RFP_26-4842_ATTACHMENT_B.pdf

This is an attachment to a Request for Proposal issued by the Schools Infrastructure Financing Agency (SIFA), a joint powers agency under Modesto City Schools in California, for independent audit services. The RFP seeks qualified audit firms to provide comprehensive financial and compliance audit services for a three-year contract period covering fiscal years ending June 30, 2026, through June 30, 2028. Proposing firms must conduct full financial audits of all Agency funds and prepare preliminary and final audit reports in accordance with generally accepted auditing standards and California Education Code Section 41020. Key deliverables include five hard copies and one electronic copy of audit reports, which must be delivered seven days prior to the December board meeting each year, along with exit conferences and written reports on documentation deficiencies. The proposal deadline is 12:00 p.m. PST on March 5, 2026, with a questions deadline of February 4, 2026, and initial screening planned for the week of March 9, 2026.

Proposing audit firms must employ California-licensed CPAs with at least two years of prior agency financial record auditing experience and meet independence standards of the most recent GAO Governmental Auditing Standards. Insurance requirements include general liability and property damage coverage of at least $1,000,000 and professional liability insurance of at least $1,000,000, with professional liability coverage remaining in force for two years following contract termination. Proposers must submit hourly rates for partners, managers, in-charge accountants, and staff accountants for each of the three contract years. The evaluation methodology allocates a maximum of 70 points for technical qualifications and 30 points for cost of services. Hawks & Associates CPAs, Inc. is the current incumbent auditor. The Agency manages significant financial resources with total assets of $14,007,432 as of June 30, 2025. Compensation is not to exceed the maximum cost proposed by the selected auditor for each audit year, with the Agency retaining ten percent of each payment until all contract deliverables are delivered, accepted, and approved by the State Controller's Office. Attachment B addresses the contractor's certificate regarding workers' compensation compliance under California Labor Code Section 3700, which must be signed and filed with the awarding body prior to performing any work under the contract.