CEFA02-25_-_FINAL_RFP_(04-18-25).pdf

MEMBERS

FIONA MA, CPA, CHAIR

California State Treasurer

MALIA M. COHEN

California State Controller

JOE STEPHENSHAW

Director of Finance

HAROLD HEWITT, JR.

KELLY RATLIFF

INTERIM EXECUTIVE DIRECTOR

CAROLYN ABOUBECHARA

901 P Street, Room 313 Sacramento, CA 95814 p (916) 653-2872 f (916) 653-2179 cefa@treasurer.ca.gov www.treasurer.ca.gov/cefa

CALIFORNIA EDUCATIONAL FACILITIES AUTHORITY

The California Educational Facilities Authority REQUEST FOR PROPOSAL-Secondary

Notice to Prospective Proposers

Audit Services RFP No. CEFA02-25

April 18, 2025

You are invited to review and respond to this Request for Proposal (“RFP”), entitled Audit Services, for the California Educational Facilities Authority (“CEFA” or the “Authority”), RFP No. CEFA02-25. This RFP is seeking proposals from qualified firms for auditing services to fulfill CEFA’s obligations pursuant to Government Code Sections 5871 and 5872, to include meeting the minimum auditing requirements of the State Controller’s Office.

Proposals for these services must comply with the instructions included in the RFP. The RFP includes the Sample Standard Agreement the selected firm will be expected to execute. The agreement that will be entered into with the State of California (“State”) will include by reference the General Terms and Conditions and Contractor Certification Clauses, which may be viewed and downloaded online at https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List- Folder/Standard-Contract-Language. The General Terms and Conditions and all Exhibits that are a part of the Sample Standard Agreement are not negotiable. By submitting a proposal, your firm agrees to the terms and conditions stated in this RFP.

In the opinion of CEFA, this RFP is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, written questions must be received by CEFA by 12:00 p.m. PT on May 2, 2025. The contact person for this RFP is:

Erica Rodriguez Compliance Officer

California Educational Facilities Authority

(916) 653-3841 cefa@treasurer.ca.gov

Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language mailto:cefa@treasurer.ca.gov

Table of Contents Section Page

A. Purpose and Description of Services

1. Introduction

2. Scope of Services

3. Term of Agreement

B. Minimum Qualifications for Proposers

C. Proposal Requirements and Information

1. Key Action Dates

2. Questions and Answers

3. Content and Format of Proposals

4. Submission of Proposals

5. Evaluation Process

6. Award and Protest

7. Disposition of Proposals

8. Agreement Execution and Performance

D. Preference and Incentive Programs

1. Small Business or Microbusiness Preference

2. Non-Small Business or Microbusiness Preference

3. California Disabled Veterans Business Enterprise (DVBE) Incentive

E. Required Attachments

Attachments Attachment 1 - Required Attachments Checklist Attachment 2 - Proposal/Proposer Certification Sheet Attachment 3 - Cost Proposal Worksheet Attachment 4 - Proposer References Attachment 5 - Minimum Qualifications Certification Attachment 6 - Payee Data Record (STD 204) Attachment 7 - Darfur Contracting Act Certification Attachment 8 - Contractor’s Certification Clauses (CCC 04/2017)

Attachment 9 - Generative Artificial Intelligence (GenAI) Notification Attachment 10 - Bidder Declaration (GSPD-05-105) Attachment 11 - Small Business or Microbusiness Preference* Attachment 12 - Non-Small Business or Microbusiness Preference* Attachment 13 - Disabled Veteran Business Enterprise (DVBE) Incentive Program* (*If applicable)

F. Sample Standard Agreement (STD 213) Exhibit A: Scope of Work Exhibit A, Attachment 1: Ch. 10.7 (commencing with Sec. 5870) to Div. 6 of Title 1 of the Govt. Code Exhibit A, Attachment 2: Resumes of Key Personnel Exhibit B: Budget Detail and Payment Provisions Exhibit B, Attachment 1: Cost Proposal Exhibit C: General Terms and Conditions (GTC 02/2025) Exhibit D: Special Terms and Conditions Exhibit E: Additional Provisions

California Educational Facilities Authority (CEFA)

A. Purpose and Description of Services

1. Introduction

The California Educational Facilities Authority (“CEFA”) was created for the purpose of issuing revenue bonds to assist private non-profit institutions of higher learning in the expansion and construction of educational facilities.

Section 94155 of the Education Code requires CEFA to make an annual report including a complete operating and financial statement and an audit of books and accounts by a certified public accountant.

CEFA is soliciting proposals from public accounting/auditing Firms and seeks to contract with a qualified certified public accounting Firm (“Firm”) to audit financial statements relevant to the assets of the program fund that exists within CEFA’s Bond Financing Program Fund (“Fund”). The review includes the internal operations of CEFA and a review of all outstanding tax-exempt bond issue amounts.

In addition, effective January 1, 2010, legislation, which added Chapter 10.7 (commencing with Section 5870) to Division 6 of Title 1, of the Government Code, increased the reporting and auditing requirements for conduit bond issuers. While the focus of the legislation was on the joint powers authorities that frequently issue bonds, the legislation was written to include the state finance authorities chaired by the California State Treasurer. As a result, CEFA must comply, at a minimum, with the same reporting/auditing requirements imposed on the joint powers authorities. For reference, the text of Chapter 10.7 (commencing with Section 5870) to Division 6 of Title 1 of the Government Code is provided as Exhibit A, Attachment 1.

The audit Firm (“Firm”) will provide audit services in the preparation of annual audited financial statements and internal control performance of CEFA’s operations relevant to CEFA’s Fund. The audit will include

(1) complete operating and financial statements and audit of the books and accounts as well as (2) an independent assessment of the internal control and performance of CEFA’s Fund.

All proposals submitted to perform these services must explain the experience and qualifications that demonstrate the Firm’s ability to provide these services. Failure to provide the required information may result in disqualification. The Firm that is selected must be technically and professionally capable of providing the services in all subject areas described in Section A, Item 2, Scope of Services and meet the Minimum Qualifications for Proposers in Section B. The Firm must be free from actual conflicts of interest not only at the time of selection, but also throughout the term of the contract. The engagement period will be for the audit of each of the three (3) fiscal years ending June 30, 2025, June 30, 2026, and June 30, 2027.

CEFA anticipates a July 1, 2025, contract start date pending approval by the Department of General Services (“DGS”). The Firm must be available at that time to assume services.

2. Scope of Services

The Firm will be expected to provide audit and examination services as described herein. The scope of the audit must comply with the State Controller’s Office (“SCO”) minimum standards for conducting audits and reporting requirements. The Minimum Audit Requirements and Reporting Guidelines for California Special Districts are set forth in the California Code of Regulations, Title 2, Section 1131.2. In addition, the Firm will be expected to complete SCO’s Special Districts Financial Transactions Report on behalf of CEFA (reporting forms and instructions are available at https://www.sco.ca.gov/ard_locinstr_districts_forms.html). SCO’s audit and reporting requirements may be subject to change. As a result, the Firm must be prepared to incorporate any additional legal or industry requirements for the performance of audits as may be disseminated by the SCO subsequent to the initial https://www.sco.ca.gov/ard_locinstr_districts_forms.html circulation of this Request for Proposal (“RFP”). In addition, the Firm may be requested to provide other assistance, on an as-needed basis, to support confirmation and reporting requirements.

a. Audit and Examination

The Firm will perform an audit and examination of CEFA’s Fund as required by law. The audit will include an evaluation of CEFA’s internal controls in accordance with generally accepted auditing standards as set forth in Statements on Auditing Standards, published by the American Institute of Certified Public Accountants, and the SCO Minimum Audit Requirements and Reporting Guidelines for California Special Districts, which shall include at the minimum the following:

1) A disclosure of fees imposed on borrowers by or on behalf of CEFA’s Fund.

2) A disclosure of expenditures related to those fees made by or on behalf of CEFA’s Fund.

3) The dollar amount and nature of these fees and expenses.

4) A confirmation of the assets held by CEFA.

5) A disclosure of the amount of bonds authorized but unsold at the end of the time period covered by the audit.

6) A disclosure of the amount of bonds CEFA has issued during the period covered by the audit and the amount of bonds outstanding at the end of the time period covered by the audit.

7) Treat all information in a confidential manner with all recommendations to be stated only in the audit reports provided to CEFA for appropriate release by CEFA as required by law.

b. Audit Report and Findings

1) The report shall be prepared in the format as outlined in the SCO’s minimum standards for conducting audits and reporting requirements.

2) The report shall include a statement of the scope of the audit and examination for the Fund; the period covered by the audit and examination; and a list of the financial statements included in the report.

3) The report shall include a statement of material audit findings and recommendations regarding the financial statements, internal control and accounting systems, and legality of actions for the Fund.

4) Audited financial statements in the report shall include a "Statement of Operations" (Income

Statement), "Statement of Assets and Liabilities" (Balance Sheet), and a "Statement of Cash Flows” for the Fund.

5) The Audit report shall include a Management Letter.

6) The audit report shall include any other material information required by CEFA, SCO, or under the Government Code.

7) The audit will be for fiscal years 2024/2025, 2025/2026 and 2026/2027.

8) The audit must meet the reporting time frame requirements of the SCO. Currently, it is anticipated the audit should be conducted mid-August through September and completed by December 30th of the following fiscal year unless it is waived by CEFA. The audit submittal time frame is subject to change upon further instruction from the SCO.

9) The Firm shall review the proposed audit reports with CEFA staff prior to finalizing and reporting results to the SCO.

10) One original and ten (10) copies of the report shall be prepared with provision for additional copies upon request and provide electronic versions in PDF format.

11) In all respects, represent the best interests of CEFA and the State in all transactions and proceedings.

c. Special Districts Financial Transaction Report

The Special District Financial Transactions Report must be prepared exactly in the same format as the SCO’s Special Districts Financial Transactions Report (https://www.sco.ca.gov/ard_locinstr_districts_forms.html). Firm must complete this report on CEFA’s behalf by the deadline set by SCO.

CEFA will work with the Firm to obtain all available accounting records and data necessary for the performance of the work described herein and will provide office workspace and furnishings adjacent to CEFA’s Office at 901 P Street, Suite 313, Sacramento, California 95814 if necessary. All other equipment or material is to be provided by the Firm.

Firm shall be responsive to CEFA staff regarding the status of the audit including prompt response to e-mails and telephone calls. Firm shall keep CEFA staff apprised of information needed and issues outstanding and shall meet deadlines set by CEFA staff.

3. Term of Agreement

The term of this agreement will be for a three-year period with a dollar value not to exceed $75,000. The effective date of this agreement is either the start date of July 1, 2025, or the approval date by the Department of General Services, whichever is later. No work shall commence until the effective date. The contract amount may not exceed $25,000 for each year.

B. Minimum Qualifications for Proposers

The Firm must have at minimum, the following qualifications and experience:

1. Firm must have an office established in the State of California.

2. Firm must be qualified to do business in the State of California and all staff providing auditing services to

CEFA must be licensed accountants in the State of California.

3. Firm must be a professional certified public accounting Firm, not in public employment, in business for at least three (3) years.

4. Firm must have conducted, within the last four (4) years, at least five (5) audits of California state or local governmental agencies, preferably agencies engaged in bond financing. The Firm must have experience in the State of California accounting procedures and related processes.

5. Firm must have sufficient staff to provide auditing services to CEFA to meet the tight deadlines outlined in

Section A, Item 2, Scope of Services.

Failure to meet the minimum qualifications will cause your proposal to be considered unresponsive and the proposal will be rejected.

C. Proposal Requirements and Information

1. Key Action Dates

It is recognized that time is of the essence. All Firms are hereby advised of the following schedule and will be expected to adhere to the required dates and times:

Date Action

April 18, 2025 RFP available on the California State Contracts Register

(“CSCR”) and CEFA website to prospective Firms

May 2, 2025 Written questions must be received by CEFA by 12:00 p.m. PT

May 7, 2025 Responses will be posted in the CSCR and CEFA website

May 16, 2025 Final Date for Proposal Submission.

Proposals must be received at the CEFA office at 901 P Street, Suite 313, Sacramento, CA 95814 by 4:00 p.m. PT

May 19 – May 22, 2025 Evaluation and Selection of Firm by Evaluation Committee

May 23, 2025 Notice of Intent to Award Contract

July 1, 2025 Anticipated Commencement of Contract (pending DGS approval)

2. Questions and Answers

In the opinion of CEFA, this RFP is complete and without need of explanation. However, if you have questions, or should you require any clarifying information, please email Erica Rodriguez at cefa@treasurer.ca.gov. Questions regarding this RFP must be submitted in writing no later than 12:00 p.m.

PT on May 2, 2025. Responses to questions will be provided by May 7, 2024, and will be made available in the CSCR located at https://caleprocure.ca.gov/ and the CEFA website.

3. Content and Format of Proposals

The Firm should include a Cover Letter that includes contact information with their proposal. The proposal should be organized in the format shown below and contain all of the information listed or requested.

a. Firm Experience, Personnel and References

CEFA expects to have a close working relationship with the Firm as evidenced by the scope of services listed above and requires the demonstration of a high degree of experience, training, and proficiency in the conduct of the various functions performed. The Firm should have extensive background in both mailto:cefa@treasurer.ca.gov https://caleprocure.ca.gov/ accounting and auditing of non-profit higher educational facilities. In addition, CEFA expects the Firm will comply with current accounting/auditing standards and financing trends and maintain appropriate expertise at the Firm’s own expense.

This section is intended for the Firm to demonstrate their qualifications. The Firm’s response in the proposal to this section will be used in the evaluation process (Section C, Item 4, Evaluation Process).

1) Qualifications and Experience of Accounting/Auditing Firm - Discuss the overall experience of your Firm that demonstrates your ability to successfully complete the Scope of Service, Section A, Item 2. Experience should include recent services provided to other conduit issuers of higher education tax-exempt bonds, as well as services provided directly to such borrowers. Additionally, Firm must have knowledge of the State of California accounting procedures. Discuss your Firm’s experience auditing California state or local governmental agencies. Provide a detailed list of accounting/auditing services by client or transaction for the past four (4) years as an attachment.

Indicate if the accounting/auditing service provided was transaction specific or for a contracted period.

2) Qualification of Personnel/Resumes – Provide resumes of key personnel and identify the personnel who will be providing the services required by the proposal, including years and type of experience for each person. Experience should include number of years at current Firm as well as all prior service. Experience in bond financing should be detailed. The lead personnel in charge of the CEFA account must have at least five (5) years of experience in public accounting and audits of State governmental agencies, or services as an accounting or financial consultant to a state agency.

The Firm must ensure the quality and availability of its personnel assigned to this agreement will be maintained over the term of the agreement. Any replacements must have substantially the same as or better qualifications and experience than the original personnel. Include staff of subcontractors (if any).

3) References - Submit a list of at least three references (clients) to which the Firm has provided similar accounting/auditing services within the past four (4) years and contact numbers for each.

At least one reference must be from a California state or local governmental agency. (Attachment 4)

b. Cost Detail Format and Requirements

The anticipated contract for auditing services will establish a maximum amount for each of the three

(3) fiscal years ending June 30, 2026, June 30, 2027, and June 30, 2028. The vendor will be compensated using an invoice procedure detailing hours expended. Invoices must include total hours expended not to exceed maximum yearly amount. Progress payments are permitted for work performed under the agreement. In accordance with Public Contract Code Section 10346, ten percent (10%) of the invoiced amount shall be withheld pending final completion of the Agreement.

The proposed work should be broken down into a work plan and work schedule for each fiscal year of the contract. Use the Sample Cost Proposal Worksheet (Attachment 3) as a guide in preparing your cost portion of the proposal. The work plan must identify lead personnel, anticipated employee hours, reflect the cost for preparation of reports, analysis, charts and other printed materials, anticipated travel, and other direct cost expenses. The proposal must include the rate for each fiscal year audit (fiscal years 2024/2025, 2025/2026 and 2026/2027). The total proposed maximum fee schedule will be the basis for the scoring of the cost portion of the evaluation. (See Attachment 3) Proposals submitted with a fee schedule not in compliance with these requirements will be rejected.

4. Submission of Proposals

a. Proposals should provide straightforward and concise descriptions of the Firm’s ability to satisfy the requirements of this RFP. The proposal must be complete and accurate. Inaccuracies, omissions, or misstatements may be cause for rejection of a proposal.

b. The proposal package should be prepared in the least expensive method.

c. All proposals must be submitted under sealed cover and sent to CEFA by dates and times shown in

Section C, Proposal Requirements and Information, Item 1, Key Action Dates. Proposals received after this date and time will not be considered.

d. A minimum of one (1) unbound original and one (1) copy of the proposal must be submitted. All responses to this RFP must be submitted in hard copy and received by CEFA no later than 4:00 p.m.

PT on May 16, 2025. Emailed or faxed submissions will not be accepted.

e. The original proposal must be marked "ORIGINAL COPY". All documents contained in the original proposal package must have original signatures and must be signed by a person who is authorized to bind the Firm. All additional proposal sets may contain photocopies of the original package.

f. The proposal envelopes must be plainly marked with the RFP number and title, the Firm name and address, and must be marked with “DO NOT OPEN”, as shown in the following example:

Subject – Request for Proposals – “Audit Services”

Firm Name

Firm Address

DO NOT OPEN

If the proposal is made under a fictitious name or business title, the actual legal name of Firm must be provided. Proposals not submitted under sealed cover and marked as indicated may be rejected.

g. All proposals shall include the documents identified in Section E, Required Attachments Checklist.

Proposals not including the proper required attachments shall be deemed non-responsive. A non-responsive proposal is one that does not meet the basic proposal requirements.

h. Mail or deliver proposals to the following address:

Ms. Erica Rodriguez Compliance Officer

California Educational Facilities Authority 901 P Street, Suite 313

Sacramento, CA 95814

i. Proposals must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and will cause a proposal to be rejected.

j. A proposal may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. CEFA may reject any or all proposals and may waive any immaterial deviation in a proposal. CEFA’s waiver of an immaterial deviation shall in no way modify the RFP document or excuse the proposer from full compliance with all requirements if awarded the agreement.

k. Costs for developing proposals and in anticipation of award of the agreement is entirely the responsibility of the proposer and shall not be charged to CEFA or the State.

l. An individual who is authorized to bind the proposing Firm contractually shall sign Attachment 2, Proposal/Proposer Certification Sheet. The signature must indicate the title or position that the individual holds in the Firm. An unsigned proposal will be rejected.

m. A Firm may modify a proposal after its submission by withdrawing its original proposal and resubmitting a new proposal prior to the proposal submission deadline as set forth in the Key Action Dates, Section C, Item 1. The submission of a new proposal must comply with requirements of this section. Proposal modifications offered in any other manner, oral or written, will not be considered.

n. A Firm may withdraw its proposal by submitting a written withdrawal request to CEFA prior to the proposal submission deadline, signed by the proposer or an authorized agent to the address set forth in h above. A Firm may thereafter submit a new proposal prior to the proposal submission deadline.

o. CEFA may modify the RFP prior to the date fixed for submission of proposals by the issuance of an addendum to all parties who received a proposal package. All addendums will be posted on the CEFA website https://www.treasurer.ca.gov/cefa/index.asp, and on the California eProcure website at https://caleprocure.ca.gov/pages/public-search.aspx.

p. CEFA reserves the right to reject all proposals. CEFA is not required to award an agreement.

q. Before submitting a response to this solicitation, Firms should review, correct all errors, and confirm compliance with the RFP requirements.

r. Where applicable, the Firm should carefully examine work sites and specifications. No additions or increases to the agreement amount will be made due to a lack of careful examination of work sites and specifications.

s. Multiple proposals from an individual, Firm, partnership, corporation, or association under the same or different names, will not be considered. If more than one proposal is submitted, CEFA will consider the last proposal submitted for consideration.

t. CEFA will not accept alternate contract language from the Firm. A proposal with such language will be considered a counter proposal and will be rejected. The General Terms and Conditions (GTC) are not negotiable.

u. No oral understanding or agreement shall be binding on either party.

5. Evaluation Process

a. All proposals will be reviewed by an evaluation committee. At the time of proposal opening, each proposal will be checked for the presence or absence of required information in conformance with the submission requirements of this RFP. The absence of required information will cause a proposal to be deemed non-responsive and will result in the proposal’s disqualification.

https://www.treasurer.ca.gov/cefa/index.asp https://caleprocure.ca.gov/pages/public-search.aspx

b. Proposals that contain false or misleading statements, or which provide references, which do not support an attribute or condition claimed by the proposer, will be rejected.

c. Award, if made, will be to the responsible Firm with the responsive proposal earning the highest score.

d. The proposals that meet the Minimum Qualifications in Section B and the Proposals Requirements in

Section C, Items 1- 3, will be evaluated and scored according to the criteria indicated below. The selection will be made based on the following weighted factors. (Maximum points available for each criteria are noted.)

Rating/Scoring Criteria

(1) Qualification of personnel (20 points)

CEFA will evaluate the individuals to be assigned to the contract on the basis of background and experience in related work.

(2) Experience as an accounting/auditing Firm (25 points)

CEFA will evaluate the Firm on the basis of the Firm’s overall experience demonstrating its ability to successfully complete the requirements identified in Introduction, Section A, Item 1, and Scope of Service, Section A, Item 2.

(3) Experience as an accounting/auditing Firm to State or local governmental agencies (25 points)

CEFA will evaluate the Firm on the basis of the Firm’s overall experience demonstrating its knowledge of the State of California’s accounting procedures and the Firms experience auditing California state or local governmental agencies.

(4) Cost (30 points)

CEFA will score the cost proposal based upon the Cost Detail Format and Requirements in Section C, Item 2.b. and Attachment 3.

Maximum Total Possible Points 100 points

e. The following point scale will be used to score the Firm’s response to each scored category except with regard to costs:

Percent of Maximum Score Allotted to Particular Weighted Criterion 100% – Excellent response backed by demonstrated ability 85% – Good response backed by demonstrated ability 75% – Fair response backed by demonstrated ability 60% – Poor response 0% – Proposer does not demonstrate ability

f. Cost Point Award Formula:

The following formula will be used for the award of cost points:

Lowest total cost proposal is awarded the maximum cost points (30 points). Other proposals are awarded total cost points based on the following calculation:

(Lowest Cost Proposal/Other Cost Proposal) = (factor) Total Cost points for Other Cost Proposal = (factor) X maximum cost points

EXAMPLE: A maximum of 30 points is available

Lowest Cost Proposal = $56,250 Other Cost Proposal = $75,000

(Lowest cost proposal / Other cost proposal) = $56,250 / $75,000 = ¾ Total cost points awarded to other proposal = ¾ x 30 =22.5 points

g. Tiebreaker – In the event two (2) or more responsive and responsible proposers earn the highest score, the contract will be awarded to the responsive and responsible Firm earning the higher score in Section C, Item 4(d)(2) and Item 4(d)(3) combined. If the total score in Section C, Item 4(d)(2) and Item 4(d)(3) are the same, the contract will be awarded to the responsive and responsible proposer earning the higher score for qualification of personnel. If the scores for qualification of personnel are the same, the contract will be awarded to the responsive and responsible proposer earning the higher score for cost.

6. Award and Protest

a. Notice of the proposed award shall be posted in a public place in the office of the California Educational Facilities Authority, 901 P Street, Suite 313, Sacramento, CA 95814 and on the following Internet site for five (5) working days prior to awarding the agreement: https://www.treasurer.ca.gov/cefa/.

b. If any Firm, prior to the award of agreement, files a protest with CEFA and DGS, Office of Legal

Services (OLS), 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95605, on the grounds provided under Public Contract Code Section 10345(b), the agreement shall not be awarded until either the protest has been withdrawn or DGS has decided the matter. A protest can be filed against a proposed award by emailing the OLS at: OLSProtests@dgs.ca.gov. It is suggested that the Firm submit any protest by certified or registered mail.

c. Within five (5) days of filing the initial protest, the protesting Firm shall file with DGS, Office of Legal

Services, and CEFA a full and complete written statement specifying the grounds for the protest.

7. Disposition of Proposals

a. Upon proposal opening, all documents submitted in response to this RFP will become the property of

CEFA and the State and will be regarded as public records under the California Public Records Act (Government Code section 6250 et seq.) and subject to review by the public.

b. Proposal packages may be returned only at the Firm's expense unless such expense is waived by CEFA.

8. Agreement Execution and Performance

a. Performance shall start on the express date set by CEFA and the selected Firm, after all approvals have been obtained and the agreement is fully executed. Should the Firm fail to commence work at the agreed upon time, CEFA, upon five (5) working days written notice to the Firm, reserves the right to terminate the agreement. In addition, the Firm shall be liable to CEFA for the difference between the Firm's proposal price and the actual cost of performing work by another contractor.

b. All performance under the agreement shall be completed on or before the termination date of the agreement.

https://www.treasurer.ca.gov/cefa/ mailto:OLSProtests@dgs.ca.gov

D. Preference and Incentive Programs

1. Small Business / Microbusiness Preference (If there are any inconsistencies herein with the applicable statutes, regulations, and State Contracting Manual, the statutes, regulations, and State Contracting Manual shall supersede.).

A five percent (5%) preference will be applied to certified small businesses submitting proposals for this RFP. To obtain the preference, Proposer must either be certified as a small business and submit a copy of their certification approval letter from DGS / Office of Small Business and DVBE Services (“OSDS”) or submit a complete application for certification to DGS / OSDS by 5:00 p.m. PT on the proposal due date.

However, the proposed winning Proposer must be a certified small business at the time of contract award.

The 5% preference is used only for computation purposes to determine the winning Proposer and does not alter the amounts of the resulting contract.

Once each proposal has been scored, if the highest scored proposal is from a non-certified small business, then 5% of the highest scoring proposal is added to the total “earned” points for each proposal submitted by a certified small business. These final numbers, with the 5% included, are then used to determine the highest scoring proposal.

Questions regarding the small business certification or preference approval should be directed to the OSDS at (916) 375-4940 or can be found online at: https://www.dgs.ca.gov/PD/Resources/Page- Content/Procurement-Division-Resources-List-Folder/How-to-do-business-with-the-state-of-California.

2. Non-Small Business or Microbusiness Preference

A five percent (5%) preference is available to a non-small business claiming twenty-five percent (25%) California certified small business subcontractor participation. If claiming the non-small business subcontractor preference, the proposal must include a list of the small business(es) with which the Proposer commits to subcontract in an amount of at least 25% of the net proposal price with one or more California certified small businesses. Each listed certified small business must perform a "commercially useful function" in the performance of the contract as defined in Government Code Section 14837(d)(4).

The required list of California certified small business subcontractors must be attached to the proposal and must include the following: 1) subcontractor name, 2) address, 3) phone number, 4) a description of the work to be performed and/or products supplied; and 5) the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor.

Proposers claiming the 5% preference must commit to subcontract at least 25% of the net proposal price with one or more California certified small businesses. Completed certification applications and required supporting documents must be submitted to the OSDS no later than 5:00 p.m. PT on the proposal due date.

Questions regarding certification should be directed to the OSDS at (916) 375-4940 or can be found online at https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List- Folder/How-to-do-business-with-the-state-of-California.

The preference to a non-small business Firm that commits to California certified small business subcontractor participation of 25% of its net proposal price shall be 5% of the highest scoring proposal. A non-small business, which qualifies for this preference, may not take an award away from a certified small business

3. California Disabled Veteran Business Enterprise (“DVBE”) Incentive

This solicitation DOES NOT include a minimum DVBE participation requirement. DVBE participation is not required in the proposal. However, a DVBE incentive will be applied as provided in Attachment 13.

https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-Folder/How-to-do-business-with-the-state-of-California https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-Folder/How-to-do-business-with-the-state-of-California https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-Folder/How-to-do-business-with-the-state-of-California https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-Folder/How-to-do-business-with-the-state-of-California

DVBE INCENTIVE. The State will apply a DVBE incentive for responsive proposals from responsible Firms that propose DVBE participation. The DVBE incentive will vary in relation to the percentage of confirmed DVBE participation (up to five percent (5%)).

DVBE PARTICIPATION COMMITMENT. Firms who have been certified by California as a DVBE must also submit a completed form(s) DGS PD 843 (Disabled Veteran Business Enterprise Declaration). All disabled veteran owners and disabled veteran managers of the DVBE(s) must sign the form(s). The form is available at: https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf.

Any contract awarded to a company committing to subcontract with a certified DVBE will follow requirements as provided in MVC 999.7 including compliance with the Std. 817 reporting process, and permanent withholds and deductions for non-compliance.

E. Required Attachments

1. Required Attachments Checklist (Attachment 1)

For the proposal to be considered responsive, all required attachments listed on Attachment 1 must be included in the proposal and received by CEFA by the dates and times shown in Section C, Proposal Requirements and Information, Item 1, Key Action Dates.

https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf

ATTACHMENT 1

CEFA02-25

REQUIRED ATTACHMENTS CHECKLIST

A complete proposal or proposal package will consist of the items identified below. Complete this checklist to confirm the items in your proposal. Place a check mark or “X” next to each item that you are submitting to the State. For your proposal to be responsive, all required attachments must be returned. This checklist should be returned with your proposal package also.

Attachments Attachment Name/Description

Attachment 1 – Required Attachments Checklist

Attachment 2 – Proposal/Proposer Certification Sheet

Attachment 3 – Cost Proposal Worksheet

Attachment 4 – Proposer References

Attachment 5 – Minimum Qualifications Certification

Attachment 6 – Payee Data Record (STD. 204)

Attachment 7 – Darfur Contracting Act Certification

Attachment 8 – Contractor’s Certification Clauses (CCC 04/2017)

Attachment 9 – Generative Artificial Intelligence (GenAI) Notification

Attachment 10 – Bidder Declaration (GSPD-05-105)

Attachment 11 – Small Business or Microbusiness Preference*

Attachment 12 – Non-Small Business or Microbusiness Preference*

Attachment 13 – Disabled Veteran Business Enterprise (DVBE) Incentive Program*

*If applicable

ATTACHMENT 2

PROPOSAL/PROPOSER CERTIFICATION SHEET

This Proposal/Proposer Certification Sheet must be signed and returned along with all the "required attachments" as an entire package in duplicate with original signatures. The proposal must be transmitted in a sealed envelope in accordance with RFP instructions.

Do not return the RFP or the "Sample Agreement" at the end of this RFP.

A. Place all required attachments behind this certification sheet.

B. The signature affixed hereon and dated certifies compliance with all the requirements of this Request for

Proposals document. The signature below authorizes the verification of this certification.

An Unsigned Proposal/Proposer Certification Sheet May Be Cause for Rejection

1. Company Name 2. Telephone Number 2a. Fax Number

3. Address

Indicate your organization type:

4. Sole Proprietorship 5. Partnership 6. Corporation

Indicate the applicable employee and/or corporation number:

7. Federal Employee ID No. (FEIN) 8. California Corporation No.

9. Indicate applicable license and/or certification information:

10. Proposer’s Name (Print) 11. Title

12. Signature 13. Date

14. Are you certified with the Department of General Services, Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS) as:

a. California Small Business Yes No

If yes, enter certification number:

b. Disabled Veteran Business Enterprise Yes No

If yes, enter your service code below:

NOTE: A copy of your Certification is required to be included if either of the above items is checked “Yes”.

Date application was submitted to OSDS, if an application is pending:

Completion Instructions for Proposal/Proposer Certification Sheet

Complete the numbered items on the Proposal/Proposer Certification Sheet by following the instructions below.

Item Numbers

Instructions

1, 2, 2a, 3

Must be completed. These items are self-explanatory.

Check if your Firm is a sole proprietorship. A sole proprietorship is a form of business in which one person owns all the assets of the business in contrast to a partnership and corporation. The sole proprietor is solely liable for all the debts of the business.

Check if your Firm is a partnership. A partnership is a voluntary agreement between two or more competent persons to place their money, effects, labor, and skill, or some or all of them in lawful commerce or business, with the understanding that there shall be a proportional sharing of the profits and losses between them. An association of two or more persons to carry on, as co-owners, a business for profit.

Check if your Firm is a corporation. A corporation is an artificial person or legal entity created by or under the authority of the laws of a state or nation, composed, in some rare instances, of a single person and his successors, being the incumbents of a particular office, but ordinarily consisting of an association of numerous individuals.

Enter your federal employee tax identification number.

Enter your corporation number assigned by the California Secretary of State’s Office. This information is used for checking if a corporation is in good standing and qualified to conduct business in California.

Complete, if applicable, by indicating the type of license and/or certification that your Firm possesses and that is required for the type of services being procured.

10, 11, 12, 13

Must be completed. These items are self-explanatory.

If certified as a California Small Business, place a check in the "yes" box, and enter your certification number on the line. If certified as a Disabled Veterans Business Enterprise, place a check in the "Yes" box and enter your service code on the line. If you are not certified to one or both, place a check in the "No" box. If your certification is pending, enter the date your application was submitted to OSDS.

ATTACHMENT 3

COST PROPOSAL WORKSHEET

Responsive proposals must include the Firm’s proposed hourly rate, including the rates of all subcontractors, and expenses for each year contemplated under the Contract, as shown in the sample format provided below.

The contract amount may not to exceed $25,000 for each year. Travel, transportation, and per diem expenses shall not exceed the rates payable to State employee.

Work Plan/Rates – Audit of Fiscal Year 2024/2025

Rate Per DIRECT LABOR (Job Title) Hour Hours Cost

TOTAL DIRECT LABOR $__________

SUBCONTRACTOR(S) COST ITEMIZED $__________

DIRECT COSTS (EXCEPT LABOR)

Travel Costs (mileage, parking) $ __________

Equipment and Supplies (Itemized) $ __________

Other Direct Costs (Itemized) $ __________

TOTAL DIRECT COSTS $__________

Work Plan/Rates – Audit of Fiscal Year 2025/2026

DIRECT LABOR (Job Title) Hour Hours Cost

Equipment and Supplies (Itemized) $ __________

Work Plan/Rates – Audit of Fiscal Year 2026/2027

DIRECT LABOR (Job Title) Hour Hours Cost

Equipment and Supplies (Itemized) $ __________

Proposed Maximum Fee Schedule

A. Audit of Fiscal Year 2024/2025 Audit $__________

B. Audit of Fiscal Year 2025/2026 Audit $__________

C. Audit of Fiscal Year 2026/2027 Audit $__________

TOTAL PROPOSED MAXIMUM FEE SCHEDULE FOR FISCAL YEARS 2024/2025,

2025/2026 and 2026/2027 AUDITS $__________

ATTACHMENT 4

PROPOSER REFERENCES

Submission of this attachment is mandatory. Failure to complete and return this attachment with your proposal will cause your proposal to be rejected and deemed nonresponsive.

Submit a list of at least three references (clients) to which the Firm has provided similar accounting/auditing services within the past four (4) years and contact numbers for each. At least one reference must be from a California state or local governmental agency. If three references cannot be provided, please explain why on an attached sheet of paper.

REFERENCE 1

Name of Firm Street Address City State Zip Code Contact Person Telephone Number Dates of Service Value or Cost of Service Brief Description of Service Provided

REFERENCE 2

Name of Firm Street Address City State Zip Code Contact Person Telephone Number

REFERENCE 3

Name of Firm Street Address City State Zip Code Contact Person Telephone Number

ATTACHMENT 5

MINIMUM QUALIFICATIONS CERTIFICATION

The Firm certifies that it fulfills the minimum qualifications outlined in Section B of Request for Proposals No. CEFA02-25 (the “RFP”).

On behalf of , I certify (Firm Name) that said Firm, including any and all subcontractors, complies with the Minimum Qualifications set forth in Section B of the RFP.

(Authorized Signature of Firm) (Firm Name)

(Print Name) (Date)

(Title)

ATTACHMENT 6

PAYEE DATA RECORD (STD. 204)

All Firms must complete the Payee Data Record (STD. 204) and include it with their proposal response.

The Payee Data Record form can be accessed from the following link:

https://www.documents.dgs.ca.gov/dgs/fmc/pdf/std204.pdf.

https://www.documents.dgs.ca.gov/dgs/fmc/pdf/std204.pdf

ATTACHMENT 7

DARFUR CONTRACTING ACT CERTIFICATION

Pursuant to Public Contract Code Section 10478, if a bidder or proposer currently or within the previous three years has had business activities or other operations outside of the United States, it must certify that it is not a “scrutinized” company as defined in Public Contract Code Section 10476.

Therefore, to be eligible to submit a bid or proposal, please complete only one of the following three paragraphs:

1. _____ We do not currently have, and have not had within the previous

Initials three years, business activities or other operations outside of the United States.

OR

2. _____ We are a scrutinized company as defined in Public Contract Code Initials Section 10476, but we have received written permission from the Department of

General Services (DGS) to submit a bid or proposal pursuant to Public Contract Code Section 10477(b). A copy of the written permission from DGS is included with our bid or proposal.

OR

3. _____ We currently have, or we have had within the previous three years, Initials business activities or other operations outside of the United States, but we certify below that we are not a scrutinized company as defined in Public Contract Code Section 10476.

CERTIFICATION

I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective proposer/bidder to the clause listed above. This certification is made under the laws of the State of California.

Company/Vendor Name (Printed)

Federal ID Number

By (Authorized Signature)

Printed Name and Title of Person Signing

Date Executed Executed in the County and State of

ATTACHMENT 8

CONTRACTOR CERTIFICATION CLAUSES (CCC 04/2017)

CERTIFICATION

I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Contractor to the clause(s) listed below. This certification is made under the laws of the State of California.

Contractor/Bidder Firm Name (Printed)

Federal ID Number

By (Authorized Signature)

Printed Name and Title of Person Signing

Date Executed Executed in the County of

CONTRACTOR CERTIFICATION CLAUSES

1. STATEMENT OF COMPLIANCE: Contractor has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102) (Not applicable to public entities.)

2. DRUG-FREE WORKPLACE REQUIREMENTS: Contractor will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:

a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.

b. Establish a Drug-Free Awareness Program to inform employees about:

1) the dangers of drug abuse in the workplace

2) the person's or organization's policy of maintaining a drug-free workplace

3) any available counseling, rehabilitation, and employee assistance programs; and,

4) penalties that may be imposed upon employees for drug abuse violations.

c. Every employee who works on the proposed Agreement will:

1) receive a copy of the company's drug-free workplace policy statement; and,

2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Contractor has made false certification or violated the certification by failing to carry out the requirements as noted above.

(Gov. Code §8350 et seq.)

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than one (1) final unappealable finding of contempt of court by a federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a federal court, which orders Contractor to comply with an order of the National Labor Relations Board. (Pub. Contract Code §10296) (Not applicable to public entities.)

4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO REQUIREMENT:

Contractor hereby certifies that Contractor will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Contractor agrees to make a good faith effort to provide a minimum number of hours of pro bono legal services during each year of the contract equal to the lessor of 30 multiplied by the number of full-time attorneys in the Firm’s offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its contract with the State.

Failure to make a good faith effort may be cause for non-renewal of a state contract for legal services and may be taken into account when determining the award of future contracts with the State for legal services.

5. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and

10286.1 and is eligible to contract with the State of California.

6. SWEATFREE CODE OF CONDUCT:

a. All Contractors contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in…