HomeMy Public PortalAbout07) 7D Approcal of Sixth Amendment to the Agreement with Eide Bailly (Formerly Vavrinek, Trine, Day and Company)AGENDA
ITEM 7.0.
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: March 3 , 2020
TO: The Honorable City Council
FROM: Bryan Cook , City Manager
By : Susan Paragas , Administrative Services Director
SUBJECT: APPROVAL OF A SIXTH AMENDMENT TO THE AGREEMENT WITH
EIDE BAILLY, LLP (FORMERLY VAVRINEK, TRINE, DAY &
COMPANY, LLP) FOR PROFESSIONAL AUDIT SERVICES
RECOMMENDATION:
The City Council is requested to authorize the City Manager to enter into a sixth
amendment to the agreement for professional audit serv ices w ith Eide Ba illy, LLP
(formerly Vavrinek , Trine , Day & Company , LLP ) (Eide Ba illy) extending the i r audit
services for Fiscal Year (FY) 2019-2020 (Atta c hment "A ").
BACKGROUND:
1. On January 6, 2016 , the City requested proposals from qual ified Certified Public
Accounting (CPA) firms for a three-year contract to audit its financial statements
beginn ing with the fiscal year ending June 30 , 2016 , with the option t o renew the
contract for an additional two fiscal years , for a total of 5 years .
2 . On April 5, 2016, the City Council authori zed the City Manager to enter into an
agreement for professional audit services ("Agreement ") with Vavrinek , Trin e , Day &
Company, LLP (VTD ) for FY 2015-2016 .
3. On April 4 , 2017 , the City Council authorized the City Manager to enter into a first
amendment to the Agreement for professional audit serv ices with VTD fo r FY 2016-
2017 .
4 . On April 17, 2018 , the City Council authorized the City Manager to ente r i nto a
second amendment to the Agreement for professional audit services w ith VTD for
FY 2017 -2018 .
5. On January 2 , 2019 , the City Council authorized the City Manager to ente r i nto a
City Council
March 3, 2020
Page 2 of 3
third amendment to the Agreement for profess ional audit services with VTD for the
FY 2017-2018 GASB 75 accounting entries and related note disclosures .
6 . On February 5, 2019, the City Council authorized the City Manager to enter into a
fourth amendment to the Agreement for professional audit services with VTD for the
preparation and submission of the FY 2017-2018 State Controller's Office Cities
Financial Transactions Report.
7 . On May 7 , 2019 , the City Council authorized the City Manager to enter into a fifth
amendment to the Agreement for profess ional audit services with VTD for FY 2018-
2019 .
8. On May 17 , 2019 , VTD joined Eide Bailly , thus , was renamed Eide Ba illy .
ANALYSIS:
In April 2016 , the C ity entered into the Agreement with VTD for professional audit
services commencing with FY 2015-16 . The Agreement is for three (3) years with the
ability to extend it for two (2) one-year agreements , which would be through the audit
year for FY 2019-20 . This request will be the sixth amendment to the Agreement and
applies to the second of the 2 one-year extensions (Sixth Amendment). Since th is will
be the last year of the extension , a request for proposal will be issued to sol icit f i rms to
provide audit services beginning for FY 2020-2021 .
On May 17 , 2019 , VTD joined Eide Bailly , thus , was renamed Eide Bailly . Their audit
services were satisfactory for FY 2018-19 and , as a result , it is requested that the C ity
Council authorize the City Manager to enter into the Sixth Amendment with Eide Bailly
to perform the annual independent audit for FY 2019-2020 . The scope of services is
also amended to include the annual preparation California State Controller's Office
Cities Financial Transactions Report.
CITY STRATEGIC GOALS:
Actions contained in this report align with the City 's strategic goal of good governance .
FISCAL IMPACT:
There is no fiscal impact i n FY 2019-2020 as the audit costs will be budgeted in FY
2020-2021 . The total estimated FY 2019-2020 audit costs , with this Sixth Amendment,
shall not exceed $64,115 .
City Council
March 3 , 2020
Page 3 of 3
A TT ACHMENT(S):
A Sixth Amendment to Agreement with Eide Bailly
SIXTH AMENDMENT TO AGREEMENT FOR SERVICES
by and b etween
th e
CITY OF TEMPLE CITY
and
EIDE BAILLY, LLP
(formerly VAVRINEK, TRINE, DAY & COMPANY, LLP)
Da te d M arch 3 , 2020
Page I of 15
SIXTH AMENDMENT TO AGREEMENT FOR SE RVICES
This Sixth Amendment to the Agreement for Services (''Sixth Amendment"), wh ich is
dated for reference as indicated on the cover page, is hereby entered into by and between the CITY
OF TEMP LE C ITY , a Cali fornia charter city ('"City "), and E ide Ba ill y, LLP (formerly Yavrinek,
Trine, Day & Company, LLP) ("Serv ice Prov id er"), as fo llows :
RECITALS
A . On January 6, 20 16 , the C ity requested proposals from qualified Certified Public
Accounting (CPA) firms for a three-year contract to audit it s financial statements beginn ing
with the fisca l year ending June 30, 20 16 , w ith the option to renew the contract for an
additiona l two fi scal year s, fo r a tota l of 5 years.
B. On Apri l 5, 20 16, the City Counc il authori zed t he City Manager to e nter into an agreement
("Agreement") fo r professional audit services with VTD for Fiscal Year (''FY") 2015-16.
C. On Apri l 4, 2017, the C it y Council autho ri zed the City Manager to enter into a first
amendment to the Agreement for professio na l a udit services with VTD for the FY 20 16-
17 .
D. On April 17, 2018 , th e City Coun ci l authorized the C ity Manager to enter into a second
amendment to the Agreement fo r professional audit services with VTD for the FY 2017 -
18.
E. On January 2, 20 19, the C ity Co uncil authorized t he C ity Manager to enter into a third
amendment to t h e Agreement for profess ional audit services ("Third Amendment") with
YTD to include the preparation of t he required GASB 75, Accounting and Financial
Reporting for Po stemployment Benefits other than Pensions , acco unting entries and
disclosures for the FY ended June 30, 20 18.
F. On Fe bruary 5, 2019, the C ity Counci l authorized the City Manager to enter into a fo urth
amendment to the Agreement for professional audit services with VTD for the preparation
and submi ssion of the FY 2017-18 State Contr o ller's Office Cit ies Financi al Transactions
Report.
G. O n May 7 , 201 9, the C ity Counci l a uth o ri zed the C ity Manager to enter into a fifth
amendment to the Agreement ("Fifth Amendment") for professional audit services with
VTD for FY 2018-19.
H. On March 3, 2020, the City Council a uthori zed the C ity Manager to enter into a sixth
amendment to the Agreement ("Six th Amendment") for p rofessional a u d it services with
VTD for FY 2019-20.
Page 2 of 15
OPERATIVE PROVISIO NS
NOW, T H EREFORE, in consideration of the promises made and recited herein, the
parties do hereby e nter into t hi s S ixth Amendme nt, w hi ch modi fies and amends the Agreement as
fo ll ows:
I. AMENDMENT. The Agreeme nt is hereby modified and amended as fo ll ows:
1.1 Section 1. Section 1 is hereb y m odified and amended as follows:
Subject to the provisions of Section 20 "Termination of
Agreement" ofthis Agreement, th e Term of this Agreement is for
12 months comme nc in g on the date w hen the Sixth Amendment
is properly executed by the appropriate authorities of the City and
Service Provider.
1.2 Section 2 of the Agreement i s hereby amended as follows:
T he Service Provider wi ll p repare the Califo rni a Stat e Contr oller's
Office (SCO) Cities Financial Transactions Report t o be submitted
to the SCO by the deadline stated in the SCO's letter for the FY
20 19-2020 fi nanc ia l data.
1.3 Section 4 of the Agreement is h ereby amended as follows: The
third sentence of Section 4 , s ubparagrap h (a) of the Agreement is
amended to read as follows:
The total a ll-inclusive maximum fee for FY 20 19-20 audit shall be:
Sixty-Four T housand One Hundred Fifteen Dollars ($64, 115).
Amount not to c hange unl ess additional compensation is approved
in writing by the City Counc il or City Manager.
2. GENERAL PROVISIO NS.
2.1 Remainder Unchanged. Exce pt specifically modified and amended in
this Sixth Amendment and previo us amendments , First, Second, Third , Fourth and Fifth
Agreements remain in fu ll force and effect and bind in g up o n t he parties.
2.2 Integ ration . Thi s Sixth Amendment consists of pages 1 to page 6
inclusive, which constitute t he enti re understanding and agreement of the parties and
s up ersedes a ll negotiati ons or previous agreements between the parties with respect to all or
an y part of the transaction discussed in thi s S ixth Amen dment.
Page 3 of 15
2.3 Effective Date. This Sixth Amendment is effective on the date it was
formally approved by the City Council and executed by the appropriate authorities of the
City and Service Provider.
2.4 Applicable Law. The laws of the State of California shall govern the
interpretation and enforcement of thi s Sixth Amendment.
2.5 References. All references to the Agreement include all their
respective terms and provisions. All defined t erms utilized in this Sixth Amendment have the
same meaning as provided in the Agreement, unless expressly stated to the contrary in this Sixth
Agreement.
IN WITNESS WHEREOF , the parties hereto have executed this Sixth Amendment t o
the Agreement on the date and year first written above.
CITY:
THE CITY OF TEMPLE CITY
By: __________________________ __
Bryan Cook, C ity Manager
ATTEST:
Peggy Kuo, C it y Clerk
APPROVED AS TO FORM
Gregory M. Murphy, City Attorney
Page 4 of 15
SERVICE PROVIDER:
Eide Bailly, LLP
By: ________________________ _
Name: --------------------
Title: ---------------------
By: ________________________ _
Name: --------------------
Title: ---------------------
Page 5 of 15
A notary public or oth er officer completing this certificate verifi es only the identity of the ind ivi dua l who
signed the document to wh ich this certificate is attached , and not the truthfulness , accura cy , or valid ity
of tha t document.
NOTE: SERVICE PROVIDER'S S IGNATURES SHALL BE DULY NOTARIZED, AND
APPROPRIATE ATTESTATIONS SHALL BE I NCLUDED AS MAY BE
REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION , OR OTHER
RULES OR REGULATIONS APPLICABLE TO SERVICE PROVIDER'S
BUSINESS ENTITY.
ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA
STATE OF CALIFORNIA
COUNTY OF LOS A NGELES
On -------,~:o------''L....:2=0=--, before me, -~~71-:::-::rr:'lrr.:r~=:;::;;;~---...,-=,...,::::-o==-:-==...---Date Name And Iitle Of Officer (e .g. "Jane Doe , Notary Public")
personally appeared-------------------------------
Name of Signe r(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the withi n in strument and acknowledged to me that
he/she/they executed the same i n his/her/their authorized c apacity (i es), and that by
his/her/their signature(s) on t he instrument t he person(s ), or the ent ity upon behalf
of which the person(s) a cted , executed the in strument.
I certify under PENALTY OF PERJURY under the laws of the State of Californi a that
the foregoing paragraph is true and corre ct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though this section is optional , completing this information can deter alternation of the document or fraudulent
reattachment of this form to an un intended docume nt.
CAPACIT(IES) CLAIMED BY SIGNER(S)
Signer's Nam e:
Individ ua l
Corporate Officer
DESCRIPTION OF ATTACHED DOCUMENT
Title(s) Title or Type of Document
Partner(s) Limited
General
Atto rne y-! n-F act Number Of Pages
Trustee(s)
Guardian /Conservator
Othe r:
Date Of Document
Signer is representing :
Name Of Person (s) Or E ntity(ies)
Pa ge 6 of 15
A notary public or other officer completing this certificate verifies only the identity of the ind ividual who
signed the document to which th is certificate is attached , and not the truthfu lness, accuracy , or validity
of that document.
NOTE: SERVICE PROVIDER'S SIGNATURES SHALL BE DULY NOTARIZED, AND
APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE
REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER
RULES OR REGULATIONS APPLICABLE TO SERVICE PROVIDER'S
BUSINESS ENTITY.
ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On ------...-==-----''L-.:2::..:0=--, before me , -lt'T'::":::::-::-~rr:l:r::r~=c;::""l"='""'=__,.,.=.,..,-::c:--J=::-:-:-T"'":"':t:T."::!'...----Date Name And l rtle Of Offrcer (e .g. "Jane Doe, Notary Publi c")
personally appeared-------------------------------
Name of Si gner(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity (ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted , executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of No tary Public
OPTIONAL
Though this section is optional , completing this information can deter alternation of the document or fraudulent
reattachment of this form to an unintended document.
CAPACIT(IES) CLAIMED BY SIGNER(S)
Signer's Name:
Individual
Corporate Officer
DESCRIPTION OF ATTACHED DOCUMENT
T itle(s) T itle o r Type of Do cument
Partner(s) Limited
General
Attorney-In-Fact Number Of Pages
Trustee(s)
Guardian/Conservator
Other:
Date Of Docu me nt
Signer is representing :
Name Of Person (s) Or Entity(ies)
Page 7 of 15
EXHIBIT A
SCOPE AND SERVICES
Section 5 -Audit Plan / cope of Work
''· Our P ro p o ,cd A udit P lun
Our c ngagcmcnt a pproa h for the: Cll~ of I cmpk C i t~ Judit h~ "cll-tkta i lcd goJb b) "hil:h the c Pg Jgcmc nt
pa n nc r a n mea urc progrc 'l'i . Our aud tt pl :.~n mclud c' lrcqucn t contact bc twcl'll the pannl.'r and the
cngagemt:nt te am to •~~u rc thJt obj cctiH~l> Jrc attJtncd a~:~.o r dm • to the audit~ ·heduh:!> and th.ll p roble m ~ arc
ommunicatcd an d dea lt "ith on a timd ~ ba,i O ur l.'n gagcmcnt approa h lx'nl'lit-. I rom our lo ng
ac cumulated c\J)<n e n ·c during "ht(h our linn h ~ i~knll fied 1-.t.:" an:a!> ul lithllll:tJ I .tml a~.:t.:ountllll.! con~.t.:rn m
thl· audit proct.:~ . \-l o r~~ im portant I~. tht.: a pp nMc h pro' tc.k' lilr a complete rc:a'>-.t.:\'>lllCnl ol thl.' m.m.agt.:rnt.:nt
anu ~.:o n t ru l e m iro nm ent in c.tc h } c.u\ .tud it and t hu• '' o..tp.ihl.: ot rco;JXmd tn g tn t ha ngc ' and ''til cn,urc thtt t
dead l ine ~ nrc met in iss utng the ann uJI linan c ial .,tat eml.'nh.
• /\1111 11 l.·t~S!,t' (I/ the C/1\' 0 / r.·mp!t· ('ttl' and \lllllictr l'llllt ll'\ W t.: hJ\ t.: 1.'\tl.'lhi \ \.' t.:\pt:fiCII~e auditmg
!(lHc:rnmt.:nt.tl cntati c 'itmtlar to th~.· l tt ~. I h" ..-,pl.'ricnl.c cn nbfl', u' to pe rform a morc ctri ten t
audi t and idcnt al} l..c) audit ri.,1,.,
• ( 'o\1 c!tft•('t l\'l!l lc!.\\. Our C\flCrt ·nc t.:U auu itor\ kl\\ pc rt'Cltl"g c o l t Urll O\ l'l n:Jut't.: :--o ur l'O:.t
• ''"'''""i!', \\. t.: tal..c dcadltnt.:~. both ~our <1 11J lllt r . \CrtOU'>I)
• /',trtnl'r mcuwg,a 1111 alwm.•llt lkciding on audit 't ratcg t c~ rcqutr\.'!> '>Ca!>o ncd JUdgrnl.'nt Our
pa n n~·r, an d m un agc r-, ha\ c Pl.'l'll h c,t \1 1 ~ ,and l.(m ti nuou'l~ Ill\ nl' cd 111 gm crnmlntal audtt'
1-urthcnnorc. > ou "ill ~ abll.' to con-,u lt \\ ith 'l.'ll o r h.: am mem ber, '' hc nc\ er necJeJ thro u •I out the
~car. \\ t.: Me ,1\·atlublc d un ng the~ car ln r .111~ tddllt<lll J I c n'ultatt on th at ma~ .m c .mJ 'f'l'l ttkd 111
the rc qlll.:~t fo r propo al.
Pm!l'tf ,\/umt!fl'lll\'111 Onrru/1 , llu/11
Our audi t pl nn fo r ea c h o f th e !heal 'car'> im o l H:s ~i ' (61 t agt.:~ for each audit . I ht''>C ta gc' ;~re ·
'itagc I . Planning
'tag e 2. Risf.. A !>~C !>~rn cnt
. tngc 3. Pr..:para ti on of the 't.:rull uJi t Pla n
tagc ~. Condutttng. the l ntenrn \udtt
tagc 5. Condu ting tht.: I ma l \u<.lit
tagc 6 . Re po ning
1 hc'c .,ta ~c' ''ill ht.: a pp lil.·d to th e Ci t ~·, C I\ I R a uJ tt ·""el l,,, th t.: tllht.:r "ud th I ht.: aud tt appn>Jlh "ti l 11.:
tat lured to the rt!>l.. of cadt in dt Hd ual ·nttl) .111d th t• ~l·ak "al l .tl o bt· <td tLJ\tt·J "' ncc e ,~Jr) to ·n-.ur.: that t·.tch
cntll) ·, tin.mcial 'tat cment' a re fatrl) '>t.ncJ
.\'tag <' I J>fu1111111g
J l) will mee t wi th 1-.C) stall to plan tht· audi t wn ic c., lor the )Car . I hc~e meetin gs ''ill di ~ u s ;,II nu dit
i'> ·ues and the proposed in terim '~or f.. pl an. IJ unng tim p hJ~e. \\I.' "ill a co mpli!>h
• J<.lt.:nttf> ing thc lc> [)cr~on n c:l anJ t ontac t in tht.: I· in an cc Department anu o ther J ·p~tn mcnt ~
• I dental> tht.: Ci t) o f I cmplc lit ~ ~•gntl il ant d a,,n o l tran\,tc ttom and bu•mc p rocc~'e'
• c lht.un .1n unck .-..rnntiinf of a udi t ns f.. .trc."
• Ot.:,t•loping an undt.:rilandm ~; of un u,u.tlttan....adwn-, or t.:\C il h th.tl h"'t: ll \. urrt.:LI Juran thl· li~i..JI
\car.
• I o rmahting l ogi~ti s.
• h na ltti ng the t i mcframt.:~ lo r tntcr nn tic:IJ\~.-o r l..
Page 8 of 15
cction 5 - A udit Plan/ cope of \Vo rk
\. Our Pro pu.,cd \udit l'lan . (Con tin ue d )
I 1\t I 1/1/t'fll
th~ mlormat1 n obtJ n.:d m the plan nm .., m~·ct ng \ 10 "Ill JX'rlo n n a n !> J!>~ • -.mcnt J!>
rcqum:J b) tatcmc nh on ud 111ng t • .md.lrlh ( · \\) 111 t-c u'ed tn the pl"l:para uon o l thl' nH·rall audll pl.m
t\' pan olth1 n 1>. a \C~~me nt "e ''Il l pt:rlorm t he l oii U\\111 1!
I. ObtJIIl un nJ ~.:r..t.tndmg of the c:n t ll~ and lb erl\ rron n11:111 and it u md m at~..·n a l '""mphan~~..·
reqlllrcmcnh \ I 0 '"' rc lcr to the Cit ~·, priM ) car ( omprc:r c n'i ·' c ,\nnu II I m :~n c1.11 l{cJX>n . mnual
buJgd Jo..u rn ent . munu .. 1pal ... <x.k :tnd oth er rt:ln .101 d o ~urn cnt..ttmn to a 1 1 " 1 llUI un ~r !i .tndmg ul
the <. I} ) bu' nc'' ell\ Ironment and n 'b \ II> "Ill .11 o '"on du 't mq uu') "ll h kc) mJn 1 lu 11 "llhm t h ~·
II\ ''ho arc rc pon 1ble lo r c \C\.U IIn~ th e l'll ) \ !>trJ te g•~.: plm
~ < lbt .un an unJ c;r.,tandi nt o l thl cnllt~ ' mt c rn .ll ~o ntw J , V I J) "Ill rc k r tn the <. 11' ~ l rg>lll ll.lll on.al
~.-h .m,, buJg ct . \\ nttcn Jl(lh l •C' JnJ Pfll \.CJure' r loJil UJI an:{ Ullllllg S) te nh to ,, I t \\l lh lll lr
unJ~r-.t .mJ i n g u f mtcrnal '' ntmh I f) \\I ll .11 ,, pt.: lllml in,w•n othcn .ll ln n, lll\pt:diOn. and " 11..-
tlm u ..,h ., lll I..C ) tntcm.tl ~o:Oil l fl-,f I ~~ 'un: the 1.: lo.l 1.. mtr oJ.. J ft: r per !) d e 1gr ~,.J J J tlllp lcmcn h.'J
"e fttcr-a 1 c 1 nt rnl ~~d e, iftdud ...
l{c, cn uc: CollcliiOn Btll n
Pn ·urcmc.:nt C h D 1~~ur..cme nh
ln'c: trm·nt manilgcmcnt
Debt man.s g c.:mcn t
I manc ial rc:po rt mg
't car end lo!.in g
B udg~·ttnl!.
Rr'lo. manag crnc.:nt
ll•m anR c.:"~•r~""' P.t~ro ll
II t ontroh r ·l.tt rng tu all .s pcc:t -. ul t h~· .lliJ it
l ... c:r nccc ... ,
. 1.'\."Urll)
Ua d,up and I'C:Ul \ I.' I)
·~ tem intcrt:KI.''
I raud Pr~·, c:nll n n l1 ro1.,ram
<•r.tnb '\l ana t-c.:ment
Prcl lllll ll JI) .tnal~ ti 'JI r ., 1 '". dl..'t ·nnulJIIOil ul prclun in.u: mJt •nJ I II~ J •,cJ ,
\n .1 1 ~ "ol l..ml \\ m •~'tat cmcnh 11 an~
'i Con'IUl'rJttUn o l no,lo. or m.llcnal llll '>\t,ll eml'lll .II the lll dl\ IU lt.l l J . 'tlll lll hal an "1..'. d J " or' trJil\J \.:II(IIh and
Jl\do,urc Jc, cl.
6 ... w, ... .ng th en I.!> o l nuttcna lmi\\IJt •mc11t at twth thc li n anuc~l !>IJtc:mc nt anJ rch:\ ant th\c..'niUn k' l.'h
7 1\'>\C: · the n 1>. of ma tcnal noncompliance '' ith I,J \\' anJ rl'gulauon that h.l\ ~ ,, J1rcct and mah na l d h."\:1
on the tin.1n ial '>latcmcn b .
I \JIUJllon of the en~ ... m l unna l lllll l ec.:hn o lo ~,t~ anJ gc ncralmlo mlJilllll te~hno lug~ control,
'ta I' l....l!rtJ.<IfCJII u /1 v!tltl! Q.~t:r ,l fl.._l udllf'ft.m
Onn· the.: plannrng and ri\lo. a ... l''>'>tnt:nt prO\:c" arc nunph:te an m~:mll au d1 t pl.tn '"" bt: pr~:p.s r c.:J I he pl.1n
,,lfl .. pc,ll~ ·ath .tudll ta'>lo.. '>t .tllin ~ u lgn mc:nto,.tunc:llm: .. .tnJ Ju~· date I he pl.m \\lll .llo,o or·.1 J ''"ll thc
\\orl.. "''ignmc:nt' lx·t\\ccn mtcnm .tnd linal audit 1111 cline' Th~.· .JUdit pl .u "ill ind ud · ti l· tral' Jd un
~~dt·~ "h ll h hJ\C ~l.'ll l>(:kded h•r mtc.:mal u •ntwl tt:,lllll.; JnJ th,,.,c h1r ''h1 ~h unl ~ th c: ~.k t J II!:J "JIIo.
through "Ill ~ pt:rfonned
\\ c "11! J l o prcp.1rc ·
I he prc:lu nmar~ rn:uc r inli t~ gUide! me' the a udit program .... mduJing con ,idcrat ulll o l
IJcnlllkallllll ol arcct "here \pt:\.IJI Jud1 t nm,•J~:r.J t ~tHh He nc,e:.,.~r~
Dc .. tg n ll l tun her .tu dit pro~..eJure '> to r •Ju~.:~· ri'lo. 11 ~on idc reJ n ·ce~ .. J~.
I he Je, cl o prncnt ol C\fX'ddl l\• '' l (.~r J nJh II 1..JI pr .. ~cJ u rc:.. t lml!hnc ... :.~nd a •gnm c:nt lll all auJ11
rc,pc.m,i tllllllc'
Page 9 of 15
Section 5 -Audit Plan /Scope of Work
1\. O ur f'ropo cd Audit Pl an. (Continued )
Stow ./ the !mt run A udu
Our tntcnm licld"orlo. date \\Ill nom1all~ occur dunn~.t t h~ lard1-f\l a) t tmdramc. I he )pcnli l ''c:c ~"'II
be determined d uring th e pl anm ng mee tin g and pn.:parattnn ul the Jud it pl.m prucc:~'
\k \\ill o btain an undcNandin g of tht' dc o,ign a nd unplerne nta tion of the fin,mctal rep ort ing \~ -.tem to
undt'r t.Jnd the lo ll o" of inl orm .ttt on lur
I . l:..tlh d ..t l>~ of t ram.a ll ion~ th..tt t> t gnili~.m t to the lin.ut ·t .tl >t..t tcmc nt>.
~ l h ' prOct'dU rt'~ \\ it hin OOth aut oma ted and m,tnuaJ '· 'h:m ~. b~ \\ hich th lhe t ran~.tcl i on \ .trl' tnttt,IIC:d.
authontcd. recorded. procc>>c:d .• mcl rcponetlm the lin.lllL i.tl ~tatcmcnb
3 I h • rel ated accountin g rcwrd . '' hcthcr tn clellron L or manua l 'upp on ing inform.Jil on. nnJ ~~l't f ic
.tccounb 111 thc linanctal tJll'lllcn t tll\o hc:d 111 tll tttJttllg. a utho rwng. rclo rdlll g. pr ·~:.,~m g. .md
repon ing tran sa ·t ion!\
~. llo11 the: in fo rma tio n )~ >tcm > ~..tpt u rc ) ~:vent\ .ltl d Ll.l nclill on> othe r thJn d.~S C !> ol tr.t n>..tll tllll> that
arc 'igni fi cant to the lin .m iaf 'tatcrn enh .
5. I he fin an tal re po n ing pr oce s usecl to prcpJn: the (..II)' financial t..ttement s . tn lud tng. ,tg.nt li cant
acc o untmg es t imate Jnd di\ 1<>-ure\.
Sta g<' 5. thi! F11r.li .ltu/11
\\ c ''i ll co m men c our final fic:h.h,orlo. J soon J C it ) ol I em ple Ci t) ha u f lictent l ~ do cd thl'tr anountmg
rc: ords. \\ c C\pcct fi nal fiel d \\ or!.. to talo.c pia e du n ng . c ptcmber -Iober
Duri ng thi\ phJ,~. \\C "i ll pcrfurm \Ub t.u ll iH: aut! it prth:l.'durc!> on the } ear end ~tatcm c nt o l fll't po ttllln ..tnd
fund b.l iJn c: . rl'\cnuc and C\pcnJIIurc c\pcn'c a o un1 \\ c \I ill u~c .1 \UrtCt } o f a udi t pr oc edu re' \\htch
ma} in ·l ud · nuhidc cun lirrn~u wn -.. 'tJII,tt ·al 'am pling. Jnd dctatlcd te,ung o f 'lhl'dulc,. an al~ 11 1.al re\ te \\,
mq utt:. and o b cr~ atr n Dunn g tht ph a'c "e \~ill dr.11t the fi n.1ncin l 'tatc:mcnh
Sta g. ~. th,• R,•(l(?rfllll! PIICIIt'
r\tthL' cn cl u l thc .llldtt prlll.:e" \\C \\rllm c.:t \1 rt h 1..1.') -.t.JI! 11 1 (ll\Cr thl' toiiO\\IIl l!
• D t ~l u tmpro' cme nt lor ub'>e q ue nt ~car a udit plan .
• \1 ce t wit h th e ud it Co mmi tte~· or o unri lto prc-,cn t the rc w lts of th c aud it
• Cummumca tc \\ it h t h o~c ·h arg~d "tth gm CniJtl\:e
• \\ e ''ill prcpJre Drafi ud it R ·pom "llh ma n..tgcm~:n t I 'ttl'r cu mm ·nt to llldttJgcml'nt pn or to the
a~trced upon 1~-.u ancc da te
• \\'e "ill prc p.m~ 1-in a I D ra ft ud it Rc:pon ~ ami mat t.J gemc nt lc ucr commc nb lor pre ent ation to the Ctt)
prior to the agree d upo n ts u<~n l' d.t tc .
• ignilica nt dc fi c iencic' and materia l \\l'Jk nc,!\c' (t l a n ~) tdcn t ificd dunng the l'Our..c ol the audtt
l 'rofc~'>t onal '>tand.ml~ rc~.Ju i re \Hillen commumcat tvn to management and tho c Lhargcd "tth
go~t:mance. of signif icant dctictcn te or matena l '' c.t lnc ,~e~. tdent ili ·d J unng thl' .tudit.
• Other m Jttl'~ that \\c lx:ltc\c to be ol pote nttal lxnelit to the m.snagement ol the (ttl . :.u ·h J!>
rccommcndau "'fur opcrauo nJ I or Jdmtnt'>tr:.l lt \c dlictl•n c~. or for trnprO\ mg C\1 ung internal on tro ls
Page 10 of 15
Section 5-Audit Plan /S cope of Work
Our P roposed A udit J'l a n , (Co ntinu ed )
C ommu ni cation
We do not belie\ c in s urpri se:.. Although thc reporti ng ph.!.l>c inYolvcs a n: ap of the procc s~ '~e ''ill be in
conqumt com muni a t io n regardi ng the each as pect of the audi t throughout the en tire proce ss . You "ill not
ha vl' an) urpri c at the cnd of the audit.
B. Usc o f C ompute r Assis te d Auditing Technique~ ~o fh, a r c in thr f.ngagcmcnt
J'hc ~C) mcm btr.. assigned to the Cit~·) engagement tc .un arc c:o.jXricm.:cd 111 "or~ing "i th munlllpJI
in torm:.ttion s~stc m such u~ un ard . Omcl·. l•coph.:Solt. II 1\S. S,\P. G rc .ll Plain,, I·DI ·'\. and lli\RRIS
Ut ili!) 13il ling ~ tcm~. I hc retorc mmlmal anwu nh o i'CII~ lime ''ould be nccc J~ to tr .un our tcdrn 111 ho"
to mu~t cllkh:ntl~ acn:~ Cit~ tr.m)acllon~ ,md dm:um .. ·nt-. lo r the audit.
I o a~'>i t in our as e ·mcnt ot the II en\ iron ment under the CO"'O and COB II trnmi!\\Orl... the cn~agem rnt
te am wil l Ulllll e o ur I I pcciah :.t: 1 . Jeanne l.ol..cn. Partn er. C PA. C l 'A, Cl r P. C(.BI A. 1-,IRA . r urther
infonnation on ~I Lol..rn and her C\pcricncc b in c lude d in the rc urn c sec tion o f the proposnl
C. En gagement Timclinc
\Ut l it \1ilc.-tnnc'
l'l.mrun, \ k c:l m~,; {Stage I )
,\u,ll l l'l.mn ong ('tlagc:! and 1)
l ntcroo n l·io:lch•o rl.. (~Hlgc 4)
I '"'al 'I' cdr-I nt.l \\ orl.. ( 'tt.u1)
r ~.:~l 'I I:Jr-l.nt.l \\ llrk ( l.nd) ( 'it.igc 5)
Deli\ ct l>ruft \uditur,' Rclk'n t "'·'~"' (•l
Dcli\l.~r Final Rcpom
Morch
April
1\10 )
"crtcmbcr
c plcmbcr
O<..lobcr
liVCIIIbCr
Pa ge II of 15
1arch
t\pril
\.l oy
<,eptember
'tcplcmlxr
October
'IJ\CIII bCr
EXHIBIT B
COMPENSATION
Co t Propo al (AIIInclu ive Maximurn Price)
\\'c a n: linn I) committed to prov id in g t h e Cit) of I em pic it) ( it) "ith th sup c:rio r k"c l o f p role) 1onal
~cl"\ u:c .. th.u the (it ~ h.s -. l.omc 10 C'\jX~t lrum tl) in dcpcnJcnt auditor... W e '>In' c to rm•' tdc c\l·cpllonal 't.sll.
qual i t). and \Jiuc at the IO \\C~t po '>thlc Icc: con-.i\lcnt ''itt-the c\pcctation-. ot the (it~ Our mtc ... .trc
.:ompctlll' c . C:' en '' llh t•ur d epth o l '\pen ·n c .111J lomnut mcnt to 4u.tht~
l lo"c' cr. ''e do not ''Jnt ll'c: ,tlonc: to be .tn obl>t.ldc 111 t h~· ltl\ ., )C:Icl.lion ot \ .t\flflc~. I nne. D.t ~ A. (o. I I P.
\\ c \\o uhl he h.tpp) to UI\Cu~-. .tnd nc~u llatc .. uth tee: '''uc:-. tnd n:.,pon.,lblllllc '> "llh ~ou
lll) o l l l·n1plc l1t\ <. I R AuJII
ttn..luJc., (, ''' ltrnll <\l 'Pl
:! "''" k 1\uJII R.:port
I ,._,umc:' llll.: 11\J I••r JlrliWJilll
201~20 16
5 0 .00()
Ill UHlll
'
11 \JJt ll lll\.11 nuJvr pww-an~ ''til h~ ~.500 p.:r pr u~..ant
201~2016
l'unn<:·r ~:!ll
\.l ,uw~~r 1!!11
upcr'< "ur I 'O
'wnwr 110
... t.lrl ') ..
p Jr,IJ1fl l h:"II HUl h"
Pro
2016-2017
~11.(111()
l .UUU
20 16-20 1
:;:!o
IK U
I ()
1<10
')'
h'
Page 12 of 15
2017-20 18 20 18-20 19 2019-2020
~ I 'lltl '1 ll I 1 h 1n
.) .04() I I!P '\.~"'
;"','114 --
-20 18 2018-2019 201 9-2020
.,.,., :! i ' :!111 1 IM5 I 'I I 1'17
I <, l'iiJ I b--1
I ll 1<1 'I I""''
'Ill lU I 111 1
(1"7 (•'I 7 1
EXHIBITC
INSURANCE
A. Insurance Requirements . Service Provider shall provide and maintain
insurance , acceptable to the City , in full force and effect throughout the term of this
Agreement , against claims for injuries to persons or damages to property which may arise
from or in connection with the performance of the Services by Service Provider, its agents,
representatives or employees. Insurance is to be placed with insurers with a current A.M.
Best's rating is an assigned policyholders ' Rating of A (or higher) and Financial Size
Category Class VII (or larger).
Only the following "marked " requirements are applicable and Service Provider shall
provide the following scope and limits of insurance :
1. Minimum Scope of Insurance . Coverage shall be at least as broad
as:
x Commercial General Liability . Insurance Services Offi ce form Commercial
General Liability coverage (Occ urrence Form CG 0001 ).
x Automobile Liability . Service provider shall maintain automobile insura nce at least
as board as Insurance Services Office form CA 00 01 covering bodily injury and
property damage for all activities of the Service Provider arising out of or in
connection with work to be performed under this Agreement , including coverage
for any owned , hired , non-owned or rented vehicles .
x Workers ' Compensation . Workers' Compensation Insurance (Statutory Limits)
and Employer's Liability Insurance as required by the Labor Code of State of
California covering all persons providing Services on behalf of the Service Prov ider
and all risks to such persons under this Agreement.
x Professional (Errors and Omissions) Liability. Profess ional liabi lity insurance
appropriate to the Service Provider 's profession. This coverage may be written on
a "claims made" basis , and must include coverage for contractual liability . The
insurance must be maintained for at least three (3) consecutive years following the
completion of Service Provider's services or the termination of this Agreement.
During this additional three (3) year period , Service Provider shall annually and
upon request of the City submit written evidence of th is continuous coverage .
Service Provider shall maintain professional liability insurance that covers the
Services to be performed in connection with this Agreement. Any policy inception
date , continui ty date , or retroactive date must be before the effective date of this
agreement and Service Provider agrees to maintain continuous coverage through
a period of no less than three years after completion of the services required by
this agreement.
Page 13 of 15
1. Minimum Limits of Insurance . Service Provider shall maintain limits
of insurance no less than :
(1) Commercial General Liability . $1 ,000 ,000 per occurrence,
$2 ,000 ,000 general aggregate for bodily injury, personal injury and property damage.
(2) Automobile Liability . No less than $1 ,000,000 combined
single limit for each accident.
(3) Workers' Compensation . Workers' Compensation as required
by the Labor Code of the State of California of not less than $1 ,000 ,000 per occurrence
and Employer's Liability Insurance with limits of at least $1 ,000 ,000 .
(4) Professional Liability . $1 ,000 ,000 per claim and 1n the
aggregate.
B. Other Provisions. Insurance policies required by this Agreement shall
contain the following provisions:
1. All Policies . Each insurance policy required by this Agreement shall
be endorsed and state the coverage shall not be suspended , voided , cancelled by the
insurer or either Party to this Agreement, reduced in coverage or in limits except after 30
days' prior written notice by certified mail , return receipt requested , has been given to
City.
2 . Commercial General Liability and Automobile Liability Coverages .
(1) City, and its respective elected and appointed officers ,
officials , and employees and volunteers are to be covered as additional insureds as
respects : liability arising out of activities Service Provider performs ; products and
completed operations of Service Provider; premises owned , occupied or used by Service
Provider; or automobiles owned , leased , hired or borrowed by Service Provider. The
coverage shall contain no special limitations on the scope of protection afforded to City,
and their respective elected and appointed officers , officials , or employees.
(2) Service Provider's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the lim its of
the insurer's liability.
(3) Requirements of specific coverage features or limits
contained in this Section are not intended as a limitation on coverage , lim its or other
requirements , or a waiver of any coverage normally provided by any insurance. Specific
reference to a given coverage feature is for purposes of clarification only as it pertains to
a given issue and is not intended by any party or insured to be all inclusive , or to the
exclusion of other coverage , or a waiver of any type . If the Vendor maintains h igher limits
than the minimums shown above, the Agency requires and shall be entitled to cove rage
for the higher limits maintained by the Vendor. Any available insurance proceeds in
Page 14 of 15
excess of the specified minimum limits of insurance and coverage shall be ava il able to
the Agency.
(4) Coverage provided by the CONTRACTOR shall be primary
and any insurance or self-insurance or ma inta ined by Agen cy shall not be required to
contribute to it. The limits of insurance required herein may be satisfied by a combination
of primary and umbrella or excess insurance . Any umbrella or excess insurance shall
contain or be endorsed to contain a provision that such coverage shall also apply on a
primary and non -contributory basis for the benefit of Agency before the Agency 's own
insurance or self-insurance shall be called upon to protect is as a named in sured .
(5) Any failure to comp ly with the reporting or other provisions of
the insurance policies , including breaches of warrantie s, shall not affect coverage
provided to City , and its respect ive elected and appointed officers , officials, employees or
volunteers .
3 . Workers' Compensation Coverage . Unless the C ity Manager
otherwise agrees in writing , the i nsurer shall agree to wa ive all rights of subrogation
against C ity, and its respective elected and appointed offic ers , officials, emp loyee s and
agents for losses arising from work performed by Service Provider.
C. Other Requirements . Service Provider agrees to deposit with City , at or
before the effective date of this Agreement , certificates of insurance necessary to satisfy
City that the insurance provisions of this contract have been complied with . The C ity may
require that Service Provider furnish City with copies of orig in al endorsements effecting
coverage required by this Exhibit "C". The cert ificates and endorsements are to be signed
by a person authorized by that insurer to bind coverage on its behalf. City reserves the
right to inspect complete, certified copies of all required insurance policies, at any time.
1. Service Provider shall furnish certificates and endorsements from
each subcontractor identical to those Service Prov id er prov ides .
2 . Any deductibles or self-insured retentions must be declared to and
approved by City. At the option of City, either the insurer shall reduce or e limin ate such
deductibles or self-insured retentions as respects City or its respective elected or
appointed officers , officials , employees and volunteers or the Service Provider shall
procure a bond guarantee ing payment of losses and related investigations , claim
administration , defense expenses and claims .
3 . The procuring of such required policy or policies of i nsurance shall
not be construed to limit Service Provider 's liability hereunder nor to fulfill the
indemnification provisions and requirements of this Agreement.
Page 15 of 15