1-Final RFP-25-007-Financial Auditing Services.pdf

REQUEST FOR PROPOSAL

(RFP-25-007)

FINANCIAL AUDIT SERVICES

Issued: January 6, 2026

Questions Regarding this RFP Due:

Tuesday, January 20, 2026 at 5:00PM PT

PROPOSAL DUE:

Tuesday, January 30, 2026, at 5:00PM PT

Responses eligible for consideration to this RFP must be submitted to the

WRD Procurement Portal located at https://wrd.bonfirehub.com/ and addressed to the attention of:

Tenisha Simeon, Purchasing/Procurement Officer

Water Replenishment District of Southern California

4040 Paramount Boulevard

Lakewood, CA 90712

Phone: (562) 275-4300 https://wrd.bonfirehub.com/

NOTICE TO PROPOSERS

Request for Proposals

FINANCIAL AUDIT SERVICES

PURPOSE: The Water Replenishment District of Southern California (WRD or District) is seeking proposals from qualified certified public accounting firms (also referred to as

“Consultant” or “Proposer” herein) to provide their expertise and experience in financial auditing services for the District’s upcoming three fiscal years ending in June 2026 through June

2028, with the option of auditing the District’s financial statements for additional three fiscal years. These audits are to be performed in accordance with the provisions contained in this RFP.

The District shall be informed of new developments affecting special district accounting and reporting as well as any other relevant issues. This includes but is not limited to impacts of newly imposed State of California mandated procedures and required changes in grants and procedures.

In addition, the District frequently requests professional advice on accounting matters throughout the fiscal year, and such advice should not be construed as consulting services, nor will compensation for such advice be contemplated unless explicitly negotiated by the District of its agents.

This Request for Proposal (RFP) describes the required scope of work, the information that must be included in the proposal, and the proposal selection process. Proposers are encouraged to carefully review this RFP in its entirety prior to submitting their proposals. Failure to submit information in accordance with these requirements and procedures may be cause for disqualification. This RFP is available for downloading from the WRD Procurement Portal located at: https://wrd.bonfirehub.com/.

SOLICITATION SCHEDULE: Milestones for the RFP process are summarized in the table below. The District reserves the right to modify the schedule below at its discretion. Proper notification changes will be made to interested proposers.

RFP Issued by WRD January 6, 2026

Deadline for Questions Regarding this RFP Tuesday, January 20, 2026, at 5:00PM PT

Proposals Due Friday, January 30, 2026, at 5:00PM PT

Interviews (if conducted) Second or Third week of February 2026

WRD Board Awards Contract March 2026

QUESTIONS REGARDNG THIS RFP: All questions regarding the technical aspects or general requirements/provisions of this Request for Proposal (RFP) must be submitted before the deadline due date under this Solicitation Number and Title (RFP for FINANCIAL AUDIT

SERVICES) through the Opportunity Q&A section via the WRD Procurement Portal at https://wrd.bonfirehub.com/. For guidance on how to submit a question through https://wrd.bonfirehub.com/, please visit https://vendorsupport.gobonfire.com/hc/en-us/articles/6832480724503-How-do-I-contact-the-Project-Owner-

Questions received from prospective respondents, and responses from WRD, will be formally documented through the Opportunity Q&A section table that will be issued and be posted on the

WRD Procurement Portal at: https://wrd.bonfirehub.com/. The Q&A table will be updated regularly as questions are received from prospective respondents.

DEADLINE FOR PROPOSALS: Pursuant to the requirements specified in this RFP and the

WRD Procurement Portal, responses to this RFP must be submitted to WRD no later than

Friday, January 30, 2026 at 5:00PM PT, or such later time that WRD may announce by addendum to proposers via the Procurement Portal at any time prior to the submittal deadline.

Responses received after the deadline will not be considered under any circumstances. HARD-

COPY PAPER, FAXED OR E-MAILED SUBMISSIONS WILL NOT BE ACCEPTED. Only responses properly submitted to WRD’s Procurement Portal will be considered. WRD reserves the right to reject any and/or all responses received.

TABLE OF CONTENTS

SECTION PAGE

Water Replenishment District of Southern California Page i

January 6, 2026

RFP-25-007

FINANCIAL AUDIT SERVICES

1.0 INTRODUCTION

2.0 BACKGROUND

3.0 SCOPE OF WORK

4.0 MINIMUM QUALIFICATIONS

5.0 PROPOSAL CONTENTS

5.1 Title Page

5.2 Cover Letter

5.3 Table of Contents

5.4 Company Background

5.5 Independence

5.6 License to Practice in California

5.7 Engagement Team and Qualifications

5.8 Engagement Overview and Approach

5.9 Additional Services

5.10 Experience and Record of Past Performance

5.11 Prior Engagements with WRD

5.12 Conflict of Interest

5.13 Other Information

5.14 WRD Standard Contract

5.15 Engagement Costs and Labor Hours

5.16 Monthly Billing

6.0 PROPOSAL SUBMISSION REQUIREMENTS

6.1 Proposal Format

6.2 Proposal Signing

6.3 Proposal Submittal Procedures

6.4 Proposal Preparation Costs

6.5 Acknowledgement

7.0 EVALUATION CRITERIA

7.1 Engagement Team and Qualifications

7.2 Engagement Understanding and Approach

7.3 Performance on Similar or Related Engagements

7.4 Billing Rates

7.5 Organizational and Support Resources

8.0 SELECTION PROCESS

9.0 GENERAL PROVISIONS

9.1 Entire Agreement

9.2 Contract Amendments

9.3 Term of Contract

TABLE OF CONTENTS

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FINANCIAL AUDIT SERVICES

9.4 Ownership and Use of Documents

9.5 Audit Rights, Business Records Access and Retention

9.6 Termination

10.0 TERMS AND CONDITIONS

10.1 Proposal Rejection

10.2 Proposal Clarification and Requests for Additional Information

10.3 Proposal Validity Period

10.4 RFP Revisions and Addenda

10.5 Confidentiality

11.0 LEGAL POLICIES

11.1 Compliance

11.2 Governing Laws and Requirements

11.3 Public Releases

11.4 Business License

11.5 WRD’s Property

LIST OF ATTACHMENTS: (Tenisha, I’m not sure if we need these two items)

Attachment No.1: Submittal Checklist Form

LIST OF EXHIBITS:

Exhibit A: Description of Scope of Work and Services

Exhibit B: Key Personnel Participation in Example Projects

Exhibit C: WRD Standard Professional Services Agreement

Exhibit D: Rate Sheet Example

Exhibit E: Sample of Invoice Format

Exhibit F: Acceptance Letter

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1.0 INTRODUCTION

The WRD is a State Special District that was established in 1959 under the California

Water Code (Division 18, §60000 through §60622) to manage the groundwater resources within the Central Basin and West Coast Basin in southern Los Angeles County. WRD’s mission is to provide, protect and preserve high-quality groundwater through innovative, cost-effective and environmentally sensitive basin management practices for the benefit of residents and businesses of these groundwater basins. The aquifers in the Central Basin and West Coast Basin provide for about 40 percent of the total water needs for the people and businesses in the 43 cities covering WRD’s 420-square mile service area.

To accomplish its mission, WRD conducts managed aquifer recharge using imported water, recycled water, and stormwater, prevents seawater intrusion through injection of imported water and recycled water into coastal barrier wells, protects and preserves groundwater quality through monitoring, testing, data analysis, and treatment, and ensures a future supply of reliable groundwater through planning, conjunctive use, and development of new projects. More information regarding the WRD can be found at www.wrd.org.

2.0 BACKGROUND

The District has an operating budget of approximately $102 million in Fiscal Year 2026, which consists of one Replenishment Fund and one Clean Water Fund. The auditor is responsible for the preparation of the Annual Comprehensive Financial Report (ACFR), the State Controller’s Financial Transaction Report, and the Single Audit Report. More detailed information on the District and its finances can be found in the June 30, 2025

Annual Comprehensive Financial Report, which is available on the District’s website at www.wrd.org.

Budget Basis of Accounting

The District prepares its budgets on a basis consistent with generally accepted accounting principles.

Federal Awards

Currently over $750,000 threshold.

Pension Plans

The District participates in the California Public Employees Retirement Systems (PERS), an agent multiple-employer plan. Actuarial services for the plan are provided by PERS.

The District also participates in the California Public Agency Retirement Systems

(PARS) for its Board of Directors.

Software

The District utilizes MIP Software by the Community Brands HoldCo, LLC. The MIP financial modules include General Ledger, Accounts Payable, Accounts Receivable, Fixed Assets, Payroll, Encumbrance and Human Resources.

http://www.wrd.org/ http://www.wrd.org/

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3.0 SCOPE OF WORK

See Exhibit A for the Scope of Work to be performed

4.0 MINIMUM QUALIFICATIONS

To meet the requirements of this RFP, the audit shall be performed in accordance with the following:

1. Generally accepted auditing standards as set forth by the American Institute of

Certified Public Accountants,

2. The standards for financial audits set forth in the U.S. General Accounting

Office’s (GAO) Government Auditing Standards,

3. The provisions of the Single Audit Act of 1984 (as amended in 1996),

4. The provisions of the U.S. Office of Management and Budget (OMB) Circular A-

133, audits of States, Local Governments, and Non-Profit Organizations, Audits of State and Local Governments,

5. Minimum audit requirements and reporting guidelines for Special Districts pursuant to California Code of Regulations, State Controller, Subchapter 5,

1131.2 “Minimum Audit Requirements and Reporting Guidelines for Special

Districts”.

5.0 PROPOSAL CONTENTS

To provide a degree of consistency in review of the written proposals, firms are requested to include the following content in their proposals. The information requested below will be used to evaluate each proposal based on the evaluation criteria outlined in this RFP.

Proposals may be deemed nonresponsive if they do not respond to all areas specified below.

Proposals shall be prepared simply and economically, providing a straightforward and concise description of how the proposal has satisfied all the requirements of this RFP.

Emphasis shall be on completeness and clarity of content with sufficient detail to allow for accurate evaluation and comparative analysis. Excessive or irrelevant materials will not be favorably received.

The following subsections describe the contents required in the proposal. The proposal shall be of such scope and depth to sufficiently describe and demonstrate the Proposer’s understanding of and approach to the engagements.

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5.1 Title Page

Proposer should identify the RFP title, name and title of the firm’s contact person, address, telephone number, fax number, email address, and date of proposal submission.

5.2 Cover Letter

A principal of the firm authorized to commit the firm to the requirements of the RFP must sign the cover letter. The letter shall discuss the Proposer’s commitment to providing high quality services as described in the RFP. Additionally, the letter shall briefly describe the firm’s understanding and approach to the services. The letter should identify a contact person (name, e-mail address, and phone number) for future communication during the selection process.

5.3 Table of Contents

The table of contents should include a clear and complete identification by section and page number of the submitted materials.

5.4 Company Background

Provide a brief background of the firm including history, types of services provided, organization structure, number of employees, annual revenues, number of offices and locations with staff size and disciplines, and any other relevant information that may be useful in determining the firm’s qualifications to provide the services described in this

RFP.

5.5 Independence

The firm should provide an affirmative statement that is independent of the District as defined by generally accepted auditing standards, the standards set forth for financial audits in the U.S. General Accounting Office’s Government Auditing Standards (1994).

The firm should also list and describe the firm’s professional relationships involving the

District for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. In addition, the firm shall give the District written notice of any professional relationships entered into during the period of this Contract.

5.6 License to Practice in California

An affirmative statement should be included, that the firm and all assigned key professional staff are properly licensed Certified Public Accountants (CPA) to practice in

California.

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5.7 Engagement Team and Qualifications

Provide an organizational chart that describes the structure of the engagement team. No subcontracting services will be permitted. The engagement team description shall identify the following:

(i) The Engagement Manager (i.e. Principal Supervisor, Engagement Partner, Manager or other Supervisors), who will be assigned to the engagement,

(ii) The names of readily-available key personnel that will be deployed for engagement assignments, their contact information, and the primary office locations of each engagement team member (preferably within the southern

Los Angeles County area), and the anticipated level of involvement of each team member based on the abilities and expertise required for the type of work desired.

(iii) The role each engagement team member will play in providing services under the Contract,

(iv) A written assurance that the key individuals listed and identified will be performing the work assignments and will not be substituted with other personnel or reassigned to another engagement without the District’s prior approval. The proposal shall clearly identify who will lead the execution of assigned engagements and the respective personnel that will be assigned to them, and

Provide the resumes of all members of the engagement team, as an appendix. Each resume shall not exceed three (3) pages and shall include name and title, education (i.e.

area of expertise or specialization), years with the company, licenses and certifications

(issue and expiration dates, including, if any, California CPA license to practice), office location, relevant experience (i.e. training and continued professional education) within at least the last five (5) years, and other required qualifications discussed in this RFP.

The identified Engagement Manager will be WRD’s main point of contact for all assigned engagements for the duration of the Contract. The proposal shall include the

Engagement Manager’s contact information, including phone and e-mail address.

Once a Contract has been executed, the Consultant must request approval of the District in advance of any new personnel being assigned to the engagement. The District reserves the right to reject or remove personnel performing services at any time for the duration of the Contract.

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5.8 Engagement Overview and Approach

Present a narrative overview of the Proposer’s understanding of the RFP requirements and the overall approach and technical plan for accomplishing the engagement assignments. Also discuss at a minimum the following:

• Ability to successfully complete engagement assignments within the District’s required time frame and, as necessary, on short notice,

• Approach to assignment of work within the firm and how team members will conduct tasks and prepare anticipated deliverables,

• Describe the Proposer’s engagement management approach and communications protocol,

• Describe the Proposer’s approach to quality assurance and control, as well as any performance guarantees,

• Technical approach to assigned tasks, such as deployment strategies (how the engagement will be implemented from mobilization to demobilization), and

• Identify current and reasonably foreseeable actual and possible constraints, problems, and/or issues that could hinder the execution of services under the contract, and suggest approaches to resolving or managing these constraints, problems, and/or issues.

5.9 Additional Services

Include any comments, suggestions, or additions the Proposer may have regarding the scope of work or any other aspects of the work that the Proposer feels would be helpful to

WRD in selecting a firm for the services described in the RFP. Identify the potential impact(s) or benefit(s) that these recommendations would have if accepted by WRD.

Tasks above the minimum to complete the work described herein shall be clearly identified as “optional” in the proposal.

5.10 Experience and Record of Past Performance

Describe Proposer’s experience in completing similar assignments, preferably using the same project team proposed for the services described in this RFP.

Using the form provided as Exhibit B (attached at the end of this RFP), list at least three (3) engagements and a minimum of three (3) client references from similar projects successfully completed within the last three (3) years of similar nature that demonstrate the firm’s competence to perform the work described in this RFP. Ongoing engagements currently being performed by the Proposer also may be submitted for consideration.

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The Proposer shall clearly identify the role of all team members in each of the engagements referenced. For each of the reference engagements listed, provide the following information:

1. Name and location of engagement;

2. Name and address of engagement owner/sponsor;

3. Name and current phone number and e-mail address of owner's representative intimately familiar with the engagement, to contact for reference. Verify the reference person that can be contacted at the phone number provided;

4. A description of type and extent of services provided for the engagement;

5. Engagement budget (both projected and "as completed");

6. Engagement schedule milestones (both projected and "as completed"). Include dates of engagement initiation, key milestones and deliverables, and completion date or status of the engagement;

7. Special problems or difficulties encountered, such as engagement budget and schedule control issues, and how they were resolved by the Consultant; and

8. Applicability and relevance of the referenced engagement to the services described in this RFP.

The District at its discretion may contact other firms or agencies for additional information. Failure to provide accurate contact information, adequate information or project reference summaries may be cause for rejection of the proposal as being nonresponsive.

5.11 Prior Engagements with WRD

List separately all engagements for the District within the last five (5) years, ranked on the basis of total staff hours and the type of engagement (i.e. audit, management, advisory services, etc.). Proposer shall also indicate the scope of work and timeframe of services that was performed.

5.12 Conflict of Interest

Provide a statement that the Proposer, individuals employed by the Proposer, or firms employed by or associated with the Proposer, including subconsultants/subcontractors, do not have a conflict of interest with the Project. The Proposer shall exercise reasonable efforts to prevent any actions or conditions that could result in a conflict of interest and shall include, but is not limited to, establishing precautions to prevent its employees or agents from making, receiving, providing in, or offering gifts, entertainment, payments, loans, or other considerations which could be deemed to appear to influence individuals to act contrary to the best interest of the District. If a potential conflict of interest is

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identified in any form, the Proposer shall inform the District immediately. Proposers are subject to disqualification on the basis of a conflict of interest as determined by WRD.

5.13 Other Information

The proposal shall include:

• A statement that the Proposer will meet the insurance requirements per Section

12 of the District’s standard Professional Services Agreement, which is attached to this RFP as Exhibit C.

• A statement or description regarding any litigation to which the firm is a party, any bankruptcy settlements, or unpaid judgments against the firm or its principals.

• A statement as to whether the firm has defaulted on previous professional contracts.

• A copy of the report on the Proposer’s most recent external quality control review, with a statement indicating whether that quality control review included a review of specific government engagements.

• Information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.

5.14 WRD Standard Contract

The selected Consultant shall be expected to execute a Contract using the District’s standard Professional Services Agreement, which is provided as Exhibit C. Proposers shall provide a statement in their proposals clearly stating acceptance of all the terms and conditions specified in the standard Professional Services Agreement (i.e. no exceptions can be made to WRD’s standard Professional Services Agreement).

5.15 Engagement Costs and Labor Hours

The proposal shall include a table showing the following information:

• Labor hour breakdowns by the engagement tasks and subtasks identified in

Section 3.0 (including other subtasks as the Proposer sees fit) and associated personnel, as well as total hours. Names and titles/categories of individuals proposed to work on the engagement tasks/subtasks.

• Fully loaded hourly billing rates – All direct, capital, and reimbursable expenses, including but not limited to travel and transportation costs, meals, lodging, office equipment and supplies, administrative and communications fees, etc., must be built into the hourly rates. Therefore, the District shall not pay Consultant for any

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direct or reimbursable expenses incurred for implementation of the scope of services described herein.

• The labor hours and fees for proposed optional tasks, if any, shall be presented in a separate table to differentiate from the baseline Scope of Work.

It is expected that the indicated hourly rates will remain in effect for the duration of the

Contract unless otherwise specified and approved by WRD. The rate sheet shall follow a format similar to the example shown in Exhibit D attached at the end of this RFP, and include any other rates or fees not identified as part of the engagement team, equipment markups, or other direct costs that may be incurred. In addition, the Proposer shall also include in their proposal proposed rates for an additional three optional years if the

District decides to extend the term of the Contract.

The proposal shall also include a description of the anticipated method of billing for services performed, with provisions for monthly billing that will include itemized accounting of hours of personnel, hourly rates, and percent completion for each task identified. An engagement schedule shall be included with the invoice to track engagement costs on a resource loaded schedule.

5.16 Monthly Billing

The monthly invoice shall be in a similar format shown in Exhibit E attached at the end of this RFP. At a minimum, each invoice shall contain the contract number and shall be itemized by task. A subtotal cost for each task shall be included. Names of persons, their job titles, hourly billing rates, actual hours worked during the billing period, and subtotal labor costs must be summarized in a table.

All documentation for other direct costs in the form of receipts or vendor invoices, with the applicable costs identified for items such as equipment costs shall also be attached to each invoice. WRD will provide reporting requirements to Consultant, and Consultant shall prepare invoices that comply with the requirements. Failure to satisfy the reporting requirements may result in rejection or short pay of the invoices submitted to WRD for payment.

6.0 PROPOSAL SUBMISSION REQUIREMENTS

6.1 Proposal Format

The proposal shall be limited to one PDF file with no more than 25 single-pages in length. This does not include the title page, table of contents, cover letter, appendices, dividers, or résumés.

All files shall be bookmarked and in a text searchable PDF format (i.e., not scanned images) compatible with Adobe Acrobat Version 8.0 (at a minimum). All sections of the

PDF file shall be bookmarked.

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6.2 Proposal Signing

The proposal shall be submitted electronically through the WRD Procurement Portal and all requested signatures must be included in the submission. Upon a determination by

WRD of an intent to award, the Proposer shall submit to WRD in hard-copy form, its entire proposal submission which shall be wet-signed by an officer, or officers, authorized to execute legal documents on behalf of the Proposer. The submission and signing of the proposal shall indicate the intention of the Proposer to adhere to the provisions described in this RFP and certifies that the proposal was prepared independently and was submitted without any collusion designed to limit competition or bidding. WRD reserves the right to reject the hard-copy wet-signed proposal and not award this work if the wet-signed proposal is not identical to the electronically submitted proposal and/or other requirements in this RFP.

6.3 Proposal Submittal Procedures

The exclusive process by which a potential proposer can respond to and be considered for this RFP is through the WRD Procurement Portal at https://wrd.bonfirehub.com/. No other form of response or submission to this RFP will be considered.

It is the Proposer’s responsibility to ensure that proposals are received prior to the submittal deadline. Proposal packages should also include all signed Acknowledgment of Addendum forms that may be issued by WRD as part of this RFP process.

The WRD will not be responsible for the proper identification and handling of any proposals submitted incorrectly. Late proposals, late modification, or late withdrawals will not be considered under any circumstances. Faxed or emailed proposals will not be accepted. There will be no formal opening of the received proposals.

6.4 Proposal Preparation Costs

This solicitation does not commit the District to award any work nor to pay any costs incurred from the preparation of proposals. Firms responding to this RFP will be solely responsible for all costs and expenses incurred during the selection process.

6.5 Acknowledgement

An Acceptance Letter (Exhibit “F” attached) has been attached to this solicitation. This

Acceptance Letter is to be completed and signed by the Respondent and shall be included with the Respondent’s submittal.

7.0 EVALUATION CRITERIA

Selection will be made on the basis of WRD’s judgment as to which proposal best serves

WRD’s interest. The proposal will be evaluated on the basis of the criteria listed below in this section, including the identified bonus points for Proposers who demonstrate that at least 10 percentage of the value of the Proposal will be performed by eligible SBEs, DVBEs, and/or LBEs. Proposals also will be evaluated based on the clarity, completeness, and professional quality of the documents submitted, as well as

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conformance to the RFP instructions and responsiveness to the RFP requirements in a straightforward and concise manner.

Item

No.

Criteria for Proposal Evaluations Maximum Points

1 Engagement Team and Qualifications 25

2 Engagement Understanding and Approach 25

3 Performance on Similar or Related Engagements 25

4 Billing Rates 15

5 Organizational and Support Services 10

TOTAL POINTS: 100

7.1 Engagement Team and Qualifications

Engagement team’s technical and management competence to perform the work specified herein will be evaluated. Considerations include, but are not limited to the following:

• Professional qualifications and education of the project team.

• Expertise and the appropriate mix of skills and disciplines of the project team and percentage of work to be self-performed.

• The accessibility and commitment of the Proposer’s key personnel to successfully complete assigned engagement, including the geographic proximity of each team member’s primary office location with respect to the District’s service area.

• Ability to perform work on short notice and anticipated response times.

• Capacity and flexibility to complete high quality work in a timely manner that meets the established schedule.

• Familiarity with the policies and procedures of the District, County, and other local agencies.

7.2 Engagement Understanding and Approach

The following will be considered in the evaluation of proposals:

• Understanding of the nature of professional services contracts and expected tasks to be performed.

• Work schedule and methodology to completing assigned tasks, specifically with regards to budget sensitivity, efficiency, adherence to District standards and applicable regulatory codes, and pertinence of the assigned tasks.

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• Demonstration on how the Proposer will organize the execution of assigned projects, including the make-up of the team, the leadership of the team, the accountability of the Engagement Manager, and the lines of authority.

• A strong engagement management structure that includes clearly defined communications protocols (including how the Proposer’s staff will interact with the District’s team and engagement manager), procedures for coordination throughout the assigned engagement.

• A solid quality assurance and control program that demonstrates a clear understanding of the need and process of ensuring WRD receives the highest quality product required for assigned engagement.

• Overall clarity, creativity, and logic, and completeness of the approach. The proposal should demonstrate interest and insight to the specific details of WRD’s desired services.

• Other services or considerations not addressed in the RFP but were deemed to be pertinent to the scope of services by the Proposer.

7.3 Performance on Similar or Related Engagements

WRD reserves the right to conduct an independent verification of the Proposer’s experience qualifications by contacting engagement references, accessing public information, or contacting independent parties. Prospective proposers shall respond and provide additional information that may be requested during the evaluation of proposals.

Factors to be considered will include, but may not be limited to, experience with similar engagements, engagement coordination, cost control, quality of work, technical capability, and adherence to engagement schedules and standards.

7.4 Billing Rates

Hourly billing rates, including markup rates, will be evaluated with respect to the anticipated overall value for services proposed.

7.5 Organizational and Support Resources

The following will be considered in the evaluation of proposals:

• Capability under current workload to perform the work specified herein. Factors to be considered include, but may not be limited to, number of qualified staff allocated to assigned projects, availability of key personnel and support staff, knowledge of local conditions, and demonstrated ability to meet proposed engagement schedules.

• Anticipated response times after notification of work assignments by WRD.

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8.0 SELECTION PROCESS

This solicitation is being conducted by WRD through a fair and open process in accordance with procurement policies established for water replenishment districts in the

State of California, those policies established by WRD, and applicable State laws.

All responsive proposals will be evaluated by a selection committee formed by the

District. The proposal shall be of such scope and depth to sufficiently describe and demonstrate the Proposer’s understanding, approach, and qualifications to successfully complete the scope of services described herein. Submittal of incomplete or vague responses to any section or subsection of this RFP may result in rejection of the proposal.

Proposals will be evaluated, scored, and ranked based on the criteria specified in Section

7 of this RFP.

Once the proposers are ranked, WRD will initiate negotiation with the top-rated proposer.

If WRD is unable to reach an agreement with the top-rated proposer, negotiations will be formally terminated. WRD will then negotiate with the next highest-ranked proposer and so on until an agreement is reached. Once negotiations with a proposer are terminated, WRD will not renegotiate with that proposer.

The firm that is recommended to the WRD Board of Directors for award of contract will be the one whose proposal is determined to be the most advantageous to the District in consideration of price and all other evaluation factors that are set forth in this RFP. No other factors or criteria not listed in this RFP shall be used in the evaluation.

9.0 GENERAL PROVISIONS

The Proposer should specify if any of the requirements included in this section or any other section of the RFP pose a specific problem, and if so, identify the problem and its impact within the proposal.

9.1 Entire Agreement

The services described in this RFP, the successful proposal (with any proposed optional tasks) approved by WRD and any written changes or amendments to the scope of services shall represent the entire Agreement between the parties and shall supersede all prior written or oral representations, discussions, and agreements. The Consultant awarded a contract to provide services described in this RFP shall be deemed bound to execute all requirements as listed and prescribed in this RFP, unless WRD modifies aspects of the scope of work or any conditions in the RFP in writing. Thus, the executed

Contract will incorporate the terms and conditions specified in this RFP, as well as the final scope of work and fee schedule submitted by the Consultant as part of its proposal.

9.2 Contract Amendments

Changes that affect the scope of work, period of performance or time schedule, and costs will be effected by written notices of amendment. No payments will be made for work

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performed outside the original scope of work unless prior written approval was granted by WRD. The Consultant may be required to provide additional services under a negotiated change order approved in writing by WRD.

9.3 Term of Contract

Upon approval by the WRD Board of Directors, the District shall enter into a contract with the selected firm for a maximum term of three years and has the option to extend the contract provided mutual agreement..

9.4 Ownership and Use of Documents

Consultant will be required to treat WRD’s documents in confidence and shall indemnify

WRD in case of alteration, loss, or damage thereto. Consultant shall not release to the general public, public agencies, or private businesses in any manner, any information, data, or documents developed pursuant to the performance of services specified herein or information provided by WRD without the expressed written consent of WRD.

Any preliminary or working drafts, notes, and inter-agency or intra-agency memoranda that are not expected to be retained by the Consultant or WRD in the ordinary course of business shall be exempt from disclosure to any public entity under provisions of the

Public Records Act.

9.5 Audit Rights, Business Records Access and Retention

Consultant shall maintain all records related to this Contract and project. During the term of this Contract and for a period of five (5) years after its termination, WRD shall have access to and the right to examine any directly pertinent books, documents, records and any other documents of Consultant directly related to the Contract and project.

9.6 Termination

WRD may terminate the project at any time at its sole discretion. Notice of termination will be provided in writing. Upon termination of the project, WRD shall make payment to the Consultant only for services provided up to the date of termination.

10.0 TERMS AND CONDITIONS

10.1 Proposal Rejection

WRD reserves the right to accept or reject any or all proposals received in response to this RFP or cancel in whole or part the selection process if it is in the best interest of the

District to do so. Alternatively, the District reserves the right to waive any minor defect or technicality in any proposal received.

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FINANCIAL AUDIT SERVICES

10.2 Proposal Clarification and Requests for Additional Information

All proposals shall be afforded fair and equal treatment with respect to any opportunity for clarification. WRD reserves the right to request clarification of information submitted and to request additional information from any or all proposers. The District may require any evidence it deems necessary, such as documentation regarding the Proposer’s financial stability, before any contract is awarded. In conducting discussions with proposers, there shall be no disclosure of information derived from proposals submitted by competing firms.

10.3 Proposal Validity Period

Proposers may withdraw their proposals at any time prior to the due date and time by submitting a written notification of withdrawal signed by the firm’s authorized agent.

Proposers who withdraw their proposals prior to the designated date and time may still submit another proposal if done in accordance within the proper time frame. A proposal cannot be changed or modified after it has been submitted by the designed due date and time and shall constitute an irrevocable offer, for a period of ninety (90) days, to WRD for the services set forth in the proposal.

10.4 RFP Revisions and Addenda

WRD reserves the right to issue a written Addendum or Addenda to provide further clarification or make revisions/corrections to the RFP. All Addenda will be issued via the Procurement Portal. If an Addendum is necessary within 72 hours of the proposal submittal deadline, the District, at its discretion, can extend the proposal submittal deadline.

Any Addendum issued must be acknowledged by the Proposer by signing and submitting the “Acknowledgment of Addendum” form that will be provided with each Addendum.

All Acknowledgment of Addendum forms must be submitted to WRD as part of the proposal package that is submitted by the proposal due date. Failure to acknowledge any

Addenda may result in the proposal being considered nonresponsive and subject to rejection. All Addenda and Acknowledgements shall be submitted via the WRD

Procurement Portal.

The Proposer shall be responsible for ensuring that its proposal reflects any and all addenda issued by the District prior to the submittal due date. Therefore, the District recommends that prospective proposers check the WRD Procurement Portal for this RFP prior to making their submission.

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FINANCIAL AUDIT SERVICES

10.5 Confidentiality

The content of proposals will be kept confidential until the award of contract by the

WRD’s Board of Directors. All materials submitted in response to this RFP will become the property of the WRD and will become public record after award of contract to the successful Consultant. The WRD will not return any proposals to proposers.

If a Proposer believes any portion of its proposal contains confidential or proprietary information, exempt from public disclosures under the California Public Records Act, the

Proposer must label that information within its proposal as “CONFIDENTIAL”, “TRADE SECRET”, or “PROPRIETARY.” The above restrictions may not include cost or price information, which shall be open to the public upon award of contract.

Notwithstanding the foregoing, the District will not be responsible or liable in any way for losses that the Proposer may incur from the disclosure of information or material to third parties.

11.0 LEGAL POLICIES

11.1 Compliance

The Consultant shall abide by and obey all applicable federal, state, and local laws, rules, regulations, and ordinances.

11.2 Governing Laws and Requirements

Performance of services herein shall be governed and construed in accordance with the laws of the State of California. The selected Consultant hereby agrees that in any action relative to the performance of said services, venue shall be in the County of Los Angeles, State of California.

11.3 Public Releases

The Consultant agrees not to use or otherwise make public in any manner, either for profit or nonprofit, any of the information, data, procedures, systems, or documentation developed pursuant to the performance of services specified herein without the expressed written permission of WRD.

11.4 Business License

The Consultant will be required to show evidence of all valid and applicable business license(s), which must be in effect during the period of the performance of services specified herein.

11.5 WRD’s Property

All deliverables submitted pursuant to the performance of services specified herein shall become the sole property of WRD and they may be used in any manner and for any purpose WRD deems in its best interest.

ATTACHMENT NO. 1

RFP Submittal Checklist Form

ATTACHMENT NO.1

Request for Proposals (RFP) Submittal Checklist

The following submittals shall be completed and submitted with each Proposal package (see table below for the “Required Submittal Checklist.”). This table has been provided as a convenience for proposers to use as a reference only. Ultimately, it is the Proposer’s sole responsibility to ensure that their proposal complies with all requirements of the RFP and all the required submittals are included in the Proposal package before it is formally submitted to WRD.

Proposals may be deemed nonresponsive if they do not respond to all areas specified in the RFP.

Item No. Required Submittal Checklist Check (√) 1 One signed (1) Proposal package including:

2 Title Page 3 Cover Letter 4 Table of Contents 5 Company Background 6 Project Team and Qualifications 7 Project Understanding and Approach 8 Additional Services (if applicable) Conflict of Interest 9 Scope of Work (Exhibit A) 10 Experience and Record of Past Performance

• Key Personnel Participation in Example Projects (Exhibit B)

11 Other Information:

• A statement that the Proposer will meet the insurance requirements per Section 12 of the District’s standard Professional Services Agreement, which is attached to this RFP as (Exhibit C).

• A statement or description regarding any litigation to which the firm is a party, any bankruptcy settlements, or unpaid judgments against the firm or its principals.

• A statement as to whether the firm has defaulted on previous professional contracts.

• A copy of the report on the Proposer’s most recent external quality control review, with a statement indicating whether that quality control review included a review of specific government engagements.

• Information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.

12 WRD Standard Agreement:

• A statement accepting of all the terms and conditions specified in the District’s standard Professional Services Agreement (Exhibit C)

13 Rate Sheet Example (Exhibit D) 14 Monthly Billing and Sample Invoice (Exhibit E) 15 Acknowledgement Letter (Exhibit F) 16 Addenda Acknowledgement Forms (if applicable)

EXHIBITS

Exhibit A

Scope of Services

Introduction

The WRD is requesting proposals from qualified certified public accounting firms to provide their expertise in financial auditing services for the District’s upcoming three fiscal years ending in June 2026 through June 2028, with the option of auditing the District’s financial statements for additional three fiscal years. These audits are to be performed in accordance with the provisions contained in this RFP. The District shall be informed of new developments affecting special district accounting and reporting as well as any other relevant issues. This includes but is not limited to impacts of newly imposed State of California mandated procedures and required changes in grants and procedures. In addition, the District frequently requests professional advice on accounting matters throughout the fiscal year, and such advice should not be construed as consulting services, nor will compensation for such advice be contemplated unless explicitly negotiated by the District of its agents.

Scope of Work to be performed:

1) Financial Audit – Examine the basic financial statements, notes to the financial statements, and required supplemental information, if applicable.

2) Single Audit – Examine the schedule of expenditures of federal awards related to the

WRD’s federal grant programs.

The auditor’s reports will include the auditor’s opinion on the basic financial statements;

the auditor’s opinion on the schedule of expenditures of federal awards; the auditor’s report on internal control over financial reporting and on compliance in accordance with government auditing standards; and the auditor’s report on the entity’s compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133.

3) The auditor will assist WRD in preparing and filing all related reports required by state and federal agencies, including the State Controller’s Report.

4) The auditor will evaluate the adequacy of the internal control system and where weaknesses are noted, make appropriate recommendations for improvements.

5) The auditor will prepare a report on compliance and internal control over financial reporting based on an audit of the financial statements.

6) In the required reports on compliance and internal controls, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization’s ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements.

Reportable conditions that are also material weaknesses shall be identified as such in the report.

Non-reportable conditions discovered by the auditors shall be reported in a separate letter to the management (the “Management Letter”) which shall be referred to in the reports on compliance and internal controls.

Irregularities and illegal acts: Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the General Manager and the Treasurer.

7) The auditor will file the Special District’s Financial Transaction Report to the State

Controller no later than the date prescribed by law.

8) The District will submit the Annual Comprehensive Financial Report (ACFR) to the

Government Finance Officers Association (GFOA) for the Certificate of Achievement for

Excellence in Financial Reporting program. The format of the ACFR shall allow the

District to meet the requirements of that program. This also requires that the auditor ensure that the audit report and financial statements are complete in time for submission to the

GFOA. The auditor will assist with developing responses to any comments noted by the

GFOA.

9) The auditing firm shall provide six (6) bound copies and one (1) electronic version of the

ACFR, auditor’s report, and management letters. The engagement partner is expected to attend the Board of Directors meeting to present the ACFR to the Board of Directors in

December and answer any questions from the board.

10) The auditor will provide general consultation and training to District staff, during the year, on accounting, reporting and best practices in internal accounting control; and assist

District staff on implementing any new GASB pronouncements, and assistance in preparing the journal entries for GASB statements.

11) Additional Work - If it should become necessary for the District to request the auditor to render additional services to either supplement the services in this request for proposal or to perform additional work as a result of the specific recommendations included in any report issued with this engagement, then such additional work shall be performed only if set forth in a written addendum to the contract between the District and the auditor. Any such additional work agreed to between the District and the auditor shall be performed at the same rates set forth in the schedule of fees and expenses included in the formal bidding proposal.

Timing and Other Requirements

Project Schedule and Deliverables for the Annual Audit for the Fiscal Year ending June 30:

1) The audit firm shall provide the District with an audit plan, including a list of schedules and other work request for the interim audit no later than March 30 each year.

2) Depending on the type and extent of interim audit procedures before June 30, the District expects to have all records and schedules ready for the audit by the second week of

September and would expect final field work to…