CC Resolution 13289 - Approve the 1-Year Extension of City's Financial Audit Services ContractRESOLUTION NO. 13289
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
APPROVING AND AUTHORIZING THE CITY MANAGER EXECUTE AN
AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH EIDE
BAILLY FOR PROFESSIONAL AUDIT SERVICES
WHEREAS, on April 20, 2020, the City Council adopted Resolution 12579, which
authorized the City Manager to approve and execute the Consultant Services
Agreement with Eide Bailly LLP for professional audit services for an initial three
year period with an option to extend for an additional two years, and
WHEREAS, City policy requires an independent auditing firm conduct an annual
audit of the City's financials; and
WHEREAS, Eide Bailly has been the City's independent auditors for the past five
fiscal years; and
WHEREAS, the City now has the need to amend its agreement with Eide Bailly
by $70,000 and bring it up to a total of $358,825 to provide an additional year of
professional auditing services, and
WHEREAS, the City will undertake a full-scale competitive RFP process at the
end of its contract amendment and term with Eide Bailly to select and enter into a
new multiyear agreement with an independent auditing firm; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Campbell does hereby approve and authorize the City Manager to an execute an
amendment to the Consultant Services Agreement with Eide Bailly LLP for
professional audit services.
PASSED AND ADOPTED this 20th day of May, 2025 by the following roll call
vote'.
AYES- Councilmembers- Bybee, Hines, Scozzola, Furtado, Lopez
NOES: Councilmembers: None
ABSENT: Councilmembers- None
,R7D z. M
Sergio-L Dpez, Mayor
ATTEST:
Andrea Szoers, City Clerk
AMENDMENT TO CONTRACT SERVICES AGREEMENT
AMENDMENT #1
CITY OF CAMPBELL
70 NORTH FIRST STREET
CAMPBELL, CA 95008
(408) 866-2140
This Amendment to Contract Services Agreement (hereinafter "Amendment") amends the Consultant
Services Agreement (hereinafter "Agreement") to provide Professional Auditing Services for the City of
Campbell originally entered into on the 21s' day of April, 2020, by and between the City of Campbell (a
Municipal Corporation, hereinafter referred to as "City") and Eide Bailly LLP (a California Corporation).
As provided for under the terms of this Amendment, the City and Consultant agree to amend the following
provisions of the Agreement as follows:
• Compensation. The compensation under Section 3.1 has a maximum contract obligation amount of
$288,825. Included as Exhibit 2 is Amendment 41 to the original Consultant Services Agreement;
in which the maximum contract obligation amount shall be repealed and replaced with a maximum
contract obligation of $358,825.
• Term. Section 10.10 states that this contract shall terminate following the completion of the audit
period for fiscal year ending June 30, 2024. Included as Exhibit 1 is the Consultant Services
Agreement; in which the term of the contract shall be repealed and replaced with termination
following the completion of the audit period for fiscal year ending June 30, 2025.
All other terms and conditions as set forth in the Agreement shall remain in effect.
Signature Warranty:
The undersigned are authorized to represent and enter into this Amendment on behalf of the Consultant.
This Amendment to the Consultant Services Agreement shall become effective upon its execution by the
City, in witness whereof, the parties have executed this Amendment the day and year first written above.
CONTRACTOR
:
Name: Ahmad Gharaibeh
Title: Partner
Date:
Attachments:
Exhibit 2 — Amendment # 1
Exhibit 3 — Original Consultant Service Agreement
CITY OF CAMPBELL
as
Name: Brian Loventhal
Title: City Manager
Date:
CITY OF CAMPBELL
CONSULTANT SERVICES AGREEMENT FOR
PROFESSIONAL AUDIT SERVICES
This Agreement is entered into at Campbell, California on the 30"' day of September,
2020, by and between the CITY OF CAMPBELL (hereinafter referred to as "City") and Eide
Bailly LLP (hereinafter referred to as "Consultant"),
WHEREAS, City has reviewed proposals for Financial Audit Services for the fiscal years ending
June 30, 2020 through June 30, 2024, and;
WHEREAS, City staff has reviewed the qualifications and experience of the firms submitting
proposals and has determined that the audit firm of Eide Bailly LLP best meets the requirements of
the City's RFP dated November 6, 2019, and;
WHEREAS, Eide Bailly LLP submitted its last, best, and final offer in the following amounts: not
to exceed $55,000 for FY 19/20, $56,6 10 for FY 20/21, $57,742 for FY 21/22, $58,898 for FY
22/23 and $60,075 for FY 23/24, for a total five year contract not to exceed $288,825, and;
WHEREAS, Consultant represents that it has the expertise, means, and ability to perform said
financial audit services; and
WHEREAS, the Consultant's Technical Proposal and Cost Proposal, shown as Exhibit B and
Exhibit C respectively, are incorporated by reference into this Agreement.
NOW, THEREFORE, in consideration of each other's mutual promises, Consultant and City
agree as follows:
DUTIES OF CONSULTANT
L1 Consultant agrees to perform services as set forth in Exhibit A - Scope of Services,
attached hereto and incorporated herein by reference, and which shall be interpreted together and
in harmony with this Agreement. In the event of any conflict between Exhibit A and this
Agreement, this Agreement shalt govern, control, and take precedence.
1.2 Consultant's project manager will meet with the City's project coordinator prior to
commencement of the project to establish a clear understanding of the working relationships,
authorities, and management philosophy of City as it relates to thisAgreement.
1.3 Consultant, working with the City, will gather available existing information
concerning the project, and shall review documents as necessary for compliance with the project's
objectives.
1.4 In performance of this Agreement by Consultant, time will be of the essence.
1.5 Notwithstanding Section 1.4, Consultant shall not be responsible for delay caused
by activities or factors beyond Consultant's reasonable control, including delays or by reason of
strikes, work slow -downs or stoppages, or acts of God.
1.6 Consultant agrees to perform this Agreement in accordance with the highest degree
of skill and expertise exercised by members of Consultant's profession working on similar
projects under similar circumstances.
1.7 Consultant shall cooperate in good faith with City in all aspects of the performance
of this Agreement.
1.8 In the course of the performance of this Agreement, Consultant shall act in the
City's best interest as it relates to the project.
1.9 The designated project manager for Consultant shall be Joe Escobar, Audit
Manager. The Consultant's project manager shall have all the necessary authority to direct
technical and professional work within the scope of the Agreement and shall serve as the
principal point of contact with the City and the City's project coordinator. The authorized
principal of Consultant executing this Agreement for the Consultant shall have authority to
make decisions regarding changes in services, termination and other matters related to the
performance of this agreement on behalf of Consultant.
1.10 The Consultant (and its employees, agents, representatives, and subconsultants), in
the performance of this Agreement, shall act in an independent capacity and not as officers or
employees or agents of the City. The City shall not direct the work and means for
accomplishment of the services and work to be performed hereunder. The City, however, retains
the right to require that work performed by Consultant meet specific standards consistent with
the requirements of this Agreement without regard to the manner and means of accomplishment
thereof. Subcontractors shall assume all of the rights, obligations and liabilities, applicable to it
as an independent contractor hereunder. Consultant represents and warrants that it (i) is fully
experienced and properly qualified to perform the class of work and services provided for herein,
(ii) has the financial capability and shall finance its own operations required for the performance
of the work and services and (iii) is properly equipped and organized to perform the work and
services in a competent, timely and proper manner in accordance with the requirements of this
Agreement.
1.11 This Agreement contains provisions that permit mutually acceptable changes in
the scope, character or complexity of the work if such changes become desirable or necessary as
the work progresses. Adjustments to the basis of payment and to the time for performance of the
work, if any, shall be established by a written contract amendment (approved and executed by the
City) to accommodate the changes in work.
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2. DUTIES OF CITY
2.1 City shall furnish to Consultant all available and pertinent data and information
requested by Consultant to facilitate the preparation of the documents called for in this
Agreement. Consultant shall be entitled to reasonably relyon all such information.
2.2 City shall provide contract administration services. City shall notify Consultant of
required administrative procedures and shall name representatives, if any, authorized to act in its
behalf.
2.3 City shall review documents submitted by Consultant and shall render decisions
pertaining thereto as promptly as reasonably possible.
3. COMPENSATION
3.1 For the full performance of the services described herein by Consultant, City
agrees to compensate Consultant for all services and direct costs associated with the perfon-nance
of the project in an amount not to exceed $288,825, as follows:
a. Once each month, Consultant shall submit for payment by City, an itemized invoice for
services performed. The invoice shall describe the services rendered and the title of the item
of work, and shall list labor hours by personnel classification. Said invoice shall be based on all
labor and direct expense charges made for work performed on the project. Labor charges shall be
in accordance with the fee schedule found in Exhibit A of this Agreement. City shall pay
Consultant for services rendered and approved by the City within 30 days from the date the
itemized invoice is received by the City, subject to the maximum not to exceed amount specified
above and the City's right to object.
b. Direct costs are those outside costs incurred on or directly for the project, and
substantiated with invoices for the charges. Direct expenses include printing, reproduction, and
delivery charges.
3.2 If Consultant incurs other costs which are not specifically covered by the terms of
this Agreement, but which are necessary for performance of Consultant's duties, City may
approve payment for said costs if authorized in writing by the City in advance,
3.3 City may order changes in the scope or character of services in writing, including
decreasing the amount of Consultant's services. In the event that the work is decreased,
Consultant is entitled to full compensation for all services performed and expenses incurred prior
to receipt of notice of change. Under no conditions shall Consultant make any changes to the
work, either as additions or deductions, without the prior written order of the City, In the event,
that the City determines that a change to the work or services from that specified in this Agreement
is required, the contract time and/or actual costs reimbursable by the City for the project may
be adjusted by contract amendment or change order to accommodate the changed work. The
maximum not to exceed total amount specified in this Article 3 (Compensation) shall not be
exceeded, unless authorized by written contract amendment or change order, approved and
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executed by the City. Consultant shall obtain prior written approval for a revised fee schedule
from the City before exceeding such fee schedule.
3.4 In no event, will the Consultant be reimbursed for any costs or expenses at any
rates that exceed the rates for set forth in the fee schedule found in ExhibitA.
4. SUBCONSULTANTS
4.1 Consultant may not subcontract any services required under this Agreement
without the prior written consent of the City.
4.2 Consultant shall be responsible to City for the performance of any and all
subconsultants who perform work under this contract, and any acts of negligence or misconduct
on their part. Consultant is solely responsible for all payments due to subconsultants.
OWNERSHIP OF DOCUMENTS AND MATERIALS
All original documents, papers, data, materials, and other work products prepared by
the Consultant and/or its subconsultants in the performance of the services encompassed in this
Agreement (whether in printed or electronic format) shall be the property of the City and may be
used on this project without the consent of the Consultant or its subcontractors. City acknowledges
that such documents and other items are instruments of professional services intended for use
only on the subject project. Consultant agrees that all copyrights which arise from creation of the
Project -related documents and materials pursuant to this Agreement shall be vested in the City
and waives and relinquishes all claims to copyright or other intellectual property rights in favor
of the City. Upon the completion or termination of this Agreement for any reason, the City shall
be entitled to receive, and Consultant shall promptly provide to the City upon request, all finished
and unfinished project -related documents and materials, produced or gathered by or on behalf of
Consultant that are in Consultant's possession, custody or control. Consultant may retain copies
of said documents and materials for its files. In the event of termination, any dispute regarding
compensation or damages shall not hinder, prevent, or otherwise impact the City's right to
promptly receive and use such documents and materials which are the sole and exclusive property
of the City.
6. TERMINATION
Notwithstanding any other provision of this Agreement, City may terminate this
Agreement at any time, with or without cause, in its sole discretion, by giving notice in writing to
Consultant of such termination. In the event of such termination, Consultant shall have the right
and obligation to immediately assemble the work then in progress for the purpose of completing
the work and turning over all materials and documents to City. In the event of such termination,
Consultant shall be compensated for all work and services performed to the point of termination
in accordance with the payment provisions set forth in Section 3. 1, unless the termination is for
cause, in which event Consultant need be compensated only to the extent required by law.
7. AUDIT AND INSPECTION
Consultant shall maintain such financial records and other records as may be prescribed by
the City or by applicable federal and state laws, rules, and regulations. The selected Consultant shall
retain these records for a period of seven (7) years after final payment, or until they are audited by
the City, whichever event occurs first. These records shall be made available during the term of the
contract or service agreement and the subsequent seven-year period for examination, transcription,
and audit by the City or its designees.
EEQ►UAL EMPLOYMENT OPPORTUNITY
Consultant agrees to refrain from discriminatory employment practices on the basis of
race, religious creed, color, sex, national origin, handicap, sexual orientation, or ancestry of any
employee of, or applicant for employment with, such Consultant or subcontractor.
9. INSURANCE AND INDEMNIFICATION
9.1 With respect to any design professional services provided by Consultant, the Consultant
agrees to indemnify, and hold harmless the CITY, its officers, and employees to the fullest extent
allowed by law from any and all claims, actions, causes of action, damages, liabilities and losses,
that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the
Consultant, except for any claims, actions, causes of action, losses, damages or liabilities
proximately caused by the sole negligence or willful misconduct of CITY. CITY shall not be
liable for acts of Consultant in performing services described herein. Notwithstanding anything
in this paragraph to the contrary, any defense costs charged to the design professional under this
paragraph shall not exceed the design professional's proportionate percentage of fault, except
that in the event one or more defendants is unable to pay its share of defense costs due to
bankruptcy or dissolution of the business, the design professional shall meet and confer with the
other parties regarding unpaid defense costs in good faith effort to agree on the allocation of
those costs amongst the parties.
With respect to all matters other than those covered by the foregoing paragraph, Consultant
agrees to indemnify, defend (with counsel reasonably satisfactory to the CITY) and hold harmless
the CITY, its officers, officials, directors, agents representatives, volunteers, and employees to
the fullest extent allowed by law from any and all claims, actions, causes of action, losses,
damages, liabilities and costs of every nature, including but not limited to all claims, actions,
causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all
costs of defending any claim, caused by or arising out of, or alleged to have been caused by or
arise out of, in whole or in part, Consultant's performance under this Agreement, except for any
claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by the
sole negligence or willful misconduct of CITY. CITY shall not be liable for acts of Consultant in
performing services described herein.
In no event shall this section be construed to require indemnification by the Consultant to a
greater extent than permitted under the public policy of the State of California; and in the event
that this contract is subject to California Civil Code section 2782(b), the foregoing indemnity
provisions shall not apply to any liability for the active negligence of the City,
The defense and indemnity provisions obligations of this Agreement are undertaken in addition
to, and shall not in any way be limited by the insurance obligations contained in this Agreement.
The foregoing indemnity provisions are intended to fully allocate the parties' risk of liability to
third -parties; and there shall be no rights to indemnity or contribution, in law or equity or
otherwise between the parties that are not set forth in this section. Consultant waives all rights to
subrogation for any matters covered by the provisions of this section. Consultant's responsibility
for Such defense and indemnity obligations as set forth in this section shall survive the
termination or completion of this Agreement for the full period of time allowed by law.
9.2 Consultant shall maintain insurance conforming to the following specifications to the
fullest amount allowed by law for a minimum of two years following the termination or
completion of this Agreement:
A. Types of Coverage
The policies shall afford the following types of coverage:
1. Commercial General Liability-,
2. Automotive;
3. Workers' Compensation and Employer Liability; and
4. Professional Liability and/or Errors and Omissions
B. Minimum Scope of Insurance
Coverage shall be at least as broad as:
For Commercial General Liability: Insurance Services Office (ISO) CGL
Form 00 01 11 8 5; and
2. For Automotive Liability: ISO CA 00 01 06 92 including symbol l(any
auto); and
3. For Workers' Compensation: insurance as required by the Labor Code of
the State of California and Employer's Liability insurance, and
4. For Professional Liability and/or Errors and Omissions: insurance covering
negligence committed by or on behalf of Consultant in rendering services
to City.
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C. Minimum Limits of Insurance
Consultant shall maintain limits no less than:
1. General Liability: $1,000,000 combined single limit per occurrence for
bodily, personal injury and property damage. If Commercial General Liability Insurance or
other form with a general aggregate limit is used, either the general aggregate limit shall
apply separately to this project/location or the general aggregate limit shall be twice the
required occurrence limit.
2. Automobile Liability: $1,000,000 combined single limit per accident for
bodily injury and property damage.
3. Workers' Compensation and Employer's Liability: Workers'
Compensation limits as required by the Labor Code of the State of California and Employer's
Liability limits of $ 1,000,000 per accident.
4. Professional Liability and/or Errors and Omissions: $1,000,000 per claim and
$2,000,000 in the annual aggregate.
The limits of insurance required in this Agreement may be satisfied by a combination of
primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain
or be endorsed to contain a provision that such coverage shall also apply on a primary and
non-contributory basis for the benefit of City (as agreed to in this Agreement) before the City's
own insurance or self-insurance shall be called upon to protect it as a named insured,
D. D►eductihle and Self -insured Retention
Any deductibles or self -insured retention must be declared to and approved by the City,
and shall not reduce the limits of liability. At the option of the City, either- the insurer
shall reduce or eliminate such deductibles or self -insured retention as respects the City, its
agents, officers, attorneys, employees, officials and volunteers; or the Consultant shall procure
a bond guaranteeing payment of losses related to investigations, claim administration, and
defense expenses. Policies containing any self -insured retention provision shall provide or
be endorsed to provide that the self -insured retention may be satisfied by either the named
insured or the City.
E. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
I . General Liability and Automobile LiabilityCoverage:
a. The City, its agents, officers, attorneys, employees, officials and
volunteers are to be covered as additional insureds as respects: liability arising out of
this Agreement performed by or on behalf of the Consultant, products and
completed operations of the Consultant, premises owned, occupied or used by the
Consultant, or automobiles owned, leased, hired or borrowed by the Consultant. It is a
requirement of this Agreement that any available insurance proceeds broader than or
in excess of the specified minimum insurance coverage requirements and/or limits set
forth in this Agreement shall be available to the City as an additional insured.
Furthermore, the requirements for coverage and limits shall be
(1) the minimum coverage limits specified in this Agreement, or (2) the broader
coverage and maximum limits of coverage of any insurance policy or proceeds
available to the named insured, whichever is affords greater coverage.
b, The Consultant's insurance coverage shall be primary insurance as
respects the City, its agents, officers, attorneys, employees, officials and
volunteers. Any insurance or self-insurance maintained by the City, its agents,
officers, attorneys, employees, officials and volunteers shall be excess of the
Consultant's insurance and shall not contribute with it.
C. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to the City, its agents, officers, attorneys, employees,
officials, and volunteers.
d. The Consultant's insurance shall apply separately to each insured
against whom claim is made or suit is brought except with respect to the limits of
the insurer's liability.
2. Workers' Compensation and Employer's Liability Coverage: The insurer shall
agree to waive all rights of subrogation against the City, its agents, officers,
attorneys, employees, officials, and volunteers for losses arising from work
performed by the Consultant for the City.
3. All Coverages: Any unintentional failure to comply with reporting provisions
of the policies shall not affect coverage provided to the City-, and unless
otherwise approved by the City, each insurance policy required by this clause
shall be endorsed to state that coverage shall not be canceled by either party,
except after thirty (30) days prior written notice by regular mail has been given
to the City, or ten (10) days for cancellation for non- payment of premium.
F. Suspension or Cancellation
If any of the coverages required by this Agreement should be suspended, voided,
cancelled or reduced in coverage during the term of this Agreement, Consultant shall
immediately notify City and replace such coverage with another policy meeting the requirements
of this Agreement.
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G, Subcontractors
Consultant agrees that any and all contracts with subcontractors for performance of
any matter under this Agreement shall require the subcontractors to comply with the same
indemnity and insurance requirements set forth in this Agreement to the extent that they
apply to the scope of the subcontractors' work. Subcontractors are to be bound to
contractor and to City in the same manner and to the same extent as the Consultant is
bound to City under this Agreement. Subcontractors shall further agree to include these
same provisions with any sub -subcontractor. A copy of this Agreement will be furnished
to the subcontractor on request. The Consultant shall require all subcontractors to provide
a valid certificate of insurance and the required endorsements included in the Agreement
prior to commencing any work, and will provide proof of compliance to the City.
H. Acceptability of Insurers
Without limiting Consultant's indemnification provided hereunder, the policies of
insurance listed in Article 9.2 of this Agreement are to be issued by an issuer with a
current A.M. Best Rating of A:V and who is authorized to transact business in the State of
California, unless otherwise approved by the City.
1. Verification of Coverage
Consultant shall furnish the City with endorsements and certificates of insurance
evidencing coverage required by this clause. The certificates for each insurance policy are
to be signed by a person authorized by that insurer to bind coverage on its behalf. The
certificates are to be on forms acceptable to the City. Where required by statue, forms
approved by the Insurance Commissioner are to be submitted. All certificates are to be
received and approved by the City before work commences.
10. MISCELLANEOUS
10.1 This Agreement shall be binding on the heirs, executors, assigns and successors of
Consultant.
10.2 Neither party may assign this Agreement, or any portion hereof, without the prior
written consent of the other.
10.3 This Agreement shall not be construed to alter, affect, or waive any lien or stop
notice rights, which Consultant may have for the performance of services pursuant to this
Agreement.
10.4 Neither parry's waiver of any term, condition or covenant, or breach of any term,
condition or covenant shall be construed as the waiver of any other term, condition or covenant
or waiver of the breach of any other term, condition orcovenant.
10.5 This Agreement contains the entire Agreement between City and Consultant
relating to the project and the provision of services to the project. Any prior agreements, promises,
negotiations, or representations not expressly set forth in this Agreement are of no force or
effect. Subsequent modifications to this Agreement shall be in writing and signed by both City
and Consultant.
10.6 If any term, condition or covenant of this Agreement is held by a court of competent
jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement
shall be valid and binding on City and Consultant.
10.7 This Agreement shall be governed and construed in accordance with the laws of
the State of California.
10.8 This Agreement may be executed in Counterparts and will be binding as executed.
10.9 All changes or amendments to this Agreement must be in writing and approved by
all parties.
10.10 The term of this Agreement shall commence upon execution of the Agreement and
terminate following the completion of the audit period for fiscal year ending June 30, 2022. Unless
either party gives written notice to the other party prior to March 1, 2023, the term of the
Agreement shall be automatically extended for an additional two years to include the audits of
fiscal year ending June 30, 2023 and 2024 at the not to exceed amounts specified in section 3 of
this agreement. Either party may elect earlier termination by giving written notice at least one
hundred eighty (180) days prior to the end of any fiscal year (on or before January I" annually). If
either party does not exercise such right to early termination, then this Agreement shall
automatically continue pursuant to the stated term and the other provisions contained herein.
10.11 Consultant owes the City a duty of undivided loyalty in performing the work and
services under this Agreement, including, but not limited to, the obligation to refrain from having
economic interests and/or participating in activities that conflict with the City's interests in
respect to the work and/or services and project. The Consultant shall list current clients who may
have a financial interest in the outcome of this Agreement. The Consultant hereby certifies that it
does not now have, nor shall it acquire any financial or business interest that would conflict with
the performance of services Linder this agreement. Consultant shall not make or participate in
making or in any way attempt to use Consultant's position to influence a governmental decision
in which Consultant knows or has reason to know Consultant has a direct or indirect financial
interest other than the compensation promised by this Agreement. Consultant will immediately
advise the City if Consultant learns of a financial interest of Consultant's during the term of this
Agreement.
10.12 This Agreement is entered into, and to be performed in Santa Clara County,
California, and any action arising out of or related to this Agreement shall be maintained in a
court of appropriate jurisdiction in Santa Clara County, California.
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11. NOTICES
Notices required Linder this Agreement may be delivered by first class mail addressed to
the appropriate party at one of the following addresses,
CITY: Will Fuentes
Finance Director
City of Campbell
70 North First Street
Campbell, CA 95008
CONSULTANT: Ahmad Gharaibeh, CPA
Partner
Eide Bailly LLP
1900 S. Norfolk St., Suite 225
San Mateo, CA 94403
Having read and understood the foregoing Agreement, the undersigned parties agree to be bound
hereby:
CONSULTANT
By lie A klluz) ea: d A s-c� / pe o
Title
CITY OF CAMPBELL
By
Title. CIL
Exhibit A - Scope of Services and Fees
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EXHIBIT A
SCOPE OF SERVICES AND FEES
The City of Campbell desires a Comprehensive Annual Financial Report (CAFR) to be prepared by
the Consultant and be fully compliant with Generally Accepted Accounting Principles for the fiscal
year ended June 30, 2020 and each of the subsequent years of the Consultant's contract with the
City. The City plans to submit the CAFR to the Government Finance Officers Association (GFOA)
for review in their Certificate of Achievement for Excellence in Financial Reporting program. The
Consultant will perform the following tasks.
1. The Consultant will perform an audit of all funds of the City of Campbell. The audit will
be conducted in accordance with auditing standards generally accepted in the United States of
America and Government Auditing Standards, issued by the Comptroller of the United States. The
City's Comprehensive Annual Financial Report (CAFR) will be prepared and word processed by
the Consultant and assembled digitally in Adobe Acrobat format (PDF). The CAFR will comply
with the latest required GASB Statements applicable for the year Linder audit. The Consultant will
render their auditors' report on the basic financial statements which will include both Government -
Wide Financial Statements and Fund Financial Statements. The Consultant will also apply limited
audit procedures to Management's Discussion and Analysis (MD&A) and required supplementary
information pertaining to the General Fund and each major fund of the City.
2. The Consultant may perform a single audit on the expenditures of federal grants in
accordance with Uniform Guidance as well as any other applicable federal, state, local or
programmatic audit requirements and render the appropriate audit reports on Internal Control over
Financial Reporting based upon the audit of the City's financial statements in accordance with
Government Auditing Standards and the appropriate reports on compliance with Requirements
Applicable to each Major Program, Internal Control over Compliance and on the Schedule of
Expenditures of Federal Awards in Accordance with Uniform Guidance as well as any other
applicable federal, state, local or programmatic audit requirements. The single audit report will
include the appropriate schedule of expenditures of federal awards, footnotes, findings and
questioned costs, including reportable conditions and material weaknesses, and follow up on prior
audit findings where required. If the City does not meet the minimum requirements to necessitate a
single audit, the fees shall be adjusted accordingly. The City did not exceed the $750,000
expenditure threshold in fiscal year 2018-19.
3. The Consultant shall perform agreed -upon auditing procedures pertaining to the City's
Gann Limit (Appropriations Limit) and render a letter annually to the City regarding compliance.
4. The Consultant shall issue letters required by the Statement on Auditing Standards 114
and 115 and any future required standards that includes identification of the most sensitive
disclosures affecting the financial statements and recommendations for improvements in internal
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control, accounting procedures and other significant observations that are considered to be non -
reportable conditions. Management letters shall be addressed to the City Council.
5. The Consultant will issue an examination report on management's assertion regarding
compliance with Measure 0 each fiscal year. The Consultant will be provided with a "Schedule of
Measure 0 Revenues and Expenditures for the Fiscal Year" ("Schedule"). The Consultant shall: 1)
obtain supporting documentation for all amounts listed on the Schedule; 2) verify that the amounts
and descriptions agree to the underlying accounting records and supporting documentation; 3)
provide a written report on or before December 5th; and 4) provide an oral report to the Measure 0
Advisory Oversight Committee in January.
6. The Consultant shall perform an audit of and prepare basic financial statements and a
management letter for the West Valley Solid Waste Management Authority, a California Joint
Powers Authority. The Authority includes the Cities of Campbell, Monte Sereno, Saratoga, and the
Town of Los Gatos. The City maintains the financial records and provides accounting services for
the Authority. The Authority's financial activities are reported in a single enterprise fund.
7. Periodically, the City receives Transportation Development Act (TDA) funds (Article 3
Bikeway Program) from the Metropolitan Transportation Commission for bicycle and pedestrian
improvements. Whenever such funds are received (or expended by the City) an audit is required.
The City did not incur any expenditures during the past fiscal year. However, if funding is received
during the contract period, an audit of the TDA activity will be required including an opinion of fair
presentation in conformity with GAAP and compliance with applicable program guidelines,
8. The Consultant shall provide, compile, and file the Annual Financial Transactions Report
(FTR) to the State Controller of California, from data provided by City staff. At any time, based on
capacity, City staff may wish to perform this function internally and will remove this function from
the engagement at that time upon sufficient notice to the Consultant.
9. The Consultant shall provide, compile, and file the Annual Street Report to the State
Controller of California, from data provided by City staff. At any time, based on capacity, City staff
may wish to perform this function internally and will remove this function from the engagement at
that time upon sufficient notice to the Consultant.
10. Assistance with GASB 68 accounting entries as needed to record the City's net pension
liability and related deferred inflows and outflows. At any time, based on capacity, City staff may
wish to perform this function entirely and internally and will remove this function from the
engagement at that time upon sufficient notice to the Consultant.
13
Fees to the Consultant for fiscal years ending June 30, 2020 through June 30, 2024 for the
required services shall not exceed $288,825. Fees for services performed shall be paid as follows:
Service
FY2019-20
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
City Audit and Related Reports
40,000
40,800
$ 41,616
$ 42,448
43,297
Single Audit and Related Reports
3,000
3,060
3,121
3,184
3,247
Gann Limit Review Report
500
510
520
531
S41
West Valley Solid Waste Management Authority
3,000
3,060
3,121
3,184
3,247
TDA Article 3 Audit
2,000
2,040
2,081
2,122
2,165
Measure 0 Examination Report
-
-
-
-
Total for Fiscal Year (not -to -exceed) Without
Optionol Items
48,500
$ 49,470
$ 50,459
$ 51,469
$ 52,497
Optional Items
Financial Transaction Report (FTR)
4,000
4,080
4,162
4,245
4,330
Annual Street Report
3,000
3,060
3,121
3,184
3,247
Assistance with GASB 68 Entries
-
-
-
Total for Fiscal Year (not -to -exceed) With
Optional Items 1
$ 55,500
56,610,
$ 57,742 i
$ 58,89$
$ 60,07
Fees to the Consultant for any additional work agreed to by Mutual consent between the
Consultant the City shall be billed at following hourly rates for FY 19/20 through FY 23/24:
Positions
-FY 19/20
FY 20/21
FY 21/22
FY 22/23
FY 23/24
Partner
$220
$224
$229
$233
$238
Manager
160
163
166
170
173
Supervisor
120
122
125
127
130
Senior Auditor
90
92
94
96
97
Staff Auditor
80
82
83
85
87
Administrator
60
61
62
64
65
14
r
January 6, 2020
Technical Proposal for Professional Auditing Services
CITY OF CAMPBELL
Submitted By:
Eide Bailly LLP
Ahmad Gharaibeh, CPA
Partner
260 Sheridan Ave, Suite 440
Palo Alto, CA 94306
� � x
t �;
CITY OF CAMPBELL
TABLE OF CONTENTS
1. Transmital Letter....................................................................... 2
2. About Eide Bailly..................................................................... 5
3. License to Practice in California ............................................ b
4. Indedendence........................................................................... 6
5. Firm Qualifications and Experience ...................................... 8
Government Experience........................................................ 8
Industry Involvement ..............
Eide Bailly's Current Municipal Clients ................................ 10
6. Partner, Supervisory and Staff Qualifications
andExperience....................................................................... 13
Senior Associate and Staff Members
7. Audit Approach .................. ....... 18
Audit Methodology................................................................ 18 P ;
AuditProcess........................................................................... 19
AuditSchedule........................................................................ 29
F
8. Similar Engagements with Other Government Entities ...... 30
Why Choose Eide Bailly.............................................................. 31
AppendixA — Team Profiles...................................................... 32
Additional Resources....................................................................40
11 eidebailly.com
CITY OF CAMPBELL
Thank you for giving Eide8aiUyLLPthe opportunity topropose onaudit services
for the City ofCampbell (the ^Cby^).We've served the government industry for
more than 5Uyears and work with more than 9U0 government clients throughout
the nation.
Through serving these clients, our professionals have gained focused expertise
regarding government organizations and will provide you with insightful advice
that aids in managing the finances of the City. We understand your specific
challenges, needs and goals and have fine-tuned our process tocreate a more
effective and efficient engagement,
VVestay abreast ofcurrent issues impacting government organizations and grow
our knowledge by attending workshops and trainin0s. During your engagement,
wewill work closely with your management team toidentify issues and provide
responsive solutions that are tailored to your organization. In addition, you will
experience partner involvement during all phases of the engagement, as well as
throughout the year. At Eide Bailly, we make it a priority to be accessible to our
clients, which includes returning phone calls and e-maibinatimely manner.
Government Experience
The service team assigned has experience providing audit services to several
other similar clients in the government industry. This experience will bring the
City a different and unique perspective to your audit not seen by other firms. Not
only will we provide the expected compliance and financial statement support
but, with our experience with other governments, we can bring best practices to
the City. We strongly believe in providing our clients value added services and
support, not only during the audit, but throughout the year.
The following pages highlight ourfirm'y strengths and demonstrate why Eide
8ai||y merits serious consideration. Know that you will be a highly valued client.
Our people would be proud to work with the City of Campbell and build a trusting
relationship with your team. Please contact me at 650.462.0400 or
ogharaibeh@eidebaiUyzom' if you would like to discuss any aspect of this
proposal.
Other Services
Eide Bailly is seeing an explosion of interest in the areas of Cybersecurity, Internal
Audit and Forensic Accounting in state and local governments nationally. We have
professionals with deep IT backgrounds specializing in a broad range ofsecurity
services allowing us to tailor solutions to your needs. Our internal audit
professionals bring strong process' prucedure, internal control and risk
management experience toyour organization. We have seasoned professionals
with years cfrelevant investigative experience.
21eideba|Uy.com
CITY OF[AMP8BL
Affirmations
This proposal to provide auditing services is firm and irrevocable for 188 days. We affirm our
understanding of the services requested by the City, the work to be done, the time period of performance,
and that the City desires anaudit firm that provides consistency with staff. Eide8uiUy's philosophy bto
staff each of our audits with consistent staff in orderto provide the most effective and efficient audit for
our clients. As required by the Request for Proposal our audit plan covers the engagements for:
~ City of Campbell Comprehensive Annual Financial n,pu,,
^ Single Audit Report vnFederal Awards
° GAwNLimit Audit
~ The Transportation Deyelopment Act per the Metropolitan Transportation Commission requirements
^ West Volley Solid Waste Management Authority Basic Financial Statements
" State Controller City Financial Transactions Report (ontiv"oV
~ Annual Street Report mthe State Controller vfCalifornia <opnonoV
• Preparation of the city's GASB 68 accounting entries (optional)
Sincerely,
AhmadGharaibeh, CPA
Partner
260 Sheridan Ave, Suite 440
Palo Alto, [A 94306
650.462-0400
aghamibeh@eideboiUyzom
CITY OF CAMPBELL
4 1 eidebailly.com
CITY OF CAMPBELL
WHAT INSPIRES YOU, INSPIRES US. AT A GLANCE
With more than 100 years of service, your experience will be different than
working with other CPA firms. Our professionals deliver industry and subject
matter expertise resourcefully, ensuring that we're providing guidance that
directly reflects your needs.
Eide Bailly is a Top 25 CPA firm in the nation with offices in 15 states. Our clients lop 25 CPA firm in the nalion
benefit from local, personal service and, at the same time, enjoy access to 2,500
professionals with diverse skill sets and experiences.
We pride ourselves on being leaders in the industries we serve, offering valuable 0
perspectives beyond our core strength of accounting and tax compliance. We're offices in 15 slales
here to help guide the strategy and operations of your organization, and we aim
to make sure our clients feel connected and understand the process.
Our people are optimistic and good -natured —we know you'll enjoy working with
us as much as we enjoy working with each other. Our service style is hands-on,
and we're always looking for new ways to solve your problems or help you 330 pariners
embrace opportunities.
Our Promise to Clients
Our work with clients is more than an engagement. It's a relationship, built on
value and trust —and results. When working with Eide Bailly, you will 2,500+ slaff
• Work with professionals who truly care about your business and will take
the time to get to know you and your organization.
• Gain insight from our industry and service specialists to accomplish your
objectives, address challenges and leverage new opportunities. one Eide Boilly
• Make better business decisions knowing you are guided by trusted
advisors who care about your success.
5 1 eidebailly.com
CITY UF[4MPD8iL
Licensed to Practice in California
Eide Bailly and each of the professional staff assigned to the City are properly registered and licensed to
practice inCalifornia.
Firm Registrations
California Secretary ofState Registration Number— 2Ul997O98OO]
California State Board ofAccountancy Permit Number— 6973
Independence
Eide Bailly is independent of the City as defined by the generally accepted auditing standards and The
U.S. General Accounting Off ice's Government Auditing Standards. Within the past five years, the firm
has not had any relationships involving the city.
Should Eide Bailly enter into any professional relationships deemed relevant during the course of this
engagement, we will notify you in writing of such relationship.
Peer Review
Eide 8aiUy is a member of the American Institute of Certified Public Accountants Private Companies
Practice Section (PCPSJ, Center for Public Company Audit Firms (CPCAF) and Governmental Audit Quality
Center. Our membership with the AICPA requires a third -party peer review of our audit and accounting
practice every three years and is included on page seven. This review included several similar clients and
received a rating of'Pass'
We are also currently registered with the Public Company Accounting Oversight Board (PCAOB), for which
the portion of our practice related to PCAOB/5EC engagements is subject to an inspection of the PCAOB
at least once every three years. A copy of our most recent PCAOB inspection report can be found on the
PCA08websiteat
61 eidebai|ly.mm
CITY OF CAMPBELL
, 1
Cherry Bekaert-"
Report on the Firm's System of Quality Control
December 28, 2017
To the Partners of Ede Bailly LLP and the
National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Elde Bailly LLP (the
firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended July 31,
2017. our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer
Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants
(Standards).
A summary of the nature, objectives, scope, limitations of and the procedures performed in a System Review as
described in the Standards may be found at www.aicpa,org/prsummary. The summary also includes an
explanation of how engagements identified as not performed or reported in conformity with applicable professional
standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Firm's Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the firm with
reasonable assurance of performing and reporting in conformity with applicable professional standards in all
material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed
as not perfomied or reported in conformity with professional standards, when appropriate, and for remediating
weaknesses in its system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the finn's compliance
lhefesvil based on our review.
Required Selections and Considerations
Engagements selected for review Included engagements performed under Government Auditing Standards,
including compliance audits under the Single Audit Act: audits of employee benefit plans, audits performed under
FOICIA, and examinations of service organizations [SOC 1 and SOC 2 engagements],
As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if
applicable, in determining the nature and extent of our procedures,
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of Ede Bailly LLP applicable to
engagements not subject to PCAOB permanent inspection In effect for the year ended July 31, 2017, has been
suitably designed and compiled with to provide the firm with reasonable assurance of performing and reporting in
conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass
with dericiency(ibs) or fail. Eide Bailly LLP has received a peer review rating of pass.
(-114fv/ � 1
,4-.A LLVP
Cherry Bekaert LLP
7 1 eidebailly.com
CITY OF[kMP8ELL
Government Experience
The firm has Z7Sfull-time professionals who participate in
our Governmental Services Group. These professionals
share information, learn from others and stay up'Lo'datenn
industry developments. To gain the greatest benefit, the
knowledge isshared with professionals across the firm.
The governmental industry represents one ufBde8aUly's
largest niche areas —with more than SOU governmental
dientsOnnwide. We provide audit services for avariety of
cities, counties' colleges and univeoibes. fire relief
agencies, housing authorities, school districts, state
agencies, and tribal entities. Through serving these clients,
our professionals have gained focused expertise in the
governmental industry and will provide you with insightful
advice that aids inmanaging the finances ofthe City.
These services include, but are not limited to, evaluating internal control structure, assessing control risk
and performing tests of controls, as well as testing compliance with applicable laws and regulations in
accordance with Government Auditing Standards.
Industry Involvement
In an industry where standards continually evolve and change, Eide BailIV makes it a priority to stay current
and assist our clients with necessary changes. In addition to helping clients implement new standards, we
also help them adapt to changes within the existing standards. Our team members are truly engaged in
thegovernmental industry and arewell positioned in organizations associated with governmental entities.
We are leaden in the Governmental Accounting Standards Advisory [uund| (GASA[}' the A/[PAs
Governmental Audit Quality Center, AICPA State and Local Government Expert Panel and PCPS Technical
Committee, local and national boards of the AGA, including the Financial Management Standards Board,
and the review committee forthe GFOA's Certificate of Excellence for Achievement in Financial Reporting.
Due to our leadership positions, the City will have access to information not available from other
accounting firms.
�q
CITY UFLkMP&EiL
Eide Bailly also regularly attends GASB meetings throughout the year and we communicate the results of
those meetings to our clients through our newsletters, e-blasts andwebinao. We are also involved with
G438's financial reporting reexamination task force shaping the future of state and local governmental
accounting and reporting and participate in the reexamination of the revenue and expense model and
note disclosure projects with GASB.
Vmvr/nekTrine, Day, &Co,ILLP
We are pleased toannounce that Vavhnek,Trine, Day& Co. LLP (VFD) is now
Eide 8aiUy. With ll offices throughout California, as part ofEide BaiUy, our
geographic reach extends to 15 states west of the Mississippi and our staff count
grows &zapproximately I'5O0. EideBaffly
A significant percentage of VTD's current practice is devoted to the
governmental sector. VTO provides governmental auditing and specialized
VTD IS NOW
accounting services toover 3OOgovernmental agendex the
� (iDE BAI[[Y AE�
to these p,o/eoiona|*, as well asthe entire Eide 8ai||y5ove,"meoto| Services
Group.
VTD's key industries include, but are not limited to, large municipal and regional governments, financial
institutions, higher education, manufacturing, retail enterprises, and nonprofit corporations.
Single Audit Experience
Eide Bailly has experience providing single audits related to federal expenditures which ensure our clients
remain compliant. Our single audits include an audit of both the financial statements and the federal
awards. vVealso assist inthe preparation ufthe data collection form and prepare the reporting package
for submission tothe federal audit clearinghouse.
As mentioned before, Eide Bailly audits more than 59.5 billion in federal expenditures, which provides us
with extensive experience in single audits. Not only are we on ,he forefront ufnew regulations, but
because ufour vast experience with governmental entities, we have familiarity with a wide variety of
federal programs. As the City looks to expand its current federal programs, we can pull from our expansive
database of federal programs that we have audited and provide consultation on what has worked
effectively for other entities. This will help the City establish strong controls and processes over new
federal programs rather than trying to rework controls and processes after the program are established.
Our single audit experience includes the Department of Education, Department of Housing and Urban
Development, Department ofAgriculture, Department ofCommerce, Department ofInterior, Department
ofTransportation, Department cf Justice, Department ufLabor, Department ofthe Treasury, Department
of Health and Human Services, Homeland Security, National Foundation on the Arts and the Humanities,
Environmental Protection Agency, Department of Energy, Office of the National Drug Control Policy,
Department ufDefense, and the Bureau ofLand Management.
Paired with our many years of experience, we are qualified to effectively work with your organization to
ensure that federal requirements are met.
91eidcbai|lyzom
CITY OF CAMRBELL
Eide Bailly's Current Municipal Clients
Note: Eide Bailly has not been engaged with the City of Campbell within the last five years.
CITIES
COUNTY GOVERNMENTS
WATER AGENCIES
City of Alameda
County of Imperial
Beaumont Cherry Valley Water District
City of Brawley
County of Orange
Elsinore Valley Municipal Water District
City of Brentwood
County of Placer
Helix Water District
City of Chico
County of Riverside
Montara Water and Sanitary District
City of Concord
County of Sacramento
Monterey Regional Water Pollution Control Agency
City of Dana Point
County of San Bernardino
Moulton Niguel Water District
City of Davis
County of San Diego
Municipal Water District of Orange County
City of Fairfield
County of San Joaquin
Reclamation District 42035
City of Folsom
County of Shasta
Sacramento County Water Agency
City of Foster City
County of Solano
Sacramento Groundwater Authority
City of Glendale
County of Sonoma
Santa Clara Water District
City of Gonzales
County of Ventura
Santa Margarita Water District
City of Grand Terrace
County of Yolo
Suisun-Solano Water Authority
City of Greenfield
Yolo-Davis Clean Water IPA
City of Huntington Park
FIRST S COMMISSIONS
Yucaipa Valley Water District
City of Indian Wells
Contra Costa First 5 Commission
City of Laguna Beach
Sacramento First 5 Commission
SEWER, SANITATION & FLOOD AGENCIES
City of Laguna Niguel
Fresno First 5 Commission
Alameda County Waste Management Authority
City of Lemon Grove
Los Angeles First 5 Commission
Bayshore Sanitary District
City of Los Altos
Orange County First S Commission
Central Contra Costa Sanitary District
City of Monte Sereno
Riverside First 5 Commission
Central Marin Sanitation Agency
City of Napa
San Bernardino First 5 Commission
Cupertino Sanitary District
City of Oceanside
Sonoma First 5 Commission
Delta Diablo Sanitation District
City of Palmdale
Yolo First 5 Commission
East Say Discharge Authority
City of Paramount
Fairfield -Suisun Sanitary District
City of Pleasanton
TRANSIT AGENCIES
Knights Landing Community Services District
City of Rancho Mirage
Capital Southeast Connector JPA
Madison Community Services District
City of Rancho Palos Verdes
High Desert Connector JPA
Orange County Waste & Recycling
City of Rohnert Park
Imperal County Transportation Commission
Oro Loma Sanitary District
City of Roseville
Omnitrans
Riverside County Waste Management
City of Sacramento
Orange County Transportation Authority
Ross Valley Sanitation District
City of San Jacinto
Sacramento Area Council of Governments
Sacramento Area Sewer District
City of San Leandro
San Joaquin Regional Rail Commission
Sacramento Regional County Sanitation District
City of San Ramon
Santa Clara Valley Transportation Authority
Union Sanitary District
City of Santa Clara
SR 91. Expresslanes
Vallejo Sanitation and Flood Control District
City of Santa Clarita
Ventura County Transportation Commission
West Bay Sanitary District
City of Santa Cruz
Solano County Transportation Authority
West Valley Sanitation District
City of Saratoga
City of South Gate
POWER AGENCIES
OTHER AGENCIES
City of South Lake Tahoe
Alameda Municipal Power
Sacramento County Airport System
City of Suisun City
Glendale Water and Power
Sacramento Solid Waste Fund
City of Temecula
Marin Energy Authority
Yolo County Habitat JPA
City of Temple City
Silicon Valley Power
Yolo Solano Air Quality District
City of Walnut
East Bay Regional Park District
City of Whittier
STATE AGENCIES
Department of Water Resources - Electric Fund
Department of Water Resources -
State Water Development System Fund
10 1 eidebailly.com
[KYDF[ANP88i
GFOA Certificate afAchievement for Excellence iuFinancial Reporting
Because we know how important achieving the 6F0o Certificate of Achievement for Excellence in
Financial Reporting is to clients, we work with them to achieve this certification. Below is a summary list
of some of our government audit clients who have been awarded and currently maintain ,he GF0A's
Certificate ofAchievement for Excellence inFinancial Reporting:
State o[Nevada, NV
City of Fairfield, CA
City ofWalnut Creek
City of Chico, CA
County ofVentura, CA
City of S. Lake Tahoe, CA
City of Santa Cruz, CA
City of[apitn|a.[A
City ofSalt Lake City, UT
County ofOrange, CA
city ofRancho Cordova, CA
City ofRoseville, CA
county ofDouglas, NV
County of3n|ano'[A
County ofSan Bernardino, CA
Thought Leadership
A number of partners at Eide Bailly are nationally recognized state and local government thought leaders
who present »tdozens ofnational venues 1hroughouttheyear. These include: GFO4vNational Association
ofState Auditors, Comptrollers, and Treasurers; California Society of CPA's; California Society of Municipal
Finance Officers; � Oregon Government Finance Officers Association; the California State Association of County Retirement Systems; the California Association of Public Retirement Systems,' AGA National
Professional Development Conference; National Association of Housing and Redevelopment Officials
(NAHRO); Iowa Society of CPA's; Idaho Society of CPA's; Utah Society of CPA's; and Colorado GFOA.
Vvcalso provide training for state and local agencies. Some ofthese agencies include Controllers' offios
of the State of Tennessee, Texas State Auditor, State of Montana, Commonwealth of Massachusetts and
the State ufNevada.
Furthermore, Eric Berman, Partner, is the author for the entire Governmental Library for Commerce
Clearinghouse Wolters Kluwer (CCH). This library serves as the interpretative reference on governmental
6AAP' governmental best practices and governmental aud)auditsfor gu"emments' auditorsauditorsand educators nationwide. Eric will eiUb an additionalresource
Online Publications—the[ity will also have access to resources on our EideBaUly Government Industry
website. We publish articles related to hot issues within the government accounting arena. Below is a list
of some of the recent articles posted to our website, as well sent as an email to all of our clients:
0 Common Single Audit Findings and Remediation Series: Matching, Level of Effort, and Earmarking
° bYour Government Ready fo/ThisFiscal Year -End and Beyond?
° Dispatches from GASE/sMeetings
° [ybemecurity:Not Just an^|T°Issue
° Create aninternal Audit with More Value
Visit our wetuhetosign upfor our newsletters, c-blastsand webinao:
CITY O[{AMPBEi1
Implementation mfNew Standards
In an industry where stand a rdscontinu ally evolve and ch a nge, EideB ail lym a kes it a priority to stay current
and assist our clients with necessary changes. In addition to helping clients implement new standards, we
also help them adapt tuchanges within the existing standards.
Additionally, several E@e Ba0y professionals serve on committees that have input into how new
standards are written. This enables us to be involved from the beginning and influence the final outcome.
Our clients benefit from our strong understanding of the standards and how they may affect their
organization. We will work with the City to create a plan to address new standards one to two years prior
to implementation. The following new standards are set for implementation as indicated below:
December 15,Z018
GASB Statement No. O4—Fiduciary Activities
2020
December 1S.2O18
Implementation Guide 201S-2—Fiduciary Activities
2020
December 15'ZUl8
GAG8Statement No. 90—Majority Equity Interests
20I0
June 1S'ZOl9
Implementation Guide Update 2O1Y'z
2021
December 15'2U19
G4S8Statement No. 87—Leases
2021
December 15'2OI9
GAS8Statement No. 8g_Acoyunbngfor Interest Cost
20I1
before the End ofoConstruction Period
December l5'2019
Implementation Guide IO19'3—Leases*
2021
December 1S.ZUZO
GASBStatement No. 91—Conduit Debt Obligations
2022
Portions upon issuance, 0mnibus2(VLK Upon issuance
otherwise June 15, 2020 urIOZ1
December I5,202O Internal Revenue Code Section 457 Deferred 2022
Compensation Plans That Meet the Definition nƒoPension
Plan and Supersession ofGASB Statement 32
June 1S'202l Subscription -Based Information Technology Arrangements 2022
June 15,2OZ1 Public -Private and Public -Public Partnerships and 20I2
Availability Payment Arrangements
*in the process ufpublication authe time ofsubmission.
12 16debaUly.mm
CITY Of fAMPBELL
4: 4, "1
FA UWAt
We're passionate about our work —and your success. We have selected professionals for your service
team who are the right fit for your engagement, based on their knowledge and experience in the
governmental industry.
Ahmad Gharaibeh will lead the engagement team and serve as the Audit Engagement Partner and David
Showalter will serve as the Quality Assurance Partner. Joe Escobar will serve as the Manager and James
Ramsey will serve as the Assisting Senior Audit Manager. These professionals are licensed to practice
public accounting and bring strong credentials and a desire to work with the City. If awarded these
engagements, these individuals will serve as your primary contacts. Additional resources will support the
project team as necessary.
Because we are committed to the government industry, we provide our professionals, as well as our
clients, with specific, ongoing training related to governmental issues. This investment ensures not only
our people, but the public sector in general stays current on the unique challenges and opportunities that
are present so that as many people as possible are in the best position to address these issues.
Senior Associate and Staff Members
All of our seniors have more than two years of experience in public accounting, with several who specialize
in the government industry. We require Yellow Book compliance for all members of our assurance staff.
This means no fewer than 24 hours of specific Government Education courses each two -years. Most
members of our audit staff significantly exceed that amount.
Once an agreeable tirneline has been determined, we will assign a few of our talented seniors and staff to
your engagement.
13 1 eidebailly.com
CITY OF CAMPBELL
We know the importance of a strong business relationship, so we keep staffing changes to a minimum
year-to-year. Eide Bailly has a high retention rate, allowing us to provide stability. Your local Palo Alto
service team has extensive experience in the Government Industry. You'll find profiles for each team
member in Appendix A. The following information will provide an overview of your service team;
Ahmad Gharaibeh, CPA
PARTNER
Ahmad will serve as the engagement partner and will be responsible for directing the
activities of the team, coordinating all services, and ensuring the timely delivery of
quality services. He has more than 20 years in public accounting with experience in
the governmental industry throughout his career. Ahmad serves on the CaICPA
Association of Government Accountants Silicon Valley Committee, and also serves on
the California Society of Municipal Finance Officials East Bay Chapter (CSMFO), Peninsula Chapter and
Monetary Chapter. His focus in the governmental industry are primarily on general purpose governments
cities, special districts, transit, and financing authorities. Ahmad holds the Certified Public Accountant
(CPA) designation and is located in our Palo Alto, California office.
David Showalter, CPA
PARTNER
David will serve as the technical review partner and will be responsible for performing
a quality review of the financial report prior to issuance and consulting on questions
that arise during the course of the engagement. He has more than 18 years in public
accounting with experience in the governmental industry throughout his career.
David serves on the CaICPA Governmental Accounting & Auditing Committee, and also
serves on a consultative group for the Governmental Accounting Standards Board (GASB). His focus in
the governmental industry are primarily on general purpose governments (cities and counties), special
districts, hospitals, and financing authorities. David holds the Certified Public Accountant (CPA)
designation.
Joe Escobar, CPA
MANAGER
Joe will serve as the audit project manager and will be responsible for the day to day
management and delivery of services to the City. He has more than 6 years in public
accounting with experience in the governmental industry throughout his career. Joe
has experience and expertise in performing and managing audits of local
governmental entities. Joe specializes in audits of cities, special districts, stand-alone enterprise funds
and single audits. Joe holds the Certified Public Accountant (CPA) designation and is located in our Palo
Alto office.
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CITY OF CAMPBELL
James Ramsey, CPA
SENIOR MANAGER
--, James Ramsey will serve as the additional resource manager and will be responsible
/ for assisting in the management of the project. He has more than 14 years in public
accounting with experience in the governmental industry throughout his career_
James' career started off as an accounting manager at a local governmental and
therefore has a unique perspective relative to how processes work in an
organization. His specialties include cities, counties, special districts, financing authorities, transit
authorities and single audits. James holds the Certified Public Accountant (CPA) and Certified Fraud
Examiner (CFE) designations.
Tommy Bowen, CPA
SENIOR AUDITOR
n_:, R
Tommy Bowen will serve as the in -charge and will be responsible for the daily audit
work, supervision of staff and execution of audit plan for the City. He has more than
NX,� 6 years in public accounting with experience in the government and tax industry
vrr throughout his career. His focus has been on performing audits of cities counties,
special districts and other local governmental entities. Tommy holds the Certified
Public Accountant (CPA).
Other Seniors and Audit Associates
Additional seniors and audit associates will be assigned to the project.
Staff Availability
We monitor the number of employees and match their skills and capacity to the number of clients. Before
responding to this RFP, we checked our team's capacity level to make sure they are available. We will
continue to monitor and measure performance of our employees and their skills as they relate to the
City's projects. Additionally, we will monitor the City's satisfaction with Eide Bailly to ensure the level of
service being offered meets your satisfaction.
Affirmative Action
Eide Bailly adheres to the principles of Affirmative Action through our daily human resources and business
operations practices. All members of Eide Bailly operate within the Affirmative Action guidelines and value
its objectives.
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CITY OF CAMPBELL
Continuing Education
Because we are committed to the industries we serve, we provide our
professionals with specific, ongoing training. This investment ensures our
people stay current on the unique challenges and opportunities within the
industry sectors so that they are in the best position to help clients address
these issues.
Firmwide, our continuing professional education program requires all
professional staff obtain education that exceeds the requirements of the
American Institute of Certified Public Accountants (AICPA) and where
applicable, GovernmentAuditing Standards. The firm places a strong emphasis
on lifelong learning and recognizes the importance of developing our
professionals to best serve our clients. This past year we provided our client
service professionals with an average of 46 hours of professional education,
compared with the 40-hour accounting industry requirement. In addition, we
regularly share information among the audit teams in different offices to
ensure we are providing clients with the latest thinking and best possible
solutions. Our governmental professionals obtain continuing professional
education through the following means:
CPE HOURS
Eide hilly Fv 2019
• Government -specific seminars sponsored by the AICPA and Government Audit Quality Center
(GAQC).
• Seminars sponsored by the Government Finance Officers Association (GFOA).
• Involvement with local chapters of the GFOA (we teach and attend GFOA conferences, regularly).
• Eide Bailly seminars specific to governmental issues which are taught by our experienced
managers and partners.
By expanding our knowledge of issues important to government organizations, we are able to provide more
in-depth, knowledgeable solutions to our clients. Additional communications, webinars and training are
provided throughout the year on a variety of topics important to state and local governments.
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CITY OF CAMPBELL
We're passionate about our work —and your success. We have selected professionals for your service
team who are the right Mt for your engagement, based on their knowledge and experience in the
Government Industry.
Staff Continuity
To help ensure a strong business relationship and to minimize disruptions, we keep staffing changes to a
minimum. Compared to the national average, Bde 8aiUy experiences o high retention rate which
translates to providing our clients with consistent service teams. We will strive for continuity of staff for
Vour engagement. With this continuity comes quality, as team members' knowledge of your organization
grows from year toyear.
z*°»�v
Staff Retedion
Should the need arise to change any of the key engagement personnel, we will notify you in writing and
provide the qualifications of the proposed replacement. Upon your approval, new engagement personnel
CITY UF[AMP88L
Audit Methodology
At Bde Rai|k\ we promise you a better overall experience- While we recognize that multiple firms are
capable of accomplishing the objectives of an audit, Eide Bailly appreciates that every situation and every
organization is different, and we tailor our approach based on the needs of each client.
Eide Ba|Uyvak/es its business relationships and demonstrates this through our partner and manage,
involvement. Our senior level professionals are involved with our clients and accessible throughout the
year. They do not delegate all tasks to gaff, but rather stay involved onsite during fieldwork as well as
stay connected throughout the year. This approach delivers the greatest benefit to our clients in that we
are able to stay abreast of changes in and updates to ourclient's operating environment and partnerwith
them tuachieve optimal results.
Our clients experience a communication approach that stands apart in both style and frequency. Because
we recognize that effective communication is critical throughout the entire audit process' our service
approach is one where communication begins with planning and continues throughout the year.
Additionally, wetake a collaborative communication approach with our clients and include them in the
process as our peers. Our clients offer wealth of knowledge and information about their organization
and communicating with them as a business partner ultimately produces the best outcome.
Prior to beginning the engagement, we will discuss with management:
° The engagement timeine
° The audit approach and process.
• Additional considerations that may affect scope, schedules and work papers to be prepared by
your personnel.
Upon appointment asyour auditor, wewill discuss the audit schedules and work with you ouensure the
timeline meets your needs and makes the most effective use of your staff members'time.
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CITY 0F[hMP8BL
Level nfStaffing and Number mfHours
Below is our proposed level of staffing and estimated hours for each segment of the audit.
Planning
4
12
4
O
Z
22
Interim Fieldwork
10
IU
90
ZO
4
144
Final Fieldwork
IZ
48
156
56
14
296
Audit Process
Our audit approach is designed to collaborate with the City and achieve optimal results. The approach
consists of five major components: Planning, Interim, Fieldwork, Reporting, and Ongoing Communication.
If awarded, we will discuss with management our proposed schedule but have the flexibility to make anV
changes in order to meet the reporting deadlines. The objectives of each component are described in the
following pages.
Planning
= Discuss and finalize the engagement timeline, audit approach arid process.
" Discussions with management and accounting staff, including the Board, if requested, to address
any risks orconcerns that they may have.
° Evaluate the nature of the operating environment (for example, changes in volume, degree of
system and reporting centralization, sensitivity of processed data, the impact on critical business
processes, potential financial impacts, planning conveoions, and economic and regulatory
environment).
^ Review of interim financial information and reports to identify significant risks and changes early.
° Review of significant estimate areas and consideration of underlying assumptions early in process.
° Gain an understanding of the City and its reporting units and their environments.
° Documentation of internal control systems, including IT, and related changes from prior periods.
" Consideration offraud, risk ofnoncompliance, illegal acts, abuse, etc.
° Assessment ofaudit risk and identification ofpotential audit issues.
° Assessment ofmateriality and testing scopes tothe extent possible and presentation of audit
plan.
° Preparation and communication ofaudit request lists and work papers.
^ Development expectations regarding timing and audit progress.
° Gain understanding of single audit programs and perform an analysis of potential major federal
programs.
CITY OF CAMPBELL
Interim fieldwork —Single audit
Our approach to performing the single audit is broken into three different phases:
• Phase I — Risk assessment and planning.
• Phase II — Major program testing.
• Phase III —Assessment and reporting.
Phase I — Risk Assessment and Planning
This phase basically encompasses the planning and risk assessment of your federal programs. The
planning phase, if done correctly, will set the tone of the single audit as well as set the stage for an efficient
and effective single audit. We will work closely with management to properly identify federal programs
and clusters to determine the major programs to be tested.
The steps associated with risk assessment and planning include_
• Determine grant awards and funding increments.
• Determine the Type A and Type B thresholds.
• For any programs above the threshold (Type A) perform a review of the past two single audits and
document the program risk to determine if the program is high risk or low risk.
• Make final determination of major programs to be tested based on the above steps.
• Review the applicable Uniform Guidance Compliance Supplement for any unusual items for each
of the major programs, as well as determine which compliance areas are direct and material for
each major program.
Phase 11— Major Program Testing
After making the major program determination as noted above, we will test the major programs. Our
steps for each major program is as follows:
• Obtain the audit steps from the Compliance Supplement which provides the audit steps for each
major program.
• Based on the direct and material compliance areas identified during the planning phase, obtain
from management the process and controls relating to those direct and material compliance
areas. The controls for each compliance area need to address the five components of Committee
of Sponsoring Organizations of the Treadway Commission (COSO) as required by Uniform
Guidance.
• Select samples for control and compliance testing.
• Perform control testing for effectiveness and compliance testing of selected transactions.
• Report any material weaknesses or material noncompliance to the City's management.
• Provide periodic meetings to discuss the status of the Single Audit testing. Any potential findings
are discussed with management while our auditors are in the field and are concluded during
fieldwork.
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CITY OF CAMPBELL
Phase III — Assessment and Reporting
The above steps are based on the preliminary SEFA. Once the SEFA has been finalized, we will determine
if any additional major programs are to be tested. We will perform the following steps:
• If additional major programs have been identified, perform the steps as noted in the major
program testing for the new programs.
• Review the prior findings, if any, and perform steps to determine if the findings were cleared by
management and do not need to be reported during the current year.
• Prepare the Schedule of Findings and Questioned Costs.
• Have an exit conference with management and key grant personnel and provide a draft report of
the single audit as well as any Yellow Book findings required to be reported. These findings are
reviewed by the manager and engagement partner prior to the exit conference. This is done so
there are no surprises after we pull out of the field.
Interim Fieldwork — Financial Statement
• Discussions with management to determine internal controls, perform walk-throughs and discuss
any potential audit issues.
• Determine audit procedures by area, based on results of audit planning and risk assessment.
• Determine confirmation needs.
• Prepare listing of audit information requested from the City.
• Review minutes, resolutions and ordinances.
• Perform tests of legal compliance.
• Weekly updates to the City staff.
• Exit conference with management_
Final Fieldwork
• Audit areas based on risk assessment.
• Obtain and prepare schedules and analyses supporting the financial information.
• Discuss findings with management, if any.
• Discuss proposed journal entries with management, if any.
• Finalize single audit testing.
• Weekly updates to the City staff.
• Exit conference with management.
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CITY OF CAMPBELL
Reporting
• Review of the financial statements by the partner over the engagement
• Review of financial statements by a partner not otherwise associated with the audit to obtain a
"second opinion" on the completeness and adequacy of financial statement disclosures and audit
procedures.
• Completion of management letters and review with management.
• Preparation of other communications to management and Board.
• Assistance with preparation of the Data Collection Form and the preparation of the reporting
package for submission to the Federal Audit Clearinghouse.
• Presentation to Board at its regularly scheduled meeting, if requested.
Ongoing Communication
• Obtain interim financial statements throughout the year for review
• Analyze significant changes and identify areas to further tailor our audit plans and to keep us up-
to-date with continuing changes
• Compare the interim results to year-end results for the past few years to identify potential issues
in the financial reporting process
• Participate periodically at your Board meetings, and any other meetings, at the Council's request
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CITY OF[AMPDBi
Using Information Technology Auditors
As part of any financial nvdh' Bde 8niUy is required under auditing standards to obtain a sufficient
understanding of the accounting system and technology environment in order to plan the audit. It is our
philosophy to not only meet but also exceed this requirement by involving Bde BoiUy's dedicated
technology specialists toparticipate inaudits asdeemed appropriate.
Our IT methodology is based on American Institute of Certified Public Accountants (AICPA) guidelines, the
internal controls framework prescribed by Committee of Sponsoring Organizations of the Treadway
Commission (COSO), and the best practices for technology controls as defined by the Control Objectives
for Information and Related Technology ([00T) developed by the Information Systems Audit and
Controls Association (ISACA)- When auditing the technology environment, we evaluate both the general
technology controls and specific application controls that are in effect. This requires our |Tauditors to
consider how the accounting systems, infrastructure, processes and people work individually and together
to ensure that financial records are being appropriately processed and reported. As such, we must work
with IT staff to assess hnvv the relevant systems and technology environment are administered and
supported, and with accounting staff toevaluate how financial data isprocessed and system controls are
maintained toenforce segregation o[duties.
Bde8ai|lyhas extensive experience integrating avariety of|Tservices into our audit engagements across
organizations in the public, private and nonprofit sectors. These experiences include auditing of IT
operations, security and software development as well as conducting both internal and external network
vulnerability tests. In addition' we have former federal and local |avo enforcement computer forensic
specialists that utilize the latesttools to analyze and investigate digital media for a wide range of purposes,
We have seasoned professionals with years cfrelevant technology experience, many of whom carry a
myriad of certifications, including the following designations:
^ Certified Information Systems Auditor (^Osx^
° Certified ioRisk and Information Systems
contrv|(^cmsc^).
° Certified Information System Security
proferwnno|(^Ossp~).
° Certified Information System Manager (^osmr)
° Certified Financial Systems Auditor (^cBA^).
° Certified Ethical Hacker (^[Ex^).
° Certified Public Accountant (^[px^).
° Certified Common Security Framework Practitioner
(^ccspp^).
° o|AC Security Essentials Certification ("GSEc ),
° Certified Internal Auditor (^ox^).
° Certified Government Audit Professional (^[Gxr).
" Certified Risk Management Assurance (^CKwx.).
^ Certified Information Technology Professional
(^C|TP^).
• Certified Penetration Testing Engineer ("CPTE").
Our experience with audits of various entities requires adherence to various standards surrounding
internal controls including the [05O Framework, generally accepted government auditing standards
(GAGAS) and Federal Information System Controls Audit Manual (FISCAM). We work with all our clients
to help them understand the updated COSO framework. We have conducted training on COSO and risk
assessments nationwide and believe we will add value and improve the effectiveness of the risk
management, control and governance processes.
CITY OF CAMPBELL
Use of Technology
Eide Bailly staff utilizes progressive and effective software to streamline processes and make them as
efficient as possible. These technologies include:
EB Connect (Client Portal)
The Eide Bailly Client Portal is the standard for delivering electronic documents in a secure manner to
and from our clients. Email is not a secure means of exchanging documents and our client portal can
handle much larger files than email.
Clients know their confidential information is secure and safe and appreciate the improved
organization, documentation and communication by using the Client Portal. Many efficiencies are
created by leveraging technology and sharing information and knowledge on the Client Portal and
result in reducing the amount of time needed on site during an engagement.
Eide Bailly performs all engagements in a paperless environment. By utilizing paperless processes, we
are able to bring experts from across ourfirm into every engagement. What this means to you —better
service, timely reporting and cost-effective solutions.
Data Extraction Software
Eide Bailly designs our approach to incorporate the use ofTeamMate Analytics--to maximize efficiency
while conducting a very effective audit. Through TeamMate, we can extract information from related
databases and create databases that check forduplicate payments, summarize payments, and extract
journal entries from specific accounts, develop expectations for analytical procedures and recalculate
system calculations among a host of other procedures that are developed by our audit team.
Other Tools
• Accounting Research Manager (ARM) — Internet access of all accounting and auditing standards.
Areas include GASB, FASB, AICPA, PCAOB and other resource material. We can access this material
at any given time and can provide a quick response to any technical question you may have.
• CCH ProSystem N Engagement by Walters Kluwer —Software to facilitate the audit, retains the
electronic workpapers and supporting documentation, performs project tracking, and facilitates
quality review.
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CITY OF CAMPBELL
Supervisory Review and (duality Control Procedures
All of our documents have levels of review. The various levels are determined by our risk assessment
during the planning stages of the audit. Typically, a review will include the following:
Seniors will review all work performed by staff.
Managers will review work performed by seniors as well as review key significant areas that was
prepared by staff and reviewed by the senior. Some of these areas include accounts receivable,
investments, capital assets, long term debt and pension liabilities, other liabilities, net position
classification and single audits.
• Partners will review areas that are deemed high from a risk perspective as well as the single audit.
® Technical review will review the report for proper and technical aspects making sure everything
is report properly. As a firm, we require all single audits and reporting to be reviewed by another
partner with specific government experience.
We will hold an exit conference with management and provide periodic written or oral reports on the
status of the audit to representatives of the City. The success of the audit is dependent on the amount of
open communication throughout the year and not just during the audit period. We will work closely with
management and the accounting personnel throughout the audit process and will hold weekly meetings
to go over open items as well as discuss any potential accounting or compliance issues identified during
the audit. We believe in no surprises. When we perform the exit conference, we will hold a final discussion
on any potential findings and will come to a conclusion during the conference. Our goal is to have no
additional findings subsequent to the exit conference.
Analytical Procedures
Eide Bailly will apply analytical procedures throughout general planning to improve our understanding of
your operations and to identify audit areas for increased attention. These will be applied to assist in
planning the nature, timing and extent of other procedures. They will be applied to all balance sheet,
revenue/receipt and expense/expenditure areas. These procedures include, but are not limited to, the
comparison of current year to prior year and budget amounts. Areas that show results different from
those anticipated or planned will be further investigated to determine the validity of the variance.
During the year-end audit fieldwork, we use analytical procedures to test whether errors affecting account
balances or classes of transactions have occurred by comparing the recorded amount with an
independently developed expectation of that amount. We develop the expectation in such a way that a
significant difference between the expectation and the recorded amount is indicative of a financial
statement misstatement, unless we can obtain and corroborate explanations for the difference.
Analytical procedures are a natural extension of our understanding of your business because the key
factors that influence your business may be expected to affect the financial data.
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CITY OF{AMP8[U
!nthe audit reporting phase, weperform afinal analytical review atthe financial statement level as the
last step to ensure that we have gained a comprehensive understanding of the financial statements during
the audit engagement and to determine whether the financial statements are appropriately presented
and contain appropriate disclosures. Such final analytical procedures highlight and explain significant
changes from the previous year and ensure that such changes are consistent with the knowledge of your
business and our audit evidence. These procedures typically consider trends based on several previous
years instead ofcomparison only with the prior period.
internal Control Structure
A significant aspect of the planning process involves understanding each reporting units' internal control
environment, including information technology (IT) controls and, where relevant, testing cfinternal
controls.
The following is a summary of the process Eide 8ai|ly uses regarding internal controls over financial
reporting and compliance:
Internal Controls over Financial Reporting
Our approach will start with any documentation related to internal controls that have already been
developed. We review that documentation to obtain an overview of the internal control system and then
conduct interviews with the City's staff to complete the documentation of our understanding related to
internal controls and significant changes each year.
After conducting the interviews, wewill evaluate the internal control system design and expected operating
effectiveness for significant areas depending on the reporting unit. We expect that by completing control
testing in these areas, itwill allow us to reduce substantive testing and conduct an efficient audit, Our
approach toward control testing will be focused on key process controls or overall system controls, rather
than detailed control process testing. We will also focus on key IT related controls in process areas such as
revenue, payroll and claims, osthey tend to allow more efficiency for an audit perspective relative tuthe
control process.
Eide Bailly utilizes a risk -based approach incorporating both control testing and substantive testsofbo|ances'
where appropriate. In certain areas that we do not consider as significant, we will plan to conduct the audit
using aprimarily substantive approach. |thas been our experience that itisoften more efficient and effective
to substantively audit a balance rather than complete an extensive control test.
Internal Controls over Compliance
our approach for internal controls over compliance associated with federal programs is similar tothe
approach regarding internal controls over financial reporting related to accumulation, documentation,
and evaluation ofthe control environment.
Test of controls over compliance are required for major federal programs. Our approach btu identify key
controls applicable to direct and material compliance requirements for testing, as well as incorporating
results from tests nfinternal controls over financial reporting and IT.
CITY OF CAMPBELL
The approach wewill take togain anunderstanding ofyour internal controls includes:
• Interview the City personnel.
° Review organizational charts, accounting and procedure manuals and programs.
• Complete internal control questionnaires,
" Write-up system narratives.
° Evaluate items selected for testing.
° Review controls over financial information systems.
The timely completion ofthis work will assist usinperforming our work efficiently and communicate any
potential recommendations assoon aspossible.
In addition, our engagement approach is based on the following:
" Observations we believe will help the City achieve its objectives will beshared. YVewill also he
pleased to respond to inquiries you may have about financial or other business matters.
° The assistance to be provided by your personnel, including the preparation of schedules and
analyses of accounts, will bediscussed with the finance department. The timely completion of
this work will assist us in performing our work efficiently.
Statistical Sampling
Sampling may be performed for tests of controls, compliance testing and substantive tests of certain
accounts and transactions. During our audit cfbasic financial statements, we will also select various
transactions for testing based on materiality assessed at the appropriate level. These transactions may
include such items ascapital asset additions, expenditures, subsequent disbursements and subsequent
receipts. We will be pleased to discuss specific sample sizes and selection methods when they are
determined, either during audit planning orduring fieldwork,
We will select the appropriate sample size to support our conclusions in compliance with laws and
regulations. We will use confirmations in the areas of cash and investments, receivables and other areas
deemed necessary.
Determining Kmm/s and Regulations Subject to Audit Test Work
During the planning process, we will also discuss with the City management and personnel the laws and
regulations to which the City is subject. The objective ofour discussion will be to determine those laws
and regulations that could have a material impact on the financial statements and those laws and
regulations pertinent to the City's federal financial assistance programs. Pertinent to our discussion will
be our knowledge of such laws and regulations, and our knowledge of Government Auditing Standards.
We are aware of the applicable requirements and consider them when determining the necessary audit
procedures for the City.
We will perform tests of the City's compliance with certain provisions of laws, regulations, contracts and
grants. We will assess the risk of material misstatement resulting from violations of laws and regulations
having a direct and material effect on the determination of financial statement amounts. These laws and
regulations can relate to items such as budgetary compliance, purchasing compliance and cash and
investment compliance, as well as single audit compliance, as applicable.
CITY OF CAMPBELL
We will combine compliance tests of laws and regulations that involve the inspection of documentation
supporting transactions with substantive tests of transactions and tests of control procedures. Our audit
will meet all federal and state requirements, as applicable. Samples will be used to the extent necessary
to support our conclusions on compliance with laws and regulations.
Ability to meet deadlines and shorten the time in the field
We understand the frustrations of an audit firm not meeting your stated deadlines. We commit that we
can, and will, meet your deadlines as well as shorten the amount of time needed in the field. Our
experience with other governmental audits has enabled us to fine-tune our audit process. This translates
to a smooth and more efficient audit for you while meeting your deadlines and keeping our fees at a
reasonable rate.
Multi -Year Approach
We attempt to retain the majority of the audit team in order to develop a historical perspective of the
operating and control environment of the City. This historical perspective allows us a deeper
understanding of the risks surrounding the City and the opportunity to perform a thorough audit without
a learning curve, The result of our preliminary review is a planned calendar of audit events, timing and
expectations based on the budgets and related materials, organizational charts, manuals and programs,
and financial and other management information systems.
We also have the resources within our offices to change your current engagement team while retaining
the historical perspective that we gain over the years, if you feel you would benefit from auditor rotation.
The individuals in Eide Bailly's government group have extensive experience in the industry and benefit
from the firm's focus on continuing education. Our governmental professionals are well -positioned in
organizations associated with governmental entities, such as the American Institute of CPAs (AICPA) and
Governmental Audit Quality Center, the primary purpose of which is to promote the importance of quality
government audits. We have also held leadership roles in the Government Finance Officers Association
(GFOA).
We will be available to the City throughout the year as a resource to answer questions, have discussions
and confirm the appropriate accounting treatment for unique or infrequent transactions.
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CITY OF CAMPBELL
We understand your requested timeline and are committed to meeting your deadlines.
Eide Bailly commits to you that if your team is prepared for the audit when our team is in the field, we will
meet your deadlines. We will work closely with your team through the planning stages to clearly define
expectations and the items required from your team in order to facilitate an efficient audit to enable us
to meet your deadline. The following table identifies the structure of our audit for the City reports and
the timing of each section.
Activity Tng Planning March7777
Interim Fieldwork
Final Fieldwork
Exit Conference
Reporting
Ongoing Communication
June -July
September - October
September - October
November
Year Round
We will meet your deadlines. By engaging in thorough audit planning and communications with
management, we begin each engagement with a strong understanding of the various deadlines for each
of the financial and single audits and the steps involved along the way to meet these deadlines. An audit
project plan will be developed between our team and the City and then followed closely, and we will work
with the City's management team to customize our auditing services and specific timelines to your needs_
We believe in clear, up -front and open communication with no surprises.
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CITY OF[ANP8[UL
Asatop 25OPA firm, we've built our business onrelationships and believe our clients to be the best
critics of our service. The clients below have similarities to your organization, and we encourage you to
contact them to learn about their Eide Bailly experiences.
Similar Clients
City of Fairfield
Mike Less, Accounting Manager
lOOUWebster St,Fairfield, [A 94533
707.428.7515
m|ess@fairheN.oa.gov
Most recent audit: Fiscal year ended June 38'
IO19,Number ofYears: 6+
Total Hours: Approximate|y9O0
Scope ofWork:
Comprehensive Annual Financial Report — GFOA
Fairfield and Suisun Transit Enterprise Fund,
So|anoCounty Animal Control Authority, Single
Audit, State Controller's Reports, GANMLimit
Agreed Upon Procedures, Golf Course Agreed
Upon Procedures
Sports Restaurants' Inc. Agreed Upon Procedures
HUDREA[
City of Walnut Creek
]ohnFurtodu Finance Manager
1666N.Main St, Walnut Creek, [A 94596
(925)943'5808
Furtado@wa[nut-ceek.org
Most recent audit: Fiscal year ended June 30'
2Ol9Number ofYears: 6+
Total Hours: Appmwimate|y6UU
Scope of Work:
Comprehensive Annual Financial Report —GFO4`
Single Audit, and GANWLimit Agreed Upon
Procedure
City of Capitolu
Jim Malberg,Finance Director
/ma|berg@d,capkuacaus
4ZU[apho/aAve, [apho|a,CA9S0l0
831.475'7300
Most recent audit: Fiscal year ended June 3U,
ZU19'Number ufYears: 3+
Total Hours: Approxmately6UO
Scope of Work:
CompnahenskmAnnualRnanda|Repurt—GFOA
Measure Dsales tax, Single Audit, GANNLimit
Agreed Upon Procedures
City of Glendale
Shu-JunLi, Deputy Director ofFinance
G13E.Broadway, Glendale, CA 91206
818.548.I085
s|i@g|enda|eca.gov
Engagement Partner: David Showalter
Most recent audit: Fiscal year ended June 3O.
2O19Number ofYears: S+
Total Hours: Appnoximate|yW0U
Scope ofWork:
Comprehensive Annual Financial Report —GROA,
City ofGlendale Housing Authority, City uf
Glendale Water and Power, HUD REAC,Single
Audit (Section W)'GANNLimit Agreed Upon
Procedures
TVx0 of HillshO0Ugh
Jan Cooke, Finance Director
16OOFloribunda Avenue
650'375-7408
/cnoke@hi||sbomugh.net
Most recent audit: Fiscal year ended June 3O'
ZO19'Number ofYears: 3+
Total Hours: Approximate\y5O0
Scope of Work:
Comprehensive Annual Financial Report —GFOA
Measure A,ABl6UOS8l78lGANNLimit Agreed
Upon Procedures
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To us, work isn't just work; we see it as a chance to help you solve problems, achieve goals and pursue
passions. After thoughtfully reviewing your needs and taking the time tounderstand your business, we
feel we're the best fit for this opportunity.
We can connect you with the knowledge, resources and solutions that help bring confidence to your
business decisions. We want to work with you!
If you have questions or would like additional information, don't hesitate to contact us. We want to
make sure you have everything you need to make your decision.
Ahmod Ghoro[bmh, CPA
Partner
6S0.45L0400
aghamibeh@ekdebaU|y.com
What inspires you, inspires us.
We're driven to help clients take on the now and the next with inspired ideas, solutions and results. We
look forward to working with you.
311 eideb 0V.mm
CITY OF CAMPBELL
DAVID SHOWALTER, CPA
Partner
INSPIRATION: I truly enjoy serving my clients and assisting them with complex
accounting and financial reporting issues. What really excites me is developing long-term
business relationships with my clients and building an that trust and relational experience
to continuously provide the highest level of service.
916.999.8502 1 dshowalter@eidebailly.com
David has focused his practice on conducting audits and advisory
services for state, regional and local governments, including state
departments, counties, cities, special purpose governments, utilities,
transportation, First 5 commissions, and health care providers. He is
responsible for the oversight of audit and advisory engagements and
also, as appropriate, for the recommendation of internal control
structures and best practices.
Previously, he worked for one of the international Big 4 accounting
firms working within the SEC and governmental arena and providing
assurance services to manufacturing, retail and service entities,
including SEC reporting and filing. His combined experiences have
provided a base for his clients to trust the reliability and accuracy of the
accounting and compliance information that he provides.
The healthcare industry is one that continues to grow rapidly within
California, and the regulatory environment continues to provide our
clients with challenges in meeting the needs of the public while
adhering to the reporting and compliance requirements that come
with receiving federal and state dollars. The hospitals and healthcare
facilities that David works with include both nonprofit organizations as
well as governmental healthcare facilities.
David provides annual training to firm staff through in-house
continuing professional education to ensure consistency and
knowledge are not just at the partner level but also with the entire
team providing services to our clients. He also provides annual audit
and accounting updates for many of his governmental clients and
industry groups.
32 1 eidebailly.com
Memberships
American Institute of Certified
Public Accountants
California Society of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Science, Business
Administration, Accounting —
California State University, San
Bernardino
CITY OF CAMPBELL
David's clients trust his level and depth ofknowledge ofthe reporting
and compliance requirements under generally accepted accounting
principles, including changes promulgated through the Governmental
Accounting Standards Guard (GASB)' Financial Accounting Standards
Board (FAS8)'Generally Accepted Government Auditing Standards and
the Federal Uniform Guidance. With David's experience working with
a variety of governmental, healthcare and not -for -profit enhdes, he
provides a unique perspective to his clients and in the evaluation of
their financial reporting, internal controls and governance.
Outside ofwork, David enjoys spending time with family, traveling and
serving in his church.
Clia/0hrk
More than l9years conducting audits cf governmental and not -for -
profit entities.
Serves onthe Ca\[PAGovernmental Accoonhog&4udhing
Committee.
Served onaconsultative group for the Governmental Accounting
Standards Board <GAS8>.
CITY OF CAMPBELL
AHMAD GHARAIBEH, CPA
Partner
INSPIRATION: I truly enjoy helping my clients. The government
accounting industry continues to change, and I enjoy assisting my
clients understand the changes and how to implement them.
650.462.0400 1 agharoibeh a@eidebailly.cam
Ahmad provides audit and accounting services to a variety of
organizations focusing primarily on municipalities, including cities,
transit water, sewer and sanitation districts, joint powers authorities,
transportation agencies, community colleges and other special districts.
He has performed the financial and compliance audits of federal awards
in accordance with OMB Circular requirements to entities receiving
over $100 million in federal funds. His Single Audit experience includes
audits of programs from the Department of Transportation,
Department of Education,. Department of Defense, Department of
Health and Human Services and a variety of other agencies. In addition
to audits of governmental agencies, he provides audit and accounting
services to commercial industry entities, including health care and
manufacturing.
Ahmad is a speaker at many of the municipal CaiCPA local chapters
including Monterey Bay/Santa Cruz, Alameda and the Peninsula local
chapter of the CSMFO.
Ahmad is lead of the governmental audit practice in the bay area and
services clients with revenues exceeding one billion dollars. He has
over 20 years of experience in auditing public agencies.
Ahmad provides other services to his governmental clients which
includes forensic auditing, internal audit services and consultation on
various aspects of accounting for municipal agencies.
Ahmad has advised and assisted many clients with disclosure and
financial reporting requirements pursuant to the GFOA certificate
program.
34 1 eidebaiily.com
Memberships
American Institute of Certified
Public Accountants
California Society of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Masters of Accountancy —East
Tennessee State University
CITY OF CAMPBELL
| � �
��8��kDwa[/ [PA
Manager
Joe has over hyears of experience assisting clients with their assurance
needs. Throughout his career, hehas specialized inperforming audits of
governmental entities including cities, special districts, state agencies and
stand-alone enterprise funds. Joe also has extensive experience in
performing single audits and cu,isnnn d/c^u to ensure they comply the
requirements of the Uniform Guidance.
Asolead project manager, Joe manages all parts ofthe engagement from
start to finish and serves as o resource for any client needs. Joe has
experience in leading assurance engagements for ovariety ufclients, from
larger =nnoeo that hold financial statement line items worth billions of
dollars to nnnU special districts. He believes that proper p|ovnmg'
organization and on -going communication throughout the year are the keys
to o `voaz,fv| engagement for entities of any size. He o|=oys delivers
timely work to meet her clients' internal and ememo| deadlines and he is
ovoi|o6|e to serve as o resource and assist clients throughout the year. He
also provides insight mclients vnissues that may arise including complex
accounting transactions, new accounting standards and understanding best
practices /ninternal controls.
Joe has provided oammo to our ovdn associates through in-house
conferences lo ensure consistency and knowledge throughout the entire
team providing services to our d/r"u. He also provides training on audit
and accounting updates for many ofhis governmental clients and presents
at Continuing Professional E6mconoo ([PE)events hosted by the firm for our
governmental clients and industry groups.
Client Work
Membersifips
American Institute of
Certified Public
Accountants
California Society of
Certified Public
Accountants
Devgnnlion/Licensores Certified
Public Accountant
@omtim
Masters cfAccounting and
Financial Management —
Keller Graduate School of
yNanaVemen,
Bachelor of Science
BusineoAdminigmdon-
Univer hyof[a|Komia'
Riverside
Worked with various governmental entities leading assurance engagement teams through planning,
performing and supervising engagements.
Experience providing financial statement auditing and compliance testing, including single audits
required byUniform Guidance.
Serves as a resource to provide expertise on accounting issues throughout the audit processaowell as
the rest ufthe year.
CITY OF CAMPBELL
JAMES W RAMSEY, CPA, CFE
Senior Manager
INSPIRATION: My favorite part of the job is getting to know my clients and providing
them with excellent service. I particularly enjoy when they bring a complex problem
that requires a lot of collaboration and research.
916.999.8511 j jramsey@eideboilly.com
James provides accounting, assurance, and advisory services to
governmental agencies throughout California. His expertise includes
audits of governmental agencies, nonprofits and large Single Audits.
James is also a presenter for his clients presenting on topics including
the Single Audit and updates to U.S. GAAP.
Before going into public accounting, James began his career in the
Finance department of a small city and performed most, if not all, of
the functions of a finance department during his seven years there.
This unique background and expertise allows James to provide more
focused advisory services and solutions to his clients.
When not working, lames unplugs by going on a long run on the
American River Parkway in Sacramento or in the trails around Lake
Tahoe.
Client Work
Provides audit and other assurance services to governmental and
nonprofit clients of varying sizes.
Communicates and presents on upcoming changes and
implementation of U.S. GAAP and Single Audits.
36 1 eidebailly.com
A
Memberships
American Institute of Certified
Public Accountants
California Society of CPAs
Association of Certified Fraud
Examiners
Design ation/Licensures
Certified Public Accountant
Certified Fraud Examiner
Education
Bachelor in Business
Administration with an emphasis
in Accounting - California State
University, San Bernardino
Masters in Accountancy -
California State University, San
Bernardino
CITY OF CAMPBELL
TOMMY BOWEN CPA
Senior Associate
916,999.8514 1 tboi,/en@eidebailly.com
Tommy has worked in Public Accounting for over 6 years, working
both in both in Tax and Audit. He specializes in city and county
governments, including those with successor agencies, and special
districts.
His experience in audits includes servicing a variety of governmental
agencies from cities and counties to special purpose governments
including water and sanitation districts and a variety of component
units.
Client Work
Executed and supervised successful audit engagements to various
governmental clients.
37 1 eidebailly.com
Memberships
American Institute of Certified
Public Accountants (AICPA)
California Society of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Liberal Studies,
California Polytechnic State
University, San Luis Obispo
Master of Science,
Accountancy Master of
Science, Taxation California
State University, Sacramento
CITY OF CAMPBELL
We are proud to include David Sundstrom as an Internal Audit and Governmental Implementation
specialist; David was most recently a board member for the Governmental Accounting Standards Board
(GASB). Prior to his service with the GASB, his reputation as auditor/controller for Sonoma and Orange
Counties, the former Auditor for the 22 campus California State University system, among other
governments throughout California is beyond reproach.
Statement of Education
and Training Programs
Directly Applicable to
this Engagement for
David Sundstrom:
David Sundstrom, CPA, CIA
SENIOR MANAGER OF GOVERNMENT PRACTICE — INTERNAL AUDIT
T: 916.246.4740 EMAIL: DSUNDSTROM@EIDEBAILLY.COM
David delivers projects that concentrate on economy, efficiency, and the
effectiveness of operations. He has a well -established record of being a
champion of transparency. David is an exceptional listener and uses a
systems approach to identify impairments to achieving peak performance
and to exploit opportunities.
Client Work
Established internal audit functions at the University of California, Davis, the
California State University System, the County of Orange and the County of
Sonoma.
Led successful (on time, under budget and within scope) financial and personnel
system implementations.
Restructured county retiree medical program eliminating a liability of $943
million.
Co -developed 38 standards of the Governmental Accounting Standards Board.
Helped move a county bond rating from unrated status (bankruptcy) to AA+.
Governmental GAAP Update (Instructor)
3
California Society of CPAs Government Accounting and Auditing Conference
6
Government Finance Officers Association Annual Conference
16
Developing an Internal Audit Function (Instructor)
3
Internal Audit Summit
9
California Association of County Auditors State Controller Annual Conference
1 16
GASB At 35
4
GASB Board Member Meetings (Author)
20
38 J eidebailly.com
Statement of Education
and Training Programs
Directly Applicable to
this Engagement for
Eric Berman:
CITY OF CAMPBELL
Eric Berman, CPA, CGMA
PARTNER OF GOVERNMENT PRACTICE
T: 208.424.3524 EMAIL: EBERMAN@EIDEBAILLY.COM
Eric is a nationally recognized speaker, author, thought leader and auditor
with a wealth of government client experience. He brings a unique
perspective to the firm's clients as a former Deputy Comptroller of the
Commonwealth of Massachusetts, a chief financial officer of a state agency
and an audit partner with clients ranging from a well-known stadium to
statewide pension systems.
Client Work
Helped government entities across the U.S. understand and implement GASB
Standards.
Consulted with state and local governmental clients with governmental
accounting, auditing and controllership services.
Assisted clients in earning the Government Finance Officers Association Certificate
of Achievement for Excellence in Financial Reporting.
Authored the entire governmental library of reference information and audit
programs for CCH Wolters Kluwer.
Served as Deputy Comptroller of the Commonwealth of Massachusetts for 11
years and held the position of Chief Financial Officer of the Massachusetts Water
Pollution Abatement Trust for five years.
GAS_B statement No. 87, Leases "Getting Going, and a Deeper Dive PART 2
3
In Focus' CAG8 Implementation Guides for Fiduciary Activities and Leases
2
2019 NASACT Annual Conference
11.5
Governmental and Auditing Update Conference 2019
1G.5
2619 Professional oevelo went Trainin AGA
7
2019 GAQC Annual update Webcast
2
GASB Leases; What Pre raters &Auditors Need to Know to be Read for till nlementa[ion
2 _
Association of GavernmelitAccountanls- Principal _
2
A&A Update 2019 (Instructor credit)
16
_Governmental
Iowa Governmental Roundtable
2
Governmental Accounting and Auditing Conference
30.5
Governmental ARA update 2018 (I11st1*L1ct0( Credit)
16
2017 NASACT Annual Conference
1s
Governmental Accounting Basics _
3.5
,n, nm,nnn rTnininu
18
In addition, there are 40 hours each for CCH's Governonental GAAP Guide, Governmeotaf Practice
Monuot and Governnteutal GAAP Update Service for 2017, 2018 arld 2019 (360 hours).
39 1 eidebailly.com
CITY OF CAMPBELL
We pride ourselves on being leaders in the government industry, offering valuable perspectives beyond our core
strength of accounting and tax compliance. We're business advisors who want to help guide the strategy and
operations of your organization, and we'll make sure you feel connected and understand the process. Our
professionals work closely together so you receive valuable service from people who understand your needs and
know your business.
When you work with us, you'll have access to the knowledge and talents of 2,500 professionals across our firm.
This includes specialized tax knowledge, a full spectrum of audit/assurance services and our many specialized
services, such as:
Cybersecurity
Our professionals have deep IT backgrounds, specializing in a broad range of security services allowing us to
tailor solutions to your needs. We work with every level of your organization —your boards and executives,
technical IT admins and general users —to provide insight and guidance so you can feel confident your data is
protected.
Internal Audit
Our internal audit professionals bring strong process, procedure, internal control and risk management
experience to your organization. We bridge these skills with specialized insight related to risk and compliance
and specific industry knowledge to help your organization reduce risk and improve operational efficiency.
Forensic Accounting
We have seasoned professional with years of relevant investigative experience. We have served several hundred
clients, including numerous governmental entities, with investigative needs.
Our forensic accountants are experienced in assisting with internal, civil, criminal and insurance recovery
investigations related to allegations of theft, fraud and accounting irregularities. The forensic methodologies and
technology used by our team of specialists help get to the facts of these situations and are court proven. We
understand the urgency of resolving these types of matters and take pride in delivering a quality work product in
an efficient and timely matter.
40 1 eidebailly.com
CITY OF CAMPBELL
1
The City has the following available to it at any time:
• Internal Audits
• Performance Audits
• Technology Consulting
• Enterprise Risk Management
• Financial Services
• Forensic & Valuation
• Transaction Services
• Wealth Management
• Cyber Security
• Data Analytics
• Audits
• Compilations
• 401(k) and Employee Benefit Plan Audits
• International Financial Reporting Standards
• Reviews
• Agreed Upon Procedures
• SEC Services
+ Service Organization Control (50C)
+ Single Audits
• Cost Segregation Studies
• Estate, Trust & Gift Services
• International Tax
• Lo:v Income Housing Credits
• R&D Tax Credits
• State & Local Tax
• Tax Authority Audit &
Correspondence
• Tax Planning & Preparation
• Tax Research
We invite you to view our website and learn more about the many services we offer: twww.eidebailly.com.
Eide Badly is seeing an explosion of interest in the areas of Cybersecurity, Internal Audit and Forensic
ACCounting in state and local governments nationally. We address these areas as follows.
411 eidebailly.com
KEEP AN EYE ON
THE HORIZON
January 6, 2020
Sealed Cost Proposal
CITY OF CAMPBELL
Submitted By:
Eide Bailly LLP
Ahmad Gharaibeh, CPA
Partner
260 Sheridan Ave, Suite 440
Palo Alto, CA 94306
CITY OF CAMPBELL
Total All -Inclusive Maximum Price
The total all -Inclusive Maximum Price of Eide Bailly's proposal for professional auditing services of the City of
Campbell is $288,824 including optional items as listed per the Request for Proposals (RFP) numbers 8-10.
The Price of Eide Bailly's proposal excluding the optional items 8-10 is $252,396.
Affirmations
This proposal to provide auditing services is firm and irrevocable for 180 days. We affirm our understanding
of the services requested by the City, the work to be done, the time period of performance, and that the City
desires an audit firm that provides consistency with staff. Eide Bailly's philosophy is to staff each of our
audits with consistent staff in order to provide the most effective and efficient audit for our clients. As
required by the Request for Proposal our audit plan covers the engagements for:
• City of Campbell Comprehensive Annual Financial Report
• Single Audit Report on Federal Awards
• GANN Limit Audit
• The Transportation Development Act per the Metropolitan Transportation Commission requirements
• West Valley Solid Waste Management Authority Basic Financial Statements
• State Controller City Financial Transactions Report (optional)
• Annual Street Report to the State Controller of California (optional)
• Preparation of the city's GASB 68 accounting entries (optional)
Ahmad Gharaibeh, CPA is entitled to represent Eide Bailly LLP and empowered to submit this Cost Proposal
for Professional Auditing Services for the City of Campbell RFP released on November 6, 2019.
Sincerely,
Eide Bailly LLP
Ahmad Gharaibeh, CPA
Partner
260 Sheridan Ave, Suite 440
Palo Alto, CA 94306
650.462.0400
agharaibeh@eidebailly.com
CITY OF CAMPBELL
Audit Cost Proposal
We are firmly committed to providing the City of Campbell (City) with a superior level of professional
services. We strive to provide exceptional staff, quality, and value at the lowest possible fees. Our rates are
competitive, even with our depth of experience and commitment to quality. However, we do not want fees
alone to be an obstacle in the City's selection of Eide Bailly LLP. We would be happy to discuss and negotiate
such fee issues and responsibilities with you.
Service
FY 2019-20
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
City Audit and Related Reports
S 40,000
S 10,800
S 41,616
S 42,448
S 43,297
Gann Limit Review Report
500
510
520
531
541
Single Audit and Related Reports *
3,000
3.060
3,121
3.184
3,247
West Valley Solid Wate Management Authority
3,000
3,0601
3,121
3,184
3,247
TDA Article 3 Audit
2,000
2,040
2,081
2,122
2,165
Out of Pocket Expenses **
-
-
Total for Fiscal Year (not -to -exceed) Without
Optional Items
48,500
49,470
50,459
il,469
i2,498
Optional Items
Financal Transaction Report (FTR)
4,000
4,080
4,162
4.245
4,330
Annual Street Report
3,000
3,060
3,121
3,184
3,247
Assistance with GASB 68 accounting entries ***
Total for Fiscal Year (not -to -exceed) With Optional
Items
S 55,5001
S 56,6101
S 57,742
S 58,897
S 60,073
* per single audit program or cluster
* * quoted prices are fixed rate, no variable or out of pocket expenses
*** Eide Bailly will provide accounting entry assistance for GASB 68 & GASB 75 (if needed) free of charge if awarded con
CITY O[[4MPBRL
Manner ofPayment
Provided below are the details from Attachment B — in the Request for Proposal:
Name nfFirm: Eide8ai|IV LLP
Address: 2GOSheridan Ave, Suke44U
Palo Alto, CA943O6
Contact Name: AhmadGharuibeh.CPA
Contact Phone: 650.462.0400
Contact Fax: 650.462.0500
Contact E-mail: agharaibeh@eidebailly.com
Auditor's Standard Billing Rates