financial statements, Successor Agency, Single Audit,
(Milpitas
Transportation Development Act Audit. Financing Corporation
1995 -Present
✓
✓
✓
Audit
Yes
Yes
Yes
Audit of City flnancialstatements, Successor Agency, Single Audit,
J
✓
✓
IMoraga
2012- Present
Transportation Development Ad Audit
Yes
Yes
Yes
Audits of City Basic Financial Statements and Sewerage Agency of
IMill Valley
2020 -Present
Southern Marin
Audit of City financial statements, Single Audit, Transportation
✓
✓
✓
(Morgan Hill
2015- Present
Develo mentAR Audit
Yes
Yes
Yes
14
CITYAND TOWN CLIENTS (Continued)
Client Name
Scope of Work
Client Start
Date
Annual
Comprehensive
Financial Report
Submission
GFOA Award
Single Audit
!San Bruno
Development Act Audit
2016- Present
J
✓
J
(Oakley
Auditof City Financial statements, Successor Agency, Single Audit
2000 -Present
✓
✓
J
!San Carlos
Transportation Development Act
2016- Present
Yes
Yes
Yes
Audit of City financial statements, Single Audit, Transportation
J
✓
✓
IDrinda
Development Act Audit
2015- Present
Yes
Yes
Yes
Audit of City financial statements, Single Audit, Transportation
✓
J
✓
(Pacifica
Development Act Audit, Transportation Measure
2015 -Present
Yes
Yes
Yes
Audit of City financial statements, Single Audit, Transportation
✓
✓
✓
(Pleasanton
Development Act Audit
2016-2020
Yes
Yes
Yes
�4uditofCity financial statements,Successor Agency, Single Audit,
✓
J
✓
(Pittsburg
Auditof City financial statements, Successor Agency, Single Audrt,
2011- Present
✓
✓
J
'South San Francisco
Transportation Development Act Audit, Retirement Plan Audit
2004- Present
Yes
Yes
Yes
IPortola Valley
Audit of Basic Financial Statements and Transportation Measure
2005- Present
'
Sutter Creek
,4udit of City financial statements, Successor Agency, Single Audit,
2015 -Present
'
•
(Redwood City
Transportation Development Act Audit, Audit of Port of Redwood
2019 -Present
Yes
City, Audits of Joint Power Authorities
Yes
Yes
Yes
As you can see from the client list above, we have a winning combination that has resulted in strong client loyalty
and retention. Several clients who left have returned after seeing the difference between our firm and our
competitors. Others have gone through a full proposal process and retained us such as the cities of
Brentwood, Milpitas, Oakley, Pittsburg, Santa Clara and South San Francisco.
RFP QUESTION: Provide the information (Name of Agency, Name and Title of Contact Person, Brief
Description of Scope of Services), for three client cities that are similar in size and scope to the project
requested by this proposal.
REFERENCES- Our references are listed below. Please contact these clients for further information if you wish or
call any of our clients for a reference (we would be happy to provide contact information for any of our current or
previous clients).
15
Audit of City financial statements, Single Audit, Transportation
✓
✓
✓
!San Bruno
Development Act Audit
2016- Present
Yes
Yes
Yes
Audit of City financial statements, Successor Agency, Single Audit,
✓
✓
J
!San Carlos
Transportation Development Act
2016- Present
Yes
Yes
Yes
Audit of City financial statements, Successor Agency, Single Audit,
✓
✓
✓
:San Leandro
Transportation Development Act Audit, Transportation Measures
2011- Present
Yes
Yes
Yes
Audit of City financial statement S,S=essorAgency, Single Audit,
✓
✓
✓
!San Pablo
Transportation Development Ae[Audit
1995- Present
Yes
Yes
Yes
✓
✓
✓
:San Rafael
Auditof Cityfinancial statements, Successor Agency, Single Audit
2007- Present
Yes
Yes
Yes
Auditof City financial statements, Successor Agency, Single Audrt,
✓
✓
J
'South San Francisco
TransportationDevelopment Act Audit, Transportation Measure
2004- Present
Yes
Yes
Yes
✓
Sutter Creek
Audit of Basic Financial Statements, Single Audit
2015 -Present
'
•
Yes
Audit of Basic FinandaIStore ments,SuecessorAgency, Single
'Turlock
Audit, Transportation Development Act Audit, Financing
2013 -Present
Authority Audit, Abandoned Vehicle Abatement Program
Yes
✓
J
✓
'Watsonville
Audit of the City financial statements, Single Audit
2017 -Present
Yes
Yes
Yes
As you can see from the client list above, we have a winning combination that has resulted in strong client loyalty
and retention. Several clients who left have returned after seeing the difference between our firm and our
competitors. Others have gone through a full proposal process and retained us such as the cities of
Brentwood, Milpitas, Oakley, Pittsburg, Santa Clara and South San Francisco.
RFP QUESTION: Provide the information (Name of Agency, Name and Title of Contact Person, Brief
Description of Scope of Services), for three client cities that are similar in size and scope to the project
requested by this proposal.
REFERENCES- Our references are listed below. Please contact these clients for further information if you wish or
call any of our clients for a reference (we would be happy to provide contact information for any of our current or
previous clients).
15
City of Brentwood— A client since 2007
Address —150 Park Way, Brentwood, CA 94513
Engagement Partner — Katherine Yuen (previously Amy Meyer)
Principal Contact — Kerry Breen, City Treasurer/Director of Finance & Information Systems,
(925) 516-5436
Work Scope and Reports
Comprehensive Annual Financial Report (GFOA Award Winner)
Memorandum on Internal Control and Required Communications
Single Audit Act Report
Transportation Development Act Audit Report
Proposition 111 Agreed Upon Procedures Report
Annual Reports of Financial Transactions for the City (State Controller's Report)
City of Daly City— A client since 1992
Engagement Partner — Amy Meyer
Principal Contact — Tim Nevin, Director of Finance and Administrative Services, (650) 991-8040
Daneca Halvorson, Financial Services Manager, (650) 991-8047
Work Scope and Reports:
Comprehensive Annual Financial Report (GFOA Award Winner)
Memorandum on Internal Control and Required Communications
Single Audit Act Report
Proposition 111 Agreed Upon Procedures Report
Measures A and W Compliance Reports
San Mateo County Pre -hospital Emergency Medical Services Group JPA Financial Statements
Annual Report of Financial Transactions for the City (State Controller's Report)
Transportation Development Act Audit
City of Belmont— A client since 1998
Engagement Partner — Amy Meyer
Principal Contact — Grace Castaneda, Finance Director, (650) 595-7436
Work Scope and Reports:
Comprehensive Annual Financial Report (GFOA Award Winner)
Memorandum on Internal Control and Required Communications
Single Audit Act Report
Belmont San Carlos Fire Department Financial Statements
Transportation Development Act Audit
Measures A and W Compliance Reports
Measure I Compliance Report (Local Measure)
Proposition 111 Agreed Upon Procedures Reports for the City and for the Belmont Fire Protection District
Annual Reports of Financial Transactions for the City, Belmont San Carlos Fire Department, Belmont Fire Protection District
and the Joint Powers Financing Authority (State Controller's Reports)
RFP QUESTION: Include a work schedule and note key project milestones and timelines for
deliverables. Identify any assumptions used in developing the schedule. Any assumptions regarding
turnaround time for City Staff review should be clearly noted.
TIMELINE FOR AUDIT WORK - We have timed our audit to complete all your reports so that they are ready
to print by your deadlines. Of course, our timetable may be adjusted to fit your needs. We will start our work
as soon as you appoint us as your auditors, with an entrance conference once the contract is executed.
The interim and year-end phases of the audit will take approximately one to two weeks. In the first year of the
audit, we may schedule an additional week for our staff to review long-term agreements and prepare our audit
workpapers to ensure a smooth transition throughout the audit process. And, the timing of the Single Audit work
will be coordinated with the year-end field work, but the length of time needed for that work will depend upon the
number of tested programs.
iry
F. IMPLEMENTATION SCHEDULE (Continued)
The schedule below is a summarized version based on our previous timeline established with the City's Finance
Department staff, but of course it can be modified to fit the City's needs:
■ March and April
o Interim Audit Fieldwork (interim checklist sent to the City at least two weeks prior to the start of
fieldwork)
o Interim Audit Exit Conference
o Maze will go over the Interim Accounting Issues Memo
o Maze to conduct Interim Fieldwork for Childcare Audit
■ May, June and July
o Maze will provide the Closing Checklist
o Maze will provide confirmation templates and markups to letters
o City will provide signed copies of the confirmation letters to Maze
o City to provide listing of Attorneys used in FY2022 along with amounts paid to each
o City to provide Attorney letter confirmations to Maze's office to send out, after Maze makes
selection of Attorney letters to be sent
• TBD (Prior to Year End Fieldwork)
o Maze to audit GASB 68 and 75 information prepared and provided by the City
o Maze to conduct final TDA audit for FY 22, if needed
• August 29:
o City to email trial balance to Maze
• Week of September 5 (September 51' is a Holiday):
o Maze to prepare analytical review and send to the City
o City to upload final checklist items to Maze's secure file sharing portal
• Weeks of September 12 and September 19:
o Final phase of financial statement audit
o Maze to conduct Childcare final phase audit
o Maze to provide the fund financial statements draft for the City to review
• Weeks of September 20 and October 3:
o Maze to provide financial statements roll -up for City to review
o City to provide draft of transmittal letter, statistical section and introductory section of the Annual
Comprehensive Financial Report
o Maze to provide Annual Comprehensive Financial Report draft (will incorporate GFOA comments
except for those related to City prepared documents in Annual Comprehensive Financial Report)
and Open Items List
• Week of October 10:
o Maze to provide the following report drafts to the City:
• Memorandum of Internal Control (MOIC)
• Gann Appropriations Limit AUP
• Transportation Development Act (TDA)
• Childcare Financial Statements
• Draft of management representation letters for (City, TDA and Childcare)
o City to provide the following to Maze:
• Edits for Annual Comprehensive Financial Report
• MD&A for Annual Comprehensive Financial Report ready for Maze to tick and tie and
review
o San Rafael Sanitary District (SRSD) to provide a copy of the Basic Financial Statements with
signed audit opinion and Management Letter (if any)
o Maze to perform input of SRSD information
o Maze to send reports to internal Pre -Issuance Review (PIR)
• Weeks of October 17 and 24:
o City to provide:
• Edits to the following reports:
• Memorandum on Internal Control (MGIC)
• Transportation Development Act (TDA)
• Childcare FS Draft
• Management responses to MGIC, and findings for Childcare (if any)
17
Audit Timeline (Continued)
• Weeks of October 17 and 24 (Continued):
o Maze will also incorporate PIR changes for all reports and edits from City on all reports
o Maze to provide the following:
■ Proposed edits on the MD&A
• Revised Annual Comprehensive Financial Report draft
o Maze to provide the following revised report drafts to the City:
• Memorandum of Internal Control (MGIC)
• Gann Appropriations Limit AUP
• Transportation Development Act (TDA)
• Childcare FS draft
o City to provide:
■ Final edits to all reports
• Signed management representation letters (City, TDA and Childcare)
• TBD in October:
o City to visit on-site at Maze office to review final draft and Maze to provide revised draft the next
day
o Maze to provide final drafts with page numbers
o City to review final report and provide any pagination edits
o City to approve issuance of reports
• Week of October 31:
o Maze to provide PDFs of reports.
• By November 7 and 14, respectively:
o City to provide the Schedule of Federal Expenditure Award (SEFA) to Maze
o Maze to provide single audit checklist to the City to prepare for the single audit fieldwork
• TBD in November:
o Presentation of reports to the Council
o Maze to provide bound copies of reports and 1 web -ready PDF.
• Week of December 5:
o Maze to complete single audit fieldwork
EXTERNAL QUALITY CONTROL REVIEW/PEER REVIEW - We are members of the Quality Review Program of
the AICPA, which means we subject ourselves to a peer review of our workpapers and quality control procedures
every three years by independent accountants specializing in such work. Our most recent peer review was
completed in 2021; we again received a rating of pass, the highest level of assurance possible. This peer
review included a review of several governmental and non-profit audit engagements. A copy of or most recent peer
review opinion is located at the end of this section.
A copy of our most recent external peer review report can be found here: https:!lwww.mazeassociates.comlwp-
co n tentlu p l oa d sl202111 012 02 4 -Peer- Review_ p df
FEDERAL OR STATE DESK OR FIELD REVIEWS - We have not been subject to any State Desk or Field Reviews
of our audits during the past three years. In addition, we have not received any disciplinary action taken or
pending action against us during the past three years with state regulatory bodies or professional organizations.
LITIGATION - We have not been sued over poor work quality, nor have we paid any such claims out of court in
the past three years, and there are no current and we are not aware of any potential lawsuits.
LICENSE TO PRACTICE IN CALIFORNIA - We are properly licensed California Certified Public Accountants. We
are members of the Government Finance Officers Association (GFOA) and the California Society of Municipal
Finance Officers (CSMFO) as well as the American Institute of Certified Public Accountants (AICPA) and the
California Society of Certified Public Accountants (CaICPA).
18
CONTRACT ROUTING FORM
INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below.
TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER:
Contracting Department: Finance
Project Manager: Nadine Hade Extension: Click here to enter text
Contractor Name: Maze and Associates
Contractor's Contact: Amy Meyer— 925-930-0902 ext 271 Contact's Email: amym@mazeassociates.com
❑ FPPC: Check if Contractor/Consultant must file Form 700
Step
RESPONSIBLE
DESCRIPTION
COMPLETED
REVIEWER
DEPARTMENT
DATE
Check/initial
1
Project Manager
a. Email PINS Introductory Notice to Contractor
1/21/2022
2/9/2022
b. Email contract (in Word) and attachments to City
Attorney c/o Laraine.Gittens@cityofsanrafael.org
2
City Attorney
a. Review, revise, and comment on draft agreement
2/17/2022
X❑ LG
and return to Project Manager
2/10/2022
❑X LG
b. Confirm insurance requirements, create Job on
PINS, send PINS insurance notice to contractor
3
Department Director
Approval of final agreement form to send to
Clic II01 ta
Z ulu_k
contractor
ttr'ih�c `f
dale -
4
Project Manager
Forward three (3) originals of final agreement to
Click here to
❑
contractor for their signature
enter a date.
5
Project Manager
When necessary, contractor -signed agreement
❑ N/A
agendized for City Council approval *
*City Council approval required for Professional Services
E]
Agreements and purchases of goods and services that exceed-/
Or
$75,000; and for Public Works Contracts that exceed $175,000
Click here to
PRINT
Project Manager
Date of City Council approval
enter a date.
CONTINUE ROUTING PROCESS WITH HARD COPY
Forward signed original agreements to City
6
_-Attorney
City Attorney
with printed copy of this routing form
Review and approve hard copy of signed
7
agreement
8
City Attorney
Review and approve insurance in PINS, and bonds
2 )2� I�22,
(for Public Works Contracts)
J/
9 City Manager/ Mayor
Agreement executed by City Council authorized
�' y
official
l�
10 City Clerk
Attest signatures, retains original agreement and
II
forwards copies to Project Manager
I a IF LCL —