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HomeMy WebLinkAboutAgreement A-19-309 with Brown Armstrong.pdfAgreement No . 19 -309 1 AUDIT SERVICES AGREEMENT 2 This Audit Services Agreement ("Agreement") is dated July 9. 2019 and is 3 between Brown Armstrong Accountancy Corporation . a California corporat ion ("Contractor") and 4 the County of Fresno . a political subdivision of the State of California ("County "). 5 Recitals 6 A. The County published its Request for Proposal No . 19-051 for External Audit Services , 7 dated February 12 , 2019 , and Addendum Number 1 to that request , dated February 25 , 2019 8 (together , the "RFP "), in order to seek the independent and professional external audit services 9 of a qualified certified public accounting firm for the County 's Fiscal Year 2019-19 . 10 B. The Contractor submitted its "Proposal for External Audit Services ," dated March 12 , 11 2019 , in response to the RFP ("Contractor's Proposal "). 12 C. The parties desire that the Contractor shall provide independent aud it services to the 13 County for each Fiscal Year Covered by this Agreement (as that term is defined in section 7.3). 14 D. The Contractor's Proposal represents to the County that: 15 1. The Contractor is highly qualified to provide the most efficient and responsive 16 independent professional audit services to the County ; 17 2. The Contractor is familiar with and has a comprehensive understanding of the 18 County's operations , accounting systems , and policies ; 19 3. The Contractor has extensive experience in serving public sector clients ; 20 4 . The Contractor proposes a very qualified auditing team which has worked on other 21 large aud its ; 22 5. Each of the Contractor's partners , senior managers and other supervisory 23 professionals , whom the Contractor has selected to provide services for the County , 24 specializes in the government industry ; and 25 6. The contractor meets the independence standards contained in Government 26 Auditing Standards, issued by the United States General Accounting Office ("the 27 Yellow Book "), and is independent of the County and all of the other agencies listed 28 in section 2 .1 of this Agreement. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 E. The parties desire to enter into an agreement for the provision of independent, professional audit services by a qualified certified public accounting firm as requested by the County and proposed by the Contractor. The parties therefore agree as follows: Article 1 Contractor’s Warranties, Representations, Covenants, and Assurances 1.1 The Contractor warrants, represents, and covenants to the County that: (A) The Contractor is highly qualified to provide the most efficient and responsive independent, professional audit services to the County; (B) The Contractor is familiar with and has a comprehensive understanding of the County’s operations, accounting systems, and policies; (C) The Contractor has extensive experience in serving public sector clients; (D) The Contractor proposes and will assign a very qualified audit team which has worked on other large audits; (E) Each of the Contractor’s partners, senior managers, managers, and other supervisory professionals, whom the Contractor has selected to provide services for the County, specializes in the government industry; and (F) The Contractor meets the independence standards contained in the Yellow Book, and is independent of the County and all of the County’s independent component units. 1.2 Contractor’s Professional Team. The Contractor will use its best efforts to assign the professionals identified in this section 1.2 (“Contractor’s Professional Team”) to perform services under this Agreement. Contractor’s Professional Team is composed of the following persons: Name Professional Staff Level Eric H. Xin, CPA, MBA Engagement Partner Thomas M. Young, CPA Engagement Co-Partner Lindsay B. McGuire, CPA Concurring Review Partner Mai Xiong, CPA Engagement Manager 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 Vivi T. Le, CPA Engagement Senior Paul Sahota, CPA Engagement Senior Evan Lucero Engagement Staff Nikki Rios Engagement Staff Marleen Rojas Engagement Staff 1.3 Acknowledgment of Unrelated Services. The parties acknowledge that the Contractor, as an independent contractor, intends to use members of Contractor’s Professional Team during the term of this Agreement to provide services to others unrelated to the County or to this Agreement, but the Contractor agrees that it will not enter into any other agreements or engagements for other clients that would materially impair the Contractor’s ability to have members of Contractor’s Professional Team available to perform services under this Agreement. 1.4 Replacements on Contractor’s Professional Team. If the Contractor appoints a replacement for any of Contractor’s Professional Team members with another one of the Contractor’s professionals, the Contractor shall promptly notify the County of that change in writing, and provide the replacement professional at no additional cost to the County. The replacement professional must possess a similar level of governmental auditing experience and expertise required to allow the Contractor to fully and properly carry out its obligations under this Agreement, and the replacement professional must be one who is, in the normal course of the Contractor’s business, classified by the Contractor at the same or a higher professional staff level as the professional replaced. The County Administrative Officer reserves the right to approve or reject any of the Contractor’s replacement professionals. The County Administrative Officer shall promptly notify the Contractor of the approval or rejection of a replacement professional following the County’s receipt of notice of the replacement professional’s appointment by the Contractor. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 Article 2 Obligations of the Contractor 2.1 Audit Services. For each Fiscal Year Covered by this Agreement (as that term is defined in section 7.3), the Contractor shall provide the following audit services: (A) The Contractor shall perform an audit of the County’s basic financial statements, supplementary information, and required supplementary information, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Yellow Book. (B) The Contractor shall perform a Single Audit of the County’s federally funded grant programs in accordance with the Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, at Code of Federal Regulations, Title 2, Part 200 (“Uniform Guidance”). In addition, the Contractor shall prepare the related Data Collection Form for Reporting on Audits of States, Local Governments, Indian Tribes, Institutions of Higher Education, and Non-Profit Organizations (Form SF-SAC). (C) The Contractor shall perform a count of monies in the County Treasury at least once each quarter (i.e., for the quarters ending on September 30, December 31, March 31, and June 30 for each Fiscal Year Covered by this Agreement), and issue quarterly reports to the County’s Audit Committee and the Board of Supervisors of procedures performed in that count. (D) The Contractor shall perform an audit of the California Emergency Management Agency (“CalEMA”), Office of Criminal Justice Planning (“OCJP”), and Fresno County Transportation Authority (“Measure C”) grants. (E) The Contractor shall prepare a financial assurance letter for the Coalinga, Southeast Regional, and Blue Hills Disposal Sites for the California Environmental Protection Agency to satisfy the requirements of California Code of Regulations, Title 27, Division 2, Subdivision 1, Chapter 6, section 22249. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 (F) The Contractor shall perform a financial review of the County’s appropriations limit as required by Proposition 111. (G) The Contractor shall issue the necessary annual audit reports for the purpose of meeting the requirements of California Government Code, Title 5, Division 2, Part 1, Chapter 4, Article 1, sections 53600, 53601 and 53607; Article 2, sections 53635 and 53646; and Title 3, Division 2, Part 3, Chapter 5, Article 6, sections 27130 through 27137, related to the County Treasury Pool and the County’s Investment Policy. (H) The Contractor shall perform an audit of the Fresno County In-Home Supportive Services Public Authority. (I) The Contractor shall perform an audit of the Fresno County Zoo Authority. (J) The Contractor shall perform an audit of the Fresno County Tobacco Funding Corporation. (K) The Contractor shall perform an audit of the Fresno County Service Areas, Waterworks Districts, Maintenance Districts, Highway Lighting Districts, and Solid Waste Commissions. (L) The Contractor shall issue a report for the purpose of meeting the audit requirements of the Fresno County Community Corrections Partnership Executive Committee established by Assembly Bill 118 for Fund 0271, Subclass 13020, Organization 3436, Local Community Corrections Account. Notwithstanding anything else in this Agreement, the first report that the Contractor issues under this section 2.1(L) shall cover the 2017-18 and 2018-19 fiscal years. 2.2 The purpose of the audit of the financial statements of the County and the other agencies listed above is to enable the Contractor to issue the written independent auditor’s reports listed in section 3.2. 2.3 The Contractor shall audit the combining and individual fund statements, supplementary information, and required supplementary information. For each Fiscal Year Covered by this Agreement, the Contractor shall also provide an “in-relation-to” report on supporting statements and schedules based on the auditing procedures applied during the audit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 of the County’s basic financial statements in accordance with applicable laws, regulations, and professional standards. In addition, the Contractor shall read other information that the Contractor is aware of in order to identify material inconsistencies with the audited financial statements, including other information of the comprehensive annual financial report. 2.4 The Contractor is not required to audit the schedule of expenditures of federal awards. However, for each Fiscal Year Covered by this Agreement, the Contractor shall provide an “in-relation-to” report on that schedule based on the auditing procedures applied during the audit of the County’s basic financial statements in accordance with applicable laws, regulation, and professional standards. 2.5 For each Fiscal Year Covered by this Agreement, the Contractor shall meet separately with the County’s Audit Coordinator (as that term is defined in section 6.1 of this Agreement) during the year-end fieldwork and bi-weekly thereafter as deemed necessary by the County’s Audit Coordinator, to discuss the audit progress. A written status report on audit progress and instances of failure by either party to comply with the terms of the Agreement shall be provided by the Contractor and discussed during these meetings. That report to the County is not, in and of itself, notice to the County that the County is in breach of this Agreement. Also, at those meetings, the County’s Audit Coordinator shall present any deviations that Contractor has made from the work schedule requirements. Any revision to the scheduled requirements must be agreed upon in writing by both the County’s Audit Coordinator and the Contractor. 2.6 For each Fiscal Year Covered by this Agreement, the Contractor shall audit all federally-funded grant programs for which the County disbursed federal funds, when identified by the County, even if those programs are not listed in this Agreement. The Contractor is not responsible for auditing County’s sub-recipients of federal funds disbursed by the County. 2.7 The County has federally-funded programs not appearing in this Agreement, which are major programs, as defined under the Single Audit Act of 1984 (P.L. 98-502) as amended by the Single Audit Act Amendments of 1996 (P.L. 104-156) (collectively, “Single Audit Act”) and the Uniform Guidance, and the Contractor is required, for each Fiscal Year Covered by this Agreement, to expend in excess of 100 professional staff hours of audit field work in order for 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 the Contractor to complete the performance of its obligations under this Agreement in connection with the Single Audit Act and the Uniform Guidance. The Contractor will be compensated for the additional time of audit fieldwork, above such 100 professional staff hours, at the rates of compensation identified in Article 9 of this Agreement, “Compensation and Invoicing,” but only upon the execution of a written amendment between the parties under section 16.1. 2.8 The Contractor shall submit by mail the confirmations prepared and delivered by the Auditor-Controller/Treasurer-Tax Collector under section 6.2 of this Agreement. Article 3 Performance of Work 3.1 Method of Auditing. The Contractor’s shall perform audit services under this Agreement in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act; the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and the related compliance supplement (“OMB Circular A-133”), and any other applicable laws, regulations, and professional standards. 3.2 Issuance of Reports. For each Fiscal Year Covered by this Agreement, following the Contractor’s completion of the audit of the fiscal year’s financial statements, the Contractor shall issue to the County’s Audit Committee the following written reports in accordance with applicable laws, regulations, and professional standards: (A) The Contractor shall issue a written independent auditor’s report regarding the County’s basic financial statements. (B) The Contractor shall issue a written independent auditor’s report regarding the County’s internal controls over financial reporting based on the Contractor’s understanding of the internal controls and assessment of control risk. In addition, the Contractor shall communicate in writing to the County’s Audit Committee any Significant Deficiencies, Material Weaknesses, or both found during the audit. A “Significant 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8 Deficiency” is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the organization. A “Material Weakness” is a deficiency, or a combination of deficiencies, in internal control, such that there is reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. (C) The Contractor shall issue a written independent auditor’s report regarding the County’s compliance with applicable laws and regulations. The report on compliance shall include all material instances of noncompliance. This report may be combined with the report required under section 3.2(B). (D) The Contractor shall issue a written independent auditor’s “in relation to” report on the schedule of expenditures of federal awards. (E) The Contractor shall issue a written independent auditor’s report regarding the County’s internal control over major federal programs describing the scope of testing of internal control and the results of the tests, and, where applicable, a schedule of findings and questioned costs. (F) The Contractor shall issue a written independent auditor’s report regarding the County’s compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the County’s financial statements. This report must include an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that may have a direct and material effect on each major federal program, and, where applicable, a schedule of findings and questioned costs. This report may be combined with the report required under section 3.2(E). (G) The Contractor shall issue quarterly reports of procedures related to the count of money in the County Treasury for the quarters ending June 30, September 30, December 31, and March 31. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9 (H) The Contractor shall issue a written independent auditor’s report regarding the County’s administration of the Measure C funds received by the County’s Road Fund and CalEMA and OCJP grants in order to meet the audit requirements of those grants. (I) The Contractor shall issue a financial assurance letter on the Coalinga, Southeast Regional, and Blue Hills Disposal Sites for the California Environmental Protection Agency to satisfy the requirements of California Code of Regulations, Title 27, Division 2, Subdivision 1, Chapter 6, section 22249. (J) The Contractor shall issue a written report on the financial review of the County’s annual calculation of its appropriations limit as required by Proposition 111. (K) The Contractor shall issue a written independent auditor’s report regarding the County’s compliance with California Government Code, Title 5, Division 2, Part 1, Chapter 4, Article 1, sections 53600, 53601 and 53607; Article 2, sections 53635 and 53646; and Title 3, Division 2, Part 3, Chapter 5, Article 6, sections 27130 through 27137, related to the County Treasury Pool and the County’s Investment Policy. (L) The Contractor shall issue a written independent auditor’s report on the Fresno County In-Home Supportive Service Public Authority. (M) The Contractor shall issue a written independent auditor’s report for the Fresno County Zoo Authority. (N) The Contractor shall issue a written independent auditor’s report for the Fresno County Tobacco Funding Corporation. (O) The Contractor shall issue written independent auditor’s reports for the Fresno County Service Areas, Waterworks Districts, Maintenance Districts, Highway Lighting Districts, and Solid Waste Commissions. (P) The Contractor shall issue written independent auditor’s reports to satisfy the audit requirements for the Fresno County Community Corrections Partnership Executive Committee. 3.3 Copies of Reports. The Contractor shall provide to the County 20 copies of all reports listed above, as well as copies for all filings with other government agencies. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 10 3.4 Irregularities and Illegal Acts. CONTRACTOR shall promptly make a written report to the COUNTY's Audit Committee (provided however, for any act involving a member of the Audit Committee, to the Board of Supervisors) of all irregularities or illegal acts of which CONTRACTOR becomes aware. 3.5 Release of Information. Any reports, information or other data prepared or assembled by the Contractor under this agreement shall not be made available to any individual, organization or entity by the Contractor without the express written consent of the County. 3.6 Reporting to the Audit Committee. Pursuant to AICPA Statement on Auditing Standards No. 114, "The Auditor’s Communications With Those Charged With Governance," effective December 15, 2006, the Contractor shall ensure that the County’s management charged with governance, including the Audit Committee, is informed in writing of each of the following applicable matters, as defined in such statement on auditing standards: (A) The Contractor’s responsibility to the County under generally accepted auditing standards; (B) Significant accounting practices, including accounting policies and estimates, and financial statement disclosures; (C) Management judgments and accounting estimates; (D) Significant audit adjustments; (E) Other information in documents containing audited financial statements; (F) Disagreements with management; (G) Management consultation with other accountants; (H) Major issues discussed with management prior to retention; and (I) Difficulties encountered in performing each audit performed under this Agreement. 3.7 Special Considerations. (A) It is understood that the County will send its Comprehensive Annual Financial Report to the Government Finance Officers Association of the United States and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11 Canada (GFOA) for review in its Certificate of Achievement for Excellence in Financial Reporting program for each of the Fiscal Years Covered by this Agreement. The parties anticipate that the Contractor, at no additional cost to the County, shall provide minor assistance to the County to meet the requirements of that program. The Contractor shall complete its Independent Auditor's Report on the County’s basic financial statements for inclusion in the County’s Comprehensive Annual Financial Report in sufficient time for County to meet the GFOA report deadline. (B) During each Fiscal Year Covered by this Agreement, the County may prepare one or more official statements in connection with the sale of one or more series of tax and revenue anticipation notes (issued under Government Code Sections 53850 et seq.) which will contain the County’s basic financial statements and the Contractor’s audit report for those statements. During each Fiscal Year Covered by this Agreement, the County may also prepare one or more official statements in connection with the sale of one or more other municipal debt securities, which will contain the County’s basic financial statements and the Contractor’s audit report for those statements. The Contractor, at no additional cost to the County, shall, if requested by the County’s fiscal advisor and/or the underwriter working in connection with the sale of such tax and revenue anticipation notes or any such other municipal debt securities, issue a “consent and citation of expertise” letter as the auditor for the County, and any necessary “comfort letters,” as defined in AICPA Codification of Statements on Auditing Standards AU 634 , “Letters for Underwriters and Certain Other Requesting Parties.” (C) The County has determined, and Contractor acknowledges, that the California State Controller will function as the Cognizant Agency in accordance with the provisions of the Single Audit Act, the Uniform Guidance, and OMB Circular A-133 under contract by the United States Department of Health and Human Services. (D) The schedule of expenditures of federal awards and related auditor’s report, as well as the reports on the internal control structure and compliance will not be included in the County’s Comprehensive Annual Financial Report, but must be issued separately. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12 (E) All other special reports required to be prepared and provided under this Agreement will not be included in the County’s comprehensive annual financial report, but must be issued separately. Article 4 Dates and Timelines 4.1 Time of the Essence. The Contractor acknowledges that time is of the essence in the performance of its services under this Agreement. 4.2 County Readiness. The County will have financial system records ready for audit and all management personnel available to meet with the Contractor’s personnel as of June 10 of each Fiscal Year Covered by this Agreement, except that for the first Fiscal Year Covered by this Agreement, the County will be ready within 30 days after the County executes this Agreement. 4.3 Completion Dates. For each Fiscal Year Covered by this Agreement, the Contractor shall complete the following tasks by the following dates for the relevant fiscal year. For purposes of this schedule, “the relevant fiscal year” means the fiscal year under audit. (A) Interim Work. The Contractor shall complete all interim work by July 31 after the relevant fiscal year. (B) Detailed Audit Plan. The Contractor shall provide the County, by September 13 after the relevant fiscal year, both a detailed audit plan and list of schedules to be prepared by the County. (C) Fieldwork. The Contractor shall complete all fieldwork by October 31 after the relevant fiscal year. (D) CAFR Draft Reports. The Contractor shall have drafts of the audit reports and recommendations to management available for review by the County’s Auditor- Controller/Treasurer-Tax Collector by November 15 after the relevant fiscal year. (E) Management Letter and SAS 114 Audit Committee Communication. The Contractor shall complete and provide draft report copies of the County Management 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 13 Letter and SAS 114 Audit Committee Communication by November 27 after the relevant fiscal year. (F) Federal Single Audit. The Contractor shall complete and provide draft copies, to the County’s Auditor-Controller/Treasurer-Tax Collector, of the Federal Single Audit Report by February 7 after the relevant fiscal year, in order to meet the deadline of March 31 after the relevant fiscal year to the State Controller. (G) Quarterly Cash Counts. The Contractor shall provide quarterly cash counts for quarters ending September 30, December 31, March 31, and June 30 within 60 days after the end of each quarter. (H) OCJP Audit and Disposal Site Review. The Contractor shall complete and provide draft report copies of the OCJP Audit and the Coalinga, Southeast Regional, and Blue Hills Disposal Site Review by February 15 after the relevant fiscal year to meet the filing deadline of March 15 after the relevant fiscal year. (I) Draft Reports and Appropriations Limit. The Contractor shall complete and provide draft report copies related to Treasury Oversight by November 27 after the relevant fiscal year and the Gann Appropriations Limit by September 13 after the relevant fiscal year. (J) Measure C. The Contractor shall complete and provide draft report copies related to the Measure C audit by February 15 after the relevant fiscal year. (K) In-Home Support Services Public Authority. The Contractor shall complete the draft audit report by May 1 after the relevant fiscal year. 4.4 Revision of Completion Dates. Notwithstanding anything else stated to the contrary in this Article 4, the parties may mutually agree in writing to revise the date of completion of any of the Contractor’s work under this agreement, if they confirm that agreement in writing. The County Administrative Officer may confirm such an agreement on behalf of the County. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 14 Article 5 Access to Working Papers 5.1 County’s Right to Access Working Papers. The County has the right under this Agreement to authorize the County’s Designees to have the right, during the Contractor’s normal office hours with reasonable, advance notification given to the Contractor, to access all of the Contractor’s working papers and reports prepared under this Agreement, including the Contractor’s Proprietary Information contained in those papers and reports. The term “County’s Designees” mans any interested Federal Agency (including the United States General Accounting Office), any interested State of California Agency, the Cognizant Agency designated by the Federal Government in accordance with the provisions of the Single Audit Act and OMB Circular A-133, any person or entity, however organized, designated by the Federal or California State governments, or of their agencies, or by the County as part of an audit quality review process, auditors of entities of which the County is a sub-recipient of Federal or State grant funds, or auditors of entities of which the County is a component unit. But the “County’s Designees” do not include the County, any of its officials, or an independent auditor of the County that is a successor of the Contractor. 5.2 Compliance with Inquiries to Access Working Papers. The Contractor shall comply with the reasonable inquiries of the County (including the County Administrative Officer and the County’s Auditor-Controller/Treasurer-Tax Collector) or any independent auditor of the County that is a successor of the Contractor, and allow the County (including the County Administrative Officer and the County’s Auditor-Controller/Treasurer-Tax Collector) and such successor independent auditors to have access to all of the Contractor’s working papers and reports relating to matters of continuing accounting significance, except that the County (including the County Administrative Officer and the County’s Auditor-Controller/Treasurer-Tax Collector) and such successor independent auditors are not authorized under this section 5.2 to have access to Contractor’s Proprietary Information. 5.3 Definition of Proprietary Information. For purposes of this Article 5, “Proprietary Information” means documents and other material created by the Contractor that relate 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 15 principally to the conduct any audit by the Contractor under this Agreement and would be generally recognized in the professional independent auditing industry as containing or revealing the Contractor’s unique audit procedures or processes, confidential information, or trade secrets (e.g., the Contractor’s audit programs or audit planning memoranda). 5.4 Retention Period. All of the Contractor’s working papers and reports must be retained, at the Contractor’s sole expense, for a minimum of four years following the completion of the Contractor’s performance of audit services under this Agreement, unless and until the county notifies the Contractor within that four-year period that the retention period must be extended. 5.5 Survival. The terms of this Article 5, “Access to Working Papers,” shall survive the termination of this Agreement. Article 6 Obligations of the County 6.1 County’s Audit Coordinator. The Accounting and Financial Division Chief for the Financial Reporting and Audits Division of the County’s Auditor-Controller/Treasurer-Tax Collector’s office is the County’s Audit Coordinator. The responsibilities of the Audit Coordinator include advising County departments of the Contractor’s audit schedule and the anticipated areas planned for audit, and working with the county departments and obtaining their cooperation to enable the Contractor to fulfill its obligations under this Agreement. The Contractor shall provide sufficient, advance information to permit the County’s Audit Coordinator to fulfill its responsibilities under this Agreement. 6.2 Auditor-Controller/Treasurer-Tax Collector. The Auditor-Controller/Treasurer-Tax Collector staff and responsible management personnel will be available to assist the Contractor by providing information, documentation, and explanations as needed for the Contractor to perform services under this agreement. The accurate preparation of confirmations, as requested by the Contractor, is the responsibility of the Auditor-Controller/Treasurer-Tax Collector, which will deliver them to the Contractor. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 16 (A) For each Fiscal Year Covered by this Agreement, the Auditor- Controller/Treasurer-Tax Collector will provide up to 40 hours of clerical support the external auditor to prepare and print letters and coordinate communication regarding meetings. (B) For each Fiscal Year Covered by this Agreement, the Auditor- Controller/Treasurer-Tax Collector will provide up to 120 hours of staff time to assist the contractor in performing audit tests. 6.3 Electronic Data Processing Assistance. The Information Technology Division of the County’s Internal Services Department (“IT/ISD”) will provide reasonable assistance as listed in subdivision (A) and (B) below as needed for the Contractor to perform services under this agreement. “Reasonable assistance” means assistance that does not interfere with the delivery by IT/ISD of services and support to County departments. (A) IT/ISD will provide Electronic Data Processing personnel to provide systems documentation and explanations. (B) IT/ISD will provide computer time and use of computer hardware and software. 6.4 Statements and Schedules. The Auditor-Controller/Treasurer-Tax Collector will prepare statements and schedules for the external auditor by the dates indicated in section 4.3 of this Agreement. 6.5 Work Area, Telephone, Photocopying and Fax Machines. The County will provide the Contractor with reasonable workspace, including desk and chairs, as needed for the Contractor to perform services under this Agreement. The County will also provide the Contractor with access to one telephone line, photocopying facilities, and access to a fax machine subject to the following restrictions: (A) The items provided under this section 6.5 are only available during the operating hours of the County department where they are located. (B) Phone calls are limited to local calls. (C) Workspace is provided subject to the capacity of the County department where it is located. The County anticipates that the Auditor-Controller/Treasurer-Tax Collector will 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 17 have workspace for up to five Contractor personnel at a time, but cannot guarantee that quantity of workspace. (D) Fax services are limited to local service of an emergency nature. (E) The Contractor may only access photocopying facilities with prior approval by County department management where the facilities are located. 6.6 Report Preparation. The County is responsible for preparation, editing, and printing of its basic financial statements. Article 7 Term 7.1 This Agreement is effective when both parties have signed and continues until the Contractor has performed all of its obligations under this Agreement for the 2018-19 fiscal year, or until June 30, 2020, whichever occurs later, unless this Agreement is terminated sooner as provided in Article 8, or extended as provided in section 7.2. 7.2 Optional Extension. This Agreement may be extended for up to four additional consecutive 12-month periods upon signed written approval of both parties no later than 60 days prior to the first day of the next 12-month extension period. The County Administrative Officer or his or her designee is authorized to sign such written approval on behalf of the County. 7.3 Definition of “Fiscal Year Covered by this Agreement.” The term “Fiscal Year Covered by this Agreement” means the 2018-19 fiscal year and, for each extension authorized under section 7.2, the fiscal year ending 12 months before the last day of the extension period. Article 8 Termination 8.1 Non-Allocation of Funds. The terms of this Agreement, and the services to be provided under it, are contingent on the approval of funds by the appropriating government agency. If sufficient funds are not allocated, the services provided may be modified, or this Agreement terminated, at any time by the County giving the Contractor 30 days’ advance written notice. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 18 8.2 Breach of Contract. The County may immediately suspend or terminate this Agreement in whole or in part, where in the determination of the County there is: (A) An illegal or improper use of funds; (B) A failure to comply with any term of this Agreement; (C) A substantially incorrect or incomplete report submitted to the County; (D) Improperly performed service. 8.3 Without Cause. Under circumstances other than those set forth above, the County may terminate this Agreement by giving of at least 30 days’ advance written notice to the Contractor of the County’s intention to terminate. 8.4 County’s Right to Demand Repayment. The County has the right to demand of the Contractor the repayment to the County of any funds disbursed to the Contractor under this Agreement, which in the sole judgment of the County were not expended in accordance with the terms of this Agreement. The Contractor shall promptly refund any such funds upon demand. Article 9 Compensation and Invoicing 9.1 The County agrees to pay the Contractor, and the Contractor agrees to receive, payment under this Article 9 as full compensation for services performed under this Agreement. 9.2 Hourly Rates. The hourly rates for the Contractor’s personnel are as follows: (A) $180 per hour for partners; (B) $120 per hour for managers; (C) $100 per hour for supervisory staff; (D) $70 per hour for staff; and (E) $50 per hour for other (clerical). 9.3 Progress Payments. Subject to the maximum amounts payable in section 9.4, the County will make progress payments based on the hours of work actually performed during the term of this Agreement. Progress billings must cover a period of not less than four weeks, but the Contractor may not submit more than one billing in any calendar month. The Contractor 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 19 shall submit progress billing invoices to the address provided for the County in Article 14 of this Agreement. 9.4 Maximum Amount Payable. The total maximum amount payable to the Contractor for performing all services under this Agreement will not exceed $198,000 for each Fiscal Year Covered by this Agreement. For each of the tasks described in section 2.1 of this Agreement (including all of the reports required under section 3.2 of this Agreement), the maximum amount payable to the Contractor is as stated below (which amounts total $198,000). The maximum compensation amounts in this section 9.4 are calculated according to the schedules in Exhibit B to this Agreement, as stated below. (A) For the audit of the County’s basic financial statements, supplementary information, and required supplementary information, $54,100 (Exhibit B, page B-2); (B) For the Single Audit of the County’s federally funded grant programs, $32,000 (Exhibit B, page B-3); (C) For the count of monies in the County Treasury at least once each quarter, $3,200 (Exhibit B, page B-4); (D) For the audit of the CalEMA, OCJP, and Measure C grants, $14,000 (Exhibit B, page B-5); (E) For the financial assurance letter for the Coalinga, Southeast Regional, and Blue Hills Disposal Sites, $3,500 (Exhibit B, page B-6); (F) For the financial review of the County’s appropriations limit as required by Proposition 111, $1,500 (Exhibit B, page B-7); (G) For issuing the necessary annual audit reports for the purpose of meeting the requirements of California Government Code, Title 5, Division 2, Part 1, Chapter 4, Article 1, sections 53600, 53601 and 53607; Article 2, sections 53635 and 53646; and Title 3, Division 2, Part 3, Chapter 5, Article 6, sections 27130 through 27137, related to the County Treasury Pool and the County’s Investment Policy, $3,300 (Exhibit B, page B-8); 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 (H) For the audit of the Fresno County In-Home Supportive Services Public Authority, $3,500 (Exhibit B, page B-9); (I) For the audit of the Fresno County Zoo Authority, $2,800 (Exhibit B, page B-10); (J) For the audit of the Fresno County Tobacco Funding Corporation, $7,800 (Exhibit B, page B-11); (K) For the audit of the Fresno County Service Areas, Waterworks Districts, Maintenance Districts, Highway Lighting Districts, and Solid Waste Commissions, $67,800 (Exhibit B, page B-12); and (L) For a report for the purpose of meeting the audit requirements of the Fresno County Community Corrections Partnership Executive Committee, $4,500 (Exhibit B, page B-13). 9.5 Amount Withheld until Delivery of Final Reports. The County will withhold 10 percent of the amount due from each billing pending delivery of the Contractor’s final reports. 9.6 Assumptions. The maximum amount payable to the Contractor under this Agreement assumes the following: (A) That the County will prepare the basic financial statements, the Schedule of Expenditures of Federal Awards, and schedules to support significant financial statement balances; and (B) That the financial statements prepared by the County will require few material audit adjustments by the Contractor. 9.7 Incidental Expenses. All expenses incidental to the Contractor’s performance of services under this Agreement shall be borne solely by the Contractor. Article 10 Independent Contractor 10.1 In performance of the work, duties and obligations assumed by the Contractor under this Agreement, it is mutually understood and agreed by the parties that the Contractor, including any and all of the Contractor’s officers, agents, and employees will at all times be acting and performing as an independent contractor, and shall act in an independent capacity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 21 and not as an officer, agent, servant, employee, joint venturer, partner, or associate of the County. Furthermore, the County has no right to control or supervise or direct the manner or method by which the Contractor performs its work and function under this Agreement. However, the County retains the right to administer this Agreement so as to verify that the Contractor is performing its obligations in accordance with the terms and conditions of this Agreement. 10.2 Each of the parties shall comply with all applicable provisions of law and the rules and regulations, if any, of governmental authorities having jurisdiction over matters that are the subject of those provisions. 10.3 Because of its status as an independent contractor, the Contractor has absolutely no right to employment rights and benefits available to County employees. The Contractor is solely liable and responsible for providing to, or on behalf of, its employees all legally required employee benefits. In addition, the Contractor is solely responsible and save the County harmless from all matters relating to payment of the Contractor’s employees, including compliance with Social Security withholding and all other regulations governing such matters. The parties acknowledge that during the term of this Agreement, the Contractor may be providing services to others unrelated to the County or to this Agreement. Article 11 Indemnity 11.1 The Contractor agrees to indemnify, save, hold harmless, and at the County’s request, defend the County, its officers, agents, and employees from any and all costs and expenses (including attorney’s fees and costs), damages, liabilities, claims, and losses occurring or resulting to the County in connection with the performance, or failure to perform, by the Contractor, its officers, agents, or employees under this Agreement, and from any and all costs and expenses (including attorney’s fees and costs), damages, liabilities, claims, and losses occurring or resulting to any person, firm, or corporation who may be injured or damaged by the performance, or failure to perform, of the Contractor, its officers, agents, or employees under this Agreement. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 22 Article 12 Insurance 12.1 Without limiting the County’s right to obtain indemnification from the Contractor or any third parties, the contractor, at its sole expense, shall maintain in full force and effect, the following insurance policies throughout the term of this Agreement: (A) Commercial General Liability. Commercial General Liability Insurance with limits of not less than Two Million Dollars ($2,000,000.00) per occurrence and an annual aggregate of Four Million Dollars ($4,000,000.00). This policy must be issued on a per occurrence basis. (B) Automobile Liability. Comprehensive Automobile Liability Insurance with limits of not less than One Million Dollars ($1,000,000.00) per accident for bodily injury and for property damages. Coverage should include any auto used in connection with this Agreement. (C) Professional Liability. Professional Liability Insurance with limits of not less than One Million Dollars ($1,000,000.00) per occurrence, Three Million Dollars ($3,000,000.00) annual aggregate. (D) Worker’s Compensation. A policy of Worker's Compensation insurance as may be required by the California Labor Code. 12.2 Additional Requirements Relating to Insurance. (A) The Contractor shall obtain endorsements to the Commercial General Liability insurance naming the County of Fresno, its officers, agents, and employees, individually and collectively, as additional insured, but only insofar as the operations under this Agreement are concerned. Such coverage for additional insured shall apply as primary insurance and any other insurance, or self-insurance, maintained by the County, its officers, agents and employees shall be excess only and not contributing with insurance provided under the Contractor’s policies required under this Agreement. This insurance shall not be cancelled or changed without a minimum of 30 days advance written notice given to the County. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 23 (B) The Contractor hereby waives its right to recover from the County, its officers, agents, and employees any amounts paid by the policy of worker’s compensation insurance required by this Agreement. The Contractor is solely responsible to obtain any endorsement to such policy that may be necessary to accomplish such waiver of subrogation, but the Contractor’s waiver of subrogation under this paragraph is effective whether or not the Contractor obtains such an endorsement. (C) Within 30 days from the date the Contractor signs and executes this Agreement, the Contractor shall provide certificates of insurance and endorsement as stated above for all of the foregoing policies, as required under this Agreement, to the County of Fresno, Assistant County Administrative Officer, 2281 Tulare Street Room 304, Fresno, CA 93721, stating that such insurance coverage have been obtained and are in full force; that the County of Fresno, its officers, agents and employees will not be responsible for any premiums on the policies; that for such worker’s compensation insurance the Contractor has waived its right to recover from the County, its officers, agents, and employees any amounts paid under the insurance policy and that waiver does not invalidate the insurance policy; that such Commercial General Liability insurance names the County of Fresno, its officers, agents and employees, individually and collectively, as additional insured, but only insofar as the operations under this Agreement are concerned; that such coverage for additional insured shall apply as primary insurance and any other insurance, or self-insurance, maintained by the County, its officers, agents and employees, shall be excess only and not contributing with insurance provided under the Contractor’s policies under this Agreement; and that this insurance shall not be cancelled or changed without a minimum of 30 days’ advance, written notice given to County. (D) If the Contractor fails to keep in effect at all times insurance coverage as required under this Agreement, the County may, in addition to other remedies it may have, suspend or terminate this Agreement upon the occurrence of such event. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 24 (E) All insurance policies required under this Agreement must be issued by admitted insurers licensed to do business in the State of California, and such insurance must be purchased from companies possessing a current A.M. Best, Inc. rating of A FSC VII or better. Article 13 Audits and Inspections 13.1 The Contractor shall at any time during business hours, and as often as the County may deem necessary, make available to the County for examination all of its records and data with respect to the matters covered by this Agreement. The Contractor shall, upon request by the County, permit the County to audit and inspect all of such records and data necessary to ensure Contractor’s compliance with the terms of this Agreement. 13.2 If this Agreement exceeds $10,000.00, the Contractor shall be subject to the examination and audit of the California State Auditor for a period of three years after final payment under contract (Government Code Section 8546.7). Article 14 Notices 14.1 Contact Information. The persons and their addresses having authority to give and receive notices provided for or permitted under this Agreement include the following: For the County: County of Fresno Attention: Assistant County Administrative Officer 2281 Tulare Street, Room 304 Fresno, California 93721 Fax: (559) 600-1230 For the Contractor: Brown Armstrong Accountancy Corporation Attention: Eric H. Xin, CPA, MBA 4200 Truxton Avenue, Suite 300 Bakersfield, California 93309 Fax: (559) 324-4997 14.2 Change of Contact Information. Either party may change the information in section 14.1 by giving notice as provided in section 14.3. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 25 14.3 Method of Delivery. All notices between the County and the Contractor provided for or permitted under this Agreement must be in writing and delivered either by personal service, by first-class United States mail, by an overnight commercial courier service, or by telephonic facsimile transmission. (A) A notice delivered by personal service is effective upon service to the recipient. (B) A notice delivered by first-class United States mail is effective three County business days after deposit in the United States mail, postage prepaid, addressed to the recipient. (C) A notice delivered by an overnight commercial courier service is effective one County business day after deposit with the overnight commercial courier service, delivery fees prepaid, with delivery instructions given for next day delivery, addressed to the recipient. (D) A notice delivered by telephonic facsimile transmission is effective when transmission to the recipient is completed (but, if such transmission is completed outside of County business hours, then such delivery is deemed to be effective at the next beginning of a County business day), provided that the sender maintains a machine record of the completed transmission. 14.4 Claims Presentation. For all claims arising from or related to this Agreement, nothing in this Agreement establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with section 810). Article 15 Disclosure of Self-Dealing Transactions 15.1 Applicability. This article applies if the Contractor is operating as a corporation, or changes its status to operate as a corporation. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 26 15.2 Duty to Disclose. If any member of the Contractor’s board of directors is party to a self-dealing transaction, he or she shall disclose the transaction by completing and signing a “Self-Dealing Transaction Disclosure Form” (Exhibit A to this Agreement) and submitting it to the County before commencing the transaction or immediately after. 15.3 Definition. “Self-dealing transaction” means a transaction to which the Contractor is a party and in which one or more of its directors, as an individual, has a material financial interest. Article 16 General Terms 16.1 Modification. Except as provided in Article 8, this Agreement may not be modified, and no waiver is effective, except by another written Agreement that is signed by both parties. 16.2 Non-Assignment. Neither party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other party. 16.3 Governing Law. The laws of the State of California govern all matters arising from or related to this Agreement. 16.4 Jurisdiction and Venue. This Agreement is made in Fresno County, California. The Contractor consents to California jurisdiction for actions arising from or related to this Agreement, and, subject to the Government Claims Act, all such actions must be brought and maintained in the Fresno County Superior Court. 16.5 Construction. The final form of this Agreement is the result of the parties’ combined efforts. If anything in this agreement is found by a court of competent jurisdiction to be ambiguous, that ambiguity is not to be resolved by construing the terms of this Agreement against the either party. 16.6 Headings. The headings and section titles in this agreement are for convenience only and are not part of this Agreement. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 27 16.7 Severability. If anything in this agreement is found by a court of competent jurisdiction to be unlawful or otherwise unenforceable, the balance of this Agreement remains in effect, and the parties shall make best efforts to replace the unlawful or unenforceable part of this Agreement with terms to accomplish the parties’ original intent. 16.8 No Waiver. Payment, waiver, or discharge of any liability or obligation of the Contractor under this Agreement on any one or more occasions is not a waiver of performance of any continuing or other obligation, or of any breach or default, and does not prohibit, impair, or prejudice enforcement by the County of any obligation of the Contractor under this Agreement. 16.9 Entire Agreement. This Agreement, including its exhibits, is the entire agreement between the Contractor and the County with respect to the subject matter of this Agreement, and it supersedes all previous negotiations, proposals, commitments, writings, advertisements, publications, and understandings of any nature unless those things are expressly included in this Agreement. If there is any inconsistency between the terms of this Agreement without its exhibits and the terms of the exhibits, then the inconsistency will be resolved by giving precedence first to the terms of this Agreement without its exhibits, and then to the terms of the exhibits. 16.10 Third-Party Beneficiaries. This Agreement does not and is not intended to create any rights or obligations for any person or entity except for the parties. 16.11 Authorized Signatures. The Contractor represents and warrants to the County that: (A) The Contractor is duly authorized and empowered to sign and perform its obligations under this Agreement. (B) The individual signing this Agreement on behalf of the Contractor is duly authorized to do so and his or her signature on this Agreement will legally bind the Contractor to the terms of this Agreement. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 28 16.12 Counterparts. This Agreement may be signed in counterparts, each of which is an original, and all of which together constitute this Agreement. [SIGNATURE PAGE FOLLOWS] 1 The parties are signing this Agreement on the date stated in the introductory clause . 2 BROWN ARMSTRONG 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Eric H . Xin , Principal 4200 Truxton Avenue , Suite 300 Bakersfield , California 93309 For accounting use only: Fund : 0001 Subclass: 10000 Org: 2540 Account: 7295 COUNTY OF FRESNO Nathan Magsig , Chairman of the Board of Supervisors of the County of Fresno Attest: Bernice E. Seidel Clerk of the Board of Supervisors County of Fresno , State of California By:&~~~¥ Deputy 29 A-1 EXHIBIT A SELF-DEALING TRANSACTION DISCLOSURE FORM In order to conduct business with the County of Fresno (“County”), members of a contractor’s board of directors (“County Contractor”), must disclose any self-dealing transactions that they are a party to while providing goods, performing services, or both for the County. A self-dealing transaction is defined below: “A self-dealing transaction means a transaction to which the corporation is a party and in which one or more of its directors has a material financial interest” The definition above will be utilized for purposes of completing this disclosure form. INSTRUCTIONS (1) Enter board member’s name, job title (if applicable), and date this disclosure is being made. (2) Enter the board member’s company/agency name and address. (3) Describe in detail the nature of the self-dealing transaction that is being disclosed to the County. At a minimum, include a description of the following: a. The name of the agency/company with which the corporation has the transaction; and b. The nature of the material financial interest in the Corporation’s transaction that the board member has. (4) Describe in detail why the self-dealing transaction is appropriate based on applicable provisions of the Corporations Code. (5) Form must be signed by the board member that is involved in the self-dealing transaction described in Sections (3) and (4). A-2 (1) Company Board Member Information: Name: Date: Job Title: (2) Company/Agency Name and Address: (3) Disclosure (Please describe the nature of the self-dealing transaction you are a party to) (4) Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233 (a) (5) Authorized Signature Signature: Date: Providing Auditing & Accounting Services for Over 44 Years 3 XII. COST PROPOSAL TOTAL AUDIT AND ANCILLARY – COST SCHEDULE PART 2 Firm Name: Brown Armstrong Accountancy Corporation Name of Audit, Review or Other Service to be Provided Schedule Total Price County-wide CAFR 1 $ 54,100 Single Audit 2 32,000 Treasury Cash Count 3 3,200 OCJP/OES/CalEMA/CSA (BSCC) Grants and Fresno County Transportation Authority (Measure C) 4 14,000 Coalinga Southeast Regional Sites 5 3,500 Appropriation Limit (Proposition 111) 6 1,500 Treasury Compliance Audit 7 3,300 In-Home Supportive Service Public Authority 8 3,500 The Zoo Authority 9 2,800 Tobacco Funding Corporation 10 7,800 County Service Areas, Waterworks Districts, Maintenance Districts, Highway Lighting Districts, and Solid Waste Commissions 11 67,800 Community Corrections Partnership Executive Committee AUP 12 4,500 TOTAL $198,000 Exhibit B Page B-1 Providing Auditing & Accounting Services for Over 44 Years 4 XII.COST PROPOSAL AUDIT SERVICES - COST SCHEDULE PART 3 COUNTY-WIDE CAFR SCHEDULE 1 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 40 $ 230 $ 180 $ 7,200 Managers 100 180 120 12,000 Supervisory Staff 128 130 100 12,800 Staff 300 90 70 21,000 Other (Clerical): 22 70 50 1,100 Subtotal $ 54,100 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 54,100 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-2 Providing Auditing & Accounting Services for Over 44 Years 5 XII. COST PROPOSAL SINGLE AUDIT SCHEDULE 2 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 30 $ 230 $ 180 $ 5,400 Managers 50 180 120 6,000 Supervisory Staff 60 130 100 6,000 Staff 200 90 70 14,000 Other (Clerical): 12 70 50 600 Subtotal $ 32,000 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 32,000 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-3 Providing Auditing & Accounting Services for Over 44 Years 6 XII. COST PROPOSAL TREASURY CASH COUNT SCHEDULE 3 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 4 $ 230 $ 180 $ 720 Managers 4 180 120 480 Supervisory Staff 5 130 100 500 Staff 20 90 70 1,400 Other (Clerical): 2 70 50 100 Subtotal $ 3,200 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 3,200 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-4 Providing Auditing & Accounting Services for Over 44 Years 7 XII. COST PROPOSAL OCJP/OES/CalEMA/CSA (BSCC) GRANTS AND FRESNO COUNTY TRANSPORTATION AUTHORITY (MEASURE C) SCHEDULE 4 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 10 $ 230 $ 180 $ 1,800 Managers 20 180 120 2,400 Supervisory Staff 40 130 100 4,000 Staff 80 90 70 5,600 Other (Clerical): 4 70 50 200 Subtotal $ 14,000 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 14,000 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-5 Providing Auditing & Accounting Services for Over 44 Years 8 XII. COST PROPOSAL COALINGA SOUTHEAST REGIONAL SITES SCHEDULE 5 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 2 $ 230 $ 180 $ 360 Managers 6 180 120 720 Supervisory Staff 9 130 100 900 Staff 21 90 70 1,470 Other (Clerical): 1 70 50 50 Subtotal $ 3,500 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 3,500 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-6 Providing Auditing & Accounting Services for Over 44 Years 9 XII. COST PROPOSAL APPROPRIATIONS LIMIT (PROPOSITION 111) SCHEDULE 6 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Partners 1 $ 230 $ 180 $ 180 Managers 3 180 120 360 Supervisory Staff 3 130 100 300 Staff 8 90 70 560 Other (Clerical): 2 70 50 100 Subtotal $ 1,500 Out-of-pocket expenses: Meals and lodging Transportation - Other (specify): - Total: $ 1,500 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-7 Providing Auditing & Accounting Services for Over 44 Years 10 XII. COST PROPOSAL TREASURY COMPLIANCE AUDIT SCHEDULE 7 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 2 $ 230 $ 180 $ 360 Managers 4 180 120 480 Supervisory Staff 8 130 100 800 Staff 23 90 70 1,610 Other (Clerical): 1 70 50 50 Subtotal $ 3,300 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 3,300 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-8 Providing Auditing & Accounting Services for Over 44 Years 11 XII. COST PROPOSAL IN-HOME SUPPORTIVE SERVICE PUBLIC AUTHORITY SCHEDULE 8 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 2 $ 230 $ 180 $ 360 Managers 4 180 120 480 Supervisory Staff 13 130 100 1,300 Staff 18 90 70 1,260 Other (Clerical): 2 70 50 100 Subtotal $ 3,500 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 3,500 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-9 Providing Auditing & Accounting Services for Over 44 Years 12 XII. COST PROPOSAL THE ZOO AUTHORITY SCHEDULE 9 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 1 $ 230 $ 180 $ 180 Managers 2 180 120 240 Supervisory Staff 2 130 100 200 Staff 29 90 70 2,030 Other (Clerical): 3 70 50 150 Subtotal $ 2,800 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 2,800 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-10 Providing Auditing & Accounting Services for Over 44 Years 13 XII. COST PROPOSAL TOBACCO FUNDING CORPORTATION SCHEDULE 10 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 6 $ 230 $ 180 $ 1,080 Managers 11 180 120 1,320 Supervisory Staff 25 130 100 2,500 Staff 40 90 70 2,800 Other (Clerical): 2 70 50 100 Subtotal $ 7,800 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 7,800 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-11 Providing Auditing & Accounting Services for Over 44 Years 14 XII. COST PROPOSAL COUNTY SERVICE AREAS, WATERWORKS DISTRICTS, MAINTENANCE DISTRITCS, HIGHWAY LIGHTING DISTRICTS, AND SOLID WASTE COMMISSIONS SCHEDULE 11 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 50 $ 230 $ 180 $ 9,000 Managers 90 180 120 10,800 Supervisory Staff 220 130 100 22,000 Staff 360 90 70 25,200 Other (Clerical): 16 70 50 800 Subtotal $ 67,800 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 67,800 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-12 Providing Auditing & Accounting Services for Over 44 Years 15 XII. COST PROPOSAL COMMUINTY CORRECTIONS PARTNERSHIP EXECUTIVE COMMITTEE AUP SCHEDULE 12 Firm Name: Brown Armstrong Accountancy Corporation Hours Standard Hourly Rates Quoted Hourly Rates Total Price Partners 3 $ 230 $ 180 $ 540 Managers 8 180 120 960 Supervisory Staff 8 130 100 800 Staff 30 90 70 2,100 Other (Clerical): 2 70 50 100 Subtotal $ 4,500 Out-of-pocket expenses: Meals and lodging - Transportation - Other (specify): - Total: $ 4,500 Note: The rate quoted should not be presented as a general percentage of the standard rate or as a gross deduction from the total all-inclusive maximum price. Exhibit B Page B-13