Vallejo City Council
January 27, 2026

455 Capitol Mall • Suite 700 • Sacramento, California • 95814 • Tel 916.443.1300 • www.secteam.com City of Vallejo
Response to Request for Proposals:

Finance Department Audit Services

September 23, 2025

Submitted to:

City of Vallejo
555 Santa Clara St.
3FL - Finance Budget Division
Vallejo, California 94590

455 Capitol Mall • Suite 700 • Sacramento, California • 95814 • Tel 916.443.1300 • www.secteam.com Cover Letter
September 23, 2025
City of Vallejo
555 Santa Clara St.
3FL - Finance Budget Division
Vallejo, California 94590
Re: Request for Proposals (RFP) – Finance Department Audit Services Dear Evaluation Panel,
Sjoberg Evashenk Consulting is pleased to submit our proposal to provide Internal Auditor Services on behalf of the City of Vallejo. Established in January 2000 by the former California State Auditor General Kurt Sjoberg and Chief Deputy State Auditor Marianne Evashenk, Sjoberg Evashenk Consulting is a certified majority woman-owned firm and Small Business Enterprise with a team of talented and experienced professionals. In more than 25 years of service, we have conducted more than 500 engagements for approximately 250 public sector clients throughout the Western United States.

Many of those projects involved assessments of operations and core functions similar to those of the City of Vallejo, including extensive experience conducting internal audits at the state and local level. In fact, our firm serves as the outsourced Internal Auditor for the City of Elk Grove, CA; Snohomish County, WA; Santa Clara Valley Water District; Bay Area Air Quality Management District; and OmniTrans, a transit district in the Inland Empire. In addition to serving these clients as their outsourced performance auditor, we have also served many California municipalities by conducting performance audits or assisting them establish performance audit functions within their jurisdictions; these include the cities of Los Angeles, San Francisco, Sacramento, Oakland, Santa Monica, Long Beach, Newport Beach, Anaheim, and many others.

After you review our proposal, we believe you will find that our objectivity, experience, and qualifications make us uniquely qualified to perform this engagement.

I, Lynda McCallum, whose signature is affixed below, am the firm’s authorized representative. Additionally, George Skiles, Partner, and Catherine Brady, Partner, are also authorized and empowered to make representations for Sjoberg Evashenk Consulting, Inc., with respect to this proposal.

Sjoberg Evashenk Consulting is appreciative of the opportunity to work with the City of Vallejo and will remain available to answer any questions regarding our proposal. We look forward to sharing our expertise and insights working with you on this important project if selected as the successful proposer.

Respectfully Submitted,
Lynda McCallum
Lynda McCallum, President
Sjoberg Evashenk Consulting, Inc.

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Table of Contents
Transmittal Letter ........................................................................................................................................... 2 Executive Summary ....................................................................................................................................... 2 Firm Profile .................................................................................................................................................... 4 Qualifications & References .......................................................................................................................... 8 Proposed Project Staff & Resumes ............................................................................................................. 16 Proposed Project Approach and Work Plan ................................................................................................ 32 Fee Proposal ............................................................................................................................................... 42 Appendix A. Additional Information—Sample Reports ................................................................................. 43

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Executive Summary
Established in January 2000 by the former California State Auditor General Kurt Sjoberg and former Chief Deputy State Auditor Marianne Evashenk, Sjoberg Evashenk Consulting is a national firm specializing in evidence-based consulting services. Our practice is built on decades of experience providing management consulting and auditing services on behalf of public sector agencies throughout the Western United States.

Sjoberg Evashenk Consulting and our team of professionals have dedicated our careers to evaluating and improving government operations and programs. Collectively, we have performed nearly 2,000 studies and performance audits involving hundreds of agencies and nearly every programmatic and functional area within state and local government.

Sjoberg Evashenk Consulting is a certified majority woman-owned small business enterprise. Originally established as a limited liability company, the firm was converted to a Subchapter S corporation in 2003.

Our firm is headquartered in Sacramento, California, and is fully licensed and insured to provide management consulting, performance auditing, and other professional services.

As a small business enterprise that operates out of a single office in Sacramento, California, our local organization structure is currently comprised of three partners and a staff of nine experienced staff. We also draw from a core group of experienced associates and subject matter experts (in fields such as human resources, engineering, information technology, public safety, investment practices, etc.) who join our team based on specific project needs to provide subject matter expertise or to augment existing resources.

Internal and Performance Audit Services
We provide independent, objective assurance and consulting services on behalf of an agency and work with client management to address challenges and develop insightful solutions. Our practice includes serving as the appointed internal auditor for local government agencies, including the City of Elk Grove, CA; Snohomish County, WA; Santa Clara Valley Water District; Bay Area Air Quality Management District; City of Modesto, California; and OmniTrans, a transit district in the Inland Empire. Internal audit services include conducting organization-wide risk assessments, developing annual audit plans, executing audit engagements, providing periodic status reports, presenting audit results and updates to council/legislative committees, and advising legislative and executive officials on a wide variety of matters. In addition to serving as the internal auditor for state and local government agencies, we have also assisted other public sector internal audit organizations through training and consultation, conducting performance audits upon request, and performing independent quality assurance reviews of internal audit activities in accordance with auditing standards—agencies such as the Long Beach City Auditor, Oakland City Auditor, Los Angeles City Controller, California State Bar Internal Audits, California Public Utilities Commission Internal Audit Division, California State Teachers Retirement System, California Health Benefit Exchange, and many others.

We offer expertise in the application of, and all of our audit work is conducted in accordance with, pertinent audit standards including those promulgated by the Comptroller General of the United States (Yellow Book) and International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors (Red Book).

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In our proposed approach to the six tasks specified in the Request for Proposals (RFP), we build upon our past experience providing internal audit services and tailored our approach to what we believed was the City’s primary goals for each task area. For three task areas—the audit plan, risk assessment, and executing audit engagements—we also provide in appendices examples of work products provided to Snohomish County under a contract, though smaller in scope, that is similar to the services outlined in the RFP.

Project Team
Our office is currently comprised of three partners and ten experienced professionals. We offer numerous certifications such as Certified Public Accountant, Certified Internal Auditor, Chartered Global Management Accountant, Certified Government Financial Manager, Certified Government Audit Professional, Certified Construction Auditor.

We propose to designate Lynda McCallum, a Partner at Sjoberg Evashenk Consulting, to serve as Primary Partner and Relationship Manager for the City. She brings 23+ years leading large, multidisciplinary teams on high-profile state and local engagements and has directed numerous GAGAS performance audits, program evaluations, operational reviews, rate studies, and financial analyses.

Highlights include strengthening accounting/finance operations at two large state departments; reviewing major environmental programs for compliance and reimbursement processes; assessing rate structures and fiscal viability; and leading an evaluation of investment and cash management for the City of Los Angeles. She has also led dozens of superior court audits statewide—covering fiscal cycles, service delivery, case management, facility/security and evidence rooms—and managed complex projects in financial controls, contracting and leasing, procurement, outcome monitoring, human resources, revenue generating contracts and programs, public infrastructure, and indirect cost allocation.

The overall management team, however, goes well beyond Mr. Skiles’ expertise alone. We propose a core group of Key Personnel to this project, each with different professional experience, education, and certifications. Combined, we believe this team will provide a well-rounded group of professionals that will serve the City of Vallejo with diligence, professionalism, and expertise. • Lynda McCallum, Partner, MBA, CGFM, CGAP [email protected] • George Skiles, Partner, MA, CIA, CRMA [email protected] • Cathy Brady, Partner, MBA, CPA, CCA, CGMA [email protected] • Margarita Fernandez, Director, CPA, CGFM [email protected] • Lien Luu, Director, BS, CCA [email protected]

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Firm Profile
Established in January 2000 by the former California State Auditor General Kurt Sjoberg and former Chief Deputy State Auditor Marianne Evashenk, Sjoberg Evashenk Consulting is a national firm specializing in performance auditing. Our practice is built on decades of experience providing management consulting and auditing services on behalf of public sector agencies, non-profit organizations, and private sector businesses throughout the Western United States. In our more than 25 years of service to public sector agencies, we have conducted more than 500 engagements for approximately 250 public sector clients.

Sjoberg Evashenk Consulting and our team of professionals have dedicated our careers to evaluating and improving government operations and programs. Our mission is to be the firm of choice by exceeding client expectations through value-driven, evidenced-based, and reliable performance audit, management consulting, and advisory services. With uncompromised integrity and values, we serve government, non- profit, and private enterprises by providing accurate, insightful, timely, and practical solutions for improving service delivery and making informed decisions.

Core Lines of Business
While conducting public sector performance audits in accordance with Generally Accepted Government Auditing Standards (Yellow Book) has always remained the cornerstone of our firm’s practice, over the past 20 years our firm has developed four primary lines of business:

Internal Audit: We provide independent, objective assurance and consulting services (internal audit) on behalf of local and state government agencies. Our practice includes serving as the appointed internal auditors for local government agencies and independent organizations, including serving as the outsourced Internal/Performance Auditor for the City of Elk Grove; Snohomish County; Santa Clara Valley Water District; Bay Area Air Quality Management District; and OmniTrans, a local transit district.

In addition to serving local agencies as the chief audit executive, we assist internal audit organizations through training and consultation, conducting performance audits upon request, and performing independent quality assurance reviews of our clients’ in-house internal audit activities. This includes organization-wide risk assessments, developing annual audit plans, executing audit engagements, providing periodic status reports, presenting audit results and updates to council/legislative committees, and advising legislative and executive officials on a wide variety of matters.

Performance Audit: We offer extensive experience and expertise in program, management, and operational audit and evaluation services. These projects generally strive to assess how effectively, efficiently, economically, ethically, and equitably programs and services are delivered and are conducted in accordance with Generally Accepted Government Auditing Standards. In doing so, we promote public accountability and transparency.

Management Consulting: Our management consulting practice is focused on assisting leaders, managers, decision-makers, and practitioners within government and non-profit organizations in doing what they do best — serve the public. We provide a variety of advisory and consulting services, including policy and procedure development, control and operational risk assessments, project

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management and oversight, process re-engineering, employee classification and compensation studies, benchmarking, change implementation, and training. We take a cooperative approach with our clients to really understand their organization and the challenges they face to provide assistance and solutions that are practical, actionable, and cost-effective. We offer a wide-variety of services.

Training: Through a formal Continuing Professional Education (CPE) training program, our firm offers a wide selection of training courses for both public and private entities. Striving to deliver pertinent and practical training related topics such as audit practice and proficiency, performance audits and program evaluations, risk assessments and Enterprise Risk Management, internal controls, regulatory controls and monitoring, fraud, waste and abuse, and a wide range of internal control best practices. We are an approved member and maintain our compliance with the National Registry of CPE Sponsors through the National Association of State Boards of Accountancy (NASBA).

Regardless of the type of service, our firm’s overall philosophy is simple. We strive to deliver more to our clients than they expect, and do so with unsurpassed quality. Our consulting approach and rigid quality control procedures ensure that we consistently produce insightful, on-point, value-added, and practical solutions—and we do so on-time and on-budget.

Firm Make-Up
As a small business enterprise that operates out of a single office in Sacramento, California, our local organization structure is currently comprised of the three partners and a staff of nine professionals. We also draw from a core group of experienced associates and subject matter experts (in fields such as human resources, engineering, information technology, public safety, investment practices, etc.) who join our team based on specific project needs to provide subject matter expertise or to augment existing resources. Firm contact information is presented below:

Legal Name: Sjoberg Evashenk Consulting., Inc.

Type of Firm: National Management Consulting Firm
Principal Line of Business: Public Sector Management Consulting and Performance Auditing Address: 455 Capitol Mall, Suite 700
Sacramento, CA 95814
Telephone: (916) 443-1300
Fax: (916) 443-1350
Web: www.secteam.com
Binding Parties: Lynda McCallum, Principal/Partner, [email protected] George Skiles, Principal/Partner, [email protected]
Cathy Brady, Principal/Partner, [email protected]
Project Manager: Lynda McCallum, Principal/Partner, [email protected] California Secretary of State: C2561012
Federal Tax ID: 71-0956506

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List of Current & Prior Clients

Anaheim, City of Colorado State Auditor (cont'd)
City Manager's Office Office of Administrative Courts
Anaheim Chamber of Commerce Office of the State Auditor Arizona, State of Contra Costa Economic Partnership
Office of the Auditor General Elk Grove, City of
Department of Education Elk Grove Police Department
Pima Association of Governments Finance & Administration Maricopa Association of Governments Human Resources Department Rio Nuevo Multipurpose Facilities District Information Technology Department Bay Area Rapid Transit Integrated Waste Management
California Special District Association (CSDA) Planning Department Special District Workers Compensation Authority Public Works Department Special District Risk Management Authority Transit Department California State Bar Grants Pass, City of
California State Sheriff Association Economic Development Department California Dental Association Tourism Department
California, State of Idaho, State of
Air Resources Board State Legislature
Bureau of Private Postsecondary Education Department of Health & Welfare California Earthquake Authority Independent Cities Risk Management Authority California Health Benefit Exchange Judicial Council of California Dental Board of California Office of Internal Audits
Department of Child Support Services Executive Office
Department of Conservation Alpine County Superior Court Department of Consumer Affairs Amador County Superior Court Department of Corrections Butte County Superior Court
Department of Education Calaveras County Superior Court Department of General Services Colusa County Superior Court Department of Managed Health Care Contra Costa County Superior Court Department of Pesticide Regulation Del Norte County Superior Court Emergency Medical Services Authority El Dorado County Superior Court Gambling Control Commission Fresno County Superior Court Governor's Office of Emergency Services Glenn County Superior Court Health Facilities Financing Authority Humboldt County Superior Court Housing Financing Authority Imperial County Superior Court Integrated Waste Management Board Inyo County Superior Court Office of Statewide Health Planning and Development Lake County Superior Court Public Utilities Commission Lassen County Superior Court Secretary of State Los Angeles County Superior Court
State Board of Pharmacy Madera County Superior Court
State Teacher's Retirement System Marin County Superior Court State Treasurer Mendocino County Superior Court
Student Aid Commission Modoc County Superior Court
Water Resources Control Board Mono County Superior Court Colorado State Auditor Monterey County Superior Court
Board of Assessment Appeals Nevada County Superior Court Board of Medical Examiners Orange County Superior Court Colorado New Energy Improvement District Placer County Superior Court Department of Corrections Plumas County Superior Court
Department of Higher Education Riverside County Superior Court Department of Personnel & Administration Sacramento County Superior Court Department of Regulatory Agencies San Benito County Superior Court Department of the Treasury San Bernardino County Superior Court Division of Securities San Diego County Superior Court
Nursing Board San Joaquin County Superior Court
Sjoberg Evashenk Constulting
Examples of Public Sector Agencies for which SEC Has Provided Services

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Judicial Council of California (Cont'd) Oakland, City of (cont'd) San Mateo County Superior Court Department of Human Resources Management Santa Barbara County Superior Court Orange County Transportation Authority Santa Clara County Superior Court Orange County Sheriff's Department Santa Cruz County Superior Court Oregon, State of
Shasta County Superior Court Department of Human Services Sierra County Superior Court Department of Justice
Siskiyou County Superior Court Judicial Department
Solano County Superior Court Public Employees Retirement System Sonoma County Superior Court Oregon State University
Stanislaus County Superior Court Portland Public Schools Sutter County Superior Court Portland, City of
Tehema County Superior Court Portland City Auditor
Trinity County Superior Court Human Resources Department Ventura County Superior Court Sacramento Public Library Authority Yolo County Superior Court Sacramento, City of
Kern County Water Agency Office of the City Auditor
Long Beach, City of Community Development Department
Alamitos Bay Marina Rehabilitation Project Sacramento County Office of Education City Auditor San Diego Association of Governments
Department of Human Resources San Diego, City of
Long Beach Airport Office of the City Auditor
Long Beach Sea Festival Association Centre City Development Corporation Port of Long Beach Department of Human Resources
Queen Mary San Francisco, City and County of
WIC Supplemental Nutrition Program City Services Auditor Los Angeles Unified School District Controller's Office Los Angeles, City of Department of Public Works
Animal Services Department General Services Agency
City Administrative Officer Human Services Agency
Community Development Department Public Utilities Commission Department of Cannabis Regulation San Francisco County Transportation Authority Department of Public Works San Francisco Municipal Transporation Agency Department of Recreation & Parks SF City Option
Information Technology Agency SFO Airport
Los Angeles Department of Water & Power San Juaquin, County of Los Angeles Fire Department San Mateo County Department of Human Resources Los Angeles Memorial Coliseum Commission Santa Clara County Office of Education Los Angeles Police Department Santa Monica Airport Department Los Angeles Visitors and Convention Bureau Snohomish, County of Los Angeles World Airports County Council
Office of Finance Finance Department
Office of the Treasury Human Resources Department
Personnel Department Information Technology Department
Port of Los Angeles Public Works
Zoo Sheriff's Office
Los Angeles, County of Surface Waterof Department
Auditor-Controller Southern California Regional Rail Authority Los Angeles County Fairplex Sutter, County of
Probation Department Community Services Department
Nevada Department of Transportation Finance Department
New Port Beach, City of Human Resources Department
Public Works, Municipal Operations Public Works Department Newport Beach Chamber of Commerce University of California, Office of the President Oakland, City of Washington, State of
City Auditor State Auditor's Office
Finance & Management Agency Washington State University Sjoberg Evashenk Constulting
Examples of Public Sector Agencies for which SEC Has Provided Services

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Qualifications & References
As described in our cover letter, Sjoberg Evashenk Consulting was established in January 2000 by the former California State Auditor General Kurt Sjoberg and Chief Deputy State Auditor Marianne Evashenk. In our more than 25 years of service to public sector agencies, we have conducted more than 500 engagements for approximately 250 public sector clients throughout the Western United States. Many of those projects involved assessments of operations and core functions similar to those of the City of Vallejo We have significant experience conducting financial related, operational performance, compliance, and investigative audits on behalf of local governments, state agencies, and regional districts—including nearly every aspect of municipal government.

In this section, we provide a broad overview of our experience providing internal audit and performance audit services on behalf of public sector clients.

Sjoberg Evashenk Reference #1
Client Name: City of Elk Grove
Address: 8401 Laguna Palms Way, Elk Grove, CA 95758
Contact Person:

Matt Paulin, Director of Finance
Phone Number:
(916) 627-3221
Period of Work:

October 2009 – Present
We have been Elk Grove’s outsourced Internal Auditor since 2009. We have conducted more than 10 internal audits reviewing the City’s various departments and operations, including public works, affordable housing, transit, information technology, police, City planning, utility billing, Integrated Waste, Public Works operations and maintenance and Capital Improvement Program, Animal Control and Shelter programs, cashiering operations, Procurement and Accounts Payable, and Human Resources. Each audit is presented to the City Council for action.

Sjoberg Evashenk Reference #2
Client Name: Colorado State Auditor
Address: 1525 Sherman Street, 7th Floor, Denver, Colorado, 80203-2211 Contact Person:

Michelle Colin, Deputy State Auditor
Phone Number:
(303) 869-2823
Period of Work:

September 2008 – March 2024
On behalf of the Colorado State Auditor, we have conducted numerous performance audits since 2008.

These projects include an audit of the Colorado State’s Employee Benefits Program, Department of Corrections Inmate Banking and Canteen Programs, Annual Compensation Study and the State’s total compensation program, Colorado New Energy Improvement District, State Treasurer’s investment practices, Medicaid client correspondence, the State Board of Assessment Appeals, and Office of Administrative Courts, among others.

Sjoberg Evashenk Reference #3
Client Name: San Francisco Office of the Controller, City Services Auditor Address: 1 Dr. Carlton B. Goodlett Place, City Hall Room 388, San Francisco, CA 94102

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Contact Person:

Mark de la Rosa, Director of Audits
Phone Number: (415) 554-7574
Period of Work:

June 2010 - present
Under three consecutive master service agreements commencing in 2014 continuing to present, we have completed 32 performance audits on behalf of the City Services Auditor. These projects range from compliance with city/county ordinances related to political contributions (Prop Q) and Local Business Enterprise participation in contracts as well as contract audits relating to garages, towing, advertising, and security concessionaires. Our current contract budget amount total is $1,737,300.

Sjoberg Evashenk Reference #4
Client Name: County of Snohomish
Address: 3000 Rockefeller Avenue, M/S 609, Everett, WA 98201-4046 Contact Person:

Heidi Beazizo, Legislative Analyst
Phone Number:
(425) 388-3471
Period of Work:

February 2015 - present
As the Snohomish County Performance Auditor, Sjoberg Evashenk Consulting has completed numerous performance audits. This includes a county-wide risk assessment and performance audits of information technology data storage practices, overtime in the Sheriff’s Department, the courthouse construction project, the County’s risk management program, human resources department, surface water management, County Assessor’s Office, the Office of Public Defense, and organizational studies of the Council’s Office and the County Executive’s Office.

Additional Examples of Prior Internal Audit and Performance Audit Engagements Below, we provide additional examples of projects that were completed by our project team and which are illustrative of the breadth of experience our firm offers. As is demonstrated by the project descriptions below, our clientele is broad and diverse, including a broad array of public sector agencies responsible for unique and differing government programs, and strongly supports diversity and equitable practices, polices, and procedures.

State of Colorado, Office of the State Auditor
Over the past decade, our firm has conducted numerous performance audits on behalf of the Colorado Office of the State Auditor, including several within the past four or five years, and our familiarity of the OSA’s protocols regarding fieldwork, status reporting, report writing, and Legislative Audit Committee presentations. Below is a list of projects our proposed project team has performed on behalf of the State Auditor.
• Medicaid Client Correspondence within the Department of Health Care Policy and Financing • Investment and Cash Management Practices at the Colorado Department of the Treasury • Performance Audit of the Colorado Division of Securities • Implementation of the Colorado New Energy Improvement District • Performance Audit of the Office of Administrative Courts, 2008 & 2012 • Implementation and Practices of the College Opportunity Fund Program

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• Administration of Colorado’s Employee Group Benefits Program • Total Compensation Practices within the Department of Personnel & Administration • Performance Audit of the Board of Assessment Appeals
• Performance Audit of the Colorado Medical and Nursing Boards Long Beach City Auditor
Over the past 13 years we conducted a number of audits on behalf of the City Auditor. This included conducting a citywide risk assessment and performing nearly a dozen performance audits evaluating City Auditor’s office, the Seafest festival, Queen Mary Concession operations, Long Beach Airport concessions and rental car licensing, Long Beach Marina operations, the administration of the City’s WIC program, gas and oil franchise fee revenue audits, and employee onboarding efforts, among others. All budgets are set as not-to-exceed, and Sjoberg Evashenk adhered to the established budget and schedule in every case, and ranged between $33,000 and $100,000.

Pierce County, WA—Countywide Risk Assessment
Completed a universal risk assessment of each of the County’s departments, elected offices, and courts, including the various responsibilities, activities, and programs administered within each. The objectives of the assessment were to determine audit areas in the form of agencies, divisions, programs, or other units; identify and rank potential adverse consequences associated with county expenditures, productivity, output, effectiveness, and outcomes; identify realized adverse consequences resulting from the COVID-19 pandemic; and develop a risking matrix that identifies potential risks. In pursuing these objectives, we interviewed each department head, obtained and analyzed a wide range of information relating to each department, identified inherent risks associated with each program and operation, assessed risks related to a dozen risk categories, developed department-specific and countywide heat maps, developed audit topics and objectives for each, prioritized the potential audit topics by considering inherent versus control risks, likelihood and impact, and vulnerability and auditability. We presented our results to the County Council.

City of Los Angeles—Department of Cannabis Regulation
On behalf of the City Administrative Officer, we completed a performance audit of the information system employed by the Los Angeles City Department of Cannabis Regulation to process applications for cultivation, wholesale, retail, medial, and delivery of cannabis products. Prompted by allegations that applicants gained unauthorized, early access to the information system in order to gain an unfair advantage in the permitting process, the objective of this audit was to establish a comprehensive understanding of the Accela platform and the security measures taken to prevent early or unauthorized access to the system, assess whether there were sufficient security protocols in place to minimize risk of technical interference or breaches, and determine whether any applicant benefited unduly from any unauthorized activity. This audit found that the Department of Cannabis Regulation acted in good faith to minimize the barriers faced by Social Equity Applicants during the Phase 3 Retail Round 1 application process. However, the method used to roll out the application, including the disabling and re-enabling of user accounts, was confusing and susceptible to human error. As a result, 14 Applicants started their applications before the designated Application Window, and misperceptions regarding the application start

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time may have led other Applicants to wait longer than needed to sign onto the Accela Portal and begin their applications.

City of Los Angeles Debt Management Study
On behalf of the City Controller, we evaluated the City Treasurer’s debt and investment strategies to identify issues for consideration. The City issues short-term debt instruments known as Tax Revenue Anticipation Notes (TRANs) for cash flow purposes and general obligation and revenue bonds for capital improvements, etc. Our analysis included Interest Rate Swaps and the inherent risks, Commercial Paper’s advantages and disadvantages, and the use of fixed and variable rate bonds to mitigate risks. Moreover, we determined the credit worthiness of investments made, compliance with the City’s debt limits, and benchmarked the City against 11 comparable cities and GFOA. Finally, we reviewed the Treasurer’s organizational structure within City government and the role of the Debt Advisory Committee.

Portland Public School Bond Capital Improvement Programs Performance audit of the Portland Public School Bond Capital Improvement Programs. We are in process of a four-year contract to perform annual audits of nearly $1 billion bond measure to renovate and modernize schools in the district. As part of this project, we have assessed bond budgets, project expenditures, financial management, project management, master planning and design, staffing, and record retention with in-depth work on revenue projections and cost estimation elements such as hard and soft costs, contingency, and escalation. Work was performed to analyze and compare educational specifications, master planning documents, value engineering, design standards, and project controls.

Los Angeles World Airports–Risk Management and Workers’ Compensation Programs Over the past decade, Sjoberg Evashenk Consulting has conducted several audits involving LAWA’s Risk Management Division and Administrative Services, which have included auditing areas including Ombudsperson services, third-party contractor insurance requirements, and conflicts of interest in procurement. Most recently, in 2020, we were hired by LAWA’s Risk Management Division to evaluate key risk management functions, including risk retention decisions, insurance coverages, contracts with brokers, and policies, procedures, and process for handling claims. It also included a full-scale assessment of the Division’s Workers’ Compensation Program and its relationship with its Third-Party Administrator. We evaluated existing policies and procedures, key business operations, best practices, and compliance with federal, state, and local laws relevant to the administration and management of workers’ compensation programs. This audit found that LAWA had taken a generally passive approach to purchasing insurance policies and had not conducted a risk retention review in more than a decade; rather, its policy was to purchase as much insurance as possible, potentially incurring more costs than necessary to adequately insure risks. It also established an atypical arrangement with its TPA that prevented it from adequately manage workers’ compensation claims and associated costs, to intervene at key points during the workers’ compensation claims, and to evaluate critical trends in workers’ compensation claims.

City of Los Angeles—Fire Department, Emergency Medical Services Billing and Collections The purpose of this audit was to determine the accuracy, efficiency, and effectiveness of the EMS billing and collection process, and how the recently implemented automated systems have affected the administrative efforts involved in providing EMS. This audit revealed numerous positive outcomes resulting

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from LAFD’s transition to automated data collection and billing processes. LAFD reduced the risk of lost or inaccurate medical records; increased its ability to analyze EMS data for ongoing quality improvement; increased its collection rate by 23 percent to $64.8 million in three years since implementing the new system; improved its ability to secure Protected Health Information (PHI); streamlined the transfer of EMS records to expedite billing; and increased net collections of EMS fees. We also found that LAFD only charged patients that it transports to a hospital, despite providing treat-no-transport services to nearly 40 percent of its patients annually, significantly diminishing potential cost-recovery revenues.

City of Los Angeles, CA—Study of Labor Negotiation Practices In a joint venture with Cornell University’s School of Industrial and Labor Relations, we conducted a study of the City's labor negotiation policies, processes, and practices. We reviewed past executed and current negotiations, mapped the collective bargaining process, evaluated the fiscal impact of the negotiations, and identified areas of improvement. This study underscored the need for stronger management controls, increased transparency, ongoing compensation reviews, better succession planning, stronger risk management, and a focus on strategic plan development.

City of Sacramento—Community Development Department
On behalf of the City of Sacramento’s Office of the City Auditor, we completed a performance audit of the City’s Community Development Department’s (CDD) permitting processes. The objectives of the audit were to assess the CDD’s general permitting activities and related permit fee calculation, assessment, and collection processes. This included a detailed review of CDD’s system of internal controls (business processes, tone at the top, monitoring activities, etc.), as well as the system controls associated with its permitting information system (Accela). We found CDD lacked an organizational culture that supported strong internal controls; it had not developed formal policies and procedures as expected; and it lacked appropriate system safeguards and supervisory oversight, allowing for inappropriate permitting practices to occur undetected. This lack of necessary system access restrictions, logical controls, and exception reporting within CDD’s permitting system—combined with employees’ ability to make decisions without due oversight— significantly diminished management’s overall internal control environment. As a result, we found persistent practices that disregarded or circumvented state building laws and City Codes resulting in inconsistent permitting practices and loss of city revenue, including at least $2.3 million in required permit fees.

Port of Long Beach Federal Grant Administration Review
This project assessed a variety of operational and administration activities, functions, and responsibilities, such as purchasing, invoice review, contracting, fund availability analysis, reimbursement processing, fiscal reporting, file retention, and compliance with federal requirements. In general, we found there are several good control activities in place over the Port’s grant administrative activities such as ensuring procurements and resulting contracts comply with grant requirements, invoices are adequately reviewed, and fiscal reports are appropriately supported with fiscal records.

University of California, Office of the President—Multi-Departmental Budget Model Assisted officials in developing a comprehensive multi-departmental budget model for its headquarter operations. The two-phase project entailed recreating baseline expenditure budgets (historic, current, and

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future) for more than 25 departments, including position and expenditure projections, established key mission critical activities, and opportunities for efficiencies and savings. Budgets were modeled into roll-up tools to provide the UC Regents with a first-time comprehensive appropriation control proposal that provides essential data for strategic decision-making.

City of Anaheim—Anaheim Enterprise Zone Program
The City contracted with Sjoberg Evashenk to conduct a performance audit of the Enterprise Zone. The objective of this audit is to determine whether the Enterprise Zone was implemented in compliance with: a) state statutes, regulations, and the MOU covering the Enterprise Zone; and b) the contract between the Chamber and the City to administer the Enterprise Zone. Specifically, this audit focuses on the City’s administration and monitoring of the contract between the City and the Chamber; the sufficiency of internal controls over the Enterprise Zone vouchering process; cost tracking (including time keeping and Enterprise Zone-related expenditures); compliance with bonding and insurance requirements set forth in the contract between the City and the Chamber; and conflict of interest provisions set forth in the contract relating to the issuance of vouchers.

City of Grants Pass—Economic Development & Tourism
We conducted a comprehensive performance audit of the structure, personnel, activities, and operations of the Economic Development and Tourism programs to provide recommendations to improve services, efficiency, effectiveness, and return on investment to the community of the resources committed. We reviewed the program’s expenditures, evaluated staffing and management, determined cost and benefit of the program in terms of return on the City’s investment in economic development, and assessed the outputs and outcomes of the program in relation to best practices and comparable entities. The Tourism Promotion Services was responsible for marketing the Grants Pass area and improving the City’s economy through encouraging and supporting tourism and visitors. We evaluated the City’s web presence in terms of tools, utility, and effectiveness for tourism; the level and use of resources—expenditures, contracting, and staffing; expertise, roles, and responsibilities of staff; Tourism’s data collection activities in terms of performance measures, usefulness, and cost and benefit; and, how Grants Pass compared to comparable entities and industry best practices. Additionally, we analyzed the Tourism’s participation in special events, level of resources committed, and the return on these investments.

City of Los Angeles—Bureau of Sanitation, Hyperion Sewage Treatment Plant Under a federal court order, the City of Los Angeles constructed the Hyperion Sewage Treatment Plant to provide secondary treatment of all of the city’s sewage using the Hyperion Energy Recovery System (HERS). Our first evaluation entailed reviewing a range of activities, including the Federal, State and City’s five-year study of sludge management alternatives, reduction of discharge of sludge into the Pacific Ocean, accidental discharges into the ocean, project cost overruns, and compliance with the decree. Later we reviewed the Bureau of Sanitation’s activities at Hyperion during a broad study of the City’s Public Works Department, of which the bureau is a part. Generally, the City of Los Angeles and State Water Resources Control Board concurred with our conclusions.

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Los Angeles Unified School District—Use of Job Order Contracting in School Construction We were engaged by LAUSD to audit the 6-year old JOC program at LAUSD to assess the efficiency and effectiveness of the program and determine the best type of projects to undertake using the JOC program.

Our review covered the 138 master contracts with 44 different contracting firms. As of November 1, 2011, the District issued JOC “master” contracts valued at up to $791 million—with total contract receipts ranging from $200,000 to $10 million per contractor. The JOC program has its foundation in an electronically- based set of catalogues, the chosen contractor was the Gordian Group. At LAUSD, once approved, individual JOC projects, or Job Orders are fixed price, lump sum agreements. Any changes to add or remove scoped tasks in the initial project require that a supplemental Job Order be approved. Over the period of our review the LAUSD issued 6,058 Job Orders using JOC totaling $627.7 million.

City of Oakland—Personnel Operations
Sjoberg Evashenk Consulting has completed an audit of the City of Oakland’s (City) hiring and related personnel processes under contract with the Office of the City Auditor. Overall, we found a prevalent perception throughout the City that a lack of strong leadership and accountability has allowed the perpetuation of unfair hiring activities and inappropriate circumvention of Civil Service Rules. To determine if the City’s personnel rules and requirements were appropriately followed, we utilized a multifaceted testing strategy of the City’s various hiring and promotion practices and processes—results concluded that unfair hiring practices had occurred and appearances of favoritism were created.

City of Richmond—Neighborhood Stabilization Program
We conducted an operational performance review of the City of Richmond’s Neighborhood Stabilization Program. The City’s Neighborhood Stabilization Program receives funds from the federal Neighborhood Stabilization Program (NSP) that was authorized under Title III of the Housing and Economic Recovery Act. This department is responsible for awarding and overseeing loans to developers to purchase and rehabilitate foreclosed homes within the City boundaries. This project is currently in progress and will assess the City’s oversight and management of NSP loans, controls employed to ensure appropriate use of HUD funds, and make recommendation to improve processes, enhance oversight of developers, and ensure appropriate controls are employed by the City to safeguard federal funds and provide accountability to the public.

City of Santa Monica—Santa Monica Airport Fixed Base Operators Conducted lease agreement reviews at three of the airport’s major FBOs. Included in each audit was testing to ensure compliance with insurance requirements set forth in the lease agreement. We recommended airport require the FBOs to submit all executed supply agreements to the City prior to initial fuel deliveries, ensure all supply agreements included required indemnification provisions, and confirm that all fuel suppliers submitted evidence of insurance requirements to the City.

Sutter County—Community Services Department
As the County’s contracted Internal Auditor we have conducted an evaluation of its Community Services Department (CSD). CSD’s activities include planning, permitting, building safety and inspection, and environmental health. It was established to create a “one-stop shop” public counter where questions are

SJOBERGEVASHENK P a g e | 15
answered, plans submitted, reviews completed and permits and other approvals obtained. We assessed the department’s strategic planning efforts, management style, workload and productivity, information technology, fee setting and billing, administrative support costs, record retention and inspections. Using our past experience and best practices, we identified several areas where processes could be streamlined, activities automated, collections improved and oversight of inactive permits increased. Further, we suggested consolidating several administrative support services to reduce costs, and changes in the fee setting protocols to capture true costs.

San Diego Association of Governments Transportation and Transit Construction Program We have conducted four performance audits of the $14 billion TransNet program over the last decade looking at a variety of areas including performance, fiscal control, procurement, and contracting among others. We examined evaluation criteria, scoring matrices, scoring sheets, and ultimate recommendations for award, as well as approval processes to see where bottlenecks and delays occurred at various steps.

Also, we tested contract compliance with a variety of federal and state requirements, procurement processes and manuals, board policies, directives, and bid summaries. Additionally, we analyzed contract change requests, invoices, and payment vouchers to assess controls over contract modifications and budget adjustments as well as processes for appropriate review, justification, accuracy of payments, and compliance with statements of work.

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Proposed Project Staff & Resumes
Structured as a California Sub-Chapter S Corporation, Sjoberg Evashenk Consulting is a certified woman- owned small business enterprise and operates out of its headquarters in Sacramento, California. Our firm consists of three partners, three directors, and a team of six senior and staff professional consults.

Collectively, we bring decades of experience auditing state and local government agencies.

We propose to designate Lynda McCallum, a Partner at Sjoberg Evashenk Consulting, to serve as Primary Partner and Relationship Manager for the City. She brings 23+ years leading large, multidisciplinary teams on high-profile state and local engagements and has directed numerous GAGAS performance audits, program evaluations, operational reviews, rate studies, and financial analyses.

Highlights include strengthening accounting/finance operations at two large state departments; reviewing major environmental programs for compliance and reimbursement processes; assessing rate structures and fiscal viability; and leading an evaluation of investment and cash management for the City of Los Angeles. She has also led dozens of superior court audits statewide—covering fiscal cycles, service delivery, case management, facility/security and evidence rooms—and managed complex projects in financial controls, contracting and leasing, procurement, outcome monitoring, human resources, revenue generating contracts and programs, public infrastructure, and indirect cost allocation.

We also bring a core group of professionals to this project, each with different professional experience, education, and certifications. Combined, we believe this team will provide a well-rounded group of professionals that will serve the City with diligence, professionalism, and expertise. • Lynda McCallum, Partner, MBA, CGFM, CGAP
• George Skiles, Partner, MA, CIA, CRMA
• Cathy Brady, Partner, MBA, CPA, CCA, CGMA
• Margarita Fernandez, Director, CPA, CGFM
• Lien Luu, Director, BA, CCA
• Kelly Hansen, Manager, BA
• Chris Paparian, Manager, BA

This group of Key Personnel will directly manage all work performed on behalf of the City—including project planning, detailed fieldwork, and report writing—and will provide overall technical expertise and guidance on projects, prepare project deliverables, and perform quality control procedures. Our entire team is well versed in public sector performance auditing and fully conversant with Yellow Book Standards (generally accepted government auditing standards—GAGAS—as promulgated by the U.S. Comptroller General) and the Red Book Standards (International Professional Practices Framework—IPPF) for internal auditing. In addition to the Key Personnel identified above, we also propose the following core group of senior and associate-level staff.
• Lauren Evashenk, Managing Senior Consultant
• Brandon Barry, Senior Consultant
• Chongtoua Mouvangsou, Senior Consultant,
• Jessie Hancock, Senior Consultant
• Ben McCallum, Senior Consultant
• Ambar Negrete Hernandez, Staff Consultant

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We offer numerous certifications such as Certified Public Accountant, Certified Internal Auditor, Certified Government Financial Manager, Certified Government Audit Professional, Project Management Professional, Certified Construction Auditor, and Chartered Global Management Accountant. We are also active members in several industry organizations, including the Project Management Institute, Institute of Internal Auditors, Association of Government Accountants, American Institute of Certified Public Accountants, Association of Local Government Auditors, National Association of Construction Auditors, and the Society of Human Resources Management.

Project Responsibilities and Organizational Structure
Below, we describe the roles and responsibilities of the positions we will employ on this engagement, as well as a general percentage we anticipate each classification of employee would dedicate to each internal audit project. The proposed project manager and City Auditor, Ms. McCallum, will lead 100 percent of all administrative and project oversight responsibilities of the position.

Project Member Project Functions
Partner Provide overall technical expertise and guidance on the project, help draft and edit report, and perform quality control.

Director
Oversee project activities including participating in planning and visioning meetings, report review, providing quality assurance and secondary review of work products; and lead day-to-day project activities and guide lower-level staff in completing assigned tasks. Conduct complex analyses, coordinate meetings, write report, and provide initial review of work products.

Manager Lead day-to-day project activities and guide lower-level staff in completing assigned tasks. Conduct complex analyses, coordinate meetings, write report, and provide initial review of work products.

Senior Consultant
With guidance from directors and managers, senior and associate consultants conduct on -site interviews, perform functional and operational analyses, assist with drafting report, and lead staff consultants.

Staff & Associate
Consultants
With guidance, perform detailed data mining and testing, conduct benchmarking research, and provide initial analyses on task areas.

Below, we provide a high-level organizational chart illustrating the reporting relationships for our core project staff.

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Resumes
On the following pages, we present one-page resumes for our proposed project team, beginning with our proposed project manager and City Auditor, George Skiles. Each resume details the specific relevant education, technical expertise, certifications, and experience in providing similar services and completing projects of comparable magnitude as those described in the RFP.

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George Skiles, Partner with Sjoberg Evashenk
Consulting, brings more than 24 years of experience in
evaluating programs in the public and private
sector. Mr. Skiles specializes in state and local
government programs and operations, and currently
serves as the outsourced Chief Audit Executive for two
local governments—the City of E lk Grove, California,
and Snohomish County, Washington —in addition to
conducting performance audit/evaluation and
consulting services for state and local governments
throughout the Western United States. His experience
includes projects relating to:
 Development Services, including public works,
planning, building and safety, transit, and code
enforcement
 Affordable housing, economic development,
workforce development, community
redevelopment, and financing programs
 Youth and family services, community
development and gang reduction programs
 Park and recreation, convention center, museum,
and multi-purpose facility operations
 Government administration, including human
resources, payroll, budgets, finance,
procurement, contracting, and leasing
 Enterprise operations, including ports, airports,
and municipal utilities
 Public safety, including law enforcement,
corrections, and emergency response
His projects address a broad range of issues or
challenges faced by public sector management though
assessments of efficiency and effectiveness, inherent
risks and risk mitigation, performance evaluation and
measurement, and business process development
and/or streamlining. Each resulted in practical,
actionable recommendations.

George J. Skiles
Partner
Experience
 24 years of experience in public sector
auditing and consulting
 18 years with Sjoberg Evashenk Consulting
 6 years with the Los Angeles City Controller
 Former part-time instructor at College of the
Canyons and Moorpark College
Functional Expertise
 State and local government programs
 Enterprise Risk Management (ERM), risk
assessment and mitigation
 Organization and Efficiency Reviews, SWOT
analysis, and business process evaluation
and streamlining
 Business and strategic plan evaluation
 Performance measurement, evaluation, and
audit
 Insurance, Risk, and Control (GRC)
 Management reporting & results—
accountability and transparency
 Management Training
Education and Certifications
 California State University, Northridge, BA—
Sociology
 Master of Arts, Sociology, California State
University, Northridge
 Certification in Risk Management Assurance
 Certified Internal Auditor
 Member of the Institute of Internal Auditors
 Member of the Association of Local
Government Auditors

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Catherine Brady, Partner, has overseen and managed
hundreds of assignments ranging from reengineering
practices at the California Air Resources Board and its Cap-and-Trade program to internal audits of more than
50 county Superior Courts to comprehensive reviews of
major transportation and transit projects in Arizona and San Diego. She has conducted internal control reviews
and risk assessments of major state and local
governments and reviewed program activities involving
the San Francisco International Airport, California Health Benefit Exchange, Judicial Council, State Treasurer’s
Office, Caltrans, Department of Managed Health Care,
and City of Oakland to name a few.

Ms. Brady’s diverse background includes evaluating and
consulting on programs at both large Southern California ports, city franchise fees paid by gas and power
companies, public works and community development
programs, internal control risk assessments, analyses of financing authority bonding and loan activities, cost
controls, program performance metrics and peer
comparisons, plans of finance and budget assumptions,
bus transit and rail operations, capital project and
construction reviews, health care ex changes, and school and university program.

Further, Ms. Brady is an experienced trainer and has
authored and provided courses in performance audit,
fraud, fiscal reviews, interviewing, internal controls, and documentation. She offers hands -on experience
designing manuals, tools, checklists, and handbooks for the implementation and application of the new
processes and protocols as well as provides coaching to management and staff of public entities relating to
updated policies, procedures, operations, and best
practices.

Catherine Brady

MBA, CPA, CGMA, CCA
Partner, Sjoberg Evashenk Consulting
Experience
 Nearly 31 years’ experience in public sector
management consulting
 More than 20 as an executive with Sjoberg
Evashenk Consulting and 11 years with the
California State Auditor
Functional Expertise
 Internal controls and risk assessments
 Information technology systems development
and analysis
 Federal and State grant programs
 Performance metrics and analysis
 Project management, project oversight,
PMBOK
 Financial audits and evaluations, fiscal
analysis, loan activities
 Capital construction, change order
management, and related practices
 Performance audits and evaluations
 Strategic planning, organizational
development, change management
 Transportation, bus transit, and rail program
delivery and management
Education and Certifications
 California State University, Sacramento, BS
Business Administration, Accounting
 MBA—California State University,
Sacramento
 Certified Public Accountant
 Chartered Global Management Accountant
 Certified Construction Auditor

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Lynda McCallum, Partner with Sjoberg Evashenk
Consulting, offers over 23 years’ experience managing
large project teams conducting a wide array of complex
high-profile engagements for local and state government, including large -scale complex performance audits,
program evaluations, operational reviews, rate studies, and financial analyses. Ms. McCallum has presented her
reports to city councils, boards of supervisors, and state commissions.

Highlights of recent engagements include: reviewing
several large State and local environmental programs to ensure acquisition, restoration, and land management
expenditures and activities were in compliance with
established ordinances and program policies and,
strategic plans, and program objectives. Also, evaluated priority categories, processes to reimburse claimants
environmental cleanup activities, and contracting
practices with oversight regulators.

Other recent projects include evaluating complex
operations at two state departments to determine whether existing rates charged to rate payers support the program activity and services, assessing the rate structure,
reviewing key functional areas, and determining the fiscal viability of the related funds/programs. Also, Ms.

McCallum has recently managed an accounting business
process reengineering effort for a large state agency and has conducted several large performance audits related
to hiring practices associated with sworn employees.

Moreover, she has led dozens of performance audits at
superior courts throughout California that include all fiscal related business operations, service delivery, and case management and conducted projects involving large
complex leasing, procurements, fin ance, outcome
monitoring, human resources, and indirect costing and
allocation.

Lynda A. McCallum

MBA, CGFM, CGAP
Partner, Sjoberg Evashenk Consulting
Experience
 23 years’ experience in public sector
management consulting with Sjoberg
Evashenk Consulting.
 Pension Administrator with responsibilities
over 401K retirement plans
 Human resources coordinator for large-scale
IT projects for local state and county
government agencies
Functional Expertise
 Performance audits, program evaluation, and
best practices
 Complex fiscal and economic analysis
 Rate setting and process streamlining
 Information technology systems analysis
 Business process reengineering
 Human resources practices
 Financial-related audits, evaluations
 Board and other stakeholder relations
 Focus groups and surveys
Education and Certifications
 University of Southern Mississippi,
Hattiesburg, BS Business Administration
 MBA—California State University,
Sacramento Finance
 Certified Government Financial Manager
 Certified Government Audit Professional

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Margarita Fernandez, director, has over 30 years of
experience working in the public sector with state, federal and local government entities and with various national and regional professional organizations. For over a decade, she set policies and procedures and oversaw the q uality control program—reviewing audit work for compliance with audit
standards and procedures. She also managed all aspects of public affairs including developing and managing website and social media content; responding to all press inquiries and conducting numerous interviews; managing hundreds of
requests for public records; and working with professional entities across the country to identify best practices in federal, state, and local government audits and evaluations.

She has overseen and managed numerous projects ranging
from reengineering and streamlining financial and single audits, establishing internal controls for child support services agencies, evaluating community correction program costs, assessing processes and controls for school districts and other educational programs, as well as for transportation programs, nonprofits, various fiscal offices, and general governmental entities. Further, she worked with multiple state audit offices and national organizations to revise peer review programs and, analyze and opine on proposed audit and
accounting standards and federal program requirements, and participated in peer reviews of other state audit offices.

As an executive for over 20 years, Ms. Fernandez worked on various strategic planning processes identifying goals, objectives, performance metrics, and implementation of
strategic plans. Further, she communicated information regularly and revised policies and procedures on an ongoing basis to reflect strategic direction, changes, and as part of implementing strategic priorities.

Ms. Fernandez offers expertise in professional audit
standards, fiscal and financial operations, program
evaluations, efficiency and effectiveness audits, and general entity operations. She is an experienced trainer and has delivered courses in communicating results, performance auditing, fiscal reviews, internal controls, and audit standards and documentation. Further, for many years, she identified best practices and developed audit and rev iew manuals, tools, checklists, and other items needed to implemen t and monitor new processes.

Margarita Fernandez

CPA, CGFM
Director
Experience
 More than 30 years of experience in
auditing, fiscal analysis, and consulting
 Over 20 years in executive leadership at
Sjoberg Evashenk Consulting and the
California State Auditor
Functional Expertise
 Performance auditing at state and local
level
 Quality control and assurance for
performance and financial audits
 Professional standards and analysis
 Organizational and audit policies and
procedures development and oversight
 Public information management and
working with the press, managing website
content, and overseeing public records
and requests
 Conducting townhall meetings, presenting
information, and working with
stakeholders.
 Project Management
 Financial evaluations and fiscal analysis
 Operations streamlining
 Strategic planning and organizational
development
Education and Certifications
 California State University, Sacramento,
BS Business Administration, Accounting
 Certified Public Accountant
 Certified Government Financial Manager
Accountant

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Lien Luu, Director with Sjoberg Evashenk Consulting,
has conducted and led program evaluations, business
process assessments and re-engineering, performance
audits and evaluations, and construction and contract
reviews. With goals of identifying efficiencies, determining effectiveness, and delivering more with less, Ms. Luu has successfully completed several of the firm’s largest public works and transportation construction audits.

Ms. Luu brings expertise in cost monitoring, contract
audits, and economic analyses. She has supervised
numerous reviews and audits involving determination of
governmental grant recipients’ compliance with
regulations, competitiveness of government procurement
and contracting including selection, and award processes and best value for purchase of material, equipment, and supplies.

She was instrumental at performance audits of over a
dozen trial courts in California which included the review of the courts’ fees and fine structures, internal controls, financial operations, cash collections and recording, cost accounting, financial analyses and reporting, and case
management systems.

She has lead projects involving the roll-out of new
federally sponsored programs that were administered
statewide—helping state managers develop the
programs, design a framework for internal controls, risk management, compliance and reporting, developing user
manuals and training, and conducting audits of the files and documents.

On long-term engagements for the largest public school
district in Portland, Ms. Luu led the review of bond budget and construction cost estimates for the delivery of K-12 school modernization projects as approved by voters. She brings in-depth expertise in areas such as construction contracts, guaranteed maximum price build-up, labor
burden, change order pricing and contingency analysis,
site safety, and workforce and business equity.

Currently, Ms. Luu is the firm’s project manager on the Multnomah County’s $387 million library construction
bond program leading construction audits of library
facilities ranging from $8 million to over $150 million.

Lien Luu

BS, CCA
Director, Sjoberg Evashenk Consulting
Experience
 Over 20 years of management consulting
experience with Sjoberg Evashenk Consulting
Functional Expertise
 Business operations mapping, gap analysis,
needs assessments
 Construction and contract management and
review
 Internal audits – risk assessment and internal
controls
 Development of policies, procedures, and
operational manuals
 Best practices and performance measurement
 Small business financing—loan portfolio
insurance, collateral support
 Capital construction—freeways, transportation,
water infrastructure, co-generation power,
airports, schools
 Trial court operations, trust fund management,
budgeting and fiscal oversight
 Federal funding compliance—overhead costs,
grants, super circular
 Federal Acquisition Regulations
Education and Certifications
 BS Business Administration, International
Business—California State University,
Sacramento
 Certified Construction Auditor (CCA)

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Chris Paparian is a Managing Senior Consultant with
Sjoberg Evashenk Consulting. He provides strong
research and analytical skills, as well as project
management, communication, and attention to detail.

Prior to joining Sjoberg Evashenk Consulting, Mr.

Paparian worked for the California State Auditor’s office for six years. He most recently worked as an audit
supervisor leading performance audit teams on large
and complex performance audits of statewide programs.

He has worked on audits of various state and local
policies and programs. Some of these audits include:
 Oversight of state and local government
homelessness funding
 Effectiveness of greenhouse gas emissions
reduction programs operated by the California Air
Resources Board
 Fee revenues collected by the State Bar of
California
 Personnel practices at the Metropolitan Water
District of Southern California
 Barriers to families receiving care from the
Department of Developmental Services
 Financial health of the cities of Lincoln and
Lindsay
Through years of conducting performance audits, Mr.

Paparian has become familiar with a wide variety of
state laws and regulations, local ordinances and
charters, and state agency policies and procedures.

Mr. Paparian earned his B.A. in Economics and
Accounting from the University of California, Santa
Barbara.

Chris Paparian
BA
Manager, Sjoberg Evashenk Consulting
Experience
 Joined Sjoberg Evashenk Consulting in 2024
 Six years’ experience in performance auditing
at the California State Auditor
Functional Expertise
 Performance auditing at the state and local
level
 Project management
 Policy analysis
 Program evaluation
 Strategic communications
 Quantitative and qualitative analysis
Education and Certifications
 University of California, Santa Barbara –
Bachelor of Arts in Economics and Accounting

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Kelly Hansen is a Manager with Sjoberg Evashenk
Consulting. She provides strong research and
analytical skills, as well as organizational management, communication, and attention to detail. Having worked
in both the public and private sectors, she has a unique understanding of the various factors that contribute to strong organizational success in each.

Ms. Hansen has managed and conducted performance
audits and reviews of in multiple operations and areas
including healthcare, transportation, capital
construction, procurement, fiscal functions, and
education. She brings a broad range of experience
working in the government environment including:
 Affordable Care Act operations and compliance
for Covered California
 Performance audit of NRG Energy Center’s
franchise fees paid to the City and County of San
Francisco
 Sunset review and performance audit of the
Arizona State Board of Respiratory Care
Examiners compliance and performance of
regulatory duties
 Performance Audit of the Seligman School
District for the Arizona Auditor General
 Audit of a $1 billion school bond capital
improvement program for Portland Public
Schools
Through years of liaising between private clients and
regulatory agencies, Ms. Hansen has had the
opportunity to become familiar with the policies and
procedures of major regulatory agencies including the
California Air Resources Board (CARB), the Storm
Water Resources Control Board (SWRCB), the
Division of Occupational Safety and Health
(Cal/OSHA), and the United States Environmental
Protection Agency (EPA).

Kelly Hansen
BA
Manager, Sjoberg Evashenk Consulting
Experience
 Joined Sjoberg Evashenk Consulting in 2021.
 Nine years’ experience in consulting
 Nine years’ experience in regulatory
compliance auditing
 Four years’ experience in performance
auditing
Functional Expertise
 Regulatory research and analysis
 Process mapping
 Benchmarking, best practices, performance
metrics and assessment
 Compliance plan development and
implementation
 Quantitative and qualitative analysis
 Transportation planning
 Policy analysis
 Proficient in Microsoft Office and Google Suite
Education and Certifications
 University of California, Davis – Bachelor of
Arts in Exercise Biology, Minor in Psychology

SJOBERGEVASHENK P a g e | 26
Lauren Evashenk is a Managing Senior Consultant with
Sjoberg Evashenk Consulting. Since joining the firm, she has been a key team member on consulting and
performance audit engagements for a range of state and
local government agencies and non-profits, such as the
Office of the Arizona Auditor General, the City of Portland, OR; Snohomish County, WA; San Mateo County, CA;
Orange County, CA; Colorado New Energy Improvement
District; California Earthquake Authority; Fresno
Economic Opportunities Commission; and Bay Area
Rapid Transit (BART).

Ms. Evashenk is skilled in both qualitative and quantitative analysis covering audit areas such as legal and regulatory compliance, human resources, classification and
compensation, procurement practices, capital
construction, financial compliance, and performance
metrics development and analysis. Some of these
projects include:
 Audit of a $1 billion school bond capital
improvement program for Portland Public
Schools
 Special Audit of the Arizona Board of
Chiropractic Examiners concerning regulatory
compliance and performance of duties
 Performance Audit of the Structure and
Staffing of the Executive Office and Council
Office for Snohomish County, WA
 Performance Audit of the Yucca Elementary
School District for the Arizona Auditor General
In her prior work in the private sector in digital agencies, marketing, and higher education, Ms. Evashenk crafted
and tracked project requirements, budgets, schedules,
and standards for deliverables, managed teams of
developers and creatives, and collaborated daily with
clients to incorporate feedback and mitigate obstacles.

She also analyzed data to identify trends, inform future initiatives, and generate progress updates.

Ms. Evashenk graduated magna sum laude from the
University of Southern California and is a Phi Beta Kappa member.

Lauren H. Evashenk
MA
Managing Senior Consultant, Sjoberg
Evashenk Consulting
Experience
 9 years with Sjoberg Evashenk Consulting
 Other Consulting
o 5 years project management experience
o 5 years of experience in strategic
communication
o 2 years of experience in small business
consulting
Functional Expertise
 Human Resources – employee relations,
classification, compensation, benefits, hiring
 Benchmarking, best practices, and
performance metrics
 Quantitative and qualitative analysis
 Policy research and analysis
 Team management
 Strategic communications
 Project management of large budget, high
impact, global projects
Education and Certifications
 University of Southern California – Master of
Communication Management
 University of Washington, Seattle – Green
Chemistry & Chemical Stewardship
 University of Southern California – Bachelor
of Arts in History, minor in Law

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Brandon Barry is a Senior Consultant with Sjoberg
Evashenk Consulting. He provides strong research and
analytical skills, as well as organizational management, communication, and attention to detail. Having worked in both the public and private sectors, he has a unique
understanding of the various factors that contribute to strong organizational success in each.

Since joining Sjoberg Evashenk Consulting, Mr. Barry
has worked with a range of state and local government
agencies, and has experience analyzing legal and
regulatory compliance; and performance measurement
development, analysis and visualization. Some of these
projects include:
 Affordable Care Act operations and compliance
for Covered California
 Performance audit of the Bay Area Air Quality
Management District’s permit process, staffing
and financial projections
 Performance audit of the Capital Improvement
Program for the Santa Clara Valley Water District
 Construction audits for the County of
Multnomah’s $387 million Library Bond projects.

November 2023 – Current.
 Performance audit of the Landfill Disposal
Agreement between the City and County of San
Francisco and Recology San Francisco
 4 Arizona School District Performance Audits
 Arizona Sunset Review and Audit of the
Governors Regulatory Review Council
Prior to joining Sjoberg Evashenk Consulting, Mr. Barry worked in the construction bulk materials industry
analyzing market trends and forecasts. Before he joined the private sector he specialized in public policy and
government affairs working with the Legislature. The
breadth of his work experience includes legislative
research and analysis, organizational management, cost- benefit analysis, statistical analysis, communications and business development.

Brandon Barry
BA
Senior Consultant, Sjoberg Evashenk Consulting
Experience
 Joined Sjoberg Evashenk Consulting in
2022.
 Five-years’ experience in state government
including three years of continuous
experience auditing in State and Local
government from 2022 to current.
 Two-years’ experience in construction
market analysis and sales.
 Three-years’ experience in policy analysis
and public affairs.
 Two-years’ experience in marketing and
communications.

Functional Expertise
 Policy analysis research and analysis
 Process mapping
 Benchmarking, best practices and
performance metrics
 Quantitative and qualitative analysis
 Business rules analysis and testing
 Proficiency utilizing statistical analysis
software including STATA, ACL, and Excel
 Cybersecurity best practices through NIST
and ISACA
 Construction market research
Education and Certifications
 California State University, Sacramento –
Bachelor of Arts in Political Science,
International Relations

SJOBERGEVASHENK P a g e | 28
Chongtoua Mouavangsou is a Senior Consultant with
Sjoberg Evashenk Consulting. He provides strong
research and analytical skills, as well as organizational management, communication, and attention to detail.

Having worked in the public sector, he has a unique
understanding of the various factors that contribute to strong organizational success in each.

Since joining Sjoberg Evashenk Consulting, Mr.

Mouavangsou has worked with a range of state and
local government agencies and has experience
analyzing legal and regulatory compliance, and
performance measurement development, analysis and
visualization. Some of these projects include:
 Affordable Care Act operations and compliance
for Covered California.
 Performance audit of the Portland Public
Schools’ school bond capital improvement
program.
 Performance audit of Arizona school districts
pursuant to Arizona Revised Statues.
 Performance audit of Investor-Owned Utility
Compliance with Community Choice Aggregation
Code of Conduct Rules.
 Compliance audits of Utilities’ balancing
accounts.
 Construction audits for the County of
Multnomah’s Library projects.

Prior to joining Sjoberg Evashenk Consulting, Mr.

Mouavangsou worked in multiple roles as a liaison for
state government officials. The breadth of his work
experience includes government and the political
process, external affairs, stakeholder engagement,
public affairs, communication, and policy and legislative analysis.

Mr. Mouavangsou earned his Bachelor of Science in
Criminology from the California State University,
Fresno.

Chongtoua Mouavangsou
BS
Senior Consultant, Sjoberg Evashenk Consulting
Experience
 Joined Sjoberg Evashenk Consulting in 2022
 Six-years’ experience in state government
 Six-years’ experience in public affairs
 Three years’ experience in performance and
compliance auditing
Functional Expertise
 Stakeholder engagement
 External and public affairs
 Regulatory research and analysis
 Benchmarking, best practices, performance
metrics and assessment
 Quantitative and qualitative analysis
 Program evaluation
 Proficient in Microsoft Office
Education and Certifications
 California State University, Fresno – Bachelor of
Science in Criminology

SJOBERGEVASHENK P a g e | 29
Jessie Hancock is a Senior Consultant with Sjoberg
Evashenk Consulting. She offers insight from 10 years of management and business development experience. She
has a professional background in a variety of industries including hospitality, wholesale distribution, and real estate. Mrs. Hancock has acquired skills in forecasting and risk management, quality assurance, and financial
analysis and reporting.

Since joining Sjoberg Evashenk Consulting, Mrs. Hancock has worked with several government agencies and has
experience in public sector governance, data analysis and performance metrics, regulatory compliance, and
operational efficiency. Some of these projects include:
 Performance audit of the Bay Area Air Quality
Management District for the Engineering and My
Air Online Divisions.
 Construction audits for the Multnomah
County Library projects and the Portland
Community College Metropolitan Opportunity
Center.
 Compliance audit of the City of Portland Bureau
of Human Resources payroll practices and
payment obligations.

Prior to joining Sjoberg Evashenk Consulting, Mrs.

Hancock served as the Administrative Director for a local entertainment company and gained expertise in process
design and improvement, human resources and vendor
management, data analysis, and financial statement
preparation. She has a strong understanding of
administrative and operational processes as well as
effective written communication and documentation skills.

Mrs. Hancock earned her Bachelor of Science in Business Administration-Accounting from the University of South
Alabama.

Jessie Hancock
BS
Senior Consultant, Sjoberg Evashenk Consulting
Experience
 Joined Sjoberg Evashenk Consulting in
2023
 Six years in management and human
resources
 Four years in business development
 Two years of financial analysis and
operational processes experience
Functional Expertise
 Quantitative and qualitative data analysis
 Operating procedure design and
implementation
 Internal controls assessment
 Risk management
 Inventory and vendor management
 Financial analysis
 Client Relations
 Writing & Documentation
Education and Certifications
 University of South Alabama— Bachelor of
Science in Business Administration,
Accounting

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Ben McCallum is a Senior Consultant with Sjoberg
Evashenk Consulting providing strong research and
analytical skills.

Mr. McCallum has conducted multiple performance and
compliance audits for clients across various industries, evaluating internal controls, operational efficiency, and regulatory adherence; conducted fieldwork, and
delivered comprehensive reports with strategic
recommendations to senior management. Examples
include:
 Performance audit of three major electric utilities,
including evaluating compliance with Community
Choice Aggregation Code of Conduct Rules and
determining whether the three IOUs used their
position or market power to undermine the
development or operation of a CCA.
 Performance audit of city/county garages includes
evaluating contract compliance, calculations of
revenue sharing, cashiering, cash control, and
internal controls.
 Performance audit of large non -profit, including
evaluating compliance with bank account rules
and regulations, including balance requirements.
 Compliance audits of Utilities’ balancing accounts.
 Cost evaluation to analyze the actual cost of
operating both standard and specialized
community corrections programs in Colorado.

Recently, he has analyzed the internal control
environment and procurement activities of a local city
government, including isolating high-risk transactions, testing processes for compliance with rules, regulations, policies and procedures, identifying key program and
administrative factors needing improvement, and
developing practical recommendations. He has also
evaluated utilities’ transactions and activities reported and recorded in its balancing accounts to determine if
they were for allowable purposes , supported by
appropriate documentation, and complied with all
applicable laws and regulations.

Ben McCallum
BS
Senior Consultant, Sjoberg Evashenk
Consulting
Experience
 Joined Sjoberg Evashenk Consulting in 2023.

Functional Expertise
 Procurement process evaluations
 Economic and data driven analysis
 Microsoft Word, Excel, and PowerPoint
 Statistical Applications SAS, STATA, and R
 Programming Languages C++ and Python
Education and Certifications
 University of the Pacific, Stockton,
BS Applied Mathematics, Minor in Economics

SJOBERGEVASHENK P a g e | 31
Ambar Hernandez Negrete is a Senior Consultant with
Sjoberg Evashenk Consulting. She provides strong
research and analytical skills, as well as organizational management, communication, and attention to detail.

She draws on her experience in research-intensive
settings to bring rigorous analytical skills to her audit work, helping agencies identify bottlenecks that hinder them from achieving their objectives.

Since joining Sjoberg Evashenk Consulting, she has
worked on numerous projects with state and local
agencies, assisting them in ensuring compliance with
regulations and identifying opportunities to improve
efficiency and effectiveness. These projects include:
 Performance audit of the Seligman Unified
School District.
 Sunset review and performance audit of the
Arizona Board of Occupational Therapy
Examiners.
 Sunset review and performance audit of the
Arizona State Veterinary Medical Examining
Board.
 Sunset review and performance audit of the
Arizona State Board of Pharmacy.
 Performance audit of Omnitrans Risk
Management, Mobility Services, Advertising, and
Accounts Payable .

Prior to joining Sjoberg Evashenk Consulting, Dr.

Hernandez Negrete served as a researcher at the
University of California, Davis. With training in both
quantitative and qualitative methods, Dr. Hernandez
Negrete brings deep expertise in analyzing policy and
organizational efficiency, translating findings into
actionable recommendations for agency leaders, and
supporting the design and implementation of programs
to meet strategic objectives. She also has extensive
experience managing projects with budgets exceeding
$100,000, overseeing client communications,
coordinating project workflows, and ensuring that
findings are clearly communicated and applied to client initiatives.

Ambar Hernandez Negrete
PhD
Staff Consultant, Sjoberg Evashenk Consulting
Experience
 Joined Sjoberg Evashenk Consulting in 2024
 Eight years in public university research
settings
 Eight years experience in policy and research
 Eight years helping public agencies identify
how to better cater to the populations they
serve
Functional Expertise
 Qualitative and quantitative training
 Policy analysis
 Benchmarking, transportation, best practices,
accounts payable, cash handling, contracting,
and performance metric
 K-12 and higher education, STEM, equity
 Proficient in Microsoft Office, Notion, CANVA,
Excel
 Project management and stakeholder
engagement
 Program implementation and expansion
 Research Software Qualtrics, MAXQDA, NVivo,
STATA, and R
Education and Certifications
 University of California, Davis., Ph.D.

Education, Specialization in School
Organization and Education Policy
 University of California, Davis., B.S. Community
and Regional Development, Minor in Education

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Proposed Project Approach and Work Plan
The City of Vallejo is seeking an independent, on-call performance audit partner to help City Council strengthen accountability, transparency, and results across departments and citywide initiatives. Our firm’s mission—and daily practice—is to advance efficient, effective, and equitable government through objective audits and practical recommendations that safeguard public funds and improve services for residents.

We understand Vallejo is building a risk-based audit program that combines (1) a citywide risk assessment and audit universe to guide priorities, and (2) task-order performance audits that address the highest-value areas first. Our team has designed and operated programs of this kind for municipalities throughout California, including capital projects oversight, grants compliance, ERP post-implementation controls, procurement/contract administration, and IT/cyber governance. We bring a balanced approach that pairs rigor with pragmatism: we test what matters, explain why it matters, and provide feasible actions with clear owners and timelines.

Aligned with GAGAS, the City’s initial priorities, and our initial risk assessment, our audits will assess whether the City’s programs, resources, controls, and reporting meet the following objectives:
• Programs are properly authorized and conducted in line with laws, grants/contracts, and City policy, with financial/operational/tech reporting that is fair, accurate, and complete (e.g., procurement/change orders; grant allowability; ERP/Central Square reporting); • Resources—funds, people, assets, systems, facilities —are safeguarded and used economically, efficiently, equitably, and effectively, supported by adequate controls and governance (e.g., pay apps; inventory custody; access/change/backup controls);
• Programs and policies achieve intended outcomes, with root causes of inefficiency or uneconomical practices identified and addressed (e.g., schedule/cost control on capital work; accurate/timely meter - to-cash);
• Financial and other reports are being provided that disclose fairly, accurately, and fully all information required by law, to ascertain the nature and scope of programs and activities, and to establish a proper basis for evaluating the programs and activities including the collection of, accounting for, and depositing of, revenues and other resources;
• Management has established adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls; and • Indicators are assessed and, when warranted, referred for investigation with appropriate safeguards and corrective actions.

To fulfill this responsibility, the City of Vallejo envisions that the selected audit partner will conduct a citywide risk assessment and develop an audit universe, prepare a 12–18-month risk-ranked audit plan, execute task- order performance audits under GAGAS, provide monthly status updates and clear draft/final reports, brief Council and stakeholders as requested, and perform semi-annual follow-ups with a concise corrective-action plan.

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Below, we describe our overall consulting approach and our approach to managing audit engagements.

Overall Consulting Approach
Our firm is committed to excellence and has adopted the following guiding principles that form the foundation of every project engagement our firm undertakes.

Vision: Delivering the greatest value for our clients requires that we not limit our focus to specific objectives of a given project or analysis, and the techniques we will employ to address them. We must also consider the broader context of our client’s mission and strategic vision, the organization’s culture, and the key concerns of officials, management, and stakeholders. Understanding our client and our client’s concerns is as important to providing value as is understanding the specific business processes, internal controls, and risks of a given program or operation. We believe that taking the time to understand our client’s concerns allows us to better ensure our project work and our recommendations align with the strategic vision and direction of the City. In doing so, we will take a holistic and systemic approach in performing our work, conducting data and root cause analyses, and providing recommendations.

Balance: It is important that the results of our work not only be reasonable, understandable, and valuable to our clients and the agencies we serve, but to be credible, our results must be balanced. We take great care to ensure objectivity and independence in our work, and to obtain the views and perspectives of responsible officials, staff, stakeholders, and others. Our analyses are designed to identify both strengths and weaknesses within organizations and programs, successes and opportunities for improvement, sound business practices and those that require attention. It is our intention, in every project, to provide our clients and stakeholders with objective and balanced deliverables with practical, actionable, and future- looking recommendations that will serve as a sound basis for decision-making. In doing so, we seek to balance the diverse needs, perspectives, and opinions of the people involved.

Collaboration: We appreciate and understand the dynamic work environment that challenges executives and staff serving the public, and we believe that creating an efficient and productive relationship with our clients is essential. We will seek to minimize business disruption by efficiently scheduling interviews, requests for information, or (if applicable) on-site activities. We will coordinate our requests with key personnel in order to efficiently gather and analyze data in a manner that ensures we obtain the information we need to perform our analyses while taking all possible measures to accommodate our client’s schedules and striving to effectively and efficiently use their time. This starts during project initiation by communicating needs and expectations, and continues through project completion by keeping our clients informed of our progress in meeting established expectations. We seek a mutually beneficial relationship that allows work to progress smoothly with a minimum of rework and disruption, as well as to create a safe learning and collaborative environment based on mutual respect and trust.

Commitment: We take all schedule-related commitments seriously and have established means by which we can address and mitigate potential delays, regardless of whether the delays are the result of unforeseen circumstances. For instance, at project commencement, we collaborate with our clients to establish communication and reporting protocols that include on-going communications, including periodic progress updates in which we will discuss progress toward milestones, tasks performed during the reporting period, tasks to be performed during the next reporting period, preliminary observations or

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issues, challenges or barriers incurred, or other matters that may impact scheduling. Our approach to project management further requires setting internal task-level timelines and budgets where we gauge and control our progress with respect to the overall schedule, providing the information necessary to make mid- point adjustments to our project approach, task timing, or resource allocation to maximize the engagement efforts.

Inclusiveness: Our firm serves a wide range of public agencies, which in turn serve diverse communities across the Western United States. We strongly believe that in order to best serve our clients we must seek diversity within our own practice, and embrace diversity among our clients. We foster a culture that values diverse perspectives and harbors respect, compassion, and equality, and we have built and continue to grow a robust and talented team offering a broad range of backgrounds, experience, and education. We also ensure, in conducting our project work, to seek input from and the perspectives of under-represented groups. Balanced and value-added analyses require that we proactively foster an inclusive approach to our work with clients, not just for our own employees, and a safe environment within which we all work.

General Approach to Conducting Audit Projects
In fulfilling the purpose of this RFP, we present below our general work plan to perform each of the tasks envisioned by the City of Vallejo. Corresponding to several of the tasks, we also provide examples of work products submitted to Snohomish County, Washington, for which we provide similar services envisioned by the City of Vallejo—e.g., conducting organization-wide risk assessments, developing annual audit plans, and executing the audit plan on behalf of and reporting to the County Council.

Citywide Risk Assessment
Beginning with Year 1 of the contract and every other year thereafter, we will prepare a citywide risk assessment, which will be the primary determinant of subsequent audit activity. The goal of the risk assessment process is to help ensure limited audit resources are deployed in a manner that fulfills the purpose of the City by (a) identifying inherent risks to the successful execution of City operations, programs, and services; and (b) differentiating between all the potential risks and areas of interest and ranking them by priority and potential impact. This process is intended to facilitate a deliberative approach to directing limited audit resources. While potential performance audit topics are wide-ranging, they often relate to the following:
• Operations, business processes, or organizational units that could benefit from an external review; • Opportunities where overall efficiency or effectiveness can be improved upon; • Core business functions that, if not carried out effectively, could impact the mission of a department or the ability of the County to meet various external/legal requirements; • Matters of concern to those responsible for management and governance, as well as to the public; • Areas where there may be increased potential for fraud, waste, or abuse.

To assess the relative priority and risk of each operational activity, we will prepare a citywide risk assessment model that focuses on comparisons, challenges, opportunities and priorities between the various activities. We will then measure risk through an analysis of various information sources on each operation with some

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information obtained directly from objective reporting of past and current performance, as well as other information we obtain through a professionally-based subjective analysis of current issues and trends affecting each area. Generally, the Citywide Risk Assessment will follow the general audit plan presented below:
• Review documents and information related to the City’s governance, including decisions of the City Council, executive reports, rules and regulations, budgetary documents and financial reports, prior audit reports and internal studies, key policies and procedures, organizational charts, strategic goals and objectives, performance indicators, customer or stakeholder surveys (if any), conflict of interest code and Code of Ethics, and miscellaneous background information. • Meet with City officials and management to obtain insights into agency operations and programs, as well as strengths, weaknesses, opportunities and challenges, and to identify an audit universe of each departments’ significant programs and activities. Discuss various risk factors that impact or threaten to impact their operations and those that should be included in the risk assessment, obtain an understanding of each of the departments’ programs and activities, and elicit input. • Identify (a) all departments and key organizational units, (b) their purpose/service, and (c) the resources/expenditures associated with each. Use this information to begin to develop the audit universe and the relative magnitude and scope of each organizational unit in terms of overall funding and spending and in terms of whether they provide services to the public or are internal service functions.
• Analyze available quantitative data and qualitative information from financial reports, budgets, dashboards, performance measures, and other statistics that provide insights into the trends experienced by and the performance of departments and programs. • Review prior audit reports and risk assessments, consultant reports and analyses, and other external/independent studies performed relating to the agency’s operations. Identify findings/problems identified in any prior reviews, and other fiscal, program or departmental audits and studies—and take note of prior findings or concerns and the corrective actions taken. This information will also assist in determining the areas or programs that have recently been reviewed and thus impact their priority or ranking.
• Identify key information systems and their functionality in facilitating core operations of the City. In doing so, identify data that could be useful for data extraction and data analytics. This will include determining how data analytics can be used to identify potentially high-risk audit areas. • Identify functions of the City that are outsourced to third-party service providers, and understand the agency’s approach to managing and overseeing such functions. • Identify revenue-generating functions of the City, including those for which the City depends on external service providers, private entities, or other governmental agencies. • Obtain information from management regarding workload trends, the allocation of staffing resources to manage existing or anticipated workloads, and impacts of perceived staffing shortages on operational

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outcomes. Identify requests for additional staffing resources, as well as the potential for enhancing operational efficiencies where the need for additional staffing resources has been identified. • Consider systems of internal control designed to mitigate inherent risks identified through the risk assessment.
• Obtain and review of the agency’s internal control policies and procedures, and conduct a high-level review to determine the extent to which they are up-to-date and contemporary, consistent with best practices, comprehensive, and are likely to address key risks. • Discuss key processes to obtain a broad understanding of how policies and procedures are implemented, the extent to which processes are automated or manual, the extent to which information is available for management and audit purposes, etc. • Obtain an understanding of how departments and activities assure that important internal controls, management oversight, and policies and procedures are followed at the departmental working levels.
• Consider evidence that provides insight regarding the extent to which management has taken steps to (a) identify inherent risks relevant to the operations for which they are responsible, (b) designed and implemented internal controls to mitigate those risks, (c) ensure staff are aware of required procedures, and (d) devised methods to monitor staff adherence to designed controls.
• Evaluate fraud risks. Our audit team will be vigilant to monitor emerging risks, to be on the lookout for potential risks, and to incorporate what we learn into our risk assessment model on a routine basis.

These efforts will include the following:
o During the Risk Assessment, as well as through audit engagements, it is quite common that during the course of interviews, observations, or data analysis that we will identify potential audit topics or high-risk areas that are outside the scope of the audit engagement itself, but which may inform decisions regarding future audits.
o Gather readily available information from a variety of departments that provide information on fiscal matters (e.g., annual budget and fiscal documentation, claims information, grant-related documentation, etc.), and we will compile the information in our risk assessment model. o Solicit input from City officials and management for input regarding the annual audit plan. The information we obtain will be incorporated into our risk assessment model on an ongoing basis.
o Work with representatives of the City Council to ensure open and ongoing communication such that we are able to identify important and emerging matters before the City Council, and to incorporate them into our ongoing monitoring and risk assessment efforts.

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o Gather information regarding the City’s information systems, gain an understanding regarding the types of reports and information that can be generated from the systems, and work with departments to run reports that could have value in identifying potential audit risks. • Identify methods employed by the City to set and maintain rates and fee schedules in a manner consistent with best practices. This will include evaluating rate-setting cycles, methods for monitoring actual cost recovery, and routine audits or evaluations of established rates. • In consultation with the City, consider the development of risk assessment surveys/questionnaires to solicit input from a wide range of management and other personnel and, potentially, members of the public.
• Develop and populate a risk matrix that will reflect departments, programs and activities, thereby achieving an entity-wide risk assessment model that focuses on comparisons between units and activities and accounts for a variety of risk factors. This will include rating and ranking departments, programs and activities based on identified risk criteria. • Create a risk profile for each Department identifying key auditable units; a high-level summary of core functions, responsibilities, magnitude, inherent risks, and associated factors; potential audit topics related to identified risks; and a heat map that illustrates the relative priority of each potential auditable unit. This will serve to provide an overall risk ranking that assists the City in prioritizing potential audit topics while also providing a clear rationale for the professional judgments made in deriving at the risk rankings score, and a sound basis for deliberations, audit planning, and audit resource allocation. • Utilizing the risk profiles, and in collaboration with agency management and the Board, propose a ranking of potential audit topics for consideration in an audit plan, and determine the priority areas viewed as the most important use of available audit resources.

See Appendix A for an example of a recent Universal Risk Assessment prepared for Snohomish County, Washington.

Preparation of the Annual Audit Work Plan
We will prepare an annual audit plan for review by the City Manager, appropriate City Council committee(s), City Attorney, and review and approval by the City Council. The audit plan will identify preliminary objectives of each audit to be performed, the schedule for each audit, and the estimated resources and costs for each audit.

In preparing the Annual Audit Plan, we propose to perform the following procedures:
• Review the citywide risk assessment (see above) and prior audit plans to identify the potential for new audit topics to add to the upcoming audit plan.
• Issue a letter/memorandum to City officials (e.g., elected officials, department executives, etc.—we will coordinate this with the City Council and City Manager) to solicit input for the upcoming audit plan. As priorities change, risks emerge and questions arise; this step is designed to notify key officials that the City Auditor is preparing the audit plan and is open to their input, to hear from them regarding what they believe will bring the most value.

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• Review key topics before the City Council, issues raised in the press, concerns of city management, or issues that are otherwise subjects of public inquiry.
• Consult with the City Attorney regarding matters of risk and importance.

Based on this, and particularly the results of the risk assessment required in Task 2, we will develop a draft audit plan. The audit plan will list each potential audit topic, along with a 1-page profile of the audit topic. This profile will include the proposed scope and objective, a high-level audit approach, the proposed budget, and the proposed schedule. See Appendix A for an example of a recent Annual Audit Plan prepared for Snohomish County, Washington, and adopted by the County Council.

Executing the Annual Audit Plan
Executing the Annual Audit Plan requires the selection of specific performance audits for completion during the calendar year. Many of our clients utilize a Task Order-based approach for specific audit engagements. Once a specific audit topic is selected from the Audit Plan, the associated scoping document will be converted to a Task Order through which our firm commits to complete the audit and address the audit objectives within specified schedule and cost parameters.

This serves as a useful mechanism to authorize the commencement of audit work, and to clearly specify the agreed-upon audit scope, objectives, schedule, and budget. Building on our decades of experience, our team has developed the following project management framework. While the specific approach taken on any given project will be tailored to the meet the specific objectives and goals of the assigned project, as well as on the unique context and needs of the client, this general approach will serve as a guide to any management and business analysis we perform.

Entrance Conference: We will schedule a kickoff meeting with the City Council Liaison, the purpose of which is to introduce key client and Consultant team members to one another, acquaint all participants with the purpose of and expectations for the project, describe team members’ roles and responsibilities, describe Project procedures, and summarize scope and schedule. At this meeting, we will address project logistics and assure a clear understanding of the communication and reporting protocols including identification of a liaison contact, establish communication and reporting channels, and discuss challenge/conflict resolution procedures.

Project Work Plan: We will commence project planning efforts through a variety of steps. First, we will request and review basic background information to allow us to more fully integrate our team into the subject’s (program, service, or department) environment. Upon reviewing initial information, we will schedule and conduct interviews with management and personnel at all levels, perform walk-throughs of key business processes and information systems, develop an understanding of the availability and condition of information necessary to meet project objectives, and request additional information based on our interviews and observations.

All of this allows us to efficiently and effectively develop an initial understanding of the operating environment, roles and responsibilities of key personnel, management and stakeholder concerns, and the condition and availability of information needed for our analysis.

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This will culminate in a Project Work Plan, which will include key objectives, requirements, constraints, Project Schedule (showing major tasks and deliverables), a breakdown of costs for the major tasks, a list of the project team members and their roles and responsibilities, communication protocols (internal and external), document control procedures, and other administrative procedures. We will coordinate a review of this evaluation plan with the City Council Liaison.

Fieldwork & Detailed Analysis: During this phase of a project, we will execute detailed tasks to accomplish the project objectives. We will consume the majority of hours and efforts in this phase, conducting in-depth data gathering and analyses. The steps executed in this phase will vary based on the project scope, objectives, and data availability and reliability. However, we will develop a detailed project methodology and will also maintain flexibility throughout this process, refining our approach based on what we learn during the planning phase, allowing our project team to reallocate resources as we obtain more information and gain greater insights into those areas deemed most important or complex and fewer in those with less impact or priority. Throughout this process, we will obtain input, provide feedback, and ensure a collaborative learning environment through which our team performs analyses, shares results, learns from our client’s input and perspective, and fosters dialogue with the goal of developing solutions collaboratively.

Quality Control: We incorporate into this phase a rigorous system of quality control to ensure all project work is timely, closely supervised, critically reviewed, accurate, and reliable. The procedures, observations, and results of the fieldwork and analyses performed during this phase will be documented and reviewed, and will contain evidence of due diligence, planning, and supervision. Work products are cross-referenced to underlying evidence and supporting documentation. All of this provides assurances to our clients that the facts upon which our conclusions are based are indeed accurate and reliable, and that our recommendations are well thought-out and get at the root cause of identified problems. This step demonstrates due professional care in the conduct of our work.

Assessment and Update: On-going, candid communication is the cornerstone of value-added, evidence- based consulting work. We ensure that our clients are kept abreast of our progress, milestone achievement, and issues as they arise—a “no surprises” project approach. Throughout the engagement, we will maintain ongoing and open communication with the City Council Liaison, stakeholders, and the dedicated points of contact to ensure open communication. This includes routine project-specific checkpoints at which our project leadership reassesses our team’s progress toward meeting the project’s objectives and delivering the project on time and on budget. It also includes the periodic status reporting.

As part of this effort, our Project Manager will provide brief updates of the team’s work activities completed within the week, the look-ahead activities, and the issues and actions that require our client’s attention, in a meeting/conference call with the City Council Liaison; frequency of these meetings and calls will be as directed by the agency.

Draft and Final Report: It is at this point when our team would draft a written report. When fieldwork is approximately 75 percent complete, we will begin to outline the key observations and findings, build the framework for the draft report, develop preliminary recommendations, and map out remaining steps needed to complete fieldwork and analyses.

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We will brief the City Council Liaison and key City representatives—including representatives of the City Manager, City Attorney, and City Council—of the preliminary findings at this time, obtain feedback and input, finalize fieldwork, and complete the initial draft report or key deliverable. The draft will include an executive summary, methodology, findings and conclusions, and recommendations. The report will undergo an internal quality control review during which all facts are cross-referenced to underlying evidence and supporting documentation. We will then submit the draft to department management for review and discussion. We will hold an exit conference with the City Council Liaison and key City representatives to discuss the draft results, conclusions, and recommendations. We will consider any additional information or concerns presented and make any appropriate amendments to our draft report. At this point, we will finalize the report, submit it to the City Council Liaison and other key representatives as deemed necessary.

For each audit engagement, we will also develop specific and detailed schedules mapping out key milestones relating to each of these steps, including estimated start and completion dates as well as estimated hours to complete. We will use these schedules to set client expectations, to monitor our team’s progress throughout the engagement, and to report on our progress to our clients through periodic project status reports.

These steps make up the general framework that we will use to deliver quality work on behalf of our clients.

See Appendix A for an example of a performance audit report submitted to a client for which we provide similar performance audit services.

Preparation of Quarterly Reports and Annual Status Report Periodic status reporting is standard operating procedure for our firm and with our clients. We will prepare and issue quarterly reports describing the status and progress toward audit completion, to be provided as information reports to the City Council and reviewed by the appropriate committee. Additionally, we will provide informal updates or briefings, as requested.

Our periodic status reports will focus on our performance with respect to each of the required task areas, as well as on the status of each engagement performed under Task 3. While we have our standard templates, and various status report models used with other clients, we will collaborate with the City to devise a format and structure of the status reports that meets the City’s needs. The status reports will include a narrative that describes an overview of our progress toward meeting key milestones, tasks performed during the reporting period, tasks to be performed during the next reporting period, preliminary observations or issues, challenges or barriers incurred, or other matters that may impact the project. In doing so, however, we will be cognizant of the public or confidential nature of the status reports and the subjects to be conveyed in the status reports. In addition to this narrative, the status reports will provide progress updates regarding task and project budgets and schedules.

We will also prepare and issue an annual report in the first quarter of each fiscal year on the status of recommendations made in completed audits, to be provided as an information report to the City Council and reviewed by the appropriate committee. The status of prior recommendations will be determined through standard follow-up efforts and inquiries with City departments. In many cases, results will be self-reported by City departments, with independent verification steps taken by our project team.

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Semi-Annual Follow-Up & Corrective Actions
Twice each year, we will run a focused follow-up cycle to verify that agreed recommendations were implemented and are operating as intended. We refresh the corrective-action register, prioritize items due or higher-risk, coordinate timelines with action owners, and request clear concise evidence. Our testing is focused on proof that corrective measures have been implemented and are effective mitigating the problem identified in previous audits.

Each cycle closes with a short memo suitable for Council materials—open/closed counts, aging, upcoming due dates, and the few items needing leadership attention. We summarize themes across audits, note residual risks, and recommend practical next steps (policy touch-ups, training, or monitoring tweaks). Work is issued under a task order with a not-to-exceed level of effort; any material re-testing or scope changes are cleared with the City in advance. The Engagement Manager runs the cycle; City owners provide evidence and confirm changes; leadership resolves blockers and signs off on closures.

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Fee Proposal
On the following pages we present our cost proposal in the Cost Proposal Table provided in the RFP. In this table, we identify the positions we anticipate will be assigned to work on each task, as well as the hourly rate for each. In addition, we would like to clarify the following as it relates to our proposal:
• Our hourly rates are fully-burdened and all-inclusive of all operating costs. We will work with the City regarding any travel expenses, and will comply with the City’s travel policy and any contract provisions related to travel costs.
• We do not charge for services before rendering services; our practice is to submit monthly invoices for time worked, minus an agreed-upon retention, or to establish deliverable-based progress payments (e.g., 20% upon delivery of the planning results, 30% upon delivery of a preliminary findings briefing, 30% upon delivery of the draft report, and 20% upon delivery of the final report).

We are open to negotiating payment terms and are often amenable to our clients’ preferences. • We are not proposing any subconsultants at this time. If we find a need to incorporate a subject matter expert into a project team (if, for instance, we do not have the expertise required for a selected audit), we will work with the City to ensure approval of the subconsultant. It is our practice to limit mark-up percentages on subcontractors to 5% to cover our administrative expenses.

If the City finds that the assumptions presented in this proposal, upon which this cost estimate is based, are not consistent with its expectations, we would be open to modifying our approach and/or cost proposal to reflect the needs of the City.

Proposed Cost Structure

Classification Hourly Rate Project Functions
Partner $290 Provide overall technical expertise and guidance on the project, help draft and edit report and perform quality control.

Director $245 Oversee project activities including participating in planning and visioning meetings, report review, providing quality assurance and secondary review of work products.

Manager $210
Lead day-to-day project activities and guide lower-level staff in completing assigned tasks. Conduct complex analyses, coordinate meetings, draft deliverables, and provide initial review of work products.

Managing Senior
Consultant $185
Lead day-to-day project activities and guide lower-level staff in completing assigned tasks. Assist project managers in conducting complex analyses, coordinate meetings, and provide initial review of work products.

Senior Consultant $160
With guidance from directors and managers, senior and associate consultants conduct on-site interviews, perform functional and operational analyses, and lead staff consultants.

Associate Consultants $140 With guidance, perform detailed data mining and testing, conduct benchmarking research, and provide initial analyses on task areas.

Staff Consultant $120 Entry level to experienced consultant. Conducts all types of fieldwork and analysis under supervision.

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Appendix A. Additional Information—Sample Reports
On the following pages, we provide four sample reports intended to illustrate the types of deliverables provided to public sector clients under similar internal/performance audit arrangements. • First, we provide an example of a Countywide Risk Assessment completed on behalf of the County Council of Snohomish County, Washington. This report can also be found here:
https://snohomish.legistar.com/View.ashx?M=F&ID=10434872&GUID=C1E50F7A-9AA9-4DE6- BDC1-2B45B86F7757.
• Second, we provide an example of an Annual Audit Plan prepared on behalf of the County Council of Snohomish County, which was informed by the above referenced Countywide Risk Assessment.

This Audit Plan can be found here:
https://snohomish.legistar.com/View.ashx?M=F&ID=10434874&GUID=D16C50D9-980C-4416- 9A0B-F3378155962C.
• Third, we provide an audit report completed on behalf of Snohomish County, Washington, presenting the results of a performance audit of the County’s Human Resources Department. This report can be found at: https://snohomishcountywa.gov/Archive.aspx?ADID=6150. • Fourth, we provide a report submitted to the Colorado Office of the State Auditor, presenting the results of a performance audit of the State’s Treasury function. This report can be found at:
https://leg.colorado.gov/audits/colorado-department-treasury%E2%80%99s-investment- management.

TECHNICAL PROPOSAL

FOR AUDIT SERVICES FOR THE
City of Vallejo
Submitted by
Macias Gini & O’Connell LLP

Kyle O’Rourke, MPA, CIA, CRMA, CGAP
Partner
+1 (818) 436-4196
[email protected]

September 23, 2025 State and Local
Government
Agile support from dedicated State and
Local Government consultants

© Macias Gini & O’Connell LLP | i

The City of Vallejo

A. Transmittal Letter with Executive Summary ............................................. 2 B. Personnel, qualifications, & references ...................................................... 5 C. Approach, scope, & timeline ....................................................................... 21 D. Fee proposal ................................................................................................ 27 Appendix: Resumes ......................................................................................... 28

OUR COMMITMENT TO SERVE THE CITY OF VALLEJO
© Macias Gini & O’Connell LLP | 2
A. Transmittal Letter with Executive Summary
The letter should address the Proposer's willingness and commitment, if selected, to provide the services, and why the Proposer believes it should be selected. The letter should be signed by the responsible person who will be assigned to the City's account.

September 23, 2025

The City Manager and City Council
The City of Vallejo, California
555 Santa Clara Street
Vallejo, CA 94590

Dear Council Members:

On behalf of Macias Gini & O’Connell LLP (MGO, a Limited Liability Partnership), I am pleased to present our proposal to City of Vallejo (the City) for audit and risk assessment services. Below is an overview of why MGO is among the best qualified to serve the City, and how you will benefit from MGO’s approach and experience.

We are deeply familiar with the exact work the City has outlined in its RFP. We worked within and led government internal audit teams, built internal audit functions from the ground up, and provided a wide range of audit and consulting services to support diverse initiatives. Similarly, our team members have 50+ years of experience leading government finance and administrative service positions in the Bay Area.

We also have extensive government consulting and management experience – which enable us to be highly efficient and effective in delivering professional services to cities like yours. Our proposal outlines our approach and qualifications for this effort.

Knowledge & experience
MGO has been built on a foundation of service to state and local government entities. Our work has included hundreds of internal audits executed in accordance with IIA standards, performance audits in accordance with Government Auditing Standards, and consulting engagements conducted under AICPA consulting standards. Further, our team offers:

• Proven ability to conduct audits of large governmental organizations, in areas such as the accounting and finance functions, human resources, information technology, grants management, financial sustainability, ridership, safety, security, and much more. • Broad and deep experience supporting government entities by providing consulting and internal audit services. Our track record includes supporting many of the Country’s largest government entities on similar projects.

The Right Perspective
MGO will provide the City with a cross-
functional team of consultants who can
evaluate your current capabilities and
provide a wide array of internal audit
services to help you enhance
governance, controls, and operations.

OUR COMMITMENT TO SERVE THE CITY OF VALLEJO

© Macias Gini & O’Connell LLP | 3
• A team of more than 125 full-time professionals who are dedicated to serving governmental organizations and have a comprehensive understanding of government finance and accounting policies, procedures, and processes.
• Familiarity, perspectives and insights gained through our previous work on similar engagements, including several who have provided reference letters for this proposal effort.

Our team
MGO brings a unique team to serve its consulting clients. We have several former government leaders – including a former transit CFO, a large city Finance Director, an Auditor General, a former City Auditor, and a former Chief Internal Audit Director for a large public enterprise, among others. We also have significant experience in providing these serves within the framework of a professional services organization. For example, your proposed Engagement Partner, Kyle O’Rourke, is a former principal with a top 10 firm and has led dozens of organizational, operational, and financial assessments of government organizations.

Our years of experience and diverse backgrounds create exceptional client experiences and valuable results, and we leverage our collective knowledge to dive deeply into the challenges our clients face, supporting them in areas ranging from internal audit and financial management to strategy, staffing, operations, information technology, and more.

Our Track Record
MGO has a proven track record as a leader in providing professional services to the public sector generally and to the municipal governments of California in particular. Since our inception in 1987, MGO has never had an audit failure. This is a testament to our commitment to quality and to our focus on earning and maintaining the confidence of our clients and the public. In every engagement, our priority is to provide valuable observations, best practices, and practical strategies that improve compliance, support accurate and efficient financial reporting, enhance internal controls, and promote operating efficiency and effectiveness for organizations like the City.

Our Cost Integrity
MGO's fee philosophy is to foster long-term client relationships by offering fair and competitive pricing. We always strive to provide the highest level of quality in the performance of our work, coupled with personal attention and responsiveness to our clients’ service needs. As a demonstration of our desire to forge a meaningful long-term relationship with the City, we are offering a 25% discount on our standard fees.

As Partner and the designated representative for MGO, I, Kyle O'Rourke, have authority to act, contractually obligate, and negotiate on behalf of the firm. If you need clarification of any aspect of our capabilities or wish to discuss our proposal further, please do not hesitate to contact me at +1 (818) -436-4196 or [email protected]. We look forward to serving as the City business partner and trusted advisor.

Sincerely yours,

Kyle O'Rourke, MPA, CIA, CRMA, CGAP
Partner

OUR COMMITMENT TO SERVE THE CITY OF VALLEJO

© Macias Gini & O’Connell LLP | 4
Executive summary
We want our clients to thrive. That’s why at the core of everything we do is this simple promise: human care comes first. With connection and trust established with our clients — and proper support for our team members — we provide holistic financial guidance to shape long-term success for all.

You are why we exist, and it’s an honor and a privilege to help steward you toward a promising future. The table below details our understanding of your needs and objectives and highlights the capabilities and resources we’ll provide to support your success.

Our Understanding of Your Needs How We Can Help
The City is seeking support from experienced
practitioners who have a deep understanding of
government operations and can execute efficient, value- driven financial, compliance, operational, investigative, or other performance audits.

MGO's team is comprised of more than 500 practitioners
nationwide - some 125 of whom are dedicated to serving
state and local government entities. Leveraging decades of experience in government audit, our State and Local
Government (SLG) team members deliver tailored
solutions to address virtually any business, compliance, or operational need.

The City requires independence and objectivity from its professional services firm, as well as unwavering
professional ethics and a focus on continuous
improvement.

Because the City 's objectives and responsibilities are both broad and nuanced, the selected firm must
demonstrate a commitment to communication and
collaboration and a willingness to go the extra mile.

Since our founding, we’ve understood that true success
in our industry is measured in relationships, driven by trust and sustained through integrity and the highest
standards of professionalism. We also recognize that
trust is earned with hard work and honored
commitments.

When you work with MGO, you’ll connect with a
dedicated, collaborative project team of experienced
practitioners who combine deep industry and technical
knowledge with personalized attention, a focus on
human care, and a willingness to go beyond, every
day. We collectively possess hundreds of years of
experience serving governments and have an extensive
understanding of complex challenges facing large cities.

The City expects audits that incorporate objective and
systematic examination of evidence, to include
budget documents, financial reports, policies and
procedures, and the municipal code, and comprehensive
reports that provide an independent assessment of the
efficacy and management of a program or function
against objective criteria.

Our SLG practitioners are broadly skilled in executing
efficient, objective risk assessments and audits in a wide range of functional areas and can offer practical
strategies and real-world insights to enhance operations, support compliance, and improve performance – within
and across each department or auditee.

DETAILING OUR CAPABILITIES AND EXPERIENCE

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B. Personnel, qualifications, & references
Names, qualifications, proposed roles, office location(s), and availability of the principal personnel who would be assigned to perform the services described in this RFP must be provided. The primary person(s) who would be responsible for managing the relationship with the City. The Firm shall state its qualifications and provide the names and contact information for individuals from a minimum of three (3) municipal entities for which the Firm has provided services, as relevant to this RFP, who would be willing to serve as references for the Firm and the individuals who would provide services to the City. The City reserves the right to contact any organizations or individuals listed.

Offering the extensive resources of our firm
To best achieve the City’s objectives, we have selected a core team of experienced auditors, shown below.

Subject matter advisors will be enlisted to provide support, perspectives, and valuable strategies, as needed.

Qualifications of your proposed engagement team
The team selected to serve the City and perform the services described in the RFP represents a strong, balanced blend of the talent, professional skills, and industry experience that are most critical to working effectively with you. Our engagement team possesses:

• Broad government industry experience.
• Deep internal audit and performance audit experience, including standing up government audit functions and leading internal audit activities, as well as demonstrable capabilities in diverse types of audit and consulting engagements.
• 50+ years of experience leading finance and administrative service functions for Bay Area governments, including the City of San Jose, MTC, and East Bay Regional Park District. • Significant experience interacting with and reporting directly to the Board or governing body.

DETAILING OUR CAPABILITIES AND EXPERIENCE

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• Specific experience related to program compliance audits; GAGAS financial, operational, performance audits; review of internal controls, gap analyses, process improvement assessments and subsequent on- going monitoring, providing technical guidance, and serving as a liaison between departments, overall entities, and their governing bodies.
• Requisite relevant continuing professional education.

Team roles and responsibilities
For each project we deliver, we assign a project team with subject matter knowledge needed to achieve our clients’ engagement objectives. In doing so, we leverage our firm’s deep bench of more than 500 accounting and business professionals.

The project team we have assigned to the City's engagement will include practitioners with direct experience and in-depth knowledge of the audit areas in scope, backed by the specialized, nationwide resources of our firm. Project team members will have the following roles and responsibilities:

• The engagement partner is responsible for executing the contract and engagement letter, finalizing the scope of work, overseeing the execution of the project, supervising the project manager, and reviewing all project deliverables. • The quality control partner is responsible for reviewing all deliverables to confirm compliance with professional standards, as well as MGO standards. • The project manager is responsible for overseeing the day-to-day activities of the project, the team members, and performing supervisory review of all working papers and deliverables.
• Managers, staff, and subject matter advisors are assigned to each engagement depending on the scope and size of each engagement.

Our goal is to assign a team that collectively possesses the knowledge, experience, and subject matter knowledge necessary to achieve the goals and objectives of each engagement. Detailed resumes for each of your core team members are included in the Appendix.

Office(s) to serve the City
The City will be served by professionals from the MGO offices shown below.

Office: 2121 North California Boulevard, Suite 750
Walnut Creek, CA 94596
+1 (925) 274-0190
155 N Wacker Drive, Suite 4200
Chicago, IL 60606
+1 (312) 488-8294

DETAILING OUR CAPABILITIES AND EXPERIENCE

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Offering a complete range of assistive services
Assurance and Attest Services Governance, Risk, and
Compliance Management Consulting
• Audits and Examinations
• Performance Audits
• Agreed-Upon Procedures
• Cost Allocation
• Internal Audit
• Risk Assessment
• Construction Audit
• Fraud & Forensics
• Revenue Optimization
• Operational Alignment Analysis
• Policies and Procedures
Firm qualifications
Founded in 1987, in Sacramento, California,
Macias Gini & O’Connell LLP (MGO) is one of the
fastest growing certified public accounting firms
in the United States. We combine deep industry
experience with well-established accounting
and advisory solutions to deliver tangible
results. Our clients range from global aerospace
and technology leaders to innovative startups
and nonprofit organizations — from the largest
government entities in the country, to the
biggest names in entertainment.

Our state and local government industry
practice is one of the largest in the country,
offering significant resources to serve this highly complex sector. As the professional service provider for numerous public agencies throughout the country, we take our commitment to “good government” seriously and work hard to establish collaborative relationships with our clients, deliver valuable insights and outcomes in every engagement, and implement innovative practices to improve service delivery.

Our experience encompasses working with cities, counties, state agencies, special districts, private firms, and the world’s largest public pension system. In addition to general-purpose units of government, we serve districts, authorities, boards, and finance divisions.

At MGO, we’re committed to serving our clients and the profession through active engagement with national standards setters. Our participation in these groups helps us stay ahead of regulatory changes, keep our clients informed, and provide critical guidance and counsel on technical matters and other emerging issues.

MGO today
35+
years of
experience
500+
professionals
who are ready to
serve
36 languages
spoken natively
13 U.S. cities
with offices
55 partners

DETAILING OUR CAPABILITIES AND EXPERIENCE

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Our experience with local government units
Our firm’s state and local government industry practice offers unsurpassed resources in serving this complex sector, with professionals dedicated to year-round service. When it comes to auditing large, complex agencies, MGO’s experience is among the best.

Our firm has worked extensively with public agency clients on operational, performance, compliance, and financial engagements. Our clients choose us because we combine the skills, attentiveness, and caring of a local firm with the breadth of services you’d expect from a national or international firm.

At MGO, we strive to be different from other firms. Different in how we treat our clients, different in how we work with each other, and different in the results we achieve. Exceeding our clients’ expectations for timely communications is just one of the ways we embody that difference each day.

The cities and counties shown below are among the many local governments we’ve proudly served.

City Governments - California
• Albany
• Antioch
• Arvin
• Barstow
• Beaumont
• Berkeley
• Chico
• Chowchilla
• Compton
• Covina
• Cupertino
• Elk Grove
• Encinitas
• Fort Bragg
• Foster City
• Fremont
• Fresno
• Galt
• Glendora
• Hawaiian Gardens
• Hesperia
• Huntington Beach
• Inglewood
• Irvine
• La Habra
• Lake Forest
• La Mesa
• La Mirada
• Lodi
• Long Beach
• Los Altos
• Los Angeles
• Modesto
• Monrovia
• Moorpark
• Morgan Hill
• Mountain View
• Needles
• Oakland
• Palo Alto
• Pasadena
• Pleasant Hill
• Pleasanton
• Riverside
• Rohnert Park
• Rolling Hills Estates
• Roseville
• Sacramento
• San Carlos
• San Diego
• San Francisco
• San José
• Santa Ana
• Santa Barbara
• Santa Monica
• Santa Rosa
• Sebastopol
• Simi Valley
• South El Monte
• Stockton
• Sunnyvale
• Temple City
• Tustin
• Union City
• Vacaville
• Ventura
• Vernon
• West Sacramento
• Winters
• Woodland
• Yorba Linda

County Governments - California
• Alameda
• Butte
• Contra Costa
• El Dorado
• Fresno
• Glenn
• Los Angeles
• Merced
• Napa
• Orange
• Placer
• Riverside
• Sacramento
• San Bernardino
• San Diego
• San Francisco
• San Mateo
• Santa Clara
• Sonoma
• Stanislaus
• Tulare
• Tuolumne
• Ventura
• Yolo

DETAILING OUR CAPABILITIES AND EXPERIENCE

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In addition to MGO’s experience outlined above, it is important to note that our advisory team has deep experience serving local governments nationwide. The following is a representative list of government served by your project team.

Advisory Team Experience
• Arizona Office of the Auditor
General
• Arizona Department of
Administration
• Chicago Housing Authority
• Chicago Public Schools
• City Colleges of Chicago
• City of Charlotte (NC)
• City of Cleveland (OH)
• City of Dallas (TX)
• City and County of Denver (CO)
• City of Fremont (CA)
• City of Pasadena (CA)
• City of South Miami (FL)
• Fairfax County Public Schools
• Illinois Toll Highway Authority
• New Jersey School
Development Authority
• Lake County (IL)
• New York City Board of
Education Retirement System
• Orange County (CA)
• U.S. Department of Defense
Office of the Auditor General
• U.S. International
Development Finance
Corporation
• U.S. Railroad Retirement
Board
• U.S. Department of Health and
Human Services

Our work in internal audit and related service areas
The City's service expectations will likely span a wide range of operational areas, and MGO has experienced practitioners with the backgrounds and skillsets needed to achieve virtually any audit objective.

MGO’s State and Local Government Practice has significant experience in providing auditing services as well as a range of consulting services to state and local governments. With more than 35 years of experience in financial and single audit, internal audit, performance audit, agreed-upon procedures engagements, and consulting services, our team can execute projects efficiently and offer the City a fresh perspective to support the internal audit function in driving value organization-wide.

Internal audits
MGO provides internal audit services to public sector clients via both co-sourcing and outsourcing arrangements. We are capable of performing work across the full lifecycle of the internal audit process – from risk assessment, audit execution, and board reporting to monitoring of corrective actions. Most of our time is spent executing the internal audit activities that make up our clients’ annual audit plans. Given the size of our firm and our deep industry specialization, we are able to tackle audits activities in traditional audit areas such as finance and accounting as well as in key areas of risk: human capital, cybersecurity, fiscal resilience, and more.

DETAILING OUR CAPABILITIES AND EXPERIENCE

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The following list of audit areas we’re adept in demonstrates the breadth of our firm’s experience, as does the list of recent engagements we’ve included on the next page.

Our Internal Audit Capabilities
Accounting & Finance:
• Billing & Accounts Receivable
• Budgeting & Financial Planning
• Employee Expenses
• Inventory & Materials Management
• Payroll
• Procurement & Payables

Grant Management & Regulatory Compliance:
• Regulatory Compliance
• Pre-Award Cost Review
• Subrecipient Monitoring

Information Technology:
• Cybersecurity Assessment (e.g., NIST)
• Data Privacy
• Disaster Recover and Business Continuity
• Information Technology General Controls
• Information Technology Governance
• Software Development Lifecycle

Fraud & Forensics:
• Fraud Risk Assessment
• Fraud Investigations
• Ethics Hotline Monitoring
Human Capital:
• Recruitment
• Employee Retention
• Succession Planning

Procurement & Vendor Management:
• Procurement Policy Audit
• Vendor Management
• Contract Management
• Contract Close-out

Operational:
• Business Process Review
• Customer Service & Call Center
• Environmental Health & Safety
• Performance Audit
• Supply Chain

Construction Audit
• Construction Contract
• Construction Project Controls
• Contract Close-Out

Examples of recent internal audit and performance audit engagements include:

Client Audit Title/Topic
City and County of San Francisco* GO Bond for Housing
City and County of San Francisco* Community Benefit Districts City of Phoenix (AZ) Housing Choice Voucher Program
County of Orange* Procurement Governance, Waste & Recycling Vendors, Auditor Controller’s Office, Tax Redemption*
Santa Clara Valley Transportation Authority Investment Program Controls, Succession Planning, Hire to Retire, Unfunded Mandates, Payroll Process,
Absenteeism Policy*
Metropolitan Transportation Commission Fiscal Sustainability

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Client Audit Title/Topic
Santa Clara Valley Water District Office of Emergency Services SamTrans Worker’s Compensation
City of Portland Oregon Grant Management
County of San Mateo Building fees
WA Office of Financial Management Recording Fee Compliance OR Department of Administrative Services Operational Assessment of the Department of Forestry *Non-exhaustive list of projects for named client

Agreed-upon procedures engagements
Under an agreed-upon procedures (AUP) engagement, an auditor performs specific procedures on a subject matter or an assertion and reports the findings without providing an opinion or a conclusion on it. The specified parties to the engagement agree upon and are responsible for the sufficiency of the procedures for their purposes. The specified parties are the intended users to whom use of the report is limited. AUPs are performed under the AICPA’s Statement on Standards for Attestation Engagements and can be performed under GAGAS.

MGO has conducted numerous AUP engagements for a variety of subject matters and management and contractor assertions. We assist clients in drafting the procedures to confirm the procedures are feasible, will answer the objectives, and will provide results that allow management to appropriately address findings through the development and/or monitoring of corrective action plans.

In the following pages, we highlight our service capabilities, demonstrating that we can conduct audit activities of various types (for example, internal audit activity, consulting study/assessment, performance audit, etc.) and across many subject matters – from IT risk and cybersecurity to fraud and forensics and management advisory. An overview of our capabilities in each area listed below is included.

• Internal Audit
• Agreed Upon Procedures
• Performance Audits
• Compliance Audits
• Fraud and Forensics
• Construction Audit
• Information Technology and Cybersecurity
• Management Advisory

Internal audit
MGO provides co-sourced and outsourced internal audit services to public sector clients, performing work across the full lifecycle of the internal audit process – from risk assessment, audit execution, and board reporting, to monitoring of corrective actions. Most of our time is spent executing internal audit activities – the projects that make up and auditor’s annual plan. Given the size of our firm and our deep industry

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specialization, we are able to support a wide range of activities, including both traditional audit areas such as finance and accounting, and key areas of risk in today’s governance landscape, such as human capital management, cybersecurity, and organizational contract compliance.

Overall, the goal is to provide objective and independent assurance to the governing body, improving the efficiency and effectiveness of operations, and supporting thorough, effective, and sustainable compliance efforts. The case study below describes a recent internal audit project.

Large Transportation Agency – Annual Risk Assessment & Audit Plan Our client’s need
MGO acts as the outsourced Auditor General function on behalf of a large transportation agency. On an annual basis, we conduct an internal risk assessment and ultimately develop the annual audit plan through the risk assessment process.

MGO’s solutions
MGO performs multiple tasks to understand the population of risk the organization faces, the likelihood of the risk events occurring, the impact should a risk event take place, and the overall risk scoring.

To identify the risk population, MGO conducted a survey of Board Members, executive leaders, and management. Armed with the survey results, MGO facilitated multiple risk brainstorming sessions with the AG team, client management, executive management, and the Governance & Audit Committee. After considering all input, the MGO team developed a heatmap and risk priority list, form which the annual audit plan was developed.

Outcomes achieved
The risk assessment report and audit plan were presented to the Governance & Audit Committee for approval and ultimately to the Board. Since then, the MGO team has worked to deliver each project and add value along the way. Note that MGO has performed 3 risk assessments on behalf of this client.

Agreed-upon procedures engagements
Under an agreed-upon procedures (AUP) engagement, an auditor performs specific procedures in a given subject matter area or on an assertion and reports their findings without providing an opinion or a conclusion. The specified parties to the engagement agree upon and are responsible for the sufficiency of the procedures for their purposes and are the intended users to whom use of the report is limited. AUPs are performed under the AICPA’s Statement on Standards for Attestation Engagements and can be performed under GAGAS.

MGO has conducted numerous AUP engagements in a variety of subject matter areas and with respect to a wide range of management and contractor assertions. We assist clients in drafting the procedures to be performed and confirming that those procedures are feasible, will answer the engagement's stated objectives, and will provide results that will support management in appropriately addressing identified concerns through the development, implementation and monitoring of corrective action plans.

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Performance audits
Performance audits provide objective analysis, findings, and conclusions to support those charged with governance and oversight in improving performance and operations, reducing costs, facilitating decision making, leading corrective action, and contributing to public accountability, among other goals. MGO conducts performance audits under Generally Accepted Government Auditing Standards (GAGAS). Key performance objectives include operating efficiency and effectiveness, developing and supporting implementation of strong internal controls, and supporting compliance.

The following example projects demonstrate our capabilities in performance audits for government entities.

Large County Government – Auditor Controller
Our client’s need
Our client needed to do an internal risk assessment of the department itself.

Following recent turnover and in preparation for additional anticipated changes, including a new enterprise resource planning system, leadership felt it was an opportune time to evaluate potential risks within the department and its business processes.

MGO’s solutions
We conducted interviews with eight key leaders in the department to understand roles, responsibilities, and risks for each role. We analyzed recent employee survey results around relevant process and satisfaction indicators. We spoke with their vendors and looked at their project implementation and change management plans.

Lastly, we evaluated documented policies, processes, and procedures for potential gaps per best practice guidance.

Outcomes achieved
We created a comprehensive risk matrix for the department to consider as they transition people and systems. As a result of our work, the department is better positioned for long-term strategic change management and can leverage critical risk information and potential mitigants as it heads into a very important period in its business operations.

Consolidated City/County Government – GO Bond
Our client’s need
A large, consolidated city/county government sought to verify allowability of expenditures made with Affordable Housing General Obligation Bond funds.

Bond-specific, City-specific, and state and federal guidelines all applied to a litany of funded projects.

MGO’s solutions
We create a matrix to map allowability against all applicable laws and guidance. We then used that matrix to conduct sample testing and confirm that the entity’s expenditures presented no allowability issues for the period of testing.

Outcomes achieved
As a result of our efforts, residents were assured that project spending was allowable and in accordance with the legislative intent and law. Public trust was maintained, which facilitated future bond projects, and stakeholders gained confidence in the internal controls environment.

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Compliance audits
MGO’s compliance audit services are designed to ensure that organizations meet regulatory, contractual, and internal policy requirements. Our team conducts thorough audits that assess adherence to federal, state, and local regulations, with a strong emphasis on functional areas of common concern:

• Grants management and subrecipient monitoring
• Procurement and contracting
• Payroll, benefits, and timekeeping
• Environmental and safety compliance
• Ethics and conflicts of interest
• HIPAA and data privacy
• Public safety and law enforcement
• Financial reporting and budgeting
• IT and data security
• Affordable housing a community development

For a large municipality like the City, the value of comprehensive compliance audit services cannot be overstated. the City's leaders need evidence-driven insights and forward-thinking strategies to manage public resources responsibly, uphold regulatory obligations, and deliver services with integrity and efficiency. By identifying gaps in internal controls, ensuring proper use of grant funds, monitoring subrecipients, and verifying adherence to procurement, payroll, and ethical standards, MGO's compliance audits help safeguard public trust and reduce the risk of financial loss or reputational damage.

The following example demonstrates our deep familiarity with government entities’ compliance obligations.

Contract Compliance Monitoring
Our client’s need
A large City Auditor Department requested a contract monitoring audit to assess the City’s Housing Department’s oversight of the vendor that administers the Housing Choice Voucher (HCV) Program.

MGO’s solutions
We conducted a comprehensive risk assessment, including analysis of fraud risks, to inform our audit objectives and program. We also participated in the Housing’s quarterly review process with its vendor during onsite fieldwork and conducted SEMAP indicator and financial reporting testing to ensure vendor compliance with its contract and assess Housing’s monitoring and oversight of the vendor and program.

Outcomes
achieved
We delivered a detailed report outlining areas for improved oversight and documentation of the monitoring that is conducted by Housing, including setting procedures around and documenting sample selection as part of Housing’s quality control process. We also provided the City with our risk assessment and all relevant workpapers for their reference and future use.

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Fraud and forensics
At MGO, we offer comprehensive fraud and forensic investigation services to help organizations uncover, investigate, and mitigate financial misconduct, regulatory violations, and other instances of fraud, waste and abuse. Our capabilities include conducting fraud risk assessments, investigating fraud schemes, evaluating internal controls aimed at detecting and preventing fraud, and implementing ethics/fraud hotlines.

The case study shown below explores our past work on fraud prevention and investigatory projects for government agencies.

Improving Internal Controls and Fraud Risk Management for a City Transit Authority Our client’s need
MGO, as the administrator of a client’s whistleblower hotline, created a detailed review process for managing complainant concerns. The hotline received a complaint related to payroll adjustments. Specifically, the complainant indicated that there had been an unusual volume of requests for off-cycle payroll adjustments.

There were concerns that: 1) timekeepers were not accurately reporting time; 2) timekeepers were making adjustments after relevant payroll deadlines; 3) adjustments were not approved by the appropriate authority; and 4) adjustments were not appropriately justified with supporting documentation.

MGO’s solutions
MGO launched an investigation to determine whether payroll adjustments were appropriately approved or denied and supported by proper documentation. As part of our investigation, we reviewed the organization's Payroll Procedures Manual, discussed proper procedures with functional leaders, examined payroll records, and benchmarked off-cycle related protocols at other entities.

Outcomes achieved
After a thorough assessment, our team determined that while process documentation called for submission of time summaries to serve as justification for all off-cycle adjustments, employees did not always provide sufficient information.

Additionally, the team found Payroll adjustments were not always reviewed by the appropriate authority within payroll. To that end, the position title of the data entry person, the reviewer, and the approver of off-cycle requests was not made clear on the approval form.

Lastly, the team found that timekeepers were late submitting documentation related to time entries and were requesting off-cycle checks because: 1) Employees were making last minute requests to correct hours; 2) timekeepers were receiving supporting documentation after relevant payroll deadlines; and 3) timekeepers had a backlog of hardcopy paperwork that was accidentally misplaced or routed late.

To address these issues, we recommended that team members adhere to the Payroll Procedures Manual and require completion of off-cycle request forms as well as the inclusion of time summaries for all off-cycle adjustment requests. We made additional recommendations to improve segregation of duties and internal controls.

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Construction audit
MGO provides strategic oversight throughout the project lifecycle, focusing on cost validation, risk mitigation, and contract compliance. Our team has extensive experience conducting construction audit projects and even projects associated with capital budget management. Example project types include:

• Pre-award audit
• Contract close-out audits
• Construction project monitoring
• Internal control evaluations
• Construction fraud risk assessments

The following case studies highlight our experience with government construction audits and the complexities of large facilities development.

Large Transportation Organization – Construction Contract Audit Our client’s need
The Transit Authority needed to ensure that construction invoices were being properly reviewed and managed. Specifically, they wanted to confirm that invoices complied with contract terms, were free of mathematical errors, and included all necessary supporting documentation. This review was essential to safeguard public funds, improve internal controls, and maintain transparency in the management of large- scale infrastructure projects.

MGO’s solutions
To support the Transit Authority’s oversight efforts, we conducted ongoing reviews of both current and past construction invoices. Our work focused on three key areas:
• Contract Compliance: We verified adherence to terms such as billing rates, indirect cost limits, prevailing wage requirements, and Buy America Build America provisions.
• Mathematical Accuracy: We recalculated invoice totals to confirm the accuracy of charges.
• Supporting Documentation: We ensured each invoice was backed by appropriate records, including timesheets, subcontractor invoices, and approved expense reports.

These reviews helped the Authority strengthen its internal controls and improve the reliability of its invoice approval process.

Outcomes
achieved
We delivered a detailed observation report that highlighted key areas where construction invoices did not meet expectations. These included:
• Noncompliance with contract terms, such as billing limits and regulatory requirements.
• Mathematical errors in invoice calculations.
• Missing or insufficient documentation to support charges.

Our findings and recommendations provided the Transit Authority with clear focus areas for improving its internal invoice review process. This has helped strengthen oversight, reduce financial risk, and ensure greater accountability in future project payments.

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Large Airport Authority – Construction Contract Audit
Our client’s need
A large airport authority sought assurance that federally reimbursed expenditures related to its new terminal construction project were fully compliant with applicable federal requirements. With funding provided through grants issued by the Federal Aviation Administration (FAA), The airport authority needed to ensure that all costs submitted for reimbursement adhered to strict federal guidelines.

To support this goal, the airport authority engaged our team to:
• Evaluate the airport’s federal grant reimbursement process and identify key billing codes used to trace reimbursed expenditures.
• Develop a working knowledge of federal compliance areas, including Certified Payroll, Buy America Build America (BABA) provisions, and FAA-specific grant conditions.
• Identify potential audit focus areas based on Office of Inspector General (OIG) priorities.
• Design an Agreed-Upon Procedures (AUP) framework to guide the review of past and future invoices for compliance with these federal requirements.

MGO’s solutions
Our team began by conducting in-depth research into the federal regulations governing airport construction projects, with a focus on Certified Payroll, BABA, OIG audit criteria, and FAA grant compliance. This foundational understanding informed the development of a tailored AUP, which would serve as the basis for reviewing invoices submitted for federal reimbursement from July 2024 onward.

In addition to performing invoice reviews, we provided ongoing consulting support to the authority’s project management firm and prime contractor. This included training and advisory services to help ensure that all stakeholders understood and adhered to federal compliance standards throughout the life of the project.

Outcomes achieved
Using the AUP, we initiated a structured review of both historical and current invoices to assess compliance with federal requirements. Our team provides quarterly reports summarizing any observations or issues identified, along with recommendations for corrective action. At the end of each fiscal year, we compile an annual report offering a comprehensive overview of compliance performance and trends.

This ongoing audit and advisory support has helped the authority strengthen its internal controls, reduce compliance risk, and maintain eligibility for continued federal funding.

Management advisory and consulting
MGO’s management advisory and transformational consulting services help governments and their agencies unlock value, optimize performance, and navigate complex change with confidence. Our advisory team partners with clients to conduct operational assessments, evaluate use of technology and digital maturity, identify performance and effectiveness gaps, and implement strategic improvements across core business

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functions. We focus on organizational restructuring, business analytics, revenue optimization, and supply chain transformation, offering data-driven insights and actionable solutions that drive measurable results.

Through our tailored consulting services, we support clients undergoing significant change—whether it's digital transformation, policy and procedure overhauls, or enterprise-wide modernization. We help align people, processes, and technology to ensure sustainable growth and resilience. By combining deep industry knowledge with advanced analytics and a deep understanding of change management processes, MGO empowers government organizations to better serve their missions and their constituents in a rapidly evolving environment.

The projects detailed below highlight our team’s capabilities.

Large Transportation Commission - Fiscal Study
Our client’s need
Our team was engaged to perform an independent, third-party review of projected operating deficits for five transit operators over a five-year period. The goal was to inform the sizing, messaging, and design of a potential regional sales tax measure. In addition, we were asked to propose fair-share contribution methodologies that could guide stakeholder discussions around funding strategies to address one operator’s anticipated shortfalls.

MGO’s solutions
We began by reviewing financial models and supporting documentation provided by each of the five transit operators. Our team validated these models against industry benchmarks and publicly available sources, including budget documents, Annual Comprehensive Financial Reports (ACFRs), and board presentations. This allowed us to assess the accuracy and consistency of the data being used to project future deficits.

To support transparency and informed decision-making, we compiled and analyzed specific data requested by stakeholders such as board members and state legislators.

We also conducted best practices research on national and international transit systems to develop a range of fair-share contribution methodologies.

Outcomes
achieved
We delivered a final report that summarized the key assumptions driving each operator’s financial model, highlighting both commonalities and discrepancies. Our analysis identified areas where data inputs were not standardized or fully substantiated, and we provided insights into capital transfers, major revenue initiatives, cost-saving measures, and reserve policies.

We also compared service level and ridership forecasts across operators and outlined the historical and current agreements that govern fair-share contributions. To support continued stakeholder engagement, we prepared tailored presentations that the client could use in discussions with additional groups.

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Large County Government – Procurement Governance Project Our client’s need
Our team was engaged to assess the County’s procurement governance structure following a series of controversial events that raised concerns about oversight, compliance, and transparency. The County needed an independent evaluation of its procurement practices to determine whether they aligned with local, state, and federal regulations, and to identify opportunities for strengthening accountability across its decentralized procurement environment.

MGO’s solutions
We began by reviewing all relevant procurement policies, manuals, and regulatory documents, as well as industry best practices. Our goal was to evaluate the County’s current procurement framework against established standards and legal requirements.

To gain a deeper understanding of how procurement operated in practice, we conducted interviews with a broad range of stakeholders, including staff from multiple County departments, a Board Supervisor, and a commissioner. These conversations helped us identify key risks, inconsistencies, and challenges within the County’s decentralized procurement model.

Outcomes
achieved
We delivered a comprehensive report recommending the centralization of core procurement functions under the County Procurement Office. This structural change would enable stronger oversight, more consistent policy enforcement, and improved data collection and analysis to support countywide purchasing decisions.

In addition, we provided guidance on implementing an enterprise resource planning (ERP) system and managing the organizational change associated with technology transformation. These recommendations were designed to support a smooth transition as the County standardizes procurement processes across its 22 departments.

We also proposed enhanced governance controls, including clearer roles for the Board, expanded training opportunities, improved conflict-of-interest disclosures, and more transparent decision-making procedures. Together, these measures aim to restore public trust and ensure long-term accountability in the County’s procurement operations.

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MGO also has extensive experience performing assessments of government entities’ internal processes and procedures. For example, MGO has performed:

• An assessment of a California city’s procurement procedures manual, fixed asset policies and procedures, and library system.
• An assessment of a California city’s water billing processes and payroll and a staffing study of the finance department.
• Assessments to support quarterly updates on the spending of affordable housing bond proceeds for a large California county.
• A variety of internal audits for a California transportation authority, including fiscal sustainability, expenditure review, and operational assessments.
• Subrecipient monitoring of construction projects for a large special purpose government.

Don't take our word for it. Ask our clients.

The following is a list of select clients we’ve recently served. We encourage you to reach out to them to learn more about their experience with our firm, but we ask that you let us know before you do, so that we can facilitate a timely response to your inquiries.

City and County of San Francisco
Contact name Winnie Woo Title City Services Auditor
Address 1 Dr. Carlton B. Goodlett Place - City Hall, Room 484 San Francisco, CA 94102
Phone +1 (415) 554-7652 Email address [email protected]

Santa Clara Valley Tran sit Authority
Contact name Stephen Flynn Title Advisory Committee Coordinator Address 3331 North First Street, Bldg C
San Jose, CA 95134
Phone +1 (408) 321-7042 Email address [email protected]

Orange County
Contact name Michael Dean Title Assistant Deputy Director Address 12 Civic Center Plaza, Room 200
Santa Ana, CA 92702
Phone +1 (714) 834-3504 Email address [email protected]

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C. Approach, scope, & timeline
Provide a proposed approach and projected timeline to conduct and complete the steps in the Scope of Services. Briefly describe the methodology and organizational approach the firm would use to assist the City, including critical elements and special methodologies that would be used to ensure that City objectives are satisfied.

Our general internal audit methodology
MGO has developed a flexible, risk-based internal audit methodology, shown below, which can be readily adapted to meet our clients’ needs. We plan to execute each of these components in our work with the City of Vallejo.

1. Develop an Understanding of the Organization – Developing a strong understanding of the organization is critical to the successful execution of an internal audit. While we come to the table with a strong understanding of state and local government organizations and operations, we will seek to further understand your organization's specific operating constraints, driving factors, and expectations through information gathering, interviews, reviews of recent Board agenda, process walkthroughs, and a range of other investigative activities.

2. Develop or Review Internal Audit Charter and Policies– an internal audit charter is core to denoting Internal Audit’s roles and responsibilities and defines key aspects of internal audit delivery such as reporting lines, alignment to standards, and independence. Policies provide further details to inform the scope of the audit engagement, how it should be conducted, quality control standards, and related factors. MGO will review these materials to the extent requested and necessary for each client.

3. Conduct Annual Risk Assessment & Develop Risk-Based Audit Plan – generally, organizations conduct an annual risk assessment and develop an audit plan for the year(s) ahead. MGO's risk assessment methodology considers all functional areas, including financial, operational, strategic, and information technology and cybersecurity, as well as strategic initiatives and capital projects. Generally, risks are

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ranked or scored based on likelihood and impact, with high and moderate risk areas ultimately being included in the annual audit plan.

4. Plan and Execute Audit Activities – for each audit activity, we define the audit scope and objectives, develop a detailed audit plan outlining the audit approach, gather relevant
documentation and data, conduct interviews with key
personnel, perform tests and analyses aligned with goals and objectives, and document our observations and identify or develop recommendations for improvement.

5. Report Results to Management & the Board – after the completion of each internal audit activity, we communicate our findings and observations to management and the Board. This is done in an appropriate, agreed-upon manner – for example, as a short memorandum-style report, or as a detailed report and summary presentation at a public meeting. We routinely adapt the content, structure, format, and presentation of our reporting to our clients' specific preferences and to nature and outcomes of the project.

6. Follow-up on Prior Audit Findings – it's important to periodically follow up on corrective action plans developed for each audit activity. This is typically done on a semi-annual basis. As part of follow-up activities, the internal audit team will collaborate with the City's stakeholders will review evidence of the remediation effort and close completed items on the tracking list and Board dashboard.

Keys to our methodology
In delivering internal audit activities to our clients, we seek to add value at all times. We are typically not engaged to act as the policing function, but rather to be a key contributor in identifying and solving complex issues that organizations face today.

Our methodology prioritizes:

• Assigning project team members whose knowledge, skills, and experience align with the nature and scope of the project.
• Developing sound criteria rooted in best practices, accounting and professional standards, and applicable regulatory requirements to properly understand performance against expectations. • Collaborating and working as a team with the subject of the audit activity to be efficient throughout the process and drive value.
• Considering the relative business impact of a finding or observation in determining corrective action recommendations.
• Implementing quality control standards, ensuring project deliverables have been reviewed for accuracy, and vetting recommendations for efficacy as well as practicality.

Our audits will be performed in
compliance with:
• Federal and State rules and
regulations
• Generally Accepted Government
Auditing Standards
• Standards for the Professional
Practice of Auditing and Local
Governmental Units
• The latest American Institute of
Certified Public Accountants (AICPA)
industry guide: Audits of State and
Federal and California State rules
and regulations
• Government Accounting, Auditing,
and Financial Reporting (GAAFR)
standards
• The Federal Information System
Controls Manual
• The National Institute of Standards
and Technology (NIST)
• The Institute of Internal Auditors (IIA)
• Information Systems Audit and
Control Association (ISACA)
• International System Security
Certification Consortium
• Committee on Sponsoring
Organizations (COSO),
• Other applicable regulations or
guidelines
Leveraging Required Standards

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Aligning with the City’s expectations for the engagement If selected to support the City’s audit objectives, we will collaborate closely with stakeholders to provide the desired level of support and service by:

• Maintaining a pool of highly qualified auditors at all levels. • Promptly notifying the City in writing of any changes of staffing from those listed in the contract, and onboard new team members without any additional charge hours to the City. • Developing audit plans and engagement proposals, to be approved by the City in the form of Engagement Task Orders.
• Executing fully defined and approved Engagement Task Orders that deliver the desired audit services on time and within budget.
• Conducting a risk assessment that considers all functions, strategic initiatives, and capital projects including but not limited to financial, operational, strategic, information technology and cybersecurity, and other key risks.
• Ranking identified risks according to their likelihood and impact, with high and moderate risk areas being included in the audit plan.
• Providing resource management of audit services, including related reporting, under the direction of the City.
• Maintaining a repository of resources and materials to support audit services and make the material available for use by the City.

The next section provides a step-by-step explanation of our audit approach and details specific tasks and activities we’ll perform to deliver our audit projects in alignment with the City’s expectations.

Our approach and methodology
Professionals with direct experience providing internal audit and consulting services to similar state and local government organizations will lead all phases of our audit activities. Our approach to conducting each audit will be built upon our extensive experience serving as internal auditors for state and local government entities. This section further describes our overall approach to the services we will provide for the City and details of our framework for planning and performing each audit activity.

Planning
The first phase of any audit project is planning - key tasks for this phase are described below.

• Entrance Conference with the City: MGO will hold an entrance conference with the appropriate team members (via video conference) to start the audit activity. The primary objectives of this meeting will be to introduce the key members of our project team and to confirm both parties’ understanding of the project scope of work, anticipated schedules for work plan activities, roles and responsibilities, and to discuss the communication protocols that will be used for the project.

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• Preliminary Data Request: MGO will request the following preliminary information and data at the entrance conference. This may include documents such as:
o Organizational charts
o Policies and procedures
o Relevant contracts or agreements
o Data sets or transaction logs relevant to the scope of the engagement o Inventory of relevant systems and applications
o Contact list

Gaining an understanding
In the second phase of the audit, we will focus on understanding the information provided in our preliminary data request, as well as other factors that might influence our workplan.

• Review information: MGO will review the information requested in planning to gain an initial understanding of the relevant policies and procedures
• Interview the City staff: MGO will interview team members and walk through those processes and controls that are relevant to the audit area
• Research requirements and best practices: MGO will research requirements and best practices related to the scope and objectives

Fieldwork
The third phase of the audit activity is fieldwork, which might consist of a variety of activities. The tasks shown below are provided as examples – our actual activities will be designed to address the specific audit objectives, and our capabilities are not limited to these tasks.

• Document and Evaluate processes, key internal controls, and risks: MGO will conduct process walkthroughs to document business processes, internal controls, individuals/roles involved, and key controls
• Conduct sample-based testing: MGO will select a statistically significant or risk-based sample of transactions or data elements in order to perform testing of attributes typically routed in compliance requirements, policy requirements, or other attributes • Conduct research and perform benchmarking: MGO will determine a group of peer entities, conduct research related to the scope and objectives, and perform benchmarking of entity performance against peers
• Perform data or financial analysis: MGO will perform financial or data analysis, including financial ratios, statistical analysis, and more. Note that most projects include some level of data analysis, if only including demographic data (e.g., averages, ranges, etc.)

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Reporting
This phase consists of drafting the report and facilitating its review by the City, as outlined in the steps below. Note that we will refine our approach to align with the City's specific circumstances and needs in each audit.

• Hold a meeting to discuss our findings and observations with the City's stakeholders • Prepare the draft report, which at a minimum will include the following:
o An executive summary
o A discussion of the background, audit scope, and objectives o A description of the audit methodology
o An overview of our findings and observations, with a specific focus on weaknesses in internal controls organized by severity
o Actionable recommendations to improve identified weaknesses and/or enhance the operating and control environment generally
o A proposed action plan to steer the implementation of recommended improvements o The Auditee and/or Management's response to our observations and findings • Perform our internal quality control review of the draft deliverable • Meet with the executive leadership team, as needed, to further discuss results and next steps • Prepare and present the final report

If requested, we are also happy to present our findings to the City Council.

Project management and communication
Our audit methodology is built on our extensive understanding of state and local government organizations, which enables us to focus our effort on the areas of greatest risk and minimizes the time required of your staff related to the internal audit.

Structured approach
Designing an efficient and effective internal audit project is dependent on an early and accurate risk assessment. Every entity we serve is unique, and developing a strong understanding of your operations is the first step in tailoring our activities to the City’s unique risks and needs. Our approach focuses on significant hands-on involvement of experienced professionals to promote a strong understanding of the relevant financial statement and control risks. Our audit methodology has been specifically designed to be flexible and scalable so that the team can combine valuable insights and experience-driven perspectives with their understanding of your operations and deliver an internal audit approach that will best serve the City’s objectives.

Our engagement management is driven by a comprehensive work plan and timeline, which establishes critical internal audit objectives and completion dates. Our management team guides the execution of the team’s activities, assessing progress against key milestones and providing oversight and accountability to support efficient service delivery. Our approach prioritizes procedures and leverages automation, data analytics and streamlined workflows to support efficiency. In the event that changes to the overall the City

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work plan or timeline are needed, we will communicate those changes and their potential impact timely to keep the Citymanagement in the loop and manage expectations appropriately.

Effective communication
At MGO, we believe that frequent communication is paramount to the success of any engagement. We have maintained a long-standing practice of holding weekly status meetings, during which we report on our progress and highlight any preliminary findings. These status meetings are focused on accountability, open issues and questions, potential adjustments to our activities or the timeline, and preliminary findings and observations.

Status meetings are scheduled in advance with appropriate members of management and staff and are an effective means of maintaining oversight, monitoring expectations, and avoiding surprises.

That said, we view our work with City of Vallejo as an integral aspect of a long-term, mutually beneficial relationship, so we’re available year-round to provide feedback and assist with any questions and concerns.

Proposed audit timeline
We recognize the importance of timely completion of audit tasks and deliverables. The timing of our audit procedures will be coordinated with management to minimize disruption of your operations and provide timely delivery of all reports by the City’s deadlines. In our experience, a typical audit project requires 12-14 weeks from initiation to final reporting; however, this timeline can vary depending on the complexity of the audit area and diverse other factors, such as availability of stakeholders who should be interviewed, accessibility of relevant documentation, and volume of records, controls, or processes to be assessed. We welcome your involvement in the planning process and believe that monitoring progress will result in timely delivery of audit objectives.

The timeline shown below represents a typical cadence for audit activities.

WEEKS
Activity 1-3 4-6 7-9 10-11 12-14
Planning, kickoff, and relationship building
Information gathering
Fieldwork
Reporting

As discussed above, we hold regular meetings with your management team and/or the audit committee to discuss overall status, potential adjustments, control deficiencies, operational improvements, and critical path issues that may impact timing. Our objective is to provide the same visibility for all parties and avoid surprises.

*The timeline above is preliminary. All dates are subject to change if the City is unable to provide the necessary information and data on a timely basis.

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D. Fee proposal
The Fee Proposal shall include the basis/bases of compensation for services rendered. Specify what costs, if any, are to be reimbursed.

Our fee philosophy
At MGO, we foster long-term client relationships by offering quality service at fair and competitive rates. After considering the economic climate, we have committed ourselves to helping the City meet its financial challenges over the next few years. Accordingly, we are offering a significant discount on our standard fees.

MGO may, at its discretion, draw on the resources of its subsidiaries, in each case within or outside the United States, in connection with the provision of its services. MGO has internal policies, procedures, and safeguards to protect the security and confidentiality of the client’s information and will be solely responsible for the provision of the services.

With MGO, the City will have access to practitioners with extensive experience and specialized skills that cross multiple disciplines. Our professionals have a well-established reputation for their uncompromising dedication to responsive, value-added service. Our standard hourly rates are shown below.

Professional Role Hourly Rate
Partner/Director $395
Senior Manager $285
Manager $230
Senior Consultant $210
Consultant $160

For each anticipated project, we will select a core service delivery team based on the anticipated level of effort and the experience and specialized skills that will be needed to achieve the objective. Our estimates consider all key aspects of the project, such as required hours, expectations for interviews, walkthroughs, and testing, and other relevant factors.

We do not plan to request reimbursement for expenses.

Please note that our ultimate acceptance of an agreement to perform the services described in this proposal is contingent upon the satisfactory completion of our investigatory client acceptance procedures.

Final word on fees
At MGO, we genuinely care about serving our clients and delivering an extraordinary experience. If you're currently weighing your options and have concerns about fees, we are happy to discuss the scope of our services with you. Our team goes above and beyond to achieve exceptional results, believing that success is about more than just completing a job. Let's talk about how we can work together to reach your financial goals.

© Macias Gini & O’Connell LLP | 28
Appendix: Resumes

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 29

Kyle O’Rourke, CIA, CRMA, CGAP
Consulting Partner
How I deliver value to you …
With more than a decade of public accounting experience and a passion for the public sector, I offer a unique perspective anchored in adept organizational governance, strong internal controls and risk management practices, and efficient and effective policies and procedures. Through collaborative engagement, I work to understand your strategic objectives and operational challenges — providing tailored solutions that enhance governance, streamline processes, mitigate risks, and position your teams and organization for success.

My experience
Throughout my career, I have been privileged to work with municipalities, public utilities, Tribal nations, and nonprofits on comprehensive risk, internal audit, and management consulting engagements. This has enabled me to cultivate multidisciplinary knowledge spanning internal audit, enterprise risk management, operational assessments, financial analysis and planning, organizational and human capital studies, technology enablement, and more.

Whether supporting a city's outsourced auditing function, guiding a Tribe's risk management transformation, or streamlining processes for a tollway authority, I thrive on driving meaningful, sustainable progress with action-oriented plans for improvement. My mission is to be a trusted advisor and advocate for your organization's long-term resilience and success.

Representative client experience*
State agencies and departments
• Illinois Department of Commerce
• Illinois Racing Authority
• Illinois Toll Highway Authority
• New Jersey School Development Authority
City and county governments
• Orange County, California
• Lake County, Illinois
• Palo Alto, California
• Santa Clara, California
• Yolo County, California

Public utilities
• Illinois Municipal Electric Agency
• Indiana Municipal Power Agency
• Riverside (CA) Public Utilities
• Wisconsin Public Power
Tribal governments
• Pueblo of Laguna • Southern Ute Indian Tribe
Other governments
• Chicago Housing Authority
• Chicago Public Schools
• City Colleges of Chicago
• Columbus City Schools
• New York City Board of Education
Retirement System

*Prior to joining MGO unless otherwise noted

Education and certifications
• Indiana University, Master of
Public Affairs (MPA)
• Indiana University, Bachelors
• Certified Internal Auditor (CIA)
• Certified in Risk Management
Assurance (CRMA)
• Certified Government Auditing
Professional (CGAP)

Associations
• Institute of Internal Auditors
• Institute of Internal Auditors,
Chicago Chapter

Proposed role and responsibilities
• Provide overall leadership and
strategic direction for internal
audit engagements across city
departments.
• Serve as the primary liaison with
senior city officials, audit
committees, and other key
stakeholders.
• Ensure audit services align with
the city’s strategic objectives,
regulatory requirements, and
public accountability standards.
• Oversee engagement planning,
resource allocation, and risk
management to ensure
successful project execution.
• Offer insights on emerging risks,
governance trends, and best
practices in public sector
auditing.
• Promote a culture of integrity
and continuous improvement
within the audit team.

[email protected]
+1 (818) 436-4196

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 30

Chris Horton, Ph.D.

Consulting Senior Manager
How I deliver value to you …
I lead matrix teams that conduct performance audits and a wide range of other advisory services. My clients have included state, local, school district, and federal agencies. As a former County Auditor, Internal Audit Supervisor, and Audit Manager for government organizations in Virgina and Colorado, I have direct experience with the challenges these entities face and can offer practical strategies to overcome them.

My experience
With approximately twenty-five years of management experience in risk management, compliance, audit, and accountability sectors, I’m highly effective at coordinating team members across matrixed teams to deliver outstanding project outcomes. I play a leadership role by representing the firm in various professional associations, including AGA (a government accountability association) and the Association of Local Government Auditors (ALGA).

Moreover, I provide both leadership and support in the firm’s business development and staff development activities, supporting client relationship management and helping new hires and experienced staff meet their personal and professional goals while exceeding project expectations.

In past roles, I was directly responsible for creating the audit function, including developing the audit charter and audit committee structure in alignment with government auditing standards, writing policies and procedures, maintaining the budget, and overseeing the work of outsourced audit teams. I also created audit plans, led the execution of performance and compliance audits, and trained team members on government auditing standards and best practices.

As a past President of both the Northern Virginia Chapter of AGA and ALGA, I have delivered numerous presentations in conjunction with the Institute of Internal Auditors, the Society of Defense Financial Management, Intergovernmental Audit Forums, and various other organizations. I’ve also authored and co-authored various articles for professional organizations supporting state, local, and federal governments.

[email protected]
Education
• J.D., The Catholic University of
America, Anticipated May 2026
(Evening Division)
• Ph.D., Public Administration,
Arizona State University (2012)
• M.A., History, University of Texas
of the Permian Basin (1996)
• B.A., Political Science (Double
Major in History) (cum laude),
University of Texas of the
Permian Basin (1994)

Certifications
• Certified Government Financial
Manager
• Certified Internal Auditor
• Certified Government Audit
Professional
• Certification in Risk Management
Assurance:
• Certification in Control Self-
Assessment

Proposed role and responsibilities

• Coordinate with city officials and
department heads to understand
operational risks and audit
priorities.
• Supervise audit teams in
conducting fieldwork, including
interviews, documentation
reviews, and control testing.
• Review workpapers and audit
evidence to ensure compliance
with professional standards and
internal methodologies.

+1 (312) 488-8309

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 31

Eric Russell, CIA, CGAP, CGMS, MPA
Director
How I deliver value to you …
As a Financial and Regulatory Compliance Specialist with more than 15 years of experience in government finance, I support clients with a diverse range of services including asset management, financial and compliance audit, fraud investigation, and management consulting. I also frequently provide professional training for organizations that are working to improve their regulatory compliance programs and have delivered technical training to the Council of the Inspectors General on Integrity and Ethics (CIGIE), and the U.S.

Department of Agriculture, among others.

My experience
During the course of my career, I have provided federal grant and contract management; prevailing wage, budget, and rate calculation; and capital project/developer qualification consulting services to entities such as Pacific Gas & Electric, the New York ISO, and ISO New England. Further, I have served as the lead Senior Manager and/or Engagement Manager for audits and internal control and compliance assessments of entities such as Rentech, Emerald Biofuels, National Grid, Consolidated Edison, and Black & Veatch Special Projects Corporation.

I am also honored to have served as a Past President of the National Grants Management Association.

[email protected]
Education
• The Ohio State University, John
Glenn College Of Public Affairs:

Master Of Public Administration
(June 2008)
• Stetson University: Bachelor Of
Business Administration (May
2006)

Certifications
• Certified Internal Auditor
• Certified Government Auditing
Professional
• Certified Grants Management
Specialist, National Grants
Management Association
(NGMA)
+1 (312) 488-8309

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 32

Brian Mayhew
Consulting Senior Manager
How I deliver value to you …
For more than 30 years, I have acquired experience as chief financial officer for transportation and local government entities. I focus on financial analysis and planning side with strong emphasis in infrastructure planning and financing as well as internal transformation of budget, accounting, and internal controls.

My experience
As CFO of the Metropolitan Transportation Commission (MTC) from October 1999 to January 2022, I managed a complex regional transportation agency with more than $1.2 billion in annual revenue, $250 million in active project grants, and $12 billion in project financing. I developed long-range budget models that helped us navigate three recessions without layoffs or program cuts and retired all unfunded pension and OPEB obligations within five years. At the Bay Area Toll Authority (BATA), I oversaw the transition to an electronic billing system, increased project financing from $2 billion to $12 billion, and enhanced project capacity by over $1 billion, leading BATA to become the highest-rated transit agency in the country. Additionally, I contributed to the integration of the Express Lane Network, the Clipper regional fare card system, and the Bay Area Housing Finance Authority.

Previously, I served as CFO for the City of Westminster from April 1989 to October 1999, overseeing financial operations for a city with $125 million in annual revenue. I upgraded the water agency's rating from default to "AA," implemented a capital replacement plan that reduced water usage by 17% while increasing revenue by 10% and established an economic development district to fund infrastructure projects. I also withdrew city funds from the Orange County pool before its bankruptcy, avoiding financial repercussions. As Revenue Manager for the City of Mountain View from April 1982 to April 1989, I managed revenue, treasury, debt, budget, and assessment district functions, overseeing $300 million in bonds and developing financial planning models for capital programs.

Education and certifications
• UC Santa Barbara, Masters in
Economics
• UC Santa Barbara, B.A., History
and Political Science

Associations
• California Society of Municipal
Finance Officers (former member
and chapter chair)
• MSRB Issuer Advisory Committee
• GFOA debt and investment
committees
• GASB 54 (Derivatives)
Implementation Committee
• GASB 56 (Fund Balance) Advisory
Committee
• CalTrust Board of Directors

Awards
• Bay Area CFO of the Year
• PSA Award for Excellence in
Public Finance

Proposed role and responsibilities
• Lead and coordinate the overall
delivery of the audit and
technical assistance
• Lead project strategy and
planning efforts
• Work closely with management
team
• Available throughout the year to
proactively identify issues
[email protected]
+1 (510) 325-8910

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 33

Vicki Sun, CISA
Consulting Manager
How I deliver value to you …
I focus on serving as a strategic advisor who enhances audit effectiveness, aligns audit activities with organizational risks and goals, and drives continuous improvement. Leveraging real-world insights, industry best practices, and advanced tools like data analytics, I help clients improve audit quality and efficiency. Additionally, I support the audit team in developing and enhancing our service capabilities, foster strong stakeholder relationships, and guide transformation initiatives to help internal audit functions deliver greater assurance and business value.

My experience
With six years of experience in state and local government consulting, I have managed a wide range of projects including organization assessments, performance audits, strategic planning, community development, and other complex initiatives across various regions, including California, the Northeastern U.S., Texas, and Florida. At my previous firm, as a senior consultant, I managed seven major projects, leading efforts from organization assessments to change management. Over the past two years, I've served as the primary analyst on more than 35 projects, contributing as the sole or lead author for numerous project reports and client deliverables. I leverage tools like Excel and survey instruments extensively for data collection and analysis, driving insights through peer comparisons, financial forecasting, and staffing analysis to support client objectives.

In previous roles within city government, I led audits on key programs and collaborated closely with staff to analyze budgets and present findings to leadership. As a policy advisor and community engagement manager, I also spearheaded technology initiatives and developed partnerships across public, private, and nonprofit sectors, driving impactful, community-focused solutions.

Representative client experience*
• City of Campbell
• City of Charlotte
• City of Cleveland
• City of Fremont
• City of Grover Beach
• City of Livermore
• City of Milpitas
• City of Pasadena
• City of San Leandro
• City of South Miami
• City of Vacaville

Other governmental agencies
• Western Association of Schools and Colleges

*Prior to joining MGO unless otherwise noted
Education and certifications
• Stanford University, M.Ed.,
International Education Policy &
Evaluation
• Stanford University, B.A.,
Comparative Literature with
Honors

Proposed role and responsibilities
• Lead and coordinate the overall
delivery of the audit and
technical assistance
• Lead project strategy and
planning efforts
• Work closely with management
team
• Available throughout the year to
proactively identify issues
[email protected]
+1 (925) 395-2886

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 34

Rebecca Haggerty, CPA, CIA, CFE
Consulting Senior Manager
How I bring value to you…
With more than 35 years of experience in government audit, my past roles include audit leadership, accounting and project management at both small and large CPA firms, as well as leading and serving on city and county internal audit teams. Having been on both sides of the table, I can offer my clients insights, support, and strategies driven by that unique perspective.

My experience
I joined MGO as a consulting senior manager after serving as the Chief Audit Officer for the Port of Oakland and an Internal Audit Manager, General Accounting Manager and Senior Internal Auditor for the County of Santa Clara. My audit experience includes department- and entity-wide reviews in areas including but not limited to treasury, investments and cash handling, payroll, human resources, accounts payable, purchasing, internal service funds, and workers’ compensation and disability payments.

My areas of specialization include fraud prevention and detection, risk assessment and mitigation, and technology enablement, and I am deeply familiar with Generally Accepted Government Auditing Standards (GAGAS) as well as guidance promulgated by the Association of Certified Fraud Examiners (ACFE), the Institute of Internal Auditors (IIA), and the Committee of Sponsoring Organizations of the Treadway Commission (COSO), including its Enterprise Risk Management Framework.

Representative client experience
• Santa Clara Valley Transit Authority
• County of Humboldt
• City of Martinez
• Santa Clara Valley Water District
• County of Santa Clara
• City of Belmont
• * Port of Oakland, Chief Audit Officer
• * County of Santa Clara Internal Audit, Manager/Chief Audit Executive • * County of Santa Clara General Accounting Manager
• * County of Santa Clara Systems Development Team

*Prior to joining MGO
Education and certifications
• Bachelor’s degree in business
administration, Accounting - San
Jose State University, San Jose,
CA
• CPA licensed in California
• Certified Fraud Examiner (CFE)
• Certified Internal Auditor (CIA)

Associations
• Member, Association of Certified
Fraud Examiners (ACFE)
• Member, Institute of Internal
Auditors (IIA)
• Member, Association of
Government Auditors (AGA)

Proposed role and responsibilities
• Perform or oversee activities in
the engagement work plan
• Oversee the day-to-day
execution of the engagement
• Prepare and review engagement
deliverables
• Develop and provide status
reports to detailing the team’s
progress in engagements
• Train and oversee engagement
staff
[email protected]
+1 (858) 345-3033

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 35

Rory Vale, MPA
Consulting Senior Manager
How I deliver value to you…
With more than seven years of experience in the public sector and a lifelong commitment to community development, education, and public service, I combine my experience in government financial operations with in-depth understanding of internal audit and risk management strategies to help state and local governments, agencies, school districts, and utilities improve operational efficiency and implement sound governance strategies.

My experience
Throughout my career, I have focused on supporting governments and other public organizations in working towards more effective, efficient operations through strategic planning, policy development, business process assessment and redesign, risk assessments and mitigation programs, and internal control reviews. My consulting and internal audit experience includes assessing disbursements to identify errors and support funding equity; leading budgeting, strategic financial planning, and risk management initiatives; developing communication protocols and operating procedures to support smooth leadership transitions and creating investment planning and funding management roadmaps to support sustainable community and educational programs.

I am well versed in diverse guidance for auditing, financial planning, management and reporting, and risk management, including Generally Accepted Government Auditing Standards (GAGAS) and other standards as promulgated by the Institute of Internal Auditors (IIA), and the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, I am a frequent speaker, thought leader, and contributor to industry associations, and I currently serve as the Junior Varsity Baseball Coach at West Ottawa High School in Holland, MI, where I founded the Panther Baseball Academy to support, train, and mentor student athletes.

Representative client experience
• 12 years’ experience in and around the public sector
• Co-Founder, Teach For America-Idaho
• Former State of Indiana finance executive at the Department of Transportation • City of Tacoma, WA – TPU 10 Year Management Review*
• Illinois State Board of Education, IL – Evidence-Based Funding Internal Audit* • Indianapolis Public Schools, IN – Shared Services Financial Model* • City of Fort Wayne, IN – Emergency Rental Assistance Program and EMS Feasibility Analysis*
• Atlanta Public Schools, GA – Outsourced Internal Audit* • Columbus Public Schools, OH
• Denver Public Schools, CO
• Plano Independent School District, TX

*prior to joining MGO
Education and certifications
• Indiana University –
Bloomington, O’Neil School of
Public and Environmental Affairs,
Master of Public Affairs with a
concentration in Education
Policy
• Central Michigan University,
Bachelor of Science in History
• Boise State University, Six Sigma
Green Belt
• Indiana University-Bloomington,
Certified Fund Developer

Associations
• Member, Institute of Internal
Auditors (IIA)
• Member, Government Finance
Officers’ Association (GFOA)
• Member, Illinois Government
Finance Officers Association
(IGFOA)
• Member, Association of Local
Government Auditors (ALGA)
• Member, Association of Indiana
Municipalities (AIM)

Proposed role and responsibilities
• Perform and oversee day-to-day
engagement tasks as detailed in
the engagement work plan
• Prepare and review engagement
deliverables
• Prepare and deliver project
status reports to the director and
engagement partner
• Oversee, train, and mentor
engagement staff
[email protected]

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 36

Debra Auker
Consulting Senior Manager
How I bring value to you…
I have dedicated my 30+ year career to local government finance, serving in Director, CFO, and related roles for cities, towns, and state government agencies. As a Senior Manager with MGO, I provide my clients with practical strategies and insights based on leading practices and my own extensive experience, and develop tailored audit, compliance, and risk management plans to support governments in achieving their operational goals, maintaining compliance, and demonstrating fiscal transparency.

My experience
After 8 years of service as an auditor and accounting supervisor with the public accounting firm of Moreland & Associates in southern California, I transitioned into state and local government. Over the next 24 years I was fortunate to serve a number of local governments in the San Francisco Bay Area, in diverse roles that allowed me to exercise a combination of strategic, technical, leadership, and negotiation skills to drive positive change.

Leveraging my background in financial reporting, strategic planning, budgeting, operations, process design and improvement, and risk management, today I provide consultative services for MGO’s broad client base in state and local government.

I received my BA in Business Economics from UC Santa Barbara and Master of Public Administration with an emphasis in Human Resources from Notre Dame de Namur University. I am an active member of the California Society of Municipal Finance Officers, the Government Finance Officers Association, and the California Municipal Treasurers’ Association.

Representative client experience*
• City of Belmont
• City of Half Moon Bay
• City of Hayward
• East Bay Regional Park District

*Prior to joining MGO unless otherwise noted

Education and certifications
• Notre Dame de Namur
University, Master of Public
Affairs
• University of California Santa
Barbara, B.A. in Business
Economics

Proposed role and responsibilities
• Lead the planning and execution
of internal audit engagements
across diverse city departments
and agencies.
• Oversee risk assessments to
identify high-impact areas such
as public safety, infrastructure,
procurement, and grant
management.
• Guide audit teams in conducting
interviews, process
walkthroughs, control testing,
and data analysis.
• Develop actionable
recommendations to improve
operational efficiency,
compliance, and internal
controls.

[email protected]
+1 (818) 436-4196

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 37

Elliot Hallett, MPAL
Consulting Senior Associate
How I deliver value to you…
I focus on efficient engagement execution and ensuring client satisfaction through careful attention to detail and unwavering dedication to quality. I approach each project with a proactive mindset and the goal of understanding my client’s specific needs, priorities, and challenges. By maintaining open communication and building solid relationships, I foster transparency and trust throughout the engagement, and my focus on continuous improvement and adherence to best practices enhances the quality of my work and demonstrates my genuine care for the client's success.

My experience
My work in internal audit has involved cross-functional initiatives to evaluate and optimize organizational performance. By providing clients with leading practices and helping them apply Lean principles to the design and implementation of process improvements and cost-saving measures, I support transformative initiatives that enhance controls and drive operational efficiency while aligning stakeholder engagement with strategic priorities.

With a background in community engagement and peripheral experience in fundraising for municipal programs, I leveraged data visualization technologies and advanced quantitative analysis to inform leadership decision-making under tight deadlines. My commitment to client satisfaction is reflected in my focus on thorough analysis, practical recommendations, and the positive impact I have on the client's operations.

Representative client experience*
• City of Dallas
• Los Angeles County
• City of Tacoma, WA
• Ohio Public Employees Retirement Systems
• Santa Maria, CA
• Town of Truckee, CA
• Madison Metropolitan Sewerage District, WI
• Illinois State Highway Authority
• Town of Carrboro, NC
• Washington County, MN

*Prior to joining MGO unless otherwise noted

Education and certifications
• The Ohio State University, Master
of Public Administration
• Davenport University, Bachelor
of Business Administration

Proposed role and responsibilities
• Support project planning by
contributing to timelines,
resource coordination, and task
organization.
• Develop interview templates and
conduct client interviews to
gather relevant insights.
• Perform analysis and testing to
evaluate processes, controls, and
data accuracy.
• Draft clear and concise
deliverables that communicate
findings and recommendations.

[email protected]
+1 (312) 488-8302

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 38

Nhia Thao
Consulting Senior Associate
How I deliver value to you …
In my work as a consulting associate, I deliver practical strategies and guidance to support clients’ operational objectives and focus on continuous learning and improvement to drive meaningful change. I’m dedicated to bringing a positive experience to those around me to encourage innovation, straight talk, and mutually beneficial long-term relationships. My goal is to provide new solutions to ever-changing issues and to provide value that will make a long-lasting difference in the overall environment.

My experience
I have a combination of six years of auditing and consulting experience in state and local government which includes experience in both the public accounting sector and internal state government department. Of those six years, I have served five years as a lead associate on more than 20 projects, contributing to delivering final audit reports and other specific client-requested deliverables.

In my prior roles, I have leveraged tools like Tableau, Excel, Visio, and PowerPoint to provide insight on financials, internal control environments, training material, and data collection and analysis. I have also developed policies and procedures to help clients strengthen their overall internal controls over financial operations by interviewing and gaining an understanding of the control environment. I have also conducted performance surveys that included multiple agencies from different states and provided efficient solutions to clients to help them better their processes. My main areas of experience are in compliance, performance, and internal controls.

Representative client experience
City and county governments
• City of Cupertino
• City of Glendale
• City of Modesto
• City of Roseville
• City of Sacramento
• County of Douglas, Colorado
• County of Douglas, Nevada
• County of Sacramento

Public education
• University of Redlands • El Camino Community College
Other governmental agencies
• California Department of Education
• California Department of Healthcare
Services
• California Department of Transportation
• California Office of Emergency Services
• Jefferson County Public Utilities
District
• New Mexico Mortgage Finance
Authority
• Oregon Public Employees’
Retirement System
*prior to joining MGO
Education and certifications
• California State University,
Sacramento – Business
Administration, Accountancy

Proposed role and responsibilities
• Assist on project planning efforts
• Develop interview templates and
conduct client interviews
• Conduct analysis and testing
• Draft deliverables

[email protected]
+1 (916) 290-1813

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 39

David G. Bullock, CPA
State and Local Government Industry Leader | Partner
How I deliver value to you …
As the head of our State and Local Government practice, I offer financial services to some of the largest governmental organizations across the country. I stay at the forefront of our field through active thought leadership, regularly speaking and conducting training on specialized government accounting topics and working closely with the Governmental Accounting Standards Board (GASB).

My experience
An MGO team member since 1996, I have experience providing highly technical accounting and financial advisory services to both private and public sector clients.

My current engagements include leading the federal compliance audit for several large state agencies, counties, cities, and special districts; and my experience also extends to consulting and attestation engagements, such as contract and grant compliance and forensic examination projects.

In addition to client service, I serve on various technical committees, offer training to MGO personnel and clients, and conduct annual lectures on a variety of accounting and audit related topics for associations and organizations. Drawing on my extensive experience, in-depth understanding of government accounting, and commitment to staying ahead of industry trends, I deliver tailored solutions to help your organization achieve its financial management and compliance objectives.

Representative client experience
City governments and related entities
• Fremont
• Mountain View
• Oakland
• Palo Alto
• Pleasant Hill
• Rohnert Park
• San Francisco
• San José
• Santa Rosa
• Sunnyvale
County governments and related entities
• Alameda
• Contra Costa
• Los Angeles
• Sacramento
• San Francisco
• San Mateo
• Santa Clara

Other governmental agencies
• Burbank-Pasadena-Glendale Airport Authority
• California Public Employees' Retirement System (CalPERS) • Los Angeles World Airports
• San José Mineta International Airport
• Port of Oakland (including the Oakland International Airport) • Port of San Francisco
• State of California, Single Audits
Education and certifications
• California State University. San
Jose, B.S. in Business
Administration with a
concentration in Accounting
• Certified Public Accountant,
California

Associations
• American Institute of Certified
Public Accountants
• California Society of CPAs
• Association of Government
Accountants, Silicon Valley
Chapter
• GASB Sales and Pledges Task
Force
• GFOA Special Review Committee

Proposed role and responsibilities
• Provide strategies and guidance
based in deep knowledge of state
and local government
operations, regulations, and
funding mechanisms.
• Advise on compliance with
relevant laws, policies, and audit
standards (e.g., GASB, GAGAS,
Uniform Guidance).
• Interpret complex regulations
and translate them into
actionable insights for the client
and project team.

[email protected]
+1 (925) 457-7835

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 40

Adam Wisnieski, CISA
Partner – IT Risk
How I deliver value to you …
I’ve been leading process automation and regulatory compliance solutions for more than 20 years, helping clients in a multitude of industries align and enhance their use of technologies to support efficient, compliant, and secure operations. With a particular focus on aligning cyber risk impacts to business strategy, I facilitate skills enablement around governance, risk, and compliance and provide insights and actionable plans to help clients understand and address the impact of changing regulations.

My experience
For most of my career, my work has been focused on operational risk management, governance, cybersecurity, regulatory compliance, and supply chain management. To deliver valuable insights and guidance, I forge strategic alliances with key stakeholders, boards, and executive leadership, demonstrating my commitment to innovation in operations, cybersecurity, and global risks, implementing effective mitigation strategies. I have also presented to multiple publicly traded client boards and executive committees on the impact of IT risk and opportunities to improve.

Recent publications
The Wall Street Journal:
• “What is the Market Impact of SEC’s Cyber Disclosure Rules? Not Much.” – October 2024
• “Companies Grapple with Expanding Cyber Rules” - August 2024 • “SEC’s $10 Million Fine of NYSE Owner Shows Focus on Cyber Disclosures”- May 2024

Education and certifications
• University of Kansas, B.S.,
Accounting
• University of Kansas, B.S.,
Information Systems
• Certified Information Systems
Auditor

Associations
• Information Systems Audit and
Control Association (ISACA)
• OCEG – Open Compliance and
Ethics Group

Proposed role and responsibilities
• Engage with leadership and
executive management to design
strategically practical technology
solutions, evaluate resource
availability, develop sound
implementation plans, and drive
transformative projects
• Provide oversight for IT and
cyber risk assessment efforts and
support remediation efforts with
guidance based in best practices
• Lead cross-functional teams in
the design and execution of
enterprise-wide risk
management frameworks,
ensuring alignment with evolving
regulatory landscapes and
industry standards.
• Advise boards and audit
committees on emerging
technology risks, including AI
governance, third-party risk, and
data privacy.
+1 (312) 488-8308
[email protected]

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 41

Craig Harner, CPA, CFE
Partner
How I deliver value to you …
I assist cities and associated entities in managing intricate regulations, confirming compliance, and averting fraud or loss. Through my guidance, they can establish strategic processes and governance frameworks to serve their constituents with transparency and excellence.

My experience
Leveraging 17 years of professional experience providing auditing, accounting, and consulting services to the public sector, I am proud to have managed audits for major cities, counties, and state agencies in California, including the cities of Sacramento and Santa Rosa, and the California Health Benefit Exchange (Covered California).

Government entities face a myriad of challenges, and it is critical to maintain the public’s trust. This is why I am passionate about discovering and creating efficiencies in our general-purpose financial statement audits through the utilization of CaseWare Connector applications and the generation of client financial statements — a methodology used by organizations of all sizes and complexities.

Representative client experience
City governments and related entities
• Lodi
• Oakland
• Pleasant Hill
• Sacramento
• San Francisco
• San Jose
• Santa Rosa

County governments and related entities
• Alameda
• Contra Costa
• Sacramento
• San Francisco
• Sonoma
• Tuolumne

Other governmental agencies
• California Department of Technology
• California Health Benefit Exchange
• California Institute for Regenerative
Medicine
• California Prison Industry Authority
• El Paso Metropolitan Planning
Organization
• Port of Oakland
• Sacramento Area Sewer District
• Sacramento Flood Control Agency
• Sacramento Housing and
Redevelopment Agency
• San Diego Air Pollution Control District
• Santa Rosa Housing Authority
• San Mateo County Transit District
• San Mateo Flood and Sea Level Rise
Resiliency District
• Sonoma County Water Agency and
Sanitation Districts
• State of California, Single Audit

Education and certifications
• Sonoma State University, B.S.,
Business Administration,
concentration in Accounting
• Sonoma State University, B.A.,
Spanish
• Certified Public Accountant,
California
• Certified Fraud Examiner

Associations
• American Institute of Certified
Public Accountants
• California Society of CPA
• Association of Certified Fraud
Examiners

[email protected]
+1 (916) 642-7090

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 42

Francisco Colon, CPA, CFE, CGMA
Chief Innovation Officer | Partner
How I deliver value to you …
I take pride in the responsibility for driving the strategic vision and execution of innovation initiatives within our firm. With a diverse background and comprehensive experience in the accounting profession, I have a keen eye for the bigger picture, guiding our firm and clients toward financial and operational stability.

My experience
My passion is delivering financial guidance that ultimately enhances business owners' clarity and competitive advantage. I leverage insights from my background as a Certified Public Accountant (CPA), Certified Fraud Examiner (CFE), and Chartered Global Management Accountant (CGMA) to identify trends and opportunities to help deliver you the utmost value.

I have the privilege of serving organizations in the Tribal government, gaming, technology, cannabis, hospitality, government contracting, distribution, manufacturing, and private equity sectors. I specialize in external audits, fraud examinations and litigation reports, operational and internal controls reviews, and buyer/seller due diligence.

I use my accounting knowledge to assist clients in evaluating their financial performance, specifically focusing on accounting operations, strategic alignment, profit enhancement, fraud, and litigation deterrence management.

I am fluent in Spanish.

Education and certifications
• California State University, San
Marcos, B.S. in Business
Administration with a
concentration in Accounting
• Certified Public Accountant,
California, New York, and Puerto
Rico
• Certified Fraud Examiner, U.S.
• Chartered Global Management
Accountant

Associations
• American Institute of Certified
Public Accountants
• California Society of CPAs
• Association of Certified Fraud
Examiners

Proposed role and responsibilities
• Strategic Leadership
o Develop and execute the firm’s
innovation strategy in
alignment with overall
business objectives
o Identify emerging trends,
technologies and
opportunities that can
enhance the firm’s competitive
advantage
• New Service Development
o Identify and develop new
service offering to address
emerging client needs and
market opportunities
o Collaborate with service line in
the execution of strategic
innovation projects and
programs
[email protected] +1 (858) 792-2210

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 43

Christina Guan, CPA, CFE, CGMA
Partner
How I deliver value to you …
Being an auditor often feels akin to detective work, and there's nothing I relish more than cracking a tough case for you. My "fieldwork" encompasses financial statement audits, evaluating organizational structures, offering recommendations to fortify your internal controls, and assisting in compliance with government contracts and regulations.

My experience
I lend my audit and accounting experience to companies in all stages of development and with both domestic and international operations. I provide assurance solutions and review reports in compliance with generally accepted accounting principles (GAAP) and professional auditing standards, and I work on planning and performing attestation engagements in accordance with GAAP, GAGAS, and Uniform Guidance.

In addition, I thrive on accounting and financial reporting matters surrounding complex transactions like public offerings, reverse mergers, debt and equity financings, share-based compensation, business combinations, and joint ventures. I enjoy helping you with government contract accounting issues and take responsibility for coordinating planning and reporting to achieve your specific delivery deadlines.

I am fluent in Mandarin and Cantonese, and I employ my leadership role in contributing to MGO’s business development efforts in Asia.

Education and certifications
• Sacramento State University,
B.S., Accounting
• Certified Public Accountant,
California
• Certified Fraud Examiner
• Chartered Global Management
Accountant

Associations
• American Institute of Certified
Public Accountants
• California Society of CPAs
• Association of Certified Fraud
Examiners
[email protected]
+1 (858) 792-2210

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 44

Michael W. Christian, CPA
Partner
How I deliver value to you …
I am more than an accountant; I am a trusted advisor to the clients I serve in emerging industries, including technology, biotechnology, construction, and manufacturing. The experience I gained serving as an officer in the U.S. military, shaped my disciplined, honest, and ethical approach to meeting your business needs.

My experience
As the partner-in-charge of employee benefit plan audits in our Employee Benefit Plan practice, and a member of our technology industry growth team, I serve clients in multiple industries. I focus my practice primarily on manufacturing and distribution, technology, biotechnology, and construction.

To address your business challenges, I use a full-service, consultative approach and leverage the knowledge and skills of my many contacts in banking, private equity, and community groups to provide value to you.

My key strengths include registration statements and IPOs, and I’m skilled at private equity group transactions and business combination accounting (ASC 805).

Education and certifications
• Humboldt State University, B.A.,
Business Administration with
emphasis in Accounting
• Certified Public Accountant,
California and Texas

Associations
• American Institute of Certified
Public Accountants
• California Society of CPAs
• ProVisors Austin
• Association for Corporate Group
Austin and San Antonio
[email protected]
+1 (714) 349-5599

MEET OUR PRACTITIONERS

© Macias Gini & O’Connell LLP | 45

Scott P. Johnson, CPA, CGMA
Partner
How I deliver value to you …
As a leader in government consulting services, I bring value to government entities by seamlessly managing municipal finances, investments, debt, and budgets. My team and I have received numerous state and national excellence awards for our dedication to the public sector.

My experience
Every day, I am honored to leverage the extensive knowledge gained during my more than 30 years of experience in high-level organizational management and local government leadership to guide multi-billion-dollar entity operations in California and beyond.

In addition to serving government entities, I have also served on statewide boards and as a member of numerous national and state associations in the industry. I enjoy learning and sharing my knowledge and often present on meaningful, timely topics, including strategies for mitigating municipal employee fraud, navigating IT system implementation challenges, and establishing responsible cannabis regulations.

Throughout my career, I am proud to have served in a variety of positions, including the assistant city manager for Concord, California; the assistant city administrator for Oakland, California; the director of finance for San José and Milpitas, California; the controller treasurer for Santa Clara County; and the assistant finance director for the City of Santa Clara, California.

Education and certifications
• California State University, Hayward
School of Business, B.A. in Business
Accounting
• Certified Public Accountant,
California
• Chartered Global Management
Accountant

Associations
• American Institute of Certified Public
Accountants
• California Society of CPAs
• Government Finance Officers
Association of the United States and
Canada
• California Society of Municipal
Finance Officers, board member
• Municipal Treasurers Association of
the United States and Canada
• California Municipal Treasurers
Association
• International City/County
Management Association
• Association of Government
Accountants
• Accounting Association, CSEB Alumni
Association Certifications
• Jacob’s Heart-Children’s Cancer
Association, advisory board member

Proposed role and responsibilities
• Help shape the project approach by
aligning consulting and audit
methodologies with the unique
needs of the public sector.
• Support solution design for identified
risks and opportunities specific to
government entities.
• Provide insights to drive operational
improvements, financial controls, or
performance measurement systems.

[email protected]
+1 (408) 250-0906

MGO & You

We’re excited to explore the opportunities.

Kyle O’Rourke, MPA, CIA, CRMA, CGAP
Partner
+1 (818) 436-4196
KOrourke.com
mgocpa.com

CITY OF VALLEJO, CALIFORNIA

FINANCE DEPARTMENT

REQUEST FOR PROPOSALS FOR

AUDIT SERVICES

RFP Issued July 30, 2025
Proposals Due
September 23, 2025 by 5:00 p.m.

Must be submitted through the City of Vallejo’s
PlanetBids Vendor Portal
(see detailed instructions in RFP)

TABLE OF CONTENTS
NOTICE INVITING PROPOSALS TO PROVIDE AUDIT SERVICES ............................. 2 PART 1 – GENERAL INFORMATION ............................................................................. 2 A. INTRODUCTION ............................................................................................................................................ 2 B. PUBLIC INFORMATION .................................................................................................................................. 3 PART 2 – SCOPE OF SERVICES .................................................................................. 3 A. CONTRACTOR RESPONSIBILITIES .................................................................................................................. 4 B. AUDIT ENGAGEMENTS .................................................................................................................................. 5 C. DELIVERABLES .............................................................................................................................................. 6 D. CITY RESPONSIBILITIES.................................................................................................................................. 7 PART 3 – FORMAT OF PROPOSAL .............................................................................. 8 A. TRANSMITTAL LETTER WITH EXECUTIVE SUMMARY ..................................................................................... 8 B. PERSONNEL, QUALIFICATIONS, & REFERENCES ............................................................................................. 8 C. APPROACH, SCOPE, &TIMELINE .................................................................................................................... 8 D. FEE PROPOSAL .............................................................................................................................................. 8 PART 4 – PROPOSAL REQUIREMENTS AND INSTRUCTIONS .................................. 9 A. PROPOSAL PROCESS &TIMETABLE ................................................................................................................ 9 I. TIMETABLE ...................................................................................................................................................... 9 II. EVALUATION CRITERIA .................................................................................................................................. 10 PART 5 – TERMS & CONDITIONS .............................................................................. 11 ATTACHMENT A .......................................................................................................... 14 SAMPLE PROFESSIONAL SERVICES AGREEMENT .......................................................... Error! Bookmark not defined.

EXHIBIT A SCOPE OF WORK ...................................................................................................................................... 1 EXHIBIT B COMPENSATION ....................................................................................................................................... 1 EXHIBIT C INSURANCE REQUIREMENTS .................................................................................................................... 1

NOTICE INVITING PROPOSALS TO PROVIDE

COMPREHENSIVE AUDIT SERVICES
The City of Vallejo (referred to hereafter as “City”) is requesting proposals for Comprehensive Audit Services as described in the attached RFP. The intent of this RFP is to endeavor to use the services of the selected audit firm to evaluate all cost of services provided and examine whether a reasonable relationship exists between the cost of providing services and current service fees, while ensuring compliance with applicable statutory requirements. However, the comprehensive audit services agreement shall not be an exclusive contract, nor shall the contract preclude the City of Vallejo from obtaining services from any other qualified audit firm, at the discretion of the City. The City reserves the right to modify the activities, timeline, or any other aspect of the process at any time, as deemed necessary.

All proposals must be submitted electronically through the City of Vallejo’s PlanetBids Vendor Portal by no later than 5:00 PM PST, Monday September 23, 2025. No proposals will be accepted after that date and time.

Requirement to Meet All Provisions. Each person or firm submitting a proposal (proposer) shall meet all the terms and conditions of this Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications.

Upon delivery, each proposal will be subject to all applicable open records laws, including but not limited to, the California Public Records Act. The City of Vallejo makes no assertions that it can or will hold any information provided to it in confidence. Firms submitting proposals agree to hold the City of Vallejo harmless if such information is released, knowingly or not.

The City of Vallejo encourages the participation of small businesses, minority -owned businesses, and women-owned businesses.

Thank you for your interest.

PART 1 – General Information
A. INTRODUCTION
The City of Vallejo (City) invites qualified audit firms ("Proposers”) to submit proposals for providing a comprehensive audit to the City based upon the scope of work contained in this Request for Proposals (RFP).

The City of Vallejo, a charter city located in Solano County, was incorporated in 1868 and has a population of approximately 125,000 residents. The City operates under a Council- Manager form of government in which the City Manager recommends policy, progra m, and budget priorities to the City Council, who in turn develops legislation and policies to direct the City. The City provides a wide range of municipal services, including public safety (police and fire protection), a municipal water system, street mai ntenance and

other public works infrastructure functions, housing assistance, golf courses, planning, building inspection, public marina, and general administration.

The City of Vallejo will not reimburse Proposers for any expenses incurred in preparing proposals in response to this request or for attending any meetings or conferences related hereto.

The final award will not be based solely on price but a combination of price and evaluation by the City of services offered.

B. PUBLIC INFORMATION
All proposals submitted and information included therein or attached thereto shall become public records upon their delivery to the City of Vallejo. The City of Vallejo reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected.

PART 2 – SCOPE OF SERVICES
This section sets forth an outline of the services which the City anticipates the successful Proposer to perform. The outline will be used to compare proposals. The precise scope of services to be incorporated into the service agreement will be based upon the RFP as well as the responses prepared by the Proposers and may be subject to negotiations between the City and the successful Proposer.

The requested comprehensive audit may include, but is not limited to, the following:
 The City is seeking the professional services of an experienced contractor to conduct a variety of audit and risk assessment services, on an as -needed basis, in response to requests from the City Council. The audit services could include financial, compliance, operational, investigative, or other performance audits.  The audits should entail objective and systematic examination of evidence to include budget documents, financial reports, policies and procedures, and the municipal code to provide an independent assessment of the and management of a program or function against objective criteria.
 The audits may entail a broad or narrow scope of work, apply a variety of methodologies, and involve various levels of analysis, research, or evaluation. The work will be summarized in a report with findings, conclusions, and recommendations.

A presentation to the City Council may be requested.
 The audits could encompass a wide variety of objectives, including assessing program effectiveness and results, economy and efficiency, internal control, compliance with legal or other requirements or other analysis.
 The audits will provide information to improve program operations and facilitate decision making by parties with responsibility to oversee or initiate corrective actions and improve public accountability.

A. CONTRACTOR RESPONSIBILITIES

1. Maintain a pool of highly qualified auditors at all levels (Associate, Senior, Manager, Partner) assigned to provide professional services to meet the City’s audit efforts.

2. Notify the City in writing of any changes of staffing from those listed in the contract.

The City will not compensate the contractor for hours incurred to train unfamiliar staff members assigned.

3. At the request and direction of the City, use experienced auditors to develop audit plans and engagement proposals, to be approved by the City in the form of Engagement Task Orders.

4. Execute fully defined Engagement Task Orders that deliver the agreed audit services to the City’s approval.

5. Conduct a risk assessment that considers all functions, strategic initiatives, and capital projects including but not limited to financial, operational, strategic, information technology and cybersecurity, and other key risks. Risks should be ranked on likelihood and impact, with high and moderate risk areas being included in the audit plan.

6. Provide resource management of audit services, including related reporting, under the direction of the City.

7. Work with the City to remain cost conscious of task orders, remaining within the budget constraints of the City.

8. Maintain a set of intellectual materials (studies, white papers, opinions, recommendations, strategies, plans, approaches, policies and practices, a knowledge database, applied experience documentation, organizational technology, relationships, professional skills, etc.) to support audit services and make the material available for use by the City.

9. Conduct the work under applicable professional standards, including:
 Federal and State rules and regulations,
 Generally Accepted Government Auditing Standards (GAGAS i.e., the “Yellow Book”),
 Standards for the Professional Practice of Auditing and Local Governmental Units,
 The latest American Institute of Certified Public Accountants (AICPA) industry guide: Audits of State and Federal and California State rules and regulations,  Government Accounting, Auditing, Financial Reporting (GAAFR),  The Federal Information System Controls Manual,
 The National Institute of Standards and Technology (NIST),  The Institute of Internal Auditors (IIA),

 Information Systems Audit and Control Association (ISACA),  International System Security Certification Consortium,  Committee on Sponsoring Organizations (COSO),
 Other applicable regulations or guidelines.

B. AUDIT ENGAGEMENTS
The awarded contractor must be able to conduct a wide variety of audit engagements, in accordance with the following provisions. Because of critical time considerations, efficiency, or other circumstances, the District reserves the right to modify these provisions when it is in the best interest of the District.

1. The contractor shall not commence the service for any project until a task order has been executed and a Notice to Proceed has been issued for that project.

2. For each task or audit assigned, the contractor shall submit for approval before field work commences: an audit plan with detailed audit steps, personnel assignments, an estimate of hours, total cost, and dates for completing various audit milestones and deliverables. If during an audit, the contractor reasonably determines that the hours to complete the task will exceed the originally approved estimated hours, the contractor must submit a written request to approve the additional time. The contractor’s wri tten request must include all reasons for the additional time, as well as the new estimate of hours to complete the task.

3. The contractor shall arrange the entrance conference that is attended by the contractor and City staff identified by the City.

4. The contractor and designated City staff shall have periodic progress meetings during the audit. The contractor should submit a status report monthly.

5. The contractor shall prepare a draft report based on the findings identified during fieldwork. The findings must be fully documented in the contractor’s work papers.

The contractor must produce audit reports and other deliverables of exceptionally high quality.

6. The contractor shall send the draft report to the designated City staff for review and comment.

7. The contractor shall arrange an exit conference with appropriate City staff. At the exit conference, the auditee will be requested to provide a written response to the draft report within a specified time frame to the contractor, with a copy to the City.

This response shall be communicated electronically and in hard copy.

8. The contractor, in conjunction with the designated City staff, will review the auditee’s response to determine if a rebuttal is warranted.

9. If a rebuttal is warranted, the contractor shall prepare it and include it after the auditee’s response.

10. The contractor shall incorporate the auditee response into the final report.

11. The contractor shall invoice the City when each deliverable has been accepted.

Typical deliverables include the audit plan, the draft audit report, and the final audit report. An itemized listing of hours spent on the project is to accompany the deliverables to the City.

12. The contractor shall provide a hard copy and an electronic copy of the final audit report.

13. The contractor shall perform engagement management and maintain related records and reports of its that include on- time milestones, within budget measurement, Client value indicator, lost time measurement, and client satisfaction survey results.

14. On a periodic basis, the contractor will follow up on corrective action plans developed for each audit activity. This will be done on a semi-annual basis, or more frequently for action items with higher priorities. The contractor will review evidence of the remediation and ‘close’ items on the tracking list and Council dashboard.

15. In the event of the contractor’s failure to comply with the established date of completion, the City reserves the right to make an open market purchase of the services. In addition to other remedies that are available to the District, the District may seek damages from the contractor in terms of the difference between the costs to the City had the contractor performed the service and the actual costs incurred to complete the services.

16. Any project placed prior to but not completed by the expiration date of the contract, will be completed by the contractor with all compensation and provisions of the contract still in force and effect until completion.

C. DELIVERABLES

1. The contractor shall prepare and submit audit plans and audit reports. Audit reports shall be tailored to the requirements of the specific audit. However, reports will include but will not be limited to these sections:
 Executive Summary,
 Background,
 Objectives, Scope and Methodology,
 Findings,
 Recommendations, and
 Auditee Response

2. Reports are to be prepared in a clear and concise manner. Detailed information is to be included in the body of the findings. When preparing the findings section in the audit report, the first sentence of each finding is to contain a synopsis of the finding, followed by detail information to fully support the finding.

Recommendations are to be fully supported by and consistent with the findings.

3. The contractor will provide to the City a hard copy, as well as an electronic copy of the final report. The contractor will provide, in certain cases, a copy of the final report cross indexed to the contractor’s work papers, when requested.

4. The City will not compensate the contractor for time spent on revisions due to incorrect and/or poorly prepared written deliverables. When assigned a project, the contractor is to report monthly the hours used on the project and agreed indicators.

With the submission of the deliverable, the contractor is to submit an itemized listing of hours with dates and descriptions of time utilized, and with the corresponding contractor personnel names to determine the number of hours used for the project to date and related level indicators.

5. Work papers are to clearly document interviews, audit steps, results of audit steps, audit findings and other relevant documentation. The City shall retain the audit work papers. At the time the contractor submits their draft report, the City shall have the right to review the contractor’s work papers. Should the City reject a report, the contractor will be notified in writing of such rejection giving the reason(s). The right to reject a report shall extend throughout the term of the contract, and thereafter, if applicable, until completion of the audit and acceptance by the City.

6. Upon completion of the final report, the contractor may be requested to provide a presentation to the City Council and/or Finance Director on key findings and recommendations.

D. CITY RESPONSIBILITIES

1. For each engagement, the City responsibilities include, but are not limited to, the following:
 Providing the Engagement Task Orders.
 Approving the audit plan, including objectives, scope, and methodology, as prepared by the contractor.
 Commenting, reviewing and approving engagement letters.  Notifying the contractor to proceed with the assignment.  Conducting periodic progress meetings with the contractor, including level indicators.
 Assigning additional work based on information obtained during the preliminary work.
 Acting as a mediator between the auditee and the contractor.  Reviewing the contractor’s draft audit report (or other engagement product) and providing comments on the draft.
 Reviewing the final draft report and notifying the contractor to finalize the audit report.
 Participating in management activities and client surveys as appropriate.

 Approving the contractor’s invoice for payment.

2. The contractor will be given access to records of the City, and reasonable access to the staff for the purpose of interviews and the verification of items within the terms of the audits. It is expected that the contractor will organize the work in such a way as to minimize disruption of work of the City employees in the pursuit of their normal duties.

PART 3 – FORMAT OF PROPOSAL
The purpose of the proposal is to demonstrate the qualifications, competence, and capacity of the Proposer to provide the services described in this RFP. The Proposer should demonstrate the qualifications of the Firm and of the staff to be assigned to the City. Responses to this solicitation should contain the following information:

A. TRANSMITTAL LETTER WITH EXECUTIVE SUMMARY
The letter should address the Proposer's willingness and commitment, if selected, to provide the services, and why the Proposer believes it should be selected. The letter should be signed by the responsible person who will be assigned to the City's account.

B. PERSONNEL, QUALIFICATIONS, & REFERENCES
Names, qualifications, proposed roles, office location(s), and availability of the principal personnel who would be assigned to perform the services described in this RFP must be provided. The primary person(s) who would be responsible for managing the relationship with the City.

The Firm shall state its qualifications and provide the names and contact information for individuals from a minimum of three (3) municipal entities for which the Firm has provided services, as relevant to this RFP, who would be willing to serve as references for the Firm and the individuals who would provide services to the City. The City reserves the right to contact any organizations or individuals listed.

C. APPROACH, SCOPE, &TIMELINE
Provide a proposed approach and projected timeline to conduct and complete the steps in the Scope of Services. Briefly describe the methodology and organizational approach the firm would use to assist the City, including critical elements and special methodologies that would be used to ensure that City objectives are satisfied.

D. FEE PROPOSAL
The Fee Proposal shall include the basis/bases of compensation for services rendered.

If it is hourly, provide a schedule of rates for the personnel proposed to be involved in the engagement. If fixed, indicate the amount for the service. If transaction based, indicate the rate structure. If other types of compensation are proposed, provide enough information to enable evaluation of the cost for the specified services. Specify what costs, if any, are to be reimbursed.

PART 4 – PROPOSAL REQUIREMENTS AND INSTRUCTIONS
A. PROPOSAL PROCESS &TIMETABLE
The City has developed a timeline for the RFP that considers the amount of effort required for the proposers to respond and satisfactory time for the City to carefully review the responses and ensure each proposal is reviewed thoroughly on its merits and c ost efficiency. The City reserves the right to alter the schedule at any time. Detailed below are the steps of the submission and review process.

I. TIMETABLE

DATE ACTIVITY
July 30, 2025 Release RFP to potential proposers
August 20, 2025 Deadline for Submission of Questions
August 27, 2025 Responses to Questions distributed/published September 23, 2025 Proposals due from potential proposers Week of October 7,
2025 Presentations/interviews by finalist firms
October 9, 2025 Selection of Comprehensive Audit Services Provider
October 2025 City Council Approval/Award of Contract

The above dates are tentative and are subject to change, as necessary.

1. Deadline for Submission of Questions
All questions or requests for clarification about this RFP should be submitted by email by 5:00 p.m. Pacific Time, on or before August 20 , 2025, to the following address: [email protected]. The City will provide written responses to questions from prospective Proposers no later than August 27 , 2025.

Answers to questions received will also be posted online at http://www.ci.vallejo.ca.us/city_hall/departments___divisions/finance/finance_

document_library/. It is the proposer’s responsibility to ensure that they access and review any questions and answers posted. The City is not responsible for notifying individual potential bidders of the availability of questions and answers beyond this notice.

The City may post Addendums to the RFP online at the City’s website (http://www.ci.vallejo.ca.us/city_hall/departments_divisions/finance/finance_d ocument_library/). It is the potential proposer’s responsibility to access any addendums and ensure that stated requirements are met.

2. Proposal Due Date, Time & Location
 Due Date: September 23, 2025
 Time: 5:00 P.M. PST
 Location: Proposals must be submitted electronically through the City of Vallejo’s PlanetBids Vendor Portal.

Any proposals received later than this time will not be considered. The proposal must be signed in the name of the proposing firm or individual and must bear the signature of a person authorized to sign the proposal. Include the primary office address, the office telephone number, and email address of the firm representative qualified to answer questions that may arise during the review process.

3. Proposal Review & Notification
A City of Vallejo audit services review committee will evaluate all proposals which were accepted but reserves the right to reject any and/or all proposals to best serve its interests. It is anticipated that the proposal review process will be completed by September 30, 2025. Those firms which have been selected for further consideration will be notified of an interview date (tentatively scheduled for the week of October 7, 2025).

Upon completion of the review of the proposals, the Committee reserves the right to negotiate the final terms and conditions with the proposer selected by the Committee. In the event the Committee is unable to execute a contract with that proposer, the Committee reserves the right to negotiate with the proposer submitting the next best proposal, without completing a new proposal process.

4. Contract Approval/Award Date
Award of a contract for comprehensive audit services will take place tentatively in October 2025, upon approval by the City of Vallejo City Council. The contract shall become effective immediately upon execution by all parties.

II. EVALUATION CRITERIA
All responses will be evaluated based on the information requested herein.

The evaluation criteria will include, but not be limited to the following: (in random order):

1. Company Qualifications, Experience, & References
The firm’s experience in providing services to the public sector as well as dedicated resources and personnel.

2. Client Relationship Manager & the Team
Firm staff is experienced and qualified. Firm provides single staff contact for comprehensive audit services.

3. Ability to Provide Required Services & Meet All Requirements of This RFP Firm must show the firm’s capability to provide the required services.

4. Cost of Services
Firm provided easily understood and competitive fee schedule.

5. Social Responsibility (Recent & Pending Enforcement Actions, Consumer Practices)
Firm’s commitment to corporate social responsibility and good consumer practices.

The City will utilize the above evaluation criteria as a general guideline for the evaluation of the responses to this RFP. However, the final decision to award a contract will be based upon many factors. No single factor will determine the final decision to award.

The City will consider only those proposals which have been considered responsive to this RFP. Any proposal which fails to meet the requirements of this RFP will be considered non- responsive and may be rejected. The City may also contact the Proposer’s ref erences, contact any Proposer to clarify any response, contact any current users of a Proposer’s services, solicit information from any available source concerning any aspect of a proposal, and seek and review any other information deemed pertinent to the evaluation process. The City shall not be obliged to accept the lowest priced proposal but shall recommend such proposal that is the most qualified, responsive and cost -effective proposal and in the best interest of the City.

PART 5 – TERMS & CONDITIONS
During the performance of the work, the Proposer agrees as follows:

1. The Proposer will not discriminate against any employee or applicant for employment because of race, religion, color, sex, disability, or national origin except where religion, sex, disability, or national origin is a bona fide occupational qualification r easonably necessary to the normal operation of the Proposer. The Proposer agrees to post in a conspicuous place, available to employees and applicants for employment, notices setting forth provisions on this nondiscrimination clause.

2. The Proposer, in all solicitations or advertisements for employees placed by or on behalf of the Proposer, will state that such Proposer is an equal opportunity employer.

3. Notices, advertisements, and solicitations placed in accordance with federal law, rule or regulation will be deemed sufficient for the purpose of meeting the foregoing requirements.

4. The Proposer, by signing the proposal, certifies that it does not and will not during the performance of the work violate the provisions of the Federal Immigration Reform and Control Act of 1986, which prohibits employment of undocumented immigrants.

Upon approval by the Vallejo City Council, the contract with the Proposer will be for an initial term of three (3) years, terminable without cause by either party at any time upon thirty (30) days' prior written notice.

The City of Vallejo reserves the right to request clarification and additional information from respondents.

The City of Vallejo reserves the right to reject all proposals and to select the proposal that, in its best judgment, best accomplishes the purpose of the request.

All proposals are subject to the provisions of the California Public Records Act, California Government Code section 6250 et seq., and any information submitted with a response is a public record subject to disclosure to a member of the public upon request.

All proposals submitted and information included therein or attached thereto shall become public records upon their delivery to the City of Vallejo. The City of Vallejo reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected.

Any cost incurred by the Proposer in preparation, transmittal, presentation of any proposal or material submitted in response to this RFP shall be borne solely by the Proposer. Any cost incurred by the Proposer for set up and demonstration or for interviews shall be borne solely by the Proposer.

The City reserves the right to request Best and Final Offers from any or all Proposers.

This will be the only opportunity to amend or modify proposals based on feedback from the City. Information from competing proposals will not be disclosed to other Proposers prior to submission of a Best and Final Offer.

This agreement shall be awarded to the Proposer or Proposer whose proposal is best qualified, taking into consideration the evaluation factors. The most qualified proposal may or may not have received the most points or be the lowest cost proposal. Proposers will be notified when the award is being made, or an award recommendation goes to the City Council for approval.

The City of Vallejo reserves the right to:
 Reject any and/or all Proposals received.
 Issue a subsequent RFP.
 Cancel the entire RFP.
 Remedy technical errors in the RFP process.
 Negotiate with any, all or none of the respondents to the RFP.

 Accept the written Proposal as an offer.
 Waive informalities and irregularities in any proposal.  Accept one or more Proposals.

In addition, the City of Vallejo reserves the right, during the negotiation process, to adjust the scope of services, alter the method and time frame for completion of services, and/or alter the costs of the services so long as the changes are mutually agr eed upon and are in the best interests of the city.

This RFP does not commit the City of Vallejo to enter a Contract, nor does it obligate the City to pay any costs incurred in preparation and submission of Proposals or in anticipation of a Contract.

ATTACHMENT A

SAMPLE CONSULTANT AND PROFESSIONAL SERVICES

AGREEMENT
If a contract is awarded, the selected Firm(s) will be required to adhere to a set of general contract provisions which will become a part of any formal agreement. These provisions are general principles which apply to all contractors/service providers to the City of Vallejo.
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This Consultant and Professional Services Agreement ("Agreement") is made at Vallejo, California, dated for reference this _____ day of October, 2025, by and between the City of Vallejo, a municipal corporation ("City"), and ________________________, hereinafter referred to as “Consultant”, who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide the City professional services as specified in Exhibit A, entitled “Scope of Work.”

2. Payment. City shall pay Consultant for services rendered pursuant to this Agreement at the times and in the manner set forth in Exhibit B, entitled “Compensation.” The payments specified in Exhibit B shall be the only payments to be made to Consultant for services rendered pursuant to this Agreement.

3. Facilities and Equipment. Consultant shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement.

4. Indemnification. Consultant shall indemnify, hold harmless, and defend City, its officers, officials, directors, employees, agents, volunteers and affiliates and each of them from any and all claims, demands, causes of action, damages, costs, expenses, actual attorney’s fees, consultant’s fees, expert fees, losses or liability, in law or in equity, of every kind and nature whatsoever arising out of or in connection with Consultant’s operations, or any subcontractor’s operations, to be performed under this agreement for Consultant’s or subcontractor’s tort negligence including active or passive, or strict negligence, including but not limited to personal injury including, but not limited to bodily injury, emotional injury, sickness or disease, or death to persons and/or dama ge to property of anyone, including loss of use thereof, caused or alleged to be caused by any act or omission of Consultant, or any subcontractor, or anyone directly or indirectly employed by any of them or anyone for the full period of time allowed by th e law, regardless to any limitation by insurance, with the exception of the sole negligence or willful misconduct of the City.

Consultant shall also indemnify, hold harmless, and defend City, its officers, officials, directors, employees, agents, volunteers and affiliates and each of them from any and all

claims, demands, causes of action, damages, costs, expenses, actual attorney’s fees, consultant’s fees, expert fees, losses or liability, in law or in equity, of every kind and nature whatsoever arising out of or in connection with Consultant’s operations, or any subcontractor’s operations, related to costs or benefits associated with California Public Employment Retirement System (CalPERS) membership where Consultant supplies a CalPERS member who CalPERS determines is subject to enrollment.

The provisions of this Section are not limited by the insurance provisions of this Agreement.

The provisions of this section shall survive the completion of services, expiration or termination of this Agreement.

5. Insurance Requirements. Consultant agrees to comply with all the Insurance Requirements set forth in Exhibit C, entitled “Insurance Requirements for Consultant” .

Failure to maintain required insurance always shall constitute a default and material breach.

6. Accident Reports. Consultant shall immediately report (as soon as feasible, but not more than 24 hours) to the City Risk Manager any accident or other occurrence causing injury to persons or property during the performance of this Agreement. The report shall be made in writing and shall include, at a minimum: (a) the names, addresses, and telephone numbers of the persons involved, (b) the names, addresses, and telephone numbers of any known witnesses, (c) the date, time, and description of the accident or other occurrence.

7. Conflict of Interest. Consultant warrants and represents that to the best of its knowledge, there exists no actual or potential conflict between Consultant’s family, business, real property or financial interests and the services to be provided under this Agreement. Consultant shall comply with the City of Vallejo Conflict of Interest Code and not enter into any contract or agreement during the performance of this Agreement which will create a conflict of interest with its duties to City under this Agreement. In the event of a change in Consultant’s family, business, real property, or financial interests occurs during the term of this Agreement that creates an actual or potential conflict of interest, then Consultant shall disclose such conflict in writing t o City. Every individual who performs services on behalf of Consultant pursuant to this Agreement must file a full Statement of Economic Interests (also known as Form 700) with the City Clerk if the work of the individual involves making a governmental dec ision whether to issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; authorizes the City to enter into, modify, or renew a contract; grants City approval of specifications for a contract; adopts or approves for the City any policy, standard or guideline; lobbies on behalf of the City, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code.

8. Independent Contractor. Consultant is an independent contractor. Neither

Consultant nor any of Consultant’s officers, employees, agents, or subcontractors, if any, is an employee of City by virtue of this Agreement or performance of any services pursuant to this Agreement. City shall have the right to control Consultant only insofar as the results of Consultant’s services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes services pursuant to this Agreement.

9. Licences, Permits, Etc. Consultant represents and warrants to City that all consultant services shall be provided by a person or persons duly licensed by the State of California to provide the type of services to be performed under this Agreement and that Consultant has all the permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant represents and warrants to City that it shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice its profession.

10. Business License. Consultant, and its subcontractors, has obtained or agrees to apply prior to performing any services under this Agreement to City’s Finance Department for a business license, pay the applicable business license tax and maintain said business license during the term of this Agreement. The failure to obtain such license shall be a material breach of this Agreement and grounds for termination by City. No payments shall be made to Consultant until such business license(s) has been obtained.

11. Standard of Performance. Consultant shall provide products and perform all services required pursuant to this Agreement in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised und er similar conditions by a member of Consultant’s profession currently practicing in California.

Consultant is responsible for making an independent evaluation and judgment of all conditions affecting performance of the work, including without limitation applicable federal, state, and local laws and regulations, and all other contingencies or considerations.

Consultant’s responsibilities under this section shall not be delegated. Consultant shall be responsible to City for acts, errors, or omissions of Consultant’s subcontractors.

Consultant is responsible for making an independent evaluation and judgment of all conditions affecting performance of the work and shall prepare plans, reports, and/or other work products in such a way that additional costs will not be incurred beyond a project budget approved or amended by the City Manager or their designee.

Whenever the scope of work requires or permits review, approval, conditional approval or disapproval by City, it is understood that such review, approval, conditional approval or disapproval is solely for the purposes of administering this Agreement and determining whether the Consultant is entitled to payment for such work, and not be construed as a

waiver of any breach or acceptance by the City of any responsibility, professional or otherwise, for the work, and shall not relieve the Consultant of responsibility for complying with the standard of performance or laws, regulations, industry standards, or from liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of Consultant.

12. Force Majeure. Neither party shall be considered in default of this Agreement to the extent performances are prevented or delayed by causes or circumstances beyond either party’s reasonable control, such as war, riots, strikes, lockouts, work slowdown or stoppage, acts of God, such as floods or earthquakes, and electrical blackouts or brownouts.

If the Consultant is unable to meet the completion date or schedule of services, Consultant shall immediately inform the City Representative of this in writing. If additional time is required to perform the work, the City Representative may adjust the schedule.

13. Time is of the Essence. Time is of the essence in this Agreement. Any reference to days means calendar days, unless otherwise specifically stated.

14. Personnel. Consultant agrees to assign only competent personnel according to the reasonable and customary standards of training and experience in the relevant field to perform services under this Agreement. Failure to assign such competent personnel shall constitute grounds for termination of this Agreement.

The payment made to Consultant pursuant to this Agreement shall be the full and complete compensation to which Consultant and Consultant’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither Consultant nor Consultant’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of Co nsultant. The City shall not be required to pay any workers' compensation insurance on behalf of Consultant.

Consultant shall pay, when and as due, all taxes incurred because of Consultant’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

15. General Prohibition on Assignment of CalPERS Members and Annuitants.

Consultant shall not hire, employ, or use, as an employee, subcontractor or agent of Consultant (Assigned Individual) any California Public Employment Retirement System (CalPERS) member or annuitant in connection with the provision of services under this Agreement. Nor shall Consultant allow any of its subcontractors, agents, or other representatives to employ CalPERS members or annuitants for the purpose of performing work under this Agreement. Failure to comply with the provisions of this section shall constitute a material breach of Consultant’s obligations under this Agreement and shall be grounds for termination.

The City Manager and the Human Resources Director may together approve an exception which they determine either: (i) meets the requirements of CalPERS relating to Independent Contractors; or (ii) where such Assigned Individual who is an Annuitant, has not, and will not, exceed 960 total hours in a fiscal year (July 1 to June 30) for all CalPERS employers combined, and satisfies all other CalPERS annuitant requirements. No Assigned Individual, regardless of CalPERS membership at the time the labor is provided, may exceed 1,000 hours in a fiscal year (July 1 to June 30).

16. Consultant Not Agent. Except as authorized under this Agreement or as City may authorize in a letter of authorization signed by the City Manager or his or her designee, Consultant shall have no authority, express or implied to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, under this Agreement, to bind City to any obligation whatsoever.

17. Term. The term of this Agreement shall commence on January 1, 2025 and shall continue in full force and effect until completion of the audit services for the three (3) fiscal years ending June 30 2025; June 30, 2026; and June 30, 2027.

18. Termination or Abandonment by City. The City has the right, at any time and in its sole discretion, to immediately terminate or abandon any portion or all the services to be provided under this Agreement by giving notice to Consultant. Upon receipt of a notice of termination, Consultant shall perform no further work except as specified in the notice.

Before the date of termination, Consultant shall deliver to City all City records and documents, all work product, whether completed or not, as of the date of termination and not otherwise previously delivered.

The City shall pay Consultant for services performed in accordance with this Agreement before the date of termination. If this contract provides for payment of a lump sum for all services or by task and termination occurs before completion of the work or any defined task which according to the performance schedule was commenced before the notice of termination, the fee for services performed shall be based on an amount mutually agreed to by City and Consultant for the portion of work completed in conformanc e with this Agreement before the date of termination. In addition, the City will reimburse Consultant for authorized expenses incurred and not previously reimbursed. The City shall not be liable for any fees or costs associated for the termination or abandonment except for the fees, and reimbursement of authorized expenses, payable pursuant to this section.

19. Products of Consulting Services. The work product, including without limitation, all writings, work sheets, reports, recordings, drawings, files, detailed calculations and other work products, whether complete or incomplete, of Consultant resulting from services rendered pursuant to this Agreement, shall become the property of City.

Consultant agrees that all copyrights which arise from creation of the work under this Agreement shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. City acknowledges that its use of