CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: October 7, 2026
To: Honorable Mayor and City Council Members
From: Tarik Rahmani, Director of Finance & Management Services Department: Finance & Management Services
Subject: Approve Amendment No. 1 for Financial Auditing Services with Eadie Payne, LLP, Increasing Agreement’s
not-to-exceed amount to $971,200 (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 with Eadie Payne, LLP for financial auditing and additional accounting, financial reporting, agreed-upon-procedures services in the not-to-exceed amount of $971,200 for fiscal years ending June 30, 2026 through June 30, 2030, with the option of auditing the City’s financial records for two subsequent years (through June 30, 2032).
2. Authorize the City Manager to execute any and all documents necessary to implement and carry out the approved amendment.
City Manager’s Comments:
The proposed Amendment is for a contract through 2030 with two one year options through 2032.
Executive Summary
Pursuant to California law, each year, the City engages the services of an independent auditor to audit its financial statements and related internal control procedures. The City sent out a Request for Proposals (RFP) and the internal committee recommended Eadie Payne LLP. The City Council approved the RFP and the City entered into an agreement with Eadie Payne LLP for audit services on April 1, 2026. The City then determined that additional accounting, financial reporting, audit, agreed upon procedures and compliance services are more efficiently performed by Eadie Payne LLP in conjunction with its annual audit engagement.
Background
The purpose of an independent auditor's report for government agencies is to provide stakeholders (citizens, lawmakers) with objective assurance and transparency on financial accountability, program effectiveness, and compliance with laws, improving trust and decision-making by verifying fair presentation, strong internal controls, and proper use of public funds.
On May 8, 2025 the City issued an RFP for audit services. Audit services for the fiscal year to be audited usually commence in the month of May of that fiscal year with a review on internal controls and accounting procedures and continue until December of the following fiscal year.
The City received six (6) proposals and Eadie Payne LLP was chosen based on their qualifications, expertise, transparency and price. The Council approved the Professional Services Agreement with Eadie Payne LLP on April 1, 2026 in the amount of $542,860 to audit financial statements for fiscal year ending June 30, 2026 through June 30, 2030 with the option to extend the agreement for two subsequent years.
The City later determined that additional accounting, financial reporting, audit, agreedupon procedures, Annual Comprehensive Financial Report (ACFR) preparation, and compliance services are more efficiently performed by Eadie Payne LLP in conjunction with the annual audit engagement than under separate engagement letters or professional service agreements.
The additional services include assistance with ACFR preparation, new Government Accounting Standards Board (GASB) pronouncement implementation, Oracle Enterprise Resource Planning financial reporting transition support, Measure S agreed-upon procedures, California Violence Intervention and Prevention Grant Program compliance audit, and additional State Controller’s Office reporting.
Amendment No. 1 with Eadie Payne LLP for financial auditing services increases the original not-to-exceed from $542,860 to $971,200.
Discussion
The City has determined that additional accounting, financial reporting, audit, agreedupon procedures, and compliance services are more efficiently performed by Eadie Payne LLP in conjunction with its annual audit engagement than under separate engagement letters or professional service agreements.
Eadie Payne LLP submitted a proposal to provide Annual Comprehensive Financial Report (ACFR) preparation, financial reporting support, Governmental Accounting Standards Board (GASB) implementation assistance, Oracle Enterprise Resource Planning financial reporting transition support, and related accounting services, together with a revised fee proposal for certain additional recurring services requested by the City.
Additionally, the City is incorporating the annual Alternative Transportation Fund Audit, the California Violence Intervention and Prevention Grant Program financial and compliance audit, the City’s State Controller’s Office Financial Transactions Report, the Public Financing Authority’s State Controller’s Financial Transactions Report, Measure S agreed-upon procedures, together with related accounting, financial reporting, audit and compliance services.
The City Council approved the Professional Services Agreement with Eadie Payne LLP on April 1, 2026 in the amount of $542,860 to audit financial statements for fiscal year ending June 30, 2026 through June 30, 2030 with the option to extend the agreement for two subsequent years. The Eadie Payne LLP amendment no. 1 increases the original amount by $428,340, from $542,860 to a cumulative not-toexceed amount of $971,200, which includes the additional services described herein.
The not-to-exceed amount of $971,200 excludes the two optional years through June 30, 2032. The Finance department will process an additional amendment if the City opts to exercise the two year extension. The Exhibit A -Fees Schedule total amount of $871,200 is the expected total cost for the current agreement term based on one major program for the Single Audit. If it is determined that the Single Audit requires review of additional major programs, the additional $100,000 allows flexibility for review of up to two major programs at $10,000 per major program.
2021-2025 Strategic Targets and Goals
Amending the professional services agreement for auditing and additional accounting services aligns with Key Target No. 1: Financial Stability.
Fiscal Impact
There is no impact to the General Fund with the approval of this action. There is sufficient budget within the FY 2026/27 operating budget to support this amendment.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve Amendment No. 1 with Eadie Payne, LLP for financial auditing and additional accounting, financial reporting, agreed upon procedures services in the amount of $971,200 for fiscal years ending June 30, 2026 through June 30, 2030, with the option of auditing the City’s financial records for two subsequent years (through June 30, 2032).
2. Authorize the City Manager to execute any and all documents necessary to implement and carry out the approved amendment.
Attachments
Attachment 1 Professional Services Agreement – Eadie Payne, LLP Attachment 2 Amendment No. 1 – Eadie Payne, LLP
Attachment 3 Exhibit A-1 – Eadie Payne, LLP
Attachment 4 Exhibit A – Fees Schedule – Eadie Payne, LLP Ward:
All Wards
Synopsis of Previous Council Actions:
N/A
CC:
Eric Levitt, City Manager