BOARD MEETING DATE: May 2, 2003
AGENDA NO. 3

Execute Contract for Independent Audit Services for FYs Ending
June 30, 2003, 2004, and 2005

SYNOPSIS:

On February 7, 2003, the Board approved the release of an RFP for independent financial audit services. An evaluation panel composed of outside and AQMD Legal and Finance staff evaluated the proposals. Two proposals were submitted to the Administrative Committee for consideration at its April 11, 2003 meeting. After the Committee interviewed representatives of each of the firms, Simpson & Simpson, CPAs was selected to be recommended to the full Board.

COMMITTEE:

Administrative, April 11, 2003, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Simpson & Simpson, CPAs for performance of AQMD’s Financial Audits for the FYs ending June 30, 2003, 2004, and 2005 in an amount not to exceed $74,400.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

A financial audit is annually performed on the AQMD in compliance with the California Government Code and Single Audit Act of 1996. This audit is performed by independent Certified Public Accountants, and their reports are addressed to the Board.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:
 

1.	Antelope Valley Press	10.	Korea Central Daily	19.	Precinct Reporter
2.	Black Voice News	11.	La Opinion	20.	Press Enterprise
3.	Chinese Daily News	12.	La Prensa Hispana	21.	Rafu Shimpo
4.	Desert Sun	13.	La Voz Publications	22.	San Bernardino Sun
5.	Eastern Group Publications	14.	Los Angeles Daily News	23.	State of California Contracts
6.	El Chicano	15.	Los Angeles Sentinel		Register
7.	El Informador	16.	Los Angeles Times	24.	The Excelsior
8.	Inland Empire Hispanic News	17.	Orange County Register	25.	The Signal
9.	Inland Valley Daily Bulletin	18.	Philippine News	26.	Wave Community Newspapers

Additionally, potential bidders were notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon, or http://www.aqmd.gov/busjob/ ] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Fifty-eight copies of RFP #P2003-24 were mailed out. Three (3) quotations were received when the bidding closed at 3 p.m. on March 12, 2003.

An evaluation panel was convened to evaluate the three proposals and consisted of a Principal Account Auditor from the County of Los Angeles and three AQMD staff: a Senior Deputy District Counsel, a Financial Analyst, and the Controller. The panel consisted of two females and two males; one Asian Pacific American and and three  Caucasian. After technical evaluation, one firm was eliminated as it did not meet the minimum requirements of the RFP. The evaluation results for the remaining bidders are as follows:
 

*Total maximum points of 110

The selection criteria used to rank the proposals included: responsiveness to the RFP: technical expertise; project management and technical approach; previous experience; cost; and SB/SBJV/DVBE/DVBEJV/DVBE/SB Subcontractors/Local Business designation (non-EPA). Based on the panel’s assessment of the criteria, the two proposals were recommended to the Administrative Committee for its consideration and recommendation to the full Board.

When the RFP process is initiated again in three years, staff will take additional steps to expand its outreach to ensure a greater pool of qualified candidates.

Resource Impacts

The maximum audit costs, including out-of pocket expenses are $24,800, $24,800, and $24,800, for FYs ending June 30, 2003, 2004, and 2005, respectively. This represents a maximum cost of the three-year period of $74,400. Sufficient funds for the first year of the contract are included in the FY 2003-2004 Budget Proposal and will be budgeted for in the second and third years.

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