AMENDMENT NO. 1 TO THE SERVICES AGREEMENT BETWEEN THE CITY OF
VERNON AND THE PUN GROUP LLP FOR PROFESSIONAL AUDITING SERVICES This Amendment No. 1 (Amendment) to the Agreement for professional auditing services dated May 16, 2023, (Agreement), is made as of May 15, 2026, by and between the City of Vernon, a California charter City and California municipal corporation (City), and The Pun Group LLP, (Contractor), a limited liability partnership.
The City and Contractor agree as follows:
RECITALS
A. The City and Contractor are parties to a written Agreement dated May 16, 2023, under which Contractor provides professional auditing services.
B. The City and Contractor desire to amend the Agreement to extend the Agreement for an additional two (2) years effective May 15, 2026, for a total amount not to exceed $270,004.00. A copy of the correspondence dated March 11, 2026, provided by Contractor is attached hereto as Exhibit A.
NOW, THEREFORE, the parties to this Amendment agree as follows:
1. The Agreement has been renewed for an additional two (2) years, and the Termination Date listed on the Cover Page and Section 4.0 of the Agreement is changed to May 15, 2028.
2. Contractor’s grand total consideration for the term of the Agreement, from May 16, 2023, to May 15, 2028, shall not exceed the amount of $655,003.00, without prior City Council approval and written amendment of the Agreement.
3. Except as expressly modified by this Amendment, all provisions of the Agreement shall remain in full force and effect.
4. The provisions of this Amendment shall constitute the entire agreement of the parties with respect to the subject matter included in this Amendment and shall supersede any other agreement, understanding, or arrangement, whether written or oral, between the parties with respect to the subject matter of this Amendment.
5. The person or persons executing this Amendment on behalf of each of the parties warrants and represents that he or she has the authority to execute this Amendment on behalf of that party and has the authority to bind that party to the performance of its obligations hereunder.
[Signatures Begin on Next Page].
The Pun Group LLP
Amendment No. 1
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date stated in the introductory clause.
City of Vernon, a California Charter City and
California municipal corporation
_______________________________
Brian Saeki, City Administrator
ATTEST:
________________________________
Genoveva Rocha, City Clerk
APPROVED AS TO FORM:
_______________________________
Zaynah Moussa-Milward, City Attorney
The Pun Group LLP, a limited liability
partnership
By:
Name:
Title:
By:
Name:
Title:
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March 11, 2026
City of Vernon
Attn: Angela Melgar, Finance Manager
Finance Department
4305 Santa Fe Avenue
Vernon, CA 90058
RE: Professional Auditing Services Contract Extension – Fiscal Years Ending June 30, 2026 and June 30, 2027 Dear Ms. Melgar:
Through our work with the City of Vernon (City), we have developed a strong understanding of the City’s operations and financial reporting processes. This familiarity has enabled us to deliver high-quality financial auditing services, enhance the efficiency of our audit approach, and provide meaningful observations that support City’s staff and operations. Throughout our engagement, we have remained responsive to the City’s needs while maintaining our commitment to delivering professional, timely, and high-quality services. It is our understanding that City has been satisfied with the services provided by our Firm.
Based on this successful working relationship, we would like to propose an extension of our Professional Auditing Services contract for the Fiscal Years Ending June 30, 2026 and June 30, 2027. Our proposed total all-inclusive maximum price for these services is presented below.
(1) If required, the Single Audit fees are based on one (1) major program. The fee for auditing additional major programs will be $5,000 each. The number of programs determined to be “major” will be based on OMB Uniform Guidance. The Engagement Team will discuss this with the City of Vernon Management before starting Single Audit work.
If City agrees with the foregoing, please sign the copy of this letter in the space provided and return it to us.
We would very much like to continue our relationship with the City of Vernon and stand ready to provide the level of service and commitment to which City has become accustomed. If you have any questions, please feel free to call me at (949) 777-8805.
Sincerely,
The Pun Group, LLP
Frances J. Kuo, CPA, CGMA | Managing Partner
Work to be performed: 2025/26 2026/27
City of Vernon ACFR Audit 64,390 $ 66,322 $
ACFR Preparation 4,371 4,502
Single Audit Report - up to 1 major program 4,644 4,783 Appropriations Limit AUP (GANN Limit Review) 546 562
Vernon Public Utilities Funds Audit (including Electric and Water) 41,058 42,290 State Controller's Report - City and Streets 5,190 5,346 Measure W 6,000
Total All-Inclusive Maximum Price $ 126,199 $ 123,805
Exhibit A
City of Vernon
Professional Auditing Services Contract Extension
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This letter correctly sets forth the understanding of the City of Vernon as described.
Acknowledged by:
_______________________________________________________ City of Vernon
_______________________________________________________ Signature
_______________________________________________________ Name and Title
_______________________________________________________ Date