HomeMy WebLinkAbout4.08 AgmrtCaporicci&Larson CITY CLERK
File #600-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 6, 2004
SUBJECT: Agreement For Audit & Professional Services with Caporicci &
Larson
Report Prepared by: Carole A. Perry, Administrative serVices
Director and Fred Marsh, Finance Manager
ATTACHMENTS: 1. Excerpts From Proposal
2. Proposed Agreement
RECOMMENDATION:' .~ A~ Authorize the City Manager to execute the Agreement on
"'~ o' v behalf of the City.
\
FINANCIAL STATEMENT: The anticipated cost for Audit Services related to Fiscal Year 2003-
2004 is $34,950. Adequate funds are included in the proposed
budget for Fiscal Year 2004-2005 for completion of the audit
services for the City's Fiscal Year 2003-2004 Financial Reports.
DESCRIPTION:
At the City Council Ad Hoc Audit Committee meeting on December 9, 2003, the Committee members
authorized the circulation of a Request for Proposal (RFP) for Audit Services. The Ad Hoc Audit
Committee directed the City Manager to oversee the RFP process; necessitated by the fact that the
contract agreement with the City's current independent auditor (the firm of Vavrinek, Trine, Day and
Company - VTD) was expiring. VTD had prepared audits for the City of Dublin for the previous eight
consecutive years. A Subcommittee was formed to assist with the RFP preparation and the selection of an
audit firm.
Proposals Received
The City received five responses to the RFP by the March 25, 2004 deadline. The respondents were asked
to provide pricing information on both the basic reports that would be required by the City each year, as
well as on the various optional reports that might be required. The nature and number of those reports
could vary from year to year. The five original submissions included a response from one of the firms
that indicated that they were unable to submit a proposal at this time. The following is a basic breakdown
of the remaining four proposals, including the maximum cost for the full five years of contract serwices,
assuming the City required all reports outlined in the RFP; the proposed first year costs for audit services
provided to the City in Fiscal Year 2004-2005; and the total number of audit hours proposed by each firm
for the first year of the contract; and the effective hourly ram, based on the number of proposed tota~[.audit
hours:
ITEM NO. [~.~)
....... MAx/MUM COST MAx1M~4 PROPOSED EFFECTIVE.
OVER COST FOR HOURS OF HOURLY
5 YEAR FISCAL AUDIT RATE
PROPOSED YEAR 2004- SERVICES FOR
NAME OF FIRM CONTRACT 2005 FY 2004-2005
Cf'Gl Uhlenb~rg & Co .... $204~'~'64 ..... $36~2'~'0 ......... 47,8 .......... $75.68
.Caporicci & Larson $!78,610 ..............$34~950 ... 415 ............ $80.34
Maze & Associates.. ....... $207,054 ..... .$..39,746 399 ........... $99.61 ....
Moss Levy & Hartzheim $160.,0.0~. ..... $32,000 370 ............... $86.48
Selection Process
On June 11, 2004, the Subcommittee, consisting of the Assistant City Manager, Administrative Services
Director and Finance Manager, conducted interviews of the three firms that were selected as finalists in
the process (those highlighted in bold on the chart above). These firms were selected based upon a
detailed review of all of the RFP submittals, to determine the companies that most closely met the needs
of the City of Dublin and appeared to be capable of servicing the City over the five years of the proposed
agreement. The interviews provided an oppommity for the Subcommittee to meet with representatives
from each firm, including staff that would be part of the team conducting the City of Dublin audit. In
addition, each of the firms described their approach to the auditing of a public agency and described their
experience in the area of municipal/government audits. Based upon this information, as well as follow-up
reference checks by City Staff, the Subcommittee has recommended that the rum of Caporicci & Larson
(C&L) be selected to provide independent audit services to the City.
Firm Background and Selection Rationale
Attached as Exhibit 1 are excerpts from the proposal submitted by C&L. The firm has a local office in
Oakland and has extensive experience in performing g°vemmental audits in the Bay Area. Mr. Gary
Caporicci will serve in the role of Technical Partner providing internal quality control on this engagement.
Among the reasons for selecting the firm was their commitment to also assign other highly experienced
personnel to the audit team. C&L's Engagement Partner, Ms. Nasi Raissian, will have a role in preparing
the field work. This can expedite the prOCess, assure an appropriate level of oversight, reduce the impact
on City Staff, and insure that the audit will proceed in a uniform and consistent manner. In addition, C&L
proposes to assign Mr. Ahmed Badawi as the Audit Manager. Mr. Badawi has approximately six years
experience performing governmental audits. Staff has included language in the proposed agreement to
provide for City approval if the audit team is restructured in future years. The firm has committed to
providing highly skilled personnel to do the fieldwork to meet the City's expectations for the term of the
agreement.
Although not the lowest bidder in terms of total contract pricing, the number of dedicated audit hours
detailed in the C&L proposal was the highest of the three finalists. Also, as the chart information reflects,
this higher number of hours translates into the lowest average hourly cost per fu'm. Staff feels that this
higher number of audit hours is of critical significance. The City has not changed auditors in eight years;
C&L's commitment to dedicating more audit time in the first year of the audit should help to ensure a
seamless transition and to minimize the learning curve for the new firm. Additionally, in their proposal,
C&L is including 20 hours of consultation service per year at no additional cost. This added time can be
used in any area the City desires (i.e. proposal evaluations, review of investment policies, assistance with
property inventories, evaluation of bond offerings, etc).
Scope of Audit Services To Be Performed
The scope of work proposed is similar to the audit services provided by VTD in prior fiscal years and
meets the anticipated needs of the City. The scope is included as Exhibit A in the proposed Agreement in
Attachment 2. The scope was broken into two segments: Basic Reports and Optional Reports. The Basic
Reports will be required each year and they include the following elements:
Independent Auditor's Report, including Basic Financial Statements
Management Letter including findings, statements, or recommendations related to internal controls,
compliance issues, and/or accounting systems and functions
· Alameda Transportation Authority Measure B Compliance Audit
· Review of the Annual Gann Appropriations Limit Calculation
· State Controllers Report of Financial Transactions
· State Controllers Annual Street Report
The need for the preparation of the Optional Reports listed below will be determined by Staff prior to the
final stage of the audit for each fiscal year. Staff anticipates C&L completing most the special audits and
reports listed below for Fiscal Year 2003-2004:
· Transient Occupancy Tax (TOT) audit on one or more of the City's hotels
· Single Audit (required if the City receives more than $500,000 in Federal funds in a fiscal year)
· Metropolitan Transportation Commission (MTC) Audit (required if the City receives TDA funds for
the construction of Bicycle/Pedestrian projects, such as the Iron Horse Trail)
· State Transportation Improvement Project (STIP) Audit for the Dublin Boulevard Widening Project
· Transportation Clean Air Grant Audit for the Alamo Creek Bike Path Project
Terms of Engagement
Staff has utilized the standard City Agreement for consultants. The firm has presented a fixed schedule of
compensation for each of the five fiscal years covered by the Agreement. The total costs each year will
depend on the number of optional reports required by the City. The costs are presented in the schedule
marked as Exhibit B (to Attachment 2) of the Agreement.
The first year costs are comparable to the costs incurred by the City on identical services obtained as part
of the Fiscal Year 2002-2003 audit. The cost of the services under contract with VTD for Fiscal Year
2002-2003 totaled $35,800. The same services under the proposed agreement with C&L for Fiscal Year
2003-2004 will cost approximately 2.3% less at $34,950. The following is a breakdown of the C&L
services recommended for Fiscal Year 2003-2004,
Basic Reports: $ 26,450
Single Audit and other Special Grant Reports: $ 1,500
Transient Occupancy Tax Audit $ 3,000
State Controllers Reports of Financial Transactions: $ 4,000
TOTAL $ 34,950
Staff has incorporated the cost of these services as part of the proposed City Council budget for Fiscal
Year 2004-2005.
Summary
The initial staff report reCommending the fnm of Caporicci & Larson (C&L) as the City's independent
auditor was postponed from the June 28, 2004 Council Meeting to this date (July 6, 2004). Staff's
recommendation was disputed by an individual (via Email correspondence) making negative allegations
regarding C&L's work in the City of San Diego. Additional investigation and reference checking
regarding these assertions have rendered them groundless, since they are actually directed at the San
Diego audit firm that preceded C&L. Subsequent to the receipt of this Email information, the Ad Hoc
Audit Committee met with C&L to discuss these charges in more detail. C&L's responses have been
forthcoming and responsive. Therefore, the Committee continues to be confident that C&L will provide
the City of Dublin with very capable audit services.
Recommendation
It is recommended that the firm of Caporicci & Larson (C&L) be selected to provide independem audit
services to the City. In conclusion, this firm has been selected by Staff for several reasons, including, but
not limited to, their competitive pricing, the number of annual audit/fieldwork hours included as part of
their proposal, their fixed pricing over the five years of the contract, and the fact that they maintain local
offices (Oakland). It is further recommended that the City Council authorize the City Manager to execute
the proposed contractual agreement with C&L.
City of Dublin
Proposal to Perform
Professional Auditing Services
for the year ending June 30, 2004
with renewal options.for June 30, 2005 through June 30, 2008
Submitted March 25, 2'004
Contact Person:
Stephen L. Larson
Caporicci & Larson
Certified Public Accountants
180 Grand Avenue, Suite 1365
Oakland, California 94610
Toll Free Telephone: (877) 862-2200, ext. 125
Caporic¢i & Larson
Certified ~ublic .4 ccoun~ants
ATTACI-tM'ENT 1
Table of Contents
Proposal Page
Letter of Transmittal
i
Summary of Proposal
Profile of the Firm 3
- About the Firm 5
- Governmental and Non-Profit Accounting Experience 5
- Independence 9
- License to Practice in State of California 9
- Quality Control Review 9
Summary of Firm's Qualifications 11
- Partner, Supervisory and Staff Qualifications and Experience 13
- Similar Engagements with Other Governmental Entities 22
- GASB 34 Experience 23
Firm's Approach to the Examination 25
- Understanding of Requested Services 27
- Objective of Our Services 28
- Work Plan 29
- Audit Approach 29
- Audit Schedule 30
Professional Fees 35
- Total Ag-Inclusive Maximum Price for the Engagement 37
~, Rates by Partner, Supervisor, and Staff 37
- Discount 38
- Out of Pocket Expenses 38
- Rates for Additional Professional Services 38
- Manner o£ Payment 39
- Summary 39
- surmmary of Professional Fees and Expenses
Fees by Staff Classification 43
~- 2004 45
-, 2005 46
... 2006 47
- 2007 48
- 2008 49
Caporicci & Larson
Certified Public Accountants
March 25~ 2004
Fred Marsh
Finance Manager
City of Dublin
100 Civic Plaza
City Clerk Department - Second Floor
Dublin, California 94568
Dear Mr. Marsh:
The accounting firm of Caporicci & Larson, Certified Public Accountants, a partnership, (the
"Firm") is pleased to have the opportunity to respond to your request for a proposal 'to
perform auditing services and to submit its qualifications to perform a general audit of the.
financial records of the City of Dublin and related entities (the "City") for the year ending
June 30, 2004 with renewal options for June 30, 2005 through June 30, 2008. The objective of
our audit is to issue an opinion regarding the fairness of presentation of the City's financial
position for fhe five years in accordance with generally accepted accounting principles. The
audit to be performed will follow generally accepted auditing standards, U.S. General
Accounting Office's Government Auditing Standards, Single Audit Act of 1984, as amended
in 1996, and OMB A-133.
This proposal will introduce our Firm to you, 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.
Understanding of Requested Services-
The City desires an audit and expression of an opinion in accordance with generalIy accePted
accounting principles on the fairness of presentation of financial statements for 'the City for
the year ending June 30, 2004 with renewal options for June 30, 2005 through June 30, 2008.
All audit work arid the resulting final opinions and financial reports are to be completed and
issued no later than the published time frames as noted in the Request For Proposal (the
"RFP").
Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927
Oaklan{l Ox'a~ge Cou. uey Sac:rasutetlto Salt ~iego
180 Gr~d Ave.. Suite 1365 31 ~D ~ Argue 777 ~p~ Commons Rd.. S~te 200 600 "B' S~, Suite 19~
O~and, ~orffia 9~12 ~sm Mesa, C~or~a 92626 Sacramento, ~o~a 95825 S~ ~o, ~o~a 92101
City of Dublin
March 25, 2004
Page 2
The audit of these financial statements shall be conducted in accordance with generally,
accepted auditing standards as set forth by the American Institute of Certified Public
Accountants, the standards for financial audits set fOrth in the U.S. General Accounting
Office's Government Auditing Sfandards, various standards established by the Government
Accounting Standards Board.
The preparation of any financial reports will be consistent with .requirements of CSMFO and
GFOA certification procedures and g-uidelines.
The Firm will review the City's GANN Appropriations Limit calculations for
apprgpriateness and accuracv.
The City desires a compliance audit of its Measure B activity.
The City receives levets of federal financial assistance which requires an audit to be
conducted in accordance with the Single Audit .Act of 1984, as amended in 1996, and OMB
Circular A-133, as amended, relating to compliance with various laws and regulations and
proper internal control. Reports are to be issued by the Firm indicating amount of federal
financial assistance, description of the various specific federal'assistance programs in which
the City participates either directly or as a pass-through agency, degree of Compliance with
appropriate taws and regulations, quality of the internal control structure, and reportable
conditions and findings, if any.
The City may desire compliance audits on MTC related activities as welI as the SLTPP.
The City desires the Firm to prepare the mxnuaI State Controllers Report and the Street
Report.
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.
The Firm will submit a letter to management and the City's Audit COmmittee detailing
reportable conditions found during the audit. Non-material instances of noncompliance shall
be reported in a separate management letter, if appropriate, and any Other observations or
recommendations determined to be informative to City management.
The Firm wiI1 be availabIe to provide advice and counsel regarding significant matters
during the year.
The Firm's Partners and Staff welcome the opportunity to present the financial reports to the
City Council and will be ready to respond to questions from the Council and Citizens of the
City.
City of'Dublin _ ~ % 7"7
Mdrch 25, 2004 -
Page 3
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:
Mr. Stephen L. Larson, Senior Partner
Caporicci & Larson
Certified Public Accountants
180 Grand Avenue, Suite 1365
Oakland, California 94612
Toll Free Phone Number: (877) 862-2200, ext. 125
We. beheve we are the best qualified to perforTM the audit because our audit staff includes
individuals WelI versed in municipal auditing .and reporting requirements. We have
performed' auditing and consulting engagements for numerous cities throughout California.
The Engagement Partner assigned to the City, Ms. Raissian, has performed numerous audits
of governmental entities as well as served as Finance Manager for the City of Sunnyvale. The
Technical Partner assigned to the City, Mr. Caporicci, is a member of various governmental
committees, has actively participated in the development of accounting and audit guidelines
and standards for the governmental sector, and serves as a national reviewer for the GFOA.
We are responsive to the needs of the City, understand the City's operational environment,
and pledge to you our complete commitment to providing a quality product, which meets
the City's requirements.
We are confident you will find our orgardzation offers ~he 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 techrdca~ knowledge to perform such services in accordance with the
accounting and auditing guidelines as published by the various authoritative entities.
The proposal fees are a firm and irrevocable offer and will remain valid for 120 days after the
proposal due date.
We welcome your inquires and look forward to further discussions with you.
SincereIy,
Stephen L. Larson
Senior Partner
Caporicci & Larson
Summary of ProPosal
Introduction
This Summary is presented to provide you with a general knowledge of the .contents of the
proposaI and to allow you to quickly:
· gain an understanding of-our Firm.
· review the qualifications of the members of the Engagement Team.
· identify the Firm's approach to the audit of the City Of Dublin (the "City").
· identify the proposed audit fees. '
· identify services provided to the City at no additional cost.
· locate City required documents.
Firm Qualifications
.The accounting firm of Caporicc] & Larson, Certified Public Accountants (the "Firm"), provides
auditing, accounting, and advisory services to numerous governmental entities throughout
California. With offices located in Oakland, Costa Mesa, San Diego? and Sacramento and a staff
of 46 audit professionals, the Firm serves a variety of cities and counties throughout California
as WeIl as conducting financial related services for the State of California. Names and phone
numbers of several of our current clients and other references are provided for your inquiries.
We encourage you to contact these individuals to obtain information on the quality o£ the audit
and the ability of the audit staff.
'Our Oakland office will be the Engagement Office assigned to the City.
In addition to specific city financial statements, the Firm has also audited redevelopment
agencies, transportation authorities, public financing authorities, special districts, OCJP grants,
self insurance pools, joint power authorities and has also performed numerous compliance
audits in accordance with the Single Audit Act, TOT audits, AQMD audits, franchise audits,
and other special projects. Additionally, the Firm has significant experience in bond offerings,
post closure landfill costs, and recent changes to redevelopment agency reporting requirements.
Several of our city clients currently receive the GFOA and CSMFO awards for reporting
excellence.
The Firm is a member of the Private Companies Practice Section of the AICPA and received a
positive peer review report on its system of quality control.
The five Partners of the Firm have over 100 years of practical experience encompassing att
aspects of the financial arena. For over 8 years, Ms. Raissian, the Engagement Partner assigned
.to the City, has been actively involved in the governmental area providing auditing, and
consulting services to a varied group of governmental clients. Additionally, Ms Raissian served
for 2 years as the Finance Manager for the City of Sunnyvale and as acting Finance Director for
the City of Glendora. For elevei~ years, Mr. Gary M. Caporicci, the assigned Technical Partner
for the City, held various positions with Coopers & Lybrand (currently
PriceWaterhouse/Coopers) including its head of the governmental audit practice for
iii
CITY OF DUBLIN o~
Summary of Proposal
the Southwest Region of the United States responsible for offices located in Houston, Austin,
New Orleans, and .Oklahoma City. Gary is also a national reviewer for the GFOA .and has
literally participated in hundreds of city audits of .ail sizes.
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 Nasi will actually be on-
site. during much of the audit coordinating the audit process, supervising the audit staff,
gaining a hands-on understanding of City processes, and benefiting the City with her broad
municipal experience. We have found that this effort benefits the City and the Firm through
developing a thorough knowledge of City practices and issues and establishing a close working
relationship with the City's Management. Additionally, continuity of audit personnel is
assured because of the hahds on involvement of the partners.
The three professional staff 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 city
operations and the various authoritative guidelines will provide the where-with-ali to perform
the audit in an efficient and effective manner with minimal disruption to the City's finance
department.
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 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
eliminates "surprises". Initial planrdng and proper assigument 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:
Initial Planning Meeting:
The Engagement Partner and Manager will meet with City
Management to discuss audit approach, identify specific needs of City
Management, and familiarize themselves with City policies and
practices.
Interim:
For two weeks in July, four Engagement Team members including an
Engagement Team Partner will perform the internal control reviews,
test transactions, evaluate compliance with Single Audit Act
iv
CITY OF DUBLIN
Summary of Proposal
requirements, identify potential audit issues that need to be addressed,
perform limited confirmation procedures, and develop a dear
understanding between the .Engagement Team and City Management
of the year end audit responsibilities and assignments.
Year end:
For two weeks in October, four Engagement Team members including
the Engagement Team Partner will conduct validation procedures on
general ledger account balances, develop financial statement report
formats, prepare the necessary financial reports for the City and its
related entities, 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.
Reporting:
Auditor's report and reports for all City reporting entities and
compliance requirements will .be finalized along with Single Audit
Reports and Management Letter comments. Drafts o£ the various
financial statements and reports will be provided to City Management
for review no later than the' published time frames as agreed at the start
of the audit. Final reports will be issued within 5 days o£ the approval Of
the .final draft by City Management. The Engagement Partner will be
available to present the financial reports to the City. Council.
The audit process will .be completed and alt reports issued within the time frames established by.
the' City. Additionally, we will ensure that all financial reports are in accordance with GFOA
and CSMFO reporting guidelines.
"No Fee" Services '
The Firm will provide other services at no additional cost to the City:
· The Firm will provide the City with at least 20 hours of conSulting service in each of the
audit yearsat no cost to the City.
The Firm will provide periodic updates to City Management on recent developments in
governmental accounting and reporting at no cost to the City.
· The Firm will perforTM the agreed upon procedures to review the GANN Appropriations
Limit calculations at no cost to the City.
· The Firm will provide responses to routine questions by City staff throughout the year to
assist in the running of City operations and implementation of improved operating
procedures at no cost to the City.
CITY 'OF DUBLIN
Summary of Proposal
Professional Fees
Total professiOnal fees to perform the required services, net of discounts, are as follows: -'~
For the year ending Jtme 30, 2004 $ 30,450
Total Base Year $ 30,450
For' the year ending June 30, 2005 31,450
For the year ending Jtme 30, 2006 31,410
For the year ending June 30, 2007 3!,400
For the year end&rig June 30, 2008 31,400
Total Renewal Years 125,660
Ali-Inclusive Price $ 156,110
The above professional fees are all-inclusive and no additional costs will be charged to the City
for audit related services of the City's financial statements.
Conclusion
A relationship With~the City of Dublin will be of great value to our Firm and we stand ready to
commit our resources, knowledge, experience, and expertise to the benefit of your City. We
possess the technical qualifications and experience to provide the level of service desired and
expected by you and pledge to you our complete commi~nent to providing the City of Dublin
with the highest quality of service possible.
Thank you for allowing us to present our Firm.
Costa Mesa, California
March 25, 2004
NOT TO EXCEED PRICE FOR PROPOSED SERVICES
tn accordance with the Request for Proposal for Audit Services issued by City of Dublin, the firm
referenced below herby submits.the following cost proposal:
Year Ended June 30th
2004 2005 2006 2007 2008
Basic Reports To Be Issued
City Audit, including CAFR and Management Letter $ 26,450 $ 27,450 $ 27,410 $ 27,400 $ 27,400
Special Audit Reports for:
Measure B -
Gann .Limit -
Annual Report of Financial Transactions to State Controller 2,500 2,500 ZS00 2,500 2,500
Annual Street Report to the State Controller 1,500 1,500 1,500 1;500 1,500
Total $ 30,450 $ 31,450 $ 31..410 $ 31,400 $ 31,400
Additional Audit Reports To Be Requested At City Option
Single Audit $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
MTC
State,Local Transportation Partnership Program 500 500 500 500 500
Transient Occupancy Tax~ 3,000 3,000 3,000 3,000 3,000
$ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500
~ Assttmes one hotel per year.
In addition, please include below an hourly fee quotation and hours proposed for ali positions to be
assig-ned to the audit:
2004 Hottrly
Hours Rate
Partners 50 $ 150
Managers 40 125
Supervisory Staff i60 105
Professional Staff 140 85
Clerical/Support Staff 25 50
Other - -
I herby certify that the undersigned is authorized to represent the firm stated above, and empowered to
submit this bid, and if selected, authorize to sign a contract with the City, for the services identified in
the Request For Proposals.
Firm Name: Caporicci & Larson, CPAs
Printed Name: Stephen L.. Larson
Title: Senior Partner
Date: March 25, 2004
Profile of the Firm
CITY OF DUBLIN
Profile of the Firm
About the Firm
The Firm has offices located in Oakland, Costa Mesa, San Diego, and Sacramento, California
and, since 1989, provides a full range of accounting serv. ices to governmental agencies and
private sector org.anizations throughout California including audit, tax, accounting, computer
audit assistance, and business and management advisory services. The five partnexs combined
have over 100 years of practical experience encompassing all .aspects of the £inancial arena.
Forty.-siX (46) staff members provide the financial background and specific experience to meet
the City's operational needs.
Our Oakland office, which employees fourteen (14) professional staff will perform the requested
services for the City. However, additional staff from our Costa Mesa, San Diego, and
Sacramento offices may also be assigned to the engagement at no additional cost to the City.'
Firm policy requires the Engagement Partner, during the first year of the engagement, be
actvely involved in the daily fieldwork. This policy guarantees the proper and efficient
performance of the audit process, educates the Engagement Partner as to City processes and
issues, and provides fl~e City with on-site expertse in the areas of governmental auditing,
accounting, compliance, and CUrrent developments. Consequen~Iy, one Partnex wi~h over
fifteen years' experience and four professionals with combined experience of over twenty years
wilI be assigned full ffme to perform the audit requirements of the City during 2004. In
subsequent years, the Manager will be responsible for daily fieldwork and the Engagement
Partner's role will evolve to on-site supervision, direction, 'review, addressing of compliance
issues and update of City staff on current developments. Additionally, because of the
importance of the City's audit to the development of our Firm, a second partner will be actively
involved wifl~ the audit, serving as the Technical Partner providing specific expertise as needed.
We are committed to providing appropriate and related experience, personal involvement, and
a broad business perspective to p~oduce a quality end product within the time frames required.
Governmental and Non-Profit Accounting Experience
The Firm's par~-ners and professional staff assigned to the City have performed audi~s,
accounting services and consulting services for numerous governmental entities including, bug
not limited to:
Governmental
· City of Pleasanton, California
· Pleasanton Redevelopment Agency, Pleasanton, California
· City of Walnut Creek, California
· Town of Danville, California
· Danville Community Development Agency, Danville, California
· Danville Lighting and Assessment District, California
· Danville PUblic Financing'Authority, Danville, California
· - City of Fremont, California
· Fremont Redevelopment Agency, Fremont, California
· City of Huntington Beach, California
5
CiTY OF~DUBLIN /~ o~, 077
Profile of the Firm
Governmental (continUed)
· City of Sunnyvale, California
· ' Sunnyvale Redevelopment Agency, Surm.vvale, California
· City o£ San Mateo, California
· San Mateo Redevelopment Agency, San Mateo, California
· City of Vacaville, California
· Vacaville Redevelopment Agency, VacavilIe, California
· City of Richmond, California
· City of Vallejo, California
· Valtejo Redevelopment Agency, Valtejo, California
· Vallejo Public Financing Authority, Vallejo, California
City of Fairfield, California
· Fairfield Redevelopment Agency,'FairfieId, California
· City of Hercules, California
· Hercules Redevelopment Agency, Hercules, California
· City o£ San Leandro, California
· San Leanclro Redevelopment Agency, San Leanctrc, California
· City of Los Altos, California
· City of Menlo Park, California
· Belie Heaven Child Care, Menlo Park, California
· Menlo Park Redevelopment Agency, Menlo Park, California
· City o£ Eureka, California
· Eureka Redevelopment Agency, Eureka, California
· Eureka Hazardous Waste Management Authority, Eureka, California
· City of Ceres, California
· Ceres Redevelopment Agency, Ceres, California
· City of Placerv/lie, California
· Placerville Redevelopment Agency, Placerville, California
· City of Reedley, California
· Reedley Redevelopment Agency, lteedley, California
· County of Colusa, Colusa, California
· Colusa County Justice Court, Colusa, California
· County of Modoc, Alturas,'California
· Modoc County Justice Court, Alturas, California
· County of Del Norte, Crescent City, California
· Del Norte Justice Court, Crescent City, California
· City of Hermosa Beach, California
· City of Shafter, California
· Shafter Redevelopment Agency, Shafter, California
· Bertsch-Ocean View Community Service District, Crescent City, California
· Big Rock Community Service District, Crescent City, California
· Church Tree Community Service District, Crescent City, California
· Crescent. Fire Protection District, Crescent Cit?-, California
· Fort Dick Fire Protection District, Crescent City, California
· Gasquet Community Service District, Crescent City, California
· Hunter Valley Community Service District, Crescent City, California
· Klamath Community Service District, Klamath, California
· Ktamath Fire Protection District, Klamath, California
· Redwood Park Community Service District, Crescent City, California
· Smith River Community Service District, Smith River, California
· Smith River Fire Protection District, Smith River, California
· Smith River Cemetery District, Smith River, California
· California Maritime Academy, Valiejo, California
6
CITY OF DUBLIN
Profile of the Firm
Non-Profit Organizations
· San Diego Community College DistricL San Diego, California
· San Diego Unified School Dislxict, San Diego, California
· Stanford University, Palo Alto, California
· United Way, Oakland, California
· March of Dimes, Oakland, California
· The W6rld Trade Center Association of Orange County, Irvine, California
· FulIerton, Arboretum Authority, Fuilerton, California
. The Master Chorale of Orange County~ Costa Mesa, California
· California State University-'FulIerton, Fulterton, California
· Rossmoor Leisure World, Walnut Creek, California
· Skagg's Foundation, Oakland, California
· ACTS For Children, Bloomington, California
· 2nd Life Foundation, Los Angeles, California
· Santa Aha Economic Development Corporation, Santa Ama, California
· KPBX Public Radio, Spokane, Washington
· Texas Tech University, Lubbock, Texas
Other Accounting and Auditing Experience
The Firm has also conducted engagements with similar requirements as those-of the City for the
following private sector entries:
· Crown-Zellerbach (timber products), San Francisco, California
· Grubb & Ellis Development Corporation (real estate), San Francisco, California
· Bank of America [banking), San Francisco, California
· Fireman's Fund Insurance Companies*(insurance), Novato, California
· Bechtel Group of Companies (construction), San Francisco, California
· Silverado Country Club (hospitality), Napa, California
· Commerce Bank [banking), Newport Beach, California
· E1 Dorado Bank [banking), Laguna Hills, California
· The Bank of I-Iemet (banking), Riverside, California
· pacific Mutual Insurance Companies (insurance), Newport Beach, California
· Santa Fe Escrow (escrow services), Orange, California
· Automated Data Technologies (electronics), Santa Aha, California
· American Express Insurance Companies (insurance), New York, New York
· Gulf Oil Company (oil and gas), Houston, Texas
Additionally, the Firm has conducted audits of various Measures, parking citation systems,
TDA funds, and pension plans. The Firm is also registered under HUD and is qualified to-
perform housing audits. W~ have performed housing audits for Vallejo, Fairfield, Oceanside,
Vacaville, and Richmond.
Each audit engagement included financial audits in accordance .with the various authoritative
auditing standards, complfance audits in accordance with OMB A-133, internal control
evaluation, operational reviews, on-going advisory support, and updates on recent
governmental accounting and financial reporting developments.
· .CITY OF DUBLIN
Profile of the Firm
We will adhere to generally accepted auditing standards as promulgated by the AICPA, United
States General Accounting Office, and the California State Controller's Office.
The Firm's Partners are current members of the California Society of Municipal Finance
Officers, have been members of various national and State municipal accounting committees,
and both Mr. Caporicci and Ms. Raissian are national reviewers for the GFOA.
Ms. Raissian MBA, CPA, the Engagement Partner, has been with the Firm.for 7 years. She has
also served as Finance Manager for the City of Sunnyvale and Acting Assistant Finance Director
for the City of Glendora. The Technical Engagement Partner, Mr. Caporicci CGFM, CPA,
served with Coopers & Lybrand (currently PriceWaterhouse/Coopers) for over 11 years and
was head of its governmental audit practice for the Southwest Region, which included offices in
Houston, Austin, New Orleans, and Oklahoma City. Mr. Caporicci also provides ongoing
governmental accounting expertise to several of the "Big 4" firms. The Firm's operational
policies, personnel development activities, engagement planning, control, and direction
practices, client interaction philosophies, and commitment to a quality end product are based on
the Partners' past experience and knowledge.
We'offer the full range of accounting and finance services to the governmental sector. These
services include:
· Financial audits
·Compliance audits
· Tax advice
· Cost allocation and indirect cost rate studies
· Development of financial and accoUnting policies and procedures
· Investment review and compliance evaluation
· Financial analysis regarding bond offerings
. Comfort letters
· Operational reviews
· Data processing reviews and studies
· Technical guidance on existing and upcoming accounting issues
· Training seminars
Consequently, Firm personnel have conducted numerous internal control reviews, and studies,
finance persmmeI evaluations, organizational structure evaluations, compliance audits (State
and Federal), short-term and long-term business plans, property and equipment inventories,
and investment portfolio evaluations.
The Firm also has conducted IT system reviews and studies. IT processing wilt be tested as part
of auditing the input/output controls in the major accounting systems. In addition, auditing of
IT will include its operations and evaluate its internal controls including administration,
Security, back-up routines, disaster recovery plans and simulated testing, etc.
CITY OF DUBLIN
Profile of the Firm
Independence
The Firm meets the independence requirements as defined by the U.S. General Accounting
Office's Standards for Audit of Governmental Organizations, Programs, Activities 'and Functions, and
the American Institute of Certified Public Accountants and California State Society of Certified
Public Accountants as promulgated in various auditing and professional standards.
Additionally, the Firm is independent of ali component units Of the City as defined by those
standards.
The Firm has had no prior relationships with the City. The Firm will provide the City written
notice of any professional relationships entered into during the period of this agreement with
the City.
License to Practice in State of California
The Firm 'and ali key professional staff assigned to the City's audit are properly licensed to
practice as Certified Public Accountants in the State of California.
The Fh-m is registered with the AICPA and the sfate Society of CPAs.
The Firm has met all required State and local laws, rules, and regulations.
Quali _ty Control Review
The Firm is a member of the AICPA Quality Review Program. The program is designed to
identify weaknesses in policies and procedures relating to the conduct of accounting services.
In 2002, another quality review of the Firm's policies, practices, and procedures was conducted.
The reviewers made an independent assessment of the Firm's quality control policies and
procedures and inspected the working papers and reports on a representative sample of
accounting and auditing engagements. The Firm's administrative fries and records were also
reviewed and our professional personnel interviewed.
After thorough study of the Firm's procedures and work practices, the reviewers concluded that
our firm complies with the stringent quality control standards., established by the American
Institute of CPA's (AICPA).
In evaluating the Firm's quality controls, a quality reviewer considers, among other things,
what a firm does 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.
CITY OF'DUBLIN
Profile of the Firm
Using g~idelines established by the AICPA, the reviewers determined that the Firm has an i
effective quality control system and that our accounting and auditing work conforms to
professional standards. ~'~
Our continued participation in periodic quality reviews and our voluntary membership in the
AICPA and California ,Society~of CPAs support the Firm's commitment to quality and our high '~-
standards for client service.
There have not been any state or federal disciplinary actions taken or pending against the Firm
nor have there been any negative federal or state desk review findings to report.
The reviewer's report follows.
DENNIS E. D~ca~;m CPA
JOHN Lz~Ias, CPA
STEPHEN C. ~kI. IAMS; CPA
............ E~iIDIO DELCONTE.
· ' Cerli~ed ~biic~l£to~t~n: 75 gusine'ss Consultants
To the Partners
CAPORICCI & LARSON, CPAs
Costa Mesa, California
We have reviewed the system of quality control 'for the a~counting and
auditing practice of Caporicci & Larson, CPAs (the firm) in effect
for the year ended December 3!, 2001. A system of quality control
encompasses the firm's organizational structure and the policies
adopted and procedures established to provide it wit.h reasonable
assurance of conforming with professional standards. .The elements
of quality control are described in the Statements on Quality Control
Standards issued by the American Institute of Certified Public
Accountants (AICPA). The design of the system and compliance with
it are the responsibility of the firm. Our responsibility is to
express an opinion on the design of the system, and the firm's
compliance with the system based on our review.
Our review was conducted in accordance with standards established by
the Peer Review Board of the AICPA. In performing our review, we
obtained an understanding of the system of quality control for the
firm's accounting and auditing practice. In addition, we tested
compliance with the firm's quality control policies and procedures
to the extent we considered appropriate. These tests covered the
application of the firm's policies and procedures on selected
engagements. Because our review was based on selective tests, it
would not necessarily disclose all weaknesses in the system of
quality control or all instances of lack of compliance with it.
Because there are inherent limitations in the effectiveness of any
system of quality conurol, departures from the system may occur and
not be detected. Also, projection of any evaluation of a system of
quality control to future periods is subject to the risk that the
system of quality control may become 'inadequate because of chanqes
in conditions, or because the degree of compliance with the policies
and procedures may deteriorate.
In our opinion, the system of quality control for the accounting and
auditing practice of Caporicci & Larson, CPAs in effect for the year
ended December 31, 2001, has been designed to meet the requirements
of the quality control standards for an accounting and auditing
practice establi, shed by the AICPA and was complied with during the
year then ended to provide the firm with reasonable assurance of
conf6rming with professional standards.
CITY OF DUBLIN c~! ~'6~i~.~7~
Summary. of Firm's Qualifications
Partner,' 'Supervisory_ and Staff Qualifications and Experience
The Engagement Team will normally consist' of five individuals who provide a broad business
perspective and significant experience in governmental and non-profit 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 partners of the Firm.
It is Firm policy to require the Engagement Partner, during the first year of the engagement, to
be actively involved in the daily fieldwork. This policy g-uarantees the proper and efficient
performance of the audit process, educates the Engagement Partner as to City processes and
issues, and provides the City with on-site expertise in the areas of governmental auditing,
accounting~ and current developments.
The Engagement Team will be led by Nasi Raissian, MBA, CPA a partner of the Firm, who has
over fifteen years of audit and business experience. Her diversified background offers the
technical qualities required of the governmental and non-profit areas and the necessary Where-
with-all to properly evaluate the entire accounting process, develop opportunities to improve
the accounting process, and to offer practical business recommendations.
The second member of the Engagement Team is Gary M. Caporicci, CGFM, CPA, a partner of
i_he Firm. Gary's background includes over thirty years of audit and business experience
encompassing both the public and non-profit sectors. Gary, over the years, has been active in
the California State Society of Certified Public Accountants' Municipal Accounting Committee
where he developed several municipal accounting guidelines, the Municipal Accounting
Officers Association, and the GFOA where he serves as a national financial statement reviewer.
Gary also teaches municipal accounting courses at a local university. He will serve as Technical
Partner.
The ffrird member of the Engagement Team is Ahmed BadawL CPA. Mr. Badawi will be the
Manager of. the engagement. Mr. Badawi's background includes over six years of accounting
and auditing experience. He has participated in the audits of several city and county
governments, as wel] as non-profit entities. Mr. Badawi has also assisted several cities in their
efforts to publish their CAFRs in compliance with GASB 34.
The fourth member of the Engagement Team is Brian Kelly. Mr. Kelly will be the Senior on the
engagement. Mr. Kelly's background includes over eight years of accounting and auditing
experience including four years with the State Board of Equalization. He has assisted numerous
cities in their effOrts to convert to GASB 34.
13
CITY OF DUBLIN
Summary o£ Firm's Qualifications
The fifth member of the Engagement Team is Eva Kjoss. Ms. Kjoss's background includes over
seven years of accounting experience. Ms. Kjoss has participated in several city and county
audits.
The estimated number of hours each Engagement Team member is scheduled to provide the
City during the first audit year is as follows:
Nasi Raissfan, CPA, MBA (Engagement Partner) 40
Gary M. Caporicci, CPA, CGFM (Technical Partner) 10
Ahmed Badawi, CPA (Manager) 40
Brian Kelly (Senior) 160
Eva Kjoss (Professional Staff) 140
Administrative Staff 25
Total }[ 415
Each member of the Engagement Team participates in Continuing Education programs offered
by the American Institute of Certified Public Accountants and California State Society of
Certified Public Accountants and each has met the continuing education requirements for
municipalities. The Firm also maintains a comprehensive training program targeted at
appropriate professional staff levels. It utilizes in-house developed educational programs,
AICPA and California CPA Society educational programs, and on-the-job training.
14
CITY OF DUBLIN
Summary of Firm's Qualifications
Ahmed Badawi Certified PubticAccountant Manager
LengTth of Career
. Six yea_rs experience in various accounting related posifions.
Professional Experience
· Par~al listing of clients with. similar needs as the City:
City of Fremont, CA_.'
City of Richmond, CA.
City of San Leandro, CA.
City o£ San Buenavent~a, CA.
City of Eureka, CA.
City o£ Corona, CA.
City 0£ Chula Vista, CA.
City of Claremont, CA.
City of Oceanside, CA.
City of Cypress, CA.
City of Ridgecrest, CA.
· Has performed numerous Single Audits, ~rahsportation development act audits, and OCJ2v
field audi~s.
Education
· BS Degree in Accounting from the University of Alexandria, Egypt.
Continuing Education
· Various municipal accounting courses offered by the California State Society of CPAs and
local universities including (has met the educational requirements):
- Governmental Financial Reporting Standards and Practices.
- Yellow BoOk: Government Auditing Standards.
- Municipal Accounting.
- Single Audit.
19
CITY OF DUBLIN ~ ~7~' ~'"~,
Summary of Firm's Qualifications ~
Brian Kelly Senior
Length of Career
· Eight years experience in various accounting related positions including four years as an
auditor for the California State Board of Equalization.
Professional Experience
· Partial listing of clients with similar needs as the City:
City of Menlo Park, CA.
Town of Atherton, CA.
City of Vallejo, CA.
City of Vacavilte, CA.
City of San Leandro, CA.
City of Fairfield, CA.
City of Fremont, CA.
City of Los Altos,
City of Clayton, C.A.
City of Santa Cruz, CA.
City of San RafaeI, CA.
City of Placerville, CA.
Solano County Transportat/on Authority
Education
· BS De~ee in Accounting from St. Mary's College, Moraga, California.
Continuing Education
. Various municipal accounting courses offered by the California State Society of CPAs, local
universities, and in-house training seminars including (has met the educational
requirements):
- Governmental Financial Reporting Standards and Practices.
- Yellow Book: Government Auditing Standards.
- Municipal Accounting.
- Single Audit.
20 ~
CITY OF DUBLIN g ~.c~ '7')
Summary of Firm's Qualifications
Nasi Raissian Certified Public Accountant Engagement Partner
Length of Career
· Fifteen years experience in various accounting related positions
· Two years with the City of Sunnyvale as. the Finance Manager
· Seven years with Caporicci & Larson, CPAs
Professional Experience
· Partial lis~ing of clients:
· City of Fairfield, C.A. City of Richmond, C.A.
City of Oceanside, C.A.CA. City of Redondo Beach, CA.
City of Corona, CA. City of Ceres, C.A.
City of Camarillo, CA. City of San Buenaventura, CA.
City of Claremont, CA City of Avalon
City of Saratoga City of Brawley, CA
City of Shafter, CA. City of Cypress CA.
County of Modoc~ Alturas, CA. County of Trinity, Weaverville, CA.
Avalon Hospital Modoc Community Hospital
Orange County Business Council
Education
· BA Degree in Economics from Midcllebury College, Vermom
· MBA Degree in Accounting from National University, California
Continuing Education
· Various municipal accounffng courses offered by the California State Society of CPA's and
local universities including (has met the educational requirements):
- Governmental Financial Reporting Standards and Practices
- Yellow Book: Government Audi~_ng Standards
- Municipal Accounting
- Single Audit
17
CITY OF DUBLIN ~ O'~-]-1 ~ ~
Summary of Firm's Qualifications ~
Gary M. Capo~:icci Certified Public Accountant Technical Partner
Len~h of Career.
· t;v,,r years of diversified business experience with 11 years at Coopers & Lybrand
(currendy PriceWaterhouse/Coopers).
Certh~ied Public Accountant for the states of California and Texas.
Prof~:~zsionat Exverience
, Partial listing of dents with similar requirements as the City:
City of Sunnyvale, CA. City of Richmond, CA.
City of Fremonb CA. City of Valtejo, CA.
City of Fairfield, CA. City of VacavilIe, CA.
City of Redondo Beach, CA. City of San Leandro, CA.
City of Oceanside, CA. City of Corona, CA.
Town of Danv~e, CA. City of San Rafael, CA.
City of Camarilto, CA. City of Claremont, CA.
City of Hermosa Beach, CA. City of San BUenaventura, CA.
City of Oakland, CA. City of Placerville, CA.
City of Los Altos, CA. City of Ceres, CA.
City of Sanger, CA. City of Brawley, CA.
OCJP, State of California. City of Reedley, CA.
Anaheim Redevelopment Agency, CA.
Edt~.cs.~ion
· BS Degree in Accounting from Armstrong College, Berkeley, California (1968).
Pro£essional Activities
· Member, Governmental Accounting and Auditing Committee (7 years).
· Past Chairman, C$CPA local committee on Governmental Accounting and Auditing (5
years).
· Past national reviewer for the GFOA.
~ Principal writer of various California Committee on Municipal AccoUnting (CCMA)
s
, Ps_st Co-Chairms_n (2 years) and speaker (5 years) at various CSCPA Governmental Units
::or2:erences.
Ras't ma:3nber of the Texas Goverrumental Accounting and Auditing Committee.
!rst?uchoz for the CSCPA in areas of governmental and non-profit accounting and
:~:3'h;uc~.o~- ]:o~: 't'!'te Arzte::ica:r~ !rsfitute of Certified Public Accountants.
. .-~.c.i,'unc.!: ?:?ofessor at Na'.:ionaI University with emphasis on Accounting for Governmental
.~.nd .~-~, ,~, ~.,, oft ~ En!:ities, P:'incipies of Auditing, and Advanced Accounting.
Cc:::.' ~ !'::.!.!~}.n.g Education
?-z;~4 met the cuzren't ;~;ove:,':?;:,~T~,en.'t:aI CPE educational requirements to perform audits on
govern'mental entities.
18
CITY OF DUBLIN
Summary of Firm, s Qualifications
Eva Kjoss Professional Staff
Len~h of Career
· Seven years experience in various accounting related positions.
Professional Experience
· Partial listing of clients with similar needs as the City:
County of Contra Costa, CA.
City of San RafaeL CA.
City of San Mateo, CA.
City of Sunnyvale, CA.
City of Camarillo, CA.
City of Pittsburg, CA.
City of Brisbane, CA.
City of Walnut Creek, CA.
South Bavside System Authority, Redwood City, CA.
Suni/ne Transit Agency, Thousand Palms, CA.
EducaHon
· BS Degree in Business Accounting from University of Phoenix, San Francisco, CA (2002).
Continuing Education
Continuing Education
· Various mtmicipal accounting courses offered by the California State Society of CPAs and
local universities including (has met the educational requirements):
- Governmental Financial RePorting Standards and Practices.
- Yellow Book: Government Auditing Standards.
- - Municipal Accounting.
- Single Audit.
CITY OF DUBLIN
Summary of Firm's Qualifications '~']~,
Similar Engagements with Other Governmental Entities
Of the many governmental audits with s~l~ requirements as the City that we have
conducted, we have selected the following governmental engagements for you to contact.
Total
Staff
Governmental Agency_ Hours Scope of Work Date Contact & Telephone #
· Town of Danville 420 Financial Audit/Single Audit 1995/ Betty Yu
Community Development Agency Financial Audit 1996/ Finance Manager
Financing Authority Financial Audit 1997/ (925) 314-3323
Audit Partner - Gary-Caporicci 1998/
Audit Manager - Eileen Cheng 1999/
2000/
2001/
2002/
2003
· City,o£ San Mateo 700 Financial Audit/Single Audit 2002/ I-Iossein Golesban
San Mateo Redevelopment Agency Financial Audit 2003 Financial Services Manager
Audit Partner - Steve I_arson GFOA Certification (650) 522-7103
Audit Manager - Eiteen Cheng CSMFO Certification
· City o£ Fairfield 1,000 Financial Audit/Single Audit. 2000/ Bob Leiland
Fairfield Redevelopment Agency Financial Audit 200~1/ Finance Director
Audit Patlner - Gary Caporicci GFOA Certification 2002/ (707) 428-7495
Audit Manager - Brian Ritschel CSMFO Certification 2003
· City of Vacaville 800 Financial Audit/Single Audit 1999/ Ken Campos
Vacaville Redeveiopment Agency Financial Audit 2000/ Finance Manager
Transportation Development Act Financial Audit 2001/ C707) 449-5118
Audit Partner - Gary Caporicci GFOA Certification 2002/
Audit Manager - Mark McGeady CSMFO Certification 2003
· City of Fremont 800 Financial Audit/Single Audit 2000/ Ray Durant
Fremont Redevelopment Agency Financial Audit 2007[/ Accounting Services Manager
Audit Partner - Steve Larson GFOA Certification 2002/ (510) 4944776
Audit Manager - Ahmed Badawi CSMFO Certification 2003
We encourage the City to cai1 the individuals listed here to obtain information on the quality of
the audits and, more importantly, the ability of the audit staff,
CITY OF DUBLIN
Summary of Firm's Qualifications
GASB 34 - Basic Financial Statements and Management's Discussion and Analysis for
State and Local Governments
The Firm has assisted the following governmental agencies in their efforts to pubIish their
CAFRs in compliance with GASB 34:
City ~'; Vacaville County of Contra Costa City of Eureka
Cit,' :~f FremOnt Town of Danville City of Sanger
City of Ventura City of Oceanside City of Richmond
City of Placerville City of Chula Vista City o£ Fairfield
City of San Diego City of Vallejo City of Corona
City of Santa Cruz City of Vista City of Sunnyvale
City of Redondo Beach City of San Rafael City of San Leanclro
City of Menlo Park City of Hermosa Beach - City of Hercules
City of Brisbane City of Shafter City of Camarillo
City of Saratoga City of Claremont
In addition, Mr. Caporicci has been serving as instructor for the GFOA, GASB, and California
Society of CPAs on GASB 34 training classes. He also presented at the 2000 GFOA National
Conference in Chicago, Illinois and authored and instructed a GASB No. 34 course for the
California CPA Education Foundation in 2000, 2001, 2002, and 2003. In 2001 and 2002, Mr.
Caporicci participated as a member of the Governmental Accounting Standards Board (GASB)
Task Force on Deposits and Investment Risks Disclosure. He has also participated on numerous
panels and seminar speaking assignments on the subject. Ms. Raissian converted the Citv of
Sunnyvale's financial statements into the GASB No. 34 format during her employment with the
CiPy of Sunnyvale as its Finance Manager.
As you can see, we are sufficientlv knowledgeable about the requirements of GASB 34 and
stand ready to assist the City in its efforts to comply with GASB 34.
The following page is a letter dated July 12, 2000 received from Mr. 'Tom Allen, Chairman of the
GASB commending the City of Corona and our Firm for the effort.
401 Merritt 7. P.O. Box 5116, Norwalk. Connecticut 06856-511§ I 203-847-0700 ext. 200 ? '~
Fax: 203-849-97'14 3.~ ~
'rOM I_ ALLEN
Chairman
July 12, 2000
Mayor Jeffrey P. Bennett and City Council Members
City of Corona Califomia
815 West Sixth Street
Corona, CA 92882
Dear Mayor and Council Members:
I recently received a copy of the City of Corona comprehensive annual financial report
for the fiscal year ended June 30, 1999. Your city is one of the first governments to have
issued financial statements in accordance with the recently issued reporting standard,
GASB 'S:tatement 34, Basic Financial Statements---and Management'x Discussion and
Analysis--for State and Local Governments.
As you know, the Governmental Accounting Standards Board (GASB) sought to improve
financial reporting in a number of ways. The GASB believes that the. improvements in
reporting cost of services information and the overall financial position of the
government to taxpayers, governing boards, and other financial statement users result
from the implementation of Statement 34. Therefore, we encouraged early
implementation so that this information would be available to those users on a more
timely basis.
We are extremely pleased, and impressed, by your city's ability to prepare the new
financial statements in such a timely fashion. I was particularty impressed with the city's
reporting of alt of its infrastructure, and your decision to include info..,zrnafion on the
condition assessment of your city streets as called for under the modified approach for
reporting infrastructure.
Your car!y implementation is a tribute to your outstanding finance director, Elray Konkel,
and to Gary Caporicci and his audit firm of Caporicci, Cropper & Larson. I also want to
commend you as the city's governing body for supporting the efforts to provide your
citizens and other financial statement users, with a more comprehensive reporting of the
city's financial operations well in advance of the effective date of the standard. It is my
hope that these users of your financial statements will recognize your efforts.
Mayor Jeffrey P.-Bennett and Council Members
July I2, 2000
Page Two
If it is agreeable with you, I would appreciate a list of local media representatives that I
could send a letter to encouraging them to recognize the efforts of your city in being one
o~' the "pioneers" in improved financial reporting to citizens and other financial statement
users. Please provide that list to Mary Milligan at: mmilligan@gasb.org.
I look forward to hearing, from you and congratulations for a job ,,veil done.
S~erely,
~Tom L. Allen
cc: William P. Workman, City Manager Elray H. Konkel, Finance Director.
Gary Caporicci, Audit Firm of Caporicci, Cropper'& La-son
John C. Whitman, Engineering Firm of Charles Abbott and Associates
Tla/lct~erx/bcnnett.do¢.
i
25
CITY OF DUBLIN
Firm's Approach to the Examination
Understanding of Requested Services
The City desires an audit and expression of an opinion in accordance with generally accepted
accounting principles on the fairness of presentation of its basic financial statements for the
years ending June 30, 2004 through 2008.
Ali audit work and the resultSng final opirdons and financial reports are to be completed and
issued no later than the published time frames as noted in the Requesf For Proposal (the "RFP'q.
The audit of these financial statements shalI be conducted in accordance with generally accepted
auditing standards as set forth bv the American Institute of Certified Public Accountants, the
standards for financial audits set' forth in the U.S. General Accounting Office's Government
Auditing Standards, various standards established by the Government Accountirrg Standards
Board.
The preparation of any financial reports will be consistent with requirements of CSMFO and
GFOA certification procedures and guidelines.
The City also desires compIiance audits on Measure B activities, MTC activities and the SLTPP.
The Firm will review the City's GANN Appropriations Limit calculations for appropriateness
and accuracy.
The City receives levels of federal financial assistance which requires an audit to be conducted
in accordance with the Single Audit Act of 1984, as amended in 1996, and OMB Circular A-133,
as amended, relating to compliance with various laws and regulations and proper internal
control. Reports are to be issued by the Firm indicating amount of federal financial .assistance,
description of the various specific federal assistance programs in which the City participates
either directly or as a pass-through agency, degree of compliance with appropriate laws and
regulations, quality of the internal control structure, and reportable conditions and findings, if
arty.
Should any conditions be discovered requiring corrective action, the Firm will provide a
detailed ddscription .of the findings and recommended actions as to their resolution.
The Firm will submit a letter to management detailing reportable conditions found during the
audit. Non-material instances of noncompliance shall be reported in a separate management
letter, if appropriate, and any other observations or recommendations determined to be
informative to City management.
The City also desires the Firm to conduct one TOT audit annually.
27
CITY OF DUBLIN
Firm's Approach to the Examination
The Firm will be available to provide advice and counsel regarding significant accounting
matters during the year.
The Firm's Partners and Staff welcome the opportunity to present the financial reports to the
City Council and will be ready to respond to questions from the Council and Citizens of the
ci .
The Firm will retain ail audit workpapers for at least 7 years and make them available for
review during normal business hours to individuals specifically authorized by the City.
Obi ecfive of O~r Services
The basic objective of our audit of the City is to conduct an ex&mination of the financial
statements in accordance with generally accepted auditing st~mdards 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 ~mother real value of our audit lies in meeS_ng 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 progrmn
which includes the use of audit programs, careful planning, use of computerized audit software
and internal control evaluation & documentation software, and objective review procedures.
On-site staff will use Firm supplied portable IBM compatible computers and printers.
CITY OF DUBLIN
Firm's Approach t:o t:he Examination
Work Plan
The work plan has been designed to efficiently and effectveIy 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 Cityfs timeline.
We will conduct the necessary audit steps to adequately perform:
· Planning of the engagement.
· Evaluation of ~he existing internalcon~rol s~ruc~ure.
· Determination of de~ee of compliance with laws, regulations, grant provisions, and
City approved policies.
· Vallidation of account balances.
· Determination o£ competency of finance depar~aent staff.
· Verification of reasonableness of management estimates.
Audit. Approach
Our approach ~o performing audit services to ~e City is'based on a ~horough understanding of
its business. ~Additionally, our governmental and non-profit audit knowledge assists us in
performing the required work with minimum interruption ~o your office operations. We will
concentrate on important ma~ers rather than become bogged down in minor details, thus
assuring that your audit is performed efficiently, effectively, and in the least amount of ~ne and
disruption.
We will also review procedures and controls over the accounting process, evaluate the accuracy
o~ recorded ~ransacfions, and perform other tests and investigative steps as considered
appropriate to render an opinion on the financial statements of the City. Our audit approach
will adhere to generally accepted auditing s~andards of the AICPA, the U.S. General AccOunting
Office, and the California Sta~e Con~oIler.
Assuming the City's £inancial records are in adequate condition and no unusual issues are
discovered during the audi~ process, we will issue the fLrst dra~ of the necessary financial
reports ~or ~he year ended 1une 30, 2004 no later ~an October 3~, 2004. AdditonatIy, we will
issue the first draft o£ ~he vario, us auditors' reports as required by OMB A-133 and the
Management Le~er no later fl~an October 31, 2004. l~inal reports will be issued within 5 days
a~er the approval ~rom City Management.
Members of ~he Firm will be available ~or routine consultation whenever City staff considers i~
necessary.
We will review ail financial reports and any findings, observations, etc. with key members o~
the City's management before reports are finalized.
We will be available to present the £inancial report, ff desired by ~he City's management.
29
CITY OF DUBLIN Z/O F~'7 '7 i
Firm's Approach to the Examination c?
Audit Schedule
Award of Contract ~-
July Interim Audit Procedures:
July - Planning and Administration Partner 5
Manager 5
Senior 10
· Review and obtain copies of key work papers of
prior audit firm.
· Entrance Conference with City Management to
discuss audit approach, timing, assistance, and
issues·
· 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 City confirming audit
procedures, timing, and assistance.
. Prepare detailed audit work plan and audit
programs, audit budget and staffing schedule, list
of schedules to be prepared by City staff, and
provide to Cii~ Management.
July - Internal Control Structure Partner 10
Manager 10
Senior 40
Staff 40
· Meeting with key Finance Division personnel.
· Obtain and document understanding of key internal
control systems through walk-throughs, interviews
of staff, and review of supporting documentation:
- Budgeting System.
- Revenue, utility bil~ng, accounts receivable, and
cash collections.
- Purchasing, expenditures, accounts payable, and
cash disbursements.
- Payroll
- Federal Financial Assistance.
- Other systems.
CITY OF DUBLIN ' 'q/.;~;"~'
Firm's Approach to the Examination
Audit Schedule (continued)
July - Internal Control Strdcture (continued)
· Perform statistical testing of the internal control
system and evaluate the effectiveness of theCity's
systems. Select iarge 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.
· Provide to the City' s management a memo
concerning management letter points and identify
issues, if any.
July - Single Audit Compliance Partner 10
Senior 15
Staff 40
· Obtain or prepare Federal Financial Assistance
Schedule.
· Perform audit tests of grant programs and
compliance with Federal Law and Regulations.
Review grant documents, select sufficient nmnber
of transactions to test for compliance of Federal
General and Specific Requirements.
July - Other Audit Tasks Partner 5
Senior 5
Staff 10
· Review m/nutes of City Council meeiings and other
key committees.
· Coordinate with City staff and ]prepare of all
appropriate confirmation requests including:
- Bank Accounts.
- investment pool accounts.
- Accounts receivable.
- Federal grants.
- Revenue from governmental agencies.
31
CITY OF DUBLIN
Firm's Approach to the Examination
Audit Schedule (continued)
· Coordinate with City staff and prepare o~f all
appropriate confirmation requests including
(continued):
- Bond and'other debts.
- Pension pIan.
- Attorney letters.
- Others, as required.
· Hold progress conference with City Management.
· Hold exit conference with City Management.
October Year end Audit Procedures: Partner 15
Manager 20
Senior 60
Staff 4O
· 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 ur~recorded liabilities by
reviewing disbursements.subsequent to Jr_ne 30,
testing terms of contractual obligations, and
interviewing City staff.
· Perform review of subsequent events by
discussions with City Management and review of
ali minutes of City Council and key committees.
· Hold exit conference with City Management.
32
CITY OF DUBLIN ~ ~ 'q'
Firm's Approach to the Examination
Audit Schedule (continued)
O~tober A~adit Reports: Partner 5
Manager .~ 5
Senior 30
Staff 10
Admin 25
· Review drafts of City and Redevelopment Agency,
other financial statements, and present audit
reports.
· Review draft of Single Au&it Reports concerning
internal control structure, compliance with Iaws
and regulations, and administering of federal
financial assistance programs.
· Review draft of management letter points.
· Present above draft reports to the City Management.
Within 5 Final Audit Reports, Financial Statements, Management
working days Letter, and Single Audit Reports, and Compliance
after approval. Reports delivered.
Summary of Professional and Administrative Staff hours for the Year Ending June 30, 2004:
Nasi Raissian, CPA, MBA (Engagement Partner) 40
Gary M. Caporicci, CPA, CGFM (Technical Partner) 10
Alamed Badawi, CPA (Manager) 40
Brian Kelly (Senior) 160
Eva Kjoss (Professional Staff) 140
Administrative Staff 25
Total 415
33
Firm's Approach to the Examination
Our staff maintains detailed and automated records for all hours worked and costs incurred on
an engagement. Should the City desire a distribution of fees by type of service, we would be
pleased to provide such a'breakdown in our billings.
The Engagement Team will normally conduct its audit efforts during standard business hours
of the City. Should any changes be necessary, approval will be obtained from the Finance
Division.
34
Professional Fees
35
CITY OF DUBLIN q~ cY~ '~1 '
Professional Fees
We are cornmiRed to the performance of a high quality audit at the most reasonable fee level
possible, both initially and throughout the engagement. In the interest of developing a long
term relationship, we will absorb all costs required to familiarize ourselves with the operations
and accounting systems. Additionally, ali Partners will be available to provide advice and
consultation as necessary to the City. These costs will also be absorbed by the Firm.
Total All-Inclusive Maximum Price
For the year ending June 30, 2004 $ 30,450
Total Base Year $ 30,450
For the year ending lune 30, 2005 31,450
For the year ending Jnne 30, 2006 31,410
For theyear ending June 30, 2007 31,400
For the year ending June 30, 2008 31,400
Total Renewal Years 125,660
All-Inclusive Price $ 156,110
Rates by Partner, Supervisor, and Staff
For the year ending ~une 30, 2004:
Nasi Raissian, CPA, MBA (Engagement Partner) $ 150 40 $ 6,000
Gary M. Caporicci, CPA,. CGFM (Technical Partner) 150 10 1,500
Ahmed Badawi, CPA (Manager) 125 40 5,000
Brian Kelly (Senior) 105 160 !6:800
Eva Kjoss (Professional Staff) 85 140 11,900
Admirdstrative Staff 50 25 1,250
Total 415 42,450
Less Discount (12,000}
All-Inclusive Maximum Cost $ 30,450
Detail of rates for subsequent years is included in the section labeled "Schedule of Professional
Fees and Expenses."
37
CITY OF DUBLIN ~Q d~,~,q c"~
Professional Fees :~
Discount
Because of the importance of your City to our strategic plan, we have discounted our normal ,..
fee structure and will assume ali costs required to familiarize our staff with the City'S
operational environment. We strongly believe that the City should not be penalized for
introducing new auditors to its operation. This discount in fees, already included in the Alt
Inclusive Maximum Price, amounts to:
200~ $ 12,000
2005 2,500
2006 2,0O0
2007 2,000
2008 2,000
Total $ 20,500 i}
We believe the above pricing is fair and reasonable to both the City and to the Firm.
The above Ali-Inclusive Maximum Price includes all direct and indirect costs including printing,
out-of-pocket expenses and an escalation factor for inflat/on.
Out of Pocket Expenses
All out of pocket expenses will be absorbed by the Firm.
Rates for Additional Professional ServiCes
we are hesitant to simply state hourly rates, as often times the needs of the client and the
specific task directly impact the billing rates for our services. We maintain a policy of flexible
billing rates and try to work within client cost-control parameters. However, to provide the
City with additional information, the following are our current published billing rates:
Partner $ 200.00
Senior Manager $ 150.00
Manager $ 125.00
Senior $ 105.00
Professional Staff $ 85.00
Administrative Staff$ 60.00
38
CITY OF DUBLIN
Professional Fees
It is Firm policy, duting the term of the audit contract, to match the lowest qualified bid on
additional :financial related services.required by the City.
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
summarize the amount o£ time spent during the month and bill the City based on the hourly
rates published in the proposal 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. Based on
our previous experience, the City can anticipate three billings as followS:
For interim work ~5 %
For year end work 15
At presentation and acceptance
of final reports
Total 100 %
Summary_
We are able to offer Our services at this fee level because:
· We possess the necessary experience and technical knowledge to perform an
'effective and efficient audit.
· We are very familiar with the accounting requirements of the City through past
relationships with similar organizations.
· We use a comprehensive advanced planning process involving both our
personnel-and the City's key personnel.
· We desire' a long-term relationship with the City.
In order to maximize the cost/benefit relationship of our services, we will also attempt to
identify sigrdficant areas for improvements and cost savings. These observations will be
communicated to the City Management.
39
CITY OF DUBLIN'
Total Costs of Ail Years
ProfessionaI Fees:
Partners $ 7,500 $ 3,000 $ 3,000 $ 3,200 $ 3,200 $ 19,900
Manager 5,000 3,750 4,050 4,050 4,050 20,900
Supervisory Staff 16,800 15,750 14,910 14,700 14,700 76,860
Professional Staff 11,900 10,200 10,200 10,200 10,200 52,700
Other - Administrative Staff Support _ 1,250 1,250 1,250 1,250_ 1,250 6,250
Total Professional Fees 42,450 33,950 33,410 33,400 33,400 176,610
Expenses: -
Meals and lodging - - -
Transportation -' - -
Other - Printing Costs __-
Total Expenses - -
GroTs Charges 42,450 33,950 33,410 33,400 33,400 176,610
Less Discount (12,000) i (2,500) (2,000) (2,000) (2,000) (20,500)
Total AlI-InclusiveMaximnmPrice $ 30,450 $ 31,450 $ 31,410 $ 31,400 $ 31,400 $ 156,110
HOURS ~~;*~ .... ~ il
Pa~ers 50 20 20 20 20
Manager 40 30 30 30 30
Supe~o~ St~ 160 150 142 140 140
Profession~ Staff 140 120 120 120 120
O~er - Adm~afive S~ff 25 25 25 25 25
Total Hours 415 345 337 335 335
41
Fees by Staff Classification
43
CITY OF DUBLIN. ~ / ~) ? 'p
[ Supporting Schedule for year ending June 30, 2004 ]
Professional Fees:
Partners $ 150 50. $ 7,500
Manager 125 40 5,000
Supervisory Staff 105 160 16,800
Professional Staff 85 140 11,900
Other - Administrative Staff Support 50 25 1,250
Total Professional Fees 415 42,450
Expenses:
Meals and lodging
Transportation -
Other - Printing
Total Expenses
Gross Charges k 42,450
Less Discount
Total Normal ,Audit Costs
45
CITY OF DUBLIN
Supporting Schedule for year endingJune 30, 2005
Professional Fees:
Parmers $ 150 20 $ 3,000
Manager 125 30 3,750
Supervisory Staff 105 150 15,750
Professional Staff 85 120 10,200
Other - Administrative Staff Support 50 25 ,, 1,250
Total Professional Fees 345 33,950
Expenses:
Meals and lodging
Transportation
Other - Printing
Total Expenses
Gross Charges I 33,950
Less Discount
Total Normal Audit Costs ] $ 31,450
46
CITY OF DUBLIN
Supporting Schedule for year ending June 30, 2006
professional Fees:
Partners $ 150 20 $ 3,000
Manager 135 30 4,050
Supervisory Staff 105 142 14,910
Professional Staff 85 120 10,200
Other - Administrative Staff Support 50 25 , 1,250
Total-Professional Fees 337 33,410
Expenses:
Meals and lodging
Transportation -
Other - Printing -
Total Expenses -
Gross Charges 33,410
Less Discount [' (2,000)
Total Normal Audit Costs $ 31,410
47
CITY OF DUBLIN
Supporting Schedule for year ending June 30, 2007
Professional Fees:
Partners $
Manager
Supervisory Staff 105
Professional Staff 85
Other - Administrative Staff Support 50
Total Professional Fees 335 33,400
Expenses:
Meals and lodging
Transportation
Other - Printing
Total Expenses -
Gross Charges [ 33,400
Less Discount ~
Total Normal Audit Costs [ $ 31,400
CITY OF DUBLIN
Supporting Schedule for year ending June 30, 2008
Professional Fees:
Partners $ 160 20 $ 3,200
Manager 135 30 4,050
Supervisory Staff 105 140 14,700
Pro£essional Staff 85 120 10,200
Other - Adminislrative Sf~f Support 50 25 1,250
Total Professional Fees 335 33,400
Expenses:
Meals and lodging
Transportation
Other - Printing -
Total Expenses -
Gross Charges
Less Discount
Total Normal Audit Costs [ $ 31,400
49
No Fee Services
51
~ ' No Fee Services
We offer other services at no additional cost to the City. These other services include:
· Providing the City with at least 20 hours o£ additional services in each of the
audit years at. no cost to the City. These hours can be used by the City for
whatever City Management considers appropriate and consistent with the
GAO independence requirements. Some of our clients have asked us to assist
in conversions of IT systems, develop financial projections, evaluate proposal
on in-sourcing of paramedic services, review compliance with investment
policies, evaluate bond offerings from a financial perspective, assist in property
and equipment inventorieS, to name only a few of the special projects for which
the City may desire assistance.
· Providing updates to City finance staff on recent developments in governmental
accounting and reporting at no cost to the City.
--~". O-Performing compliance audit Procedures on Measure B activities at no cost to
the City.
· Performing the agreed upon procedures to review the GANN Appropriations
Limit calculations at no cost to the .City.
· Performing compliance audit procedures on MTC activities at no cost to the City
· Providing ongoing advisory services to respond to questions by City staff to
assist in the running of City operations and implementation of improved
operating pr$cedures at no cost to. the City.
53
55
CITY OF DUBLIN
Conclusion
A client relationship with the City wilt be of great value to our Firm and we welcome the
opportunity to develop a long-term relationship. We are committed to:
· Rendering the highest standard of service.
· Establishing 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 possess the technicaI qualifications and experience to provide the level of service desired
and expected by the City 0f Dublin 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 of Dublin 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.
Costa Mesa, California
March 25, 2004
57
CITY OF DUBLIN
Summary of Firm's Qualifications
The Firm maintains an annual training schedule which officially begins in March when ail
professional and administrative staff attend a comprehensive in-house training session which
includes:
· Review of principles of accounting and financial reporting for state and local
governments.
. Review o£ governmental fund types and account groups.
· Review of Internal Control evaluation approaches.
· 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 workpaper techniques.
· Review of GASB 34 .reporting requirements.
· Review of current issues facing the governmental community.
During the year, professional staff 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 Stahdards.
· Financial Accounting Standards: Comprehensive Review.
· Single Audit.
· Governmental Auditing & Accounting Update.
· Governmental Accounting Principles.
. Comprehensive Review of Generally Accepted Auditing Standards.
The Firm also provides monetary incentives for professional staff to attend university programs
focusing on governmental accounting.
The result of the Firm's training program is the production of a highly educated and competent
municipal audit group capable o£ performing an efficient and effective audit for the City.
The Team members will continue their professional development practices.
The Firm's policy on providing service to our clients includes a commitment to maintairdng
continuity of audit personnel. We can not 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 opporturrities, provide state-of-the-art equipment, provide excellent working
conditions, provide various benefits such as retirement plans, medical plans, profit sharing
programs, educational benefits, and other-such benefits. Additionally, we will guarantee that
any staff member assigned to this engagement will return to the City in subsequent years
15
CITY OF DUBLIN
Summary of Firm's Qualifications
he or she is still with the Firm. We can also guarantee that the two partners 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 partners, 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.
16
CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF DUBLIN AND
CAPORICCI AND LARSON
THIS AGREEMENT for consulting services is made by and between the City of Dublin ("City") and
Caporicci"and Larson ("Consultant") as of ~,qe--26, 2004.
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
'shall provide to City the services described in the Scope of Work attached as Exhibit A at the time and
place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms
of this Agreement and Exhibit A, the'Agreement shall prevail.
1.1 Term of Services. The term'of this Agreement shall begin on the date first noted above
and shall end on December 31, 2008, the date of completion specified in Exhibit A, and
Consultant shall complete the work described in Exhibit A prior to that date, unless the
term of the Agreement is otherwise terminated or extended, as prOvided for in Section 8.
The time provided to Consultant to complete the services required by this Agreement shall
not affect the City's right to terminate the Agreement, as provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession in which Consultant is engaged in the geographical area in
which Consultant practices its profession. Consultant shall prepare all work prOducts
required by this Agreement in a substantial, first-class manner and shall conform to the
standards of quality normallYobserved by a person practicing in ConSultant's profession.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons.
1.4 Time. Consultant shall, devote such time to the performance of se, vices pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Section 1.1 above and to satisfy COnsultant's obligations hereunder.
Section 2. COMPENSATION. City shall pay consultant for services rendered pursuant to this
agreement at the time and in the manner set forth in Exhibits B. City shall pay Consultant for services
rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments
specified below shall be the only payments from City to Consultant for services rendered pursuant to this
Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as
specifically authorized by City, Consultant Shall not bill City for duplicate services performed by more than
one person.
Consulting Services Agreement June 28, 1004
Page 1 of 13
ATTACR1M[ENT 2
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant's estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, th~ parties
further agree that compensation hereunder is intended .to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant Shall submit, invoices, not more often than once a month during the
term of this Agreement, based on the cost for services performed and reimbursable costs
incurred prior to the invoice date. Invoices shall contain the following information:
[] Sedal identifications of progress bills; i.e., Progress Bil No: 1 for the first invoice,
etc.;
[] The beginning and ending dates of the billing period;
[] A Task Summary containing the original contract amount, the amount of prior
billings, the total due this period, the balance available under the Agreement, and
the percentage of' completion;
[] At City's option, for each work item in each task, a copy of the applicable time
entries or time sheets shall be submitted showing the name of the person doing
the work, the hours spent by each person, a bdef description of the work, and
each reimbursable expense;
[] The total number of hours of work performed under the Agreement by Consultant
and each employee, agent, and subcontractor of Consultant performing services
hereunder, as well as a separate notice when the total number of hours of work by
Consultant and any individual employee, agent, or subcontractor of Consultant
reaches or exceeds 800 hours, which shall include an estimate of the time
necessary to complete the work described in Exhibit A;
· The Consultant's signature.
2.2 Monthly Payment.. City shall make monthly payments, based on invoices received, for
services satiSfactorily performed, and for authorized reimbursable costs incurred. City
shall have 30 days from the receipt of an invoice that complies with all of the requirements
above to pay Consultant.
2.3 Final Payment. City shall pay the laSt 10% of the total sum due pursuant to this
Agreement within sixty (60) days after completion of the services and submittal to City of a
final invoice, if all services required have been satisfactorily performed.
2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sum for an~ expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement.
Consulting Services Ag reement June 28, 1004
Page 2 of 13
In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
unless the Agree-~ent is modified prior to the submission of such an invoice by a properly
exebuted change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the following fee schedule:
2.6 Reimbursable Expenses. Reimbursable expenses are ~ncluded in the total amount of
compensation provided under this Agreement that shall not be exceeded.
2.7' Payment of Taxes. Consultant is solely responsible for the payment of employment taxes
incurred under this Agreement and any similar federal or state taxes.
2.8 Payment upon Termination. In the event that the City or Consultant terminates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets in order to verify costs incurred to that date.
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization .from the Contract Administrator,
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall make available to Consultant only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant's use while consulting with City employees and reviewing records and
the information in possession of the City. The location, quantity, and time of furnishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to computer, long-distance telephone or other
communication charges, vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, shall procure "occurrence coverage" insurance against claims for
injuries to persons or damages to property that may arise from or .in connection with-the performance of the
work hereunder by the Consultant and its agents, representatives, employees, and subcontractors.
Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this
section and under forms of insurance"satisfactory in all respects to the City. Consultant shall maintain the
insurance policies required by this section throughout the term of this Agreement. The cost of such
insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to
Consulting Services Agreement June 28, 1004
Page 3 of 13
commence work on any subcontract until Consultant has obtained all insurance required herein for the
subcontractor(s) and .provided .evidence thereof to City. Verification of the.required insurance shall be
sUbmitted and made part of this Agreement prior to execution. -'
4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain
Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any
and all persons employed directly or indirectly by Consultant. The Statutory Workers'
COmpensation Insurance and Employer's Liability Insurance shall be provided with limits of
not less than ONE MILLION DOLLARS ($1,000,000:00) per accident. In.the alternative,
Consultant may rely on a self-insurance program to meet those requirements, but only if
the program of self-insurance complies fully with the provisions of the California Labor
Code. Determination of whether a self-insurance program meets the standards of the
Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if
insurance is provided, or the Consultant, if a program of self-insurance is provided, shall
waive all rights of subrogation against the City and its officers, officials, employees, and
volunteers for loss arising from work performed under this Agreement.
An endorsement shall state, that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits, except after thirty (30) days' prior wdtten
notice by certified mail, return receipt requested, has been given to the City.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00)
per occurrence, combined single limit coverage for risks associated with the work
contemplated by this Agreement. If a Commercial General Liability Insurance or an
Automobile Liability form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work,to be
performed under this Agreement or the general aggregate limit shall be at least
twice the required occurrence limit. Such coverage shall include but shall not be
limited to, protection against claims arising from bodily and personal iniury,
including death resulting therefrom, and damage to property resulting from
activities .contemplated under this Agreement, including the use of owned and non-
owned automobiles.
4.2.2 Minimum scope of coverage, Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 (ed, 11/88) or Insurance Services Office form number GL 0002 (ed. t/73)
covering comprehensive General Liability and Insurance Services Office form
number GL 0404 covedng 13road Form Comprehensive General Liability.
Automobile coverage shall be at least as broad as insurance Services Office
Consulting Services Agreement June 28, 1004
Page 4 of 13
Automobile Liability form CA 0001 (ed. 12/90) Code 1 ("any auto"). No
endorsement shall be attached limiting the coverage.
4.2.3 Additional requirements. Each of the following shall be included in the
insurance, coverage or added as an endorsement to the policy:
a. City and its officers, employees, agents, and volunteers shall be covered
as insurers with respect to each of the following: liability arising out of
activities performed 'by or.on behalf of Consultant, including the ~nsured's
general supervision of Consultant; products and completed operations of
Consultant; premises owned, occupied, or'used by 'Consultant; and
automobiles owned, leased, or used by the Consultant. The coverage
shall contain no special limitations on the scope of protection afforded to
City or its officers, employees, agents, or volunteers.
b. The insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis.
c. An endorsement must state that coverage is primary insurance with
respect to the City and 'its officers, officials, employees and volunteers,
and that no insurance or self-insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
d. Any failure of CONSULTANT to comply with reporting provisions of the
policy shall not affect coverage provided to CITY and its officers,
employees, agents, and volunteers.
e. An endorsement shall state that coverage shall not be suspended, voided,
'canceled by either party, reduced in coverage or in limits, except after
thirty (30) days' prior written notice by certified mail, return receipt
requested, has been given to the City.
4.3 Professional Liability Insurance. Consultant, at its own cost and expense, shall
maintain for the period covered by this Agreement professional liability insurance for
licensed professionals performing work pursuant to this Agreement in an amount not less
than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals' errors
and omissions.
4.3.1 Any deductible or self4nsured retention shall not exceed $150,000 per claim.
4.3.2 An endorsement shall state that coverage shall notbe suspended, voided,
canceled by either party, reduced in coverage or in limits, except after thirty (30)
days' prior written r~otice by certified mail, return receipt requested, has been given
to the City.
Consulting Services Agreement June 28, 1004
Page 5 of 13
4.3.3 The policy must contain a cross liability or severability of interest clause.
4.3.4 The following provisions shall apply if the professional liability coverages are
written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least five years after completion of the Agreement or the
work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant must provide extended reporting coverage for
a minimum of five years.after completion of the Agreement or the work.
The City shall have the right to exercise, at the ConsUltant's sole cost and
expense; any extended reporting provisions of the policy, if the Consultant
cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City
prior to the commencement of any work under this Ag reement.
4.4 All Policies Recluirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
4.4.2 Verification of coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish City with certificates of insurance and with original
endorsements effecting coverage required herein. The certificates and
endorsements for each insurance poliCY are to be signed by a person authorized
by that insurer to bind coverage on its behalf. The City reserves the right to
require complete, certified copies of all required insurance policies, at any time.
4.4.3 Subcontractors. Consultant shall include all subcontractors as insureds under its
Policies or shall furnish separate certificates and endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.4.4 Variation. The City may approve a variation in the foregoing insurance
requirements, upon a determination that the coverages, scope, limits, and forms of
Consulting Services Agreement June 28, 1004
Page 6 of 13
such insurance are either not commercially available, or that the City's interests
are otherwise fully_.~rotected.
4.4.5 Deductibles and Self-Insured Retentions. Consultant shall disclose to and
· obtain the-approval of City for the self-insured retentions and deductibles before
beginning any of the services or work called for by any term of this Agreement.
During the period covered by this Agreement, only upon the prior express written
authorization of Contract Administrator, Consultant may increase such deductibles
or self-insu red retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self-insured retention levels with a requirement that Consultant
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.4.6 Notice of Reduction in Coveraqe. In the event that any coverage required by
this section' is reduced, limited, or materially affected in any other manner,
Consultant shall provide written notice to City at Consultant's earliest possible
~opportunity and in no case later than five days after Consultant is notified of the
change in coverage.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, atits sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for;
Consultant's breach:
[] Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
[] Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and/or
[] Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Consultant shall
indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers,
employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions,
damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to
property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole
or in part, by the willful misconduct or negligent acts or omissions of Consultant or its employees,
subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character
Consulting Services Agreement June 28, 1004
Page 7 of 13
of their work. The foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage
.to property, or violation of law arises wholly from the negligence or willful misconduct of the City or its
officers, employees, agents, or volunteers and (2) the actions of Consultant or its employees,'
subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or
violation of law. It is understood that the duty of Consultant to indemnify and hold harmless includes the
duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance
certificates and endorsements required under this Agreement does not relieve Consultant from liability
under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall
apply to any damages or claims for damages whether or not such insurance policies shall have been
determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the
provisions of this Section and that it is a material element of consideration.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services
under this Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions
for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the
payment of any penalties and interest on such contributions, which would otherwise be the responsibility of
City.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times dudng the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. City shall have the
right to control.Consultant only insofar as the results of Consultant's se trices rendered
pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;
however, otherwise City shall not have the dght to control the means by which Consultant
accomplishes services rendered pursuant to this Ag reement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and
all claims to, any. compensation, benefit, or any incident of employment by City, including
but not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
em ployer contributions and/or employee contributions for PERS benefits.
6.2 Consultant No Agent. Except as City may specify in writing, Coi~sultant 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, pursuant to this Agreement
to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law, The laws of the State of California shall govern this Agreement,
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Page 8 of 13
7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all. laws applicable to the performance of the work hereunder.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from'another governmental entity,'Consultant and any subcontractors
shall comply with all applicable rules and regulations to which City is bound by the terms of
such fisCal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and
its em ployees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals of whatsoever nature that are legally required to practice their respective
professions. Consultant represents and warrants to City that Consultant and its
employees agents, any subcontractors shall, at their sole cost and expense, keep in effect
at all times during the term of this Agreement any licenses, permits, and approvals that are
legally required to practice their respective professions. In addition to the foregoing,
Consultant and any subcontractors shall obtain and maintain during the term of this
Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Ol~Dortunib/. Consultant shall not discriminate, on the
basis of a person's race, religion, color, national.origin, age, physical or mental handicap or
disability, medical condition', marital status, sex, or sexual orientation, 'against any
employee, applicant for employment, subcontractor, bidder for a subcontract, or participant
in, recipient of, or applicant for any services or programs provided by Consultant under this
Agreement. Consultant shall comply with ali applicable federal, state, and local laws,
policies, rules, and requirements related to equal opportunity and nondiscrimi nation in
employment, contracting, and the provision of any services that are the subject of this
Agreement, including but not limited to the satisfaction of any positive obligations required
of Consultant thereby.
Consultant shall include the provis ~ons of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
Consultant may cancel this Agreement upon 60 days' written notice to City and shall
include in such notice the reasons for cancellation.
in the event of termination, Consultant shall 'be entitled to compensation for services
performed to the effective date of termination; City, however, may condition payment of
such corn pensation upon Consultant delivering to City any or all documents, photographs,
Consulting Services Agreement June 28, 1004
Page 9 of 13
computer software, video and audio tapes, and other materials provided to Consultant or
prepared' by or for Consultant or the City in connection with this Agreement.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
~,greement beyond that provided for in Subsection 1.1. Any such extension shall require a
written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if City grants such an extension, City shall have' no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this
Agreement. Similarly, unless authorized by the Contract Administrator, City.shall have no
obligation to reimburse Consultant for any otherwise reimbursable expenses incurred
during the extension period.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant's unique personal corn petence, experience, and specialized
personal knowledge Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of.the Contract Administrator. Consultant shall not subcontract any portion of the
performance contemplated and provided for herein; other than to the subcontractors noted
in the proposal, without prior written approval of the Contract Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall survive
the termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, City's remedies shall included, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans~ specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete 'the work
described in Exhibit A that is unfinished at the time of breach and the amount that
City would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
Consulting Services Agreement June 28, 1004
Page 10 of 13
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant's Performance. 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.
9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers~ books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of three(3) years, or for any'longer period
required by law, from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and .Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time dudng regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State. Auditor, at the
request of City or as part of any audit of the City, for a period of three (3) years after final
payment under the Agreement.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for
declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing
party shall be entitled to reasonable attorneys' fees in addition to any other relief to which
that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. in the event that either party brings any action against the other under this
Agreement, the parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County of Alameda or in the United States District Court for
the No rthern District of California.
Consulting Services Agreement June 28, 1004
Page 11 of 13
10.3 Severabiiity. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or.unenforceable, the provisions of this Agreement not so
- adjudged shall remain in full 'force and effect. The invalidity in whole or in part of any .
provis~on of this Agreement shall not void or affect the 'validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific prevision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
10,6 Use of Recycled Products. Consultant shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Consultant in a "conflict of interest," as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Consultant shall not employ any City official in the work performed pursuant 'to this
Agreement. No-officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090 et seq.
Consultant hereby warrants :[hat it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Consultant was an
employee, agent, appointee, or official of the City in the previous twelve months,
Consultant warrants that it did not participate in any manner in the forming of this
Agreement. Consultant understands that, if this Agreement is made in violation of
Government Code §1090 et. seq., the entire Agreement is void and Consultant will not be
entitled to any compensation for services performed pursuant.to this Agreement, including
reimbursement of expenses, and Consultant will be required to reimburse the City for any
sums pa~d to the Consultant. Consultant understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of Government Code § 1090 and, if
applicable, will be disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by the City Manager
("Contract Administrator"). All correspondence .shall be directed to or through the Contract
Administrator or his or her designee.
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Page 12 of 13
10.10 Notices. Any written notice to Consultant shall be sent to:
Stephen L. Larson
Caporicci and Larson
180 Grand Avenue, Suite 1365
Oakland, CA 94610
Any written notice to City shall be sent to:
Carole A. Perry, Administrative Services Director
City of Dublin
100 Civic Plaza
Dublin, CA 94568
10.11 integration. This Agreement, including the scope of work attached hereto and
incorporated herein as Exhibit A, represents the entire and integrated agreement between
City and Consultant and supersedes all prior negotiations, representations, or agreements,
either written or oral.
CITY OF DUBLIN CONSULTANT
Richard C. Ambrose, City Manager Stephen L. Larson, Partner
Attest:
Kay Keck, City Clerk
G:~Audit~Agreements\agreement for audit services 2004.doc
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EXHIBIT A
SCOPE OF SSEVICES
Exhibit A - Scope of.Services
I. General
This. agreement shall cover the required reports for the' fiscal years ending June 30, 2004
through 2008. These audits are to be performed in accordance with the provisions
contained in this Exhibit. Further, in accordance with AICPA procedures the City Staff
may be required to execute an Engagement Letter, specifying terms and Scope of the
audit.
The City of Dublin desires the auditor to express an opinion on the fair presentation of its
basic financial statements in conformity with generally accepted accounting principles.
The audit shall include an examination of all funds of the City of Dublin by Certified
Public Accountants duly authorized to practice as such by the State of California. The
auditor shall also be responsible for performing certain limited procedures involving
required supplementary information required by the Governmental Accounting Standards
Board, as mandated by generally accepted auditing standards.
Auditor shall prepare all trial balance worksheets and summary schedules including
balance sheets, revenues, expenditures, and changes in fund balance for each fund of the
City. Data source for the schedules will be the computerized financial statements
supplied by the City. Report preparation and necessary editing shall be the responsibility
of the Auditor.
Auditor shall submit for management review a draft of all reports. The final reports are
subject to review by an ad-hoc City Council subcommittee. Auditor shall incorporate as
part of the basic proposal meeting time with Staff and the committee for the purpose of
discussing the audit or management letter and its conclusions.
II. Basic Reports To Be Issued
Following the completion of the audit of the fiscal year's financial statements, the auditor
shall issue the following:.
A. Independent Auditor's ,Report - A report on the fair presentation of the financial
statements in conformity with generally accepted accounting principles, based
upon an audit of the Basic Financial Statements. The Auditor shall also prepare
and deliver a City Council Summary of the Audit l~eport. The City must receive
final versions of this report and all schedules prepared by the auditor for the City's
Consulting Services Agreement June 28, 2004
Page 1 of 4
EXHIBIT A
Comprehensive Annual Financial Report by December 1,st so the-City can meet
the filing deadlines for the California Society of Municipal Finance Officers
(CSFMO) and Government Finance Office's Association (GFOA) filing deadlines
for their annual CAFR award programs.
B. A Management Letter which includes findings, statements, observations,
opinions, comments, or recommendations related to: (1) Systems of internal
control based upon the auditors' understanding of the control structure and
assessment of control risk. (2) Compliance with applicable laws and regulations.
(3) Accounting systems, functions, procedures and processes especially with
regard to cost effectiveness.
C. Alameda County Transportation Authority - Measure B Local Distribution
Compliance Audit.
D. Agreed Upon Procedures Performed Related to the calculation of the Gann
Appropriations Limitation.
E. Annual Report of Financial Transactions to State Controller, must be prepared and
available for City Staff review 10 business days prior to the statutory submittal
deadline.
F. Annual Street Report to the State Controller, must be prepared and available for
City Staff review 10 business days prior to the statutory submittal deadline.
IlL Additional Reports Which May Be l~equested Annually .At City Option
Due to the fluctuation in the receipt of special grant funds the need for some reports will be
based upon whether the City meets the audit threshold for the specific program, and/or whether
the City received any funds under the program.
A. Single Audit Report of Federal Financial Assistance
B. Metropolitan Transportation Commission (MTC) Bicycle / Pedestrian Projects in
accordance with the Transportation Development Act (TDA).
C. State Transportation Improvement Program.
D. Transportation Clean Air Program
E. Transient Occupancy Tax Audit of one hotel in.the City of Dublin
Consulting Services Agreement June 28, 2004
Page 2 of 4
EXHIBIT A
Reports on such other audits or agreed-upon .procedures as may be agreed to in writing and as
state_d'in, a supplemental audit agreement. The scope of the study and associated costs shall be
approved by City prior to beginning work. Payments for these additional services shall be
reimbursed at the rates noted in Exhibit B .of this contract.
IV. Number of Copies of Report To Be Produced
A) Annual Financial Report - 75 copies
B) City Council Summary - 20 copies
B) Management Letter - 20 copies
C) Measure B Compliance Audit - 20 copies
D) 'Gann Limit - 20 copies
E) Single Audit, if applicable, 20 bound reports.
F) MTC Audit, if applicable, 20 bound reports.
G) Transient Occupancy Tax Audit, if applicable, 20'reports
H) ST~ and other Grant special audits, if applicable, 20 bound reports.
I) State Controllers Report of Financial Transactions - 2 copies
J) State Controllers Annual Street Report - 2 copies
V. Auditing-Standards To Be Followed
The audit shall be performed in accordance with generally accepted auditing standards as
set forth by the AICPA "Audits of State and Local Governmental Units" and publications
of the Governmental Accounting Standards Board. As applicable, the provisions of the
Single Audit Act of 1984 and the provisions of U. S. Office of Management and Budget
(OMB) Circular A-133, Audits of State and Local Governments shall also be addressed.
VI. Special Considerations
1. The City of Dublin has been awarded the Government Finance Officers Association of
the United States and Canada (GFOA) Certificate of Achievement for Excellence in
Financial Reporting Outstanding Financial Reporting Programs for thirteen consecutive
years. The City of Dublin anticipates that it will continue to send its' comprehensive
annual financial report to GFOA and CSFMO for review in their CAFR award
programs.
The Auditors shall ensure that the format of reports shall allow the City to continue'to
meet the requirements in effect for each year for .these programs. This also requires that
the Auditor ensure that the audit report and financial statements are complete by
December 1 st of each year. The AuditOr shall also assist with developing responses to
any comments or deficiencies noted by GFOA and CSFMO.
Consulting Services Agreement June 28, 2004
Page 3 of 4
EXHIBIT A
2. Due to potential development projects, the City of Dublin currently anticipates that
during, the term of this agreement, it may prepare one or more official statements in
connection with the sale of debt securities. The Fin~_iicin~ documents may contain the
general purpose financial statements and the auditor's report thereon. The auditor shall
be required, if requested by the fiscal advisor and/or the underwriter, to issue a "consent
and citation of expertise" as the auditor and any necessary "comfort letters."
VII. Assistance To 'Be Provided By The City
City Staf£will be available, during the audit to assist the auditor by providing information,
documentation and explanations. City Staff will type the necessary confirmation letters
prepared by'the Auditor.
VIII. Auditor Staffing
An integral part of this agreement is the assignment and use of Audit staff who possess a
significant level of experience performing governmental audits. Caporicci and Larson
shall assure that the Engagement Parmer, Technical Partner, Manager and Senior are
activ.ely involved in the completion of the field work as stated in the Proposal dated
March 25, 2004. For Fiscal Year 2003-2004 Audit the audit team shall include Nasi
Raissian as Engagement Parmer, Gary Caporicci as Technical Partner, Ahmed Badawi as
Manager and and Brian Kelly as Senior. Any proposed changes to the staffing of these
positions in future years shall be subject to the review and approval of the City.
G:~Audit~Agreements\agreement for audit services 2004.doc
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EXHIBIT A
PAYMENT SCHEDULE
Fiscal Year Ended June 30th
Reports --. 2004 2005 2006 2007 2008
City Audit, including CAFR and $26,450 $27,450 $27,410 $27,400 $27,400
Management Letter
Measure B Audit Report no cost no cost no cost no cost no cost
Gann Limit Review Report no cost no cost no cost no cost no cost
State Controller's Report 2,500 2,500 2,500 2,500 2,500
Annual Street Report 1,500 1,500 1,500 1,500 1,500
Total $30,450 $31,450 $31,410 $31,400 $31,400
Optional Reports To Be Requested at City Option
Single Audit $1,000 $1,000 $1,000 $1,000 $1,000
MTC or Transportation Clean Air no cost no cost no cost no cost no cost
STIP 500 500 500 500 500
Transient Occupancy Tax Audit 3,000 3,000 3 000 3.000 3,000
Total $4,500 $4,500 $4,500 $4,500 $4,500
The City shall pay the Auditor the payment due under this contract as the audit work is completed and
within 30 days of receipt of invoices from the Auditor. The payment for services may be billed and paid
for as the work progresses. A 10% retention may be withheld.by the City for all amounts invoiced until
the City has received the final copies of the reports noted above.
Reports on such other audits or agreed-upon procedures as may be agreed to in writing and as stated in
a supplemental audit agreement. The scope of the study and associated costs shall be approved by City
prior to beginning work. Payments for these additional services shall be reimbursed at the hourly rates
listed below:
Fiscal Year Ended June 30th
Rates by Staffing Level 2004 2005 2006 2007 2008
Partner $200 $205 $210 $215 $220
Senior Manager $150 $155 .$160 $165 $170
Manager $125 $130 $135 $140 $145
Senior $105 $110 $115 $120 $125
Professional Staff $85 $90 $95 $100 $105
Administrative Staff $60 $65 $70 $75 $80
g:\audit\agreements\payme nt schedule.xls