Independent Audit
Services Agreement
Presentation to City Council
Karen Chang, Director of Finance
January 24, 2024
Government Code Section 54957.5
SB 343 Item Agenda: 01/24/2024
REG CC - Item #8
Overview
▪ Maze and Associates served as independent auditor for the City since FY 2004
▪ Current audit contract expires after completion of audit services for FY 2023
▪ Government Finance Officers Association (GFOA) best practices recommend full-scale competitive process
▪ City issued RFP for 3-Year auditing services with option to extend for two additional fiscal years on August 28, 2023 2 6 Proposals Received – October 20, 2023
▪ Badawi & Associates
▪ Edie Bailly LLP
▪ Harshwal & Company LLP
▪ Lance, Soll & Lunghard LLP
▪ Maze & Associates
▪ The Pun Group LLP
3 Selected Top 3 for interview
▪ Badawi & Associates
▪ Lance, Soll & Lunghard LLP
▪ Maze & Associates
4 Evaluation
5 Selection Criteria
Possible
Points Maze Badawi LSL
Qualifications and Experience 35 33.3 33.3 32.3
Proposal Quality/Responsiveness 25 24.7 23.7 22.0
Fit (Ability to Meet City's Requirements) 25 24.7 23.0 21.0 Cost 15 15.0 14.0 12.7
Total (Out of 100) 100 97.7 94.0 88.0
Proposed Fees (Maximum Not-to-Exceed)
6 Firms
FY 2022-23
(Current)
FY 2023-24
(Year 1)
Maze & Associates $83,330 $83,865
Badawi & Associates N/A $92,875
Lance, Soll & Lunghard, LLP N/A $105,170
▪ Staff has included a 10% contingency of $26,438 in the contract to account for additional single audit programs, potential implementation of new GASB or additional services.
Scope of Work
▪ City’s financial statements;
▪ Single audit and report in conformance with U. S. Office of Management and Budget (OMB) Uniform Grant Guidance/Super Circular;
▪ Successor Agency to the City of South San Francisco Redevelopment Agency (Successor Agency)/City Housing Fund, Community Development Block Grant Special Revenue Fund Audit, and other grant funds as part of Single Audit;
▪ Gann Appropriations Limit worksheet agreed-upon procedures report; ▪ Measure A Funds for Local Transportation Purposes audit and compliance; ▪ Measure W Funds for Local Transportation Purposes audit and compliance in accordance with San Mateo County Congestion Relief Plan;
▪ Transportation Development Act (TDA) audit and report; ▪ State Controller’s City’s Annual Report of Financial Transactions; ▪ Indenture of Trust associated with the 2005D Bond audit and compliance; and ▪ Other Reports as Required
7 QUESTIONS
8