EXHIBIT A-1
SCOPE OF SERVICES
PROFESSIONAL AUDITING, ACCOUNTING, FINANCIAL REPORTING,
COMPLIANCE, AND RELATED SERVICES
Eadie Payne LLP (“Consultant”) shall furnish all labor, personnel, supervision, equipment, materials, and professional services necessary to perform the following services as requested by the City of San Bernardino (“City”) during the term of the Agreement; subject to annual appropriations and written authorization by the City where required under the Agreement. Services not expressly included and priced in the applicable fee schedule require prior written authorization by an authorized City official identifying the scope, deliverables, and compensation before work begins.
A. Annual Independent Financial Audit. Consultant shall perform the annual audit of the City's financial statements in accordance with Government Auditing Standards ("Yellow Book"), generally accepted auditing standards, applicable Federal and State Single Audit requirements, and all other applicable professional standards including:
1. Annual financial statement audit.
2. Auditor's reports.
3. Internal control and compliance reports.
4. Management letter.
5. Communication with those charged with governance.
6. Audit Committee and City Council presentations.
7. Single Audit, when required.
8. Appropriations Limit Calculation.
B. Annual Comprehensive Financial Report (“ACFR”). Consultant shall prepare the City's ACFR from the audited trial balance and information provided and approved by the City, consistent with applicable independence requirements, including:
1. Preparation and formatting of the ACFR based on the audited trial balance and City-provided information.
2. Preparation of government-wide financial statements from City-approved account and fund groupings.
3. Preparation of fund financial statements from City-approved account and fund groupings.
4. Assembly and formatting of note disclosures based on current-year information provided and approved by the City.
5. Assembly and formatting of Required Supplementary Information (“RSI”) based on information provided and approved by the City.
6. Assembly and formatting of the statistical section based on information provided and approved by the City.
7. Financial statement formatting.
8. Government Finance Officers Association compliance review, as applicable.
9. Coordination with City staff throughout report preparation, provided that the City retains responsibility for management decisions, account and fund groupings, current-year note disclosures, RSI, statistical information, and the substantive analysis presented in Management's Discussion and Analysis.
10. Coordination with component units, outside agencies, and City staff regarding City-approved financial reporting information necessary for preparation of the ACFR.
C. GASB Implementation. Consultant shall assist the City with implementation of Governmental Accounting Standards Board (“GASB”) Statements Nos. 103, 104, and 105, including:
1. GASB Statement No. 103.
2. GASB Statement No. 104.
3. GASB Statement No. 105.
4. Other GASB pronouncements only as separately authorized by the City under Section H.
5. Accounting analyses required to implement GASB Statements Nos. 103, 104, and 105.
6. Disclosure revisions required to implement GASB Statements Nos. 103, 104, and 105.
7. Restatement assistance, if necessary to implement GASB Statements Nos. 103, 104, and 105.
D. Oracle Enterprise Resource Planning ("Oracle ERP") Financial Reporting Transition Support. Consultant shall provide financial reporting support associated with the City's Oracle ERP implementation:
1. Extracting and locking the New World financial reporting baseline for conversion and comparative reporting purposes.
2. Creating an external financial reporting shell and crosswalk for Oracle financial reporting.
E. Financial Reporting and Annual Reporting Support. Consultant shall provide additional financial and annual reporting support included in the Agreement:
1. Preparation of the City's annual State Controller's Office Financial Transactions Report and the Public Financing Authority's annual State Controller's Office Financial Transactions Report.
2. Measure S agreed-upon procedures (“AUP”) and reporting as provided in the original Agreement. Any materially expanded Measure S audit or financial-reporting services require a written amendment identifying the additional scope and compensation before work begins.
F. Compliance Audits. Consultant shall perform additional compliance audits requested by the City:
1. Alternative Transportation Fund Audit.
2. Financial and/or compliance audit required under the City’s California Violence Intervention and Prevention ("CalVIP") Grant Program agreement for the fiscal year ending June 30, 2026, or other applicable reporting period expressly authorized by the City.
G. Other Agreed-Upon Procedures and Attestation Engagements. Any agreed-upon procedures or attestation engagement not expressly included in Sections A through F requires prior written authorization by the City identifying the intended users, scope, procedures, reporting period, deliverables, schedule, and compensation.
Consultant shall perform any such engagement in accordance with applicable American Institute of Certified Public Accountants attestation standards.
H. Other Professional Services. Upon prior written authorization by the City identifying the scope and compensation, Consultant may provide additional services not expressly included in Sections A through F, provided the services do not impair Consultant's independence or otherwise conflict with applicable professional standards including:
1. Financial reporting or technical accounting consultation.
2. Accounting research or analysis.
3. Implementation of future accounting standards or pronouncements not expressly included in Section C.
4. Preparation of schedules supporting audited financial statements, to the extent not included in the ACFR services described above.
5. Assistance with the Schedule of Expenditures of Federal Awards, to the extent not included in the Single Audit scope.
6. Balance sheet reconciliation assistance.
7. Capital asset accounting consultation.
8. Lease accounting consultation.
9. Subscription-based information technology arrangement (“SBITA”) accounting.
10. Additional Oracle or other enterprise resource planning financial reporting support beyond the services expressly included in Section D.
11. Additional grant, financial, or compliance audits, AUP engagements, or attestation services not expressly included in Sections A through G.
12. Other accounting and financial reporting services directly related to the annual audit or ACFR and specifically authorized by the City in writing.
13. Other recurring financial transaction, expenditure, certification, or similar reports not expressly included in this Exhibit A-1.
I. Compensation. Compensation for services shall not exceed the amount specified in Section 4 of the Agreement as amended. Existing services shall retain the pricing established in the Agreement unless the scope is materially expanded by written amendment. New or materially expanded services shall be performed only at the compensation expressly authorized in the Agreement, this Exhibit A-1, or a subsequent written amendment. The following documents are incorporated by reference solely to the extent they concern services expressly included in this Exhibit A-1 and are consistent with the Agreement as amended:
1. Consultant's Professional Auditing Services Proposal dated June 20, 2025, as accepted by the City solely with respect to services expressly retained in this Exhibit A-1.
2. Consultant's Proposal for Professional Accounting and Financial Reporting Services dated May 21, 2026.
3. Any written task orders or written authorizations issued by the City pursuant to the Agreement.
4. Single Audit. Consultant shall be compensated ten thousand dollars ($10,000) for the first major program and ten thousand dollars ($10,000) for each additional major program actually required based on the final Schedule of Expenditures of Federal Awards, subject to the applicable not-to-exceed amount.
5. Measure S. Compensation for Measure S AUP and reporting shall remain as provided in the Agreement. Any materially expanded Measure S audit or financial-reporting services require a written amendment stating the additional scope and compensation; no retroactive repricing of services already included in the Agreement is authorized.
6. In the event of any conflict between the foregoing documents and the Agreement, the Agreement as amended shall control.
J. Independence. Consultant shall perform all services in accordance with Government Auditing Standards, the American Institute of Certified Public Accountants Code of Professional Conduct, applicable independence requirements for governmental auditors, and all other applicable professional standards. Nothing contained in this Exhibit A-1 shall require Consultant to perform any service that would impair Consultant's independence as the City's independent auditor, and Consultant shall promptly notify the City if Consultant determines that any requested service may adversely affect such independence.