HomeMy WebLinkAbout04 APPROVE AGREEMENT FOR INDEPENDENT AUDIT SERVICES DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB 4
Agenda Item _ DS
Reviewed:
AGENDA REPORT City Manager _ DS
ga
Finance Director
MEETING DATE: JUNE 15, 2021
TO: MATTHEW S. WEST, CITY MANAGER
FROM: JASON AL-IMAM, FINANCE DIRECTOR/CITY TREASURER
SUBJECT: APPROVE AGREEMENT FOR INDEPENDENT AUDIT SERVICES
SUMMARY:
On March 29, 2021, the City issued a Request for Proposal (RFP) for Professional Auditing
Services. The City received eight (8) proposals, and on May 26, 2021, the Audit Commission
interviewed the highest ranked audit firms. Based on the advisement of the Audit Commission, it
is recommended that the City Council consider the appointment of Davis Farr LLP to serve as the
City's independent auditor.
RECOMMENDATION:
It is recommended, based on the advisement of the Audit Commission, that the City Council approve
Davis Farr LLP as the independent certified public accounting firm to perform auditing services for
three years beginning with the fiscal year ending June 30, 2021, with the option of providing the
same services for the two subsequent fiscal years. Staff also requests Council authorize the City
Manager to execute the agreement with Davis Farr LLP subject to any non-substantive modifications
as may be deemed necessary and/or recommended by the City Attorney.
FISCAL IMPACT:
The all-inclusive maximum fee proposed by Davis Farr LLP for the fiscal year ending June 30, 2021
is $43,500, which is $2,325 lower than the prior year's audit fee. The Proposed Biennial Budget for
2021-2023 includes sufficient funding to cover the scope of work associated with this agreement.
CORRELATION TO THE STRATEGIC PLAN:
The recommendation correlates to the strategic plan by implementing Goal C, sustain long-term
financial strength with adequate reserves and enhanced capacity to provide a sustainable level of
City services.
DISCUSSION:
Each year an independent audit of the City is conducted in conformity with generally accepted
auditing standards (GAAS). Those standards require that an independent Certified Public
Accountant plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. Clifton Larson Allen LLP (who recently acquired
White Nelson Diehl Evans) recently concluded their work as the City's auditors upon the
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
Approve Agreement for Independent Audit Services Page 2 of 2
completion of the audit for Fiscal Year 2019/20. On March 29, 2021, the City issued a Request
for Proposal (RFP) for Professional Auditing Services. The RFP was posted on the City's website,
ProcureNow (an online public bidding platform), and distributed via the California Society of
Municipal Finance Officers (a statewide professional associated with over 2,000 members). The
City also emailed the RFP to six (6) firms. Proposals were due by May 3, 2021.
The City received eight (8) proposals, which were evaluated based on qualifications &experience
of the audit team, audit fees, responsiveness in clearly stating their understanding of the work to
be performed, service capacity/time commitment of key staff, and references. Clifton Larson Allen
LLP, Davis Farr LLP, and Lance, Soll & Lunghard LLP were the highest ranked audit firms.
On May 26, 2021, the three highest ranked audit firms were interviewed by the Audit Commission.
Following the interviews with each firm, the Audit Commission discussed and evaluated each firm
based on the following principal factors:
• qualifications and experience of the audit team
• the ability of the audit firm to perform a quality audit
• demonstrated commitment to the state and local government audit practice
Davis Farr LLP was ranked the highest based on the aforementioned principal factors and also
considering proposed costs. Therefore, the Audit Commission recommended that the City Council
consider the appointment of Davis Farr LLP to serve as the City's independent auditor.
Davis Farr LLP is a full-service regional accounting firm, which has extensive experience in
providing audit services to federal, state and local governments. The audit team will be headed
by Jennifer Farr, Partner, who has over 20 years of experience in local government auditing. She
is the current Chair of the Government Accounting and Audit Committee of the Cal CPA Society.
She is also a frequent speaker on matters pertaining to technical issues and new Governmental
Accounting Standards Board (GASB) pronouncements.
DocuSigned by,
gin a1-?".
8WSCC3AFOCB4AEE..
Jason AI-Imam
Finance Director/City Treasurer
Attachment: Professional Services Agreement
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
PROFESSIONAL SERVICES AGREEMENT
AUDIT SERVICES
THIS AGREEMENT FOR PROFESSIONAL SERVICES (the"Agreement")is made and
entered into this day of June, 2021 ("Effective Date") by and between the City of Tustin, a
California general law city ("City") and Davis Farr LLP ("Firm").
RECITALS
A. City requires the services of Firm to perform professional audit services for the City
and related accounts.
B. City circulated the Request for Proposal for annual auditing services attached hereto
as Exhibit A (the "RFP"), and in response Firm submitted to City a Technical Audit Proposal
attached hereto as Exhibit B(the"Proposal")to provide such services to City pursuant to the terms
of this Agreement.
C. Based on its experience, education, training, and reputation, Firm is qualified to
provide the necessary services to City for the project and desires to provide such services.
D. City desires to retain the services of Firm for the project.
NOW, THEREFORE, in consideration of the promises and mutual agreements contained
herein, City agrees to retain and does hereby retain Firm and Firm agrees to provide services to
the City as follows:
1. FIRM SERVICES
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement,
Firm shall provide those services specified in the RFP and the Proposal (hereinafter referred to as
the"Scope of Services"). In the event of any conflict or inconsistency between the terms contained
in the RFP and the Proposal, the terms set forth in the RFP shall govern; and in the event of any
conflict or inconsistency in the terms of the Scope of Services and the terms set forth in the body
of this Agreement,the terms set forth in the body of this Agreement shall govern.
1.1.1 Additional Services. Additional services beyond those described in the
Scope of Services, and additional compensation for additional services, must be approved in
writing by City in the manner set forth in Section 3.3 ("Changes") of this Agreement.
1.2 Compliance with Law. All services rendered under this Agreement shall be
provided by Firm in accordance with all applicable City, federal, state, and local laws, statutes,
and ordinances and all lawful orders, rules, and regulations promulgated thereunder.
1.3 Licenses and Permits. Firm shall obtain at its sole cost and expense such licenses,
permits, and approvals as may be required by law for the performance of the services required by
i
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
this Agreement. Firm represents and warrants that it or its employees possess all professional
licenses required to provide the professional services with the Scope of Services.
1.4 Familiarity with Work. By executing this Agreement, Firm warrants that Firm
(a) has thoroughly investigated and considered the work to be performed, (b)has investigated the
site of the work and become fully acquainted with the conditions there existing, (c) has carefully
considered how the work should be performed, and(d) fully understands the facilities,difficulties
and restrictions attending performance of the work differing from those inherent in the work or as
represented by City, Firm shall immediately inform City of such fact and shall not proceed with
any work except at Firm's risk until written instructions are received from the Contract Officer.
1.5 Care of Work. As a material inducement for City to enter into this Agreement,
Firm represents and warrants that Firm is a provider of first class work and professional services
and that Firm is experienced in performing the Services contemplated herein and, in light of such
status and experience, Firm covenants that it shall follow the highest professional standards in
performing the Services required hereunder. For purposes of this Agreement, the phrase "highest
professional standards" shall mean those standards of practice recognized as high quality among
well-qualified and experienced professionals performing similar work under similar
circumstances. In addition,Firm shall adopt and follow reasonable procedures and methods during
the term of the Agreement to prevent loss or damage to materials, papers, or other components of
the work, and shall be responsible for all such damage until acceptance of the by City, except such
loss or damages as may be caused solely by City's own wrongful acts or negligence.
2. TIME FOR COMPLETION.
The time for completion of the services to be performed by Firm is an essential condition
of this Agreement. Firm shall prosecute regularly and diligently the work of this Agreement
according to the agreed upon schedule of performance set forth in the Scope of Services. Firm
shall not be accountable for delays in the progress of its work caused by any condition beyond its
control and without the fault or negligence of Firm. Delays shall not entitle Firm to any additional
compensation regardless of the party responsible for the delay.
3. COMPENSATION OF FIRM
3.1 Compensation of Firm. Total compensation for the services hereunder shall not
exceed Forty-Three Thousand Five Hundred Dollars ($43,500.00) for the fiscal year ending June
30,2021,Forty-Six Thousand Dollars($46,000.00)for the fiscal year ending June 30,2022,Forty-
Four Thousand Four Hundred Dollars ($44,400.00) for the fiscal year ending June 30, 2023 and,
if the City exercises its option to extend the engagement pursuant to Section 4.4, Forty-Five
Thousand Three Hundred Dollars($45,300.00)for the fiscal year ending June 30,2024, and Forty-
Six Thousand Two Hundred Forty Dollars ($46,240.00) for the fiscal year ending June 30, 2025
as set forth in the Scope of Services (the "Maximum Contract Amount").
2
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
Included within the compensation are all of Firm's ordinary office and overhead expenses incurred
by its agents and employees, including mileage,meetings with City representatives and incidental
costs to perform the stipulated services, including without limitation reproduction costs,telephone
expenses, and transportation expenses. Such expenses are subject to and included within the
Maximum Contract Amount. The Maximum Contract Amount shall also include the attendance
of Firm at all Project meetings reasonably deemed necessary by the City. Firm shall not be entitled
to any increase in the Maximum Contract Amount for attending these meetings. Firm hereby
acknowledges that it accepts the risk that the services and expenses identified in the Scope of
Services may be more costly and/or time-consuming than Firm anticipates, that Firm shall not be
entitled to additional compensation therefore, and that the provisions of Section 3.3 shall not be
applicable to the services identified in the Scope of Services. The maximum amount of City's
payment obligations under this section are the amounts specified herein. The services shall be
billed to the City at the hourly rate set forth in Exhibit "B" however, if the City's maximum
payment obligation under the Maximum Contract Amount is exceeded, Firm shall nevertheless
complete the Work without liability on the City's part for further payment beyond the Maximum
Contract Amount.
3.2 Method of Payment. In any month in which Firm wishes to receive payment,Firm
shall no later than the fifteenth working day of the succeeding month, submit to City in the form
approved by City, an invoice for services satisfactorily completed in the calendar month preceding
the invoice. Payments shall be based on the pricing schedule or hourly rates as set forth in the
schedule of fees in the Scope of Services for authorized services performed. City shall pay Firm
all uncontested sums based on invoices which are approved by City consistent with this
Agreement, within thirty (30) days of receipt of Firm's invoice.
3.3 Changes. In the event of any change or changes in the Scope of Services, or the
performance of services that are outside the Scope of Services, is requested by either party, the
revision to the Scope of Services shall not take effect until approved in writing and approved in
accordance with this Section. Revisions to the Scope of Services shall be made only by execution
of a written amendment to this Agreement, setting forth with particularity all terms of such
amendment, including, but not limited to, any additional fees. City Council approval of an
amendment shall be required for changes resulting in the Maximum Contract Amount on an annual
basis being exceeded by more than $10,000. Changes not requiring City Council approval may be
approved in writing by the Contract Officer.
3.4 Appropriations. The Agreement is subject to and contingent upon funds being
appropriated therefore by the City Council for each fiscal year covered by the Agreement. If such
appropriations are not made,this Agreement shall automatically terminate without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
4.2 Schedule of Performance. All services rendered pursuant to this Agreement shall
be performed pursuant to the agreed-upon schedule of performance set forth in the Scope of
Services. The extension of any time period must be approved in writing by the Contract Officer.
If no schedule of performance is set forth in the Scope of Services,then satisfactory completion of
3
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
all services shall occur prior to the expiration of the Term, or any extension thereof, set forth in
Section 4.4.
4.3 Force Maieure. The time for performance of services to be rendered pursuant to
this Agreement may be extended because of any delays due to unforeseeable causes beyond the
control and without the fault or negligence of Firm, including, but not limited to, acts of God or a
public enemy, acts of the government,fires,earthquakes,floods, epidemic,quarantine restrictions,
riots, strikes, freight embargoes, and unusually severe weather if Firm shall within ten (10) days
of the commencement of such condition notify the Contract Officer who shall thereupon ascertain
the facts and the extent of any necessary delay, and extend the time for performing the services for
the period of the enforced delay when and if in the Contract Officer's judgment such delay is
justified, and the Contract Officer's determination shall be final and conclusive upon the parties to
this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 8.5, the term of this
Agreement shall commence on the Effective Date and conclude with the completion of all services
required under this Agreement,which shall occur by no later than June 30, 2022, 2023, and 2024
for the financial statements for fiscal years 2020/21, 2021/22, and 2022/23 respectively. City at
its sole discretion shall have the option to extend the engagement for up to two subsequent one-
year terms to include financial statements for fiscal years 2023/24 and 2024/25. The City may
exercise its option by the providing written notice to Firm by the close of the immediately
preceding fiscal year. If the City so elects to extend the term, Firm shall complete all services
required under this Agreement by no later than June 30, 2025 and 2026 respectively after which
time this Agreement will expire.
4.4.1 Survival of Expiration/Termination. The following sections of this
Agreement shall survive any expiration or termination of this Agreement: Section 3.4; Section 5.4
(including sections 5.4.1 through 5.4.3); Sections 6.1 (including sections 6.1.1 through 6.1.6) and
6.2; Section 7.2,7.3, 7.4(including sections 7.4.A,7.4.13, and 7.4.c)and 7.5; Sections 8.1, 8.2, 8.3,
8.4, 8.5, 8.6; Sections 9.1, and 9.2; Sections 10.1, 10.2, 10.3, 10.4, 10.5, 10.6 and 10.7.
5. COORDINATION OF WORK
5.1 Representative of Firm. The following principal of Firm is hereby designated to
be the principal and representative of Firm authorized to act in its behalf with respect to the services
and work specified herein and make all decisions in connection therewith: Jennifer Farr, Partner.
It is expressly understood that the experience, knowledge, education, capability, and reputation of
the foregoing principal is a substantial inducement for City to enter into this Agreement.
Therefore, the foregoing principal shall be responsible during the term of this Agreement for
directing all activities of Firm and devoting sufficient time to personally supervise the services
hereunder. The foregoing principal may not be changed by Firm without express written approval
of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the Finance Director, or his/her
designee. It shall be the Firm's responsibility to keep the Contract Officer fully informed of the
progress of the performance of the services and Firm shall refer any decisions that must be made
4
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
by City to the Contract Officer. Unless otherwise specified herein, any approval of City required
hereunder shall mean the approval of the Contract Officer.
5.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, education, capability, and reputation of Firm, its principals and employees, were a
substantial inducement for City to enter into this Agreement. Therefore, Firm shall not contract
with any other individual or entity to perform in whole or in part the services required hereunder
without the express written approval of City. In addition, neither this Agreement nor any interest
herein may be assigned or transferred,voluntarily or by operation of law,without the prior written
approval of City.
5.4 Independent Contractor.
5.4.1 The legal relationship between the Parties is that of an independent
contractor, and nothing herein shall be deemed to make Firm a City employee. During the
performance of this Agreement, Firm and its officers, employees, and agents shall act in an
independent capacity and shall not act as City officers or employees. The personnel performing
the Services under this Agreement on behalf of Firm shall at all times be under Firm's exclusive
direction and control. Neither City nor any of its officers, employees, or agents shall have control
over the conduct of Firm or any of its officers, employees, or agents, except as set forth in this
Agreement. Firm,its officers,employees,or agents shall have no voice in the selection,discharge,
supervision, or control of Firm's employees, servants,representatives, or agents, or in fixing their
number, compensation, or hours of service. Firm shall pay all wages, salaries, and other amounts
due its employees in connection with this Agreement and shall be responsible for all reports and
obligations respecting them, including but not limited to social security income tax withholding,
unemployment compensation, workers' compensation, and other similar matters. City shall not in
any way or for any purpose be deemed to be a partner of Firm in its business or otherwise a joint
venturer or a member of any joint enterprise with Firm. Firm shall not at any time or in any manner
represent that it or any of its agents or employees are agents or employees of City.
5.4.2 Firm shall not incur or have the power to incur any debt, obligation, or
liability against City,nor bind City in any manner.
5.4.3 No City benefits shall be available to Firm,its officers, employees, or agents
in connection with any performance under this Agreement. Except for professional fees paid to
Firm as provided for in this Agreement, City shall not pay salaries, wages or other compensation
to Firm for the performance of Services under this Agreement. City shall not be liable for
compensation or indemnification to Firm, its officers, employees, or agents,for injury or sickness
arising out of performing Services hereunder. If for any reason any court or governmental agency
determines that the City has financial obligations, other than pursuant to Sections 3.1 and 3.3
herein, of any nature relating to salary, taxes, or benefits of Firm's officers, employees, servants,
representatives, subcontractors, or agents, Firm shall indemnify City for all such financial
obligations.
5.5 Personnel. Firm agrees to assign the individuals named in Exhibit"B" to perform
the services set forth herein. Firm shall not alter the assignment of the personnel without the prior
5
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
written approval of the Contract Officer. The City shall have the unrestricted right to order the
removal of any personnel assigned by Firm by providing written notice to Firm.
5.6 Conflicts of Interest. Firm covenants that it presently has no interest and shall not
acquire any interest, direct or indirect, which would conflict in any manner or degree with the
performance of the services contemplated by this Agreement. No person having such interest shall
be employed by or associated with Firm.
6. INSURANCE AND INDEMNIFICATION
6.1 Insurance. Firm shall procure and maintain, at its sole cost and expense,in a form
and content satisfactory to City,the insurance described herein for the duration of this Agreement,
including any extension thereof, or as otherwise specified herein, against claims which may arise
from or in connection with the performance of the service hereunder by Firm, its agents,
representatives,or employees. Such insurance shall be kept in full force and effect during the term
of this Agreement and any Extension thereof approved by the City. The procuring of such
insurance and the delivery of policies, certificates, and endorsements evidencing the same shall
not be construed as a limitation of Firm's obligation to defend and indemnify City, its elected
officials, officers, agents, employees, and volunteers.
6.1.1 Minimum Insurance Coverage. Except as otherwise authorized below for
professional liability (errors and omissions) insurance, all insurance provided pursuant to this
Agreement shall be on an occurrence basis. The minimum types and amount of insurance required
hereunder shall be as follows:
A. Errors and Omissions Insurance. Firm shall obtain and maintain in full
force and effect throughout the term of this Agreement and any extensions approved by the City,
professional liability (errors and omissions)insurance coverage in an amount of not less than Five
Million Dollars ($5,000,000.00)per claim or occurrence with an aggregate of Ten Million Dollars
($10,000,000.00), in accordance with the provisions of this section.
(1) Firm shall either: (a) certify in writing to the City that Firm is unaware
of any professional liability claims made against Firm and is unaware of any facts which may lead
to such a claim against Firm; or(b)if Firm does not provide the certification pursuant to (a),Firm
shall procure from the professional liability insurer an endorsement providing that the required
limits of the policy shall apply separately to claims arising from errors and omissions in the
provision of services pursuant to this Agreement.
(2) If the policy of insurance is written on a"claims made"basis,the policy
shall be continued in full force and effect at all times during the term of this Agreement, and for a
period of three (3) years from the date of the completion of the Services provided hereunder, and
each such policy term shall cover "prior acts" occurring during all periods during which services
are being provided pursuant to this Agreement. The coverage for prior acts shall be evidenced by
either a new policy evidencing no gap in the prior acts coverage period, or by obtaining separate
extended"tail" coverage with the present or new carrier or other insurance arrangements providing
for complete prior acts coverage, either of which shall be subject to the written approval by the
Contract Officer.
6
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
(3) In the event the policy of insurance is written on an"occurrence" basis,
the policy shall continue in full force and effect during the term of this Agreement, or until
completion of the Services provided for in this Agreement, whichever is later. In the event of
termination of the policy during this period,new coverage shall immediately be obtained to ensure
coverage during the entire course of performing the Services under the terms of this Agreement.
B. Workers' Compensation Insurance. Firm shall obtain and maintain, in full
force and effect throughout the term of this Agreement, workers' compensation insurance in at
least the minimum statutory amounts, and in compliance with all other statutory requirements, as
required by the State of California, and Employer Liability Insurance with a limit of no less than
One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Firm agrees to
waive and obtain endorsements from its workers' compensation insurer waiving subrogation rights
under its workers' compensation insurance policy against the City, its council members, officers,
employees, and agents and to require each of its subcontractors, if any, to do likewise under their
workers' compensation insurance policies.
C. Commercial General Liability Insurance. Firm shall obtain and maintain,
in full force and effect throughout the term of this Agreement, a policy of comprehensive general
liability insurance with limits of at least One Million Dollars ($1,000,000.00)per occurrence,Two
Million Dollars ($2,000,000.00) in the general aggregate, and Two Million Dollars
($2,000,000.00)for products and completed operations. Firm shall either: (a)certify in writing to
the City that Firm is unaware of any liability claims made against Firm, and is unaware of any
facts which may lead to such a claim against Firm; or(b)if Firm does not provide the certification
pursuant to (a), Firm shall procure from the commercial general liability insurer an endorsement
providing that the required limits of the policy shall apply separately to occurrences during the
rendition of services pursuant to this Agreement.
D. Business Automobile Insurance. Firm shall obtain and maintain, in full
force and effect throughout the term of this Agreement, a policy of business automobile liability
insurance written on a per occurrence basis with a single limit liability in the amount of One
Million Dollars ($1,000,000.00) bodily injury and property damage. The policy shall include
coverage for owned, non-owned, leased, and hired cars.
6.1.2 Sufficiency of Insurers. Insurance required herein shall be issued by a
licensed company authorized to transact business in the State by the Department of Insurance for
the State of California with a current rating of A-:VII or better(if an admitted carrier), or a current
rating of A:X or better if offered by a non-admitted insurer listed on the State of California List of
Approved Surplus Lines Insurers (LASLI), by the latest edition of A.M. Best's Key Rating Guide,
except that the City will accept workers' compensation insurance from the State Compensation
Fund.
6.2.3 Endorsement and Verification of Coverage. Prior to commencement of
services hereunder, Firm shall obtain and deliver to City approved insurance endorsements
providing all of the following: (1) insurance coverage shall be primary insurance as respects City
and its respective elected officials, officers, employees, agents, and volunteers; and (2) any
insurance or self-insurance maintained by City and its respective elected officials, officers,
employees, agents, and volunteers shall be in excess of Firm's insurance and shall not contribute
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
with it; and(3) as to the commercial general liability and automobile liability policy, the City and
its respective elected officials, officers, employees, agents, and volunteers shall be endorsed as
additional insured in accordance with standard ISO additional insured endorsement form
CG2010(1185) or equivalent language (Additional insured endorsements are not required for
Professional Liability or Workers' Compensation policies); and (4) as to Workers' Compensation
Insurance, the insurer waives all rights of subrogation and contribution it may have against City,
its elected officials, officers, employees, agents, and volunteers.
Firm shall furnish City with both original certificates of insurance and all required
endorsements, effecting all of the coverages required by this Agreement. The certificates and
endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf.
All proof of insurance is to be received and approved by the City before work commences. City
reserves the right to require Firm's insurers to provide complete, certified copies of the required
insurance policies at any time.
Each insurance policy required by this section shall be endorsed to state that coverage shall
not be suspended, voided, cancelled, or modified by either Party, or reduced in coverage or in
limits, except after thirty (30) days prior written notice by First Class U.S. Mail, postage-prepaid,
has been provided to the City. Notwithstanding the foregoing in this subsection, if coverage is to
be suspended, voided, or cancelled because of Firm's failure to pay the insurance premium, the
notice provided to City shall be by ten (10) days prior written notice. An endorsement indicating
that an insurer will "endeavor to" provide City such notice (or similar words) shall not be a
sufficient substitute for the actual notice required herein. If Firm cannot obtain an endorsement
committing the insurer to provide City with the required notice of termination, then Firm shall
provide written evidence establishing to City's satisfaction that 100 percent of the amount of the
full premium for the entire period of coverage provided by that insurer has been pre-paid.
Firm represents and warrants that Firm has confirmed with its insurers the existence
and amounts of the required coverage and confirmed the willingness of each insurer to
provide the required endorsements. If,after executing this Agreement,Firm is unable to procure
one or more required endorsements from its existing insurer(s), Firm shall take those steps
necessary (at Firm's sole cost) to procure the required insurance and endorsements from other
insurers providing the required coverage, if necessary.
6.1.4 Deductibles and Self-Insured Retentions. Any deductibles or self-
insured retentions must be declared to and approved by the City. At the option of the City, either
the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City,
its elected officials, officers, employees, agents, and volunteers, or, Firm shall procure a bond
guaranteeing payment of the deductible or self-insured retention in the event of any covered claim.
6.1.5 Separation of Insured; No Special Limitations. All insurance required
by this Section shall contain standard separation of insureds provisions. In addition, such
insurance shall not contain any special limitations on the scope of protection afforded to the City,
its directors, officials, officers, employees, agents, and volunteers.
6.1.6 Replacement or Renewal. During any period of time during which
insurance is required to be maintained hereunder, Firm shall provide proof that policies of
s
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
insurance required herein expiring or otherwise terminated, cancelled, or non-renewed during the
term of this Agreement have been renewed or replaced with other policies providing at least the
same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration.
Endorsements as required in this Agreement applicable to the renewing or new coverage shall be
provided to City no later than ten (10) days prior to expiration of the lapsing coverage.
6.2 Indemnification. To the fullest extent permitted by law, Firm shall indemnify,
defend (at Firm's sole cost and expense), protect and hold harmless City and its officers, Board
members, member agencies, officials, employees, attorneys, agents and volunteers and all other
public agencies whose approval of the Project is required, (individually "Indemnified Party";
collectively "Indemnified Parties") against any and all liabilities, claims, judgments, arbitration
awards, settlements, costs, demands, orders and penalties (collectively "Claims"), including but
not limited to Claims arising from injuries or death of persons (Firm's employees included) and
damage to property, which Claims, omissions, recklessness, or willful misconduct of Firm, its
agents, employees, or subcontractors, or arise from Firm's negligent, reckless, or willful
performance of or failure to perform any term,provision,covenant, or condition of this Agreement
("Indemnified Claims"), but Firm's liability for Indemnified Claims shall be reduced to the extent
such Claims arise from the willful misconduct or gross negligence of the City,its officers, Council
Members, officials, and employees.
Firm shall reimburse the Indemnified Parties for any reasonable expenditures, including
reasonable attorneys' fees, expert fees, litigation costs, and expenses that each Indemnified Party
may incur by reason of Indemnified Claims. Upon request by an Indemnified Party, Firm shall
defend with legal counsel reasonably acceptable to the Indemnified Party all Claims, whether or
not Firm is named as a party to the Claim proceeding and prior to a final court determination
whether a Claim his fully or partially an Indemnified Claim. In the event a final judgment,
arbitration award, order, settlement or other final resolution expressly determines that Claims was
not an Indemnified Claim to any extent,then City shall reimburse Firm for the reasonable costs of
defending the Indemnified Parties against such Claims, except City shall not reimburse Firm for
attorneys' fees, expert fees, litigation costs, and expenses that were incurred defending Firm or
any parties other than Indemnified Parties against such claims.
Firm's indemnification obligation hereunder shall survive the expiration or earlier
termination of this Agreement. This Section 6.2 is intended for the benefit of third party
Indemnified Parties not otherwise a party to this Agreement.
7. RECORDS AND REPORTS
7.1 Reports. Firm shall periodically prepare and submit to the Contract Officer such
reports concerning the performance of the services required by this Agreement as the Contract
Officer shall require.
7.2 Records. Firm shall keep such books and records as shall be necessary to properly
perform the services required by this Agreement and enable the Contract Officer to evaluate the
performance of such services. The Contract Officer shall have full and free access to such books
and records at all reasonable times, including the right to inspect, copy, audit and make records
and transcripts from such records.
9
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
7.3 Ownership of Documents. All reports,information, data and exhibits prepared or
assembled by Firm in connection with the performance of its services pursuant to this Agreement
are confidential to the extent permitted by law, and Firm agrees that they shall not be made
available to any individual or organization without prior written consent of the City. All final
reports and exhibits shall be the property of the City and shall be delivered to the City upon demand
without additional costs or expense to the City. The work papers, notes and drafts of documents
and reports generated by Firm in the process of conducting the audit or preparing the final reports
or final exhibits shall be the work product of Firm, and owned by Firm.
7.4 Release of Documents. Except with the prior written approval of the Contract
Officer, or as otherwise required by final order of a court of competent jurisdiction, all drawings,
specifications, reports, records, documents, and other materials (collectively "Documents")
prepared by Firm in the performance of services under this Agreement shall not be released
publicly or to any individual or entity not expressly authorized by this Agreement to review such
Documents. Firm shall notify City immediately of any request received by Firm to review such
Documents.
A. Permission to disclose information on one occasion or public hearing held by
City relating to this Agreement shall not authorize the Firm to further disclose
such information or disseminate the same on any other occasion.
B. Firm shall not comment publicly to the press or any other media regarding the
Agreement or City's actions on the same, except to City's staff, Firm's own
personnel involved in the performance of this Agreement,at public hearings, or
in response to questions from a Legislative committee.
C. Firm shall not issue any news release or public relations item of any nature,
whatsoever, regarding Work performed or to be performed under this
Agreement without prior review of the contents thereof by City, and receipt of
City's written permission
7.5 Cost Records. Firm shall maintain all books, documents, papers, employee time
sheets,accounting records, and other evidence pertaining to costs incurred while performing under
this Agreement and shall make such materials available at its offices at all reasonable times during
the term of this Agreement and for three (3)years from the date of final payment for inspection by
City and copies thereof shall be promptly furnished to City upon request.
8. ENFORCEMENT OF AGREEMENT
8.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Orange, State of California,
or any other appropriate court in such county, and Firm covenants and agrees to submit to the
personal jurisdiction of such court in the event of such action.
10
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
8.2 Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting party on any default shall impair such right or remedy or be construed as a waiver. No
consent or approval of City shall be deemed to waive or render unnecessary City's consent to or
approval of any subsequent act of Firm. Any waiver by either party of any default must be in
writing and shall not be a waiver of any other default concerning the same or any other provision
of this Agreement.
8.3 Rights and Remedies are Cumulative. The rights and remedies of the parties are
cumulative and the exercise of one or more of such rights or remedies shall not preclude the
exercise of, at the same or different times, of that or any other rights or remedies for the same
default or any other default by the other party.
8.4 Legal Action. In addition to any other rights or remedies, either party may take
legal action,in law or in equity,to cure,correct or remedy any default,to recover injunctive relief,
a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
8.5 Termination Prior to Expiration of Term. City reserves the right to terminate
this Agreement at any time, with or without cause, upon thirty (30) days written notice to Firm,
except that where termination is due to the fault of Firm or the continuation of services would
constitute an immediate danger to health, safety, or general welfare, the period of notice shall be
such shorter time as may be determined by the City. Upon receipt of the notice of termination,
Firm shall immediately cease all services hereunder except such as may be specifically approved
by the Contract Officer. Firm shall be entitled to compensation for all services rendered prior to
receipt of the notice of termination.
8.6 Attorney Fees. In the event any dispute between the parties with respect
to this Agreement results in litigation of any non judicial proceeding, the prevailing party shall be
entitled,in addition to such other relief as may be granted,to recover from the non-prevailing party
all reasonable costs and expenses, including but not limited to reasonable attorney fees, expert
Firm fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of
any judgment entered in such proceeding. The reasonable amount of attorney fees hereunder shall
be calculated multiplying the actual number of hours reasonably spent by the attorney(s) for the
prevailing party in such proceeding either: (a)the actual hourly rate of the attorney(s)representing
the prevailing party in such proceeding, or(b)Two Hundred ($200)per hour,whichever is lower.
No "lodestar multiplier" shall apply to the calculation of reasonable attorney's fees or costs
hereunder.
9. CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION
9.1 Non-Liability of City Officers and Employees. No officer, director, official,
attorney, or employee of City shall be personally liable to the Firm, or any success-in-interest, in
the event of any default or breach by City or for any amount which may become due to the Firm
or its successor, or for breach of any obligation of the terms of this Agreement.
9.2 Covenant Against Discrimination. Firm covenants that,by and for itself,its heirs,
executors, assigns, and all persons claiming under or through them, that there shall be no
11
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
discrimination or segregation in the performance of or in connection with this Agreement marital
status, disability, sexual orientation, national origin, or ancestry.
10. NHSCELLANEOUS PROVISIONS
10.1 Notice. Any notice, demand, request, consent, approval, or communication either
party desires or is required to give to the other party or any other person shall be in writing and
either served personally or sent by pre-paid, first-class mail to the address set forth below. Either
party may change its address by notifying the other party of the change of address in writing.
Notice shall be deemed communicated seventy-two (72)hours from the time of mailing if mailed
as provided in this Section.
To City: City Clerk
ATTN: Erica Yasuda
300 Centennial Way
Tustin, CA 92780
Email: EYasuda@tustinca.org
To Firm: Jennifer Farr
Davis Farr LLP
18201 Von Karman Ave, Suite 1100
Irvine, CA 92612
Email: Jfarr@davisfarr.com
10.2 Integrated Agreement. The two Parties to this Agreement hereby agree that this
Agreement constitutes the entire agreement which is made and concluded in duplicate between the
two parties. Both of these Parties, for and in consideration of the payments to be made, conditions
mentioned, and Work to be performed, agree to diligently perform in accordance with the terms
and conditions of this Agreement as evidenced by the signatures below. This Agreement
supersedes all prior negotiations, arrangements, agreements,representations, and understandings,
if any,made by or among the Parties with respect to the subject matter hereof.
10.3 Amendment. This Agreement may be amended at any time by the mutual consent
of the parties by an instrument writing. Amendments affecting the Scope of Services or
Compensation shall be approved in accordance with Section 3.3 hereinabove.
10.4 Severability. In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by
valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability
shall not affect any of the remaining phrases, sentences, clauses paragraphs, or sections of this
Agreement,which shall be interpreted to carry out the intent of the parties herein.
12
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
10.5 Interpretation. This Agreement shall be construed as a whole according to its fair
language and common meaning to achieve the objectives and purposes of the parties. Accordingly,
any rule of construction of contracts (including without limitation, California Civil Code Section
1654)that ambiguities are to be construed against the drafting party, shall not be employed in the
interpretation of this Agreement. The caption headings of the various sections and paragraphs of
this Agreement are for convenience and identification purposes only and shall not be deemed to
limit, expand, or define the contents of the respective sections or paragraphs.
10.6 Authority. The persons executing this Agreement on behalf of the parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said parties and that
by so executing this Agreement, the parties hereto are formally bound to the provisions of this
Agreement.
10.7 Counterparts. This Agreement may be executed in counterparts, and when all
parties have so executed the Agreement, such counterparts collectively shall constitute one
agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the
original or the same counterpart. The parties may also deliver executed copies of this Amendment
to each other by facsimile or scanned PDF attachment to email, which facsimile/email signatures
shall be binding.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year above written.
CITY OF TUSTIN
Date: By:
Matthew S. West, City Manager
ATTEST:
By: Date:
Erica Yasuda, City Cleric
13
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
APPROVED AS TO FORM:
By: Date:
David E. Kendig, City Attorney
14
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
"FIRM"
DAVIS FARR LLP
Date: By:
Signature
Title
15
1584728.1
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
EXHIBIT A
THE CITY OF TUSTIN
' is soliciting proposals for:
PROFESSIONAL AUDITING SERVICES
Submit written questions to:
Jenny Leisz, Deputy Director— Financial Services
via email at JLeisz(a.tustinca.org
Questions may be submitted through
10:OOam., Monday, April 12, 2021.
• No Verbal questions will be accepted.
Proposals Due: 1:OOpm, Monday, May 3, 2021 Questions of a substantial nature will be
addressed in an addendum.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin
Professional Auditing Services
The City of Tustin is accepting proposals from qualified certified public accountant firms to audit
the City's financial statements for the three fiscal years beginning with the fiscal year ending June
30, 2021, with the option of providing the same services for the two subsequent fiscal years in
accordance with the requirements specified herein and including all provisions set forth in the
accompanying documentation.
These audits are to be performed in accordance with generally accepted auditing standards, the
standards set forth for financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the provisions of the Single Audit Act of 1984, as
amended in 1996, and Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
as well as any other applicable federal, state, local or programmatic audit requirements.
There is no expressed or implied obligation for the City to reimburse responding firms for any
expenses incurred in preparing proposals in response to this request.
A Review Committee consisting of City staff will evaluate proposals submitted. During the
evaluation process, the City reserves the right, where it may serve the City's best interest, to
request additional information or clarifications from audit firms, or to allow corrections of errors or
omissions. At the discretion of the City, firms submitting proposals may be requested to make oral
presentations as part of the evaluation process.
The City reserves the right to retain all proposals submitted and to use any ideas in a proposal
regardless of whether that proposal is selected. Submission of a proposal indicates acceptance
by the firm of the conditions contained in this request for proposals, unless clearly and specifically
noted in the proposal submitted and confirmed in the contract between the City and the firm
selected.
It is anticipated that the selection of a firm by the Review Committee will be completed by June 1,
2021. Following the selection of a firm, a recommendation and proposed contract will be prepared
for review and consideration by the City Council, which is tentatively scheduled for June 15, 2021.
I. ABOUT THE CITY
a. Background Information
The City of Tustin was incorporated under the General Laws of the State of California in
1927. Since 1981 the City has operated under the Council/Manager form of government.
The City is located in Orange County, California, and is located roughly 37 miles southeast
of Los Angeles and 90 miles northwest of San Diego. The City has an estimated population
of 80,382 and covers over 11 square miles. The City is a full-service City that offers a range
of municipal services that includes, but is not limited to: police protection; public works and
water utility operations; building and safety; development services for land use planning,
and zoning; housing and community development; and a full range of recreation and
cultural activities.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
The City has approximately 400 active full-time and part-time employees.
The City's fiscal year begins on July 1 and ends on June 30. The City operates on a biennial
budget. The Fiscal Year 2020/21 General Fund budget is $76 million (total budget of$174
million).
b. Fund Structure
The City uses the following fund types:
Fund Type Number of Funds
General Fund 1
Special Revenue 11
Capital Project 4
Enterprise 1
Private-Purpose Trust (Successor Agency) 1
OPEB Trust 1
Agency Funds 6
c. Reporting Entities
The City's financial statements include all funds and account groups of the primary
government as well as all its component units. The City's component units are the Tustin
Public Financing Authority and the City of Tustin Housing Authority.The City Council serves
as the governing board for these component units, which are to be audited as part of the
audit of the City's financial statements. Separate financial statements for the two
component units are not prepared.
The City became the Successor Agency to the former Community Redevelopment Agency.
The Successor Agency is defined as a private-purpose trust fund and shall be part of the
audit of the City's financial statements.
d. Magnitude of Finance Operations
The Finance Department is headed by Jason AI-Imam, Finance Director/City Treasurer,
and consists of twenty-two (22) full-time employees, one (1) part-time employee, and two
(2) interns.
e. Availability of Prior Audit Reports and Working Papers
White Nelson Diehl Evans, LLP completed the most recent audit for the fiscal year ended
June 30, 2020. The City's Comprehensive Annual Financial Reports for the past 6 years
can be obtained online at the City's website at: https://www.tustinca.org/1086/Audited-
Annual-Reports. Interested audit firms who wish to review other audit reports and
management letters should contact Jenny Leisz, Deputy Director — Financial Services via
email at JLeisz(a)tustinca.org.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
f. Prior Year Audit Fee
The audit fee for the audit of the City's financial statements for the year ended June 30,
2020 was $45,825, which included a Single Audit.
II. SCOPE OF WORK
The City desires a Comprehensive Annual Financial Report (Annual Financial Report) to be
prepared by the independent auditors for the fiscal year ended June 30, 2021 and each of the
subsequent years of the audit firm's contract with the City. As it has done in the past, the City
is planning on submitting the Annual Financial Report to the Government Finance Officers
Association (GFOA) for consideration of their Certificate of Achievement in Financial
Reporting program.
The selected independent auditor will be required to perform the following:
a. The audit firm will perform an audit of all funds of the City. The audits are to be performed
in accordance with generally accepted auditing standards, the standards set forth for
financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the provisions of the Single Audit Act of 1984, as amended
in 1996, and Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance) as well as any other applicable federal, state, local or programmatic audit
requirements. The City's Comprehensive Annual Financial Report (Annual Financial
Report) will be prepared and word processed by the audit firm and assembled in
PDF. The auditor will render their opinion on the fair presentation of the City's financial
statements in conformity with generally accepted accounting principles and shall provide
fifteen (15) printed and bound copies of the Annual Financial Report.
Generally, interim audit work is expected to take place between May and June. However,
the interim audit for Fiscal Year 2020/21 shall take place in July 2021.
The audit firm will provide the City by mid-August a detailed audit plan and a list of all
schedules to be prepared by the City of Tustin.
Year-end fieldwork should commence during the middle of September and shall be
completed by the middle of October. Draft financial statements (including drafts of any
recommendations to management) should be prepared by the auditors and made
available to the City for review during the second week of November. The auditor shall
issue the final Annual Financial Report and audit opinion by the middle of December.
b. If required, the audit firm will perform a single audit on the expenditures of federal grants
in accordance with the provisions of the Single Audit Act of 1984, as amended in 1996,
and Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance).
c. The audit firm will perform agreed-upon procedures relative to the City's calculation of its
Appropriation Limit in accordance with the Article X111B Appropriations Limit Uniform
Guidelines and as mandated by the California Constitution and shall render a letter
annually to the City regarding compliance by the middle of December.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
d. The audit firm shall provide required communications associated with the Southern
California Air Quality Management District rules.
e. Assistance with GASB 68 accounting entries to record the City's net pension liability and
related deferred inflows and outflows.
f. The City of Tustin Audit Commission provides advisory and oversight guidance to those
charged with governance in their required meetings with the external auditors to satisfy
the requirements of the annual financial statement audit under current auditing standards.
Upon conclusion of the audit, the audit firm shall meet with the Audit Commission in
January to provide communications required by Statement on Auditing Standards (SAS)
no. 114.
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
five(5)years, unless the firm is notified in writing by the City of the need to extend the retention
period. The auditor may be required to make working papers available, upon request, to
parties specifically designated by the City as reasonable. 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.
State and National Developments
It is expected that the selected firm will keep the City informed of new state and national
developments affecting municipal finance and reporting, standards and trends including
changes in federal/state grant program accounting and reporting requirements. This shall
include at least one formal updating session per year with finance staff.
III. INSURANCE REQUIREMENTS
The audit firm shall maintain and provide current copies to the City the following minimum
insurance coverage for the duration of the engagement:
• Workers' Compensation - shall maintain Workers' Compensation Insurance
(Statutory Limits) and Employer's Liability Insurance (with limits of at least $1 million).
• General Liability — shall maintain general liability insurance in an amount not less
than $1 million per occurrence/$2 million general aggregate for bodily injury, personal
injury, and property damage, including without limitation, blanket contractual liability.
• Automobile Liability — shall maintain automobile insurance in an amount not less
than $1 million.
• Professional Liability (Errors & Omissions) Insurance — shall maintain
professional liability insurance in the minimum amount of$5 million per claim and $10
million in the aggregate.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
IV. PROPOSAL REQUIREMENTS
A. General Requirements
Inquiries concerning this request for proposal should be made to:
Jenny Leisz, Deputy Director— Financial Services
JLeisz(d-)tustinca.org
City of Tustin
300 Centennial Way
Tustin, CA 92780
(714) 573-3079
Submission of Proposals
The following material is required to be received in a sealed envelope by Monday, May 3,
2021 at 1:00 p.m. for a proposing firm to be considered:
a. A master copy (so marked) and three copies of a Technical Proposal which
includes the following:
I. Transmittal Letter
A signed letter of transmittal briefly stating the audit firm's
understanding of the work to be done, the commitment to perform
the work within the time period, a statement why the firm believes
itself to be best qualified to perform the engagement and a
statement that the proposal is a firm offer for 5 years.
II. Detailed Proposal
The detailed proposal should follow the order set forth in Section
"B", below, of this section.
b. The audit firm shall submit an original and three copies of a dollar cost bid
in a separate sealed marked envelope marked "Cost Proposal."
C. The audit firm should send, or have delivered, the completed proposal
consisting of the two separate envelopes to the following address:
RFP for Professional Auditing Services
Attn: Finance Department
City of Tustin
300 Centennial Way
Tustin, CA 92780
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
B. Technical Proposal
1. General Requirements
The purpose of the Technical Proposal is to demonstrate the qualifications,
competence and capacity of the firms seeking to undertake an independent audit
of the City of Tustin in conformity with the requirements of this request for proposal.
As such, the substance of proposals will carry more weight than their form or
manner of presentation. The Technical Proposal should demonstrate the
qualifications of the firm and of the particular staff to be assigned to this
engagement. It should also specify an audit approach that will meet the request for
proposal's requirements.
THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS INCLUDED IN THE
TECHNICAL PROPOSAL DOCUMENT.
The Technical Proposal should address all the points outlined in the request for
proposal. The Proposal should be prepared simply and economically, providing a
straightforward, concise description of the audit firm's capabilities to satisfy the
requirements of the request for proposal. While additional data may be presented,
the following subjects, item Nos. 2 through 9, must be included. They represent the
criteria against which the proposal will be evaluated.
2. Independence
The firm should provide an affirmative statement that it is independent of the City of
Tustin as defined by generally accepted auditing standards and other relevant
authoritative literature.
The firm should also provide an affirmative statement that it is independent of all of
the City's component units as defined by those same standards.
The firm should also list and describe the firm's professional relationships involving
the City or any of its component units for the past five (5) years, together with a
statement explaining why such relationships do not constitute a conflict of interest
relative to performing the proposed audit.
In addition, the firm shall give the City written notice of any professional
relationships entered into during the period of this agreement.
3. License to Practice in California
An affirmative statement should be included that the firm and all assigned key
professional staff are properly licensed to practice in California.
The selected firm will be required to obtain a Tustin business license.
4. Firm Qualifications and Experience
The audit firm should state the size of the firm, the size of the firm's governmental
audit staff, the location of the office from which the work on this engagement is to
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
be performed and the number and nature of the professional staff to be employed
in this engagement on a full-time basis and the number and nature of the staff to be
so employed on a part-time basis.
The firm is also required to submit a copy of the report on its most recent peer
review, with a statement whether that review included specific government
engagements.
The firm shall also provide information on the results of any federal or state desk
reviews or field reviews of its audits during the past three (3) years. In addition, the
firm shall provide information on the circumstances and status of any disciplinary
action taken or pending against the firm during the past three (3) years with state
regulatory bodies or professional organizations.
5. Partner, Supervisory and Staff Qualifications and Experience
Identify the principal supervisory and management staff, including engagement
partners, managers, other supervisors and specialists, who would be assigned to
the engagement and describe their role in the audit. Indicate whether each such
person is registered or licensed to practice as a certified public accountant in
California. Provide information on the government auditing experience of each
person, including information on relevant continuing professional education for the
past three (3) years and membership in professional organizations relevant to the
performance of this audit. Indicate how the quality of staff over the term of the
agreement will be assured.
Engagement partners, managers, other supervisory staff, consultants and
specialists may be changed if those personnel leave the firm, are promoted or are
assigned to another office. These personnel may also be changed for other
reasons with the express prior written permission of the City. However, in either
case, the City retains the right to approve or reject replacements.
6. Prior Engagements with the City
List separately all engagements within the last five years, if any, ranked on the basis
of total staff hours, performed for the City by type of engagement (i.e., audit,
management advisory services, other). Indicate the scope of work, date,
engagement partners, total hours, the location of the firm's office from which the
engagement was performed, and the name and telephone number of the principal
client contact.
7. Similar Engagements With Other Government Entities
For the firm's office that will be assigned responsibility for the audit, list the most
significant engagements (maximum - 5) performed in the last five years that are
similar to the engagement described in this request for proposal.
These engagements should be ranked on the basis of total staff hours. Indicate the
scope of work, date, engagement partners, total hours, and the name and
telephone number of the principal client contact.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
8. Specific Audit Approach
The proposal should set forth a work plan, including an explanation of the audit
methodology to be followed, to perform the services required in Section II of this
request for proposal. In developing the work plan, reference should be made to
such sources of information as City's budget and related materials, organizational
charts, manuals and programs, and financial and other management information
systems.
Audit firms will be required to provide the following information on their audit
approach:
a. Proposed segmentation of the engagement
b. Level of staff and number of hours to be assigned to each proposed
segment of the engagement
c. Sample size and the extent to which statistical sampling is to be used
in the engagement
d. Extent of use of EDP software in the engagement
e. Type and extent of analytical procedures to be used in the engagement
f. Approach to be taken to gain and document an understanding of the
City's internal control structure
g. Approach to be taken in determining laws and regulations that will be
subject to audit test work
h. Approach to be taken in drawing audit samples for purposes of tests of
compliance
9. Identification of Anticipated Potential Audit Problems
The proposal should identify and describe any anticipated potential audit problems,
the firm's approach to resolving these problems, and any special assistance that
will be requested from the City.
C. Sealed Dollar Cost Proposal (Separate Envelope)
1. Total All-Inclusive Maximum Price
The sealed dollar cost proposal should contain all pricing information relative to
performing the audit engagement as described in this request for proposal. The
total all-inclusive maximum price proposal is to contain all direct and indirect costs
including all out-of-pocket expenses. A breakdown of the audit fee by individual
reporting requirement will be required after the proposal has been awarded in order
to allocate audit expenses to appropriate cost centers.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
The City will not be responsible for expenses incurred in preparing and submitting
the technical proposal or the sealed dollar cost proposal. Such costs should not be
included in the proposal.
The first page of the sealed dollar cost proposal should include the following
information:
a. Name of Firm
b. Certification that the person signing the proposal is entitled to represent
the firm, empowered to submit the proposal, and authorized to sign a
contract with the City.
c. A Total All-Inclusive Maximum Price for each year of the engagement.
2. Rates by Partner, Supervisory and Staff Level Times Hours Anticipated for Each
The second page of the sealed dollar cost proposal should include a schedule of
professional fees and expenses, presented in the format provided in Attachment A,
that supports the total all-inclusive maximum price.
3. Out-of-pocket Expenses Included in the Total All-inclusive Maximum Price and
Reimbursement Rates
Estimated out-of-pocket expenses to be reimbursed should be separately
presented in the sealed dollar cost proposal.
4. Rates for Additional Professional Services
If it should become necessary for City to request the auditor to render additional
services to either supplement the services requested in this request for proposal or
to perform additional work as a result of the specific recommendations included in
any report issued on this engagement, then such additional work shall be performed
only if set forth in an addendum to the agreement between City and the firm. Any
such additional work agreed to between City and the firm shall be performed at the
same rates set forth in the schedule of fees and expenses included in the sealed
dollar cost proposal or on a fixed fee arrangement as negotiated in advance of
performing such additional procedures.
5. Manner of Payment
Progress payments will be made on the basis of hours of work completed during
the course of the engagement and out-of-pocket expenses incurred in accordance
with the firm's dollar cost proposal. Interim billing shall cover a period of not less
than a calendar month. All billings are subject to a ten percent (10%) retention
pending delivery of the firm's final reports.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
V. EVALUATION CRITERIA
Members of a Review Committee will evaluate proposals submitted. Proposals will be first
evaluated as to whether the firm meets mandatory criteria. Those passing the first evaluation
will have their proposals evaluated for technical qualifications and price. Following are some
of the specific items of review that will be judged during the evaluation process.
• The audit firm's responsiveness in clearly stating their understanding of the work
to be performed;
• The firm's qualifications, experience, and service capacity;
• Personnel qualifications and experience with local governments and federal and
state grants; and
• Fee/Price
VI. TENTATIVE SCHEDULE OF EVENTS
The following is the tentative schedule of events:
Event Tentative Date
Issuance of RFP March 29, 2021
Clarification Questions by Email Due Aril 12, 2021 10:00 am
Due Date for Proposals May 3, 2021 1:00 m
Interviews of Finalists, if applicable May 25th — 27 th 2021
Selection and City Council Award June 15, 2021
Attachment A—Schedule of Professional Fees and Expenses
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
ATTACHMENT A
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2020/21 FINANCIAL STATEMENTS
Hours Standard Quoted Hourly Total
Hourly Rates Rates
Partners
Managers
Supervisory Staff
Staff
Other:
Subtotal
Out of pocket expenses:
Meals and Lodging
Transportation
Other:
Total all-inclusive
maximum price
Note: The rate quoted should not be presented as a general percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price. (USE THE SAME
FORMAT FOR EACH SUBSEQUENT YEAR OF THE PROPOSAL).
Please present a summary page of the all-inclusive price showing each year of the proposal.
I
i
I
i
• . • A i , 1 • • - 11
4 -
'
_<t a
� w �
4F
ELL-
300
:.
f ' P '
s - �.Sq.� r �f�ro � :gY� y:::.�"• ¢ "k.`"301 l' ��'� .z ��, L Y �,t�.
r 300 Centennial Way
,vk.
+` ;�}: d o- .2 M��..4'� Y Y 4�' J -��.: _, 0 _ .'Si a.r _^,.A tt `^ �}., -M .c ✓ r n''f` {
N`'z,
���.
..
D.
a -, ,�-.'�
April 20, 2021 ` x �� F4 ti s ,k ��'
r k
._.. � t jt'; '.s� .� 1 � vl�r,�1
y +'R `ibzi ���
f k+ � der R ✓ •fir + 5 _�f� ia s RFk�w .,
� Y
9 4'
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
Table of Contents
Section A—About Davis Farr LLP.................................................................................... 1
ProfessionalAffiliations............................................................................................................................................2
Section B—Qualifications and Related Experience......................................................... 3
Section C—Client References......................................................................................... 4
Section D—Proposed Staffing........................................................................................ 5
SectionE— Work Plan.................................................................................................... 6
Section F— Implementation of New GASB Pronouncements.......................................... 9
SectionG —Scope of Work............................................................................................10
Section H —Proposed Timing of the Audit for FY 20/21................................................ 11
Section I—Segmentation of the Audit...........................................................................11
RFP Forms
Acknowledgement of Addendums
APPENDIX
Resumes
Peer Review Documentation
M
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
i
I
I
• Davis Farr LLP
DavisFar%
18201 Von Korman Avenue Suite 1100 1 Irvine,CA 92612
CERTIFIED PUBLIC ACCOUNTANTS Main:949.474.2020 1 Fax:949.263.5520
April 20,2021
Jenny Leisz, Deputy Director—Financial Services
City of Tustin
300 Centennial Way
Tustin, CA 92780
Re: RFP for Professional Auditing Services
Dear Ms. Leisz,
We are pleased to provide our proposal to perform professional auditing services to the City of Tustin (the
"City")for the fiscal years ending June 30, 2021 through June 30, 2023 with the option to renew the contract
for two subsequent fiscalyears.
Our service philosophy is one of open and constant communication, a proactive approach and responsive,
value-added services. We will listen to your ideas and concerns and will bring creative solutions to you in both
financial and other operational areas.We are aware that while the City has solicited numerous proposals,Davis
Farr LLP would be your best selection for the following reasons which are set forth in greater detail in our
proposal:
• We take a proactive leadership role in local government accounting and auditing issues. Jennifer Farr is the
current Chair of the Government Accounting and Audit Committee of the Cal CPA Society and our Partners
are active members of the CSMFO Professional Standards Committee,the GFOA Special Review Committee,
and other organizations. Our Partners are frequent speakers on technical topics at conferences and training
events throughout California, including the recent CSMFO Annual Conference.
• We currently provide audit services to over 20 cities in Southern California. Our deep understanding of the
issues facing California governments enables us to provide high quality audit services to the City of Tustin.
• We extensively utilize data mining software to evaluate anomalies in your accounting data. This helps focus
our auditors' attention on potential errors in the accounting records and transactions that could be more
susceptible to fraud.
We appreciate the opportunity to share our credentials and look forward to developing our professional
relationship. Our proposal remains a firm and irrevocable offer for five years. I look forward to you contacting
me so that I may answer further any questions which you may have. You may contact me at(949)783-1740.
Very truly yours,
Jennifer Farr,CPA, MBA
Partner
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Section A — About Davis Farr LLP
Background Information—Davis Farr LLP is a full-service regional accountingfirm that specializes in providing attest
and advisory services to federal, state, and local governments out of our California and Washington offices. This
engagement would be serviced by our Irvine office. Our personnel have served governmental entities for over 30
years. A breakdown of our government audit personnel by classification is provided below.
License to Practice in California —Davis Farr LLP and all key personnel are licensed with the California State Board
of Accountancy to practice as independent certified public accountants. If selected, Davis Farr LLP will obtain a City
of Tustin business license.
Independence—Davis Farr LLP is independent with respect to the City of Tustin and its component units as defined
by U.S. General Accounting Office's Government Auditing Standards and Generally Accepted Auditing Standards.
Neither Davis Farr LLP nor the key personnel have any potential or real conflicts of interest. Davis Farr LLP has not
provided any services to the City or its component units during the past five years.
Insurance — Davis Farr LLP has sufficient insurance coverage to meet or exceed the City's requirements and will
provide insurance certificates to the City prior to entering into a contract.The firm maintains a prudent amount of
errors and omissions insurance that covers negligent acts as is appliable to the work requested in the RFP.
Quality Control— Davis Farr LLP and its Partners are members of the American Institute of Certified Public
Accountants (AICPA) and is a member of the AIPCA's Government Audit Quality Center. Our firm is a voluntary
participant in the AICPA Peer Review Program. Included in the appendix is our most recent Peer Review report
where ourfirm received a Pass.A Pass demonstrates the highest level of quality control in a Peer Review. The Peer
Review included a review of government engagements. Davis Farr LLP has not had any federal or state desk reviews
or field reviews during the past three years. There have been no disciplinary action taken or pending against the
firm during the past three years with state regulatory bodies or professional organizations.
Training—Every professional of the firm participates in continuing professional education courses. Each person is
required to take at least 80 hours of training over a two-year period including 24 hours a year specific to government
accounting and audit topics. Courses cover a wide spectrum of professional and technical subjects, and include
Fraud, Professional Ethics and Governmental Accounting and Auditing topics to help the practitioner maintain
his/her professional expertise.
Classification Number of Employees
-_
Partners 7 I
:ice , Managers 8
room
ervisors 4 1 j
I u. Seniors 17 '
I Staff 13
Administrative 3
Total personnel 52
DavisFarr
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Professional Affiliations
Government Audit Quality Center — Davis Farr LLP is a member of the
Government Audit Quality Center(GAQC). The GAQC promotes the importance
of quality governmental audits and the value of such audits to purchasers of
governmental audit services. GAQC is a voluntary membership center for CPA
firms and state audit organizations that perform governmental audits.
National Registry of CPE Sponsors — Davis Farr LLP is registered to provide
continuing professional education through the National Association of State
Board of Accountancy (NASBA). NASBA recognizes CPE program sponsors who CPEI
provide continuing professional education programs in accordance with
nationally recognized standards. We provide CPE to our clients at our annual
GASB Update.
Cal CPA—Many of the CPAs employed by Davis Farr LLP are members of Cal CPA
and regularly participate in chapter meetings, education, and events. Cal CPA
recognized one of Davis Farr LLP's partners with their Women to Watch award
in the Experienced Leader category. Davis Farr presented at the 2020 Women's AICPA
Leadership Forum on generational issues in the workplace. Davis Farr LLP
partners are also members of the Governmental Accounting and Auditing
Committee of the CaICPA and Jennifer Farr is the current Chair of the Committee.
American Institute of CPAs—Davis Farr LLP and the firm's Partners are members
of the American Institute of CPAs (AICPA). The AICPA develops standards for
audits, provides educational guidance materials to its members, and monitors
and enforces compliance with the profession's technical and ethical standards.
CSMFO—The Partners of Davis Farr LLP are members of the California Society of Fill]]
Municipal Finance Officers (CSMFO), the statewide organization serving all
California municipal finance professionals. Firm personnel regularly attend
CSMFO Chapter Meetings and Conferences. The Partners of Davis Farr LLP are
frequent presenters on accounting and auditing technical topics at Chapter
Meetings and Conferences. Davis Farr presented at the annual CSMFO
conference in February 2021 on the topic of capital assets.
GFOA — The Government Finance Officers Association (GFOA) enhances and
promotes the professional management of governmental financial resources by
identifying,developing,and advancingfiscal strategies,policies,and practices for
the public benefit. The Partners of Davis Farr LLP are members of the Certificate
of Achievement Program's Special Review Committee. The Committee reviews
Comprehensive Annual Financial Reports submitted to GFOAforthe CAFR Award
Program.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Section 6 — Qualifications and Related Experience
Davis Farr LLP is a leader in the local government sector throughout the Southern California Area. Currently, we
service approximately 60 local,state, and federal government entities. Davis Farr LLP services routinely provided to
our clients include, but are not limited to:
0 =
Financial Reviews and
Statement Audits Compilations
c
do
Services
do
Routinely
Internal Control Provided Compliance
Attestations Audits
��UAgreedUpon
Tax and Consulting
Services
Our government expertise includes Cities, Special Districts, and other Governmental entities. Among the
government agencies that the professionals of Davis Farr LLP have served recently are the following:
• City of Avalon • City of Los Angeles • Leucadia Wastewater District
• City of Carlsbad • City of Mission Viejo • Metropolitan Water District of So CA
• City of Commerce • City of Newport Beach • Municipal Water District of So CA
• City of Coronado • City of Poway • Orange County LAFCO
• City of Costa Mesa • City of Rancho Santa Margarita • Oxnard Housing Authority
• City of Cypress • City of Santee • Placer County Water Agency
• City of Encinitas • City of South Gate • Salton Sea Authority
• City of Fontana • City of Vista • San Diego County Water Authority
• City of Fountain Valley • County Los Angeles • San Diego Association of Governments
• City of Garden Grove • County of Placer • San Diego LAFCO
• City of Huntington Beach • County of San Diego • Sweetwater Authority
• City of Indio • East Orange County Water District • Tahoe Regional Planning Agency
• City of Irvine • Hass Avocado Board • Tahoe Transportation District
• City of Laguna Niguel • Irvine Ranch Water District • Vallecitos Water District
DavisFarr
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Section C — Client References
For your convenience,we have listed below references for audit work currently being performed by Davis Farr LLP
personnel for several Cities throughout Southern California. For each of the references, we currently serve as
independent auditors and have served these clients for a number of years.
City of Garden Grove Financial Statement Audit of City,
11222 Acacia Pkwy I Garden Grove,CA Housing Authority,Single Audit,
REAC,State Controller's Reports, ..j 0
Patricia Song, Finance Director i�
714.741.5062 Agreed-Upon Procedures / Hours
engagements
psong@ggcity.org f/
City of Huntington Beach Financial Statement Audit of City,
2000 Main Street I Huntington Beach, CA JPA Audit,Single Audit Agreed- ��
00
Dahle Bulosan,CFO
Upon Procedures engagements for '
714.536.5648 Transient Occupancy Tax and urs
dbulosan@surfcity-hb.org Concessionaire compliance
City of Fountain Valley
10200 Slater Ave I Fountain Valley,CA Financial Statement Audit of City,
Measure HH Audit,Single Audit 450
Teresa Gonzalez,Accounting Manager Agreed-Upon Procedures Hours
714.593.4503 engagement
teresa.gonzL71ez@fountainvolley.org
City of Costa Mesa
77 Fair Dr I Costa Mesa, CA Financial Statement Audit of City,
Housing Authority Audit Financing 700
Jennifer King,Assist Finance Director Authority Audit Single Audit, Hours
714.754.5219 Agreed-Upon Procedures
Jennifer.king@costamesaca_gov
City of Mission Viejo
200 Civic Center I Mission Viejo, CA Financial Statement Audit of City,
350
Audit,A
Cheryl Dyas, Director of Admin Services Single , g reed-Upon Hours
949.470.3082 Procedures engagements /
cdyas@cityofmissionviejo.org
•
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Section D — Proposed Staffing
The successful outcome of any audit requires personnel with the managerial and technical skills to perform the
work required. The engagement team who will serve the City of Tustin have served together as a team of
professionals on numerous financial audit examinations of local government entities.
We believe that efficient administrative management and supervision of the audits is an extremely critical factor in
achieving the desired results for City of Tustin. In that regard, our proposal organizational structure for providing
independent auditing services is as follows:
i
Jennifer Farr, CPA
'i
Jeff Ball, CPA Jonathan Foster, CPA
I
Jeffrey Olinarez, CPA Diego Vanegas, CPA,
IT
�. SPECIALIST
CISA, CITP
AUDITORSTAFF
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Section E — Work Plan
Davis Farr plans and conducts our engagements in the most efficient manner possible, and our audit approach is
unique with regard to the following:
• Our firm is sensitive to the priorities and work requirements of our clients. We work around the schedules
of our clients when scheduling segments of the audit or requesting documentation in order to minimize
disruption of City staff and to complete the audit in a timely manner.
• Whenever possible, we use accounting support already prepared by the City staff to avoid duplication or
unnecessary requests for audit supporting schedules.
• Our,firm's expertise is in governmental auditing. Our auditors are GASB experts and skilled at addressing
audit issues that are specific to local governments. You will not spend time training our personnel.
• When formulating internal control recommendations, we obtain a thorough understanding of the specific
circumstances at your City to provide a tailored, practical recommendation.
• Throughout the year we are a resource to our clients in providing accounting advice, researching technical
questions, dealing with tax problems, and helping with other problems as they arise. Our clients can also
attend our annual GASB Update free of charge.
Audit Software-We utilize CaseWare audit software for the electronic City of workpapers. We have the ability to
accept audit documentation in either hard copy or electronic format. CaseWare allows us the ability to import trial
balances that can be provided in either excel or a text document. Some of the benefits of using CaseWare trial
balance software are as follows:
• We create our own lead sheets (i.e., analytical review comparison schedules). This limits the amount of
time finance staff spends creating audit schedules. Our software automatically generates analytical review
reports by account number for ease of analyzing significant fluctuations between fiscal years.
• We can link the financial statement schedules directly to the CaseWare trial balances. As a result, we can
provide the City with financial statements almost immediately after receiving the trial balance from the
City. Additionally,journal entries are easy to post to the financial statement schedules and the risk of data
entry error is minimized.
• We can provide the City with reports showing the coding of the financial statement schedules for ease of
review by City staff. These reports show each account coded to a specific financial statement line item as
well as journal entries that are posted during the audit.
Data Mining Software-We have a dedicated team of personnel trained to use special data mining software, IDEA.
Our software uses source data from your accounting system to search for anomalies, such as duplicate or voided
checks, cross-referencing vendor addresses with employee addresses, detecting accounting transactions recorded
on the weekend, reviewing journal entry postings for unauthorized individuals. The IDEA software identifies specific
transactions for the auditors to review for potential fraud or error.
Internal Control Evaluation - Our approach to evaluating internal controls involves observation and inquiry. We
spend time with the personnel responsible forthe accounting cyclesto gain an understanding of the processes. We
also carefully evaluate your policies and procedures. After our initial evaluation, we identify key controls in your
processes and design test to evaluate the effectiveness of those processes. In the initial year of the audit, we will
focus on the following accounting cycles for each department with decentralized accounting activities:
• Billing and cash receipting
• Capital assets
• Purchase and disbursements
• Payroll
• Investment and cash controls
• Information systems
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
In future years, we will review the accounting cycles noted above but also look at other processes such as credit
card transactions, petty cash, inventory controls, offsite cash receipting, employee reimbursements, contract
compliance, and other areas. Our goal is to modify our audit approach every year to further evaluate your internal
controls.
Planning During the planning phase of the audit,we plan to perform the following procedures:
and inquiry ✓ Meet with finance personnel to obtain an understanding of significant transactions during the year.
✓ Communicate with the City Council regarding fraud, compliance with laws, and any concerns they
have regarding the finances of the City.
✓ Perform internal control evaluations as noted on the previous page.
✓ Determine materiality levels that will be used in selecting audit transactions.
✓ Perform a risk assessment to develop the audit plan for the year.
✓ Review minutes of City Council meetings.
✓ Review important new contracts, bond documents, and agreements.
✓ Evaluate compliance with investments.
✓ Test purchase orders and contract management.
✓ Test a sample of cash disbursements to determine adherence to policies and internal controls.
✓ Perform a review of the organization's information systems and controls.
✓ Perform compliance testing of federal grants.
✓ Review the prior audited financial statements and provide feedback to City staff regarding best
practices for financial reporting.
✓ Provide a GASB Update and templates for implementing new accounting standards including the
upcoming lease accounting standard.
Year-End After the books are closed and ready for audit, we will perform our year-end procedures which
Testing include the following:
✓ We will confirm 100%of all cash and investment balances and test market values provided by your
investment custodians.
✓ We will test for proper cutoffs of accounts receivable and grants receivable.
✓ We will confirm and test material notes and loans receivable.
✓ We will review land held for resale transactions and related developer agreements.
✓ We will test additions and deletions to capital assets. We will review depreciation expense for
reasonableness.
✓ We will test interfund transactions including due to/due from otherfunds,advances,and transfers.
We will review legal documents supporting loans and test the allowability of transfers out of
restricted funds.
✓ We will test current liabilities and perform a search for unrecorded liabilities.
✓ We will review unearned revenue balances for proper cutoffs.
✓ We will test the balances of accrued payroll and employee related liabilities.
✓ We will confirm long-term debt with independent parties.
✓ In years of new debt issuances, we will review the journal entry to record the debt to ensure the
accuracy of the accounting.
✓ Testing of actuarial valuations and calculations related to OPEB obligations and disclosures under
GASB 75.
✓ Testing of actuarial valuations and calculations related to pension obligations and disclosures
under GASB 68.
✓ Evaluation of claims and judgments payable.
✓ Testing of restrictions and classifications of net position.
✓ Analyze grant revenues and expenses to ensure proper matching within the fiscal year.
✓ Test the reasonableness of interest income, realized, and unrealized gains/losses on investments.
✓ Analytically and substantively test revenues and expenses reported in the financial statements.
Da
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
✓ We will incorporate an element of unpredictability every year that will focus on an audit area that
is not typically considered a high or significant risk area such as petty cash, credit card purchases,
new vendors,travel expenses, etc.
The aforementioned tests are only a few of the tests performed during the examination and by no
means is it meant to be all inclusive. During the final stage of the audit, we will meet with Finance
staff to review our audit findings and any adjusting journal entries.
Single Audit As part of our Single Audit for the years in which the City expends granter than $750,000, we will
Approach perform the following procedures in accordance with the Uniform Guidance:
✓ Perform an evaluation of the major programs required to be tested
✓ Review OMB guidance and the OMB Compliance Supplement for the grant program audited.
✓ Review internal controls for each of the applicable 14 compliance areas for each program audited.
✓ Using AICPA sampling guidance, we will select a sample for each of the applicable 14 compliance
areas for each program audited. We will test the sample for compliance with those 14 areas.
✓ Test the indirect cost rate, if applicable
✓ Review monitoring reports for noncompliance and follow up on the resolution of past
noncompliance, if applicable.
✓ Issue a single audit report of federal expenditures.
✓ File the data collection form within the specified deadline.
Completion The nature and extent of the work required is dependent on our assessment of the likelihood of
of the Audit misstatements in the financial statements together with our conclusions from the planning and
and testing stages of the audit.All of the audit information is then used to reach a conclusion on whether
Preparation the financial statements taken as a whole conform with generally accepted accounting principles.
of Financial ✓ We will review significant events after year end
Statements ✓ We will review attorney letters for significant legal matters
✓ Prepare the draft of the Comprehensive Annual Financial Report
✓ We will ensure accurate and complete disclosures in the notes to the financial statements.
✓ We will meet with City Committees or City Council to present the audit results, as requested.
Identification of Anticipated Potential Audit Problems
We do not anticipate any anticipated potential audit problems.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Section F — Implementation of New GASB
Pronouncements
The City will be required to implement the following accounting standards during the upcoming fiscal years. Part of
our service to you includes consulting on these new auditing standards. A sampling of significant new GASB
pronouncements planned or proposed for local governments that will impact the City of Tustin are listed below:
FiduciaryGASB 84 GASB 87
GASB 94 GASB 96
. ,
Subscription Based IT
This statement establishes The objective of this The primary objective of The Statement provides
criteria for identifying statement is to better meet this Statement is to provide guidance to governments
fiduciary activities of all state the information needs of the guidance related to public- on the accounting and
and local governments. The financial statement users by private (PP) and public- financial reporting for
statement describes four improving accounting and public partnership subscription -based
fiduciary funds that should financial reporting for leases arrangements (PPA) in information technology
be reported,if applicable:(1) by governments. The which a government arrangements. This
pension trust funds, (2) standard will be effective for contracts with an operator Statement is effective for
investment trust funds, (3) the fiscal year ending June 30, to provide public services. the fiscal year ending June
private-purpose trust funds, 2022. This statement also 30,2023.
and (4) custodial funds. We provides guidance or
will work with the City to We understand the City has accounting and financial
identify the activities approximately 30 leases to reporting for availability
required to be reported in evaluate. We will meet with payment arrangements in
these four fund types and City staff to obtain an which a government
provide transition guidance understanding of the types of compensates an operator
for the fiscal year ending leases. We will review lease for services in and exchange
June 30, 2021. agreements and provide transaction. This standard
templates and assistance for will be effective for the
recording journal entries. fiscal year ending June 30,
2023.
DavisFarr
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
City of Tustin I Proposal for Professional Auditing Services
Section G — Scope of Work
Our understanding of the objectives and scope of the work to be performed is as follows:
• We will perform an audit examination of the financial statements of the City of Tustin for the fiscal years
ending June 30, 2021 through 2023 with optional extensions for two years. Our examination will be
conducted in accordance with generally accepted auditing standards, the AICPA Audit and Accounting
Guide, Audits of State and Local Government Units, and the Government Auditing Standards issued by the
Comptroller General of the United States. We prepare the Comprehensive Annual Financial Report based
on the information provided to us during the audit. The Report will be prepared in conformity with the
most recent edition of the GAAFR, the GAAFR Update, and subsequent GASB pronouncements. We will
provide the City with a PDF and 15 printed and bound copies of the report by the middle of December.
• We will perform a compliance audit of federal expenditures in accordance with the Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Awards in any year the City has federal
expenditures of more than $750,000.
• We will perform a compliance and financial audit of the City's AQMD funds received.
• We will perform agreed-upon-procedures over the City's Gann Appropriations Limit.
• We will assistthe City with understanding the net pension liability and related deferred inflows and outflows
calculation. For the City's cost sharing plan, we recommend using CalPERS Cost Sharing Tool to assist with
the calculations.
• We will prepare a letter to the City Council summarizing the audit results in accordance with the Codification
of Auditing Standards Section 260.
• We will prepare a letter to the City Council reporting matters dealing with internal control that meet the
threshold of being a significant deficiency or material weakness, as defined by the Codification of Auditing
Standards Section 265. We will immediately report any irregularities or illegal acts that come to our
attention to management and/or those charged with governance.
• As requested,we will meet with the Audit Commission or City Council to discuss the results of the audit.
• Finally, we perceive the scope of our work as being advisors to the City regarding generally accepted
accounting principles. Throughout the year, the management and other finance personnel of the City will
have access to us to seek advice in the application of generally accepted accounting principles, advice
regarding debt issuance, financial statement preparation and content, tax and any other matters relating
to the City. Each year,we will go over upcoming accounting standards in a meeting with City staff.
I I ,
TI
i ,
B
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
r7City of Tustin I Proposal for Professional Auditing Services
Section H — Proposed Timing of the Audit for FY 20/21
The following proposed timing is subject to the City's revision and approval:
Audit Request List Provided Final Audit Fieldwork
June 1,2021 Interim Audit Procedures Sept 20-Oct 1,2021 Draft Report provided to City
July 12-16,2021 October 22,2021
Task Task
01 Task 05 Task
03 07
Task
002
sk 04 Task
06
Final Audit Request List Finalization of Audit Reports
Audit Planning Meeting Provided Exit Meeting No later than Dec 17,2021
July 12,2021 July 16,2021 October 1,2021
Section I — Segmentation of the Audit
The following is our estimate of the hours by professional classification required to perform the audit:
Classification Hours Percentage
Partners 40 10%
Managers 60 14%
Supervisor 150 38%
Staff Auditor 150 38%
Total 400 100%
For the fiscal year ending June 30,2022,we anticipate spending an additional 20 hours of time to evaluate the City's
lease agreements and provide templates, training, and assistance to City staff related to recording the necessary
journal entries.
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
T-1
�a
�a
7 '
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
April 19, 2021
TO: PROSPECTIVE PROPOSERS
SUBJECT: ADDENDUMS NO. 1 and 2 PROFESSIONAL AUDITING SERVICES
This is a modification to the Request for Proposal (RFP) package for professional auditing services.
The attached are additions, revisions and clarifications to the original RFP. All proposers are required
to incorporate all necessary changes, additions or deductions into their proposals. These Addendums
include the following:
1. Questions submitted by interested firms through April 12,2021 10 a.m. and responses
from the City.
2. Requirement to identify in proposals the number of hours and proposed costs that have
been assigned to the implementation of GASB 87(Addendum No. 1, item 1.)
3. Proposal submittal instructions(Addendum No. 2).
Addendum No. 1 consists of five pages and addendum no. 2 is one page.
THE DUE DATE REMAINS THE SAME AT MAY 3. 2021 AT 1 P.M.
All other aspects of the documents pertaining to this proposal remain in effect and applicable.
Payment for complying with those provisions shall be deemed to be included in the proposal price for
the various items of work. No additional compensation will be allowed therefore.
Sincerely,
Jenny Leisz
Deputy Director—Financial Services
The proposer shall individually identify and acknowledge receipt of all addendums by signing and
enclosing each addendum form in his/her proposal package submittal. Failure to do so may result in a
disqualification of his/her proposal. Receipt of these Addendums No. 1 and 2 are hereby acknowledged.
Audit Firm: Davis Farr LLP
Signed:
Name/Title: Partner
Date: 4/20/2021
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
#ks
4
Ail
_ .�.
f
aw -wrxyi+�'��
1
f
F ' 1
TT TT TT
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
DavisF„arr
Jennifer Farr, CPA, MBA
Partner
Ms. Farr will serve as the Partner on this audit. She will oversee the project to ensure
j all required deadlines are met, provide technical assistance to the audit teams, and
review the final reports before they are released. Ms. Farr is a Certified Public
Accountant with over 20 years of experience in local government auditing. Ms. Farr is
a frequent speaker on matters pertaining to technical issues and new GASB
pronouncements. Ms. Farr is also responsible for training in the area of local
governmental accounting and auditing.
Employment History Licenses/ Registrations
• Davis Farr LLP—Founding Partner • California CPA Certificate No.76292, October 1998
• Shareholder—National CPA Firm Professional Affiliations &Awards
Education • California Society of Certified Public Accountants
• Bachelor of Arts-Business Administration/ • Government Accounting&Auditing Committee
Accounting(California State University, Fullerton) o Current Chair of Committee
• Bachelor of Arts-English (California State • California Society of Municipal Finance Officers
University, Fullerton) • American Institute of Certified Public Accountants
• Master of Business Administration (California • Government Finance Officers Association
State University, Fullerton) • Financial Review Committee
AUMTS OF CAUFOPf IIA U T B
✓ City of Avalon ✓ City of Fountain Valley ✓ City of RSM
✓ City of Benicia ✓ City of Garden Grove ✓ City of Rosemead
✓ City of Burbank ✓ City of Half Moon Bay ✓ City of San Bruno
✓ City of Carlsbad ✓ City of Hayward ✓ City of Santa Ana
✓ City of Commerce ✓ City of Highland ✓ City of Santee
✓ City of Campbell ✓ City of Indian Wells ✓ City of Upland
✓ City of Coronado ✓ City of Jurupa ✓ City of Victorville
✓ City of Costa Mesa ✓ City of Hayward ✓ City of Villa Park
✓ City of Culver City ✓ City of La Quinta ✓ City of Walnut Creek
✓ City of Dana Point ✓ City of Mission Viejo ✓ City of West Covina
✓ City of Delano ✓ City of National City ✓ City of Whittier
✓ City of Encinitas ✓ City of Orange ✓ City of Woodland
✓ City of Fontana ✓ City of Palm Springs
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
� DavisFarr
11,. 1 , r 1a i.- A<It �!1. or,1'.
_ Jonathan Foster, CPA
i
Jonathan Foster will serve as the Quality Control Reviewer on this engagement. Mr. Foster is
_ a Certified Public Accountant and has 14 years of audit experience with government
I agencies. The types of audits Mr. Foster is involved in includes financial audits of cities and
special districts and Single Audits in accordance with the Uniform Guidance. Mr. Foster is
also a CAFR and Budget reviewer for the CSMFO award and is a regular presenter at firm
wide training and external training events as requested. He was a featured speaker at the
2021 CSMFO conference where he presented on Capital Assets.
Employment History Licenses/Registrations
• Davis Farr LLP—Since 2015 • California CPA Certificate No. 117853
• National CPA Firm—8 years Professional Affiliations&Awards
Education • American Institute of Certified Public Accountants
• Bachelor of Accountancy(University of San Diego) • California Society of Certified Public Accountants
• Cal CPA Government Audit&Accounting Committee
• California Society of Municipal Finance Officers
• CAFR and Budget Award Reviewer
AUDITS OF CITIES
✓ City of Avalon ✓ City of Fontana
✓ City of Commerce ✓ City of Huntington Beach
✓ City of Carlsbad ✓ City of Indian Wells
✓ City of Costa Mesa ✓ City of Laguna Niguel
✓ City of Dana Point ✓ City of Rancho Santa Margarita
✓ City of Delano ✓ City of Santee
AUDITS OF SPECIAL DISTRICTS
✓ Cucamonga Valley Water District ✓ San Diego Association of Governments
✓ East Orange County Water Agency ✓ San Bernardino Municipal Water Department
✓ Irvine Ranch Water District ✓ Soquel Creek Water District
✓ Placer County Water Agency ✓ Trabuco Canyon Water District
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
DavisFarr
Jeff Ball
kk
Manager
Mr. Ball is a Senior Manager with the firm and will serve as the engagement Manager. He
has over 13 years of audit experience,spending the majority of that time on audits for non-
profits, and federal and local government engagements. The types of audits Mr. Ball has
been involved in include: financial audits of non-profits, cities and special districts; grant
specific audits of funds awarded by Federal, state, and county governments;Single Audits
in accordance with OMB Circular A-133;and Federal compliance audits.
Employment History
• Davis Farr LLP—Since 2015
• Seven year at a National CPA Firm
Education
• Bachelor of Science, Business Economics w/Emphasis in Accounting
(University of California,Santa Barbara)
A,liMUS OF SP IA�i`KL D�S0VPKnc
✓ Beach Cities Heath District ✓ San Bernardino Water Authority
✓ Bighorn-Desert View Water Agency ✓ San Diego LAFCO
✓ Eastern Municipal Water District ✓ San Diego Port Authority
✓ Omnitrans ✓ San Gabriel Water Quality Authority
✓ Salton Sea Authority ✓ South Montebello Irrigation District
✓ San Bernardino LAFCO ✓ Washington Economic Development Authority
✓ Community Colleges of Spokane
2,
),11TS OF L O(DAU (, _VERhJKAr7N!u=:
✓ City of Avalon ✓ City of Rancho Santa Margarita
✓ City of Costa Mesa ✓ City of Solana Beach
✓ City of Culver City ✓ City of Santee
✓ City of Fountain Valley ✓ City of Huntington Beach
✓ City of Highland ✓ City of Whittier
✓ City of Inglewood ✓ City of Victorville
✓ City of Lake Elsinore ✓ City of Woodland
✓ City of Mission Viejo ✓ County of San Diego
✓ City of Moreno Valley ✓ County of Placer
✓ City of Morgan Hill ✓ City of Irvine
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
•p• DavisFarr
Jeffrey Olinarez, CPA
Audit In-Charge
' Mr. Olinarez has five years of audit experience, spending the majority of that
time on audits for local and federal government agencies. The types of audits
Mr. Olinarez has been involved in include: financial audits of cities, special
districts; grant specific audits of funds awarded by Federal, state, and county
governments; Single Audits in accordance with OMB Circular A-133; and Federal
compliance audits.
Employment History Licenses/ Registrations
• Davis Farr LLP:July 2016-current • CA CPA Certificate No. 140993
Education
• Bachelor of Science in Accounting
Azusa Pacific University
AUDITS OF LOCAL AND FEDERAL GOVERNMENTS
✓ City of Mission Viejo ✓ City of Woodland
✓ City of Poway ✓ County of San Diego
✓ City of Santee ✓ City of Fountain Valley
✓ City of Victorville ✓ Special Inspector General for Afghanistan
Reconstruction
✓ Sweetwater Authority ✓ Yucaipa Valley Water District
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
I
DavisFarr
1 ,r.
Diego Vanegas, CPA, CISA, CITP
Partner
Mr. Vanegas, CPA, CISA, CITP has over 16 years of progressive governmental
7 accounting and audit experience, including extensive compliance audit experience for
governmental and non-profit agencies. He has been involved in financial/compliance
audits, internal control audits and assessments, operational/performance audits, and
cost proposal analysis/price reviews for various governmental agencies. Mr.Vanegas
has served in many capacities depending on the size and requirements of the
engagements. He has participated in audits of federal agencies such as NSF, CMS, and CNCS, among others.
Additionally, Mr. Vanegas has been involved in agreed-upon-procedures and audit engagements of
state/local agencies. These engagements have often combined both financial and compliance aspects of
the audit as well as Information Technology (IT). Furthermore, he has strong internal control audit
experience through the performance of System and Organization Control examinations of the internal
controls of service organizations, as well as knowledge of Government Auditing Standards, Office of
Management and Budget (OMB) Circular A-87 and the Federal Acquisition Regulations (FAR).
Employment History Licenses/Registrations
• Davis Farr LLP: Partner—January 1,2018—Present • CA CPA Certificate No. 113040
• Davis Farr LLP: Manager—June 2015—December • Certified Information Systems Auditor
31,2017 • Certified Information Technology Professional, No.
• Top 10 National CPA Firm—May 2005-June 2015 3298
Education
• Bachelor of Science in Business Administration,
with an emphasis in Accounting(California State
University-Los Angeles)
• Bachelor of Science in Computer Information
Systems,with an emphasis in Business Systems
(California State University-Los Angeles)
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
,:-2-dE CIMM
Report on the Firm's System of Quality Control
Davis Farr LLP
Irvine, California;
and the Peer Review Committee of the California Society of CPAs
We have reviewed the system of quality control for the accounting and auditing practice of Davis Farr LLP
(the firm) in effect for the year ended May 31,2019. Our peer review was conducted in accordance with the
Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the
American Institute of Certified Public Accountants (Standards).
A summary of the nature, objectives,scope,limitations of,and the procedures performed in a System Review
as described in the Standards may be found at www.aicpa.org/prsummga. The summary also includes an
explanation of how engagements identified as not performed or reported in confonnity with applicable
professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Firm's Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the firm
with reasonable assurance of performing and reporting in conformity with applicable professional standards
in all material respects. The firm is also responsible for evaluating actions to promptly remediate
engagements deemed as not performed or reported in conformity with professional standards, when
appropriate, and for remediating weaknesses in its system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the firm's
compliance therewith based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards,
including a compliance audit under the Single Audit Act,and examination of a service organization(SOC 1,
Type 2 Report).
As part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if
applicable, in determining the nature and extent of our procedures.
CPAs ■ Advisors
Q 4120 Concours, Suite 100, Ontario, CA 91764 CPAMERICA
909.948.9990 /800.644.0696/FAX 909.948.9633 INTERNATIONAL
4 gyl@gylcpa.com —/A Crowe Honvathlntemational_
@ www.gylcpa.com
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
Peer Review Report
Page 2 of 2
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of Davis Farr LLP in
effect for the year ended May 31, 2019, has been suitably designed and complied with to provide the firm
with reasonable assurance of performing and reporting in conformity with applicable professional standards
in all material respects. Firms can receive a rating of pass,pass with deficiency(ies) or fail. Davis Farr LLP
has received a peer review rating of pass.
CIL LLP
Ontario, California
September 23, 2019
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
r
P _
T4
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
ojDavisFarr Davis Farr LLP
18201 Von Kamran Avenue� Suite 1100 1 Irvine,CA 92612
CERTIFIED PUBLIC ACCOUNTANTS Main:949.474.2020 Fax:949.263.5520
l
April 20, 2021
i
Jenny Leisz, Deputy Director—Financial Services
City of Tustin
300 Centennial Way
Tustin, CA 92780
Re: RFP for Professional Auditing Services
Dear Ms. Leisz,
We are pleased to provide our cost proposal for professional auditing services to the City of Tustin ("City')for the
three fiscal years beginning with the fiscal year ending June 30, 2021 with optional extensions for an additional
two years. I certify that I am entitled to represent the firm, empowered to submit the proposal, and authorized
to sign a contract with the City.
Our total all-inclusive maximum annual price for the fiscal years ending June 30 are as follows:
2021..............$43,500
2022..............$46,000
2023..............$44,400
2024..............$45,300
2025..............$46,240
1 look forward to you contacting me so that I may answer further any questions which you may have. You may
contact me at (949)783-1740.
Very truly yours,
Jennifer Farr, CPA, MBA
Partner
fDocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401 FB
I ,I
IAUDIT FEES
Our fixed fees to perform the audit services are included in the following pages.
The single audit fee covers up to two major programs. In the unlikely event that the City is required to have
additional major programs tested as defined by the Uniform Guidance, additional programs can be audited at an
additional fee of$2,500 per program.
( ' Rates for Additional Professional Services
! I
If the City requests the auditor to render additional services or perform additional work not included in the scope
of services identified in the City's Request for Proposal,we would enter into an agreement with the City to perform
those services at the following hourly rates by professional personnel as follows:
1 Partner $180
Manager 130
Supervisor/Senior 100
Staff 90
I
Manner of Payment
Progress invoices will be submitted on the basis of hours of work completed during the course of the engagement.
Interim billings will not cover a period of less than a calendar month.
� I
f !
( 1
I .
LI
l �
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
h
41
TT
MINI"
h
� F
k -
t
�, - � ...IIS,,`_—.:'-�,--,�_•-.-s"�`
�'
(( DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401 FB
l
( SCHEDULE A
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2020/21 FINANCIAL STATEMENTS
� I
Standard Quoted Hourly
Hours Hourly Rates Rates Total
Partners 40 $ 250 180 7,200
Managers 60 175 130 7,800
Supervisory Staff 150 125 100 15,000
Staff 150 100 90 13,500
Other
Subtotal 400 43,500
1 -
Out of pocket expenses:
Meals and lodging n/a
Transportation included
Other included
Total all-inclusive maximum price $ 43,500
-) Note: The rate quoted should not be presented as a gneral percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price. (USE THE SAME
FORMAT FOR EACH SUBSEQUENT YEAR OF THE PROPOSAL).
1I
l
j
� I
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401 FB
SCHEDULE B
I
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2021/22 FINANCIAL STATEMENTS
Standard Quoted Hourly
Hours Hourly Rates Rates Total
Partners 45 $ 250 180 8,100
Managers 65 175 130 8,450
i Supervisory Staff 155 125 100 15,500
Staff 155 100 90 13,950
f Other
Subtotal 420 46,000
Out of pocket expenses:
Meals and lodging n/a
Transportation included
Other included
Total all-inclusive maximum price $ 46,000
J Note: The rate quoted should not be presented as a gneral percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price. (USE THE SAME
FORMAT FOR EACH SUBSEQUENT YEAR OF THE PROPOSAL).
� l
� I
1 '
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401 FB
II
SCHEDULE C
� I
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
1 FOR THE AUDIT OF THE 2022/23 FINANCIAL STATEMENTS
Standard Quoted Hourly
Hours Hourly Rates Rates Total
Partners 40 $ 250 183 7,320
Managers 60 175 133 7,980
Supervisory Staff 150 125 102 15,300
Staff 150 100 92 13,800
Other
Subtotal 400 44,400
Out ofex e
ocket
p expenses:
Meals and lodging n/a
Transportation included
Other included
1 Total all-inclusive maximum price $ 44,400
Note: The rate quoted should not be presented as a gneral percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price. (USE THE SAME
FORMAT FOR EACH SUBSEQUENT YEAR OF THE PROPOSAL).
a ;
� I
� i
l. !
ti
l `
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401 FB
(
SCHEDULE D
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
� IFOR THE AUDIT OF THE 2023/24 FINANCIAL STATEMENTS
Standard Quoted Hourly
Hours Hourly Rates Rates Total
Partners 40 $ 250 186 7,440
Managers 60 175
136 8,160
l Supervisory Staff 150 125 104 15,600
Staff 150 100 94 14,100
I Other
1
Subtotal 400 45,300
Out ofock
p et expenses:
Meals and lodging n/a
j Transportation included
Other included
Total all-inclusive maximum price $ 45,300
I
Note: The rate quoted should not be presented as a gneral percentage of the standard hourly
j rate or as a gross deduction from the total all-inclusive maximum price. (USE THE SAME
FORMAT FOR EACH SUBSEQUENT YEAR OF THE PROPOSAL).
l
� I
l
Ii
1 :
I
(( DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401 FB
I ,
SCHEDULE E
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
jFOR THE AUDIT OF THE 2024/25 FINANCIAL STATEMENTS
11 Standard Quoted Hourly
Hours Hourly Rates Rates Total
Partners 40 $ 250 190 7,600
Managers 60 175 139 8,340
Supervisory Staff 150 125 106 15,900
Staff 150 100 96 14,400
Other
i
Subtotal 400 46,240
Out of pocket expenses:
Meals and lodging n/a
Transportation included
Other included
Total all-inclusive maximum price $ 46,240
s ?
-� Note: The rate quoted should not be presented as a gneral percentage of the standard hourly
i rate or as a gross deduction from the total all-inclusive maximum price. (USE THE SAME
FORMAT FOR EACH SUBSEQUENT YEAR OF THE PROPOSAL).
I
DocuSign Envelope ID: F773A563-1ABF-456E-8A01-39919E2401FB
v;
i Farr'
419
S
L _ _ Y