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HomeMy WebLinkAboutFY26-27 Accounting: Accounting, Analysis, and Administration of Special Financing Districts - Davis Farr LLP (2) PROPOSAL FOR AUDITING & ACCOUNTING PROFESSIONAL SERVICES COUNTY OF HAWAII DEPARTMENT OF FINANCE QUALIFICATIONS FOR AUDIT & ACCOUNTING SERVICES Prepared By: Davis Farr LLP 18201 Von Karman Ave | Suite 1100 Irvine, CA 92612 Contact Person: Jonathan Foster, CPA, | Partner Office: 949.474.2020 | Direct: 949.783.1744 Email: jfoster@Davis Farr.com County of Hawaii Department of Finance Proposal for Auditing and Accounting Professional Services DAVIS FARR LLP. 18201 Von Karman Avenue, Suite 1100 Irvine, California 92612 Davis Farr LLP, Hawaii License No. FPTP-1435 Davis Farr LLP, Federal Identification No. 47-3535842 Jonathan Foster, CPA, Hawaii License ID CPA-6420 Contact Person: Jonathan Foster, CPA Partner (949) 783-1744 jfoster@DavisFarr.com June 30, 2026 Table of Contents Letter of Interest ............................................................................................ 1 Statement of Qualifications ............................................................................. 2 Information about the Firm ............................................................................ 2 Personnel ..................................................................................................... 6 Resumes ...................................................................................................... 7 References ................................................................................................. 23 Documentation of Past Performance .............................................................. 24 P a g e | 1 June 30, 2026 County of Hawaii Department of Finance RE: PROPOSAL TO PROVIDE AUDITING AND ACCOUNTING PROFESSIONAL SERVICES Davis Farr LLP (Davis Farr) is pleased to propose the requested auditing and accounting professional services for the County of Hawaii Department of Finance for FN.1Accounting and FN.5 Auditing Services. .  Davis Farr has successfully provided auditing and professional services to various non- profits in Hawaii and currently performs work for the Housing Agency of the County of Kauai.  Davis Farr has successfully provided auditing and accounting professional services for various County agencies. Additionally, our firm has performed several operational audits, contract compliance audits, financial audits, performance audits, management audits and organizational assessment audits for a variety of governmental agencies.  The professional staff of Davis Farr is highly specialized in governmental auditing and accounting. The firm devotes significant time and resources to continuing professional education related to government auditing and accounting performed for a variety of Federal, State and local governmental agencies.  We understand the scope of work to be performed, and we can and will deliver the services desired by the County Auditor. I look forward to you contacting me so that I may answer any further questions which you may have. You may contact me at (949) 783-1744. Very truly yours, Jonathan Foster, CPA Partner P a g e | 2 Proposal to Provide Audit and Accounting Professional Services Statement of Qualifications Information about the Firm Background Information – Davis Farr LLP is a full-service regional accounting firm that specializes in providing attest and advisory services to federal, state, and local governments as well as non- profit entities out of our Irvine, Carlsbad and Washington offices. Our personnel have served governmental and non-profit entities for over 30 years. The breakdown of our government audit personnel by classification is below. Quality Control – Davis Farr LLP and its Partners are members of the American Institute of Certified Public Accountants (AICPA) and is a member of the AIPCA’s Government Audit Quality Center. Our firm is a voluntary participant in the AICPA Peer Review Program. Included in the appendix is our most recent Peer Review report where our firm received a Pass. A Pass demonstrates the highest level of quality control in a Peer Review. Davis Farr routinely provides services related to audit, review, consulting and related services to our clients as noted below: P a g e | 3 Proposal to Provide Audit and Accounting Professional Services Size and Composition of Firm Every professional of the firm must enroll in continuing professional education courses. Each person is required to take at least 80 hours of training over a two-year period including 24 hours a year specific to government accounting and audit topics. Courses cover a wide spectrum of professional and technical subjects, and include Fraud Auditing, Professional Ethics and Governmental Accounting and Auditing topics to help the practitioner maintain his/her professional expertise. Our CPE program is periodically audited by NASBA to ensure we are in compliance with governmental Yellow Book CPE requirements. A breakdown of Davis Farr’s personnel by classification is as follows: Firm’s Representative Our representative for this proposal is: Jonathan Foster, CPA Partner Davis Farr LLP (949) 783-1744 jfoster@DavisFarr.com Classification Number of Employees Partners 7 Senior Managers 5 Managers 4 Supervisors 8 Seniors 17 Staff 7 Administrative 5 Total Personnel 53 P a g e | 4 Proposal to Provide Audit and Accounting Professional Services Davis Farr’s Experience and Qualifications Davis Farr has extensive prior experience in performing audit and accounting professional services including financial/compliance audits, operational audits, construction and engineering audits, information systems audits, investigative reviews, contract closeout audits, special reviews, agreed- upon procedures varied in nature, and administrative assistance. Emphasis has been placed on acquiring contracts with federal, state and local agencies in a manner which complemented the capabilities of the professional staff. Our exposure to a variety of agencies has provided us with an understanding of the agencies’ audit approaches and allowed our firm the opportunities to serve their particular needs in a manner consistent with Generally Accepted Governmental Auditing Standards as outlined in Government Auditing Standards - Standards for Audits of Governmental Organizations, Programs, Activities, and Functions issued by the Controller General of the United States. Virtually every member of our audit staff has reviewed and understands the GAO audit standards for government programs, and the various types of audits that we may be asked to perform. We believe our firm’s commitment to the public sector can be an important asset to the County Auditor. We wish to emphasize that, due to our specialization in governmental auditing and the resulting specialized training, education and experience that our personnel receive in governmental auditing, our firm’s level of development in servicing the governmental client is at an advanced level and continues to progress because of the undivided attention given to our governmental audit clients. Specifically, we have designed our firm’s philosophy toward development of a close working relationship with various public agencies. We believe that this partnership with the County Auditor provides our firm with an excellent opportunity to continue in our pursuit of providing top quality audit and accounting services to the public agency sector. The following represents a summary of our partners’ experience that is similar in nature to the types of assignments that may be made under this contract. P a g e | 5 Proposal to Provide Audit and Accounting Professional Services County of Los Angeles, Auditor-Controller Davis Farr is on the Master Agreement with the County of Los Angeles and has provided on-call audit and consulting services to the County’s Auditor-Controller, for projects requested by the Department of Public Works, Department of Public Social Services, L.A. Fire District, and the L.A. County Capital Asset Leasing Corporation. The projects involved financial audits, compliance reviews, agree-upon- procedures and consulting services. City of Los Angeles, Economic Workforce Development Department (EWDD) Davis Farr has been conducting fiscal monitoring, on behalf of EWDD since July 2019, through agreed upon procedures (AUP) engagement to review the fiscal compliance of subrecipients receiving State and local grant funds. Orange County Community Resources Department (OCCR) Davis Farr has been conducting fiscal monitoring, on behalf of OCCR since July 2019, to review the fiscal compliance of subrecipients receiving State and local grant funds. County of San Diego Davis Farr has several contracts with the County of San Diego to provide annual financial statements audits for entities related to the County of San Diego, as well as agreements to perform agreed-upon procedures related to internal departments and Transient Occupancy Tax compliance. We have been providing services to the County since 2010. Papahānaumokuākea Marine Debris Project (PMDP) Davis Farr performs annual financial statement and compliance audits in accordance with the Uniform Guidance, 2 CFR Part 200. Services include preparation of the annual financial statements and related footnote disclosures along with the Single Audit Reporting Package in accordance with Governmental Auditing Standards (GAS) submitted to the Federal Audit Clearinghouse (FAC). Special Inspector General for Afghanistan Reconstruction (SIGAR) Davis Farr has performed financial/compliance audits on behalf of SIGAR of grants and cooperative agreements awarded by various federal agencies to commercial and non-profit organizations for reconstruction efforts in Afghanistan. Our audit work has identified millions of dollars in questioned costs. System and Organization Controls (SOC) Examinations (SSAE18) Davis Farr has performed numerous SOC examinations of the internal controls of service organizations for a variety of commercial companies and federal contractors such as CMS, VA, and USDA. Indirect Cost Rate Audits Davis Farr has performed numerous audits of the indirect costs of architectural and engineering firms. These audits were used by the companies to support their indirect cost rates in proposals to various government agencies. San Diego Association of Governments (SANDAG) Davis Farr has been providing fiscal and compliance audit services to SANDAG since 2010. To date, services provided have included financial/compliance audits of the TransNet and TDA programs. P a g e | 6 Proposal to Provide Audit and Accounting Professional Services Personnel Any services requested will include the most qualified partner for the proposed services. Our organizational structure for providing audit and accounting services is as follows: The Field Auditors to be assigned may be Supervisors, Senior or Staff depending upon the specific skill set required of a given task order. All professionals are full-time employees of Davis Farr and have a degree in accounting or a closely related field from a 4-year college or university. Résumés of our key personnel can be found on the following pages. County of Hawaii Department of Finance Partner Senior Audit Manager/Manager Supervising Senior/Senior Auditors Staff/Assistant Auditors Technical Review Partner P a g e | 7 Proposal to Provide Audit and Accounting Professional Services Jonathan Foster, CPA Partner Mr. Foster has 19 years of experience in public accounting, with a specialized focus on auditing local government agencies. Throughout his career, he has provided audit and advisory services to a wide range of municipalities, special districts, and other governmental entities, helping clients navigate complex accounting and reporting requirements. He is an active leader within the governmental accounting profession, serving as Chair of the CalCPA Governmental Audit and Accounting Committee. Jonathan is also an instructor for the California Society of Municipal Finance Officers (CSMFO) and regularly presents at the CSMFO Annual Conference on topics related to governmental accounting, auditing, and financial reporting. His combination of technical expertise, industry leadership, and commitment to professional education enables him to provide clients with practical insights and high-quality service to governmental organizations throughout California. GOVERNMENTAL EXPERIENCE Employment History  Davis Farr LLP – Since 2015  National CPA Firm – 8 years Education  Bachelor of Accountancy (University of San Diego) Licenses / Registrations  California CPA Certificate No. 117853  Hawaii CPA Certificate No. CPA-6420 Professional Affiliations & Awards  American Institute of Certified Public Accountants  California Society of Certified Public Accountants  Cal CPA Government Audit & Accounting Committee Chair  California Society of Municipal Finance Officers AUDITS OF CITIES  City of Avalon  City of Fontana  City of Commerce  City of Huntington Beach  City of Carlsbad  City of Indian Wells  City of Costa Mesa  City of Laguna Niguel  City of Dana Point  City of Mission Viejo  City of Delano  City of Rancho Santa Margarita  City of National City  City of Santee P a g e | 8 Proposal to Provide Audit and Accounting Professional Services Jonathan Foster, CPA (continued) Partner Mr. Foster has significant experience working with federal grant programs typically awarded to local governments. These federal awarding agencies include Department of Housing and Urban Development, Department of Homeland Security, Department of Energy, Department of Justice, Department of the Interior, Environmental Protection Agency, and the Executive Office of the President Mr. Foster has also worked on various financial statements, compliance and in SOC1 Type II audits (formerly SAS 70) audits for various commercial companies and Federal agencies. AUDITS OF COMMERCIAL ENTITIES  Cal Domestic Water Company  DHS Consulting  Cahaba Government Benefit Administrators  Montebello Land and Water Company  CGS Administrators LLC  Mutual Insurance Company of Arizona  Delta Dental of Arizona  Sunnyslope Water Company AUDITS OF FEDERAL GOVERNMENT  Centers for Medicare and Medicaid Services  Special Inspector General for Afghanistan Reconstruction AUDITS OF OTHER LOCAL GOVERNMENT AGENCIES  Cucamonga Valley Water District  San Diego Association of Governments  East Orange County Water Agency  San Bernardino Municipal Water Department  Irvine Ranch Water District  Soquel Creek Water District  Placer County Water Agency  Trabuco Canyon Water District  Fairfield-Suisun Sewer District  Municipal Water District of Orange County  Oxnard Housing Authority  Ventura Housing Authority  San Bernardino LAFCO  Riverside Housing Authority  Tahoe-Truckee Sanitation Agency  Ventura Regional Sanitation District P a g e | 9 Proposal to Provide Audit and Accounting Professional Services Jennifer Farr, CPA, MBA Partner INTRODUCTION Jennifer Farr, CPA, MBA, is a founding partner with over 25 years of experience in government auditing, accounting and consulting. Ms. Farr is a frequent speaker on matters pertaining to technical issues and new GASB pronouncements. Ms. Farr is also responsible for training in the area of local governmental accounting and auditing. EMPLOYMENT HISTORY Davis Farr LLP: Partner – June 2015 to Present Shareholder, National CPA Firm – 15 Years EDUCATION California State University – Fullerton Master of Business Administration Bachelor of Business Administration, with an emphasis in Accounting Bachelors of Arts - English PROFESSIONAL CERTIFICATIONS American Institute of Certified Public Accountants California Society of Certified Public Accountants PROFESSIONAL ASSOCIATIONS American Institute of Certified Public Accountants (AICPA) California Society of Certified Public Accountants (CalCPA) California Society of Municipal Finance Officers (CSMFO) Government Accounting and Auditing Committee – Past Chair RELEVANT EXPERIENCE Ms. Farr has served as the Partner on the annual financial audits of the following: Municipalities  City of Palm Springs  City of Tustin  City of Coronado  City of Santa Ana  City of Dana Point  City of Orange  City of Fountain Valley  City of Walnut Creek Non-profit organizations  Papahānaumokuākea Marine Debris Project  Ocean Institute  Feeding Hawaii Together (dba The Pantry)  Open Doors International  ʻAha Pūnana Leo  Project Expedite Justice  The Midnight Mission  Ayn Rand Institute P a g e | 10 Proposal to Provide Audit and Accounting Professional Services Marc Davis, CPA Partner INTRODUCTION Marc Davis, CPA, is a founding partner with over 40 years of experience in government auditing, accounting and consulting. He serves as the attest leader in the financial statement audits of transportation agencies at Davis Farr, as well as leading our System and Organization Controls Audit Group. This Group is responsible for determining audit methodology in accordance with SSAE 18. He has spoken at the Association of Government Accountants’ (AGA) annual conference as part of a panel discussion on the usefulness of SAS 70 audits in the government arena. Mr. Davis is also a co-author of ePractice Aids for Reporting on Controls of Service Organizations published by Thompson-Reuters. He has also performed financial/compliance audits in accordance with the Federal Acquisition Regulation (FAR). Mr. Davis will serve as the Engagement Quality Reviewer for task orders related to audit, review, consulting and related services. EMPLOYMENT HISTORY Davis Farr LLP: Partner – June 2015 to Present Mayer Hoffman McCann P.C.: Shareholder, Senior Manager, Supervisor, Senior Auditor and Staff Auditor – September 1984 through August 1988, and September 1998 to present. (Firm was known as Conrad and Associates, L.L.P. prior to January 1, 2006) City of Costa Mesa: Acting Finance Director, Assistant Finance Director, Deputy Treasurer – May 1990 through August 1998. City of Buena Park: Acting Finance Director, Deputy Treasurer – September 1988 through May 1990. EDUCATION California State University - Fullerton Bachelor of Arts in Business Administration, with an emphasis in Accounting PROFESSIONAL CERTIFICATIONS American Institute of Certified Public Accountants California Society of Certified Public Accountants PROFESSIONAL ASSOCIATIONS American Institute of Certified Public Accountants (AICPA) California Society of Certified Public Accountants (CalCPA) P a g e | 11 Proposal to Provide Audit and Accounting Professional Services RELEVANT EXPERIENCE Transit Agencies Mr. Davis has served as the Partner on the annual financial audits of the following governmental entities:  City of Newport Beach  City of Escondido  City of Buena Park  City of Los Alamitos  City of Mission Viejo  City of Stanton  City of Garden Grove  City of Costa Mesa In addition to annual financial statement audits, Mr. Davis has served as the Partner on audits of special districts and housing authorities for the following agencies:  Orange County Transportation Authority  San Diego Association of Governments  Oxnard Housing Authority  Housing Authority of Fresno County  Riverside County Transportation Commission  Ventura County Transportation Commission Mr. Davis has also provided extensive consulting services to local government including GASB 34 infrastructure inventory and valuation, fixed asset inventories, preparation of cost allocation plans, preparation of user fee studies, performance audits and outsourcing. Federal Government Special Inspector General for Afghanistan Reconstruction (SIGAR) Mr. Davis currently serves as the Engagement Partner on the contracts to perform cost-incurred audits on behalf of SIGAR. The funding agencies included in the scope of these audits are USAID, U.S. Department of Defense, U.S. Department of State and the U.S. Department of Agriculture. Center for Medicare and Medicaid Services (CMS) Mr. Davis currently serves as the Engagement Partner on SOC examinations (SSAE18) internal control audits of service organizations of fiscal intermediaries and carriers on behalf of CMS. The SOC examinations consisted of the evaluation of the design and effectiveness of internal controls in place surrounding CMS-specified control objectives. United States Postal Service Office of Inspector General Mr. Davis served as the Engagement Partner on the performance of agreed-upon procedures of post offices, business mail entry units, stamp distribution offices/district accounting offices, and contract postal stations. The purpose of the audits was to determine compliance with postal regulations and guidelines. National Science Foundation (NSF) Mr. Davis served as the Engagement Partner on the pre-award reviews of proposals submitted by small start-up companies for NSF grants to fund research. Commercial Companies National Government Services, Inc. P a g e | 12 Proposal to Provide Audit and Accounting Professional Services Mr. Davis served as the Engagement Partner on the Type II SSAE 16 internal control audit of National Government Services (NGS). This Type II SSAE 16 audit consisted of a review of the design and operating effectiveness of the internal controls, including information systems internal controls, of NGS’ DME MAC and A/B MAC contracts with CMS. Cigna Government Services, LLC. Mr. Davis served as the Engagement Partner on the Type II SSAE 16 internal control audit of Cigna Government Services (CGS). This Type II SSAE 16 audit consisted of a review of the design and operating effectiveness of the internal controls, including information systems internal controls, of CGS’s DME MAC Contract with CMS. Cahaba Government Benefit Administrators Mr. Davis served as the Engagement Partner on the Type II SSAE 16 internal control audit of Cahaba Government Benefit Administrators (Cahaba). This Type II SSAE 16 audit consisted of a review of the design and operating effectiveness of the internal controls, including information systems internal controls, of Cahaba’s A/B MAC Contract with CMS. Calance, Inc. Mr. Davis served as the Engagement Quality Reviewer on the Type II SSAE 16 internal control audit of this web hosting company and data center. This SSAE 16 audit reviewed the internal controls surrounding the Company’s physical security, logical security, and change Management among other control objectives. MasterTax Services, Inc. Mr. Davis served as the Engagement Partner on the Type II SAS-70 internal control audit of this payroll tax processing company. This SAS-70 audit reviewed the internal controls surrounding the Company’s physical security, logical security, change management, and accuracy and completeness of data transmissions among other control objectives. DealerTrack, Inc. Mr. Davis served as the Engagement Partner on the Collateral Management Services and Dealer Management System SOC examination of internal control. Collateral Management Services provides electronic title processing and paper title administration services while Dealer Management System is a hosted enterprise resource planning software provided to automobile dealerships. These SOC audits consist of reviewing the internal controls surrounding the physical security, logical security, and change management among other control objectives. P a g e | 13 Proposal to Provide Audit and Accounting Professional Services Gordon Ho, CPA, MBA, CFE Partner INTRODUCTION Gordon Ho is a Partner with the firm. He has more than 20 years of government auditing experience. Mr. Ho has been extensively involved with incurred costs audits, financial/compliance audits of grants, performance audits and internal control audits with various Federal agencies, such as the National Science Foundation (NSF), the Centers for Medicare & Medicaid Services (CMS), Corporation for National and Community Services (CNCS) and the U.S. Department of Justice (DOJ). Mr. Ho has been extensively involved with Incurred Cost Proposal Audits of CMS since Year 2010. He is the Engagement Partner of 26 Incurred Cost Proposal audits performed on behalf of the Defense Contract Audit Agency (DCAA). He has also played an integral role with Internal Control Engagements with Centers for Medicare & Medicaid Services (CMS). EMPLOYMENT HISTORY  Davis Farr LLP: Senior Manager, Partner – June 2015 to present.  Mayer Hoffman McCann P.C.: Senior Manager, Manager, Supervising Senior –January 2006 to June 2015.  Conrad and Associates, LLP: Supervisor, Senior Auditor and Staff Auditor – 2000 through December 2005.  Simpson and Simpson, CPAs: Staff Auditor – 1999 to 2000. RELEVANT EXPERIENCE Federal Government Defense Contract Audit Agency (DCAA) Mr. Ho is currently the Engagement Partner of 26 audits on Indirect Cost Proposals (ICPs) submitted by various types of U.S. Department of Defense (DoD) contractors. The ICP audits are audits of direct costs and proposed indirect cost rates submitted by a variety of contractors providing services to DoD. The audits are performed in accordance with GAGAS as well as applicable regulations in the FAR and DFARS for audits of for-profit organizations, and the Cost Accounting Standards (CAS). Duties include overseeing the overall contract performance, being the liaison with DCAA, developing and reviewing audit plans, audit reports and work papers. Center for Medicare and Medicaid Services (CMS) Mr. Ho has served as the Manager in-charge and Engagement Partner of over 50 audits on Indirect Cost Proposals (ICPs) submitted by various types of CMS contractors both for-profit and non-profit from 2010 till 2020. The ICP audits are audits of direct costs and proposed indirect cost rates submitted by a variety of contractors providing services to CMS. The audits are performed in accordance with GAGAS as well as applicable regulations in the FAR for audits of for-profit organizations; OMB Circulars A-122 and A-133 in audits of non-profit organizations, and the Cost Accounting Standards (CAS). Internal Control Engagements. Mr. Ho served in a significant role for conducting internal control reviews of several Medicare contractors, such as CIGNA Government P a g e | 14 Proposal to Provide Audit and Accounting Professional Services Services, Mutual of Omaha, Regence Blue Cross Blue Shield of Utah, Premera, Blue Cross Blue Shield of Arkansas, etc. during the period 2003 through 2008. Duties included conducting fieldwork, supervising staff members assigned to the engagement and reviewing their work papers. Corporation for National and Community Services (CNCS) Mr. Ho was the manager and field in-charge of several cost incurred and compliance audits of various not-for-profit and state government grantees receiving funding from CNCS from 2004 through 2008. These grantees include YouthBuild USA, the Arkansas State Commission, the California GoServe State Commission, and U.S. Vets. Duties included supervising staff members assigned to the engagement and reviewing their work papers, performing examinations of grantees’ accounting systems and records, assessing controls and fraud risk, testing of expenditures claimed and preparing audit reports. National Science Foundation (NSF) Mr. Ho was the manager and field in-charge of numerous costs incurred and compliance audits and performance audits of grantees receiving funding from NSF during the period 2003 through 2010. These grantees include Monterey Peninsula College, University of Arizona, University of Maryland – Baltimore County, WestEd, and NEES, Inc., and Academy of Natural Science. Duties included supervising staff members assigned to the engagement and reviewing their work papers, performing examinations of grantees’ accounting systems and records, assessing controls and fraud risk, testing of expenditures claimed and preparing audit reports. Mr. Ho has also performed numerous reviews on cost proposals from different agencies applying for NSF funds. Department of Justice Chapter 7 Bankruptcy Audits. Mr. Ho served as an in-charge auditor on Chapter 7 bankruptcy trustee performance audits since 2005. He currently serves as the quality control reviewer of these audits. These audits involve a review of internal controls, tests of asset administration procedures, tests of financial transactions and verification of compliance with the reporting requirements and certain other provisions contained in the Program’s Handbook for Chapter 7 Trustees. Chapter 13 Bankruptcy Audits. Mr. Ho was an in-charge auditor on Chapter 13 bankruptcy audits, which included a review of the annual report submitted by Chapter 13 Trustees and a review of internal controls surrounding the trustee’s operations. Non-Profit Organizations Community Action Partnership of Orange County Mr. Ho was the fieldwork in-charge of the financial and OMB Circular A-133 audit. Duties included evaluating internal controls and fraud risk, performing audit procedures, reviewing work papers, training new staff on OMB Circular A-133 issues, and preparing financial statements. P a g e | 15 Proposal to Provide Audit and Accounting Professional Services San Diego Workforce Partnership, Inc. (SDWP) – Financial Audit Mr. Ho was the senior in-charge of the financial and OMB Circular A-133 audit. Duties included evaluating internal controls and fraud risk, performing audit procedures, reviewing work papers, training new staff on OMB Circular A-133 issues, and preparing financial statements. San Diego Workforce Partnership Inc. (SDWP) – Sub-Recipient Monitoring He is the engagement manager of monitoring services performed on the behalf of SDWP on different agencies receiving Workforce Investment Act funds from the U.S. Department of Labor through SDWP. Each monitoring is a program specific, fiscal and compliance review. Duties included scheduling the audits, reviewing work papers, assigning and evaluating staff members, and reviewing reports prior to issuance. State and Local Government County of Los Angeles He has been the manager and fieldwork in-charge of state-funded cost incurred grant audits within various departments of the County. He was responsible for daily audit operations, reviewing work papers of staff members and preparing audit reports. Mr. Ho has also conducted numerous compliance audits on transportation organizations in the County of Los Angeles that received Federal Transit Authority (FTA) funds. Duties included examining transportation services records and the related expenses. P a g e | 16 Proposal to Provide Audit and Accounting Professional Services Diego Vanegas, CPA, CISA, CITP Partner INTRODUCTION Diego F. Vanegas, CPA, CISA, CITP, is a Partner with the firm and has over 20 years of professional audit experience. Mr. Vanegas has been extensively involved with incurred costs audits, financial/compliance audits of grants, performance audits and internal control audits with various Federal, State, and local agencies. In addition, Mr. Vanegas has vast experience in the performance of System and Organization Controls (SOC) examinations for many commercial Information Technology companies nationwide. EMPLOYMENT HISTORY Davis Farr LLP: Partner - June 2015 to Present. Mayer Hoffman McCann P.C.: Senior Manager, Supervisor, and Senior Auditor – January 2006 to June 2015. Conrad and Associates, LLP: Staff Auditor – May 2005 to January 2006. Parke Guptill & Company, LLP: Staff Auditor – October 2003 to April 2005. EDUCATION California State University - Los Angeles B.S. Business Administration – Emphasis in Accounting B.S. Computer Information Systems – Emphasis in Business Systems PROFESSIONAL CERTIFICATIONS Certified Public Accountant (CPA) Certified Information Systems Auditor (CISA) Certified Information Technology Professional (CITP) PROFESSIONAL AFFILIATIONS American Institute of Certified Public Accountants (AICPA) ISACA RELEVANT EXPERIENCE Local and State Governments City of Los Angeles, Mayor’s Office of Homeland Security and Public Safety Mr. Vanegas served as the project manager on various agreed-upon procedure (AUP) reviews of subrecipients costs incurred under the American Recovery and Reinvestment Act Justice Assistance Grant (ARRA Recovery JAG 09), and the 2009 Edward Byrne Memorial Justice Assistance Grant (JAG 09). Duties included audit scheduling, audit program preparation, execution of field work, monitoring of staff, preparation of work papers, report drafting, and presentation of findings. Los Angeles County (Various Agencies) P a g e | 17 Proposal to Provide Audit and Accounting Professional Services Mr. Vanegas served on numerous state funded cost incurred grant audits for various departments of the County of Los Angeles. Departments included the Department of Probation, Sheriff’s Department, District Attorney’s Office, and the Los Angeles Superior Court. Duties included audit scheduling, audit program preparation, execution of field work, monitoring of staff, preparation of work papers, report drafting, and presentation of findings. Orange County Social Service Agency (OCSSA) Mr. Vanegas served on program specific/compliance audit services performed on behalf of OCSSA. Mr. Vanegas participated in these engagements in the capacity of field in-charge and manager. Each monitoring was a program specific, cost incurred and compliance review. Duties included audit scheduling, audit program preparation, execution of field work, monitoring of staff, preparation of work papers, report drafting, and presentation of findings. San Diego Workforce Partnership Inc. (SDWP) Mr. Vanegas was the in-charge of monitoring services performed on behalf of SDWP on different agencies receiving Workforce Investment Act funds and other federal and local funds through SDWP. Each monitoring was a program and compliance audit. Audit responsibilities included audit program preparation, communicating with the client, monitoring of staff, review of work papers, report drafting, and presentation of findings. Federal Government National Science Foundation (NSF) Mr. Vanegas served on audit teams for NSF audits of William Marsh Rice University, the Academy of Natural Sciences, Exploratorium, NEES Consortium, Inc., the University of Maryland Baltimore County, WGBH Education Foundation, University of Puerto Rico and WestEd. Duties include documenting internal control systems of grantees and performing internal control and substantive testing. Corporation for National and Community Services (CNCS) Mr. Vanegas served in various audits of grant programs under the CNCS. These audits were full scope audits addressing financial and compliance adherence to grant agreements. Audited agencies included YouthBuild USA and Volunteer Florida, as well as various State Commission from Tennessee, Minnesota and Oklahoma. Authoritative criteria set forth in OMB A-133, A-122 and Agency set provisions were used as appropriate criterion in the execution of the audits. Department of Justice Mr. Vanegas was an in-charge auditor on Chapter 13 bankruptcy audits, which included a review of the annual report submitted by Chapter 13 Trustees and a review of internal controls surrounding the trustee’s operations. Experience in performing System and Organization Controls (SOC) Examinations (SSAE18) P a g e | 18 Proposal to Provide Audit and Accounting Professional Services Center for Medicare and Medicaid Services (CMS) Mr. Vanegas performs SOC examinations which consist of expressing an opinion on the fairness of the presentation of third-party administrators’ description of their systems and on the suitability of the design and operating effectiveness of controls to achieve related control objectives specified by CMS. Various IT Companies Mr. Vanegas performs SOC examinations of various commercial technology-based service organizations. Duties included audit scheduling, audit program preparation, execution of field work, monitoring of staff, preparation of work papers, report drafting, and presentation of findings. P a g e | 19 Proposal to Provide Audit and Accounting Professional Services Shannon Ayala, CPA Partner INTRODUCTION Shannon Ayala is a Partner with the firm with over 20 years of audit experience. She has spent most of her time on audits for local governments and nonprofits in San Diego County. Ms. Ayala has performed financial statement audits of cities and special districts; nonprofits; grant specific audits of funds awarded by Federal, state, and county governments; Single Audits in accordance with Uniform Guidance, and compliance audits. EMPLOYMENT HISTORY  Davis Farr LLP: Partner – June 2015 to Present  National CPA Firm: 10 Years  Lennar Homes: 2 Years EDUCATION Bachelor of Science – Accounting PROFESSIONAL AFFILIATIONS American Institute of Certified Public Accountants California Society of Certified Public Accountants California Society of Municipal Finance Officers North County Philanthropy Council – Treasurer RELEVANT EXPERIENCE Ms. Ayala has served as the Partner on the annual financial audits of the following: Local Governments  County of Del Mar  City of Encinitas  County of Poway  City of Santee  City of Coronado  Coachella Valley Conservation Commission  City of Vista  Imperial County LAFCO Non-profit Organizations  Balboa Arts Conservation Center  Sanderling Waldorf School  Just Keep Living Foundation  Modglin Family Foundation  San Diego Futures Foundation  University Religious Conference  San Fernando Valley Intercommunity Council  YMCA of the Desert P a g e | 20 Proposal to Provide Audit and Accounting Professional Services Jeff Ball, CPA Partner INTRODUCTION Jeff Ball is a Partner with the firm with 18 years of audit experience. He has spent the majority of that time on audits for non-profits, and federal and local government engagements. The types of audits Mr. Ball has been involved in include financial audits of non-profits, cities and special districts; grant specific audits of funds awarded by Federal, state, and county governments; Single Audits in accordance with OMB Circular A-133; and Federal compliance audits. EMPLOYMENT HISTORY  Davis Farr LLP: Partner – June 2015 to Present  National CPA Firm: 7 Years EDUCATION Bachelor of Science – Business Economics with Emphasis in Accounting PROFESSIONAL AFFILIATIONS American Institute of Certified Public Accountants California Society of Certified Public Accountants City of Tacoma – Audit Committee RELEVANT EXPERIENCE Mr. Ball has served as the Partner on the annual financial audits of the following: Local Governments  County of Sandiego  City of Culver City  County of Placer  City of Inglewood  City of Tustin  City of Irvine  City of Solana Beach  City of Newport beach Special Districts  Salton Sea Authority  San Bernardino Water Authority  Beach Cities Health District  San Diego Port Authority  Community Colleges of Spokane  Eastern Municipal Water District  Taho Transportation District  San Juan water District P a g e | 21 Proposal to Provide Audit and Accounting Professional Services Kyle Haas, CISA, CFE Senior Manager INTRODUCTION Kyle Haas is a Senior Manager with the firm with over 14 years of experience. He has spent the majority of that time on audits for federal and special purpose governments. The types of audits with which Mr. Haas has been involved in include grant specific audits of funds awarded by Federal, state, and county governments; Federal compliance audits; and audits of healthcare organizations. EMPLOYMENT HISTORY Davis Farr LLP: 13 Years EDUCATION California State University, Fullerton Bachelor of Science in Business Administration PROFESSIONAL CERTIFICATIONS AND AFFILIATONS Certified Information Systems Auditor (CISA) Certified Fraud Examiner (CFE) RELEVANT EXPERIENCE Federal Governments  Centers for Medicare and Medicaid Services  United States Department of Agriculture  Administrators, LLC – SOC 1 Type 2 Examination  Special Inspector General for Afghanistan Reconstruction  Managed Care Organizations  United States Department of Veterans Affairs  National Science Foundation Special Purpose Governments  Calance  San Diego Association of Governments  CalSAWS Consortium  Southern California Regional Rail Authority  Cox Automotive P a g e | 22 Proposal to Provide Audit and Accounting Professional Services Jeri Marcia, CPA, MBA Senior Manager INTRODUCTION Jeri Marcia is a Senior Manager with the firm. She has over 15 years of audit experience, spending the majority of that time on audits for non-profits, federal and local government. The types of audits Ms. Marcia has been involved in include financial audits of non-profits, grant specific audits of funds awarded by Federal, State, and County governments; Single Audits in accordance with OMB Circular A-133; and Federal compliance audits. EMPLOYMENT HISTORY  Davis Farr LLP: Since 2015  National CPA Firm: 4 Years  Brown Armstrong: 2 Years EDUCATION California State University, Bakersfield Master’s in Business Administration Bachelor of Science in Accounting PROFESSIONAL CERTIFICATIONS AND AFFILIATONS Certified Public Accountant (CPA) RELEVANT EXPERIENCE Federal Governments  Centers for Medicare and Medicaid Services  Department of Justice  Defense Contract Audit Agency  National Science Foundation Non-profits  California Association of Public Authorities IHSS  Mariposa Family Center  Harbor Day School  MOM’s of Orange County  Hope House  Pretend City  Irvine Adult Day Center  SPCALA  Living Desert Zoo  YMCA of Orange County Other Audits  City of Los Angeles – EWDD (AUP)  Los Angeles Metropolitan Water District  County of Los Angeles – Department of Public Social Services (Grant Compliance)  YMCA of Orange County (Grant Compliance) P a g e | 23 Proposal to Provide Audit and Accounting Professional Services Nick Baldelli, CPA Senior Manager INTRODUCTION Nick Baldelli is a Senior Manager with 13 years of experience both auditing local governments and working in advanced accounting and financial reporting as a municipal government employee. Most of his audit background is in non-profits, counties, and municipal government engagements. The types of audits Mr. Baldelli has been involved in are financial audits of non-profits, municipalities, counties, and other governmental organizations; agreed upon procedures; and Single Audits in accordance with Uniform Guidance. EMPLOYMENT HISTORY  Davis Farr LLP: 2023 to Present  City of Gilbert, Arizona: 3 Years  Local Public Accounting Firm (NC and AZ) 7 Years EDUCATION University of North Carolina, Asheville Bachelor of Science in Accounting PROFESSIONAL CERTIFICATIONS AND AFFILIATONS Certified Public Accountant (CPA) Blue Ridge Public Radio – Audit Committee Member North Carolina Association of Certified Public Accountants – Committee Member RELEVANT EXPERIENCE Local Governments & Non-profit Organizations  City of Newport Beach, CA  City of Mission Viejo, CA  City of Huntington Beach, CA  City of Garden Grove, CA  City of Fontana, CA  Haywood County, NC  City or Prescott, AZ  City of Casa Grande, AZ  'Aha Pūnana Leo  Buncombe County, NC  Polk County, NC  Papahānaumokuākea Marine Debris Project Mr. Baldelli supervised multiple areas in the Finance Department for Gilbert, AZ including: Accounts Payable $330M in annual spend, revamped controls and processes, implemented new banking contract services. Capital Assets $3.1B in assets, established internal controls and corrected a significant control deficiency. Grant Reporting and Compliance Created and implemented grant assessment and subrecipient monitoring tools for compliance with complex federal awards. Cash Receipts, Revenue and Receivables $400M in annual receipts, implemented timely billing controls Preparation of the ACFR Along with several other annual external financial reports. Mr. Baldelli created financial reporting tools to implement both GASB Statement No. 87 & 96; developed and implemented City policies with the City Manager’s Office. P a g e | 23 Proposal to Provide Audit and Accounting Professional Services References The following is a sampling of clients for whom Davis Farr has performed similar services. Client Contact Work Performed Karen Fee Auditor County of Los Angeles 500 West Temple St. Los Angeles, CA 90012 (213) 253-0161  Financial and Compliance Audits  Review of Ambulance Fees Kevin O’Brien President Founder Papahānaumokuākea Marine Debris Project 201 Kapaa Quarry PI #5017 Kailua, HI 96734 (808) 348-0096  Financial and Compliance Audit in accordance with Governmental Auditing Standards (GAS) Samuel Diche, CPA San Diego Association of Governments (SANDAG) 401 B Street #800 San Diego, CA 92101 619-595-5395  Annual fiscal and compliance audit of the use of TransNet funds of recipients under the TransNet Extension and Expenditure Plan. Shannon Marshall Information Security & Risk Management Cox Automotive, Inc. / Dealertrack 9750 Goethe Road Sacramento, CA 95758 916-854-5324  System and Organization Controls (SOC) Examination (formerly SSAE16) Chris Keillor Finance Director Tahoe Regional Planning Agency PO Box 5310 Stateline, NV 89449 (775)-589-5223  Financial Statement Audit  Single Audit  TSAC Audit Ms. Janet Sutter Manager, Internal Audit OCTA 600 S. Main St Orange, CA 92868 (714) 560-5669  Contract Closeout Audits  Pre-Award Pricing Reviews  Bus Parts Inventory Valuation  TDA Article 3, 4 and 4.5 Audits  Annual Financial Statement Audit P a g e | 24 Proposal to Provide Audit and Accounting Professional Services Documentation of Past Performance Davis Farr has an excellent track of providing quality services to our clients. Our approach of strong communication between us and our clients results in extremely high client satisfaction. Davis Farr has performed several projects for governmental agencies over the past 10 years. Please note that such experience includes years in which Davis Farr personnel operated as the Governmental Services Division of MHM. Past performance is as follows: Annual Audits of Municipalities and Special Districts Davis Farr has performed numerous audits of municipalities over the past 10 years including the following:  City of Aliso Viejo  City of Hemet  City of Redlands  City of Avalon  City of Highland  City of Riverside  City of Benicia  City of Indian Wells  City of San Bruno  City of Beverly Hills  City of Indio  City of San Gabriel  City of Burbank  City of Inglewood  City of San Marcos  City of Campbell  City of La Palma  City of Santa Ana  City of Carlsbad  City of La Quinta  City of Santa Monica  City of Carson  City of La Verne  City of Santee  City of Commerce  City of Laguna Beach  City of Solana Beach  City of Compton  City of Laguna Woods  City of South Gate  City of Costa Mesa  City of Lomita  City of Temple City  City of Culver City  City of Mission Viejo  City of Torrance  City of El Cajon  City of National City  City of Upland  City of Escondido  City of Newport Beach  City of Victorville  City of Fountain Valley  City of Orange  City of Villa Park  City of Garden Grove  City of Palm Springs  City of West Covina  City of Gilroy  City of Pasadena  City of Whittier  City of Goleta  City of Placentia  City of Woodland  City of Half Moon Bay  City of Rancho Mirage  City of Yucca Valley  City of Hawaiian Gardens  City of Rancho Santa Margarita  City of Yucaipa The Partners of Davis Farr have performed audits of the following housing authorities and special districts:  Antelope Valley Transit Authority  Omnitrans  Beaumont Cherry Valley Water District  Orange County Fire Authority  Big Bear Area Regional Wastewater Agency  Orange County Sanitation District  Big Bear Community Services District  Orange County Transportation Authority  Bighorn Desert Water Agency  Oxnard Housing Authority  California Joint Powers Insurance Authority  Pomona Housing Authority  Carlsbad Housing Authority  Rancho California Water District  Chino Basin Desalter  Salton Sea Authority  Chino Basin Watermaster  San Bernardino Housing Authority  Coachella Valley Association of Governments  Coachella Valley Mosquito and Vector Control District  Riverside County Flood Control and Water Conservation  San Diego County Water Authority P a g e | 25 Proposal to Provide Audit and Accounting Professional Services  Coachella Valley Recreation and Parks District  San Diego Unified Port District  Coachella Valley Water District  San Gabriel Valley Mosquito District  County of Riverside Housing Authority  Santa Ana Housing Authority  Cucamonga Valley Water District  Santa Margarita Water District  Eastern Municipal Water District  Santa Monica Housing Authority  Elsinore Valley Municipal Water District  South Coast Water District  Hawaiian Gardens Housing Authority  South Gate Housing Authority  Housing Authority of the City of Los Angeles  Southern California Regional Rail Authority  Imperial Valley Housing Authority  Inland Empire Utilities Agency  Southern California Association of Governments  Irvine Ranch Water District  SunLine Transit Agency  Lake Arrowhead Community Services Water  Tahoe Regional Transportation Agency District  Tahoe Transportation District  Mojave Water Agency  Ventura Area Housing Authority  Moulton Niguel Water District  Ventura County Transportation Commission  Municipal Water Department of the City of San Bernardino  Vista Irrigation District  West Basin Municipal Water District Special Audits and Consulting Services Provided In addition to the annual auditing services, Davis Farr has assisted its clients by performing both attest services and various management advisory and other accounting/consulting services, including:  GASB 34 infrastructure inventories and valuations;  User fee studies;  Cost allocation plans;  Management and organizational reviews;  Investment portfolio reviews and policy on derivative use;  Reviews of water billing systems;  Special fraud audits;  Special hotel-motel bed tax audits;  Other gross receipts audits (cable television franchise fees, excavation tax, etc.);  Contractual agreement compliance audits;  Review of central purchasing systems;  Review of warehouse controls and inventory systems;  Review of operations in Treasurers’ Office;  Reviews of cash controls in various departments;  Review of investment policies and modifications thereto;  Special reviews of information systems;  Review of permitting process;  Analysis of investment yields;  Assistance in presentations to city councils;  Assistance in setting up special accounting systems for redevelopment agencies;  Assistance to bond underwriters in providing “comfort letters” on debt issues of municipalities;  Consultations regarding the maximizing of tax increment revenue for redevelopment agencies;  Organizational review of finance departments;  Tax advice regarding deferred compensation, employee benefits, use of city vehicles, etc.;  Review of financial forecasts; P a g e | 26 Proposal to Provide Audit and Accounting Professional Services  Assistance in cash reconciliation problems;  Determination of the cost of excess sewer capacity for a developer/city contractual arrangement;  Assistance in the selection of qualified finance personnel for employment by the City;  Assistance in computation of Proposition 111 Gann limitations;  Management reviews of finance and City Treasurer’s office;  Assistance in establishing accounting for development projects and fees to comply with AB 1600;  Special reviews of the validity of changes in tax increment revenue from year to year within redevelopment agencies;  Assistance in Section 8 Housing program portability issues; and  Assistance in the acquisition of private water companies and the accounting issues related thereto. BILLING POLICY Davis Farr bills for worked completed on active contracts in the month following when the actual services are provided. Davis Farr does not bill for anticipated services to be provided in the following month, nor does Davis Farr require an upfront/prepayment at the start of a contract.