1.M.2 PROPOSAL FROM CLA (COST & TECHNICAL) — Placentia City Council, July 19, 2022

May 16, 2022
Proposal to provide professional
assurance services to:

ORIGINAL
City of Placentia
CIA Response to RFP for 'Professional ; Services
Cost Proposal
Prepared by:

Robert "Bob" Callanan, CPA, Principal
[email protected]
Direct 714-795-5354
2875 Michelle Drive
Suite 300
Irvine, CA 92606

WEALTH ADVISORY I OUTSOURCING I AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor. CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See ncxio,(orn/n•,er11(ic .iirm-di_clnirn,.i.

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©2021 CliftonLarsonAllen LLP

Professional Fees
Name of firm
CIA (CliftonLarsonAllen LLP)
Verification statements
1, Robert Callanan, CPA, your engagement principal -in -charge, will serve as the City of Placentia (the City)'s primary contact person for this engagement. Furthermore, as a principal of CLA, I am authorized to sign, bind, and commit the firm to the obligations contained in this proposal and the City's RFP.

1. Pricing
Our fees are based on the timely delivery of services provided, the experience of personnel assigned to the engagement, and our commitment to meeting your deadlines.

CLA understands the importance of providing our clients with value-added strategies. We propose to provide routine, proactive meetings — as part of our fee — that will allow us to review and discuss with you the impact of new accounting issues, as well as any other business issues you are facing and how they should be handled.

This level and frequency of interaction will no doubt enable CIA to help you tackle challenges as they come up and take full advantage of every opportunity that presents itself.

The pricing for the audit engagement is listed below.

All Inclusive price for all requested services
MIL
Hours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Total
FY 21-
22 Total
FY 22-
23 Total
FY 23-
24 Principals 50 $450 $275 $13,750 $14,164 $14,588
Managers 75 $250 $175 $13,125 $13,519 $13,925
Seniors 140 $165 $125 $17,500 $18,026 $18,566
Associates 175 $125 $105 $18,375 $18,927 $19,494
Clerical 40 $90 $75 $2,250 $2,319 $2,389
Subtotal
470
5% Technology and Support Fee
$65,000
$66,955
$68,962
$3,251 $3,348 $3,448
Total all-inclusive maximum price for all services'
$68,251 $70,303 $72,410
1 Fee is based on auditing one major program as part of the single audit. Additional major programs will cost $2,800 each. 2- We estimate that the City Clerk's Office and the Finance Department will need no more than 15 hours in total to respond to our requests for permanent file information.

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©2022 CliftonLarsonAllen LLP 1 1

City of Placentia Audit
Hours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Total
FY21-
22 Total
FY 22-
23 Total
FY 23-
24 Principals 43 $450 $275 $11,825 $12,180 $12,545
Managers 55 $250 $175 $9,625 $9,914 $10,211
Seniors 94 $165 $125 $11,750 $12,103 $12,466
Associates 105 $125 $105 $11,025 $11,356
Clerical 3 $90 $75 $225 $232 $239
300 $44,450 $45,785 $47,158
5% Technology and Support Fee $2,223 $2,289 $2,358
$11,697
Subtotal
Total all - inclusive maximum price - City audit $46,673 $48,074 $49,516
Single audit
flours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Total
FY 21-
22 Total
FY 22-
23 Total
FY 23-
24 Principals 2 $450 $275 $550 $567 $584
Managers 4 $250 $175 $700 $721 $743
Seniors 12 $165 $125 $1,500 $1,545 $1,591
Associates 20 $125 $105 $2,100 $2,163
Clerical 2 $90 $75 $150 $155 $160
$2,228
Subtotal
E. 40
11 5% Technology and Support Fee
$5,000
$5,151
55,306
$250 $258 $265
Total all - inclusive maximum price - Single audit'
$5,250 $5,409 $5,571
1 Fee is based on auditing one major program as part of the Single Audit. Additional major programs will cost $3,000 each. _ Create Opportunities
©2022 CliftonLarsonAllen LLP 1 2

ACFR preparation
flours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Total
FY 21-
22 Total
FY 22-
23 Total
FY 23-
24 Principals $450 $275 -
Managers 5 $250 $175 $875 $901 $928
Seniors 12 $165 $125 $1,500 $1,545 $1,591
Associates 12 $125 $105 $1,260 51,298 $1,337
Clerical 16 $90 $75 $1,200 $1,236 $1,273
45 $4,835 54,980
5% Technology and Support Fee $242 $249 $257
Subtotal
$5,129
Total all-inclusive maximum price —ACFR preparation
$5,077 $5,229 $5,386
Gann limit agreed-upon procedures
Flours
Standard
Hourly
Rates
Quoted
Hourly
Rates
Principals $450 $275
Total
FY 21-
22 Total
FY 22-
23 Total
FY 23-
24 Managers 1 5250 $175 $175 $180 $185
Seniors $165 $125 - -
Associates 2 $125 $105 $210 $216 $222
Clerical 1 $90 $75 $75 $77 $79
Subtotal
4 5% Technology and Support Fee
$460
5473
5486
$23 $24 $24
Total all - inclusive maximum price - Gann limit agreed- upon procedures
$497 $510
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Pick two agreed-upon procedures
Standard Quoted Total Total Total
Hours Hourly Hourly FY 21- FY 22- FY 23 -
Rates Rates 22 23 24
Principals 2 $450 $275 $550 $567 $584
Managers 4 $250 $175 $700 $721 $743
Seniors 10 $165 $125 $1,250 $1,288 $1,327
Associates 10 $125 $105 $1,050 $1,082 $1,114
Clerical 4 $90 $75 $300 $309 $318
Subtotal 30
$3,850
$3,967 $4,086
5% Technology and Support Fee
$193 $198 $204
Total all - inclusive maximum price - Pick two agreed-upon procedures
$4,043 $4,165 $4,290
Compilation of annual financial transactions
Standard Quoted Total Total Total
Hours Hourly Hourly FY 21- FY 22- FY 23 -
Rates Rates 22 23 24
Principals
Managers
Seniors
Associates
Clerical
2 $450 $275 $550 $567 $584
4 $250 $175 $700 $721 $743
8 $165 $125 $1,000 $1,030 $1,061
20 $125 $105 $2,100 $2,163 $2,228
2 $90 $75 $150 $155 $160
Subtotal
36 ".11$4,500 $4,636 $4,776
S% Technology and Support Fee
$225 $232 $239
Total all inclusive maximum price - Compilation of
annual financial transactions $4,725
$4,868 $5,015
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Annual street report
Standard
Hours Hourly
Rates
Quoted
Hourly
Rates
Total Total
FY 21- FY 22-
22 23
Total
FY 23-
24 Principals 1 $450 $275 $275 $283 $291
Managers 2 $250 $175 $350 $361 $372
Seniors 4 $165 $125 $500 $515 $530
Associates 6 $125 $105 $630 $649 $668
Clerical 2 $90 $75 $150 $155 $160
Subtotal
15 $1,905
$1,963
$2,021
5% Technology and Support Fee $95 $98 $101
Total all - inclusive maximum price - annual street report $2,000 $2,061 $2422
Like most firms, we are investing heavily in technology to enhance the client experience, protect our data environment, and deliver quality services. We believe our clients deserve clarity around fees, and we will continue to be transparent with our fee structure.

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2. Rates for additional professional services
In addition to the services outlined in the request for this proposal, CLA collectively offers a wide breadth of highly customized services and capabilities to meet our clients' wants and needs, including a sampling of the following:

Internal audit, risk assessments, and evaluations
Implementation assistance for complex
accounting standards
ACA Reporting
Operational and financial systems consulting
Operations and performance improvement
Self-insured medical and PBM claim audits
IT security and network vulnerability assessments
Fraud risk assessment and investigations
Strategic, financial, and operational consulting
Outsourced accounting and public administration
Strategic, business, and capital planning
Organizational and financial health assessment
Training and educational seminars
Telecom cost savings assessments
We pride ourselves on taking the initiative to meet each and every need of our clients, and therefore are always prepared to take on additional projects. However, independence is our first concern when providing additional services. Independence can easily become impaired when providing consulting services; therefore, we do not provide any services to our audit clients beyond those allowed.

If additional work is requested by the City outside of the scope of the audit, we will discuss with you our proposed fee for additional services prior to beginning the new services. For reference, our hourly rates are provided below:

Level
FY 21-22
FY 22-23 FY 23-24
Principal $275
$283 $291
Manager $175
$180 $185
Senior $125
$129 $133
Associate $105
$108 $111
Clerical $75
$77 $79

3. Manner of payment
The charges for our work are to be based upon the time involved, degree of responsibility assumed, and skills required, plus expenses including internal and administrative charges. Bills for services are due when submitted.

Interim bills may be submitted at periodic dates to cover charges and expenses incurred but will not be submitted more often than monthly.

CLA does accept credit cards for payment.

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©2022 CliftonLarsonAllen LLP 1 6

May 16, 2022
Proposal to provide professional
assurance services to:

ORIGINAL
City of Placentia
CIA Response to RFP for Professional Auditing Services
Prepared by:

Robert 'Bob" Callanan, CPA, Principal
[email protected]
Direct 714-795-5354
2875 Michelle Drive
Suite 300
Irvine, CA 92606
C 1 Aannnnrt rnm
WEALTH ADVISORY 1 OUTSOURCING I AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor. CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See Create Opportunities
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©2022 CliftonLarsonAllen LLP

Table of Contents

2. Independence 3
Professional involvement 3
Notice of relationship 3

3. License to Practice 3

4. Firm Qualifications and Experience 4
Firm overview 4
Size of firm's governmental audit staff 4
Office locations assigned to manage the engagement 5
Number and nature of professional staff to be employed on this engagement 5 Joint venture 5
Federal or state desk or field reviews 5
Good standing 5
Quality control procedures and peer review report 6

5. Principal, Supervisory and Staff Qualifications and Experience 8 Engagement team experience 8
Continuing education program 9
Continuity of service 10

6. Similar Engagements 11

7. Specific Audit Approach 13
Seamless assurance advantage: a different way to audit 13 Single audit approach 15
a. Engagement timetable 17
b. Level of staff and number of hours to be assigned 18 c. Sample size and statistical sampling 19
d. Procedures used to understand internal processes and controls 19 e. Approach to be taken in determining laws and regulations that will be subject to audit test work20 f. Approach to be taken in drawing audit samples for purposes of tests of compliance 20

8. Identification of Anticipated Potential Audit Problems 21 Assistance from client 21

9. Response to City Standard Two -Party Agreement 21
Appendix 1
Engagement team biographies 1
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©2022 CliftonLarsonAllen LLP 111

May 16, 2022
Selection Committee
City of Placentia
401 E. Chapman Avenue
Placentia, CA 92870
RE: Request for Proposals (RFP) for Professional Auditing Services To the Selection Committee of the City of Placentia:

CliftonLarsonAllen LLP
2875 Michelle Drive
Suite 300
Irvine, CA 92606
phone 714-978-1300 fax 714-978-7893
CLAconnect.com
Thank you for inviting us to propose our services to you. We gladly welcome the opportunity to share our approach to helping City of Placentia (the City) meet its need for professional services. The enclosed proposal responds to your request for assurance services for three fiscal years, beginning July 1, 2021 with the option for each of the two subsequent years.

We have read the Request for Proposal (RFP) and understand the scope of the work to be performed as detailed in the RFP. Should CLA be selected to serve this engagement, we will perform these services within the period specified in the RFP and as finalized in the planning stages of the engagement.

We are confident that our extensive experience serving similar governmental entities, bolstered by our client -oriented philosophy and depth of resources, will make CLA a top qualified candidate to fulfill the scope of your engagement. The following differentiators are offered for the City's consideration:

Industry -specialized insight and resources. As one of the nation's leading professional services firms, and one of the largest firms who specialize in regulated industries, CLA has the experience and resources to assist the City with its audit needs. In addition to your experienced local engagement team, the City will have access to one of the country's largest and most knowledgeable pools of regulated industry resources.

OMB Uniform Guidance (UG) experience. CLA performs single audits for hundreds of organizations annually, ranking top in the nation for the number of single audits performed by any CPA firm. The single audit requires a specific set of skills to properly perform the procedures. As such, we have developed a group of professionals who specialize in providing single audit services.

Strong methodology and responsive timeline. In forming our overall audit approach, we have carefully reviewed the RFP and considered our experience performing similar work for other municipalities. Our local government clients are included amongst the more than 4,150 governmental organizations we serve nationally. Our staff understands your complexities not just from a compliance standpoint, but also from an operational point of view. We have developed a work plan that takes into consideration your unique needs as a governmental entity in California. The work plan also minimizes the disruption of your staff and operations and provides a blueprint for timely delivery of your required reports.

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Communication and proactive leadership. The City will benefit from a high level of hands-on service from our team's senior professionals. We can provide this level of service because, unlike other national firms, our principal -to -staff ratio is similar to smaller firms — allowing our senior level professionals to be involved and immediately available throughout the entire engagement process. Our approach helps members of the engagement team stay abreast of key issues at the City and take an active role in addressing them.

A focus on providing consistent, dependable service. We differ from other national firms in that our corporate practice focuses on the needs of non -SEC clients, thus allowing us to avoid the workload compression typically experienced by firms that must meet public companies' SEC filing deadlines. CLA is organized into industry teams, affording our clients with specialized industry -specific knowledge supplemented by valuable local service and insight. Therefore, the City will enjoy the service of members of our state and local government services team who understand the issues and environment critical to governmental entities.

Fresh perspective. By engaging CLA, the City will benefit from a "fresh look" at its business operations, information systems, and financial and risk management policies and procedures. You will be served by an engagement team with enthusiasm and a desire to meet and exceed expectations. We are confident that our industry experience will bring to the City new ideas, creative approaches, and fresh opportunities to meet the financial management and accountability challenges before the City.

Verification statements
1, Bob Callanan, CPA, your engagement principal -in -charge, will serve as the City's primary contact person for this engagement. Furthermore, as a principal of CLA, I am authorized to sign, bind, and commit the firm to the obligations contained in this proposal, which is a firm and irrevocable offer for fiscal years 2021-22, 2022-23, and 2023-24, and the City's RFP.

We are confident that our technical approach, insight, and resources will result in unsurpassed client service for the City. For ease of evaluation, the structure of our proposal follows your RFP section titled, VI.

Proposal Requirements.

We are eager to work with you and welcome the chance to present our proposal to the audit committee or entire management team. If you have any questions about our offerings, please do not hesitate to contact me via the information below.

Sincerely,
CliftonLarsonAllen LLP
/WAY/ alt.

Robert J. Callanan, CPA
Principal
714-795-5354
[email protected]
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2. Independence
CLA is independent of the City and of all component units of the City under the American Institute of Certified Public Accountant's Code of Professional Conduct and its interpretations, the U.S. Government Accountability Office's Government Auditing Standards, and the U.S. Department of Labor's 29 CFR 2509.75-9 Interpretive Bulletin and the independence rules of the Public Company Accounting Oversight Board (PCAOB) and/or the U.S.

Securities and Exchange Commission, as required. Our firm -wide quality control policies and procedures foster strict compliance with these professional standards. In addition, the individuals assigned to your engagement are independent of the City.

Professional involvement
CLA has not had professional relationships with the City within the last five (5) years.

Notice of relationship
CLA shall give the City written notice of any professional relationships entered into during the period of this agreement.

3. License to Practice
CLA is a limited liability partnership and is duly licensed to practice public accountancy in the state of California.

A copy of our state license is provided below:

BOARD OF ACCOUNTANCY
LICENSING DETAILS FOR: 7083
NAME: CLIFTONLARSONALLEN LLP
UCENSE TYPE: CPA - PARTNERSHIPS
UCENSE STATUS: CLEAR
PREVIOUS NAMES: LARSONALLEN LLP • LARSON, ALLEN, WEISHAIR & CO., LLP

ADDRESS
60 S MARKET STREET
SAN JOSE CA 95113

SANTA CLARA COUNTY
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ISSUANCE DATE
JULY 27, 2006

EXPIRATION DATE
JULY 31, 2022

CURRENT DATE / TEEE
JUNE25 2020
7:37:57 AM
©2022 CliftonLarsonAllen LLP 1 3

4. Firm Qualifications and Experience
Firm overview
CLA exists to create opportunities for our clients, our people, and our communities through industry -focused wealth advisory, outsourcing, audit, tax, and consulting services. Our broad professional services allow us to serve clients more completely — from startup to succession and beyond.

Our professionals are immersed in the industries they serve and have specialized knowledge of their operating and regulatory environments. With more than 7,400 people, more than 120 U.S. locations, and a global affiliation, we bring a wide array of approaches to help clients in all markets, foreign and domestic. 7,400
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We promise to know you and help you
With CLA by your side, you can find everything you need in one firm. Professionally or personally, big or small, we can help you discover opportunities and achieve more than you believed possible.

Size of firm's governmental audit staff
CLA has one of the largest governmental audit and consulting practices in the country and brings extensive experience providing a variety of such services to state and local government entities. Our state and local government team serves more than 4,100 governmental engagements nationwide, including numerous cities, counties, municipalities, states and state agencies, and school boards. In addition, we perform single audits for hundreds of organizations annually, ranking top in the nation for the number of single audits performed by any CPA firm.

Regionally, nearly 100 professionals comprise our state and local government team. These individuals serve governmental entities in California, as well as clients across the country. Additionally, we have access to firm - wide professionals and resources as needed to fulfill the requirements of the contract.

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Office locations assigned to manage the engagement
Our firm takes the approach of matching staff among the best skill set to the engagement before considering geographic location of the staff. Assigning team members that specialize in working with cities and municipalities of all sizes will provide the City among the best quality audit and will allow us to complete the audit in the most efficient and effective manner with little interruption to your staff.

The City will be served by our industry -specialized state and local government engagement team located in our Irvine, CA, office with support from our Harrisburg, PA office.

Number and nature of professional staff to be employed on this engagement The table below provides a breakdown by staff level and denotes full or part-time status of the engagement team that will serve the City. This team has extensive experience working with clients similar to the City. -Level of Staff
Full-time staff Part-time staff
Principal
1 2
Manager 1
Senior 1
Associate 2
Total
5 2
Joint venture
We are not a joint venture or alliance of firms. We have the capabilities of providing all services outlined in the proposal, including Information Technology services.

Federal or state desk or field reviews
CLA has been subject to several federal and state desk reviews by state oversight agencies during the past three years, and we have resolved all findings. In addition, our government audits are subject to review by each agency's Office of Inspector General, as well as the U.S. Government Accountability Office, and we have also resolved all findings identified in those reviews.

Good standing
CLA and the supervising certified public accountants are in good standing and our firm does not have a record of substandard audit work.

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Quality control procedures and peer review report
In the most recent peer review report, dated November 2019, we received a rating of pass, which is the most positive report a firm can receive. We are proud of this accomplishment and its strong evidence of our commitment to technical excellence and quality service. The full report is provided on the following page. This quality control review included a review of specific government engagements.

In addition to an external peer review, we have implemented an intensive internal quality control system to provide reasonable assurance that the firm and our personnel comply with professional standards and applicable legal and regulatory requirements. Our quality control system includes the following:

A quality control document that dictates the quality control policies of our firm. In many cases, these policies exceed the requirements of standard setters and regulatory bodies. Firm leadership promotes and demonstrates a culture of quality that is pervasive throughout the firm's operations. To monitor our adherence to our policies and procedures, and to foster quality and accuracy in our services, internal inspections are performed annually.

Quality control standards as prescribed by the AICPA. The engagement principal is involved in the planning, fieldwork, and post -fieldwork review. In addition, an appropriately experienced professional performs a risk- based second review of the engagement prior to issuance of the reports.

Hiring decisions and professional development programs designed so personnel possess the competence, capabilities, and commitment to ethical principles, including independence, integrity, and objectivity, to perform our services with due professional care.

An annual internal inspection program to monitor compliance with CLA's quality control policies.

Workpapers from a representative sample of engagements are reviewed and improvements to our practices and processes are made, if necessary, based on the results of the internal inspection.

Strict adherence to the AICPA's rules of professional conduct, which specifically require maintaining the confidentiality of client records and information. Privacy and trust are implicit in the accounting profession, and CLA strives to act in a way that will honor the public trust.

A requirement that all single audit engagements be reviewed by a designated single audit reviewer, thereby confirming we are in compliance with the standards set forth in the Uniform Guidance.

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©2022 CliftonLarsonAllen LLP 1 6

Cherry Bekaert""
CVA, & Advisor,
Report on the Firm's System of Quality Control
November 21. 2019
To the Principals of CliftonLarsonAllen LLP
and the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of CliftonLarsonAllen LLP (the firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May 31, 2019. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards).

A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at wwwaicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.

Firm's Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any.

Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review.

Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act; audits of employee benefit plans; audits performed under FDICIA; audits of broker-dealers; and examinations of service organizations [SOC 1 and SOC 2 engagements].

As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures.

Opinion
In our opinion, the system of quality control for the accounting and auditing practice of CliftonLarsonAllen LLP applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May 31, 2019, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Films can receive a rating of pass, pass with deficiency(ies) or fail. CliftonLarsonAllen LLP has received a peer review rating of pass.

Cherry Bekaert LLP
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©2022 CliftonLarsonAllen LLP I 7

5. Principal, Supervisory and Staff Qualifications and
Experience
Engagement team experience
An experienced engagement team has been aligned to
provide the most value to your organization. The team
members have performed numerous engagements of this
nature and can commit the resources necessary to provide top quality service throughout the engagement. Following are our proposed management team members:
� O O
The most important
resource any business has is
people — the right people.

Engagement
Team Member
Role
Licensed
in CA
Robert "Bob"
Callanan, CPA
Engagement Principal — Bob will have overall engagement responsibility including planning the engagement, developing the audit approach, supervising staff, and maintaining client contact throughout the engagement and throughout the year.

Bob is responsible for total client satisfaction through the deployment of all required resources and continuous
communication with management and the engagement team.

Nitin Patel, CPA
Assurance Principal — Nitin will be the assurance resource for the audit team as well as City personnel. Nitin's many years of serving governmental entities will be an invaluable resource.

Robert Perl, CPA
Engagement Manager — Robert will act as the lead manager on the engagement. In this role, Robert will assist the engagement principal with planning the engagement and performing
complex audit areas. They will perform a technical review of all work performed and is responsible for the review of
comprehensive annual financial report and all related reports.

James Kreiser, CISA,

CRMA, CFSA
Information Systems — Jim will assist the audit team in documenting and evaluating general computer controls and IT application controls.

Additional Staff — We will assign additional staff to your engagement based on your needs and their experience providing services to state and local governments. Ideally, the staff assigned to your team will be from our — Irvine California office with state and local government as their industry focus at CLA.

Detailed biographies are available in the Appendix of this proposal. *CLA is licensed to practice public accounting in the state of California. All assigned key professional staff are licensed certified public accountants. Most states, including California, have adopted mobility legislation — which is a practice privilege that generally permits a licensed CPA in good standing from a substantially equivalent state to practice outside of their principal place of business without obtaining another license. All assigned professional staff have complied with governmental qualification standards, including governmental continuing education requirements.

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IT & Risk management — Value-added service
CLA believes that a good audit yields substantial information for management and is a valuable tool in recognizing opportunities and identifying areas that can be strengthened. In that regard, we have assigned an experienced Information Technology (IT) resource manager to the City's audit. The IT manager's role in the audit will be to perform a review of Information Systems (IS) controls to conclude whether they are properly designed and operating effectively. For IS -related controls that we deem to be ineffectively designed or not operating as intended, we will communicate our findings and will provide recommendations to improve internal controls.

Including an IT professional on the City's audit is a value-added service that is not always offered by all firms that conduct municipal audits.

Continuing education program
To maintain and expand our assurance knowledge, we consistently provide continuing education for our professionals. Each member of our professional team, including principals, attends at least 40 hours of technical training annually. Individuals are required to familiarize themselves with all current changes in standards and procedures. Updated information on recent changes in technical standards and regulations, as well as the firm's professional policies and procedures, is distributed to our team members on a regular basis.

As described below, CLA professionals are specifically trained in the industry at a level beyond our competitors.

Eg21:1
On-the-job
training
Our professionals
focus on serving a
specific industry. So,
the team chosen to
serve you is
continuously exposed
to and trained on
issues impacting
entities like yours
while performing their
day-to-day work.
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Tailored
training
When providing
instruction in our basic
CPA, consulting, and
advisory classes, we
tailor the entire
discussion, examples,
and exercises to apply to
clients in their specific
industry focus.

CLA's firm -wide training programs include:
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Specialized
recruiting
Our on -campus
recruiting aggressively
seeks individuals with
industry focused
degrees and/or
backgrounds. We focus
on identifying top
candidates for our
clients.

Effective continuing
professional
education
Our greatest strength is
the talent of our staff.

Our professionals
provide more efficient
and effective services
due to the new ideas
they implement from
our in-depth training
and continuing
professional education.

Learn. Designed for new CLA associates, this five-day conference is typically attended in the first year of employment. This internally developed and presented training focuses on preparing new hires and interns to understand and perform their role in the audit process. Providing a combination of an introduction to CLA Strategy, business risk and independence with audit theory. Using hands-on exercises and simulations to introduce our audit methodology, tools, and software. Specific audit areas covered include audit planning, cash, fixed assets, accounts payable and financial statement preparation.

Experience. Designed for the CLA associate with about one year of experience. This four-day conference is typically attended in the second year of employment. This training is similar to the "Learn" training outlined above, but at a deeper level.
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Achieve. Designed for the CLA associate with about two years of experience. This four-day conference is typically attended in the third year of employment. This internally developed and presented training focuses on leadership and performance management of audit engagements utilizing CLA audit methodology from the perspective of the experienced in -charge. This is a highly interactive session covering the experienced in - charge's role and challenges in the audit process and prepares participants to manage and perform efficient and effective audits.

Propel. Designed for the CLA associate with about three years of experience. This four-day conference is typically attended in the fourth year of employment. This training focuses on project management of audit engagements from start to finish and includes exercises and case studies on improving the audit, supervision, analytical procedures, and tests of controls and identifying and responding to fraud risks. This session is taught by an external instructor from 20/20 Services.

Continuity of service
We are committed to providing continuity throughout this engagement. It is our policy to maintain the same staff throughout an engagement, providing maximum efficiency and keeping the learning curve low. With a solid, steady engagement team, each year brings the additional benefits of trust and familiarity. We are also flexible in exploring alternative strategies to non -mandatory rotation policies.

In any business, however, turnover is inevitable. If and when it happens, we will provide summaries of suggested replacements and will discuss re -assignments prior to finalizing. We have a number of qualified staff members to provide the City with quality service over the term of the engagement.

CLA is committed to maintaining high staff retention rates, which we believe are a strong indicator of service quality. High retention rates also indicate that our staff members have the resources they need to perform their tasks and maintain a positive work/life balance.

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6. Similar Engagements
The city can benefit from deep, national industry experience, complemented by a team dedicated to accessibility and responsiveness. We are pleased to provide you with the following references, who can describe their experience in greater detail.

City of Pasadena 2020 — Present
Client Contact Sam Pangan, CPA, Principal Accountant
Phone Number 1 Email 626-744-4443 1 [email protected] Services Provided
City, Water & Power, and Single Audits; All -funds Audit; Air Quality Management District Audit; Successor Agency Audit; Other Component Unit Audits
Engagement Principal Robert J. Callanan
Total Staff Hours 900
City of Irvine 2016 — Present
Client Contact Teri Washle, Finance Officer
Phone Number 1 Email 949-724-6031 1 [email protected] Services Provided
City and Single Audits; Air Quality Management District Audit; Other Component Units; Pension Plans
Engagement Principal Robert J. Callanan (to 2020); Nitin Patel (Present) Total Staff Hours 570
City of Rancho Palos Verdes 2018 — Present
Client Contact Trang Nguyen, Director of Finance
Phone Number 1 Email 310-544-5278 1 [email protected]
Services Provided City and Single Audits; State Controller's Report; Improvement Authority Engagement Principal Robert J. Callanan
Total Staff Hours 350
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City of Signal Hill 11W 2 01 8 — Present
Client Contact Sharon del Rosario, Finance Director
Phone Number 1 Email 562-989-7319 1 [email protected] Services Provided City and Single Audits; State Controller's Report Engagement Principal RobertJ. Callanan
Total Staff Hours 350
City of La Palma 2017 — Present
Client Contact Mike Matsumoto, Contract Audit Liaison
Phone Number 1 Email 714-287-4061 1 [email protected] Services Provided City and Single Audits
Engagement Principal RobertJ. Callanan
Total Staff Hours 325
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7. Specific Audit Approach
Seamless assurance advantage: a different way to audit
Many organizations view an audit as a requirement that doesn't contribute to their overall operations or value.

At CLA, we believe an audit should be an annual check-up that gives you insight into your organization, allowing you to take advantage of opportunities and improve your operations.

Our industry experience makes it easier — CLA auditors are industry aligned, making our audit process fast and smooth. We focus on operational efficiency and leverage our industry experience to bring you meaningful insights that go beyond compliance requirements. A dedicated team of professionals will listen to your goals and concerns, then work with you to navigate industry pressures, changing markets, and complex standards, all with a common goal to drive your business toward success.

Your time has value — Your day is filled with competing priorities and constant distractions. We elevate your experience by utilizing a variety of communication tools, such as a web -based document portal, video conferencing, email, and phone calls, to keep everyone informed and on track. These tools provide ultimate flexibility so that you can choose where and how your audit is performed. In contrast to a traditional engagement, where a team spends weeks on site at your location, our Seamless Assurance Advantage focuses on having the right team members on your engagement and isn't dependent upon any physical locations.

A simple transition — We recognize changing accounting firms presents an opportunity as well as a challenge.

Our approach deliberately and effectively minimizes the impact of transition.

Selecting a team
We select a team experienced in
transitioning new clients to provide
an effective bridge.
0 0 0
MMM
Arriving prepared
for fieldwork
We provide you with an extensive
listing of necessary information
in the early planning phase of
your engagement, giving you
adequate time to gather
necessary information.

We mitigate
onboarding
issues.

Minimizing your workload
Our planning process involves
reviewing prior year workpapers,
using workpapers routinely
prepared as part of your monthly
close process, and sharing
templates we have developed
for your industry.

Investing in our
relationship
We spend additional time
gaining an understanding
of your organization and
forming relationships.
70-21
mt,111
No surprises — We will provide the City with a no surprises approach to our services, based on frequent and timely communication and clarity around roles and expectations. If and when issues arise during your audit, we engage the right people in a frank discussion to resolve them.

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Significant involvement of principals and managers — Because our principals and managers are directly involved in your engagement, we can proactively identify significant issues and resolve them with your management. We believe that your time is best spent with key decision makers so that you can ask clarifying questions, discuss organizational strategies, and navigate sensitive reporting issues.

We tailor the audit just for you — While our audit programs provide typical approaches for given audit areas, CLA designs a client -specific, risk-based audit approach for each client. We use custom, industry -tailored programs, procedures, and tools that are designed specifically to focus on the issues that are applicable to state and local government.

In response to your request for an audit of all funds, we will enhance our audit approach by designing and performing our audit procedures based on materiality levels determined for each individual fund that is maintained in the City's Sungard BiTech Public Systems general ledger. A standard audit approach only requires materiality to be assessed on the City's major funds and the nonmajor funds in the aggregate.

You'll learn about what we're doing and what we've found in plain, everyday language. We believe our services can contribute to better business and administrative practices. By working closely with your staff, CLA continuously learns about your organization. This involvement enables us to offer you recommendations for improvements in your systems and procedures that are more comprehensive, better understood, and more frequently implemented.

The CLA audit methodology utilizes a five -phase approach.

Phase 1
Assessment
Phase 2 Phase 3
Planning and Systems
strategy evaluations
Phase 4
Testing and
analysis
Phase 5
Reporting and
follow up
When performing an audit, we are sensitive to and understanding of the fact that we report to those charged with governance. We maintain objectivity and independence in order to be able to issue our audit opinions. We will act within our philosophy of total client service, maintain the professional relationship refined with management, and fulfill our responsibilities with the utmost professionalism.

We begin the audit with in-depth assessment and planning phases and culminate with the timely delivery of our reports. We will work with you immediately upon receipt of a signed engagement letter to coordinate and schedule the engagement to minimize any potential disruptions to your business. We will then work with you to finalize dates that accommodate your schedules.

Year-long support — We encourage your staff to take advantage of our accessibility throughout the year for questions that may arise. Our people, working with you and your staff, can provide proactive advice on new accounting or GAAP pronouncements and their potential impact, help with immediate problems including answers to brief routine questions, and share insights and best practices to assist you in planning for your future success.

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Phase 2111 Phase 3
Major program Final assessment
III
testing and reporting
jia
Summary of benefits
The City will realize the following benefits from CLA's services:

An objective look at your operations to help you make sound business decisions.

Credibility only an outside professional can provide to your constituencies and stakeholders.

Confidence that accounting principles have been evaluated for application accuracy.

An opportunity to improve internal controls and accounting procedures, which increases reliability of accounting records and financial statements.

Improved efficiency and effectiveness of the assurance service, thus adding value to the process while reducing disruption to your operations.

Single audit approach
The OMB's Uniform Guidance (2 CFR Part 200) is effective for federal grants made on or after December 26, 2014. This affects how federal grants are managed and audited and impacts every organization that receives federal assistance. Grant compliance can be a confusing topic and many of our clients rely on their federal funding as a major revenue source, so it is important that they understand what these changes mean to their organization. As a leader in the industry, CLA was out in front of these changes and informed our clients of how to be proactive about these changes and how they could impact their entity. CLA professionals are available to provide guidance and tools tailored to the City's needs, and to assist in compliance with these rules.

The AICPA clarified auditing standard, AU -C 935 "Compliance Audits," requires risk-based concepts to be used in all compliance audits including those performed in accordance with 2 CFR Part 200. Our risk-based approach incorporates this guidance.

We will conduct our single audit in three primary phases, as shown, below:

Phase 1
Risk assessment
and planning
rf—]i
r �
PHASE 1: RISK ASSESSMENT AND PLANNING
The risk assessment and planning phase will encompass the overall planning stage of the single audit engagement. During this phase, we will work closely with the City's management to determine that programs and all clusters of programs are properly identified and risk -rated for determination of the major programs for testing. We will also review the forms and programs utilized in the prior year to determine the extent of any changes which are required.

We will accomplish this by following the methodology below:

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• Determine the threshold to distinguish between Type A and B programs, including the effect of any loans and loan programs
• Utilizing the preliminary Schedule of Expenditure of Federal Awards, we will identify the Type A and significant Type B programs (25% of Type A threshold) in accordance with the Uniform Guidance • Identify the programs tested and the findings reported for the past two fiscal years. Determine and document the program risk based on the past two single audits • Prepare and distribute Type B program questionnaires to determine risk associated with Type B programs • Determine the major programs to be tested for the current fiscal year based on the previous steps • Based on our determination of the major programs, we will obtain the current year compliance supplement to aid in the determination of Direct and Material Compliance requirements, and customize the audit program accordingly
• Determine the preferred methods of communication during the audit PHASE 2: MAJOR PROGRAM TESTING
We will determine the programs to be audited based on the risk assessment performed in the planning phase.

We will perform the audit of the programs in accordance with UG.

To accomplish this, we will perform the following:

Schedule an introductory meeting and notify the City's management of the major programs for the current fiscal year
Plan and execute the testing of the expenditures reported on the Schedule of Expenditures of Federal Awards
Perform tests of compliance and internal controls over compliance for each major program identified Schedule periodic progress meetings to determine that schedules are adhered to and identify issues as they arise
• Conduct entrance and exit conference meetings with each grant manager PHASE 3: FINAL ASSESSMENT AND REPORTING
We will re -perform the steps noted in the preliminary assessment and planning stage once the final Schedule of Expenditures of Federal Awards is received to determine if additional major programs were identified.

Based on the final determination of the programs we will perform the following:

Identify Type A and significant Type B programs which were not previously identified.

Re -assess the risk and determine if we are required to audit additional programs.

Perform compliance testing at the entity wide level related to procurement and cash management requirements.

Perform testing to validate the status of prior year findings for those programs not selected for audit.

Prepare the Schedule of Findings and Questioned Costs.

Conduct exit conference with the City's management to review drafts of required reports:

Independent Auditors' Report on Internal Control over financial reporting and on compliance and other matters based on an audit of Financial Statements Performed in Accordance with Government Auditing Standards
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©2022 CliftonLarsonAllen LLP 1 16

Independent Auditor's Report on Compliance for Each Major Federal Program, Report on Internal Control Over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
Throughout the single audit, we will maintain communication through periodic progress meetings with those designated by the City. These meetings will be on a set schedule, but as frequently as the City determines.

During these meetings, we will discuss progress impediments and findings as they arise. a. Engagement timetable
Our project management methodology results in a client service plan that provides for regular, formal communication with the entire management team and allows us to be responsive to your needs. The schedule allows for input from your personnel to make certain that the services are completed based on your requirements.

Significant Milestones Target Dates
Entrance conference May 3, 2022
Interim audit work begins August 1, 2022
Field audit work begins October 3, 2022
Draft reports November 30, 2022
Financial audit oversight committee meeting December 15, 2022 Final distribution of reports December 31, 2022
Once fieldwork commences each year, progress reports will be made on at least a monthly basis to the finance director and/or accounting manager. An exit conference to summarize the results of the fieldwork and to review significant findings will occur on the last day of fieldwork or shortly thereafter.

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©2022 CliftonLarsonAllen LLP 1 17

b. Level of staff and number of hours to be assigned
Our project management methodology results in a client service plan that provides for regular, formal communication with the entire management team and allows us to be responsive to your needs. The schedule allows for input from your personnel to make certain that the services are completed based on your requirements. The plan may also be amended during the year based on input from the Internal Auditor.

Please see the below chart for the level of staff and approximate number of hours to be assigned to each proposed phase:

Financial Statement Audit
Engagement
Segment
Principal
Manager
Seniors
Associates
CIerical
Total
Hours
Planning and
strategy
10 14 16 6 2 48
Systems
evaluations
8 14 22 36 80
Testing and
analysis
8 16 50 95 169
Reporting and
follow up
22 27 40 18 26 133
Total
48 71 128 155 28 430
Single Audit
Engagement
Segment
Principal
Manager
Seniors
Associates
Clerical
Total
Hours
Risk
assessment 1 2 2 5
and planning
Major
program
testing
8 20 28
Final
assessment
and reporting
1 2
2 2 7
Tota! 2 4:: 12
20 2 40
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c. Sample size and statistical sampling
We follow the guidance of AU -C Section 530, Audit Sampling, in using statistical and nonstatistical approach. We use quality control material in all our audit engagements. These forms guide our staff through a logical process of assessing inherent risk, control risk, and combined audit risk, followed by an assessment of appropriate sample size for testing.

Because our sample sizes are affected by many variables, a statement about sample sizes cannot be made in absolute terms. However, regarding sample selection, we will generally utilize representative sampling for internal control and compliance tests, including those related to single audit compliance. Samples will also be used in conjunction with other tests of compliance (e.g., California Statutes, City Ordinances, etc.).

In general terms, sample sizes for compliance and controls testing obtained via our guidance usually fall into categories of 25, 40, or 60 depending on circumstances. Where the population being tested is less than 100 items, we will use the 20%, 30%, or 40% of the population depending on our control risk assessment.

In response to your request for an audit of all funds, for purposes of internal control testing of the City's cash receipts, cash disbursements, and payroll disbursements systems, at a minimum, we will start with a sample size of 40.

We are usually able to cover a substantial portion of the compliance and controls testing with one sample, resulting in a very efficient approach.
d. Procedures used to understand internal
processes and controls
We understand changing audit firms would require a new set of auditors to develop an understanding of the City and its internal control and operating structure. We also strive to develop our understanding in the least intrusive manner possible, while still maintaining our professional responsibilities. We would utilize a combination of internal control forms and interviews with key accounting personnel to gain and document our understanding of the City. We will also use as a baseline any existing internal control processes, policies, organizational charts, etc. the City may have already documented. Tests of design and operating effectiveness would then be performed to confirm our understanding.

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a framework for internal control systems. Under the COSO framework, internal control is a process to provide reasonable assurance that those internal objectives, including effectiveness and efficiency of business operations, reliability of financial reporting, and compliance with applicable laws and regulations, will be met.

Our audit approach is designed to evaluate and test the departmental internal controls in accordance with COSO concepts. Our procedures include a review of the overall control environment, determination of the internal controls which are determined to be direct and material to the federal program under review, determination of the adequacy of those procedures, and testing of the procedures to determine if they are functioning as designed.

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During the planning and internal control phases of our audit, we will develop our understanding of the City business operations and internal control structure for financial accounting and relevant operations through observation, discussion, and inquiries with management and appropriate personnel. During this phase of the audit, we will review budgets and related materials, organization charts, accounting and purchase manuals, and other systems of documentation that may be available.

Once we understand your operations, we will then identify control objectives for each type of control that is material to the financial statements. The next step will be to identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. We will then determine the nature, timing, and extent of our control testing, and perform tests of controls.

This phase of the audit will include extensive testing of controls over transactions, financial reporting, and compliance with laws and regulations. Whenever possible, we will use dual-purpose tests to reduce the need to select multiple samples for internal control and compliance testing. We will be as efficient as possible, thereby reducing the disruption to your operations while achieving our audit objectives.

Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met:

Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets Assets are safeguarded against loss from unauthorized acquisition, use, or disposition Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements
Our workpapers during this phase will clearly document our work through preparing the following for each significant transaction cycle or accounting application:

Audit program
Cycle memo and supporting documentation
Account risk analysis (ARA)
Specific control evaluation (SCE)
e. Approach to be taken in determining laws and regulations that will be subject to audit test work
We will obtain an understanding of the laws and regulations that impact the City's operations by reviewing council minutes to identify any ordinances or resolutions that might have an impact to operations and reporting by the City, as well as interview key personnel and management of the City. The staff assigned to the engagement attend regular trainings and are well versed in upcoming legislation and federal and state laws (i.e., Uniform Guidance) and proactively discuss these upcoming changes with our clients.

We will also review current operations, contracts and IGA's that may impact current operations. f. Approach to be taken in drawing audit samples for purposes of tests of compliance
Please refer to item 7. c.

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8. Identification of Anticipated Potential Audit
Problems
In situations where authoritative guidance on a particular transaction or accounting issue is unclear or subject to interpretation, our approach is to proactively meet with management to discuss the issue and reach a conclusion that is hopefully agreed upon by both parties. We do not have specific firm policies that dictate our conclusions to be reached on all complex accounting issues. Rather, each issue must be evaluated independently by our engagement team. As discussed above, we will not only meet internally, but also facilitate discussion with the City's management team in order to obtain a mutual understanding of the particular accounting issue, determine the applicable authoritative guidance that most closely relates to the issue, and strive to reach an approach agreed upon by both parties. If there remains any ambiguity or disagreement, we can explore other resources that could possibly assist, such as subject matter professionals within the Government Accounting Standards Board staff or the Government Finance Officers Association (GFOA) or perhaps other municipalities who may have dealt with similar issues.

At this time, we have not identified any anticipated potential audit problems.

Assistance from client
We request that the City provide access to all records required for the audits and other requirements of the contract. In addition, we request that you assign a "project coordinator" through whom we will communicate and coordinate activities. We do not foresee needing the City's staff other than during normal business hours.

To assist in this process, we will provide a detailed Prepared by Client list early in the engagement. We will ask that your accounting staff provide us with standard schedules, as well as additional requested supporting items.

We anticipate that your accounting personnel will need to locate and submit to us certain invoices, vouchers, cancelled checks, and other documents and records. We are extremely flexible as to the format in which we receive this information and will determine through the latest technology that your personnel will not be asked to perform any unnecessary or extensively disruptive tasks.

We will depend on your staff to provide us with as much information as possible, to try to limit everyone's time on the engagement and, ultimately, to save your organization money.

9. Response to City Standard Two -Party Agreement
CLA does not take objections to the City's standard two-party agreement provided that it is clear that the ownership of the audit workpapers lies with CLA in accordance with generally accepted auditing standards.

City's standard form of agreement shall be the basis of the agreement between the City and the firm selected.

�T.

Robert J. Callanan, CPA
CLA (CliftonLarsonAllen LLP)
IPrincipal
Irvine, California
714-795-5354
[email protected]
Profile
Robert is an assurance principal at CLA's Irvine office, formerly White Nelson Diehl Evans LLP (WNDE). He has more than 30 years of experience. Bob's focus knowledge is in audit, assurance, and consulting services for governmental agencies, including cities, special districts, and non-profit organizations.

Technical experience
• Local government, including nonprofits, cities and special districts Education and professional involvement
• Bachelor of arts in business administration from Aquinas College, Grand Rapids, Michigan • Bachelor of science in accounting from Aquinas College, Grand Rapids, Michigan • American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CaICPA • California Society of Municipal Finance Officers (CSMFO) • California Governmental Accounting and Auditing Committee • California Committee on Municipal Accounting
• Government Finance Officers Association (GFOA)
Local government experience
Cities:
• Alhambra Campbell Chino
• Del Mar Irvine La Palma
• Monterey Park Newport Beach Norco
Pasadena * San Buenaventura Signal Hill
• Rancho Palos Verdes Vernon
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©2022 CliftonLarsonAllen LLP 1 A-2

Special Districts:

Greater Los Angeles County Vector Control District
Orange County Mosquito and Vector Control District
Pico Rivera Water Authority
Pomona Walnut Rowland Joint Water Line
Commission
Rowland Water District
Southeast Water Coalition
Sunset Beach Sanitary District
Surfside Colony Stormwater Protection
District
Surfside Community Services District
Sunset Beach Sanitary District
Surfside Colony Stormwater Protection
District
Surfside Community Services District
Ventura Port District
Continuing professional education
2021 Total Hours
Owner Promise Meeting 2022 14.0
State and Local Gov (SLG) learning series - Part 5 2.0
CLA 2021 California State and Local Government Training Academy 4.0 State and Local Gov (SLG) learning series - Part 4 2.0
State and Local Gov (SLG) learning series - Part 3 2.0
State and Local Gov (SLG) learning series - Part 2 2.0
State and Local Gov (SLG) learning series - Part 1 1.0
CLA American Rescue Plan Act of 2021- Perspectives and Lessons Learned for 1.5 Government Organizations
Ethics for California CPAs 4.0
The Anti -fraud Playbook 2.0
A Best Practice Electronic Payment Fraud Avoidance Program 2.0 2021 February GAAC Meeting 4.0
Single Audit Methodology - Legacy WNDE and Legacy Atkinson 3.0 2020
Keynote Speaker Rebecca Ryan
Investment Portfolio Solutions Working with an Advisor or Going it Alone GASB Update Projects Under Construction
Keynote Speaker Jeffrey Barnes
Understanding the LIBOR Transition
7 Solutions to Addressing Pension Liabilities
It's the Housing Supply, stupid
GA&A Committee Meeting
Risky Business - Conducting Remote Audits in Uncertain Times Heard in the Hallways: Commonly Asked Yellow Book Questions COVID-19: Analyzing Revenue and Cash Flow
Gov't Accounting & Auditing Virtual Conference
Government Interim Training
Independence Gov't
2020 OMB Compliance Supplement and Single Audit Update
Risk Assessment - Government Audits
Government Accounting, Auditing and Reporting
2020 Single Audit Update
Create Opportunities

43.5 1.0

1.5 1.5

1.0 1.5

1.5 1.5

4.0 1.0

2.0 1.5

9.0 4.0

1.0 2.0

2.0 3.0

2020 Single Audit Update
Assurance & Tax Policies and Procedures - Legacy WNDE
Technology Overview - Legacy WNDE
Assurance Methodology - Legacy WNDE
Think Security: Don't be a Target
2019
CSMFO - Fiscal Distress: Early Warning Signs and Best Practices of Recover CSMFO - Don't be a Victim of Fraud: Profile of a Perpetrator CSMFO - Exploring Leadership in a Deeper Way
CSMFO - GASB Update - The Standards Section
Annual Governmental GAAP Update
Spidell Tax Webinar - Federal and California
2019 GACQAnnual Update Webcast
Governmental Auditing
Risk Assessment Considerations in a SLG Financial Statement Audit GASB Implementation Guides for Fiduciary Activities and Leases GAA Committee Meeting
Annual Governmental GAAP Update
Team Effectiveness
CI Arnnnort rnalm
WEALTH ADVISORY 1 OUTSOURCING 1 AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor.

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3.0 4.5

2.5 4.5

1.0 57.0

1.5 1.5

4.0 8.0

2.0 4.0

2.0 2.0

4.0 4.0

�T.

Nitin P. Patel, CPA
CLA (CliftonLarsonAllen LLP)
IPrincipal
Irvine, California
714-795-5387
[email protected]
Profile
Nitin is an assurance principal at CLA's Irvine office, formerly White Nelson Diehl Evans (WNDE). He has more than 34 years of experience and specializes in audit assurance and consulting services for governmental agencies, including cities and special districts, as well as tax services for individuals.

Nitin has experience in supervision of more than a hundred audits of governmental agencies including cities, successor agencies/redevelopment agencies, nonprofit corporations, joint powers authorities, and special districts. He also provides consulting services for governmental agencies including special internal control reviews, cost allocation plans, cable television rate reviews, reviews of City Treasurer operations, and transient occupancy tax reviews of city hotels/motels.

Technical experience
Local government, including cities, joint powers authorities, and special districts Education and professional involvement
Bachelor of art in economics from University of California, Irvine, California Bachelor of science in biological science from University of California, Irvine, California American Institute of Certified Public Accounts (AICPA), member California Society of Certified Public Accountants (CaICPA), member California State Municipal Finance Officers (CSMFO), member Government Finance Officers Association (GFOA), member
California State Committee for Governmental Auditing and Accounting Local government experience
Cities:

Colton La Habra San Gabriel Tustin
Covina Laguna Hills San Juan Capistrano Victorville
El Segundo Norwalk Santa Ana West Hollywood
Gilroy Orange Santa Barbara Westminster
Special Districts:

Calleguas Municipal Water District
Coachella Valley Water District
Laguna Beach County Water District
La Habra Heights County Water
District
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Mesa Water District South Coast Water District
Orange County Water Western Municipal Water
District District
Serrano Water District
©2022 CliftonLarsonAllen LLP 1 A-5

Continuing professional education
2021 Total Hours
2021 February GAAC Meeting 1.5
2021 GASB Update 1.5
Assurance Quarterly Update - Q2 2021 1.5
Assurance Quarterly Update - Q4 2021 1.5
Audit Report Changes: SAS 134, 135, 137, 139 and 140 1.5 Audit Risk Assessment 4.0
CLA 2021 California State and Local Government Training Academy 4.0 CLA American Rescue Plan Act of 2021: Perspectives and Lessons Learned for Government Organizations 2.0
CLA Demystifying Revenue Loss and ARPA Funds 2.0
Coaching for Inspired Careers - May 2021 4.0
Effective Compensation Conversations 4.0
Risk Management Q4 2021 1.0
Single Audit Methodology - Legacy WNDE and Legacy Atkinson 2.0 Single Audit Update 2021 2.0
State and Local Gov (SLG) learning series - Part 1 2.0
State and Local Gov (SLG) learning series - Part 2 2.0
State and Local Gov (SLG) learning series - Part 3 3.0
State and Local Gov (SLG) learning series - Part 4 2.5
State and Local Gov (SLG) learning series - Part 5 4.0

61.0 2020
GASB Update Projects Under Construction 1.5
Investment Portfolio Solutions: Working with an Advisor or Going it Alone 1.5 Protecting Your Entity from Fraud 1.5
It's The Housing Supply Stupid 1.5
Are You Ready for the New Fiduciary Activities Rules? 1.5 Spideli's 2020 4 -Hour Ethics Course 4.0
Yellow Book Overview and Update Including 2018 Revisions 4.0 GASB Statement 87 Leases 2.0
GASB Other Postemployment Benefits (OPEB) 2.0
Government Interim Training 4.0
Government/Fund Accounting: Introduction to Government Accounting, Financial Reporting and Financial Statement Analysis 4.0
Independence Gov't 1.0
GASB Conceptual Framework: Disclosures 2.0
A Guide Through Common Audit Deficiencies 2.0
2020 GASB Update 2.0
Risk Assessment - Government Audits 2.0
Government Accounting, Auditing and Reporting 3.0
2020 Single Audit Update 2.5
GAA Committee Meeting October 2020 4.0
Assurance & Tax Policies and Procedures - Legacy WNDE 4.5 Create Opportunities
©2022 CliftonLarsonAllen LLP 1 A-6

Technology Overview - Legacy WNDE
Assurance Methodology - Legacy WNDE
Think Security: Don't be a Target
Financial Statement Fraud
2019
Accounting Fraud: What We Can Do Better
GASB 87 & Lease Accounting: Its Coming, How to Prepare
Numbers Are My Friend: Why do I Need to Talk About Them? Don't be a Victim of Fraud: Profile of a Perpetrator
Connie Podesta - Exploring Leadership in a Deeper Way
GFOA Annual GAAP Update 2018
2019 GAQC Annual Update Webcast
Governmental Accounting & Auditing Conference Webcast
ACFR Preparation
Governmental Auditing
GASB Update the Implementation Guides are Here
GASB Implementation Guides for Fiduciary Activities and Leases GAA Committee Meeting
Annual GAAP Update
Team Effectiveness
CLAco nnect.com
WEALTH ADVISORY 1 OUTSOURCING 1 AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor.

Create Opportunities

2.5 4.5

1.0 2.5

61.0 4.0

1.5 1.5

4.0 2.0

8.5 3.5

4.0 2.0

2.0 4.0

4.0 7.0

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Robert Peri, CPA
CLA (CliftonLarsonAllen LLP)
Manager
Irvine, California
714-795-5458
[email protected]
Profile
Rob is an assurance manager at CLA's Irvine office, formerly White Nelson Diehl Evans (WNDE). He has more than 14 years of experience in performing audits and consultations for government agencies and non-profit organizations, including single audits. He is also well versed in data analytics and cybersecurity for finance and accounting. His diverse client base includes organizations in the non-profit, governmental, financial services, manufacturing, distribution, and agriculture industries.

Technical experience
• Local government agencies, including cities, nonprofits, and special districts • Financial services
• Manufacturing and distribution
• Agriculture
• Data analytics
• Cybersecurity for finance and accounting
Education and professional involvement
• Bachelor of accounting from Brigham Young University, Laie, Hawaii • American Institute of Certified Public Accountants (AICPA), member • California Society of Certified Public Accountants (CaICPA), member Local government experience
Cities:

Burbank • Lancaster • Santa Ana
• Gilroy • Murrieta • Victorville
Special District:
• Monterey Peninsula Regional Park District
Continuing professional education
2021
Seamless Conference 2021
Risk Management Q4 2021
Assurance Quarterly Update - Q4 2021
Audit: Be in the Know 2021
Assurance Quarterly Update - Q3 2021
State and Local Gov (SLG) learning series - Part 5
Create Opportunities

2.8 1.0

2.2 4.4

GASB Update for State and Local Government - #2 2.2
CLA 2021 California State and Local Government Training Academy 3.0 CLA 2021 California State and Local Government Training Academy 3.0 GASB Update for State and Local Government - #1 2.2
Single Audit Update 2021 2.4
State and Local Gov (SLG) learning series - Part 4 2.4
CLA Cybersecurity Compliance - Are You Accidentally Breaking the Law? 1.0 State and Local Gov (SLG) learning series - Part 3 2.4
Assurance Quarterly Update - Q2 2021 2.2
2021 Yellow Book and Single Audit Update 2.2
State and Local Gov (SLG) learning series - Part 2 2.4
State and Local Gov (SLG) learning series - Part 1 2.2
CLA American Rescue Plan Act of 2021- Perspectives and Lessons Learned for Government Organizations 1.8
2021 Yellow Book and Single Audit update 2.0
Revenue Risks: Identifying and Determining Responses (Industry Agnostic) 1.0 Single Audit Methodology - Legacy WNDE and Legacy Atkinson 3.0

49.8 2020
Think Security: Don't be a Target
Nonprofit and State & Local Government Learning Series #6 2020: Single Audit Update #2 Assurance Methodology - Legacy WNDE
Technology Overview - Legacy WNDE
Introduction to Fraud Auditing
Assurance & Tax Policies and Procedures - Legacy WNDE
2020 Single Audit Update
Government Accounting, Auditing and Reporting
Government Risk Assessment - 07/28/20 Makeup
EBP Fundamentals Part IV Financial Statements and Concluding the Audit Basics of EBP Investments - Part 1
2020 EBP Update Series - Part III (Audit, Accounting and Regulatory Updates) 2020 EBP Update Series - Part I (Advances in EBP Audits) 2020 EBP Update Series - Part II (EBP Audit Quality)
Independence Gov't
Government Interim Training
Spidell's 2020 4 -Hour CPA Ethics
GASB Update - Projects Under Construction
GASB Update the Implementation Guides are Here
Are You Ready for the New Fiduciary Activities Rules
Read All About It: The Blue Book Has Been Updated

1.0 2.0

4.5 2.5

4.0 3.0

2.5 3.0

2.0 3.0

1.0 1.5

1.5 1.0

1.0 4.0

4.0 1.5

1.5 1.5

1.5 47.5
2019
CSMFO Conference 12.5
GOFA Government GAAP Update 4
Coaching Conversation 7
ACFR Prep 3.5
Create Opportunities
©2022 CliftonLarsonAllen LLP 1 A-9

Government Audits: Excel, Final Fieldwork, Single Audit Sample Selection 3.5 Governmental Accounting 4
GAAP Update 4

38.5 .CLAconned..coim
WEALTH ADVISORY 1 OUTSOURCING 1 AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor.

James P. Kreiser, CISA, CRMA, CFSA
CLA (CliftonLarsonAllen LLP)
IPrincipal, Business Risk and IT Services 717-558-0860
Harrisburg, Pennsylvania [email protected]
Profile
Jim is a principal in the CliftonLarsonAllen LLP (CLA) specialized advisory services group. He has 22 years of professional services experience in providing consulting and advisory services. Jim spent 10 years of his experience working at a Big 4 firm in their business risk and technical risk services groups. His experience also includes internal audit roles at CitiBank, AMP, and Capital BlueCross. Jim has held roles of chief risk officer, general auditor, and others. His focus has primarily been in the governmental sector, health care, and financial institutions. At CLA, Jim has focused on clients particularly on consulting, IT, internal audit, and third -party reporting services.

Technical experience
Jim's experience includes managing and leading projects, which include engagements related to outsourced and co -sourced internal auditing, IT audit, third -party reviews and performance audits, enterprise risk management processes, IT security and auditing services, SSAE 16 reporting (SOC 1 and SOC2), operational improvements, process solutions and implementation for those solutions across the organization.

His primary focus for the firm is in the Public Sector Group (State and Local Government, Higher Education, and Non -Profit organizations).

His service experience is business risk, IT, and internal audit services. Specific experience includes, but is not limited to, the following:
• Internal audit outsourcing and co -sourcing, including information technology, financial, performance audits, and operational audits.
• IT security and risk consulting
• Enterprise -wide risk assessments.
• IIA Quality Assurance Reviews (QAR)
• Vendor mangement and Implementation Assessment
• Compliance related activities and benchmarking
• Presentations and Training; including speaking at various conferences/professional organizations on IT controls, Security, ERM, and third -party reporting, and risk management.

Education and professional involvement
• Bachelor of science, Carnegie Mellon University — Pittsburgh, Pennsylvania o BS of managerial economics
o BS of philosophy
• Certified Information Systems Auditor
• Certified in Risk Management Assurance
• Certified Financial Services Auditor
Key relevant clients
• Maryland Transportation Authority
• Washington State Department of Transportation
• The Pennsylvania State System of Higher Education
• Commonwealth of Pennsylvania
• State of Rhode Island
• Maryland Department of Budget and Management
• West Virginia Higher Education Policy Commission
• State of Delaware
• Haverford College
• California Housing Finance Agency
Continuing professional education
2021
CLA 2021 California State and Local Government Training Academy 3.0 CLA Commonwealth of PA Government Technology and Internal Controls Training Day -2021 0.0
CLA Commonwealth of PA Government Technology and Internal Controls Training Day -2021 1.0
CLA American Rescue Plan Act of 2021— Perspectives and Lessons Learned for Government Organizations 4.0
CLA Commonwealth of PA Government Internal Controls & Soft Skills Training Day -2021 3.0
CLA Commonwealth of PA Government Internal Controls & Soft Skills Training Day -2021 1.5
IT & Cybersecurity Conference 2021 (GRC Track 1): FAS Training & Completion Steps 1.0
IT & Cybersecurity Conference 2021: Day 1 General Session 3.0 IT & Cybersecurity Conference 2021: Day 1 General Session 2.0 CLA Commonwealth of PA Government Ethics & Soft Skills Training Day -2021 3.0 CLA Commonwealth of PA Government Ethics & Soft Skills Training Day -2021 2.0 Total: 23.5
2020
Detailed Review Assurance
CLA Accounting & Soft Skills Training Day -2020
Create Opportunities

SOC and the Cloud 1.0
Think Security: Don't be a Target 1.0
Coaching for Inspired Careers December 2020 1.0
2020 CLA Industries Celebration 3.0
CLA Commonwealth of PA Government Soft Skills and Internal Controls Webinar-2020 0.0
CLA State of Vermont August Training -2020 4.5
CLA Commonwealth of PA Government Technology Webinar Day 2-2020 0.0 CLA Commonwealth of PA Government Technology Webinar Day 1-2020 2.0 CLA State and Local Government Training Webinar Conference - June 2020 4.0 CLA Commonwealth of PA Government Accounting & Technology Webinar- 2020 4.5
ISSG Conference 2020 4.0
CLA Commonwealth of PA - Risk & Controls Day - January 2020 9.0 Total: 36.0
2019
Independence and Ethics Update 2019 2.0
Introduction to Software Assessment and Selection Services 1.0 CLA Preventing and Responding to Ransomware Attacks at State and Local Governments 0.0
SOC Updates 2019 3.0
CLA How to Verify Your SOC 2 Exam Keeps Pace with Cybersecurity Risks 0.0 CLA Commonwealth of PA - IT Day August 2019 0.0
CLA 2019 Government Training Academy -Maryland 3.0
CLA 2019 Government Training Academy -Maryland 0.0
CLA Commonwealth of PA -Audit Day July 2019 4.0
CLA Commonwealth of PA -Audit Day July 2019 0.0
CLA Commonwealth of PA -June 2019 Training 4.5
2019 Regulated Industries Conference: Tuesday A.M. General Session 4.0 2019 Regulated Industries Conference: State & Local Government Tuesday P.M. Breakout 3.5
CLA Vermont Training -May 2019 4.0
CLA Vermont Training -May 2019 3.0
CLA 2019 Vermont Training 2.0
EBP Update Part 2 2019 2.0
Hands-on IT Auditing: Stay One Step Ahead of the Hackers 4.5 SOC Training 2019 7.0
CLA Commonwealth of PA -March 2019 Training 5.0
CLA Commonwealth of PA -March 2019 Training 9.0
Total: 61.5
2018
Create Opportunities
©2022 CliftonLarsonAllen LLP 1 A-13

CLA Improving Operations and Managing Risk Improving Operations and Managing Risk in Skilled Nursing Facilities 2.0
CLA Improving Operations and Managing Risk Improving Operations and Managing Risk in Skilled Nursing Facilities 3.0
CLA 2018 Government Training Academy -Maryland 2.0
CLA 2018 Government Training Academy -Maryland 3.0
CLA Commonwealth of PA — May Training 3.0
CLA AGA — Dover Capital Chapter — Annual Professional Development Training 6.0 CLA Commonwealth of PA — April Training 4.0
CLA Commonwealth of PA—April Training 9.0
Total: 32.0
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WEALTH ADVISORY 1 OUTSOURCING 1 AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor.

Placentia City CouncilJuly 19, 2022

Placentia City Council
July 19, 2022