Bakersfield City Council
May 13, 2026

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AGREEMENT NO. ___________________

INDEPENDENT CONTRACTOR'S AGREEMENT

This INDEPENDENT CONTRACTOR’S AGREEMENT (“Agreement”) is made and entered into on _______________________, by and between the CITY OF BAKERSFIELD, a municipal corporation (referred to herein as “CITY”), and LSL, Limited Liability Partnership, licensed in California (referred to herein as “CONTRACTOR”).

R E C I T A L S

WHEREAS, the CITY issued a Request of Proposals in March 2026 and CONTRACTOR submitted a proposal concerning a full scope annual audit; and

WHEREAS, CONTRACTOR represents that CONTRACTOR is experienced, well qualified and a specialist in the field of audit services; and

WHEREAS, the CITY’S audit proposal contemplated a three-year term beginning with the 2024-25 fiscal year, subject to annual review and satisfactory negotiation of terms (including a price acceptable to both the CITY and the selected firm); and

WHEREAS, CONTRACTOR is required and does currently have errors and omissions insurance which will protect the City of Bakersfield in the event of professional errors or omissions by the CONTRACTOR; and

WHEREAS, Section 41 of the CITY Charter requires the Council to employ a certified public accountant to conduct an annual audit, and the CITY does not have expertise currently on staff to conduct such large-scale audits; and

WHEREAS, CONTRACTOR is aware that information may come into CONTRACTOR’s possession which may impact the CITY’s legal position in the event such information was released to outside parties; and

WHEREAS, CITY desires to employ CONTRACTOR to perform a full scope annual audit of the CITY for the 2024-25 fiscal year ended June 30, 2025 (year 1 of 3), as set forth herein; and

NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and CONTRACTOR mutually agree as follows:

1. SCOPE OF WORK . In exchange for the Compensation (defined below), CONTRACTOR shall perform the following: performance of a full scope annual audit. The scope of work shall include all item s contained in Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

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CONTRACTOR’s Technical Proposal, Cost Proposal, and CITY’s Request for Proposals, marked as Exhibit “A”, Exhibit “B”, and Exhibit “C” respectively, and attached hereto and incorporated by reference as though fully set forth herein. CON TRACTOR’s services will include all the procedures necessary to properly complete the task CONTRACTOR has been hired to perform, whether specifically included in the scope of work or not Nothing in this Agreement shall be construed to require the CONTRACTOR to perform management functions, make management decisions, or assume responsibility for the CITY’S internal controls or financial records, consistent with GAGAS independence requirements . Additionally, nothing in this agreement shall limit the CONTRACTOR’S responsibility to report audit findings in accordance with GAGAS.

2. COMPENSATION/PAYMENT PROCEDURE . Subject to the conditions of this section, CITY will pay CONTRACTOR as follows for performing the Scope of Work. Compensation for all work, services or products called for under this Agreement shall consist of a total payment of ONE HUNDRED SIX THOUSAND SIX HUNDRED THIRTY DOLLARS ($106,630) which shall be paid as follows: in increments as set forth herein and upon completion to the satisfaction of the CITY, of those items described in CONTRACTORS’s proposal.

2.1 At the completion of each of the items, all documents shall have been completed by CONTRACTOR, and shall be submitted to CITY by CONTRACTOR. Three (3) copies of each document shall be included in the compensation set forth herein. Upon the review and approval of CITY staff of the CONTRACTOR’s work and submission of an invoice as set forth herein, the sums stated above shall be paid.

2.2 The compensation set forth in this section shall be the total compensation under this Agreement including, but not limited to, all out - of-pocket costs and taxes. CITY shall pay only the compensation listed unless otherwise agreed to in writing by the parties.

CITY will pay CONTRACTOR within 30 days after CONTRACTOR submits an itemized invoice for the portions of the Scope of Work completed and that invoice is approved by CITY. The Compensation will be the total amount paid to CONTRACTOR for performing the Scope of Work and includes, but is not limited to, all out-of-pocket costs and taxes. CITY will pay no other compensation to CONTRACTOR . In no case will CITY compensate CONTRACTOR more than $ 102,500 for performing the Scope of Work .

CONTRACTOR shall not bill more than 90% of the contract price for the Scope of Work as work progresses. The final 10% of the contract price shall be invoiced and payable upon delivery of the firm’s final reports that meet the requirements of the agreed Scope of Work and applicable auditing standards.

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3. TERM. Unless terminated sooner, as set forth herein, this Agreement shall terminate on April 30, 2028.

4. TERMINATION. Either party may terminate t his Agreement after giving the other party written notice, as provided herein, ten days before the termination is effective.

5. ACCOUNTING RECORDS . CONTRACTOR shall maintain accurate accounting records and other written documentation pertaining to all costs incurred in performance of this Agreement. Such accounting and contract payment records and documentation shall be kept at CONTRACTOR's office during the term of this Agreement, and for a period of three (3) years from the date of the final payment hereunder, and made available to CITY representatives upon request at any time during regular business hours. Access to CONTRACTOR’S records shall be l imited to accounting records, and not records of CONTRACTOR’S audit decisions or judgments (working papers), unless professional standards allow for such access by appropriate parties.

6. ASSIGNMENT. Neither this Agreement nor any rights, interests, duties, liabilities, obligations or responsibilities arising out of, concerning or related in any way to this Agreement (including, but not limited to, accounts, actions, causes of action, claims, damages, demands, liab ilities, losses, obligations, or reckonings of any kind or nature whatsoever, for compensatory or exemplary and punitive damages, or declaratory, equitable or injunctive relief, whether based on contract, equity, tort or other theories of recovery provided for by the common or statutory law) may be assigned or transferred by any party. Any such assignment is prohibited, and shall be unenforceable and otherwise null and void without the need for further action by the non-assigning party or parties.

7. BINDING EFFECT. The rights and obligations of this Agreement shall inure to the benefit of, and be binding upon, the parties to the Agreement and their heirs, administrators, executors, personal representatives, successors and assigns.

8. COMPLIANCE WITH ALL LAWS . CONTRACTOR shall, at CONTRACTOR ’s sole cost, comply with all of the requirements of municipal, state, and federal authorities now in force, or which may hereafter be in force, pertaining to this Agreement, and shall faithfully observe in all activities relating to or growing out of this Agreement all municipal ordinances and state and federal statutes, rules or regulations, and permitting requirements now in force or which may hereafter be in force including, without limitation, obtaining a City of Bakersfield business tax certificate (Bakersfield Municipal Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

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Code Chapter 5.02) where required.

9. CORPORATE AUTHORITY. Each individual signing this Agreement on behalf of entities represent s and warrant s that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement.

10. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be considered as an original and be effective as such.

11. DIRECTION. CONTRACTOR retains the right to control or direct the manner in which the services described herein are performed.

12. EQUIPMENT. CONTRACTOR will supply all equipment, tools, materials and supplies necessary to perform the services under this Agreement.

13. EXECUTION. This Agreement is effective upon the date first written above and is the product of negotiation and all parties are equally responsible for authorship of this Agreement. Section 1654 of the California Civil Code shall not apply to the interpretation of this Agreement.

14. EXHIBITS. In the event of a conflict between the terms, conditions or specifications set forth in this Agreement and those in exhibits attached hereto, the terms, conditions, or specifications set forth in this Agreement shall prevail. All exhibits to which referen ce is made in this Agreement are deemed incorporated in this Agreement, whether or not actually attached.

15. FURTHER ASSURANCES. Each party shall execute and deliver such papers, documents, and instruments, and perform such acts as are necessary or appropriate, to implement the terms of this Agreement and the intent of the parties to this Agreement.

16. GOVERNING LAW. The laws of the State of California will govern the validity of this Agreement and its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Kern County, California.

17. INCLUDED DOCUMENTS. Any bid documents, including, without limitation, special provisions and standard specifications and any Request for Proposals, Request for Qualifications and responses thereto relating to this Agreement are incorporated by reference as though fully set forth herein.

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18. INDEMNITY. CONTRACTOR shall indemnify, defend, and hold harmless CITY and CITY’s officers, agents and employees against any and all liability, claims, actions, causes of action or demands whatsoever against them, or any of them, before administrative or judicial tribunals of any kind whatsoever, arising out of, connected with, or caused by CONTRACTOR or CONTRACTOR’s employees, agents, independent contractors, companies, or subcontractors in the performance of, or in any way arising from, the terms and provisions of this Agreement whether or not caused in part by a party indemnified hereunder, except for CITY’s sole active negligence or willful misconduct, including management’s representations and decisions.

19. INDEPENDENT CONTRACTOR . This Agreement calls for CONTRACTOR’s performance of the Scope of Work as an independent contractor.

CONTRACTOR is not an agent or employee of CITY for any purpose and is not entitled to any of the benefits provided by CITY to its employees. This Agreement shall not be construed as forming a partnership or any other association with CONTRACTOR other than that of an independent contractor.

20. INSURANCE.

20.1 Types and Limits of Insurance . In addition to any other insurance or security required under this Agreement, CONTRACTOR must procure and maintain, for the duration of this Agreement, the types and limits of insurance below ("Basic Insurance Requirements").

20.1.1 Automobile liability insurance , providing coverage for owned, non -owned, and hired autos on an occurrence
basis for bodily injury, including death, of one or more persons, property damage , and personal injury, with limits of not less than $1,000,000 per occurrence.

20.1.2 Commercial general liability insurance , unless otherwise approved by CITY’s Risk Manager, providing coverage on
an occurrence basis for bodily injury, including death, of one or more persons, property damage , and personal
injury, with limits of not less than $1,000,000 per occurrence.

The policy must:

20.1.2.1 Provide contractual liability coverage for the terms of this Agreement;

20.1.2.2 Provide products and completed operations
coverage;
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20.1.2.3 Provide premises, operations, and mobile
equipment coverage; and

20.1.2.4 Contain an additional insured endorsement in
favor of CITY and its mayor, council, officers,
agents, employees, and designated volunteers.

20.1.3 Workers' compensation insurance with limits of not less than $1,000,000 per occurrence . I n accordance with the
provisions of Labor Code Section 3700, every contractor will be required to secure the payment of compensation to his employees. Pursuant to Labor Code Section 1861,
CONTRACTOR must submit to CITY the following
certification before beginning any work on the
Improvements:

I am aware of the provisions of Section 3700 of the
Labor Code which require every employer to be
insured against liability for worker’s compensation or
to undertake self -insurance in accordance with the
provisions of that code, and I will comply with such
provisions before commencing the performance of
the work of this contract.

By executing this Agreement, CONTRACTOR is submitting the certification required above.

The policy must contain a waiver of subrogation in favor of CITY and its mayor, council, officers, agents, employees, and designated volunteers.

20.2 General Provisions Applying to All Insurance Types.

20.2.1 All policies required of CONTRACTOR must be written on a first-dollar coverage basis, or contain a deductible
provision. Subject to CITY’s advance approval,
CONTRACTOR may utilize a self -insured retention in any or all of the policies provided, but the policy or policies may not contain language, whether added by endorsement or
contained in the policy conditions, that prohibits
satisfaction of any self -insured provision or requirement by anyone other than the named insured or by any means
including other insurance or which is intended to defeat the intent or protection of an additional insured.

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20.2.2 All policies required of CONTRACTOR must be primary insurance as to CITY and its mayor, council, officers, agents, employees, or designated volunteers and any insurance or self-insurance maintained by CITY and its mayor, council, officers, agents, employees, and designated volunteers
must be excess of CONTRACTOR’s insurance and must not
contribute with it.

20.2.3 The insurance required above, e xcept for workers’ compensation insurance, must be placed with insurers with a Best’s rating as approved by CITY’s Risk Manager, but in no event less than A-:VII. Any deductibles, self -insured retentions, or insurance in lesser amounts, or lack of certain types of insurance otherwise required by this Agreement, or insurance rated below Best’s A-:VII, must be declared prior to execution of this Agreement and approv ed by CITY in writing.

20.2.4 The insurance required in this section must be maintained until the Scope of Work is satisfactorily completed as
evidenced by CITY’s written acceptance. All policies must provide that there will be continuing liability thereon, notwithstanding any recovery on any policy.

20.2.5 Full compensation for all premiums which CONTRACTOR is required to pay to satisfy the Basic Insurance Requirements shall be considered as included in the prices paid for the performance of the Scope of Work, and no additional
allowance will be made therefor or for additional premiums which may be required by extensions of the policies of
insurance.

20.2.6 It is further understood and agreed by CONTRACTOR that its liability to CITY will not in any way be limited to or affected by the amount of insurance obtained and carried by
CONTRACTOR in connection with this Agreement.

20.2.7 Unless otherwise approved by CITY, if any part of the Scope of Work is subcontracted, the Basic Insurance Requirements must be provided by, or on behalf of, all subcontractors even if CITY has approved lesser insurance requirements for CONTRACTOR, and all subcontractors must agree in writing to be bound by the provisions of this section.

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21. INTERPRETATION. Whenever the context so requires, the masculine gender includes the feminine and neuter, and the singular number includes the plural.

22. KEY PERSONNEL . At request of CITY, CONTRACTOR shall name all key personnel to be assigned to the work set forth herein. CITY reserves the right to approve key personnel, which approval shall not be unreasonably withheld. CITY approval shall be based solely on professional qualifications and experience and shall not be exercised to influence the CONTRACTOR’S judgments, conclusions, or personnel decisions. Once the key personnel are approved CONTRACTOR shall not change such personnel without the approval of CITY.

23. LICENSES. CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits and approvals which are legally required for CONTRACTOR to practice its profession and perform the Scope of Work . If CONTRACTOR is a corporation, at least one (1) officer or key employee shall hold the required licenses or professional degrees. If CONTRACTOR is a partnership, at least one (1) partner shall hold the required licensees or professional degrees.

24. MERGER AND MODIFICATION . This Agreement sets forth the entire agreement between the parties and supersedes all other oral or written representations. This Agreement may be modified only in a writing approved by the City Council and signed by all the parties.

25. NO WAIVER OF DEFAULT. The failure of any party to enforce against another party any provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time and shall not serve to vary the terms of this Agreement.

26. NON-INTEREST. No CITY officer or employee shall hold any interest in this Agreement (California Government Code section 1090).

27. NOTICES. All notices relative to this Agreement shall be given in writing and shall be personally served or sent by certified or registered mail and be effective upon actual personal service or depositing in the United States mail. The parties shall be addressed a s follows, or at any other address designated by notice:

CITY: CITY OF BAKERSFIELD

CITY HALL
1600 Truxtun Avenue
Bakersfield, California 93301

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CONTRACTOR: LSL, LLP
500 Technology Dr. Suite 350
Irvine, CA 92618

28. RESOURCE ALLOCATION. All CITY obligations under the terms of this Agreement are subject to the appropriation and allocation of resources by the City Council.

29. SB 854 COMPLIANCE . To the extent Labor Code Section 1771.1 applies to this Agreement, a contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, be subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless curren tly registered and qualified to perform public work pursuant to Labor Code Section 1725.5. It is not a violation of Labor Code Section 1771.1 for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Profession s Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Labor Code Section 1725.5 at the time the contract is awarded. The prime contractor is required to post job site notices in compliance with California Code of Regulations, Title 8, Section 16451. This project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

30. STANDARD OF PERFORMANCE . The Scope of Work shall be performed in conformity with all legal requirements and industry standards observed by a specialist of CONTRACTOR’s profession in California.

31. STARTING WORK. CONTRACTOR shall not begin work until authorized to do so in writing by CITY. No work will be authorized before the date first written above.

37. TAX NUMBERS.

CONTRACTOR’s Federal Tax ID Number 95-2700123
CONTRACTOR is a corporation? Yes No √ (Please check one.)

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

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"CITY" “CONTRACTOR”

CITY OF BAKERSFIELD LSL, LLP

By:________________________________ By:_________________________________

KAREN GOH RYAN DOMINO
Mayor Partner

APPROVED AS TO CONTENT:

FINANCE DEPARTMENT

By:_______________________________

TERA LOVELESS-ORTIZ
Assistant Finance Director

APPROVED AS TO FORM:

VIRGINIA GENNARO
City Attorney

By:___________________________

VIRGINIA GENNARO
City Attorney

Insurance:____________

COUNTERSIGNED:

By:_______________________________

RANDY MCKEEGAN
Finance Director

Attachments: Exhibit “A”
Exhibit “B”
Exhibit “C”

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PREPARED BY

LSL, LLP
Certified Public Accountants
License Number 2584

TECHNICAL PROPOSAL
City of Bakersfield
Professional Auditing Services
Date of Submission: March 31, 2026
Valid for 120 Days
Authorized by:

Ryan Domino, CPA, Partner
[email protected]
500 Technology Drive
Suite 350
Irvine, CA 92618
(949) 829 - 8299
i. Title Page
Master Copy

EXHIBIT A
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ii. Table of Contents
II. TABLE OF CONTENTS ....................................................................................................................... 1 III. TRANSMITTAL LETTER .................................................................................................................... 2 Authorized Representative .................................................................................................................... 3 IV. DETAILED PROPOSAL ..................................................................................................................... 4

2. Independence .................................................................................................................................... 4

3. License to Practice in California ........................................................................................................ 4

4. Qualifications and Experience ........................................................................................................... 4

5. Partner, Supervisory and Staff Qualifications and Experience .......................................................... 8 GFOA Award Program ........................................................................................................................ 11 Single Audit Experience ...................................................................................................................... 11

6. Prior Engagements with the City of Bakersfield .............................................................................. 12

7. Similar engagements with Other Government Entities .................................................................... 12

8. Specific Audit Approach .................................................................................................................. 14

9. Identification of Anticipated Potential Audit Problems ..................................................................... 22

10. Report Format ............................................................................................................................... 22 V. EXECUTED COPIES OF FIRM GUARANTEES AND FIRM WARRANTIES ................................... 22 LSL HIGHLIGHTS: AWARDS & VALUES ............................................................................................ 25 TRAINING SERVICES & LSL SEMINARS ............................................................................................ 26 APPENDIX A – COI EVIDENCE OF COVERAGE ................................................................................. 27 APPENDIX B – ENGAGEMENT TEAM RESUMES .............................................................................. 29 APPENDIX C – CURRENT LIST OF MUNICIPAL CLIENTS ................................................................ 36 APPENDIX D – SAMPLE REPORTS ..................................................................................................... 38 Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
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iii. Transmittal Letter

March 31, 2026

City of Bakersfield
Finance Department
1600 Truxton Avenue
Bakersfield, CA 93301

Dear Audit Committee,

LSL, LLP (“LSL”) is pleased to present our proposal for Professional Auditing Services, and we value the opportunity to demonstr ate our professional qualifications and commitment to excellence to the City of Bakersfield (“City”).

This proposal details our under standing of the scope of work ou tlined in the City’s RFP and showcases our firm’s experience, knowledge, and creative proble m-solving capabilities in governmental auditing. We understand that the City of Bakersfield is seeking a qualified firm to audit its financial statements fo r a contract period of three years, beginning with the fiscal year ended June 30, 2025, through June 30, 2027. This includes the preparation of the Annual Comprehensive Financial Report (ACFR) and related letters and r eports, the Public Safety and Vital Service Compliance Audit, the Public Finance Authority An nual Financial Report, Compliance Report, Single Audit, as applicable, and the Wastewater Management Plan.

At LSL, our Government Services team isn’t just another department – it’s the backbone of our firm. With a robust team of 60+ audit and consulting profession als, we bring decades of experience and highly specialized industry knowledge dedicated to serving state and local governments across the United States. Our expertise has shaped efficient procedures and streamlined work plans that deliver results. With unequaled gov ernment experience, we are confident that LSL is the best qualified accounting firm for the City.

Our government assurance team specializes in high-quality gover nmental audits aligned with GAAS and current GASB pronouncements. We prioritize accuracy an d thoroughness while ensuring timely report delivery. Our commitment to effective collaboration and transparency with the City safeguards the integrit y of its financial reporting an d compliance with all regulatory requirements.

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AUTHORIZED REPRESENTATIVE
Ryan Domino is the designated Engag ement Partner who will serve as the primary point of contact for this proposal. He is authorized to make representations on behalf of our firm and can be reached directly by phone at (714) 592-1814 or by email at R [email protected].

Please contact Ryan for any clarification or contract negotiations related to this proposal.

We affirm that our proposal fully aligns with all terms, condit ions, and requirements outlined in the City’s RFP. Our proposal is a firm and irrevocable offer fo r one hundred twenty (120) calendar days following the closing date of the receipt of proposals.

We welcome the opportunity to discuss any aspect of our proposa l to ensure your complete satisfaction.

Sincerely,

Ryan Domino, CPA, Partner

LSL, LLP
500 Technology Dr., Suite 350
Irvine, CA 92618
(949) 829 - 8299

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iv. Detailed Proposal

2. INDEPENDENCE
LSL meets the independence requi rements set forth by the Government Auditing Standards .

Our partners have no ownership in any other business organizati on that currently or will potentially provide services, supplies, materials, or equipment to the City or its component units.

LSL provided ACFR consulting services to the City in 2025. We a nnually distribute a listing of our firm's clients to all employees to ensure that any possible independence threats are properly documented and reviewed and affirm that we will notify the City of any professional relationships entered into during this period of agreement.

3. LICENSE TO PRACTICE IN CALIFORNIA
LSL is a public accounting firm licensed by the State of Califo rnia Department of Consumer Affairs as a Public Accounting Partnership. Additionally, we ar e members of the American Institute of Certified Public Accountants (AICPA) and the California Society of Certified Public Accountants (CalCPA). All key members assigned to this engagement are licensed or are in the process of obtaining their license as Certified Public Accountants by the State of California.

Business License
LSL affirms that we will obtain and maintain active business licensure with the City of Bakersfield upon award of contract.

Insurance
LSL confirms that we will maintain the minimum insurance requir ements throughout the entire term of this engagement. We have provided evidence of coverage with the submission of our proposal in Appendix A , and the actual insurance form w ill be provided upon the award o f contract.

4. QUALIFICATIONS AND EXPERIENCE
History & Size
LSL, LLP is a limited liability partnership and is not a wholly owned subsidiary of a parent company.

LSL was established in 1929 and has grown as a leader in the go vernment sector. Our full-service accounting firm i s headquartered in Irvine, Califo rnia, with a dynamic team of 15 partners, 4 principals, and 180+ employees. We provide auditing, accounting, and consulting services to over 100 municipal clients, including counties, cities, water and electric utility districts, and special-purpose government agencies. Our government sector services encompass a broad range of specialties, including a ttestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services.

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Location

OUR OFFICES

Irvine, CA
500 Technology Drive, Suite 350
Irvine, CA 92618
Phone: (949) 829-8299

Sacramento, CA
500 Capitol Mall, Suite 2350
Sacramento, CA 95814
Phone: (916) 503-9691
Phoenix Metropolitan Area, AZ
950 W. Elliot Rd., Suite 110
Tempe, AZ 85284
Phone: (480) 424-7855
The Woodlands, TX
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
Phone: (936) 828-4587

Our Irvine office will serve as the location from which work on this engagement will be performed, however, we regularly share staff and resources across our offices to leverage the virtual footprint of our government team that spans across the United S tates. This collaborative approach ensures that you receive the highest level of industry-specialized service while maintaining a streamlined, reliable audit and comprehensive coverage.

LSL’s Government Team Resources
Our governmental staff consists of three (3) Partners, one (1) Director, four (4) Senior Managers, eight (8) Managers, nine (9) Supervisors, and twenty (20) Professional Staff.

There will be 4 key staff assigned to the City’s engagement. LS L will not be subcontracting any portion of the City’s audit. All staff assigned to the audit po rtion of the engagement will be employed by LSL on a full-time basis and have extensive experience providing auditing services for cities, counties, and special-purpose government agencies. However, LSL does collaborate with a third-party for the preparation of the SCO (State Controller's Office) reports to ensure that the reports are prepared and filed correctly and timely by experts in those reports.

Our educational programs are designed to provide our team membe rs with the knowledge and skills necessary to deliver high-quality services to our clients. We offer a variety of training opportunities, including those provided by CalCPA, AICPA, Gover nment Audit Quality Center, and Government Finance Officers Association (GFOA).

Desk Review / Disciplinary Action
There have been no disciplinary actions against our organizatio n since its inception. There has been no litigation against our firm in the past three (3) years. Our Single Audit reports are desk reviewed either by the federal cognizant agency or the State Co ntroller’s Office acting as the Oversight Agency. LSL has never had a report rejected by any of these agencies and is highly regarded and recognized by the staff of the State Controller’s Office for top-quality reports.

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Peer Review
Our firm has participated in the AICPA Peer Review Program sinc e its inception. All our peer reviews have covered specific governmental engagements and have received pass ratings. Our most recent peer review conducted by Spafford and Landry CPAs is provided below.

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5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE Principal Engagement Team Organizational Chart
Ryan Domino, CPA
Engagement Partner
Ryan Domino has a strong technical focus and specializes in governmental accounting and auditi ng. He currently serves as a technical reviewer for the Government Finance Officers Associat ion (GFOA) and regularly presents at our firm’s annual GASB Update and at CSMFO’s chapter meetings wher e he presents and trains on the latest GASB pronouncements. Ryan is an expert on Single Audit planning and execution and holds advanced certification from th e AICPA. Ryan provides our clients with a competitive advantage as a member of GFOA’s Special Review Committee for the Award for Excellence in Financial Reporting and able to provide valuable insights and recommendations to help organizations achieve excellence in financial reporting.

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Brandon Young, CPA
Concurring Partner

Brandon is an expert in governm ental accounting and auditing an d trains our government team on t he proper implementation of new GASB pronouncements, ensuring that our clients receive the high est level of service and expertise. Brandon is appointed to a 3-yea r term to serve the prestigious AICPA State and Local Government Exper t Panel, further demonstrating hi s expertise in the field. Brando n also serves on the CalCPA Governmental Accounting and Auditing Committee, specific to the State of California, and he is responsible for numerous white papers and technical clarifications, including those for GASB 68, 75, and 87. His contributions to this committee have helped to shape the accounting and auditi ng practices of government organizations in California.

Engagement Team Resumes
Team resumes are available in Appendix B, which details the position of each team member in the firm, their educational ba ckground, and their years and typ es of experience. The resumes also provide information on relevant continuing education completed by the team members during the past three years. Proposed team members will be available for ninety (90) days from the proposal due date. LSL will promptly notify the City of any changes in key personnel prior to award.

City of Bakersfield Affirmative Action
Staffing assignments for this engagement will be made in accordance with all applicable federal and State non-discrimination laws and regulations. LSL personnel are selected based on professional qualifications, rele vant governmental audit experi ence, and the specific needs of the engagement. Our firm maintai ns employment and staffing practices that prohibit discrimination on the race, colo r, national origin, sex, age, or disability, or any other protected classification.

Staff Continuity
To ensure the quality of our staffing, we have established firm policies that prioritize the continuity of engagement teams, except in case s where an employee has left t h e f i r m o r h a s b e e n promoted. In the event of any c hanges in staffing at the Manage r position and above, LSL will first seek written permission from the City.

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Quality of Staff Assurance
LSL is committed to providing the City with a stable and experienced team that is dedicated to delivering a high-quality audit a nd exceptional service. We understand the importance of maintaining a strong and reliable team throughout the engagemen t, and we will work closely with the City to ensure that any staffing changes are handled with minimal disruption to the continuity of the engagement.

Continuing Education
At LSL, we strongly emphasize prof essional development and cont inuing education to ensure that our team members are up to date on the latest developments in governmental accounting and auditing. As a firm policy, all LSL government staff are re quired to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period.

Additional Resources
The LSL team is comprised of top talent within the industry wit h comprehensive experience beyond governmental audit, accounting, and advisory services. When you partner with LSL, you gain access to the experience, knowledge, and resources of our entire team, including our consulting and technology teams. We are committed to helping fi nance departments thrive by providing the guidance, tools, and services that foster lifelong success for your finance team.

We encourage our clients to tap into our full professional team of industry and product experts for your full-service consulting and staffing.

Financial & Compliance
Audits
Consulting, Staffing &
Training
ERP &
Other Technologies
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Kelly Telford, CPA
Consulting Partner
Kelly is a respected leader in public finance and is known for being a change agent and thought leader in organizational strategy. She has developed her expertise in public and local government accounting and auditing, financial forecasting, budget development, public uti lities, investment management, grant managem ent, human resources, and information technology. She has taught classes for GFOA and CSMFO and has presented at annual confer ences for GFOA, CSMFO and GFOAA. She has previously served as Finance Director for the c ities of Costa Mesa and Seal Beach as well as the Los Angeles Community Development Agency. Kelly has a proven track record of helping agencies identify operating ineffi ciencies assisted in departme ntal reorganizations, identify internal control challenges, completi ng year- end close procedures, and serving as an outsourced Finance Director.

Her practical recommendations are instrumental in helping our t eam and our clients achieve a high-quality and efficient audit while providing valuable feedback for organizational improvements.

GFOA AWARD PROGRAM
LSL understands the significance of obtaining and maintaining t he Certificate of Excellence in Financial Reporting from the GFOA. We have prepared financial s tatements and footnote disclosures for many of our local government clients who have r eceived this award. Our governmental partners, managers, and seniors are closely involv ed in the preparation of these reports. Clients currently receiving the GFOA award are noted in Appendix C.

SINGLE AUDIT EXPERIENCE
Our firm has extensive experience in performing Single Audits for local government agencies under the requirements of Title 2 U.S. Code of Federal Regulati ons (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements of Federal Awards (Uniform Guidance), and the United States Office of Management and Budge t (OMB). Appendix C also includes a list of government aud it clients for which a Single Audit has been performed in the last fiscal year. Additionally, the table on the following page highlights recent examples of federal programs audited by LSL.

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6. PRIOR ENGAGEMENTS WITH TH E CITY OF BAKERSFIELD
City of Bakersfield
Contact Randy McKeegan, Finance Director
Telephone 661-323-3030
Email Address [email protected]
Dates of Service 2025
Engagement Partner Gail Gray (no longer employed by LSL) Type of Service ACFR Consulting
Total Hours 42 Hours
LSL Office Location Texas Office

7. SIMILAR ENGAGEMENTS WITH OTH

ER GOVERNMENT ENTITIES
A current list of municipal clients can be found in Appendix C , which includes LSL’s most significant engagements conducted within the last three (3) yea r s t h a t a r e s i m i l a r t o t h e engagement described in this request for proposal, including local agencies with 50,000 or more population and $100 million or more in general governmental revenues.

The following references highlight our experience in providing professional auditing services to other governmental organizations with similar size and scope as the City of Bakersfield. We invite you to contact them to gain insight into our working relationships and quality of service.

Federal Granting Agency AL # Name of Program
U.S. Department of Agriculture 10.557 Special Supplemental Nutrition Program for Women, Infant, and Children U.S. Department of Housing & Urban Development 14.195 Section 8 H ousing Assistance Payment Program U.S. Department of Housing & Urban Development 14.218 Community Development Block Grants/Entitlement Grants U.S. Department of Housing & Urban Development 14.228 Community Dev elopment Block Grants/State's program and Non-Entitlement Grants in Hawaii
U.S. Department of Housing & Urban Development 14.239 HOME Invest ment Partnerships Program U.S. Department of Housing & Urban Development 14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation U.S. Department of Housing & Urban Development 14.871 Section 8 Housing Choice Vouchers U.S. Department of Transportation 20.106 Airport Improvement Prog ram U.S. Department of Transportation 20.205 Highway Planning and Con struction U.S. Department of Transportation 20.507 Federal Transit Formula Grants U.S. Department of Treasury 21.019 Coronavirus Relief Fund (CRF) U.S. Department of Treasury 21.027 Coronavirus State and Local Fi scal Recov ery Funds (SLFRF) U.S. Environmental Protection Agency 66.458 Capitalization Grants for Clean Water State Revolving Funds U.S. Department of Health and Human Serv ices 93.563 Child Suppor t Enforcement U.S. Department of Health and Human Services 93.667 Social Servi ces Block Grant U.S. Department of Health and Human Services 93.676 Unaccompanie d Alien Children Program U.S. Department of Health and Human Serv ices 93.778 Medical Assi stant Program - Medicaid Cluster U.S. Department of Homeland Security 97.036 Disaster Grants- Publ ic Assistance (Presidentially Declared Disasters) U.S. Department of Homeland Security 97.067 Homeland Security Gra nt Program Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
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City of San Juan Capistrano
Contact Ken Al-Imam, Chief Financial Officer / City Treasurer Telephone (949) 443-6301
Email Address [email protected]
Dates of Service 2021 – present
Total Hours 400
Scope of Services Audit of the City’s ACFR which receives the GFOA award; Single Audit; Gann Appropriation Limit AUP; Coastal Animal Services Authority (CASA) Audit

City of Carlsbad
Contact Zach Korach, Finance Director
Telephone 760-602-2430
E-mail Address [email protected]
Dates of Service 2022 – present
Total Hours 500
Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; Housing REAC Report; State Controller’s Report: City, Street Report

City of Oceanside
Contact Jill Moya, CPA, Financial Services Director
Telephone 760-435-3855
Email Address [email protected]
Dates of Service 2012 - present
Total Hours 500
Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; Gann Limit AUP; RDA State Controller’s Report; Building Authority; CDC Audit; Public Financing Authority; Ocean Eleven AUP; REAC Submission AUP; Small Craft Harbor District Audit; Ocean Eleven Casino AUP; OPFA Audit

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City of Burbank
Contact Craig Wood, Deputy Finance Director
Telephone (818) 238-5500
Email Address [email protected]
Date of Service 2012 - Present
Scope of Work 750
Total Hours Audit of the City’s ACFR; Housing Co Audit; Citywi de Cash Handling Audit; EMS Membership Program; Burbank Airport; Tennis Center; AUP:

Ambulance, BUSD, TPT; Burbank TOT; Feature Parking TPT Audit; Starlight Bowl AUP; Utility User’s Tax; Golf Course Audit; Franchise Fees; Oracle; Burbank Housing Corp.

City of Santa Monica
Contact Steve Gomez, MBA, CPA
Telephone (310) 458-8272
Email Address [email protected]
Dates of Service 2016 - Present
Total Hours 800
Scope of Work Audit of City’s ACFR receiving the GFOA award; Si ngle Audit; compliance audit of the City’s Housing Successor; compliance audit of the City’s Air Quality Management District revenues and expenditures; audit of the “Big Blue Bus” Enterprise Fund, National Transit Database (NTD) AUP; REAC submission, and application of AUP of City’s GANN Limit calculation

8. SPECIFIC AUDIT APPROACH
Government Auditing Standards
LSL under
stands its responsibilities to perform audits and issu e opinions on the City’s financial statements as well as its fair presentation. Our financial audits are performed in accordance with the Generally Accepted Government Auditing Standards (GAGAS) is sued by the Comptroller General of the United States, and our Single Audits are perform ed in accordance with the requirements of the Uniform Guidance. We will also evaluate the City's internal control system and provide recommendations for growth and improvement.

Project Management Methodology
The LSL team holds itself to a high standard for timely deliver y and effective communication of key milestones. We understand the importance of being responsive and communicative with our clients, and we are committed to being available on a day-to-day basis to address any questions or concerns that may arise throughout the engagement. Areas of concern and potential findings will be communicated to the City as soon as they are discovered to mitigate any surprises throughout the audit.

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At the beginning of the engagement, we will hold a planning meeting with you to determine the timeline, expectations, and desired outcome of the agreement on the issuance of financial statements. Throughout the process, we will have periodic meetings with you to provide updates and discuss progress. Upon award of contract and per the City’s requested timeline, LSL will work closely with the City to develop an audit plan and timeline to ensure compliance and timely deliverables.

As part of the Scope of Work and time requirements, we assume t hat the City will provide all necessary information needed to com plete the financial statemen t audit and single audit, as applicable. We will proactively identify and communicate any pending information from the City that could hinder our ability to complete the objectives of the engagement in a timely manner.

Quality Management System
LSL’s Quality Management System fully complies with the AICPA's Statement of Quality Management Standards No. 1 and showcases our unwavering commitm ent to excellence in audit and assurance services. Designed to meet and exceed industry standards, our framework integrates robust risk management, ethical compliance, and cont inuous improvement across every engagement. With clear policies for governance, client relationships, resource allocation, and performance monitoring, our system empowers every team memb er to deliver reliable, high-quality results. By fosteri ng a culture of transparency, accountability, and innovation, LSL ensures clients receive exceptional service and peace of mind, backed by proven processes and a dedication to quality at every level.

Project Schedule
LSL assumes under the time requirements that the City will have closed its books and will present the LSL team with general ledger balances that are audi table prior to the start of fieldwork. A sample timeline is provided on the following page displaying the key stages of the audit and the deliverables.

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REPORT DELIVERY SCHEDULE & DELIVERABLES
 City Financial Statement Audit, ACFR,
and Management Letter
 Public Safety and Vital Service Compliance
Audit
 Public Finance Authority – Annual Financial
Report
 Compliance Report
 Single Audit
 Wastewater Management Plan
Entrance Conference will be held before interim begins
Segment 1
Interim Testing will begin soon after contract execution, to be completed by August 1st
Detailed audit plan:

FY25 - upon contract execution
FY 26 – early August
Segment 2
Year-End Testing:

FY 25 – completed by July 31st
FY 26 – completed in early November
(Exit Conference will be held on the last day of fieldwork) Segment 3
Draft Reports:

FY 25 – delivered no later than September 30th
FY 26 – delivered in November
Final Report and Approval:

FY 25 – November 15th
FY 26 – early January 2026
LSL will be available as requested to present the
results of the financial audit.

Proposed W
ork Plan
At LSL, we use a governmental audit program that will be tailor ed to the City’s operations to accommodate its specific circumstances and organizational structure. LSL’s audit programs are organized by financial statement category, which we believe is the most effective and efficient approach to substantially reduce the risk of omitting important procedures. Our approach is designed to increase audit efficiency by linking financial stat ement assertions, audit objectives, and procedures that are basic to most governmental audit engagements.

Proposed Segmentation
Our audit services will be divided into the three succeeding segments:
 Segment 1 – Planning and Obtaining an Understanding
 Segment 2 – Financial Audit Testing
 Segment 3 – Conclusion
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Segment 1 – Planning and Obtaining an Understanding
LSL will provide an annual audit communication letter, engagement letter, and Government Audit Quality Center Information le tter. The audit communication lett er is to be provided to the City Council and/or Board of Directors and can be communicated orall y to those charged with governance, if requested, where we will discuss planning stages , responsibilities of the City Council and/or Board of Directo rs, Auditors, and Management, an d provide an opportunity to communicate with us as the auditors.

An entrance conference will be scheduled prior to the agreed-upon week of interim testing to ensure that the transition to new auditors is as seamless as possible. Discussions in this meeting include, but are not limited to, an understanding of reports and key milestones for deliverables, prior audit reportable conditions and issues, and “Prepared by Client” (PBC) schedules.

A trial balance is requested for our planning meeting to assist the LSL team in obtaining knowledge of economic conditions , industry elements, and new st andards that may affect the City. We will compile a list of PBC items based on our review o f the prior year's financial statements and the gathered inform ation that will be provided t o the City one month prior to testing or earlier if requested. We operate on a paperless software system and provide a secured cloud-based portal for all clients. The City will have a separate folder that can be customized to organize, and upload requested schedules, support documents, etc.

After interim testing, we will hold an exit meeting to discuss potential weaknesses, if any, and provide feedback for improvements or valuable information gathered from any outside clientele that would benefit the City.

Segment 2 – Financial Audit Testing
Based on the information gathered thus far, we will utilize a customized audit program based on the risk assessment developed during our assessment of the City ’s internal controls and Government Auditing Standards. The primary benefit of a tailored program is a focused set of procedures to address relevant areas. We believe that this appr oach is both effective and efficient and is critical to compliance with other material laws and regulations.

We will annually compile another customized PBC list for the year-end testing provided at least one month prior or earlier if r equested. We will request trial balances from the City for our analytical review to be provided one week before testing is scheduled to commence. Year-end testing will include testing of the balance sheet, revenue and expenditures accounts, confirmation of selected balances, analytical procedures, evaluation of the internal controls, and preparation of reports and letters.

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Segment 3 – Conclusion
Based on our year-end exit meeting we will discuss a plan to fi nalize the financial statements according to the timetable of the City. We will schedule dates for the initial and final drafts including time for LSL’s and the City’s review and approval of the financial statements. This period will also account for review by the engagement partner a nd quality assurance partner.

After the review and receipt of the signed Representation Lette r from the City, LSL will provide a final report by the agreed upon date each year.

Level of Staff Assigned and Number of Hours to be Assigned

*Hours proposed are for one (1) major program.

Segment/Task Partners Manager Supervisor Staff Clerical Total City of Bakersfield - ACFR & Management Letter
Interim test work 0 0 30 60 5 95
Year-End test work 0 0 90 190 5 285
Report/Review/Supervision 20 70 0 0 0 90
Subtotal 20 70 120 250 10 470
Public Safety and Vital Service Compliance Audit
Test work 0 0 13 25 0 38
Report/Review/Supervision 3 8 0 0 1 12
Subtotal 3 8 13 25 1 50
Public Finance Authority - Annual Financial Report
Test work 0 0 10 20 0 30
Report/Review/Supervision 2 6 0 0 2 10
Subtotal 2 6 10 20 2 40
Compliance Report
Te st work 00 3306
Report/Review/Supervision 1 2 0 0 1 4
Subtotal 1 2 3 3 1 10
Single Audit*
Test work 0 0 10 20 0 30
Report/Review/Supervision 2 6 0 0 2 10
Subtotal 2 6 10 20 2 40
Wastewater Management Plan
Test work 0 0 4 7 0 11
Report/Review/Supervision 1 2 0 0 1 4
Subtotal 1 2 4 7 1 15
TOTAL PROPOSED HOURS: 29 94 160 325 17 625

TOTAL PROPOSED HOURS
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Audit Sampling
For tests of controls, we use audit sampling. Tests of controls are procedures directed towards determining the effectiveness of the design or operation of an internal structure policy or procedures. Audit sampling is typically used for tests of controls and compliance that involve the inspection of documents and repor ts indicating the performance of the applicable policy or procedures and compliance with the applicable laws and regulations. Sample sizes vary based on the population and risk-based calculations.

Type And Extent of Analytical Procedures
For the audits of the financial statements, we will use analytical procedures as an overall review of the financial information in the preliminary and final stage s of the audits. These procedures are designed to assist us in planning our audits and in assessing the propriety of the conclusions reached and evaluating the overall financial statement presentation.

The procedures to be utilized c onsist of determining expectations for changes to significant revenue, expenditure, and balance sheet accounts, reading the financial statements and related notes, reviewing the budget and related material, and focusing on overall relationships within the financial statements.

Once determined, these are reviewed to evaluate if the changes appear reasonable or require further analysis. For all significant differences, explanations are obtained as to why the situation occurred and additional substantiv e procedures may be applied, and related evidence is gathered to resolve concerns and questions.

Electronic Data Processing Software & AI Technology
LSL is always at the forefront of technology and finding ways to increase efficiency in our audits.

Our goal is to effectively streamline the audit process to make the burden of an audit easier on our clients and ease any technical disagreements.

Caseware
At LSL, we partner with and utilize Caseware to perform our audits and retain electronic workpapers and supporting documentation in a fully cloud-based platform. During our preparation of the ACFR, all financial statements and schedules are linked to Caseware and audit documentation, ensuring accuracy and consistency with Cit y records and eliminating the risk of manual errors.

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LSL Caseware Cloud Portal
Our web-based portal system provides clients with the ability t o securely share information in a user-friendly platform. Integrated with Caseware OnPoint Collaborate, this state-of-the-art tool enhances collaboration in accounting and auditing. It enables direct communication with clients throughout the audit process for feedback exchange and tracks activities such as audit requests, client uploads, and progress. Access to the secure hub can be restricted to relevant individuals.

This tool eliminates the necessity of sending sensitive documents via email, enhancing efficiency. Client dashboards are customizable to meet specific needs.

Data Extraction & Audit Analytics
We believe software is only as effective as those who know how to use it. That's why we train all our staff and incorporate the use of Caseware Analytics AI and IDEA into our audit approach. These two complement each other to create a risk-base d transaction analysis tool.

We utilize them to scan transaction sets, identify exceptions warranting further investigation, and provide additional assurances to our clients. These tools offer users a high-level summary and reduce time spent in transaction analysis by automatically performing multiple tests on the entire transaction set. They assist in identifying duplicate payments, high-risk journal entries, and developing expectations for analytical procedures used during the audit.

Experience With ERP Systems
Many of our clients have updated their system software with new Enterprise Resource Planning (ERP) systems over the years. We make ourselves available for questions and recommendations, including assistance with the vendor selection process. Our clients' transition to more sophisticated ERP systems has allowed us to gain a bett er understanding of each system and its unique capabilities. We often obtain read-only access to our clients’ software and can work directly within the system. This allows us to provide useful observations and recommendations regarding internal controls and facilitates efficient audit test work. Some of the ERP and Property Tax Systems we have extensive experience with include Tyler Technologies (Munis, New World, Eden, Incode), One Solution, Oracle, SAP, Infor, Megabyte, and more.

Determining Laws and Regulations Subject to Audit Test Work The Laws and Regulations that will be subject to audit test work are determined by the applicable laws, regulations, contracts, and grant agreements which we identify through the understanding we obtain of the City and our extensive experience with other governmental entities.

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Drawing Audit Samples for Compliance
The sampling procedures test the operating effectiveness of an internal control structure policy or procedure by determining how the policy or procedure was applied, the consistency with which it was applied during the audit period, and by whom it was appl ied. We will draw samples for disbursements, receipts, and payroll when applicable. Each document selected will be tested for various attributes that are designed to verify compliance with different aspects of internal controls and applicable laws and regulations. Additionally, each sample item will be tested for coding to the proper accounts and posting to the general ledger.

LSL’s Approach to Understanding the City’s Internal Control Structure LSL will perform procedures as required by SAS 122-125 to obtain an understanding of the City and its environment along with a ssessing the risks of material misstatements in order to gain insight into the internal control structure over the financial statements. Our review will encompass various areas such as financial reporting, cash, revenues and receivables, utility billing, expenses, accounts payable, payroll, capital assets, long-term debt, and grant reporting.

We will issue a management lette r (SAS 115 Letter) that identifies any significant deficiencies and/or material weaknesses found as required by the Government Auditing Standards.

Our process is to obtain and revi ew the City’s annual budget bo ok, organizational charts, standard operations procedures, m anuals, policies, or other wri tten documentation to identify processes and controls for critical transaction cycles. As much as is possible, we attempt to gather the data from the City’s publicly available documents prior to beginning the audit to reduce the workload of the City’s audit staff. Additionally, during Segment 1 of the audit, LSL will conduct interviews with the management of finance and responsible parti es of each audit section to understand the processes and controls through observation and d iscussions. We will also perform sampling transactions a s part of a “walk-through” proce ss to verify that the system of control is functioning as per the policies and procedures.

Working Paper Retention and Access
All working papers and reports will be retained at LSL’s expense for a minimum of five (5) years unless otherwise notified in writing by the City of the need to extend that retention period. Upon written request, we will make working papers available to parti es designated by the City.

Furthermore, we will respond to the reasonable inquiries of suc cessor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.

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9. IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS Outside of the complexities that arise with the implementation of GASB pronouncements, LSL does not anticipate any audit problems or conflicts in the performance of the services requested in this RFP. Our approach is to partner with our clients to provide information, training, and the resources necessary to successfully implement any new changes in accounting principles.

As mentioned previously, LSL assumes that the City will provide all necessary information to complete the financial statement and single audits. The LSL team assigned to this engagement will help identify and communicate any pending information needed from the City that may hinder the engagement's objectives and timely completion. Additionally, LSL assumes that the City will have closed its books and present auditable general ledger balances.

10. REPORT FORMAT
Sample formats for required reports are included in Appendix D.

v. Executed Copies of Firm Guarantees and Firm Warranties Provided on the following pages

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LSL Highlights: Awards & Values
LSL is a multi-location firm with formidable resources that pro vides a personal feel and hands- on client experience.

Ranked #17 on the Orange
County Business Journal’s
CPA Firm Book of Lists
Established
in 1929
15 Partners
4 Principals
180 Employees
(and growing!)
Accounting Today Regional Leader
LSL has
again been recognized as an Accounting Today Regional
Leader in 2026. The list ranks the top CPA firms that have show n exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions.

INSIDE Public Accounting Award
LSL is honored to be recognized among the Top 300 accounting fi rms in the nation by INSIDE Public Accounting! Each year, IPA ranks CPA fi rms based on net revenue, and LSL proudly advanced from #220 in 2024 to #201 in 2025.

Our fantastic team and the trus t of our valued clients are the driving force behind this upward momentum and continued growth.

Best of Accounting Award
LSL has consistently secured the ClearlyRated Best of Accounting award since 2019. This exclusive program award s accounting firms who demons trate high- level service of excellence within the accounting industry and solely leverages statistically validated survey responses from our clients.

Our Core Values
Our values
weren’t decided on by management and handed down. Every member of the LSL team worked together to share what values matter most to us. From there, we came up with the following five core values that embody how we approach each other, our work, and our clients.

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Training Services & LSL Seminars
LSL offers a comprehensive suite of training options including written materials, in-person, online and webinars covering both current topics and foundational concepts. These programs are tailored towards finance department teams to ensure that both clients and staff are informed and prepared in governmental account ing and auditing with continued support throughout. We regularly lead instructional ses sions and learning opportunities in financial reporting, internal control risk assessments, and the latest GASB updates delivering the most current information and ideas that impact your industry. These opportunities are made available through our firm to the City for professional development or continuing professional education credits. Some of the topics include:

Uniform Guidance
(UG) Updates GASB Updates Addressing Staffing
Challenges
ERP
Implementation
Panel
LSL Back to Basics
Series
Back to Basics topics in
clude:
 GASB 101: Compensated Absences
 Capital Assets
 Bank Reconciliations
 Pension & OPEB
 Accounts Receivable
 A/P, Accrued Liabilities, and Long-Term Debt
 Leases & SBITAS
For upcoming webinars, please visit https://lslcpas.com/webinars/.

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Appendix A – COI Evidence of Coverage
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
Professional Auditing Services
28 www.lslcpas.com | 28
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
Professional Auditing Services
29 www.lslcpas.com | 29
Appendix B – Engagement Team Resumes
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 Ryan Domino, CPA, Partner

ENGAGEMENT PARTNER

ACHIEVEMENTS
Ryan currently serves as a technical reviewer for the Governmen t Finance Officers Association (GFOA), and has been a presenter for CSMFO’s annual conference and various chapter meetings. He has been involved w ith teaching current audit and accounting-related material at LSL’s in-house training seminars, and annual GASB Update.

CONTINUING EDUCATION
As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 2 4 hours in governmental accounting and auditing in a two-year period. Ryan meets the requirements for Government Auditing Standards in governmental CPE.

EXPERIENCE
Ryan has over 11 years of exper ience in governmental auditing i ncluding financial statement audits, prepa ration of Annual Comprehensive Financial Reports, Housing Successor compliance audits, TDA compliance au dits, Single Audits, Federal Student Financial Aid audits, and variou s consulting and agreed-upon procedures projects.

Ryan is one of the firm’s leaders in ensuring audit quality con trol and Government Practice training for staff. He is a regular presenter at the firm’s annual GASB Update where he has pre sented training to our clien ts on the latest GASB pronouncements and has been a presenter for CSMFO’s chapter meetings and the annual CSFMO Conference.

Some of his presentations have covered:
 General auditing in accordance with GAGAS
 Accounting for capital assets
 GASB Statement Nos. 89, 90, 91, 94, 100, 101, and 102  Fraud risks and internal controls

MEMBERSHIPS
AICPA, CalCPA, CSMFO, GFOA, GFOAT

EDUCATION
Bachelor of Arts Degree in Business Administration, with an emp hasis in Accounting – California State University, Fullerton

LICENSES &
CERT

IFICATIONS
Certified Public Accountant
California
Texas
AICPA Advanced
Single Audit Certificate

AUDIT ENGAGEMENT
S
City of Agoura Hills, CA
City of Big Bear Lake, CA
City of Brea, CA
City of Burbank, CA
City of Carlsbad, CA
City of Cathedral City, CA
City of Chino Hills, CA
City of Dana Point, CA
City of Kress, TX
City of La Quinta, CA
City of Lompoc, CA
City of Monrovia, CA
City of Moorpark, CA
City of Oceanside, CA
City of Orange, CA
City of Palm Desert, CA
City of Rialto, CA
City of Rosemead, CA
City of San Clemente, CA
City of San Juan Capistrano, CA
City of Santa Monica, CA
Monterey Peninsula Airport District
Orange County Water District
Orchard Dale Water District
Rainbow Municipal Water District
San Bernardino Muni. Water Dept.

Three Valleys Muni. Water District
United Water Conservation District
Yorba Linda Water Distric
t
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 30
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 Program Sponsor Completed
Back to Basics | Uniform Guidance Update Encore Presentatio LSL, LLP 09/10/2025 2025 Government Workshop Series LSL CPAs 09/09/2025
2025 Government Workshop Series LSL CPAs 09/02/2025
2025 GAGAS Training Day 2 LSL, LLP 08/28/2025
2025 Government Workshop Series LSL CPAs 08/26/2025
2025 GAGAS Training Day 1 LSL, LLP 08/27/2025
2025 Government Workshop Series LSL CPAs 08/05/2025
Developing as a Rainmake Convergence Coaching 06/23/2025 Back to Basics | GASB 101: Compensated absences LSL, LLP 06/05/2025 The New Psychology of Fraud 2024-2025 Calcpa 05/14/2025 New Quality Management Standards: Bringing It All Together - Exploring All ComponeAicpa 04/24/2025 New Quality Management Standards: What's New for Firms' Monitoring and RemediaAicpa 04/17/2025 Single Audit Training - 01/24/2025 LSL CPAs 01/24/2025
Back to Basics - Capital Assets Crash Course LSL CPAs 09/10/2024 Back to Basics | Put the Pieces Together: A Guide to Bank Reconciliation LSL CPAs 08/27/2024 A CPA’s Guidebook to Ethical Behavior: A CPE Ethics Course for Texas CPA Becker Professional Education 08/23/2024 Government Year-End Training 8/8/24 (Webinar LSL CPAs 08/09/2024 LSL Government Audit, Accounting & Technology (GAAT) Updat LSL CPAs 05/01/2024 2024 Govt. Interim Training - Audit Roadma LSL CPAs 04/05/2024 2024 Govt. Interim Training: Internal Control Documentation in Or LSL CPAs 04/04/2024 Audit Nightmares: Expenses Lumiq 02/13/2024
LSL CPAs Strategic Planning Boomer Consulting 01/18/2024 Designing a Training Program: Setting Goals, Objectives, and Medium 01/03/2024 Key Recipient Roles and Responsibilities in Single Audit Aicpa 12/15/2023 Audit & Assurance Discussion Webinar Primegloba 10/19/2023 2023 DHCS GAGAS Training Day 2 LSL CPAs 08/31/2023
2023 DHCS GAGAS Training Day 1 LSL CPAs 08/30/2023
2023 Uniform Guidance Update Becker Professional Education 08/21/2023 Understanding and Applying SAS 142: Audit Evidence Becker Professional Education 07/31/2023 Risk Assessment Under SAS No. 145 Aicpa 07/20/2023
Selecting and Managing a Project Portfolio with Microsoft Proje 07/18/2023 2023 Govt. Lunch & Learn! Writing Good Findings LSL CPAs 07/14/2023 Becoming a Thought Leade 07/13/2023
2023 Govt. Year-End Training - Time Management (Level 1 LSL CPAs 06/30/2023 2023 Govt. Year-End Training - Financial Statements (Level 2 LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Payroll (Level 1 LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Revenue & Receivables (Level 2 LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Revenue & Receivables (Level 1 LSL CPAs 06/28/2023 2023 Govt. Year-End Training - GASB 100 LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Year-End Expectation LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Inventory and YE Expectation LSL CPAs 06/26/2023 2023 Govt. Year-End Training - Basics of Governmen LSL CPAs 06/26/2023 2023 Govt. Lunch & Learn! Long-term Deb LSL CPAs 06/16/2023 Critical Thinking – The Key to Success in Any Job Becker Professional Education 06/14/2023 2023 OMB Compliance Supplement and Single Audit Updat Aicpa 06/13/2023 GASB Other Postemployment Benefits (OPEB Becker Professional Education 06/12/2023 Building Professional Relationships 06/06/2023
Balancing Multiple Roles as a Leade 06/05/2023
2023 Govt. Lunch & Learn! Cash and Investments LSL CPAs 06/02/2023 2023 Fraud Update Becker Professional Education 05/09/2023 Start-up and Small Business Financial Statements: Issues and Fraud 202 Calcpa 05/09/2023 2023 GASB Update: The Age of Enlightenment (for finance departments!)_LIV LSL CPAs 05/04/2023 2023 Annual Required GAQC Webcast Aicpa 05/02/2023
California Ethics Becker Professional Education 04/26/2023 2023 Interim Training - Assignments and Expectation LSL CPAs 03/10/2023 2023 Interim Training - Live Case Study LSL CPAs 03/10/2023 2023 Interim Training - Changes Since Re-Engineering LSL CPAs 03/09/2023 2023 Interim Training - Introduction to Government Audit LSL CPAs 03/09/2023 2023 Interim Training - Audit Documentation LSL CPAs 03/09/2023 2023 Interim Training - Basics of Internal Contro LSL CPAs 03/09/2023 Accounting Firm’s System of Quality Control, Part Becker Professional Education 01/16/2023 Ryan Domino CPE Records 2023 - Current
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 31
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 1 Brandon Young, CPA, Partner/ COO

CONCURRING PARTNER

ACHIEVEMENTS
Brandon is an expert in Governmental Accounting and Auditing, with over 13 years of experience serving a wide range of clients. He is appointed to serve on the prestigious AICPA State and Local Government Expert Pane l, with a three-year the term that began in May of 2023, and also has ser ved on the CalCPA Governmental Accounting and Auditing Committee since 2018.

CONTINUING EDUCATION
As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 2 4 hours in governmental accounting and auditing in a two-year period. Brandon meets the requirements for Government Auditing Standards in governmental CPE.

EXPERIENCE
Brandon has performed all phases of governmental audits with nu merous presentations to City Councils, Board of Supervisors, Board of Directors, and Audit Committees over the past th irteen years. He routinely pre sents at CSMFO, local chapter meetings and CalSACA on current accounting and auditing material. He also regularly teaches current audit and accounting- related material at LSL training seminars, webinars, and client education workshops and training events.

His work has entailed:
 The preparation of the ACFR for entities involved in CSMFO and GFOA in the U.S.
 Audit review and technical assistance throughout the year to d eliver the most up-to-date information with current GASB pronouncements  Presentation of audit results to Audit Committees or others ch arged with governance
 Risk assessment and evaluation of internal controls with COSO and Federal Green Book
 Single Audits in accordance with new Uniform Guidance

MEMBERSHIPS
AICPA, AICPA SLG Expert Panel Cal CPA, CalCPA State GAA, CSMFO, GFOA

EDUCATION
Bachelor of Arts Degree in Accounting, Magna Cum Laude – Vanguard University

LICENSE
Certified Public Accountant
California

ENGAGEMENTS
City of Chula Vista
City of Citrus Heights
City of Dixon
City of Lodi
City of Galt
City of Livingston
City of Menlo Park
City of Newark
City of Pasadena
City of Pleasanton
City of Riverside
City of Roseville
City of Santa Monica
City of Shafter
Coachella Valley Water District
County of Placer
County of Nevada
County of Sutter
County of Yolo
East Bay Municipal Utility District
GDPUD
Inland Empire Utilities Agency
Monterey Peninsula Airport District
Orange County Water District
San Joaquin Council of Gov.

Santa Clarita Valley Water Agency
Union Sanitary District
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 32
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 Program Sponsor Completed
The New Psychology of Fraud 2024-2025 Calcpa 10/30/2025 Ethics in the Real World 2025-26 Calcpa 10/30/2025
2025 Fall Western Roundtable Primeglobal 08/26/2025
2025 Boomer Circle Summit Boomer Consulting 08/20/2025
June 2025 GAAC Meeting Calcpa 06/26/2025
2025 State and Local Government Audit Planning Considerations Aicpa 05/29/2025 2025 State and Local Government Audit Planning Considerations Aicpa 05/29/2025 Quality Management Standards Becker Professional Education 04/28/2025 LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change -Uniform Guidance (UG) Update LSL, LLP 04/10/2025
LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change - IT Strategic Plan: A Blueprint for Transformation LSL, LLP 04/10/2025 LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change -ERP Panel: Implementation Lessons Learned LSL, LLP 04/10/2025 LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change LSL, LLP 04/10/2025 2025 Winter Western Subregional Roundtable Primeglobal 01/13/2025 2024 Government Year-End Training (In-Person) LSL CPAs 08/09/2024 2024 Gov't Levels Training - Level 4 (Day 1) LSL CPAs 08/07/2024 Inventory Count Training (Government) LSL CPAs 06/06/2024 Firm Operations & Administration (COOs & FAs) Discussion Webinar Primeglobal 06/05/2024 2024 Annual Required GACQC Webcast Aicpa 05/09/2024
LSL Government Audit, Accounting & Technology (GAAT) Update LSL CPAs 05/01/2024 2024 Govt. Interim Training: Expectations LSL CPAs 04/05/2024 CSMFO Annual Conference 2024 Csmfo 02/29/2024
LSL CPAs Strategic Planning Boomer Consulting 01/18/2024 2024 Winter Western Subregional Roundtable Primeglobal 01/16/2024 San Gabriel Valley Holiday Luncheon Csmfo 11/29/2023
Audit and Assurance Discussion Webinar Primeglobal 10/19/2023 Annual Professional Ethics Update 2023 Becker Professional Education 10/03/2023 Ethics - Understanding and applying the AICPA Code of Professional Conduct Becker Professional Education 10/03/2023 Fraud Stories Series: Accounting Fraud Calcpa 10/02/2023 September 2023 GAAC Meeting Calcpa 09/14/2023
Fraud Stories Series Crypto Promises Sept 2022 Calcpa 09/13/2023 2023 Summer Western Subregional Roundtable Primeglobal 08/22/2023 GASB 96: Lost In Translation.... Implementation Challenges No One is Talking About LSL CPAs 07/31/2023 2023 Govt. Lunch & Learn! Writing Good Findings LSL CPAs 07/14/2023 2023 Govt. Year-End Training - People Management (Level 2) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Communication Skills/Audit Documentation (Level 1) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Expenditures & Payables (Level 1) LSL CPAs 06/28/2023 2023 Govt. Year-End Training - Payroll (Level 2) LSL CPAs 06/28/2023 2023 Govt. Year-End Training - Year-End Expectations LSL CPAs 06/27/2023 2023 Govt. Year-End Training - GASB 100 LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Audit Documentation (Level 2) LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Expenditures & Payables (Level 2) LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Basics of Government LSL CPAs 06/26/2023 2023 Govt. Year-End Training - Inventory and YE Expectations LSL CPAs 06/26/2023 California Regulatory Review Becker Professional Education 05/06/2023 2023 GASB Update: The Age of Enlightenment (for finance departments!)_LIVE LSL CPAs 05/04/2023 2023 Annual Required GAQC Webcast Aicpa 05/02/2023
Annual Conference of the State Association of County Auditors State Association Of County Auditors 04/20/2023 CCH Axcess/Document Beyond the Basics LSL CPAs 03/16/2023 2023 Interim Training - Assignments and Expectations LSL CPAs 03/10/2023 2023 Interim Training - Live Case Study LSL CPAs 03/10/2023 2023 Interim Training - Basics of Internal Control LSL CPAs 03/09/2023 2023 Interim Training - Changes Since Re-Engineering LSL CPAs 03/09/2023 2023 Interim Training - Introduction to Government Audits LSL CPAs 03/09/2023 2023 Interim Training - Audit Documentation LSL CPAs 03/09/2023 Brandon Young CPE Records 2023 - Current
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 33
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 Heather Flores, CPA, Manager

AUDIT MANAGER

ACHIEVEMENTS
Heather brings 16 years of experience across both the public an d private accounting sectors. She specializes in governmental aud its – helping cities, districts, and public agencies navigate their f inancial reporting and compliance requirements with confidence. Heather’ s practical approach to handling the pressure finance teams face during year-end allows her to make the audit process efficient, clear, and as stress-free as possible.

CONTINUING EDUCATION
140 total hours over the last three years, 95 of which were in governmental accounting and auditing subjects. Heather meets th e requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
Heather has performed a variety of government audits, including school districts, water districts, other special districts, ACFR audits, and Single Audits.

Her work has entailed:
 Annual Comprehensive Financial Report preparation
 Assisting clients achieve the Government Finance Officers Association (GFOA) Award
 Compliance testing for Single Audits under Uniform Guidance  Preparing government-wide conversion entries
 Assisting clients with the preparation and review of GASB 34, 87, and 96 journal entries
 Review of capital assets, debt service, and federal and state award

MEMBERSHIPS
AICPA, CalCPA, CREW-OC

EDUCATION
Bachelors of Business Administration in Accounting &
Master of Science in Finance -
Texas A&M University in College Station, Texas

LICENSES
Certified Public Accountant
Texas

ENGAGEMENTS
City of Nevada City
City of West Sacramento
County of Placer
Monterey Peninsula Airport
District
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 34
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 Program Sponsor Completed
2025 Government Workshop Series LSL CPAs 11/04/2025
2025 Government Workshop Series LSL CPAs 10/28/2025
2025 Government Workshop Series LSL CPAs 10/21/2025
2025 Government Workshop Series LSL CPAs 10/14/2025
2025 Government Workshop Series LSL CPAs 09/30/2025
2025 Government Workshop Series LSL CPAs 09/23/2025
GAS-Single Audit Guide: An Overview of AMERICAN INSTITUTE OF CPAS 9/18/2025 2025 Government Workshop Series LSL CPAs 09/16/2025
Back to Basics | Uniform Guidance Update Encore Presentation LSL, LLP 09/10/2025 2025 Government Workshop Series LSL CPAs 09/09/2025
2025 Government Workshop Series LSL CPAs 09/02/2025
2025 Government Workshop Series LSL CPAs 08/26/2025
2025 Government Workshop Series LSL CPAs 08/19/2025
2025 Government Workshop Series LSL CPAs 08/12/2025
2025 Government Year-End Training LSL CPAs 07/24/2025
2025 Assurance Department Training LSL CPAs 07/23/2025
2025 Assurance Department Training LSL CPAs 07/22/2025
Governmental and Not-for-Profit Annual AMERICAN INSTITUTE OF CPAS 7/15/2025 Anti-Harassment for Bystanders: 05. Harassment Bystander Scenarios HSI 06/10/2025 California Workplace Bullying HSI 06/10/2025
Anti-Harassment: 06. Review of Anti-Harassment HSI 06/10/2025 Anti-Harassment: 01. Anti-Harassment for Everyone HSI 06/10/2025 Anti-Harassment: 02. Anti-Harassment for Managers HSI 06/10/2025 Overview: Harassment Prevention and the Respectful Workplace HSI 06/10/2025 Workplace Violence for Supervisors HSI 06/10/2025
Anti-Discrimination: Protected Classes and the Inclusive Workplace HSI 06/10/2025 California Workplace Violence Prevention Plan HSI 06/10/2025 Back to Basics | GASB 101: Compensated absences LSL, LLP 06/05/2025 2024 Internal Inspector Results CARR RIGGS & INGRAM, LLC GASB 9/25/2024 100 FInancial Statement Impact CARR RIGGS & INGRAM, LLC IT 8/22/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/22/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/21/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/21/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/20/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/20/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC 6/27/2024 CAATs / Active Data Part 1 CARR RIGGS & INGRAM, LLC A 6/25/2024 Deep Dive into GASB Statement 103's CARR RIGGS & INGRAM, LLC 6/21/2024 2024 Compliance Supplement CARR RIGGS & INGRAM, LLC 5/23/2024 2024 CRI IT Technology Review CARR RIGGS & INGRAM, LLC 5/10/2024 Introduction to Auditing Employee Benefit CARR RIGGS & INGRAM, LLC 5/10/2024 Employee Benefit Plan Audit Topics - Part CARR RIGGS & INGRAM, LLC 5/10/2024 Employee Benefit Plan Audit Topics - Part CARR RIGGS & INGRAM, LLC 5/9/2024 2024 Not-for-Profit Overview CARR RIGGS & INGRAM, LLC 5/9/2024 Single Audit Common Deficiencies CARR RIGGS & INGRAM, LLC 5/9/2024 Single Audit Update - Part 2 CARR RIGGS & INGRAM, LLC 5/9/2024 Single Audit Update - Part 1 CARR RIGGS & INGRAM, LLC 5/8/2024 Yellow Book Overview CARR RIGGS & INGRAM, LLC 5/8/2024
Government Practice Topics CARR RIGGS & INGRAM, LLC 5/8/2024 Common Government Reporting Errors CARR RIGGS & INGRAM, LLC GASB 5/8/2024 Overview CARR RIGGS & INGRAM, LLC 5/7/2024
General Audit Topics CARR RIGGS & INGRAM, LLC 5/7/2024
Independence CARR RIGGS & INGRAM, LLC 5/7/2024
2024 ASB Overview CARR RIGGS & INGRAM, LLC 5/7/2024
2024 FASB Overview CARR RIGGS & INGRAM, LLC 5/6/2024
Auditing Revenue CARR RIGGS & INGRAM, LLC 5/6/2024
Consideration of Fraud in a Financial CARR RIGGS & INGRAM, LLC 5/6/2024 Auditor Engaged Valuation Specialist - CARR RIGGS & INGRAM, LLC 5/6/2024 Auditing Leases (ASC 842) CARR RIGGS & INGRAM, LLC 1/17/2024 HubSync Introduction for CAAS Training CARR RIGGS & INGRAM, LLC 12/14/2023 2023 Internal Inspection Results CARR RIGGS & INGRAM, LLC 12/13/2023 Internal Controls - Payroll and CARR RIGGS & INGRAM, LLC 12/12/2023 Understanding Yourself & Others CARR RIGGS & INGRAM, LLC 12/7/2023 Teamwork CARR RIGGS & INGRAM, LLC 10/25/2023
Risk Assessment Update for SAS 145 CARR RIGGS & INGRAM, LLC EBP 9/20/2023 Highlights Thus Far and Reminders CARR RIGGS & INGRAM, LLC 6/21/2023 Internal Controls - Part 2 - Module 3 CARR RIGGS & INGRAM, LLC 6/21/2023 Internal Controls - Part 2 - Module 2 CARR RIGGS & INGRAM, LLC 6/20/2023 Internal Controls Part 2 - Module 1 CARR RIGGS & INGRAM, LLC 6/20/2023 Internal Controls Part 1 - Module 3 CARR RIGGS & INGRAM, LLC 6/19/2023 Internal Controls - Part 1 - Module 1 CARR RIGGS & INGRAM, LLC 6/19/2023 Internal Controls - Part 1 - Module 2 CARR RIGGS & INGRAM, LLC 5/12/2023 Employee Benefit Plan Audit Topics - Part CARR RIGGS & INGRAM, LLC 5/12/2023 General SSARS Overview CARR RIGGS & INGRAM, LLC 5/12/2023 Not-for-Profit Overview CARR RIGGS & INGRAM, LLC 5/11/2023 Introduction to Auditing Employee Benefit CARR RIGGS & INGRAM, LLC 5/11/2023 Single Audit Update - Part 2 CARR RIGGS & INGRAM, LLC 5/11/2023 Single Audit Update - Part 1 CARR RIGGS & INGRAM, LLC 5/11/2023 Single Audit Common Deficiencies CARR RIGGS & INGRAM, LLC 5/10/2023 Yellow Book Overview CARR RIGGS & INGRAM, LLC 5/10/2023 2023 GASB Overview CARR RIGGS & INGRAM, LLC GASB 5/10/2023 87 (Leases) Lessons Learned CARR RIGGS & INGRAM, LLC 5/10/2023 Government Practice Topics CARR RIGGS & INGRAM, LLC 5/9/2023 2023 FASB Overview CARR RIGGS & INGRAM, LLC 5/9/2023
2023 ASB Overview CARR RIGGS & INGRAM, LLC 5/9/2023
Risk Assessment CARR RIGGS & INGRAM, LLC 5/9/2023
General Audit Topics CARR RIGGS & INGRAM, LLC 5/8/2023
Debt Classification, Impairment, Going CARR RIGGS & INGRAM, LLC 5/8/2023 Considerations of Fraud in a Financial CARR RIGGS & INGRAM, LLC 5/8/2023 Professional Skepticism CARR RIGGS & INGRAM, LLC 5/8/2023 Leases CARR RIGGS & INGRAM, LLC 4/19/2023
Efficient Ways to Approach Journal Entry CARR RIGGS & INGRAM, LLC 2/8/2023 Tips and Tricks for a More Efficient Busy CARR RIGGS & INGRAM, LLC 2/8/2023 Heather Flores CPE Records 2023 - Current
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 35
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
Professional Auditing Services
36 www.lslcpas.com | 36
Appendix C – Current List of Municipal Clients
olumClient Name Client Class Contact Person Services Years Phone * Barstow M Sydnie Harris A1, A2 11 760-255-5115
Big Bear Fire Authority S Kristin Mandolini A1 9 909-866-5831 * Big Bear Lake M Joseph Toney A1, A2 27 909-866-5831
* Brea M Monica Lo A1, A2 13 714-990-7600
* Burbank M Heidi Okimoto A1, A2 15 818-238-5500
* Butte County C Graciela Gutierrez A1, A2 1 530-552-3600 Canyon Lake M Aaron Brown A1, A2 30 951-244-2955
* Carlsbad M Zach Korach A1, A2 3 760-602-2430
* Cathedral City M Kevin Biersack A1, A2 15 760-770-0378 * Chino Hills M Nicole Lugotoff A1, A2 28 909-364-2648
* Citrus Heights M Alberto Preciado A1, A2 6 916-272-4776 * Citrus Heights Water District S Annie Liu A1 4 916-735-7703 * Coachella Valley Water District S Karla Romero A1, A2 12 760-398-26 51 * Culver City M Lisa Soghor A1, A2 1 310-253-6016
* Dana Point M Sheryl Mariano A1 1 949-248-3516
* Diamond Bar M Jason Jacobsen A1, A2 15 909-839-7051
* Downey M Francesca Navarro A1, A2 11 562-904-7265
Duarte M Angela Chiaromonte A1 1 626-357-7931
Durham Mosquito Abatement District S Anita Weinreich A1 1 530-518-03 64 * East Bay Municipal Utility District S Melody Wang A1, A2 6 510-287- 0280 * Eastern Municipal Water District S Wilma Garriz A1, A2 4 951-928-37 77 El Dorado County C Alison Winter A1, A2 1 530-621-6729
* El Toro Water District S Vishav Sharma A1 1 949-599-2504 * Fullerton M Toni Smart A1, A2 4 714-738-6522
* Galt M Cindy Nguyen A1 7 209-366-7150
Grand Terrace M Christine Clayton A1, A2 11 909-824-6621 Inglewood M Sharon Koike A1, A2 10 310-412-5257
* Irwindale M Lori Svet A1 30 626-430-2200
Kress T Johnny Taylor A1 1 806- 994-5051
* La Quinta M Claudia Martinez A1, A2 1 760-777-7055
* Laguna Beach M Shannon Espinoza A1 1 949-497-0319
Livingston M Happy Bains A1 4 209-394-8041
* Lodi M Chia Lor A1, A2 2 209-269-4638
* Lompoc M Christie Donnelly A1, A2 4 805-875-8283
* Malibu M Renee Neerman A1 21 310-456-2489
* Manhattan Beach M Julie Bondarchuk A1 15 310-802-5564 * Mesa Water District S Anthony Phou A1 3 949-574-1022
* Monrovia M Buffy Bullis A1, A2 24 626-932-5513
Monterey Peninsula Airport District S Mark Wilson A1, A2 6 831-648-7 000 * Napa M Rajneil (Raj) Prasad A1, A2 1 707-257-9698
Nevada City M Stephen Erlandson A1 1 530-265-2496
* Nevada County C Gina Will A1 1 530-265-1580
* Newark M Krysten Lee A1, A2 6 510-578-4288
* Oceanside M Jill Moya A1, A2 16 760-435-3887
Orange M Trang Nguyen A1, A2 2 714-744-2251
Orchard Dale Water District S Ron Richard A1 6 562-941-0114 Current List of Municipal Clients
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
Professional Auditing Services
37 www.lslcpas.com | 37
* Palm Desert M Veronica Chavez A1, A2 8 760-346-0611
* Pasadena M Armine Trashian A1, A2 12 626-744-4000
* Placer County C Debbie Chan A1, A2 1 530-889-4180
* Rainbow Municipal Water District S Rick Aragon A1 5 760-728-1178 * Rancho Cucamonga M Caroline Cruz-Contreras A1, A2 47 909-774-2434 Rolling Hills M Robert Samario A1, A2 16 310-377-1521
* Rosemead M Maria Teresita Anson A1, A2 7 626-569-2146 * Roseville M Kyle Horton A1, A2 4 916-774-5526
* Sacramento Transportation Authority S Dustin Purinton A1 2 916-323- 0894 * San Bernardino Municipal Water Departm S Cynthia Mouser A1, A2 6 909-453-6010 * San Clemente M Jacob Rahn A1, A2 7 949-361-8360
* San Joaquin Council of Governments S Lynette Castle A1, A2 6 209-23 5-0454 San Juan Capistrano M Ken Al-Imam A1, A2 4 949-493-1171 * San Marino M Hillary Guirola-Leon A1, A2 32 626-300-0708 * Santa Monica M Steve Gomez A1, A2 9 310-458-8272
* Shasta County C Nolda Short A1 1 530-245-6657
* South Coast Air Quality Management Dis S Susanna Leung A1, A2 2 909-396-2623 Stanislaus Council of Governments S Jean Foletta A1 1 209-525-4891 Sutter County C Nathan Black A1, A2 6 530-822-7127
* Three Valleys Municipal Water District S Jose Velasquez A1 17 909-6 26-5568 * United Water Conservation District S Brian Zahn A1 2 805-695-3870 * Vacaville M Ken Matsumiya A1, A2 5 707-449-5180
* Vallejo M Rekha Nayar A1, A2 6 707-648-5433
* West Sacramento M Becky Robertson A1, A2 2 916-617-4584 Woodland M Kimberly McKinney A1, A2 5 530-661-5849
Yolo County C Tom Haynes A1, A2 6 530-666-8162
* Yorba Linda Water District S David Christian A1 3 714-961-7140 C - California County
S - California Special District or Other Government
T - Texas Municipality (City)
A1 - Audit Under Government Auditing Standards
A2 - Single Audit Act Engagement
* Participated in the GFOA Award Programs and has received or anticipates receiving outstanding awards Client Codes:

M - California Municipality (City)
Service Codes:

Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
Professional Auditing Services
38 www.lslcpas.com | 38
Appendix D – Sample Reports
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of X, State Y
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of X, State Y (the “City”), as of and for the year ended _________, 20X1, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each ma jor fund, and the aggregate remaining fund information of the City, as of __________, 20X1, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our 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 General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibil ities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently kn own information that may raise substantial doubt shortly thereafter.

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 39
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 To the Honorable Mayor and Members of the City Council
City of __________, California
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exis ts. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis , budgetary comparison information , and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 40
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 To the Honorable Mayor and Members of the City Council
City of __________, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such inform ation directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated _________, 20X1, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of in ternal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That repor t is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
__________, 20X1

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 41
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REP

ORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of X, State Y
We have audited, in accordance with the 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 General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of X, State Y (the “City”), as of and for the year ended _________, 20X1, and the related notes to the financial statements, which collectively comprise t he City’s basic financial statements, and have issued our report thereon dated ___________, 20X1.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statemen ts, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatem ent of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal co ntrol that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assur ance about whether City’s financial st atements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a di rect and material effect on the financial statements.

However, providing an opinion on compliance with thos e provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 42
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 To the Honorable Mayo
r and Members of the City Council
City of X, State Y
Purpose of This Report
The purp
ose of this report is solely to describe the sc ope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entit y’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
_____________, 20X1

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 43
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

LSLCPAS.COM
[Date]
[Identify the body or individ
ual(s) charged with governance.]
[Name and Address of Go
vernmental Unit]
We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major f und, and the aggregate remaining fund information of [Name of Governmental Unit] , (the “City”) for the year ended [Date] . Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated [Date] .Professional standards also require that we comm unicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Manag
ement is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by [Name of Governmental Unit] are descri bed in Note [X] to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during [Year] . We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recogni zed in the financial statements in the proper period.

Accounting estimates are an integral part of the finan cial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ si gnificantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates of the pension, other postemployment benefits, and self-insured claims liabilities are based on actuarial valuations. We evaluated the methods, assumptions, and data used to develop the pension, other postemployment benefits, and self-insured claims liabilities in determining that it is reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We are pleased to report that no such misstatements were identified during the course of our audit.

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 44
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 To the Honorable Mayo
r and Members of the City Council
City of X, State Y
Disagreements with Management
For purpos
es of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have req
uested certain representations from management that are included in the management representation letter dated [Date of Management Representation Letter] .

Management Consultations with Other Independent Accountants In some case
s, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our profe ssional standards require the consulting acco untant to check with us to determine that the consultant has all the relevant facts. To our knowledge, ther e were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City ’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certai
n limited procedures to management’s discussion and analysis, the budgetary comparison schedules for the general fund and major special revenue funds, and the required pension and other postemployment benefits schedules, which are (is) require d supplementary informati on (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowle dge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introdu
ctory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financi al statements, and accordingly, we do not express an opinion or provide any assurance on it.

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 45
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 To the Honorable Mayor and Members of the City Co
uncil
City of X, State Y
Future GASB Pronouncements
The following Government Accounting Standards Board (GASB) pronouncement s will be effective for the following
fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal Year 2025-2026
GASB Statement No. 103, Financial Reporting Model Improvements.

GASB Statement No. 104, Disclosure of Certain Capital Assets.

Future Projects
Comprehensive Project, Revenue and Expense Recognition.

Major Project, Going Concern Uncertainties and Severe Financial Stress.

Major Project, Infrastructure Assets.

Practice Issue, Classification of Nonfinancial Assets.

Practice Issue, Risks and Uncertainties Disclosures.

Practice Issue, Subsequent Events.

Restriction on Use
This information is intended solely
for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,

LSL, LLP

EXAMPLE
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 46
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
Professional Auditing Services
1 www.lslcpas.com | 1
A. Name of Firm

LSL, LLP
B. Proposal Certification

AUTHORIZED REPRESENTATIVE
Ryan Domino is the designated Engag ement Partner who will serve as the primary point of contact for this proposal. He is empowered and authorized to make representations on behalf of our firm, submit the bid, and can be reached directly by phone at (714) 592-1814 or by email at [email protected]. Please contact Ryan for any clarificat ion or contract negotiations related to this proposal.

C. Total All-Inclusive Maximum Price by Report
Original Copy

EXHIBIT B
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 City of Bakersfield
Professional Auditing Services
2 www.lslcpas.com | 2
Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for Each
Provided on the following pages.

HOURLY RATES
The quoted fees above include a standard 5% increase after two years.

MANNER OF PAYMENT
LSL's offers two manners of payment to our government audit cli ents. The first manner of payment is an upfront payment for the services to be rendered, less a 10% retention. This payment is due upon execution of the professional services agreement or the engagement letter.

We apply an additional 5% discount to the overall audit fee for up-front payments. The second method of payment is that 90% of the total fees are invoiced in equal, monthly installment payments commencing from the mont h the professional services ag reement or engagement letter is executed and scheduled to conclude December each year . If the installment payment method is selected, if the scope of work is concluded earlier t han December of each year, the remaining balance becomes due and payable upon completion of th e annual scope of work.

Under both methods, the final 10% retention is due and payable upon completion of the scope of work. The peripheral reports ( e.g., the Single Audit and App ropriations Limit) are invoiced upon completion of the scope of work. Invoices will not be prov ided on a more than monthly interval.

Position
2025-26 2026-27 2027-28
Partner $590 $590 $608
Director $465 $465 $479
Senior Manager $410 $410 $423
Manager $350 $350 $361
Supervisor $315 $315 $325
Senior Accountant $250 $250 $258
Experienced Staff $210 $210 $217
Staff Accountant $190 $190 $196
Clerical $110 $110 $114
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 38 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2024-2025 FINANCIAL STATEMENTS
Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________
Managers _________
Supervisory
Staff _________
Staff _________
Other (specify): _________
Subtotal
Total for services
Described in Section
II E of the RFP
(Detail on subsequent
pages)
Out-of-pocket expenses:

Meals and lodging
Transportation
Other (specify):

Total all-inclusive maximum price for 2025 audit = $
Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price.
590
350
315
190
110
Clerical
29 94
160
325
17 590
350
315
190
110
$17,110
$32,900
$50,400
$61,750
$1,870
$164,030
included
included
$106,630 ( 35% discount)
Any additional services
requested by the City will be
discussed in advance and, if
approved, performed at LSL 's
proposed hourly rates
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 3
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 39 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2024-2025 FINANCIAL STATEMENTS:

COMBINING SCHEDULE - ALL SERVICES

DESCRIBED IN RFP SECTION II E
Nature of Service To Be Provided Schedule Total Price

EACH SERVICE DESCRIBED IN RFP SECTION II E SHOULD BE SUPPORTED BY AN INDIVIDUAL SCHEDULE IN THE FORMAT PROVIDED ON PAGE 3 OF THIS APPENDIX.

Any additional services
requested by the City will be
discussed in advance and, if
approved, performed at LSL 's
proposed hourly rates
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 4
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 41 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2025-2026 FINANCIAL STATEMENTS
Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________
Managers _________
Supervisory
Staff _________
Staff _________
Other (specify): _________
Subtotal
Total for services
Described in Section
II E of the RFP
(Detail on subsequent
pages)
Out-of-pocket expenses:

Meals and lodging
Transportation
Other (specify):

Total all-inclusive maximum price for 2026 audit = $
Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price.
29 94
160
325
17 590
350
315
190
110
590
350
315
190
110
$17,110
$32,900
$50,400
$61,750
$1,870
$164,030
included
included
$106,630
35% discount
Any additional services
requested by the City will be
discussed in advance and, if
approved, performed at LSL 's
proposed hourly rates
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 5
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 42 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2025-2026 FINANCIAL STATEMENTS:

COMBINING SCHEDULE - ALL SERVICES

DESCRIBED IN RFP SECTION II E
Nature of Service To Be Provided Schedule Total Price

EACH SERVICE DESCRIBED IN RFP SECTION II E SHOULD BE SUPPORTED BY AN INDIVIDUAL SCHEDULE IN THE FORMAT PROVIDED ON PAGE 3 OF THIS APPENDIX.

Any additional services
requested by the City will be
discussed in advance and, if
approved, performed at LSL 's
proposed hourly rates
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 6
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 44 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2026-2027 FINANCIAL STATEMENTS
Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________
Managers _________
Supervisory
Staff _________
Staff _________
Other (specify): _________
Subtotal
Total for services
Described in Section
II E of the RFP
(Detail on subsequent
pages)
Out-of-pocket expenses:

Meals and lodging
Transportation
Other (specify):

Total all-inclusive maximum price for 2027 audit = $
Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price.

Any additional services
requested by the City will be
discussed in advance and, if
approved, performed at LSL 's
proposed hourly rates
29 94
160
325
17 608
361
325
196
114
608
361
325
196
114
$17,632
$33,934
$52,000
$63,700
$1,938
$169,204
included
included
109,820 (35% discount)
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 7
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 45 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE 2026-2027 FINANCIAL STATEMENTS:

COMBINING SCHEDULE - ALL SERVICES

DESCRIBED IN RFP SECTION II E
Nature of Service To Be Provided Schedule Total Price

EACH SERVICE DESCRIBED IN RFP SECTION II E SHOULD BE SUPPORTED BY AN INDIVIDUAL SCHEDULE IN THE FORMAT PROVIDED ON PAGE 3 OF THIS APPENDIX.

Any additional services
requested by the City will be
discussed in advance and, if
approved, performed at LSL 's
proposed hourly rates
City of Bakersfield
Professional Auditing Services
www.lslcpas.com | 8
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

REQUEST FOR PROPOSALS
FOR

PROFESSIONAL AUDITING SERVICES
March 2, 2026
1600 Truxtun Avenue
Bakersfield, CA 93301

EXHIBIT C
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

City of Bakersfield

REQUEST FOR PROPOSALS

TABLE OF CONTENTS

I. INTRODUCTION

A. General Information
B. Term of Engagement

II. NATURE OF SERVICES REQUIRED

A. General
B. Scope of Work to be Performed
C. Auditing Standards to be Followed
D. Reports to be Issued
E. Special Considerations
F. Working Paper Retention and Access to Working
Papers

III. DESCRIPTION OF THE GOVERNMENT

A. Name and Telephone Number of Contact
Persons/Organizational Chart/Location of Offices
B. Background Information
C. Fund Structure
D. Budgetary Basis of Accounting
E. Pension Plans
F. Component Units
G. Joint Ventures
H. Magnitude of Finance Operations
I. Computer Systems
J. Availability of Prior Reports and Working Papers

IV. TIME REQUIREMENTS

A. Proposal Calendar
B. Notification and Agreement Dates
C. Date Audit May Commence
D. Schedule for the 2022-2023 Fiscal Year Audit

1. Interim Work
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2. Detail Audit Plan and Programs

3. Fieldwork

4. Draft Reports

E. Entrance Conferences, Progress Reporting and Exit
Conferences
F. Date Final Report is Due

V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT

PREPARATION

A. Finance Department and Clerical Assistance
B. Information Technology Service (IT) Assistance
C. Statements and Schedules to be Prepared by the Staff of the City of Bakersfield
D. Work Area, Telephone, Photocopying and FAX
Machines
E. Report Preparation

VI. PROPOSAL REQUIREMENTS

A. General Requirements

1. Inquiries

2. Submission of Proposals

B. Technical Proposal

1. General Requirements

2. Independence

3. License to Practice in California

4. Firm Qualifications and Experience

5. Partner, Supervisory and Staff Qualifications and
Experience

6. Prior Engagements with the City of Bakersfield

7. Similar Engagements with Other Government
Entities

8. Specific Audit Approach

9. Identification of Anticipated Potential Audit
Problems

10. Report Format

C. Sealed Dollar Cost Bid
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1. Total All-Inclusive Maximum Price

2. Rates by Partner, Specialist, Supervisory and Staff
Level Times Hours Anticipated for Each

3. Out-of-pocket Expenses in the Total All-inclusive
Maximum Price and Reimbursement Rates

4. Rates for Additional Professional Services

5. Manner of Payment

VII. EVALUATION PROCEDURES

A. Audit Committee
B. Review of Proposals
C. Evaluation Criteria

1. Mandatory Elements

2. Technical Qualifications

3. Price

D. Final Selection
E. Right to Reject Proposals

APPENDICES

A. Management Letter for June 30, 2023 audit

B. Organizational Chart

C. List of Key Personnel, Office Locations and Telephone Numbers

D. Proposing Firm Guarantees

E. Proposing Firm Warranties

F. Format for Schedule of Professional Fees and Expenses to Support the
Total All-Inclusive Maximum Price

G. Copy of City Policy Regarding Selection of Auditors
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5 Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

6 City of Bakersfield

REQUEST FOR PROPOSALS

I. INTRODUCTION

A. General Information

The City of Bakersfield is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending June 30, 2025, 2026 and 2027. These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the General Accountability Office's (GAO) Government Auditing Standards (2024) issued by the Comptroller General of the United States , the provisions of the federal Single Audit Act of 1984 (as amended in 1996) and the associated requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

There is no expressed or implied obligation for the City of Bakersfield to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

To be considered, five (5) copies of a proposal must be addressed to Tera Loveless-Ortiz and RECEIVED at the Finance Department at 1600 Truxtun Avenue, Bakersfield, CA 93301 by 5:00 p.m. on March 31, 2026. The City of Bakersfield reserves the right to reject any or all proposals submitted.

Proposals submitted will be evaluated by City staff with recommendation for the City Council. During the evaluation process, the Audit Committee and the City of Bakersfield reserve the right, where it may serve the City of Bakersfield's best interest, to request additional information or clarifications from propos ing firms, or to allow corrections of errors or omissions.

The City of Bakersfield reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

7 submitted and confirmed in the contract between the City of Bakersfield and the firm selected.

It is anticipated the selection of a firm will be completed by April 10, 2026. Following the notification of the selected firm it is expected a contract will be in final form with insurance certificates on file by April 29, 2026 with City Council approval of the contract scheduled for May 13, 2026.

B. Term of Engagement

A three (3) year commitment is contemplated, subject to the annual review and recommendation of City staff, the satisfactory negotiation of terms (including a price acceptable to both the City of Bakersfield and the selected firm), the concurrence of the City Council and the annual availability of an appropriation. If any of the above criteria cannot be satisfied, the City retains the right to give a thirty (30) day cancellation notice.

II. NATURE OF SERVICES REQUIRED

A. General

The City of Bakersfield is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal year ending June 30, 2025, 2026 and 2027. These audits are to be performed in accordance with the provisions contained in this request for proposals.

B. Scope of Work to be Performed

The City of Bakersfield desires the auditor to express an opinion on the fair presentation of its government-wide and fund financial statements in conformity with generally accepted accounting principles. Also refer to appendix ‘G’ for Council policy on audit reporting.

Full Scope:

The City of Bakersfield desires the auditor to express an opinion on the fair presentation of its basic financial statements, but also the fair presentation of the financial statements of individual funds and component units, in conformity with generally accepted
accounting principals and government auditing standards . If applicable, the auditor is to provide an “in -relation-to” report on Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

8 any supporting schedules based on the auditing procedures applied during the audit of the basic financial stat ements and the individual fund financial statements , component units and other schedules. The auditor is not required to audit the statistical section of the report.

C. Auditing Standards To Be Followed

To meet the requirements of this request for proposals, the audit shall be performed in accordance with generally accepting auditing standards as set forth by the American Institute of Certified Public Accountants, the standards for financial audits set forth in the Government Auditing Standards (2024) issued by the Comptroller General of the United States , the provisions of the federal Single Audit Act of 1984) and the associated requirements of the Uniform Guidance.

D. Reports to be Issued

Upon completion of the audit for each fiscal year the auditor shall issue the following reports:

1. An audit opinion on the fair presentation of the City’s Annual Comprehensive Financial Report (ACFR) in conformity with generally accepted accounting principles. This opinion should be compliant with all provisions of GASB pronouncements.

2. Conduct an Agreed -Upon Procedures compliance audit to account for tax revenue and expenditures made in relation to the Measure N, Public Safety and Vital Services (PSVS) tax and to ensure consistency with spending priorities as required by Section

3.38.090 of Ordinance 4958.

3. All reports required for compliance with the provisions of the federal Single Audit Act of 1984 and the associated requirements of the Uniform Guidance.

4. A report of Agreed -Upon Procedures relative to the City’s calculation of its Appropriation Limit in accordance with the Article XIIIB Appropriations Limit Uniform Guidelines and as mandated by the California Constitution.

5. A report of Agreed -Upon Procedures relative to the City’s Sub - regional Wastewater Management Plan.

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9 6. An audit report for the Bakersfield Public Finance Authority.

Please note, for past several fiscal years this report has not been required due to lack of activity . However, the activation of the PFA is anticipated within the next five years.

In the required report[s] on compliance and 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. 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 compliance and internal controls.

The report on compliance and internal controls shall include all material instances of noncompliance. All non -material instances of noncompliance shall be reported in a separate management letter, which shall be referred to in the report on compliance and internal controls.

Irregularities and illegal acts . Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware of to the following parties:

Christian Clegg, City Manager
Virginia Gennaro, City Attorney
Randy McKeegan, Finance Director

Reporting to the Finance, Economic Development & Jobs
Committee. Auditors shall assure themselves that the City of Bakersfield is informed of each of the following:

1. The auditor's responsibility under generally accepted auditing standards

2. Significant accounting policies

3. Management judgments and accounting estimates

4. Significant audit adjustments
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10 5. Other information in documents containing audited financial statements

6. Disagreements with management

7. Management consultation with other accountants

8. Major issues discussed with management prior to retention

9. Difficulties encountered in performing the audit

E. Special Considerations

1. The City of Bakersfield will send its annual comprehensive financial report to the Government Finance Officers
Association of the United States and Canada for review in their Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will be required to provide special assistance to the City of
Bakersfield to meet the requirements of that program.

2. The City of Bakersfield has determined that the State Department of Transportation will function as the cognizant agency in accordance with the provisions of the Single Audit Act of 1984 and the associated requirements of the Uniform Guidance.

3. The City of Bakersfield currently anticipates it will prepare one or more official statements in connection with the sale of debt securities which will contain the basic financial
statements and the auditor's report thereon. The auditor shall be required, if requested by the fiscal advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor and any necessary "comfort letters."

4. The City may also require special consulting services such as federal tax advice regarding the payroll of the City. Any charge for such services should be negotiated separately.

5 The Schedule of Expenditures of Federal Awards (Single Audit) and related auditor's report, as well as the reports on compliance and internal controls are not to be included in the annual comprehensive financial report, but are to be issued separately.

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11 6 A Management Letter listing of findings and other weaknesses from the City of Bakersfield's most recent financial statement audit, as well as a list of findings from internal audits conducted during the most recent fiscal period to be
audited, are attached to this document (Appendix A). There were no reportable findings during the 20 22-23 fiscal year audit. Fiscal year 2023-24 is still being completed.

7. The City is currently configuring a new Enterprise R esource Planning (ERP) software. Currently the City has gone live with the accounting and budget modules. Accompanying this
software change will be another system to replace the
current utility billing (to VertexOne) so that we can achieve a modern, best in breed software package. This is anticipated to go live July 1, 2026, Human Capital Management (HCM), Time and Labor, and Payroll are anticipated to going live January of 202 7. By updating to a modern system, the City anticipates that many of our documented current workflows and systems will change.

F. Working Paper Retention and Access to Working Papers

All working papers and reports must be retained, at the auditor's expense, for a minimum of five (5) years, unless the firm is notified in writing by the City of Bakersfield of the need to extend the retention period. The auditor will be required to make working papers available, only upon written request by the City’s Finance Director.

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.

III. DESCRIPTION OF THE GOVERNMENT

A. Name and Telephone Number of Contacts

The auditor's principal contact with the City of Bakersfield will be Tera Loveless -Ortiz, Assistant Finance Director, or a designated representative, who will coordinate the assistance to be provided by the City of Bakersfield to the auditor. An organizational chart (Appendix B) and a list of key personnel with th eir contact information (Appendix C) are attached.

B. Background Information

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12 The City of Bakersfield serves an area of 152 square miles with a population of approximately 417,000. The City of Bakersfield's fiscal year begins on July 1 and ends on June 30.

The City of Bakersfield provides the following services to its citizens:

1. Fire and Police Protection

2. Streets and Infrastructure Maintenance

3. Planning and Community Development

4. Parks and Recreation Services

5. Water Utility

6. Municipal Airpark – General Aviation

7. Refuse Collection

8. Wastewater Treatment

The City of Bakersfield has a total personnel cost of approximately $ $360 million covering a compliment of 2,043 employees.

The City of Bakersfield operates under a Council -Manager form of government and is organized into twelve (12) departments and agencies. The accounting and financial reporting functions of the City of Bakersfield are centralized.

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13 C. Fund Structure

The City of Bakersfield currently uses the following fund types and account groups in its financial reporting:

Fund Type

Number of Funds
Number of Funds
with Legally
Adopted
Annual Budgets

General fund 1 1
Special Revenue 8 8
Debt Service 1 1
Capital Project 4 4
Permanent 0 0
Enterprise 6 6
Internal Service 2 2
Pension Trust 2 0
Investment Trust 0 0
Private Purpose Trust 2 0
Custodial 1 1

D. Budgetary Basis of Accounting

The City of Bakersfield prepares its budgets on a basis consistent with generally accepted accounting principles.

E. Pension Plans

The City of Bakersfield participates in the following pension plans:

State of California - Public Employee Retirement System (PERS) - (multiple employer defined benefit pension plan)

Actuarial services for these plans are provided by State of California (PERS).

F. Component Units

The City of Bakersfield is defined, for financial reporting purposes, in conformity with the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards, Section 2100. Using these criteria, component units are included in the City of Bakersfield's financial statements.

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14 The successful audit firm will be expected to provide an opinion on each Component Unit Financial Statement, as well as Compliance Reports.

The component units are to be audited as part of the audit of the City of Bakersfield's financial statements. Costs of audit services should be segmented to allow for inclusion or removal during the two year period.

G. Joint Ventures

The City of Bakersfield does participate in joint ventures with other governments.

NAME OF NAME OF OTHER TYPE OF

JOINT VENTURE PARTICIPATING GOVERNMENT(S) SERVICES PROVIDED

Authority for City of: Self Insurance for
California Cities Anaheim liability and Joint
Excess Liability Burbank Purchase for
(ACCEL) Modesto Workers Insurance
Monterey
Mountain View
Ontario
Palo Alto
Salinas
Santa Barbara
Santa Cruz
Santa Monica
Visalia
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15 H. Magnitude of Finance Operations

The finance department is headed by Randy McKeegan, Finance Director and consists of thirty (35) employees. The principal functions performed and the number of employees assigned to each are as follows:

Function Number of Employees

Administration 2
Accounting 16
Budget 2
ERP 3
Treasury 9
Purchasing 3

I. Computer Systems

The City of Bakersfield is currently working with a hybrid system, operating partially in a prior financial accounting system and partially in a new one. In April of 2024, the City moved away from an IBM AS400 bases system called Naviline to Oracle Cloud for ERP and Budgeting. HCM, Time and Labor, and Payroll are still currently in Naviline and are expected to transition to Oracle January 2027.

VertexOne will replace our Utility Billing module while Clarity will replace our Community Development module which is currently in Naviline.

J. Availability of Prior Audit Reports and Working Papers

Interested propos ing firms who wish to review prior years' audit reports and management letters should contact Tera Loveless-Ortiz at (661) 326 -3475. The City of Bakersfield will use its best efforts to make prior audit reports and supporting working papers available to proposing firms to aid their response to this request for proposals.

IV. TIME REQUIREMENTS

A. Proposal Calendar

The following is a list of key dates up to and including the date proposals are due to be submitted:

Request for proposal issued March 1, 2026
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16 Due date for proposals March, 31, 2026

B. Notification and Agreement Dates

Recommendation/Interviews with April 10, 2026
Finance Department Staff (if needed) and selection

Deadline for signed contract and April 29, 2026
Insurance certificates

Agreement date – Council Approval May 13, 2026

C. Date Audit May Commence

Interim work may begin as soon as the contract is fully executed by the City.

The City will have all records ready for audit and all management personnel available to meet Upon execution of the agreement.

D. Schedule for the 2024-25 Fiscal Year Audit (A separate time schedule will be developed for audits of fiscal year 2026 & 2027) The firm selected will have the option to combine efforts for fiscal year 2025 and 2026. Schedules, meetings, and fieldwork may happen simultaneously as long as deadlines are adhered to for both fiscal years.

Each of the following should be completed by the auditor no later than the dates indicated.

1. Interim Work

The auditor shall complete interim work by September 1, 2026. (immediately upon execution of agreement for fiscal year 2025)

2. Detailed Audit Plan

The auditor shall provide City of Bakersfield both a detailed audit plan and a list of all schedules to be prepared by the City of Bakersfield upon execution of the agreement for fiscal year 2025. (Early August 2026 & 2027)

3. Fieldwork
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17 The auditor shall complete all fieldwork by July 31 st for fiscal year 2025. (Early November, 2026 & 2027)

4. Draft Reports

The auditor shall have drafts of the audit report[s] and recommendations to management available for review by
the Finance Director by August 31st for fiscal year 2025. ( Mid- December 2026 & 2027)

E. Entrance Conferences, Progress Reporting and Exit Conferences At a minimum, the following conferences should be held by the dates indicated on the schedule:

Entrance conference with Finance Director and Asst. Finance Director by May 29, 2026. (Mid -August 2026 & 2027)

- The purpose of this meeting
will be to discuss prior
audit problems and the
interim work to be performed.

This meeting will also be used
to establish overall liaison
for the audit and to make
arrangements for work space and
other needs of the auditor

Progress conference with Finance Director
and Assistant Finance Director by J une 26, 2026 (Early September 2026 & 2027)

- The purpose of this meeting
will be to summarize the results of
the preliminary review and to
identify the key internal controls
or other matters to be tested

Entrance conference with Finance
Director to commence year-end
audit work by July 31, 2026 (Mid-October 2026 & 2027)

Exit conference with Finance Director
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18 and department heads of key
offices or program s by A ugust 31, 2026 ( Mid-November, 202 6 & 2027)

- The purpose of this meeting
will be to summarize the
results of the field work
and to review significant
findings
In addition, the auditor shall provide written reports on the progress of the audit on the following dates: September 11, 2026 (Mid- November 2026 & 2027)

F. Date Final Report is Due ( Annual Comprehensive Financial Report Only)

The City Finance Department shall prepare draft financial statements, related notes and all required supplementary schedules (and statistical data) by September 30, 2026 (Early November 2026 & 2027). During the period of September 30 to October 15, 2026, ( Early November 2026 & 2027 to Mid- December 2026/2027) the auditor should be available for any meetings that may be necessary to discuss the audit reports.

The auditor shall provide all recommendations, revisions and suggestions for improvement to the Finance Director by
October 15, 2026 ( Mid-December 2026 & 2027). Once all issues for discussion are resolved, the auditor will be given a final draft of the report. The final report will be delivered to the printer by the City on or about November 15, 2026 ( Early January 2027 & 2028). The printed A CFR will be submitted to the City Council for their review and acceptance at the next available Council meeting date.

The Single Audit report and any other remaining reports are to be completed by December 15, 2026 (End of January 2027 & 2028).

V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION

A. Finance Department and Clerical Assistance

The finance department staff and management personnel
responsible will be available during the audit to assist the firm by providing information, documentation and explanations. The preparation of confirmations will be the responsibility of the City of Bakersfield. City staff will prepare trial balances and other Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

19 supporting schedules that are to remain the property of the City but will be available to auditors.

B. Technology Services (TS) Assistance

The Technology Services staff, equipment and generalized user software have not been used in the past for auditing purposes.

However, the City is willing to commit a reasonable amount of computer time to assist an audit program. This assistance may vary depending on computer time available. TS personnel will also be available to provide systems documentation and explanations.

C. Statements and Schedules to be prepared by the Staff of the City of Bakersfield
The staff of City of Bakersfield will prepare the following statements and schedules for the auditor by the dates indicated:

Statement or Schedule Date

Trial Balance:

All Funds October 16

Accounts Payable Reconciliation October 16
Property Tax Reconciliation October 16
Compensated Absences October 16
Federal Financial Assistance October 16
Interest Allocation October 16
Bank Transfers October 16
Appropriations Reconciliation October 16
Government Wide Statements November 17
Statistical Schedules November 17
Statements for fiscal year 2025 will be available by September 2026 D. Work Area, Telephones, Photocopying and FAX Machines

The City of Bakersfield will provide the auditor with reasonable workspace, desks and chairs. The City Finance Department uses a “flex-time” schedule for its employees; therefore, the Finance offices may be available for 9-hour workdays, from 7:30 a.m. to 5:30 p.m. (except for Fridays, which would be 5:00 p.m.) . The auditor will also be provided with access to photocopying facilities and FAX machines.

E. Report Preparation

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20 Financial statement preparation and printing shall be the responsibility of the City of Bakersfield. The auditor will be responsible as editing and proofing the final draft ACFR.

VI. PROPOSAL REQUIREMENTS

A. General Requirements

1. Inquiries

Inquiries concerning the request for proposals and the subject of the request for proposals must be made to either:

Tera Loveless-Ortiz, Assistant Finance Director
1600 Truxtun Avenue
Bakersfield, CA 93301
(661) 326-3475

or Randy McKeegan, Finance Director
1600 Truxtun Avenue
Bakersfield, CA 93301
(661) 326-3030

CONTACT WITH PERSONNEL OF THE CITY OF BAKERSFIELD OTHER

THAN TERA LOVELESS-ORTIZ, OR RANDY MCKEEGAN, REGARDING THIS

REQUEST FOR PROPOSALS MAY BE GROUNDS FOR ELIMINATION FROM THE SELECTION PROCESS.

2. Submission of Proposals

The following material is required to be received by March 31, 2026 for a proposing firm to be considered:

a. A master copy (so marked) of a Technical
Proposal and four (4) copies to include the
following:

i. Title Page

Title page showing the request for proposals
subject; the firm's name; the name, address and
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21 telephone number of the contact person; and
the date of the proposal.

ii. Table of Contents

iii. Transmittal Letter

A signed letter of transmittal briefly stating the
proposing firm's understanding of the work to be
done, the commitment to perform the work
within the time period, a statement why the firm
believes itself to be best qualified to perform the
engagement and a statement that the proposal
is a firm and irrevocable offer for one hundred
and twenty days (120) days.

iv. Detailed Proposal

The detailed proposal should follow the order set
forth in Section VI B of this request for proposals.

v. Executed copies of Propos ing Firm
Guarantees and Proposing Firm Warranties,
attached to this request for proposal
(Appendix D and Appendix E)

b. The propos ing firm shall submit one (1) original and one ( 1) copy of a dollar cost bid in a separate
sealed envelope marked as follows:

SEALED DOLLAR COST BID PROPOSAL FOR
City of Bakersfield
FOR

PROFESSIONAL AUDITING SERVICES
2024-25, 2025-26 & 2026-27

c. Proposing firms should send the completed
proposal, with the sealed dollar cost bid in a
separate enclosed envelope, to the following
address:

City of Bakersfield
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22 Finance Dept. – Attn: Tera Loveless-Ortiz
1600 Truxtun Avenue
Bakersfield, CA 93301

B. Technical Proposal

1. General Requirements

The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the City of Bakersfield in conformity with the requirements of this request for proposals. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the request for proposals
requirements.

THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS
INCLUDED IN THE TECHNICAL PROPOSAL DOCUMENT.

The Technical Proposal should address all the points outlined in the request for proposals (excluding any cost information which should only be included in the sealed dollar cost bid).

The Proposal should be prepared simply and economically, providing a straightforward, concise description of the proposing firm’s capabilities to satisfy the requirements of the request for proposals. While additional data may be
presented, the following subjects, items Nos. 2 through 10 , must be included. They represent the criteria against which the proposal will be evaluated.

2. Independence

The firm should provide an affirmative statement that it is independent of the City of Bakersfield as defined by the U.S.

General Accounting Office's Government Auditing Standards (1994)]

The firm also should provide an affirmative statement that it is independent of all of the component units of the City of Bakersfield as defined by those same standards.

The firm should also list and describe the firm's (or proposed subcontractors') professional relationships involving the City of Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

23 Bakersfield or any of its component units or primary government for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit.

In addition, the firm shall give the City of Bakersfield written notice of any professional relationships entered into during the period of this agreement.

3. License to Practice in California

An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in California.

4. Firm Qualifications and Experience

The proposing firm should state the size of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement is to be performed and the number and nature of the professional staff to be employed in this engagement on a full -time basis and the number and nature of the staff to be so employed on a part - time basis.

If the propos ing firm is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve as the principal auditor should be noted, if
applicable.

The firm is also required to submit a copy of the report on its most recent external quality control review, with a statement whether that quality control review included a review of specific government engagements.

The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.

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24 5. Partner, Supervisory and Staff Qualifications and Experience

Identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement.

Indicate whether each such person is registered or licensed to practice as a certified public accountant in California.

Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit.

Provide as much information as possible regarding the
number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. Indicate how the quality of staff over the term of the agreement will be assured.

The proposing firm should identify the extent to which staff to be assigned to the audit reflect the City of Bakersfield's commitment to Affirmative Action.

Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These
personnel may also be changed for other reasons with the express prior written permission of the City of Bakersfield.

However, in either case, the City of Bakersfield retains the right to approve or reject replacements.

Consultants and firm specialists mentioned in response to this request for proposal can only be changed with the express prior written permission of the City of Bakersfield, which retains the right to approve or reject replacements.

Other audit personnel may be changed at the discretion of the propos ing firm, provided that replacements have
substantially the same or better qualifications or experience.

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25 6. Prior Engagements with the City of Bakersfield

List separately all engagements within the last five years, ranked on the basis of total staff hours, for the City of Bakersfield by type of engagement (i.e., audit, management advisory services, other). Indicate the scope of work, date, engagement partners, total hours, the location of the firm's office from which the engagement was performed, and the name and telephone number of the principal client contact.

7. Similar Engagements with Other Government Entities

For the firm's office that will be assigned responsibility for the audit, list the most significant engagements (maximum - 5) performed in the last five years that are similar to the engagement described in this request for proposal. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement
partners, total hours, and the name and telephone number of the principal client contact.

8. Specific Audit Approach

The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposal. In developing the work plan, reference should be made to such sources of information as City of Bakersfield's budget and related materials, organizational charts, manuals and programs, and financial and other management
information systems.

Proposing firms will be required to provide the following information on their audit approach:

a. Proposed segmentation of the engagement

b. Level of staff and number of hours to be assigned
to each proposed segment of the engagement

NO DOLLARS SHOULD BE INCLUDED IN THE

TECHNICAL PROPOSAL

c. Sample size and the extent to which statistical
sampling is to be used in the engagement
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26 d. Extent of use of EDP software in the engagement

e. Type and extent of analytical procedures to be
used in the engagement

f. Approach to be taken to gain and document an
understanding of the City of Bakersfield's internal
control structure

g. Approach to be taken in determining laws and
regulations that will be subject to audit test work

h. Approach to be taken in drawing audit samples
for purposes of tests of compliance.

9. Identification of Anticipated Potential Audit Problems

The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the City of Bakersfield.

10. Report Format

The proposal should include sample formats for required reports.

NO DOLLARS SHOULD BE INCLUDED IN THE TECHNICAL

PROPOSAL

C. Sealed Dollar Cost Bid

1. Total All-Inclusive Maximum Price

The sealed dollar cost bid should contain all pricing
information relative to performing the audit engagement as described in this request for proposal. 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 of Bakersfield will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal.

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27 The first page of the sealed dollar cost bid 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 an
agreement with the City of Bakersfield.

c. A Total All -Inclusive Maximum Price for the 20 25,
2026 and 2027 engagement.

Financial Statements Full Scope .

City of Bakersfield -
Annual Comprehensive
Financial Report and
Management Letter $__________

Public Safety and Vital
Service Compliance audit $__________

Public Finance Authority -
Annual Financial Report $__________

Compliance Report

Single Audit $__________

Wastewater Management
Plan $__________

2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for Each

The second page of the sealed dollar cost bid should include a schedule of professional fees and expenses, presented in the format provided i n the attachment (Appendix F ) that supports the total all -inclusive maximum price. The cost of special services described in Section II E of this request for Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

28 proposal should be disclosed as separate components of the total all-inclusive maximum price.

3. Out-of-pocket Expenses Included in the Total All -inclusive Maximum Price and Reimbursement Rates

All estimated out -of-pocket expenses to be reimbursed
should be presented on the second page of the sealed dollar cost bid in the format provided in the attachment (Appendix F). All expense reimbursements will be charged against the total all-inclusive maximum price submitted by the firm.

4. Rates for Additional Professional Services

If it should become necessary for City of Bakersfield to request the auditor to render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the agreement between City of Bakersfield
and the firm. Any such additional work agreed to between City of Bakersfield and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid.

5. Manner of Payment

Progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of- pocket expenses incurred in accordance with the firm's dollar cost bid proposal. Interim billing shall cover a period of not less than a calendar month. Ten percent (10%) will be
withheld from each billing pending delivery of the firm's final reports.

VII. EVALUATION PROCEDURES

A. Audit Committee

Proposals submitted will be evaluated by the Finance Director, the Assistant Finance Director, and the City Treasurer.

B. Review of Proposals

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29 A point formula will be used during the review process to score proposals. A firm with an unacceptably low technical score will be eliminated from further consideration.

After the composite technical score for each firm has been established, the sealed dollar cost bid will be opened and additional points will be added to the technical score based on the price bid. The maximum score for price will be assigned to the firm offering the lowest total all -inclusive maximum price. Appropriate fractional scores will be assigned to other proposing firms.

The City of Bakersfield reserves the right to retain all proposals submitted and use any idea in a proposal regardless of whether that proposal is selected.

C. Evaluation Criteria

Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical qualifications and price. The following represent the principal selection criteria which will be considered during the evaluation process.

1. Mandatory Elements

a. The audit firm is independent and licensed to practice in California

b. The firm has no conflict of interest with regard to any other work performed by the firm for the City of
Bakersfield

c. The firm adheres to the instructions in this request for proposal on preparing and submitting the proposal

d. The firm submits a copy of its last external quality control review report and the firm has a record of
quality audit work.

e. The audit firm’s professional personnel have received adequate continuing professional education within the
preceding two years.

2. Technical Quality: (Maximum Points - 70)

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30 a. Expertise and Experience (Maximum Points - 40)

(1) The firm's past experience and performance on
comparable government engagements (with
special emphasis on City audits).

(2) The quality of the firm's professional personnel to be assigned to the engagement and the quality
of the firm's management support personnel to
be available for technical consultation

(3) Support services available (i.e. actuarial, bond
arbitrage, refinancing, etc.)

b. Audit Approach (Maximum Points - 30)

(1) Adequacy of proposed staffing plan for various
segments of the engagement

(2) Adequacy of sampling techniques

(3) Adequacy of analytical procedures

3. Price: (Maximum Points - 30)

COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF

AN AUDIT FIRM

D. Final Selection

The City Council will select a firm based upon the recommendation of City Staff and/or the Budget and Finance Committee.

It is anticipated that a firm will be selected by April 10, 2026 .

Following noti fication of the firm selected, it is expected an agreement will be in final form with insurance certificates on file by April 29, 206 , with City Council approval scheduled for the May 13, 2026 meeting date.

E. Right to Reject Proposals

Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

31 specifically noted in the proposal submitted and confirmed in the contract between the City of Bakersfield and the firm selected.

The City of Bakersfield reserves the right without prejudice to reject any or all proposals.

APPENDICES

A. Findings from Recent External and Internal Audits

B. Organizational Chart

C. List of Key Officials, Office Locations and Telephone Numbers

D. Proposing Firm Guarantees

E. Proposing Firm Warranties

F. Format for Schedule of Professional Fees and Expenses to Support the Total All-inclusive Maximum Price

G. Copy of City Policy Regarding Selection of Auditors
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32 APPENDIX A

FINDINGS FROM RECENT EXTERNAL AND INTERNAL AUDITS

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33 APPENDIX A

FINDINGS FROM RECENT EXTERNAL AND INTERNAL AUDITS

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34 APPENDIX B

ORGANIZATIONAL CHART

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35 APPENDIX C

LIST OF KEY PERSONNEL AND TELEPHONE NUMBER

Randy McKeegan, Finance Director 326-3030

Tera Loveless-Ortiz, Assistant Finance Director 326-3475

Robert Zajack, Accounting Supervisor 326-3031

Corey Worthy, Accounting Supervisor 326-3761

Joshua Robles, Accounting Supervisor 326-3474

Tessa Andrews, Treasurer 326-3032

Sarah Hunley, Treasury Supervisor 326-3058

Renee Williams, Property Supervisor 326-3181

Olimpia Frederick, Purchasing Officer 326-3914

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36 APPENDIX D

PROPOSING FIRM GUARANTEES

I. The proposing firm certifies it can and will provide and make available, as a minimum, all services set forth in Section II, Nature of Services Required.

Signature of Official:

Name (typed):

Title:

Firm:

Date:

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37 APPENDIX E

PROPOSING FIRM WARRANTIES

A. The Proposing firm warrants that it is willing and able to comply with State of California laws with respect to foreign (non -state of California) corporations.

B. The P roposing firm warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof.

C. The Proposing firm warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the City of Bakersfield.

D. The Proposing firm warrants that all information provided by it in connection with this proposal is true and accurate.

Signature of Official:

Name (typed):

Title:

Firm:

Date:

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38 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2024-2025 FINANCIAL STATEMENTS

Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________

Managers _________

Supervisory
Staff _________

Staff _________

Other (specify): _________

Subtotal

Total for services
Described in Section
II E of the RFP
(Detail on subsequent
pages)

Out-of-pocket expenses:

Meals and lodging

Transportation

Other (specify):

Total all-inclusive maximum price for 2025 audit = $

Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price.

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39 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2024-2025 FINANCIAL STATEMENTS:

COMBINING SCHEDULE - ALL SERVICES

DESCRIBED IN RFP SECTION II E

Nature of Service To Be Provided Schedule Total Price

EACH SERVICE DESCRIBED IN RFP SECTION II E SHOULD BE SUPPORTED BY AN INDIVIDUAL SCHEDULE IN THE FORMAT PROVIDED ON PAGE 3 OF THIS APPENDIX.

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40 Appendix F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2024-2025 FINANCIAL STATEMENTS:

SUPPORTING SCHEDULE FOR [NAME OF SERVICE]

Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________

Managers _________
Supervisory
Staff _________

Staff _________

Other (specify _________

Subtotal

Out-of-pocket expenses:

Meals and lodging

Transportation

Other (specify):

Total price for [NAME OF SERVICE] $

Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price

Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

41 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2025-2026 FINANCIAL STATEMENTS

Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________

Managers _________

Supervisory
Staff _________

Staff _________

Other (specify): _________

Subtotal

Total for services
Described in Section
II E of the RFP
(Detail on subsequent
pages)

Out-of-pocket expenses:

Meals and lodging

Transportation

Other (specify):

Total all-inclusive maximum price for 2026 audit = $

Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price.

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42 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2025-2026 FINANCIAL STATEMENTS:

COMBINING SCHEDULE - ALL SERVICES

DESCRIBED IN RFP SECTION II E

Nature of Service To Be Provided Schedule Total Price

EACH SERVICE DESCRIBED IN RFP SECTION II E SHOULD BE SUPPORTED BY AN INDIVIDUAL SCHEDULE IN THE FORMAT PROVIDED ON PAGE 3 OF THIS APPENDIX.

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43 Appendix F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2025-2026 FINANCIAL STATEMENTS:

SUPPORTING SCHEDULE FOR [NAME OF SERVICE]

Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________

Managers _________
Supervisory
Staff _________

Staff _________

Other (specify _________

Subtotal

Out-of-pocket expenses:

Meals and lodging

Transportation

Other (specify):

Total price for [NAME OF SERVICE] $

Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price

Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

44 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2026-2027 FINANCIAL STATEMENTS

Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________

Managers _________

Supervisory
Staff _________

Staff _________

Other (specify): _________

Subtotal

Total for services
Described in Section
II E of the RFP
(Detail on subsequent
pages)

Out-of-pocket expenses:

Meals and lodging

Transportation

Other (specify):

Total all-inclusive maximum price for 2027 audit = $

Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price.

Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

45 APPENDIX F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2026-2027 FINANCIAL STATEMENTS:

COMBINING SCHEDULE - ALL SERVICES

DESCRIBED IN RFP SECTION II E

Nature of Service To Be Provided Schedule Total Price

EACH SERVICE DESCRIBED IN RFP SECTION II E SHOULD BE SUPPORTED BY AN INDIVIDUAL SCHEDULE IN THE FORMAT PROVIDED ON PAGE 3 OF THIS APPENDIX.

Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

46 Appendix F

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2026-2027 FINANCIAL STATEMENTS:

SUPPORTING SCHEDULE FOR [NAME OF SERVICE]

Standard Quoted
Hourly Hourly
Hours Rates Rates Total .

Partners _________

Managers _________
Supervisory
Staff _________

Staff _________

Other (specify _________

Subtotal

Out-of-pocket expenses:

Meals and lodging

Transportation

Other (specify):

Total price for [NAME OF SERVICE] $

Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all - inclusive maximum price

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47 APPENDIX G

COPY OF CITY POLICY REGARDING SELECTION OF AUDITORS
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48 APPENDIX G

COPY OF CITY POLICY REGARDING SELECTION OF AUDITORS

Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

49 APPENDIX G

COPY OF CITY POLICY REGARDING SELECTION OF AUDITORS
Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530

50 APPENDIX G

COPY OF CITY POLICY REGARDING SELECTION OF AUDITORS

Docusign Envelope ID: 7D2503E4-5247-895D-81F6-C0485698E530 Certificate Of Completion
Envelope Id: 7D2503E4-5247-895D-81F6-C0485698E530
Status: Completed
Subject: Complete with Docusign: Audit Service 2025.docx, LSL Technical Proposal - Audit Services Exb A....

Source Envelope:

Document Pages: 115
Signatures: 2
Envelope Originator:

Certificate Pages: 5
Initials: 0
City Clerk's Office
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
[email protected]
IP Address: 174.46.226.5
Record Tracking
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4/29/2026 12:01:32 PM
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[email protected]
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Ryan Domino
[email protected]
Partner
Lance, Soll & Lunghard LLP
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Signed: 4/29/2026 12:12:51 PM
Electronic Record and Signature Disclosure:

Accepted: 4/29/2026 12:12:45 PM
ID: 18d1df5b-dfa7-4930-bcde-7da2e052853c
Tera Loveless-Ortiz
[email protected]
Assistant Finance Director
Finance
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Signed: 4/29/2026 1:42:21 PM
Electronic Record and Signature Disclosure:

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ID: 48c7958b-a378-4147-888b-da118511a90a
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