Request for Proposal for Audit Services 2023-03City of Rosemead, CA
REQUEST FOR PROPOSAL NO. 2023‐03
REQUEST FOR PROPOSAL FOR PROFESSIONAL AUDIT SERVICES
SUBMITTALS:
Electronic proposal submittal through the
City of Rosemead Vendor Portal hosted by PlanetBids at:
https://pbsystem.planetbids.com/portal/54150/portal‐home
Proposals submitted through PlanetBids Vendor Portal shall be submitted
no later than Monday, March 27, 2023, at 10:30 a.m PST.
CONTACT PERSON:
Bryan Chua, Director of Finance
City of Rosemead
8838 E. Valley Boulevard
Rosemead, California 91770
(626) 569‐2146
PROPOSALS RECEIVED AFTER THE TIME AND DATE STATED ABOVE SHALL NOT BE
CONSIDERED. FACSIMILE AND E‐MAIL PROPOSAL WILL NOT BE ACCEPTED.
INQUIRIES: All questions, technical, commercial, or contractual in nature shall be directed to the
Q&A section on the e‐Procurement System, PlanetBids. All questions regarding this RFP must be
submitted through PlanetBids no later than 2:00 PM PST, March 20, 2023.
MODIFICATIONS: Any modification to this Request for Proposal will be provided to vendors
who request notification of any modifications.
ISSUANCE DATE: March 7, 2023
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I. INTRODUCTION
A. General Information
The City of Rosemead (“City”) will receive electronic proposals only for qualified certified
public accounting firm to provide professional audit services, no later than 10:30 AM on
Monday, March 27, 2023. Proposals shall be valid for 180 calendar days after the
submission deadline.
The City of Rosemead (City) invites proposals from qualified certified public accounting
firms to perform its annual independent audit for the fiscal years ending June 30, 2023
through June 30, 2025 with the option of extending the engagement for an additional two
years. These audits are to be performed in accordance with generally accepted auditing
standards, the standards set forth for financial audits in the Government Auditing
Standards as issued by the Comptroller General of the United States, the provisions of the
federal Single Audit Act and the U.S. Office of Management and Budget (OMB) Circular A‐
133, Audits of State and Local Governments and Non‐Profit Organizations.
Each proposal shall specify completely each and every item as set forth in these
specifications. Any and all exceptions to the original specifications must be clearly stated
in the proposal and the failure to set forth any exception shall be grounds for rejection of
the proposal. The City reserves the right to reject any and all proposals and to waive any
informalities in any proposal and select the proposal that best meets the City's needs.
A contract shall be awarded, if at all, to the qualified consultant(s) whose competitive
proposals are responsive to this RFP and are in the best interest of the City as determined
by the City, a determination to be made solely by the City upon criteria as determined
and weighed by the City. The decision of the City shall be final. In its discretion, the City
may reject any proposal, abandon the purchase, or re‐advertise. The contract will begin
when awarded by the City Council.
B. Scope of Services
The City desires the auditor to express an opinion on the fair presentation of its basic
financial statements based on their audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller of the United
States. The City also desires the auditor to apply limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in
the United States of America.
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The project scope of work includes performing an audit of the City’s financial statements
for the fiscal years ending June 30, 2023, 2024, 2025 with an option to extend the term
for two (2) additional years for a maximum of 5 years. These audits are to be performed
in accordance with the standards set forth for financial audits by the Governmental
Accounting Standards Board (GASB), in the General Accounting Office (GAO),
Governmental Auditing Standards, the U.S. Office of Management and Budget (OMB)
Circular A‐133, Audits of State and Local Governments and Non‐Profit Organizations and
the provisions of the Single Audit Act, as amended.
The City of Rosemead has participated in the Government Finance Officers Association
(GFOA) Certificate of Achievement Award for Excellence in Financial Reporting last year.
It is anticipated that the City will continue to participate in these programs. The City will
be responsible for preparing the introductory section, management discussion and
analysis, and statistical sections of the Annual Comprehensive Financial Report (ACFR).
The auditor shall prepare the City's ACFR and include an opinion in that report regarding
the City's basic financial statements and supplemental financial schedules. It is
anticipated that the auditor will provide assistance in meeting the requirements of these
programs. The auditor will also prepare a separate Financial and Compliance Report for
the Rosemead Housing Development Corporation and include an opinion in that report
regarding the basic financial statements. The auditor will also prepare a tax return for the
Rosemead Housing Development Corporation.
The City also complies with OMB Circular A‐133, Audit of State of Local Governments,
which requires an audit be made by an independent auditor in accordance with generally
accepted government auditing standards covering financial and compliance audits. The
audit must cover the entire operations of the City including the Successor Agency to the
Rosemead Redevelopment Agency and must determine whether: (1) the financial
statements present fairly its financial operations in accordance with GAAP, (2) the
organization has internal accounting and other control systems to provide reasonable
assurance that it is managing Federal financial assistance programs in compliance with
applicable laws and regulations and (3) the organization has complied with laws and
regulations that may have material effect on its financial statements and on each major
Federal Assistance program.
Other report that the auditors will be preparing is the State Controller’s Report for the
City of Rosemead.
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Following the completion of the audit of the fiscal year’s financial statements, the auditor
shall issue:
1. A report on the fair presentation of the financial statements in conformity with
generally accepted accounting principles.
2. A report on the internal control structure based on the auditor’s understanding of
the control structure and assessment of control risk.
3. A report on procedures applied to appropriations limit worksheets.
4. A report on compliance with requirements applicable to each major program,
internal control over compliance and on the schedule of expenditures of federal
awards in accordance with OMB Circular A‐133.
5. Any other reports not stated herein but which may be required by the Comptroller
General, Government Auditing Standards or U.S. Office of Management and
Budget regarding single audits.
6. In the required report(s) on internal controls, the auditor shall communicate any
reportable conditions found during the audit. A reportable condition shall be
defined as a significant deficiency in the design or operation of the internal control
structure, which could adversely affect the organization’s ability to record,
process, summarize, and report financial data consistent with the assertions of
management in the financial statements. Reportable conditions that are also
material weaknesses shall be identified as such in the report.
7. Non‐reportable conditions discovered by the auditors shall be reported in a
separate letter to management, which shall be referred to in the report(s) on
internal controls.
Management is not aware of any unusual circumstances warranting an extended scope
beyond that called for above. If in due course of the examination and it is warranted, the
auditor shall agree to provide the City with all ascertainable facts relative to such
circumstances. An estimate of additional services will be required and the additional cost
shall be provided, so contract modifications may be completed before you commence
with such extended examination.
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C. Deliverables
The independent auditing firm shall provide a final electronic pdf version of the ACFR to
the Finance Department on or before December 15th of each year. Additionally the
independent auditing firm shall provide electronic pdf versions of such documents,
including GANN Limit, Management Letter, State Controller’s Report, and Single Audit
Report. The due dates for the final electronic pdf version of the documents are as follows:
1. Annual Comprehensive Financial Report (ACFR) – December 15th
2. Housing Development Corporation Financial Report – December 15th
3. State Controller’s Report – January 15th
4. Housing Corporation Tax Return – March 1st
5. Single Audit Report – March 1st
D. Information Requested from the Proposer
To achieve a uniform review process and obtain the maximum degree of comparability,
it is required that proposals be organized in the manner specified below:
1. Title Page
a) Show the RFP reference number (RFP 2023‐03), RFP subject,
the name of the proposer firm, local address, telephone
number, name of contact person and date.
2. Table of Contents
b) Clearly identify the material by section and page number.
3. Letter of Transmittal (limit of one or two pages)
a) Briefly state the proposer's understanding of the work to be
done and make a positive commitment to perform the work
within the time period.
b) Give the names of the persons who will be authorized to make
representations for the proposer, their titles, addresses and
telephone numbers.
4. Profiles of the Proposer
a) State whether the firm is national or international.
b) Give the location of the office from which the work is to be
done and the number of partners, managers, supervisors,
seniors and other professional staff employed at the office.
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c) Describe the range of activities performed by the local office
such as: audit, accounting, tax service or management services.
d) Describe the local office's computer capability.
e) Describe the firm's participation in the "peer review" program.
Provide the date and extent of the local office's last
participation.
5. Summary of Proposer's Qualifications (in addition to minimum qualifications).
a) Identify the partners, seniors, managers, and supervisors who
will work on the audit, including staff from other than the local
office. Include the resumes for each supervisory person to be
assigned to the audit. The resumes may be included as an
appendix.
b) Describe recent auditing experience similar to the type of audit
requested. Specifically, address experience related to the audit
of:
i. Municipalities complying with OMB Circular A‐133.
ii. Federal and State Grant programs.
c) Describe the engagement team experience and capabilities to
assist government bond reporting requirements.
d) Describe the professional activities of your firm or of the staff
members who support your commitment to governmental
accounting.
e) Describe any regulatory action taken against your firm or local
office.
f) Give names, addresses and telephone numbers of five current
and former municipal audit clients served by your local office
within the past five years. Include the type of services
performed, dates and length of service for each.
E. Scope Section
Clearly describe the scope of the required services to be provided. In addition to services
included for the examination, specific reference must be made to the requirements of
OMB Circular A‐133.
The auditors shall familiarize themselves with and comply with the provision of any and
all federal, state and county orders, statutes, ordinances, charters, bond covenants,
administrative code and orders, rules and regulations that pertain to the work required
in the engagement.
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F. Submittal of Cost File
Submit one digital copy within PlanetBids eProcurement system under the Cost File tab
with the following information:
1. Total All‐Inclusive Maximum Price
The Cost File should contain all pricing information relative to performing the audit
engagement as described in this request for proposals. The total all‐inclusive maximum
price to be bid is to contain all direct and indirect costs, including all out‐of‐pocket
expenses.
The City requests that the not‐to‐exceed fee be provided for all services requested and
proposed. The maximum annual fee will remain fixed for the three years covered by the
audit engagement agreement.
The City will not be responsible for expenses incurred in preparing and submitting the
Technical Proposal or the Cost File. Such costs should not be included in the proposal.
The first page of the Cost File should include the following information:
a. Name of firm.
b. Certification that the person signing the proposal is entitled to represent
the Firm, empowered to submit the bid, and authorized to sign a contract
with the City.
c. The audit proposal must include a cost breakdown, in the following format.
The annual fee for the audit of each fiscal year 2022‐2023, 2023‐2024, and
2024‐ 2025 shall not exceed the following:
2022/23 2023/24 2024/25
City of Rosemead ACFR Audit
Successor Agency Audit
Housing Corp. Audit
Housing Corp. Tax Return
Single Audit Report
State Controller's Report
Appropriations Limit AUP*
Gann Limit Review
*Agreed Upon Procedure
Include percentage modification for the fourth and fifth year, if extended.
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2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours
Anticipated for each. The second page of the Cost File should include a
schedule of professional fees and expenses, which supports the total all‐
inclusive maximum price.
G. Instructions for Submission of Proposal
1. Registering as a Vendor: Proponents must be registered as a vendor with the City to
download the RFP document(s) and to submit a proposal. If not already registered,
Proponents may “Register As A Vendor” via the City’s website:
https://pbsystem.planetbids.com/portal/54150/portal‐home
2. It is the Proponent’s sole responsibility to contact the City’s online bid management
provider (PlanetBids at 818‐992‐1771) to resolve any technical issues related to electronic
bidding, including (but not limited to) registering as a vendor, updating passwords,
updating profiles, uploading/downloading documents, submitting an electronic
bid/proposal, etc.
3. Submittal of Proposal and Fee Schedule: It is the responsibility of the Proponent to
ensure the proposal is delivered on time. Any proposal received after the deadline will be
disqualified and will not be considered. Proposals sent via facsimile will not be accepted.
Documents must be uploaded in PDF format. It is the Proponent’s responsibility to ensure
their proposal documents are properly uploaded onto the City’s online bid management
system. Proposals that are missing pages, cannot be opened, etc. may be considered
unresponsive. Hard copies submitted to the City, in lieu of electronic copies uploaded
onto the system, will not be accepted as a viable proposal. If Proponent has difficulty
uploading their response(s) to the PlanetBids system, they shall be solely responsible for
contacting PlanetBids at 818‐992‐1771 for assistance. The City does not have the
capability to assist with uploading Proponent documents.
4. Examination of the Content of the RFP: By submitting a proposal, the Proponent
represents that it has thoroughly examined and become familiar with the contents of the
RFP and that it is capable of performing quality work to achieve the City objectives. The
submission of a signed proposal shall be considered an agreement to all the terms,
conditions, and specifications provided in the RFP.
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H. Evaluation of Proposals
Proposals will be evaluated by City Staff to ascertain which proposer best meets the need
of the City. Factors to be considered are:
1) The proposal's responsiveness in clearly stating the understanding of the work
to be performed.
2) The firm’s technical support.
3) The audit team's experience and professional activities and independence.
4) The firm's size and structure.
5) The anticipated support requirements of City staff showing personnel class
and hours expected.
6) Although a significant factor, the audit fee may not be the dominant factor.
Cost will be a particularly important factor when all other evaluating criteria
are relatively equal.
Oral interviews may be arranged anytime during the selection process to assist in making
the final decision.
The City reserves the right to select a firm on any combination of price, experience in
auditing governmental agencies, references and other features that are deemed to be in
the best interests of the City. All factors will be considered in the selection process.
I. Additional Information and Contact
1) The City will not be liable for any costs not included in the proposal and
subsequent contracted‐for costs.
2) The City reserves the right to conduct personal interviews of any or all proposers
prior to selection.
3) The City reserves the right to reject any and all proposals, the right in its sole
discretion to accept the proposal it considers most favorable to the City's interest
and the right to waive minor irregularities in the procedures.
4) The contracting firm shall make itself available to the City Council and
management to answer questions related to audit findings.
5) Compensation for the conduct of audit service will be paid upon submission of
progress billings and of a final billing, along with the required reports.
6) The successful proposer will be required to sign the standard City Professional
Services Agreement, including meeting the City's minimum insurance
requirements, and obtain a business license.
7) City staff requests that, once proposals have been submitted, no unsolicited
contact and/or discussions concerning these proposals be made prior to the
evaluation of all proposals.
8) The total audit staffing should be at a level sufficient to complete the audit in the
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time scheduled and specified in the RFP. In addition, the audit staff should remain
constant through each year's audit process. At least one staff member from the
prior year's audit is to be a member of the subsequent year's audit team.
All questions, technical, commercial, or contractual in nature shall be directed to the Q&A
section on the e‐Procurement System, PlanetBids. All questions regarding this RFP must
be submitted through PlanetBids no later than 2:00 PM, March 20, 2023.
J. Working Paper Retention
All working papers and reports must be retained at the auditor’s expense for a minimum
of seven (7) years, unless the firm is notified in writing by the City of the need to extend
the retention period. The auditor will be required to make working papers available to
the City. In addition, the firm shall respond to the reasonable inquiries of successor
auditors and allow successor auditors to review working papers relating to matters of
continuing accounting significance.
II. DESCRIPTION OF THE GOVERNMENT
A. Background Information
Rosemead is a General Law city which operates under a Council‐Manager form of
municipal government. The City Council consists of five members elected at large
for overlapping four‐year terms. The Mayor is selected from the City Council
members and serves a one‐year term. The City Council appoints the City Manager,
City Attorney and City Clerk. In addition, the City Council appoints the members of
all advisory Commissions, Boards and Committees. The City Council also acts as the
Board of Directors of the Rosemead Housing Development Corporation. The City
occupies a land area of 5.2 square miles and serves a population of more than 50,000.
The City is a contract city, contracting out services such as police, City Attorney,
sanitation, tree maintenance, building and safety, and information technology. Fire
prevention and fire suppression services are provided by Los Angeles County.
With a total fiscal year 2022‐2023 operating budget of $43.3 million, including a
General Fund expenditure budget of $27.7 million, the City employs a workforce of
70 full‐time employees. The City’s fiscal year begins on July 1st and ends on June 30th.
City Hall is located at 8838 E Valley Blvd, Rosemead, CA 91770. The telephone number
is 626‐569‐2100. The City’s website address is https://www.cityofrosemead.org/.
The City also has two blended component units: 1) the Rosemead Financing Authority
(the Authority) and 2) the Rosemead Housing Development Corporation (RHDC). The
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City of Rosemead also provides a full range of services, including recreational activities
and cultural events.
B. Fund Structure
Government Funds
General Fund 1
Special Revenue Fund 21
Capital Project Fund 1
Total Government Funds 23
Business Type Funds
Internal Service Funds 2
Total Business Type Funds 2
Fiduciary Funds
Trust Fund 1
Total Fiduciary Funds 1
TOTAL FUNDS 26
C. Pension Plans
The City participates in the State of California Public Employees Retirement System
(CalPERS), a cost‐sharing multiple‐employer public employee defined pension plan.
The City has Miscellaneous contracts for Classic and PEPRA members.
D. Computer Systems/Financial Software
The City uses Tyler Incode software for its financial systems.