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1 RiversideCA.gov
1 RiversideCA.gov
Finance Committee
March 13, 2024
Selection of the City’s Independent
Accountants
Finance Department
RiversideCA.gov
2 • An independent audit of the City’s financial statements is required by the Riverside City Charter.
• Per municipal code Section 1113, the City Council shall employ a new qualified auditor at least every five years different from the preceding auditor.
• Recommending a new audit firm for a five-year period from fiscal year 2024 to 2028, subject to annual reappointments.
BACKGROUND
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3 • August 11, 2023: RFP posted to solicit proposals from qualified firms to audit the City’s financial statements.
– One year (June 30, 2024); option for annual reappointment for four subsequent years
• September 8, 2023: 4 proposals received
– Proposals evaluated by City Finance and Riverside Public Utilities finance. – January 16, 2024: City Finance and Riverside Public Utilities finance interviewed the 3 top-ranked firms.
• CliftonLarsonAllen LLP (CLA) received the highest scores and was chosen as the most qualified.
• February 20, 2024: City Finance staff held cost negotiations with CLA, negotiated a $71,650 price reduction from the original RFP cost proposal.
RFP 2290
Evaluation Criteria:
Qualifications (25%)
Pricing (20%)
Experience (Projects of similar
size and scope) (35%)
Professional References (10%)
Approach and Methodology
(10%)
RiversideCA.gov
4 • The cost for year one is $198,360 and sufficient funds are included in the proposed Fiscal Year 2023/24 budget.
• The 5-year total negotiated costs are shown below:
PRICING AND FISCAL IMPACT
Firm 2024 2025 2026 2027 2028 Total
CLA 198,360$ 208,260 $ 218,680 $ 229,620 $ 241,100 $ 1,096,020$ All-Inclusive Maximum Fee for FYE June 30, 2024
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5 • Nationwide firm with over 8,500 employees and nearly 130 U.S. locations. • Local office: Irvine, California.
• More than 4,200 governmental clients nationwide, more than 600 within California.
• CLA has performed external audits of similar full-service cities, such as:
– City of Glendale (including Electric and Water funds) – City of Burbank (including Electric and Water funds)
– City of Colton (including Electric and Water funds)
– City of Pico Rivera (including Electric and Water funds) – City of Santa Ana (including their Water fund)
CLA Qualifications
RiversideCA.gov
6 STRATEGIC PLAN ALIGNMENT
High Performing Government – Enhance communication and
collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making.
Cross-Cutting Threads
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
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7 That the Finance Committee recommend that the City
Council appoint CLA to serve as the City’s independent
accountants in accordance with its annual audit
requirements for a five-year period, subject to annual
reappointment, beginning with the fiscal year ending
June 30, 2024.
RECOMMENDATIONS
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