PROFESSIONAL SERVICES AGREEMENT
[Annual Financial Audit Services]
THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s _____ day of ____________, 20 26 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and LSL, LLP , a limited liability partnership (“Contractor”), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. As a material inducement to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are the subject of this Agreement are not in the usual course of City’s bu siness and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.
Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provid ing such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best prof essional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.
Trang Nguyen, Finance Director (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or his/her designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.
2. Compensation and Fees.
a. Contractor's total compensation for audit services performed under this Agreement, shall not exceed ONE HUNDRED EIGHTY-FIVE THOUSAND TWO HUNDRED FORTY DOLLARS and 00/100 ($185,240.00) without the prior written authorization of City,
b. The above compensation is for a single audit. Should additional programs be requested, a fee of $2,500.00 per program will be added to the total compensation , subject to approval by the City Manager or designee, without prior authorization by the City Council.
c. The above compensation shall include all costs, including, but not limited to, all clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto rental, subsistence and all related expenses.
2 3. Payment.
a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.
b. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.
c. City will pay Contractor the amount invoiced within thirty (30) days, but the final ten percent (10%) of the total all-inclusive maximum price will be paid upon delivery of the final reports.
d. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.
4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously authorized in writing and approved by City as an amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.
5. Licenses. Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement.
6. Independent Contractor . At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equi pment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.
Contractor acknowledges that it and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.
3 7. Contractor Not Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.
8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.
It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.
9. Assignment or Subcontracting. No assignment or subcontracting by Contractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.
10. Time of Completion . Except as otherwise specified in Exhibit “A,” Contractor shall commence the work provided for in this Agreement within five (5) days of the Effective Date of this Agreement and diligently prosecute completion of the work in accordance with the time period set forth in Exhibit “A” hereto or as otherwise agreed to by and between the representatives of the parties.
11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work.
12. Reserved.
13. Delays and Extensions of Time. Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor’s control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writing, wh y the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.
14. Products of Contractor. The documents, studies, evaluations, asses sments, reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products produced or provided by Contractor for this Agreement shall become the property of City upon receipt. Contractor shall deliver all such products to City prior to payment for same. City may use, reuse or otherwise utilize such products without restriction.
15. Equal Employment Opportunity . During the performance of this Agreement, Contractor agrees as follows:
4 a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.
16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a consultant to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 8710 3 of the Government Code.
Contractor further agrees that it shall not be eligible to work as the design/build firm for the project that is the subject of this Agreement.
17. Indemnity.
a. To the fullest extent permitted by law , Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:
(1) Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s work under this Agreement, including any and all claims under any law pertaining to Contractor or its employees’ status as an independent contractor and any and all claims under Labor Code section 1720 related to the payment of prevailing wages for public works projects; and
(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of 5 this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph.
b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.
c. Except for the Indemnitees, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.
d. The indemniti es set forth in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors.
18. Insurance.
a. Contractor shall carry workers ’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker s’ compensation benefits under any City program.
b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) One Million Dollars ( $1,000,000) per occurrence ; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.
c. Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($ 1,000,000); or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis.
d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Contractor under this Agreement.
6 e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement.
f. Contractor shall maintain during the life of this Agreement professional liability insurance covering errors and omissions arising out of the performance of this Agreement with a minimum limit of One Million Dollars ($1,000,000) per claim. Contractor agrees to keep such policy in force and effect for at least five (5) years from the date of completion of this Agreement.
g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy.
Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.
h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days’ prior written notice to City.
i. Except for professional liability insurance coverage that may be required by this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of professional liability insurance coverage, such coverage shall be issued by companies either licensed or admitted to conduct business in Califo rnia so long as such insurer pos sesses the aforementioned Best rating.
j Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City.
In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set -off from any sums owed Contractor.
k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery.
Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which 7 any such insurer may acquire against City by virtue of the payment of any loss under such insurance.
l. Contractor shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to City for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein.
19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days’ written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise.
Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.
20. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.
City and its authorized representatives shall have access to and the right to audit and reproduce any of Contractor's records regarding the services provided under this Agreement. Contractor shall maintain all such records for a period of at least three (3) years after termination or completion of this Agreement. Contractor agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.
21. Compliance with all Laws/Immigration Laws.
a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement.
b. If the work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, to the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified p revailing rates of wages to all such workers . The general prevailing wage determinations for c rafts can be located on the web site of the Department of Industrial Relations (www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.
c. Contractor represents and warrants that it:
8 (1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and
(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and
(3) Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and
(4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.
d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.
e. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.
f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.
g. If Contractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee, that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City.
h. Contractor agrees to indemnify and hold City, its officers, officials, agents and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures City may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in connection with the performance of this Agreement.
22. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California and Contractor agrees to submit to the 9 jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, California.
23. Integration. This Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any wo rk performed which is inconsistent with or in violation of the provisions of this Agree ment shall not be compensated.
24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally , by e -mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission.
“CONTRACTOR” “CITY”
LSL, LLP City of Orange
500 Technology Drive, Suite 350 300 E. Chapman Avenue Irvine, CA 92618 Orange, CA 92866-1591
Attn.: Ryan Domino Attn.: Trang Nguyen
Telephone: (714) 592-1814 Telephone: (714) 744-2235 E-Mail: [email protected] E-Mail: [email protected]
25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted electronically shall have the same effect as original signatures.
[Remainder of page intentionally left blank; signatures on next page]
10 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.
“CONTRACTOR” “CITY”
LSL, LLP, a limited liability partnership CITY OF ORANGE, a municipal corporation
*By: By:
Printed Name: Daniel R. Slater, Mayor
Title:
*By: ATTEST:
Printed Name:
Title:
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
Nathalie Adourian, City Attorney
*NOTE: City requires the following signature(s) on behalf of the Contractor:
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to City.
√
EXHIBIT “A”
SCOPE OF SERVICES
[Beneath this sheet.]
PREPARED BY
LSL, LLP
Certified Public Accountants
License Number 2584
City of Orange
Audit Services
Date of Submission: October 3, 2025
Valid for 90 Days
Authorized by:
Ryan Domino, CPA, Partner
[email protected]
500 Technology Drive
Suite 350
Irvine, CA 92618
(949) 829 - 8299
City of Orange
Audit Services
1 www.lslcpas.com | 1
October 3, 2025
City of Orange
Attn: Trang Nguyen, Finance Director
300 East Chapman Ave.
Orange, CA 92866
LSL, LLP (“LSL”, “LSL CPAs”) is pleased to present our scope of service s for a two (2) year extension of audit services for the fiscal years ending June 30 , 2026, and 2027. We value the opportunity to demonstrate our pro fessional qualifications and continue our commitment to excellence to the City of Orange (“City”).
This scope of services highlights our firm’s experience, knowle dge, and creative problem-solving capabilities in go vernmental auditing. LSL’s Co re Services focus on serving midsize cities and special districts, offering a range of speci alized solutions. We concentrate in high-quality audits aligned with GAAS and current GASB pronounc ements and prioritize accuracy and thoroughness while ensuring timely service and rep ort delivery. Our commitment to effective collaboration and transparency with the City ensur es the integrity of its financial reporting and compliance with all regulatory requirements.
LSL’s established understanding of the City and its needs reinf orces our dedication to an ongoing partnership, transparency, and the integrity of the Cit y’s financial reporting in compliance with all regulatory requirements. Ryan Domino has se rved as the Engagement Partner to the City for four (4) years, per California Governme nt Code, may serve an additional two (2) years. To maintain i ndependence and objectivity, We imp lement strict safeguards including auditor rotation at six (6) years, internal quality c ontrol reviews, and adherence to professional ethics. This ensur es our team remains independent and unbiased throughout the audit.
We welcome the opportunity to discuss any aspect of this scope of services to ensure your complete satisfaction.
Sincerely,
Ryan Domino, CPA, Partner
LSL, LLP
[email protected]
(714) 592-1814
City of Orange
Audit Services
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About LSL
HISTORY & SIZE
LSL, LLP (“LSL”) 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, 2 principals, and 150 employees. We provide auditi ng, 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 attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services.
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 Calif ornia 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.
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. We annually distribute a listing of our firm's clients to all employees to ensure that any possible independence threats are properly documented and reviewed.
Business License
LSL affirms that we will obtain and maintain active business li censure with the City of Orange upon award of contract.
LOCATION
Our Offices
Irvine, CA - Headquarters
500 Technology Drive, Suite 350
Irvine, CA 92618
Phone: (949) 829-8299
Sacramento, CA
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
Phone: (916) 503-9691
The Woodlands, TX
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
Phone: (936) 828-4587
City of Orange
Audit Services
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LSL’s Irvine office is available locally to serve the City; how ever, the virtual footprint of our government team spans across the United States. At LSL, we regularly share staff and resources across our offices, providing you with access to our entire gov ernmental team. This approach ensures that you receive the highest level of service and expertise possible, allowing us to deliver optimal results.
LSL’S GOVERNMENT TEAM RESOURCES
Our governmental staff consists of three (3) Partners, one (1) Director, four (4) Senior Managers, four (4) Managers, ten (10) Supervisors, and fifteen (15) Professional Staff.
LSL does not subcontract any portion of our audits. All staff a ssigned to the audit portion of the engagement are 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 client s. We offer a variety of training opportunities, including those provided by CalCPA, AICPA, Gover nment Audit Quality Center, and Government Finance Officers Association (GFOA).
CORE SERVICES
Audit Services
This includes financial statement audits in accordance with Government Auditing Standards , single audits of federal award pr ograms and other attestation e ngagement-type services for governments, commercial entities, and not-for-profits.
Advisory Services
We provide GASB implementation assistance, Uniform Guidance and federal award program advisory services, and unique agreed-upon procedures tailored t o meet specific client needs including items such as internal control reviews.
Internal Support Services
We provide internal support services to help clients manage revenue sources, such as transient occupancy tax, franchise fees, and transient parking taxes. We also assist clients by providing oversight of their departments, i ncluding internal audits to pr ovide assurance that departments within the organization are following policies, procedures, and internal controls.
City of Orange
Audit Services
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Financial Reporting Services
Assisting finance departments wi th financial reporting includin g ACFR, Financial Transactions Reports for the State Controller’s Office, and other financial reporting. Additionally, we partner with Workiva to provide financia l reporting software implementa tions including building budget books, ACFR preparation and financial reporting in the Workiva ecosystem.
Training Services
LSL offers written trainings on technical topics and helping cl ients implement GASB pronouncements. We also provide in-person, online and webinar t rainings on current topics as well as fundamental basics for finance department teams.
GOVERNMENT AUDITING STANDARDS
LSL understands 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.
DESK REVIEW / DISCIPLINARY ACTION
There have been no disciplinary actions against our organization since its inception. There have been no litigations against our f irm in the past three years. O ur 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.
PEER REVIEW
Our firm has participated in the AICPA Peer Review Program sinc e its inception. All our peer reviews have covered government al engagements and have received pass ratings. Our most recent peer review conducted by Spafford and Landry CPAs is provided on the following pages.
City of Orange
Audit Services
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City of Orange
Audit Services
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City of Orange
Audit Services
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TOTAL ALL-INCLUSIVE MAXIMUM PRICE
*Price includes one (1) major program. Each additional program is $2,500.
City of Orange
Audit Services
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LSL’S STANDARD HOURLY BILLING RATES
We evaluate our contracts at the end of term to ensure that eng agements meet our standards from an economic perspective in accordance with AICPA professio nal standards. It was determined to be necessary to in crease our fees from the last c ontract due to increased audit hours required due to new and comp lex GASB pronouncements, risi ng costs of labor, and technology costs. To help mitigate the increase in fees, we hav e extended a 20% current client discount to the City in appreciation of our partnership over the last contract period. This discount is reflected in the rate table shown below.
City of Orange
Audit Services
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LEVEL OF STAFF ASSIGNED AND NUMBER OF HOURS TO BE ASSIGNED
* Hours proposed are for one (1) major program.
Segment/Task Partners
Senior
Manager Supervisor Staff Clerical Total
City's Financial Statement Audit
Interim test work 0 0 30 60 0 90
Year-End test work 0 0 70 140 0 210
Report/Review/Supervision 20 60 0 0 5 85
Subtotal 20 60 100 200 5 385
AQMD Audit
Test work 0 0 2 5 0 7
Report/Review/Supervision 1 1 0 0 1 3
Subtotal 1 1 2 5 1 10
Housing Successor Audit
Test work 0 0 2 5 0 7
Report/Review/Supervision 1 1 0 0 1 3
Subtotal 1 1 2 5 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
State Controller's Report
Test work 0 0 0 38 0 38
Report/Review/Supervision 0 2 0 0 0 2
Subtotal 0 2 0 38 0 40
Gann Limit AUP
Test work 0 0 0 2 0 2
Report/Review/Supervision 0 1 1 0 1 3
Subtotal 0 1 1 2 1 5
ACFR Preparation
Test work 0 0 0 0 0 0
Report/Review/Supervision 5 10 30 0 5 50
Subtotal 5 10 30 0 5 50
Investment Portfolio AUP
Test work 0 0 0 2 0 2
Report/Review/Supervision 0 1 1 0 1 3
Subtotal 0 1 1 2 1 5
TOTAL PROPOSED HOURS: 29 82 146 272 16 545
TOTAL PROPOSED HOURS
City of Orange
Audit Services
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MANNER OF PAYMENT
Progress payments will be made on the basis of hours of work co mpleted during the course of the engagement and out-of-pocket ex penses incurred in accordanc e with the firm's proposal.
Interim billings shall cover a period of not less than a calend ar month. The final ten percent (10%) of the total all-inclusive maximum price will be paid upon delivery of the firm's final reports.
INSURANCE
LSL confirms that we will maintain the minimum insurance requir ements throughout the entire term of engagement. Evidence of coverage is provided on the fol lowing pages, and the actual insurance form will be provided upon the award of contract.
City of Orange
Audit Services
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City of Orange
Audit Services
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City of Orange
Audit Services
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LSL Highlights: Awards & Values
LSL is a multi-location firm wit h formidable resources that pro vides a personal feel and hands- on client experience.
ACCOUNTING TODAY REGIONAL LEADER
LSL has again been recognized as an Accounting Today Regional Leader in 2025. The list ranks the t op CPA firms that have show n exceptional growth, embraced te chnology, 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 awards accounting firms who demonstrate 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.
City of Orange
Audit Services
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LSL Training & Seminars
LSL offers a range of training courses and seminars to keep both clients and staff informed and prepared in governmental account ing and auditing with continued support throughout. We regularly lead instructional se ssions and learning opportunitie s in financial-reporting, internal control risk assessments, and GASB update for the latest guidan ce, information and ideas that impact your industry. These oppor tunities are made available th rough our firm to the City for training or continuing professional education credits. Some of the topics include:
Uniform Guidance (UG) Updates
GASB Updates
Addressing Staffing Challenges
ERP Implementation Panel
Back to Basics Series:
o GASB 101: Compensated
o Absences
o Capital Assets
o Bank Reconciliations
o Pension & OPEB
o Accounts Receivable
o A/P, Accrued Liabilities, and Long-Term Debt
o Leases & SBITAS
For upcoming webinars, please visit https://lslcpas.com/webinars/.