REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF THE Following:
INLAND EMPIRE PUBLIC FACILITIES CORPORATION
SAN BERNARDINO COUNTY FINANCING AUTHORITY
AND RECORD OF ACTION
June 27, 2023
FROM
ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector
SUBJECT
Title
Agreement with The Pun Group, LLP and Transfers of Funds for Audit Services
End
RECOMMENDATION(S)
Recommendation
1. Acting as the governing body of San Bernardino County, approve Agreement with The Pun Group, LLP, to provide financial/single audits for San Bernardino County, and financial audits of Arrowhead Regional Medical Center, the Inland Empire Public Facilities Corporation, and the San Bernardino County Financing Authority, for fiscal years 2022-23 through 2026-27, for a total contract amount not to exceed $1,334,188, for the five-year period of July 1, 2023 through June 30, 2028, as detailed in the Financial Impact section.
2. Acting as the governing body of the Inland Empire Public Facilities Corporation, authorize the Auditor-Controller/Treasurer/Tax Collector to transfer funds for the financial audits of the Inland Empire Public Facilities Corporation, for a total amount not to exceed $84,946, as detailed in the Financial Impact section (Four votes required).
3. Acting as the governing body of the San Bernardino County Financing Authority, authorize the Auditor-Controller/Treasurer/Tax Collector to transfer funds for the financial audits of the San Bernardino County Financing Authority, for a total amount not to exceed $76,983, as detailed in the Financial Impact section (Four votes required).
(Presenter: John Johnson, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7004)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). The cost for reimbursement for audit services is included in the Auditor-Controller/Treasurer/Tax Collector (ATC), Arrowhead Regional Medical Center (ARMC), Inland Empire Public Facilities Corporation (IEPFC), and San Bernardino County Financing Authority (SBCFA) 2023-24 budgets and will be included in future recommended budgets. The table below shows the maximum payment by agency and audited fiscal year for the term of the contract:
|
Agency |
2022-23 |
2023-24 |
2024-25 |
2025-26 |
2026-27 |
Five-Year Total |
|
ATC |
$145,800 |
$150,174 |
$154,680 |
$159,320 |
$164,099 |
$774,073 |
|
ARMC |
75,000 |
77,250 |
79,568 |
81,955 |
84,413 |
398,186 |
|
IEPFC |
16,000 |
16,480 |
16,974 |
17,484 |
18,008 |
84,946 |
|
SBCFA |
14,500 |
14,935 |
15,383 |
15,845 |
16,320 |
76,983 |
|
Total |
$251,300 |
$258,839 |
$266,605 |
$274,604 |
$282,840 |
$1,334,188 |
BACKGROUND INFORMATION
A financial audit of San Bernardino County (County) is required by County Code § 12.0309 and California Government Code § 25250. An audit of IEPFC is required by Article V, Section 4 of the Bylaws of the Corporation. An audit of SBCFA is required by Government Code § 6505. A single audit of the County is required by the Single Audit Act of 1984, as amended in 1996, and Title 2 of the United States Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
The recommended agreement with The Pun Group, LLP for financial and federal compliance audit services will allow the County, IEPFC, and SBCFA to satisfy these requirements. In addition, ATC is requesting Board of Supervisors’ approval to transfer funds from IEPFC and SBCFA to pay for the audit services.
PROCUREMENT
On February 17, 2023, ATC released Request for Proposals (RFP) No. ACT123-ACTT-4869 for Multi-Year Auditing Services for the County’s Annual Comprehensive Financial Report, the County’s Single Audit Report, and financial audits of the IEPFC, SBCFA, and ARMC, for a five-year period. The RFP was posted on the County Electronic Procurement Network (ePro). Four firms submitted proposals as follows:
|
Proposing Firm |
Location |
Five-Year Proposal |
|
The Pun Group, LLP |
Santa Ana, CA |
$1,334,188 |
|
Clifton Larson Allen, LLP |
Roseville, CA |
$1,812,510 |
|
Eide Bailly, LLP |
Rancho Cucamonga, CA |
$2,296,955 |
|
Macias, Gini & O’Connell, LLP |
Los Angeles, CA |
$2,414,845 |
Representatives from Imperial County, San Luis Obispo County, San Diego County, City of Fontana, and City of Lafayette rated the proposals. The Pun Group, LLP was the highest ranked proposer based on qualifications, experience, proposed services, and cost. The evaluation team recommends an award to The Pun Group, LLP to perform the audit services. No formal protests were received.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kristina Robb, Deputy County Counsel, 387-
5455) on May 19, 2023; Risk Management (Victor Tordesillas, Director, 386-8621) on May 30, 2023; Purchasing (Michelle Churchill Tagle, Supervising Buyer, 387-2070) on May 30, 2023; Finance (Penelope Chang, Administrative Analyst, 387-4886) on May 31, 2023; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 9, 2023.