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Contract No. ___________
Page 1 of 16
CITY OF EL MIRAGE
FINANCIAL AUDIT SERVICES
THIS CONTRACT is made and entered into this 1st day of May 2022, by and between the City of El
Mirage, an Arizona municipal corporation (“City”), and Henry + Horne, a Limited Liability Partnership
a (“Consultant”).
RECITALS
A. The City of El Mirage is authorized and empowered by provisions of the City Code to execute
contracts for professional services by and through its City Manager;
B. The City desires to contract for a consultant to provide Financial Auditing (“Services”) as described
in the attached scope of work (Exhibit “A”) in accordance with the terms of this Contract;
C. Consultant is duly qualified to perform the requested Services.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and obligations set for herein, the parties
hereto agree as follows:
1.1
DESCRIPTION, ACCEPTANCE, DOCUMENTATION
Consultant shall act under the authority and approval of the Contract Administrator for the City to
provide the Services required by this Contract. The Contract Administrator for the City shall be
Valerie Ojeda, Procurement Administrator, or designee. The Contract Administrator shall oversee
the execution of this Contract, assist the Consultant in accessing the organization, audit billings,
and approve payments. The Consultant shall channel reports and special requests through the
Contract Administrator. City reserves the right to change the Contract Administrator for the City
without prior approval of the Consultant.
1.2
SERVICE DESCRIPTION
Consultant shall provide the Services described in Exhibit “A.” All work will be reviewed,
evaluated, approved, and monitored by the Contract Administrator to determine acceptable
completion. Review and approval by the Contract Administrator shall not relieve Consultant of any
liability for improper, negligent, or inadequate services rendered pursuant to this Contract.
Consultant shall provide all work necessary to assure the Services are completed in a timely and
efficient manner consistent with service requirements, including, but not limited to, working in
close interaction with, and interfacing with, City and its designated employees, and working closely
with others, including other consultants or contractors retained by City.
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1.3
DOCUMENTATION AND DATA
All documents, including but not limited to, data compilations, studies, and reports which are
prepared in the performance of this Contract are to be, and remain the property of, the City and are
to be delivered to the Contract Administrator before final payment is made to the Consultant.
2.1
FEE SCHEDULE, RECORDS, AUDIT RIGHTS
The Consultant shall be paid for all Services provided pursuant to the terms of this Contract, for
fiscal year 2021-22 $41,625, for fiscal year 2022-23 $42,767, and for fiscal year 2023-24
$47,502. The total Contract shall not exceed ONE HUNDRED THIRTY-ONE THOUSAND
EIGHT HUNDRED NINETY-FOUR DOLLARS ($131,894).
The Contract Administrator reserves the exclusive right to determine the amount of work
performed and payment due the Consultant on a monthly basis. Consultant shall maintain all
books, paper documents, accounting records and other evidence pertaining to such monthly
billings and shall make such materials available at all reasonable times to the Contract
Administrator. Monthly billings shall be accompanied by such documentation as the Contract
Administrator may require to make a determination of work performed and payment due.
Consultant’s records (hard copy, as well as computer readable data) and any other supporting
evidence deemed necessary by the City to substantiate charges and claims related to this Contract
shall be open to inspection and subject to audit and/or reproduction by City’s authorized
representative to the extent necessary to adequately permit evaluation and verification of cost of
the work, and any invoices, change orders, payments or claims submitted by the Consultant or
any of its payees pursuant to the execution of the Contract. The City’s authorized representative
shall be afforded access, at reasonable times and places, to all the Consultant’s records and
personnel pursuant to the provisions of this article throughout the term of this contract and for a
period of three years after last or final payment.
Consultant shall require all subconsultants, insurance agents, and material suppliers (payees) to
comply with the provisions of this article by insertion of the requirements hereof in a written
contract agreement between Consultant and payee. Such requirements will also apply to any and
all subconsultants.
If any audit in accordance with this article discloses overcharges of any nature by the Consultant
to the City in excess of one percent (1%) of the total contract billings, the actual cost of the City’s
audit shall be reimbursed to the City by the Consultant. Any adjustments and/or payments which
must be made as a result of any such audit or inspection of the Consultant’s invoices and/or
records shall be made within a reasonable amount of time (not to exceed 90 days) from
presentation of City’s findings to Consultant.
2.2
ADDITIONAL SERVICES; PRICE ADJUSTMENT
The total Scope of Work to be performed by Consultant in accordance with this Contract is set
forth herein and in Exhibit “A.” Services not included in this Contract, including Exhibit “A,”
will be considered Additional Services. Consultant shall not perform any Additional Services
without written authorization from the City. It shall be presumed that all Services
performed/provided by Consultant were included in the Contract and contemplated by Consultant
as being part of the original Scope of Work and the fees set forth herein, unless such Services
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have been separately approved by the City, in writing, as Additional Services. Consultant shall
not be paid for any Additional Services that are not authorized by the City in writing.
2.3
OWNERSHIP
Upon receipt of payment for Services, Consultant grants to City, and shall cause its subconsultants
to grant to City, the exclusive ownership of any and all copyrights, if any, to evaluations, reports,
drawings, specifications, project manuals, surveys, estimates, reviews, minutes, and other
intellectual work product as may be applicable ("Work Product"). This grant is effective whether
the Work Product is on paper (e.g., a "hard copy"), in electronic format, or in some other form.
Consultant warrants, and agrees to indemnify, hold harmless and defend City for, from and against
any claim that any Work Product infringes on third-party proprietary interests. City may reuse the
Work Product at its sole discretion. In the event the Work Product is used for another project
without further consultations with Consultant, the City agrees to indemnify and hold Consultant
harmless from any claim arising out of the Work Product. In such case, City will also remove any
title block from the Work Product.
3.1
TERM AND EXTENSION
This Contract shall be in full force and effect only when approved and signed by City’s City
Manager as attested by the City Clerk. This Contract begins on the Effective Date and continues
for three (3) years to April 30, 2025, with an option to extend for an additional two (2) years.
3.2
TERMINATION
3.2.1
Termination for Cause
The City has the right to terminate this Contract for cause in the event Consultant materially
breaches any provision of this Contract or portion of the Services and fails to remedy the
breach within five (5) business days of notification of the breach, if the breach is remedial.
If Consultant fails to remedy the breach or if the breach is not remedial, City may terminate
this Contract for cause immediately upon written notice to Consultant. In the event the City
terminates this Contract, or any part of the Services as herein provided pursuant to this
Section 3.2.1, the City shall notify the Consultant in writing, and immediately upon receipt
of such notice, the Consultant shall discontinue all work under this Contract.
Upon termination for cause, Consultant shall immediately deliver to the City all drawings,
research, data, studies, reports, estimates and any and all other documents or work product
generated by the Consultant under the Contract, together with all unused material supplied
by the City. Consultant shall be responsible only for such portion of the work which has
been completed and accepted by the City. Use of incomplete data by the City shall be the
City’s sole responsibility.
In the event of termination for cause, Consultant shall only be compensated a portion of
the agreed upon fee for such portion of the work that City agrees, in its sole discretion to
accept. City shall have no obligation to accept any portion of Consultant’s work if the
contract is terminated for cause and shall have no obligation to pay Consultant for any
portion of the work, if any, not accepted by City.
If the Consultant materially fails to fulfill in a timely and proper manner its obligations
under this Contract, of if the Consultant violates any of the covenants, agreements, or
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stipulations of this Contract, the City may withhold from payment due to the Consultant
such amounts as are necessary to protect the City’s position for the purpose of set-off until
such time as the exact amount of damages can be determined.
3.2.2. Termination for Convenience
The City has the right to terminate this Contract for convenience or to abandon any portion
of the work for which Services have not been performed by the Consultant. In the event
the City terminates this Contract, or any part of the Services as herein provided pursuant
to this Section 3.2.2, the City shall notify the Consultant in writing, and immediately upon
receipt of such notice, the Consultant shall discontinue all work under this Contract.
Upon such termination for convenience or abandonment, the Consultant shall immediately
deliver to the City all drawings, research, data, studies, reports, estimates and any and all
other documents or work product generated by the Consultant under the Contract, together
with all unused material supplied by the City. Consultant shall be responsible only for such
portion of the work which has been completed and accepted by the City. Use of incomplete
data by the City shall be the City’s sole responsibility.
The Consultant shall receive as compensation in full for Services performed to the date of
such termination or abandonment, a fee for the percentage of Services completed and
accepted by the City. This fee shall be in an amount to be mutually agreed upon by the
Consultant and the City, based upon the scope of work set forth in Exhibit “A’ and the
payment schedule set forth in Article 2, hereof. If mutual agreement cannot be reached
after reasonable negotiation, the Contract Administrator shall determine the percentage of
satisfactory completion of each task set forth in the scope of work contained in Exhibit “A”
and the amount of compensation Consultant is entitled to for such work and the Contract
Administrator’s determination in this regard shall be final. The City shall make such final
payment within sixty (60) days after the Consultant has delivered the last of the partially
completed items.
3.3
FUNDS APPROPRIATION
If the City Council does not appropriate funds to continue this Contract and pay for charges
hereunder, the City may terminate this Contract at the end of the current fiscal period. The City
agrees to give written notice, pursuant to Section 3.2, Termination, of this Contract to the
Consultant at least thirty (30) days prior to the end of its current fiscal period and will pay to the
Consultant all approved charges incurred through the end of such period.
The City's fiscal year begins July 1st and ends June 30th each calendar year. The City may make
payment for Services rendered or costs encumbered only during a fiscal year and for a period of
sixty (60) days immediately following the close of the fiscal year, under the provisions of Arizona
Revised Statutes § 42-17108. Therefore, Consultant must submit billings for Services performed
or costs incurred prior to the close of a fiscal year within forty-five (45) days to allow payment
within this period.
4.1
ENTIRE AGREEMENT
This Contract constitutes the entire understanding of the parties and supersedes all previous
representations, written or oral, with respect to the Services specified herein. This Contract may
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not be modified or amended except by a written document, signed by authorized representatives of
each party.
4.2
ARIZONA LAW
This Contract shall be governed and interpreted according to the laws of the State of Arizona. Any
action brought to interpret or enforce any provision of this Contract that cannot be administratively
resolved, or otherwise related to or arising from this Contract, shall be commenced and maintained
in the state or federal courts of the State of Arizona, Maricopa County, and each of the parties, to
the extent permitted by law, consents to jurisdiction and venue in such courts for such purposes.
4.3
COMPLIANCE WITH LAWS
Consultant shall comply with all existing and subsequently enacted federal, state, and local laws,
ordinances, codes, and regulations that are, or become applicable to this Contract. If a subsequently
enacted law imposes substantial additional costs on Consultant, a request for an amendment may
be submitted pursuant to this Contract.
4.4
MODIFICATIONS
Any amendment, modification, or variation from the terms of this Contract shall be in writing and
shall be effective only after approval of all parties signing the original Contract.
4.5
ASSIGNMENT
Services covered under this Contract shall not be assigned or sublet in whole or in part
without the prior written consent of the Finance Director and Contract Administrator.
4.6
SUCCESSORS AND ASSIGNS
This Contract shall extend to and be binding upon Consultant, its successors and assigns, including
any individual, company, partnership, or other entity with or into which Consultant shall merge,
consolidate, or be liquidated, or any person, corporation, partnership, or other entity to which
Consultant shall sell its assets.
4.7
ATTORNEY’S FEES
In the event either party brings any action for any relief, declaratory or otherwise, arising out of
this Contract, or on account of any breach or default hereof, the prevailing party may be entitled to
receive from the other party reasonable attorneys’ fees and reasonable costs and expenses
determined by the court sitting without a jury or arbitration board, which shall be deemed to have
accrued on the commencement of such action and shall be enforceable whether or not such action
is prosecuted to judgment or by arbitration award.
4.8
INDEPENDENT CONTRACTOR
The Services Consultant provides under the terms of this Contract to the City are that of an
Independent Contractor, not an employee or agent of the City. The City will report the value paid
for these Services each year to the Internal Revenue Service (I.R.S.) using Form 1099.
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City shall not withhold income tax as a deduction from contractual payments. As a result of this,
Consultant may be subject to I.R.S. provisions for payment of estimated income tax. Consultant is
responsible for consulting the local I.R.S. office for current information on estimated tax
requirements. Consultant will not be entitled to any benefits provided by City to its employees,
including, but not limited to, health benefits, workers’ compensation, unemployment coverage,
deferred compensation, and all other typical employee benefits.
4.9
CONFLICT OF INTEREST
The City may cancel any contract or agreement, without penalty or obligation, if any person
significantly involved in initiating, negotiating, securing, drafting or creating the contract on behalf
of the City’s departments or agencies is, at any time while the contract or any extension of the
contract is in effect, an employee of any other party to the contract in any capacity or a consultant
to any other party to the Contract with respect to the subject matter of the Contract. The cancellation
will be effective when written notice from the City is received by all other parties to the Contract
unless the notice specifies a later time (A.R.S. §38-511).
4.10
NOTICES
All notices or demands required to be given pursuant to the terms of this Contract shall be given
to the other party in writing, delivered by hand or registered or certified mail, at the addresses set
forth below, or to such other address as the parties may substitute by written notice given in the
manner prescribed in this paragraph.
In the case of Consultant:
Henry + Horne, LLP
Attn: Brian Hemmerle
2055 E. Warner Rd., Suite 101
Tempe, Arizona 85284
In the case of City
City of El Mirage
Attn: City Manager
10000 North El Mirage Road
El Mirage, Arizona 85335
With a copy to:
City of El Mirage
City Attorney
10000 North El Mirage Road
El Mirage, Arizona 85335
Notices shall be deemed received on date delivered, if delivered by hand, and on the delivery, date
indicated on receipt if delivered by certified or registered mail.
4.11
FORCE MAJEURE
Neither party shall be responsible for delays or failures in performance resulting from acts beyond
their control. Such acts shall include, but not be limited to, acts of God, riots, acts of war, epidemics,
governmental regulations imposed after the fact, fire, communication line failures, power failures,
or earthquakes.
4.12
TAXES
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Consultant shall be solely responsible for any and all tax obligations which may result out of the
Consultant’s performance of this Contract. The City shall have no obligation to pay any amounts
for taxes of any type incurred by the Consultant.
4.13
ADVERTISING AND PROMOTION
Consultant shall not publish, release, disclose or announce to any member of the public, press,
official body, or any other third party: (1) any information concerning this Contract, the Services,
or any part thereof; or (2) any documentation or the contents thereof, without the prior written
consent of the City, except as required by law or judicial or regulatory process. The name of any
site on which Services are performed shall not be used in any advertising or other promotional
context by Consultant without the prior written consent of the City.
4.14
COUNTERPARTS
This Contract may be executed in one or more counterparts, and each originally executed duplicate
counterpart of this Contract shall be deemed to possess the full force and effect of the original.
4.15
CAPTIONS
The captions used in this Contract are solely for the convenience of the parties, do not constitute a
part of this Contract and are not to be used to construe or interpret this Contract.
4.16
SUBCONSULTANTS
During the performance of the Contract, the Consultant may engage such additional subconsultants
as may be required for the timely completion of this Contract. The addition of any subconsultants
shall be subject to the prior approval of the City.
In the event of subcontracting, the sole responsibility for fulfillment of all terms and conditions of
this Contract rests with the Consultant.
4.17
INDEMNIFICATION
The Consultant agrees, to the fullest extent permitted by law, to indemnify and hold harmless the
City, its officers, directors, and employees (collectively, City) against all damages, liabilities, or
costs, including reasonable attorneys’ fees and defense costs, to the extent caused by the
Consultant’s negligent performance of professional services under this Contract and that of its
subcontractors or anyone for whom the Consultant is legally liable.
The City agrees, to the fullest extent permitted by law, to indemnify and hold harmless the
Consultant, its officers, directors, employees, and subcontractors (collectively, Consultant) against
all damages, liabilities or costs, including reasonable attorney’s fees and defense costs, to the extent
caused by the City’s negligent acts in connection with the Services and the acts of its contractors,
subcontractors or consultants or anyone for whom the City is legally liable.
Neither the City nor the Consultant shall be obligated to indemnify the other party in any manner
whatsoever for the other party’s own negligence or for the negligence of others.
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4.18
INSURANCE
The Consultant shall secure and maintain at all times that this Contract is in effect, insurance
coverage which shall include statutory workers’ compensation, comprehensive general and
automobile liability, owner’s and Consultant’s protective liability insurance and errors and
omissions professional liability. The comprehensive general and automobile liability limits shall
be no less than one million dollars ($1,000,000) combined single limit. The owner’s and
Consultant’s protective liability limits shall be no less than one million dollars ($1,000,000) for
each occurrence and one million dollars ($1,000,000) policy aggregate naming the City as an
additional insured. The minimum amounts of coverage for Consultant’s professional liability shall
be one million dollars ($1,000,000). In other than errors and omissions professional liability, Cities
and Consultant’s protective liability and worker’s compensation, the City of El Mirage shall be
named as an additional insured.
All insurance coverage shall be written through a carrier licensed in Arizona, or an approved non-
admitted list of carriers published by the Arizona Department of Insurance and possessing an A.M.
Best rating of at least A- or above with policies and forms satisfactory to the City.
The Consultant shall submit to the City a certificate of insurance evidencing the coverage and limits
stated in the foregoing paragraph within ten (10) days of award of this Contract. City shall not issue
a “Notice to Proceed” until after Consultant has submitted the certificate of insurance to City.
Insurance evidenced by the certificate shall not expire or be canceled or materially changed without
thirty (30) days prior written notice to the City, and a statement to that effect must appear on the
face of the certificate and the certificate shall be signed by a person authorized to bind the insurer.
The insurance policies, except Workers’ Compensation required by this Contract, shall name the
City, its agents, representatives, officers, directors, officials, and employees as Additional Insureds.
4.19
FEDERAL AND STATE EMPLOYMENT IMMIGRATION LAWS
To the extent applicable under A.R.S. § 41-4401, Consultant warrants its and its subconsultants’
compliance with all federal immigration laws and regulations that relate to their compliance with
the E-verify requirements under A.R.S. § 23-214(A). Consultant’s or its subconsultants’ breach of
the above-mentioned warranty shall be deemed a material breach of the Contract and may result in
the termination of the Contract by the City. The City retains the legal right to randomly inspect the
papers and records of Consultant and its subconsultants to ensure that the Consultant and its
subconsultants are complying with the above-mentioned warranty.
The Consultant warrants to keep the papers and records open for random inspection during normal
business hours by the City. The Consultant shall cooperate with the City’s random inspections
including granting the City entry rights to Consultant’s property to perform the random inspections
and waiving its right to keep such papers and records confidential. The failure of Consultant to
comply with this warranty regarding the keeping of papers and records and cooperating with City’s
random inspections shall constitute a material breach of the Contract and the City will have the
right to immediately terminate the Contract.
4.20
SEVERABILITY
If any term or provision of this Contract shall be found to be illegal or unenforceable, then
notwithstanding such illegality or unenforceability, this Contract shall remain in full force and
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effect and such term or provision shall be deemed to be deleted.
CITY OF EL MIRAGE
CONSULTANT: __________________________
By: ______________________________
_______________________________
Print Name
By: J. Crystal Dyches
Its: City Manager
By: ______________________________
Signature
Its _______________________________
Title
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
___________________________
City Attorney
Henry & Horne, LLP
Brian Hemmerle
CPA and Partner
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EXHIBIT “A”
SCOPE OF WORK
CITY OF EL MIRAGE, ARIZONA
Finance Department
REQUEST FOR PROPOSALS
SCOPE OF WORK
FINANCIAL AUDIT SERVICES
February 15, 2022
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TABLE OF CONTENTS
PAGE
NO
SECTION I – INTRODUCTION ............................................................................................ 16
SECTION II – GENERAL REQUIREMENTS....................................................................... 16
SECTION III – OBJECTIVE & SCOPE ........................................................................................... 17
SECTION IV – REQUIRED PROPOSAL RESPONSE ......................................................... 18
SECTION IV – EVALUATION OF PROPOSAL & AWARD .............................................. 20
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Article I.
Article II. Financial Audit Services
1)
SECTION I - Introduction
The City of El Mirage is requesting for a three (3) year contract for Financial Audit Services as
required by Arizona State Statutes and in conformance with generally accepted government
auditing standards (GAGAS). The Contract shall commence May 1, 2022, and extend through April
30, 2025, subject to an annual performance evaluation, City Council budget appropriations, and the
needs of the City. The City requires the contractor provide auditing services for fiscal years ending
June 30, 2022, June 30, 2023, and June 30, 2024.
The City also reserves the right to offer an annual contract extension up to an additional two (2)
years also subject to an annual performance evaluation, City Council budget appropriations, and the
needs of the City. The first extension (if offered) shall commence May 1, 2025, and extend through
April 30, 2026, providing auditing services for fiscal year ending June 30, 2025. The second and final
extension (if offered) shall commence May 1, 2026, and extend through April 30, 2027, providing
auditing services for fiscal year ending June 30, 2026.
The City of El Mirage reports the following major governmental funds: General, Special Projects,
and Capital Streets. The City of El Mirage reports the following non-major special revenue funds:
Municipal Court, Municipal Court Enhancement, Streets (HURF), Dial-A-Ride (LTAF), Police
Towing, and Community Development Block Grant. The City of El Mirage reports the following
enterprise funds: Water, Sewer, and Sanitation.
Total government-wide revenue for all funds and component units was $59,228,878 for the fiscal
year ending June 30, 2021. The City of El Mirage currently uses Caselle software for all accounting
applications. The Finance Department Staff consists of six (6) full-time employees and one (1) part-
time employee.
2)
SECTION II – General Requirements
The City of El Mirage is required by State Law to provide an annual audit of its financial statement by
a Certified Public Accountant in accordance with GAGAS. This requirement includes:
1. A financial statement audit in accordance with generally accepted government auditing
standards (GAGAS).
2. A State compliance audit in accordance with the State Compliance Audit Guide, issued by the
Office of the State Auditor of Arizona.
3. Depending on levels of federal funding, a Single Audit in accordance with the Single Audit Act
and OMB. This audit must be submitted to the State Auditor’s Office within seven (7) months
after the end of the year.
To be considered, the proposing independent auditing firm must meet the following minimum criteria:
1. The firm must meet the generally accepted government auditing standards (GAGAS)
continuing professional education, independence, peer review, and licensing requirements
(A.R.S. §9-481).
2. The firm must have experience in governmental auditing. The experience must have been on
an entity wide basis, and an opinion must have been issued.
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3. The firm must be able to meet the reporting deadlines described in the Request for Proposal.
SECTION III – Objective and Scope
The purpose of this proposal is to enter a contract with a certified public accounting firm to provide financial
audit services for the fiscal years ending June 30, 2022, June 30, 2023, and June 30, 2024, with extensions to
provide financial audit services for the fiscal years ending June 30, 2025, and June 30, 2026. The contract is
subject to an annual performance evaluation, City Council budget appropriations, and the needs of the City.
The following is the required scope of work the auditor must perform.
A.
AUDIT STANDARDS
The auditor shall perform a financial audit, a State compliance audit, and depending on levels
of federal funding, a single audit of The City of El Mirage for each fiscal year of the contract
period in accordance with the following:
1. Auditing standards generally accepted in the United States of America, as promulgated by
the American Institute of Certified Public Accountants (AICPA);
2. The AICPA Audits of State and Local Governmental Units audit and accounting guide;
3. Government Auditing Standards, most current revision, published by the U.S. Government
Accountability Office;
4. For the single audit – the Single Audit Act; OMB Audits of States, Local Governments, and
Non-Profit Organizations and related OMB Compliance Supplement (as applicable).
5. State of Arizona Uniform Expenditure Reporting System requirements (UERS)
mandated by the A.R.S. §41-1279.07, with guidelines set forth by the Arizona
Auditor General.
6.
B.
REPORTING REQUIREMENTS
1. Financial Report – Although the City has the capability it lacks the capacity to prepare and print
the City’s Annual Comprehensive Financial Report (ACFR) including all financial statements and
combining supplementary information. The City requests that the auditor prepare and print the
ACFR. The City will update the Management Discussion and Analysis (MD&A) and statistical
section of the ACFR and provide timely reviews of the financial statements. The auditor shall audit
the ACFR and records of the City of El Mirage and shall issue an auditor's opinion on those
financial statements and an in-relation-to opinion on the combining and supplementary
information. The City has received the Government Finance Officers Association's Certificate of
Achievement for Excellence in Financial Reporting for the last nine (9) consecutive years,
including fiscal year 2020. Such financial statements shall be prepared in conformity with
accounting principles generally accepted in the United States of America as promulgated by the
GASB.
2. Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters – The auditor shall issue a report on internal control over financial reporting
and on compliance and other matters in accordance with Government Auditing Standards.
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3. Reports Required for the OMB Audit – If OMB Audit is applicable, the
auditor shall prepare all necessary audit reports and schedules required by OMB.
4. Report Required for State Compliance Audit – The auditor shall prepare and include a statement
expressing positive assurance of compliance with State fiscal laws and other financial issues
related to the expenditure of funds received from federal, state, or local governments.
5. Management Letter – As appropriate, the auditor shall prepare a comprehensive management
letter including the auditor's findings and recommendations relative to the internal control over
financial reporting, compliance with laws and regulations, as applicable, and adherence to
generally accepted accounting principles.
The auditor shall request written responses from City officials for each recommendation and
shall include such responses in the reports. If the City declines the opportunity to respond, the
auditor shall so state in their report.
6. Reporting Deadlines – The audit must be completed and provide twenty-five (25) physical
copies and an electronic copy of each of the required auditor’s reports must be submitted to the
City before the first (1) Tuesday in December of each contract year. The firm must present
the audit report to the City Council by the f i rst (1) Tuesday in December of each contract
year.
C.
AUDIT TERM
The selected the firm shall perform the audit for fiscal year ending June 30, 2022, June 30, 2023,
and June 30, 2024, with extensions up to an additional two (2) fiscal years. The contract is subject
to an annual performance evaluation, City Council budget appropriations, and the needs of the City.
The City reserves the right to review the contract on a regular basis regarding performance and
cost analysis and may negotiate price and service elements during the term of the contract.
SECTION IV – Required Proposal Response
The proposal must include the following information listed in section IV to be considered to perform
the audit of the fiscal year ending June 30, 2022. All associated fees must be detailed. Add any level
of detail necessary for complete disclosure.
The profile of the proposers should provide general background information. This should include:
1. The organization and size of the proposer, whether it is local, regional, national, or international
in operations.
2. The location of the office from which the work is to be done and the number of professional staff,
by staff level, employed at the office. Also describe the proposer’s policy on
availability/responsiveness of staff and potential fees for questions between audit years.
3. A positive statement that the following mandatory criteria are satisfied:
(a)
An affirmative statement should be included that the firm and all assigned key professional staff
are in good standing and properly licensed to practice in the State of Arizona.
(b)
An affirmation that the proposer meets the independence requirements of AICPA Rule 101 and
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the Government Auditing Standards.
(c)
An affirmation that the firm meets the continuing education and external quality control review
requirements contained in the current version of the Government Auditing Standards.
4. Is the proposer, any principals of the proposer, or any affiliate to the proposer the focus of any pending
or ongoing litigation, formal investigation, or administrative proceedings related to attestation services?
If yes, please describe.
5. A copy of the proposer’s most recent peer review report.
D.
PROPOSER'S QUALIFICATIONS
1. Identify the audit partners, audit managers, field supervisors and other staff who will work on the audit,
including staff from other than the local office. Include resumes which outline relevant experience and
continuing education for the staff auditors up to the individual with final responsibility for the audit.
2. Describe the recent local office auditing experience similar to the type of audit requested.
3. If other auditors are to participate in the audit, those auditors should be required to provide similar
information.
4. Provide a list of Arizona municipalities that the audit firm currently provides Financial Auditing
Services to.
E.
APPROACH TO THE EXAMINATION
Submit a general audit work plan to accomplish the scope defined in these guidelines. The audit work
plan should demonstrate the proposer's understanding of the audit requirements and the audit tests and
procedures to be applied in completing the audit plan. The plan should detail the expected number of
audit hours for the financial audit and compliance audit separately on an annual basis for each fiscal
year being audited. The plan should also identify the breakdown of total hours between staff, in-
charges, and higher levels. The planned use of specialists, if any, should also be specified. Please base
expected number of audit hours on previous experience similar to the type of audit requested.
At times in the past the City has received sufficient federal funds to trigger a single audit. As such, the
proposer is requested to provide a separate estimate for fees and hours for single audit services should
those services be required.
The City encourages, but does not require, some preliminary work during the month of June in an
effort to spread out the time requirements on City management and staff. That preliminary work should
be restricted principally to documentation and testing of internal controls and systems and compliance
testing.
The City of El Mirage Court is mandated by the Administration Office of the Court (AOC) to be
audited triennially. This audit is schedule fiscal year ending June 30, 2024, and June 30, 2027. Submit
a cost to perform each audit.
F.
TIME REQUIREMENTS
Contract No. ___________
Page 16 of 16
The City requires audit work to commence between September 15th and October 15th annually.
Please affirm your ability to facilitate this request.
G.
FEES
Supply the billing rates, estimated number of billable hours, other billable expenses and a
comprehensive "not-to-exceed" fee for the audit, inclusive of travel, per diem, and all other out-of-
pocket expenses. It is expected that if the selected certified public accounting firm performs
satisfactorily for the June 30, 2022, audit, it will be engaged to perform the audit for up to four (4)
additional years. Therefore, the not-to-exceed fee information requested above should be provided
on an annual basis for the fiscal years ending June 30, 2022, June 30, 2023, and June 30, 2024. The
City-option annual contract extensions will be negotiated before the start of each extension. Please
provide a separate estimate for fees and hours for single audit services should those services be
required.
SECTION V – Evaluation of Proposal & Award
The requested proposal is for a professional service contract and will be direct selected by the
City Manager of El Mirage in accordance with the City of El Mirage purchasing code §30.25
Professional Service.
Award may not be made to the institution submitting the lowest price. The City of El Mirage, City
Manager will direct select in the best interest for the City the institution submitting the best and most
responsive proposal.
The City of El Mirage is requesting all proposals back on or before March 15, 2022.
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