CITY OF MENIFEE
SUBJECT: Bid Award and Agreement with Rogers, Anderson, Malody & Scott, LLP for Annual Financial Audit Services
MEETING DATE: March 18, 2026
TO: Mayor and City Council
PREPARED BY: Melissa Cortes, Principal Accountant
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Award bid and authorize the City Manager to execute a professional services agreement with Rogers, Anderson, Malody & Scott, LLP (RAMS) for annual financial audit services for an initial three-year term in a total amount not-to-exceed $200,882 through March 31, 2029; and
2. Authorize the City Manager to execute up to two additional one-year extensions in the aggregate amount not-to-exceed $145,906.
DISCUSSION
Annually, the City of Menifee engages an independent auditing firm to perform an examination of the City’s basic financial statements, and the City’s Schedule of Expenditures of Federal Awards (Single Audit). The independent auditor also performs agreed-upon procedures to test and report on the City’s GANN appropriation limit calculation. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. The audit also includes evaluating the overall presentation of the financial statements and evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. The objective of the audit is to express an opinion as to whether these financial statements are fairly presented in all material respects in conformity with all applicable accounting standards generally accepted in the United States of America and as promulgated by the American Institute of Certified Public Accountants (AICPA), the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Office of Management and Budget (OMB) Circular 2 CFR Part 200.
City of Menifee Staff Report
Annual Financial Audit Services Agreement
March 18, 2026
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Pursuant to Section 3.12.140 (c) of the Menifee Municipal Code, all contracts for the performance of the annual audit of the City’s financial statements shall be competitively bid by obtaining at least three proposals for providing the required services, evaluating the proposals pursuant to criteria set forth and awarding the contract based on the best proposal. Staff issued a Request for Proposals (RFP No. 2026-03) on November 13, 2025, seeking qualified Certified Public Accounting (CPA) firms to audit their financial statements for the fiscal years 2025/26 through 2027/28, with two additional fiscal year options, at the City’s discretion. The RFP was posted on the City’s online bidding site, PlanetBids. A total of six firms submitted proposals.
An evaluation committee, consisting of key Finance Department staff regularly involved in the annual audit process, evaluated the six proposals received. The evaluation criteria included qualifications of the firm, proposed team and organization, proposed project approach/audit schedule and cost proposal. Following the initial review of proposals, the top three proposals were invited for finalist interviews. Virtual interviews were conducted the week of February 16, 2026. A summary of the RFP evaluation is provided in the tables below (Sorted by Total Aggregate Score).
TABLE 1 – RFP PROPOSAL EVALUATION
Firm Average Score
(100 Possible Points)
Davis Farr, LLP 90.33
Rogers Anderson Malody & Scott LLP (RAMS) 88.00
The Pun Group, LLP 88.00
LSL, LLP 83.00
Badawi & Associates 81.67
Harshwal & Company, LLP 78.33
TABLE 2 – RFP INTERVIEW PORTION (TOP 3 FINALISTS)
Firm Average Score
(100 Possible Points)
Rogers Anderson Malody & Scott LLP (RAMS) 89.50
The Pun Group, LLP 82.50
Davis Farr, LLP 72.25
Established in 1948, RAMS is a California-based CPA firm, located in San Bernardino, CA, that specializes in government audits and is known as an industry expert at the state and federal level.
RAMS was selected based on the technical knowledge of the partners and managers to be assigned to the engagement; their emphasis on time management, planning, and realizing deadlines; and their ability to provide valuable insight and information related to new accounting standards, industry best practices, and unusual accounting transactions throughout the process.
They were the highest ranked proposal and on average to the other proposals their cost is generally comparable.
RAMS has provided professional audit services for the City of Menifee for the past seven years, and in compliance with state requirements, has historically, and will continue to, rotate the assigned partner assigned to the City of Menifee as necessary.
City of Menifee Staff Report
Annual Financial Audit Services Agreement
March 18, 2026
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0 7
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
The total cost of auditing services for the initial contract term, covering audit services for Fiscal Year (FY) 2025/26 through FY 2027/28, is $200,882. If elected the additional two one-year extension options, covering the FY 2028/29 and FY 2029/30 periods, would result in an additional $145,906, for a total five-year fiscal impact of $346,788. The annual cost breakdown is listed in Table 3 below.
TABLE 3 – FIVE YEAR FISCAL IMPACT
Fiscal Year Contract Term Annual Cost
FY 2025/2026 Year 1 $ 64,682.00
FY 2026/2027 Year 2 66,940.00
FY 2027/2028 Year 3 69,260.00
FY 2028/2029 Optional Year 4 71,696.00
FY 2029/2030 Optional Year 5 74,210.00
Total (with Options) $ 346,788.00
As interim audit services for the FY2025/26 period are anticipated to commence in the spring of 2026, the Year 1 (FY2025/26) Audit costs of $64,682 will be funded as follows:
$15,000 from FY 2025/26 available funds within professional services (1100-FIN-652800) $49,682 to be included as part of the FY 2026/27 adopted budget Future years’ costs will be included as part of the corresponding year’s budget process. No additional budget appropriation action(s) is required.
ATTACHMENTS
1. Agreement