HomeMy WebLinkAboutR28-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY ORIGINAL
OF THE CITY OF SAN BERNARDINO
FROM: Maggie Pacheco
Executive Director
SUBJECT: Financial Audit Services Agreement with
Rogers, Anderson, Malody & Scott, L.L.P.
DATE:
July 19, 2006
Synopsis of Previous Commission/Council/Committee Action(s):
On July 18, 2006, the Redevelopment Committee recommended approval of a financial audit services agreement with
Rogers, Auderson, Malody & Scott, L.L.P.
Recommended Motion{sl:
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino, California,
approving and authorizing the Executive Director of the Redevelopment Agency of the City of San
Bernardino ("Agency") to execute the Agreement for Auditing Services by and between the Agency
and Rogers, Anderson, Malody and Scott, L.L.P., to perform financial audit services for the Agency
Contact Person(s):
Project Area(s)
Supporting Data Attached:
Maggie Pacheco/Barbara Lindseth
Phoue:
(909) 663-1044
All
All
Ward(s):
o Staff Report 0 Resolution(s) 0 Agreement(s) Contract(s) 0 Map(s) OLetters
FUNDING REQUIREMENTS
Amount: $
35,000
Source:
All
Budget Authority:
In Fiscal Year 2006-07 Budget
SIGNATURE:
,/~-Yn (~
Maggie Pacheco, Executive Director
i &,,(/. ~~J~
'-Barbara Lindseth, Director Admi Services
Commission/Council Notes:
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P:'Agcndas.Comm Dev Commission\CDC 20(Xj\08-07-06 RAMS Financial Audit SRdoc
COMMISSION MEETING AGENDA
Meeting Date: 08/07/2006
Agenda Item Number:
1<.28-
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
FINANCIAL AUDIT SERVICES AGREEMENT WITH ROGERS, ANDERSON, MALODY
& SCOTT, L.L.P.
BACKGROUND:
In December 1992, the Economic Development Agency ("Agency") and the City of San Bernardino
("City") jointly issued a Request for Proposals ("RFP") for financial audit services. The Agency and
the City agreed to a joint RFP in order to seek the same audit firm for both entities for consistency
and coordination concerning the Single Audit. As the proposals were reviewed, several factors were
taken into consideration: experience with cities and redevelopment agencies; ability to meet
deadlines; and, overall qualifications of the firm and of the firm's staff members assigned to the audit.
These factors were taken into consideration before the overall cost of the audit was considered,
Based upon these factors, interviews and staff recommendations, the Community Development
Commission ("Commission") approved a three (3) year audit service agreement with Rogers,
Anderson, Malody & Scott, L.L.P., ("RAMS") at an Agency cost of $30,500 per year,
On April 15, 1996, the Commission approved a subsequent three (3) year agreement with RAMS for
financial audit services for the fiscal years July 1, 1995 through June 30, 1998. The Agency cost for
audit services was $33,600 per year. On July 6, 1999, the Commission approved a one (I) year
extension with RAMS for the fiscal year ending June 30, 1999 at an Agency cost of $34,000. The
City also entered into a one (I) year extension, with the intention of issuing a joint RFP for the next
year's audit services for the City, the Agency and the Municipal Water Department.
Beginning with the fiscal year ending June 30, 2000, the Agency, the City and the Water Department
issued a joint RFP for audit services for a one (1) to five (5) year period, with the understanding that
each entity could select a different audit firm during this time period. After initial review of the
proposals and interviews, and based upon the above mentioned criteria, the City, the Agency and the
Water Department recommended, and the Commission approved, a three (3) year agreement with the
audit firm of Conrad & Associates, with the possibility of two (2) one (1) year extensions. The
Agency cost ofthe five (5) year audit agreement ranged from $25,500 to $28,150 per year,
At the end of the five (5) year agreement with Conrad & Associates, the Commission approved a one
(1) year extension, with further direction to issue an RFP for financial audit services at the end of the
extension period on June 30, 2005, The Agency cost for the extension was $34,320,
CURRENT ISSUE:
After the end of the final one (1) year extension with Conrad & Associates, realizing the importance
of periodically seeking financial audit proposals to ensure the most advantageous independent audit
services available, on April 13, 2006, the City, the Agency and the Water Department issued a joint
RFP for financial audit services beginning with the fiscal year ending June 30, 2006, The RFP
required separate audits and subsequent separate financial statement reports for each of the three (3)
entities (component units), plus the comprehensive annual financial report ("CAFR") encompassing
P \Accounting DeptIBarbaraVAgenda CDC AudIt RA."A:S 06.doc
COMMISSION MEETING AGENDA
Meeting Date: 08/07/2006
Agenda Item Number: -'f.lIt
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Economic Development Agency Staff Report
Financial Audit Services Rogers, Anderson, Malody & Scott L.L.P.
Page 2
all three (3) entttles, These financial reports are required in accordance with governmental
accounting standards established by the Governmental Accounting Standards Board ("GASB").
Under City lead and coordination, an RFP was sent to thirteen (13) qualified Certified Public
Accounting ("CPA") firms, as well as being posted on the City's website and provided to the
Chamber of Commerce, Two (2) audit firms responded with proposals, and one (I) firm declined to
bid based upon staff limitations. The two (2) responding firms were Mayer Hoffman McCann P.C,
(formerly Conrad & Associates) and Rogers, Anderson, Malody & Scott, L.L.P" ("RAMS"), both
audit firms having prior experience with the Agency, the Water Department and the City.
On May 11, 2006, accounting staff from the City, the Agency and the Water Department met to
evaluate the two (2) proposals, Based upon familiarity with each of the two (2) responding ftrms,
staff concluded that interviews with the responding firms would not add significantly to the
evaluation process, Both firms were evaluated by staff as competent and qualified in the areas of
understanding the scope of work, demonstrating necessary skills and credentials, related work
experience and references, quality of the proposals, and approach to performing the audit.
Additionally, the first year's cost of the audit services to the Agency was almost identical for either
firm ($34,320 versus $35,000), However, the concern of continuing the use of one (1) ftrm for an
extended period of time was raised during the last one (1) year extension with Conrad & Associates.
Thus, the appearance of independence led to the decision to recommend a change in audit firms at
this time. Based upon this consideration, as well as experience and qualifications, it was determined
that Rogers, Anderson, Malody & Scott, L.L.P" would be recommended for a three (3) year audit
agreement for the City and the Agency. The Water Department has decided to recommend
continuing with Mayer Hoffman McCann P ,C.
ENVIRONMENTAL IMPACT:
None,
FISCAL IMPACT:
The Agency's cost beginning with the fiscal year ending June 30, 2006 is $35,000, with a 3%
increase for each subsequent year thereafter. Funds are currently approved in the Agency's fiscal
year 2006-07 budget.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
'")'11 ru~~
Maggie Pache 0, Executive Director
P:\AgcOOas\Comm Dev CommiS$ion\CDC 2006\OS-Q7-Q6 RAMS Financial Audit SR.dot
COMMISSION MEETING AGENDA
Meeting Date: 08/07/2006
Agenda Item Number: ~22-
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RESOLUTION NO.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING
AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECUTE THE AGREEMENT FOR AUDITING
SERVICES BY AND BETWEEN THE AGENCY AND ROGERS,
ANDERSON, MALODY AND SCOTT, L.L.P., TO PERFORM
FINANCIAL AUDIT SERVICES FOR THE AGENCY
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WHEREAS, the Community Development Commission ("Commission") desires to ent
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into an Agreement with Rodgers, Anderson, Malody and Scott, L.L.P" to perform financial audi
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services for the Redevelopment Agency of the City of San Bernardino ("Agency") in accordanc
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with the Request for Proposals and the Proposal for Professional Auditing Services as attached t
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the Agreement.
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF TH
CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, A
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FOLLOWS:
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Section I.
The Commission hereby approves and authorizes the Executive Directo
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of the Agency to execute an Agreement with Rogers, Anderson, Malody and Scott, L.L.P" t
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perform financial audit services for the Redevelopment Agency of the City of San Bernardino fo
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a three (3) year period beginning with the fiscal year ended June 30, 2006 through the fiscal yea
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ending June 30, 2008 in accordance with the Request for Proposals and the Proposal fo
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Professional Auditing Services, as attached to the Agreement.
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Section 2.
This Resolution shall take effect upon the date of its adoption.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING
AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECUTE THE AGREEMENT FOR AUDITING
SERVICES BY AND BETWEEN THE AGENCY AND ROGERS,
ANDERSON, MALODY AND SCOTT, L.L.P., TO PERFORM
FINANCIAL AUDIT SERVICES FOR THE AGENCY
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5
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
7
Community Development Commission of the City of San Bernardino at a
8 meeting thereof, held on the
day of
, 2006, by the following vote to wit:
9 Commission Members:
Abstain
Absent
Navs
Aves
10
ESTRADA
BAXTER
VACANT
DERRY
KELLEY
JOHNSON
Me CAMMACK
II
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15
16
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Secretary
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The foregoing resolution is hereby approved this
day of
,2006,
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Patrick J, Morris, Chairperson
Community Development Commission
of the City of San Bernardino
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e I Content:
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By:
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P:'Agendas Resolulions'Resolulions'2006 08-07-06 RAMS Financial Audit Reso.doc
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AGREEMENT FOR AUDITING SERVICES
This Agreement for Auditing Services is made and entered into on this day of August,
2006 by and between the Redevelopment Agency of the City of San Bernardino, a public agency,
corporate and politic, duly organized and existing as a community redevelopment agency,
(hereinafter referred to as "Agency") and Rogers, Anderson, Malody and Scott, L.L.P., Certified
Public Accountants (hereinafter referred to as "Auditors"),
WITNESSETH
WHEREAS, Auditors are recognized as competent and qualified certified public accountants who
were selected by the Agency through competitive procedures, and are duly authorized to practice
and licensed as such by the California State Board of Accountancy;
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1, TERM, Unless terminated earlier or cancelled as provided for herein, the term of this
Agreement shall be for the each ofthe three (3) fiscal years ending June 30, 2006 through June
30, 2008,
2,
SCOPE OF SERVICES. The Auditors agree to provide services and perform all work
necessary in a manner satisfactory to the Agency as set forth in the Proposal for Professional
Auditing Services, Appendix A, and the Request for Proposals, Appendix C, attached hereto
and by reference incorporated herein and made a part hereof.
3, AGENCY'S OBLIGATIONS, For furnishing services specified in this Agreement, Agency
will pay and the Auditors shall -receive the full compensation as set forth in Appendix B
attached hereto and by reference incorporated herein and made a part hereof. Additionally,
Agency agrees to provide Auditors with supporting schedules, trial balances and
reconciliations as necessary to complete the services requested in Appendix A.
4, PAYMENT SCHEDULE, The Auditors shall submit invoices based on the percentage of audit
work completed, After Agency approval, said invoice shall be paid within 30 days,
5, COMPLETION OF AUDIT AND DELIVERY OF AUDIT OPINIONS,
A, Auditors shall complete all work by the dates provided in Appendix A of each fiscal
year included in the term of this Agreement, but in no event shall any final written audit
report, management letter or affiliated report be delivered to the Agency later than
December I for the immediately prior fiscal year being audited.
B. Auditors shall deliver their final typed audit opinions and other reports as set forth in
Appendix A for each fiscal year included in the term of this Agreement provided
Agency furnishes the information to Auditors pursuant to Section 3 herein above in a
timely manner.
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6,
TERMINATION.
A Termination Without Cause, Agency and Auditors shall have the right to terminate this
Agreement, by giving not less than thirty (30) days' prior written notice of termination
to the other party. On the date of termination stated in the written notice, Auditors shall
discontinue performance of the services, preserve the product of the services, and turn
over to Agency the product of the services in accordance with written instructions of
Agency, If Agency terminates this Agreement under this Subsection A of Section 6,
Agency shall compensate Auditors within thirty (30) days following the effective date
of termination for all services satisfactorily provided prior to the effective date of
termination based on the amounts and rates set forth in Appendix B. If Auditors
terminate this Agreement under this Subsection A of Section 6, Agency shall
compensate Auditors in the same amount Agency would compensate Auditors in the
event Agency terminated this Agreement under this Subsection A of Section 6, less any
costs Agency pays other auditors to review or re-perform the services provided by
Auditors prior to the date of termination, In the event of termination without cause by
either party, Agency's payment as provided herein shall constitute full satisfaction of
Agency's obligations under this Agreement.
B. Termination bv Agencv for Cause,
1. Agency may, by written notice to Auditors, immediately terminate the whole or
any part of this Agreement in any of the following circumstances:
a, Auditors fail to perform the services required by this Agreement within the
time specified herein, or within any extension of that time;
b, Auditors fail to perform satisfactorily the services called for by this
Agreement, or otherwise breaches any provision of this Agreement, and do
not correct such failure within a period of ten (10) days or such longer
period as Agency may authorize in writing after notice is given by Agency
specifying such failure of breach;
c, Auditors make a general assignment for the benefit of their creditors, files
or have filed against them a petition in bankruptcy, or have a receiver
appointed on account of their insolvency; or
d, Auditors fail to maintain the insurance required pursuant to Section 10,
2, Immediately upon receiving written notice of termination, Auditors shall
discontinue performing services, preserve the product of the services, and turn
over to Agency the product of the services in accordance with written instructions
of Agency, In the event Agency terminates this Agreement in whole or in part as
provided above in Paragraph 1 of this Subsection B of Section 6, Agency shall
pay Auditors for all services satisfactorily provided by Auditors prior to the
effective date of termination based on the amounts and rates set forth in Appendix
B, less any fees Agency pays other auditors to review or re-perform the services
provided by Auditors prior to the date of termination, Said payment shall
constitute full satisfaction of Agency's obligations under this Agreement.
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C,
Termination bv Auditors for Cause, Auditors may immediately terminate this
Agreement if Agency is in breach of this Agreement and does not correct such breach
within a period often (10) days (or such longer period as Auditors may authorize in
writing) after notice is given by Auditors specifying such failure of breach. If Auditors
terminate this Agreement pursuant to this Subsection C of Section 6, Agency shall
compensate Auditors within thirty (30) days following the effective date of termination
a fee for all services satisfactorily provided prior to the effective date of termination
based on the amounts and rates set forth in Appendix B, and such payment shall
constitute full satisfaction of Agency's obligations under this Agreement.
7, NOT OBLIGATED TO THIRD PARTIES, The Agency shall not be obligated or liable
hereunder to any party other than the Auditors,
8, PROHIBITION AGAINST SUBCONTRACTING OR ASSIGNMENT, The experience,
knowledge, capability and reputation of Auditors, its principals and employees were a
substantial inducement for the Agency to enter into this Agreement. Therefore Auditors shall
not contract with any other entity to perform in whole or in part the services required
hereunder without the express written approval of the Agency. In addition, neither this
Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or
encumbered voluntarily or by operation of law, whether for the benefit of creditors or
otherwise, without the prior written approval of Agency, Transfers restricted hereunder shall
include the transfer to any person or group of persons acting in concert of more than twenty-
five percent (25%) of the present ownership and/or control of Auditors, taking all transfers
into account on a cumulative basis. In the event of any such unapproved transfer, including in
any bankruptcy proceeding this Agreement shall be void, No approved transfer shall release
any surety of Auditors of any liability hereunder without the express consent of Agency,
9, INDEPENDENT CONSULTANT. Neither the Agency nor any o(its employees shall have
any control over the manner, mode or means by which the Auditors, its agents or employees
perform the services required herein, except as otherwise set forth, The Agency shall have no
voice in the selection, discharge, supervision or control of Auditors' employees, servants,
representatives or agents, or in fixing their number, compensation or hours of service.
Auditors agree to maintain continuity of managerial personnel assigned to the engagement
except for reasons beyond Auditors' controL Auditors shall perform all services required
herein as an independent contractor of Agency and shall remain at all times to the Agency a
wholly independent consultant with only such obligations as are consistent with that role,
Auditors shall not at any time or in any manner represent that it or any of its agents or
employees are agents or employees of Agency, Agency shall not in any way or for any
purpose become or be deemed to be a partner of Auditors in its business or otherwise of a joint
venture or a member of any joint enterprise with Auditors,
10, INSURANCE, The Auditors shall procure and maint.ain, at its cost, comprehensive general
liability and property damage insurance, including automobile and excess liability insurance,
against all claims for injuries against persons or damages to property resulting from Auditors'
negligent acts or omissions rising out of or related to Auditors' performance under this
Agreement. Auditors shall also carry Workers' Compensation Insurance in accordance with
State Workers' Compensation laws. Auditors agree to maintain professional liability insurance
to protect Agency from Auditors' negligent acts, errors or omissions of a professional nature.
If any claim related to the performance hereunder be asserted against either party hereto, the
party claimed against shall receive all reasonable assistance from the other. The requirements
?erein for subrogation may be waived by the Agency with respect to such professional liability
Insurance,
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10, INSURANCE, (CONTINUED
The insurance required hereunder shall be kept in effect during the term of this Agreement and
shall not be subject to reduction in coverage below the limits established herein, nor
cancellation or termination without thirty (30) days prior written notice by registered letter to
the Agency, The insurer shall waive the right of subrogation against Agency, its officers,
employees and agents, and the coverage shall be primary for losses arising out of Auditors'
performance hereunder and neither the Agency nor its insurers shall be required to contribute
to any such loss, A certificate evidencing the foregoing and naming the Agency as an
additional insured shall be delivered to and approved by the Agency prior to commencement
of the services hereunder. The procuring of such insurance or the delivery of policies or
certificates evidencing the same shall not be construed as a limitation of Auditors' obligation
to indemnify the Agency, its officials and employees,
The amount of insurance required hereunder shall be as follows:
L Workers Compensation to statutory limits;
2,
Commercial General Liability:
Each occurrence
Personal injury
Aggregate limit
Hired Auto and Non-Owned Auto Liability:
Each occurrence
Aggregate limit
Professional Liability:
Each claim and in the aggregate
$1,000,000
$1,000,000
$1,000,000
$2,000,000
3.
$1,000,000
$1,000,000
4,
11, NOTICE, All written notices to the parties hereto shall be sent by United States mail, postage
prepaid by registered or certified mail addressed as follows:
AGENCY:
Maggie Pacheco, Executive Director
Redevelopment Agency of the City of San Bernardino
201 North E Street, Suite 301
San Bernardino, California 92401
AUDITORS:
Terry Shea, Partner
Rogers, Anderson, Malody and Scott, L.L.P.
290 North "D" Street, Suite 300
San Bernardino, California 92401
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12, AUTHORITY TO EXECUTE AGREEMENT, Both Agency and Auditors do covenant that
each individual executing this Agreement on behalf of each party is a person duly authorized
and empowered to execute agreements for such party,
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and
year first written above,
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
Maggie Pacheco, Executive Director
Rogers, Anderson, Malody and Scott, L.LP.
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_ 'rP;:/J./.e~ '--
Terry ~a, Partner
Approved as to Form:
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Agency Co I
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APP.ENDIX A
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Proposal
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
CI'IY OF SAN BERNARDINO MUNICIPAL WATER
DEPARTMENT
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Proposal for Professional Auditing Services
For the fiscal year ending June 30, 2006
(with the option for subsequent years)
PREPARED BY:
ROGERS, ANDERSON, MALODY AND SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS
290 NORTH "0" STREET, SUITE 300
SAN BERNARDINO, CALIFORNIA 92401
(909) 889-0871
CONTACT PERSON: TERRY SHEA, PARTNER
tshea@ramscpa.net
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May 4, 2006
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Table of Contents
Transmittal Letter
Technical Proposal
Independence, license to Practice in California and
FirmlClient Relationships
Firm Qualifications and Experience
About our firm
Redevelopment Agency and Single Audit experience
Time required of staff for familiarization of all entities
accounting systems
Extemal quality control examinations
Implementation of Governmental Accounting Standards
Board Statement (GASBS) No. 34 - Infrastructure Reporting
Partner, Supervisory and Staff Qualifications
and Experience
Parlner and supervisory staff involvement
Continuing professional education
Assigned personnel
Client References
Specific Audit Approach
Specific audit approach and proposed segmentation
Level of staff and assigned hours
Sample sizes
EDP software
Analytical procedures
Understanding of internal control over,financial reporting
Approach in determining applicable laws and regulations
Approach in drawing samples for compliance testing
Resumes of Key Engagement Personnel
Attachment A: Quality Control Review Report
Attachment B: Scope of Services
Attachment C: Licensellnsurance Documents
Attachment 0: Request List
PaQe
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IiIUIC
_ERS, ANDERSON, MALODY & SCOlT, LLP
'EDPUBtICACCOUNTANTS
JAV H. Z'ERCHER. C.P.".
ROBERT B. MeUORY. C.P.A.
PHIl-UP H. WAl.lER, C.P.A.
BRENDA L OOLE. C.P.A.
TERRY P. SHEA. C.P.A.
KIRK A. FRANKS, C.P.A.
MA.TTHEW 8. WIl.SON. C.P.A
May 4, 2006
LEENA SHA-NBHA-G. C.P.....
NANCY O'RAFFERTY. C.P.....
LAURIE K. "'''RSCHER. C.P.A.
THOMAS T. P.RIU. C.P,A.
JOSEPH P WALSH. C.P.A.
SCOTT W. "'ANNO, C.P.A.
JENNY UU. C.P.A.
BRAD A. WELEBIR. C.P.A.
Sheila A. Futch
Purchasing Division
City of San Bernardino
300 North "0" Street, 4th Floor
San Bernardino, CA 92418
Rogers, Anderson, Malody and Scott, LLP is pleased to present this proposal for professional
auditing services to the City of San Bernardino, the Economic Development Agency of the City
of San Bernardino and the City of San Bernardino Municipal Water Department (collectively the
City/City of San Bernardino unless noted).
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For over 58 years, Rogers, Anderson, Malodyand Scott, LLP has been providing governmental
accounting and auditing services to a wide variety of governmental agencies, Our experience
has helped us to understand the complex requirements and issues encountered by
governmental agencies like yours, We understand the desire for the timely delivery of accurate
reports (including the timely submission of the Comprehensive Annual Financial Report (CAFR)
and the Cities and Redevelopment Agencies Financial Transaction Reports to the State
Controllers Office) and the desire for a quality audit performed in a competent, efficient manner.
We pride ourselves on helping you meet all reporting/auditing deadlines, resolving any issues
encountered during your audit (e,g" accounting or auditing, new pronouncements, etc,) and by
providing you with quality audit services,
We understand that the City has requested proposals from many other firms, but we believe we
would be the appropriate choice for the City's engagement for the following reasons:
1. As a recognized leader in the governmental accounting and auditing community, we are
committed to providing excellent, timely service and quality reports, all of which will
enable the City to meet its varied needs. Our firm takes pride in' providing the most
experienced and technically skilled professionals on all of our engagements, We strive
to recruit and retain the best and brightest professionals in our field, The professionals
in our firm have the technical knowledge to satisfy the requirements of the engagement,
but, more than that, our professionals have the interpersonal and "common sense" skills
to augment their technical expertise, Also, our staff prides itself on being able to take a
proactive approach to serving the City, actively seeking out opportunities to improve the
efficiency and effectiveness of your operations, Simply stated, we are a full service firm
committed to providing the highest standards of quality and professionalism to all of our
clients,
_ERS
AMERICAN INsnTUTE OF
CERTIFIED puellc ACCOUNTANTS
PCPS THE A1CPA ALLIANCE FOR CPA FIRMS
VANIR TOWER. 290NORTH YJ.STREET . SUlTE300
SANBERNAROINO. C4!/2401
(909)669-l1871 . (909)824-5736. FAX(909)889-5351
E-maI..l;Ims.tJr./mscpa_neI
CALIFORNIA SOClEH OF
CERTIFIED PUBLIC ACCOUNTA.NTS
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City of San Bernardino
May 4, 2006
2, We understand that the audit process as a whole can be a taxing experience for you
and your staff; we understand that you will have other commitments and your regular
workloads during the audit period. For all of our clients, we make every effort to ensure
the audit process, from the interim field work to the preparation of the required financial
reports, will be as trouble-free as possible for you and your staff, We do this by
planning the audit properly and utilizing our staff in the most efficient and effective
manner. Also, we keep an open line of communication with all parties involved in the
audit process,
3, Since we are a local firm, we take pride in responding to your calls and concerns as
soon as possible (within a maximum of 24 hours), because we realize that at various
times through-out the year, a situation may arise that will require immediate
consultation. Our staff will be available year round to serve the City, Also, unlike most
firms, we will not charge you for minor questions or technical issues that will take a
minimal amount of time to solve,
4, As governmental accountants and auditors, we understand the time constraints that our
clients face, Therefore, as with all of our clients. we will be committed to performing
quality work within the required time frame,
After reading through our proposal, we hope that you will have gained an understanding of our
firms' commitment to our clients, that is, our commitment to providing exceptional and timely
service, quality products, and experienced staff to all of our clients, whether new or continuing,
We understand the scope of the engagement as described in the City's Request for Proposal
(see attachment B),
Mr. Shea, Partner, is authorized to act on behalf of Rogers, Anderson, Malody and Scott, LLP,
He can be reached at: 290 N "0" Street, Suite 300, San Bernardino, CA 92401, (909) 889-0871
or tshea@rarnscpa,net.
Thank you for the opportunity to serve the City of San Bernardino and we look forward to
having a long and mutually beneficial association,
Respectfully yours,
ROGERS, ANDERSON, MALODY & SCOTT, LLP
~~~
" Terry Shea, Certified Public Accountant
Partner
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Independence, License to Practice in California and Firm/Client Relationship
Independence
Rogers, Anderson, Malody & Scott, llP is independent of the City of San Bernardino, and any
component units, as defined by general standard number two of the generally accepted auditing
standards,
We are also independent of the City of San Bernardino, and any component units, as defined
by the second general standard for government auditing in the U,S. Government Accountability
Office's Government Auditing Standards (2003),
License to practice in California
Rogers, Anderson, Malody & Scott, llP is licensed to practice in the State of California. The
key professional staff, which includes the partners and managers, are all certified public
accountants licensed to practice in the State of California,
Firm/Client relationship
As with all of our clients, we are committed to developing a relationship with each that will foster
an understanding of their needs and, above all, to maintaining the highest accounting and
ethical standards of our profession, In order to develop this relationship, we do not see
ourselves as just "the auditor", We like to consider ourselves as professional advisors for the
City, that is, providing assistance with accounting and financial reporting standards, As your
advisors, we will assist you in selecting and applying the appropriate standards as they relate to
the City, In addition, we will continually up date you on relevant accounting and reporting
pronouncements that affect the City,
Also, we feel open, frequent communication throughout the entire engagement and continuing
after the engagement with all of our clients is essential. Open communication facilitates the
audit process by allowing any and all issues to be discussed as needed, This creates a clear
understanding of the audit, eliminates any surprises and keeps disruptions to a minimum during
the audit process, thus ensuring an efficient, quality audit.
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Firm Qualifications and Experience
About our firm
Rogers, Anderson, Malody & Scott, LlP was founded in 1948 and is located at 290 North "0"
Street, Suite 300, San Bernardino, California, We are one of the oldest CPA firms in Southern
California, with over 58 years of public practice experience, specializing in governmental
agency auditing, accounting and management advisory services. Over fifteen thousand hours
per year are devoted to this area of our practice, which include cities, redevelopment agencies,
water districts, other special districts, nonprofit corporations and joint power authorities. '
Our firm has a total staff of twenty-six people, which includes thirteen certified public
accountants, Our staff consists of seven partners, five managers, .two seniors, seven staff
accountants and five secretarial staff, Our municipal audit staff consists of eighteen members
who devote approximately 75% of their time to municipal engagements, Tentatively, the audit
team assigned to the City engagement will consist of the following full-time staff: an
engagement partner, a quality control partner and four auditing professionals, There will be no
part-time staff assigned to the engagement.
As governmental auditors, we understand that the City desires its auditors to have a thorough
understanding of the complex accounting and compliance issues confronting governmental
entities such as yours, Our Firm is committed to providing our clients the highest quality service
at the most reasonable fee, The professionals assigned to the City fin'ancial audit have each
made providing quality services their priority,
As stated earlier, we have a long history of governmental accounting and auditing, In that time,
we have gained valuable experience and acquired an in-depth knowledge and technical
expertise needed for governmental accounting and auditing, Our Firm's partners and
professional staff assigned to the City have performed audits, various accounting services and
management advisory services for many governmental agencies, like yours. The following is a
partial listing of prior and current clients, similar to the type of audit requested, that our firm or
engagement team members have served ("includes water and sewer fl!nds):
City of Chino
City of Corona
City of Indian Wells
City of Lama Unda
City of Riverside
City of Canyon Lake
Twentynine Palms Water District
Crestline Village Water District
City of Galt
City of Ontario"
Elsinore Valley Municipal Water
District
Valley Water District
Riverside County Economic
Development Agency
City of Grand Terrace
City of Norco"
City of Calimesa
City of Palm Desert
City of San Bemardino
Town of Yucca Valley
East Valley Water District
West Valley Water District
City of Lake Elsinore
City of Isleton
Ventura Regional Sanitation
District
Pine Cove Water District
City of San Bemardino
Economic Development Agency
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City of Twentynine Palms
City of Indio
City of Fontana
City of San Jacinto"
City of Blythe"
City of Banning'
Running Springs Water District
Mojave Water Agency
City of Perris"
City of Escondido'
Victor Valley Wastewater
Reclamation Authority
Goleta Sanitary District
City of San Bemardino Municipal
Water Department
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Firm Qualifications and Experience (continued)
We have also performed audits for Redevelopment Agencies, pension plans, and compliance
requirements in accordance with OMB Circular A-133, as well as water and sewer uiility districts
, and Public Financing Authorities, In addition, we have provided audit and consulting services
for various private enterprises,
The Firm also provides various other services to governmental agencies, Services to these
governments, in addition to auditing services, include:
. Study and evaluation of financial condition and fiscal policies
. Financial projections
. Organizational studies
. Development of budgeting systems
. EDP control reviews and computer feasibility studies
. System design, analysis and review
. Job classification and compensation studies
. Accounting policies and procedures
. Utility rate studies
. Cost control and cost allocation plans
. Capital Improvement program procedures and policies
. Cash management studies
. Financing and public bond offering assistance
. Assistance in development of internal audit programs
. Employee benefit consulting
. Franchise agreement assistance (ambulance, cable, television, refuse, etc,)
Redevelopment Agency and Single Audit experience
Over the past several years, all of our city clients have been subject to an audit in accordance
with OMB A-133. In addition, we have many other government and nonprofit clients that are
also subject to single audit standards, A current audit client of ours receives approximately
92% of its revenues from Federal, State and local grants.
Also, all of our current city audit clients have active redevelopment agencies, which are subject
to the cOmpliance requirements set forth by the California State Controllers Office.
Time required of staff for familiarization of all entities accounting systems
Based on our vast experience in governmental accounting and auditing and our previous
experience with the entities involved, we believe that only a minimal amount of your staff time
will be needed in order for us to familiarize ourselves with your accounting system. In addition,
our fee is calculated in a manner that does not penalize you for any time spent by us gathering
information about your systems,
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Firm Qualifications and Experience (continued)
External quality control examinations
As a member of the AICPA Private Companies Practice Section, our firm has participated in
.Peer Review. since 1993 and has been examined every three years since that date. During
participation in this program, the firm has received unqualified opinions from the peer reviewers,
A copy of our most recent external quality control review dated August 15, 2003 for the year
ended November 30, 2002 (Attachment A) is attached. The latest review included reviews of
specific governmental agencies.
The firm is not aware of any federal or state desk reviews or field reviews of its audits during
the last three years,
The firm has not had any disciplinary action taken or pending against them during the past
three years with state regulatory bodies or professional organizations, nor has it had any
pending or settled litigation, present civil or criminal investigations within the past three years,
Our firm also does not have a record of substandard work.
Implementation of Governmental Accounting Standards Board Statement
(GASBS) No. 34 - Infrastructure Reporting
Over the past several years, we have provided GASBS No. 34 implementation assistance to the
following cities: City of Norco, City of Grand Terrace and the City of San Jacinto. We also
provided assistance to seventy-eight County of San Bernardino Special Districts in
implementing the new statement. Our experience in implementing this pronouncement will
make our firm an important resource for the City,
Currently, we prepare the GASB 34 financial statement for the following governmental entities:
City of Norco, City of Grand Terrace, City of San Jacinto, City of Twentynine Palms, City of
Calimesa, City of Canyon Lake, the component unit financial statements of the listed cities and
other special districts, including the seventy-eight County of San Bernardino districts.
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Partner, Supervisory and Staff Qualifications and Experience
Our engagement team will provide significant experience and an extensive, practical
understanding of govemmental accounting and auditing, These professionals are highly
trained and knowledgeable and have a thorough understanding of the environment in which
governmental entities operate,
Partner and supervisory staff involvement
All partners and supervisory staff are working professionals and are actively and continually
involved in all aspects of their engagements. We believe that partner and supervisory personal
involvement in all areas of the audit is a key aspect of the overall audit process, including being
pn-site for interim and year-end fieldwork. This involvement helps to ensure a proper, efficient.
and effective audit, with minimal disruption of City staff, In addition, the time spent on-site by
the partners and supervisory staff ensures they gain an understanding of all of the City's
accounting processes and procedures, which will enable them to evaluate, develop
opportunities for efficiency and offer practical and functional advice for improving your
accounting processes and procedures,
We want to emphasize the credentials of the above professionals who will be directly
responsible for the quality of service the City will receive, but additionally, our audit team has
another attribute that is very important, even though it is intangible -- the professionals assigned
to the City's audit have worked together on other engagements, The fact that they are
accustomed to working together as a multi-disciplined team means that the performance of the
audit will be smooth, efficient and effective. We are committed to allocating the necessary
resources to ensure that we provide continuity of personnel throughout the term of our
relationship with the City.
Continuing professional education
All professionals at our firm participate in continuing professional education programs which are
sponsored by various organizations including the Government Finance Officers Association, the
American Institute of Certified Public Accountants, the Califomia State Society of Certified
Public Accountants, the California Society of Municipal Finance Officers and the Association of
Government Accountants, Participation in these classes helps Us to ensure that our clients are
receiving the best trained and proficient gov~rnment auditors and accountants available,
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Partner, Supervisory and Staff Qualifications and Experience (continued)
Assigned personnel
The quality of the service you receive is dependent on the capabilities of the individuals
assigned to the engagement, and the manner in which those personnel resources are
organized to efficiently focus their abilities on providing you with t r uested audit services. It
is our goal to provide the City with capable, competent an sonal ndividuals who offer an
extensive background, not only in governmental accoun uditing, but also general
business practices, We offer practical solutions, as well provide technical support. This
enables you to stay at the forefront of government accounting and provides you with the
support you need in dealing with the complex issues confronting governments such as yours.
In addition, our engagement team has the managerial and supervisory experience to provide
the City with a comprehensive audit of the highest quality, while still focusing on personal
service. The following individuals will be assigned to the engagement for the entire contract
period:
Terry Shea, CPA Engagement Partner
Mr, Terry Shea, CPA will be the Engagement Partner. Mr. Shea, who has over 25 years
of practical, governmental accounting and' auditing experience, will be directly
responsible for the engagement as a whole, He will be responsible for overall
engagement quality, as well as ensuring that the engagement is performed in the most
effective and efficient manner. Mr. Shea will review all work-papers prepared during the
engagement, in addition to all required reports, Mr. Shea provides real world experience
to all of our governmental engagements. He has gained this experience by serving as
interim/contract finance director for several cities over the years., He served as Interim
Finance Director for the City of Perris from July 1998 to October 2001, where he was
instrumental in turning a $2,3 million general fund deficit into a $3,1 million surplus, He
currently serves as the Contract Finance Director for a Riverside County city. Mr. Shea
is a working partner and will be actively an~ continually involved in all aspects of the
engagement.
Robert Memory, CPA Engagement Qualify Control Partner
As part of our Firm's commitment to customer service and delivering quality reports, ,
each engagement is overseen by a quality control partner. For the audit, this partner
will be Robert Memory, Mr. Memory is the Firm's managing partner and has over 34
years experience providing audit and consulting services to governmental agencies like
yours. As the firm's Coordinator of Governmental Services, he is responsible for the
firrn's governmental practice, induding administration, professional development,
practice standards and procedures, and Quality control. Quality control activities indude
the pre-release review of all governmental unit audits and management advisory
services reports issued by him or by other Qualified industry specialists,
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em OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAi WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Partner, Supervisory and Staff Qualifications and Experience (continued)
Scott Manno, CPA Audit Manager
,
Mr. Scott Manno, CPA is a municipal audit manager with the firm and will be the
engagement manager. Mr. Manno ten years, eight of those as an audit manager,
experience in serving local governments such as yours, As the manager of the
engagement, Mr. Manno will be responsible for the planning of the audit, supervision of
staff assigned to the engagement as well as performing reviews of all work.papers
. '
prepared during the engagement. He will also be responsible for preparation of any
required reports, For the past 10 years, Mr. Manno has been providing accounting and
auditing services for municipalities, special districts and redevelopment agencies as well
as various non-profit organizations, Mr. Manno also assisted the following cities in their
endeavors to obtain the CSMFO and/or GFOA awards for outstanding financial
reporting: Town of Yucca Valley, Elsinore Valley Municipal Water District, City of Galt,
City of lake Elsinore, City of Ontario, the Ventura Regional Sanitary District, the City of
Norco and the City of Twentynine Palms, From 1997-2000, Scott served as a technical
reviewer under the CSMFO award program,
~
Brad A. Welebir, CPA Senior Accountant
Mr. Brad A Welebir, CPA is a senior accountant with the firm, He is licensed to practice
as a certified public accountant in the State of California. Mr. Welebir has over three
years of public accounting experience, He has provided accounting, auditing and
consulting services for municipalities, special districts, water agencies, and various
non-profit organizations, He will be responsible for examining general ledger accounts,
verifying revenues and expenditures, preparing work-papers, and assisting in the
preparation of the financial statements and any other required reports,
Anastasia Corles, Senior Accountant
Ms, Anastasia Cortes, is a senior accountant with the firm, Ms, Cortes has over eight
years experience in providing accounting and auditing services for municipalities,
special districts and redevelopment agencies. As a senior accountant she will be
responsible for examining general ledger accounts, verifying revenues and
expenditures, preparing work-papers, supervise staff accountants and assist in the
preparation of the financial statements and any other required reports,
Continuity of audit staff is a principal concern with our firm, Therefore, we plan to provide staff
continuity from year to year, which is in the best interest of the City and our firm, thus ensuring
an orderly, efficient and less disruptive audit experience by competent professionals. Since we
cannot guarantee staff will remain with us, principal supervisory and management staff,
induding engagement partners, managers, other supervisory staff and specialists may be
changed if those personnel leave the firm or are promoted,
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'CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Client References
1.
Entity:
Scope of Work:
Date:
EngagementParlner.
Total Hours:
Contact Person:
2,
Entity:
Scope of Work:
Date:
EngagementParlner.
Total Hours:
Contact Person:
3,
Entity:
Scope of Work:
Date:
EngagementParlner.
Total Hours:
Contact Person:
4,
Entity:
Scope of Work:
Date:
EngagementParlner.
Total Hours:
Contact PerSon:
5.
Entity:
Scope of Work:
Date:
EngagementParlner.
Total Hours:
Contact Person:
COUNTY OF SAN BERNARDINO AUDITOR/CONTROLLER
Special District Audits
Financial Audits
Year Ending June 30, 2002 through 2005
Mr. Teny p, Shea
Approximately 1,750 hours
Mr. Howard Ochi, CPA, Chief Deputy Auditor
(909) 386"8821
CITY OF NORCO
Financial AudiVSingle AudiVRDA Compliance AudiVCAFR
Years Ending June 30, 2001 through 2005
Mr. Terry P. Shea
Approximately 475 hours each year
Ms, Olivia Hoyt, Accounting Manager, (951) 735-3.900
CITY OF SAN JACINTO
Financial AudiVSingle AudiVRDA Compliance Audit
Years Ending June 30, 2001 through 2005
Mr. Terry P. Shea
Approximately 425 hours each year
Mr. Bernard Simon, Finance Director, (951) 487-7340
CITY OF CAL/MESA
Financial AudiVRDA Compliance Audit
Year E:ndin9 June 30. 2005
Mr. Terry p, Shea
Approximately 250 hours each year
Mrs, Debbie Cain, Finance Director, (909) 795-9801
EAST VALLEY WA TER DISTRICT
Financial Audit
Years Ending June 30, 2001 through 2005
Mr. Robert Memory
Approximately 380 hours each year
Mr. Brian Tompkins, Controller, (909) 889-9501
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Client References (continued)
6.
Entity:
Scope of Work:
Date:
EngagementParlne~
Total Hours:
Contact Person:
7.
Entity:
Scope of Work:
Date:
EngagementParlne~
Total Hours:
Contact Person:
8,
Entity:
Scope of Work:
Date:
Engagement Parlner:
Total Hours:
Contact Person:
9,
Entity:
Scope of Work:
Date:
EngagementParlne~
Total Hours:
Contact Person:
10.
Entity:
Scope of Work:
Date:
EngagementParlne~
Total Hours:
Contact Person:
CRESTLlNE-LAKE ARROWHEAD WA TER AGENCY
Financial Audit
Years Ending June 30,1983 through 2005
Mr. Robert Memory
Approximately 350 hours each year
Ms. Roxanne Holmes, General Manager, (909) 338-1779
RUNNING SPRINGS WATER DISTRICT
Financial Audit
Years Ending June 30,1998 through 2005
Mr. Jay Zercher
Approximately 240 hours each year
Mr. Ed Brittain, General Manager, (909) 867-2766
CRESTLlNE VILLAGE WA TER DISTRICT
Financial Audit
Years Ending June 30,1956 through 2005
Mr. Jay Zercher
Approximately 180 hours each year
Mr. Norm Hunt, General Manager, (909) 338-1727
CITY OF TWENTYNlNE PALMS
Financial AuditiSingle AuditiRDA Compliance AuditiCAFR
Years Ending June 30, 2003 through 2005
Mr. Terry P. Shea
Approximately 300 hours each year
Mr. Ronald Peck, Finance Director, (760) 367-6799
CITY OF GRAND TERRACE
Financial AuditiRDA Compliance Audit
Years Ending June 30, 2003 through 2005
Mr. Terry P. Shea
Approximately 280 hours each year
Mr. Larry Ronnow, Finance Director, (909) 824-6621
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CI1Y OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Specific Audit Approach
Specific audit approach and proposed segmentation
The following is a summary of the audit team's approach for the City of San Bernardino
engagement. The audit will be divided into the following phases:
Planning, administration and interim phase:
We anticipate this phase to be performed in the following timeframe for each entity:
City - MaylJune
EDA - August
Water Department - June
During this phase of the audit, our principal objectives will be as follows:
0/ Discuss the dates of the interim and year-end fieldwork,
0/ Familiarize ourselves with the City's accounting policies and procedures,
0/ Obtain an understanding of the internal control over financial reporting sufficient to
plan the audit.
0/ Perform single audit testing procedures, if needed,
0/ Assess control risk and design tests of controls,
0/ Perform tests of controls, if applicable,
In order to achieve the desired objectives of this phase of the audit, we will:
. Meet with City staff in order to determine convenient dates for the City in which we
can begin our audit and to discuss the assistance to be provided by City staff,
. Review and evaluate the City's accounting and reporting processes by reviewing the
prior year audit work-papers, any City prepared documents such as budgets, in-
house financial reports, policies and procedures manuals, minutes of council
meetings, etc. and by using various analytical pr6cedures. Analytical procedures
will enhance our understanding of the City and will help us identify areas that may
need further assessment and additional testing,
. Review and retain copies of any pertinent local, state and federal statutes,
regulations, or charters that apply to the City, Review and retain copies of any
agreements or contractual obligations (e,g, bond and grant documents, lease
agreements, contracts for deposit of monies, revenue agreements, etc),
. We will obtain a thorough understanding of the City's internal controls over financial
reporting and compliance by documenting key internal control components utilizing
questionnaires, walkthroughs, inquiry of City personnel, observation and review of
key supporting documentation (a more thorough explanation of this process is
discussed later in the technical proposal),
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CI1Y OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARlMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Specific Audit Approach (continued)
. Review and analyze supporting data and determine what reliance will be placed on
internal controls and assess control risk,
. If control risk is assessed below the maximum, test controls by selecting a sample of
transactions within the audit area being tested and review supporting
documentation, evaluate the completeness of the documentation tested, as well as
the adequacy of support and approvals as they appear on the support, and
. Document and review with management any findings noted during the testing of
internal controls and provide a preliminary management letter that will include our
recommendations for improving any weaknesses in operations noted during our
intemal control analysis and tests of controls, The letter will also include
suggestions for improving the efficiency of the City's operations,
The audit manager, seniors and staff will perform this phase, with direct oversight of the
engagement partner.
Year-end phase:
We anticipate this phase to be performed in the following timeframe for each entity:
City - October
EDA - September/October
Water Department - September/October
During this phase of the audit, our principal objectives will be as follows:
./ Design substantive tests,
./ Perform substantive tests and complete the audit.
In order to achieve the desired objectives of this phase of the audit. we will:
. Determine whether our testing supports the assessed level of .control risk initially
assigned to each audit area,
. Develop a detailed audit plan, and
. Design substantive tests of balances, designed and modified specifically for the
City's current situation,
. Perform our, tests as needed to enable us to form opinions on the financial
statements.
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CIlY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Specific Audit Approach (continued)
The engagement partner. manager, seniors and staff will perform this phase.
Reporting/audit conclusion phase:
We anticipate this phase to be performed in the following timeframe for each entity:
City - October/November
EDA - September/October
Water Department- October/November
'" Form an opinion and issue the audit reports,
In order to achieve the desired objectives of this phase of the audit, we will:
e
. Determine whether our substantive testing supports our assessment that the
financial statement amounts are reasonably stated. This will provide the basis for
our opinion,
. Review all audit work-papers by the engagement partner and manager to ensure
that the audit was performed in accordance with the required standards (GAAS,
GAGAAS. etc,).
. Prepare drafts of all required reports,
. Independent review of financial statement draft by firm's managing partner and
. Issue all reports by agreed upon date,
This step will be performed during the month of September by the audit manager and audit
senior, with direct oversight of the engagement partner and quality control partner.
Level of staff and assigned hours
The following schedule is a breakdown of the projected man hours, by staff level. by entity:
A City of San Bernardino audit:
Interim Year-end Total
Partner 30 30 60
Manager 40 80 120
Senior 40 120 160
Staff 40 170 210
e Paraprofessional 50 50
150 450 600
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CIlY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Specific Audit Approach (continued)
B. City of San Bernardino Economic Development Agency:
Interim Year-end Total
Partner ~/~ 10 30 40
Manager ~"'" 20 45 65 /
Senior 35 65 100
Staff 35 115 150
P'!raprofessional 25 25
100 280 380
C, City of San Bernardino Municipal Water Department:
Interim Year-end Total
e Partner 15 30 45
Manager 25 60 85
Senior 35 85 120
Staff 40 125 165
Paraprofessional 30 30
115 330 445
Our hourly billing rates are as follows:
Standard
Hourly Rate
Quoted
Hourly Rate
Partner $ 185 $ 170
Manager 135 105
Senior 105 90
Staff 85 75
Paraprofessional 45 45
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Specific Audit Approach (continued)
Sample sizes
Our sample sizes will be determined in accordance with the AICPA Audit and Accounting
Guide, Audit Sampling, and will be selected using professional judgment as permitted by SAS
39. Our methods are designed to provide the most audit coverage without expending excess
time, Our sample sizes will depend upon our preliminary assessment of control risk, as well as
our planned substantive testing and analytical procedures,
EDP software
It is our intent to audit around the City's computer system, However, if we determine that it
would be more efficient and cost effective to audit through the City's system, we will apply the
necessary procedures after discussing the matter with the City,
Analytical procedures
We will utilize analytical review procedures throughout our audit of the City. During the interim
phase of our audit, we will compare current and prior year unadjusted balances to determine
areas that may need additional analysis; we will also compare current year actual amounts to
the City's annual budget. During the final phase of our audit, we will perform procedures similar
to those mentioned above as well as comparing certain financial ratios for current and prior
years and conducting certain .reasonableness. tests, Finally, after we have completed our
fieldwork, we will compare current and prior year audited balances. keeping in mind expected
relationships obtained from our knowledge of the City and various other entities,
Understanding of internal control over financial reporting
Our approach to obtaining an understanding of the City's internal control over financial reporting
will be performed in accordance with SAS 55, SAS 78, SAS 94, and SAS 99 - our
understanding will include the Control Environment. Risk Assessment, Control Activities,
Information and Communication, and Monitoring. Our approach is as follows:
Control Environment. Through inquiry of the City's personnel prompted by questionnaires
and personal knowledge and review of the minutes of the City council meetings, we will obtain
an understanding of management's and the City council's attitudes, awareness and actions
concerning the control environment, focusing on the substance of the controls rather than their
form,
Risk Assessment. Again, through inquiry of the City's personnel and the use of
questionnaires we will obtain sufficient knowledge of the City's risk assessment process to
understand how management considers risks relevant to financial repOrting objectives and
decides about actions to address those risks, This will include understanding how management
, identifies risks, estimates the significance of the risks, assesses the likelihood of their
occurrence, and relates them to financial reporting.
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Specific Audit Approach (continued)
Control Activities. Certain control procedures will be documented during our analysis of the
control environment and the accounting system. However, many specific control procedures
will still need to be documented that will focus primarily on the City's major transaction cydes,
As mentioned above, we will test the City's control procedures on which we intend to rely for
safeguarding assets from unauthorized use or disposition and detecting/preventing
unauthorized transactions. Any flow charts, organizational charts and any other manuals,
programs and financial and management information systems will be analyzed during this
process,
Information and Communication, Again, through inquiry of the City's personnel we will
identify the major types of transactions engaged in by the City's, Next, we will become familiar
with the treatment of those transactions, including how the transactions are initiated, the related
accounting records and the manner of processing the transactions, Finally: we will obtain an
understanding of the City's financial reporting process used to prepare financial reports,
induding the approaches used to make accounting estimates and disclosures,
Monitoring, With the use of questionnaires we will obtain sufficient knowledge of the major
types of activities the City uses to monitor intemal control over financial reporting, We will also
determine how those activities are used to initiate corrective actions,
Approach in determining laws and regulations
As governmental auditors, we realize the importance of laws and regulations in planning an
audit of a local government agency, As part of our audit process, our audit team will obtain an
understanding of. the laws that will have a direct and material effect on the City's financial
statements, In determining which laws and regulations are applicable to the City's financial
statement audit; we will consult the following sources:
. AICPA Audit and Accounting Guide. Audits of State and Local Governments
. The Division of Local Government Fiscal Affairs Minimum Audit Requirements
. U, S. Government ACC<luniability Office's Government Auditing Standards (the
Yellow Book), 2003 Revision
. Applicable contracts/grants of the City of San Bernardino
. The Single Audit Act Amendments of 1996
. Office of Management and Budget (OMB) Circular A-133, Audits of States. Local
Govemments and Non-Profit Organizations
. OMB Circular A-8?, Cost Principles for State and Local Governments
. OMB's Circular A-133, Compliance Supplement
. California Health and Safety Code
. Guidelines for Compliance Audits of California Redevelopment Agencies
After consulting the applicable sources, we will design our audit to provide reasonable
assurance of detecting material instances of noncompliance.
-15-
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Specific Audit Approach (continued)
Approach in drawing samples for compliance testing
Our approach to be taken in drawing audit samples for purposes of tests of compliance will
depend on the number of transactions, the amounts of financial assistance provided (as
applicable) and the City's internal controls over the respective programs, We will select
samples that will provide sufficient evidence of the City compliance with the laws and
regUlations that will have a material effect on compliance with laws and regulations.
-16-
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Resumes of Key Engagement Personnel
terry P. Shea, Audit Partner
Certified Public Accountant
Professional Experience
Mr. Shea began his career with Thomas, Byrne and Smith in 1981, He spent six years with the firm
primarily working on audits of municipafffies, special districts, redevelopment and other governmental
agencies, He joined the firm in 1987 and has completed governmental audits including municipalities and
has provided financial consulting services for various cities,
Education
Bachelor of Arts degree from California State University, Fullerton
Certified Public Accountant - State of California
Related Professional Experience
Governmental agencies that Mr. Shea has served include the following ('includes redevelopment agency):
City of Chino'
City of Grand Terrace'
City of Twentynine Palms'
City of Corona'
City of Norco'
City of Indio'
City of Indian Wells'
City of Calimesa
City of Fontana'
City of Lama Linda'
City of Palm Desert'
City of San Jacinto'
City of Riverside
City of San Bernardino
City of San Bernardino EDA
San Bernardino County Special Districts
Terry served as the Interim Finance Director for the City of Perris from July 1998 to October 2001 where
he was instrumental in turning a $2,3 million general fund deficit into a $3,1 million surplus, He currently
serves as the Contract Finance Director for a city in Riverside County,
Continuing Professional Education
Mr. Shea ~as completed approximately 80 hours of continuing professional education courses,jn the past
three years of which the following select courses are relevant to this engagement:
. American Institute of Certified Public Accountants, Nafional Governmental and Not-for-Profit
Training Program
. Single Audits of state and Local Govemmenfs
. American Institute of Certified Public Accountants. Yel/ow Book Governmental Auditing Standards
Professional Affiliations
Mr. Shea is a member of the following professional organizations:
. American Institute of Certified Public Accountants (AICPA)
. California Society of Certified Public Accountants (CSCPA)
. Government Finance Officers Association (GFOA)
. California Society of Municipal Finance OffICers (CSMFO)
-17-
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CIlY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Resumes of Key Engagement Personnel (continued)
Robert Memory, Engagement Quality Control Partner
Certified Public Accountant
Professional Experience
Mr, Memory has over thirty-four years of experience in public accounting having joined the firm of Rogers,
Anderson, Malady & Scott, LLP in 1972, He is currently the partner in charge of the quality control reviews of
all financial statements that are compiled, reviewed and audited by our firm, He is also in charge of planning
the firm's continuing education programs and evaluating the educational requirements of the professional
accounting staff,
Education
Bachelor of Science degree from Califomia State Polytechnic College
Certified Public Accountant - State of California
Related Professional Experience
Governrnental agencies that Mr. Memory has served include the following (*includes redevelopment
agency):
City of Calimesa
City of Grand Terrace'
City of Norco'
West Valley Water District
Crestline Lake Arrowhead Water Agency
Crestline Village Water District
East Valley Water District
San Bernardino Public Financing Authority
San Bernardino County Special Districts
City of San Jacinto'
City of Twentynine Palms'
City of San Bemardino
Mojave Water Agency
Running Springs Water District
Santa Ana Watershed Project Authority
Bighorn-Desert View Water Agency
San Gorgonio Pass Water Agency
Water Facilities Authority
Continuing Professional Education
Mr. Memory has completed over 96 hours of continuing professional education courses over the past
three years of which the following select courses are relevant to this engagement:
. American Institute of Certified Public Accountants, Govemmenfal Auditing Skills
. American Institute of Certified Public Accountants, New Financial Accounting Standards
. American Institute of Certified Public Accountants, Yellow Book Standards: 2003 revision
Professional Affiliations
Mr. Memory is a member of the following organizations:
. American Institute of Certified Public Accountants (AICPA)
. California Society of Certified Public Accountants (CSCPA)
-18-
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Resumes of Key Engagement Personnel (continued)
Scott W. Manno, Audit Manager
Certified Public Accountant
Professional Experience
Mr. Manno began his career with Thomas, Bigbie and Smith in 1995. He spent six years with the firm
primarily working on audits of municipalities, special districts and redevelopment agencies as well as
various non-profit organizations. He joined Rogers, Anderson, Malody & Scot!, llP in July 2001.
Education
Bachelor of Science degree from California State University, San Bernardino in 1996,
Certified Public Accountant - State of California
Related Professional Experience
Governmental agencies that Mr. Manno has served include the following ("includes redevelopment
agency):
City of Blythe'
City of Grand Terrace'
City of Twentynine Palms'
City of Canyon lake
Town of Yucca Valley'
City of Norco'
City of Banning'
City of Galt
Goleta Sanitary District
Elsinore Valley Municipal Water District
City of San Jacinto'
City of lake Elsinore'
lake Elsinore Public Financing Authority
City of Perris'
Perris Public Financing Authority
City of Ontario'
City of Isleton'
City of Calimesa
Ventura Regional Sanitation District
Riverside County Economic Agency
Continuing Professional Education
Mr. Manno has completed over 112 hours of continuing professional education courses over the past
three years of which the foUowing select courses are relevant to this engagement:
. American Institute of Certified Public Accountants, Governmental Accounting and Auditing Update
. Association of Government Accountants, Governmental Accounting. Financial Reporting and
Budgeting
. Government Finance Officers Association. Advanced Governmental Accounting
Professional Affiliations
Mr. Manno is a member of the following organizations:
. American Institute of Certified Public Accountants (A/CPA)
. California Society of Certified Public Accountants (CSC'PA)
. Association of Government Accountants (AGA)
. Government Finance Officers Association (GFOA)
. California Society of Municipal Finance Officers (CSMFO)
-19-
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Resumes of Key Engagement Personnel (continued)
Brad A. Welebir, Senior Accountant
Certified Public Accountant
Professional Experience
Mr. Welebir joined Rogers, Anderson, Malody & Scott, LLP in January 2004. He works primarily on audits
of govemmental agencies, small to mid-sized businesses, and non1lrofit organizations, Prior to joining
our finn, he began his career with Sam's Club where he was the operations manager. He then worked for
La Sierra Academy as an accountant.
Education
Masters of Business Administration - Accounting Emphasis from Califomia State
University, Fullerton in June 2003
Bachelor of Arts in Business Administration from La Sierra University in 1996
Certified Public Accountant - State of Califomia
Related Professional Experience
Govemmental agencies that Brad has served include the following:
City of San Jacinto
San Bemardino County Special Districts
Crestline Village Water District
Lake Elsinore & San Jacinto Watersheds Authority
Rossmoor Community Services District
Running Springs Water District
Santa Ana Watershed Project Authority
West Valley Water District
Continuing Professional Education
Mr, Welebir has completed over 112 hours of continuing professional education courses over the past
three years of which the following select courses are relevant to this engagement:
. Califomia Society of CPAs Education Foundation, Yellow Book: Government Accounting and
Auditing Update
. Califomia Society of CPAs Education Foundation, GASB 34
. Califomia Society of CPAs Education Foundation, Yellow Book: Government Auditing standards,
Applying A-133 to Governmental Organizations
. Califomia Society of CPAs Education Foundation. GASB 34: Basic Financial Statements for State
and Local Governments and Governmental Auditing Skills
Professional Affiliations
Mr. Welebir is a member of the following professional organizations:
. American Institute of Certified Public Accountants (AICPA)
. Califomia Society of Certified Public Accountants (CSCPA)
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CITY OF SAN BERNARDINO, ECONOMIC DEVELOPMENT
AGENCY AND MUNICIPAL WATER DEPARTMENT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
Resumes of Key Engagement Personnel (continued)
Anastasia P. Cortes, Senior Accountant
Professional Experience
Ms. Cortes began her career with Thomas, Bigbie and Smith in 1997, She spent four years with the firm
primarily working on audits of municipalities, special districts and redevelopment agencies as well as
various non-profit organizations, She joined Rogers, Anderson, Malody & Scoll, llP in December 2001,
Education
Bachelor of Science degree from University of California, Riverside in 1996,
Related Professional Experience
Governmental agencies that Ms, Cortes has served include the following ('includes redevelopment
agency):
City of Blythe"
City of Grand Terrace"
City of Twentynine Palms"
City of Solvang
City of Norco"
City of Gall'
City of Escondida"
City of Ontario"
City of San Jacinto"
City of lake Elsinore"
lake Elsinore Public Financing Authority
City of Perris"
Perris Public Financing Authority
Goleta Sanitary District
City of Isleton"
San Bemardino County Special Districts
Continuing Professional Education
Ms, Cortes has completed over 119 hours of continuing professional education courses over the past
three years of which the following select courses are relevant to this engagement:
. American Institute of Certified Public Accountants, Governmental Accounting and Auditing Update
. Nevada Society of Certified Public Accountants, Fraud in the Governmental and Not-far-Profit
Environments
. California Society of Municipal Finance Officers, Developing Internal Control with Limited Staff
. California Society ot Municipal Finance Officers, Latest fromGASB
-21-
A ttachment A
rUUNr"'(KS
TIMPSON GARCIA LLP
.e
l.1wrem:(' S. Tlmp~\.ln, CPA (lSQI-!974)
LcV\!"mc W. Carel.:!!, CPA tl~U4-198~)
erAS ANfl CONSULTANTS
P.\RTNERS
Dennis S. K.1n~!;hiro. CPA.
EI.lint' hoe Kawasati. CPA
WiHiolJn E. Moy, CPA
CONSULTANf
William J. Doyle. CPA
August 15,2003
F!}~," AOMINISTRATGR
Liz Oa\.js
To the Owners
Rogers, Anderson, Malody & Scot!, LLP
We have reviewed the system of quality control for the accounting and auditing practice of Rogers,
Anderson, Malody & Scott, LLP (the firm) in effect for the year ended November 30,2002. Asystem of
quality control encompasses the firm's organizational structure and the poliCies adopted and procedures
established to provide it with reasonable assurance of conforming with professional standards, The elements
of quality control are described in the Statements on Quality Control Standards issued by the American
Institute of Certified Public Accountants (AICP A), The design of the system and compliance with it are the
responsibility of the firm. Our responsibility is to express an opinion on the design of the system, and the
fillU's compliance with the system based on our review.
e
Our review was conducted in accordance with standards established by the Peer Review Board of the
AICP A. In performing our review, we obtained an understanding of the system of quality control for the
firm's accounting and auditing practice, In addition, we tested compliance with the firm's quality control
policies and procedures to the extent we considered appropriate, These tests covered the application of the
firm's policies and procedures on selected engagements, Because our review was based on selective tests, it
would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of
compliance with it.
Because there are inherent limitations in the effectiveness of any system of quality control, departures from
the system may occur and not be detected, Also, projection of any evaluation of a system of quality control
to future periods is subject to the risk that the system of quality control may become inadequate because of
changes in conditions, or because the degree of compliance with policies or procedures may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice of Rogers, Anderson,
Malody & Scott, LLP in effect for the' year ended November 30, 2002, has been designed to meet the
requirements of the quality control standards for an accounting and auditing practice established by the
AICP A and was complied with during the year then ended to provide the fillU with reasonable assurance of
confollUing with professional standards,
e
'I'~~ g~cA.., Ll'P
M~mb~rs of:
70 \,Vashington Street, Suite 300
Oakland. CA 94607-3705
510,832,2325 or 800,941,2727
Fax 510.465,2979
A .
~
~ A \\......!dwtdc Ndwotk of i~pcnd~nl Firms
and
"\CPA SEe Practice Section
\V\\'W. t i mpsonga rcic3. com
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Attachment B
, Scope of Services
The following is our understanding of the scope of the audit for each entity, as applicable, for
the year ended June 30, 2006:
We will perform a financial audit of each entity for the year ending June 30, 2006, Our
audits will be performed in accordance with auditing standards generally.accepted in the
United States of America, Govemment Auditing Standards (2003), issued by the
Comptroller General of the United States, the provisions of Office of Management and
Budget Circular A-133, Audits of State and Local Govemments and Non Profit
Organizations (if applicable), the Federal Single Audit Act as amended in 1996 (if
applicable), the provisions of Office of Management and Budget Circular A-133, Audits of
State and Local Govemments and Non Profit Organizations, Article XIIIB of the California
Constitution - Appropriations. Limit, the provisions of Guidelines for Compliance Audits of
Califomia Redevelopment Agencies, issued by California State Controllers Office and any
other applicable federal, state, local or programmatic audit requirements.
We will express an opinion(s) and issue reports on the fair presentation of the basic
financial statements in conformity with accounting principles generally accepted in the
United States of America and any other applicable federal, state, local or programmatic
audit requirements, We will also issue a Single Audit Report, if applicable, and a report on
the City's internal control over financial reporting, and a report on the City's compliance with
Article XI liB of the California State Constitution,
We will not provide an opinion on the any combining and individual fund schedules, but will
provide an "in-relationship-to' report on the schedules based on the auditing procedures
applied during the audit of the basic financial statements, We will not audit the statistical
section of the report,
If a single audit is required, we will not audit the schedule of federal expenditures, but will
provide an "in-relation-to' report on that schedule based on the auditing procedures applied
during the audit of the basic financial statements,
We will be responsible for performing certain limited procedures involving Management's
Oiscussion and Analysis (MO&A) and any Required Supplementary Information (RBI)
required by the Governmental Accounting Standards Board.
We will assist the City in meeting the requirements of the Government Finance Officers
Association and/or the California Society of Municipal Finance Officers award programs,
We will issue a separate "management letter" that includes recommendations for
improvements in internal control that are considered to be non-reportable conditions.
We will also comment separately on insurance coverage, contingent liabilities, condition of
records and other matters, if our opinion a report is warranted,
We shall make an immediate, written report of all irregularities and illegal acts or indications
.of illegal acts of which we become aware of to the City council, City manager, Finance
manager and the audit committee.
ACP CERTIFICATES
Fax:909-886-0053
Mar 29 2006 15: 30
Attachment C
P.04
ACORO_
CERTIFICATE OF LIABILITY INSURANCE
---
ctU1 Cooper ,; Price
AgQDcy IDe (Lio-0546677)
o Box 3280
San Barnardi40 CA 92413-3280
Phane:909-886-9861 Fax:909-886-2013
........,
Roaers l\nderson ~odv ,I; Soott
290 N "D" Su.et: ste 300
San B~o CA92401
COVERAGES
OP 10 QA1'Ir:C-C'C' "H,
ROGBR-2 03/29/06
CERllFI:ATE IS ISSUED AS A MATTER OFINF0RIIA1IOH
ONLY AND CONFERS NO R1GKTSUPOH THE CEJmR:ll.TE
HOLDeR. THlSCER11FICATE DOES NOT AllalD. EXTEND OIl,
AL~ lHf; COVERAGE AFIORDED BY lHf; POU::IElI aeLOW
I
WIle.
I
Q003S
!
INSURERS AFFORDlIlG COVERAGE
INSURERk
INSURER 8:
........ <>
INSURER '"
INSURER '"
ftafAal8li a.p1 . ~
Allied Insuranca
~POUCI5SOF' INSiIJRNCE IJSTB) QQ.DW JlA.VE IiIEEH ISSUfD TO THE NSUR&DtWG:>> MOvE fOftTtEI"'OUCY'PERIJO INJICATEIJ. NOl'WmISr,.tIC)WfG
N((~. i"ERN Oft CDf01lON Of' N<< c:x:Jtf"IRACTOR antEft o:taAEHTMT1f RESPECT TO MOOt nts c::E!rmP'ICATE.~YK~ OR. !
MAYPUUAIN" neJrCSllMNrCE &FRJRDB)IJYTttEPOUCES .~.,. .!t. &GiRSN IS IitJUECTlTJ All nteTERMS. EXCt.lISIJHSAtlJQJJrOI11ONSOF suot
POt.K:E1AGGREGA~lUTG JiI.4QWN MA,Y HAVE BEEN REDUCED IV PAl) Q.,M.($. .
~ 1"tK OF INSURANCC I'OUC'f _ .~ ..~~ UMnS'
~ tIMllJTY ..at llCCIJfVOfHCE Sl,qaO,OOO
B x X COUllEIlCW. GElEfW.llA8UIY ACPBP07811801147 04/01/06 04/01/07 """"'"""(&........;., . 50Q, 000
I QAJU$ """" [!J OCQJR &EDQ(p~__ pnonJ 15."00
- PERSOfCAL &NN ftRJRY . 1 cioo 000
- GfN:RALAGGAEGA're . 2 .cioo .000
~.::ri;;n= PRCXIJCI'S - COMPl'OP AGG 12 ,cI00. 000
I
~UtWllU\'Y """""""'SlIoIGlEUOMl' I I
__AUTO f&_ I
_ AJ..lOWNfl)AVTOS OOOllV OUURV . !
I- llCHEIlt<B)NJl'OS iP"......)
H1RBl1J1TOS lI00LVIrWRV ,
. I- iP"_ . i
~1J1TOS
t-
~- .
t- ""'''''''''''' I I
R=~ At/TOOM..Y - EA ACCIDENT I I
OTHER ~ EA ACe I !
.&UTO ONlY; N:;G I I
","""""",1lIUOUA UAllIUTY EAO< OCClJOAENCC 120QOOOO
e 1!]'0CCUft 0 "'-""'" M^'>E ACPCAA7811801147 04/01/06 04/01/07 ~TE 12000000
I I
Fxi::::: .
snone . I
;
WQfUCEItS ~1JON A.NO X I""",,,,,,,,, IU~ I
A ~UAIIILIJY WKNl272292 04/01/06 04/01/07 ltL EAQi ACOCEH1' 11000000
Nflrm..j,.,....p~
~EXCiJlOEo? EL.IJSOEASE"~ " . . loclillloo
~~- ELIlISEASE-I'OUC'i'UMIT 1110110900
........ I
B P~rty Section ACPBP07811801147 04/01/06 04/01/07 !
i
oeJCfIJl"lION Of QPERATION:I I lOC4noHS 1VfHtCl.fS' fXQ..USIOfG ADDED BT ENDORSEMeH1' 15PEClALPAO\n8lQH&
Contract '02-807. Certholder and its officers ~ eIlIployE!l>s, agants ,I;
"'-olunteers are add'l insd as respects qan'l Uab per PB6003, end't to be :
i.ssued cli.r9ctly from carrier; Work Camp Wai.veJ;', to be i.esued directly from
carrier . .30 day N 0 C except 10 day for non-payment of prE!llli.\llIl. ;
i
CANCELLATION
SHOULD AHrOf ltEABOVEDESaU8B) PQUaES QJ; CA.NCEu.ED ~THfaI'IRA
DATE~, lJ4EI$ClJINCIHSURQtWllEtUAVORTOMAIL *30 ~AysNtfT1Q(
-I
NOnCE 1'O'I1Ce ceR1lRCAn ~ MMED TO nre lEflllttT FAIUIAE 1'0 DO so IiIW.L
. I
IW03f: NO OBlIGATION ORlJASIlIIT OF N<< lOtIO IM"ON TIE ~ ~AGEIIIS Oft
~ATIVES.. i
CERllACA TE HOLDER
COUNsel
ThQ County of San Bernardino
a/a lnaurance Coapliance
Insurance Data Services
POBox 12010-ca
Remet CA 92546-8010
ACORD 25 (2001/08)
e ACORD CORPORAnOH 1981
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PI-ACT-1 (11-97)
Philadelphia Insurance Companies
One Bala Plaza, Suite 100. Bala CynWyd, Pennsylvania 19004
ACCOUNTANTS PROFESSIONAL LIABILITY INSURANCE
Illl Philadelphia.lndemnity Insurance Company
o Philadelphia Insurance Company
DECLARATIONS
Policy Number: PHSD170610
NOTICE: EXCEPT TO SUCH EXTENT AS MAY OTHERWISE BE PROVIDED HEREIN, THIS POLICY IS
WRITTEN ON A CLAIMS MADE BASIS AND COVERS ONLY THOSE CLAIMS FIRST MADE AGAINST THE
INSURED DURING THE POLICY PERIOD AND REPORTED IN WRITING TO THE INSURER PURSUANT TO
THE TERMS HEREIN, THE LIMIT OF LIABILITY AVAILABLE TO PAY JUDGMENTS OR SETTLEMENTS
SHAll BE REDUCED BY AMOUNTS INCURRED AS DEFENSE COSTS, PLEASE READ CAREFUllY,
Item 1,
NAMED INSURED and Address:
Rogers, Anderson, Malody & Scott, llP
290 N 0 St Ste 300
San Bernardino, CA 92401-1709
Item 2,
limits or liability:
(A) $ 2,000,000 each CLAIM, including CLAIMS EXPENSE
(B) $ 4,000,000 Annual Aggregate including CLAIMS EXPENSE
Item 3.
Deductible:
$
35,000 Deductible per CLAIM
Item 4,
POLICY PERIOD:
From: 01/01/2006 To: 01/01/2007
(12:01 A.M, local time at the address shown in Item 1,)
itemS,
Premium:
$
27,546
Item 6,
Retroactive Date:
FULL PRIOR ACTS
Endorsements: Per Schedule Attached
In witness whereof, the Insurer issuing this Policy has caused this Policy to be signed by its authorized officers,
but it shall not be valid unless also signed by the duly authorized representative of the Insurer.
o8~
Authorized Representative
Countersignature
Countersignature Date
Page 1 of 1
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Preferred Em~
INSURANCE COMPANY
Workers Compensation and Employers liability
Insurance Policy Information Page
A Slock Insur.onCe ~
Co<por.Ite Qtfices: San Diego . CA
Carrier COO.: 10900
Policy Number: WKN 127229-2
Renewal of: WKN 127229-1
FEIN: 95-2662063
1. The Insured Name & Mailing Address:
ROGERS, ANDERSON, MAlODY & SCOTI, L L P
290 NORTH D STREET Type of Entity: Limited Liability Partnershi
SUITE 300
SAN BERNARDINO, CA 92401
Other Insured NamesIWorkplaces nolshown above: See attached schedule"
2. Policy Period: This policy is effective from 04/01/06 10 04/01/07 12:01 A,M.
3. Coverage:
A, Workers Compensation Insurance: Part One on the policy applies to Workers Compensation Law
of the state(s) listed here: California
B,
Employers Liability Insurance: Part Two of the policy applies to work in each slate listed in Item 3.
The limits of our liability under Part Two are:
Bodily Injury by Accident
Bodily Injury by Disease
Bodily Injury by Disease
$ 1,000,000
$ 1,000,000
$ 1,000,000
each accident.
policy limit.
each employee,
C, Other States Insurance: Part Three of the policy applies to the states, if any, listed here:
NONE
D, Endorsements and schedules included with this policy:
PE1101, PEI102, PE1107, PEI111, PEI119, PEI126, PEI127, PEI128, PEI129, PEI201,
WC000420, PEI116 '
4. Premium: The premium for this policy will be determined by our manuals of rules, classifications, rates and
rating plans. All information required below is subject to verificationalld change by audil
See Classification and Rating Schedule
Minimum Premium: $ 950
Billing: Direct
Premium Mjustment Perio<:l: Annual with 4 mo, check
Total Estimated Policy Premium: $ 5,856
Deposit Premium: $ 879
Producer: AUSTIN COOPER & PRICE INSURANCE AGENCY
2131 ELKS ORNE, SUITE 200
SAN BERNARDINO, CA 92413
~~ l?~
(909) 886 - 9861
e Issue Dale: 02/23/06 at SAN DIEGO, CA
Authorized Representative
PEtIllO
004JQ1J98
e
A)
1)
2)
3)
4)
5)
6)
e 7)
8)
9)
10)
11 )
e
Attachment D
Audit Request List
Permanent file requests
Please prepare copies, for the Audit permanent files, of the following information
necessary for our testing.
Roster of administration and finance employees,
Roster of City coundl.
Current chart of accounts,
Authorized signature cards for all bank accounts,
Front pages of insurance policieslbonding arrangements entered or renewed and
evidence of renewal if an open-end policy,
Debt agreements (bond issues, lease agreements, loans or notes payable, etc),
including agreements between the City and any component units,
Revenue agreements (franchise, etc),
Personnel polices and procedures manuals,
Accounting policies and procedures (cash receipts, disbursements, etc),
Grant agreements with Federal, State andlor local agencies,
Contracts for deposit of monies for institutions with which the City invested in
during the year under audit.
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B)
Interim audit requests
1) Access to computer generated financial reports through the end of the month
preceding our interim testing,
2) . Access to payroll related files and reports.
3) Access to invoices, check registers and bank statements, etc.
4) Access to cash receipts and supporting reports.
5) Invoices and purchase orders for the purchase of checks or cash receipts.
6) Copy of annually adopted investment policy, induding treasurer's reports from
July 1 of the year under audit through the month proceeding our interim testing.
7) Bank reconciliation(s) through the end of the month preceding our interim testing.
8) Interest apportionment sChedule(s),
9) Preliminary schedule of federal financial assistance and documentation (FEMA,
CDBG, STP, CMAQ, etc.). I
10) Proof of publication relative to notice of the previous year's audit reports
availability if subject to the Single Audit Act.
11) State and county remittance advices and all schedules prepared relative to the
receipt and apportionment of taxes and intergovernmental revenues,
12) Trust fund activity summaries for bond funds maintained by trustee(s),
13) Schedule of new funds established or dosed during the year with appropriate
authorization or explanation.
14) Certified Franchise Statements and related remittances,
15) Additional audit reports received during the audit year, which were prepared by
other auditors based on their audit of any City fund or activity, induding any
audits conducted by the State Controller's Office or the U,S, Government
Accountability Office, if any (i.e. Gas Tax),
16) Copy of annual budget, induding supplemental budget requests for the year with
the date they were approved by council indicated, if applicable,
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C)
Year-end audit requests
1) Adjusted trial balances and cumulative detail ledgers (revenue and expense
reports, etc).
2) Listing of bank and investment balances at 06-30, including year-end asset
statements for bond funds held by trustee, with addresses, account numbers and
the name of a contact person as soon as available (please mail these to us if we
are not scheduled to be there within a short time after this becomes available).
3) Copies of bank statements for 6-30 and 7-31.
4) Year-end summary reconciliation of cash and investments to the general ledger,
including a schedule of cash by fund, Year-end reconciliation(s) of individual
bank accounts.
5) Schedule of activity for cash with fiscal agent(s),
6) PERS Circular Letter showing latest PERS actuarial valuation for miscellaneous
and safety members.
7) PERS and social security payment listing that indicates the amounts paid by the
City and the amount paid by the employees,
8)
Schedule of total wages and wages subject to PERS,
9) Resolution adopting the City's appropriation limit, as required by Government
Code Section 7910, for the year subsequent to the audit year and workpapers '
supporting the computation of both the appropriation limit and appropriations
subject to limitation, Also, proof of publication that documentation was available
for inspection 15 days before adoption of the resolution.
10) The remaining treasurer's reports for the year.
11) Detailed schedule of compensated absences at 6-30 with totals for each
employee (Le, sick, vacation, compo time).
12) Detailed schedule of reserved for encumbrances, including appropriate fund
summary, to support the general ledger balances at year-end.
13) Copies of payroll tax returns filed (i,e. 941s) during the year (3"' and 4"' quarters
20XX; 1st and 2"" quarters 20XX),
14) Detailed schedules, induding appropriate fund summaries, supporting the year-
end general ledger balances of all receivable balances.
15)
Detailed schedules, induding appropriate fund summaries, supporting the year-
end general ledger balance for all liability balances.
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C)
19)
20)
21)
22)
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24)
25)
26)
27)
28)
29)
Year-end audit requests - continued
16) Budget worksheets showing original budget, budget adjustments and ending
budget.
17)
Schedule of year-end general ledger balances, prepared in a matrix format, of the
following: a) Due to/from other funds, b) Interfund advances receivabieJpayable, c)
Transfers in/out (budgeted and actual),
18)
Detailed schedules of additions and deletions of capital assets for governmental
and business-type activities for the audit year, Showinglinduding assets sold
during the year and any depreciation expense. Also, list any assets still held by the
City but dedared as surplus property,
Schedule of changes in long-term obligations for governmental and business-type
activities for the audit year.
Detailed schedule of capital leases payable at year-end,
Number of retired employees who received post retirement benefits during the
year and the amount of such benefits,
Interest apportionment schedule(s) for the audit year.
Schedule of year-end continuing appropriations and related council approval.
Schedule of changes in undesignated fund balances for the year under audit.
A brief description of any contingencies at year-end,
Schedule of self-insurer's annual report indicating the estimated future liability of
the City,
Workers' compensation and liability loss reserve reports as of 06-30,
Schedule of events subsequent to year-end.
Explanations of the following for ea<:!1 applicable fund:
a) Expenditures in excess of appropriations for the audit year.
b) Deficit fund balances/retained eamings at year-end,
30) Annual budget for the year subsequent to the audit year.
31) Any other financial-related information which you think may be of importance to the
audit process,
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APPENDIX B
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I: PRICE FORM
(to be submitted in a sealed envelope separate from proposal documents)
REQUEST FOR PROPOSAL:
RFP F.,o7.,o2
DESCRIPTION OF WORK:
Audit Services
OFFER'S NAME/ADDRESS:
Rogers, Anderson, Malodyand Scott, LLP
290 North "0" Streel. Suite 300
San Bernardino, CA 92401
.-~
NAME OF
AUTHORIZED REPRESENTATIVE:
Terry p, Shea, Partner
~~ ;J 4l--
909;889,0871
SIGNATURE:
TELEPHONE NUMBER:
FAX NUMBER:
909,889,5361
Please provide detailed Firm Fixed Price cost information in the spaces provided below and any
other incidental or additional costs required to complete the Technical Specification requirements,
Item Description U/M Qty Unit Cost
1) Audit Services - City of San Bernardino ea $ 55,200
2) Audit Services - Economic Development Agency ea 35,000
3) Audit Services - Municipal Water Department ea 1 41,100
4) Percentage Increase for Option Year One (1) 3,00%
5) Percentage Increase for Option Year Two (2) 3.00%
6) Percentage Increase for Option Year Three (3) 3,00%
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APPENDIX C
-
April 13,2006
(Newspaper Advertisement)
SUBJECT: REQUEST FOR PROPOSALS (RFPI F"()6-21
The City of San Bernardino (City) invites proposals from qualified vendors for Audit
Services for the City, the Economic Development Agency and the Municipal Water
Department for fiscal year ending June 30, 2006 and subsequent years.
Parties interested in obtaining a copy of this RFP F-06-21 may do so via Internet at:
http;//www.sbcitv.orQ - Under "Businesses> Request for Bids> City Finance - or by
faxing their request to (909) 384-5043, attention Sheila A. Futch. Copies of the RFP
may also be obtained in person at City Hall. 300 N. "D" St.. 4th floor, San Bernardino,
CA 92418 - (909) 384-5085.
Closing Date: Proposals must be submitted at or before 3;00 PM, Thursday, May 4,
2006 at the address listed above.
Issuance of this RFP and/or receipt of proposals does not commit City to award a
contract.
Sincerely,
Sheila A. Futch
Purchasing Division
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A.
INSTRUcnONS TO OFFERORS
Examination of Proposal Docnments
1. By submitting a proposal, the Offeror represents that it has thoroughly examined
and become familiar with the work required under this RFP and that it is capable
of performing quality work to achieve the City's objectives.
2. The City reserves the right to remove from its mailing list for future RFPs, for an
undetermined period of time, the name of any Offeror for failure to accept a
contract, failure to respond to two (2) consecutive RFPs and/or unsatisfactory
performance, Please note that a "No Offer" is considered a response,
B. Al!enda
Any City changes to the requirements will be made by written addendum to this RFP.
Any written addenda issued pertaining to this RFP shall be incorporated into the terms
and conditions of any resulting Agreement. The City will not be bound to any
modifications to or deviations from the requirements set forth in this RFP as the result of
oral instruction,
Clarifications
I. Examination of Documents
Should an Offeror require clarifications of this RFP, the Offeror shall notify the
City in writing in accordance with Section D.2 below, Should it be found that the
point in question is not clearly and fully set forth, the City will issue a written
addendum clarifying the matter which will be sent to all persons who have
requested the RFP.
2. Submittinl! Reauests
a, All questions, clarifications or comments must be received by the City no
later than April 20, 2006, and be addressed as follows:
RFP Audit Services
City of San Bernardino
300 North "D" Street
4th floor, Attn: Sheila A. Futch
San Bernardino, CA 92418
b.
The exterior envelope of all requests for clarifications, questions and
comments must be clearly labeled, "Not an Offer." The City is not
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responsible for failure to respond to a request that has not been labeled as
such.
The City will also accept questions sent by facsimile machines; however,
all faxed questions must be received by the City no later than the specified
above. Send facsimile transmissions to (909) 384-5043, attention Sheila A
Futch.
c. Inquiries received after April 20, 2006 will not be accepted.
3. City Responses
Responses from the City will be communicated no later than
April 27, 2006,
D. Submission of Proposals
1. Date and Time
All proposals are to be received by 3:00 p.m" PST, May 4, 2006, Proposals
received after 3:00 p,m" PST, May 4, 2006, will be rejected by the City as non-
responSive,
2.
Address
Proposals shall be addressed as follows:
RFP Audit Services
City of San Bernardino
300 N. "D" Street
4th floor: Attn: Sheila A. Futch
San Bernardino, CA 92418.
Proposals may be delivered in person to the Finance Department, 4th floor of the
above address,
3. Identification of Proposals
Offeror shall submit a proposal package consisting of:
a) a signed original and four (4) copies of its proposal, and
b) a completed and signed Price form in a sealed envelope, separate from
the proposals, marked "Price Form",
The proposal package shall be addressed as shown above, bearing the Offeror's
name and address and clearly marked as follows:
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"RFP Audit Services"
4.
Acceptance of Proposals
a. The City reserves the right to accept or reject any and all proposals, or any
item or part thereof, or to waive any informalities or irregularities in
proposals,
b, The City reserves the right to withdraw this RFP at any time without prior
notice and the City makes no representations that any contract will be
awarded to any Offeror responding to this RFP,
c, The City reserves the right to postpone proposal opening for its own
conventence,
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CITY OF SAN BERNARDINO / ECONOMIC DEVELOPMENT AGENCY
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
Introduction
The City of San Bernardino, the Economic Development Agency, (Redevelopment Agency) and the
City Water Department are requesting proposals for audit services for the fiscal year ending June
30, 2006. Proposals for multi-year agreements extending past FY 2006 are desired and will be
considered.
The City of San Bernardino is a charter city operating under a Mayor/Council form of
Government. The City offers a full range of public services including police and fire protection,
street and landscape maintenance, refuse collection, infrastructure maintenance and community
and recreational programs as well as water supply and treatment services provided through a
special district. For FY 2005/06, the City has adopted an operating budget of $178,800.00 for
governmental funds,
The City has approximately 1179 full-time employees, and may employ up to 500 additional
part-time employees on a seasonal basis. Provided in Attachment I, is a listing of the City's
revenues and expenditures by source and function for FY 2004/05, exclusive of special
assessment districts, Comparable financial data for San Bernardino Economic Development
Agency is provided in Attachment II and the City Water Department in Attachment ill, The City
currently maintains over 60 funds, including the General Fund, 17 special revenue funds, 6 debt
service funds, 16 capital projects funds, 9 Agency funds, 1 enterprise fund and 9 internal service
funds,
The Economic Development Agency, for purposes of this audit, is comprised of and administers
the financial functions of the Redevelopment Agency, Low/Moderate 20% Housing Set-aside,
Community Development Block Grant Program, HOME Program, Emergency Shelter Program,
Neighborhood Initiative Program and special revenue programs. The Agency has 18 employees,
has a budget of approximately $60,000,000, and maintains, separately from the City of San
Bernardino's Finance Department, the financial data for eleven (11) Redevelopment Project
Areas, debt service funds, six (6) special revenue programs, the Low/Moderate 20% Housing
Set-aside program, and the federal programs as listed above.
The Municipal Water Department of the City of San Bernardino operates two enterprise funds:
the Water Utility Enterprise fund and the Sewer Utility Enterprise Fund. Operating revenues for
the two funds are estimated to be $24 million and $22 million, respectively, The Municipal
Water Department has three blended component units: the West End Water Development,
Treatment and Conservation Joint Powers Authority, The San Bernardino Public Safety authority
and the Colton/San Bernardino Regional Tertiary Treatment and Water Reclamation Authority.
The financial Statements of the Municipal Water Department are presented in a two-year
comparative format with supplementary information including detailed operating schedules. The
Municipal Water Department has approximately 200 full-time employees,
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City. Al!:encvand Water Financial Svstems
All of the City's and the Agency's major accounting fimctions (General Ledger, Budget, Cash
Receipting, Accounts Payable, Payroll, Utility Billing, Fixed Assets) are computerized using an
on-line system with most applications interactive with the General Ledger.
The following is a summary of the City's, Water's and the Agency's significant accounting
policies:
. Bases of Accountinl!: - The accounting bases used by the City of San Bernardino and the
Agency for its funds and account groups conform to generally accepted accounting principles
for governmental units, Accordingly, the governmental and fiduciary fimd types use the
modified accrual basis of accounting, i.e" revenues are recognized in the accounting period in
which they become available and measurable and expenditures are recognized in the
accounting period in which the fimd liability is incurred, if measurable, except for unmatured
interest on special assessment bonds which is recognized when due. Revenue sources that
have been treated as susceptible to accrual under the modified accrual basis are property
taxes, interest on investments, rents, special assessments and grants. All enterprise fimds
utilize the accrual basis of accounting,
.
Budl!:ets - Separate budgets are adopted annually by the Mayor and Common Council and the
Community Development Commission, All appropriations lapse at year-end. The Mayor
and Common Council and the Community Development Commission have the legal
authority to amend the budget at any time during the fiscal year, Administrative adjustments
to the City's budget are permitted up to $25,000 as long as those changes will not affect
budgeted year-end fimd balances, Expenditure and budgeting detail is maintained by the
Agency for each Redevelopment Project Area, special fimd or program and federal programs
at the line item level. Expenditure and budgeting detail is maintained by the City for each
department by fimctional area at the line item level; however, the level for which
expenditures are not to exceed budget appropriations is at the departmental level within these
basic classifications: personnel expenditures, including benefits; expenditures for materials,
supplies and other; and expenditures for capital items,
.
Enterprise Fund Property - Enterprise Fund property is recorded at cost and is depreciated on
the straight-line method over the estimated useful lives of the assets.
.
General Fixed Assets - General fixed assets purchased are recorded as expenditures in the
applicable fimd at time of purchase. Such assets are capitalized at cost in the General Fixed
Assets Account Group, Certain improvements such as roads, bridges, sidewalks, and other
similar assets are not included in the general fixed assets. Gifts or contributions are recorded
at fair value at the time received, The City and the Agency have established separate formal
fixed asset system for tracking all activity relating to fixed assets,
GASB 34 Infrastructure - The City is in the process of selecting a consultant to develop an
inventory and provide valuation for infrastructure assets as required by GASB 34, It is
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anticipated this work will be complete for inclusion in the June 30, 2006 financial statements.
Services associated with the initial review of this valuation and its inclusion in the financial
statements should be included as part of the proposed audit fee for the 2006 year.
Work Scope
The selected audit firm shall make an examination sufficient to express an opinion on the
component statement of the City, Economic Development Agency and the Municipal Water. If
the opinion on each component unit financial statement is other than unqualified, or if the auditor
is unable to form an opinion or declines to express an opinion, the result and reason for the result
should be made known as soon as possible.
In addition to reports on financial statements, the audit fumes) should submit separately to the
related component unit, its observations resulting from testing of internal controls necessary as
required by generally accepted auditing standards. If inadequacies in internal controls are
encountered, the audit firm should recommend corrections. In addition, the audit firm(s) shall
comment separately on insurance coverage, contingent liabilities, condition of records and other
matters, in their opinion, warrant a report to management ofthe component unit.
Single Audit
As each of the component units is subject to Single Audit requirements, each audit is to be
conducted in accordance with generally accepted auditing standards,' generally accepted
government auditing standards and the provisions of OMB A-B3, "Audits of State and local
Governments and Non-Profit Organizations".
The Single Audit Report will include the following:
1. Independent auditor's report on compliance and on internal control over
financial reporting based on an audit of component unit financial statements
performed in accordance with government auditing standards,
2. Independent auditor' s report on compliance with requirements applicable to
each major program, internal control over compliance in accordance
government auditing standards,
3. Schedule of expenditures of federal awards.
4, Notes to schedule of expenditUre of federal awards,
5, Schedule of findings and questioned costs.
6,
Status of prior year findings.
e Comnrehensive Annual Financial Report
In addition to the separate financial statements of each of the three component units, a
comprehensive annual financial report, based on the separate reports, will need to be prepared by
the firm auditing the City component unit financial statement In the Comprehensive Report, the
funds of the Economic Development Agency are blended with the city and the enterprise funds of
the Municipal Water Department are separately stated as a component unit.
The City has received the Certificate of Achievement Award from the GFOA for its
Comprehensive Report for fiscal year ended June 30,2004.
Proposal Content
The audit firm's proposal must contain the following information:
. Firm's philosophy regarding the relationship between audit and client.
. Experience of the firm in performing audits of local governmental general purpose financial
statements, as well as any other related experience, This section should also include a listing
of references that may be contacted regarding the firm's experience.
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. Identification of staff capabilities along with resumes of key personnel who will be assigned
to the audit.
.
Proposed time frames required to complete the various phases of the audit.
.
Projected man-hours required to complete the audit along with hourly billing rates for the
various levels of staff that will be assigned to the audit.
.
Experience in relation to redevelopment and federal program audit activities,
.
Projected man-hours required of the City and of the Agency to familiarize to the firm with the
City's and the Agency's financial systems,
.
Listing of the services, data, and information to be furnished by the City and the Agency and
by the firm.
.
Maximum fee to be charged for audit services listing separately fees for the City, Agency
and Water Department.
The City, Agency and the Water Department will enter into separate agreements with the
qualified and approved firm, The City, Agency and the Water Department reserve the right to
enter into an agreement with the same firm or with separate firms for the respective audits.
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In addition, it is requested that the firm provide the City with alternative maximum fees based on
a one-year, two-year, three-year, or five-year agreement. The fees should be broken down in
terms of identifying the City (including CAFR), the Agency and the Water Department costs,
PropOsal Evaluation and Selection
Proposals must be sealed and submitted before May 4, 2006, Although proposals may be opened
and reviewed prior to the closing date, proposals will not be disclosed to competing firms or to
the public until after the award of the contract.
Proposals will be evaluated by an Audit Review Committee based on the folIowing criteria.
. Understanding of Work Scope
. Demonstrated professional skills and credentials ofthe staff to be assigned to the audit.
. Related experience and references
. Quality of the RFP
. Approach to performing the audit
. Proposed maximum fee
The award of the contract will not be based on the lowest maximum fee proposed, but on a
combination of all of the above factors,
Based on an evaluation of the proposals using the above criteria, it is anticipated that the top
candidates will be scheduled for an interview with the Review Committee. The committees'
final recommendation will then be submitted to the City Council, Commission, and the Water
Board, who will make the final approval for the award of the contract(s). It is anticipated that the
Review Committee's recommendation will be provided to the Mayor and City Council,
Community Development Commission and Water Board at their June 5, 2006 meeting.
City, Agency and/or the Water Department reserve the right to reject any and all proposals
submitted and to request additional information from all proposers. All proposals submitted
become the property of the City of San Bernardino,
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PRICE FORM
(To be submitted in a sealed envelope separate from proposal documents)
REQUEST FOR PROPOSALS:
RFP
DESCRIPTION OF WORK:
Audit Services
OFFEROR'S NAME/ADDRESS:
NAME OF
AUTHORIZED REPRESENTATIVE
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SIGNA TORE
TELEPHONE NO.
FAX NUMBER NO.
Please provide detailed Firm Fixed Price cost information in the spaces provided below, and any
other incidental or additional costs required to complete the Technical Specification
requirements,
Item Description
UIM OW,
Unit cost
/
I)
Audit Services - City of San Bernardino
ea
1
$
2) Audit Services - Economic Development Agency ea
e 3) Audit Services - Municipal Water Department ea
4) Other Cost ea
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$
1
$
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$
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In signing this proposal, Offeror warrants that all certifications and documents requested herein
are attached and properly completed and signed,
From time to time, the City may issue one or more addenda to this RFP. Below, please indicate
all Addenda to this RFP received by your firm, and the date said Addenda was/were received.
Verification of Addenda Received
Addenda No:
Addenda No:
Received on:
Received on:
AUTHORIZED SIGNATURE:
PRINT SIGNER'S NAME AND mLE:
DATE SIGNED:
COMPANY NAME & ADDRESS:
PHONE:
FAX:
IF NOT SUBMITTING AN OFFER, PLEASE STATE REASON(S) BELOW:
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NON - COLLUSION AFFIDAVIT
TO: 1HE COMMON COUNCIL, CITY OF SAN BERNARDINO
In accordance with Title 23, United States Code, Section 112, the undersigned hereby states,
under penalty of perjwy:
That he/she has not, either directly or indirectly, entered into any agreement, participated in any
collusion, or otherwise taken action in restraint of free competitive bidding in connection with
RFP Audit Services,
Business Name
Business Address
Signature of offeror X
Place of Residence
Subscribed and sworn before me this
day of
,2006,
Notary Public in and for the County of
, State of California,
My commission expires
,20 .
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SECTION V.
GENERAL SPECIFICATIONS
~ach proposal shall be in accordance with Request for Proposals (RFP) Number F-06-19, All specifications
are minimUlll Contractors are expected to meet or exceed these specifications as ",'litten, Contractor shall attach
to proposal a complete detailed itemization and explanation for each and every deviation or variation from the
RFP specifications and requirements, Conditional proposals, or those that take exception to the RFP
specifications and requirements, may he considered non-responsive and may be rejected,
2. The City reserves the right to accept or reject any and all proposals and to a"an1 a contract to the Contractor
who best meets our requirements, This may include waiver of minor irregularities or discrepancies, or
nonconfonnity to specifications in appropriate circumstances, Purchase shall be on a best buy basis after due
consideration of all relevant factors, including but not limited to, workmanship, accessibility of parts and
service, kno,",n evidence of manufacturer's or Contractor's responsibility and record, durability and known
operational record of product and suitability as well as confonnity to City needs and requirements, In aU cases
the best interest of the City shall prevail in all contract awards,
3. The City of San Bernardino reserves the right to purchase coore or less than the quantities specified
at unit prices offered,
e 4. Proposals shall be firnl offers, subject to acceptance or rejection within 120 days of the opening thereof
5. Regular dealer. No Contractor shall be acceptable who is not a reputable manufacturer, dealer or provider of
services of such items as submitted for proposal consideration.
6. All materials, workmanship and finish entering into the construction of the equipment must be of the best of
these respcctive kinds and must conform to the charactcr of the equipment and the service for which it is
intended to be used and shall be produced by use of the current manufacturing processes, "Seconds", factory
rejects, and substandard goods are not acceptable,
7. Each Contractor shall submit with his proposal a copy of the proposed product specifications, complete detailed
drawings, and other descriptive matter in sufficient detail to clearly describe the equipment, materials. services
and parts offered,
8. Manufacturer and/or Contractor (Contractor) shall defend any and all suits and assume all liability for any and
all claims made against the City of San Bernardino, or any of its officials or agents for the use of any patented
process, device or article forming a part of equipment or any item furnished under the contract
9. Each Contractor must stale in his proposal the guaranteed delivery date of product and/or services in number of
calendar days from the date of contract execution by the City of San Bernardino. time is of the essence relative
to this contract. Contractor shall prosecute the work continuously and diligently and shall deliver the offered
items at the earliest possible date following the award of the contract.
10. Each Contractor shall list in his proposal all factory. manufacturer's and/or dealer's warranty and/or guarantee
coverage and shall submit such written documents evidencing the same attached to the proposal.
11. Contractor shall furnish and deliver to the City complete equipment and/or services as proposed and awarded,
ready for installation and fully equipped as detailed in these specifications,
12. Price shall be quotedF.O,B. San Bernardillo(all transportation charges shall be fully prepaid), and shall include
all discounts, Offer shall include California sales tax, where applicable, computed at the rate of7,50% (this will
normally be sho,",n as a separate line item on the price form),
13. City shall make payment within thirty (30) days after the complete delivery and acceptance of the specified
items by the City or San Bernardino and receipt of the Contractor's priced invoice,
_ 14. All "standard eqnipment" is included in any offer, Contractors furnishing proposals under these specifications
. shall supply all items advertised as "standard" equipment and/or services even if such items are not stipulated in
the specifications, unless otherwise clearly excepted in the proposaL
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15. The items which the Contractor proposes to furnish the City must comply in all respects with the appropriate
safety regulations of all regulatory commissions of the Federal Government and the State of California, whether
such safety features and/or items have been specifically outlined in these specifications or not.
16. Contractor delivering equipment and/or s=ices pursuant to this RFP specifications shall guarantee that
equipment and/or services trieet specifications as set forth herein, Ifit is found that equipment and/or services
delivered do not meet requirements of these specifications the Contractor shall be required to correct the same at
their own expense,
17. By submitting a bid, each Contractor agrees that in the event complete delivery is not made within the time or
times set forth pursuant to this specification, damage will be sustained by the City, and that it is, and will be
impractical and extremely difficult to ascertain the actual damage which the City will sustain in the event of and
by reason of such delay,
18. In case the delivery of the items under this contract is delayed due to strikes, injunctions, government controls,
or by reason of any cause or circumstance beyond the control of the conll'aCtor, the time for delivery may be
extended (in the City's sole discretion) by a number of days to be deternlined in each instance by mutual written
agreement between the Contractor and the Purchasing Manager of the City of San Bernardino, The City shall not
unreasonably refuse such extension,
~. Contract. Each proposal shall be submitted and received "ith the understanding that acceptance by the City of
San Bernardino of proposal in response to this solicitation shall constitute a contract between the Contractor and
the City, This shall bind the Contractor to furnish and deliver at the prices offered and in complete accordance
with all provisions of RFP No. F-06-l9, In most cases the basis of award will be the City's standard purchase
order that mayor may not incorporate this solicitation by reference.
20. Proh,bited interest. No member, officer. or employee of the City or of any agency of the City during his tenure
or for one year thereafter shall have any interest, direct or indirect in this contract or the proceeds thereof.
Fwthemlore, the parties hereto covenant and agree that to their knowledge no board member, officer or
employee of the City has any interest, whether contractual, non-contractual, financial or otherwise, in this
transaction.. or in the business of the contracting party other than the City, and that if any such interest comes to
the knowledge of either party at any time. a full and complete disclosure of all such information will be made in
writing to the other party or parties. even if such interest would not be considered a conflict of interest under
Article 4(commencing with Section 1090) or Article 4,6 (commencing with Section 1120) of Division 4 of Title
I of the Government Code of the State of California,
JI. One Docmnent. These specifications, the notice inviting proposals, RFP F-06-19, the contractor's proposal. the
written agreement executed by the parties, the purchase order and all documents relerred to in the complete
specifications and purchase order, and all modifications of said documents shall be construed together as one
docnment. Anythmg called for in anyone of said documents shall be deemed to be required equally as if called
for in alL Anything necessary to complete the work properly shall be performed by the contractor, whether
specifically set out in the contract or not. All sections of the specifications shall be read as constituting a whole
and not as an aggregation of individual parts, and whatever is specified in one section shall be construed as
applying to an sections,
22. The City of San Bernardino reserves the right to accept or reject any and all proposals,
23. Prompt payment. Each Contractor may stipulate in the proposal a percentage prompt payment discoWlt to be
taken by the City in the event the City makes payment to the Contractor within ten(IO) working days of receipt
of material and approval of invoice, For the purpose of this provision. payment is deemed to be made on the
date of mailing of the City check. NOTE: prompt payment discounts will only be used during bid
evaluation in the case of ties.
24. Inquiries, Direct all inquiries to Sheila A. Futch at9<l9-384-5085 Technical questions may be sent via fax to
9<l9-384-5043, The answers to material questions will be provided to all potential Contractors,
/:Proposal/Price forms, No proposal will be acceptable unless prices are submitted on the pricing forms furnished
herein, the Dricin!! forms are submitted in a seDarate sealed enve[oDe. and all required forms are completed and
included with proposaL Deliver all proposals, signed and sealed to the Purchasing Division, Finance Department
at 300 North "0" Street, 4'" Floor, City Hall, San Bernardino, California 92418, CLEARLY MARK THE
SPECIFICA nON TITLE Playground Equipment at Harrison Canyon Park AND NUMBER (F-06-19)
ON THE OUTSIDE OF THE ENVELOPE.
26. Time, All proposals must be received in the Purchasing Division no later than May 4, 2006, 3:00 PM, where at
sucb time and said place proposals will be publicly declJlTed and recorded, Any proposal may be withdrawn by
e
e
e
Contractor prior to the above schednled time for the opening of proposals. Any proposal received after that time
and date specified shall NOT be considered.
27. The City of San Bernardino reserves the right at its own discretion to award separate contracts for each category,
or to award nmItiple conlracts, or to award one contract for ftunishing and delivering of all equipment and/or
services in all categories,
28. Equlpment. In the purchase of equipment, Contractor shall be required to furnish one (I) OPERATORS
MANUAL and one (t) PARTS MANUAL for all equipment offered,
29. In submitting a proposal to a public purchasing body, the Contractor agrees that if the proposal is accepted, it
will assign to the purchasing body all rights, tide, and interest in and to all causes of action it may have under
Section 4 of the Clayton Act (U,S,c. See 15) or under the Cartwright Act (Chapter 2, commencing with Section
16700 of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials,
or services by the Contractor for sale to the purchasing body pursuant to the proposaL Such assignment shall be
made and become effective at the time the purchasing body tenders fmal payment to the Contractor.
30. CONTRACTOR shall indemnify, defend and hold City, its officers, employees and agents harmless from any
claim, demand, liability, suit, judgment or expense (including, without limitation, reasonable costs of defense)
arising out of or related to Contractor's perfornlance of this agreement, except that such duty to indemnify,
defend and hold harmless shall not apply where injury to person or property is caused by City's willful
misconduct or sole negligence, The costs. salary and expenses ofdle City Attorney and members ofhis office in
enforcing this Agreement on behalf of the City shall be considered as "attorney's fees" for the purposes of this
paragraph,
31. While not restricting or limiting the foregoing, during the term of this Agreement, Contractor shall maintain in
effect policies of comprehensive public, general, and automobile liability insurance, in the amount of
$1,000,000 combined single limit, and statutory worker's compensation coverage, and shall file copies ofsaid
policies with the City's Risk Manager prior to undertaking any work under this Agreement. The policies shall
name the City as an additional insured and shall provide for ten (10) day notification to the City if said policies
are temtinated or materially altered,
32. Ff.ITHFUL PERFORMA~iCE BOND or BID BOND: (not required) The Contractor will be required to furnish
a cashier's check, certified check or faithful performance bond made payable to the City of San Bernardino in an
amount equal to 100% of the proposal price to insure the contractor's faithful performance of this contract. Said
surety shall be subject to the approval of the City of San Bernardino, bonds shall be in accordance with
Ordinance No, 821, Section 2400, and the corporation issuing said bond shall have a rating in Best's most recent
insurance guide of "A" or better.
33. Written contract documents, duly authorized and signed by the appropriate authority, constitute the complete
and entire agreement(s) that may result from the RFP,
34. City may, at its discretion, exercise option year rene\\'als for up to 3 y~, in one year increments.
35. By submitting a proposal, Contractor warrants that any and all licenses and/or certifications required by law,
statute, code or ordinance in performing under the scope and specifications of tIlls RFP are currently held by
Contractor, and are valid and in full force and effect. Copies or legitimate proof of such licensure and/or
certification shall be included in Contractors proposaL Proposals Jackinl! copies andlor proof of said
licenses and/or cerlificatious mav be deemed non-responsive and OlaV be reiected.
/
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted):
Vote: Ayes \ , L
Item # ~~~ ~
~
Resolution #
Abstai~
Companion Resolutions
Cti:Ja-00b - j 1~
A~sent 5
Change to motion to am nd original documents 0
NullNoid After: days /
Resolution # On Attachments: 0
Note on Resolution of attachment stored separately: 0
PUBLISH 0
POST 0
RECORD W/COUNTY 0
By:
Date Sent to Mayor: b ~ D Ci
Date of Mayor's Signature: 1\C\ \ \){p
Date of Clerk/CDC Signature: (6'\ \ l) \ \) lD
Reso. Log Updated: .~
Seal Impressed: ~
Reso. # on Staff Report I1l
Date Memo/Letter Sent for Signature:
I" Reminder Letter Sent:
Date Returned:
2nd Reminder Letter Sent:
Not Returned: 0
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413,6429,6433,10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985,8234,655,92-389):
YesL
Yes
Yes
No
By_
By_
By_
By_
By_
Yes
Yes
NOL
~:t
No-4
Copies Distributed to:
Animal Control 0 EDA 0 Information Services 0
City Administrator 0 Facilities 0 Parks & Recreation 0
City Attorney 0 Finance 0 Police Department 0
Code Compliance 0 Fire Department 0 Public Services 0
Development Services 0 Human Resources 0 Water Department 0
Others:
Notes:
Ready to File: ~
Date:
Revised 12/18/03
CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
August 23, 2006
YOUR COPY
TO:
Wasana Chantha, Secretary
Economic Development Agency
FROM:
Sandra Medina, Assistant to the City Clerk
RE:
Transmitting Documents for Signature - Resolution No. CDC/2006-34
At the Mayor and Common Council meeting of August 7, 2006, the City of San Bernardino
adopted Resolution No. CDC/2006-34 - Resolution approving and authorizing the Executive
Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute the
Agreement for Auditing Services by and between the Agency and Rogers, Anderson, Malady and
Scott, L.L.P., to perform financial audit services for the Agency.
Attached are one (I) original amendment and two (2) duplicate original Amendment No.1.
Please obtain signatures in the appropriate locations and return the original amendment as soon
as possible, to Dodie Otterbein, Records Management Coordinator, City Clerk's Office. Please
retain one duplicate amendment for your records and forward the other duplicate amendment to
the other party.
If you have any questions, please do not hesitate to contact Dodie Otterbein at exl. 3215. Thank
you.
LIQY1C:\...' !-. (i r ')"\'1 n 'L" .\~(>\
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ISandra Medina
Assistant to the City Clerk
Si
Date:
?"" ?-L{-WO-r
Please sign and return
City of San Bernardino
ECONOMIC DEVELOPMENT AGENCY
Redevelopment. Community Development. Housing. Business: Recruitment, Retention, Revitalization. Main Street, Inc.
~
August 25, 2006
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Rogers, Anderson, Malody and Scott, L.L.P.
Attn.: Terry Shea, Partner
290 North "0" Street, Suite 300
San Bernardino, California 92401
-0
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Re: Agreement for Auditing Services
Dear Mr. Shea:
Enclosed for your records is the fully executed Agreement as referenced above that was
approved by the Community Development Commission of the City of San Bernardino on August
7,2006 (Resolution CDC/2006-34).
If ou should have any questions, I may be reached at (909) 663-1044.
Wasan A. Chantha
Executive Secretary
Enclosure
cc: Barbara Lindseth (with Original Executed Agreement)
V8iilldra Medina (with Original Executed Agreement)
File (with Copy of Original Executed Agreement)
201 North E Street, Suite 301. San Bernardino, Caiitornia 92401-1507. (909) 663-1044. Fax (909) 888-9413
www:sanbemardino-eda.org.
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