RFP_26-4841_AUDIT_SERVICES-SAPFFA.pdf

SALIDA AREA PUBLIC FACILITIES

FINANCING AGENCY (SAPFFA)

C/O MODESTO CITY SCHOOLS

Purchasing Department 426 Locust Street

Modesto, CA 95351

(209) 574-1613

REQUEST FOR PROPOSAL

RFP #26-4841

INDEPENDENT AUDIT SERVICES

DUE DATE:

No later than 12:00 pm PST on

Thursday, March 5, 2026

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 2

TABLE OF CONTENTS

Page

Submittal of Proposal and Timeline 3

Important Notice to All Proposers 4

Introduction, Background and General Conditions 5-10

Statement of Work 11-12

Proposal Response Requirements 13-14

Analysis and Evaluation of Proposals 15-16

Sample Agreement 17-21

CHECKLIST OF DOCUMENTS TO BE RETURNED WITH RFP

Proposal

Attachment A: Cost Proposal Response Form

Attachment B: Contractor’s Certificate Regarding Workers’ Compensation

Attachment C: Non-Collusion Affidavit

Attachment D: June 30, 2025 Audit Report

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 3

SUBMITTAL OF PROPOSAL AND TIMELINE

Notice is hereby given that sealed proposals for RFP #26-4841 INDEPENDENT AUDIT SERVICES FOR SALIDA AREA PUBLIC FACILITIES FINANCING AGENCY (“Agency”) will be received via the Modesto City Schools’ (“District”) e-Procurement Portal, OpenGov no later than 12:00 p.m. PT on Thursday, March 5, 2026.

• Responses must be made on forms prepared by the Agency and submitted via the District’s e-Procurement Portal.

• All proposals received after said time shall not be accepted by OpenGov.

• The Agency will not accept hardcopy, fax or e-mail submissions.

• Proposals should be verified before submission. Proposals may not be adjusted after submission to the Agency. The Agency will not be responsible for errors or omissions on the part of the firm in preparation of a proposal.

• All proposals must be signed with the firm name and by a responsible officer or employee.

Obligations assumed by such signature must be fulfilled.

• Neither the Agency nor the District will be responsible for late or misdirected proposal submittals.

• Neither the Agency nor the District is responsible for proposer’s technology issues with the submission of a proposal.

• If any proposer finds discrepancies in, or omissions from the proposal documents, they must submit request for clarification through the District’s e-procurement system and responses will be posted via same. Neither the Agency nor the District will be responsible for oral interpretations. All addenda issued during the time of proposal shall be incorporated into the proposal.

• Proposers may withdraw their proposal, through the e-procurement system any time prior to the scheduled closing time for receipt of proposers.

Proposed Timeline

RFP Release Date January 9, 2026

Questions/Requests for Information/Clarification Wednesday, February 4, 2026, no later than 5:00 pm

RFP Due Date Thursday, March 5, 2026, no later than 12:00 pm

Initial Screening of Responses Week of March 9, 2026 Potential Oral Interviews with Firms Selected from Initial Screening Week of March 23, 2026

Recommendation of Final Selection to Governing Board June 2, 2026 https://procurement.opengov.com/portal/mcs4kids

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 4

IMPORTANT NOTICE

TO ALL PROPOSERS

Notice is hereby given that sealed proposals for RFP #26-4841 INDEPENDENT AUDIT SERVICES FOR SALIDA AREA PUBLIC FACILITIES FINANCING AGENCY (“Agency”) will be received via the Modesto City Schools’ (“District”) e-Procurement Portal, OpenGov, no later than 12:00 pm PST on Thursday, March 5, 2026.

Specifications and Instructions to Proposers are on file and may be obtained from the Modesto City Schools Purchasing Department, 426 Locust Street, Modesto, CA 95351, (209) 574-1613. Documents may also be downloaded from the District’s e-Procurement Portal, OpenGov.

The Agency reserves the right to reject any and all proposals and to waive any irregularity or informality.

The Agency may, during the proposal period, advise proposers by bulletin or addenda of additions, omissions or alterations in the specifications. All such changes shall be included in the proposal and become a part of the specifications as if originally submitted.

Any addenda shall be posted on the District’s e-Procurement Portal: OpenGov. Addenda notifications will be emailed to all persons on record as following this proposal. Failure of any proposer to receive any such addenda or interpretation shall not relieve such proposer from any obligation under their proposal as submitted

It is the sole responsibility of each proposer to periodically check the site for any addenda. Proposers are to acknowledge receipt of any and all addenda. This shall be done by signing and returning a copy of the addendum page(s) with your proposal.

Failure to acknowledge in writing the receipt of any addenda may result in proposal rejection. It is the proposer’s sole responsibility to see that addenda acknowledgement requirements are met.

All prospective vendors are hereby instructed not to contact any Agency Officer or District staff member, other than the OpenGov contact, regarding this proposal at any time during the proposal process. Any such contact may be cause for rejection of your proposal.

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 5

1. INTRODUCTION

This Request for Proposal (RFP No. 26-4841) contains specifications and related documents covering independent audit services for a three-year period beginning with the audit of fiscal year 2025-2026.

This RFP and all subsequent modifications thereto are hereby designated as the sole reference and authority for the preparation of proposals. This release of the RFP supersedes all other documents related to the work to be done. The contents of this RFP and subsequent modifications thereto take precedence over any and all information related to audit services for the Agency obtained from any source, either by verbal or written communications.

This RFP shall not be construed, (1) to create an obligation on the part of the Agency to enter into a contract with any audit firm, or (2) to serve as the basis for a claim for reimbursement for expenditures related to the development of a proposal.

Notwithstanding other provisions of the RFP, Auditors are hereby advised that this request is an informal solicitation of proposals only. It is not intended, nor is it to be construed, as the engaging in formal competitive bidding pursuant to any statute, ordinance, policy or regulation.

2. BACKGROUND

2.1 Overview of Salida Area Public Facilities Financing Agency (“SAPFFA”)

SAPFFA was created pursuant to a Joint Exercise of Powers Agreement among the Salida

Sanitary District, the Salida Union School District, the Modesto High School District and the Salida Fire Protection District (each, a SAPFFA Member) for the purpose of forming a community facilities district under the provisions of the Mello-Roos Community Facility Act of 1982. SAPFFA has established Community Facilities District No. 1988-1 (the CFD) for the purpose of collectively financing public facilities for each of the SAPPFA Members. SAPFFA does not have its own employees, property, or equipment. SAPFFA reimburses the respective SAPPFA Members for staff time and use of facilities and equipment.

SAPFFA's governing board (Governing Board) is comprised of five members. The Salida

Sanitary District makes two appointments to the Governing Board from among the persons then serving on the governing board of the Salida Sanitary District. Each of the other SAPFFA Members makes one appointment to the Governing Board from among the persons then serving on the governing board of that SAPFFA Member.

The officers of SAPFFA include a president, a vice-president, a treasurer, a controller (the

"Controller"), and a secretary. The Governing Board elects its president and vice-president from among its members for a one-year term. The treasurer, controller, and secretary are appointed by the Governing Board and serve at Governing Board's pleasure. These officers need not be members of the Governing Board.

SAPFFA is a separate reporting entity for financial reporting purposes and SAPFFA's financial statements reflect only the assets, liabilities, fund balances, revenues, and expenditures of SAPFFA. Pursuant to the JPA, SAPFFA has the power to form the CFD and finance authorized projects through the levy of special taxes, issue bonds or other evidence of indebtedness, enter into contracts and exercise other powers conferred under the Joint Powers Act.

SAPFFA’s June 30, 2025 Audit Report is presented in Attachment D.

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The financial management system resides on a cloud portal utilizing MIP Accounting package.

The Controller is responsible for control of the financial system.

SAPFFA issued a special tax (taxable) refunding bond in January 2020. The bond proceeds were used to refund the outstanding refunding bonds issued in November of 2011. SAPFFA does not plan to issue additional bonds. All of the projects for the CFD, as listed in the Joint Exercise of Powers Agreement, have been completed. The final debt service payment on the 2020 bond is September 1, 2028.

The work to be performed by the Auditor in connection with the audits of the various funds of

SAPFFA is described in Section 4 of this RFP. Qualified audit firms are invited to submit proposals in response to this request.

3. INFORMATION AND GENERAL CONDITIONS

3.1 Preparation of Proposal Documents

Responses must be made on forms prepared by the Agency and submitted via the District’s e-

Procurement Portal.

Oral, telegraphic, facsimile, telephone or hard copy RFP Packets will not be accepted. RFP Packets received after the due date and time will not be accepted and will be returned unopened.

Neither the Agency nor the District is responsible for Respondent’s technology issues with the submission of a proposal.

Each submittal must conform and be responsive to the requirements set forth in this RFP. The Agency reserves the right to waive any informalities or irregularities in the RFP Packets. The Agency also reserves the right to reject any and all RFP Packets and to negotiate contract terms with one or more Respondents. The Agency retains the sole discretion to determine issues of compliance and to determine whether a program management respondent is responsive, responsible, and qualified.

The Agency hereby notifies all Respondents that it will affirmatively insure that, in any contract entered into pursuant to this advertisement, no respondent will be discriminated against on the grounds of race, color, age, national origin, ancestry, gender, transgender status, marital status, political affiliation, religion, medical condition or physical disability on consideration for the award.

3.2 Signature

The proposal must be signed in the name of the Auditor and must bear the signature of the person authorized to sign proposals on behalf of the Auditor.

3.3 Completion of Proposals

Proposals shall be complete in all respects as required by the instructions herein. A proposal may be rejected if it is conditional or incomplete, or if it contains alterations of form or other irregularities of any kind. A proposal will be rejected if, in the opinion of the Director I, Purchasing, the information contained therein was intended to erroneously mislead the Agency in the evaluation of the proposal.

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3.4 Erasures

The proposal submitted must not contain erasures, interlineations, or other corrections unless each correction is authenticated by signing in the margin immediately opposite the correction the name of the person signing the proposal.

3.5 Examination of Contract Documents

Auditors shall thoroughly examine the contents of the RFP. The failure or omission of any

Auditor to receive or examine any contract documents, form, instrument, addendum, or other document shall in no way relieve the Auditor from obligations with respect to the RFP or to the contract to be awarded. The submission of a proposal shall be taken as prima facie evidence of compliance with this Section.

If the Auditor discovers any ambiguity, conflict, discrepancy, omission, or other errors in the

RFP, they shall immediately notify the Director I, Purchasing of the error and request modification or clarification of the document. Clarifications shall be given by written notice to all Auditors participating in the RFP, without divulging the source of the request. Modifications shall be made by addendum issued pursuant to Section 3.6 below.

If an Auditor fails to notify the Director I, Purchasing of an error in the RFP before the date scheduled for submission of proposals, or of any error that reasonably should have been known to them, they shall submit the proposal at their own risk. If the contract is awarded to the Auditor, they shall not be entitled to additional compensation or time by reason of the error or its subsequent detection.

3.6 Addenda

The Director I, Purchasing may modify this RFP before the date scheduled for submission of proposals by issuance of an addendum to all parties who received the RFP for the purpose of submitting a proposal. Addenda shall be numbered consecutively as a suffix to the RFP reference number.

3.7 Modification of RFP Response

The Auditor may modify their proposal after its submission by written notice to the Director I, Purchasing of withdrawal and re-submission before the date and time specified for receipt of proposals. Modification will not be considered if offered in any other manner.

3.8 Withdrawal of Proposal

The Auditor may withdraw their proposal by submitting a written request to the Director I, Purchasing at any time before the date and time scheduled for proposal submission. The Auditor may thereafter submit a new proposal before the proposal submission date. Proposals may not be withdrawn after the proposal submission date and time.

3.9 Rejection of Proposals

The Agency reserves the right to reject any or all proposals received in response to this RFP.

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3.10 Misunderstandings

The RFP documents will be clarified by the Director I, Purchasing upon written request from an

Auditor. The decision of the Director I, Purchasing shall be final in any matter of interpretation of the documents.

3.11 Cost of Preparation of Proposals

Costs for developing responses to this RFP are entirely the responsibility of the Contractor and shall not be chargeable to the Agency.

3.12 Evaluation of Proposals

Proposals will be evaluated in accordance with the procedures contained in Section 6. During the evaluation, validation and selection process, The Agency may request a meeting with an Auditor’s representative to request answers to questions or may request that they answer specific questions in writing. The Agency’s Review Committee may require that Auditor make presentations that are pertinent to the evaluation process. If a question and/or questions are asked by the Agency’s Review Committee in a meeting and these questions and the answers thereto are pertinent to the proposal documents and the contract to be awarded, the questions and the answers will be sent to the Auditor in writing for verification before they are included in the proposal and/or contract documents.

3.13 Award of Contract

If the contract is awarded, it will be to the responsible Auditor whose proposal is deemed to be the best proposal and whose proposal meets the need of the Agency. It is anticipated that the contract will be awarded within sixty (60) days. If award cannot be made within that time, Auditors will be requested in writing to extend the time period during which the Auditor agrees to be bound by their proposal. Written notification will be made to unsuccessful Auditors.

3.14 Errors in Proposal

Auditors shall be bound by the terms and conditions of their proposals notwithstanding the fact that errors are contained therein. However, if immaterial errors are found in a proposal, the Director I, Purchasing may notify the Auditor that their proposal contains errors and require the Auditor to correct the errors.

3.15 Workers’ Compensation

In accordance with the provisions of Section 3700 of the Labor Code of the State of California, each Auditor shall sign and file with the Agency a certificate before performing the work. The form of such certification is attached hereto and marked Attachment B.

3.16 Contract Documents

Documents included in this RFP are complementary. Work called for by one shall be binding as if called for by all.

3.17 Related Experience

All Auditors must submit information that indicates specific qualifications to perform the financial and compliance audit services as specified herein. Each Auditor shall submit with their

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 9 proposal, a list of clients for whom they have performed such services during the past two (2) years. The reference list shall include the names and addresses of each client, the names, titles and telephone number of each client’s manager, and the dates the work was performed. During the evaluation and selection process, the Controller may contact each of the reference clients.

Auditors are hereby advised that the Secretary maintains the sole and exclusive right to determine whether or not the Auditor can perform the work to be done. This determination will specifically address the level, background, and experience of individuals to be assigned to perform the audit services.

3.18 Definitions

The term (“the Agency”) as used in these clauses shall be construed to include the Salida Area

Public Facilities Financing Agency, the Salida Area Public Facilities Financing Agency Board, and all officers and agents of Salida Area Public Facilities Financing Agency.

3.19 Covenant Against Contingent Fees

Auditor warrants that no person or selling agency has been employed or retained to solicit or secure the contract to be executed as a result of this Request for Proposal, upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, except bona fide established commercial or selling agencies maintained by the Auditor for the purpose of securing business.

For breach or violation of this warranty, the Agency shall have the right to terminate any contract that may be entered into with the Auditor and, in its sole discretion, to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage or contingent fee.

3.20 Non-Discrimination Clause

Auditor shall take action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, gender, transgender status, marital status, political affiliation, ancestry, age, national origin, medical condition or physical disability. Such action shall include, but may not be limited to the following: employment, upgrading, demotion or transfer recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training including apprenticeship.

Auditor shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the State of California setting forth the provision of the Fair Employment Practices Act.

3.21 Compliance with Civil Rights

Auditor hereby assures that he will comply with Subchapter VI of the Civil Rights Act of 1964, USC Sections 2000 e through 2000 e (17) to the end that no person shall, on the grounds of race, creed, color, sex, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under the Agreement or under any project, program or activity supported by the Agreement.

3.22 Performance Bond

If required by the Agency, Auditor shall deliver a performance bond issued by a surety and/or sureties licensed to do business in the State of California and acceptable to the Agency.

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3.23 Compensation

The Agency shall pay Auditor an amount not to exceed the maximum cost proposed by Auditor for each audit year this Agreement is in effect, plus actual and necessary out-of-pocket expenses.

Payments shall be made upon receipt of itemized invoices delivered monthly, or less frequently at the option of the Auditor. Payments shall be made at the hourly rates specified on the Cost Proposal Response Form of this Request for Proposal for each of the three (3) years. The Agency shall retain ten percent (10%) of each payment. Such reduction to be held by the Agency until all contract deliverables have been delivered by the Auditor, accepted by the Agency and approved by the State Controller’s Office each year the Agreement is in effect.

3.24 Supplemental Compensation and Additional Services

If during the course of the examination, the Auditor finds any unusual item or circumstance that, in their view, warrants an immediate detailed investigation, the same will be reported in writing to the Controller. If in the opinion of the Controller a more detailed verification is required than that which would be required under ordinary circumstances, written authorization will be provided to the Auditor.

Additional services are not within the scope of services to be performed pursuant to this

Agreement. If additional services are required and authorized, the Agreement will be amended to reflect the additional services and supplemental compensation shall be at the hourly rates applicable for the then current audit year. If the additional work is not authorized by the Controller, the audit report may be qualified according to the circumstances involved.

The Agency may also request the Auditor to perform work or render services in addition to those that are usual and customary in making an examination of books and accounts of the Agency. If such work is performed by the Auditor, the Agreement will be amended to reflect the scope of the work to be done. Compensation for such work shall be at the hourly rates applicable to the then current audit year.

3.25 Auditor’s Obligation to Perform Work in Accordance with Standards

If the work performed by Auditor is not in accordance with the standards as specified herein, or if the reports submitted by Auditor are not complete, or if the reports are rejected by the State Controller’s Office as incomplete, then the Auditor shall be obligated to do whatever is required to correct the reports to meet the requirements as specified in the standards, or as specified by the State Controller’s Office, at no cost to the Agency.

3.26 Insurance and Indemnification

Auditor shall take out and maintain, during the term of the Agreement, such general liability and property damage insurance as is required to protect the Auditor and the Agency from any and all actions, suits or other proceedings which may arise as a result of the work performed by the Auditor pursuant to the Agreement with the Agency. The policy so secured and maintained shall be for not less than $1,000,000.

Professional liability insurance protecting from claims arising out of the performance of professional services caused by a negligent act, error, or omission of the Auditor, or act for which the Auditor is legally liable, shall be provided in an amount of not less than $1,000,000. The professional liability insurance shall remain in full force and effect for a period of two years after the termination of this contract.

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The Auditor shall furnish to the Agency certificates of such insurance annually on the anniversary of the contract, signed by an authorized representative of the insurance carrier, which shall name the Agency as additional insured’s and shall be endorsed as follows: “The insurance afforded by this policy shall not be suspended, cancelled, reduced in coverage or limits or non-renewed except after thirty days written notice by certified mail, proof of delivery requested, has been given to the Agency”.

Auditor shall hold harmless and indemnify the Agency and all officers, agents and employees of the Agency, from and against any such actions, suits or other proceedings.

3.27 Independent Contractor

While performing services pursuant to this Agreement, Auditor is an Independent Contractor and not an officer, agent or employee of the Agency.

3.28 Assignment of Contract

The Auditor shall not assign or transfer, by operation of law or otherwise, any or all of their rights, burdens, duties or obligations without the prior written consent of the Agency.

4. STATEMENT OF WORK

4.1 Scope of the Audit Services

Auditors shall submit a proposal to provide the Agency with audit services for a period of three

(3) years. Said audit services shall include all Agency funds.

4.2 Technical Standards

Examination of financial records and statements and audits for compliance shall be made in accordance with the provision of Section 41020 of the Education Code of the State of California and shall be conducted pursuant to the standards and procedures as specified in applicable Education Code and California Code of Regulations sections in effect for each audit year.

All audit services shall be performed in accordance with generally accepted auditing standards as specified in the Statements on Auditing Standards, published by the American Institute of Certified Public Accountants, or other appropriate standards that may supersede those previously listed.

4.3 Work to Be Done

4.3.1 Conduct a comprehensive financial audit of all Agency funds.

4.3.2 Prepare and submit one (1) electronic copy of a preliminary audit report prior to conducting exit conferences for each of the audits.

4.3.3 Conduct an exit conference with appropriate personnel of the Agency.

4.3.4 Attend such meetings with staff of the Agency as may be required during the course of the audit.

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4.3.5 Prepare written reports relative to any lack of documentation at the conclusion of field audits and prior to exit conferences.

4.4 Staffing

The Auditor shall assign professional staff as appropriate to the conduct of the audits. A manager shall be assigned to coordinate the activities of all Auditor staff and shall be the liaison between the Auditor and the Agency. Supervising auditors shall be Certified Public Accountants, currently licensed in the State of California and shall have at least two (2) years prior experience in auditing Agency financial records. The Auditor is responsible for assignment of Auditor personnel.

4.5 Audit Reports

Each report must include an opinion relative to the financial and/or compliance portions of the audit. Five (5) copies and one electronic copy of each audit report shall be addressed to the attention of Salida Area Public Facilities Financing Agency Governing Board. The reports shall be delivered to the Controller, by no later than seven days prior to the December Board meeting of each year.

4.6 Statements and Reports

All financial statements incorporated into each audit report shall be made pursuant to applicable guidelines as specified in subsection 4.2 of this Statement of Work.

Reports on the audit of financial statements must state the scope of the audit and that the audit was performed in accordance with generally accepted auditing standards and must include an opinion as to whether the statements conform to generally accepted accounting principles.

Reports of compliance must include a statement that the audit was conducted in accordance with applicable auditing standards. The audit report must state whether the audit disclosed instances of significant noncompliance with laws and regulations. Findings of noncompliance or ineligible expenditures must be presented in enough detail for management of the Agency to be able to understand the findings and implement corrective action.

4.7 Statement of Findings

The audit shall include a statement of findings and recommendations affecting the financial statements, internal control, accounting, accounting systems, legality of actions, other instances of noncompliance with laws and regulations, and any other material information.

Prior to the submission of the final draft of the audit report, the Auditor shall meet with appropriate management and staff of the Agency to discuss and clarify potential findings.

4.8 Working Papers

Working papers shall be retained by the Auditor for a period of three (3) years, unless otherwise specified by the Agency. Such working papers shall be available for review and audit by the Agency, representatives of the Federal and/or State governments and other individuals designated by the Agency.

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4.9 Resources to be provided by the Agency

4.9.1 Prior Year’s Records - Copies of prior year’s financial statements, budgets and copies of the prior year’s audit reports are available and shall be provided to the Auditor. The prior year audits were performed by Hawks & Associates CPAs, Inc. Copies of these reports are available in the office of the Controller (209) 574-8497.

4.9.2 Staff Assistance - The Agency shall assign appropriate staff to assist the Auditor by providing required information and explanations. Staff will be assigned as needed to assist the Auditor in fieldwork and to provide information which is pertinent to the work of the Auditor.

4.9.3 Working Space – The Agency shall provide Auditor with working space for a maximum of three (3) persons. Requests for space shall be directed to the attention of the Controller four (4) weeks prior to the time the space will be required.

5. PROPOSAL RESPONSE REQUIREMENTS

5.1 General

All proposals shall be submitted in the format as specified. Provide a complete response to each request for information. Responses to this Section of the RFP will be used by the Agency to determine the successful Auditor.

5.2 Title Page

Indicate the Request for Proposal Title being provided, the name of the firm, local address, the name of the firm’s contact person for the purpose of this RFP, the telephone number of the contact person and the date.

5.3 Table of Contents

Include a clear identification of the material included in the firm’s response by section and by page number.

5.4 Letter of Transmittal

Summarize understanding of the work to be done. Indicate the names of the persons who will be authorized to make representations on the part of the firm, their titles, addresses and telephone numbers. The person and/or persons authorized to execute the contract on the part of the firm shall sign the transmittal letter.

5.5 Profile of Auditor

5.5.1 State whether the firm is local, regional, national, or international.

5.5.2 State the location of the office from which the work will be done if the firm is awarded the contract, the number of partners, managers, senior auditors, supervisors, and other professional staff employed at this office.

5.5.3 Describe the range of activities performed by the office from which the work will be done (i.e., auditing, accounting, tax service, management service).

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5.6 Auditor’s Staffing and Qualifications

5.6.1 Indicate the name of the person who will manage the audit services as specified in this

RFP. Provide a brief resume of the manager’s background, training, and experience.

Specifically discuss the manager’s experience in managing special district audits of the size and scope as specified herein.

5.6.2 Indicate the names of supervising auditors who will be assigned to the audit of the

Agency. Provide a brief resume of the supervisors’ background, training, and experience in supervising audits of the size and scope of the audits as specified herein.

5.7 References

Provide a list of clients for whom your firm has provided related auditing services in the past two

(2) years. Indicate the scope of the audits performed for each of the reference clients. Include the name of the client, address, telephone and the name of each client’s manager. Also, include the names of individuals serving for the Auditor and their roles.

5.8 Auditor’s Approach to the Audits

Prepare a work plan to accomplish the auditing services as specified in this RFP. The work plan shall include time estimates for each significant segment of the work; the number of staff to be assigned, including supervisors where appropriate; the level of each of the staff members to be assigned; and any specialists who will be assigned.

5.9 Costs of the Services - All Agency Funds

State the maximum annual cost for the audit of all funds of the Agency for the first-year services to be provided and each of the two (2) years thereafter. Costs as specified in this Section shall be based upon the scope of the work as specified herein. It is understood that if the scope of the work is increased and/or decreased the maximum costs as proposed will be adjusted upwards and/or downwards as appropriate. The supporting data for the maximum costs of the audit services shall include the hours each of the staff will be assigned, and the hourly rate applicable to each level of staff assigned.

5.10 Additional Information

The preceding sections shall contain only the information requested. If Auditor desires to present additional information, such additional information shall be presented in this Section of the RFP.

If there is no additional information to present, indicate, “There is no additional information to present.”

5.11 Assurances

Auditor certifies that Auditor is a properly licensed, certified public accountant on or before

December 31, 2021.

Auditor certifies that Auditor meets the independence standards of the most recent edition of the

GAO Government Auditing Standards.

Auditor understands that the primary purpose of the audit as specified herein is to express an opinion on the financial statements that such an audit is subject to the inherent risk that errors or fraud may not be detected. If conditions are discovered which lead to the belief that material

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 15 errors or fraud may exist, or if any other circumstances are encountered that require extended services, the Auditor will promptly advise the Agency. No extended services will be performed unless they are authorized by the Agency and the agreement covering the work to be done has been amended to reflect such extended services.

Auditor shall certify that in accordance with auditing standards and other applicable guidelines and regulations, the Auditor will select the necessary procedures to test compliance and to disclose noncompliance with specified laws, regulations, and contracts.

6. ANALYSIS AND EVALUATION OF PROPOSALS

6.1 General

This Section of the RFP describes the general procedures that will be utilized by the Agency during the evaluation and selection process. It is the intention of the Agency to select an Auditor who is deemed to best satisfy the requirements of this RFP, taking into consideration all aspects of the RFP response, including quality, and the cost of the services to be provided.

6.2 Elements of Evaluation of Proposals

6.2.1 Technical Factors

6.2.1.1 Responsiveness of the proposal in clearly stating an understanding of the work to be performed.

Factors to be considered:

• Appropriateness and adequacy of proposed procedures

• Necessity of procedure

• Reasonableness of time estimates

• Appropriateness of assigned staff levels

• Timelines of expected completion

6.2.1.2 Technical experience of the firm

6.2.1.3 Qualifications of Staff, particularly prior special district audit experience

6.2.1.4 Size and structure of the firm

6.2.2 Cost Factors

6.2.2.1 Cost of work to be performed

Cost will be a significant factor when all other evaluation criteria are relatively equal.

6.3 Proposal Evaluation Method

The evaluation formula and the values assigned to the criteria that will be used by the Evaluation

Committee will be weighted. Total scores will be determined by adding the points received for technical qualifications (maximum 70 points) to the points received for the cost of the audit (maximum 30 points).

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6.4 Mandatory Criteria

A proposal will not be considered unless the Audit firm submitting the proposal meets the following criteria:

6.4.1 The Audit firm must be a certified public accountant, properly licensed before

December 31, 2021.

6.4.2 The Audit firm must meet the independence standards of the most recent edition of the GAO Governmental Auditing Standards.

6.4.3 The Audit firm must have a record of quality work.

6.5 Oral Presentations

The apparent successful Auditor and/or Auditors may be requested to present a formal presentation to the Governing Board. The purpose of the presentation is to introduce the Auditor’s professional staff to the Governing Board and have these staff members briefly discuss their technical and management plans for the audit services.

6.6 Auditor Selection

Following the Agency’s final selection of the apparent successful Auditor, the Agency will enter into negotiations regarding the provisions of the Agreement. If a satisfactory contract cannot be negotiated, the Agency may begin contract negotiations with the second ranking Auditor and terminate negotiations with the originally selected Auditor.

The decision of the Agency is final and is not subject to review. The Agency may reject all proposals submitted and negotiate with a single Auditor when it is determined to be in the best interest of the Agency to do so.

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Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 17

SALIDA AREA PUBLIC FACILITIES FINANCING AGENCY

AGREEMENT

INDEPENDENT AUDIT SERVICES

(SAMPLE ONLY – DO NOT COMPLETE AND RETURN)

Salida Area Public Facilities Financing Agency, hereinafter referred to as “the Agency”, and hereinafter referred to as “Auditor”, mutually agree as follows:

1. PERIOD OF ASSIGNMENT

The Agency requested proposals from qualified independent audit firms for the conduct of financial and compliance audits for each of the fiscal years ending June 30, commencing with the fiscal year ending June 30, 2026, and terminating with the fiscal year ending June 30, 2028. Auditor submitted a proposal in response to said request and the Agency has accepted said proposal. The proposal entitled “Proposal of Audit Services to Salida Area Public Facilities Financing Agency” is attached hereto and incorporated by reference.

The terms and conditions of the RFP, and all addenda thereto, are incorporated herein by reference. In the event of a discrepancy between the RFP, the Contractor’s response to the request and this Agreement, the terms and conditions of this Agreement shall take precedence.

2. SCOPE OF WORK

The Auditor shall perform services as required to complete the examination of financial statements and render reports thereon during the period of this Agreement. Such services include, but may not be limited to, the following:

a. Prepare and submit to the Controller the proposed audit plan which shall include proposed plans for the conduct of compliance and substantive tests.

Meet with the Controller to review and discuss the proposed audit plan.

b. Conduct a comprehensive financial audit of all Agency funds.

c. Conduct a comprehensive financial and compliance audit of the various categorically funded programs of the Agency in accordance with applicable auditing standards.

d. Prepare and submit one (1) electronic copy of a preliminary audit report prior to conducting exit conferences for each of the audits.

e. Conduct an exit conference with appropriate personnel of the Agency.

f. Attend such meetings with staff of the Agency as may be required during the course of the audits.

g. Prepare written reports relative to any lack of documentation at the conclusion of field audits and prior to exit conference.

h. Provide Agency officers with information and resource materials on governmental accounting and auditing. Auditor shall provide training to staff and materials at no cost to the Agency.

i. After submission and acceptance of the audit by the Controller, the Auditor shall make a presentation to the Agency Governing Board at its regularly scheduled December board meeting.

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 18

3. STAFFING

The Auditor shall assign professional staff as appropriate to the conduct of the audits. A manager shall be assigned to coordinate the activities of all Auditor staff and shall be the liaison between the Auditor and the Agency. Audit Manager shall be accessible to the Agency at all times. Supervising auditors shall be CPAs, currently licensed in the State of California. The Auditor is responsible for assignment of Auditor personnel and shall keep a current Project Organization Chart that indicates the specific personnel assigned to each aspect of the audits. This document shall be filed with the Agency’s Controller. In each subsequent year, at least one audit staff member shall have participated in the previous fiscal year’s audit.

4. AUDIT REPORT

Each report must include an opinion relative to the financial and/or compliance portions of the audit.

Five (5) copies and one (1) electronic copy of each report shall be addressed to the attention of the Salida Area Public Facilities Financing Agency Governing Board. The reports shall be delivered to the Controller, by no later than seven days prior to the December Board meeting each year.

5. STATEMENTS AND REPORTS

Reports on the audit of financial statements shall state the scope of the audit and that the audit was performed in accordance with generally accepted auditing standards and shall include an opinion as to whether the statements conform to generally accepted accounting principles.

Reports of compliance shall include a statement that the audit was conducted in accordance with applicable auditing standards. The audit report shall state whether the audit disclosed instances of significant noncompliance with laws and regulations. Findings of noncompliance or ineligible expenditures shall be presented in enough detail for management of the Agency and/or the delegate agencies to be able to understand the findings and implement corrective action.

6. WORKING PAPERS

Working papers are to be retained by the Auditor for a period of three (3) years, unless otherwise specified by the Agency. Such working papers shall be available for review and audit by the Agency, representatives of the Federal and/or State governments and other individuals designated by the Agency.

7. TECHNICAL STANDARDS

Examination of financial records, statements and audits for compliance shall be made in accordance with the provision of Section 41020 of the Education Code of the State of California and shall be conducted pursuant to the standards and procedures as specified in applicable Education Code and California Code of Regulations sections in effect for each audit year.

All audit services shall be performed in accordance with generally accepted auditing standards as specified in the Statements on Auditing Standards, published by the American Institute of Certified Public Accountants, or other appropriate standards that may supersede those previously listed.

All laws, regulations, and/or documents referred to herein shall be interpreted as the most current laws, regulations, and/or documents relating to audits as specified herein and shall automatically be updated by auditors as required.

8. PERSONNEL CHANGES

Auditor recognizes that one factor of the evaluation and selection process was evaluation of

Auditor’s commitment to assign specified individuals to the project on a stated level of participation.

Therefore, Auditor shall make every effort to see that such individuals are assigned as specified during the entire term of the study.

Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 19

Should the Auditor modify personnel assignments for any reason so that specific individuals committed to the Audit Services are made available on any basis other than that contained in the proposal, the Agency may, in its sole discretion, terminate the Contract for cause. Further, the Agency’s acceptance of a modified personnel assignment in any one instance shall not be construed as an acceptance in any other instance or as a waiver of its right to terminate for cause.

10. COMPENSATION

The Agency shall pay Auditor an amount not to exceed the sum of:

(Amount in Words) for services performed in connection with the 2025-2026 audit. This amount includes actual and necessary out-of-pocket expenses.

Payment shall be made upon receipt of an itemized invoice delivered monthly or less frequently at the option of the Auditor. Separate invoices shall be submitted for each audit. The Agency will retain ten (10) percent of each payment, such reduction to be held by the Agency until the final audit report has been submitted and accepted by the Governing Board. All invoices shall be submitted to the attention of the Controller.

The following hourly rates shall be used in computing the total cost of the audit for the 2025-2026 school year:

Partner $ ______________

Manager $ ______________

In-Charge Accountant $ ______________

Staff Accountants $ ______________

For the 2025-2026 fiscal year and thereafter, the maximum fee payable to the Auditor and the hourly rates applicable to the maximum fee are as specified on Proposer’s Cost Proposal Response Form, attached hereto and made a part hereof.

11. SUPPLEMENTAL COMPENSATION FOR ADDITIONAL SERVICES

If, during the course of the examination, the Auditor finds any unusual item or circumstance that warrants an immediate detailed investigation, the same will be reported in writing to the Controller.

If, in the opinion of the Controller, a more detailed verification is required than would be sufficient under ordinary circumstances, written communication is to be provided to the Auditor by the Controller. Additional services are not within the scope of services to be performed pursuant to this Agreement. If additional services are required and authorized, the Agreement will be amended to reflect the additional services, and supplemental compensation shall be at the hourly rates applicable for the audit year. If the amendment is not authorized by the Controller, the audit report may be qualified according to the circumstances involved.

The Controller may also request the Auditor to perform work or render services in addition to usual and customary services in making an examination of books and accounts of the Agency. If such work is performed by the Auditor, this Agreement will be amended to reflect the scope of the work, and compensation shall be at the hourly rates applicable for the audit year.

12. HOLD HARMLESS AGREEMENT

The Auditor shall hold harmless and indemnify the Agency, the Board of Education, its officers, agents, and employees from every claim, demand or liability that may be made by reason of:

a. Any injury to person or property, including death, sustained by the Auditor or by any person, Salida Area Public Facilities Financing Agency RFP No. 26-4841 Independent Audit Services Page 20 firm, or corporation employed by the Auditor, directly or indirectly, upon or in connection with the services hereunder, however caused; and

b. Any injury to person or property, including death, sustained by any person, firm or corporation, caused by any error, omission, neglect or tortuous act of the Auditor, its officers, agents or employees, upon or in connection with the services hereunder, whether the injury or damage occurs upon or adjacent to the premises where services hereunder are performed; and

c. The Auditor, at his own expense, cost, and risk, shall defend any and all actions, suits or other proceedings that may be brought or instituted against the Agency, the Board, its officers or employees in any such action, suit or other proceedings resulting from activities described in paragraphs (a) and (b) above.

13. WORKERS’ COMPENSATION INSURANCE

In accordance with the provisions of Section 3700 of the Labor Code of the State of California, Auditor shall sign and file with the Agency the following certificate before performing the work under this contract:

“I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for worker’ compensation or to undertake self-insurance in accordance with the provision of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”

14. INDEPENDENT CONTRACTOR

While engaged in carrying out and complying with the terms and conditions of this Agreement, the

Auditor is an independent contractor, and not an officer, agent, or employee of the Agency.

15. AGENCY’S OBLIGATION

The Agency’s obligation is payable only and solely from funds appropriated for the purpose of this

Agreement.

16. NON-APPROPRIATION OF FUNDS

All funds for payments after June 30 of the current fiscal year are subject to appropriations for this purpose in the Final Adopted Budget. Payments during subsequent fiscal periods are dependent upon the same action.