HomeMy Public PortalAbout13) 7J Approval of Agreement with Vavrinek, Trine, Day & Company, Audit ServicesAGENDA
ITEM ?.J.
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: April 5 , 2016
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
By : Tracey L. Hause, Administrative Services Dire cto r
SUBJECT: APPROVAL OF AN AGREEMENT WITH VAVRINEK, TRINE, DAY &
COMPANY, LLP FOR PROFESSIONAL AUDIT SERVICES
RECOMMENDATION:
It is recommended, the City Council accept the Aud it Standing Committee's
recommendation and authorize the City Manager to enter in to an agreement for
professional audit services Vavrinek, Trine , Day & Company, LLP (VTD) for the Fiscal
Year (FY ) 2015-16 .
BACKGROUND:
1. On August 2 , 2011 , the City Council approved a consultant services agreement
(Agreement) with Vasquez & Company , LLP for accounting and auditing services
and authorized the City Manager to execute the Agreem e nt.
2 . On January 6 , 2016 , the City requested proposals from qualified Certified Public
Accounting (CPA) firms for a three-year contract to audit its financial statements
beginning with the fiscal year ending June 30 , 2016 , with the option to renew the
contract for an add itiona l two fiscal years , for a total of 5 years .
3. On February 5, 2016 , the deadline for the proposals , the City had received 11
proposals .
4 . Between February 5 , 2016 and February 19 , 2016 , the review panel (i .e ., City
Manager Cook , Administrative Services Director Hause and Parks and Recreation
Director Burroughs) independently reviewed all proposals .
5. On February 19 , 2016 , the review panel met and based on individua l rat i ngs ,
selected three firms to interview (i .e ., VTD , Rogers , Anderson , Malady & Scott , LLP
and Vasquez & Company)
6 . On March 9, 2016 , the review team interviewed the three firms .
City Council
April 5, 2016
Page 2 of 4
7. On March 18, 2016 , the Audit Standing Committee met and received the
recommendation for professional audit services to be provided by VTD.
ANALYSIS:
Since FY 2014-15 was the fifth year that Vasquez & Company LLP had completed
accounting and auditing services for the City , and in order to maintain best practices as
recommended by the 2012-2013 Los Angeles County Civil Grand Jury Report CGJ
Report , the City requested proposals for professional audit services for the FY 2015-16 .
It is industry standard to request proposa ls from qualified Certified Public Accounting (CPA)
firms for an initial three-year period to audit its financial statements , with the option to
renew the co ntract for an additional two fiscal years , for a total of five years . This practice
of intending to engage a CPA firm for a minimum of three years provides consistency for
the engagement which is beneficial for both City staff and the CPA firm . The f irst, and
even the second year of the engagement, is labor intensive as the CPA firm is getting to
know the City 's organization , staff, financial policies and practices. Subsequent years
tend to be less labor inten s iv e as the CPA firm is more famil iar with the organizatio n, has
established a working relationship with the City, and expectations by both parties are
better understoon . Unless there are extenuating circumstances , changing auditors in less
than a three year timeframe in not productive for either the CPA or their client.
The City received 11 proposals and the review panel independently reviewed and rated
all 11 proposals . The initial rating criteria included the following elements :
Completeness of proposal ;
Design and layout of proposal including its readability;
Experience in similar projects ; and
Experience and qualification s of the firm and project team members.
Based on the combined ratings , the review panel chose t o interview three firms in person:
VTD ;
Rogers , Anderson , Malady & Scott ; and
Vasquez & Company.
At th e completion of the interviews, the review panel determined the VTD is the best firm
for professional audit services . While all three firms interviewed had excellent
qualifications and quality control processes , the review panel was impressed with VTD 's
approach to quality control. Quality control processes are intended to ensure that audit
e nga gements meet th e standards of AICPA and Yellow Book , including qualific ations ,
independence , due professional care and quality control. The most significant difference
is that VTD has a full time quality control partner (Partne r) delegated with the responsibility
of implementing a nd monitoring the firm 's quality control policies and procedures . This
Partner is not directly involved with reviewing work papers or drafting financial statements
of th e ir clients , and as a result is independent of the engagement partners and audit
City Council
April 5, 2016
Page 3 of 4
team . This level of additional independence is notable and strengthens the quality control
process of the engagement.
VTD also has a quality control committee that meets regularly to discuss emerging issues
and new professional pronouncements , which are then communicated to their
professional staff to ensure the firm has a working knowledge of professional services .
After rev iewin g references and their fe e proposal , the review panel recommends VTD for
professional audit services . VTD 's techni ca l proposal is attached (Attachme nt "A ") for
reference .
CITY STRATEGIC GOALS:
This action will further the City 's Strategic Goal to promote Good Governance .
FISCAL IMPACT:
Of the three firms that the review panel interviewed , the proposed fees for the professional
audit services were similar.
As discussed above, VTD has quoted costs for professional audit services for the next
five years , inclusive of FY 2015/16, as requested in the proposal for professional audit
services .
The cost proposed for auditing services by VTD for the is an all -i nclusive maximum of
$53 ,000, (Attachment "8 ").
Further VTD proposed the following fees for the ensuing years :
All -inclusive maximum fee for 2016/2017 Audit$ 53 ,000 ;
All-inclusive maximum fee for 2017/2018 Audit$ 54 ,590 ;
All-inclusive maximum fee for 2018/2019 Audit $ 56 ,228; and
Al l-inclusive maximum fee for 2019/2020 Audit $ 57 ,914.
Staff is required to return to the City Council annually to amend the agreement for services
for the follow ing fiscal year as the City Council does not have the authority to contract for
future appropriations in subsequent fiscal years . Annual app ro priations are established
with the adoption of the annual city budget. It is not anticipated th e re will be a change to
the fees proposed by VTD outlined above . If a fee proposal does change in future years,
adequate justification will be required by VTD and fully vetted by staff. Ultimately the City
Council will approve each annual amendment and the corresponding fee .
An appropriation for $53 ,000 will be proposed du ri ng the FY 2016-17 City Budget for the
professional audit services .
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City Council
April 5, 2016
Page 4 of 4
ATTACHMENTS:
A. Technical Proposal from Vavrinek , Trine, Day & Co ., LLP for Professional Auditing
Services
B. Cost Fee Proposal Vavrinek, Trine , Day & Co., LLP for Professional Auditing
Servi ces
Submitted b y :
ATTACHMENT A
CITY OF TEMPLE CITY,
CALIFORNIA
Proposal to Provide
Auditing Services for the
Fisca l Years Ending June 30, 2016,
2017 and 2018
VA VRINEK, TRINE, DAY & CO., LLP
10681 Foothill Boulevard, Suite 300
Rancho Cucamonga, CA 91730
Contact:
Roger Alfa r o, Partner
Tel: (909) 466-4410 Fax: (909) 466-4431
ralfaro@ vtdcpa.com
February 5, 2016
VAVRlN EK, TRINE, DAY
& COMPANY, LLP
Certified Public Accountants
Table of Contents
Tran s mittal Letter
ection I -Fi rm 's Qualification s/Statement of Expe ri ence
A. Bri ef Synops is
B. Ind ependent tandard s of th e GAO Affirmati on an d
Li censed Certified Public Accou ntant Affirmat ion
C. Peer Review
D. Firm's Qualifi ca tion s
ection 2 -Partner, Supervisory a nd Staff Qu a lifications
A. Organi zational Cha rt
B. Engagement Team
C. Ass isting loca l gove rnment al unit s in obtai nin g the Government
Finance Offi ce rs A ward
D. Commitment to Di vers it y
E. Our Experience
F. Organ izati o nal Re s ume s
G. Commitm ent to Cons istent and Qualit y of Staff and Backu p Pl an
Section 3 -Similar Engagements wi th Oth er Government Entiti es
A. Firm 's Expe rience -Refe rences
B. Contrac ts Comp leted During the Las t Three Years
ection 4 -Audit Und e rsta ndin g
A. Pr oject Man age ment
B. Complete Work Plan/Pr oj ect De sc ription
C. Id entification of Po tenti a l Audit Issues
Sectio n 5-Aud it Pl an/Scope of Wo rk
A. Our Proposed Audit Pl an
B. Use of Computer Assisted Auditing Techniques (CAA T) oftware
C. En gage ment Time lin e
Append ix A -Peer Re view
Page
a
I
2
2
4
5
5
5
6
8
13
14
15
16
16
17
18
21
2 1
22
Vavrinek , Tr ine, Day & Co ., LLP
Certlh ed PubliC ~u ntanls
Ms. T racey L. Hause
Administrative Serv ices Dire ctor
City ofTempl e City
970 I Las Tunas Drive
Tem pl e C ity, CA 9 I 7 80
Dear M s. H ause:
Fe bruary 5. 20 I 6
VALUE THE OIFFERE CE
We are pl eased to respon d to the Reques t for Proposal to provide audi t ser vices for the C ity of Temple City
(C ity). W e have addressed eac h of the s p ecificatio ns, as in cluded in yo u r Request for Proposa l. Vavr inek, Trine,
D ay & Co., LLP (YTD) is t he lead ing prov id e r of a ud iting services to local governm e nt s throughout California.
VTD is commined to it s role as the leader in Ca liforn ia governmenta l accounting and a uditing. A s a leader in ou r
industry YTD ranks in the top I 00 CPA Firms in the nati on (i n 2014 we were 95th ). VTD is a member of the
American Ins titu te of Cert i fied P ubli c Accou nt ants (A IC PA ); participates in the A IC P A's M ajor Fi rm 's Group; is
a membe r of the Ca liforn ia Society of Certifi ed P ublic Acco unt a nts; a nd is a mem ber of the A IC P A's
Governmental Audit Quality Center (GAQC) and is regis tere d w ith the Public Companies Accounting O vers ig ht
Board. We are a lso active membe rs in the Government Finance Officers A ssoc iation (GFOA ) and several of o ur
partners serve on th e GFOA CA FR pecial Rev iew Committ ee.
We a re pleased to prese nt our proposa l to prov id e our ser vices to the C ity. It is impo rta nt t o note th e per ce ntage
o f p a rtn e r , m a n age r a nd s upe r v isor t im e t ha t w e ha ve d e di ca t ed t o this e n gagem e nt. The hours ded icated by
these levels total approx imatel y 65 percent of th e o verall project. T h erefo r e, s taff w ith ex p e ri e n ce of 4 p lu s
yea r s w ill co n d u c t th e m a j o rity o f t h e a ud it testing .
Th e aud it team assig ned t o pe rform t he au dit a re :
• Experi enced C P A's who have provided a ud it ser vices to c ities a nd oth er local governments.
• Possess extens ive and specific continui ng p rofessional ed ucation (C P E) that is s pecific to governmental
audits.
• Ha ve atte nded na t iona l training sessions lead by th e A IC PA , OMB, GAO, and O IG relating to a ll a reas of
governmental aud iting .
• Have provided our local government clients numerous ho urs of "one on o ne" ass ist a nce relating to the
implementation of GASB 68, A ccounting and Financial Reporting for Pensions. In addit'on to the
indi viduali zed services provid ed to our clients YTD has provided several tra ining sess ions to indus try
g roups reg arding curre nt GASB pronouncements and s in g le a ud it r e porting re quireme nts.
Our success has been dri ven b y utili z in g s taff that is experienced and well tra ined in governme nta l operations.
We are committed to perform our work wi thin the time li nes and to meet a ll of the requirements as specified in the
request for p roposal. We recogni ze th at commun ication, ex p ertise and audit approach a re important fac to rs to
d e li ver an effecti ve audit. We have addressed each fa c tor w ithin our res ponse.
10681 f oo lhill Blvd .Sulle 300 Ra11Chu CuL.Ull<lnya CA 91730 l•l 909 J66 441 0 v.ww v10CPH OOI f.u 909 466 4431 a
Vav rinek, Trin e, Da y & Co., LLP prov id es gove rnmental auditing se rvices to ove r 300 gove rnm ent al age ncies in
C aliforn ia. We c urr entl y provide a uditin g se rvices to num e ro us governm e nt s includ ing cit ies, water age nc ie s,
s pecial di stri cts, red eve lop ment s uccesso r agenci es, pub I ic financing authorities, an d counties throug hout
California. We a lso rank in the top 10 pro vid ers in the na ti on whe n a uditin g federal g ra nt s via th e single audi t.
Vavr inek , Trine. Da y & Co., LLP has a loca l pre se nce to ens ur e o ur c lient s a re served with the hi ghes t leve l of
se rvice. Our foc us o n c li e nt serv ice and com mitmen t to qu a lit y has ma de Vav r inek, T rin e, Da y & Co., LLP the
finn of choice for local go vernment s . Our s taff in th e So uth ern Califo rni a office s w ill have th e responsibili ty in
se rvic in g t he C ity.
Quality se rv ice beg in s wi th profess iona ls who an ti c ip ate iss ues, li sten to yo ur ne eds, and deli ve r ~¥hat th ey
promise. Our s uccessfu l delivery of audi t se rvices to th e Ci ty depend s on the peop le chosen to execute o ur aud it
plan . The team we ha ve o rgan ized has ex te ns ive experience workin g w ith local governments , c it ies, successor
agenc ie s, publi c utilities and und e rstands it s methods o f operati ons.
We be li eve th at thi s cl ient servi ce tea m w ill prov id e th e mo st efficien t a nd cos t-effect ive service to the C it y of
Templ e C it y a nd a rc co mmit1ed to pro vidi ng e ffective a udit s, qualit y manageme nt letters, a nd pro act ive advice to
deal with iss ue s facing th e C it y o f Templ e C it y.
Pa rtner in vo lveme nt is a ls o a ke y to th e a udit's success. You r part ner in c harge of th e e ngagement will spe nd time
o n-s it e durin g the audi t and will meet with manage ment and th e C ity Counci l as necessary to ensure
com mun ica tion lines remai n open , that any ou tstanding issues a re re so lved time ly. and that all needs are met.
Mr. Roger Alfaro. CPA, will se rve as yo ur engage ment pa rtn er for th e audit.
Vav rin e k, Tr in e, Da y & Co, LLP is an Eq ual Opport uni ty Employer.
We hope th at as yo u read throug h thi s proposal , you recogni ze th e ph il osophy o f our firm whi ch is to prov id e
each of our client s wi th except ion al se rvice , ex perienced staff, and an audit a pproach th a t wi ll fit yo ur need s. Our
dedica ti on to quality. profe ss ional sta nd a rd s, a nd se rvice are unm atc hed in th e indus try.
Thank you for prov idi ng us the opportunity to pre sent our proposa l. Should yo u have a ny que s ti ons, ple ase fee l
free to contact Ro ge r E. A l fa ro, CPA , Pa rtn er who is a uthori zed to mak e rep rese ntation s and have con tr actua l
re s pons ibili ty on be ha lf of Vav rin ek, Trine, Day & Co., LLP . Roge r ma y be reache d at (909 ) 466-44 10, or via
ema il at ralfa ro@vtdcpa.com. The ma ilin g address which is de tailed on the cover pa ge ca n also be used for
co rres pond e nce.
Ve ry trul y yo ur s,
Va~{Da y & Co., LL P
Roger AlEe, [
Partn er
b
Section 1 -Firm's Qualifications
A. Brief Sy nops is
Our proposal addresses the scope of work requested by th e City which is as follow s:
• Audit the City's bas ic financial s tatements in accordance wi th Generall y Accepted Aud iting tandard s
(GAA ) in the Uni ted States of Amer ica and th e standards applicable to financia l audit s contained in
Government Auditing Standards.
• Express an opinion on the financial statements as to whether they present fairly. in all material respects.
th e financial position of the Ciry and the c hanges in financial position and cash flows in conformity wi th
generally accepted acco untin g principles (GAAP), and iss ue an ind ependent auditors' report ~ta tin g this
opinion .
• Test internal co nt ro ls over financial repo rting a nd on co mp li ance with certai n pr ov isions of laws,
regu lation s, con tracts and g ran t agree me nt s and ot her mat1ers, in accordance w ith Government Auditing
Standards, and issue an independent auditors' report.
• Appl y lim ited procedures re lated to the Required Supplementa ry Information (RSI ), Managemen t's
Discussion and Ana lys is (MD&A) and th e Supplementary Information contained in the CAFR . which
shall be prepared by the audit firm.
• Prepare a .. ing le A udit " Report and issue a related audit opinion . if necessar). for federal gran t monies
received and expenses made .
• A review and veri fication of the City's GANN limitation calcu lati on.
• Prepare a Repo rt to the Audit Co mmitte e (i.e., two Counci l members ) and City Co un c il which identifie
s ign ifi can t aud it findin gs. difficulties e nco untered in per forming th e aud it , identify any corrected and
uncorrected mi ss tatements, disagreeme nt s wi th management, management represen tation s . control
deficiencies. significant deficiencies and material weaknesses, if any, and you r recommendati ons for
improvement s in accounting and administra ti ve controls.
• Pre sent and discuss the re s ults of the aud it and the annual financial sta tement s to the Audit Comminee
and full City Counc il durin g its regularly scheduled in December of each yea r.
• Communicate immediately and in wri ting a ll irregularities and illegal acts, or indications of illegal acts, of
w hi ch the aud it or becomes aware, tu the ap propriate level of mana gement and/or Directors of the C it y.
• Pr ov ide genera l co nsu lt ation as required , du rin g th e yea r, on financia l accounting a nd reporting matters.
Vav rin ek, Trine, Da y & Co., LLP will meet th e City's req ues ted scope as demon s tr ated by our experience o f
\\Or king w ith over 300 gove rnm ent al agencies, depth of experience of o ur staffing, and proacti ve approach to
working with new accoun tin g pronouncements and industry changes s uch as the Uniform Guidance related to the
ingle Audit. Our proposal high lights our team. aud it experience working w ith cities and audit approach.
B. Ind e pen de nt t a nd a rd s o f th e GAO Affi r mati on a nd Li ce nse d Certifi ed Pu b li c Acco unta n t Affirm a t io n
Vavrinek , Trine, Day & Co., LLP is indepe nd e nt of the City of Templ e City and its component units as
defined by auditing s tanda rds genera ll y accepted in the Un it ed States of America and the U .. General
Accounting Office's Governmental Auditing Standards.
The firm will not ente r into any re lat ionsh ips that would impair our ind epende nce during the term of the
contract if awarded. VTD will not be using subcon tr actors to se rve the City.
Vav rin ek. Trine, Day & Co., LLP is licensed to practice public accounting in the tate of California and has
complied '"ith all applicab le California tate Board of Accountancy requirements. In addition. all of the key
professional staff that wi ll be assigned to the audit are also licensed to practice in the tate of California and
have complied wit h all applicable tate Board o f Accountancy s tandards.
Section 1 -Firm's Qualifications
B. Independent S tand a rd s of the GAO Affirmation and Licen se d Certifi ed Public A~countant
Affirmation , (Continued)
Vav rin ek, Trine, Day & Co., LLP does no t have a record of substand ard aud it wo rk. T here have bee n no
disc ip li nary acti ons fr o m reg ul ato ry age ncies or pro fess ional orga niza ti o ns nor do we have any outstand ing
c la im of s ubstan dard work or unsa tisfac tory perform a nce pe nd ing wi th the State Boa rd o f Accou ntancy or
oth er pr ofess ional o rga ni zati ons.
C. Most Rece nt Peer Review
A co py o f our mos t rece nt pee r rev iew has bee n inc luded in Ap pendi x A of th e proposal. Thi s q ua lity co ntrol
rev iew inc lu de d a rev iew of spec ifi c governm ent engage men ts.
D. Firm's Qualifications/S tate ment of Experie nce
Vavrin ek, Trin e, Day & Co., LLP -VTD
VT D is a limite d liabi lit y partn e rshi p. Ou r address an d co nt act inform a ti on is no ted on the cover page of the
proposal.
VTD was es tabl is hed in 1948 . O ur finn offe rs a full range of serv ice s for seve ral d iffe rent li nes of ousinesses
thro ug hout Cal i fo rni a. Proudl y, our gove rnm ental pr ac ti ce is key to our fir m's s uccess. VTD has experienced
a so li d 67 yea rs o f g rowth and com mitm e nt to c lient serv ice. N ow w it h ove r 30 pa rtn ers and over 200
pr o fess io na l st aff, VT D is one of Califo rni a's to p C PA firm s. VT D has a de mons trated capacity to perfo rm
gove rnm ent a l audi ts.
VTD is ra nke d within the "to p 100" CPA firm s in th e Unit ed State s w it h a s ign i fica nt pe rcen tage of our
prac ti ce devote d to th e go ve rnm e nt a l a udit a nd co ns ultin g pra cti ce . VT D is a lea de r in prov idi ng a udi t,
cons ul ti ng. and tax se rvices to various indu stri es in c lu d in g. b ut no t limi ted to, la rge m uni c ipal and reg iona l
gove rnm en ts , fi nanc ia l ins t ituti ons, ma nufacturin g, a nd re tai l en te rp ri ses, and no t-fo r-pro fit corporations. As
gove rnm en tal audi tin g is our pri mary practi ce, we d o no t use gove mm enta l c lients to fi ll ou r down t ime. Ou r
gove rnmental a ud it a nd gove rnm en tal co ns ultin g pr ac ti ces prov ide a yea r-round client base fo r VTD.
VTD is organized int o indu s t ry practi ce gro up s. In today's reg ul atory environme nt it is necessary to
spec ia lize in specific indu st ry pract ice a reas so th at our c li e nt s are prov ided w ith the hig hes t qua li ty service.
In o rd er to accomp li s h thi s we have structure d our fi rm wit h the fo ll ow ing in dus try practi ce groups:
• State and Loca l Gov ernm ent
• K-12 Sc hoo l Di stri c ts
• Hi g her Ed ucat io n
• Healthca re
• No t-for-Pro fit
• SEC/PCAO B
• Tax Co mp li ance
• Manufac tu rin g , Retai l, and Di str ibuti o n
• Fin ancia l Se rvices
2
Section 1-Firm's Qualification s
D. F irm 's Q ua lifi catio ns/St a t e m e nt of Expe ri e n ce, (Co n tinue d)
Professio n al Associations
We a re members of the American Institut e of Cer1 ifi ed Public Acco unt ants (A ICPA), the Ca li forn ia Soc iety
of Ce rtifi e d Pub lic Accou ntant s (C alCPA), and we have reg istered w ith the Public Co mpa nies Account in g
Ov ers ight Board (PCAO B). In additi on, o ur firm is a member of the AICPA 's Governme nt a l Audit Quality
Ce nt e r. Seve ral of th e firm 's part ne rs serve on severa l Audit and Acco untin g sub co mmittees fo r CalCPA.
We ar e active members in th e Governmenta l Fina nce Officers Assoc iation (GFOA) a nd atte nd tra ining
seminars pr ovide d by GFOA. Several of ou r partners se rve on th e GFOA CAF R pecia l Rev iew Comm ittee.
We a re al so act ive members o f the Ca li fo rni a Soc iety of Municipal Finance Officers (CS MFO).
Qua lity Co n trol
Our firm has a progra m of q ua li ty cont rol to e ns ure th at ou r engage men ts meet the sta nd ards of the A ICPA
and Yel low Book. including qua lifi ca ti ons, ind e penden ce . due professional ca re, and qual ity control. VTD
has a fu ll -time Qu a lity Co nt ro l Part ner delegated th e re s ponsibility of implementin g a nd monitoring the firm's
quali ty co ntro l polic ies and pro ced ures. VT D al so ha s a qua li ty con trol co mmittee th at mee ts regu la rl y to
di sc uss emerg ing iss ue s and ne w profess iona l pron oun ce ment s, which are then co mmun icated to our
professio na l staff to en s ure th e firm has a wo rkin g kno w ledge of profes siona l standa rds.
We have un de rgone vo lunt ary, ind ependen t, ex ternal qual ity rev iews (pee r reviews). We received ou r most
rece nt peer review in 20 15 for th e 20 14 yea r, a t whic h time we rece ived a n un q ua lifi e d op in ion regardi ng ou r
a udit and acco un ting pract ice. We a lso und ergo pe riod ic in spectio ns by th e PCAOB.
3
Section 2-Partner, Supervisory and Staff Qualifications
A. Organizational Chart
Roger Alfaro, CPA
Partner
Phil White, CPA
Partner
David Showalter, CPA
Partner
Alice Hui, CPA,
Manager
Senior and Staff
Auditors
Chad Birdsong, CPA
Supervisor
4
Section 2 -Partner, Supervisory and Staff Qualifications
B. En gage m e nt Tea m
The e ngagemen t team for the prop osed aud it se rvi ces wi ll in c lude:
o Roge r Alfaro, C PA, Partner -Mr. Alfaro w ill have the overa ll res pons ibili ty fo r the a ud it and w ill lead
th e audit team to ens ure th at the City's requi remen ts are fulfi ll ed.
o David S howalter, CPA, Partne r -Mr. Showa lt er will participate as a tech nical rev ie w partner. He wi ll
work with th e team ass istin g in techni ca l iss ues and perfo rm the concurring rev iew o f th e engageme nt.
o Phil White, C PA , Partner -Mr . White will serve as a n additional resource.
o Alic e Hui , C PA, Audit Manager Ms. llui wi ll se rve as th e audit project ma na ger and w ill be
re s pon s ible for the day to da y managemen t and de li ve ry of se rv ices to the City.
o C had Bird song, C PA , Audit up e r viso r -Mr. Birdsong will serve as a s upe rvisor and will be
rc pon sible for dai ly audit wo rk , su pcrvi ion o f s taff, and execution ofthe audit plan for the Ci ty.
o Other Se niors and Audit Associates addi ti onal s eniors and a ud it associate s to be ass igned.
o Firm's Management S upport Personnel -C li e nt techni ca l q uestions are fi e lde d by the engagement
team thr o ughout the year. In addition to the re sources l isted above , VTD has a dedicated qual ty co ntrol
d ivisio n wh ic h ass is ts th e audit te am in technic a l resea rch on a n as needed basis. A lso, th e firm has a n
In formation Techno logy Spec ialis t that ass is ts in engagements w ith complex IT e nvir onme nt s.
C. Ass is tin g loca l gove rnm e ntal units in obtaining the Governm e nt Finance O ffi ce rs Association (GFOA)
"Certific ate o f Ac hievem e nt for Exce ll e nce in Financial Repo rtin g."
Many our clie nt s parti cipate in t he Gove rnm e nt Finance Officers Assoc iation (GFOA) "Certificate o f
Ac hievemen t for Exce llence in Fin anc ia l Report ing" program. VTD has de mons trated that we ca n meet our
cl ie nt 's expectati o ns in regard s to a quality produ c t within GFOA req uire men ts, and we have a lso proven tha t
we can meet or exceed a ll tim e lin es es tab li s hed by our clien ts. We have prepared GFOA award winning
CA FR s for numerous c li en ts.
D. Co mmitm e nt to Diversity
Vav rin ek. Trine , Da y & Co., LLP is an eq ual oppo rtunit y e mploye r. Ou r staff represe nts a range of c ul t ural
and ethni c backg round s th at pro vid e fo r a wo r ld-v iew. T he diversity of our workfo rce he lps to improve our
emp loyee sa ti sfaction , producti vity, and th e retenti o n of our staff. Our firm prov id es oppo rt uni ti es fo r
advancl..!mcnt to a ll staff demon stra ting th e s ki ll , ab ilit y, and des ire to succeed and advance th eir profess ional
ca ree r with us.
5
Section 2 -Partner, Supervisory and Staff Qualifications
E. O ur Ex pe rie n ce
YTD's Governme nt Pra ct ic e Group has profess iona ls th at are fully devoted to audi ts s im il ar to tne City of
Temple City. A s ummary of c li ent s se rved in c lud es, but is not limi ted to:
C l'llES
Ci ty o f Alameda
C uy of Br entwood
C uyo f Chi co
City o f Co nco rd
C uy of D<um Poml
City o f DaVIS
Cll y of Fatrlicld
Cll ) ofFobom
Cll ) o r l·o,t.:r Cll)
Ctl ) o f Glendale
Cll) o rGotualc s
Cll) o r Grand Terrace
C uy of Greenfield
Clly of l lwnington Park
C uy of l llmlmgt on Beac h
C uy or Lagu na Beac h
Cu y o r Laguna Nigue l
City of l.akc Forest
City of Los Altos
Cit y of Monte Se reno
Cu y of Napa
Cu y of Palmdal e
C uy of Param o unt
City of Place nlta
Cll) of Pleasanton
Ctty of Ran cho Mtrage
C uy of R<mcho Palos Verdes
Ctt y of Rohnert Park
Ctty of Ro se \1lle
Ci ty o f ac rarn ento
C uy of San Jac tnt o
Cttyor s an Leandro
C uyo r Sm1 Ramon
Ctt y of Santa Clara
Cll) of <;arat oga
City of South Gate
Cu y or outh Lake t'al1 oe
C'u y o f Sur>un C u ;
Cuy of Te me c ula
Cll) o f Walnut Cree k
Cuy o r Whllttcr
CO U 1Y GOVER ME TS
Co unl y of Orange
Co um y of Placer
Co unty o f Rivcrs tde
Co unty o f Sac rrunemo
CoumyofSan Bernardtno
Co unt y o f So noma
Count) o f Ve ntura
Coun t) o f Yo lo
Count) o f Shasta
F IRSTS CO~I ~II 10 '
Co ntr a Cos ta Ftrs l 5 Co mmt ssron
Fi rs t 5 Sacramento
Fresno First 5 Com mi ss ion
WATE R AGE C IE
Beaumont Cherry Va ll ey Wa te r Dis tr ict
Els ino re Va ll ey Mw1icipa l Water Dis tncl
Mo nt ara Water and Sanitary Dis tri ct
Mo nt erey Regi onal Water Po ll ut to n Cont rol Agency
Mu ni cipal Wat e r Dtslr tcl of Orange Co unt)
Reclamati o n Dts tnct l/2035
Sac rrunent o COW1l) Wa ter Age nc;
Sacramento GroW1d\\ater 1\ulhortl)
ant a Clara Water Dts tncl
Suis un-Solano Water Auth oruy
Yo lo-DaVIs Clean Water J PA
Yucai pa Valle y Water Dtslrtcl
POWER AGE C IE
Los Angele s Ftrst 5 Co mmi ss ion Alameda Mw1i ci pal Power
Orange Co unt y Chtldrcns & Fmn il ies Commtsston Glendale Wate r and PO\\Cr
Rivers ide First 5 Comm issio n
San Bernardin o Ftrs t 5 Co mmi ss ton
So noma First 5 Co mn11Ss ion
Yo lo Firs t 5 Com mission
TRANS IT AG E 'CIES
Capital Sout heast Co nnecto r JPA
High Desert Co nn ec tor J PA
Omnitrans
Orange COW1l) Transportati on Aut ho ruy
Sacrrune nt o Area Co uncil of Go\-crnmcnts
San Joaquin Regional Ra il Co mmiss ton
Santa Clara Valley Transporta ti on Aulhortl)
SR 9 1 Expres s lane s
Ve ntura Co W1l Y Transportation Commt ss ro n
Solru1o Co W1l) Transpo rlatton/\uthortl y
OTII E R AGE t C IE S
Sacramento Count y /\trport Sys tem
Sacramento Solid Was te Fund
Yol o County Habttal JP/\
Yo lo So lm10 Atr Qualtly Dt s tricl
Eas t Bay Re gio nal Park Di strict
Mar in Ene rgy Autho rtly
Silicon Valley Power
SEWE R, SAN il/\'11 0 & FLOOD AG E~ C l ES
Alameda Co unt y Was te Manage ment Authortl)
Bayshore Sanitary Dt slrtcl
Ce ntr al Co ntra Cos ta Sani tary Dtslrtcl
Ce ntral Marin amtatton Agency
Cupe rt ino San ttary Distric t
De lta Diabl o Sanilallon Dtstr ict
Eas t Bay Discharge Aut hority
Fai r fi el d-Suisun Sanitary Dis tric t
Knight s Lru1ding Comm lmtl y Services DtslrtCl
Madison Co mmW1tl ) Se rVIce s Dis tnct
Onmgc Co W1l )' Waste & Rc c)cl in g
Oro Loma Sru1itar) Dts tnct
Rtvers ide Co unt y Waste Mru1ag~mcnt
Ross Valle y Santlutton Dtstnct
Sac rm11cnt o Area ewer Dtst r ict
Sac ramen to Rc gtonal Co unt y Sru1i tal tOn Dts lrt cl
Uni o n Sru1itar y Dr strict
Vall ejo San it ation ru1d Flood Co ntrol Dis trict
Wes t Bay Sanitary DtslrtC l
Wes t Valley Santtatt on Dts lri cl
6
Section 2 -Partner, Supervisory and Staff Qualifications
E. Our Experience, (Continued)
As we have noted VTD has sign ifi cant experi e nce auditing municipal and s pec ia l purpose governments. The
key components to o ur s uccess include cons istency of properly tra in ed s taff, assignment of s taff with
experi ence, t imely commun icat ion in all aspects of the aud it, planni ng, and understand ing how to stru cture
each audit to ensure efficiencies are achi eved.
VTD 's s uccess in re tain in g our c li ents is due to our commitm e nt to o ut s tanding quality , timely completion of
work and our ability to r etain key s taff.
VTD is properly s taffed and traine d to perform the required services. Each of the key auditors c hosen to
pat1icipate with th e City ofTemple City audit has worked w it h s imilar c iti es. The C ity will not ha ve to train
our audit team. Each of th e auditors al s o has a detail ed unde rstanding of the interaction of different internal
cont ro l system s a nd the s trict time li nes th at a r e required to compl ete each aspect of the a udit. VTD staff also
attends n ational train ing sess ions, s uch as the annual A IC PA Nati o na l Governmental Accounting a nd
Auditing Update, s o that all of the key staff assigned to the City's audi t un derstands both local as well a s
nationa l trends a nd iss ues.
VTD has a demonstrated capac ity to pe rform the required services. We have managed our growth to
e nsure that new c li e nts recei ve ex perienced staff and qua li t y audits. We a lso ensure that ex is ting clients do
not experience a dec li ne in service when new c lients are added. To accomp li s h th is VTD w ill only proposes
on c li ents when ke y s taff have been trained, possess on th e job experience to act as th e in charge a uditor, a nd
w hen s taffing levels a ll ow f or th e addition of the new work. We are extremely confid e nt that all of our
references will note that their ser vice level has not diminished over th e life of the contract.
VTD has revi ewed the req uirements of the C ity of Temple C ity and determ ined that your City will be
properly serv iced w ith experi e nced and well tra in ed staff. We have a lso determined th a t o ur staffing schedule
allows for VTD to meet and/or exceed all timel in e s as establi shed in the request for proposa l.
7
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Section 2-Partner, Supervisory and Staff Qualifications
F. Organizational Resumes
Wh il e VTD has a tea m of over 50 auditors speciali z in g in munic ipa l audit s, we have se lec ted the fo ll ow in g
tea m th at we be li eve is bes t s uit ed to provide time ly, cons is te nt a nd qua li ty services to the City.
Mr. R oger A lfaro, CPA
Audit Pa rtner
Experien ce
Mr. Alfaro has been co ndu ct ing a udit s of gove rnmental enti ties for over 18 years. H is ex perie nce in cl ud es
c it ie s, redev e lo pm ent agenci es/s uc cessor agenci es, counties, financ in g autho riti es, pub li c uti liti es, tra nsi t
a ut horities and the s ing le a ud it. Mr. A I fa ro has co ndu c ted s in g le a udits a nd th e audi ts of bas ic fin anc ia l
s tate men ts for severa l local governments whose assets exceed $1 bi lli on. Hi s si ng le audi t experi e nce in c lud es
the maj or fe de ral pro g ram a ud its of c ities, t ra ns it agen c ies, and co unti es in c lu d in g; C DBG , HO ME, Hig hway
Pl a nnin g and Constructi on grant s.
Mr . A l fa ro has provi ded aud it se rvices for var iou s governmenta l c lien ts conductin g s in g le audi ts and audi ts of
co mprehe nsive an n ua l fin ancia l repo rt s in c lud in g :
CITI ES
C ity o f Burban k
C ity o f Camarill o
C ity orG iendale
C ity of Gonzales
C ity o r Huntington Beach
C ity of Laguna Beac h
C ity o f Laguna iguel
C it y of' Modes to
C it y o r Paramount
C it y or P leasant on
City o r Ran cho Mi ra gt:
City or Ranch o P a los Ve rdes
City of Sacramento
City of Santa C lara
City of T emecu la
City of Wa lnut Creek
City of Whittier
COUNTI ES
Co unty o f O range
Co unt y of Pla cer
Co un ty o f Rive rs id e
Co un ty of Sacrame nt o
Co unty of San Berna rd ino
Co unt y o f a n Diego
Co un ty o f Sono ma
Co unt y of Ve ntura
Co unt y of Yo lo
F IRST 5 C OMM ISS IO NS
First 5 Contra Cos ta
Fi rs t 5 Los Ange le s
Firs t 5 Orange County
Firs t 5 P Iace r
First 5 Riverside
Fir st 5 Sacramento
Firs t 5 San Be rna rd in o
UTILI TI ES/JPA/S P EC IAL DISTRICTS
Ala med a County Transport atio n Imp rove ment District
Alameda County Transportati on Dist r ic t
Arrowhead Reg iona l Medical Ce nter
Chi no Va ll ey Ind epende nt Fi re Dis trict
Glendale Water and Powe r
John Wayne Airp ort
Omn it rans
Orange Coun ty Transpo rtation Auth orit y
Rive rside Co un ty Waste Manage ment
acrame nt o Int ern ati onal Airport
San Bern ar din o Ass ociated Go ve rnm ents
an Mateo Co unt y Trans it Dis trict
San ta C lara Va ll ey Transportation Auth ority
T ri-City Ment al Hea lth
Ventura Co unt y Air P o lluti on Contro l Distr ict
Ventura Cou nty Transportati on Commi ssion
We stern Ri ve rside Conservation Auth orit y
We stern Ri ve rs ide Council o f Govern ment s
Yucaipa Valley Wat er Dist r ic t
Mr . Alfa ro ha s adv ise d and assisted many clients with di sclos ure and fin a nc ia l reportin g rec;uireme nt s
pu rs uant to th e GFOA cert ifi ca te progra m. Many of Mr. Al faro's c li en ts served have repo tts p:·epared in
compl iance w ith th e requi remen ts of this program , inc ludin g th e City of Ranc ho Mi rage , City of Temec ul a,
C ity of Whittier , Wes tern Ri vers id e Co un c i l of Go ve rnm en ts, and Ora nge County Transporta ti on Au th or ity
(OCTA).
8
Section 2-Partner, Supervisory and Staff Qualifications
F. Organizational Res umes, (Continued )
Mr. Roger Alfaro, CPA
Audit Partner, (Co ntinued)
Area o[Specia/ization
Governmental Aud it s of Cities, Co unti es, Rede ve lopme nt Age ncies/Successor Age nc ies, Pub lic Utili ties,
Transportation Agencies, Special Di strict s, No n-profits
Professional Affiliations
America n Inst itute of Certi tied Publi c Acco untants
Cali forni a So c iety o f Certified Public Accou nt a nt s
GFOA Certi fi ca te Program Sp ec ial Review Committee
Educat ion
Bache lor of Science-Bu s in ess Ad m in istration
Ca li forn ia State Un ive rs ity , San Berna rdin o, Ca lifornia
Mr. David Showalter, CPA
Audit Partner
/:,xperience
Mr. Showalter ha s bee n co ndu cti ng audi ts of c itie s, tr ansi t agencies, and la rge reg iona l a nd special purpose
governme ntal entiti es for over 15 years. Hi s expe ri en ce in c ludes citie s, redeve lop me nt agencie:;, housing
author ities, coun ti es, financing authorities , public utiliti es, and s ingle audits.
Mr. Showalter ha s pro v id ed a udit serv ices for various m uni cipa liti es co nd uctin g s in g le audits and aud it s of
co mprehen s ive ann ua l fin a nc ial reports incl uding:
CITIES
Ciry of Glendale
Ciry or Palmda le
City or folsom
C it y or l.akc Forest
C it y or Covma
C ity or Malibu
C iry of Davts
C it y or Rtvcrstde
C it y of Walnut Creek
C iry or Concord
C it y of Fairrte ld
C it y of South Lake Tahoe
C iry or La Palma
C O LI TV COVEn ME TS
Co unty of Yolo
Co un ry of San Bernardin o
County of Sacramento
Co unty of Ri ve rs td e
Co unty o f Orange
Il EAL lliCA R E
Arrow head RcgJOnal Medica l Cente r
Ve nt ura County Medica l Cen ter
Verdugo Hills Hos pita l
Ga teways l lospital an d Me nta l llea lt h Center
River side Co unty Regional Medica l Center
Modoc Medical Cente r
l iTILJTIES
Oran ge Co unty Waste and Recyc ling
Sacrament o Area Sewer District
Sacrament o Count y So lid Was te
Sacram ent o Regional County Sa nitation DtS tnct
Sac rame nt o County Wa te r Age ncy
Alameda Munic tpa l Power
Davis-Woodland Wate r T rearmc nt J PA
Elsinore Vall ey Mu ntetpal Water Dtstnct
Gle ndale Water and Power
FI NANC I NG A UTHORITIES
Sacrame nto County Public Fin a nc in g Auth orny
Sacrame nto Tobacco Sec ur itizat io n Authority /Corp
Inland Empire Publ ic Fac il ities Corporation
Sacramento Sanitat ion Districts Fina ncing Au th o rity
Mr. Showalt er ha s a lso provided tr ai ning to ou r staff th rough in-hou se co nference s to ensure consi >te ncy and
knowledge thro ug hout the e ntir e team pro v iding se rvices to our c li ent s. Mr. Sho wa lte r also prov ides aud it
a nd account ing update s for man y of hi s governm e nt al c li e nt s and indu stry groups.
9
----------------------------------------------------------------
Section 2-Partner, Supervisory and Staff Qualifications
F. Organiza tion a l Res umes , (Continu e d)
Mr. Da v id S howalte r, C PA
A udit Pa rtn e r, (Continued )
Prior to VTD Mr. howa lter worked for a "Big 4 Accounting Firm" for a pprox imatel y th ree years providing
pro fess iona l services to muni c ipaliti es, not for profi t orga ni zatio ns, higher education and oth er local
gove rnm e nt s. In add ition, pro vided va ri ous at1es tat ion services to manufa cturin g, re tail and serv ice industries
inc ludin g Securities and Exchange Commiss ion ( EC) reporting.
Mr. Showalte r part ic ipates as a CAFR reviewer wi th in the GFOA Certificate Program Special Revie w
Co mm ittee an d is a me mb e r of the Cal i fo rni a Soc iety of Certi fied Publi c Acco un ta nt s State Go'vernmen tal
Audi t and Account ing Co mm itte e.
Mr. Showalter ass iste d many of hi s large r gove rnmenta l clients nav igate throu gh the implementation of
GA B 68. as well as th e Uniform Grant Guida nce.
Area o[Speciali::ation
Governmental Audits ofCount ies. Cities. Red eve lopm en t Agencies, Public Utilities,
Transportation Agencies, Special Dist ri cts
Ho sp ita ls
Non-profits
OMB A-133 Si ng le A ud it s
Professional Afflliations
Ame ri can Institute of Certi fi ed Publi c Accountants
California Society of Certi fi ed Publi c Accountan ts
California Society of Mu n ic ipal Finance Officers
Heal th ca re Financial Ma nag ement Association
C hart ered Global Management Accountant
Gove rn ment Finance Offi cers Association Spec ia l Rev iew Commi tt ee
Education
Bachelo r of Scie nce-Busin ess Administration
Californ ia State Uni ve rsity , San Bernardino , Ca li forn ia
10
Section 2-Partner, Superv isory and Staff Qualifications
F. O r ga ni za t io n a l Resumes, (Co n ti nu ed)
M r . Phil W h ite, C P A
A udit Pa rtner
Expe rie n ce
Mr. Wh ite has been cond uct ing audits of ci ti es, large regional and s pec ia l purpose governm e nt a l entities for
over 10 years. H is experie nce include s ci t ies, redevelopmen t age ncies , tra ns it agencies , co unties, public
utiliti es, and single a udits.
Mr. White has prov ided a ud it se rvices for var ious munic ipa lities conductin g s ing le audi ts and aud it s of
co mprehe ns ive an nua l financial re ports inc ludin g, but not lim ited to:
C I TIE
C it) of Dana Poi nt
Cit) o f Fo ls om
C it y o f G lendale
C it) o f Go nza les
Cit) o f Greenfie ld
C ity o f lluntingt o n Park
City o f La Palma
City o f Lake Forest
City of Palmd ale
C it y o f Param ount
Ciry o f Pied mo nt
C ity o f Ranch o Mira ge
C ity o f Ran cho Palo s Verdes
C iry o f Rosev ille
C it) o f Teme cula
C O U 'T I ES
Co unt y o f Ora nge
County o f Rive rs id e
Count y o f ac ra mento
County o f an Be rnardino
County o f San Diego
County o f Ventura
T RA S IT AGE C I ES
Im perial County Loca l Transpo rtat ion Au thority
Mor ongo Ba sin T ran s it Author ity
Mounta in Area Regional T ran sit Au tho rit y
Omnitrans
Orange Count y Trans portat io n Au thorit)
Sa n Bern ard ino Assoc iated Governments
San ta C la ra Val le) Tran sporta t io n Auth oril)
OTHER AGE1 C I ES
Arrowhead Re gio na l Medical Cente r
Chino Va lley Independent Fire Dis tri u
John Wa yne Airport
Oran ge Co unt y T rans portation Auth o ·ity
Rive rside Co unty Medical Cen ter
San Bernardin o As sociated Governme nts
Sa n Mate o Count) Transit District
Sa nta C lara Valley T ran sportat io n Aut ho rity
So uth Bay Re giona l Comm un ica tion s Au th o rity
T r i-City Menta l Healt h
ll'll LITI ES
Beaum ont -Cherr) Wate r Distri ct
Glendale Water and Po \\er
Municip a l Wate r Dis trict o f Orange Co unt)'
Yucaipa Va lle y Wa ter Distr ict
Mr. Whit e has a lso prov ided training to our staff throug h in-house co n ferences to ens ure con s istency a nd
know ledge throu gho ut the entire team provid in g serv ices to o ur c lie nts. Mr. White also provides a udit and
accou ntin g updat es fo r many of hi s governm en ta l client s and indu stry grou ps .
Mr . Whit e pa rti cipa tes as a CAFR reviewer wit hin th e GFOA Ce rtifi cate Program Spec ial Rev iew
Co mm itt ee.
Ar ea o(Speciali=ati on
Governmental Audits of C ities, Redevelo pm e nt Agencies . Counties, Publi c Ut iliti es.
Trans it Agencies. Special Di s tri ct s
on -profits
OMB A-1 33 Single A udits
Professional Afflliations
American Insti tute of Ce rtifi ed Public Accou ntants
Ca li forn ia Society of Certified Publi c Accou nt a nt s
Ca li forn ia ociety of Municipal Fin ance Office rs
Government Finance Office rs As sociatio n Specia l Re view Committee
Edu ca t ion
Bache lor of Science -Fina nce
San Francisco tat e Uni ve rs ity, an Franci sco, Ca li fornia
I I
Section 2 -Partner, Supervisory and Staff Qualifications
F. Orga ni za ti o n a l Res um es, (Co ntinue d )
Ms. A li ce Hui , C P A
Audit Ma n a ge r
Educa tion
Bac he lor of Science in B us in ess Admi ni strat ion -Acco untin g
Ca li fo rni a State Po lytechni c Un iversi ty, Pomo na
Experience in governmental accounting/a udit ing
Ms. Hui has been cond uct ing audit s of gove rnme nta l agencies for over se ve n yea rs. Her experience in a udits
include s se rvin g a va riety of gove rnm ent s rang in g from cities and cou ntie s to spec ia l purpose governme nts
co mp r is ed of s ing le en terpr ise fund s and hea lth ca re enti ties includ in g t he fo ll owing:
C ITI ES
Ci ty o f Agoura I I ills
City of Del Mar
Cit y o f Glenda le
Cit) or Paramount
City or Palmdale
City of South El Monte
Cit y of P lacent ia
City of Wh ittie r
Area o(Speciali=a tion
C O liNll E
Co un ty of Orange
County of acramen to
Cou nt) of an Bernardino
Co unt ) or an D~ego
Co unty of onoma
Coun ty of Ventura
OTH ER AG ENC IES/S I'EC IA L DIST RJ CTS
First 5 Rh e rside
Millennium I lous in g or Ca lifornia
Arrowhead Regio na l Medica l Center
Ventura Count) Air Pollutio n Control District
Ventura County Loca l Agenc) Formation Commission
Ventura Co unt y Medical Ce nt er
We stern Ri ve rsi de Cou nt y Regiona l Conservation Authorit y
Sacra mento Count y Sani ta tion Di stri cts
Cap it a l o uth eas t Co nn ecto r JPA
Sacrame nt o Co unt y Area Fl ood Co nt rol Agency
Els in ore Va lle y Munici pa l Water District
an Bernardino Associated Governme nt s
Governmenta l Aud its o f C it ies , Count ie s, RD A Successo r Age ncies, Ente rpri se Fun ds , Tran sporta tio n
Age ncies, Specia l Dist ric ts, O MB A-133 Sing le Audit s
Professional Afflliations
Ame ri can In s titut e of Cert i fi ed Publi c Accou nt an ts
California oc ict) of Ce rt i fi ed Publi c Accounta nts (Ca iCPA)
Continuing Education
Var ious governme nt a l acco unti ng courses offe red by th e Amer ica n Inst itute of Certified Pu blic Accountants,
Ca liforn ia Societ y ofC PA s and In-Ho use Co ur ses:
• Audit Risk Assess ment
• Fraud Ri s k Assess ment
• OMB A-133 /S upe r C ircu lar Updates
• A ICPA ationa l Up date, Go ve rnm e nta l A ccoun tin g and Aud it ing Co n ference
• Ye ll ow Book: Governm en t Aud iting Stand ards
• New GASB Pr o no un ce me nts
12
Section 2 -Partner, Supervisory and Staff Qualifications
F. O r g anizatio n a l R es um es, (Co ntinued)
M r. C h a d Birds on g , C PA
A udit S upe rviso r
Educa tion
Bache lors of Science -Ac c oun ting
Mas ters of Science -Acco unt ing
Ok la ho ma State Un ive rs ity
Exper ience
Mr. Bi rdsong has bee n condu ct in g aud it s of gove rnm e nta l age nc ies fo r ove r s ix years. His t;x perience
inc lud es wo rk on large co unt ies, specia l distr icts, a nd ci t ie s inc ludi ng t he fo ll ow ing :
C ITI ES
Ci ty of Palmdale
Ci ty of La Palm a
C O UN TI ES
Co un ty of Ventu ra
Professional Affiliations
O 'niER AG E.J'ICI ES
Arrow head Regional Me d ica l Center
Beaum o nt Cherry Va ll ey Water District
Millennium Hou sin g Authori ty of Ca lifornia
Municip a l Water Dist rict of Orange County
Tri-City Menta l Healt h
TRA 'S IT GENC I ES
Moro ngo Basi n Tra nsit Au th or ity
Mountain Area Regiona l Trans it Authorit y
Ora nge Count y Transport ation Aut hor it}
Sa n Berna rd ino Association of Go vernments
Membe r of th e American Ins t itute of Certifi ed Pu blic Accou ntan ts
Continuing Educat ion
• Aud it R is k Assess me nt
• Fraud Ri s k Asse ss me nt
• OM B A-133 /Super Ci rcu la r Upda tes
• A IC PA Na ti o nal Upd ate, Governm enta l Acco unti ng a nd Aud iting Confe rence
• Ye ll ow Book: G ove rnm ent A udi t ing Sta ndards
• New GAS B Pro nou nce me nts
G . Commitm e n t to Consis t ent a nd Qu a li ty S t a ff a nd Backup Pl a n
We understa nd th e C ity of T e mple City desi res a n a ud it firm that prov ides co ns iste ncy with s taff. VTD 's
philosophy is to s taff each of o ur aud it s wi th co ns iste nt s ta ff in ord er to provide t he mos t effect ive and
e ffi cient a udit fo r our cli ents. Engagement pe rso nne l may be c ha nged if th ose perso nn e l leave th e firm. are
promoted or are ass ig ned to a diffe rent o ffi ce . Personnel may a lso be c hanged for oth er reasons w ith pr ior
perm ission of th e C ity.
VT D staff has also atten ded nat ional tra in ing sess io ns, s uc h as t he an nu a l A IC PA Natio na l Gove rnm e nt a l
Ac count ing an d A ud itin g Upda te, so that a ll of th e key staff ass ig ned to th e C ity's a udit und ers tands bo th
local as we ll as nat iona l tre nds a nd iss ues.
13
Section 3 -Similar Engagements with Other Government Entities
A. Firm's Experie nce -References
VT D has provided s imilar audit serv ices for severa l other j uri sdiction s s imil ar to th at whi ch is req uested by
th e C ity ofTemple C ity includi ng the followi ng:
Citv of Sacram ento
Mr . Dennis Kauffman, Finance Operations Manager
9 15 I Street. 5th Floor, Sac ramen to. CA 95 8 14
(9 16) 808-58 43
Scope of Work
Comprehens ive Ann ua l Fin a ncia l Re port -GFOA Awa rd
OMB A-133 Single Aud it
Sacramento City Em ployees Retireme nt Sys tem
Sacramento Conventi o n a nd Vi s itors Burea u
GANN Lim it Agreed Upo n Proced ur es
C ity of R a ncho Mirage
Mr. Isaiah Hagerman , Fi na nce Director
69825 Highway Ill
Ranc ho Mira ge, CA 92270
(7 60) 770-3207
Sco pe o f Work
Co mprehe ns ive A nnu a l Fin a ncia l Repo rt -GFOA Award
OM B A-133 Single Au dit
S uccesso r Agency I Hou s in g A uthority
T rans ient Occupancy Tax Audits
GANN Limit Agreed Upo n Proc edure s
C ity of Whittier
Mr. Rod Hill , City Con troll e r
13230 Penn Street, Whittier CA 90602
(562) 567-9810
Scope of Work
Co mprehe nsive An nu a l Fin anc ia l Report -GFO A Awa rd
OMB A-133 Single Audit
Ai r Quali ty Managemen t Di s tri ct
Wh itt ie r Uti li ty A uth or ity
Successor Agency I Ho us in g Authority
GANN Limit Agree d Upon Pr ocedures
14
Section 3 -Similar Engagements with Other Government Entities
A. Firm's Expe ri e nce -Re ferences, (C o ntinu e d)
C ity of Huntingto n Be ach
Ms. Lor i Ann Fa rre ll , Dir ec tor of Finance
2000 Ma in Street, Hunti ng ton Beach CA 92648
(7 14) 536-5225
Scope of Work
Comprehensive Annua l Financial Report -GFOA Awa rd
OMB A-133 Single Aud it
Ai r Quali ty Managemen t Di s tri ct
Wes t Orang e County Wa ter Board
S uccessor Age ncy
GANN Limi t Agreed Upo n Procedures
C ity o f Glendale a nd Glendale Wate r & Power
Ms . Sh u-Jun Li , Accou nt in g Manager
141 N . G le nda le A ve nue , G lendale, CA 91206
(8 18) 548-2085
Scope of Work
Com preh e ns ive An n ua l Fin ancial Report -GFOA Award
OMB A-133 Si ng le Aud it
Glenda le Water and Power
GANN Limit Agreed Upon Procedu res
C ity o f Fo lso m
Ms. Terr i Hemley, Accou nti ng Manager
50 Natoma Street, Folso m, CA 95630
(916) 355-830 I
Scope of Wo rk
City of Fol som Comprehe ns ive Annua l Financ ia l Rep011 (GFOA Awarded)
C it y of Fol som Red eve lopment Success or Agenc y
City o f Fo lso m Public Fin a ncing Authority
OMB A-1 33 Single Audit
GANN Limit Agreed-Upo n Procedures
AB 1484 Du e Dili gence Rev iew
B. Co ntrac ts Completed During the Last Three Ye a rs
VTD has performed n ume rous audits of loca l government municipa l iti es. As a res ult of our high lev e l of
serv ic e, expertise and depth of our team , we co ntin ue to be retai ned for aud it servi ce s after our contrac ts are
co mple ted.
VTD d oes no t ha ve a record of not be ing ab le to fu l fi ll our contract re spo ns ibilities nor have we bee n releas ed
mid-te rm in a profe ss iona l se rv ice s co ntr ac t within th e last 3 years.
15
Sectio n 4-A udit U nd erstanding
A. Project Mana gem e nt
YTD provides audi tin g services to a varie ty of governmental agenc ies th roughout th e State of Ca li fornia. The
key to ou r success is str uctur ing ou r aud it team s wi th a designa ted project audit manager and project audi t
partner to maintain ult im ate res ponsibility fo r tim e ly completio n o f the audits. During th e planning phase of
th e audit, YT D will wo rk w it h the C ity to co mpl e te a matrix in order to map out all of the significant date s for
the pr ovision of se rvice in c luding key contacts, fieldwork entrance and exit dates, de li ve rable da te , report
review dates, final due dat es, and board presentati on dates. By prepa ri ng a comprehens ive matri for each
re po rt. all th e informatio n regarding the tim ing of the audits and various project s is documen ted in one cen tral
location and is agreed upon between the aud itor and the City. The ti meline will the n on ly be modified
thro ugh com mu nicati o n between VTD and th e C ity.
B. Complete Work Plan/Project Desc ription
Ove rview of th e A udits
pecific de tails for the requested se rvices are noted in the "Brief Sy nopsis" sect ion of the proposal. As
requ ired b) the Request for Proposal our audit plan covers the engagements for:
• Preparation and Audit of the City of Templ e C ity's (City) Comprehensive Annua l Financial Report
(CAF R)
• in g le Aud it , ass umin g o ne major program
• Agreed upon procedures o n th e C it y's GANN Lim it Ca lculat ion
• Required com mun ications under Gove rnm ent A uditin g ta nd ards and AI C PA professional s tandards
• Technical cons ultati o n on accounting a nd financial iss ues during the year at no ext ra co st
The aud its wil l be cond ucted in acco rd ance wit h generally accepted audi tin g standards issued by the
Ame ri ca n In stit ute of Cert ifi ed Public Accou nt a nt s (AIC PA). Governmental Auditmg Standards published by
the Comp tr olle r General of the Uni ted Stated , and the requi re ments desc ribed in the U .. Office of
Manage ment and Bud ge t (OMB ) Circ ul ar A-133 .
Prop osed S egm e ntatio n of Audit by staff
Pre-Audit Interim Final
Planninl! Audit Audit Total
Partner 2 14 18 34
Manager 6 50 68 124
Supervisor 6 so 70 12 6
Stall' 7 53 72 132
P araprofessional I 4 5 10
Total 22 171 233 426
L evel of s taff and number of hours assig n ed to ea ch segment
Partner M llllllJ::.er _S upervisor _s_tllfT C le rical To t11l
I C ll) o f I cmplc C ll) CAFR Audu
( mcludcs GA I unn AUP) 32 12 0 12 0 12 0 8 400
2 Smgle Audu Report
(ass umes one maJ o r program ) 2 4 6 12 2 26
Totals 34 124 126 132 10 426
16
Section 4-Audit Understanding
B. Co mple t e Wo rk Plan/Proj ect Des c r ip t io n, (Co ntinu e d )
A udit Ho urs by A rea
Pre-Audit Inte rim Final
Pla nning A udit Audit To tal
I . City of Tem p le City CAF R Audit
(includes GA Limit AUP) 20 160 220 400
2. Si ngle A ud it Repo rt ~ ~
(a ss umes o ne majo r progra m ) 2 II 13 26
Tota ls 22 17 1 233 426
C. Id e ntifica ti o n o f Pote ntial A udit Iss ues
We d o not a ntic ipate prob le ms with in the a udit. Howeve r, if a udit iss ues are enco un te red , ou r process wo ul d
inc lud e meeting with t he C it y's management to develop th e appro pri ate respo nse, a nd id entify any specia l
ass ist ance that w ill be requested from the C ity.
We have however iden tifi ed t he fo ll owing areas that we be lieve that we ca n be of as s ista nce.
• GASB Swndard !mp lementations GASB 72-79 wi ll be requ ired to be im pl e mented during the
co ntrac t te rm.
• Single Audits -Uni fo rm Grant Guid ance ha s been is s ued an d is e ffec t ive fo r the C ity fo r gran ts
awarded after Dece mbe r 26, 2014.
A pproach in A d dressing Ne w GASBs
T he Cit y wil l be req uired to implement va rious GASB s tate men ts d ur ing t he te rm o f th e contract. These
acco un t in g pro nou nce me nt s impact the re porti ng of seve ral areas inc ludi ng Fai r Va lue for Inves tme nt s,
Pe nsio ns, Other Pos te mploy ment Be nefits (O PEB), Tax Abate me nt Di sc los ures and Lea ses .
We understand that GAS B im ple mentatio ns ca n be diffi c ult and c ha lle ng ing. T herefo re we be lieve in taki ng
a tea m approach and perform ing proactive planning to e ns ure tha t new GAS B Standards are implemented
time ly a nd co rrect ly . T hi s sta.1s duri ng th e planning a nd interi m phase of the aud it a nd s itti ng down wi th
ma nagemen t and d isc uss in g the po te nti a l imp ac ts of the GAS B sta nda rd and the documenta tio n a nd
info rm at ion needed to imp le ment. We wi ll ass is t t hroug hout th e process as needed in prov iding tec hnical
gui da nce regard ing the imp ac ts of t he change in s tand ards to e ns ure new s tandards a re s uccess ful I:< captured
in the fin ancial state ment s.
17
Section 5 -Audit Plan/Scope of Work
A . Our Proposed A udit Pl a n
Our en gage me nt app roach fo r th e C ity o f Te mp le C ity audi t has we ll -detai led g oa ls by w hi ch th e e ngageme nt
part ner can meas ure progress . Our audit pla n in cludes freque nt contact betw een th e partn er and the
engagement team to as s ure t hat obj e cti ve s are atta in ed accord in g to the aud it sc hedul es and that pr o bl ems are
communicated a nd dealt wi th on a time ly ba s is. Our e ngage me nt approach benefit s from o ur lo ng
acc um ulated e x pe ri ence du rin g whic h o ur firm has identifi ed key areas of fi nancial a nd accounting co ncern in
th e aud it pro cess. More imp ort antl y, th e approach prov id es for a co m ple te re assess men t of the man ag emen t
and contro l env ironm ent in each year's audit a nd thu s is ca pable of re sponding to c hanges a nd wi ll e ns ure that
deadlin es are me t in iss uin g the ann ua l financ ia l state ment s.
T he ke y c haracte ri stics of o ur engageme nt a pproa ch are :
• Knowledge of th e C ity of Temp le C ity and sim ilar entit ies. We ha ve ex te ns ive expe rien ce a udit ing
gove rnm e ntal e ntiti es s imil ar to th e C ity . Thi s experien ce enabl es us to perform a more e ffi c ien t
a udit and iden ti fy key audit ri s ks.
• Cos t-effecti ve n ess . Our e xpe ri enced aud itor s low pe rce nta ge of turno ve r reduce your cos t .
• Timeliness. We take d ead li nes, both y ou rs and o urs, seri o us ly .
• Pa r rn er-m anager in vo l ve men t. Decid in g on audit s tr ateg ies requires se as oned j ud g ment. Our
pa rtn e rs a nd ma na gers have bee n heav il y and con t inuous ly in vo lved in governm enta l aud its.
Furth erm o re. you will be able to con s ult w ith senio r tea m members w hene ve r need ed thro ug hout the
year. We are a va il abl e d urin g th e year for an y add itiona l cons ultation that ma y ar ise and spec ifi ed in
th e req ues t fo r propo sa l.
Pro ject M an ag em ent -Overa ll A udit
Our audi t pl an for eac h o f the fi scal years invo lv es s ix (6) stage s for eac h audit. These stag es are:
Stag e I , Plan n ing
St age 2, Ri s k Assess ment
St age 3, Preparation of th e Ove rall Audit Plan
St age 4, Condu ct ing the Int erim Audit
Stage 5, Conduct ing th e Fi na l A ud it
Stage 6. Repo rting
T hese stages w ill be applied to th e City's CAFR audit as we ll as th e oth er a udi ts. The aud it a pproach w ill be
ta il ored to th e risk of eac h in div idu al e nt ity and th e sc a le will a ls o be adju ste d as nece ssa ry to e ns ure that each
enti ty's fin a nc ia l s tatement s are fa irl y s tated.
Stag e 1 , Plann ing
VTD w ill meet wit h key staff to plan th e a udit serv ic es for the y ear. Th ese meet in gs wi ll d iscu ss all a udit
iss ues a nd th e proposed interim work plan . Dur ing thi s phase, we will accomp lish :
• Id enti fy in g th e key personnel and con tac ts in th e Finan ce Departm ent and othe r department s.
• Id e nti fy t he C ity of Te mpl e C ity s ign i ficant c lasses of transac ti ons and bu si ne ss pro ce sses.
• Obta in an unders tandin g o f a udit r is k areas.
• Develo pin g an und e rstand ing of unu s ua l tr ansac tions o r eve nts tha t have occurr ed d urin g the fi sca l
yea r.
• Fo rm a li z in g logi stics .
• Fin a li z in g the tim e fr ame s for interim fi e ldwork .
18
Section 5-Audit Plan /Scope of Work
A. Our Pr oposed A udit Plan, (Co ntinu ed)
Stage 2. Risk Assessment
Based upon the informa ti on obtai ned in the planning meetings VTD w ill perform a risk assessment as
requi red by tatements on Aud itin g tandards (SAS ) to be used in th e pr epa ration of the overall audit plan.
As part of this risk assessment we will perfo rm the following:
I . Obtain an understanding of the entity and it s environ ment and its ri sks and mat erial compliance
requiremen ts. VTD will refe r to the City's prior year Comprehensive Annual Financial Report , annual
bud get docume nt , municipal code and other relevan t documentati on to assist w ith o ur unders1 anding of
the City's business e nvironmen t and ri sks. VTD will also cond uct inqu iry w ith key indiv iduals within th e
Ci ty w ho are re s ponsib le fo r exec utin g th e City's strate gic plan.
2. Obta in an understanding of th e entity's internal contro ls. VTD w ill refer to the City's organiza tiona l
chart s, budget, written policies an d procedures, fin anc ial account ing sys te ms to assis t with ou r
und erstanding of internal co ntrols. VT D will also perfo rm inquiry, obse rvation, inspection, and wa lk-
throughs of key int ernal controls to ensure th ese ke) con tro ls are pr ope rl y designed and implemented.
Ke) internal con tr o l cycles include -
Huma n Resources Pa) roll Re ve nue Co ll ect ion /Billing
Procurement I Cash Di sburseme nt s
Investment manage ment
IT Co ntrols. relating to all aspects of the a udit
Use r access
Deb t manage me nt
Financia l reporting
Year en d c lo s in g
Budgeting
Risk management
ec ur ity
Backup and rec ove ry
ys tem interfaces
Fraud Pr event ion Programs
Grants Management
3. Pr eli minar) ana lyti ca l review , determinati on of preliminary ma ter iality levels.
4. Analysis of know misstatements , if a ny.
5. Consideration o f ri sk of mate ri a l mi ss tat ement at the indi vi du a l account ba lance, c lass of tran sac ti ons and
disclosure leve l.
6. As sess ing th e ri sks of mat eri al mi sstat e ment at both the fin anc ia l statement and re leva nt assertion levels.
7. Assess the ri sk of material nonco mpli a nce with laws and reg ulation s that have a d irect and mate ri al e ffec t
on th e fin ancial statements.
8. Eva luation of th e City's inform ati on techno logy and ge neral information technology co ntr ols.
S tage 3. Preparation o[the Overall Audit Plan
Once th e pla nnin g a nd risk assessment pro cess are complete a n overa ll audit plan will be prepared. The plan
w ill specify eac h audit ta sk, staffin g assign ment s. tim elines . and due dat es. The plan will a lso break down th e
wo rk assignmen t between interim and final audit timeline s. The audit plan will include the transaction
cycles which have been se lected for internal contro l te sting and th ose for '' hich only the detailed walk
thr o ugh will be performed .
We will also prepare:
T he pre li minary materiality g ui deline s, the audit pro gram s. including consideration of:
o lden ti fi ca tion of a reas whe re s pecial aud it considerations are necessary.
o De sign of furthe r a udit procedures to reduce ri s k if considered necessary.
o The development of expectation s fo r a na lyti cal procedure s. timelines, and assig nm ent of all audi t
re s pon s ibilities.
19
Section 5 -Audit Plan/Scope of Work
A. Our Proposed Aud it Plan, (Continu e d)
Stage 4, th e Int erim Audit
Our interim fie ldwork dates will norm a ll y occur durin g th e March-Ma y timeframe. The specific wee ks will
be de termined duri ng th e pl annin g meet ing and pre parati on of the audi t plan process.
We wi ll obtain a n unde rsta nd in g of th e des ign and implementat ion of the fin anc ia l repor1in g system to
understand th e follow of informa t io n fo r:
I . Each c lass of tr ansactions that is s ignificant to the financ ia l stat ement s.
2. T he procedu res w ithin both automa ted and ma nu al sys tems, by which th ose tra nsacti on s are initiated.
author ized, reco rde d , proces se d, a nd reported in the fi na nc ia l s tatemen ts.
3. T he re lated accou ntin g records, whe ther in electronic o r man ual support in g information. and s pecific
a ccounts in the fin ancia l sta teme nt s involved in in itiat in g, au th ori z ing, reco rding , process ing and
reportin g transact io ns.
4. How th e informati on sys tems ca ptures even ts and condi t ions othe r than c lasses of tran saction s that
a re s ig nifi cant to th e financial stateme nt s.
5. The financia l reportin g proces s used to prepare the C ity's fin a ncial statements, including s ig nificant
accounting estim ates and di sclos ure s .
Stage 5, th e Final Audit
We wi l l com mence o ur fin a l fieldwork as soo n as C ity of Temple C ity has s uffici e nt ly c losed th eir accou nting
reco rds. We expec t fina l fie ld wo rk to take place during Se ptember-October.
Dur ing th is phase, we w ill perform sub stan ti ve a udit procedures o n th e year-end sta te ment of net po s ition and
fu nd balances, revenue and expenditure/expe nse accounts . We will use a va ri ety of a udit proc edure s whi c h
ma y in c lud e outside confirmation s, stat is ti cal sam pli ng, a nd de ta il ed testin g o f sc hed ule s, anal ytic a l review,
inquiry , and obse rvat io n. Dur ing th is ph ase we wi II draft th e fi nanc ia l statements.
Stage 6, th e Repo rting Phas e
At the end of the audit proces s we will mee t wi th key staff to cove r the fo ll owin g :
• Di scu ss impro ve me nts for s ub se quent ye ars audi t plan,
• Meet with th e A udit Co mmi ttee or Cou nc il to prese nt th e re s ults of the a udit,
• Communicate with th ose cha rged w ith governance.
• We wi ll prepa re Draft Audit Reports wit h manage ment letter comment s to managem ent prior to th e
agreed upon iss ua nce date.
• We wil l prepa re Fina l Draft Audit Repor1s and manag e me nt letter comm ent s for presentation to the C ity
prior to th e ag reed upon issua nce date .
• Significant defici e nc ie s and mat e ri a l weaknesses (i f any) identified durin g the co ur se of th e a udit.
Professio nal sta nd a rd s require wr itten com mu nication to management and those cha rged wi th
governance , of s ig nifi ca nt de fic ienc ies or material weaknesses, ide ntified during th e a udit.
• Other matters that we beli eve to be of pote ntial benefit to th e man age ment of th e City, s uch as
recomm endation s for operat ional o r adm ini strat ive e ffi cie ncy , or for im prov ing ex isting internal con tr ols.
20
Section 5-Audit Plan/Scope of Work
A. Our Proposed Audit Plan, (Continued)
Commu ni catio n
We do not believe in s urpri ses. A lt hou g h t he rep orti ng ph ase in vo lves a recap of th e process we will be in
co nstant commun icat ion regarding the each aspect of the a udit thr oughout th e e nt ire process. You w ill no t
have any surpri ses at the e nd of th e aud it.
B. Use of Comp ute r Assisted Auditing Tec hniques Software in the E n gagem ent
The key memb ers ass ig ned to th e City's engage men t team are expe rienced in wo rkin g wit h muni c ipa l
informa ti on systems s uch as SunGard , Orac le, Peopl eSoft, IFAS , SAP , Great Pl a in s, EDEN, and HA RR IS
Ut ility Bi ll ing systems. T herefore minima l amo unts of City time wou ld be necessary to train our team in how
to mo st efficien tl y access C ity tran sacti o ns and document s for the aud it.
To ass is t in ou r assessme nt of th e IT envi ronm en t under th e COSO and COB IT framework , the engageme nt
tea m will utili ze our IT s peciali st: Ms . Jea nne Loken, Partn er, C PA, C JSA, C ITP , CCB IA, MBA. Further
informat ion on Ms. Loke n and her experience is in c lud ed in th e resu me s sectio n of the pro posal.
C. E ngagement Timeline
Audit Milestones
P lannin g Meeting (Stage I)
A udit Plan ning (Stage 2 a n d 3)
In te ri m Fieldwor k (Stage 4)
F iscal Year-End W o rk (Start)
Fiscal Year-E nd Wo rk (End ) (Stage 5)
De li ver Draft A uditors' Rep o rt (Stage 6)
Del iver Final Reports
March
Ap ril
May
Septe mbe r
September
October
November
March
April
May
September
September
October
Novembe r
2 1
Appendix A-Peer Review Report
O ur mos t cu rren t Peer Rev iew Repo rt
lh 1 \1 \ ''~'u' •• " • R""u S \\'is<•., • l• I \1 ( I ( I old • D I \\ {I ' K
'"" \ ( "' I I~"" l I , II p t Ar n •l 'I""'
to. Ia)' 22. 2015
1 o th~ Partner~ of
Va' rin.:k, Tlinc. Da) & Co .. LLP
and tht· 1ationa l Peer Rc' ic'' Cummlltce
~.: ha'..: rc' ic" cd th..: :>)!>t<!lll of qu;llity contn1l lor the accoun tin g and audnmg practice of
Va\l'md •. 'lrin..:. Da ) & C'o .. LL P (the linn ) a pplh;abk to cngagl'lllent ~ lllll >UhJl'Ct 10 I'Ci\Oii
pcrmanent in,pcction in et1'cct fnr the ye;11· ended D..:ct·rnbcr 1 1. 20 14 Our pcer rc' ic" ""'
conducted in aecordam:e "llh thi: Standard-. for P..:rl'onning an d R ~:porting on P c~.:r l~c' It'\\~
C'il.tblt .. hcd h> I h..: Pcer Rc\ iC\\ ll oard or the i\mcncan ln'iiiiUIC of Ccrtilied Pu bl ic Accountan t ~.
,,., a pan ol' o u1 p..:cr re\ i.:". 1\C emhidcr.:d r.:1 JC\\' h) regulatory cntit ic>. if appl i~:ablc. in
tkternllnlllg the nature oml <:\len t nl CIUI' prnc~:dun:o, I he linn io, re•pon ~ihlc li1r dc,ignmg u
')Sh:m of qual ity con trol and complyi ng ''ith it to prO\ ide the linn 11ith rca~onablc assurance of
pcrlonning and rc portmg in conli111nit) "ith apphLahlc profc~,t o nal ~tandards 111 all material
r~.:~pcct~. Ou r rc.,p Oibihilit) j, w c\pr.:'>S an opn11on on the design of the ')~1<:111 of qua lil)'
control and the li nn's compliance there\\ ith b a~o.:d on our rc\ ie\\. The nal\lre. objcctil c... ~cope.
lun 1ta11 o n~ of, and the procedure' pcrf(mncd in a . ystem Ro.:\ tc\\ ar.: d.:>crilx:d in the Mandu rd s
at \\\\\\ .aio.:pa.org/prs um mar).
\' rct.tu•red by the ~wndards. eng.tgcmen l<, selected for rc\ iC\\ included engagemen t ~ pcrlormed
unckr Govemnwnl ,I milling Sllmdartll audi ts of .:mp luje.: bcnc li l plan~ and audih pcrl'llnncd
und<·r f-DICIA.
In <IUr opin ion. th (! system or qua lit y cont ml lor the accou min g and auditing. prac tice uf
Va' rind .. Trine. Da y & Co., LI .P applicahlc to cng.agcmclll ~ nul su bjo.:e l to PCAOB po.:rmancnt
in~pl'Cllon in effe c t f(lr tho.: yo.:ar end ed Decem ber 31. 2014. has been suitabl y designed and
com pl ied \1 ith to pro\ id e the finn with rcasouable assunHlCl' of pcrfi:mning. and r.:porting in
cnnli.Jrmity with appl icabk prole,siona l stnnd ard, 111 all material ro.:spo.:cts. Firm> can r~.:cc i\C a
rati ng of pass. pass 1ri1h dc~/ic ieun (le.~J or filii . Va\ rind •. Trine. Day & Co .. I.I.P has recci1 cd a
pt.'cr rC\ IC\\ rating. of pth'.
~~ VJ~ I~IJ C ~t Pc.
Yanan \\':11son McGaughc)' P.C.
22
Submitted b y :
ATTACHMENT B
CITY OF TEMPLE CIT-Y,
CALIFORNIA
Cost Fee Proposal for
Auditing Services for the
Fiscal Years Ending June 30, 2016,
2017 and 2018
VA VRINEK, TRINE, DAY & CO., LLP
10681 Foo thill Boulevard, S uite 300
R a nch o C ucamonga, CA 91730
Co ntact:
Roger A lfaro, Partner
Tel: (909) 466-4410 Fax: (909) 466-1131
ralfa ro@ vtdcpa.com
February 5, 2016
VAVRlN E K, TRIN E, DAY
& COMPANY, LLP
Certified Public Accountants
Cost Proposal (All Inclusive Maximum Price)
SEALED COST PROPOSAL
a rn e o f Firm: Yav r in e k, T rin e, Day & C o ., LLP
Address: I 0681 Foo thill Bo ul ev ard , S uite 300
C ity, State, Z ip : Ran cho C uca mo nga, CA 9 173 0
Contac t Nam e : Ro ge r A I fa ro
Contact Te le ph o ne Number(s): (909) 466 -44 10
~~--------------------------------
Cont ac t E-m a il Address : ral faro a' td c p a.com
I. th e und ers igned, certi fy I a m dul y auth ori zed to re prese nt th e above na med firm
a nd a m e mp o we red to s ub mit thi s bid . In addit io n, I ce rti fy I am auth ori z ed to
co ntr ac t w ith t he City of Indi a n We ll s o n beha lf o f th e a bo ve named firm .
Partn er 02 /05/201 6
T itl e Date
Roge r A l fa ro
Na me (pri nt)
Total all-inclusive maximum fee for 2015/2016 A udit $ 53,000
Total all-inclusive maximum fee for 2016/2017 Audit $ 53,000
Tot a l a ll-inclus ive m axi mum fee for 2017/2018 A udit $ 54,590
Total a ll -inclusive maximum fee for 2018/2019 A udit $ 56,228
Total a ll-inclus iv e m axi mum fee for 2019/2020 Audit $ 57,914
Cost Proposal (All Inclusive Maximum Price)
We a rc firml y committed to providin g th e C ity ofTempl e C ity (C ity w ith th e s up eri o r level o f profess iona l
se rvices th at the C ity has come to ex pect from its indep endent audit ors. We stri ve to prov id e except ional staff,
qu a lit y, and va lue a t th e lowe st poss ib le fees co ns iste nt with th e expectati ons of t he C ity. O ur ra tes a re
compet iti ve, even wi th ou r de pth of ex perience and co mmi t ment to qua lity.
Howeve r. we do no t wa nt fees a lone to be a n obs tac le in th e C ity's se lect io n of Vavrin ek, Tr ine, Day & Co., LL P.
We wou ld be happy to d isc uss an d negotiate suc h fee issues and res po ns ib i lities with you.
Proposed Audit Fees
Des cription of Service s 2015-2016 20 16-20 17 2017-20 18 2018-20 19 2 019-2020
I . Ci ty o fTe mp le C ity A FR Audit
(inc lud es GANN Limi t A UP) $ 50,000 $ 50,000 $ 5 1,500 $ 53,045 $ 54,636
2. in g le i\ud it Report
(ass um es one rnajo r progra m) (I) 3 ,000 3,000 3,09 0 3,183 3,278
Tota l for Fiscal Year (not-to-exceed ) $ 53,000 s 53.000 $ 541590 $ 56,228 $ :57,914
{I) Ad d iti o nal major p rograms will be 2,500 per program.
QUOTED HOURLY RATES OF T H E FlRM'S PROFESS fONAL :
2015-20 16 20 16-20 17 20 17 -2018 2018 -2019 2019-2020
Partner $ 220 $ 220 $ 227 $ 233 $ 240
Manage r 180 180 185 19 1 19 7
S upe r v isor 150 150 155 159 164
Se ni o r 140 140 144 14 9 153
IS ta fT 95 95 9 8 10 1 104
Parapro fess ional 65 65 67 69 7 1
Cost Detail by Area
I. City of Temple City CAFR Audit
(includes GANN Limit AUP)
Partner
Manager
Superviso r
S t aff
P a ra pro fess ion a I
S ubt ota l
Di s count
ot t o Exceed Maxim um Fee
2. Single A udit Report
(assumes on e major prog ram)
Partner
Manager
Supervisor
S taff
Paraprofessiona l
S ubtota l
Discount
No t to Exc eed Maximum Fees
Esti m a t ed
H o u rs
32
120
120
120
8
400
Es timated
Hours
2
4
6
12
2
26
Fiscal Year 2015-2016
$
H ourly
R ates
220
180
ISO
9S
6S
Fiscal Year 2015-2016
Hourly
Rates
$ 220
18 0
I SO
9S
6S
Propo sed Fees
$
$
7,040
21,600
18 ,000
11 ,400
S20
S8,S60
(8,S60)
SO,OOO
Proposed Fees
$
$
440
720
900
I, 140
130
3 ,3 30
(3 30)
3 000