Attachment 1Professional Auditing Services – Badawi & Associates
Page 1 of 6
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AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is made and entered into on May 9, 2017 by and between TOWN OF LOS
GATOS, a California municipal corporation, (“Town”) and Badawi & Associates, (“Consultant”),
whose address is 180 Grand Avenue, Suite 1500, Oakland CA. This Agreement is made with
reference to the following facts.
I. RECITALS
1.1 The Town desire to engage Consultant to provide professional auditing services.
1.2 The Consultant represents and affirms that it is willing to perform the desired work pursuant
to this Agreement.
1.3 Consultant warrants it possesses the distinct professional skills, qualifications, experience,
and resources necessary to timely perform the services described in this Agreement.
Consultant acknowledges Town has relied upon these warranties to retain Consultant.
II. AGREEMENTS
2.1 Scope of Services. Consultant shall provide services as described in that certain Technical
proposal for professional auditing services sent to the Town on March 31, 2017, which is
hereby incorporated by reference and attached as Exhibit A.
2.2 Term and Time of Performance. This contract will remain in effect from June 1, 2017 to
June 30, 2020. Consultant shall perform the services described in this agreement as
described in Exhibit A.
2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes,
ordinances, and regulations of governing federal, state and local laws. Consultant
represents and warrants to Town that it has all licenses, permits, qualifications and
approvals of whatsoever nature which are legally required for Consultant to practice its
profession. Consultant shall maintain a Town of Los Gatos business license pursuant to
Chapter 14 of the Code of the Town of Los Gatos.
2.4 Sole Responsibility. Consultant shall be responsible for employing or engaging all persons
necessary to perform the services under this Agreement.
2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all
reports and supportive data prepared by the Consultant under this Agreement are the
Town’s property and shall be delivered to the Town upon the completion of Consultant's
services or at the Town's written request. All reports, information, data, and exhibits
prepared or assembled by Consultant in connection with the performance of its services
pursuant to this Agreement are confidential until released by the Town to the public, and the
Consultant shall not make any of the these documents or information available to any
individual or organization not employed by the Consultant or the Town without the written
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consent of the Town before such release. The Town acknowledges that the reports to be
prepared by the Consultant pursuant to this Agreement are for the purpose of evaluating a
defined project, and Town's use of the information contained in the reports prepared by the
Consultant in connection with other projects shall be solely at Town's risk, unless
Consultant expressly consents to such use in writing. Town further agrees that it will not
appropriate any methodology or technique of Consultant which is and has been confirmed
in writing by Consultant to be a trade secret of Consultant.
2.6 Compensation. Compensation for Consultant's professional services for fiscal year ending
June 30, 2017 shall not exceed $32,015; for fiscal year ending June 30, 2018 sh all not
exceed $33,175; and for fiscal year ending June 30, 2019 shall not exceed $34,265,
inclusive of all costs, as described in that certain “Sealed Dollar Cost Bid for professional
auditing services” submitted to the Town on March 31, 2017, which is hereby incorporated
as Exhibit B. Payment shall be based upon Town approval of each task.
2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the
service and shall be accompanied by a detailed explanation of the work performed by whom
at what rate and on what date. Also, plans, specifications, documents or other pertinent
materials shall be submitted for Town review, even if only in partial or draft form.
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be
addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
2.8 Availability of Records. Consultant shall maintain the records supporting this billing for
not less than three years following completion of the work under this Agreement.
Consultant shall make these records available to authorized personnel of the Town at the
Consultant's offices during business hours upon written request of the Town.
2.9 Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to the Consultant. No portion of these services shall be assigned or
subcontracted without the written consent of the Town.
2.10 Independent Contractor. It is understood that the Consultant, in the performance of the
work and services agreed to be performed, shall act as and be an independent contractor and
not an agent or employee of the Town. As an independent contractor he/she shall not obtain
any rights to retirement benefits or other benefits which accrue to Town employee(s). With
prior written consent, the Consultant may perform some obligations under this Agreement
by subcontracting, but may not delegate ultimate responsibility for performance or assign or
transfer interests under this Agreement. Consultant agrees to testify in any litigation brought
regarding the subject of the work to be performed under this Agreement. Consultant shall
be compensated for its costs and expenses in preparing for, traveling to, and testifying in
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such matters at its then current hourly rates of compensation, unless such litigation is
brought by Consultant or is based on allegations of Consultant's negligent performance or
wrongdoing.
2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely
to the Town. The Consultant has and shall not obtain any holding or interest within the
Town of Los Gatos. Consultant has no business holdings or agreements with any individual
member of the Staff or management of the Town or its representatives nor shall it enter into
any such holdings or agreements. In addition, Consultant warrants that it does not presently
and shall not acquire any direct or indirect interest adverse to thos e of the Town in the
subject of this Agreement, and it shall immediately disassociate itself from such an interest,
should it discover it has done so and shall, at the Town's sole discretion, divest itself of such
interest. Consultant shall not knowingly and shall take reasonable steps to ensure that it
does not employ a person having such an interest in this performance of this Agreement. If
after employment of a person, Consultant discovers it has employed a person with a direct
or indirect interest that would conflict with its performance of this Agreement, Consultant
shall promptly notify Town of this employment relationship, and shall, at the Town's sole
discretion, sever any such employment relationship.
2.12 Equal Employment Opportunity. Consultant warrants that it is an equal opportunity
employer and shall comply with applicable regulations governing equal employment
opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate
against persons employed or seeking employment with them on the basis of age, sex, color,
race, marital status, sexual orientation, ancestry, physical or mental disability, national
origin, religion, or medical condition, unless based upon a bona fide occupational
qualification pursuant to the California Fair Employment & Housing Act.
III. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
i. Consultant agrees to have and maintain, for the duration of the contract,
General Liability insurance policies insuring him/her and his/her firm to an
amount not less than: one million dollars ($1,000,000) combined single limit
per occurrence for bodily injury, personal injury and property damage.
ii. Consultant agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring him/her and his/her staff to
an amount not less than one million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
iii. Consultant shall provide to the Town all certificates of insurance, with
original endorsements effecting coverage. Consultant agrees that all
certificates and endorsements are to be received and approved by the Town
before work commences.
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iv. Consultant agrees to have and maintain, for the duration of the contract,
professional liability insurance in amounts not less than $1,000,000 which is
sufficient to insure Consultant for professional errors or omissions in the
performance of the particular scope of work under this agreement.
General Liability:
i. The Town, its officers, officials, employees and volunteers are to be covered
as insured as respects: liability arising out of activities performed by or on
behalf of the Consultant; products and completed operations of Consultant,
premises owned or used by the Consultant. This requirement does not apply
to the professional liability insurance required for professional errors and
omissions.
ii. The Consultant's insurance coverage shall be primary insurance as respects
the Town, its officers, officials, employees and volunteers. Any insurance or
self-insurances maintained by the Town, its officers, officials, employees or
volunteers shall be excess of the Consultant's insurance and shall not
contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the Town, its officers, officials, employees or
volunteers.
iv. The Consultant's insurance shall apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days' prior written notice by certified mail, return receipt requested, has
been given to the Town. Current certification of such insurance shall be kept on file at all
times during the term of this agreement with the Town Clerk.
3.3 Workers’ Compensation. In addition to these policies, Consultant shall have and maintain
Workers' Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement. Further,
Consultant shall ensure that all subcontractors employed by Consultant provide the required
Workers' Compensation insurance for their respective employees.
3.4 Indemnification. The Consultant shall save, keep, hold harmless and indemnify and defend
the Town its officers, agent, employees and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up because
of damages to property or personal injury received by reason of, or in the course of
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performing work which may be occasioned by a willful or negligent act or omissions of the
Consultant, or any of the Consultant's officers, employees, or agents or any sub consultant.
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of a
subsequent breach of the same or any other provision of this Agreement.
4.2 Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
4.3 Termination of Agreement. The Town and the Consultant shall have the right to terminate
this agreement with or without cause by giving not less than fifteen days (15) written notice
of termination. In the event of termination, the Consultant shall deliver to the Town all
plans, files, documents, reports, performed to date by the Consultant. In the event of such
termination, Town shall pay Consultant an amount that bears the same ratio to the
maximum contract price as the work delivered to the Town bears to completed services
contemplated under this Agreement, unless such termination is made for cause, in which
event, compensation, if any, shall be adjusted in light of the particular facts and
circumstances involved in such termination.
4.4 Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Consultant.
4.5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be
entitled to reasonable attorney's fees, including costs of appeal.
4.6 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid, and addressed to:
Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Badawi & Associates
Attn: Ahmed Badawi, CPA
180 Grand Avenue, Suite 1500
Oakland, CA 94612
or personally delivered to Consultant to such address or such other address as
Consultant designates in writing to Town.
4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
terms and conditions of this Agreement in respect of the Products or Services and any
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attachments to this Agreement, then the terms and conditions of this Agreement shall
prevail over attachments or other writings.
4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Consultant. No terms,
conditions, understandings or agreements purporting to modify or vary this Agreement,
unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement .
Town of Los Gatos by:
Laurel Prevetti, Town Manager
Recommended by:
Stephen Conway, Finance Director
Consultant, by:
Ahmed Badawi, CPA
Approved as to Form:
Robert Schultz, Town Attorney
Town of
Los Gatos
For Professional Auditing Seryices for the
Town of Los Gafos
For the fiscal years ending June 30, 2017 to 2019 with the option to
extend for two subseguenf one-year terms
March 31, 2017
TECHNICAL PROPOSAL
(unnwt&nssocrntts
Contact Person:
Ahmed Badawi, CPA
Badawi & Associates
Certifi ed Public Accountants
180 Grand Avenue, Suite 1500
Oakland, CA 94612
Phone: (510) 768-824
Fax: (510) 7684249
E-mail: abadawi@b-acoa.com
Exhibit A
Exhibit A
Town of Los Gatos
Letter of Transmittal
Partner, Supervisory and Staff Qualifications and Experience
Similar Engagements with other Government Entities
Understanding of Services to be Provided
Specific Audit Approach
- Objectives for Our Services
- Audit Approach
- Technical Approach
- Audit Schedule
Discussion of Relevant Accounting lssues
Conclusion
Appendix A - References
Appendix B - Proposer Warranties
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Table of Contents
lndependence
Firm Qualifications and Experience
- lnsurance
- License to Practice in California
- Firm Qualifications
- Technical Approach
- Firm Experience
- Additional Activities
- Client Training Seminar
- CSMFO Training
- GASB 68 Firm Developed Tools and Assistance
- Quality Control Review
- Federal or State Desk Review
- Disciplinary Action
- Lost Clients and Pending Legislation
- Conflict of lnterest
Exhibit A
Exhibit A
^
(BADAWI&ASSOCIATES
March 9, 2017
Mr. Stephen Conway
Director of Finance
Town of Los Gatos
110 East Main Street
Los Gatos, CA 95030
Dear Mr. Conway,
Badawi & Associates (B&A), Certified Public Accountants (the "Firm') is pleased to have the opportunity to respond
to your request for a proposal to provide external audit services and to submit its qualifications lo perform an
independent audit of the financial statements of the Town of Los Gatos (the 'Town') for the fiscal years ending June
30, 2017 to 2019 with option to extend for two subsequent one-year terms. The ob.iective of our audits is to issue
opinions regarding the fairness of presenlation of the financial position of the Town in accordance with generally
accepted accounting principles. These audits are to be performed in accordance with generally accepted auditing
standards, lhe standards set forth for financial audits in the General Accounting Office's (GAO) Govemment
Auditing Standads, the provisions of the federal Single Audit Act of 1984, as amended in 1996), and the Uniform
Guidance, Audits of States, Local Govemments and Non-Profit Organizations, Uniform Administrative
Requirements, as well as any other applicable federal, state, local or programmatic audit requirements.
We will also perform the following as part of our engagement:
We will also apply limited audit procedures to Management's Discussion and Analysis (MD&A) and required
supplemenlary information. ln addition, we will prepare the management letter conlaining comments and
recommendations regarding our review and evaluation of the systems of Internal control and accounting
procedures.
This proposal will highlight the background of the partners and staff assigned to the engagement, summarize our
experience in the governmental area, and describe our approach to audiling the Town.
This proposal demonstrates our ability to render the quality examinalion and to perform the necessary accounting
and auditing services requested by the Toryn on a timely basis.
As a partner of the Firm, I will be the primary contact for negotiation of the conlract. Additionally, I have been
authorized to legally bind the Firm. You may contacl me at the following address and phone number:
Mr. Ahmed Badawi, CPA
Badawi & Associates
Certifi ed Public Accountants
180 Grand Ave. Suite 1500
Oakland, CA 94612
Telephone: (510)768-82214
cpa.com
Address:
E-mail abadawirO
Phone:
@
CERTIFIED I O..]I.,ITANTS
. Single Audit (if required)o GANN Limit. Audit Pension Trust Fund (optional). Annual State Controller's Reports (optional)
Far:
Exhibit A
We are committed to performing the required work, completing the audit, and issuing the necessary
auditors' reports prior to the Town's published time frames and commit to you that we will Perform the
work within the time frames required.
We believe we are the best qualified to perform the audit because our audit staff includes individuals
well versed in municipal auditing and reporting requirements. We have performed auditing and
consulting engagements for numerous cities throughout California. We will be responsive to the
needs of the Town, we understand the Town's operational environment, and pledge to you our
complete commitment to providing a quality product that meets the Town's requirements.
The approach to lhe audit has been designed to meet the audit requirements of the various
aulhorities with the least disruption to the Town's office operations. The foundation of the audit
approach is based on communication coupled with a strong knowledge of Town operations -and
deiailed planning at the initial stages of the audit. Open communication lines with all parties of the
Engagement Team and Town Management and staff throughout the engagement eliminate
"suiprises". lnitial planning and proper assignment of duties to experienced personnel provide for an
effective and efficient audit process. Consequently, inefficiencies and disruptions are kept to a
minimum. ln addition, we perform almost half of the audit tasks during the interim phase to minimize
any unforeseen delays during the year-end phase and to ensure a smooth and timely audit process.
The Firm maintains liability insurance coverage for professional liability, Workers' Compensation,
Comprehensive General Liability and Auto as part of our comprehensive insurance policy.
The Firm is an Equal Opportunity employer and complies with all Federal and State hiring
requirements. The Firm also supports Affirmalive Action philosophies and works hard to Provide
disadvantaged groups with opportunities for self enhancement.
This proposal is a firm and irrevocable offer for 180 days.
we are confident that you will find our organization offers the required expertise, technical
knowledge, and business understanding to perform an audit of the Torn. Our past experience
provides us with a thorough understanding of the needs and requirements of the Town, as well as the
technical knowledge to perform such services in accordance with the accounting and auditing
guidelines as published by the various authoritative entities.
We welcome your inquiries and look torward to further discussions with you.
Sincerely,
Mr. Stephen Conway
Director of Finance
Town of Los Gatos
Page 2
At-*iB"."07=--
Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants
Exhibit A
Town of Los Gatos Technical Proposal
Independence lndependence
Firm
Qualifications
and
Experience
The Firm is independent of the Town of Los Gatos as defined by the GAO'S Standards for Audit of
Govemmental Oryanizations, Programs, Activities and Functions, and the AICPA and Califomia
State Society of Certified Public Accounlants as promulgated in various auditing and professional
standards.
lnsurance
The Firm maintains professional liability insurance and other coverage as part of our
comprehensive insurance policy. Upon selection as Town's independent auditor, the Firm and our
insurance provider will provide a certificale of insurance to Town which shows the minimum
requirements identified by Town have been met.
License to e in California
The Firm and all key professional staff assigned to Town's audit are properly licensed to practice
as Certified Public Accountants in the State of California and comply with GAO Govemment
Auditing Standards.
The Firm is registered with the california state Board of Accountancy. lts state number is
coR6823.
The Fim has met all required State and locat laws, rules, and regulations.
Fi.m Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 20 years of
experience working with state and local government wlth a special focus on cities. prior to
founding B&A, Mr. Badawi was a partner with several local and national firms, where he headed
their government practice in Northern california. Mr. Badawi founded Badawi & Associates to
serve the fast-paced needs of california's local govemments. The goal is to build a proactive,
client-focused culture from the ground up and to eliminate the entrenched bureaucratic cutture and
intrinsic limitations of the big audit flrms.
Located in oakland, cA, the Firm serves a variety of cities throughout california as well as
conducting financial related services for numerous special districts and authorities. Names and
phone numbers of several of our cunent and past clients and other references are provided for
your inquiries. .We encourage you lo contact these individuals to obtain information on the quality
of the audit and the ability of the audit staff.
Our Oakland office will be the Engagement Office assigned to the Town.
ln addition to specific city financial statements, the Firm members have also audited numerous
redevelopment agencies, public financing authorities, hospitals, housing authorities, transportation
authorities, special districts, waler districts, OCJp grants, self-insurance pools, joint power
authorities and has also performed numerous compliance audits in accordance with the Single
Audit Act, childcare regulations, TOT regulations, AQMD regulations, franchise requirements, RiA
co-mpliance, and other special projects. Additionally, the Firm has significant experience in bond
offerings, post closure landfill costs, and recent changes to redevllopment agency reporting
requirements.
The Engagement Partner assigned to the Town, Mr. Ahmed Badawi. Mr. Badawi has over 20 years
of government audit experience. He is a member of various governmental committees, has aitively
participated in the development of accounting and audil guidelines for the govemmental sectoi,
and is an instructor for the Califomia Society of Municipal Finance Officers_
3BADAWI&ASSOCIATES
Exhibit A
Technical Proposal
(.0 . BADAWI&ASSOCIATES
Town of Los Gatos
The professional staffs assigned to the Engagement are qualifled and experienced. Each
individual of the Engagement Team has several years of experience and has conducted or
participaled in numerous municipal audits of various sizes. Their understanding of governmental
operations and the various aulhoritative guidelines will provide the where-with-all to perform the
audit in an efficient and effective manner with minimal disruPtion to the Town's finance department.
Technical Aoproach
The approach to the audit has been designed to meet the audit requirements of the various
authorities with the least disruption to the Town's operations. The foundation of the audit approach
is based on communication coupled with a strong knowledge of Town operations and detailed
planning at the initial stages of the audit. open communication lines with all parties of the'Engagehent Team and Town Management and staff throughout the engagement eliminate
"surprises". lnitial planning and proper assignment of duties to experienced personnel provide for
an effective and efficient -audit process. consequently, inefficiencies, disruptions, and lack of
understanding are kept to a minimum.
The audit approach will consist ot four phases:
lnitial Planning Meeting:
The Engagement Partner and Manager will meet wilh Town Management to discuss the
audit approach, identify specific needs of Town Management, and familiarize themselves
with Town policies and practices.
lnterim:
The Engagement Team members including the Engagement Team Partner will perform the
internal- control revievys, test transactions, evaluate compliance with single Audit Act
requirements, identify potential audit issues that need to be addressed, perform limited
conflrmation procedures, and develop a clear understanding between the.Engagement
Team and Town Management of lhe year end audit responsibilities and assignments. ln
addition, we strive toLomplete many of the year-end audit tasks during the interim
phase to ensure a smoother audit Process. We will work with the Town on providing
i li"t of tho"" tasks that we will target to complete during interim and work with the
Town on how to complete them to minimize the amount of effort and time needed at
year-end which in tuin will assist the Town in meeting its goal ot issuing the CAFR
by the desired deadline.
Year end:
The Engagement Team members including the Engagement Team Partner will conduct
validatio--n procedures on general ledger account balances, complete confirmation
procedures, perform analyticil procedures on revenue and expenditures, perform search
ior unrecorded liabilities, complete compliance work on Federal Assistance, and wrap up
audit field work.
Reporting:' Audit-ois reports for all Town reporting entities and compliance requirements will be
finalized along with single Audit Reports and Management Letter comments. The Partner
and Managei will be available to make presentations to the Town Council and/or
designated bodies.
4
(
Exhibit A
Town of Los Gatos Technical Proposal
Firm ence
The Firm is located in Oakland, and provides a full range of accounting services to governmental
agencies throughout California, including audit, tax and accounting. The Firm's professional staff
members provide the financial background and specific experience to meet the Town's operational
needs. Additionally, this situation provides the Town with an auditing firm that has depth in
capabilities to address any financial issue the Town may need assistance with, and the quality
audit approach that you expect.
Our Oakland office will be the Engagement Office assigned to the Town.
Firm policy requires that the Engagemenl Partner, during the firsl year of the engagement, be
actively involved in the daily fieldwork. This means to the Town that Mr. Badawi will actually be on-
site during the audit coordinating the audit process, supervising the audit staff, gaining a hands-on
understanding of rown processes, and benerrting the Town w'rth his broad municipai experience.
We have found that this effort benefits the Town and the Firm through developing a thorough
knowledge of lhe Town's practices and issues and establishing a close working relitionship with
the Town's Management. Additionally, conlinuity of audit personnel is assured because of the
hands on involvement of the Parlner.
We are committed to providing appropriate and related experience, personal involvement, and a
broad business perspective to produce a quality end product within the time frames required.
The Firm provides financial and compliance auditing services to govemmental agencies throughout
california. we are a governmental agency auditing firm and our professional siaff memberslave
been performing these services for many years. As a result, we have performed financial and
compliance audils on most, if not all, types of governmental agencies and operations including:
. Cities. Redevelopment
Agencies. Financing
Authorities. Housing
Authorities. Special Districts. Water Districts
. Waste
Management
Authorities and
Operations. Pension Plans. Child Care
Operationso Joint Power
Authorities
. Investment
Activities. Landfills. Enlerprise Funds. Airports. Transpo,tation
Operations. Federal and Slate
Grants
Consequently, Firm personnel are well qualified to perform the services expected by the Town
5
a BADAWI&ASSOCIAIES
Additional Activities
we offer a full range of accounting and linance services to the governmenlal sector. These
services include:. Financial audits . Operational reviews. Compliance audits . Technical guidance on existing and. Tax advice upcoming accounting issues. Development of financial and . Training seminars
accounting policies and procedures . pension/profit-sharing plans. lnvestment review and compliance . performance auditsevaluation . Business consulting
Exhibit A
Town of Los Gatos Technical Proposal
Client Traininq Seminar
The Firm hosts an annual update on recent technical accounting and finance issues affecting the
governmental area. This all day session reviews new and anticipated pronouncements from
GASB, discusses future issues under consideration by GASB, reviews accounting treatment of
various transactions where issues may arise, and provides a general overview of state and federal
compliance issues. All of our clients are invited to atlend, tree of charge. The one day session
qualifies for CPE under the rules of the State Board of Accountancy and is held in locations
throughout the Bay Area.
CSMFO Traininq
The Firm provides a one-day training session entitled "lntroduction to Governmental Accounting' to
members of CSMFO. Firm personnel developed the class materials and teach the sessions.
Approximately 1o sessions are held annually at various locations throughout the state.. The.Firm
piovides these sessions for only the cost of materials to CSMFO in keeping with its philosophy to
support the industry in which it serves.
Oualitv Control Review
According to Government Audiling Standards, firms who perform audits under the Yellow Book are
required Io have a peer review once every three years. We received a report with a rating of Pass
with no deficiencies which we attached for your review.
GASB 68 Firm Developed Tools and Assistance
The Firm has developed tools to assist our clients with GASB 68 implementation or preparation of
joumal entries for the calPERS' Plans. ln addition to providing our clients with these tools and
instructions on how to use them, we are available to answer any questions on how to prepare and
complete your GASB 68 journal enlries.
6
BADAWI&ASSOCIAITSI
l Exhibit A
Town of Los Gatos Technical Proposal
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and the Peer Revicrv Commitree of thc Califomia Society of CpAs
We.have_reviescd thc system ofquality control for tlte occounting and auditing practice ofBada* i & Associites (he fimr) in effcct for rhe year ended Febiary 29, 2OtB. Ou, p..,
revierr sas conducted in accordcnce sith rhe Smnrlards for performing and Rcponin! onPeer-Reriervs esrablished by the pecr Revie* Doard of the Americor ristitute oicenineaPulllc 4c-coul!ilf . As pan of our peer rcview, \t considered reviess by regularoryentities,-if aprliqtble, in determining the nature and exrenr ofour procc{urcs. -
ThJ firm isresponsible for dcsigning a sysrcm of quarity controt and comprying rrirh ir ro providc thefirm rvith reasonrble- assurance ofperforming and reporting in coniormity rvith applicablepmfessional standards in arr marerial rcspccts. our iespor,lit itity rr ro cxprcss an opinionon the dr,sigu of rhe system of quality control and the firm's conrpliance rherervith based
on our revierv. The nature, objectives, scope, limitations of, and the procedures pcrformed
iu o Systcm Rcview are describcd in thc standards at \rrrv.aicoa.ors/pniummary.
As
^requircd
b-y the standards, engagemcnts s€lccted for revierv included engogements
performed undcr Coternment Arulitittg Standards.
ln our opinion, the systcm ofquatity control lor thc accounting and auditing pructicc ofBadarvi & Associares in effecr for the lear ended February 291 2016, has been suitablt,
designed and complied *-ith to provide rhe firm rvith reasonabre assurance or perr"rming
and reponing in conformity *irh appticabre prol'essionar standards in ar materiir resp<.crs]tfrms can recei'e a rating of pass. lxrss nith de.ficienq(ics) otfait. Badawi & Associates
has received a peer review mting ofpors.
G4LOr,-,,-, ccp
Onla.ia. Calilbmi.r
May 20. 2016
a rl!1E ' BADAWI&ASSOCIATES
cPAly,E"$,sn_ Cnir.trnylt }{mrin!
7
4120 Concours
Suile 100
Ortarlo, CA 91764
9@3489990
&n.644J696
ne.x 909948-9633
E d@grdqci€.@
**.ptd4.qEm
ffilirorr
lt Exhibit A
Town of Los Gatos Technical Proposal
B&A have policies and procedures to ensure it hires only qualified people, that it properly
supervises them and provides professional training, lhat it advances them to responsibilities they
are capabte of handling, and that it provides them with necessary technical resources. All members
of B&A are very familiar with the stringent quality control standards established by the AICPA.
The Firm does !q! have a conflicl of interest with any officials or employees of the. Town of- Los
Gatos. lf a conflict of interest were to become known, the firm would immediately divulge such facts
to the Town.
The Firm is a member of the AICPA Government Audit Quality Center.
The Firm is a member of the AICPA Private Companies Practice Section.
Federal or State Desk Reviews
The Firm has had no negative federal or state reviews in the past three (3) years
Discipli rv Action
There has not been any state or federal disciplinary actions taken or pending against the Firm nor
any findings to report.
Lost Clients and Pendinq Litioations:
The Firm has not experienced termination of any contracts before completion, and. has not
experienced any lawsJits or legal actions that have been resolved or are cunently pending in the
prior live years.
Conflict lnterest:
I!;IE BADAWI&ASSOCIATESI
tl
8
Exhibit A
Town of Los Gatos
The Engagemenl Team will normally consist of seven individuals who provide a broad business
perspective and significant experience in governmental auditing. This team will provide access to a
wide range of technical capabilities which will provide the Town r,vith not only the technical support
necessary to perform the audit, but also the broad business background to interpret findings and
observations to offer efFective solutions to issues, and the personal involvement ofthe Engagement
and Compliance Partners of the Firm.
The Engagement Team will be led by Ahmed Badawi, CpA. Mr. Badawi's background includes
over twenty years of municipal auditing and accounling experience with a special focus on cities.
He is the instructor of the csMFo "lntroduction to Governmental Accounling" training classes- Mr.
Badawi is a member of the Government Accounting and Auditing Committee, the Accounting
Principles and Auditing Standards Committee and the State Technology Committee of the
califomia society of certified Public Accountants. He has participated in the audits of numerous
city, county and special district governments, as well as non-profit entities. His diversified
background offers the technical qualities required of the governmental and non-profit areas and the
necessary wherewithal to properly evaluale the entire accounting process, develop opportunilies to
improve the accounting process, and to offer practical business recommendations. Mr. Badawi is
licensed as a CPA with the ability to attest an opinion on an audit.
The second member of the Engagement Team is Mitesh Desai, CpA. Mr. Desai's background
includes ten years of experience in municipal auditing with a special focus on cities. Mr. Deiai has
participated in the audits of numerous govemmental agencies, assisted in their efforts to publish
their CAFRS in compliance with GASB 34, and a votunteer member of the GFOA Special Review
committee. Mr. Desai has also achieved the Advanced single Audit ceftilicate offered by the
AICPA. He will serve as the Audit Manager.
' BADAWI&ASSOCIATTS(
rl
Technical Proposal
Partner,
Supervisory,
and Staff
Qualifications
and
Experiences
Eng:gamo0l Padrcr
Ahmed Badawi
CPA
Engalorncnt Qraltty
CPAif sp.ci.lhl3
Audlt iran.ger
Mit sh De$i
CPA
Audll Senlor
Monbs Singhai
CPA
Proreslonal
Audit Stai
Prota33loaal
Audit Srrf
Exhibit A
Town of Los Gatos Technical Proposal
The third member of the Engagement Team is Monica Singhai, CPA. Mrs. Singhai's background
includes over fourleen years of experience in municipal auditing experience. She has participated
in the audits of numerous govemmental agencies and assisted in their efforts to publish their
financial statemenls in compliance with various regulations. Mrs. Singhai will be the Senior of this
engagement.
The fourth member of the Engagement Team is Robert Wucher. Mr. Wucher has 30 years of
experience in the field of lnformation Technology (lT) at lhe senior and executive management
level. He has worked extensively with government agencies, private organlzations and public
companies. lndustry experience includes the public sector, banking, manufacturing, lnternet, health
care and noFfor-profit organizations.
The frfth member of the Engagement Team is Jessie Powell, CPA. Ms. Powell background
includes thirty five years of accounting and auditing experience. She has an extensive background
in audit and accounting engagements for small businesses and specializing in governmental
entities and nogor-profit olganizations. She also performs second parlner reviews and
engagemenl quality conkol reviews for several CPA firms throughout California and is an active
pe6r reviewer for the CalCpA Peer Review Program. She has participated in lhe audits of
numerous district, and city governments, as well as non-profit entities. Her diversified background
offers the technical qualities required of the governmental and non-Profit areas and lhe necessary
wherewithal to properly evaluate the entire accounting process, develop opPortunities to improve
the accounting process, and to offer practical business recommendations. Ms. Powell will serve as
an Engagement Ouality Reviewer of this engagement.
Each member of the Engagemenl Team participates in conlinuing education programs offered by
the AICPA and california state society of certified Public Accountants, and each has met the
continuing education requirements for municipalities. ln addition, the firm offers at least 60 hours of
in-house CPE annually focused mainly on municipal audils.
Professiona I Development:
The Firm maintains a comprehensive training program targeted at appropriate professional staff
levels. lt utilizes in-house developed educational programs, AICPA and Calffornia CPA Foundation
educational programs, and on-the-job training.
The Firm's annual training schedule which otficially begins in April for all professional staff and
administrative statf includes comprehensive in-house training sessions on such toPics as:
. Review of principles of accounting and financial reporting for state and
local governments.. Review of govemmental fund types and account groups.
. Review of newly issued generally accepted auditing standards and GAO
auditing standards.. Review of lnternal Control evaluation approaches including CoSO
principles.. Updates on recent governmental accounting and reporting guidelines.
. Review of Single Audit requirements and apProaches.. Review offinancial audit approaches.. Overview of audit and intemal control work paper techniques.. Review of GASB reporting requirements.. Review of cunent issues facing the governmenlal community.
10
BADAWI&ASSOCIATES
Exhibit A
Town of Los Gatos Technical Proposal
During the year, professional staff members are sent to various educational sessions sponsored by
the AICPA and Califomia Slale Society of CPAS, as considered appropriate for the level and need
of the individual. These classes include, among others:
. Governmental Financial Reporting Standards and Practices.. Yellow Book: Government Auditing Standards.. FinancialAccountingStandards: ComprehensiveReview.. Single Audit.. Governmenlal Audiling & Accounting Update.. GovernmentalAccountingPrinciples.. Comprehensive Review of Generally Accepted AudiUng Standards
The result of the Firm's training program is the production of a highly educated and competent
municipal audit group capable of performing an efficient and effective audil for the Town.
The Team members will continue their professional development efforts.
Staff Retention and Continuitv:
The Firm's policy on providing service to our clients includes a commitment to maintaining
continuity of audit personnel. we cannot guarantee that our staff will remain with the Firm.
However, to encourage our slaff to remain with us, we pay competitive wage rates; offer
promolional opportunities; provide state-of-the-ad equipment and excellent working ionditions; andoffer various benefits, such as retirement plans, medical plans, profit shiring programs,
educalional benefits, and other such benefits. Additionally, we will guarantee that any staff
member assigned to this engagement will return to the Town in subsequent years if he or she is
still with the Firm. we can also guarantee that the partner will be involved in future years.
continuity of audit staff is of prime concern to us and because of the hands-on involvement bf the
partner; we can assure you lhat future years' audits will be conducted in an efficient and effective
manner with qualified and experienced professionals.
The Firm is an Equal Opportunity employer and complies with all Federal and State hiring
requirements. The Firm also supports Atfirmative Action philosophies and works hard to provide
disadvantaged groups with opporlunities for self enhancement.
Resumes of each member of the Engagement Team are as follows.
, BADAWT&AS5OCIATTS(
It
11
Exhibit A
Town of Los Gatos
Resumes of Eoqaqement Team
Ahmed Badawi, Certified Public Accountant - Engagement Partner
Lenoth of Career. Twenty years' experience in municipal auditing and accounting with a special focus on cities
. Certifed Public Accountant for the State of Califomia.
Professional Experience
. Partial listing ofclienE served:
9.rYic.. Prcv l.d
Singl.
Et lllg{ne
Dt.5rn
U.rm CO
Conlr! @tt Coun,
Sp.o.l osticb ar oo'er
Poir ol ned.,ood C4,
M3dn MuniiPl wabr Dsti,
co.sBirb Fll! FtDbqioo Dlllit
a*n.da corily \l\ibb. DBlicl
C..{,rn€. Co.mwlly SolYi.3r tr.tid
Ealr 8.y R.Cio.d Prt Drtid
MotopoeEn T6nrportation colnmltlio{|
Sod' B.:rd. Syd.tn Atntciv
$rnid€* Coirf,ly Chdcaru
w.d Cdnt U/b.bsAer Ditit
arn.& corty u.d.d c.rrbr
Fsrn, H,u,!'C.r€ Ndroli
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
. Has performed numerous financial audits, Single Audits, Transportaton Development Ac1 audits,
housing audib, electrical utility audits, RDA audits, PFA audits, and Trust Fund audits, and has
prepared numerous cAFRs.
EdElie!. BS Degree in Accounting from the University of Alexandria, Egypt.
Prof*sional Activities. lnstruc,to( CSMFO'S 'lntroduction to Governmental Accounting" truining class.
. Memb€r, CALCPA Govemment Accounting and Auditing Committee. Member, American lnstitut€ of Certified Public AccountanB.. Member, Califomia Society of Certified Public Accountants.. Memb€r, Govemment Finance Offcers Association.. Member, Calibmia Society of Municipal Finance Officers.. Chair, Audit Committee, San Francisco SPCA, a CA nonprofrt organization
Continuino Education
Has rnet the cunent CPE educational requirements to perform audits on govemmental agencies
BADAWI&ASSOCIATTS
12
Technical Proposal
6
Exhibit A
Technical Proposal
Mitesh De€ai, Certitied Public Accountant- Protessional Audit Manager
Lenoth of Carser
. Ten years' elperience in municipal auditing with a specialrocus on cities.. Certified Public Accountant for the State of Califomia.
Professlonal Exoerience
. Has participated in several fnancial audits, Single Audits, RDA audits, PFA audits, Transportation
Development Acl audits, and housing audits
Sryic.. Prodd.d
Sin9l.RDA Entrrpri3.
OG.r
Cni€6:
Arniodl X X XADsry xBrstdxxxx
B€.k€l6f,XXXXx
Bu€n8PdtXXXX
Fo6t.City X X X X XFrdio.lXXXXX
E€3tPabAIoXXXx
L€nto.l GIqa X XNa6kxxxx
M€rioprt x x xOdddeXXXXPir.t4xxxxxPbcsavle,XXxx
R€d,oodcltyXXXX
Rio yat. x x x x
Safl aleo X X X x XSuasrle XTulod( X X xUnidtcny X X Xvavilaxxxxx
Yorfilva€ X X X
Cdrri!6:
Cdtacod.XXXXXX
clam Xs.t cnz x x x x x x
OllEc
Alrn dacorrytfi€.D.tE X X
Abm€& Cotny Medbal C6nte. X X XCeo Vaasy Sa{ry txsul.r X
CocmrEs CdnrrrrV S€.virs Di$fr X
Goldsl VC€y |bdtl C€rt€G X X
Mah M'ri$d Vt'5€. Dltll x
lr!b{ cdrty Y\ib36 d€rDl$il x x
Cd'ts. Cda Ctld oev€bgr|c r Progans X X
Sl'lBlaE Cdr*y ChldcarB X X
Educetion
o BS D€ree in Business Economics with an emphasis in AccorJnling ftom University of Calibmia,
Santa Barbara
Profsasloml AclMtes
' Memb€r, American lnstitub of Cenif€d Public Accountants.' Member, Califomia Society of Certifed Public Accountanb.* Volunte€r iiiember, GFOA Special Revietv Committee
Condnulno Educauon
. Various municipal accountirE cours€s offered by tle Calibmia Soci€ty of CPAS and local uni\rersities
including:
- Govemmental Financial Repotting Standards and Praclices
- Yellow Book Go\remment Auditing SEndards
- Municipal Accounting
- Single Audit. Has met the curent CPE educalional requirements to perbm audits on go\remmental agencies.
{n$'lE . BADAWI&ASSOCIATES
13
Town of Los Gatos
Exhibit A
Town of Los Gatos Technical Proposal
Monica Singhai, Certified Public Accountant - Prclessional Audit Senior
Lenolh of Career. Fourteen years' experience in auditing with special focus on municipalities.
. One year experience in accounting related position.
. Certifed Public Accountant for lhe State of California.
Profossional Experience
. Has participated in several financial audits, Single Audib, RDA audits and PFA audits
Sedlc.! Povided
Financial
Audit
Single RDA
Audit
Ent rpris€
Fund
citi$:
City of B€rt6ley
Cily ot Easl Palo tlto
City of tLnlo Pafi
Cify of R.drood Ciry
Sp€dd Diltict
Artrl€da County Firc Di*id
A.dr.d. Co0nY Li,v l"5lely
Bulb€nk $nitary oi$i.r
Lions Gat Cofirunily S.rvic. Oistit
Lo3 Medsnos Corrxf,lily tledtl Car! Di.ti.l
O.ldandALnEda Colinty Cols.ffi Arhority
S6ool Usti4
Bey.ho€ Eleitenbry Sdool Didtid
Bctnot-R.dmod ShoL3 Sdod oistil
Bd!&ne S6ool Oslict
J.f.rsoi ElnEni.ry Sdlool Di.til
La tlonda-Pescadcrc lJnifi.d Sdlool Di.tid
Pa.i6ca S.rpol Diltid
R Y.nsvood City Sdrool Dirtid
Rodiood Cily Sdlool Oistid
S.n tilat cFosllr City Sciool tlatid
Chaatar sdloob:
Odrtd Miltay lmftnc Col€o. Prep.dory A..denty
Saaram6nto Vaiay chertd School
lrlbC SacrsrEnb CoIc!. Prsp Chdi r Sd|ool
FiBt 5:
Fird 5 ALrneda Couny
Fild 5lryo C,ol{iy
Fig 5 t&tin Counv
Frlr 5 tilonBEy Couny
Fir.{ 5 Sent Cruz County
Othars:
Asmeda County tlourine cdnmunity oarrdoprnont Ae.ncy
,rlu€da Coonty Rede\doPnlrlt Ag6rE,
AanE& County Sucaassor ACanq
CiV ot O.lbnd - M6er. c
City o{ O.lhl|d - likaqrt Y
City of O.fbnd - Clild C.re ,nd oe\r.lopnErn Prc$..n
City of OSand . \,r.ldfl! Pratr ixl Aaa.sstLd Di$ii
x
x
x
x
x
x
X
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Education. Bachelor of Science in Accounting ftom Jabalpur University, lndia
Professio I Activities
' Member, Califomia Society of Certified Public Accountants.
' Member, lnstitute of Chartered Accountants of lndia.
Continuino Education
. Various local govemments and not ior profit accounting courses offered by the Califomia Society of
CPAS and AICPA including:
- Govemmental Financial Reporting Standards and Practices
- Yellow Book: Govemment Auditing Standards
- Single Audit
Has met the cunent CPE educ€tional requirements to pertorm audiE on govemmental agencies.
BADAWI&ASSOCIATES
14
x
(
Exhibit A
Town of Los Gatos Technical Proposal
Robert Wucher - lnformation Technology Specialist
Lenoth of Carser. Thirty years' experience in iniormation technology (lT). Worked exlensively with govemment agencies, private organizations and public companies. lndustry exp€rience includes public sector, banking, manuiacturing, intemet, healthcare, and not-for
profit organizations
Areas of Exoertisg. Systems Auditing and Controls Review (SEC AU-314, SA$109, SAS-94). Sarbanes-Oxley, Section 404 lT Compliance Consulting and Auditing. Joumal Entry Analysis in Support of SAS-99 using IDEA by Caseware. SSAEI6 (SOC 1,2 & 3), Type l& ll Reporting (Formerty SAS-70). ERP/MRP System Reviews and Workflow Analysis. Software as a Service (SaaS) Cloud Computing Technotogies. lnternational and Multinational Company lTAudit Elpertise. Forensic Data Analysis and Litigation Support in Support of Fraud Auditing. Systems Selection and Request-for-Proposal (RFp) Development. Systems Programming and Data Conversion. Systems Failure Analysis and Quality lmprovement. E-Commerce and EOI Systems. lnformation Technology Strategic planning
. System Process/Procedures Developmentand lmplementation. Oisaster Recovery and Business Continuity planning
Publications. Author, The Top Five Tips Every Technology Executive Needs to Know About Sarbanes_Oxley,
Published 2007, Aspatore Books. Author, Wnnang Legal Strategies for Technology & E-Business. An Overview of lT Controls Under
Sarbanes-Oxley Published 2005, Aspatore Books
Presentations. lT Security Trends. Data Privacy and Cloud Computing. lT Trends and Red Flag Rule. lT Controls for NFP Organizations
Education. B.S. degree in Business Administration, Finance, Old Dominion University, Norfolk, VA.
Professional and Civic Associations
. Member, lnformation Systems Audit and ControlAssociation (IASCA). MAS-90 Accounting Application Suite Quatified tnsta er, SAGE Systems. Former Board Member, Pets are Wonderful Support (PAWS), San Francisco, CA
. BADAWI&ASSOCIATIS
ll
15I
Exhibit A
Technical Proposal
Jessie Powell, GPA - Engagement Quality Reviewer
Lenoth of Career
. Thirty-five years of accounting and auditing experience.
. Extensive background in audit and accounting engagemenB for small businesses and specializes in
govemmenlal entities and not-for-profit organizations
. Performs second partner reviews and engagement quality control reviews
. Active peer reviewer for the CaICPA Peer Review Program
. Participates in the audits of numerous district, and city govemments, as well as non-profit entilies.
E lccals. B.S, Business Administration, Califomia State University, Long Beach
Professional Activities
' Board Member, Kimberly-Shirk Association
' Board Member, YMCA of the East Valley
' Member, American lnstitute of Certified Public Accountants
' Member, Califomia Society of Certified Public Accountants
' Member, CaICPA Govemmental Accounting & Auditing Committee
' Committee Member, CaICPA Accounting Principles and Auditing Standards Committee
' Member. Redlands Chapter of the American Association of University Women
' Former Member, CaICPA Peer Review Committee
' Former team captain, AICPA Peer Review Program
' Former President, lnland Empire Chapter of CaICPA
' Former President, YMCA of the East Valley
' Former President, Soroptimist lntemational of Redlands
' Fomer Treasurer, Kimberly-Shifi Association
' Former Treasurer, CaICPA Group lnsuran@ Trust
' Former Treasurer, Redlands Community Music Association
' Former Treasurer, Family SeMce Association ol Redland
' Former Treasurer, Soroptimist lntemational of Redlands
' Former Committee Chair. CaICPA Accrunting Principles and Auditjng Standards Committee
' Former Member, Califomia State Board of Accountancy Administrative Committee
' Former Lecturer on Govemmental and Non-Profit Accounting at university level
BADAWI&ASSOCIATIS
It
16
Town of Los Gatos
Exhibit A
Town of Los Gatos Technical Proposal
Similar
Engagements
with Other
Governmental
Entities
The table on the following page is a partial listing of our clients similar to the Town, and illustrates
the many different types of components involved in each audit engagement that present very
difficult and complex auditing and accounting challenges.
,r
lndicates cities with population over 50,000
lndicates cities with governmental revenues over 100 million and population over 50,000
**
r!!!]E , BADAWIOIASSOCHTES 17
Exhibit A
Town of Los Gatos Technical Proposal
{51O)96'r-73OOhd.k .dia!cl.bqbr.v.c..u.
Fnarcd Snbe thn.lEr
(55O) 7a(l7o71
d..t1DoecD...lr, @dcrtv.do
(6so)522-7rOa
dcorb.tr@ctvolsanmteo.ors
dh.trrrd@ctYolv.4ra..6m
sup*bho A@@.tet
(510)6715352
abo@rrnincrY.qs
2005 (925)779-6r 35
oiErch.nr(Aci.anti*h,c.,us
Itr. Ro.ado Rodrieue
RRodrbuez@re.loDtLo.o
550
l\,b. So.i. \/\tFd.l@*
rt&t6. ol Adrninrdtv.
(510)57&4604
!u3a.r oo.t lockana,Ld9
Fn@. & Adrnltf.tiv€
(sl o)s2a-573o
(70?)374-5451 Ed. 1tla
rash.r6@Er.r;vbta.e.u!
20 t2 550
( 76O)25t51 I 5
cprolhro@btlle.a.org
2013 \714t$2-371?
shuvn@bu€.ao.rLcofr
(5:!O)252-5i OO
ll@ockrociyof.u..nva..o.g
{650)6s:r3r 22
botw a@cltyd.p5.6!
(sso)259-243
ksp..y@sr.n-.s.@.us
2013 350 (gog)Ts5-gaoi .n 231
birhn.d{icivolc*E{-n.t
2015 ( 7O7)944-AA5t
(6r 9)4254403
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It;lE BADAWI&ASSOCIATES{
It
18
20oa
Exhibit A
Technical Proposal
The table below lists all s al district e ements
Sp.ci.l tlstrict
Cli.nt
Slnc.
Eng.g.ir.nl
CAFR
GFOA Singl.
Au.lit
EnL.prls.
txrrrbu Ek
tlstrict
2415 350
i/t.lmMberg
Fnance ilbnager/Treasurer
(916)685-3556
irBberg(Degw d.ofg
X
2010
ills. MlVung Hrstehik
(415)945-1410
npusteh<!nBrim{ ater.of g
x
Co'IIruniry
S€rvices tls8ict
2008 350
Badaw i
Generali/brl3ger
(916)40S7150
irrranE€@yourcsd.c.m
Follutbn Control 2016 2AO
Badaw i
iA. Joyc€ Gtuggre
Adfihblrawe Slewbes
(831)-718-80r9
iqidrre@nbard.org
NA
2006 2AO
ir. Rajesh S€$/ al
i/hMger of Fnance & Adnln.
(650)30G4r 50
rsew aX@r€dw oodcityporLcorn
NA x
C€ntalCounty 150
Badaw a (650) 37r740E
jcooke@hasborouEh.n€t
2016 120
tlr€ctor of Eush6ss Sbrvaces
6934 Soquel riv6
Aptos, CA 95,003
(831)-64S6690
l.l/A
r*.tE BADAWI&ASSOCIATES 19
Town of Los Gatos
350
2012
Bedaw i
Exhibit A
Town of Los Gatos Technical Proposal
what Our Clients Sav About Us
ln addition to the references provided in Appendix A, we have also provided contact information for
all our clients on the previous page if you would like to speak to any of them about their experience
with us. These are some of the things our clients have said about us.
Sung Hyun
Finance Director
City of Buena Park
Jim Malbery
Finance Manager
Floin Resource Conservation Disticv
Elk Grove Water District
"t would recommend Badawi & Associales to anyone seekhg professional and
kn owledgeable a udit sery ices"
"This was the Distict's first year with Badawi & Associates and I found the entire to
team to be responsive, thorough, detailed and Professional. Not only was this a tirst-
year audit, bui we also implernerted GASB 68 and compteted a maior rcstatement of-the District's capita, Assets. with all of lhose moving piec*, this was by far the
smoothest first year audit that I have ever participated in."
BADAWI&ASSOCIATES
20
Exhibit A
Town of Los Gatos Technical Proposal
Understanding
of Services to be
Ptovided
The Town desires an audit of the financial records for the Town and an expression of an opinion in
accordance with generally accepted accounting principles on the fairness of presentation of
financial statements for the fiscal years ending June 30, 2017 to 2019 with option to extend for two
subsequent one-year terms.
The Firm will:
Express an opinion on the fair presentation of Is basic financial statement which includes
but is not limited to the financial statemenls of governmental aclivities, the business-type
activities, each major fund and all aggregate remaining fund information in conformity wilh
generally accepted accounting principles in the United States of America.
Express an opinion on the fair presentation of its combining and individual non-major and
fiduciary fund financial statements and schedules in conformity with generally aicepted
accounting principles. The Firm will provide an 'in-relation{o' reporl on the supporting
schedules contained in the comprehensive annual financial report based on the auditing
procedures applied during the audit of the basic financial stalements and schedules.
Provide an 'in-relation{o" report on the schedule of federal financial assistance based on
the auditing procedures applied during lhe audit of the financial statements.
Perform the audit in accordance with generally accepled auditing slandards accepted in
the United States of America, applicable to the rinancial audit contained in the Government
Auditing Standards issued by the Comptroller Generat of the United Stales and the
provisions of the Uniform Guidance, Audits of States, Local Govemments and Non-profit
Organizalions.
Perform limited procedures on supplementary information required by the Government
Accounting Standards Board.
lssue the following reports, following the completion of the audit of the fiscal year,s financial
statements:
> lndependent Auditor's Report on Financial Statements and Schedule of
Expenditure of Federal awards> Town's Comprehensive Annual Financial Report> Report on lnternal Control over Financial Reporting and on Compliance and Olher
Matters Based on an Audit of Financial Stalements performed in Accordance with
Government Auditing Standards> Management Letter comments on lnternal Controls! lndependent Auditor's Repon on Compliance with Requirements Applicable to
Each Major Program and lnternal Control over Compliance in Accordance with
the Uniform Guidance> Schedule offindings and questioned costs! Auditor's Communication with Those Charged wilh Govemance> Single Audit (f requiret> GANN Limit Report> Audil Report for Pension Trusl Fund (optional)> Annual State Controller's Reports (optional)
. Provide special assistance to the Town as needed.o fetafn all working papers and reports at the audit firm's expense for a minimum of 7 years.
ln addition, make working papers available to the To^rn and/or any government agency as
appropriate.
a . BADAWI&ASSOCIATESt-t
21
Exhibit A
Town of Los Gatos Technical Proposal
Specific Audit
Approach
Should any conditions be discovered requiring corrective action, the Firm will provide a detailed
description of the findings and recommended actions as lo lheir resolution.
The Firm will submit a report to the Town Council and management detailing auditofs responsibility
under generally accepted auditing standards, significant accounting policies, management
judgments and accounting statements, significant audit adrustments, other infomation in
documents containlng audited financial statements, disagreements with managemenl,
managemenl consuttations with other accountants, maior issues discussed with management prior
to retantion, difficulties encountered during the audit, and any significant deflciencies or material
weaknesses found during the audit. Non-material instances of noncompliance will be reported in a
separate management lefter, if appropriate, along with any other observations or recommendations
determined lo be informative to Town management.
The Firm will be available to provide advice and counsel regarding significant matters during the
year.
The Firm's Partner and staff welcome the opportunity to make presentations to the Town Council
and will be ready to respond to questions from the Council and cilizens of the Town.
Obiectives of Our ices
The basic objective of our audit of the Town is to con duct an examination of the flnancial
Audit Aporoach
The specific audit approa
requirements of the Town,
with minimal disruptions to
statements in accordance with generally accepted auditing standards and to express our oplnlon
on the fairness of presentation of such financial statements in conformity with generally accepted
accounting principles.
Additionally, we believe that another real value of our audit lies in meeting other obiectives at no
additional tost. The following are other objectives of our services that have important benefits to
the Town:
. To offer substantive observations and recommendations relating to
accounting and operating control policies and procedures.. To identify opportunities for operating efficiencies and isolate candidate
activities for cost reduction opportunities.. To perform a professional audit in an efficient and effective way to minimize
disruption to the office operalions.. To offer ongoing advisory services to assist in the running of the operation
and implementation of improved operating procedures.
The engagemenl will be conducted within the framework of the Firm's quality control program
which in;ludes the use of audit programs, careful planning, use of mmputerized audit software and
internal control evaluation & documentation software, and objeclive review procedures. On-site
staff will use Firm supplied portable computers and printers
ch has been designed to efficiently and effectively address the audit
to perform the audit of the Town's financial records in a timely manner
office operations, and to meet the Town's timeline.
The audit will be conducted in accordance with:
1) Generally accepted auditing standards established by the AICPA.
zj Ttre staniards contained in Government Auditing Slandards issued by lhe GAO
3) Provisions of the Single Audit Act and the Uniform Guidance.
4) Requirements issued by the California Slate Controller's office.
5) Other requirements as required.
iEi *ooowrGrAssocrArESttl
22
Exhibit A
Town of Los Gatos Technical Proposal
We will conduct the necessary audit steps to perform
. Planning of lhe engagement.. Evaluation of the existing internal control environment to determine degree of
risk of material misstatement.. Determination of degree of compliance with laws, regulations, grant
provisions, and Town approved policies.. Assessment of potential fraudulent issues.. Validation of account balances.. Verification of reasonableness of management estimates.
Techn ical Aooroach
'1. Plannino. U nderstandinq and Co mmunication:
2.
we use an industry specific audit approach tailored to governmenlal entities. our governmental
audit approach addresses the special risks and circumstances of local governmenls. As a result,
the audit is conducted efficienlly and effectively with minimal disruption to your statf.
The core of our govemmental technical audit approach can be summarized as follows:
J
Based on our previous audit experience, using the budget, organizational charts, manuals
and other financial information systems and our knowledge of how governments work, wewill obtain an insight lo the specific concerns and sensitivities of the Town. Our
understanding is updated continuously through our year-round contact and communicationefforts. We will agree on common audit objectives and expeclations wilh management
before audit work begins and, throughout the audit, will meet regularly with manage;ent to
discuss audit issues and to gather feedback.
ln-Deoth Review of Svstems and Controls:
We have developed diagnostic reviews whlch enable us to evaluate your systems and
controls, and to provide management with constructive feedback. Combined with our
knowledge of the Town and understanding and experience with the Town,s accounting
software, our control review will form the basis of our audit risk assessment. We will utilizi
the COSO approach in our evaluation of the Town's internal processes to identify potential
control deficiencies. ln future years, we will update our understanding through similar
procedures.
Risk-Based Customized Testinq Prooram:
Our audit approach is tailored to governmental applications. We will use audit programs
specifically designed to address lhe operalional environment of governmental entities. Our
approach will identify potential control risks and lhe opportunities for risk of material
misstatements and fraud. We will evaluate the various risk assessments and identify the
potential risks relating to the:
. Balance Sheets/ Statement of Net Posltion. Slatement of Revenues and Expenditures / Statement of Activities. Presentation. Disclosure
Our audit procedures will then be developed to address these risk areas.
@ uooo*r&essocrerrs
Exhibit A
Town of Los Gatos Technical Proposal
4. Expanded lnterim Fieldwork:
6. Sample Size and Sam Dlinq T h n io ues:
Our audit approach will include sampling activities.
assurance to be derived from a particular test will dictate
7
We use analytical procedu
industry background are
appropriate experience and
Timeliness and audit etficiency is enhanced by performing extensive interim work. Partners,
managers and senior staff work with Town staff lo identify and resolve potential audit issues
early. Accordingly, the amount of audit work to perform al year end is minimized. Because
our audit staff is familiar with the operations before year-end fieldwork begins, disruPtion of
accounting statf is minimized.
@]E:[fensition:
Our testing program focuses on audit risks identified by our understanding of the Town's
operations. We will work with the accounting staff to identify the most effective ways to
address our objectives. Communication between the members of the audit engagement
team and Town staff will be fluid and continuous.
Population size and the level of
the sample size. We use sampling
I
in our audit approach to compliment skilled judgment and knowledge of the particular
situation. Our sample size will range normally from 25 to 60 items.
Automated Svstems:
we witt evatrr*e controls over the lT functions to assess control risk. we intend to test
controls for purposes of reliance. Our review procedures will evaluate controls over:
. Security Managemento Logical and PhysicalAccess. ConfigurationManagement. Segregation of Duties. Contingency Planning
ln addition, we will review controls over:. lnput, processing, outPut, master data. Applicationinterface. Data management system interface
Our lnformation Technology Specialists Group will evaluate the lT operating control
environment.
Analvtical ures:
res in several aspects of our audit. Extensive knowledge and
required for effective analytics, and our staff possesses the
knowledge for the Town lo benefit from these procedures.
Aporoach to be Taken in Determininq Laws and Reoulations Subiect to Audit Test
Work:
WEEntinuously refer to specific regulations, compliance supplements, state guidelines and
contracts currently in force. We perform the procedures required related to laws and
regulations, using inquiries, observations and sampling techniques. Some of the laws and
r{ulations that we believe may be applicable to lhe Town are the requirements of the
Cilifornia Public Utilities Commission, Single Audit Act and other applicable laws and
regulations, including the California Government Code, provisions of aPPlicable Grant
guidelines, California Constitution GANN Limit requirements, requirements of local
measures, Child Care Program compliance requirements, etc.
, BADAWI&ASSOCIATIS
5.
9.
I -l
24
Exhibit A
Town of Los Gatos Technical Proposal
10. Report Format:
11
We will meet with Town Management to review report formals. Any report format changes
will be made in conjunction with approval from the Town's management.
Work Plans:
The detailed work plans will be designed to efficiently and effectively address the audit
requirements of the Town in accordance with generally accepted auditing standards, to
perform lhe audit of the Town's financial records in a timely manner with minimal disruptions
to office operations, and to meet the Town's timeline.
12. Adiustino Jo urnal Entries:
13.
We will discuss and explain proposed audit adjusting entries with the Town's designated
Finance Departmenl personnel prior to recording. Audit adjusting entries will be providad in a
format showing the lowest level of posting detail needed for data entry on the Town's general
ledger system.
Listino of Schedules and Tables (anticioated to be prepared bv the Town):
Based on preliminary inquiries made with management and Town staff and review of
documents, we will tailor a list of schedules, tables, and other reconciliations required for the
audit. We will take into account as much as possible reconciliations already prepared by the
Town for day to day operations and reporting, as well as any reports that are syitem
generated to limit the need for additional Town staff hours.
The following is a listing of significant reconcillations that we would normally expect the Town
to provide to us in assisting us in conducting our fieldwork.
. Trial Balance. CAFR and Account Roll Up Schedule. Budget to Actual Reports. Bank Reconciliations. Listing of manually prepared journal
entries posted. Summary of lnvestments held by the
Town. Capital Asset Schedules. Long Term Debt Schedules. Debt amortization schedules &
Calculations of defened amounts. Calculations of any debt covenants
amounts or percentages
. Schedule of Operating Leases. Schedule ot E&enditures of Federal
Awards. Analysis of Oefened lnllows of
Resources an Defened Outilows of
Resources
Reconciliation of Receivables to subsidiary
ledgers
Calculations for estimate of allowance for
uncollectible accounts
Loans Receivable Schedules
Remnciliation of Signifi canl Revenue
Accounb
Utility billing Registers and Fee schedules
Compensaled Absences and Early
Retirement Obligation Schedules and
Copies of Relat€d Policies
Claims Payable schedules
Pension and OPEB Roll Fonvard &
Supporting Schedules
GASB 54 Fund Balance Roll FoMard
Schedule
lnterfund Transaction Schedules
{. BADAWI&ASSOCIAIES
lt Exhibit A
Town of Los Gatos Technical Proposal
14. Computer Software:
The flrm maintains a variety of software packages in the audit and financial statement
compilation process, which include MS Office (Word, Excel, etc.), Prosystem fx Engagement,
PPC Checkpoint and Checkpoint Tools, and Single Audit SMART Tool. Our l.T. Specialist
also has the ability to run reports using IDEA (data analysis software).
Our audit software enables us to link our audit trial balance to the flnancial statements, for
efficient financial statement compilation. lt also allows us to create various analytical reports
easily (e.g. year to year comparisons, budget to aclual comparisons, trend analysis, ratio
analysis, etc.).
Our research tools are always kept up to date to ensure compliance with accounting and
auditing standards, and are also a resource for us to provide guidance to our clients.
We also use Prosystem electronic pottal, which allows our clients to easily upload
requested audit s;hedules and testing selections. The portal is very helpful in the
audit process as it reduces duplicated audit requests, and allows our engagement
team to teview uploaded schedules prior to beginning audit fieldwork.
tlFE BADAWI&ASSOCIATES(
It
26
Exhibit A
Town of Los Gatos Technical Proposal
2017
Period Audit Tasks
June
June
' Review and obtain copies ot key tlork pape6 of prior audit firm.
' Entrance conlerence r,,/ith Town Management to discuss audit approach, timing,
assistance, and issues
' Review and evaluate the Town 's accounting and financial reporting. prepare an
overall memo of rccommendations, potertial issues, and suggestions for
improvements.
' Prepare overall memo lo Tov,n confirming audit procedures, timing, and
assistance. ,'
' Prepare detailed audit lvork plan and audit programs, audit budget aM stafiing
schedule, and list of schedules to be prepared by To\,m staff, and provide it lo
Tow) Management.
- lntemal Control Eveluetion
BADAWI&ASSOCIATES 27
Audit Schedule
Award ot Contract
lnterim Audit Procedures:
- Planning and Adminisaration
' Me€ting wilh key Finance Division personnel.
' Obtain and doqJment urderstandirE of key intemal control systems through walk-
throughs, intervierrG ol staff. and review of supporting documentation:
General ledger system.
Budgeting system.
Revenue, utility billing, accounts receivable. and cash colleclions.
PurchasirE, expenditures, accounts payable, and cash disbursements.
Payroll.
Federal Financial Assistance.
Other systems.
' ldentiry control risks.
' Evaluate lT conlrol e nironment. /
' Perform testing ot the iriemal cont d system and evaluate the efiecliveness of
the Tou,n 's systems. Selecl large dollar and random samples of transactions in
key operating systems. Sample size to meet required level for determined
degree ot risk. Review supporting documeniation of selecled transactions,
evaluate adequacy of suppod and approvals, and conclude on degree of
adherence to accuracy and compliance with Towll policies.
' Conduct fraud assessmenl procedures.,
' Assess d€gree of risk for material misstatement.r',-
' Provide to the Tou,n 's management a memo concemirlg managemenl letter
poinb and identi, issues, it any. 7
ll Exhibit A
Town of Los Gatos Technical Proposal
2017
Pedod Audit Tasks
June . Othet Tasks
September -
Oclobet
@ uooo*r&essoctnrrs
' Reviery minutes ol Tom CourKjl meetirEs ard oher key committees.
' Preliminary testing,vedry and validate account balances by reviewing supporting
doq.rmentation induding invoic6, voucheG, council resolutions, minutes, aM olher
doclmenB, as required.
' Preliminary Single Audit and othet comdiance testing
' CoordiMte wih To.t n staff and Fepare ot all appropriate confirmation requests including
Bank accollnb.
lnvestnent pool accounts.
Accounts receivable.
Federal grants.
Revenue iom govemmental agencjes.
Bond and oth€r debb.
Pension dafl.
Attomey letters.
Ohers, as required.
' Prcvide Town wih audit dan and lisl ol ye3r end audit schedules
' Hold progress conference witll To'vn Management
' Hold exit conierence wih Town lr,tanagemsnt
- Final Field eto*
' Entrance confurence wiut Town Management.
' Follow-up on all outslanding confrmations.
Verit and validate account balances by reviewirE supporting doclmentration including
invoices, vouchers, council resolutions, minutes, and other documents' as required.
' Perform analytical review of revenue and ependitures. Determine reason frcr material
differences between budget and actual.
' Perform a sealch for unrecorded liabilities by revielving disbursements subsequent to June
30, testjng tenns of contractual oHigations, and interviewing To\i/n staff.
' Perform revjew of subsequent events by diso.lssions wih To,tn Management and update
all minutes of Town Council and key committees.
September -
Odober
. Single Audit ComPliaoce
' Entrance confurence wilh To/n Manag€mert
' Obtain Federal Financial Assistance SctPdule.
' Determine grants to be considered as major programs indudirE dusteE
' Perrorm audit tests of major grant programs and compliarrc€ with Federal Law aM
Regulations.
' Revia grant documerts. selecl suficient number ol transadions to t6t for comdiancs ol
Federal Requirements.
' Coordinate SirEle Audit elbrb wiul the Financial Audit efforts.
' Communicate fndings to Town Management
' ofier compliance
28
Exhibit A
Town of Los Gatos Technical Proposal
Audit Schedule. Continued
Oclober -
Noveflber - Audit Re?oti
' PEpare drat of the Tori's finanaid $aefieds
' Prepare drafl of Single Audit Repo(s conceming inlemd control slrudue,
co.ndiance with laws and regulalions, and adminisleiing of federd fnandd
a$islance plograms- (if required)
' Pepare oth€r reports as rcquired.
' Provide drds of reporls to Town Management for review.
' Prcvide revised fnd drafis d dl requi.ed repois to the To\Nn fo. approvd
December - Flnal Audt Re!..t's, Flnanara, St terr€ars, Singre A uatn and Othet Repo s ddteered
|,l!'lE , BADAWI&ASSOCIATES
!
2017
Period AuditTasks
Exhibit A
Town of Los Gatos Technical Proposal
Discussion of
Relevant
Accounting
lssues
ldentification of Anticipate d Potential Audit Problems
We do not anticipate that there will be any audit problems at the Town. However, the following are
some areas that we will carefully investigate and monitor during our audit procedures:
2017
2019
2020
2018
statement 74 - Financial Reporting for Postemployment Benefit Plans other Than Pension
Plans
Statement 77 - Tax Abatement Disclosures
statement 78 - Pensions Provided through certain Multiple-Employer Defined Benefil Pension
Plans
statement 80 - Blending Requirements for certain component units - An Amendment of
GASB Statement No. 14
Statement 82 - Pension lssues, an amendment of GASB Stalements No. 67, No 68, and No'
73
statement 75 - Accounting and Financial Reporting for Postemployment Benefits Other Than
Pension
Statement 81 - lrrevocable Splil-lnterest Agreements
Statement 85 - Omnibus 2017
Statement 83 - Certain Asset Retirement Obligations
lIBl *ooo*r&nssoctnr.sE
30
r Financial Reporting:o Review and evaluate thal the Town's Annual Financial Reports are in compliance with
current reporting and disclosures requirements issued by the GASB and GFOA.
o Review Annual Financial Reports for financial reporting conformance awards issued by
CSMFO and GFOA.o Review and evaluate degree of compliance with the various GASBS in effect.
o Review degree of compliance with infrastructure obligations and regulatory provisions.
o lnternal Control Structure:o Review and evaluate the Town's inlernal control functions and ascertain compliance with
proper intemal control philosoPhies.
o iteview computer system processes and controls and evaluaie adequacy of the control
environment.
several new GASB pronouncements will become effective over the time period of.this proposal. As
such, specific atteniion will be provided to determine the proper implementation oJ th9:9 n9w
pronouncements. A list of known new pronouncements with implementation dates that fall within this
proposal period are as follows:
Statement 84 - Fiduciary Activities
Exhibit A
Town of Los Gatos Technical Proposal
Conclusion A client relationship with the Town will be of great value to our Firm and we welcome the
opportunity to develop a long{erm relationship with the Town. We are committed to:
Rendering the highest standard of service.
Developing a long{erm working relationship dedicated to meeting the needs ofthe Town.
Assisting the To\/vn in operational issues.
Producing a quality end-product.
we have the lechnical qualifications and experience to provide the level of service desired and
expected by the Town and stand ready to provide our knowledge and experience for the benefit of
your organizalion.
We would like to express our appreciation to the Town and to its Staff for allowing us the
opportunity to submil a proposal lo perform professional auditing services. we are available, at
your convenience, lo discuss any aspects of our proposal.
Thank you for allowing us to present our Firm lo you.
BADAWI&ASSOCIATIS(
IL
3'1
Exhibit A
Technical Proposal
Appendix A References
1) City of Berkeley. Scope of Work: Comprehensive Annual Financial Repott, Gann Limit, SAS1i4, Measure B
(Alameda County), Vehide Registration Fee Audit (Alameda County), Due Diligence Revie',6 ior
the RDA Successor Agency. Contrac1Amountt188,000. Engagement Parhar Ahmed Badawi. Principal Contact:
Mr. Henry Oyekanmi
Finance Direclor
(51 0)981-7300
hovekanmi@ci.berkelev.ca.us
2) City of Newark. scope of Work: Comprehensive Annual Financial Report, Single Audit, Gann Limit, SAS114,
Utilii Users Tax, vehicle Registration Fee Audit (Alameda County), Measure B (Alameda
Countyl, Transportation Oevelopment Act, Newark Betterment Corporation Audit, Newark
Better;ent Corporation 990 Tax Retum, Due Diligence ReMews for the RDA Successor Agency
. Contract Amount $55,000. Engagement Parber: Ahmed Badawi
. Address: 37101 Newark Blvd. Newark, CA 94560
. Principal Contact:
Mrs. Susie Woodstock
Director of Administrative Services
Phone: (510)57rc04
Fax: (510)578-4358
susie.woodstock@newark.oro
3) City of San Mateo
. Scope of work: Comprehensive Annual Financlal Report, Gann Limit, SAS114, Measure
A (San Mateo County), Due Diligence Reviews for lhe RDA Successor Agency
. Contracl Amount: $60,000. Engagement Partner: Ahmed Badawi
. Address. 330 W 2Oh Avenue, San Mateo, CA 9t1403
. Principal Contact:
Mr. Drew Corbett
Director of Finance
Phone: (650)522-7102
4) City of East Palo Alto' . -
Scope of Work: Comprehensive Annual Financial Report, Single Audit Gann Limit' SAS114.
Measure C, Measure A Report (San Mateo County),. Contract Amount $60,000. Engagement Partner. Ahmed Badawi. Address: 2415 University Avenue, East Palo Alto, CA 94303
. Principal Contact:
Mrs. Brenda Olwin
Finance Director
Phone: (650) 853-3122
bolwin@citvofepa.oro
@ uooot t&nssocterts
Town of Los Gatos
Exhibit A
Town of Los Gatos Technical Proposal
5) City of Buena Park. Scope of Work: Comprehensive Annual Financial Report, Single Audit, Gann Limit, SAS 1.14,
Buena Part Foundation. Contract Amount $30,735. Engagement Partner Ahmed Badawi. Address: 6650 Beach Boulevard, l{ Floor, Buena Park, CA 90622. Principal Contact:
Mr. Sung Hyun
Finance Director
Phone: (7'14)562-3713
shvun@buenapark.com
6) City of Calimesa. Scope ofwork: Basic Financial Statements, Gann Limit, SAS 114. Contracl Amount: $25,462. Engagement Partner:Ahmed Badawi. Address: 908 Park A\€nue, Calimesa, CA 92320. Principal Contact
Ms. Bonnie Johnson
City Manager
Phone: (909)795.980'l
biohnson@cityofcalimesa. net
7) City of Barstow. Scope of Work: Comprehensive Annual Financial Report, Single Audit, Gann Limit. SAS 1,14,
Barstow Fir€ Protedion District, Odessa Water District. Contract Amount $71,152. Engagement Partner: Ahmed Badawi. Address: 220 E. Mountain Mew Street, Ste. A, Barstow, CA g23i.l. Principal Contact
Mrs. Cindy Prothro
Finance Director
Phone: (760)25t5115
cDrothro(Obarstowca oro
' BADAWI&AS5OCIATES{
l- | I
33
Exhibit A
Technical Proposal
Appendix B PROPOSER WARRANTIES
The proposer warrants that it can and will provide and make available, at a minimum,
all of the services and deliverables set forth in this RFP.
The proposer warrants that it will not delegate or subcontract its fesPonsibilities under
an agreement without the prior written permission of the Town.
The proposer warrarts that all information provided by it in connection with this
proposal is true and accurate.
The proposer warrants that it is willing and able to obtain .rn erors and omissions
insurance policy providing a prudent amount of coverage for the willful or negligent
acts or omissions of any officers, employees, or agents in coniunction with the services
to be provided. Coverage limits shall be $2,000,000 or more Per occurrence, without
reduction for claims paid during the policy period. The carrier should be duly insured
and authorized to issue similar insurance policies for this nature in the State of
Califomia.
ALJB"+--
Priated I!a!qe: Ahmed Badawi
Title: President
Firm: Badawi & Associates
Date: March3"I,2077
aD BADAWI&ASSOCIATES
34
Town of Los Gatos
tl Exhibit A
Town of
Los Gatos
For Professional Auditing Services for the
Town of Los Gafos
For the fiscal years ending June 30, 2017 to 2019 with the
option to extend for fuvo subseguenf one-year terms.
March 31, 2017
SEALED DOLLAR COST BID
. sADnwr&AssocrATrs
@:
Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
180 Grand Avenue, Suite 1500
Oakland, CA 94612
Phone: (510) 768-824
Fax: (510) 768€249
E-mail: abadawi@b-acpa.com
Exhibit B
Exhibit B
Town of Los Gatos Sealed Dollar Cost Bid
The undersigned declares that he or she has carefully examined the Request for Proposal document
and is thoroughly familiar with its contents and is authorized to represent the proposing firm; and
hereby agrees to perform the specified work for the cost quoted below in full.
Firm Name: Badawi & Associates
Firm Address 180 Grand A\€nue, Suite 15OO
Oakland, CA 94612
Contact Name:
Contact Title:
Contact Phone
Contact E-mail
Ahmed Badawi
President
(s'to) 7644244
Signature of Authorized Representative
Ar"_JB*,"!=--
1
Signature:
Print Name
Tifle:
Date:
Schedule of All-lnclusive Maximum Price bv Report
Optiona I Yea rs
All-lnclush,e Maximum Price
by Rsporl
Town Ardif
Single Ardit
CAFR Preparalion
Gann limit
iihnagement LetEr
Total Requesled Se^ices
Optional Se^,icss:
StaE Contollers Report
Ardit of Pension Trust Fund'
Total All SorMce3
June 30,
2017
$ 24,040 $
2,420
2,690
395
325
26,115 $
2,940
1,745
475
390
26,1 15
2,940
1,745
475
390
June 30,
2018
June 30,
2019
25,590 $
2,730
1,640
440
360
26,115 $
2,940
1,7 45
475
390
29,870 30,760 31,665 31,665 31,665
2,145 2,415 2,600 2,600 2,600
$ 32,01s $ 33,175 $ 34,265 $34,255 $ 34,265
'Audit of the Pension Trust Fund (if created by the Town) will be included as part of our audit of the Town's financial
statemenb.
(BADAWI&ASSOCIATES
Name of Firm and Certification
abadawi@b.'acpa.com
Ahmed Badawi
President
March 31. 2017
June 30, June 30,
2020 2021
.. I L!
Exhibit B
Town of Los Gatos Sealed Dollar Cost Bid
Schedule of Professional F ees and Exoenses bv Oeliverable r FY2017 to FY2019
Town Audit IFY2017)
i
Sinol€ Aud rFYmln
Ouoted
*runy
Rete
Ouoled
2 s 135 3 270
2 105 210
8 85 6E0
Stafi 18 70 1.no
I T Sp€cialist 100
Cledcal 60
Total dlinclusi\€
$ 2.420
d
ql
Town Audit lFY2018l
Quoled
tburiy
Rae
Ouoted
27 3 1s5 $ 4.185
58 110 6.340
83 95 7 885
si3fi 86 80 6 EEO
LT Specialist 2 100 204
Cleicd 1 60 60
Other (soecity):
Told dlir|clusit€
s 25.590
Sin6l6 Audii lFY2018)
Town Audit lFY20'19)
Ouoted
ttcurly
Rate
Ouoted
25 $ 170 s 4.250
54 115 6.210
Sup^isory slaf n 105 8.085
Slail 86 85
7,310
l.l Specialist 2 100 200
Geficd 1 50 60
Meals E lo(hino
Totd dl-inclusi\.
3 26,115
Sinol6 Audit lFY2019l
Quded
tbuny
Rate
Ouoled
TCId
2 I 170 3 340
2 115 230
8 '105 840
Stafi 1E 85 1 530
tl SDecialist 100
Cleicd 60
Od-ctpock€l
Mea/s & lo&irE
Other (so€citv)
Total dlinclusiE
t 2,940
Ouoled
Fbuny
Rae
Ouoted
Tciel
2A s t35 s 3,780
61 105 6.405
65 785
Slaf 91 70 6.370
lT Specialisi 2 100 240
Clencal 1 60 60
Od-af-pockel
s 24.040
Totd dlir'clusi\D
IIIII
Oucied
Houdy
Rale
Ouot€d
Tdd
2 $ 155 E 310
2 110 220
t'6095
Siall 18 80 1.440
LT. Specialist 100
60Cleicd
Oddpockel
othe. (sDecifY)l
Tcaal dlinclusi\e
3 2.730
IIIIIIIIII
2
It.tE ' BADAWI&ASSOCIATES{
-T-l
-+--[--r-t
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I
Exhibit B
Town of Los Gatos
Schedule of P.ofessional Fees and Expenses bv Deliverable for FY2017 to FY20l9 (Continued)
CAFR IFY2O17)CAFR IFY2Ol8T CAFR {FY2O19f
'CAFR preparation
Gann Limit lFY2017l
Ouoted
Flouriy
Flate
Quot€d
1 I 135 I 135
1 105 105
1 85 85
Slafi 1 70 70
l.l Speciaiist 100
Clencal 60
Oln-ofrocrel
Olher (slecilv)
Told dlinclt6i\e
hoirB lbr 2018 and m19 are assuming this senice u/as proided in FY20l7
c.nn Llmlt rFY2018l c.nn Limit (Fl20191
Ouoted
fbuny
Rete
O'roted
,1 $ 155 s 155
2 110 220
3 245
Slaff 10 8!.80!.
l.T. Specidisl 100
Clerical 3 60 180
O(-ofrocket
Other (specify)l
Totel dl.irclusit€
$ 1,640
Quot€d
Tcial
1 s 155 $ 155
1 110 110
Supenisory stafi 1 95 95
Staf 1 80 80
lT. Specialist 100
Cleical 60
Out-of+ocker
$ ,1,10
Quo(ed
l_loudy
Rate
Ouoted
Tttal
1 $ 170 E 170
2 115 230
3 105 315
Slaff 10 850
l.T. Specialasl 100
Oerical 3 60 180
Od-oEpocket
Meals & lodqinq
Other {so€calY)
Tdd dlirElllsi,E
$ 1.745
q
Quo(ed
|-budy
Rata
Ouoled
2 I 135 I 270
3 105 3'15
7 85 595
Slaf 19 70 1 330
l.T. Specialisl 100
Clerical 3 60 180
Merls & lodqinq
Tdal dl-inclusi!€
$ 2.690
Quoted
llot|liy
Rale
Ouoled
Totat
,1 $ 170 I 'r70
1 115 l't5
1 105 105
51aff 1 85 85
l.T Specialisi 100
clerical 60
OLndpockel
I 475
III
II II
ErltE
3
(' BADAWI&ASSOCIATES
Sealed Dollar Cost Bid
I
I
-T--__l
___l
--t
TT
Quoied
Houdy
Rate
T-r-+-
Exhibit B
Town of Los Gatos
Quded
Houdy
Rae
Ouoted
3 135 5 1351
1051105
1 85 85
slaff 70
100LT. Specialist
60Cleical
Oul-of-pock€l
Oher (sp€cit)l
Tot6l dlinclusi\€
s 325
IIII
IIIII
Schedule of Professional Fees and Exoenses bv Deliverable for FY2017 to FY2019
Manaoement Lett6r lFY2o17l Manaoement Latar IFY2018l Manaoement Letter IFY2019)
Quoled
lbudy
Rate
1 $ 155 3 155
1 110 110
1 95 95
Srafi 8C
LT. Specialisl 100
Clerical 60
Otn-oa-pocket
Me€ls & lodqinq
Tctd dlirElusi\E
5 360
State Controllers Reoort lFY20'181
Oudcd
lloudy
Ratc
Ouoted
1 3 170 I 170
1 115 115
1 105 105
Stafi 85
lT Specialisl 100
Cledcal 60
Other (specify):
Tolaldliftlusi'r
I 390
State Controllers Reoon lFY20'19)
Ouoled
l-ioody
Rate
Ouot€d
Total
1 3 135 s 135
2 105 210
Suoe^isorv slait I 65 680
Staf 16 70 1.120
lT. Specialisl 100
Cleical 60
Out-offockel
t 2.145
A
Quoted
tbudy
Rale
Quoted
Tctal
1 $ 155 $ 155
2 110 220
8 95 760
1 2AO51aff1680
lT Specialisl 100
Cleical 60
Out-oGpocket
Meals & lodoino
$ 2,415
Totd dlinclusi\€
IIII
IIII
Ouoled
Rate
Ouoted
Total
'I $ 170 3 170
1'15 2302
840I105
1 360Srafi1685
100l.T Specialist
60Clencd
Oul-ofr@kd
3 2.500
Totd dl-irclusi\e
IIIII
4
(tEtE BADAWI&ASSOCIATES
Sealed Dollar Cost Bid
"ot -noor.," loon,*rrt
--r-T-l
--r--
t-
_l T
lt Exhibit B
Town of Los Gatos Sealed Dollar Cost Bid
Manner of Payment:
Billino Sequence:
We will submit our bill for services on a progress basis:- lnterim fieldwork (Progress Billing 1)- Year€nd fieldwork (Progress Billing 2)- Report issuance (Final Billing)
Rates for Additional Professional Services:
Any services outside the scope of our engagement will be promptly identified before the
services are rendered. Upon mutual agreement, the out-of-scope services will be separalely
billed at our standard hourly rates. While il can be ditficult lo simply state hourly rates, as
often times the needs of the client and the speciflc tasks directly impact the billing rates for
our services, we want to provide the following information regarding our published billing
rates:
Position Hourly Rate
Partner
EOR
Manager
Senior
Stafi
IT
Admin.
$200
200
150
125
100
150
75
Our Standard Hourly Rates are adjusted annually by 3% for Cost of Living and lnflation
Adjustments
5
(BADAWI&ASSOCIATTSlt
Exhibit B
Town of Los Gatos Sealed Dollar Cost Bid
A client relationship with the To/vn will be of great value to our Firm and we welcome the opportunity
to develop a long-term relationship with the Town. We are committed to:
. Rendering the highest standard of service.
. Developing a long-term working relationship dedicated to meeting the needs of the Town.
. Assisting the Town in operational issues-
. Producing a qualily end-product.
We have the technical qualifications and experience to provide the level of service desired and
expected by the Town and stand ready to provide our knowledge and experience for the benefit of
your organization.
We would like to express our appreciation to the Town and to its Staff for allowing us the opportunity
to submit a proposal to perform professional auditing services. We are available, at your
convenience, to discuss any aspects of our proposal.
Thank you for allowing us to presenl our Firm to you.
l*,.tE
6
i BADAWI&ASSOCIATES{
tl Exhibit B