CITY OF VISALIA

REQUEST FOR PROPOSAL

RFP #08-09-37

Request of Proposal (RPF) for Financial Auditing Services

Proposer Conference: On January 12, 2004 a conference will be held at City Hall, 707 West Acequia, Visalia, California, at 11:00 a.m. in the City’s Council Chambers. This is an opportunity to ask questions regarding the program and the Request for Proposal requirements.

Submittal:One (1) unbound original and four (4) copies must be received on or before: 3:00p.m. on February 4, 2004

Addressed to:Purchasing Division

Address:707 W. Acequia, Visalia, CA93291

Mark envelope:RFP No. 08-09-37 Financial Auditing Services

Proposals received after the time and date stated above shall be returned unopened to the proposer.

INQUIRIES:

Direct questions for clarification of this Request for Proposal document to Purchasing Division (559) 713-4334, (559) 713-4423, or Fax (559) 713-4802.

CITY OF VISALIA

STATE OF CALIFORNIA

REQUEST FOR PROPOSAL

RFP 03-04-30

SEALED PROPOSALS will be received by the Purchasing Division located at 707 West Acequia, Visalia, CA93291, until 3:00 P.M., February4, 2004for:

Financial Auditing Services

A proposal conference will be held onJanuary 12, 2004,at City Hall, located at 707 West Acequia, Visalia, California 93291, at 11:00 a.m. in the City Council Chambers.

Contract documents may be inspected and obtained in the office of the Purchasing Division, 707 W. Acequia Ave., Visalia, California93291 or by calling (559) 713-4334, (559) 713-4423 or by FAX (559) 713-4802 or web site

The City hereby affirmatively ensures that Minority Business Enterprises will be afforded full opportunity to submit proposals in response to this notice and will not be discriminated against on the basis of race, color, national origin, ancestry, handicap, gender, or religion in any consideration leading to the award of contract.

The City also hereby affirmatively ensures that Disadvantaged Business Enterprises (DBE), as defined in 49 CFR, Part 26, shall have the maximum opportunity to participate in the performance of contracts financed, in whole or in part, with Federal funds under this agreement. As such, Disadvantaged Business Enterprises (DBEs) will be afforded full opportunity to submit bids in response to this notice and will not be discriminated against on the basis of race, color, national origin, ancestry, disability, gender or religion in any consideration leading to the award of contract.

No qualified disabled person shall, on the basis of disability, be excluded from participating in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity leading to the award of a contract.

The right is reserved by the City of Visalia to reject any or all proposals, to waive any irregularities or informalities not affected by law, to evaluate the proposals submitted and to award the contract according to the proposal which best serves the interests of said City.

Dated this December 15, 2003, at Visalia, California.

Publication Dates: December 15, 2003

December 20, 2003

TABLE OF CONTENTS

TITLEPAGES

  1. Introduction...... 4-5
  2. Information...... 4
  3. Background...... 4
  4. Purpose and Objective...... 4
  5. Order of and Timeline for Completion of Work...... 5
  6. RFP/Agreement Schedule...... 5
  7. Scope of Service...... 5-6
  8. Consultant Responsibilities...... 5
  9. Required Product...... 6
  10. Services of the Consultant...... 6
  11. City Responsibilities...... 6
  12. Proposal Content and Format Requirements...... 7-9
  13. General Information...... 7
  14. Proposal Project Approach...... 7
  15. Staff Qualifications and Related Experience...... 8
  16. Proposed Fee Structure and Schedules...... 8
  17. Conflict of Interest...... 9
  18. Consultant Selection Procedure...... 9-10
  19. Criteria...... 9
  20. Weight of Criteria...... 10
  21. Background Check...... 10
  22. Award of Contract...... 10
  23. General Conditions...... 10-13
  24. Important Notice...... 10
  25. Contracting Agency...... 11
  26. Legal Responsibilities...... 11
  27. Permits and Licenses...... 11
  28. Insurance...... 11
  29. Contract Requirements...... 13-17
  30. Withdrawal of Proposals...... 14
  31. Rejection of Proposals...... 14
  32. Evaluation/Award of Contract...... 14
  33. Proposal Pricing Guidelines...... 15
  34. Assignment of Contract...... 16
  35. Termination of Contract...... 16
  36. Right to Require Performance...... 16
  37. Ethics in Public Contracting...... 16
  38. Equal Employment Opportunity...... 17
  39. Venue...... 17
  40. Proprietary Information...... 17
  41. Incurring Costs...... 17

VII. Attachments...... 18-29

Collusion Affidavit

Workers’ Compensation Insurance Certificate

Equal Employment Opportunity Compliance Certificate

Sample Contract

I.INTRODUCTION

A.Information

The City of Visalia is requesting proposals from qualified and experienced consultants for conducting the Comprehensive Annual Financial Audit of the City’s financial records to express an opinion on the City’s general purpose financial statements and supplemental financial schedules.

A proposal conference will be held on January 12, 2004 at 11:00 a.m. at City Hall, located at 707 W. Acequia, Visalia, CA 93291, in the Council Chambers. This is an opportunity for Proposers to ask questions about the program and the Request for Proposal requirements.

One (1) unbound original and four (4) copies of the proposal are to be submitted to the Purchasing Division, located at 707 W. Acequia, Visalia, CA93291, on or before February 4, 2004, at 3:00 p.m.

This Request for Proposals is being issued by the City of Visalia Administrative Services Department. Unless otherwise directed, all communications regarding this Request for Proposals should be directed tothe Purchasing Division at (559) 713-4334, (559) 713-4423, or fax (559) 713-4802.

Any revisions to the Request for Proposals will be issued and distributed as addenda. Proposers are specifically directed not to contact any other City personnel for meetings, conferences or technical discussions related to this Request for Proposal. Failure to adhere to this policy may be grounds for rejection of proposals.

B.Background

Visalia is located east of State Highway 99 and along State Highway 198. The City’s population is approximately 121,498. Its incorporated area covers approximately 36 square miles. The City’s Administrative Services Department is responsible for the Financial function of the City which includes accounting, utility billing, purchasing, redevelopment and grants, treasury, budgeting and audit. Administrative Services is also responsible for Information Technology, Personnel and Risk Management. The City of Visalia is a full service municipality and provides a full range of services to its citizens. General Fund Services include Police and Fire; Community Development (planning, economic development, CDBG and redevelopment); Public Works (streets, parks, and maintenance); Community Services (recreation, senior centerand arts) in addition to General Administrative Services. The other municipal services include Transit, Airport, Convention Center, Wastewater, Storm Water, Solid Waste, and a Golf Course.

Since 1985, the City has received the Government Finance Officers Association’s “Certificate of Achievement for Excellence in Financial Reporting”. The City continues to strive for this distinguished award and its high standards of financial reporting as well as the California Society of Municipal Finance Officers “Outstanding Award for Financial Reporting”.

C.Purpose, Objective and Services to be Provided

  1. Audit the City of Visalia’s Comprehensive Annual Financial Report for the Fiscal Years Ending June 30, 2009, 2010, and 2011.
  1. The proposal will be for three years with an option to have annual renewals for an additional 2 years.
  1. The objective of the audit is to express an opinion on whether the City’s financial statements are fairly presented in all material respects in conformity with generally accepted accounting principles and to report on the fairness of the supplemental information when considered in relation to the basic financial statements as a whole.

D.Order of and Timeline for Completion of Work

The Statements should be completed by December 1, 2009 for submittal to the Government Finance Officers Association (GFOA) for the Certificate of Achievement for Excellence in Financial Reporting. A camera ready print master should be delivered at this time.

E.RFP/AGREEMENT SCHEDULE

EventDate of Event

RFP Available to the public...... December 15, 2003

Proposer Conference at 11:00 a.m. @ 707 W Acequia...... January 12, 2004

RFP due at 3:00 pm @ 707 W Acequia...... February 4, 2004

Short list established/firms notified...... February 11, 2004

Interviews/Presentations-short-listed firms(if required)...... March 3, 2004

Award of contract @ City Council Meeting...... March 15, 2004

Contract begins...... March 15, 2004

Italicized items are at the City’s option. The City reserves the right to award contract solely on the basis of proposal content.

II.SCOPE OF SERVICES
  1. Consultant Responsibilities

The proposal submitted in response to this RFP shall include a detailed scope of work and schedule consistent with the purpose and objective of the project identified above under the Introduction Section and as follows.

1. Assist in the preparation of the City of Visalia’s Comprehensive Annual Financial Report for the Fiscal Year Ending June 30, 2009. This would be a separate item that will be determined by the City at a later date.

2. Audit the component unit financial statements of the Redevelopment Agency of the City of Visalia and test forcompliance with Guidelines for Compliance Audits of California Redevelopment Agencies and issuance of all applicable reports.

3. Optional preparation of the City Annual Report of Financial Transactions for the State of California. (State Controller’s Report). This would be a separate item that will be determined by the City at a later date.

  1. Testing of two programs for compliance with the Single Audit Act including its amendments and the applicable laws and regulations and issuance of the Single Audit Report.
  1. Perform procedures and issue opinion to comply with Proposition 111 appropriation limit requirements. (Gann Limitation).
  1. Report on internal controls relating to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance the “Government Auditing Standards”, issued by the Comptroller General of the United States. Compliance would be with the independent rules for all audits in accordance with Generally Accepted Government Auditing Standards (Yellow Book).
  1. Review of internal controls as is required by the Single Audit Act including all Amendments and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Ensure that the City meets the requirements of SAS112.
  1. Submit a Management Report to the City of Visalia’s governing Council and Redevelopment Board with comments and recommendations pertaining to the City’s financial operation. This would include observances of the adequacy of the system of internal control, and if weaknesses are noted, make appropriation recommendations.
  1. Verify total future Retiree Health Benefit Costs if required by GASB. Verify the solvency of the City’s Self Insurance Health plans as required the Knox-Keene Act (Health and Safety Code 1349.2).
  1. Performance of one additional mini-audit per year to be determined by the Finance Department in conjunction with the Audit.

The City reserves the right to accept or reject any of the individual components of the work product items.

B.Required Product

The Independent Auditor’s Report on the City of Visalia’s Financial Statements and the required supporting schedules as outlined above and in the Introductory Section.

  1. Services of the Consultant

The City of Visalia will require the consultant to perform the tasks detailed above and in the Introductory Section so that the contract will be completed by December 1, 2009.

  1. City Responsibilities
  • Compensate the consultant as provided in the contract agreement.
  • Provide the Consultant with work space at the City to accommodate up to 4 individuals during the audit preparation time.
  • Complete all the preliminary closing of the City’s financial books by October 17, 2009.
  • Provide a "City Representative" who will represent the City and who will work with the consultant in carrying out the provisions of the RFP.
  • Examine documents submitted to the City by the Consultant and timely render decisions pertaining thereto.
  • Give reasonably prompt consideration to all matters submitted by the Consultant for approval to the end that there will be no substantial delays in the Consultant's program of work.
III.PROPOSAL CONTENT AND FORMAT REQUIREMENTS

The following are proposal requirements. Respondents are requested to organize their proposal into sections with tabs corresponding to the listed selection criteria as follows. You must answer the following questions in the same sequence as below. A screening committee will evaluate the completeness of the response to the RFP.

Consisting of???

A.General Information
  • Firm name, address, telephone number and fax number.
  • Account Representative or other person to contact for clarification of any item contained in the proposal. Include telephone and fax numbers if different from above.
  • Specify type of organization (individual, partnership or corporation) and if applicable indicate whether you are:

a.Small Business.

b.Disadvantaged Business.

c.Minority and/or Women-Owned Business.

  • Provide your Federal Tax ID Number and City of Visalia Business Tax Certificate Number.
  • A copy of the most recent quality control review report (peer review report) is to be submitted with the proposal as required by Government Auditing Standards.
  • Personnel of the Proposer’s Firm must be identified in the proposal with their background and the firm must give assurances of continuity of its personnel. A contact person needs to be identified.
  • The Proposer must submit documentation as to its independence, experience with municipal audits, license to practice in the State of California, firm capacity and size, experience in Single Audit along with a Statement of Qualifications.
  • Provide surety information for all sureties – General and Automobile Liability, E/O and Worker’s Compensation.
  • References and Referrals
B.Proposed Project Approach
  • Summarize your approach and understanding of the project and any special considerations of which the City of Visalia should be aware. Indicate clearly, the levels of participation you will expect from City of Visalia staff in the fulfillment of the contract. Please indicate the proposed time table for preliminary field work, cash analysis, and final field work.
  • Meeting(s)
  • Completion date: December 1, 2009

Exceptions to the requirements of the RFP should be clearly delineated in this section.

In addition, you are invited to include a maximum of two (2) pages of information not included, nor requested in this RFP, if you feel it may be useful and applicable to this project.

The information in this section will aid the City in the refinement of the scope of work during contract negotiations.

C.Staff Qualifications and Related Experience
  1. Staff Qualifications and Experience

This section should demonstrate the qualifications of all professional personnel to be assigned to this project by providing resumes/experience summaries describing their education, credentials, related experience and their proposed roles for this contract. Note: Consultant may not substitute any member of the project team without prior written approval of the City.

  1. Related Experience

Include descriptive information concerning the experience of the firm. Include information about previous audits that might be comparable, including the size and type of the audits and the scope of services provided. In addition, provide references for the three (3) most comparable audits for which your firm has provided, or currently is providing, similar services.

D.Proposed Fee Structure and Schedules

The Proposed Fee Structure and Schedule shall be provided under separate, sealed cover as a part of the RFP submittal.

Provide proposed fees and cost information and recommend a budget plan for all services to be provided in the following format:

  • Proposers should review the requirements of this RFP and address all services in this fee schedule that might reasonably be expected to support the project. Indicate how the City will be invoiced for services, i.e., unit or hourly costs. This information should be detailed and broken down by type of service and units of work or other applicable measure. Proposers should endeavor to provide a comprehensive fee schedule, as the City will not include compensation in the contract for items not addressed.
  • Include a total cost to provide services, based on the consultant’s fee schedule and the scope of work as outlined in this RFP. This cost will be used as a basis for negotiations.
  • The fee proposal submitted under separate sealed cover, along with the proposed project approach, will be used as a basis for any contract negotiations. The actual scope of services and fees included in the contract may be negotiated and may vary to satisfy the City’s actual needs.
  • Fee structure may be broken down for each of the 3 years by: Redevelopment Agency, Single Audit, State Controller’s Report, Mini-Audit, Assistance in Audit preparation, and the City’s Financial Audit.

FY 2009FY 2010FY 2011

City Audit

Redevelopment Agency

Single Audit

State Controller’s Report

Mini-Audit

Assistance in Audit Preparation

Total Cost

E.Conflict of Interest
  • Disclose any financial, business or other relationship with the City or any member of the City staff that may have an impact on the outcome of the project.
  • List current clients who may have a financial interest in the outcome of the project.
IV.CONSULTANT SELECTION PROCEDURE

Selection of the successful proposal shall be generally based on the information provided by the Consultant in response to the Request for Proposals and any subsequent interviews that may be conducted. Consultant interviews will be held solely at the option and discretion of the City of Visalia. The process for selection shall occur in the following sequence:

  • Review Proposals
  • Establish a “short list” of three or more firms
  • Interview “short-listed” firms (at the option and discretion of the City)
  • Identify best qualified firm
  • Award contract

A project Selection Committee, as deemed necessary, will be formed to evaluate the proposals and to make recommendation to the Visalia City Council. This committee may consist of representatives of the user department, members of the community, members of the Council and the Administrative Services Department, and may include a representative knowledgeable in auditing services from outside of the community. Composition and creation of this committee, should one be formed, is at the sole discretion of the City. Names of the Committee members, should one be formed, will not be released prior to the time for interviews.

The Committee will review the proposals for format to ensure conformance with the requirements of the RFP and may select finalists to interview with the Committee as a part of the Committee's evaluation process. The City does not guarantee that an interview will take place, thus reserving the right to select a consultant based solely on the information provided in the proposals received in response to the RFP. Should an interview take place, the key personnel responsible for fulfilling the requirements of the project shall be required to be present for the interview.