3 3
0 9
CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 19, 2026
To: Honorable Mayor and City Council Members
From: Tarik Rahmani, Director of Finance & Management Services Department: Finance & Management Services
Subject: Ratification of Additional FY 2024/25 Audit Services of $9,125 Payment to Rogers, Anderson, Malody & Scott,
LLP - RAMS (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-139, ratifying additional professional audit services performed by Rogers, Anderson, Malody & Scott, LLP (RAMS) in connection with the City’s Fiscal year 2024-2025 Measure S and Air Quality Improvement Fund audits and authorizing payment of the outstanding $9,125 balance.
City Manager’s Comments:
The City Manager recommends approval.
Executive Summary
The City entered into an agreement with Rogers, Anderson, Malody & Scott, LLP (RAMS) for Fiscal Year 2024/25 audit services with a not-to-exceed amount of $100,000. During the audit, RAMS was authorized to perform additional services related to expanded Measure S audit procedures and the AQMD audit. Although the additional services were authorized through engagement letters, the original agreement was not amended to increase the authorized contract amount before the work was performed. RAMS completed the additional services and submitted an outstanding invoice totaling $9,125. Because the original agreement expired on June 30, 2026, the City Attorney’s Office has advised that the appropriate action is for the City Council to ratify the additional services and authorize payment rather than amend the expired agreement or enter into a new agreement for previously performed services. Approval of the proposed Resolution will authorize payment of the $9,125 outstanding invoice and ratify the additional audit services performed by RAMS.
Finance & Management Services will also reinforce internal contracting controls to 3 3
0 9
ensure that future changes in scope or contract amounts are formally approved before additional services are performed.
Background
During the term of the agreement, additional audit services were requested, including an expanded scope of work related to Measure S and AQMD audit. In January 29, 2025, the then-Interim Director of Finance & Management Services authorized RAMS to proceed with the additional work through engagement letters. However, the underlying agreement was not amended to formally incorporate the additional services or increase the NTE amount before the additional work was performed. As a result, RAMS completed the additional services and submitted an invoice that exceeds the amount authorized under the existing agreement. The outstanding RAMS invoice totals $9,125.
Because the agreement expired June 30, 2026 and the additional services have already been performed, the City cannot appropriately address the matter through a contract amendment. Likewise, entering into a new agreement would not be an appropriate mechanism to retroactively authorize services that have already been performed.
Discussion
The issue before the City Council is the authorization and payment of the outstanding $9,125 RAMS invoice for services that were performed but exceeded the authorized contract amount.
Finance & Management Services consulted with the City Attorney’s Office regarding the appropriate course of action. Based on that consultation, the City Attorney’s Office advised that the additional services and associated payment should be addressed through City Council action, rather than through an amendment to the expired agreement or through a new agreement.
The City Attorney’s Office further advised that a new agreement should not be used to retroactively authorize services that have already been performed. Any future RAMS services, if needed, should be addressed separately through the City's normal contracting and procurement process.
The circumstances resulting in the contract overage also identify a process issue that should be addressed by the Department. Although the additional services were authorized to proceed, the corresponding contract amendment and increase to the NTE amount were not completed before the additional work was performed. This resulted in services being provided beyond the City's existing contractual authorization.
To prevent similar issues in the future, Finance & Management Services will reinforce internal controls requiring that any requested change in scope, additional services, or increase in a contract's NTE amount be reviewed and formally authorized through the 3 3
0 9
appropriate contracting process before the additional services are performed.
Department staff will also be reminded that engagement letters or other requests for additional services do not, by themselves, replace the City's contractual amendment and authorization requirements.
Council approval of the accompanying Resolution will provide the City's authorization to ratify the additional services and allow Finance & Management Services to process payment of the outstanding $9,125 RAMS invoice.
2021-2025 Strategic Targets and Goals
Approval of the resolution to ratify payment align with Key Target No. 1: Financial Stability by ensuring that the financial and administrative requirements to continue day-to-day operations in the Finance department are completed.
Fiscal Impact
There is no additional General Fund impact with this item. There is sufficient budget in the FY 2025/26 operating budget to pay this outstanding invoice.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2026-139, ratifying additional professional audit services performed by Rogers, Anderson, Malody & Scott, LLP (RAMS) in connection with the City’s Fiscal year 2024-2025 Measure S and Air Quality Improvement Fund audits and authorizing payment of the outstanding $9,125 balance.
Attachments
Attachment 1 Resolution No. 2026-139
Attachment 2 Resolution No. 2026-139 Exhibit A
Attachment 3 RAMS Outstanding Invoice Statement
Attachment 4 RAMS Engagement Letter(s) for Additional Services Attachment 5 RAMS PSA for FY 2024/25 Audit Services Ward:
All Wards
Synopsis of Previous Council Actions:
N/A
CC:
Eric Levitt, City Manager