HomeMy WebLinkAboutReso 26-23 Approving a Consulting Services Agreement with Badawi & Associates for Financial Auditing Services
Reso. No. 26-23, Item 4.8, Adopted 03/21/2023 Page 1 of 2
RESOLUTION NO. 26 – 23
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING A CONSULTING SERVICES AGREEMENT
WITH BADAWI & ASSOCIATES FOR FINANCIAL AUDITING SERVICES
WHEREAS, the City desires to annually have an independent audit of its financial reports ;
and
WHEREAS, best practices in municipal finance recommend that periodically agencies
should evaluate options available for the provision of audit service; and
WHEREAS, the City issued a Request for Proposals and received four responses; and
WHEREAS, a committee comprising City staff reviewed the proposals and
recommended awarding the contract to Badawi & Associates, the City’s most recent audit
firm; and
WHEREAS, Badawi & Associates provided a not-to-exceed fee proposal of $264,870
to complete City audits and specified financial reporting for a five-year period (one three-
year agreement with two one-year extensions); and
WHEREAS, City Staff recommends an additional $20,000 in contingency for
additional audit programs not listed in the scope of services.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
does hereby authorize the City Manager to execute the agreement with Badawi &
Associates and up to two one-year extensions to this agreement (attached hereto as
Exhibit A), in a contract amount not to exceed $284,870 for a five-year period, which will
be paid in annual increments described in Exhibit A.
{Signatures on the following page}
Reso. No. 26-23, Item 4.8, Adopted 03/21/2023 Page 2 of 2
PASSED, APPROVED AND ADOPTED this 21st day of March 2023, by the following vote:
AYES: Councilmembers Hu, Josey, McCorriston, Qaadri and Mayor Hernandez
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE Exhibit A
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of
Dublin
TECHNICAL PROPOSAL
For Professional Auditing Services for
the City of Dublin
For fiscal years ending June 30, 2023 through 2027.
November 30, 2022
Contact Person:
Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Phone: (510) 768-8244
Fax: (510) 768-8249
E-mail: abadawi@b-acpa.com
Exhibit D
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin
Table of Contents
Page
Letter of Transmittal ......................................................................................................................................... 1
Firm Qualifications and Experience ................................................................................................................ 3
Insurance ....................................................................................................................................................... 3
License to Practice in California .................................................................................................................... 3
Firm Qualifications ......................................................................................................................................... 3
Technical Approach ....................................................................................................................................... 4
Firm Experience ............................................................................................................................................. 5
Additional Activities ........................................................................................................................................ 5
Client Training Seminar ................................................................................................................................. 6
GASB 68 Firm Developed Tools and Assistance .......................................................................................... 6
Flowcharting Documentation ......................................................................................................................... 6
Quality Control Review .................................................................................................................................. 6
Federal or State Desk Reviews ..................................................................................................................... 9
Disciplinary Action .......................................................................................................................................... 9
Litigations ....................................................................................................................................................... 9
Partner, Supervisory, and Staff Qualifications and Experiences .............................................................. 10
Similar Engagements with Other Governmental Entities ........................................................................... 15
Understanding of Services to be Provided .................................................................................................. 19
Specific Audit Approach ................................................................................................................................ 20
Objectives of Our Services .......................................................................................................................... 20
Audit Approach ............................................................................................................................................ 20
Technical Approach ..................................................................................................................................... 21
Use of Technology in the Audit ..................................................................................................................... 24
Audit Schedule ................................................................................................................................................ 26
Discussion of Relevant Accounting Issues ................................................................................................. 29
Comprehensive Cost Bid ............................................................................................................................... 30
Conclusion ...................................................................................................................................................... 31
Appendix A ...................................................................................................................................................... 32
References ................................................................................................................................................... 32
Appendix B ...................................................................................................................................................... 33
Exceptions to the Contract ........................................................................................................................... 33
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
Letter of Transmittal
November 30, 2022
Wendy Lam
Senior Accountant
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Dear Wendy Lam:
Badawi & Associates (B&A), Certified Public Accountants (the “Firm”) is pleased to have the opportunity to
respond to your request for a proposal to provide external audit services and to submit its qualifications to
perform an independent audit of the financial statements of the City of Dublin (the “City”) for the fiscal years
ending June 30, 2023 through 2027. The objective of our audits is to issue opinions regarding the fairness of
presentation of the financial position of the City in accordance with generally accepted accounting principles.
These audits are to be performed in accordance with generally accepted auditing standards, the standards set
forth for financial audits in the Government Accountability Office’s (GAO) Government Auditing Standards, the
provisions of the federal Single Audit Act of 1984, as amended in 1996, and the Uniform Guidance, Audits of
States, Local Governments and Non-Profit Organizations, Uniform Administrative Requirements, as well as
any other applicable federal, state, local or programmatic audit requirements.
We will also perform the following as part of our engagement:
Single Audit
Measure B Audit
Measure BB Audit
Measure F Audit
GANN Limit Agreed-upon Procedures
City's State Controller's Report
Dublin Financing Authority's State Controller's Report
Annual Street Report
We will also apply limited audit procedures to Management’s Discussion and Analysis (MD&A) and required
supplementary information. In addition, we will prepare the management letter containing comments and
recommendations regarding our review and evaluation of the systems of internal control and accounting
procedures.
This proposal will highlight the background of the partners and staff assigned to the engagement, summarize
our experience in the governmental area, and describe our approach to auditing the City.
This proposal demonstrates our ability to render the quality examination and to perform the necessary
accounting and auditing services requested by the City on a timely basis.
As a partner of the Firm, I will be the primary contact for negotiation of the contract. Additionally, I have been
authorized to legally bind the Firm. You may contact me at the following address and phone number:
Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Telephone: (510)768-8244
E-mail: abadawi@b-acpa.com
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
Wendy Lam
Senior Accountant
City of Dublin
Page 2
2
We are committed to performing the required work, completing the audit, and issuing the necessary auditors’
reports.
We believe we are the best qualified to perform the audit because our audit staff includes individuals well versed
in municipal auditing and reporting requirements. We have performed auditing and consulting engagements for
numerous cities throughout California. We will be responsive to the needs of the City, we understand the City’s
operational environment, and pledge to you our complete commitment to providing a quality product that meets
the City’s requirements.
The approach to the audit has been designed to meet the audit requirements of the various authorities with the
least disruption to the City’s office operations. The foundation of the audit approach is based on communication
coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open
communication lines with all parties of the Engagement Team and City Management and staff throughout the
engagement eliminate “surprises”. Initial planning and proper assignment of duties to experienced personnel
provide for an effective and efficient audit process. Consequently, inefficiencies and disruptions are kept to a
minimum. In addition, we perform almost half of the audit tasks during the interim phase to minimize any
unforeseen delays during the year-end phase and to ensure a smooth and timely audit process.
The Firm maintains liability insurance coverage for professional liability, Workers’ Compensation, Comprehensive
General Liability and Auto as part of our comprehensive insurance policy.
The Firm is an Equal Opportunity employer and complies with all Federal and State hiring requirements. The Firm
also supports Affirmative Action philosophies and works hard to provide disadvantaged groups with opportunities
for self enhancement.
This proposal is a firm and irrevocable offer for 180 days.
We are confident that you will find our organization offers the required expertise, technical knowledge, and
business understanding to perform an audit of the City. Our past experience provides us with a thorough
understanding of the needs and requirements of the City, as well as the technical knowledge to perform such
services in accordance with the accounting and auditing guidelines as published by the various authoritative
entities.
We welcome your inquiries and look forward to further discussions with you.
Sincerely,
Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
3
Independence
The Firm is independent of the City of Dublin as defined by the GAO’s Standards for Audit of
Governmental Organizations, Programs, Activities and Functions, and the AICPA and
California State Society of Certified Public Accountants as promulgated in various auditing
and professional standards.
Insurance
The Firm maintains professional liability insurance and other coverage as part of our
comprehensive insurance policy. Upon selection as the City’s independent auditor, the Firm
and our insurance provider will provide a certificate of insurance to the City which shows the
minimum requirements identified by City have been met.
License to Practice in California
The Firm and all key professional staff assigned to the City’s audit are properly licensed to
practice as Certified Public Accountants in the State of California and comply with GAO
Government Auditing Standards.
The Firm is registered with the California State Board of Accountancy. Its State number is
COR6823.
The Firm has met all required State and local laws, rules, and regulations.
Firm Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 20 years of
experience working with state and local government with a special focus on cities. Prior to
founding B&A, Mr. Badawi was a partner with several local and national firms, where he
headed their government practice in Northern California. Mr. Badawi founded Badawi &
Associates to serve the fast-paced needs of California's local governments. The goal is to
build a proactive, client-focused culture from the ground up and to eliminate the entrenched
bureaucratic culture and intrinsic limitations of the big audit firms.
Located in Berkeley, CA, the Firm serves a variety of cities and towns throughout California
as well as conducting financial related services for numerous special districts and authorities.
Names and phone numbers of several of our current and past clients and other references are
provided for your inquiries. We encourage you to contact these individuals to obtain
information on the quality of the audit and the ability of the audit staff.
Our Berkeley office will be the Engagement Office assigned to the City.
In addition to specific City financial statements, the Firm members have also audited
numerous redevelopment agencies, public financing authorities, hospitals, housing
authorities, transportation authorities, special districts, water districts, OCJP grants, self-
insurance pools, joint power authorities and has also performed numerous compliance audits
in accordance with the Single Audit Act, childcare regulations, TOT regulations, AQMD
regulations, franchise requirements.
The Engagement Partner assigned to the City will be Mitesh Desai, CPA. Mr. Desai’s
background includes fourteen years of experience in municipal auditing. Mr. Desai has
participated in the audits of numerous governmental agencies, assisted in their efforts to
publish their Annual Comprehensive Financial Reports in compliance with GASB 34, and a
volunteer member of the GFOA Special Review Committee. Mr. Desai has also achieved the
Advanced Single Audit Certificate offered by the AICPA.
The professional staffs assigned to the Engagement are qualified and experienced. Each
individual of the Engagement Team has several years of experience and has conducted or
participated in numerous municipal audits of various sizes. Their understanding of
governmental operations and the various authoritative guidelines will provide the where-with-
all to perform the audit in an efficient and effective manner with minimal disruption to the City’s
finance department.
Firm
Qualifications
and Experience
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
4
Technical Approach
The approach to the audit has been designed to meet the audit requirements of the various
authorities with the least disruption to the City’s operations. The foundation of the audit
approach is based on communication coupled with a strong knowledge of City operations and
detailed planning at the initial stages of the audit. Open communication lines with all parties of
the Engagement Team and City Management and staff throughout the engagement eliminate
surprises”. Initial planning and proper assignment of duties to experienced personnel provide
for an effective and efficient audit process. Consequently, inefficiencies, disruptions, and lack
of understanding are kept to a minimum.
The audit approach will consist of four phases:
1) Initial Planning Meeting:
The Engagement Partner will meet with City Management to discuss the audit approach,
identify specific needs of City Management, and familiarize themselves with City policies
and practices.
2) Interim:
The Engagement Team members including the Engagement Team Partner will perform
the internal control reviews, test transactions, evaluate compliance with Single Audit Act
requirements, identify potential audit issues that need to be addressed, perform limited
confirmation procedures, and develop a clear understanding between the Engagement
Team and City Management of the year-end audit responsibilities and assignments. In
addition, we strive to complete many of the year-end audit tasks during the interim
phase to ensure a smoother audit process. We will work with the City on providing
a list of those tasks that we will target to complete during interim and work with the
City on how to complete them to minimize the amount of effort and time needed at
year-end which in turn will assist the City in meeting its goal of issuing the Annual
Comprehensive Financial Report.
3) Year-end:
The Engagement Team members including the Engagement Team Partner will conduct
validation procedures on general ledger account balances, complete confirmation
procedures, perform analytical procedures on revenue and expenditures, perform search
for unrecorded liabilities, complete compliance work on Federal Assistance, and wrap up
audit field work.
4) Reporting:
Auditor’s reports for all City reporting entities and compliance requirements will be finalized
along with Single Audit Reports and Management Letter comments. The Partner will be
available to make presentations to the City Council and/or designated bodies.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
5
Firm Experience
The Firm is located in Berkeley and provides a full range of accounting services to
governmental agencies throughout California, including audit, tax and accounting. The Firm’s
professional staff members provide the financial background and specific experience to meet
the City’s operational needs. Additionally, this situation provides the City with an auditing firm
that has depth in capabilities to address any financial issue the City may need assistance with,
and the quality audit approach that you expect.
Our Berkeley office will be the Engagement Office assigned to the City.
Firm policy requires that the Engagement Partner, during the first year of the engagement, be
actively involved in the daily fieldwork. This means to the City that Mr. Badawi will actually be
on-site during the audit coordinating the audit process, supervising the audit staff, gaining a
hands-on understanding of City processes, and benefiting the City with his broad municipal
experience. We have found that this effort benefits the City and the Firm through developing
a thorough knowledge of the City’s practices and issues and establishing a close working
relationship with the City’s Management. Additionally, continuity of audit personnel is assured
because of the hands on involvement of the Partner.
We are committed to providing appropriate and related experience, personal involvement, and
a broad business perspective to produce a quality end product within the time frames required.
The Firm provides financial and compliance auditing services to governmental agencies
throughout California. We are a governmental agency auditing firm and our professional staff
members have been performing these services for many years. As a result, we have
performed financial and compliance audits on most, if not all, types of governmental agencies
and operations including:
Cities
Redevelopment
Agencies
Financing
Authorities
Housing Authorities
Special Districts
Water Districts
Waste Management
Authorities and
Operations
Pension Plans
Child Care
Operations
Joint Power
Authorities
Investment Activities
Landfills
Enterprise Funds
Airports
Transportation
Operations
Federal and State
Grants
Additional Activities
We offer a full range of accounting and finance services to the governmental sector. These
services include:
Financial audits
Compliance audits
Tax advice
Development of financial and
accounting policies and procedures
Investment review and compliance
evaluation
Operational reviews
Technical guidance on existing and
upcoming accounting issues
Training seminars
Pension/profit-sharing plans
Performance audits
Business consulting
Consequently, Firm personnel are well qualified to perform the services expected by the City.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
6
Client Training Seminar
The Firm hosts an annual update on recent technical accounting and finance issues affecting
the governmental area. This all day session reviews new and anticipated pronouncements
from GASB, discusses future issues under consideration by GASB, reviews accounting
treatment of various transactions where issues may arise, and provides a general overview of
state and federal compliance issues. All of our clients are invited to attend, free of charge. The
one day session qualifies for CPE under the rules of the State Board of Accountancy and is
held in the Bay Area.
GASB 68 Firm Developed Tools and Assistance
The Firm has developed tools to assist our clients with preparation of GASB 68 journal entries
for the CalPERS’ Cost Sharing Plans (for which individualized actuarial valuations are no
longer prepared) and the CalPERS’ Agent Multiple Employer Plans. In addition to providing
our clients with these tools and instructions on how to use them, we are available to answer
any questions on how to prepare and complete the GASB 68 journal entries.
Flowcharting Documentation
As part of our risk assessment procedures, we prepare flowcharts for documenting our
understanding of the City’s significant accounting and financial processes. Flowcharts are
updated annually for any changes in the City’s processes and copies can be provided upon
request for the City’s internal use. Flowcharted processes may include:
Financial Reporting, Closing, and Manual Journal Entries
Cash Receipts, Billing, and Accounts Receivable/Revenues
Cash Disbursements, Purchasing, and Accounts Payable/Expenditures
Payroll and Human Resources
Quality Control Review
According to Government Auditing Standards, firms who perform audits under the Yellow Book
are required to have a peer review once every three years. We received a report with a rating
of pass with no deficiencies which we attached for your review.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
7
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
8
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
9
The Firm has policies and procedures to ensure it hires only qualified people, that it properly
supervises them and provides professional training, that it advances them to responsibilities
they are capable of handling, and that it provides them with necessary technical resources. All
members of the Firm are very familiar with the stringent quality control standards established
by the AICPA.
The Firm is a member of the AICPA Government Audit Quality Center.
The Firm is a member of the AICPA Private Companies Practice Section.
Federal or State Desk Reviews
The Firm has had no negative federal or state reviews in the past three (3) years.
Disciplinary Action
There has not been any state or federal disciplinary actions taken or pending against the Firm
nor any findings to report.
Litigations
The Firm has not experienced any lawsuits or legal actions that have been resolved or are
currently pending in the prior five years.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
10
The Engagement Team will normally consist of six individuals who provide a broad business
perspective and significant experience in governmental auditing. This team will provide access
to a wide range of technical capabilities which will provide the City with not only the technical
support necessary to perform the audit, but also the broad business background to interpret
findings and observations to offer effective solutions to issues, and the personal involvement
of the Engagement and Compliance Partners of the Firm.
The Engagement Team will be led by Mitesh Desai, CPA. Mr. Desai’s background includes
fourteen years of experience in municipal auditing. Mr. Desai has participated in the audits of
numerous governmental agencies, assisted in their efforts to publish their Annual
Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of
the GFOA Special Review Committee. Mr. Desai has also achieved the Advanced Single Audit
Certificate offered by the AICPA.
The second member of the Engagement Team will Edward Peszewski, CPA. Mr. Peszewski’s
background includes seven years of accounting and auditing experience. He has participated
in the audits of numerous governmental entities and assisted in their efforts to publish their
financial statements in compliance with various regulations, and is a volunteer member of the
GFOA Special Review Committee. Mr. Peszewski will be the Audit Senior of this engagement.
The third member of the Engagement Team will be Monica Singhai, CPA. Mrs. Singhai’s
background includes over seventeen years of experience in municipal auditing. She has
participated in the audits of numerous governmental agencies and assisted in their efforts to
publish their financial statements in compliance with various regulations. Mrs. Singhai will be
the Engagement Quality Reviewer of this engagement.
Each member of the Engagement Team participates in continuing education programs offered
by the AICPA and California State Society of Certified Public Accountants, and each has met
the continuing education requirements for municipalities. In addition, the firm offers at least 60
hours of in-house CPE annually focused mainly on municipal audits.
Engagement Partner
Mitesh Desai
CPA
Engagement Quality
Reviewer
Monica Singhai
CPA
Audit Senior
Edward Peszewski
CPA
Professional
Audit Staff
Professional
Audit Staff
Professional
Audit Staff
Partner,
Supervisory,
and Staff
Qualifications
and Experiences
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
11
Professional Development:
The Firm maintains a comprehensive training program targeted at appropriate professional
staff levels. It utilizes in-house developed educational programs, AICPA and California CPA
Foundation educational programs, and on-the-job training.
The Firm’s annual training schedule which officially begins in April for all professional staff and
administrative staff includes comprehensive in-house training sessions on such topics as:
Review of principles of accounting and financial reporting for state and local
governments
Review of governmental fund types and account groups
Review of newly issued generally accepted auditing standards and GAO auditing
standards
Review of Internal Control evaluation approaches including COSO principles
Updates on recent governmental accounting and reporting guidelines
Review of Single Audit requirements and approaches
Review of financial audit approaches
Overview of audit and internal control work paper techniques
Review of GASB reporting requirements
Review of current issues facing the governmental community
During the year, professional staff members are sent to various educational sessions
sponsored by the AICPA and California State Society of CPAs, as considered appropriate for
the level and need of the individual. These classes include, among others:
Governmental Financial Reporting Standards and Practices
Yellow Book: Government Auditing Standards
Financial Accounting Standards: Comprehensive Review
Single Audit
Governmental Auditing & Accounting Update
Governmental Accounting Principles
Comprehensive Review of Generally Accepted Auditing Standards
The result of the Firm’s training program is the production of a highly educated and competent
municipal audit group capable of performing an efficient and effective audit for the City.
The Engagement Team members will continue their professional development efforts.
Staff Retention and Continuity:
The Firm's policy on providing service to our clients includes a commitment to maintaining
continuity of audit personnel. We cannot guarantee that our staff will remain with the Firm.
However, to encourage our staff to remain with us, we pay competitive wage rates; offer
promotional opportunities; provide state-of-the-art equipment and excellent working
conditions; and offer various benefits, such as retirement plans, medical plans, profit sharing
programs, educational benefits, and other such benefits. We can also guarantee that the
partner will be involved in future years. Continuity of audit staff is of prime concern to us and
because of the hands-on involvement of the partner; we can assure you that future years’
audits will be conducted in an efficient and effective manner with qualified and experienced
professionals.
The Firm is an Equal Opportunity employer and complies with all Federal and State hiring
requirements. The Firm also supports Affirmative Action philosophies and works hard to
provide disadvantaged groups with opportunities for self enhancement.
Resumes of each member of the Engagement Team follow.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
12
Mitesh Desai, Certified Public Accountant – Engagement Partner
Length of Career
Fourteen years experience in municipal auditing with a special focus on cities
Certified Public Accountant for the State of California
Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation
Development Act audits, and housing audits
Education
BS Degree in Business Economics with an emphasis in Accounting from University of California,
Santa Barbara
Professional Activities
Member, American Institute of Certified Public Accountants
Member, California Society of Certified Public Accountants
Volunteer Member, GFOA Special Review Committee
Continuing Education
Various municipal accounting courses offered by the California Society of CPAs and local
universities including:
Governmental Financial Reporting Standards and Practices
Yellow Book: Government Auditing Standards
Municipal Accounting
Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies
Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:
Dublin X X X
Albany X
Antioch X X X
Azusa X X X X
Berkeley X X X X X
Buena Park X X X X
Calimesa X X X
Crescent City X X X X X
East Palo Alto X X X X
El Cerrito X X X X X
Foster City X X X X X
Fremont X X X X X
Lemon Grove X X
Lindsay X X X
Menlo Park X X X
Millbrae X X X X X
Newark X X X X
Oakdale X X X X
Pittsburg X X X X X
Placerville X X X X
RioVista XXXX
San Mateo X X X X X
Sebastopol X X X X
Solvang X X
Susanville X
Turlock XXX
Union City XX XX
Vacaville XXXX X
Waterford XXXX
Yountville XXX
Yuba City XX XX
Child Care Programs:
Menlo Park Child Care XX
Stanislaus County Childcare XX
Non-profits:
Housing Endowment and Regional Trust X
Special Districts and Other:
Castro Valley Sanitary District X
Cosumnes Community Services District X
Marin Municipal Water District X
West County Wastewater District XX
XX
Services Provided
Contra Costa Child Development Programs
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
13
Edward Peszewski, Certified Public Accountant – Professional Audit Senior
Length of Career
Nine years of experience in auditing.
Certified Public Accountant for the State of California.
Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation
Development Act audits, and housing audits
Education
BA, University of California, Santa Barbara
Certificate in Accounting from University of California, Berkeley - Extension
Professional Activities
Member, American Institute of Certified Public Accountants.
Volunteer Member, GFOA Special Review Committee.
Continuing Education
Various municipal accounting courses offered by the California Society of CPAs and local
universities including:
Governmental Financial Reporting Standards and Practices
Yellow Book: Government Auditing Standards
Municipal Accounting
Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies
Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:
Albany X X X
Barstow X X X
Berkeley X X X
Buena Park
Dublin X X X X
East Palo Alto X X X
El Cerrito X X X
Folsom X X
Foster City X X X X
Guadalupe X X
Lindsay X X X
Merced X X X
Oakdale X X X
Ontario X X X X
Petaluma X
Pinole X X
Scotts Valley X X
Sebastopol X X X
Susanville X X
Yuba City X X X
Towns:
Yountville X X X
Special Districts:
Aptos/La Selva Fire Protection District X
Cosumnes Community Services District X
Elk Grove Water District X
Hayward Area Recreation and Park District X
Marin County Parks X
Monterey Bay Unified Air Pollution
Control District
X
Sutter Animal Services Authority X
Sutter Butte Flood Control Agency X
Non-profits:
Building Industry Association of
the Bay Area X
Girls Incorporated of Alameda County X
Services Provided
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
14
Monica Singhai, Certified Public Accountant – Engagement Quality Reviewer
Length of Career
Seventeen years of experience in auditing with special focus on municipalities.
Certified Public Accountant for the State of California.
Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits and PFA audits
Education
Bachelor of Science in Accounting from Jabalpur University, India.
Professional Activities
Member, California Society of Certified Public Accountants.
Member, Institute of Chartered Accountants of India.
Continuing Education
Various local governments and not for profit accounting courses offered by the California Society
of CPAs and AICPA including:
Governmental Financial Reporting Standards and Practices
Yellow Book: Government Auditing Standards
Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies.
Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:
Berkeley XX X
East Palo Alto XX
Menlo Park XX X
Redwood City XX X
Special District:
Alameda County Fire District X
Alameda County Law Library X
Burbank Sanitary District XX
Lions Gate Community Service District X
Los Medanos Community Health Care District X
Oakland-Alameda County Coliseum Authority X
School District:
Bayshore Elementary School District X
Belmont-Redwood Shores School District XX X
Brisbane School District X
Jefferson Elementary School District XX
La Honda-Pescadero Unified School District XX X
Pacifica School District XX
Ravenswood City School District XX X
Redwood City School District XX
San Mateo-Foster City School District XX X
Charter schools:
Oakland Military Institute College Preparatory
Academy XX
Sacramento Valley Charter School X
West Sacramento College Prep Charter School X
First 5:
First 5 Alameda County XX
First 5 Inyo County X
First 5 Marin County X
First 5 Monterey County X
First 5 Santa Cruz County X
Others:
Alameda County Housing Community
Development Agency X X X
Alameda County Redevelopment Agency X X
Alameda County Successor Agency X
City of Oakland - Measure C X
City of Oakland - Measure Y X
City of Oakland - Child Care and
Development Program X
City of Oakland - Wildfire Prevention
Assessment District X
Services Provided
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
15
The tables below and on the following page are a partial listing of our clients similar to the City,
and illustrates the many different types of components involved in each audit engagement that
present very difficult and complex auditing and accounting challenges (in order of audit hours).
Indicates cities with population over 50,000
Indicates cities with governmental revenues over $100 million and population over 50,000
Ci
t
y
Cl
i
e
n
t
S
i
n
c
e
H
o
u
r
s
En
g
a
g
e
m
e
n
t
P
a
r
t
n
e
r
Principal Contact
An
n
u
a
l
C
o
m
p
r
e
h
e
n
s
i
v
e
Fi
n
a
n
c
i
a
l
R
e
p
o
r
t
GF
O
A
A
w
a
r
d
RD
A
S
u
c
c
e
s
s
o
r
A
g
e
n
c
y
Si
n
g
l
e
A
u
d
i
t
TD
A
Wa
t
e
r
F
u
n
d
Se
w
e
r
F
u
n
d
Ch
i
l
d
C
a
r
e
A
u
d
i
t
Ho
u
s
i
n
g
A
u
t
h
o
r
i
t
y
En
t
e
r
p
r
i
s
e
F
u
n
d
s
Pe
n
s
i
o
n
T
r
u
s
t
F
u
n
d
Richmond 2020 3,160
Ahmed
Badaw i
Delmy Cuellar
Finance Manager
510)620-6790
Delmy_Cuellar@ci.richmond.ca.us
X XXX X XXX
Berkeley 2008 1,850
Mitesh
Desai
Henry Oyekanmi
Finance Director
510)981-7300
hoyekanmi@ci.berkeley.ca.us
X XXXX X XX
Ontario 2021 1,012
Ahmed
Badaw i
Jialuan Ning
Acting Accounting Manager
909) 395-2096
JNing@ontarioca.gov
XX X XX XX
Union City 2006 850
Mitesh
Desai
Jackie Acosta
Finance Director
510)675-5345
jackiea@unioncity.org
X XXXX X
Folsom 2019 807
Ahmed
Badaw i
Stacey Tamagni
Finance Director
916)461-6712
stamagni@folsom.ca.us
XX X XX X
Petaluma 2019 691
Ahmed
Badaw i
Corey Garberolio
Finance Director
707)778-4357
cgarbero@cityofpetaluma.org
X X XXXXX
San Luis
Obispo
2019 638
Ahmed
Badaw i
Brigitte Elke
Finance Director
805)781-7125
belke@slocity.org
X X XXXX
Antioch 2005 586
Mitesh
Desai
Dawn Merchant
Finance Director
925)779-6135
dmerchant@ci.antioch.ca.us
X XXXXXX X
Lafayette 2020 586
Ahmed
Badaw i
Tracy Robinson
Administrative Services Director
925)299-3227
trobinson@lovelafayette.org
XXX X
East Palo Alto 2014 560
Mitesh
Desai
Tomohito Oku
Finance Director
650)853-3122
toku@cityofepa.org
X XXX X X
Dublin 2018 546
Ahmed
Badaw i
Lisa Hisatomi
Director of Finance & Admin. Services
925)833-6640
Lisa.Hisatomi@dublin.ca.gov
XX XX
Similar
Engagements
with Other
Governmental
Entities
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
16
Ci
t
y
Cl
i
e
n
t
S
i
n
c
e
H
o
u
r
s
En
g
a
g
e
m
e
n
t
P
a
r
t
n
e
r
Principal Contact
An
n
u
a
l
C
o
m
p
r
e
h
e
n
s
i
v
e
Fi
n
a
n
c
i
a
l
R
e
p
o
r
t
GF
O
A
A
w
a
r
d
RD
A
S
u
c
c
e
s
s
o
r
A
g
e
n
c
y
Si
n
g
l
e
A
u
d
i
t
TD
A
Wa
t
e
r
F
u
n
d
Se
w
e
r
F
u
n
d
Ch
i
l
d
C
a
r
e
A
u
d
i
t
Ho
u
s
i
n
g
A
u
t
h
o
r
i
t
y
En
t
e
r
p
r
i
s
e
F
u
n
d
s
Pe
n
s
i
o
n
T
r
u
s
t
F
u
n
d
Azusa 2017 540
Ahmed
Badaw i
Talika Johnson
Administrative Services Director
626)812-5202
tjohnson@AzusaCa.Gov
X XXX XX X
Millbrae 2015 524
Ahmed
Badaw i
Mike Sung
Finance Director
650)259-2433
msung@ci.millbrae.ca.us
X XXX XX X
Yuba City 2017 450
Ahmed
Badaw i
Spencer Morrison
Finance Director
530)822-4615
smorrison@yubacity.net
X XXX XX X
Wasco 2021 428
Ahmed
Badaw i
Isarel Perez-Hernandez
Finance Director
661)758-7230
isperez@cityofwasco.org
XXXXX
Pinole 2018 419
Ahmed
Badaw i
Markisha Guillory
Finance Director
510)724-9823
MGuillory@ci.pinole.ca.us
XXX X X
Larkspur 2019 382
Ahmed
Badaw i
Cathy Orme
Administrative Services Director
415) 927-5019
Finance@cityoflarkspur.org
XXX
Atwater 2021 380
Ahmed
Badaw i
Kellie Jacobs-Hunter
Finance Director
209)357-6347
kjacobshunter@atw ater.org
XX XX X
Waterford 2018 311
Ahmed
Badaw i
Tina Envia
Finance Manager
209)874-2328 Ext: 104
tenvia@cityofw aterford.org
XXXX
Solvang 2019 308
Ahmed
Badaw i
Xenia Bradford
City Manager
805)688-5575
xeniab@cityofsolvang.com
XX XX
Oakdale 2016 306
Ahmed
Badaw i
Albert Avila
Finance Director
209)845-3584
aavila@ci.oakdale.ca.us
XXXXX X
Guadalupe 2017 303
Ahmed
Badaw i
Lorena Zarate
Finance Director
805)356-3895
ccooper@ci.guadalupe.ca.us
XX XX X
Sebastopol 2017 275
Mitesh
Desai
Ana Kwong
Finance Director
707)824-4879
akwong@cityofsebastopol.org
XXX XX X
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
17
Ci
t
y
Cl
i
e
n
t
S
i
n
c
e
H
o
u
r
s
En
g
a
g
e
m
e
n
t
P
a
r
t
n
e
r
Principal Contact
An
n
u
a
l
C
o
m
p
r
e
h
e
n
s
i
v
e
Fi
n
a
n
c
i
a
l
R
e
p
o
r
t
GF
O
A
A
w
a
r
d
RD
A
S
u
c
c
e
s
s
o
r
A
g
e
n
c
y
Si
n
g
l
e
A
u
d
i
t
TD
A
Wa
t
e
r
F
u
n
d
Se
w
e
r
F
u
n
d
Ch
i
l
d
C
a
r
e
A
u
d
i
t
Ho
u
s
i
n
g
A
u
t
h
o
r
i
t
y
En
t
e
r
p
r
i
s
e
F
u
n
d
s
Pe
n
s
i
o
n
T
r
u
s
t
F
u
n
d
Cotati 2020 265
Ahmed
Badaw i
Angela Courter
Director of Administrative Services
707)665-4236
acourter@cotaticity.org
XX XX X
Crescent City 2014 227
Mitesh
Desai
Linda Leaver
Finance Director
707)464-7483 x224
lleaver@crescentcity.org
XX XX XX
Scotts Valley 2019 202
Ahmed
Badaw i
Selina Andrew s
Finance Manager
831)440-5614
sandrews@scottsvalley.org
XXX X
Calimesa 2013 193
Mitesh
Desai
Bonnie Johnson
City Manager
909)795-9801 ext 231
bjohnson@cityofcalimesa.net
X
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
18
The table below lists all special district engagements (in order of audit hours):
Special District
C
l
i
e
n
t
S
i
n
c
e
Ho
u
r
s
En
g
a
g
e
m
e
n
t
Pa
r
t
n
e
r
Principal Contact
An
n
u
a
l
C
o
m
p
r
e
h
e
n
s
iv
e
Fi
n
a
n
c
i
a
l
R
e
p
o
r
t
GF
O
A
A
w
a
r
d
Si
n
g
l
e
A
u
d
i
t
En
t
e
r
p
r
i
s
e
F
u
n
d
s
Florin Resource Conservation District/
Elk Grove Water District 2015 350 Mitesh
Desai
Patrick Lee
Finance Manager / Treasurer
916)685-3556
plee@egwd.org
Yes Yes X
Solano County Water Agency 2020 243
Ahmed
Badawi
Roland Sanford
General Manager
707) 455-1103
rsanford@scwa2.com
No N/A
Alameda County Waste Management
Authority (StopWaste)2018 154 Ahmed
Badawi
Jennifer Luong
Finance Services Manager
510)891-6500
jluong@stopwaste.org
No N/A
San Gabriel Valley Council of Governments 2021 618 Ahmed
Badawi
Rey Alimoren,
Director of Finance
626) 962-9292
ralimoren@sgvcog.org
No N/A X X
County of Contra Costa Community
Services Bureau Child Development
Program
2013 450 Mitesh
Desai
Nancy Benavides
Fiscal Officer
925)681-4268
nbenavidas@ehsd.cccounty.us
No N/A
Hayward Area Recreation
and Park District 2017 350 Ahmed
Badawi
Anne Maze
Interim Finance Manager
510)881-6707
maza@haywardrec.org
No N/A
Amador County
Transportation Commission 2019 260 Ahmed
Badawi
John Gedney
Executive Director
209)267-2282
john@actc-amador.org
No N/A
San Mateo Mosquito and
Vector Control District
2018 228 Ahmed
Badawi
Richard Arrow
Finance Director
650)344-8592
rarrow@smcmvcd.org
Yes Yes
Monterey Bay Unified Air
Pollution Control District 2016 200 Mitesh
Desai
Rosa Rosales
Administrative Services Manager
831)718-8019
rrosales@mbard.org
No N/A
Southern Marin Fire
Protection District 2020 160
Ahmed
Badawi
Alyssa Schiffmann
Finance Manager
415)388-8182
aschiffmann@smfd.org
No N/A
Port of San Luis
Harbor District 2017 150
Ahmed
Badawi
Kristen Stout
Business Manager
805)595-5413
kristens@portsanluis.com
Yes Yes X
Aptos La Selva
Fire District
2016 150 Mitesh
Desai
Nancy Dannhauser
Finance Director
831)685-6690
nancyd@centralfpd.com
No N/A
Central County
Fire Department 2012 150 Mitesh
Desai
Jan Cooke
Finance Director
650)375-7408
jcooke@hillsborough.net
Yes Yes
Central Fire Protection District of
Santa Cruz County 2018 150
Mitesh
Desai
Nancy Dannhauser
Finance Director
831)479-6842
nancyd@centralfpd.com
No N/A
Resource Conservation
District of Santa Cruz
County
2017 150 Mitesh
Desai
Sharon Corkrean
Director of Finance
scorkrean@rcdsantacruz.org
No N/A X
Santa Cruz
Regional 9 - 1 - 1 2016 150 Mitesh
Desai
Dennis Kidd
General Manager
831)471-1038
dennis.kidd@scr911.org
No N/A
Zayante Fire
Protection District 2017 150 Mitesh
Desai
John Stipes
Fire Chief
831) 335-5100
chief2401@cwncast.net
No N/A
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
19
The City desires an audit of the financial records for the City and an expression of an opinion
in accordance with generally accepted accounting principles on the fairness of presentation of
financial statements for the fiscal years ending June 30, 2023 through 2027.
The Firm will:
Express an opinion on the fair presentation of its basic financial statements which
includes but is not limited to the financial statements of governmental activities, the
business-type activities, each major fund and all aggregate remaining fund information
in conformity with generally accepted accounting principles in the United States of
America.
Express an in-relation-to opinion on the fair presentation of its combining and individual
non-major and fiduciary fund financial statements and schedules in conformity with
generally accepted accounting principles. The Firm will provide an “in-relation-to” report
on the supporting schedules contained in the Annual Comprehensive Financial Report
based on the auditing procedures applied during the audit of the basic financial
statements and schedules.
Provide an “in-relation-to” report on the schedule of expenditures of federal awards
based on the auditing procedures applied during the audit of the financial statements.
Perform the audit in accordance with generally accepted auditing standards accepted
in the United States of America, applicable to the financial audit contained in the
Government Auditing Standards issued by the Comptroller General of the United States
and the provisions of the Uniform Guidance, Audits of States, Local Governments and
Non-Profit Organizations.
Perform limited procedures on supplementary information required by the Government
Accounting Standards Board.
Issue the following reports, following the completion of the audit of the fiscal year’s
financial statements:
Independent Auditor’s Report on Financial Statements and Schedule of
Expenditure of Federal Awards
Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Independent Auditor’s Report on Compliance with Requirements Applicable
to Each Major Program and Internal Control over Compliance in Accordance
with the Uniform Guidance
Schedule of Findings and Questioned Costs
Auditor’s Communication with Those Charged with Governance
Annual Comprehensive Financial Report following the requirements and
guidelines of the GFOA award program
Measure B Audit
Measure BB Audit
Measure F Audit
GANN Limit Agreed-upon Procedures
City's State Controller's Report
Dublin Financing Authority's State Controller's Report
Annual Street Report
Provide special assistance to the City as needed.
Retain all working papers and reports at the audit firm’s expense for a minimum of 7
years. In addition, make working papers available to the City and/or any government
agency as appropriate.
Should any conditions be discovered requiring corrective action, the Firm will provide a
detailed description of the findings and recommended actions as to their resolution.
Understanding
of Services to be
Provided
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
20
The Firm will submit a report to the City’s Council and management detailing auditor’s
responsibility under generally accepted auditing standards, significant accounting policies,
management judgments and accounting statements, significant audit adjustments, other
information in documents containing audited financial statements, disagreements with
management, management consultations with other accountants, major issues discussed with
management prior to retention, difficulties encountered during the audit, and any significant
deficiencies or material weaknesses found during the audit. Non-material instances of
noncompliance will be reported in a separate management letter, if appropriate, along with
any other observations or recommendations determined to be informative to City
Management.
The Firm will be available to provide advice and counsel regarding significant matters during
the year.
The Firm’s Partner and Staff welcome the opportunity to make presentations to the City
Council and will be ready to respond to questions from the Council and citizens of the City.
Objectives of Our Services
The basic objective of our audit of the City is to conduct an examination of the financial
statements in accordance with generally accepted auditing standards and to express our
opinion on the fairness of presentation of such financial statements in conformity with generally
accepted accounting principles.
Additionally, we believe that another real value of our audit lies in meeting other objectives at
no additional cost. The following are other objectives of our services that have important
benefits to the City:
To offer substantive observations and recommendations relating to accounting and
operating control policies and procedures.
To identify opportunities for operating efficiencies and isolate candidate activities for
cost reduction opportunities.
To perform a professional audit in an efficient and effective way to minimize disruption
to the office operations.
To offer ongoing advisory services to assist in the running of the operation and
implementation of improved operating procedures.
The engagement will be conducted within the framework of the Firm's quality control program
which includes the use of audit programs, careful planning, use of computerized audit software
and internal control evaluation and documentation software, and objective review procedures.
On-site staff will use Firm supplied portable computers and printers.
Audit Approach
The specific audit approach has been designed to efficiently and effectively address the audit
requirements of the City, to perform the audit of the City’s financial records in a timely manner
with minimal disruptions to office operations, and to meet the City’s timeline.
The audit will be conducted in accordance with:
1) Generally accepted auditing standards established by the AICPA
2) The standards contained in Government Auditing Standards issued by the GAO
3) Provisions of the Single Audit Act and the Uniform Guidance
4) Requirements issued by the California State Controller’s office
5) Other requirements as required
Specific Audit
Approach
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
21
We will conduct the necessary audit steps to perform:
Planning of the engagement
Evaluation of the existing internal control environment to determine degree of risk of
material misstatement
Determination of degree of compliance with laws, regulations, grant provisions, and City
approved policies
Assessment of potential fraudulent issues
Validation of account balances
Verification of reasonableness of management estimates
Technical Approach
We use an industry specific audit approach tailored to governmental entities. Our
governmental audit approach addresses the special risks and circumstances of local
governments. As a result, the audit is conducted efficiently and effectively with minimal
disruption to your staff.
The core of our governmental technical audit approach can be summarized as follows:
1. Planning, Understanding and Communication:
Based on our previous audit experience, using the budget, organizational charts, manuals
and other financial information systems and our knowledge of how governments work, we
will obtain an insight to the specific concerns and sensitivities of the City. Our
understanding is updated continuously through our year-round contact and
communication efforts. We will agree on common audit objectives and expectations with
management before audit work begins and, throughout the audit, will meet regularly with
management to discuss audit issues and to gather feedback.
2. In-Depth Review of Systems and Controls:
We have developed diagnostic reviews which enable us to evaluate your systems and
controls, and to provide management with constructive feedback. Combined with our
knowledge of the City and understanding and experience with the City’s accounting
software, our control review will form the basis of our audit risk assessment. We will utilize
the COSO approach in our evaluation of the City’s internal processes to identify potential
control deficiencies. In future years, we will update our understanding through similar
procedures.
3. Risk-Based Customized Testing Program:
Our audit approach is tailored to governmental applications. We will use audit programs
specifically designed to address the operational environment of governmental entities. Our
approach will identify potential control risks and the opportunities for risk of material
misstatements and fraud. We will evaluate the various risk assessments and identify the
potential risks relating to the:
Balance Sheets / Statement of Net Position
Statement of Revenues and Expenditures / Statement of Activities
Presentation
Disclosure
Our audit procedures will then be developed to address these risk areas.
4. Expanded Interim Fieldwork:
Timeliness and audit efficiency is enhanced by performing extensive interim work.
Partners, managers and senior staff work with City staff to identify and resolve potential
audit issues early. Accordingly, the amount of audit work to perform at year end is
minimized. Because our audit staff is familiar with the operations before year-end fieldwork
begins, disruption of accounting staff is minimized.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
22
5. Smooth Transition:
Our testing program focuses on audit risks identified by our understanding of the City’s
operations. We will work with the accounting staff to identify the most effective ways to
address our objectives. Communication between the members of the audit engagement
team and City staff will be fluid and continuous.
6. Sample Size and Sampling Techniques:
Our audit approach will include sampling activities. Population size and the level of
assurance to be derived from a particular test will dictate the sample size. We use
sampling in our audit approach to compliment skilled judgment and knowledge of the
particular situation. Our sample size will range normally from 25 to 60 items.
7. Automated Systems:
We will evaluate controls over the IT functions to assess control risk. We intend to test
controls for purposes of reliance. Our review procedures will evaluate controls over:
Security Management
Logical and Physical Access
Configuration Management
Segregation of Duties
Contingency Planning
In addition, we will review controls over:
Input, processing, output, master data
Application interface
Data management system interface
8. Analytical Procedures:
We use analytical procedures in several aspects of our audit. Extensive knowledge and
industry background are required for effective analytics, and our staff possesses the
appropriate experience and knowledge for the City to benefit from these procedures.
9. Approach to be Taken in Determining Laws and Regulations Subject to Audit Test
Work:
We continuously refer to specific regulations, compliance supplements, state guidelines
and contracts currently in force. We perform the procedures required related to laws and
regulations, using inquiries, observations and sampling techniques. Some of the laws and
regulations that we believe may be applicable to the City are the requirements of the
California Public Utilities Commission, Single Audit Act and other applicable laws and
regulations, including the California Government Code, provisions of applicable Grant
guidelines, California Constitution GANN Limit requirements, requirements of local
measures, Child Care Program compliance requirements, etc.
10. Report Format:
We will meet with City Management to review report formats. Any report format changes
will be made in conjunction with approval from the City Management.
11. Work Plans:
The detailed work plans will be designed to efficiently and effectively address the audit
requirements of the City in accordance with generally accepted auditing standards, to
perform the audit of the City’s financial records in a timely manner with minimal disruptions
to office operations, and to meet the City’s timeline.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
23
12. Adjusting Journal Entries:
We will discuss and explain proposed audit adjusting entries with the City’s designated
Finance Department personnel prior to recording. Audit adjusting entries will be provided
in a format showing the lowest level of posting detail needed for data entry on the City’s
general ledger system.
13. Listing of Schedules and Tables (anticipated to be prepared by the City):
Based on preliminary inquiries made with management and City staff and review of
documents, we will tailor a list of schedules, tables, and other reconciliations required for
the audit. We will take into account as much as possible reconciliations already prepared
by the City for day to day operations and reporting, as well as any reports that are system
generated to limit the need for additional City staff hours.
The following is a listing of some of the significant reconciliations and schedules that we
would normally expect the City to provide to us in assisting us in conducting our fieldwork.
Trial Balance
Annual Comprehensive Financial
Report Account Roll Up
Schedules
Budget to Actual Reports
Bank Reconciliations
Listing of manually prepared
journal entries posted
Summary of Investments held by
the City
Capital Asset Schedules
Long Term Debt Schedules
Debt amortization schedules &
Calculations of deferred amounts
Calculations of any debt
covenants amounts or
percentages
Schedule of Leases
Schedule of Expenditures of
Federal Awards
Analysis of Deferred Inflows of
Resources and Deferred
Outflows of Resources
Reconciliation of Receivables to
subsidiary ledgers
Calculations for estimate of
allowance for uncollectible
accounts
Loans Receivable Schedules
Reconciliation of Significant
Revenue Accounts
Fee schedules
Compensated Absences
Schedules and Copies of Related
Policies
Claims Payable Schedules
Pension and OPEB Roll Forward &
Supporting Schedules
GASB 54 Fund Balance Roll
Forward Schedule
Interfund Transaction Schedules
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
24
The Firm maintains a variety of specialized software packages during the audit that enable us
to perform an efficient, thorough, and timely audit and keeping time demands on City staff to
a minimum.
Trial Balance Management and Financial Statement Preparation
ProSystem Fx Engagement allows us to import and manage multiple years of trial balance
data including budgetary information, create multiple account groupings, generate reports,
post journal entries proposed during the audit (including GASB 34 conversion entries), and
link information directly to the financial statements. This gives us the ability to:
Generate immediate trend and other comparative analysis of trial balance and budget
data prior to the start of the audit. This allows us to identify potential issues and make
inquiries early in the audit
Link the financial statements and footnotes prior to the start of the audit allowing us to
have majority of the financial statements (including budgetary comparison schedules
and other supplementary information) prepared at the time the trial balance is
uploaded
Audit adjustments or City adjustments provided during the audit are automatically
reflected in the financial statements
Audit Request Management and Document Exchange
CCH Engagement Organizer (“Organizer”) is a virtual “Prepared by Client (PBC) List” that
streamlines the process of requesting, receiving, and keeping track of documents. The
Organizer is an integrated cloud-based request list that helps to facilitate the engagement
through more seamless collaboration between the Firm and our clients. By utilizing the
Organizer, the City can do all of the following in one secure virtual environment:
Attach files of any type to document requests
Easily track the status of document requests that are either pending, completed by
the City, accepted by us, or rejected by us
Access templates and documents from us that require completion
Have multiple City staff get involved and assist in the audit process
Participate in a dialog with us for questions and notes
Especially with having to perform a large part of the audit remotely in 2020, and anticipated
for the upcoming year, we have found that the use of the Organizer has helped our clients be
always informed as to the status of their audit, and not be surprised with new requests or follow
up on outstanding requests previously provided.
Computer Aided Audit Tools (CAATs)
The Firm’s data analytics software enables our Engagement Team to perform more than 150
Computer Aided Audit Tools (or “CAATs”). CCH Teammate Analytics gives us the ability to
perform advanced data analysis and increase efficiency. By utilizing this software, we can:
Immediately visualize and analyze 100% of account populations with graphs, charts
and statistics to identify anomalies
Make fewer sample selections that are targeted to problematic areas
Quickly analyze transactional data for:
o Duplicate records
o Missing transactions
o Transaction sequence
o Unusual items
Compare excel worksheets for changes or differences
Generate immediate testing samples
Perform regression analysis
Filter and extract data from City reports
Use of
Technology in
the Audit
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
25
Audit Planning, Risk Assessment, and Audit Programs
Our firm utilizes CCH Knowledge Coach, which is an expert system that adapts and
customizes our audit approach specifically based on the City’s structure, operating
environment, specific transactions, and identified risks or matters to be addressed in the audit.
The software is frequently updated for new industry trends and audit requirements. Included
in the software is a continuous diagnosis of audit forms that identifies missing information,
procedures, or any conflicts that need to be addressed prior to issuance of the audit report.
We have found that this audit tool greatly benefits our audit clients in the following ways:
Removal of standardized audit steps and procedures that do not add value to the audit
Targeted audit procedures focusing on risks and accounts specific to the City’s
operations
Audit is always performed in accordance with audit standards especially the risk
assessment standards
Maximizing audit efficiency having less City staff time dedicated to gathering
information or responding to inquiries by focusing on material issues
Automatic self-diagnostics ensure no audit steps are missed, guaranteeing a quality
audit
Research Tools
We maintain multiple research software packages that are always kept up to date to ensure
compliance with accounting and auditing standards, and are also a resources for us to provide
guidance to our clients. In addition to accounting and audit literature, we have access to
interactive disclosure checklists that include sample footnote disclosures and financial
statements.
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
26
2023
Period Audit Tasks
April - May Planning and Administration
The entrance conference shall be held with City staff. The purpose
of this meeting will be to discuss prior audits and the interim work
to be performed. This meeting will also be used to establish overall
liaison for the audits and to make arrangements for work space and
other needs
Review and evaluate the City's accounting and financial reporting.
Prepare an overall memo of recommendations, potential issues,
and suggestions for improvements
Prepare overall memo to the City confirming audit procedures,
timing, and assistance
Prepare detailed audit work plan and audit programs, audit budget
and staffing schedule, and list of schedules to be prepared by the
City staff
Send the Organizer to the City that will include all request items
considered to be necessary for the audit
May Internal Control Evaluation
Meeting with City Manager and Department Heads of other
departments with large operating budgets or which have significant
federal grant expenditures
Attending City Council meetings
Meeting with off-site locations
Meeting with key Finance Department personnel
Obtain and document understanding of key internal control
systems through walk-throughs, interviews of staff, and review of
supporting documentation
o General ledger system
o Budgeting system
o Revenue, accounts receivable, and cash collections
o Purchasing, expenditures, accounts payable, and cash
disbursements
o Payroll
o Federal Financial Assistance
o Other systems
Identify control risks
Evaluate IT control environment
Perform testing of the internal control system and evaluate the
effectiveness of the City’s systems. Select large dollar and random
samples of transactions in key operating systems. Sample size to
meet required level for determined degree of risk. Review
supporting documentation of selected transactions, evaluate
adequacy of support and approvals, and conclude on degree of
adherence to accuracy and compliance with City policies
Conduct fraud assessment procedures
Assess degree of risk for material misstatement
Provide to the City’s management a memo concerning
management letter points and identify issues, if any
Audit Schedule
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
27
2023
Period Audit Tasks
May Other Tasks
Review minutes of City Council meetings and other key committees
Perform preliminary substantive procedures, which would include
tests of:
o Vendor and contractor payments
o Payroll expense
o Pension and OPEB testing
o Capital asset acquisitions
o Journal entries
o Retrospective review of accounting estimates
Financial statement database management and other setup, in
addition to drafting of all necessary report templates
Preliminary Single Audit and other compliance testing
Coordinate with City staff and prepare of all appropriate
confirmation requests including:
o Bank accounts
o Investment pool accounts
o Accounts receivable
o Federal grants
o Revenue from governmental agencies
o Bond and other debts
o Pension plan
o Attorney letters
o Others, as required
Update the Organizer with any additional requests that will be
needed for the City's audit
Provide the City with audit plan and list of year-end audit schedules
Hold progress conference with City Management
Hold exit conference with City Management
October Final Fieldwork
Entrance conference with City Management
Follow-up on all outstanding confirmations
Verify and validate account balances by reviewing supporting
documentation including invoices, vouchers, council resolutions,
minutes, and other documents, as required
Perform analytical review of revenue and expenditures. Determine
reason for material differences between budget and actual
Perform a search for unrecorded liabilities by reviewing
disbursements subsequent to June 30, testing terms of contractual
obligations, and interviewing City staff
Perform review of subsequent events by discussions with City
Management and update all minutes of City Council and key
committees
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
28
2023
Period Audit Tasks
Single Audit Compliance
Entrance conference with City Management
Obtain Federal Financial Assistance Schedule
Determine grants to be considered as major programs including
clusters
Perform audit tests of major grant programs and compliance with
Federal Law and Regulations
Review grant documents, select sufficient number of transactions
to test for compliance of Federal Requirements
Coordinate Single Audit efforts with the Financial Audit efforts
Communicate findings to City Management
Other Compliance
November Audit Reports
Complete drafts of City’s Annual Comprehensive Financial Report
Prepare draft of Single Audit Reports concerning internal control
structure, compliance with laws and regulations, and administering
of federal financial assistance programs
Prepare other reports as required
Provide revised final drafts of all required reports to the City for
approval no later than 11/13/2023
December Final City Audit Reports, Financial Statements, Single Audit
Reports, and other reports delivered no later than 12/4/2023.
Presentation to Audit Committee and Council
January 2024 State Controller’s Reports delivered and submitted
Single Audit Report package submitted to Federal Audit
Clearinghouse
Estimated Hours by Audit Phase
Position Planning
Interim
Fieldwork
Year End
Fieldwork Reporting Total
Partner 9 24 16 5 54
Audit Senior 21 75 80 10 186
Professional Audit Staff - 128 117 15 260
Administrative Assistant 6 10 - 11 27
Total 36 237 213 41 527
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
29
Identification of Anticipated Potential Audit Problems
We do not anticipate that there will be any audit problems at the City. However, the following
are some areas that we will carefully investigate and monitor during our audit procedures:
Financial Reporting:
Review and evaluate that the City’s Annual Comprehensive Financial Report are in
compliance with current reporting and disclosures requirements issued by the GASB
and GFOA.
Review the Annual Comprehensive Financial Report for financial reporting
conformance awards issued by CSMFO and GFOA.
Review and evaluate degree of compliance with the various GASBs in effect.
Review degree of compliance with infrastructure obligations and regulatory
provisions.
Internal Control Structure:
Review and evaluate the City’s internal control functions and ascertain compliance
with proper internal control philosophies.
Review computer system processes and controls and evaluate adequacy of the
control environment.
Several new GASB pronouncements will become effective over the time period of this
proposal. As such, specific attention will be provided to determine the proper implementation
of these new pronouncements. A list of known new pronouncements with implementation
dates that fall within this proposal period are as follows:
2023
Statement 91 – Conduit Debt
Statement 94 – Public-private Partnerships
Statement 96 – Subscription-Based Information Technology Arrangements
2024
Statement 100 – Accounting Changes and Error Corrections—an amendment of
GASB Statement No. 62
2025
Statement 101 – Compensated Absences
Discussion of
Relevant
Accounting
Issues
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
30
Schedule of Professional Fees
AUDIT WORK COST PROPOSAL FORM
CERTIFICATION
I, the undersigned, certify that I am duly authorized to represent Badawi & Associates, CPAs
and am empowered to submit this bid. In addition, I certify I am authorized to contract with the
City of Dublin on behalf of Badawi & Associates, CPAs
Print Name Ahmed Badawi Signature
Tittle President Date November 30, 2022
ESTIMATE OF COST
Print Name Ahmed Badawi Signature
Tittle President Date November 30, 2022
Service
2023
Hours 2023 2024 2025 2026 2027
City Audit and Related Reports 330 31,220$ 32,275$ 33,055$ 33,980$ 34,945$
Single Audit and Related Reports 33 3,100 3,200 3,295 3,400 3,380
Measure B Audit 35 3,340 3,390 3,500 3,585 3,715
Measure BB Audit 35 3,340 3,390 3,500 3,585 3,715
Measure F Audit 35 3,340 3,390 3,500 3,585 3,715
GANN Limit Agreed-upon Procedures 6 600 640 670 705 745
City's State Controller's Report 22 2,070 2,015 2,130 2,160 2,165
Dublin Financing Authority's State
Controller's Report 17 1,630 1,735 1,835 1,940 2,060
Annual Street Report 14 1,290 1,375 1,460 1,550 1,655
Total 527 49,930$ 51,410$ 52,945$ 54,490$ 56,095$
Hours Rates Hours Rates Hours Rates Hours Rates Hours Rates
Partner 54 160$ 50 170$ 49 170$ 48 $170 47 $170
Audit Senior 186 100 181 100 177 115 171 125 165 130
Professional Audit Staff 260 80 254 90 245 90 239 95 231 105
Administrative Assistant 27 70 26 75 26 85 25 90 24 100
Total Hours 527 511 497 483 467
Total Cost 56,095$
20272023202420252026
Position
49,930$ 51,410$ 52,945$ 54,490$
Comprehensive
Cost Bid
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
31
Manner of Payment:
Each Engagement Team member maintains detailed time sheets describing work performed,
date of work, and amount of time spent on each task for the Engagement. The Firm will bill
the City after completion of each phase of the audit and bill the City up to a maximum of
90%. The remaining 10% of the proposal amount will not be due until all final reports are
delivered and accepted by the City. The City can anticipate three billings as follows:
Work Performed
of Proposal
Amount
For interim work 45%
For year-end work 45%
At presentation and acceptance of final reports 10%
Total 100%
Rates for Additional Professional Services:
Any services outside the scope of our engagement will be promptly identified before the
services are rendered. Upon mutual agreement, the out-of-scope services will be separately
billed at our standard hourly rates. While it can be difficult to simply state hourly rates, as often
times the needs of the client and the specific tasks directly impact the billing rates for our
services, we want to provide the following information regarding our published billing rates:
Position Hourly Rate
Partner $ 200
EQR 200
Manager 150
Senior 125
Staff 100
Admin. 75
Our Standard Hourly Rates are adjusted annually by 3% for Cost of Living and Inflation
Adjustments
A client relationship with the City will be of great value to our Firm and we welcome the
opportunity to develop a long-term relationship with the City. We are committed to:
Rendering the highest standard of service
Developing a long-term working relationship dedicated to meeting the needs of the City
Assisting the City in operational issues
Producing a quality end-product
We have the technical qualifications and experience to provide the level of service desired
and expected by the City and stand ready to provide our knowledge and experience for the
benefit of your organization.
We would like to express our appreciation to the City and to its Staff for allowing us the
opportunity to submit a proposal to perform professional auditing services. We are available,
at your convenience, to discuss any aspects of our proposal.
Thank you for allowing us to present our Firm to you.
Conclusion
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
32
References
1) City of Berkeley
Scope of Work: Annual Comprehensive Financial Report, Gann Limit, SAS114, Measure
B (Alameda County), Vehicle Registration Fee Audit (Alameda County), Due Diligence
Reviews for the RDA Successor Agency
Engagement Partner: Ahmed Badawi (2008 – 2019), Mitesh Desai (2020- Present)
Address: 2180 Milvia Street, Berkeley, CA 94704
Principal Contact:
Henry Oyekanmi
Finance Director
510)981-7332
hoyekanmi@ci.berkeley.ca.us
2) City of Antioch
Scope of Work: Annual Comprehensive Financial Report, SAS 114, GANN Limit, Single
Audit, Antioch Public Financing Authority, Antioch Area Public Facilities Financing Agency
Engagement Partner: Ahmed Badawi (2005 – 2019), Mitesh Desai (2020- Present)
Address: 200 H Street, Antioch, CA 94509
Principal Contact:
Dawn Merchant
Finance Director
925)779-6135
dmerchant@ci.antioch.ca.us
3) City of San Luis Obispo
Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit,
SAS114, Whale Rock Commission
Engagement Partner: Ahmed Badawi (2019 – Present)
Address: 990 Palm Street, San Luis Obispo, CA 93401
Principal Contact:
Brigitte Elke
Finance Director
805)781-7125
belke@slocity.org
4) City of Petaluma
Scope of Work: Annual Comprehensive Financial Report, Transportation Development Act
Fund, SAS 114
Engagement Partner: Ahmed Badawi (2019 – Present)
Address: 11 English St, Petaluma, CA 94952
Principal Contact:
Corey Garberolio
Finance Director
707)778-4357
cgarbero@cityofpetaluma.org
5) City of Lafayette
Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, TDA,
Lamorinda Fee and Finance Authority Report, Lamorinda School Bus Transportation
Agency Report
Engagement Partner: Ahmed Badawi (2020 – Present)
Address: 3675 Mount Diablo Blvd., #210, Lafayette, CA 94549
Principal Contact:
Tracy Robinson
Administrative Services Director
925)299-3227
trobinson@lovelafayette.org
Appendix A
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE
City of Dublin Technical Proposal
33
Exceptions to the Contract
With regard to the Standard Consulting Services Agreement, we would like the following items
to be edited:
Appendix A, Consulting Services Agreement, Section 9. Keeping and Status of Records,
9.1 Records Created as Part of Consultant’s Performance, we would like to edit the paragraph
as follows:
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance. Unless such
property is proprietary in nature, all reports, data, maps, models, charts,
studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other
form, that Consultant prepares or obtains pursuant to this Agreement and that
relate to the matters covered hereunder shall be the property of the City.
Consultant hereby agrees to deliver those documents to the City upon
termination of the Agreement. It is understood and agreed that the documents
and other materials, including but not limited to those described above,
prepared pursuant to this Agreement are prepared specifically for the City and
are not necessarily suitable for any future or other use. City and Consultant
agree that, until final approval by City, all data, plans, specifications, reports
and other documents are confidential and will not be released to third parties
without prior written consent of both Parties.
Appendix B
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE