Independent_Auditing_and_Related_Services_for_the_County_of_Orange_-_fiscal_years_ending_June_30,_2026,_2027,_and_2028.pdf

COUNTY OF ORANGE

AUDITOR-CONTROLLER

REQUEST FOR PROPOSAL (RFP)

FOR

INDEPENDENT AUDITING AND RELATED SERVICES FOR THE

COUNTY OF ORANGE - FISCAL YEARS ENDING JUNE 30, 2026,

2027, AND 2028

RFP NO. 003-2958701-LS

RESPONSES MUST BE SUBMITTED ELECTRONICALLY TO:

https://secure.procurenow.com/portal/ocgov https://secure.procurenow.com/portal/%7bproject.government.code%7d

County of Orange RFP

Auditor-Controller - Independent Auditing and Related Services for the County of Orange - fiscal years ending June 30, 2026, 2027, and 2028, 003-2958701-LS Page 1 of 55

County of Orange

Auditor-Controller

Procurement and Contract Services

1770 N. BROADWAY

SANTA ANA, CA

92706

SCHEDULE OF ACTIVITIES

Release of RFP Solicitation November 10, 2025

Question Submission Deadline November 17, 2025, 4:00pm

RFP Submittal Closing December 12, 2025, 4:00pm

Proposal Evaluations December 29, 2025

PROPOSALS MUST BE RECEIVED ON

OR BEFORE

Friday, December 12, 2025

4:00 pm

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SECTIONS

SECTION 1. INTRODUCTION AND INSTRUCTIONS TO RESPONDENTS

SECTION 2. PROTEST PROCEDURES

SECTION 3. OCLSB AND DVBE PREFERENCE POLICIES CERTIFICATION

REQUIREMENTS

SECTION 4. SCOPE OF WORK

SECTION 5. VENDOR RESPONSES

SECTION 6. PROPOSAL SCORING CRITERIA - 1,000 TOTAL POINTS

Attachments:

A - MODEL CONTRACT FOR INDEPENDENT AUDITING AND RELATED SERVICES

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SECTION 1. INTRODUCTION AND INSTRUCTIONS TO RESPONDENTS

1.1 INTRODUCTION

The Orange County, Auditor-Controller (“County”) is soliciting Proposals (“Proposals”) from qualified licensed certified public accounting firms, (“Proposers”), to provide Proposals for a fixed fee contract for Independent Auditing and Related Services for the County of Orange - fiscal years ending June 30, 2026, 2027, and 2028. Proposers must meet the minimum qualifications and requirement set forth within this RFP and must be capable of providing the services set forth in the Scope of Work.

1.2 COUNTY HOLIDAYS DURING SOLICITATION PERIOD

During this solicitation period, the Auditor-Controller will be closed on the following County holidays:

• November 11, 2025, Veterans Day

• November 27, 2025, Thanksgiving Day

• November 28, 2025, Day after Thanksgiving

1.3 INSTRUCTIONS TO RESPONDENTS AND PROCEDURES FOR SUBMITTAL

Proposals are to be uploaded via the County's eProcurement Portal at https://procurement.opengov.com/portal/ocgov. For assistance on uploading proposals via

County’s Portal, please contact procurement-support@opengov.com or https://help.procurement.opengov.com/en/

Examine the Contract Documents and the site of the proposed work carefully before submitting a

Proposal for the work contemplated. Investigate the conditions to be encountered, as to the character, quality, and quantities of work to be performed and materials to be furnished and as to the requirements of all Contract Documents. The County has attempted to provide all information available. It is the responsibility of each Respondent to review, evaluate, and, where necessary, request any clarification prior to submission of a Proposal. If any person contemplating submitting a response to this Request for Proposals is in doubt as to the true meaning of any part of the solicitation documents attached hereto or finds discrepancies in or omissions from the specifications, they may submit a written request for clarification/interpretation to the County

Deputy Purchasing Agent (DPA) via the County’s eProcurement Portal under the bid page for this solicitation. If clarification or interpretation of this solicitation is considered necessary by County, an addendum shall be issued, and the information will be posted via the County’s eProcurement

Portal. Any interpretation of, or correction to, this solicitation shall be issued by the DPA. It is the responsibility of each Respondent to periodically check the County’s eProcurement Portal to ensure that they have received and reviewed any and all addenda to this solicitation. The County will not be responsible for any other explanations, corrections to, or interpretations of the documents, including any oral information. If an addendum is issued, proposers must acknowledge the addendum via the County’s eProcurement Portal. All questions or requests for interpretations must be received within this solicitation by Monday, November 17, 2025, before 4:00 pm. The https://procurement.opengov.com/portal/ocgov https://procurement.opengov.com/portal/ocgov mailto:procurement-support@opengov.com https://help.procurement.opengov.com/en/

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DPA will provide all official communication concerning this solicitation. Any County response relevant to this solicitation other than through or approved by the DPA is unauthorized and will be considered invalid.

Proposals must be valid for a period of at least three hundred sixty-five (365) calendar days from the closing date and time of receipt. No Proposal may be withdrawn after the submission date.

Each Respondent must submit their proposal electronically via the County’s eProcurement Portal.

All pages must be numbered and identified sequentially by section. Proposals must be tabbed and indexed in accordance with the information requested in the Proposal Response Requirements

Section. It is imperative that all Respondents comply, exactly and completely, with the instructions set forth herein. All responses to this solicitation shall be type written or word-processed (except where otherwise provided or noted), concise, straightforward, and must fully address each requirement and question. Although not as a substitute for a complete written response, additional material, such as technical documents, may be referenced in any response if the material is included in the same section as additional information.

Proposals are not to be marked as confidential or proprietary. The County may refuse to consider any Proposal so marked. All Proposals and supporting documents will be subject to the provisions of the California Public Records Act (California Code Government Code 7920.000 et seq.) (PRA) and will be disclosed or withheld in accordance therewith. The County shall not be liable in any way for disclosure of any such records. Additionally, all Proposals shall become the property of the County.

Respondents should not request that certain information be treated as exempt, and statements in the Proposals should not be marked as confidential or proprietary. In the event that any information is marked as confidential or proprietary, as it may be absolutely necessary, Respondents have the sole responsibility of obtaining any applicable injunctive reliefs to prevent the disclosure of such confidential proprietary information in connection with any request made to County pursuant to

PRA or a subpoena for disclosure of such information.

Each Respondent shall exercise reasonable care and diligence to avoid submitting a Proposal that could result in a conflict of interest if Respondent were to be selected. This obligation shall apply to the Respondent, the Respondent’s employees, agents, and relatives, sub-contractors, and third parties associated with accomplishing work and services in Proposal. In the event Respondent has done work for the County on this Project in the past or has reason to believe that a conflict of interest may exist for Respondent in regard to this Project, Respondent should consult with its legal counsel prior to responding to this solicitation. Any Respondent who is found to have an actual conflict of interest may have its Proposal rejected on that ground.

Respondent, its employees and/or consultants may be subject to the provisions of the California

Political Reform Act of 1974 (the “Act”), which (1) requires such persons to disclose any financial interest that may be materially affected by services provided under this Contract, (2) prohibits such persons from making, or participating in making, decisions that could reasonably affect such

Auditor-Controller - Independent Auditing and Related Services for the County of Orange - fiscal years ending June 30, 2026, 2027, and 2028, 003-2958701-LS Page 5 of 55 interest; and (3) may require the filing a Statement of Economic Interest (Form 700). If subject to the Act, Respondent shall conform to all requirements of the Act. Failure to do so shall constitute a material breach and is grounds for immediate termination of the Contract by County. Respondent shall indemnify and hold harmless County for any and all claims for damages resulting from

Respondent’s violation of this Section.

By submitting a Proposal, the Respondent represents that it thoroughly examined the County’s requirements, is familiar with the services required under this solicitation and is qualified and capable of providing the services to achieve the County’s objectives.

Each Respondent must submit its Proposal in strict accordance with all requirements of this solicitation and compliance must be stated in the Proposal. Deviations, clarifications and/or exceptions must be clearly identified and listed separately as alternative items on additional information section for the County’s consideration as specified in the Proposal Response

Requirements Section, “Statement of Compliance.”

Allow sufficient time to upload all required files. The County’s eProcurement Portal will not allow any uploads after the due date and time specified herein, e.g., if Part 1 and 2 uploaded successfully at 1:58:38 P.M. and Part 3 is in progress of being uploaded at 2:00:01 P.M., Part 3 will not upload successfully.

Pre-contractual expenses are not to be included in the Cost Proposal, Attachment B, Pricing and

Compensation. Pre-contractual expenses are defined as including, but not limited to, expenses incurred by the Respondent in: a) preparing its Proposal in response to this solicitation; b) submitting that Proposal to the County; c) negotiating with the County any matter related to the

Respondent’s Proposal; and d) any other expenses incurred by the Respondent prior to the date of award and execution, if any, of the Contract.

Any Proposal may be construed as non-responsive and ineligible for consideration if it does not comply with the requirements of the solicitation. Failure to comply with the technical features and acknowledgment of receipt of addenda are common causes for holding a Proposal nonresponsive.

Where two or more Respondents desire to submit a single Proposal in response to this solicitation, they must do so on a prime/subcontractor basis rather than as a joint venture. The County intends to contract with a single firm that may subcontract with multiple firms (team) but not with multiple firms doing business as a joint venture.

County does not require and neither encourages nor discourages the use of lobbyists or other consultants for the purpose of securing business.

The County requires a valid D-U-N-S number prior to Contract Award. If needed, your company may obtain one at no cost at www.dnb.com. If you are unable to provide/obtain a D-U-N-S number, please indicate so in your proposal/bid submission response.

The County requires a valid UEI number and full registration prior to Contract Award. Your company must obtain one at no cost at www.usfcr.com. If you are unable to provide/obtain a UEI number, please indicate so in your proposal submission response.

http://www.dnb.com/ http://www.usfcr.com/

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Effective from the issuance date of this solicitation until a Contract is awarded or the solicitation is withdrawn, all individuals or entities responding including their employees, agents, representatives, proposed partners, subcontractors, members, lobbyists, or attorneys (collectively

"Respondents") are prohibited from engaging in any direct or indirect communication with County personnel involved in the selection process, except with the designated Deputy Purchasing Agent

(DPA). Respondents may continue conducting business with the County on matters unrelated to this solicitation and may communicate with County staff, provided the solicitation is not discussed.

Any attempt to engage in discussion regarding this solicitation with anyone other than the designated DPA will be presumed to create an unfair competitive advantage and may result in disqualification.

After the closing date and time for receipt of proposals, evaluation, and if requested by the County, interviews will commence. Respondents who submit proposals most responsive to the County’s requirements may be asked to give a presentation of their proposal to County staff. The County makes no guarantee as to the number of Respondents selected for interviews. Selected

Respondents should be prepared to make its presentation within five (5) business days after notification and be prepared to discuss all aspects of its proposal in detail, including technical questions regarding the proposal. Respondents shall not be allowed to alter or amend its proposal through the use of the presentation process.

1.4 MINIMUM QUALIFICATIONS/REQUIREMENTS

Respondent’s Proposal shall meet the following minimum requirements and qualifications to proceed to the evaluation process. Failure to have the ability to, upon County request, provide any of the items requested below may result in disqualification of your Proposal. These qualifications must be maintained during the term of any resultant Contract.

A. Must have the ability to do business in Orange County, California.

B. Complete all required Vendor Response questions of the solicitation.

C. Provide all required information.

D. Have minimum five (5) years of consecutive, recent experience developing, implementing, and supporting Independent Auditing and Related Services.

E. Firm to have similar size project for at least three (3) public agencies.

F. Firm must be a properly licensed Certified Public Accounting (CPA) firm with a minimum of five (5) years of experience.

1.5 EVALUATION PROCESS

Proposals deemed to meet all minimum solicitation requirements will be scored based on the established evaluation criteria and will be assigned points that measure the responsiveness to each identified criterion. The total number of points earned will be tallied for each Proposal, based upon the Respondent(s) submitted written materials.

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Proposals shall be evaluated by an Evaluation Panel of job knowledge experts on the basis of the responsiveness to the requirements in this RFP. The County may request clarifications, or otherwise verify the contents of the Proposal, including information about the Respondent, Contractors and sub-contractors.

The scoring is based on evaluation of the Proposal as measured against the Proposal Scoring

Criteria, which includes County of Orange Procurement Preference Policy, in accordance with

Sections 1.8-103 and 4.3-112 of the 2024 County Contract Policy Manual (CPM). A copy of the

2024 CPM can be found at https://cpo.oc.gov/cpm. Proposals will be evaluated from the most advantageous to the least advantageous to the County.

1.6 SELECTION/AWARD PROCEDURES

Upon the completion of the evaluation process, the Evaluation Committee will make a recommendation for an award to the County’s DPA. Final award determination shall be subject to reference checks and past performance.

The Model Contract contained herein this RFP is the Contract proposed for execution. It may be modified to incorporate negotiated items and other pertinent terms and conditions set forth in this

RFP, including special conditions and requirements and those added by addendum, necessary attachments and/or exhibits, and to reflect Respondent’s Proposal and qualifications. Any additional exceptions to the terms and conditions made by any Respondent after submission of its

Proposal may result in its elimination from further consideration.

Any exceptions to the proposed Contract’s terms and conditions, or any statements indicating the Respondent’s inability to comply with any of the provisions, must be disclosed in the Proposal under VENDOR RESPONSES - Statement of Compliance.

Negotiations may or may not be conducted with the finalist(s); therefore, the Proposal submitted should contain Respondent(s) most favorable terms and conditions, since the selection and award may be made without further discussion or need for clarification. Any additional exceptions to the terms and conditions made by any Respondent(s) after submission of its proposal may result in elimination from further consideration.

The County will enter into negotiations with the selected Respondent and award a contract upon completion of negotiation of fees and contract terms. The award may be subject to/requires approval(s) by the County Board of Supervisors.

If a satisfactory Contract cannot be negotiated in a timely manner, County, in its sole discretion, may terminate negotiations with the selected Respondent and begin negotiations with the next

Respondent.

1.7 RIGHTS RESERVED TO COUNTY

The County reserves the right to:

A. Make use of any information or ideas in the Proposals submitted.

https://cpo.oc.gov/cpm

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B. Request proposal revisions and hold discussions and negotiations with any Respondent as necessary to serve the best interests of the County.

C. Seek publicly available information about the Respondents.

D. Conduct, or not to conduct, oral interviews and/or presentations with the highest-ranked

Respondent(s) and additional Respondents.

E. Waive, at its discretion, any procedural, non-material defects, irregularity, or informality, which County deems correctable or otherwise not warranting rejection of the proposal that do not result in any unfair competitive advantage. Any waiver will not excuse a proponent from full compliance.

F. Verify and validate any information prior to Contract Award and during the entire term of the Contract.

G. Negotiate the final Contract with any Respondent(s), including pricing/fee schedule, as necessary to serve the best interests of the County.

H. Withdraw or cancel in part or in its entirety this solicitation at any time without prior notice and furthermore makes no representations that any Contract will be awarded to any Respondent responding to this solicitation.

I. Award its total requirements to one Respondent or to apportion those requirements among two or more Respondents as the County may deem to be in its best interests.

J. Reject any Proposal if it is conditional, incomplete or deviates significantly from the services requested in this solicitation; and/or

K. Request Best and Final Offer from any Respondent determined to be within the competitive range. Unless requested by the County, late Best and Final Offers will not be accepted by the County for any reason. In addition, negotiations may or may not be conducted with Respondents.

L. Make multiple awards to Respondent(s) for services requested in this solicitation, at its sole discretion, to serve the best interests of the County.

M. Defer award of this Contract for a period of 180 days after the solicitation opening.

During this period of time, Respondent shall guarantee the prices quoted in their

Proposals. County and the lowest responsive, responsible Respondent may mutually agree in writing to a longer deferral period.

Therefore, Proposals submitted shall contain the Respondent’s most favorable terms and conditions, since the selection and award may be made without discussion with any Respondent.

1.8 TITLE VI SOLICITATION NOTICE

The County of Orange, in accordance with the provisions of the Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 USC §§ 2000d to 2000d-4) and the Regulations, hereby notifies all

Respondents that it will affirmatively ensure that any contract entered into pursuant to this

Auditor-Controller - Independent Auditing and Related Services for the County of Orange - fiscal years ending June 30, 2026, 2027, and 2028, 003-2958701-LS Page 9 of 55 advertisement, will be afforded full and fair opportunity to submit proposals in response to this solicitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.

1.9 DEPARTMENT OF THE TREASURY, INTERNAL REVENUE SERVICE FORM

W-9/W-8 REQUIREMENTS

Effective June 3, 2006, all Contractors, entering into a Contract with County, who are not already established in Countywide ERP System as an Auditor-Controller vendor, will be required to submit to County a federal Form W-9, or form W-8 for foreign vendors. County will inform

Contractor, at the time of award, if the Form W-9 or W-8 will be required.

In order to comply with this County requirement, within ten (10) days of notification of selection of award of Contract but prior to official award of Contract, the selected Contractor agrees to furnish to Contract administrator, or the deputy purchasing agent (DPA) the required W-9 or W-

8.

1.10 LEVINE ACT REQUIREMENT

Effective January 1, 2023, all contractors entering into a contract with the County, will be required to submit the Campaign Contribution Disclosure Form for any contributions made on or after

January 1, 2023. In order to comply with this requirement, Respondent agrees to furnish the required Campaign Contribution Disclosure Information form as a required submittal with its

Proposal. Failure to include the form as required will render the Proposal nonresponsive.

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SECTION 2. PROTEST PROCEDURES

All protests shall be typed under the protestor’s letterhead and submitted in accordance with the provisions stated herein. All protests shall include at a minimum the following information:

A. The name, address, and telephone number of the protestor.

B. The signature of the protestor or the protestor’s representative.

C. The solicitation or contract number.

D. A detailed statement of the legal and/or factual grounds for the protest; and, E. The form of relief requested.

Protest of Solicitation Specifications:

A. All protests related to solicitation specifications must be submitted to the Deputy

Procurement Agent, Lorena Silva at lorena.silva@ac.ocgov.com, no later than five (5) business days prior to the Closing Date of the solicitation. Protests received after the five

(5) business-day deadline will not be considered by the County.

1. In the event the protest of specifications is denied, and the protestor wishes to continue in the solicitation process, the protestor must still submit a bid/proposal prior to the close of the solicitation in accordance with the solicitation submittal procedures provided in this solicitation.

Protest of Award of Contract:

A. All protests related to the award of a contract, the protest must be submitted no later than five (5) business days after the Notice of Intent to Award is provided by the DPA.

B. Protests relating to a proposed contract award received after the five (5) business day deadline will not be considered by the County.

Protest Process:

A. In the event of a timely protest, the County shall not proceed with the solicitation or award of the contract until the DPA issues a decision on the protest.

B. Upon receipt of a timely protest, the DPA will, within ten (10) business days of receipt of the protest, issue a decision in writing which shall state the reasons for the actions taken.

C. The County may, after providing written justification, make the determination that an immediate award of the contract is necessary to protect the substantial interests of the

County. The award of a contract shall in no way compromise the protester’s right to the protest procedures outlined herein.

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D. If the protestor disagrees with the decision of the DPA, the protestor may submit a written appeal to the County Procurement Officer requesting an appeal to the

Procurement Appeals Board, in accordance with the process stated below.

Appeal Process:

A. If the protestor wishes to appeal the protest decision of the DPA, the protestor must submit, within three (3) business days from receipt of the DPA’s decision, a written appeal to the Office of the County Procurement Officer.

Written appeals must be sent by mail to the address below with a courtesy copy by email:

County of Orange/County Executive Office

County Procurement Office

400 W. Civic Center Drive, 5th Floor

Santa Ana, CA 92701

Attn: County Procurement OfficerCPOAppeals@ceo.oc.gov

B. Within fifteen (15) business days, the County Procurement Officer will review all materials in connection with the appeal, assess the merits of the protest and provide a written determination that shall contain his or her decision on whether the appeal shall be forwarded to the Procurement Appeals Board.

C. The decision of the County Procurement Officer on whether to allow the appeal to go forward will be final and there shall be no right to any administrative appeals of this decision.

mailto:CPOAppeals@ocgov.com

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SECTION 3. OCLSB AND DVBE PREFERENCE POLICIES CERTIFICATION

REQUIREMENTS

County of Orange Local Small Business (OCLSB) Preference and Disabled Veteran

Business Enterprise (DVBE) Preference Policies Certification Requirements

3.1 OCLSB:

Effective January 1, 2020, County of Orange Board of Supervisors adopted the OCLSB Preference policy. Implementation of the OCLSB Preference policy supports local businesses, the local economy and the development of the County’s tax base.

To be certified as a Local Small Business by the County of Orange, a business shall meet (1) and

(2) below:

A. Local Business Requirements:

1. maintains their principal center of operations (i.e. headquarters) within Orange

County, and:

2. has:

a. a business address located in the County of Orange that is not a post office box, or

b. a valid business license or certificate of occupancy issued by the County of

Orange or by an Orange County city, or other documentation acceptable to the

County of Orange.

B. Small Business Requirements:

1. Must be certified as a Small Business by the State of California Department of

General Services (DGS): and, C. Above requirements must be valid at the time of bid/proposal submittal.

3.2 DVBE:

Effective January 1, 2021, County of Orange Board of Supervisors adopted the DVBE Preference policy. The DVBE Preference policy supports local business opportunity, economy and the development of County’s tax base, and in addition recognizes the service and sacrifice given by the men and women of our Armed Forces.

To be certified as a Disabled Veteran Business Enterprise by the County of Orange, a business shall meet (A) and (B) below:

A. Must be certified as a DVBE by the State of California Department of General Services

(DGS); and, B. DGS DVBE requirements must be valid at the time of bid/proposal submittal.

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To participate as an OCLSB and/or DVBE please read and follow the process outlined in

COUNTY OF ORANGE LOCAL SMALL BUSINESS (OCLSB) AND DISABLED

VETERAN BUSINESS ENTERPRISE (DVBE) CERTIFICATION REQUIREMENTS in the VENDOR RESPONSES.

*NOTE: DVBE PREFERENCE IS NOT APPLICABLE TO PUBLIC WORKS OR A-E

CONSTRUCTION PROJECTS.

3.3 OCLSB/DVBE CERTIFICATION REQUIREMENTS:

County Of Orange Local Small Business (OCLSB) Preference And Disabled Veteran

Business Enterprise (DVBE) Certification Requirements

A. To participate as an OCLSB and/or DVBE the following requirements must be met:

1. Must be certified with State of California the Department of General Services (DGS) as a Small Business. - https://caleprocure.ca.gov/pages/sbdvbe-index.aspx

2. Must be certified with DGS as a DVBE. - https://caleprocure.ca.gov/pages/sbdvbe-index.aspx

3. maintains their principal center of operations (i.e. headquarters) within Orange

County.

4. Certification must be valid at the date/time solicitation is closed, and it shall remain in effect at the time of contract award. County reserves the right to verify and/or reject incomplete documents.

5. Complete and sign the Affirmation form attached herein. The signed Affirmation form and the OCLSB Certification are required and must be returned with the solicitation response.

B. OCLSB or DVBE Preference provides for the following:

1. Invitation for Bid – IFB

A five percent (5%) deduction in the original bid price shall be applied to all confirmed OCLSB or DVBE bidders for evaluation purposes. If the lowest bidder is a certified OCLSB or DVBE bidder, the contract will be awarded at the certified

OCLSB or DVBE’s original bid price. The maximum allowable preference deduction is $100,000.

2. Request for Proposal - RFP

An additional five percent (5%) shall be applied to the tallied cost score of each certified OCLSB or DVBE to obtain their final score. If the final score of any OCLSB or DVBE matches the final score of a non-OCLSB or non-DVBE, preference shall be given to the certified OCLSB. If two or more OCLSB or DVBEs have the same final https://caleprocure.ca.gov/pages/sbdvbe-index.aspx https://caleprocure.ca.gov/pages/sbdvbe-index.aspx https://caleprocure.ca.gov/pages/sbdvbe-index.aspx

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C. Dual OCLSB and DVBE Preference provides for the following:

1. Business Certified as OCLSB and DVBE

If a State-certified OCLSB is also a State-certified DVBE, the preference given to that business shall be 8% instead of 5%.

D. Subcontractors

If bidder is submitting subcontractors to qualify for the OCLSB or DVBE preference, bidder must demonstrate through the Staffing Plan that 20% of the total bid amount is allocated to the OCLSB and/or DVBE subcontractor(s).

*NOTE: DVBE PREFERENCE IS NOT APPLICABLE TO PUBLIC WORKS OR A-E

CONSTRUCTION PROJECTS.

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SECTION 4. SCOPE OF WORK

4.1 GENERAL INFORMATION

The County of Orange is located in Southern California and is bordered on the north by Los

Angeles and San Bernardino Counties, on the east by Riverside County, on the Southeast by San

Diego County and on the west and southwest by the Pacific Ocean. The County occupies a land area of 798 square miles with a coastline of 42 miles serving a population of approximately 3 million. It is the second most populous County in the State of California and fifth most populous in the nation.

The County incorporated in 1889 and became a charter County in March 2002. It is governed by an elected five-member Board of Supervisors with each Supervisor serving a four-year term. The

Supervisors represent five districts that are equal in population. County administration consists of fifteen County officers. Seven County officers are elected by a Countywide vote to four-year terms: the Assessor, Auditor-Controller, Clerk-Recorder, District Attorney/Public Administrator, Sheriff-Coroner, and the Treasurer-Tax Collector. The Board of Supervisors appoints eight officers including the County Executive Officer (CEO) who directly or indirectly oversees the 22

County Departments, County Counsel, Public Defender, Internal Auditor, Health Officer, Clerk of the Board, and Agriculture Commissioner. The Chief Probation Officer is appointed by the Board of Supervisors with the concurrence of the Presiding Judge of the Orange County Superior

Court.

The County’s core businesses are public safety, public works, construction management, public health, environmental protection, regional planning, public assistance, social services, and aviation with over 17,000 employees located throughout the County.

PROJECT DEFINITION

The Contractor must be a licensed certified public accounting firm qualified to perform

Independent Auditing and Related Services for the County of Orange for the fiscal years ending

June 30, 2026, June 30, 2027, and June 30, 2028. The overall project consists of multiple sub-projects, which are detailed in Section II, Items A through U. The County is in the process of implementing a new Enterprise Resource Planning (ERP) system, scheduled to go-live on July 1, 2027. This may impact the timeline for the fiscal years 2026-2027 and fiscal years 2027-2028 and may also alter the County staff’s business processes for completing the Annual Comprehensive

Financial Report (ACFR).

DUTIES AND RESPONSIBILITIES

The Contractor is responsible for the following sub-projects:

A. Annual Comprehensive Financial Report (ACFR)

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1. The Contractor shall:

a. Conduct an examination of the County’s financial statements, in accordance with generally accepted auditing standards, for the fiscal years ending June 30, 2026, 2027, and 2028.

b. Prepare and submit to the County, for publication within the County’s ACFR, a report on the examination of its financial statements, including an accountants' report expressed on the fairness of the presentation of its basic financial statements, in accordance with Generally Accepted Accounting Principles (GAAP), and an "in relation to" accountants' report on its supplemental financial information.

This report shall be addressed to:

County of Orange

Board of Supervisors

County Administration North

400 W. Civic Center Dr.

Santa Ana, CA 92701

c. Confer with, and provide assistance and direction to, appropriate County personnel for the purpose of filing for and obtaining a "Certificate of Achievement for

Excellence in Financial Reporting" from the Government Finance Officers

Association (GFOA).

2. The examination of the financial statements shall be of the financial type described in the most current edition of the AICPA Audit and Accounting Guide, “Audits of State and

Local Governments;” the most current edition of the U. S. Government Accountability

Office (GAO) “Government Auditing Standards” (The Yellow Book); and the most current GASB Statements, GASB Technical Bulletins, GASB Implementation Guides and

AICPA literature cleared by the GASB, as adopted by GASB Statement No. 76 and shall be conducted in accordance with generally accepted auditing standards (GAAS) and generally accepted government auditing standards (GAGAS) for the FY 2025-26 and subsequent years.

3. As of the fiscal year ending June 30, 2025, the County general ledger included 542 funds. For reporting purposes, these funds may be consolidated into major funds or fund categories, as outlined in the section below:

a. Major Governmental Funds

(1) General Fund

• General Fund - 2 funds

(2) Special Revenue Funds

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• Mental Health Services Act - 1 fund

• Flood Control District - 3 funds

• Other Public Protection – 32 funds

b. Other Governmental Funds

(1) Special Revenue - 53 funds

(2) Debt Service - 4 funds

(3) Capital Project - 5 funds

(4) Permanent - 1 fund

c. Enterprise Funds

(1) Airport (Major) - 4 funds

(2) Waste Management (Major) - 11 funds

(3) Compressed Natural Gas (Non-major)- 1 fund

d. Internal Service Funds - 11 funds

e. Fiduciary Funds

(1) Private Purpose Trust - 4 funds

(2) Investment Trust - 216 funds

(3) Pension Trust & Other Employee Benefits - 6 funds

(4) Custodial - 183 funds

f. Discrete Component Unit Fund - 2 funds (CalOptima is not maintained in the general ledger but discretely presented in the County’s ACFR.)

g. Fiduciary Component Unit Fund - 5 funds (OCERS is not maintained in the general ledger but presented in the County’s ACFR.)

The County retains the right to make additions and/or deletions to the funds listed above. Any such determination regarding inclusion or exclusion of a fund, or of a fund category, which may be necessary during the conduct of the examination, shall be made by the County Auditor-Controller. The County’s intention regarding the funds and fund categories referenced above is to comply with existing Generally Accepted

Accounting Principles (GAAP), to include all applicable GASB pronouncements.

Certain funds and account groups may be audited by other independent accounting firms in addition to the Contractor.

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4. The Manager of the Financial Reporting and Mandated Cost Unit, the Auditor-Controller

Department, will serve as the Project Manager and will coordinate all activities necessary for the completion of the ACFR.

The Manager of the Financial Reporting Unit and Mandated Cost Unit, the Auditor-

Controller Department, shall be apprised of and shall approve potential audit adjusting entries, and maintain and make available County general accounting records necessary for conducting the ACFR sub-project.

5. To enable the County to file its ACFR with the GFOA, the Contractor shall note the following plan and strictly adhere to these performance deadlines:

a. From Contract Award Date to July 31, 2026 - The Contractor shall complete as much interim audit fieldwork as possible during this period, to minimize the need for

County support and assistance and reduce the likelihood of unforeseen difficulties arising during the financial statement compilation and adjustment period, which is scheduled to begin on or about August 1.

b. August 3, 2026 - The County’s “budgetary” accounts (estimated revenues, appropriations and encumbrances) are scheduled to be closed for FY 2025-2026 on or about this date. Reports expressing chart of accounts coding for all funds, along with

Working Trial Balances, expressed in in terms of financial reporting classifications for each fund, will be available on or about this date.

c. August 18, 2026 - The County’s general accounting records are scheduled to be closed for FY 2025-2026 on or about this date. Preliminary GAAP adjustments will be reported in Working Trial Balances for all fund types, expressed in in terms of financial reporting classifications for each fund will be available through the County’s

Data Warehouse on or about this date.

d. August 24, 2026 - The County will prepare draft Budgetary Statements/Schedules to include in the 1st ACFR draft.

e. August 18 – October 1, 2026 – On or about these dates, the Contractor shall conduct fund level auditing procedures that will enable them to propose all FY 2025-2026 audit reclassifying and adjusting entries to the County’s fund level basic financial statements.

Fluctuation analysis conducted by the Contractor shall be completed during this period. All reclassifying and adjusting entries which the Contractor proposes for the

ACFR fund level financial statements as a result of auditing drafts of the ACFR and auditing the separate financial statements for the component units (referred to as

Subprojects G, H, and I within this Scope of Work), shall be submitted to the County during this time interval as well.

f. November 13, 2026 - The County plans to complete a comprehensive draft of the

ACFR and submit it to the Contractor for review on or about this date.

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g. December 9, 2026 – External Audit Firm provides management representation letter to County for signatures on or about this date.

h. November 13 - December 11, 2026 - The Contractor shall analyze the entire

ACFR, and recommend any revisions deemed necessary to the County, on or about these dates. The Contractor shall perform both partner-level and manager-level reviews of the ACFR for compliance with the most recent GFOA Special Review

Committee Checklist as part of this analysis.

i. December 18, 2026 - The Contractor shall sign and submit the report on the examination of the County’s FY 2025-2026 financial statements to the Auditor-

Controller on or about this date, as this is when the County plans to deliver the original copy of its ACFR to the printer.

6. The County intends to file its FY 2025-2026 ACFR with the GFOA with the intent of receiving a "Certificate of Achievement for Excellence in Financial Reporting."

The Contractor shall therefore provide guidance to the County Auditor-Controller regarding the County’s participation in the Certificate Program, including guidance concerning financial reporting formats consistent with GFOA's “Governmental Accounting, Auditing and Financial Reporting” text, as amended, and concerning the implementation of statements, interpretations and technical bulletins issued by the Governmental Accounting

Standards Board.

The Contractor shall keep the Auditor-Controller apprised of changes in the GFOA

Certificate Program's Special Review Committee Checklist. It is desirable that at least one audit manager or partner with responsibility for examination of the County’s financial statements, who is also a member of the GFOA Certificate Program's Special Review

Committee, be accessible to the Auditor-Controller for this purpose.

7. The County intends to file its Fiscal Years 2026-2027 and 2027-2028 ACFR with the

GFOA as well; therefore, the Contractor shall strictly adhere to the performance deadlines established by the County Project Manager. The performance deadlines for Fiscal Years

2026-2027 and 2027-2028 will approximate the same annual schedule as set forth herein for FY 2025-2026.

B. Audit of Investment Trust Funds

1. For each fiscal year being audited, the Contractor shall perform an audit of the County’s

Investment Trust Funds financial statements prepared in accordance with current GAAP, including GASB Statements No. 3, 31, 40, 72, 79. The Investment Trust Funds financial statements will be reported in the ACFR.

2.The Contractor shall submit separate invoices for fees associated with auditing the

Investment Trust Financial Statements.

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3. The Contractor shall strictly adhere to the performance deadlines as detailed in Section

A.5 of this Scope of Work for this sub-project.

C. Audit of Pension and Other Postemployment Benefit Trust Fund

1. For each fiscal year being audited, the Contractor shall perform an audit of the County’s

Pension and Other Postemployment Benefits (OPEB) Trust Fund financial statements prepared in accordance with current GAAP, including GASB Statements No. 43, 68, 74, and 75. The Pension and OPEB Trust Fund financial statements will be reported in the

ACFR.

2. The Contractor shall submit separate invoices for fees associated with auditing the

Pension and OPEB Trust Financial Statements.

3. The Contractor shall strictly adhere to the performance deadlines as detailed in Section

A.5 of this Scope of Work for this sub-project.

D. Single Audit Reports

1. The Contractor shall supply a multiple-part auditor's report on the County’s compliance with requirements of all Federally-funded programs for which it received funding, in accordance with the Single Audit Act Amendments of 1996, the Office of Management and

Budget's (OMB) Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards (Uniform Guidance), the most recent edition of the GAO's

“Government Auditing Standards” and the most recent edition of the AICPA Audit and

Accounting Guide, “Audits of State and Local Governments” for the FY 2025-26 and subsequent years. Any planning efforts, including risk assessment to determine which of the County’s Federal programs are “major” programs, and specific format and report requirements, shall be coordinated with the OMB and the Federal cognizant agency as necessary. The Department of Housing and Urban Development (HUD) has been designated as the cognizant agency for audit responsibilities for the County of Orange. This auditor’s report shall refer to a separate report on the County’s financial statements which shall be published in the ACFR.

The auditor’s report shall include:

a. An opinion as to whether the County’s basic financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles and an opinion as to whether the schedule of expenditures of Federal awards is presented fairly in all material respects in relation to the financial statements taken as a whole.

b. A report on internal control related to the financial statements and major programs.

This report shall describe the scope of testing of internal control and the results of the tests and, where applicable, refer to the separate schedule of findings and questioned costs.

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c. A report on compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements. This report shall also include an opinion as to whether the auditee complied with laws, regulations, and the provisions of contracts or grant agreements which could have a direct and material effect on each major program, and, where applicable, refer to the separate schedule of findings and questioned costs.

d. A schedule of findings and questioned costs, if applicable.

The Contractor shall perform any service warranty work required by the County’s cognizant agency to meet minimum Single Audit standards, even if such work is found to be needed after the Contractor has received complete payment for services in the performance of this Contract.

Service warranty work in this case shall mean any work that is required by any laws, regulations and statutes and discovered or found deficient by the County or the State as having been submitted by the Contractor in a form or content not in compliance with said laws, regulations, and statutes.

However, if the County had information needed to enable the Contractor to audit the

County’s federal programs to meet minimum Single Audit standards at the time the audit was performed, and had failed to provide such information to the Contractor, the Contractor is allowed to seek additional compensation from the County to correct this type of deficiency.

2. The County shall compile a "Schedule of Expenditures of Federal Awards" for the

Contractor’s use in this sub-project and for inclusion with the auditor's report. The external auditor will populate the Data Collection Form in the Federal Clearing House and provide it to the Manager of the Financial Reporting and Mandated Cost Unit, Auditor-Controller

Department for review.

3. The Manager of the Financial Reporting and Mandated Cost Unit, Auditor-Controller

Department, will coordinate all County activities necessary for completion of the Single

Audit Reports. Prior to the issuance of the final reports, the Contractor shall meet with the

Financial Reporting and Mandated Cost Manager to discuss the results and recommendations.

4. The reports shall be addressed to Board of Supervisors and County of Orange

5. Thirty hard copies and a PDF file of the reports for FY 2025-2026 shall be delivered to the Auditor-Controller on or before March 28, 2027. Distribution shall be made by the

Auditor-Controller.

6. For Fiscal Years 2026-2027 and 2027-2028, the Single Audit Reports shall be completed and delivered to the Auditor-Controller on or before March 28 of the following fiscal year.

E. Agreed-Upon Procedures for Attestation of Section 8 Cluster to HUD

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1. For each fiscal year being audited, the Contractor shall perform certain agreed-upon procedures, which the Orange County Housing Authority (OCHA) will specify, to perform an analysis of OCHA data, as of June 30 of the fiscal year. This procedure is solely to assist OCHA management in finding errors and irregularities in its data files. The sufficiency of the procedures is solely the responsibility of OCHA.

2. The Contractor shall furnish a report to the effect that they have performed the agreed-upon procedures in accordance with the standards established by the American Institute of

Certified Public Accountants. The report shall list the procedures performed and any findings.

3. The OCHA data files for FY 2025-2026 will be available to the Contractor on or about

January 1, 2027.

4. Five (5) hard copies and a PDF file of the agreed-upon procedure report for FY 2025-

2026 shall be…