CITY OF POMONA
COUNCIL REPORT
June 6, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Andrew Mowbray, Finance Director/City Treasurer SUBJECT: AWARD OF A THREE YEAR CONTRACT TO BADAWI & ASSOCIATES FOR A TOTAL OF $216,015 TO PERFORM AN INDEPENDENT AUDIT OF THE CITY AND CITY AGENCIES FOR THE FISCAL YEARS ENDING JUNE 30, 2023, 2024, AND 2025.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Award of a three-year contract to Badawi & Associates for a total of $216,015 to perform an Independent Audit of the City and City Agencies for the fiscal years ending June 30, 2023, 2024, 2025; Authorize the City Manager or his designee to execute the contract on behalf of the City.
EXECUTIVE SUMMARY:
The City of Pomona Charter states that the City will open the audit contract to competitive bids every three years and award the contract no later than thirty days after the beginning of such fiscal year. The Finance Department solicited requests for proposals (RFP) for auditing services covering three fiscal years on Planet Bids to various certified public accounting firms with governmental expertise. Final scores were tabulated based upon the proposal review, cost, and interviews. The final rankings are listed in Table 1.
FISCAL IMPACT:
The total cost of the Audit Services contract will be $216,015 over three years. Fiscal Year 2022-23 will the first year of service at a cost of $69,845. The first-year cost is included in the proposed FY 2022-23 budget appropriated over various funds in object code 52180 (Audit Contract Services).
PUBLIC NOTICING REQUIREMENTS:
Noticing requirements set forth in Section 2-970 of the City’s Purchasing Ordinance requires that a notice requesting proposal be published at least 10 days before the date of the opening have been met. The request for proposals was published March 10, 2022 with a bid due date of April 4, 2022.
PREVIOUS RELATED ACTION:
Lance Soll & Lunghard LLP was awarded a three year contract to perform an Independent Audit of the City and City Agencies for the fiscal years ending June 30, 2020, 2021, and 2022 on September 5, 2019.
The PUN Group LLP was awarded a three year contract to perform an Independent Audit of the City and City Agencies for the fiscal years ending June 30, 2017, 2018, and 2019 on July 18, 2016.
DISCUSSION:
Section 1016 of the City Charter requires that an independent audit of all City accounts be conducted. The Charter further states that the City will open the audit contract to competitive bids every three years and award the contract no later than thirty days after the beginning of such fiscal year.
The Finance Department solicited requests for proposals (RFP) for auditing services on Planet Bids to various certified public accounting firms with governmental expertise. Five firms responded with proposals offering the required services. Based on the initial scoring of the proposals, three firms were selected to participate in interviews.
All proposals were reviewed by a team of three. The team was composed of three Finance Department staff members. The proposals were evaluated in the areas of responsiveness to the RFP, firm qualifications, size and structure of firm, personnel qualifications and audit methodology. After the proposals were scored, interviews were conducted by a team of Finance staff members. Scores were given based on the performance of the interviews. Final scores were tabulated based upon the proposal review, cost, and interviews. The final rankings were determined based on the ranked scores and are indicated below in Table 1.
The RFP asked for a quotation of fees covering three fiscal years, beginning with Fiscal Year 2022-23. A summary of quotations is listed in Table 1. Reference checks were conducted (if necessary) to verify quality service, satisfactory performance and experience with cities of similar composition, population and complexity to the City of Pomona.
Table 1
Audit Firm
Price*
Rank
Badawi & Associates
$216,015
1 Vasquez & Company LLP
$234,121
2 CLA (CliftLarsonAllen)
$278,090
3 ALTERNATIVE(S): None
Prepared by:
_____________________________
Raul Marquez
Principal Accountant
Award of a three year contract to Badawi & Associates for a total of $216,015 to perform an Independent Audit of the City and City Agencies for the fiscal years ending June 30, 2023, 2024, 2025