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Brown Armstrong CPA- Cost ProposalCertified Public Accountants A Jf ^ V Proposal for Auditing Services Eric H. Xin, CPA, MBA/Partner E: exin@bacpas.com i City of La Quinta March 1, 2017 T: (661,) 324-4971 4200 Truxtun Ave., Suite 300 Bakersfield, CA 93309 I A J V r ,t , iSw COST PROPOSAL BROWN Armstrong f n r**I I • 1. Total All-Inclusive Maximum Price a) Name of Firm: Brown Armstrong Accountancy Corporation b) Certification: Brown Armstrong certifies that the person signing the proposal is entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the City of La Quinta (the City), c) Total All-Inclusive Maximum Annual Price The total all-inclusive maximum price contains all direct and indirect costs, including all out-of-pocket expenses. The total all-inclusive maximum price, broken down by fiscal year, is as follows: June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 Total All-Inclusive Maximum Price for Fiscal Year $ 65,125 $ 65,125 $ 65,125 $ 65,125 $ 65,125 Brown Armstrong Providing Auditing Accounting Services for Over 40 Years i. Certified Public Accountants 1 COST PROPOSAL 2. Rates by Partner, Specialist, Supervisory and Staff Level Positions Times Hours Anticipated for Each The schedules of professional fees and expenses below provide the staff levels, hours assigned to these levels, and the assigned hourly rates. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES (PRICE PER YEAR) ALL SERVICES Quoted Hourly Rates Standard Hourly Rates TotalHours 50 $$135 $ 6,750L240Partners 130 190 110 14.300LManagers Supervisory Staff 14,40016015090 Staff 370 110 75 27.750L Other (Clerical)35 85 55 1.925L Subtotal 745 65.125L A Out-of-Pocket Expenses Total All-Inclusive Maximum Price for All Services $ 65,125 /r Brown Armstrong Certified Public Accountants Providing Auditing & Accounting Services for Over 40 Years 2 COST PROPOSAL SUPPORTING SCHEDULE OF PROFESSIONAL FEES AND EXPENSES (PRICE PER YEAR) CITY AUDIT Standard Hourly Rates Quoted Hourly RatesHours Total Partners 32 $240 $135 $ 4,320 Managers I 70 190 110 7,700 Supervisory Staff 70 150 90 6,300 Staff 280 110 75 21,000L Other (Clerical)23 85 55 1,265 Subtotal 475 40,585L Out-of-Pocket Expenses Total All-Inclusive Maximum Price for the City Audit $ 40,585 SUPPORTING SCHEDULE OF PROFESSIONAL FEES AND EXPENSES (PRICE PER YEAR) HOUSING AUTHORITY AUDIT Standard Hourly Rates Quoted Hourly RatesHours Total Partners 6 $$240 135 $810 Managers 20 190 110 2.200L Supervisory Staff 30 150 90 2,700L Staff 30 110 75 2.250L Other (Clerical)4 85 55 220 Subtotal 90 8,180L Out-of-Pocket Expenses Total All-Inclusive Maximum Price for the Housing Authority Audit $ 8,180 Brown Armstrong Certified Public Accountants Providing Auditing & Accounting Services for Over 40 Years 3 COST PROPOSAL SUPPORTING SCHEDULE OF PROFESSIONAL FEES AND EXPENSES (PRICE PER YEAR) SUCCESSOR AGENCY AUDIT Quoted Hourly Rates Standard Hourly Rates TotalHours Partners 240 $135 $6 $810 20 190 110 2,200Managers Supervisory Staff 150 90 2,70030 Staff 30 110 75 2,250L Other (Clerical)55 220485 Subtotal 90 8,180L Out-of-Pocket Expenses Total All-Inclusive Maximum Price for the Successor Agency Audit $ 8,180 SUPPORTING SCHEDULE OF PROFESSIONAL FEES AND EXPENSES (PRICE PER YEAR) FINANCING AUTHORITY AUDIT Standard Hourly Rates Quoted Hourly Rates.Hours Total 6Partners 240 $135 $810 Managers 20 190 110 2,200L Supervisory Staff 30 150 90 2,700L Staff 30 110 75 2,250 Other (Clerical)4 85 55 220•k- Subtotal 90 8,180L Out-of-Pocket Expenses Tptal All-Inclusive Maximum Price for the Financing Authority Audit $ 8,180 1 I Brown Armstrong Providing Auditing & Accounting Services for Over 40 YearsCertified Public Accountants 4 COST PROPOSAL 3. Out-of-pocket Expenses in the Total Maximum Price and Reimbursement Rates All out-of-pocket expenses are included In the schedules of professional fees and expenses included in this cost proposal. In addition, for no additional cost, we will provide an additional 40 hours, above and beyond the professional times associated with the audit, of partner/manager time budgeted for research and assistance to City staff concerning accounting and other technical matters each year. 4. Rates for Additional Professional Services We do not anticipate that additional services will be necessary to complete the audit. If it should become necessary for the City to request Brown Armstrong to render any additional services to either supplement the services requested in the Request for Proposal, or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an amendment to the contract between the City and the Firm. Any such additional work agreed to between the City and the Firm shall be performed at the same rates set forth in the schedule of fees and expenses included in this cost proposal. 5. Manner of Payment Brown Armstrong agrees to progress payments on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with our dollar cost bid proposal. Interim billings shall cover a period of not less than a calendar month. We understand that final payment will be made upon delivery of the final reports. Brown Armstrong Certified Public Accountants Providing Auditing & Accounting Services for Over 40 Years 5