The PUN Group Accountants & Advisors - Cost ProposalOST PROPOSAL
CITY OF LA QUINTA
LA QUINTA, CALIFORNIA
Proposal to Perform Auditing Services
For the five (5) fiscal years ending June 30, 2017 through June 30, 2021
MARCH 1, 2017
Kenneth H. Pun, CPA, CGMA
Managing Partner
74998 Country Club Drive, Suite 220, Palm Desert, California 92260
Phone: (760) 459-8177 | Fax: (760) 459-8174 | Email: ken.pun@pungroup.com
California CPA License Number: PAR 7601
Federal Identification Number: 46-4016990
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PUN GROUP
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CITY OF LA QUINTA
Proposal to Perform Auditing Services
TABLE OF CONTENTS
1Section I - Cost Proposal
Certification
Total All-Inclusive Maximum Price
Rates by Partner. Specialist, Supervisory, and Staff Level Times Hours Anticipated for Each
Out of Pocket Expenses in the Total Maximum Price and Reimbursement Rates
Rates for Additional Professional Services
1
1
2
5
5
5Manner of Payment..
Insurance Certificate 5
CITY OF LA QUINTA
Proposal to Perform Auditing Services
SECTION I - COST PROPOSAL
Certification
We are committed to the performance of a high quality audit at the most reasonable fee level possible, both initially
and throughout the engagement. Also, our partners will provide advice and consultation as needed, at no
additional cost to the City of La Quinta.
The Pun Group, LLP
Certified Public Accountants and Business Advisors
74998 Country Club Drive, Suite 220
Palm Desert, California 92260
Name of Firm:
Kenneth H. Pun is entitled to represent the Firm, empowered to submit the bid, and
authorized to sign a contract with the City of La Quinta.
Certification:
•/
Kenneth H. Pun, CPA, CGMA | Managing Partner
The Pun Group, LLP
Total All-Inclusive Maximum Price
Following are our total fixed fees the five (5) fiscal years ending June 30, 2017 through June 30, 2021.
Total 5'Year
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 EngagementWor1( to be performed:
Audits of Financial Statements and Opinion:
148,3151) City of La Quinta 28,500 29,070 29,651 30,244 30,849
S2) Housing Authority 8,000 8,160 8,323 8,490 8.659 41,632
3) Successor Agency $8,000 8,160 8,323 S 8,490 8.659 41,632
4) Financing Authority 2,000 2,040 $2,081 2,122 2,165 10,408
GANN Appropriations Limit 500 510 520 531 541 2,602
SSingle Audit - 2 programs 7,000 7,140 7,283 S 7,428 7,577 36,428
Additional Consulting Hours (40 hours partner/manager)5,000 5,100 5.202 S 5,306 $5,412 $26,020
Annual State Controller's Report $3,500 3,570 3,641 S 3,714 $3,789 $18,214
$ 62,500 $ 63,750 $ 65,025 $ 66,326 $ 67,652 $ 325,253Total AINnclusive Maximum Price
*Based on the information provided by the City of La Quinta and our understanding of the engagement, the City is
subject to the Single Audit Act in accordance with 0MB Uniform Guidance. The Single Audit fees are based on (2)
two major programs. If the City of La Quinta applies for additional funding subsequent to the preparation of this
proposal, the fee to audit additional major programs will be $3,500 each. The number of programs determined to be
“major" will be based on 0MB Uniform Guidance. The Engagement Team will discuss this with the City’s
Management before starting Single Audit work.
1
CITY OF LA QUINTA
Proposal to Perform Auditing Services
Rates by Partner, Specialist, Supervisory, and Staff Level
Times Hours Anticipated for Each
Annual
State
Controller'
s Report
(Hours)
City of La
Quinta
(Hours)
Housing
Authority
(Hours)
Successor
Agency
(Hours)
Financing
Authority
(Hours)
Single
Audit
(Hours)
Additional
Consulting
(Hours)
Quoted
Hourly
Rates
GANN Limit
(Hours)Total
Partners 24 8 8 8 1 6 20 5 $ 225 $18,000.00
^tenagers 32 10 10 10 1 9 20 S5 200 $19,400.00
Supervisory Staff 50 10 10 10 1 10 0 5 $ 175 $ 16,800.00
Senior Staff 50 16 16 16 0 16 0 5 $150 $17,850.00
Staff Accountants 60 20 20 20 1 20 0 0 $125 $17,625.00
Clerical 4 2 2 2 0 0 0 0 $75 $ 750.00
Out of Pocket Btpenses Amount
Meats and Lodging Included
Transportation Included
Less FYofessional Discount:S (27,925)
Subtotal 62,500
Total All-Inclusive Maximum Price
for Fiscal Year 2016-17 Audit
$ 62,500
^nfrula^
Slate
Controller'
s Report
(Hours)
City of La
Quinta
(Hours)
Housing
Authority
(Hours)
Successor
Agency
(Hours)
Financing
Authority
(Hours)
Single
Audit
(Hours)
Additional
Consulting
(Hours)
Quoted
Hourly
Rates
GANN Limit
(Hours)Total
Fortners 24 8 8 8 1 6 20 5 $ 225 $18,000,00
Managers 32 10 10 10 1 9 20 5 $200 $19,400.00
Supervisory Staff 50 10 10 10 1 10 0 5 $175 $16,800.00
Senior Staff 50 16 16 16 0 16 0 5 $ 150 $17,850.00
Staff Accountants 60 20 20 20 1 20 0 0 $ 125 $ 17,625.00
Clerical 4 2 2 2 0 0 $0 0 75 $ 750.00
Out of Pocket Expenses Amount
Meals and Lodging Included
Transportation Included
Less FYofessional Dscount:$ (26,675)
Subtotal $ 63.750
Total All-Inclusive Maximum Price
for Fiscal Year 2017-18 Audit
$ 63,750
2ID
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CITY OF LA QUINTA
Proposal to Perform Auditing Services
Annual
State
Controller'
s Repo rt
(Hours)
Additional
Consulting
(Hours)
Quoted
Hourly
Rates
Single
Audit
(Hours)
Successor
Agency
(Hours)
Financing
Authority
(Hours)
City of La
Quinta
(Hours)
Housing
Authority
(Hours)
GANN Limit
(Hours)Total
5 $ 225 $18,000.00620818824Partners
5 $200 $19,400.00920101013210Managers
$ 175 $16,800.0005101101010Supervisory Staff 50
5 $ 150 $17,850.00016016501616Senior Staff
$ 125 $17,625.000020120602020Staff Accountants
75 $ 750.000$0 0 0222derical4
AmountOut of Pocket Expenses
^lc1udedMeals and Lodging
deludedTransportation
$ (25,400)Less R'ofessbnal Discount:
$ 65,025Subtotal
$ 65,025Total All-Inclusive Maximum Price
for Fiscal Year 2018-19 Audit
Annual
state
Controller'
s Report
(Hours)
Single
Audit
(Hours)
Additional
Consulting
(Hours)
Quoted
Hourly
Rates
Successor
Agency
(Hours)
Financing
Authority
(Hours)
City of La
Quinta
(Hours)
Housing
Authority
(Hours)
GANN Limit
(Hours)Total
20 5 S 225 $18,000.008816Fortners248
$$19,400.00205200101019Managers3210
5 $ 175 $16,800.00101100Supervisory Staff 50 10 10
5 $ 150 $17,850.000160Senior Staff 50 16 16 16
$125 $17,625.002000Staff Accountants 60 20 20 20 1
0 0 $75 $ 750.00Clerical222004
AmountOut of Pocket Expenses
IncludedMeals and Lodging
IncludedTransportation
$ (24,099)Less Professional Discount;
66,326Subtotal
$ 66,326Total All-Inclusive Maximum Price
for Fiscal Year 2019-20 Audit
3I’tisc.KOur
CITY OF LA QUINTA
Proposal to Perform Auditing Services
Annual
State
Controller'
s Report
(Hours)
City of La
Quinta
(Hours)
Housing
Authority
(Hours)
Successor
Agency
(Hours)
Financing
Authority
(Hours)
Single
Audit
(Hours)
Additional
Consuhing
(Hours)
Quoted
Hourly
Rates
GANN Limit
(Hours)Total
Fortners 24 8 8 8 1 6 20 5 $ 225 $18,000.00
Managers 32 10 10 10 1 9 20 5 S 200 $19,400,00
Supervisory Staff 50 10 10 10 1 10 0 5 $175 $16,800,00
Senior Staff 50 16 16 16 0 16 0 S5 150 $17,850,00
Staff Accountants 60 20 20 20 1 20 0 0 s 125 $17,625.00
Clerical 4 2 2 2 0 0 0 $0 75 $ 750.00
Out of Pocket Expenses Amount
Meals and Lodging deluded
Transportation hcluded
Less Fl'ofessional Discount:$ (22,773)|
Subtotal $ 67,652
Total All-Inclusive Maximum Price
for Rscal Year 2020-21 Audit
$ 67,652
4
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CITY OF LA QUINTA
Proposal to Perform Auditing Services
Out of Pocket Expenses in the Total Maximum Price and Reimbursement Rates
The Firm’s policy is to maintain flexible billing rates in order to meet the needs of clients and help them control
costs. In the interest of starting our long-term relationship, we will absorb all costs required to familiarize ourselves
with the operations and accounting systems, as well as, travel and printing costs. Additionally, our Partners will be
available to provide advice and consultation as necessary to the City of La Quinta. These costs will also be
absorbed by the Firm.
Rates for Additional Professional Services
Below is the Firm’s standard hourly billing rates, delineated by staffing levels:
Auditor's Standard Hourly Billing Rates
FY 2016-17Position
$Partner{s)250
Senior Manager(s)225
200Manager(s)
$175Supervisor(s)
Senior Accountant(s)150
$Staff Accountant(s)125
Clerical $100
Any supplemental reports, audits, or agreed-upon procedures not covered by this proposal may be added in a
written agreement prior to commencing audit work. The Firm and the City will discuss and approve the scope and
associated costs of these tasks. Any additional work will be performed at the above quoted hourly rates.
Manner of Payment
Engagement Team members are required to maintain timesheets detailing the date, number of hours, and work
performed for every audit task. The Firm will collect these timesheets and bill the City of La Quinta, at the rates
outlined in the Total All-Inclusive Maximum Price section, in four stages; (1) at the conclusion of the planning
phase, (2) at the conclusion of the interim phase, (3) at the conclusion of the Year-End phase, (4) and after
presentation and acceptance of the final audit reports. Interim billings will cover a period not less than a calendar
month. The billing amounts generally break down as follows:
%of
FVoposal
Amount
Work Performed
10%For Panning
For Werimwork 40%
40%For Year-End work
At Presentation and Acceptance of Final Reports 10%
Total 100%
Insurance Certificate
Proof of current General Liability, Business Auto Liability, Professional Liability, and Workers’ Compensation
insurance can be found at the Appendices section under this proposal. We will provide a copy of our Certificate of
Insurance with coverages and amounts specified in the contract with the City within 10 calendar days after the
notice of contract award.
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PUN GROUP74998 Country Club Drive, Suite 220, Palm Desert, California 92260
Phone: (760) 459-8177 | Fax: (760) 459-8174 | www.pungroup.com At- lOUN i an I.s 6. ADV L-,OR>