Roger A. Martinez
Partner, Audit Practice Leader
Cristy Canieda
Partner
655 North Central Ave., Suite 1550
Glendale, CA 91203
213-873-1700
213-873-1777
[email protected] or
[email protected]
33-0700332
1 EXHIBIT A
SCOPE OF WORK
1. Scope of Services
Independent Auditor’s Duties and Responsibilities
Independent auditor's annual services will:
• Perform an audit and render an auditor's report on the Basic Financial Statements of the City and its component units in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States.
• Render a report on the fair presentation of the basic financial statements and apply limited audit procedures to Management's Discussion and Analysis (MD&A), if provided, and required supplementary information.
• Render auditor's report on the City's i nternal control over financial reporting and on compliance with relevant laws and regulations and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. • Assist in the preparation and word processing of the City’s Annual Financial Report. • Issue a Management Letter that includes recommendations for improvements in internal control, accounting procedures, and other significant observations that are considered to be non-reportable conditions.
• Perform a Single Audit and render an auditor's report on the schedule of expenditures of federal grants in accordance with U.S. Office of Management and Budget Federal regulations entitled "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200" (the Uniform Guidance) ; r ender an opinion on the City's compliance with requirements applicable to each Major Federal Program; and render a report on the City's internal controls over the administration of Federal funds.
• Perform agreed-upon procedures pertaining to the City's GANN Limit and render a letter annually to the City regarding compliance.
• Perform an audit and issue an auditor’s report on the fair presentation of the financial statements in conformity with generally accepted accounting principles for Successor Agency of the Redevelopment Agency of the City of Merced. • Perform separate biennial audits and issue auditors’ reports on the City’s compliance with California Vehicle Code Sections 9250.7 and 22710, Abandoned Vehicle Abatement Program.
• Prepare a comfort letter required for the Wastewater and Water loan with the California Infrastructure and Economic Development Bank.
• Provide guidance on implementing new GASB and OMB requirements and specifics of Federal and State of California regulations pertaining to local government financial reporting.
2 • The City of Merced will be required to implement Government Accounting Standards Board (GASB) pronouncements that take effect during the term of the contract. The level of assistance to be provided will be discussed on a case -by-case basis and mutually agr eed upon by Auditor and the Finance Officer.
• Provide assistance to meet the requirements of the GFOA program, at the City’s request.
2. Time of Performance
Interim Work
The Auditor shall complete the interim work by May 31 of each year , or another mutually agreed upon week arranged to meet the requirements for completion of the City’s financial statements.
Detailed Audit Plan
The Auditor shall provide the City of Merced, by May 15, with both a detailed audit plan and a list of all schedules to be prepared by the City of Merced.
Fieldwork
The Auditor shall complete all fieldwork by the last week of October, or another mutually agreed upon week arranged to meet the requirements for the completion of the City’s financial statements.
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 the Finance Officer, Deputy Finance Officer and key personnel by May 30. The purpose of this meeting will be to discuss prior audit engagements 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 workspace and other needs of the Auditor.
• Progress conference with the Finance Officer, Deputy Finance Officer and key personnel by July 31. 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. The year-end work to be performed will also be discussed in this meeting. • Exit conference with the Finance Officer, Deputy Finance Officer and key personnel by December 31. The purpose of this meeting will be to summarize the results of the fieldwork and to review significant findings.
• In addition, the Auditor shall provide written reports on the progress of the audit.
3 Date of Draft and Final Report is Due
• The Auditor shall prepare the draft financial statements by January 10. The Deputy Finance Officer shall provide all recommendations, revisions, notes and suggestions for improvements to the Auditor by January 20.
• The Auditor shall prepare the financial statements notes, required supplementary schedules, and the supplementary schedules and statistical data, if applicable , by January 10. The Finance Officer will review the final draft report as expeditiously as possible. It is not expected that this process should exceed two weeks. During the review periods, the Auditor should be available for any meetings that may be neces sary to discuss the audit reports. Once all issues for discussion are resolved, the camera-ready reports shall be delivered to the Finance Officer for publication by January 31. Dates are subject to change by mutual agreement to meet the requirements for completion of the City’s financial statements.
Single Audit
The Single Audit Report for the City of Merced shall be completed on the same schedule as the financial statement timeline noted above.
Successor Agency
Successor Agency Report for the City of Merced shall be completed on the same schedule as the financial statement timeline noted above.
GANN Limit AUP
GANN Limit AUP Report for the City of Merced shall be completed on the same schedule as the financial statement timeline noted above.
Abandoned Vehicle Abatement Program
Abandoned Vehicle Abatement Program Report for the City of Merced shall be completed on the same schedule as the financial statement timeline noted above biennially.
1 Total All-Inclusive Maximum Price
A. Name of Firm
Vasquez & Company LLP.
B. Certification of Person Signing Proposal
Vasquez is committed to providing the City with the highest customer service, and we trust that you will find us qualified to provide the City with professional financial statement auditing services. I, Roger Martinez, Partner with Vasquez, am entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the City.
C. Total all-inclusive maximum price for the FY 2026 engagement and optional four (4) subsequent fiscal years.
Optional Subsequent Fiscal Years
TOTAL COST
BREAKDOWN BY
FISCAL YEAR FY26 FY27 FY28 FY29 FY30
ACFR $ 46,500 $ 47,900 $ 49,400 $ 50,900 $ 52,500 Single Audit 4,500 4,700 4,900 5,100 5,300
GANN 500 600 700 800 900
Successor Agency 2,500 2,600 2,700 2,800 2,900
Comfort Letter 500 600 700 800 900
AVA 2,500 - 2,600 - 2,700
Total $ 57,000 $ 56,400 $ 61,000 $ 60,400 $ 65,200 Exhibit B
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 2 Rates by Partner, Specialist, Supervisor and Staff Level Times Hours Anticipated for Each
APPENDIX C
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT AND RELATED SERVICES OF THE 2025-2026 FINANCIAL STATEMENTS
I. FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 22 $ 325 $ 270 $ 5,940
Managers 117 200 150 17,550
Supervisory Staff 120 140 120 14,400
Staff 171 120 100 17,100
Discount (8,490)
Subtotal $ 46,500
II. THE CITY OF MERCED, AS SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF MERCED - FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 4 $ 325 $ 270 $ 1,080
Managers 4 200 150 600
Supervisory Staff 4 140 120 480
Staff 14 120 100 1,400
Discount (1,060)
Subtotal $ 2,500
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 3 III. SINGLE AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 2 $ 325 $ 270 $ 540
Managers 8 200 150 1,200
Supervisory Staff 8 140 120 960
Staff 23 120 100 2,300
Discount (500)
Subtotal $ 4,500
IV. BIENNIAL VEHICLE ABATEMENT REPORT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 3 $ 325 $ 270 $ 810
Managers 5 200 150 750
Supervisory Staff - 140 120 -
Staff 16 120 100 1,600
Discount (660)
Subtotal $ 2,500
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 4 V. TOTAL FOR SERVICES DESCRIBED IN SECTION II-E OF THE REQUEST FOR
PROPOSALS
Financial Audit Including ACFR Preparation $ 46,500
Successor Agency Audit 2,500
Single Audit (Assumes 1 Major Program) 4,500
Abandoned Vehicle Abatement Program Audit 2,500
GANN Limit Agreed Upon Procedures 500
Comfort Letter 500
VI. OUT-OF-POCKET EXPENSES
Meals and Lodging $ -
Transportation -
Other -
VII. TOTAL ALL-INCLUSIVE MAXIMUM PRICE AUDIT $ 57,000
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 5
APPENDIX C
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT AND RELATED SERVICES OF THE 2026-2027 FINANCIAL STATEMENTS
I. FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 22 $ 325 $ 270 $ 5,940
Managers 117 200 150 17,550
Supervisory Staff 120 140 120 14,400
Staff 171 120 100 17,100
Discount (7,090)
Subtotal $ 47,900
II. THE CITY OF MERCED, AS SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF MERCED - FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 4 $ 325 $ 270 $ 1,080
Managers 4 200 150 600
Supervisory Staff 4 140 120 480
Staff 14 120 100 1,400
Discount (960)
Subtotal $ 2,600
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 6 III. SINGLE AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 2 $ 325 $ 270 $ 540
Managers 8 200 150 1,200
Supervisory Staff 8 140 120 960
Staff 23 120 100 2,300
Discount (300)
Subtotal $ 4,700
IV. BIENNIAL VEHICLE ABATEMENT REPORT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners - $ 325 $ 270 $ -
Managers - 200 150 -
Supervisory Staff - 140 120 -
Staff - 120 100 -
Discount -
Subtotal $ -
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 7 V. TOTAL FOR SERVICES DESCRIBED IN SECTION II-E OF THE REQUEST FOR
PROPOSALS
Financial Audit Including ACFR Preparation $ 47,900
Successor Agency Audit 2,600
Single Audit (Assumes 1 Major Program) 4,700
Abandoned Vehicle Abatement Program Audit -
GANN Limit Agreed Upon Procedures 600
Comfort Letter 600
VI. OUT-OF-POCKET EXPENSES
Meals and Lodging $ -
Transportation -
Other -
VII. TOTAL ALL-INCLUSIVE MAXIMUM PRICE AUDIT $ 56,400
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 8
APPENDIX C
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT AND RELATED SERVICES OF THE 2027-2028 FINANCIAL STATEMENTS
I. FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 22 $ 325 $ 270 $ 5,940
Managers 117 200 150 17,550
Supervisory Staff 120 140 120 14,400
Staff 171 120 100 17,100
Discount (5,590)
Subtotal $ 49,400
II. THE CITY OF MERCED, AS SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF MERCED - FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 4 $ 325 $ 270 $ 1,080
Managers 4 200 150 600
Supervisory Staff 4 140 120 480
Staff 14 120 100 1,400
Discount (860)
Subtotal $ 2,700
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 9 III. SINGLE AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 2 $ 325 $ 270 $ 540
Managers 8 200 150 1,200
Supervisory Staff 8 140 120 960
Staff 23 120 100 2,300
Discount (100)
Subtotal $ 4,900
IV. BIENNIAL VEHICLE ABATEMENT REPORT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 3 $ 325 $ 270 $ 810
Managers 5 200 150 750
Supervisory Staff - 140 120 -
Staff 16 120 100 1,600
Discount (560)
Subtotal $ 2,600
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 10 V. TOTAL FOR SERVICES DESCRIBED IN SECTION II-E OF THE REQUEST FOR
PROPOSALS
Financial Audit Including ACFR Preparation $ 49,400
Successor Agency Audit 2,700
Single Audit (Assumes 1 Major Program) 4,900
Abandoned Vehicle Abatement Program Audit 2,600
GANN Limit Agreed Upon Procedures 700
Comfort Letter 700
VI. OUT-OF-POCKET EXPENSES
Meals and Lodging $ -
Transportation -
Other -
VII. TOTAL ALL-INCLUSIVE MAXIMUM PRICE AUDIT $ 61,000
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 11
APPENDIX C
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT AND RELATED SERVICES OF THE 2028-2029 FINANCIAL STATEMENTS
I. FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 22 $ 325 $ 270 $ 5,940
Managers 117 200 150 17,550
Supervisory Staff 120 140 120 14,400
Staff 171 120 100 17,100
Discount (4,090)
Subtotal $ 50,900
II. THE CITY OF MERCED, AS SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF MERCED - FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 4 $ 325 $ 270 $ 1,080
Managers 4 200 150 600
Supervisory Staff 4 140 120 480
Staff 14 120 100 1,400
Discount (760)
Subtotal $ 2,800
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 12 III. SINGLE AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 2 $ 325 $ 270 $ 540
Managers 8 200 150 1,200
Supervisory Staff 8 140 120 960
Staff 23 120 100 2,300
Discount 100
Subtotal $ 5,100
IV. BIENNIAL VEHICLE ABATEMENT REPORT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners - $ 325 $ 270 $ -
Managers - 200 150 -
Supervisory Staff - 140 120 -
Staff - 120 100 -
Discount -
Subtotal $ -
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 13 V. TOTAL FOR SERVICES DESCRIBED IN SECTION II-E OF THE REQUEST FOR
PROPOSALS
Financial Audit Including ACFR Preparation $ 50,900
Successor Agency Audit 2,800
Single Audit (Assumes 1 Major Program) 5,100
Abandoned Vehicle Abatement Program Audit -
GANN Limit Agreed Upon Procedures 800
Comfort Letter 800
VI. OUT-OF-POCKET EXPENSES
Meals and Lodging $ -
Transportation -
Other -
VII. TOTAL ALL-INCLUSIVE MAXIMUM PRICE AUDIT $ 60,400
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 14
APPENDIX C
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT AND RELATED SERVICES OF THE 2029-2030 FINANCIAL STATEMENTS
I. FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 22 $ 325 $ 270 $ 5,940
Managers 117 200 150 17,550
Supervisory Staff 120 140 120 14,400
Staff 171 120 100 17,100
Discount (2,490)
Subtotal $ 52,500
II. THE CITY OF MERCED, AS SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF MERCED - FINANCIAL AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 4 $ 325 $ 270 $ 1,080
Managers 4 200 150 600
Supervisory Staff 4 140 120 480
Staff 14 120 100 1,400
Discount (660)
Subtotal $ 2,900
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 15 III. SINGLE AUDIT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 2 $ 325 $ 270 $ 540
Managers 8 200 150 1,200
Supervisory Staff 8 140 120 960
Staff 23 120 100 2,300
Discount 300
Subtotal $ 5,300
IV. BIENNIAL VEHICLE ABATEMENT REPORT
Standard Quoted
Hourly Hourly
Hours Rates Rates Total
Partners 3 $ 325 $ 270 $ 810
Managers 5 200 150 750
Supervisory Staff - 140 120 -
Staff 16 120 100 1,600
Discount (460)
Subtotal $ 2,700
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 16 V. TOTAL FOR SERVICES DESCRIBED IN SECTION II-E OF THE REQUEST FOR
PROPOSALS
Financial Audit Including ACFR Preparation $ 52,500
Successor Agency Audit 2,900
Single Audit (Assumes 1 Major Program) 5,300
Abandoned Vehicle Abatement Program Audit 2,700
GANN Limit Agreed Upon Procedures 900
Comfort Letter 900
VI. OUT-OF-POCKET EXPENSES
Meals and Lodging $ -
Transportation -
Other -
VII. TOTAL ALL-INCLUSIVE MAXIMUM PRICE AUDIT $ 65,200
City of Merced
Dollar Cost Bid Proposal to Provide Professional Auditing and Related Services 17 Rates for Additional Payment
Additional services will be billed at the following standard hourly rates.
Staff Level Rate
Partner $ 375
Director 250
Senior Manager 225
Manager 200
Supervisor 180
Senior 150
Staff 120