HomeMy WebLinkAboutAddendum 1 - Q&A_RFP for Professional Auditing Services 2025How long have the current auditors been performing the audit for the City? 5+ years
If a member of our team has prior experience conducting financial statement audits with another firm, would this satisfy the firm experience requirement? Yes if experience was relevant.
What is the desired timeline for:
Interim work – March/April
Fieldwork – Oct
Draft reports – Nov 15
Final Draft Due – Dec 15
How many auditors and how many weeks were the auditors on-site for both interim and year-end fieldwork? Fieldwork was conducted remotely.
What was the prior year’s annual audit fee? Please provide a breakdown by report, if available.
Interim Fieldwork + Financial Statement Audit & ACFR Report for Year-ending 6/30/24: $31,232
Single Audit: $4,637
State Controller Report Year ending 6/30/24: $3,810
FY 21-23 (3-year) Safe, Clean Water Program Audit $20,000
Are there any new services requested in this RFP that were not included in the prior year’s audit? No
If applicable, who is responsible for preparing and submitting the State Controller’s Financial Transactions Report? If completed by the auditors, what were the fees last year? See above
How many major programs were tested for the Single Audit in recent years? If applicable, could you please provide the most recent report? Our only ongoing program is CDBG.
How many journal entries were proposed by the auditors? Were there any findings? City had one finding for the Single Audit related to non-
compliance with our program requirements to provide ongoing Home Improvement Loan monitoring which was not being performed by Community Development Department per CDBG policy. Remediations
are underway. See Exhibits 1 & 2.
Were there any material adjustments made by the auditors in connection with the prior year’s audit? No.
Has the City entered into any major contracts, studies, or new projects in the current fiscal year that would not be reflected in the prior year’s financial statements? No.
Have there been any new debt issuances during the current fiscal year? No.
Is the City currently involved in any litigation not included in the prior year’s financial statements? No.
Are there any other significant changes in the current fiscal year that may affect the City’s operations? No.
How does the City evaluate the quality and effectiveness of its audit services?
The City evaluates the quality and effectiveness of its audit services through several measures:
Audit Deliverables and Timeliness – We assess whether the audit is completed in accordance with the agreed-upon timeline, including timely issuance of draft and final reports and responsiveness
to City staff throughout the process.
Technical Quality and Compliance – We review the thoroughness of the auditor’s testing procedures, adherence to generally accepted auditing standards (GAAS) and Government Auditing Standards,
and the accuracy and clarity of the resulting Annual Comprehensive Financial Report (ACFR) and other required reports.
Communication and Professionalism – We evaluate the auditor’s ability to communicate findings clearly and constructively, including presentations to City Council and the Audit Committee,
as well as their responsiveness to questions from management and staff.
Value and Insight – Beyond compliance, we consider whether the auditor provides useful recommendations that improve internal controls, strengthen financial reporting practices, and enhance
operational efficiency.
Follow-Up on Prior Findings – We monitor how effectively the auditor tracks and verifies the implementation of corrective actions from prior year findings or recommendations.
Overall, the City’s goal is to ensure that the audit not only meets professional standards but also supports the City’s commitment to transparency, accountability, and continuous improvement
in financial management.
Were there any aspects of the prior audit that were particularly cumbersome or areas where you would like to see more efficiency?
n/a
Will digital proposals be accepted in lieu of hard copies?
no
What is the reason that you are considering changing the auditor?
Contract expiration
Will your prior auditors be invited to bid? yes
How many staff did the audit team consist of in the past and when did the auditors come on site? n/a
Have there been any changes in your accounting system or software since last year? no
Do you expect to have any retirement or replacement of key employees? no
How many weeks/hours were spent by the prior auditors in the field? unknown
When did fieldworks take place? March/April
How many hours did the auditor estimate would be required for your most recent audit year? Unknown
What is the current year budget for auditing services?
FY 24/25 FS Statements: $32,170
FY 24/25 Single Audit: $4,776
State Controller’s Report: $3,924
3-year Safe, Clean Water Program: N/A
When will a closed trial balance be available for the audit with all closing entries recorded? Early/Mid-October
Is there anything specific that you are looking for with the successor auditors? No.
What are the things you liked and did not like about your current auditors? n/a
What are the things you liked and did not like in the audit process followed by your current auditors? n/a
Do you expect to have a single audit this year? yes
How many major programs did you have last year? 1
How much were the total federal expenditures last year? $822,000
When does the City wish to issue its FY 2025-26 ACFR? Mid-December
The RFP indicates a Safe and Clean Water Program Audit is required for FY2023-24 however the contract term described in the RFP appears to begin in FY 2025-26. Could you please verify
whether the FY 2023-24 Safe and Clean Water Program audit is included in the scope? This is a 3-year program audit that will include FYs 23/24, 24/25, and 25/26. The program audit is
included in the scope as it will take place in 2026/27.
Is the auditor also expected to perform a Gann Appropriations Limit Agreed-Upon Procedures engagement? Yes, see RFP.
Would the City be open to having the majority of the audit being performed remotely? Yes
What was the City’s experience with remote auditing? Would you suggest any changes? To minimize the administrative burden on City staff, the Finance Department expects the selected audit
firm to independently access financial data to the extent possible. The City will provide remote access to its financial ERP system, Tyler Munis, to facilitate this process. Accordingly,
proficiency and prior experience with Tyler Munis are preferred.
Are the majority of supporting documentation maintained electronically (e.g. PDF), such as checks, vendor invoices, cash receipts, timecards, personnel files. Yes.
Do you permit your external auditors to access the City’s financial software remotely? Yes