REQUEST FOR PROPOSAL

FOR FINANCIAL AUDIT SERVICES

Fiscal Year’s Ending 2008, 2009 & 2010

PURPOSE

The purpose of this request for proposal ("RFP") is to engage the services of a qualified firm to provide financial auditing services to the City of Rocklin.

SCOPE OF ENGAGEMENT

1.  The scope of the prospective engagement will be to prepare and audit the financial statements for the fiscal years ending June 30, 2008, 2009 and 2010, with an option of preparing and auditing the financial statements for two (2) subsequent fiscal years for the City. The prospective engagement will include audits of the City and its component units, including the Redevelopment Agency, Public Financing Authority, all tax/assessment districts formed in accordance with the Mello-Roos Act, the 1915 Bond Act, the Lighting and Landscaping Act of 1972 and single audit of federal awards.

2.  These audits are to be performed in accordance with generally accepted auditing standards established by the American Institute of Certified Public Accountants (AICPA), the standards set forth for financial audits in the General Accounting Office’s (GAO) Government Auditing Standards (current version), the provision of the Federal Single Audit Act of 1984 as amended, and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments and Non-Profit Organizations, and the procedures contained in the publication Guidelines for Compliance Audits of California Redevelopment Agencies (current version) as promulgated by the Controller of the State of California. Separate component unit independent auditor's reports and financial statements will also be prepared for the Redevelopment Agency and the Public Financing Authority.

REQUIRED PRODUCTS

1. / City of Rocklin – General Purpose Financial Statements and the Independent Auditors’ Report / 30 Bound copies, 1 unbound copy
2. / Redevelopment Agency - Component Unit Financial Statements and the Independent Auditors' Report / 25 Bound copies, 1 unbound copy
3. / Public Financing Authority - Component Unit Financial Statements and the Independent Auditors' Report / 20 Bound copies, 1 unbound copy
4. / Management Letter / 20 Bound copies, 1 unbound copy
5. / Independent Accountant’s Report of Agreed-Upon Procedures Applied to Appropriations Limit Worksheets / 20 Bound copies, 1 unbound copy
6. / Single Audit Compliance Reports / 20 Bound copies, 1 unbound copy
7. / Data Collection Form for Reporting on Audits of States, Local Governments and Non-Profit Organizations / Transmission to Federal Clearinghouse, 3 unbound copies

Delivery of the Redevelopment Agency - Component Unit Financial Statements and the Independent Auditors' Report is due by December 15 of each fiscal year. Other required product deadlines to be determined.

INQUIRIES

Inquiries concerning this RFP should be directed to:

Mary Rister, Senior Accountant

City of Rocklin

3970 Rocklin Road

Rocklin, CA 95677

(916) 625-5024

DUE DATE AND AWARD DATE

Written proposals are due prior to 2 p.m., Friday, June 20, 2008. Proposals post marked or hand-delivered after 2 p.m., Friday, June 20, 2008 will not be accepted. Anticipated award date of the contract is July 22, 2008, at the regular meeting of the City Council. The selected firm will be expected to sign a three-year service contract.

The proposer shall submit three (3) copies of the sealed proposal marked "Financial Audit Proposal" to the City Clerk, City of Rocklin, 3970 Rocklin Road, Rocklin, CA 95677 by 2 p.m., Friday, June 20, 2008. An itemized all-inclusive fee (for each fiscal year) must be sealed in a separate envelope and marked as such.

There is no expressed or implied obligation of the City of Rocklin to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.


GENERAL INFORMATION AND RECORDS TO BE AUDITED

A. General Information

The City of Rocklin is located in western Placer County and serves an area of approximately 19.25 square miles with a population of 51,951. Incorporated in 1893, the City of Rocklin is a General Law City operating under the Council/Manager form of government, employing 300 full-time employees and providing the following services to its citizens: public safety, streets, culture-recreation, public improvements, planning, roads, and general administrative services.

The City Council also serves as the governing body of the Redevelopment Agency and Public Financing Authority. The City has been subject to the Single Audit Act in the past due to various federal grants and anticipates being subject to the Single Audit in future years.

The City has a WAN/LAN that connects approximately 200 PC’s and other peripherals located in various departments and facilities to centralized servers. The City uses Tyler Technology software (MUNIS) for financial management, human resources and payroll processing.

The City of Rocklin’s fiscal year begins on July 1 and ends on June 30. The City adopts a two year budget by City Council resolution. The 2008-09 Final Budget has expenditures totaling $63,002,061. Current and prior year budgets may be viewed on the City’s website at www.Rocklin.ca.us.

The City is a member of the California Public Employees Retirement System (CalPERS). All eligible City employees participate in CalPERS. The City also offers a 457 deferred compensation plan. Reporting of Other Post –Employment Benefits per GASB Statement No. 45 will be required June 30, 2009.

B. Records to be Audited

The City maintains its ongoing financial records on a cash basis. At the end of each fiscal year financial records are adjusted to the modified accrual basis for year-end reporting. The accounting system is unified for all the City funds, the Agency funds, the Redevelopment Agency funds and Special Districts’ funds.

C. Fund Structure

The City maintains 79 individual funds and utilizes the following fund types to track financial activity throughout the year:

Number of

Fund Type Individual Funds

General Fund 5

Special Revenue Funds 31

Debt Service Funds 3

Capital Projects Funds 10

Internal Service Funds 1

Agency Funds 29

These funds are consolidated at various levels in the preparation of the Fund Financial Statements and GASB 34 compliant financial statements.

D. Other Information

1.  Recent Audit The most recent audit for the fiscal year ended June 30, 2007 is available for review. Please contact the Finance Division for hard copies. The previous auditor will have prior year work papers available to successful proposer. Prior year audits may be viewed on the City’s website at www.Rocklin.ca.us.

2. Finance Division Staff will complete end of year adjusting and closing entries. Staff will prepare trial balances, supporting schedules, account analysis and other selected data for auditors. Audit confirmations will be prepared by City with proposer’s designated format. Staff will be available during the audit to assist by providing information, documentation and explanations.

3. Working Paper Retention & Access to Working Papers. All working papers and reports must be retained at the auditor’s expense for a minimum of three (3) years, unless the City notifies the firm in writing that there is a need to extend the retention period.

QUALIFICATIONS REQUIRED

In order to be considered the firm presenting the proposal must be a firm of Certified Public Accountants eligible by law to practice public accounting in the State of California.

A. Proposal Content

In order to simplify the review process, and to obtain the maximum degree of comparability, the proposers are asked to organize proposals in the following manner:

1. Title Page Show the RFP subject, name of the audit firm, local address, telephone number, and name and title of contact person.

2. Table of Contents The table of contents of the proposal should include a clear and complete identification of the materials submitted by section and page number.

3. Letter of Transmittal Introductory in general, but should include the following:

a. A brief understanding of the audit service to be performed.

b. A positive commitment to perform the service within the time period specified on page 1 of the RFP Required Products.

c. The name(s) of the persons authorized to represent the proposer, their title, address, and telephone number.

d. Reference to a sealed envelope that contains an itemization of the all-inclusive fee for each fiscal year. The itemization should provide detail on the fee for the City, each component unit, the single audit and the preparation of the General Purpose Financial Statements.

4. Profile of the Independent Auditor.

For general background information, the following is required:

a) The organization and size of the proposer, whether it is local, national or international in operations.

b) The location of the office from which the work is to be done and the number of professional staff employed at that office.

c) A description of the range of activities performed by the local office applicable to government entities.

d)  A statement on the proposer's staff capability to audit governmental organizations, including the number, classifications and experience of personnel who will work on the audit.

e) Proposer's experience for preparing a Comprehensive Annual Financial Report for submission to the Government Finance Officers Association's Certificate of Achievement of Excellence in Financial Reporting.

B. Summary of Proposer's Qualifications.

1. Identify the audit managers, seniors, and other staff who will work on the audit, including staff from other than the local office. Resumes including relevant experience and continuing education for partner through senior assigned to the engagement should be included. (The resumes may be included as an appendix.)

2. Name, address, and telephone number of references in other governmental agencies for which your firm has performed audits.

C. Approach to the Examination.

Submit a work plan to accomplish the scope of the engagement and how the time requirement will be met. The work plan should include time estimates for each significant segment of the work and the staff level to be assigned and expected client assistance.

D. Additional Data.

Any other information the firm believes would assist the City in its evaluation process.

EVALUATION OF PROPOSALS

A committee will evaluate the proposals.

A. Evaluation

Although the factors to be considered in selecting an audit firm are not given specific weights, the following are some of the major factors on which the decision will be based.

1.  The audit firm is independent and licensed to practice in California

2.  The firm has no conflict of interest with regard to any other work performed by the firm for the City of Rocklin, the Rocklin Redevelopment Agency or the Rocklin Public Finance Authority.

3.  The proposal’s responsiveness in clearly stating the understanding of the work to be performed.

4.  The audit firm’s personnel have demonstrated professional skills, credentials, and professional activities of the staff to be assigned to the audit.

5.  The firm’s related technical experience and references on comparable government engagements.

7. Audit fee.

B. Right to Reject

The City reserves the right to reject any or all proposals and accepts no responsibility for the cost of proposal preparation.

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