RFP - Audit Services - FIN 25-01.pdf

REQUEST FOR PROPOSALS

FOR

AUDIT SERVICES

FIN 25-01

DATE ISSUED: June 25 2025

PROPOSALS DUE: July 29, 2025 2:00pm Pacific Standard Time

LOCATION: Finance Department The City of West Linn 22500 Salamo Road West Linn, Oregon 97068 Phone: 503-742-6028

Fax: 503-650-6041

TABLE OF CONTENTS

PART 1: REQUEST FOR PROPOSALS

PART 2: INSTRUCTIONS AND CONDITIONS

PART 3: PROPOSAL CONTENTS

PART 4: SCOPE OF WORK AND CONDITIONS

PART 5: EVALUATION AND SELECTION CRITERIA

ATTACHMENT A: SAMPLE CONTRACT/AGREEMENT FOR SERVICES

ATTACHMENT B: ACCEPTANCE OF TERMS SIGNATURE PAGE

ATTACHMENT C: NOT TO EXCEED PRICE FOR PROPOSED SERVICES SCHEDULE

ANTICIPATED SCHEDULE

RFP ADVERTISED June 25, 2025

RFP SUBMITTALS DUE July 29, 2025

RFP QUESTIONS/REQUESTS July 23 , 2025

FOR CLARIFICATIONS DUE

TENTATIVE CONTRACT/AGREEMENT AWARD September 18, 2025

END OF CONTRACT/AGREEMENT 7 calendar days after Notice of Intent to Award

AWARD PROTEST PERIOD

CONTRACT/AGREEMENT SIGNED October 13, 2025

The City reserves the right to make adjustments to the above noted schedule as necessary.

PART 1: REQUEST FOR PROPOSALS

Notice is hereby given that the City of West Linn will receive sealed proposals until 2:00 p.m.

July 29, 2025 in the Office of Finance, 22500 Salamo Road, West Linn, Oregon 97068 for the following:

CITY OF WEST LINN, OREGON

Proposals will be publicly opened after 2:00 p.m. Proposals received after 2:00 on the above-mentioned date shall be returned unopened.

The proposed work consists generally of the following: Annual Comprehensive Financial Audit Services for FY 2026-FY 2030

Proposals shall be submitted on the prescribed form and in the manner as indicated in the RFP documents.

Use of recycled material is encouraged and the City reserves the right to use recycled material provided the provisions of ORS 279A.125 are met.

The City of West Linn reserves the right to reject any or all proposals, to postpone the award for 60 days, to delete certain items from the Proposal to make a partial contract/agreement award and to award the contract/agreement to the most qualified, responsive, responsible proposer. Any proposal not in compliance with prescribed public procurement procedures and requirements may be rejected and may reject for good cause any or all proposals upon determination of the City it is in the public interest to do

so. Proposers are required to certify non-discrimination in employment practices and identify resident status as defined in ORS 279A.120. All proposers are required to comply with the provisions of Oregon Revised Statutes and Local Contract Review Board Policy.

Project advertisement and deadline dates may be viewed through the City of West Linn’s website at https://westlinnoregon.gov/publicworks/west-linn-bids-and-rfp-solicitations. Project and RFP details are available online at OregonBuys https://oregonbuys.gov/bso/. If you wish to receive any future addenda for this project, you must be registered within the OregonBuys bid management website. Questions must also be submitted through OregonBuys.

Proposals must be received electronically via email to the Finance Director, Lauren Breithaupt, at lbreithaupt@westlinnoregon.gov on or before 2:00 p.m. on July 29, 2025. No late responses, incomplete responses, hardcopy, or faxed materials will be accepted.

The City’s contracting processes follow the City of West Linn Local Contract Review Board Rules, effective as of January 1, 2024, and as adopted under Resolution 2023 – 09. The rules can be found at https://westlinnoregon.gov/finance/purchasing.

PART 2: INSTRUCTIONS AND CONDITIONS

2.1 GENERAL:

Proposers must study carefully and conform to these "Instructions and Conditions" so that their proposals will be regular, complete and acceptable. A Pre-Proposal Conference will not be held for this

RFP.

2.2 PROPOSALS:

All proposals shall be legibly written in ink or typed and comply in all regards with the requirements of this solicitation. Proposals shall be submitted on the prescribed form and in said manner as indicated in these solicitation documents. Use of recycled material is encouraged and the City reserves the right to use recycled material provided the provisions of ORS 279A.125 are met.

All proposals must be signed in ink in the blank spaces provided herein (Attachment B). If a firm or partnership makes the proposal, the name and address of the firm or partnership shall be shown, together with the names and addresses of the members. If a corporation makes the proposal, an official who is authorized to bind the contractor must sign it in the name of such corporation.

The City reserves the right to obtain additional information or clarification of any proposal.

2.3 REJECTION OF PROPOSALS; CANCELLATION OF RFP:

The West Linn Review Committee reserves the right to reject any and all proposals not in compliance with all prescribed public contracting procedures and requirements, to reject for good cause any and all proposals upon the finding that it is in the public interest to do so, and to waive any and all minor informalities. Furthermore, the City reserves the right to cancel the RFP when the cancellation is in the best interest of the City as determined by the City.

2.4 DELIVERY OF PROPOSALS:

All proposals shall be submitted electronically by PDF via email to Lauren Breithaupt, Finance

Director at lbreithaupt@westlinnoregon.gov before the due date set in this RFP. Include the project name in the email subject title. Applicants should request an email response stating their application was received. No late responses, hardcopy, or faxed materials will be accepted.

File size must be kept under 30MB. Zip files will be rejected by the City’s email filters.

2.5 RECEIPT AND OPENING OF PROPOSALS:

Proposals shall be submitted prior to the time fixed in the RFP. Proposals received after the time so designated will be considered late proposals and will be returned unopened. Delays due to mail and/or delivery handling, including, but not limited to, delays within the City’s internal distribution systems, do not excuse the proposer’s responsibility for submitting the proposal to the correct location by the proposal due date. Facsimile proposals are NOT acceptable. It will be the responsibility of proposers to check OregonBuys for clarifications, addenda, or amendments. No submissions will be considered that are not responsive to any issued amendments.

No responsibility will be attached to any official of the City for the premature opening of, or the failure to open, a proposal not properly addressed and identified.

At the time fixed for the opening, the proposals shall be opened so as to avoid disclosure of contents to competing proposals during the process of negotiation. A register of proposals shall be prepared and shall be open for public inspection after contract/agreement award. Once the closing time and date arrive, the names of the proposers submitting proposals are read publicly. No other information will be disclosed.

2.6 WITHDRAWAL OF PROPOSALS:

Proposals may be withdrawn by written request received from the proposers prior to the time fixed for opening. Negligence on the part of the proposer in preparing the proposal confers no right for the withdrawal of the proposal after it has been opened. The proposal will be irrevocable until such time as the City:

1. Specifically rejects the proposal, or;

2. Awards a contract/agreement and said contract/agreement is properly executed.

Proposals must be valid for at least ninety (90) days.

2.7 MODIFICATIONS:

Any proposer may modify his/her proposal by submitting a new proposal at any time prior to the scheduled closing time for receipt of proposals. The new proposal must state it supersedes and replaces the previous proposal.

2.8 ACCEPTANCE OR REJECTION OF PROPOSALS:

In the award of the contract/agreement, the City will consider the element of time, will accept the proposal or proposals which in their estimation will best serve the interests of The City of West Linn, and reserves the right to award the contract/agreement to the most qualified, responsive, responsible proposer. The City reserves the right to accept or reject any or all proposals. Without limiting the generality of the foregoing, any proposal, which is incomplete, obscure or irregular, may be rejected. Only one proposal will be accepted from any one firm or association. Any evidence of collusion between proposers may constitute a cause for rejection of any proposals so affected.

2.9 ADDENDA AND INTERPRETATIONS; REQUESTS FOR CLARIFICATIONS; RFP PROTESTS:

No oral interpretations shall be made to any proposer as to the meaning of any of the RFP documents or be effective to modify any of the provisions of the RFP documents.

A proposer who believes any details in the scope of work or terms detailed in the RFP or sample contract/agreement are unnecessarily restrictive or limit competition may submit a protest in writing, to Lauren Breithaupt, Finance Director, 22500 Salamo Road, West Linn, Oregon 97068. A protest may be submitted via email to lbreithaupt@westlinnoregon.gov. Any such protest shall include the reasons for the protest and shall detail any proposed changes to the scope of work or RFP or sample contract/agreement terms. The City shall respond to any protest and, if necessary, shall issue any appropriate revisions, substitutions, or clarification via addenda to all interested proposers. To be considered, protests must be received at least ten (10) days before the date proposals are due. The City shall not consider any solicitation protest after the established protest deadline. If a protest is received in accordance with this section, the proposal opening date may be extended if necessary to allow consideration of the protest and issuance of any necessary addenda to the proposal documents.

Failure of any proposer to receive any such addenda shall not relieve such proposer from any obligation under the proposal as submitted. All addenda so issued shall become as much a part of the RFP documents as if bound herein.

2.10 NONDISCRIMINATION:

The successful proposer agrees that, in performing the work called for by this RFP and in securing and supplying materials, proposer will not discriminate against any person on the basis of race, color, religious creed, political ideas, sex, age, marital status, national origin or ancestry, or physical or mental disability unless the reasonable demands of employment are such that they cannot be met by a person with a particular physical or mental disability.

2.11 FAILURE TO SUBMIT OFFER:

If no offer is to be submitted, do not return the RFP. Failure of the recipient to offer, or to notify the issuing office that future solicitations are desired, will not result in removal of the name of such recipient from the mailing list for the type of supplies or services covered by the solicitation.

2.12 PREPARATION OF OFFERS:

Proposers are expected to examine the scope of work and all instructions.

Each proposer shall furnish the information required by the solicitation. Proposers shall sign the solicitation and print or type their name on other submitted exhibits and each continuation sheet thereof on which an entry is made. The person signing the offer must initial erasures or other changes. Proposals signed by an agent are to be accompanied by evidence of his/her authority unless such evidence has been previously furnished.

Proposers shall state a definite time for delivery of supplies or for performance of services.

Time, if stated as a number of days, will include Saturdays, Sundays and holidays.

2.13 EMPLOYEES NOT TO BENEFIT:

No employee or elected official of The City of West Linn shall be admitted to any share or part of this contract/agreement or to any benefit that may arise there from; but this provision shall not be construed to extend to this contract/agreement if made with a corporation for its general benefit. No contractor shall provide or offer to provide any appreciable pecuniary or material benefit to any officer or employee of City in violation of ORS Chapter 244.

2.14 CITY FURNISHED PROPERTY:

No material, labor or facilities will be furnished by the City unless otherwise provided for in the Request for Proposals.

2.15 COSTS:

All costs incurred by the firm in preparation of their proposal to this RFP, including presentations to the City and/or for participation in an interview, shall be borne solely by the submitting proposer; the City shall not be liable for any of these costs.

2.16 NON-COLLUSION:

By submitting a proposal, the proposer certifies that the proposal has been arrived at independently and has been submitted without any collusion designed to limit competition.

2.17 PROTEST OF AWARD:

Any actual proposer who is adversely affected or aggrieved by the City’s award of the contract/agreement to another proposer on the same solicitation shall have seven (7) calendar days from the notice of intent to award to submit to Lauren Breithaupt, Finance Director a written protest of the award. The written protest shall specify the grounds upon which the protest is based. In order to be an adversely affected or aggrieved proposer with a right to submit a written protest, a proposer must be next in line for award, i.e. the protester must claim that all higher rated proposers are ineligible for award because they are non-responsive or non-responsible. The City will not entertain protests submitted after the time period established in this rule.

The Notice of Intent to Award by The City of West Linn shall constitute a final decision of the City to award the contract/agreement if no written protest of the award is filed with Lauren Breithaupt, Finance Director within seven (7) calendar days from the notice of intent to award. If a protest is timely filed, the award is a final decision of the City only upon issuance of a written decision denying the protest and affirming the award.

2.18. BUSINESS LICENSE/FEDERAL TAX ID REQUIRED:

A City business license is required and the successful firm shall also complete a W-9 form at time of contract/agreement execution.

2.19. NO GUARANTEE OF CONTRACT/AGREEMENT AWARD:

Selection of a Proposer under this RFP is not a guarantee of a contract/agreement award, nor is the award of a contract/agreement for any portion of the work a guarantee of award of a contract/agreement for any subsequent work. All work is subject to budgetary and funding constraints of the City of West Linn. All legal rights and obligations between the successful proposer, if any, and the City will come into existence only when an agreement is fully executed by the parties, and the legal rights and obligations of each party shall at that time be only those rights and obligations which are set forth in the agreement and any other documents specifically referred to in that agreement and executed by the parties.

2.20. CONTRACT/AGREEMENT NEGOTIATION:

Response to this RFP indicates agreement by the proposer with all stipulations and requirements of this RFP, including the Sample Contract/Agreement for Services, which is subject to subsequent contract/agreement negotiation. The contract/agreement shall take the form set forth in Attachment A. The City is willing to negotiate ONLY the Statement of Work and pricing.

The City is not required to make any changes to the standard form of contract/agreement and many provisions cannot be changed. Proposer is cautioned that the City of West Linn believes modifications to the standard provisions constitute increased risk and increased cost to the City.

2.21. CONFIDENTIALITY:

All information submitted by a proposer shall become and remain the property of the City and is considered public information and subject to disclosure pursuant to the Oregon Public Records Law, except such portions of the proposal, as identified by the proposer, which are exempt from disclosure consistent with Oregon law. If a proposal contains any information that the proposer believes is exempt from disclosure under the various grounds specified in the Oregon Public Records Law, the proposer must clearly designate each such portion of its proposal as exempt at the time of proposal submission, along with a justification and citation to the legal authority relied upon. Identifying the proposal, in whole, as exempt from disclosure is not acceptable. Failure to identify specific portions of the proposal as exempt shall be deemed a waiver of any future claim of that information as exempt.

The City will make available to any person requesting information, through the City processes for disclosure of public records, any and all information submitted as a result of this RFP not exempted from disclosure without obtaining permission from any proposer to do so. City may also, in its sole discretion, elect to publish all such information at any time, regardless of whether or not a public records request has been received. However, if a public records request is made for material marked by the proposer as exempt, the City will attempt to notify the impacted proposer prior to any release of the material. Application of the Oregon Public Records Law by the City will determine whether any information is actually exempt from disclosure. The City accepts no liability for the release of any information submitted.

PART 3: PROPOSAL CONTENTS

3.1 GENERAL:

The proposal should contain the required elements as stated in PART 3.2 DETAILED PROPOSAL CONTENTS and PART 4, SCOPE OF WORK AND CONDITIONS of this RFP.

The City reserves the right to solicit additional information or proposal clarification from the firms, or any one firm submitting proposals, should the City deem such information necessary.

Any proposer-supplied material that is to be considered confidential must be so marked.

The proposals shall be submitted electronically by PDF via email to Lauren Breithaupt, Finance Director, at lbreithaupt@westlinnoregon.gov before the due date set in this RFP. Include the project name in the email subject title. Applicants should request an email response stating their application was received. No late responses, hardcopy, or faxed materials will be accepted.

File size must be kept under 30MB. Zip files will be rejected by the City’s email filters.

3.2 DETAILED PROPOSAL CONTENTS:

The Proposal shall contain responses to the required criteria in the following format:

Section 1 Cover Letter and Signature Page

a. A one-page dated cover letter indicating the firm’s understanding of and interest in the project with signature shall be submitted containing the name, address, tax filing name and number of the corporation or business structure submitting the Proposal. Provide a statement that the firm submitting the proposal is properly licensed to perform such audits in the State of Oregon (including all of the assigned professional staff to the engagement). Please indicate if the firm is a resident vendor, as defined in ORS 279A.120. Also submit the name, address, telephone, email, and title of the person authorized to represent the firm.

b. Provide a signed copy of the “Acceptance of Terms Signature Page” (Attachment B)provided with this RFP.

Section 2 Table of Contents

a. A table of contents of the material included in the Proposal.

Section 3 General Firm Information

a. Provide a general description of the firm. Include a delineation of proposed services, company experience, and approach to the project. This section may include a flow chart, methodology, unique management strategies, etc. Provide an organizational chart showing key personnel and their work location(s).

b. Demonstrate specific capabilities for fulfilling the project requirements according to similar previous experience, including years of business, bonding capabilities, and any past bankruptcy filings.

c. Describe the audit firm’s experience and knowledge in performing audits in accordance with the provisions of the Single Audit Act, as amended by OMB Circular A-133. Attach two recent examples of your work in this area to your proposal.

d. Attach to the proposal one sample of your last municipal audit report issued in the State of Oregon that was similar and comparable in services to that of the City of West Linn.

e. Attach to the proposal two (2) samples of management letters that you have recently issued covering an audit of an Oregon municipality.

f. The report on the audit firm’s most recent external quality review, any findings discovered as part of that review and actions taken to correct those findings. The audit firm must also disclose information on the circumstances and status of any disciplinary action taken or pending against the audit firm during the past three (3) years with state regulatory bodies or professional organizations, as well as any pending or settled litigation within the past three (3) years.

g. Identify any contract/agreement or subcontract/agreement held by the firm that, in the last five years, has been terminated, declared in default, or subject to a claims process that resulted in litigation or arbitration.

h. Provide information on the types and amounts of insurance carried by the firm.

Section 4 Experience, Organization, and Qualifications of the Project Team

a. Provide the organizational structure of the teams who would be assigned to this project, including experience and relevance of key personnel that will be assigned to this project. Identify relevant education, professional certifications, years of experience and resumes (5 maximum resumes) of key personnel.

b. Identify a proposed project manager that would serve as the key point of contact for the City.

Describe the project manager’s experience with similar projects and their tenure with the firm.

c. Identify all key personnel who will be assigned to work on this project including names, CPA license numbers, and Oregon Municipal Audit Roster numbers. Include a brief summary of their background and experience in auditing similar cities as well as their roles and assigned responsibilities under the proposal.

d. Include names, addresses, phone numbers, and a statement of qualifications and experience of subcontractors that may be used to complete project tasks, if needed.

Section 5 Project Understanding and Example Projects

a. Describe the firm’s audit approach and methodology to be used to perform the audit services.

Discussion items may include the approach to: 1) determining laws and regulations subject to audit test work, 2) evaluating the City’s internal control structure, 3) selecting audit procedures, including sample size selection, use of specialized software and use of analytical procedures, and

4) identifying any anticipated problems.

b. Describe in narrative form, with tables or other figures as desired, the firm’s understanding of the type of work required for this project, the proposed approach, and technical plan for accomplishing the work listed herein. Discuss creation of products that are clear and easy to use and understand, provide examples of prior work with this in mind.

c. List five (5) of the firm’s current municipal auditing engagement clients in Oregon and three (3) non-current engagements served within the last three (3) years and respective contact information for reference purposes. Contact information should include the name of the public agency, name and title of contact person, telephone number, and email address.

d. Describe similar projects performed within the last 5 years which best characterize your firm’s capabilities and work quality. Include project size, location, schedule, quality of performance, and role of participation in project by key personnel. For each project include the name, address, email, and phone number of a person who can be contacted regarding your performance on the project. When submitting projects for which your team worked in an auxiliary capacity or in a joint venture or partnership, include the name of the lead firm.

e. Provide a schedule (calendar) indicating proposed timing of interim fieldwork, final fieldwork and firm deliverables to the City to ensure submission of the final ACFR to the GFOA by December 31st of each fiscal year. Any assumptions regarding turnaround time for City Staff, the Audit Committee and the City Council should be clearly noted.

f. Explain how you propose to use City personnel, if at all, to assist you during the audit and indicate the approximate time required of City personnel in this capacity.

Section 6 Additional Information and List of Exceptions

a. Please provide any other information you feel would help the Review Committee evaluate your firm for this project.

b. Describe any exceptions taken to any section in the RFP and state when such exception was made to the City via a protest or request for interpretation. Standard contract/agreement terms will not be negotiated.

Section 7 Fee

a. Provide expected hours required for the fiscal year ending June 30, 2026, audit on the “Not to Exceed Price for Proposed Services Schedule” in Attachment C . The City has not yet determined if a single audit will be required for the fiscal year ending June 30, 2026. For proposal purposes, assume that one is required and that there is a single major program.

b. Attach an additional schedule identifying expected hours required by your firm for the subsequent fiscal years ending June 30, 2027, through 2030.

c. Provide fee information on the “Not to Exceed Price for Proposed Services Schedule” in Attachment C for the completion of the projects described in Section 4.2 Scope of Work for the fiscal years ending June 30, 2026, through June 30, 2030. For proposal purposes, assume that a single audit is required and that there is a single major program.

d. Describe the firm’s policy on other charges including special requests and special reports or broadening the scope of the engagement.

e. List the audit firm’s billing rates for all other applicable professional services for City reference as the City may request additional services which are outside of personal services audit contract.

PART 4: SCOPE OF WORK AND CONDITIONS

4.1 INTRODUCTION:

The City of West Linn is requesting proposals for the audit of its Annual Comprehensive Financial Report (ACFR) from qualified certified public accounting firms. The first reporting period to be audited is July 1, 2025, through June 30, 2026, extending through the next four subsequent fiscal years. These audits are to be performed in accordance with the provisions contained in this RFP.

West Linn is a community where citizens, civic organizations, businesses and city government work together to ensure that the community retains its hometown identity, high quality of life and its natural beauty. The City incorporated in 1913, and today it serves a population of 27,360.

It is close to the region's business core, urban amenities, and the Portland International Airport with Portland approximately twenty miles to the north. At the same time, the City provides a small-town atmosphere and distinct neighborhoods that range from the Historic Willamette District with its pioneer-era dwellings, to the contemporary architecture of newer homes.

The City is a full-service municipality that operates under a council/manager form of government.

The elected City Council consists of the Mayor and four Councilors who act as the board of directors. The Council sets policies for city government, enacts ordinances and hires, directs and evaluates the City Manager. In turn, the City Manager is the City's chief executive officer, responsible for overall management and administration.

Municipal services are provided by City employees and headed by the City Manager. The City operates its own police department, a municipal court, water, sewer and surface water utilities, street operations, planning, engineering, fleet management, library and extensive year-round park and recreation programs.

The Tualatin Valley Fire and Rescue District provides fire and emergency services to the community. The City lies within Clackamas County, which is headed by a board of commissioners and based in neighboring Oregon City. The City is also part of Metro, the tri-county urban services district based in Portland.

The City of West Linn and the City of Oregon City each have a 50 percent ownership in South Fork Water Board (SFWB), which operates both City’s water supply and distribution system. SFWB is audited by another auditing firm, currently Aldrich CPAs and Advisors LLP, and would be subject to the group auditor rules.

A. General Information The City of West Linn desires the auditor to express an opinion on the fair presentation of the City’s basic financial statements as a whole, in conformity with generally accepted accounting principles (GAAP). The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board (GASB).

The City of West Linn has an Investment in Joint Venture with the City of Oregon City in South Fork Water Board. The investment is accounted for using the equity method. Currently, the City of West Linn and South Fork Water Board are not audited by the same firm.

The selected auditor shall submit for management’s review, a draft of all reports. The final reports are subject to review by the City’s Audit Committee. The selected auditor shall incorporate, as part of the basic proposal, meeting time with the finance staff and the Audit Committee for the purpose of discussing the audit, management letter, and conclusions.

B. Staffing/Operations The City Finance Department is responsible for many aspects of City operations including utility and service billing, accounts payable and disbursements, accounts receivable and cash receipts, payroll, investments, business licenses, municipal court, financial budgeting and financial reporting. Currently, the Finance Department consists of the Finance Director, Finance Manager, an Accountant, a Senior Accounting Clerk, a Management Analyst and an Accounting Clerk II.

C. Accounting Records The City’s financial software is Incode by Tyler Technology and was successfully implemented in May 2015. The financial system uses both online real-time entry and batch processing. The City’s in-house Information Technology personnel are responsible for system security, backups and installing vendor up-grades.

D. Government Finance Officers Association (GFOA) Awards The City of West Linn recently received the following awards from the Government Finance Officers Association (GFOA):

Budget: GFOA has awarded the Distinguished Budget Presentation Award to the City of West Linn for the budget document ending with the 2024-2025 Biennium Budget.

Audit: GFOA has awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of West Linn for the fiscal year that ended June 30, 2023.

Note: The City of West Linn anticipates that it will continue to submit its Annual Comprehensive Financial Report (ACFR) to the GFOA for the Certificate of Achievement for Excellence in Financial Reporting. The format of audit reports must allow the City to meet the requirements of that program. This also requires that the Auditor ensure that the audit report and financial statements are completed in time for this submission.

4.2 SCOPE OF WORK:

A. Basic Reports to be Issued Following the completion of the audit of the fiscal year’s ACFR, the auditor shall issue the following:

Independent Auditor’s Report for the City Report on the fair presentation of the financial statements in conformity with generally accepted accounting principles, based upon the audit of the basic financial statements of the City. The other supplementary information listed in the Table of Contents of the City’s ACFR, including combining schedules and additional budgetary comparison schedules, are not a required part of the basic financial statements. However, the auditor is to provide an “in-relation-to” report on the combining and individual fund financial statements and supporting schedules. The information presented shall be based on the auditing procedures applied during the audit of the basic financial statements.

SAS 114 and Management Letters

SAS 114 Letter: Report summarizing certain matters required by professional standards to be communicated to the City’s Audit Committee to assist in the Committee’s oversight responsibility for the City’s financial reporting process.

Management Letter: Findings, statements, observations, opinions, comments and recommendations related to:

o The City’s system of internal control based upon the auditors’ understanding of the control structure and assessment of control risk.

o The City’s compliance with applicable laws and regulations.

o The City’s accounting systems, functions, procedures and processes, especially with regard to cost effectiveness.

Audit Comments and Disclosures Required by State Regulation As required by the Minimum Standards for Audits of Oregon Municipal

Corporations (Oregon Administrative Rules 162-10-050 through 162-10-320).

B. Additional Reports to be Issued Dependent of Applicability Due to the fluctuation in receipt and expenditure of federal grant funds, the need for some reports is based upon whether the City meets the audit threshold (over $750,000 in expended grant funds) for performance of a Single Audit under OMB Circular A-133. Such reports are as follows:

Independent Auditor’s Report on Internal Control over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

Report identifying any deficiencies in internal control over financial reporting that are considered to be significant deficiencies including control deficiencies, significant deficiencies and material weaknesses as defined by Statements on Auditing Standards No. 115.

Independent Auditor’s Report on Compliance with Requirements Applicable to Each

Major Program and Internal Control over Compliance in Accordance with OMB Circular A-

Report on compliance with requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133, Compliance Supplement applicable to each of the City’s major federal programs.

Schedule of Findings and Questioned Costs

Report of findings and questioned costs related to the City’s financial statements as well as costs and compliance for federal award programs.

C. Supplemental Reports/Studies Reports on other audits or agreed-upon procedures may be agreed to in writing as stated in a supplemental audit agreement. Prior to beginning work, the scope of the study and associated costs shall be approved by the City.

D. Standards to be Followed To meet the requirements of this RFP, these audits are to be performed in accordance with all applicable standards including, but not limited to, applicable standards set forth for financial audits by the Governmental Accounting Standards Board (GASB), Government Auditing Standards (GAS), as promulgated by the Government Accountability Office (GAO) (if applicable), and requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133, Compliance Supplement (if applicable).

In addition, all aspects of the engagement shall be performed in accordance with the highest professional standards and comply with all applicable federal, state and local laws.

E. Special Considerations The firm receiving the contract for audit services shall procure and maintain, for the duration of the contract, insurance as required in the City’s standard services contract (see attached). The firm must provide the City with a Certificate of Insurance.

F. Working Paper Retention and Access to Working Papers All working papers and reports must be retained, at the auditor’s expense, for a minimum of seven

(7) years following completion of the audit, unless the firm is notified in writing by the City of West Linn of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees:

City of West Linn Parties designated by the federal or state governments or by the City of West Linn as part of an audit quality review process Oregon Secretary of State, Audits Division

In addition, the firm shall respond to the inquiries of successor auditors and allow successor auditors to review working papers related to matters of accounting significance and internal control.

G. Assistance to be Provided by the City

City Staff will prepare the final closing of the books. The City will provide the auditors with a Trial Balance by fund and all of the accounting detail necessary to perform the audit.

City Staff will prepare all workpapers requested by the Auditor prior to the start of interim and/or final fieldwork.

City Staff will generate the necessary confirmation letters based on templates provided by the auditors.

City Staff will prepare the draft ACFR and all related schedules and statements deliverable to the auditor during the first week of final audit fieldwork. City Staff will also incorporate any agreed upon edits to the draft ACFR to arrive at the final ACFR.

City staff will be available during the audit to assist in providing information, documentation and explanations as needed as well as access to the computer system to view records and print reports. All requests will first be directed to the Finance Director and Finance Manager of the City.

The City will provide the auditor with reasonable workspace including access to the internet, a telephone line, photocopier and fax machine.

The Finance Director and Finance Manager will provide the auditor with a signed Representation Letter at the conclusion of the audit.

4.3 SUBCONTRACTORS

The City of West Linn requires that each proposer shall state in its proposal the subcontractor(s) that proposer anticipates to employ to perform any work or labor, or any service, under the contract/agreement. This statement shall include the name of the subcontractor, address, telephone number, estimated percentage of work, statement of qualifications and experience and the nature of work to be performed. The Contractor shall be responsible for transmitting and enforcing all contract/agreement requirements to subcontractors. The proposal shall also state the method for selecting the subcontractor

4.4 PROJECT COSTS

The Finance Department has an approximate budgeted range of $60,000-70,000 for this project in its 2026-2027 fiscal year budget.

4.5 QUESTIONS ON SCOPE OF WORK INFORMATION AND EVALUATION:

Questions relating to the Scope of Work and Evaluation and Selection Criteria (PART 5) shall be addressed in writing to:

Lauren Breithaupt Finance Director City of West Linn

22500 Salamo Road West Linn, Oregon 97068 lbreithaupt@westlinnoregon.gov

PART 5: EVALUATION AND SELECTION CRITERIA

5.1 PROPOSAL REVIEW:

The Review Committee will evaluate the submitted Proposals. Each proposal will be evaluated on their adherence to the specifications outlined in Part 4 Scope of Work and Conditions and Part 5.2 Evaluation Criteria.

The Review Committee consists of the City’s Audit Committee, comprised of two City Councilors and one citizen CPA member, with assistance provided by the City’s Finance Director and Finance Manager.

The selection team will review the applications and select a minimum of three proposers that meet the minimum qualifications to interview, unless the City receives less than three qualified proposals. The selection team will then select the most qualified proposal based on the evaluation criteria listed below.

Although price is a consideration when engaging this proposer, the intent is to provide the City with a given level of specialized skill, knowledge, resources and qualifications, performance history; expertise, knowledge and the ability to exercise sound professional judgment are primary considerations in the selection process.

The City Council will review the recommendation on proposals from the Review Committee Staff and authorize the City Manager to enter into contract/agreement negotiations. During negotiation the City may require any additional information it deems necessary to clarify the approach and understanding of the requested services. Any changes agreed upon during contract/agreement negotiations will become part of the final contract/agreement. The negotiations will identify a level of work and associated fee that best represents the efforts required. If the City is unable to come to terms with the first choice contractor, discussions shall be terminated and negotiations will begin with the second choice contractor. The City reserves the right to reject any and all proposals.

The City reserves the right to modify or incorporate additional steps in the evaluation process in the interest of having a thorough and comprehensive body of information in order to make a recommendation.

The City will determine if an apparent successful proposer is responsible prior to award and execution of a contract/agreement.

The City may award this solicitation to and negotiate a contract/agreement with the most qualified, responsive, responsible proposer, as determined in its sole discretion. The City reserves the right to select one or more contractor to fulfill the scope of work if needed or if it is in the interest of the City to do so.

Upon determination of the successful proposer, the City will issue a Notice of Intent to Award letter notifying all proposers of the RFP process having concluded, the selection of the successful proposer, subject to negotiation of any negotiable provisions, and protest procedures. Contract/Agreement negotiations will follow with the finalist, and if successful, may result in a final award of the contract/agreement.

5.2 EVALUATION CRITERIA:

The following criteria will be considered in evaluating all proposals. A major deficiency in any one category can disqualify the proposer.

1. Content 0-10 points Submitted proposals must contain all items listed in Part 3: Proposal Contents and adhere to specified application format.

2. Project Understanding, Approach & Scope 0-30 points The approach offered by the proposer will be evaluated in terms of its applicability to the requirements specified in this RFP.

3. Qualifications & Experience: Firm 0-20 points The experience of the proposer and /or subcontractors in like projects and history of the company will be considered.

4. Qualifications & Experience: Individuals Assigned 0-20 points The experience and qualifications of individuals assigned to the City’s engagement including resources available for the timely completion of the audit and scheduling of work will be considered.

5. Fee & Schedule 0-20 points

All proposals will be evaluated on the fee required to meet the requirements in this RFP.

TOTAL POINTS 0-100

ATTACHMENT A: SAMPLE CONTRACT/AGREEMENT FOR SERVICES

PERSONAL SERVICES AGREEMENT

FOR

City: City of West Linn, a municipal corporation of the State of Oregon.

Contractor: [SERVICE PROVIDER], a [ENTITY TYPE] of the state of [ENTITY STATE].

[ADDRESS]

Term: November 1, 2025 through December 31, 2031 with two (2) one-year options to renew.

Compensation: Not to exceed [AMOUNT].

Audit Services This Agreement is entered into between the City of West Linn, a municipal corporation of the State of Oregon (“City”), and [SERVICE PROVIDER], a [ENTITY TYPE] of the state of [ENTITY STATE] (“Contractor”). This Agreement is made effective as of November 1, 2025 (the “Effective Date”). This Agreement may refer to the City and Contractor individually as “Party” or jointly as “Parties.”

RECITALS

WHEREAS, the City has a need for personal services that require specialized technical, creative, professional or communication skills or talents, unique and specialized knowledge, or the exercise of discretionary judgment, and for which the quality of the service depends on attributes that are unique to the service provider. In particular, the City is seeking Annual Comprehensive Financial (ACFR) Audit Services for FY 2026 - FY 2030 (the “Services”); and WHEREAS, the City conducted a formal qualifications-based selection for the Services, and Contractor responded by submitting a proposal for the Services dated [DATE] (the “Proposal”);

and WHEREAS, the City duly selected Contractor based on Contractor’s capability, experience, approach, compensation requirements, references and other criteria to perform the Services, which the City Council authorized on October 13, 2025 based on the information provided in Contractor’s Proposal; and WHEREAS, the City desires to contract with Contractor to provide the Services.

AGREEMENT

NOW THEREFORE, in consideration of the foregoing Recitals incorporated by this reference and the mutual promises contained in this Agreement, City and Contractor agree as follows:

1. Term.

The initial term of this Agreement shall be from the Effective Date through December 31, 2031, with the City’s option to extend for an additional two (2) one-year renewals, for a total not to exceed seven (7) years, unless amended or sooner terminated under the provisions of this Agreement. Passage of the Agreement’s term shall not extinguish, prejudice, or limit either party’s right to enforce this Agreement with respect to any default or defect in performance that has not been corrected.

2. Contractor’s Services.

Contractor shall perform the Services and provide the required deliverables in accordance with the terms and conditions of this Agreement. The Services, the deliverables required to be created thereunder, and the schedule for performance are set forth in Exhibit A, Scope of Services. Any conflict between this Agreement and Contractor’s Proposal shall be resolved first in favor of this Agreement and pursuant to the order of precedence set forth herein. Contractor will use its best efforts and due diligence in its performance of the Services and will provide such personnel, materials, supplies, and equipment as are necessary to successfully provide the Services. Contractor will perform the Services consistent with the skill and knowledge possessed by well-informed members of its industry, trade or profession and will apply that skill and knowledge with care and diligence to perform the Services under this Agreement in a professional manner and in accordance with highest standards prevalent in Contractor’s industry, trade or profession under similar conditions and circumstances (“Standard of Care”). All Contractor personnel and those of their subconsultants and subcontractors (collectively, “subcontractors”), if any, shall be properly trained and fully licensed to undertake any activities pursuant to this Agreement, and Contractor shall have all requisite permits, licenses and other authorizations necessary to provide the Services.

3. Contractor’s Identification.

Contractor shall provide the City Contractor’s employer identification number, as designated by the Internal Revenue Service, or, if the Internal Revenue Service has designated no employer identification number, Contractor’s Social Security number.

4. Compensation.

The City agrees to pay Contractor a sum not to exceed [AMOUNT] for satisfactory completion of all Services. Upon satisfactory completion by Contractor and City’s acceptance of any tasks, milestones or other deliverables described in Exhibit A, City agrees to pay Contractor at the times and in the amount(s) set forth in this Agreement and in accordance with Exhibit B, Additional Payment Terms. The City affirms for the first year of this Agreement, payment to Contractor will be duly made; however, as to future years, this Agreement is subject to the availability and appropriation of funds through the City's budget process.

Contractor shall submit monthly requests for payment to the City for Services performed under this Agreement, and the invoices shall describe the Services performed, by whom they were performed, the number of hours worked, and itemize and explain all expenses for which reimbursement is being claimed. All expenses must be preapproved in writing by the City.

Contractor shall choose the most economical form of transportation, and surface transportation mileage will be reimbursed for only one vehicle per two Contractor personnel at the current in-effect IRS rate. Meals and incidental expenses will be paid consistent with the current in-effect U.S. General Services Administration (GSA) per diem rate, and hotels and parking will be paid at actual amounts, not to exceed the GSA daily rate. No reimbursement will be made for any alcohol purchases, personal entertainment, or parking or traffic citations.

The City shall make payments for undisputed Services in a timely manner, within thirty

(30) days of receipt of a complete and acceptable request for payment. Requests for payment received from the Contractor pursuant to this Agreement will be reviewed and approved by the City prior to payment.

The City shall not pay compensation for any portion of the Services not performed.

Payment shall not be considered acceptance or approval of any Services or waiver of any design defects therein. The compensation contemplated in this Section shall constitute full and complete payment for said Services.

Contractor must promptly pay all sums due to subcontractors for services and reimbursable expenses after receiving payment for those services from City.

5. Project Managers and Notice.

The Parties designate the following individuals as their Project Managers, who are designated to send and receive any notices required under this Agreement.

City’s Project Manager Contractor’s Project Manager Lauren Breithaupt [Name of Project Manager] Finance Director [Title of Project Manager]

22500 Salamo Road [Address of Project Manager] West Linn, OR 97068 [Address of Project Manager] e: lbreithaupt@westlinnoregon.gov e:[Email of Project Manager] p:503-742-6032 p:[Phone of Project Manager]

Each Party shall give the other written notice of any intended change of their Project Manager. Any change to Contractor’s Project Manager must be approved by the City, such approval not to be unreasonably withheld.

Unless otherwise stated in the…