HomeMy WebLinkAboutItem No. 14 Agreement Perform Auditing Svs for FY ending June 30, 2017-2019Text File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 17-194
Agenda Date: 5/23/2017 Status: Consent AgendaVersion: 1
File Type: AgreementIn Control: City Council
Agenda Number: 14)
Page 1 City of Lake Elsinore Printed on 5/19/2017
REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by:Jason Simpson, Assistant City Manager
Date:May 23, 2017
Subject:Agreement to Perform Auditing Services for the Fiscal Years Ending
June 30, 2017, 2018, and 2019
Recommendation
Approve and Authorize the City Manager to execute a professional services agreement (three-
year term with up to two (2) one-year extensions at City’s option) in the annual amount of
$50,480 with Lance, Soll & Lunghard, LLP. (LSL), Certified Public Accountants, to perform
professional auditing services, in a form approved the City Attorney.
Background
On Thursday, February 17, 2017, the City sent out a Request for Proposal (RFP) for
professional auditing services to forty-three (43) firms using Bids Online from Planet Bids, the
City’s online bidding/RFP service. Six (6) proposals were received and opened at 3:00 p.m. on
March 21, 2017.
Discussion
The proposals were reviewed and evaluated by staff and presented to the City Treasurer,
Assistant City Manager, Finance Manager, and Finance Administrator. While all six firms met
the minimum qualification requirements, the team selected two (2) firms for in-person
presentations and interviews. Based upon the Committee’s review, evaluation, and interviews,
the team unanimously recommends LSL, LLP, Certified Public Accountants. The basis for this
recommendation is as follows:
1. LSL are the lowest responsible bidder in terms of average cost per hour.
2. LSL’s proposal is approximately $6,500 less annually than the City’s current firm.
3. The firm has over 80 years of experience auditing City governments.
4. They are Top Ranked Orange County CPA.
5. They have several recommendations from other municipal clients in Riverside
County.
Selection of Audit Firm
Page 2 of 2
6. Staff determined that LSL’s proposed team of professionals has the capacity to meet
deadlines, provide year-long input, and technical support to City staff on a wide
range of accounting, tax, and advisory issues out of all the firms evaluated.
Fiscal Impact
The maximum annual audit fees for the fiscal years ending June 30, 2017, 2018, and 2019
under the proposed contract attached, will be $50,480 per fiscal year. The FY 2016-17
operating budget already incorporates sufficient funds to cover the cost that will be incurred in
the current year. Funding for FY 2017-18 has been included the proposed FY17-18 annual
operating budget.
Exhibits:
A Agreement for Professional Services
B Proposal
C Fee Schedule
@BCL@98050ADA Page 1
AGREEMENT FOR PROFESSIONAL SERVICES
Lance, Soll, & Lunghard (LSL), LLP
Profession Audit Services
This Agreement for Professional Services (the “Agreement”) is made and entered into as
of May 23rd, 2017, by and between the City of Lake Elsinore, a municipal corporation (‘‘City")
and Lance, Soll & Lunghard (LSL), a LLP ("Consultant").
RECITALS
A.The City has determined that it requires the following professional services:
Professional Auditing Services for the City.
B.Consultant has submitted to City a proposal, dated March 21st, 2017, attached
hereto as Exhibit A (“Consultant’s Proposal”) and incorporated herein, to provide professional
services to City pursuant to the terms of this Agreement.
C.Consultant possesses the skill, experience, ability, background, certification and
knowledge to perform the services described in this Agreement on the terms and conditions
described herein.
D.City desires to retain Consultant to perform the services as provided herein and
Consultant desires to provide such professional services as set forth in this Agreement.
AGREEMENT
1.Scope of Services. Consultant shall perform the services described in
Consultant’s Proposal (Exhibit A). Consultant shall provide such services at the time, place, and
in the manner specified in Consultant’s Proposal (Exhibit A), subject to the direction of the City
through its staff that it may provide from time to time.
2.Time of Performance.
a.Time of Essence. Time is of the essence in the performance of this
Agreement. The time for completion of the professional services to be performed by Consultant
is an essential condition of this Agreement. Consultant shall prosecute regularly and diligently
the professional services contemplated pursuant to this Agreement according to the agreed
upon performance schedule in Consultant’s Proposal (Exhibit A).
b.Performance Schedule. Consultant shall commence the services
pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all
services within the time period(s) established in the Consultant’s Proposal (Exhibit A). When
requested by Consultant, extensions to the time period(s) specified may be approved in writing
by the City Manager.
c.Term.
Unless earlier terminated as provided elsewhere in this Agreement, this
Agreement shall continue in full force and effect for a period of Three (3) years, commencing on
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May 23rd, 2017 and ending on June 30
th, 2019. The City may, at its sole discretion, extend the
term of this Agreement on a 12-month basis not to exceed Two (2) additional twelve (12) month
renewal terms by giving written notice thereof to Consultant not less than thirty (30) days before
the end of the contract term, such notice to be exercised by the City Manager.
3.Compensation. Compensation to be paid to Consultant shall be in accordance
with the fees set forth in Consultants’ Proposal (Exhibit A), which is attached hereto and
incorporated herein by reference. In no event shall Consultant’s compensation exceed One
Hundred Fifty One Thousand Four Hundred and Forty Dollars ($151,440) without additional
written authorization from the City. Annual compensation during each renewal term, if any, shall
not exceed Fifty Thousand Four Hundred and Eighty Dollars ($50,480). Notwithstanding any
provision of Consultant’s Proposal to the contrary, out of pocket expenses set forth in Exhibit A
shall be reimbursed at cost without an inflator or administrative charge. Payment by City under
this Agreement shall not be deemed a waiver of defects, even if such defects were known to the
City at the time of payment.
4.Method of Payment. Contractor shall promptly submit billings to the City
describing the services and related work performed during the preceding month to the extent
that such services and related work were performed. Contractor’s bills shall be segregated by
project task, if applicable, such that the City receives a separate accounting for work done on
each individual task for which Contractor provides services. Contractor’s bills shall include a
brief description of the services performed, the date the services were performed, the number of
hours spent and by whom, and a description of any reimbursable expenditures. City shall pay
Contractor no later than forty-five (45) days after receipt of the monthly invoice by City staff.
5.Reserved.
6.Suspension or Termination.
a.The City may at any time, for any reason, with or without cause, suspend
or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten
(10) days prior written notice. Upon receipt of such notice, the Consultant shall immediately
cease all work under this Agreement, unless the notice provides otherwise. If the City suspends
or terminates a portion of this Agreement, such suspension or termination shall not make void or
invalidate the remainder of this Agreement.
b.In the event this Agreement is terminated pursuant to this Section, the
City shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City, pursuant to Section
entitled “Method of Payment” herein.
7.Ownership of Documents. All plans, studies, documents and other writings
prepared by and for Consultant, its officers, employees and agents and subcontractors in the
course of implementing this Agreement, except working notepad internal documents, shall
become the property of the City upon payment to Consultant for such work, and the City shall
have the sole right to use such materials in its discretion without further compensation to
Consultant or to any other party. Consultant shall, at Consultant’s expense, provide such
reports, plans, studies, documents and other writings to City upon written request. City
acknowledges that any use of such materials in a manner beyond the intended purpose as set
forth herein shall be at the sole risk of the City. City further agrees to defend, indemnify and
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hold harmless Consultant, its officers, officials, agents, employees and volunteers from any
claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including
any and all costs and expenses in connection therein), arising out of the City’s use of such
materials in a manner beyond the intended purpose as set forth herein.
a.Licensing of Intellectual Property. This Agreement creates a
nonexclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and
all copyrights, designs, and other intellectual property embodied in plans, specifications, studies,
drawings, estimates, and other documents or works of authorship fixed in any tangible medium
of expression, including but not limited to, physical drawings or data magnetically or otherwise
recorded on computer diskettes, which are prepared or caused to be prepared by Consultant
under this Agreement ("Documents & Data"). Consultant shall require that all subcontractors
agree in writing that City is granted a nonexclusive and perpetual license for any Documents &
Data the subcontractor prepares under this Agreement. Consultant represents and warrants
that Consultant has the legal right to license any and all Documents & Data. Consultant makes
no such representation and warranty in regard to Documents & Data which were prepared by
design professionals other than Consultant or provided to Consultant by the City. City shall not
be limited in any way in its use of the Documents & Data at any time, provided that any such
use not within the purposes intended by this Agreement shall be at City’s sole risk.
b.Confidentiality. All ideas, memoranda, specifications, plans, procedures,
drawings, descriptions, computer program data, input record data, written information, and other
Documents & Data either created by or provided to Consultant in connection with the
performance of this Agreement shall be held confidential by Consultant. Such materials shall
not, without the prior written consent of City, be used by Consultant for any purposes other than
the performance of the services under this Agreement. Nor shall such materials be disclosed to
any person or entity not connected with the performance of the services under this Agreement.
Nothing furnished to Consultant, which is otherwise known to Consultant or is generally known,
or has become known, to the related industry shall be deemed confidential. Consultant shall not
use City’s name or insignia, photographs relating to project for which Consultant’s services are
rendered, or any publicity pertaining to the Consultant’s services under this Agreement in any
magazine, trade paper, newspaper, television or radio production or other similar medium
without the prior written consent of City.
8.Consultant’s Books and Records.
a.Consultant shall maintain any and all ledgers, books of account, invoices,
vouchers, canceled checks, and other records or documents evidencing or relating to charges
for services, or expenditures and disbursements charged to City for a minimum period of three
(3) years, or for any longer period required by law, from the date of final payment to Consultant
to this Agreement.
b.Consultant shall maintain all documents and records which demonstrate
performance under this Agreement for a minimum period of three (3) years, or for any longer
period required by law, from the date of termination or completion of this Agreement.
c.Any records or documents required to be maintained pursuant to this
Agreement shall be made available for inspection or audit, at any time during regular business
hours, upon written request by the City Manager, City Attorney, City Auditor or a designated
representative of these officers. Copies of such documents shall be provided to the City for
inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually
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agreed upon, the records shall be available at Consultant’s address indicated for receipt of
notices in this Agreement.
d.Where City has reason to believe that such records or documents may be
lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City
may, by written request by any of the above-named officers, require that custody of the records
be given to the City and that the records and documents be maintained in City Hall. Access to
such records and documents shall be granted to any party authorized by Consultant,
Consultant’s representatives, or Consultant’s successor-in-interest.
9.Independent Contractor. It is understood that Consultant, in the performance of
the work and services agreed to be performed, shall act as and be an independent contractor
and shall not act as an agent or employee of the City.
10.PERS Eligibility Indemnification. In the event that Consultant or any employee,
agent, or subcontractor of Consultant providing services under this Agreement claims or is
determined by a court of competent jurisdiction or the California Public Employees Retirement
System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant
shall indemnify, defend, and hold harmless City for the payment of any employee and/or
employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or
subcontractors, as well as for the payment of any penalties and interest on such contributions,
which would otherwise be the responsibility of City.
Notwithstanding any other federal, state and local laws, codes, ordinances and
regulations to the contrary, Consultant and any of its employees, agents, and subcontractors
providing service under this Agreement shall not qualify for or become entitled to, and hereby
agree to waive any claims to, any compensation, benefit, or any incident of employment by City,
including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to
any contribution to be paid by City for employer contribution and/or employee contributions for
PERS benefits.
11.Interests of Consultant. Consultant (including principals, associates and
professional employees) covenants and represents that it does not now have any investment or
interest in real property and shall not acquire any interest, direct or indirect, in the area covered
by this Agreement or any other source of income, interest in real property or investment which
would be affected in any manner or degree by the performance of Consultant’s services
hereunder. Consultant further covenants and represents that in the performance of its duties
hereunder no person having any such interest shall perform any services under this Agreement.
Consultant is not a designated employee within the meaning of the Political Reform Act
because Consultant:
a.will conduct research and arrive at conclusions with respect to his/her
rendition of information, advice, recommendation or counsel independent of the control and
direction of the City or of any City official, other than normal agreement monitoring; and
b.possesses no authority with respect to any City decision beyond rendition
of information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).)
12.Professional Ability of Consultant. City has relied upon the professional training
and ability of Consultant to perform the services hereunder as a material inducement to enter
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into this Agreement. Consultant shall therefore provide properly skilled professional and
technical personnel to perform all services under this Agreement. All work performed by
Consultant under this Agreement shall be in accordance with applicable legal requirements and
shall meet the standard of quality ordinarily to be expected of competent professionals in
Consultant’s field of expertise.
13.Compliance with Laws. Consultant shall use the standard of care in its
profession to comply with all applicable federal, state and local laws, codes, ordinances and
regulations.
14.Licenses. Consultant represents and warrants to City that it has the licenses,
permits, qualifications, insurance and approvals of whatsoever nature, which are legally
required of Consultant to practice its profession. Consultant represents and warrants to City
that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the
term of this Agreement, any licenses, permits, insurance and approvals which are legally
required of Consultant to practice its profession. Consultant shall maintain a City of Lake
Elsinore business license.
15.Indemnity. Consultant shall indemnify, defend, and hold harmless the City and
its officials, officers, employees, agents, and volunteers from and against any and all losses,
liability, claims, suits, actions, damages, and causes of action arising out of any personal injury,
bodily injury, loss of life, or damage to property, or any violation of any federal, state, or
municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or
negligent acts or omissions of Consultant or its employees, subcontractors, or agents, by acts
for which they could be held strictly liable, or by the quality or character of their work. The
foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage to
property, or violation of law arises from the sole negligence or willful misconduct of the City or its
officers, employees, agents, or volunteers and (2) the actions of Consultant or its employees,
subcontractor, or agents have contributed in no part to the injury, loss of life, damage to
property, or violation of law. It is understood that the duty of Consultant to indemnify and hold
harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code.
Acceptance by City of insurance certificates and endorsements required under this Agreement
does not relieve Consultant from liability under this indemnification and hold harmless clause.
This indemnification and hold harmless clause shall apply to any damages or claims for
damages whether or not such insurance policies shall have been determined to apply. By
execution of this Agreement, Consultant acknowledges and agrees to the provisions of this
Section and that it is a material element of consideration.
16.Insurance Requirements.
a.Insurance. Consultant, at Consultant’s own cost and expense, shall
procure and maintain, for the duration of the contract, unless modified by the City’s Risk
Manager, the following insurance policies.
i.Workers’ Compensation Coverage. Consultant shall maintain
Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her
employees in accordance with the laws of the State of California. In addition, Consultant
shall require each subcontractor to similarly maintain Workers’ Compensation Insurance
and Employer’s Liability Insurance in accordance with the laws of the State of California
for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all
Workers’ Compensation policies must be received by the City at least thirty (30) days
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prior to such change. The insurer shall agree to waive all rights of subrogation against
City, its officers, agents, employees and volunteers for losses arising from work
performed by Consultant for City. In the event that Consultant is exempt from Worker’s
Compensation Insurance and Employer’s Liability Insurance for his/her employees in
accordance with the laws of the State of California, Consultant shall submit to the City a
Certificate of Exemption from Workers Compensation Insurance in a form approved by
the City Attorney.
ii.General Liability Coverage. Consultant shall maintain commercial
general liability insurance in an amount not less than one million dollars ($1,000,000) per
occurrence for bodily injury, personal injury and property damage. If a commercial
general liability insurance form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be performed
under this Agreement or the general aggregate limit shall be at least twice the required
occurrence limit. Required commercial general liability coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form CG
0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering
comprehensive General Liability and Insurance Services Office form number GL 0404
covering Broad Form Comprehensive General Liability.No endorsement may be
attached limiting the coverage.
iii.Automobile Liability Coverage. Consultant shall maintain
automobile liability insurance covering bodily injury and property damage for all activities
of the Consultant arising out of or in connection with the work to be performed under this
Agreement, including coverage for owned, hired and non-owned vehicles, in an amount
of not less than one million dollars ($1,000,000) combined single limit for each
occurrence. Automobile liability coverage must be at least as broad as Insurance
Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 1 (“any auto”). No
endorsement may be attached limiting the coverage.
iv.Professional Liability Coverage. Consultant shall maintain
professional errors and omissions liability insurance appropriate for Consultant’s
profession for protection against claims alleging negligent acts, errors or omissions,
which may arise from Consultant’s services under this Agreement, whether such
services are provided by the Consultant or by its employees, subcontractors, or sub
consultants. The amount of this insurance shall not be less than one million dollars
($1,000,000) on a claims-made annual aggregate basis, or a combined single limit per
occurrence basis.
b.Endorsements. Each general liability and automobile liability insurance
policy shall be with insurers possessing a Best’s rating of no less than A:VII and shall be
endorsed with the following specific language:
i.The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insured with respect to liability
arising out of work performed by or on behalf of the Consultant, including materials,
parts or equipment furnished in connection with such work or operations.
ii.This policy shall be considered primary insurance as respects the
City, its elected or appointed officers, officials, employees, agents and volunteers.
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Any insurance maintained by the City, including any self-insured retention the City may
have shall be considered excess insurance only and shall not contribute with it.
iii.This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with respect to the limits of
liability of the insuring company.
iv.The insurer waives all rights of subrogation against the City, its
elected or appointed officers, officials, employees or agents.
v.Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to the City, its elected or appointed officers, officials,
employees, agents or volunteers.
vi.The insurance provided by this Policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits except after thirty (30) days written
notice has been received by the City.
c.Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City. At the City’s option, Consultant shall
demonstrate financial capability for payment of such deductibles or self-insured retentions.
d.Certificates of Insurance. Consultant shall provide certificates of
insurance with original endorsements to City as evidence of the insurance coverage required
herein. Certificates of such insurance shall be filed with the City on or before commencement of
performance of this Agreement. Current certification of insurance shall be kept on file with the
City at all times during the term of this Agreement.
17.Notices. Any notice required to be given under this Agreement shall be in writing
and either served personally or sent prepaid, first class mail. Any such notice shall be
addressed to the other party at the address set forth below. Notice shall be deemed
communicated within 48 hours from the time of mailing if mailed as provided in this section.
If to City:City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to:City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Consultant:Lance, Soll & Lunghard, LLP
Attn: Bryan S. Gruber
203 N. Brea Blvd., Suite 203
Brea, CA 92821
18.Entire Agreement. This Agreement constitutes the complete and exclusive
statement of Agreement between the City and Consultant. All prior written and oral
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communications, including correspondence, drafts, memoranda, and representations, are
superseded in total by this Agreement.
19.Amendments. This Agreement may be modified or amended only by a written
document executed by both Consultant and City and approved as to form by the City Attorney.
20.Assignment and Subcontracting. The parties recognize that a substantial
inducement to City for entering into this Agreement is the professional reputation, experience
and competence of Consultant and the subcontractors listed in Exhibit B. Consultant shall be
fully responsible to City for all acts or omissions of any subcontractors. Assignments of any or
all rights, duties or obligations of the Consultant under this Agreement will be permitted only with
the express consent of the City. Consultant shall not subcontract any portion of the work to be
performed under this Agreement except as provided in Exhibit B without the written
authorization of the City. If City consents to such subcontract, Consultant shall be fully
responsible to City for all acts or omissions of those subcontractors. Nothing in this Agreement
shall create any contractual relationship between City and any subcontractor nor shall it create
any obligation on the part of the City to pay or to see to the payment of any monies due to any
such subcontractor other than as otherwise is required by law.
21.Waiver. Waiver of a breach or default under this Agreement shall not constitute
a continuing waiver of a subsequent breach of the same or any other provision under this
Agreement.
22.Severability. If any term or portion of this Agreement is held to be invalid, illegal,
or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
23.Controlling Law Venue. This Agreement and all matters relating to it shall be
governed by the laws of the State of California and any action brought relating to this
Agreement shall be held exclusively in a state court in the County of Riverside.
24.Litigation Expenses and Attorneys’ Fees. If either party to this Agreement
commences any legal action against the other party arising out of this Agreement, the prevailing
party shall be entitled to recover its reasonable litigation expenses, including court costs, expert
witness fees, discovery expenses, and attorneys’ fees.
25.Mediation. The parties agree to make a good faith attempt to resolve any
disputes arising out of this Agreement through mediation prior to commencing litigation. The
parties shall mutually agree upon the mediator and share the costs of mediation equally. If the
parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS or its
successor in interest. JAMS shall provide the parties with the names of five qualified mediators.
Each party shall have the option to strike two of the five mediators selected by JAMS and
thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after
mediation, either party may commence litigation.
26.Execution. This Agreement may be executed in several counterparts, each of
which shall constitute one and the same instrument and shall become binding upon the parties
when at least one copy hereof shall have been signed by both parties hereto. In approving this
Agreement, it shall not be necessary to produce or account for more than one such counterpart.
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27.Authority to Enter Agreement. Consultant has all requisite power and authority to
conduct its business and to execute, deliver, and perform the Agreement. Each party warrants
that the individuals who have signed this Agreement have the legal power, right, and authority to
make this Agreement and to bind each respective party. The City Manager is authorized to
enter into an amendment or otherwise take action on behalf of the City to make the following
modifications to the Agreement: (a) a name change; (b) grant extensions of time; (c) non-
monetary changes in the scope of services; and/or (d) suspend or terminate the Agreement.
28.Prohibited Interests. Consultant maintains and warrants that it has not employed
nor retained any company or person, other than a bona fide employee working solely for
Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid
nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement. For
breach or violation of this warranty, City shall have the right to rescind this Agreement without
liability. For the term of this Agreement, no member, officer or employee of City, during the term
of his or her service with City, shall have any direct interest in this Agreement, or obtain any
present or anticipated material benefit arising therefrom.
29.Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin, handicap, ancestry,
sex or age. Such non-discrimination shall include, but not be limited to, all activities related to
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff
or termination.
30.Prevailing Wages. Consultant is aware of the requirements of California Labor
Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title
8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing
wage rates and the performance of other requirements on "public works" and "maintenance"
projects. Consultant agrees to fully comply with all applicable federal and state labor laws
(including, without limitation, if applicable, the Prevailing Wage Laws). It is agreed by the parties
that, in connection with the Work or Services provided pursuant to this Agreement, Consultant
shall bear all risks of payment or non-payment of prevailing wages under California law, and
Consultant hereby agrees to defend, indemnify, and hold the City, and its officials, officers,
employees, agents, and volunteers, free and harmless from any claim or liability arising out of
any failure or alleged failure to comply with the Prevailing Wage Laws. The foregoing indemnity
shall survive termination of this Agreement.
31.Execution. This Agreement may be executed in several counterparts, each of
which shall constitute one and the same instrument and shall become binding upon the parties
when at least one copy hereof shall have been signed by both parties hereto. In approving this
Agreement, it shall not be necessary to produce or account for more than one such counterpart.
[Signatures on next page]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
Grant Yates, City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
“CONSULTANT”
Lance, Soll & Lunghard, a LLP.
Bryan S. Gruber, CPA, Partner
Attachments: Exhibit A – Consultant’s Proposal
Exhibit B – List of Subcontractors
EXHIBIT A
EXHIBIT A
CONSULTANT’S PROPOSAL
[ATTACHED]
EXHIBIT B
EXHIBIT B
LIST OF SUBCONTRACTORS
[ATTACHED]
LSL::!:
Lance, Soll & Lunghard, LLP
Certifi ed Public Accountants
203 N. Brea Blvd., Suite 203 Brea,CA92821
o1q 472-0022
CONTACT PERSON:
Bryan S. Gruber, CPA, Partner
Brvan.oruber@lslcDas.com
(714) 672-0022
Proposal Presented to
CITY OF LAKE ELSINORE
Audit RFP 2017
Professional Aud it Services
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Professional Audit Services
Bid Documents to Be Returned
Title Page
Cover Lefter / Letter of lntroduction
Project Approach
Project Staffing
Firm Qualifications and Project Experience
References
original Proposal vendor Fom
Three (3) copies of Proposal vendor Form
Original Firm & Fixed Fee Schedule in a separate SEALED envelope vendor Fom
Authorized Binding Signature(s)
Proof of lnsurance
Addendum Received (City Form) rv Fo-'
Non-Collusion Affidavit (City Form) v Fo-"
Listing of Proposed Subcontractor (City Form) rv Fo-"
120 Day Minimum Proposal Validity Statement
Offero(s) are requested to submit this checklist mmpleted with all bid documents. This list
may not be inclusive of all documents needed to submit your RFP.
m
m
LSL3::!
AND !
TRANSMITTAL LETTER
BENEFITS TO WORKING WITH LSL
INTRODUCTION OF EXTERNAL AUDITOR
lndependence ........
Legal Status and License to Practice in California
FIRM QUALIFICATIONS AND EXPERIENCE....
Address(es) of Office(s) and Number of Years ........
Number of Employees................
Contacl Regarding this Proposal
Additional lnformation
External Quality Control Reviews.........
Sample Management Letter..................
PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE.....................
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SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES
GFOA Award Program ..........
LSL Listing of Current Government Audit Clients..
Peer Review
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SPECIF|C AUDrr APPROACH ..............17
Anticipated Hours to Perform the Audil for Each Staffing Level ...................... ........................................20
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LSL33::
March 21 , 2017
City of Lake Elsinore
City Clerk
'130 North Main Street, Lake Elsinore, CA 92530
LANCE, SOLL & LUNGHARD, LLP (LSL) is pleased to respond to your request for proposal for financial
external auditing services. As a leader in the field of governmental accounting and auditing, we appreciate this
opportunity to present our professional qualifications. Because of our extensive municipal experience, dedication
to excellence and determination to retain the brightest talent, we hope you find that LSL is the most qualified
accounting firm to provide professional auditing services to the City of Lake Elsinore.
ANNUAL SERVICES
The City of Lake Elsinore (City) will receive the following for the fiscal years ending June 30,2017 through
June 30, 2019.
Perform an financial audit in accordance wilh Gouernment Auditing g.and.ards of the City of
Lake Elsinore and issue a report on the fair presentation of governmental activities, business-type activities,
each major fund and the aggregate fund information and the respective changes in financial position and
cash flows, where applicable, and the budgetary comparison information for the general fund and major
special revenue funds, in conformity with accounting principles generally accepted in the United States of
America.
Perform, a Single Audit of all federal grants received by the City in accordance with the Uniform Guidance,
and issue a report on compliance with requirements applicable to each major federal program and internal
control over compliance in accordance with the Uniform Guidance.
Perform agreed-upon procedures on the City's Appropriations Limit Schedule to ensure compliance with
Section 1.5 of Article Xlll-B of the California Constitution.
Perform an audit and prepare separate financial statements for the Lake Elsinore Successor Agency.
We are committed to providing the services discussed above in accordance with the timetable specified in your
request for proposal. This proposal is a firm and irrevocable offer, good for Sixty (60) days, for the fiscal years
ending June 30, 2017 through June 30, 2019. For purposes of this proposal, Bryan S. Gruber, Partner is authorized
to make representations for our firm. I can be reached at the address below or by phone at (714) 672-0022, by Fax
at (7141672-0331 or throug h email at bryan.qruber@lslcpas.com
Very truly yours,
Bryan S. Gruber, CPA
Engagement Partner
Lance, Soll & Lunghard, LLP
203 N. Brea Blvd., Suite 203
Brea, California 92821 j PrimeGlobal
www.lslcpas.com
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LSL33::
BENEFITS TO WORKING WITH LSL
ln today's environment, keeping up wjth the numerous accounting and regulatory changes can seem
unmanageable. Finance departments are facing more complexity, risk, and change than ever before, and with
less resources. As the industry continues to evolve, a strategic relationshjp with LSL, can help you better manage
these changes and be more equipped for the future. Training and communication is the bridge that connects
us. We offer to our clients:
1) Annual Governmental Accounting Update - Three Tickets lncluded
Annually, we hold a % day seminar providing an update to new accounting and regulatory standards
impacting local governments. The goal is to provide useful relevant information that impacts your
organization. ln 2017, for convenience, we will also allow the Update to be viewed as a web event.
2) Annual Onsite Client Specific Training - One Event lncluded
Tailored training for your organization on topics that are most relevant and needed for you and your team.
Topics may include fraud risk management, internal controls, accounting pronouncements, governmental
accounting, and CAFR preparation.
3) Focused Topic Specific Webinars and Ongoing News & Alerts - Access to Events and lnformation lncluded
lmportant topics effecting local governments sometimes need more attention and explanation. ln addition
to our annual update, our webinars and news otfer a short focused approach to these critical areas.
4) Meetings with Boards & Committees - Two meetings lncluded
We believe communication is the key to a successful relationship and offer two annual meetings with your
Board or Committees. Both meetings encourage dialogue between the auditor and board during the
preliminary and concluding segments of the audit.
www.lslcpas.com
3
LSL33::
INTRODUCTION OF
EXTERNAL AUDITOR
INDEPENDENCE
We meet the independence requirements as defined
by Gouemment Auditing Standards for the City of
Lake Elsinore and all the component units. Within the
last 5 years, we have not provided professional
auditing services to the City of Lake Elsinore. Our
partners do not own any other business organization
that has in the past, or will in the future, be providing
services, supplies, materials or equipment to the City
of Lake Elsinore. Lance, Soll & Lunghard, LLP (LSL)
will provide written notice of any professional
relationship entered into during the period of the
proposed agreement.
FIRNT QUALIFICATIONS
AND EXPERIENCE
ADDRESS(ES) OF OFFTCE(S)
AND NUMBER OF YEARS
Our headquarters are in Orange County in the City of
Brea, California. We have two other offices in
Temecula Valley and Silicon Valley. The audit for the
City of Lake Elsinore will be staffed from our
Orange County location. We first opened our doors
88 years ago in 1929.
NUMBER OF EMPLOYEES
Our firm has approximately 65 employees including
I partners and professional staff of approximately 50.
Governmental staff consists of three partners, one
senior manager, four managers, three supervisors,
five seniors, 5 semi-seniors and 7 staff auditors. All
professional staff assigned to the proposed
engagement work on a full-time basis.
CONTACT REGARDING THIS PROPOSAL
Mr. Bryan S. Gruber, CPA, Partner
203 N. Brea Blvd., Suite 203, Brca, CA 92821
P hone. (7 1 41 67 2-0022 ; Brvan. o ruber@ lslcoas. com
EXTERNAL QUALITY CONTROL REVIEWS
We have participated in the peer review program
since its inception. The most recent peer review was
conducted by Sikich, LLP. All peer reviews covered
governmental engagements and were reviewed by
the Government Audit Quality Center approved
member in accordance with our program membership
requirements. Our most recent peer review is
included on page '16.
There have been no disciplinary actions against
our organization since its inception. All our
Single Audit reports are desk reviewed either by the
Federal cognizant agency or the State Controller's
Office acting as the Oversight Agency. We have
never had a report rejected by any of these agencies.
ln fact, we are highly regarded and recognized by the
staff of the State Controller's Office for top quality
reports.
www.lslcpas.com
LEGAL STATUS AND LICENSE TO
PRACTICE IN CALIFORNIA
LSL is a limited liability partnership and is not a wholly
owned subsidiary of a parent company. LSL is a
public accounting firm licensed by the State of
California, Department of Consumer Affairs, as a
Public Accounting Partnership. As a firm, we are
members of the American lnstitute of Certified Public
Accountants and the California Society of
Certified Public Accountants. All key staff to be
assigned to this engagement are or will be licensed
by the State of California to practice as
Certifi ed Public Accountants.
ADDITIONAL INFORMATION
LSL is a regional public accounting firm that is
currently meeting the auditing needs of nearly
60 governmental entities throughout California.
This experience has led to the development of
efficient procedures that provide numerous client
beneflts. Our clients have grown to understand that
an audit from LSL provides them with a wealth of
knowledge, confidence and value added services.
For this and many other reasons, our flrm has
consistently been named one of the "Top Accounting
Firms" in Orange County by the Orange County
Business Journal, "Top Workplaces- 2016" in Orange
County by the Orange County Register. We were
also on the list of CaICPA Top 150 firms in 2016.
4
LSL33::
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
Wff H C,OWRN MDNT AWITIN G STAN DA RD S
Board of Directors
Example Entity
City of Example, California
We have audited, in accordance with the auditing standards generally
and the standards applicable to financial audits contained in
Comptroller General of the United States, the financial statements of
for the year ended June 30, 20'17, and the related notes to the financial
Example's basic financial statements, and have issued our re thereon
lnternal Control over Financial Reporting
ln planning and performing our audit of the flnancial
in the United States of America
Standards issued by the
(the "Example") as of and
collectively comprise the
ber 13, 2017
we dered Example's internal control over
ures that are appropriate in the circumstances for
, but not for the purpose ofexpressing an opinion
do not express an opinion on the effectiveness
financial reporting (internal control)
the purpose of expressing our opini
on the effectiveness of Example's i
of Example's internal control.
to determi ne the.
ons on the flna
nternal control
operation of a control does not allow management or
employees, in the normal course
misstatements on a timely basis. A
r assigned functions, to prevent, or detect and correct,
is a deficiency, or a combination of deficiencies, in internal
control, such that there is a ble at a material misstatement of the entity's financial statements
will not be prevented, or and on a timely basis. A s,gn,flca nt deficiency is a deficiency, or a
combination of in that is less severe than a material weakness, yet important enough
to merit attention by those
Our consideration of internal for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in intemal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Example's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported undet Gouernment Auditing ffandards
a rimeGlobalP
www-lslcpas.com
A deficiency in intemal control exists
5
LSL:3::
(:PAs F.ND ADVISORS
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Example's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Gouernment Auditing
Standards in considering the Example's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Brea, California
November 13,2017
www.lslcpas.com
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LSLs:::
PARTNER, SUPERVISORY
AND STAFF QUALI FICATIONS
AND EXPERIENCE
KEY PERSONNEL AND
RESPECTIVE RESPONSIBILITIES
The most critical component in the successful
completion of an audit is the personnel assigned to
carry out the responsibilities. We have assembled a
team composed of individuals with the optimum mix
of talents. Lance, Soll & Lunghard, LLP is committed
to affirmative action and hires only the most qualified
individuals to staff engagements regardless of
minority or other discrimination factors.
The individuals assigned have experience in
performing the tasks for which they are responsible,
as well as familiarity with all municipal accounting
operations. ln addition, each has developed
extensive skills in a variety of other complementary
subjects through their work with clients in other
industries. Thus, the experience gained on previous
assignments can be applied and tailored to the
unique needs of your organization. Lance, Soll &
Lunghard, LLP will not be subcontracting any portion
of the audits of the City of Lake Elsinore.
The partners at Lance, Soll & Lunghard, LLP are
routinely an integral part of the audit process and will
be overseeing and supervising staff personnel in the
field. For the City of Lake Elsinore, the personnel
assigned to the engagement will be as shown to the
right.
CONTINUING EDUCATION
As a firm policy, all professional government staff
meet the requirement of 40 hours of continuing
education every year, with at least 24 hours in
governmental accounting and auditing in a two-year
period. Our educational programs include training
from CalCPA, AICPA, Government Audit euality
Center, and GFOA.
DETAILED DISCUSSION OF EXPERIENCE
A detailed discussion of the experience of key staff
Bryan S. Gruber, CPA
Engagemenl Partner
Deborah A. Harper, CPA
Quality Assurance Partner
Kirk T. Hamblin. CPA
Assurance Manager
members is on the followin
www.lslcpas.com
Mirian Rodriquez
Assurance Semi-Senior
a-
,G
LI
BRYAN S. GRUBER, CPA
ENGAGEMENT PARTNER
ACHIEVEMENTS
Bryan has made numerous presentations at local chapter meetings for CSMFO on current accounting and
auditing material. He aEo currently serves as a technical reviewer for the Government Finance Officers
Association (GFOA). Bryan has been involved with teaching current audit and accounting related material at
Lance, Soll & Lunghard, LLP'S in house training seminars. He serves as firm lT Specialist for his involvement in lT
related controls, data mining and analysis, and auditing software.
LICENSE
Certified Public Accountant - Califomia 2008
CONTINUING EDUCATION
Total hours were 132 in last three years of which 74 were in governmental accounting and auditing subjects.
Bryan has met the Governmental Auditing Standards requirement for govemmental CPE.
MEMBERSHIPS
California Society of Certified Public Accountants (CalCPA)
American lnstitute of Certified Public Accountants (AICPA)
California Society of Municipal Finance Officers, Associate Member (CSMFO)
Government Finance Officers Association, Associate Member (GFOA)
Association of Local Government Auditors
EXPERIENCE
Over twelve years of experience in governmental audits including CAFR audits, componenlunit audits and
Single Audits. Bryan has also made numerous presentations to City Councils, Boards of Directors and Audit
Committees. He has been involved in the following municipal engagements:
Mr. Gruber has also been involved in the following engagements:
City of Agoura Hills
City of Azusa
City of Burbank
City of Duarte
City of Emeryville
City of Hidden Hills
City of La Quinta
Monterey Regional Water Pollution Control
Orange County Water District
Three Valleys Municipal Water Diskict
City of Oceanside
City of Palm Springs
City of San Dimas
City of Solana Beach
City of Visla
City of Rolling Hills
LSL:3::
www lslcpas.com
r-
Focused
ON YOU
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LSL33::
Bryan S. Gruber, CPA, Partner (Continued)
This work entailed:
. The preparation of the Comprehensive Annual Financial Report for those entities involved in the award
programs of the Government Finance Officers Association of the United States and Canada.
. Review the audit of these entities provide and technical assistance throughout the year to provide the
most up to date information with current GASB pronouncement.
. Present the overall audit results to audit committees or other Board Members.
EDUCATION
Bachelor of Arts Degree in Business Administration with an emphasis in Accounting -
California State University, Fullerton 20M
www.lslcpas.com
9
LSL::::
DEBORAH A. HARPER, CPA
QUALITY ASSURANCE PARTNER
ACHIEVEMENTS
Ms. Harper was accepted as a 2015 and 2016 executive committee member of the AICPA Government Audit
Quality Center, which is a national division for governments. As an executive board member, Ms. Harper
participates in the development, review, and first hand discussion of new standards and guidance published in the
AICPA Audit Guides which is provided to audit firms across the country.
ln 20'17, Ms. Harper also accepted participation in the GASB Research Note Oisclosure Reexamination
Roundtable.
CONTINUING EDUCATION
Total hours were 132 in last three years of which 68 were in governmental accounting and auditing subjects.
Deborah has met the Governmental Auditing Standards requirement for governmental CPE.
MEMBERSHIPS
California Society of Certified Public Accountants (CalCPA)
American lnstitute of Certified Public Accountants (AICPA)
California Society of Municipal Finance Officers, Associate Member (CSMFO)
Government Finance Officers Association, Associate Member (GFOA)
Govemmental Accounting and Auditing Committee
AICPA Government Audit Quality Center
EXPERIENCE
Over fifteen years of experience in governmental audits. During her time with the firm, Deborah has performed all
phases of our government audits and made numerous presentations to Boards of Directors and Audit Committees.
She has been involved on the following similar engagements:
www.lslcpas.com
Deborah leads the Lance, Soll & Lunghard, LLP haining program and serves as the firm Leaming Director.
LICENSE
Certified Public Accountant - California 2005
Focused
ON YOU
10
LSL33::
Deborah A, Harper, CPA, Partner (Continued)
City of Simi Valley
City of Thousand Oaks
City of Corona
City of Diamond Bar
City of Banning
City of Claremont
City of Brea
City of Fullerton
This work entailed:
. The preparation ofthe Comprehensive Annual Financial Report for those entities involved in the award
programs of the California Society of Municipal Finance Offlcers and the Government Finance Offlcers
Association of the United States and Canada.
. Review the audit of these entities and provide technical assistance throughout the year to provide the
most up to date information with current GASB pronouncement.
. Present the overall audit results to audit committees or other Board Members.
EDUCATION
Bachelor of Arts Degree in Business Administration with an emphasis in Accounting -
California State University, Fullerton 2000
www.lslcpas.com
Cucamonga Valley Water District
Coachella Valley Water District
lnland Empire Utilities Agency
City of lrvine
City of Aliso Viejo
City of Laguna Niguel
City of Monrovia
City of Orange
City of Seal Beach
City of Chino Hills
City of Glendora
11
LSL:3::
KIRK T. HAMBLIN, CPA
ASSURANCE MANAGER
LICENSE
Certified Public Accountant - California 2016
CONTINUING EDUCATION
Total hours werc 144 in last three years of which 92 were in govemmental accounting and auditing subjecb.
Kirk has met the Governmental Auditing Standards requirement for governmental CPE.
EXPERIENCE
Kirk has progressed in an outstanding manner. During his time with the firm, Kirk has performed all phases of our
government audits, including water districts, other special districts, CAFR audits, successor agency audits and
Single Audits. He has been involved in the following municipal engagements:
EDUCATION
Bachelor of Science Degree in Accounting - University of La Verne, 2010
City of Canyon Lake
City of Fullerton
City of Corona
City of Cathedral City
City of San Dimas
Orange County Fire Authority
Three Valleys Municipal Water District
:t
City of Glendora
City of Ontario
City of Palm Springs
City of Walnut
City of Rancho Cucamonga
City of Pasadena
City of Chino Hills
Focused
ON YOU
12
www.lslcpas.com
LSLs:::
MIRIAN RODRIGUEZ
ASSURANCE SEMI.SENIOR
L!CENSE
Certified Public Accountant - ln Progress
CONTINUING EDUCATION
Total hours were 132 in last three years of which 132were in governmentalaccounting and auditing subiects.
Mirian has met the Governmental Auditing Standards requirement for governmental CPE.
EXPERIENCE
Mirian has progressed in an outstanding manner. During her time with the firm, Mirian has performed all phases of
our government audits, including water districts, other special districts, CAFR audits, successor agency audits and
Single Audits. She has been involved in the following municipal engagements:
Solana Beach
Grand Terrace
Three Valleys Water District
Thousand Oaks
Pasadena
EDUCATION
Bachelor in Business Administration, Concentration in Accounting -
California State University, Fullerton 2014
Santa Fe Springs
Monrovia
Ontario
Santa Barbara
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rf
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LSL33::
SI]VIILAR
ENGAGEMENTS WITH OTHER
GOVERNMENT ENTITIES
Our activities overall cover auditing and attestation,
business advisory, taxes and planning, and
accounting and financial services. Approximately
50% of our practice deals with the government
sector and related services. Generally, our
government sector services break down into the
following major classifications: compliance,
performance, strategic planning and tax services.
City of Palm Springs - Audit and preparation of a
Comprehensive Annual Financial Report (CAFR) which
receives the GFOA award in addition to various
compliance and single audits. These services have
been provided for over 6 years. Last audit performed was
for June 30, 2016. Total hours were approximately 750.
Engagement partner is: Mr. Bryan S. Gruber
Gontact penson: Mr. Geoffrey Kiehl, Finance Director
Phone: (760) 323-8221
Email : Geoffrev. kiehl@oalmsprinqsca. oov
City of Oceanside - Audit and preparation of a
Comprehensive Annual Financial Report (CAFR) which
receives the GFOA award in addition to various
compliance and single audits. These services have
been provided forover6 years. Lastaudit performed was
for June 30, 2016. Total hours were approximately 750.
Engagement partner is: Mr. Bryan S. Gruber
Contact person: Ms. Jane McPherson, Finance
Director
Phone: (760) 435-3855
Emai!: JMcPherson@ci.oceanside.ca. us
City of La Quinta - Audit and preparation of a
Comprehensive Annual Financial Report (CAFR) which
receives the GFOA award in addition to various
compliance and single audits. These services have been
provided for over 4 years. Last audit performed was for
June 30, 2016. Total hours were approximately 350.
Engagement partner is: Mr. Bryan S. Gruber
Contact person: Ms. Karla Campos, Finance Director
Phone: (760)777-7073
Email: kcampos@la-quinta.oro
City of Monrovia - Audit and preparation of a
Comprehensive Annual Financial Report (CAFR) which
receives the GFOA award in addition to various
compliance and single audits. These services have been
provided for over 15 years. Last audit performed was for
June 30, 2016. Total hours were approximately 450.
Engagement partner is: Mrs. Deborah A. Harper
Contact person: Ms. Buffit Bullis, Finance Director
Phone: (626)932-5513
Email: bbullis@ci. monrovia.ca.us
A complete listing of our 59 current government audit
clients, along with phone numbers of contact
personnel and reference as to services provided, is
contained on the next page. We welcome you contact
any or all of these to get their opinion on the services
we provide.
GFOA AWARD PROGRAM
We prepare the financial statements and footnote
disclosures for most of our clients that have received
the GFOA award. All of our governmental partners,
managers and seniors have been closely involved in
the preparation of these reports.
,rt
www.lslcpas.com
14
LSLs:::
SeNice Codes: F - Financial Audit, S - Single Audit. l- lnternalAudit, U - Utility OPerations
* Participated inthe GFOAAward Programs and has received or anticipales receiving outstanding awards
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LSL LISTING OF CURRENT GOVERNMENT AUDIT CLIENTS
S.dic. Cod. Y.rr
lMr C EbntL! Fi.&@ Off@r
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15
PEER REVIEW
1735 Merriman Road
Akron, OH ,14313
VSikich.
SYSTEM REVIEW REPORT
October 26, 2016
To the Partners of Lance, Soll & Lunghard, LLP
and the Peer Review Committee of the California Society of CPA'S:
We have reviewed the system of quality control for the accounting and auditing practice of Lance, Soll & Lunghard,
LLP (the Firm) in effect for the year ended May 31, 2016. Our peer review was conducted in accordance with the
Standards for Performing end Reporting on Peer Reviews established by the Peer Review Board of the American
lnstitute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities,
if applicable, in determining the nature and extent of our procedures. The Firm is responsible for designing a system
of quality control and complying with it to provide the Firm with reasonable assurance of performing and reporting
in conformity with applicable professional standards in all material respects. Our responsibility is to express an
opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The
nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the
standards at www.aicoa.ummarv
As required by the standards, engagements selected for review included engagements performed under
Government Auditing Standards and audits of employee benefit plans.
ln our opinion, the system of quality control for the accounting and auditing practice of Lance, Soll & Lunghard, LLP
in effect for the year ended May 31, 2016 has been suitably designed and complied with to provide the firm with
reasonable assurance of performing and reporting in conformity with applicable professional standards in all
material respects. Firms can receive a rating of pass, pass with deficiency(ies) ot fail. Lance, Soll & Lunghard, LLP
has received a peer review rating of pass.
LSL33::
330.804€661 // www.sikich.com
Certified Public Accountants & Advisors
MembeE of American lnstitute of Certified Public Accountants
www.lslcpas.com
16
LSL::::
SPECIFIC AUDIT
APPROACH
PROPOSED SEGMENTATION
FOR THE ENGAGEMENT
The services will be divided into three segments.
Segment 1 - Planning and Obtaining an
Understanding:
Planning
LSL will provide an annual audit communication
letter, engagement letter, and Government Audit
Quality Center lnformation letter. The audit
communication letter is to be provided to the
Governing Board. ln addition, this can be
communicated orally to the Governing Board or
sub-committee, if requested. This communication will
discuss the planning stages, the responsibilities of the
Governing Board, Auditors, and Management, and
provide an opportunity for communication with us as
the audrtors.
LSL'S audit team will meet prior to our initial on-site
visit to brainstorm and discuss economic conditions,
industry elements, and new standards that will atfect
the City of Lake Elsinore. A trial balance is requested
for our planning meeting which provides current
activity analysis of the City and assists the LSL team
in obtaining knowledge and preparing expectations
for the audit year. We will compile a list "Prepared by
Client" ("PBC") items based on our review of prior
year financial statements and information gathered.
This will be provided to the City of Lake Elsinore
one month prior to our visit or earlier if requested. We
operate on a paperless software system and provide
a secured cloud based portal for all clients. The
City of Lake Elsinore will have their own file which can
be customized by the City to organize and upload
requested schedules, support documents, etc.
Understanding the lnternal Control Structure Overthe
Financial Statements
To gain an understanding of the internal control
structure over the financial statements, we will
perform procedures as required by SAS 122-125.
This will include review of internal controls in the
areas of flnancial reporting, cash; revenues and
receivables; expenditures and accounts payable;
payroll; capital assets; long{erm debt; or grant
reporting, as applicable.
We will provide a list each year of randomly selected
employees of the City of Lake Elsinore to interview for
fraud interviews (SAS 99), which will consist of all
levels of the City across all departments.
After our interim on-site visit we will have an exit
meeting to discuss potential weaknesses, if any, and
provide any feedback for improvements or valuable
information we have gathered from our outside
clientele that would benefit the City of Lake Elsinore.
www.lslcpas.com
Based on the result of our review, we will issue a
management letter (SAS '115 Lette0 that will identify
any significant deficiencies and/or material
weaknesses noted. This report is required by the
Gouernment Auditing Standards issued by the
Comptroller General of the United States. Auditing
Standards require auditors to obtain an
understanding of the Entity and its Environment along
with Assessing the Risks of Material Misstatements.
LSL obtains an understanding through a variety of
ways all throughout the year, but the most pertinent
time each year is during our interim on-site visit. We
will conduct interviews with management of finance
along with each audit section responsible party
(e.g. cashier, accounts payable clerk, payroll clerk,
etc.) to review the processes and controls through
observation and discussions. Based on our
observations, we will sample as we observe a
"walk-through" to verify the system of control is
working in accordance with policies and procedures.
17
LSL33::
Segment 2 - Financial Audit Testing:
Based on the information gathered each year thus far,
we will utilize a customized audit program based on
the risk assessment developed during our
assessment of the City's internal controls and
government auditing standards. The primary benefit
of a tailored program is a focused set of procedures
to address relevant areas. We believe that this
approach will be the most effective and efficient by
linking financial statement assertions, audit
objectives, and procedures that are basic to most
governmental audit engagements and critical to the
compliance with other material laws and regulations.
We will annually compile another customized
Prepared by Client (PBC) list for the year-end on-site
visit provide at least one month prior or earlier if
requested.
We will request a trial balance for our analytical
review to be provided one week prior to our arrival.
Analytical Procedures
For the audits of the financial statements, we will use
analytical procedures as an overall review of the
financial information in the preliminary and final
stages of the audits. These procedures are designed
to assist us in planning our audits and in assessing
the propriety of the conclusions reached, and in the
evaluation of the overall financial statement
presentation. The procedures to be utilized consist of
determining expectations for changes to significant
revenue, expenditure and balance sheet accounts,
reading the financial statements and related notes,
reviewing the budget and related material, and
focusing on overall relationships within the financial
statements. Once determined, these are reviewed to
evaluate if the changes appear reasonable or require
further analysis. For all significant differences,
explanations are obtained as to why the situation
occurred and additional substantive procedures may
be applied and related evidence gathered to resolve
concerns and questions.
lf the City of Lake Elsinore can provide a check
register electronically for July 1"r forward (period after
the audit year) then we can pre-select our sample for
accounts payable cut-off test work and provide that
information ahead of time. Our PBC list will detail out
schedules we would like provided, which is directed
straight from the audit report. Support requested and
sampling for these schedules will be assessed each
year based on the strengths and weaknesses of the
internal control processes of the City, and the
materiality level of the account. We will discuss our
analytical variances with the City and obtain
documentation that provides support for the
accounts.
www.lslcpas-com
Drawing Audit Samples
For tests of controls, we use audit sampling. Tests of
conkols are procedures directed towards determining
the effectiveness of the design or operation of an
internal structure policy or procedures. Normally,
audit sampling is used for tests of controls and tests
of compliance that involve inspection of documents
and reports indicating performance of the applicable
policy or procedures and compliance with the
applicable laws and regulations. These sampling
procedures test the operating effectiveness of an
internal control structure policy or procedures by
determining how the policy or procedure was applied,
the consistency with which it was applied during the
audit period, and by whom it was applied. To achieve
this goal, we will draw samples for disbursements,
receipts and payroll when applicable. Each document
selected will be tested for various attributes that are
designed to verify compliance with different aspects
of internal controls and applicable laws and
regulations. Additionally, each sample item will be
tested for coding to the proper accounts and posting
to the general ledger. Sample sizes vary based on
the population and risk based calculations.
18
LSL33::
Use of Computer Software in the Engagement
We use specialized auditing software to perform our
audit in addition to Data Analysis Software to perform
audit testing. We also use secure web portals to
communicate information.
Determining Laws and Regulations Subject to Audit
Test Work
The Laws and Regulations that will be subject to audit
test work are determined from the applicable laws,
regulations, contracts, and grant agreements which
we identify through the understanding we obtain of
the Water Authority and our extensive experience
with governmental entities.
Quality Assurance Policy and Procedures
Lance, Soll & Lunghard, LLP has established strict
review procedures to ensure quality reporting in
accordance with the standards. These procedures
are designed to maximize adherence to quality.
The firm's policy of assigning seniors to an
engagement requires that the senior have at least
three years of government auditing experience. He or
she must have demonstrated a high degree of
understanding of government accounting and
auditing, as well as of the firm's overall client
philosophy. Having been assigned to the
engagement before is also an important factor in
assigning a senior to an engagement. Any changes
in personnel at the senior level or above will be
approved by the City of Lake Elsinore. LSL'S
philosophy is to provide quality audit services with
minimal disruption to the City staff. Our focused
efforts to obtain and retain quality staff have further
enabled us to provide this to our clients.
We understand that the City will prepare the basic
financial statements, the notes to the basic financial
statements and certain required supplemental
information as required by the Governmental
Accounting Standards Board (GASB) including a
kansmittal letter, a management discussion and
analysis (MD&A), and a statistical section. We will
review the draft of the CAFR and financial statements
for full compliance with the latest
Government Accounting Standard Board (GASB)
pronouncements for submission under the
Government Finance Officers Association of the
United States and Canada's "Certificate of
Achievement for Excellence in Financial Reporting"
program and provide recommendations and
suggestions to the Finance Department.
Exit Conference
We conduct an exit meeting to discuss the results and
verify goals for reports. Deflciencies would be
discussed throughout the fleldwork and summarized
at the exit conference. Pending items will be
discussed with a schedule of due dates to meet the
final report deadlines of delivery by December 31"1.
Based on our year-end exrt meeting we will schedule
a plan to finalize the CAFR in the timetable of the City.
We will schedule dates for the initial and final drafts
including time for the City review and approval of the
financial statements. ln addition, this will account for
the review of the engagement partner and quality
assurance partner. After the review and receipt of the
signed Representation Letter from City, we will
provide the final Reports prior to December 31sr.
www.lslcpas.com
Segment 3 - Conclusion:
IDENTIFICATION OF ANTICIPATED
POTENTIAL AUDIT PROBLEMS
With our familiarity with similar city governments, we
do not anticipate unusual audit problems. Wth
changes in single audit and GASB pronouncements,
we always anticipate a certain degree of probiems.
To address, we offer different training opportunities,
first-hand experience with similar local governments,
and implementation experts on our in-house team.
19
LSL33::
ANTICIPATED HOURS TO PERFORM THE AUDIT FOR EACH STAFFING LEVEL
The level of staff assigned and the number of hours estimated to be spent on each proposed segment is as follows:
*Single audit assumes 1 major program being tested. Each additional major program requires 14 hours
L
City (lncludes PFA)
501010Planninq and lnternal Control Evaluation
5Cash and lnvestmenls
3Receivables and Revenues
20 222Capital Assets
3 25 28Accounts Payable and Disbursements
1 10 11Payroll
3 6 12 21Pension Liabilitv - GASB 68
24 45 69Lono-Term Debt & Debt ComDliance
.)6 8lnsurance & Claims Liability
3 10 '10Grants
1 2Net Position and Fund Equitv
4 I 10 22Compliance
15 20 24 10Reoort Preoaration and Review
301015Supervision
Su btotal
Sinqle Audit *
1 1Planninq
,|2 25 28Compliance
5 122Report Preparation/Review/Supervision
Subtotal
www.lslcpas.com
20
1
Partners Senior Staff Total
-...r.-
28 158 140 146
I
1l
35
10
401
69
?
v'v t
LSLs:::
November - Drafi
Financial
Statement Review
Our proposed schedule for the annual audit is as follows
June - lnterim
audit Iield work
Early
October -
Year-end
audit field
work
Mid December -
Finalize Financial
Statements and
Auditor Letters &
Reporls including
Single Audit,
Appropriations
Limit & Successor
Agency.
November - Draft
Auditor Letters &
Reports
Our Proposed Timeline
www.lslcpas.com
I 7-l
7l
-P-
I -l./
,-
/
t
May/June October/November December
I
i
I
21
1. We will be pe.forming four randomly selected interviews. Can you please e-mail an employee
listing by department and title? (This is for the SAS 99 (fraud) requirement).
2. Have you had any Finance department personnel changes or accounting sofiware system
changes during the current year? lf so, which clerks were changed?
3. Excel export (or text if necessary) of the balance sheet and revenue and expenditure summaries
which provides original budget amounts as ofthe last bank reconciliation date.
4. Review our confirmation log and make any updates?
5. Wewill be testing iournal entries using data analysis software. Please provide a GL detail ofthe
balance sheet, revenues and expenditures from July 'l3tthrough the most recent bank
reconciliation date.
"* lf you could send these above items to me by Sharefile that would be great.
Please Drovide the followino items in ELE lC FORMAT at the time of our arrival:
1 . Copy of your current year adopted budget (PDF if possible).
2. FY current year appropriation limit calculation, copies of resolutions where appropriation limits
were approved by Council.
3. Copy of GFOA comments, if received.
4. Preliminary listing of Federal Grants received in the CY. (LSL can provide the SEFA if necessary)
5. lnterest allocation for most recent quarter or month.
6. Last three months of bank reconciliations for all bank accounts.
7. Copy of the most recent investment policy.
8, Land held for resale schedule if there were any purchases or disposals.
9. Current (updated) capital asset listing.
10. Copy of official statemenuamortization schedule for any rybonds/leases/loans/notes.
11. A listing of your grants and expenditure/revenue accounts which they are tracked in.
o A copy of the federal grant agreements.
12. G/L detail of all legal expenditures
13. Access to the following items:
a. Journal Entries
b. Daily cash receiptsc. Check registersd. Payroll registerse. Utility billing registersf. Computer System (for inquiries only)g. Sales tax revenue folder
h. Quarterly payroll tax returns
22
Example City
lnterim Contact Check List
Prior to our arrival
Example City
Items to be Provided by Client at Year End
June 30, 2017
Please provide the following information in ELECTRONIC FORMAT and upload to our shareftle :
#Description Due Date
General
1 Final balance sheet, revenue summary and expenditure summary
2 Original budget and final budget numbers
3 General ledger detailfrom the interim trial balance date to June 30th
Cash
4 Copy ofyour latest investment policy, if one has been adopted since our interim fieldwork.
5 Bank, investment and fiscal agent account reconciliations and statements for June of the
cunent audit year and July of the following fiscal year.
6 Copy of your GASB 31 adjustment (i.e., investments booked to fair value) and supporting
schedules, if applicable.
Revenue. Receivables and Prepaids
7 Supporting schedules for the various receivable and prepaid balances.
Accounts Receivable
lnterest Receivable
Taxes Receivable
Grants Receivable
Loans Receivable
Notes Receivable
Due From Other Govemments
Prepaids
8 Property tax analysis/reconciliation that ties to the General Ledger.
I Sales tax analysis/reconciliation that ties to the General Ledger.
10 # of business licenses issued for the cunent audit year.
1'l # of building permits issued for the cunent audit year.
12 Copy of Gas Tax Annual Confirmation from State used in preparing the Street Report
Utllltv Billino
13 Adiustment report for the cunent audit year.
14 Reconciliation of Utility Billing Accounts Receivable to the General Ledger for the month of
June.
'15 Unbilled receivable analysis/reconciliation:
lf done by the system automatically, provide a detail description of the methodology
used to calculate this accrual.
lf manually prepared, provide schedule with supporting documentation of accrual, such
as billing registers and joumal entry.
16 Customer Deposits reconciliation from the utility billing software
17 # of Total Utility Billing Customers
18 AR aging report as ofJune 30
Prior to Start of Fieldwork
Prior to Start of Fieldwork
Prior to Start of Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
Durjng Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
lnventorv
19 Provide us with access to an inventory listing as of fiscal year end showing quantity on hand,
unit costs and total inventory valuation. lf the listing does not agree to the general ledger,
please provide us with an explanation of the variances.
Capltal Assets & Land Held for Rosale
- 20 Capital asset listing for year end. The listing should be sub-totaled by asset type
and by govemmental and proprietary funds.
- 21 Listing of capital asset additions and access to supporting documentation (e.9., invoices,
calculations, etc.), subtotaled same as above.
- 22 Listing of capital asset deletions and any adjustments; and access to supporting
documentation (e.9., listing of surplus equipment, Board minutes, information regarding
sales proceeds, costs, accumulated depreciation, any gain or loss, etc.), subtotaled same
as above.
_ 23 Depreciation reports showing deprecialion expense for the year (by function)
and the accumulated depreciation at year end (by asset type), subtotaled same as above.
23
24 Listing of construction in progress additions and deletions
25 We will need you to prepare the following capital asset supplementary schedules, ifyou
would like them presented in your linancial statements. These are NOT required:
Comparative Schedule by Sources
Schedule by Function and Activity
Schedule of Changes by Function and Activity
26 Detail listing of land held for resale lvtrich reconciles to your general ledger.
Please include date purchased and fund recorded in.
ExpGnditures/Expenses. Pavables and Othor Llabillties
27 Check registsrs for the period subsequent to year end through the date of our
fieldwork.
28 Access to supporting schedules for the various payable and other liability balances.
Accounts Payable
Oeposit Payable
Due to Other Govemments
Defened Revenue
Uneamed Revenue
Other Accrued Liabilities
29 Please provide us with your "cut-off date used for recording your payables.
Pavroll and Related Liabilities
30 Payroll registers that support the payroll payable accrual.
31 Leave benetits registers that support your compensated absences accrual calculations-
Provide short and long lerm allocation for compensated absences.
ldentify which functions (e.9., general govemment, public safety, etc.) the change in
compensated absences should be recorded to on the govemment-wide statements.
32 PERS - # of covered employees for PERS, by plan ,
if District has different plans. This is per District's payroll/benefits records NOT
the actuarial.
33 OPEB - # of covered employees for Other Post Employment Benefits (OPEB), by plan (if have different
plans).
34 Provide Actuarial for PERS Retirement Plan(s) AND OPEB (if applicable).
35 Total pension expense by employee portion AND employer portion paid as of June 30h.
36 List of terminated employees for the cunent audit year and date of termination.
37 941(Federal)and DE-6(State) quarterly reports, and any applicable reconciliation to the G/L.
E@
38 Listing of open purchase orders at year end
Lono Term Debt
39 Schedule that identifies all long-term debt items with the account numbers that are used for the
principal and interest payments for each debt item.
Subtotaled by Govemmental debt and Proprietary Funds.
40 Listing of new bond issuances, new leases, new loans and any bond defeasances.
4'l Listing of any debt covenant and restriction requirements by debt instrument.
Provide support of compliance (either third party report or certilication).
42 Ofricial statements and amortization schedules for any new bond issues.
43 Lease agreements and amortization schedules for any new capital leases.
44 Agreements and amortization schedules for any new notes payable.
45 A schedule that identifies any debt for which the Oistrict is not obligated (e.9., special assessment
debt, mortgage revenue bonds, etc.). Also provide us with the outstanding principal balances as
of year end (for footnote disclosure).
46 A schedule that identifies any defeased bond debt and the outstanding principal balances as of
year end (for footnote disclosure).
47 For GASB #34 purposes, for any new debt that is issued, provide us with a calculation that
computes and amortizes issuance costs, premiums/discounts and gains/losses on defeasances
during the current year.
48 lnterest payable calculation
!@
49 Access to supporting schedules used to calculate your claims and judgments payable (including
incuned but not reported (IBNR) amounts). lf we are computing the claims and judgments liability
for you, then we will need access to the claims report, as of fiscal year end, for both general
24
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
Ouring Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
liability and workers' compensation claims.
50 Declaration pages for all insurance policies
Fund Eouitv
51 Supporting documentation for any adjustments to opening fund balance
52 Fund balance schedule detailing unavailable, restricted, committed and assigned amounts
For ihe assigned amounts, please have responsible official designated by Directors sign
document indicating their approval.
Grants
53 For all Federal grants received during the fiscal year, provide us with copies of the applicable
sections of the granl agreement and/or award letter that identifies the grantor name, grant name,
award amount and period covered.
54 Access to reimbursement requests, drawdowns and grant reconciliations.
55 Completed SEFA
56 Completed Schedule of Nonfederal expenditures
Other Reconciliations and Analvsis
57 For the following three interfund reconciliations, for GASB #38 footnote disclosure purposes, you
will need to identiry for gggh transaction, the funds involved and the purpose.
Reconciliation of due to/due from other funds.
Reconciliation of advances to/advances from other funds. Provide agreements/resolutions for
any new advances between componenl units and advances between funds.
Reconciliation of transfers in/transfers out.
58 lnterest allocation worksheet and any supporting documentation if not requested at interim.
59 Explanations for any significant changes in revenues and expenditures from budget and prior
year.
Financial Statement Disclosures
60 Prior year GFOA comments, if applicable
61 Related party transactions
LSL has identified the following related parties:_
Please indicate any others that we are unaware of.
Please provide information on related party transactions that may include:
Sale, purchase, exchange, or leasing of property
Receiving or fumishing of goods, services, or facilities
Transfer or receipt of income or assets
Maintenance of bank balances as compensating balances for the benefit of another
Have any related parties been indebted to the Oistrict or had receivables from the District
(not including advances with component units)
62 Commitments
Please provide information on commitments that may include:
Future purchases at specified prices or specified quantities
Contracts for construction projects
Please provide a list of construction contracts over $including the
contract amount and total expenditures as of June 30.
Commitments under operating leases
Contracts entered into with other govemmental entities that require
annual payments (€. Metropolitain water, sewer, similar poects)
63 Contingencies
Please provide information on contingencies that may include:
Significant claims that the govemmental entity is responsible for
Pollution remediation obligations
Termination benefits
64 Subsequent EYents
Please provide information on subsequent events that may include:
Long term debt issuance
Land purchases and sales
Settlement of litigation
Loans given out
DDA's and OPA'S with material commitments
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
10 days prior to audit
10 days prior to audit
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
During Fieldwork
25
During Fieldwork
Ouring Fieldwork
LSL::::
PREPARED BY:
Lance, Soll & Lunghard, LLP
Certitied Public Accountants
203 N- Brea Blvd., Suite 203 Brea, CA 9282'l
(714) 672-0022
CONTACT PERSON:
Bryan S. Gruber, CPA, Partner
Brvan.oruber@lslcpas.com
(7',t4). 672-0022
March 21,2017
Proposal Presented to
CITY OF LAKE ELSINORE
Focused
ON YOU
Fee Schedule RFP Audit
Professional Aud it Services
COPY
a
4
LSU3::
Fee Schedule
CITY OF LAKE ELSINORE
City of Lake Elsinore Audit 41,40$41 ,440$41,440
Successor Agency 3,400 3,400 3,400
Single Audit Report 5,150 5,150 5,150
Gann Limit Re\iew 490 490 490
lndependent Accountanfs Agreed-Upon Procedures Applled to:
Appropriations Limit lncluded lncluded lncluded
Total
Engagement Contract Years
Partners 28 210$
Managers 58 150$8,700
Supenisory Stafi 140 1 '15$16,100
Stafi ?20 90$'19,800
Total Maxlmum Annual Audit Fee 446
Estimated
Number of Hours Hourly Rate Total Cost
www.lslcpas.com
FY 2016t17 FY 2017114 FY 2018/19
50,480 $50,€0 $50,480
$50,480
$ s,880
2
BID CONTENT AND FORMS
Proposer to enclose all the pages of this section, Section lll, along with signed and dated
Firm & Fixed'Fee Schedule" (in a separate SEALED envelope.) See Section l. E.3.c.
Are there any other additional or incidental costs that will be requi y your firm in order tob
meet the requirements of the Proposal Specifications?Yes /(circle one). lf you
answered "Yes", please provide detail of said additional costs
Please indicate any elements of the Proposal Specifications that cannot be met by your firm
Nonc
Have you included in your proposal all informational items and forms as requested?No . (circle one). lf you answered "No", please explain:
f") Ir=rt-
This offer shall remain firm for 120 days from RFP close date
Terms and conditions as set forth in this RFP apply to this proposal.
Cash discount allowable
Net thirty (30) days.
ln signing this proposal, Offero(s) warrants that all certifications and documents requested
herein are attached and properly completed and signed.
From time to time, the City may issue one or more addenda to this RFP. Below, please
indicate all Addenda to this RFP received by your firm, and the date said Addenda was/were
received.
Verification of Addenda Received
Addenda No:
Addenda No:
Addenda No:
days; unless otheMise stated, payment terms are:
Received on: _
Received on: _
Received on:
FIRM NAME:
ADDRESS:203 N. Brea .. Suite 203
Brea cA.92821
(714) 672-0022
Partner
rF SUBM|TT|NG A'NO PROPOSAL", PLEASE STATE REASON (S) BELOW:
Lance, Soll & Lunghard, LLP
Bryan.Gruber@lslcpas.com
Bryan S. Gruber, CPA
Phone:
Email:
Fax:
Authorized Signature:
Print Name:
Title:
SUBCONTRACTOR'S LIST
As required by California State Law, the General Contractor bidding will hereinafter state the
subcontractor who will be the subcontractor on the job for each particular trade or
subdivision of the work in an amount in excess of one-half of one percent of the General
Contractor's total bid and will state the firm name and principal location of the mill, shop, or
office of each. lf a General Contractor fails to specify a subcontractor, or if he specifies more
than one subcontractor for the same portion of work to be performed under the contract in
excess of one-half of one percent, he agrees that he is fully qualified to perform that portion
himself and that he shall perform that portion himself.
DIVISION OF
WORK OR TRADE
NAME OF FIRM OR
CONTRACTOR
LOCATION
CITY
Bryan S. Gruber, CPA
Print Name Signature of Bidder
Company Name:Lance, Soll & Lunghard, LLP
Address:203 N. Brea Blvd., Suite 203 Brea, CA 92821
REJECTION OF BIDS
The undersigned agrees that the City of Lake Elsinore reserves the right to reject any or all
bids, and reserves the right to waive informalities in a bid or bids not affected by law, if to do
seems to best serve the public interest.
Brvan S. Gruber. CPA
Print Name Signature of Bidder
Company Name:Lance, Soll & Lunghard, LLP
Address 203 N. Brea Blvd., Suite 203 Brea, C492821
NON - COLLUSION AFFIDAVIT
TO: THE COMMON COUNCIL, CITY OF LAKE ELSINORE
ln accordance with Title 23, United States Code, Section 1 12, the undersigned hereby
states, under penalty of periury:
That he/she has not, either directly or indirectly, entered into any agreement, participated in
any collusion, or otherwise taken action in restraint of free competitive proposal in
connection with RFP.
Business Name ,abrer stcL'l LvNo4fiD
Business '7a ]Ar, aP:A R,-uD .Jt,liE 2.,3, BfllA,Cn \Lt? I
Signature of Offero(s)
T4zelrcAlrFcrtr",A
Place of Residence
Subscribed and sworn before me this of 20
Notary Public in and for the Stale of California.
My commission 20
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State ol California
ctvtl. coDE s tta9
County of (r,)
:OnAl:"- t Ji ri ltl before me (]t{r ie
Bo,e lnsen Name and Trrl€ ot rhe OnEer
personally appeared l-, -r " ^ G,- 6.,ffi
\Co.lf", , rlsfcr 1 pi- b (, (
vnr rRtt L
Commlstion , 2mlml
Nolary Public - Calllor l
Oranga Co{ttit
who proved to me on the basis ol satisfactory
evidence to be lhe person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged
to me that he/she/lhey executed the same in
his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf ol which the
person(s) acted, executed the instrument.
I certify under PENATTY OF PERJURY under the
laws of the State of California that the loregoing
paragraph is true and correcl.
WITNESS my hand and ollicial seal
Signature
Place Notary Seal Above slg.alu,e ol Norary Flblic
OPTIONAL
Though lhe inlomalion below is nol requi@d by law, it may prove valuable lo persons rclying on the docufient
and could prcvenl laudulenl rcmoval and rcatlachment ol this lorm to anothet documenL
Description ol Attached Document
Tille or Type ol Oocumenl -_ _
Document Date Number ol Pages
Signer's Name Signer's Name
Corporale Otficer - Title(s)
lndividual
Partner - Limited General
Attomey in Fact
Trustee
Guardian or Conservalor
Other:
Signer ls Representing: _
Partner - Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer ls Representing: _
RETT THUMBPBII'IT
OF SIGXER
RIGHT THUUAPANT
OF SIGNEF
c 20r0 Nariohar Nora.y Assocration . NarionatNotary or9 . |.aoo.us NoTABy (t-800-a76-6827)
Signer(s) Oiher Than Named Above:
Capacity(ies) Claimed by Signe(s)
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Corporate Oflicer - Tille(s):
lndividual