HomeMy WebLinkAboutAddendum 1 - Q and A_RFP for Professional Auditing Services 2025
CITY OF DIAMOND BAR
REQUEST FOR PROPOSALS
PROFESSIONAL AUDITING SERVICES
ADDENDUM 1: QUESTIONS & ANSWERS
1. How long have the current auditors been performing the audit for the
City? 5+ years
2. 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.
3. What is the desired timeline for:
a) Interim work – March/April
b) Fieldwork – Oct
c) Draft reports – Nov 15
d) Final Draft Due – Dec 15
4. How many auditors and how many weeks were the auditors on-site for
both interim and year-end fieldwork? Fieldwork was conducted remotely.
5. 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
6. Are there any new services requested in this RFP that were not included in
the prior year’s audit? No
7. 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
8. 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.
9. 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.
10. Were there any material adjustments made by the auditors in connection
with the prior year’s audit? No.
11. 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.
12. Have there been any new debt issuances during the current fiscal year?
No.
13. Is the City currently involved in any litigation not included in the prior
year’s financial statements? No.
14. Are there any other significant changes in the current fiscal year that may
affect the City’s operations? No.
15. 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.
16. Were there any aspects of the prior audit that were particularly
cumbersome or areas where you would like to see more efficiency?
• n/a
17. Will digital proposals be accepted in lieu of hard copies?
• no
18. What is the reason that you are considering changing the auditor?
• Contract expiration
19. Will your prior auditors be invited to bid? yes
20. How many staff did the audit team consist of in the past and when did the
auditors come on site? n/a
21. Have there been any changes in your accounting system or software
since last year? no
22. Do you expect to have any retirement or replacement of key employees?
no
23. How many weeks/hours were spent by the prior auditors in the field?
unknown
24. When did fieldworks take place? March/April
25. How many hours did the auditor estimate would be required for your most
recent audit year? Unknown
26. 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
27. When will a closed trial balance be available for the audit with all closing
entries recorded? Early/Mid-October
28. Is there anything specific that you are looking for with the successor
auditors? No.
29. What are the things you liked and did not like about your current auditors?
n/a
30. What are the things you liked and did not like in the audit process
followed by your current auditors? n/a
31. Do you expect to have a single audit this year? yes
32. How many major programs did you have last year? 1
33. How much were the total federal expenditures last year? $822,000
34. When does the City wish to issue its FY 2025-26 ACFR? Mid-December
35. 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.
36. Is the auditor also expected to perform a Gann Appropriations Limit
Agreed-Upon Procedures engagement? Yes, see RFP.
37. Would the City be open to having the majority of the audit being
performed remotely? Yes
38. 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.
39. Are the majority of supporting documentation maintained electronically
(e.g. PDF), such as checks, vendor invoices, cash receipts, timecards,
personnel files. Yes.
40. Do you permit your external auditors to access the City’s financial
software remotely? Yes