External Auditing ServicesCouncil Audit CommitteeApril 20, 2026 External Auditor Duties•Preparation of the Annual Comprehensive Financial Report (ACFR) in accordance of all applicable laws, requirements, and best practices.•Perform all Single Audit procedures each fiscal year, including ensuring requirements, issuance, and testing.•Provide numerous audits including, but not limited to, reviews of major revenue, Required Supplementary Information, Management Discussion & Analysis, etc.•Perform testing of cash and investments, capital assets, long-term liabilities, pension and Other Post-Employment Benefits, Grants, and Enterprise operations.•Review journal entries, accounting policies, new GASB Implementations and significant estimates.•Inform the City’s Audit Committee is informed of all audits and any issues, errors, irregularities and illegal acts.
Timeline and Future•Work will begin shortly after Council Approval, estimated early June 2026.•Reports will be provided regularly to Council Audit Committee and City Council summarizing audit activities, findings, and status of recommendations.•Contract will last an initial two (2) years, with the option to renew for up to three (3) one-year options.
ScoresTotal CostsFinal Combined ScoresProponent’s Name$1,903,027.0085.97The Pun Group LLP$1,947,200.0077.14MGOThe Pun Group, LLP• City of Santa Cruz• City of Fairfield• City of Santa Clarita• Orange County Business Council• South Bay Cities Council of GovernmentsMGO• City of Fremont• City of Los Angeles• City of Sacramento• County of Sacramento Recommendation•Staff has solicited through a formal competitive Request for Proposals.•Proposals received have been deemed responsive and responsible. Costs were not revealed until after staff scored the proposals.•Staff recommends contracting with The Pun Group, LLP . as they were the highest rated and more affordable than the 2ndhighest rated proposal.