Badawi & Associates, CPAs
City of
La Quinta
TECHNICAL PROPOSAL
For Professional Auditing Services for
the City of La Quinta
For fiscal years ending June 30, 2024 through 2028.
December 1, 2023
Contact Person:
Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Phone: (510) 768-8244
Fax: (510) 768-8249
E-mail: abadawi@b-acpa.com
City of La Quinta
Table of Contents
Page
Letter of Transmittal ................................................................................................................................................... 1
Firm Qualifications and Experience .......................................................................................................................... 3
Independence ........................................................................................................................................................... 3
Insurance .................................................................................................................................................................. 3
License to Practice in California................................................................................................................................ 3
Conflict of Interest ..................................................................................................................................................... 3
Firm Qualifications .................................................................................................................................................... 3
Technical Approach .................................................................................................................................................. 4
Firm Experience ........................................................................................................................................................ 5
Additional Activities ................................................................................................................................................... 5
Client Training Seminar ............................................................................................................................................ 6
GASB 68 Firm Developed Tools and Assistance ..................................................................................................... 6
Flowcharting Documentation .................................................................................................................................... 6
Quality Control Review ............................................................................................................................................. 6
Federal or State Desk Reviews ................................................................................................................................ 9
Disciplinary Action ..................................................................................................................................................... 9
Litigations .................................................................................................................................................................. 9
Partner, Supervisory, and Staff Qualifications and Experiences ........................................................................ 10
Similar Engagements with Other Governmental Entities ..................................................................................... 18
Understanding of Services to be Provided ............................................................................................................ 22
Specific Audit Approach .......................................................................................................................................... 23
Objectives of Our Services ..................................................................................................................................... 23
Audit Approach ....................................................................................................................................................... 23
Technical Approach ................................................................................................................................................ 24
Use of Technology in the Audit ............................................................................................................................... 27
Audit Schedule .......................................................................................................................................................... 29
Discussion of Relevant Accounting Issues ........................................................................................................... 32
Comprehensive Cost Bid ......................................................................................................................................... 33
Conclusion ................................................................................................................................................................. 35
Appendix .................................................................................................................................................................... 36
References .............................................................................................................................................................. 36
Exceptions to the Contract ...................................................................................................................................... 37
RFP Attachment – Insurance Requirements Acknowledgement ............................................................................ 38
RFP Attachment – Non-Collusion Affidavit Form .................................................................................................... 39
RFP Attachment – Acknowledgement of Receipt Of Addenda .............................................................................. 40
December 1, 2023
Letter of Transmittal
Ms. Claudia Martinez
Finance Director/Treasurer
City of La Quinta
78495 Calle Tampico
La Quinta, California 92253
Dear Ms. Martinez:
Badawi & Associates (B&A), Certified Public Accountants (the “Firm”) is pleased to have the opportunity to respond
to your request for a proposal to provide external audit services and to submit its qualifications to perform an
independent audit of the financial statements of the City of La Quinta (the “City”) for the fiscal years ending June 30,
2024 through 2028. The objective of our audits is to issue opinions regarding the fairness of presentation of the
financial position of the City in accordance with generally accepted accounting principles. These audits are to be
performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in
the Government Accountability Office’s (GAO) Government Auditing Standards, the provisions of the federal Single
Audit Act of 1984, as amended in 1996, and the Uniform Guidance, Audits of States, Local Governments and Non-
Profit Organizations, Uniform Administrative Requirements, as well as any other applicable federal, state, local or
programmatic audit requirements.
We will also perform the following as part of our engagement:
- Single Audit
- Gann Limit Agreed-upon Procedures
- State Controller’s Report
We will also apply limited audit procedures to Management’s Discussion and Analysis (MD&A) and required
supplementary information. In addition, we will prepare the management letter containing comments and
recommendations regarding our review and evaluation of the systems of internal control and accounting procedures.
This proposal will highlight the background of the partners and staff assigned to the engagement, summarize our
experience in the governmental area, and describe our approach to auditing the City.
This proposal demonstrates our ability to render the quality examination and to perform the necessary accounting
and auditing services requested by the City on a timely basis.
As a partner of the Firm, I will be the primary contact for negotiation of the contract. Additionally, I have been
authorized to legally bind the Firm. You may contact me at the following address and phone number:
Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Telephone: (510)768-8244
E-mail: abadawi@b-acpa.com
Ms. Claudia Martinez
Finance Director/Treasurer
City of La Quinta
Page 2
2
We are committed to performing the required work, completing the audit, and issuing the necessary auditors’ reports.
We believe we are the best qualified to perform the audit because our audit staff includes individuals well versed in
municipal auditing and reporting requirements. We have performed auditing and consulting engagements for
numerous cities throughout California. We will be responsive to the needs of the City, we understand the City’s
operational environment, and pledge to you our complete commitment to providing a quality product that meets the
City’s requirements.
The approach to the audit has been designed to meet the audit requirements of the City with the least disruption to
the City’s office operations. The foundation of the audit approach is based on communication coupled with a strong
knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with
all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”.
Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit
process. Consequently, inefficiencies and disruptions are kept to a minimum. In addition, we perform almost half of
the audit tasks during the interim phase to minimize any unforeseen delays during the year-end phase and to ensure
a smooth and timely audit process.
The Firm maintains liability insurance coverage for professional liability, Workers’ Compensation, Comprehensive
General Liability and Auto as part of our comprehensive insurance policy.
The Firm is an Equal Opportunity employer and complies with all Federal and State hiring requirements. The Firm
also supports Affirmative Action philosophies and works hard to provide disadvantaged groups with opportunities for
self enhancement.
This proposal is a firm and irrevocable offer for 180 days.
We are confident that you will find our organization offers the required expertise, technical knowledge, and business
understanding to perform an audit of the City. Our past experience provides us with a thorough understanding of the
needs and requirements of the City, as well as the technical knowledge to perform such services in accordance with
the accounting and auditing guidelines as published by the various authoritative entities.
We welcome your inquiries and look forward to further discussions with you.
Sincerely,
Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants
City of La Quinta Technical Proposal
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Independence
The Firm is independent of the City of La Quinta as defined by the GAO’s Standards for Audit
of Governmental Organizations, Programs, Activities and Functions, and the AICPA and
California State Society of Certified Public Accountants as promulgated in various auditing and
professional standards.
Insurance
The Firm maintains professional liability insurance and other coverage as part of our
comprehensive insurance policy. Upon selection as the City’s independent auditor, the Firm and
our insurance provider will provide a certificate of insurance to the City which shows the
minimum requirements identified by City have been met.
License to Practice in California
The Firm and all key professional staff assigned to the City’s audit are properly licensed to
practice as Certified Public Accountants in the State of California and comply with GAO
Government Auditing Standards.
The Firm is registered with the California State Board of Accountancy. Its State number is
COR6823.
The Firm has met all required State and local laws, rules, and regulations.
Conflict of Interest
The Firm has no conflicts of interest in connection with providing the services described in this
proposal. The Firm does not have any financial, business, or other professional relationships
with the City or any member of City staff.
Firm Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 20 years of
experience working with state and local government with a special focus on cities. Prior to
founding B&A, Mr. Badawi was a partner with several local and national firms, where he headed
their government practice in Northern California. Mr. Badawi founded Badawi & Associates to
serve the fast-paced needs of California's local governments. The goal is to build a proactive,
client-focused culture from the ground up and to eliminate the entrenched bureaucratic culture
and intrinsic limitations of the big audit firms.
Located in Berkeley, CA, the Firm serves a variety of cities and towns throughout California as
well as conducting financial related services for numerous special districts and authorities.
Names and phone numbers of several of our current and past clients and other references are
provided for your inquiries. We encourage you to contact these individuals to obtain information
on the quality of the audit and the ability of the audit staff.
Our Berkeley office will be the Engagement Office assigned to the City.
In addition to specific City financial statements, the Firm members have also audited numerous
redevelopment agencies, public financing authorities, hospitals, housing authorities,
transportation authorities, special districts, water districts, OCJP grants, self-insurance pools,
joint power authorities and has also performed numerous compliance audits in accordance with
the Single Audit Act, childcare regulations, TOT regulations, AQMD regulations, franchise
requirements.
The Engagement Partner assigned to the City will be Mr. Ahmed Badawi. Mr. Badawi has over
20 years of government audit experience. He is a member of various governmental committees,
has actively participated in the development of accounting and audit guidelines for the
governmental sector, and is an instructor for the California Society of Municipal Finance
Officers.
Firm
Qualifications
and
Experience
City of La Quinta Technical Proposal
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The professional staffs assigned to the Engagement are qualified and experienced. Each
individual of the Engagement Team has several years of experience and has conducted or
participated in numerous municipal audits of various sizes. Their understanding of governmental
operations and the various authoritative guidelines will provide the where-with-all to perform the
audit in an efficient and effective manner with minimal disruption to the City’s finance
department.
Technical Approach
The approach to the audit has been designed to meet the audit requirements of the various
authorities with the least disruption to the City’s operations. The foundation of the audit approach
is based on communication coupled with a strong knowledge of City operations and detailed
planning at the initial stages of the audit. Open communication lines with all parties of the
Engagement Team and City Management and staff throughout the engagement eliminate
“surprises”. Initial planning and proper assignment of duties to experienced personnel provide
for an effective and efficient audit process. Consequently, inefficiencies, disruptions, and lack
of understanding are kept to a minimum.
The audit approach will consist of four phases:
1) Initial Planning Meeting:
The Engagement Partner and Manager will meet with City Management to discuss the audit
approach, identify specific needs of City Management, and familiarize themselves with City
policies and practices.
2) Interim:
The Engagement Team members including the Engagement Team Partner will perform the
internal control reviews, test transactions, evaluate compliance with Single Audit Act
requirements, identify potential audit issues that need to be addressed, perform limited
confirmation procedures, and develop a clear understanding between the Engagement
Team and City Management of the year-end audit responsibilities and assignments. In
addition, we strive to complete many of the year-end audit tasks during the interim
phase to ensure a smoother audit process. We will work with the City on providing a
list of those tasks that we will target to complete during interim and work with the City
on how to complete them to minimize the amount of effort and time needed at year-
end which in turn will assist the City in meeting its goal of issuing the Annual
Comprehensive Financial Report.
3) Year-end:
The Engagement Team members including the Engagement Team Partner will conduct
validation procedures on general ledger account balances, complete confirmation
procedures, perform analytical procedures on revenue and expenditures, perform search
for unrecorded liabilities, complete compliance work on Federal Assistance, and wrap up
audit field work.
4) Reporting:
Auditor’s reports for all City reporting entities and compliance requirements will be finalized
along with Single Audit Reports and Management Letter comments. The Partner and
Manager will be available to make presentations to the City Council and/or designated
bodies.
City of La Quinta Technical Proposal
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Firm Experience
The Firm is located in Berkeley and provides a full range of accounting services to governmental
agencies throughout California, including audit, tax and accounting. The Firm’s professional
staff members provide the financial background and specific experience to meet the City’s
operational needs. Additionally, this situation provides the City with an auditing firm that has
depth in capabilities to address any financial issue the City may need assistance with, and the
quality audit approach that you expect.
Our Berkeley office will be the Engagement Office assigned to the City.
Firm policy requires that the Engagement Partner, during the first year of the engagement, be
actively involved in the daily fieldwork. This means to the City that Mr. Badawi will actually be
on-site during the audit coordinating the audit process, supervising the audit staff, gaining a
hands-on understanding of City processes, and benefiting the City with his broad municipal
experience. We have found that this effort benefits the City and the Firm through developing a
thorough knowledge of the City’s practices and issues and establishing a close working
relationship with the City’s Management. Additionally, continuity of audit personnel is assured
because of the hands on involvement of the Partner.
We are committed to providing appropriate and related experience, personal involvement, and
a broad business perspective to produce a quality end product within the time frames required.
The Firm provides financial and compliance auditing services to governmental agencies
throughout California. We are a governmental agency auditing firm and our professional staff
members have been performing these services for many years. As a result, we have performed
financial and compliance audits on most, if not all, types of governmental agencies and
operations including:
Cities
Redevelopment
Agencies
Financing
Authorities
Housing Authorities
Special Districts
Water Districts
Waste Management
Authorities and
Operations
Pension Plans
Child Care
Operations
Joint Power
Authorities
Investment Activities
Landfills
Enterprise Funds
Airports
Transportation
Operations
Federal and State
Grants
Additional Activities
We offer a full range of accounting and finance services to the governmental sector. These
services include:
Financial audits
Compliance audits
Tax advice
Development of financial and
accounting policies and procedures
Investment review and compliance
evaluation
Operational reviews
Technical guidance on existing and
upcoming accounting issues
Training seminars
Pension/profit-sharing plans
Performance audits
Business consulting
Consequently, Firm personnel are well qualified to perform the services expected by the City.
City of La Quinta Technical Proposal
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Client Training Seminar
The Firm hosts an annual update on recent technical accounting and finance issues affecting
the governmental area. This all day session reviews new and anticipated pronouncements from
GASB, discusses future issues under consideration by GASB, reviews accounting treatment of
various transactions where issues may arise, and provides a general overview of state and
federal compliance issues. All of our clients are invited to attend, free of charge. The one day
session qualifies for CPE under the rules of the State Board of Accountancy and is held in the
Bay Area.
GASB 68 Firm Developed Tools and Assistance
The Firm has developed tools to assist our clients with preparation of GASB 68 journal entries
for the CalPERS’ Cost Sharing Plans (for which individualized actuarial valuations are no longer
prepared) and the CalPERS’ Agent Multiple Employer Plans. In addition to providing our clients
with these tools and instructions on how to use them, we are available to answer any questions
on how to prepare and complete the GASB 68 journal entries.
Flowcharting Documentation
As part of our risk assessment procedures, we prepare flowcharts for documenting our
understanding of the City’s significant accounting and financial processes. Flowcharts are
updated annually for any changes in the City’s processes and copies can be provided upon
request for the City’s internal use. Flowcharted processes may include:
Financial Reporting, Closing, and Manual Journal Entries
Cash Receipts, Billing, and Accounts Receivable/Revenues
Cash Disbursements, Purchasing, and Accounts Payable/Expenditures
Payroll and Human Resources
Quality Control Review
According to Government Auditing Standards, firms who perform audits under the Yellow Book
are required to have a peer review once every three years. We received a report with a rating
of pass with no deficiencies which we attached for your review.
City of La Quinta Technical Proposal
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City of La Quinta Technical Proposal
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City of La Quinta Technical Proposal
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The Firm has policies and procedures to ensure it hires only qualified people, that it properly
supervises them and provides professional training, that it advances them to responsibilities
they are capable of handling, and that it provides them with necessary technical resources. All
members of the Firm are very familiar with the stringent quality control standards established
by the AICPA.
The Firm is a member of the AICPA Government Audit Quality Center.
The Firm is a member of the AICPA Private Companies Practice Section.
Federal or State Desk Reviews
The Firm has had no negative federal or state reviews in the past three (3) years.
Disciplinary Action
There has not been any state or federal disciplinary actions taken or pending against the Firm
nor any findings to report.
Litigations
The Firm has not experienced any lawsuits or legal actions that have been resolved or are
currently pending in the prior five years.
City of La Quinta Technical Proposal
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The Engagement Team will normally consist of seven individuals who provide a broad business
perspective and significant experience in governmental auditing. This team will provide access
to a wide range of technical capabilities which will provide the City with not only the technical
support necessary to perform the audit, but also the broad business background to interpret
findings and observations to offer effective solutions to issues, and the personal involvement of
the Engagement and Compliance Partners of the Firm.
The Engagement Team will be led by Ahmed Badawi, CPA. Mr. Badawi’s background includes
over twenty years of municipal auditing experience with a special focus on cities. He is the
instructor of the CSMFO “Introduction to Governmental Accounting” training classes. Mr.
Badawi is a member of the Government Accounting and Auditing Committee of the California
Society of Certified Public Accountants. He has participated in the audits of numerous City,
county and special district governments, as well as non-profit entities. His diversified
background offers the technical qualities required of the governmental and non-profit areas and
the necessary wherewithal to properly evaluate the entire accounting process, develop
opportunities to improve the accounting process, and to offer practical business
recommendations.
The second member of the Engagement Team will be Wenwei Zhao, CPA. Ms. Zhao’s
background includes six years of accounting and auditing experience. She has participated in
the audits of numerous governmental entities and assisted in their efforts to publish their
financial statements in compliance with various regulations, and is a volunteer member of the
GFOA Special Review Committee. Ms. Zhao will be the Audit Manager of this engagement.
The third member of the Engagement Team will be Samantha “Samo” Michel. CPA. Ms.
Michel’s background includes five years of accounting and auditing experience. She has
participated in the audits of numerous governmental entities and assisted in their efforts to
publish their financial statements in compliance with various regulations. Ms. Michel will be the
Audit Senior of this engagement.
Engagement Partner
Ahmed Badawi
CPA
Audit Manager
Wenwei Zhao
CPA
Engagement Quality
Reviewer
Mitesh Desai
CPA
Audit Senior
Samantha “Samo”
Michel, CPA
Professional
Audit Staff
Professional
Audit Staff
IT Specialist
Omar Rahman,
CPA, CISA
Partner,
Supervisory,
and Staff
Qualifications
and
Experiences
City of La Quinta Technical Proposal
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The fourth member of the Engagement Team will be Omar Rahman, CPA, CISA. Mr. Rahman
has over 10 years of experience in the field of Information Technology (IT) audit and risk
management at the senior and executive management level. He has worked extensively with
government agencies, private organizations, and public companies, providing external and
internal audit services in support of financial statement audits. Mr. Rahman will serve as the I.T.
Specialist of this engagement.
The fifth member of the Engagement Team will be Mitesh Desai, CPA. Mr. Desai’s background
includes sixteen years of experience in municipal auditing. Mr. Desai has participated in the
audits of numerous governmental agencies, assisted in their efforts to publish their Annual
Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of the
GFOA Special Review Committee. Mr. Desai is responsible for conducting in-house trainings
for staff auditors and is credentialed with the Advanced Single Audit Certificate offered by the
AICPA. He will serve as the Engagement Quality Reviewer.
Each member of the Engagement Team participates in continuing education programs offered
by the AICPA and California State Society of Certified Public Accountants, and each has met
the continuing education requirements for municipalities. In addition, the firm offers at least 60
hours of in-house CPE annually focused mainly on municipal audits.
Professional Development:
The Firm maintains a comprehensive training program targeted at appropriate professional staff
levels. It utilizes in-house developed educational programs, AICPA and California CPA
Foundation educational programs, and on-the-job training.
The Firm’s annual training schedule which officially begins in April for all professional staff and
administrative staff includes comprehensive in-house training sessions on such topics as:
Review of principles of accounting and financial reporting for state and local governments
Review of governmental fund types and account groups
Review of newly issued generally accepted auditing standards and GAO auditing
standards
Review of Internal Control evaluation approaches including COSO principles
Updates on recent governmental accounting and reporting guidelines
Review of Single Audit requirements and approaches
Review of financial audit approaches
Overview of audit and internal control work paper techniques
Review of GASB reporting requirements
Review of current issues facing the governmental community
During the year, professional staff members are sent to various educational sessions sponsored
by the AICPA and California State Society of CPAs, as considered appropriate for the level and
need of the individual. These classes include, among others:
Governmental Financial Reporting Standards and Practices
Yellow Book: Government Auditing Standards
Financial Accounting Standards: Comprehensive Review
Single Audit
Governmental Auditing & Accounting Update
Governmental Accounting Principles
Comprehensive Review of Generally Accepted Auditing Standards
The result of the Firm’s training program is the production of a highly educated and competent
municipal audit group capable of performing an efficient and effective audit for the City.
The Engagement Team members will continue their professional development efforts.
City of La Quinta Technical Proposal
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Staff Retention and Continuity:
The Firm's policy on providing service to our clients includes a commitment to maintaining
continuity of audit personnel. We cannot guarantee that our staff will remain with the Firm.
However, to encourage our staff to remain with us, we pay competitive wage rates; offer
promotional opportunities; provide state-of-the-art equipment and excellent working conditions;
and offer various benefits, such as retirement plans, medical plans, profit sharing programs,
educational benefits, and other such benefits. We can also guarantee that the partner will be
involved in future years. Continuity of audit staff is of prime concern to us and because of the
hands-on involvement of the partner; we can assure you that future years’ audits will be
conducted in an efficient and effective manner with qualified and experienced professionals.
The Firm is an Equal Opportunity employer and complies with all Federal and State hiring
requirements. The Firm also supports Affirmative Action philosophies and works hard to provide
disadvantaged groups with opportunities for self enhancement.
Resumes of each member of the Engagement Team follow.
City of La Quinta Technical Proposal
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Ahmed Badawi, Certified Public Accountant – Engagement Partner
Length of Career
Over twenty years experience in municipal auditing and accounting with a special focus on cities
Certified Public Accountant for the State of California
Professional Experience
Partial listing of clients served:
Has performed numerous financial audits, Single Audits, Transportation Development Act audits,
housing audits, electrical utility audits, RDA audits, PFA audits, and Trust Fund audits, and has
prepared numerous Annual Comprehensive Financial Reports
Education
BS Degree in Accounting from the University of Alexandria, Egypt
Professional Activities
Instructor, CSMFO’s “Introduction to Governmental Accounting” training class
Member, CALCPA Government Accounting and Auditing Committee
Member, American Institute of Certified Public Accountants
Member, California Society of Certified Public Accountants
Member, Government Finance Officers Association
Member, California Society of Municipal Finance Officers
Continuing Education
Has met the current CPE educational requirements to perform audits on governmental agencies
Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:
Albany X X X X
Antioch XX XXX
Atwater X X X
Azusa X X X X
Berkeley XXX XX
Buena Park X X X X X
Burlingame X X X
Cotati X X X
Dublin X X X
East Palo Alto X X X X
El Cerrito XXX XX
Folsom XX XX
Foster City XXX XX
Fremont X X X X
Guadalupe X X X X X
Lafayette X X X X
Larkspur X X X X
Lindsay X X X
Menlo Park X X X X X
Newark X X X X
Oakdale XXX XX
Ontario X X X X
Petaluma X X
Pinole X X X X
Pleasanton X X X X
Richmond XXXXXX
San Bruno X X X X X
San Leandro X X X X
San Luis Obispo X X X
San Mateo XXX XX
Scotts Valley X X X X
Solvang X X
Susanville X X
Turlock XXXXXX
Union City XXX XX
Vacaville XXXX X
Walnut Creek X X X X X
Counties:
Santa Cruz County XXXXXX
Contra Costa County XXXXXX
Special Districts and Other:
Alameda County Water District X X X
East Bay Regional Park District X X X
Services Provided
City of La Quinta Technical Proposal
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Wenwei Zhao, Certified Public Accountant – Professional Audit Manager
Length of Career
Six years experience in auditing
Certified Public Accountant for the State of California
Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation
Development Act audits, and housing audits
Education
Master of Accounting from University of Pittsburgh, PA
Professional Activities
Volunteer Member, GFOA Special Review Committee
Continuing Education
Various municipal accounting courses offered by the California Society of CPAs and local
universities including:
- Governmental Financial Reporting Standards and Practices
- Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies
Services Provided
Financial Single SCO RDA PFA Enterprise
Audit Audit Report Audit Audit Fund Other
Cities:
Barstow X
Berkeley X X X
Crescent City X X X X
East Palo Alto X X
El Cerrito X X X
Folsom X X X X
Lafayette X X X X X
Larkspur X
Menlo Park X X X
Millbrae X
Newark X X X X
Oakdale X X X
Pinole X X
Redwood City X
Richmond XXXXX X X
San Luis Obispo X X X
San Mateo X X
Susanville X X
Town of Los Gatos X
Town of Yountville X X
Union City X X X X
Waterford X
Yuba City X X X X
Towns:
Los Gatos X
Child Care Programs:
Contra Costa County Child Care X X
Special Districts:
San Gabriel Valley Council of Governments X X
Cosumnes Services District X
Elk Grove Water District X
Hayward Area Recreation and Park District X
Marin Municipal Water District X
Resource Conservation District of Santa
Cruz County
X
San Mateo County Mosquito and Vector
Control District
X
Santa Cruz Regional 9-1-1 X
City of La Quinta Technical Proposal
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Samantha “Samo” Michel, Certified Public Accountant – Professional Assurance Senior
Length of Career
Five years of experience in municipal auditing
Three seasons of experience in personal tax preparation
Certified Public Accountant for the State of California
Professional Experience
Has participated in several financial audits, Single Audits, RDA audits, PFA audits,
Transportation Development audits, and housing audits
Education
BS, University of Washington, Seattle, WA
Accounting, Foothill College, Los Altos Hills, CA
Professional Activities
Member, California Society of Certified Public Accountants
Member, Forensic Services Section, California Society of Certified Public Accountants
Continuing Education
Various municipal accounting courses offered by the California Society of CPAs and local
universities including:
- Governmental Financial Reporting Standards and Practices
- Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies
Services Provided
Financial Single SCO TDA RDA Enterprise
Audit Audit Report Audit Audit Fund Other
Cities/Towns:
Antioch X X X X
Barstow X
Berkeley X X X
Buena Park X
Crescent City X X X
East Palo Alto X X
El Cerrito X
Folsom X X X
Guadalupe X X X
Los Gatos X X X
Millbrae X X
Menlo Park X X
Pismo Beach X X X
San Luis Obispo X X X X
San Mateo X X X X
San Bruno X X
Union City X
Vacaville X X
Waterford X
Yuba City X
Counties:
Contra Costa County X
Special Districts and Other:
Hayward Area Recreation District X X
Amador County Transporation Commission X X
Amador Transit X X
Central County Fire District X
Elk Grove Water District X
Port of San Luis Harbor X
San Mateo Consolidated Fire District X
StopWaste X X
City of La Quinta Technical Proposal
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Omar Rahman, Certified Public Accountant, Certified Information System Auditor
– Information Technology Specialist
Length of Career
Over ten years of experience auditing information technology (IT) processes and controls
Certified Public Accountant for the State of California
Certified Information System Auditor
Areas of Expertise
IT risk consulting and audit services for governmental entities, private/public companies, nonprofits,
and professional service organizations
External and internal IT audit services in support of financial statement audits
Technical guidance/support on IT risks and controls in relation to SOX 404a and SOX 404b
compliance, NIST 800-53/171a, Cyber Security Framework, HIPAA Technical Safeguards,
CCPA/GDPR compliance, COBIT 2019 Framework
Managed entire life cycle of IT internal and external audit engagements from planning research,
audit program development, fieldwork and reporting
Assess risks related to IT processes/assets and corresponding applications/tools
IT control testing over business automated controls, general IT controls, and cyber security
controls as well as IT substantive testing over information systems.
Presentations
November 2017 - Institute of Internal Auditors - General IT Controls for Internal Audit
December 2018 - Institute of Internal Auditors - SDLC Process and Audit/Risk Considerations
February 2019 - IT Audit for Business Process Professionals
May 2019 - IT Internal Audit Emerging Technologies: Data Analytics
September 2019 - Information Systems Audit and Control Association
Education
B.S. Degree in Economics, University of California, Los Angeles, CA.
Professional Activities
Certified Public Accountant - California
Certified Public Accountant - Ohio
Certified Information System Auditor
City of La Quinta Technical Proposal
17
Mitesh Desai, Certified Public Accountant – Engagement Quality Reviewer
Length of Career
Sixteen years experience in municipal auditing with a special focus on cities
Certified Public Accountant for the State of California
Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation
Development Act audits, and housing audits
Education
BS Degree in Business Economics with an emphasis in Accounting from University of California,
Santa Barbara
Professional Activities
Member, American Institute of Certified Public Accountants
Member, California Society of Certified Public Accountants
Volunteer Member, GFOA Special Review Committee
Continuing Education
Various municipal accounting courses offered by the California Society of CPAs and local
universities including:
- Governmental Financial Reporting Standards and Practices
- Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies
Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:
Albany X
Antioch X X X
Azusa X X X X
Berkeley X X X X X
Buena Park X X X X
Calimesa X X X
Crescent City X X X X X
Dablin X X X
East Palo Alto X X X X
El Cerrito XXX XX
Foster City X X X X X
Fremont X X X X X
Lemon Grove X X
Lindsay X X X
Menlo Park X X X
Millbraie X X X X
Newark X X X X
Oakdale X X X X
Pittsburg X X X X X
Placerville X X X X
Rio Vista XXXX
San Mateo XXX XX
Sebastopul X X X X
Solvang X X
Susanville X
Turlock XXX
Union City XXX
Vacaville XXXX X
Waterford XXXX
Yountville XXX
Yuba City XX XX
Child Care Programs:
Menlo Park Child Care XX
Stanislaus County Childcare XX
Non-profits:
Housing Endowment and Regional Trust X
Special Districts and Other:
Castro Valley Sanitary District X
Cosumnes Community Services District X
Marin Municipal Water District X
West County Wastewater District XX
XX
Services Provided
Contra Costa Child Development Programs
City of La Quinta Technical Proposal
18
The tables below and on the following page are a partial listing of our clients similar to the City,
and illustrates the many different types of components involved in each audit engagement that
present very difficult and complex auditing and accounting challenges (in order of audit hours).
** Indicates cities with population over 50,000
** Indicates cities with governmental revenues over $100 million and population over 50,000
CityClient Since Hours Engagement PartnerPrincipal Contact
Annual Comprehensive Financial ReportGFOA AwardRDA/Successor AgencySingle AuditTDAWater FundSewer FundSCO ReportHousing AuthorityEnterprise FundsPension Trust Fund** Richmond 2020 3,160
Ahmed
Badaw i
Andrea Miller
Finance Director
(510)412-2077
Andrea_Miller@ci.richmond.ca.us
X XXX XXXXX
** Berkeley 2008 1,505
Mitesh
Desai
Henry Oyekanmi
Finance Director
(510)981-7300
hoyekanmi@ci.berkeley.ca.us
XXXXX X XX
** Ontario 2021 1,012
Ahmed
Badaw i
Armen Harkalyan
Executive Director of Finance
(909)395-2019
aharkalyan@ontarioca.gov
X XXX XXXXX
* Union City 2006 850
Mitesh
Desai
Jackie Acosta
Finance Director
(510)675-5345
jackiea@unioncity.org
XXXXX X X
** Folsom 2019 807
Ahmed
Badaw i
Stacey Tamagni
Finance Director
(916)461-6712
stamagni@folsom.ca.us
XXXX XX X
* Petaluma 2019 691
Ahmed
Badaw i
Corey Garberolio
Finance Director
(707)778-4357
cgarbero@cityofpetaluma.org
X XXXXXXX
*San Luis
Obispo 2019 638
Ahmed
Badaw i
Emily Jackson
Finance Director
(805)781-7125
ejackson@slocity.org
X X XXXX
* Antioch 2005 586
Mitesh
Desai
Dawn Merchant
Finance Director
(925)779-6135
dmerchant@ci.antioch.ca.us
X XXXXXX X
Lafayette 2020 586
Ahmed
Badaw i
Jennifer Wakeman
Assis. Administrative Services Director
(925)299-3213
JWakeman@lovelafayette.org
XXX X X
** Dublin 2018 546
Ahmed
Badaw i
Jay Baksa
Director of Finance & Admin. Services
(925)833-6640
Jay.Baksa@dublin.ca.gov
XX XX X
Azusa 2017 540
Ahmed
Badaw i
Talika Johnson
Administrative Services Director
(626)812-5202
tjohnson@AzusaCa.Gov
XXXX XX X
Similar
Engagements
with Other
Governmental
Entities
City of La Quinta Technical Proposal
19
CityClient Since Hours Engagement PartnerPrincipal Contact
Annual Comprehensive Financial ReportGFOA AwardRDA/Successor AgencySingle AuditTDAWater FundSewer FundSCO ReportHousing AuthorityEnterprise FundsPension Trust FundMillbrae 2015 524
Mitesh
Desai
Mike Sung
Finance Director
(650)259-2433
msung@ci.millbrae.ca.us
XXXX XX X
Glendora 2022 487
Ahmed
Badaw i
Kyle Johnson
Assistant Finance Director
(626)914-8245
kjohnson@cityofglendora.org
X XXX X XXX
San Bruno 2022 486
Ahmed
Badaw i
Nick Pegueros
Chief Financial Officer
(650)616-7054
NPegueros@sanbruno.ca.gov
X X XXXXX X
* Yuba City 2017 450
Mitesh
Desai
Spencer Morrison
Finance Director
(530)822-4615
smorrison@yubacity.net
XXXX XXX X
Wasco 2021 428
Ahmed
Badaw i
Isarel Perez-Hernandez
Finance Director
(661)758-7230
isperez@cityofwasco.org
X XXXXXX
Pismo Beach 2022 389
Ahmed
Badaw i
Nadia Feeser
Administrative Services Director
(805)773-7010
nfeeser@posmobeach.org
XXXX XXX X
Larkspur 2019 382
Ahmed
Badaw i
Cathy Orme
Administrative Services Director
(415)927-5019
Finance@cityoflarkspur.org
XXX
Atwater 2021 380
Ahmed
Badaw i
Kellie-Jacobs Hunter
Finance Director
(209)357-6347
kjacobshunter@atwater.org
XX XXXX
Lemon Grove 2022 377
Ahmed
Badaw i
Joseph Ware
Finance Director
(619)825-3803
Jware@lemongrove.ca.gov
XXX X
Waterford 2018 311
Mitesh
Desai
Tina Envia
Finance Manager
(209)874-2328 Ext: 104
tenvia@cityofwaterford.org
XXXX
Solvang 2019 308
Ahmed
Badaw i
Brad Vidro
Interim City Manager
(805)688-5575 ext 204
bradv@cityofsolvang.com
XX XXX
Oakdale 2016 306
Mitesh
Desai
Albert Avila
Finance Director
(209)845-3584
aavila@ci.oakdale.ca.us
XXXXX X
City of La Quinta Technical Proposal
20
CityClient Since Hours Engagement PartnerPrincipal Contact
Annual Comprehensive Financial ReportGFOA AwardRDA/Successor AgencySingle AuditTDAWater FundSewer FundSCO ReportHousing AuthorityEnterprise FundsPension Trust FundGuadalupe 2017 303
Mitesh
Desai
Janice Davis
Finance Director
(805)356-3895
Jdavis@ci.guadalupe.ca.us
XX XX X
Sebastopol 2017 275
Mitesh
Desai
Ana Kw ong
Finance Director
(707)824-4879
akwong@cityofsebastopol.org
XXX XXX X
Cotati 2020 265
Ahmed
Badaw i
Angela Courter
Director of Administrative Services
(707)665-4236
acourter@cotaticity.org
XX XX X
Crescent City 2014 227
Mitesh
Desai
Linda Leaver
Finance Director
(707)464-7483 x224
lleaver@crescentcity.org
XX XX XX
Scotts Valley 2019 202
Ahmed
Badaw i
Selina Andrews
Finance Manager
(831)440-5614
sandrews@scottsvalley.org
XXX X X
City of La Quinta Technical Proposal
21
The table below lists all special district engagements (in order of audit hours):
Special District
Client SinceHoursEngagement PartnerPrincipal Contact
Annual Comprehensive Financial ReportGFOA AwardSingle AuditEnterprise FundsSan Gabriel Valley Council of Governments 2021 618
Ahmed
Badawi
Rey Alimoren,
Director of Finance
(626) 962-9292
ralimoren@sgvcog.org
No N/A X X
County of Contra Costa Community Services Bureau
Child Development Program 2013 450
Mitesh
Desai
Nancy Benavides
Fiscal Officer
(925)681-4268
nbenavidas@ehsd.cccounty.us
No N/A
Union Sanitary District 2023 362
Ahmed
Badawi
Mark Carlson, CPA
CFO/Business Services Manager
(510)477-7510
markc@unionsanitary.ca.gov
Yes Yes X
Florin Resource Conservation District/
Elk Grove Water District 2015 350
Mitesh
Desai
Patrick Lee
Finance Manager / Treasurer
(916)685-3556
plee@egwd.org
Yes Yes X
Hayward Area Recreation
and Park District 2017 350
Mitesh
Desai
Anne Maze
Administrative Services Director
(510)881-6707
maza@haywardrec.org
No N/A X
San Ramon Valley Fire
Protection District 2021 285
Ahmed
Badawi
Ms. Davina Hatfield
Chief Financial Officer
(925)838-6668
dhatfield@srvfire.ca.gov
Yes Yes X
Solano County Water Agency 2020 243
Ahmed
Badawi
Roland Sanford
General Manager
(707) 455-1103
rsanford@scwa2.com
No Yes
San Mateo Mosquito and
Vector Control District 2018 228
Ahmed
Badawi
Richard Arrow
Finance Director
(650)344-8592
rarrow@smcmvcd.org
Yes Yes
Monterey Bay Unified Air
Pollution Control District 2016 200
Mitesh
Desai
Rosa Rosales
Administrative Services Manager
(831)718-8019
rrosales@mbard.org
No N/A
Ross Valley Fire Department 2021 190
Ahmed
Badawi
Jeff Zuba
Finance & Admin. Services Director
(262)989-2208
jzuba@townofsananselmo.org
No N/A
Southern Marin Fire Protection District 2020 160
Ahmed
Badawi
Alyssa Schiffmann
Finance Manager
(415)388-8182
aschiffmann@smfd.org
No N/A
Alameda County Waste Management Authority
(StopWaste)2018 154
Mitesh
Desai
Jennifer Luong
Finance Services Manager
(510)891-6500
jluong@stopwaste.org
Yes Yes
Central County Fire Department 2012 150
Mitesh
Desai
Jan Cooke
Finance Director
(650)375-7408
jcooke@hillsborough.net
Yes Yes
Central Fire Protection District of
Santa Cruz County 2018 150
Mitesh
Desai
Nancy Dannhauser
Finance Director
(831)479-6842
nancy.dannhauser@centralfiresc.org
No N/A
Port of San Luis
Harbor District 2017 150
Mitesh
Desai
Jennifer Dance
Business Manager
(805)595-5413
jenniferd@portsanluis.com
Yes Yes X
Resource Conservation
District of Santa Cruz
County
2017 150
Mitesh
Desai
Arianne Rettinger
Director of Finance
(831)594-8109
arettinger@rcdsantacruz.org
No N/A X
Santa Cruz Regional 9 - 1 - 1 2016 150
Mitesh
Desai
Amethyst Uchida
General Manager
(831)471-1035
amethyst@scr911.org
No N/A
Marin Wildfire Prevention Authority 2021 106
Ahmed
Badawi
Ms. Alyssa Schiffmann
Finance Manager, SMFPD
(415)952-5859
finance@marinwildfire.org
No N/A
City of La Quinta Technical Proposal
22
The City desires an audit of the financial records for the City and an expression of an opinion in
accordance with generally accepted accounting principles on the fairness of presentation of
financial statements for the fiscal years ending June 30, 2024 through 2028.
The Firm will:
Express an opinion on the fair presentation of its basic financial statements which includes
but is not limited to the financial statements of governmental activities, the business-type
activities, each major fund and all aggregate remaining fund information in conformity with
generally accepted accounting principles in the United States of America.
Express an "in-relation-to" opinion on the fair presentation of its combining and individual
non-major fund financial statements and schedules in conformity with generally accepted
accounting principles. The Firm will provide an “in-relation-to” report on the supporting
schedules contained in the Annual Comprehensive Financial Report based on the
auditing procedures applied during the audit of the basic financial statements and
schedules.
Provide an “in-relation-to” report on the schedule of expenditures of federal awards based
on the auditing procedures applied during the audit of the financial statements.
Perform the audit in accordance with generally accepted auditing standards accepted in
the United States of America, applicable to the financial audit contained in the
Government Auditing Standards issued by the Comptroller General of the United States
and the provisions of the Uniform Guidance, Audits of States, Local Governments and
Non-Profit Organizations.
Perform limited procedures on supplementary information required by the Government
Accounting Standards Board.
Issue the following reports, following the completion of the audit of the fiscal year’s
financial statements:
Independent Auditor’s Report on Financial Statements and Schedule of
Expenditure of Federal Awards
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor’s Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control over Compliance in Accordance with
the Uniform Guidance
Schedule of Findings and Questioned Costs
Auditor’s Communication with Those Charged with Governance
Annual Comprehensive Financial Report following the requirements and
guidelines of the GFOA award program
Gann Limit Agreed-upon Procedures
State Controller’s Report
Provide special assistance to the City as needed.
Retain all working papers and reports at the audit firm’s expense for a minimum of 7 years.
In addition, make working papers available to the City and/or any government agency as
appropriate.
Should any conditions be discovered requiring corrective action, the Firm will provide a detailed
description of the findings and recommended actions as to their resolution.
Understanding
of Services to
be Provided
City of La Quinta Technical Proposal
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The Firm will submit a report to the City’s Council and management detailing auditor’s
responsibility under generally accepted auditing standards, significant accounting policies,
management judgments and accounting statements, significant audit adjustments, other
information in documents containing audited financial statements, disagreements with
management, management consultations with other accountants, major issues discussed with
management prior to retention, difficulties encountered during the audit, and any significant
deficiencies or material weaknesses found during the audit. Non-material instances of
noncompliance will be reported in a separate management letter, if appropriate, along with any
other observations or recommendations determined to be informative to City Management.
The Firm will be available to provide advice and counsel regarding significant matters during
the year.
The Firm’s Partner and Staff welcome the opportunity to make presentations to the City Council
and will be ready to respond to questions from the Council and citizens of the City.
Objectives of Our Services
The basic objective of our audit of the City is to conduct an examination of the financial
statements in accordance with generally accepted auditing standards and to express our
opinion on the fairness of presentation of such financial statements in conformity with generally
accepted accounting principles.
Additionally, we believe that another real value of our audit lies in meeting other objectives at
no additional cost. The following are other objectives of our services that have important benefits
to the City:
To offer substantive observations and recommendations relating to accounting and
operating control policies and procedures.
To identify opportunities for operating efficiencies and isolate candidate activities for cost
reduction opportunities.
To perform a professional audit in an efficient and effective way to minimize disruption to
the office operations.
To offer ongoing advisory services to assist in the running of the operation and
implementation of improved operating procedures.
The engagement will be conducted within the framework of the Firm's quality control program
which includes the use of audit programs, careful planning, use of computerized audit software
and internal control evaluation and documentation software, and objective review procedures.
On-site staff will use Firm supplied portable computers and printers.
Audit Approach
The specific audit approach has been designed to efficiently and effectively address the audit
requirements of the City, to perform the audit of the City’s financial records in a timely manner
with minimal disruptions to office operations, and to meet the City’s timeline.
The audit will be conducted in accordance with:
1) Generally accepted auditing standards established by the AICPA.
2) The standards contained in Government Auditing Standards issued by the GAO.
3) Provisions of the Single Audit Act and the Uniform Guidance.
4) Requirements issued by the California State Controller’s office.
5) Other requirements as required.
Specific Audit
Approach
City of La Quinta Technical Proposal
24
We will conduct the necessary audit steps to perform:
Planning of the engagement
Evaluation of the existing internal control environment to determine degree of risk of
material misstatement
Determination of degree of compliance with laws, regulations, grant provisions, and City
approved policies
Assessment of potential fraudulent issues
Validation of account balances
Verification of reasonableness of management estimates
Technical Approach
We use an industry specific audit approach tailored to governmental entities. Our governmental
audit approach addresses the special risks and circumstances of local governments. As a result,
the audit is conducted efficiently and effectively with minimal disruption to your staff.
The core of our governmental technical audit approach can be summarized as follows:
1. Planning, Understanding and Communication:
Based on our previous audit experience, using the budget, organizational charts, manuals
and other financial information systems and our knowledge of how governments work, we
will obtain an insight to the specific concerns and sensitivities of the City. Our understanding
is updated continuously through our year-round contact and communication efforts. We will
agree on common audit objectives and expectations with management before audit work
begins and, throughout the audit, will meet regularly with management to discuss audit
issues and to gather feedback.
2. In-Depth Review of Systems and Controls:
We have developed diagnostic reviews which enable us to evaluate your systems and
controls, and to provide management with constructive feedback. Combined with our
knowledge of the City and understanding and experience with the City’s accounting
software, our control review will form the basis of our audit risk assessment. We will utilize
the COSO approach in our evaluation of the City’s internal processes to identify potential
control deficiencies. In future years, we will update our understanding through similar
procedures.
3. Risk-Based Customized Testing Program:
Our audit approach is tailored to governmental applications. We will use audit programs
specifically designed to address the operational environment of governmental entities. Our
approach will identify potential control risks and the opportunities for risk of material
misstatements and fraud. We will evaluate the various risk assessments and identify the
potential risks relating to the:
Balance Sheets / Statement of Net Position
Statement of Revenues and Expenditures / Statement of Activities
Presentation
Disclosure
Our audit procedures will then be developed to address these risk areas.
4. Expanded Interim Fieldwork:
Timeliness and audit efficiency is enhanced by performing extensive interim work. Partners,
managers and senior staff work with City staff to identify and resolve potential audit issues
early. Accordingly, the amount of audit work to perform at year end is minimized. Because
our audit staff is familiar with the operations before year-end fieldwork begins, disruption of
accounting staff is minimized.
City of La Quinta Technical Proposal
25
5. Smooth Transition:
Our testing program focuses on audit risks identified by our understanding of the City’s
operations. We will work with the accounting staff to identify the most effective ways to
address our objectives. Communication between the members of the audit engagement
team and City staff will be fluid and continuous.
6. Sample Size and Sampling Techniques:
Our audit approach will include sampling activities. Population size and the level of
assurance to be derived from a particular test will dictate the sample size. We use sampling
in our audit approach to compliment skilled judgment and knowledge of the particular
situation. Our sample size will range normally from 25 to 60 items.
7. Automated Systems:
We will evaluate controls over the IT functions to assess control risk. We intend to test
controls for purposes of reliance. Our review procedures will evaluate controls over:
Security Management
Logical and Physical Access
Configuration Management
Segregation of Duties
Contingency Planning
In addition, we will review controls over:
Input, processing, output, master data
Application interface
Data management system interface
Our information Technology Specialists will evaluate the IT operating control environment.
8. Analytical Procedures:
We use analytical procedures in several aspects of our audit. Extensive knowledge and
industry background are required for effective analytics, and our staff possesses the
appropriate experience and knowledge for the City to benefit from these procedures.
9. Approach to be Taken in Determining Laws and Regulations Subject to Audit Test
Work:
We continuously refer to specific regulations, compliance supplements, state guidelines and
contracts currently in force. We perform the procedures required related to laws and
regulations, using inquiries, observations and sampling techniques. Some of the laws and
regulations that we believe may be applicable to the City are the requirements of the
California Public Utilities Commission, Single Audit Act and other applicable laws and
regulations, including the California Government Code, provisions of applicable Grant
guidelines, California Constitution GANN Limit requirements, requirements of local
measures, Child Care Program compliance requirements, etc.
10. Report Format:
We will meet with City Management to review report formats. Any report format changes
will be made in conjunction with approval from City Management.
11. Work Plans:
The detailed work plans will be designed to efficiently and effectively address the audit
requirements of the City in accordance with generally accepted auditing standards, to
perform the audit of the City’s financial records in a timely manner with minimal disruptions
to office operations, and to meet the City’s timeline.
City of La Quinta Technical Proposal
26
12. Adjusting Journal Entries:
We will discuss and explain proposed audit adjusting entries with the City’s designated
Finance Department personnel prior to recording. Audit adjusting entries will be provided in
a format showing the lowest level of posting detail needed for data entry on the City’s
general ledger system.
13. Listing of Schedules and Tables (anticipated to be prepared by the City):
Based on preliminary inquiries made with management and City staff and review of
documents, we will tailor a list of schedules, tables, and other reconciliations required for
the audit. We will take into account as much as possible reconciliations already prepared
by the City for day to day operations and reporting, as well as any reports that are system
generated to limit the need for additional City staff hours.
The following is a listing of some of the significant reconciliations and schedules that we
would normally expect the City to provide to us in assisting us in conducting our fieldwork.
Trial Balance
Annual Comprehensive Financial
Report Account Roll Up Schedules
Budget to Actual Reports
Bank Reconciliations
Listing of manually prepared journal
entries posted
Summary of Investments held by the
City
Capital Asset Schedules
Long Term Debt Schedules
Debt amortization schedules &
Calculations of deferred amounts
Calculations of any debt covenants
amounts or percentages
Schedule of Leases
Schedule of Expenditures of Federal
Awards
Analysis of Deferred Inflows of
Resources and Deferred Outflows of
Resources
Reconciliation of Receivables to
subsidiary ledgers
Calculations for estimate of allowance
for uncollectible accounts
Loans Receivable Schedules
Reconciliation of Significant Revenue
Accounts
Fee schedules
Compensated Absences Schedules
and Copies of Related Policies
Claims Payable Schedules
Pension and OPEB Roll Forward and
Supporting Schedules
GASB 54 Fund Balance Roll Forward
Schedule
Interfund Transaction Schedules
City of La Quinta Technical Proposal
27
The Firm maintains a variety of specialized software packages during the audit that enable us
to perform an efficient, thorough, and timely audit and keeping time demands on City staff to a
minimum.
Trial Balance Management and Financial Statement Preparation
ProSystem Fx Engagement allows us to import and manage multiple years of trial balance data
including budgetary information, create multiple account groupings, generate reports, post
journal entries proposed during the audit (including GASB 34 conversion entries), and link
information directly to the financial statements. This gives us the ability to:
Generate immediate trend and other comparative analysis of trial balance and budget
data prior to the start of the audit. This allows us to identify potential issues and make
inquiries early in the audit
Link the financial statements and footnotes prior to the start of the audit allowing us to
have majority of the financial statements (including budgetary comparison schedules
and other supplementary information) prepared at the time the trial balance is uploaded
Audit adjustments or City adjustments provided during the audit are automatically
reflected in the financial statements
Audit Request Management and Document Exchange
CCH Engagement Organizer (“Organizer”) is a virtual “Prepared by Client (PBC) List” that
streamlines the process of requesting, receiving, and keeping track of documents. The
Organizer is an integrated cloud-based request list that helps to facilitate the engagement
through more seamless collaboration between the Firm and our clients. By utilizing the
Organizer, the City can do all of the following in one secure virtual environment:
Attach files of any type to document requests
Easily track the status of document requests that are either pending, completed by the
City, accepted by us, or rejected by us
Access templates and documents from us that require completion
Have multiple City staff get involved and assist in the audit process
Participate in a dialog with us for questions and notes
We have found that the use of the Organizer has helped our clients be always informed as to
the status of their audit, and not be surprised with new requests or follow up on outstanding
requests previously provided.
Computer Aided Audit Tools (CAATs)
The Firm’s data analytics software enables our Engagement Team to perform more than 150
Computer Aided Audit Tools (or “CAATs”). CCH Teammate Analytics gives us the ability to
perform advanced data analysis and increase efficiency. By utilizing this software, we can:
Immediately visualize and analyze 100% of account populations with graphs, charts
and statistics to identify anomalies
Make fewer sample selections that are targeted to problematic areas
Quickly analyze transactional data for:
o Duplicate records
o Missing transactions
o Transaction sequence
o Unusual items
Compare excel worksheets for changes or differences
Generate immediate testing samples
Perform regression analysis
Filter and extract data from City reports
Use of
Technology in
the Audit
City of La Quinta Technical Proposal
28
Audit Planning, Risk Assessment, and Audit Programs
Our firm utilizes CCH Knowledge Coach, which is an expert system that adapts and customizes
our audit approach specifically based on the City’s structure, operating environment, specific
transactions, and identified risks or matters to be addressed in the audit. The software is
frequently updated for new industry trends and audit requirements. Included in the software is
a continuous diagnosis of audit forms that identifies missing information, procedures, or any
conflicts that need to be addressed prior to issuance of the audit report. We have found that this
audit tool greatly benefits our audit clients in the following ways:
Removal of standardized audit steps and procedures that do not add value to the audit
Targeted audit procedures focusing on risks and accounts specific to the City’s
operations
Audit is always performed in accordance with audit standards especially the risk
assessment standards
Maximizing audit efficiency having less City staff time dedicated to gathering information
or responding to inquiries by focusing on material issues
Automatic self-diagnostics ensure no audit steps are missed, guaranteeing a quality
audit
Research Tools
We maintain multiple research software packages that are always kept up to date to ensure
compliance with accounting and auditing standards, and are also a resources for us to provide
guidance to our clients. In addition to accounting and audit literature, we have access to
interactive disclosure checklists that include sample footnote disclosures and financial
statements.
City of La Quinta Technical Proposal
29
2024
Period
Audit Tasks
April - Planning and Administration
Review and obtain copies of key work papers of prior audit firm.
The entrance conference shall be held with City staff. The purpose
of this meeting will be to discuss prior audits and the interim work
to be performed. This meeting will also be used to establish overall
liaison for the audits and to make arrangements for work space and
other needs
Review and evaluate the City's accounting and financial reporting.
Prepare an overall memo of recommendations, potential issues,
and suggestions for improvements
Prepare overall memo to the City confirming audit procedures,
timing, and assistance
Prepare detailed audit work plan and audit programs, audit budget
and staffing schedule, and list of schedules to be prepared by the
City staff
Send the Organizer to the City that will include all request items
considered to be necessary for the audit
April - May
- Internal Control Evaluation
Meeting with City Manager and Department Heads of other
departments with large operating budgets or which have significant
federal grant expenditures
Attending City Council meetings
Meeting with off-site locations
Meeting with key Finance Department personnel
Obtain and document understanding of key internal control
systems through walk-throughs, interviews of staff, and review of
supporting documentation
o General ledger system
o Budgeting system
o Revenue, accounts receivable, and cash collections
o Purchasing, expenditures, accounts payable, and cash
disbursements
o Payroll
o Federal Financial Assistance
o Other systems
Identify control risks
Evaluate IT control environment
Perform testing of the internal control system and evaluate the
effectiveness of the City’s systems. Select large dollar and random
samples of transactions in key operating systems. Sample size to
meet required level for determined degree of risk. Review
supporting documentation of selected transactions, evaluate
adequacy of support and approvals, and conclude on degree of
adherence to accuracy and compliance with City policies
Conduct fraud assessment procedures
Assess degree of risk for material misstatement
Provide to the City’s management a memo concerning
management letter points and identify issues, if any
Audit
Schedule
City of La Quinta Technical Proposal
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2024
Period
Audit Tasks
April - May - Other Tasks
Review minutes of City Council meetings and other key committees
Perform preliminary substantive procedures, which would include
tests of:
o Vendor and contractor payments
o Payroll expense
o Pension and OPEB testing
o Capital asset acquisitions
o Journal entries
o Retrospective review of accounting estimates
Financial statement database management and other setup, in
addition to drafting of all necessary report templates
Preliminary Single Audit and other compliance testing
Coordinate with City staff and prepare of all appropriate
confirmation requests including:
o Bank accounts
o Investment pool accounts
o Accounts receivable
o Federal grants
o Revenue from governmental agencies
o Bond and other debts
o Pension plan
o Attorney letters
o Others, as required
Update the Organizer with any additional requests that will be
needed for the City's audit
Provide the City with audit plan and list of year-end audit schedules
Hold progress conference with City Management
Hold exit conference with City Management
October
- Final Fieldwork
Entrance conference with City Management
Follow-up on all outstanding confirmations
Verify and validate account balances by reviewing supporting
documentation including invoices, vouchers, council resolutions,
minutes, and other documents, as required
Perform analytical review of revenue and expenditures. Determine
reason for material differences between budget and actual
Perform a search for unrecorded liabilities by reviewing
disbursements subsequent to June 30, testing terms of contractual
obligations, and interviewing City staff
Perform review of subsequent events by discussions with City
Management and update all minutes of City Council and key
committees
City of La Quinta Technical Proposal
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2024
Period
Audit Tasks
- Single Audit Compliance
Entrance conference with City Management
Obtain Federal Financial Assistance Schedule
Determine grants to be considered as major programs including
clusters
Perform audit tests of major grant programs and compliance with
Federal Law and Regulations
Review grant documents, select sufficient number of transactions
to test for compliance of Federal Requirements
Coordinate Single Audit efforts with the Financial Audit efforts
Communicate findings to City Management
Other Compliance
November
- Audit Reports
Complete drafts of City’s Annual Comprehensive Financial Report
Prepare draft of Single Audit Reports concerning internal control
structure, compliance with laws and regulations, and administering
of federal financial assistance programs
Prepare other reports as required
Provide revised final drafts of all required reports to the City for
approval
December
- Final City Audit Reports, Financial Statements, Single Audit
Reports, and other reports delivered.
- Audit Presentation(s) to Council and Financial Advisory
Commission
January 2025
- State Controller’s Report delivered and submitted
- Single Audit Report package submitted to Federal Audit
Clearinghouse
Note: the proposed audit schedule above can be adjusted as necessary based on the needs
of the City.
Estimated Hours by Audit Phase
Position Planning
Interim
Fieldwork
Year End
Fieldwork Reporting Total
Partner 8 21 14 5 48
Audit Manager 7 35 38 5 85
Audit Senior 15 56 59 8 138
Professional Audit Staff - 91 83 10 184
IT Specialist - 5 - - 5
Administrative Assistant 6 9 - 9 24
Total 36 217 194 37 484
City of La Quinta Technical Proposal
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Identification of Anticipated Potential Audit Problems
We do not anticipate that there will be any audit problems at the City. However, the following
are some areas that we will carefully investigate and monitor during our audit procedures:
Financial Reporting:
Review and evaluate that the City’s Annual Comprehensive Financial Report is in
compliance with current reporting and disclosures requirements issued by the GASB
and GFOA.
Review the Annual Comprehensive Financial Report for financial reporting
conformance awards issued by CSMFO and GFOA.
Review and evaluate degree of compliance with the various GASBs in effect.
Review degree of compliance with infrastructure obligations and regulatory provisions.
Internal Control Structure:
Review and evaluate the City’s internal control functions and ascertain compliance with
proper internal control philosophies.
Review computer system processes and controls and evaluate adequacy of the control
environment.
Several new GASB pronouncements will become effective over the time period of this proposal.
As such, specific attention will be provided to determine the proper implementation of these new
pronouncements. A list of known new pronouncements with implementation dates that fall within
this proposal period are as follows:
2024
Statement 100 – Accounting Changes and Error Corrections—an amendment of GASB
Statement No. 62
2025
Statement 101 – Compensated Absences
Discussion of
Relevant
Accounting
Issues
City of La Quinta Technical Proposal
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Schedule of Professional Fees
The above is an all-inclusive maximum price, including services, out-of-pocket expenses, meals,
lodging, transportation, printing, and other costs.
*Note: Included in our proposed fee are up to 50 additional hours of Partner/Manager
time for research and assistance to City staff concerning accounting and other technical
matters at no additional cost.
Description 2023-24
2024-25 2025-26 2026-27 2027-28
Financial Statements Audit (including City, Housing
Authority, Successor Agency, and Financing
Authority)54,090$ 55,580$ 57,460$ 59,045$ 61,205$
Single Audit 2,815 2,850 3,040 3,205 2,920
Gann Limit Agreed-upon Procedures 465 515 550 580 620
State Controller’s Report 2,600 2,850 2,600 2,740 2,795
Additional 50 Consulting Hours*No charge No charge No charge No charge No charge
Total not to exceed fees 59,970$ 61,795$ 63,650$ 65,570$ 67,540$
Hours Rates Hours Rates Hours Rates Hours Rates Hours Rates
Partner 48 300$ 45 310$ 44 320$ 43 $330 42 $340
Audit Manager 85 225 81 240 77 245 76 255 73 265
Audit Senior 138 175 130 190 125 200 122 210 118 220
Professional Audit Staff 184 125 173 135 168 145 163 150 157 160
IT Specialists 5 225 4 235 4 235 4 255 4 255
Administrative Assistant 24 100 22 100 22 110 21 115 21 125
Total Hours 484 455 440 429 415
Total Cost
Discount
Total not to exceed fees
Position
2027-282023-24 2024-25 2025-26 2026-27
(24,230) (22,790) (22,015) (21,505) (20,810)
88,350$ 87,075$ 85,665$ 84,585$ 84,200$
59,970$ 61,795$ 63,650$ 65,570$ 67,540$
Comprehensive
Cost Bid
City of La Quinta Technical Proposal
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Manner of Payment:
Each Engagement Team member maintains detailed time sheets describing work performed,
date of work, and amount of time spent on each task for the Engagement. The Firm will bill the
City after completion of each phase of the audit and bill the City up to a maximum of 90%. The
remaining 10% of the proposal amount will not be due until all final reports are delivered and
accepted by the City. The City can anticipate three billings as follows:
Work Performed
% of Proposal
Amount
For interim work 45%
For year-end work 45%
At presentation and acceptance of final reports 10%
Total 100%
Rates for Additional Professional Services:
Any services outside the scope of our engagement will be promptly identified before the services
are rendered. Upon mutual agreement, the out-of-scope services will be separately billed at our
standard hourly rates. While it can be difficult to simply state hourly rates, as often times the
needs of the client and the specific tasks directly impact the billing rates for our services, we
want to provide the following information regarding our published billing rates:
Position Hourly Rate
Partner $ 300
EQR 300
Manager 225
Senior 175
Staff 125
I.T. 225
Admin. 100
Our Standard Hourly Rates for additional professional services are adjusted annually by
3% for Cost of Living and Inflation Adjustments.
City of La Quinta Technical Proposal
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A client relationship with the City will be of great value to our Firm and we welcome the
opportunity to develop a long-term relationship with the City. We are committed to:
Rendering the highest standard of service
Developing a long-term working relationship dedicated to meeting the needs of the City
Assisting the City in operational issues
Producing a quality end-product
We have the technical qualifications and experience to provide the level of service desired and
expected by the City and stand ready to provide our knowledge and experience for the benefit
of your organization.
We would like to express our appreciation to the City and to its Staff for allowing us the
opportunity to submit a proposal to perform professional auditing services. We are available, at
your convenience, to discuss any aspects of our proposal.
Thank you for allowing us to present our Firm to you.
* * * * * * * * * * * * * * * * *
Conclusion
City of La Quinta Technical Proposal
36
References
1) City of Berkeley
Scope of Work: Annual Comprehensive Financial Report, Gann Limit, SAS 114,
Measure B/BB (Alameda County), Vehicle Registration Fee Audit (Alameda County),
Due Diligence Reviews for the RDA Successor Agency
Engagement Partner: Ahmed Badawi (2008 – 2019), Mitesh Desai (2020- Present)
Address: 2180 Milvia Street, Berkeley, CA 94704
Principal Contact:
Mr. Henry Oyekanmi, Finance Director
(510) 981-7332
hoyekanmi@ci.berkeley.ca.us
2) City of Ontario
Scope of Work: Annual Comprehensive Financial Report, SAS 114, Gann Limit, Single
Audit, Housing Successor, West End Communications Authority, West End Fire and
Emergency Response Commission, Air Quality Management District, State Controller’s
Reports
Engagement Partner: Ahmed Badawi (2021 - Present)
Address: 303 East B Street, Ontario, CA 91764
Principal Contact:
Mr. Armen Harkalyan, Executive Director of Finance
(909) 395-2019
aharkalyan@ontarioca.gov
3) City of Glendora
Scope of Work: Annual Comprehensive Financial Report, Single Audit, SAS 114, Gann
Limit, Housing Authority Compliance, Investment Policy Agreed-upon Procedures,
State Controller’s Report
Engagement Partner: Ahmed Badawi (2022 – Present)
Address: 116 E. Foothill Blvd., Glendora, CA 91741
Principal Contact:
Mr. Kyle Johnson, Assistant Finance Director
(626) 914-8245
kjohnson@cityofglendora.org
4) City of Lemon Grove
Scope of Work: Annual Comprehensive Financial Report, SAS 114, Gann Limit, State
Controller's Report, Lemon Grove Sanitation, Lemon Grove Roadway Lighting District,
Annual Street Report
Engagement Partner: Ahmed Badawi (2022 – Present)
Address: 3232 Main Street, Lemon Grove, CA 91945
Principal Contact:
Mr. Joseph Ware, Finance Director
(619) 825-3803
Jware@lemongrove.ca.gov
5) City of Wasco
Scope of Work: Annual Financial Report, SAS 114, GANN Limit, State Controller's
Report, Measure X
Engagement Partner: Ahmed Badawi (2021 – Present)
Address: 764 E Street, Wasco, CA 93280
Principal Contact:
Isarel Perez-Hernandez, Finance Director
(661) 758-7230
isperez@cityofwasco.org
Appendix
City of La Quinta Technical Proposal
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Exceptions to the Contract
With regard to the sample contract, RFP Attachment, Agreement for Contract Services, we
would like to edit the below paragraphs as follows:
7.3 Ownership of Documents. Unless such property is proprietary in nature, all drawings,
specifications, maps, designs, photographs, studies, surveys, data, notes, computer files,
reports, records, documents, and other materials plans, drawings, estimates, test data, survey
results, models, renderings, and other documents or works of authorship fixed in any tangible
medium of expression, including but not limited to, physical drawings, digital renderings, or data
stored digitally, magnetically, or in any other medium prepared or caused to be prepared by
Contracting Party, its employees, subcontractors, and agents in the performance of this
Agreement (the “Documents and Materials”) shall be the property of City and shall be delivered
to City upon request of the Contract Officer, or assigned designee, or upon the expiration or
termination of this Agreement, and Contracting Party shall have no claim for further employment
or additional compensation as a result of the exercise by City of its full rights of ownership use,
reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment
of such completed Documents and Materials for other projects and/or use of uncompleted
documents without specific written authorization by Contracting Party will be at City’s sole risk
and without liability to Contracting Party, and Contracting Party’s guarantee and warranties shall
not extend to such use, revise, or assignment. Contracting Party may retain copies of such
Documents and Materials for its own use. Contracting Party shall have an unrestricted right to
use the concepts embodied therein. All subcontractors shall provide for assignment to City of
any Documents and Materials prepared by them, and in the event Contracting Party fails to
secure such assignment, Contracting Party shall indemnify City for all damages resulting
therefrom.
F.1 Indemnity for the Benefit of the City.
a. Indemnification for Professional Liability. When the law establishes a professional
standard of care for Contracting Party’s Services, to the fullest extent permitted by law,
Contracting Party shall indemnify, protect, defend (with counsel selected by City), and hold
harmless City and any and all of its officials, employees, and agents (“Indemnified Parties”) from
and against any and all claims, losses, liabilities of every kind, nature, and description,
damages, injury (including, without limitation, injury to or death of an employee of Contracting
Party or of any subcontractor), costs and expenses of any kind, whether actual, alleged or
threatened, including, without limitation, incidental and consequential damages, court costs,
attorneys’ fees, litigation expenses, and fees of expert consultants or expert witnesses incurred
in connection therewith and costs of investigation, to the extent same are caused in whole or in
part by any negligent or wrongful act, error or omission of Contracting Party, its officers, agents,
employees or subcontractors (or any entity or individual that Contracting Party shall bear the
legal liability thereof) in the performance of professional services under this agreement, except
in such instances where same are caused by the sole or willful negligence or misconduct of the
City. With respect to the design of public improvements, the Contracting Party shall not be liable
for any injuries or property damage resulting from the reuse of the design at a location other
than that specified in Exhibit A without the written consent of the Contracting Party.
City of La Quinta Technical Proposal
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RFP Attachment – Insurance Requirements Acknowledgement
INSURANCE REQUIREMENTS ACKNOWLEDGEMENT
I, Ahmed Badawi (name) hereby acknowledge and confirm that
Badawi & Associates, CPAs (name of company) has reviewed
the City’s indemnification and minimum insurance requirements as listed in Exhibits E and F of
the City’s Agreement for Contract Services (Attachment 1); and declare that insurance
certificates and endorsements verifying compliance will be provided if an agreement is awarded.
I am President of Badawi & Associates, CPAs
(Title) (Company)
Commercial General Liability (at least as broad as ISO CG 0001)
$1,000,000 (per occurrence); $2,000,000 (general aggregate)
Must include the following endorsements:
General Liability Additional Insured
General Liability Primary and Noncontributory
Commercial Auto Liability (at least as broad as ISO CA 0001)
$1,000,000 (per accident)
Personal Auto Declaration Page if applicable
Errors and Omissions Liability $1,000,000 (per claim and aggregate)
Worker’s Compensation (per statutory requirements)
Must include the following endorsements:
Worker’s Compensation Waiver of Subrogation
Worker’s Compensation Declaration of Sole Proprietor if applicable
City of La Quinta Technical Proposal
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RFP Attachment – Non-Collusion Affidavit Form
NON-COLLUSION AFFIDAVIT FORM
I, Ahmed Badawi (name) hereby declare as follows:
I am President of Badawi & Associates, CPAs ,
(Title) (Company)
the party making the foregoing proposal, that the proposal is not made in the interest of, or on
behalf of, any undisclosed person, partnership, company, association, organization, or
corporation; that the proposal is genuine and not collusive or sham; that the proposer has not
directly or indirectly induced or solicited any other proposer to put in a false or sham proposal,
and has not directly or indirectly colluded, conspired, connived, or agreed with any proposer or
anyone else to put in a sham proposal, or that anyone shall refrain from proposing; that the
proposer has not in any manner, directly or indirectly, sought by agreement, communication, or
conference with anyone to fix the proposal price of the proposer or any other proposer, or to fix
any overhead, profit, or cost element of the proposal price, or of that of any other proposer, or
to secure any advantage against the public body awarding the agreement of anyone interested
in the proposed agreement; that all statements contained in the proposal are true; and, further,
that the proposer has not, directly or indirectly, submitted his or her proposal price or any
breakdown thereof, or the contents thereof, or divulged information or data relative hereto, or
paid, and will not pay, any fee to any corporation, partnership, company, association,
organization, proposal depository, or to any member or agent thereof to effectuate a collusive
or sham proposal.
I declare under penalty of perjury under the laws of the State of California that the foregoing is
true and correct.
Proposer Signature:
Proposer Name: Ahmed Badawi
Proposer Title: President
Company Name: Badawi & Associates, CPAs
Address: 2855 Telegraph Avenue, Suite 312, Berkeley, CA 94705
City of La Quinta Technical Proposal
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RFP Attachment – Acknowledgement of Receipt Of Addenda
ACKNOWLEDGEMENT OF RECEIPT OF ADDENDA
ADDENDUM NO. SIGNATURE INDICATING RECEIPT
New RFP with close date 12/01/2023
Questions And Answers