COUNTY OF KINGS DEPARTMENT OF FINANCE REBECCA CARR, CPA CGMA DIRECTOR OF FINANCE 1400 W. LACEY BLVD HANFORD, CA 93230

Transcription

1 COUNTY OF KINGS DEPARTMENT OF FINANCE REBECCA CARR, CPA CGMA DIRECTOR OF FINANCE 1400 W. LACEY BLVD HANFORD, CA AUDITOR-CONTROLLER DIVISION TAX COLLECTOR TREASURER DIVISION (559) FAX: (559) TAX: (559) TREASURER (559) FAX: (559) COUNTY OF KINGS INDEPENDENT AUDIT SERVICES REQUEST FOR PROPOSALS # The County of Kings is currently accepting proposals for independent audit services. Audit services will be contracted for a three year period beginning with fiscal year ended June 30, 2015, with the option of two, one year extensions. On March 29, 2005, Kings County entered into a three-year agreement for professional services with Brown- Armstrong, Certified Public Accountants, for external audit services. The agreement was extended on several occasions, the last extension was approved August 28, 2012 and covered services through the June 30, 2014 fiscal year audit. The attached Request for Proposal (RFP) establishes the scope of work, criteria and measurement standards for the final auditor selection. The firm will be selected through a competitive bidding process. We expect to bring a recommended contract to the Kings County Board of Supervisors in March Your written proposals must be submitted no later than 4:00pm PST on March 6, 2015, in accordance with the attached proposal requirements. All external audit services must be bid together. You may not submit a bid for separate services. A summary of proposal costs (Exhibit 1) must be submitted with the bid. Award of the contract will be based on responsiveness to RFP, total dollars and experience of your firm. We are not holding a formal bidders conference however, finalists may be invited for a formal presentation to the Department of Finance. Questions may be directed to Dan Willhite, Purchasing Manager (559) Services Required We are requesting proposals to perform annual required audits for the following: 1) Audit the County s financial statements (CAFR) in accordance with generally accepted governmental auditing standards. The final audit report to be issued by December 1 subsequent to each fiscal year end in accordance with Section ) Audit of Schedule of Federal Financial Assistance (Single Audit), including all financial and compliance audit requirements of the provisions of the federal Single Audit Act of 1984 (including all amendments) and applicable United States Office of Management and Budget circular(s). The final audit report to be issued by March 15 subsequent to each fiscal year end in accordance with Section P age

2 + 3) Audit and provide a separate report on the County s compliance with the Treasury Oversight Committee provisions and articles of Government Code Sections audit specifications. The final audit report to be issued by September 30 subsequent to each fiscal year end in accordance with Section ) Audit and provide separate reports on various state grant programs in accordance with the requirement of the granting agencies listed below in accordance with Section 3.6: 1. Department of Insurance a) Automobile Insurance Fraud b) Workers Compensation Insurance Fraud 2. District Attorney Grant audits (2-4 grants each year pending on state funding) a) Department of Justice b) California Office of Emergency Services c) California Department of Traffic Safety 3. Transportation Development Act (TDA) a) Kings County RPTA b) Kings County RPTA Single Audit (required in 2014) c) Kings County TDA (combined audit) d) City of Avenal TDA e) City of Corcoran TDA f) City of Hanford TDA g) City of Lemoore TDA 5) Audit and provide separate reports on the County of Kings First Five Commission. Provide final audit report in a timely manner in accordance with the State of California, First Five Commission guidelines in accordance with Section ) Prior to award, prospective firm must provide evidence of insurance coverage in compliance with Appendix A, paragraph 10 as attached to this RFP. 2 P age

3 SECTION 1. + INFORMATION FOR PROPOSERS 1.1 Requester s address and recipient of proposals 3 P age County of Kings Purchase Manager Dan Willhite 1400 West Lacey Hanford, CA (559) Questions regarding this request may be directed to the above. 1.2 Description of Entity and Records to be Audited The County of Kings was established in 1893 and is positioned midway between Los Angeles and the Bay Area. The County is governed by a five-member Board of Supervisors (Board) that are elected by district. Members serve staggered four-year terms with elections held every two years. Other elected officials include the Assessor/Clerk-Recorder, Sheriff-Coroner and District Attorney. The Director of Finance encompasses Auditor-Controller/Treasurer-Tax Collector and is appointed by the Board of Supervisors. The current Director of Finance joined the County in January The County s current population is 152,739 and is projected for expansion to 176,427 by 2020, and to 245,525 by In accordance with State law, the County adopts an annual budget. A summary of the budget is attached as Appendix B. The total County budget is $309 million of which the General Fund is $189 million. The County Department of Finance-Treasury Division invests the pooled funds of all agencies with funds in the County Treasury. Investments are reported monthly to the Board at cost and market value. A Treasury Oversight Committee oversees the Treasury Investment Policy and reporting. In accordance with Section of the Government Code, the Department of Finance-Auditor Division reviews the quarterly Treasurer s Investment Report. The County is self-insured for Workers Compensation, General Liability and Health Insurance. The County s accounting system, e Finance (SunGard), is a generalized system of financial management designed for government operations. The e Finance system comprises general

4 + ledger accounting, check writing, reporting and budget preparation modules. There are approximately 750 funds on the accounting system. Approximately 120 of these are County funds. The County Department of Finance prepares the CAFR using Caseware software. 1.3 Assistance Available to Auditor The County Department of Finance staff and responsible management personnel will be available during the audit to assist the firm by preparing the draft CAFR using Caseware software, providing documentation and explanations. The County will provide the auditor with a work space, access to a Wi-Fi connection, photocopying and fax machine. 1.4 Time Requirements Summary a. Proposals submitted by March 6, :00pm b. Audit contract drafted, signed by auditor and submitted to Board in April P age

5 SECTION 2. + INSTRUCTIONS TO REPONDENTS 2.1 Preparation of RFP Respondents shall submit the completed Request for Proposals (RFP with appropriate attachments or explanatory materials. 2.2 RFP Documents The following, in addition to the RFP, constitute RFP documents: Exhibit 1 - Summary of Proposal Costs Exhibit 2 - Customer References Exhibit 3 - Peer review 2.3 RFP Process Schedule The following is an anticipated RFP and engagement schedule. The County may change the estimated dates and process as deemed necessary. The proposed schedule for the submittal review and notification is as follows: ACTIVITY DATE Send out notices for RFP January 23, 2015 Due date for proposals March 6, 2015 Presentations by finalists (if required by County) March 25, Select audit firm March 31, 2015 Have signed contract for Board approval April 14, Submission of Response to RFP Respondent shall submit 4 copies of all RFP documents listed in Section 2.2 no later than 4:00 PM, March 6, Responses shall be delivered in a sealed envelope clearly labeled Audit Bid Proposal Enclosed, addressed to: County of Kings Purchase Manager Dan Willhite 1400 West Lacey Hanford, CA Late Responses 5 P age

6 + 6 P age All responses to the RFP must be delivered in person or received by mail no later than March 6, 2015 at 4:00 pm Pacific Standard Time. Respondents shall be responsible for the timely delivery of their RFPs. Responses received after the deadline will be returned unopened. 2.6 Information Required from Proposer Table of Contents Include a clear identification of the material by sections, subject matter, and page number. Letter of Transmittal Limit to no more than two pages. Briefly state the proposer s understanding of the work to be performed and make a positive statement committing to perform the work within the time periods established. Firm Profile State whether the Firm is local, regional, national, or international. State the location of the firm s home office, and the office from which the work is to be performed. State the number of partners, managers, supervisors, seniors, and other professional staff at the office from which the work is to be done. Describe the range of services provided at the office from which the engagement will be conducted. Identify the extent of the audit function and the proportion of governmental audits conducted. Summary of Proposer s Qualifications Identify the individual partners, manager, and supervisors/seniors who will be assigned to the engagement. Provide brief statements of qualifications and experience for each individual (include as an appendix). Describe recent and on-going audit experience of California governments comparable to this engagement. Provide a name and telephone number of a responsible client representative for three (3) clients, who may be contacted as a reference. Scope Section Clearly describe the scope of the audit services to be provided. Since the engagement includes examination of the financial statements and compliance audit, define the scope of the services to be provided in terms of the matters discussed in the following subsections. Financial Audit

7 + The examination is to be made in accordance with Generally Accepted Auditing Standards for governmental entities. These standards are defined in the Statements on Auditing Standards of the American Institute of Certified Public Accountants, and Government Auditing Standards published as the Yellow Book by the Comptroller General of the United States. If conditions are discovered which lead to the belief that material errors, defalcations, or other irregularities may exist, or any other circumstances are encountered that require extended services which were not anticipated in the bid, the Director of Finance must be notified in writing and no extended services will be performed as a result of any such discoveries unless they are authorized in the contractual agreement, or in an amendment to the agreement approved by the Board of Supervisors. Compliance Audit The auditor will employ procedures to test the County s compliance with the provisions of any and all applicable material Federal, State, and Local statues, ordinances, Charter, Administrative Code, Rules or Regulations, and other contractual obligations, and shall render an opinion thereon. An audit program shall be developed to ensure adequate coverage of Federally funded programs, and render an opinion thereon in accordance with the provisions of the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments and Non-Profit Organizations. Compensation Determine the total hours, out-of-pocket costs, and the resultant all-inclusive maximum fee for which each audit, and component, will be conducted. The appendix shall show the hourly rate to be charged for each audit team member, including the review level. Peer Review Describe the results of the firm s most recent peer review. Attach a copy of the peer review as Exhibit 3 of the proposal. 2.7 Summary of Proposal Costs Respondent shall submit Exhibit 1 Summary of Proposal costs with the RFP. 2.8 References Respondent shall submit Exhibit 2 Customer References with the RFP. Unsatisfactory responses to reference checks may result in rejection of the RFP. All references must be California governmental entities. 2.9 RFP Evaluation Criteria 7 P age

8 + If an award is made, it will be made to the Respondent(s) that offers the County the greatest value based on an analysis involving a number of criteria. Evaluation criteria may include, but is not necessarily limited to the following: The hourly rate of scheduled services and the overall cost to the County Compliance with RFP requirements, terms and conditions o Living Wage o Organization of staff and training Quality and performance of the services offered based on previous contracts, or reference checks for the same or similar services. Capacity of the Respondent to perform the required services. 30 points 15 points 35 points 20 points 100 points 8 P age

9 + SECTION 3. STATEMENT OF WORK, SPECIFICATIONS 3.1 Scope The County reserves the right, as it may deem necessary, to add to delete services to this contract, with only a thirty (30) day written notice, in order to accommodate any future County offered programs or as a result in the reduction in County funds. Requests for increase in services will be negotiated with the successful bidder based on the hourly rates provided herein. 3.2 Scope of Services for CAFR 1. Audit the financial records and render an opinion on the fairness of the County s Comprehensive Annual Financial Report (CAFR) (i.e. financial statements). The County is the primary government and the CAFR includes the GASB statements of County funds. Funds and activities to be audited include: General Fund Special Revenue Funds Debt Service Funds Internal Service Funds Enterprise Funds Agency Funds 2. Perform the audit in accordance with Generally Accepted Auditing Standards (GAAS), Generally Accepted Government Auditing Standards (GAGAS) (the Yellow Book), and all applicable pronouncements of the American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). 3. Provide the final audit report to the Director of Finance by December 15 of each year (unless circumstances of the County Department of Finance cause unforeseen delays). 4. The opinion of the County s Comprehensive Annual Financial Report shall include an opinion on all accompanying required supplemental schedules. 5. Provide technical guidance and interpretation of new GASB pronouncements to assist the County in reporting with Generally Accepted Accounting Principles and in achieving the GFOA s Certificate of Achievement for Excellence in Financial Reporting. 9 P age

10 + 10 P age 6. Provide the Director of Finance with a draft of the Management Letter which will include internal control evaluations, findings and recommendations by December 15 of each year. 7. The financial statements, notes to financial statements, notes to financial statements, statistical information and any other supplementary information to be included in the County s CAFR, are to be compiled from information provided by the County. Financial statements are to be prepared in conformance with GAAP. 8. The County Department of Finance will provide draft financial statements to the Contractor. 9. The Contractor will provide one (1) unbound and fifteen (15) bound copies of the CAFR to the Director of Finance. 3.3 Scope of Services for Audit of Schedule of Federal Financial Assistance (Single Audit) 1. Audit the financial records and render an opinion on the fairness of the County s Schedule of Federal Financial Assistance in accordance with Office of Management and Budget (OMB) Circular A-133. Specify the number of major programs on the summary of proposal costs and provide pricing for additional major programs beyond the proposed amount. 2. Perform the audit in accordance with GAGAS, and all applicable pronouncements as published by the AICPA, Government Accounting Office (GAO) and OMB. 3. Prepare and provide any and all special reports necessary to comply with this provision, including the Data Collection Form, and file all required copies of the Single Audit and the Management Letter with the cognizant agency. 4. Provide one (1) copy of the Data Collection Form, one unbound original report and up to ten (10) bound copies of the Single Audit Report to the Director of Finance. 3.4 Scope of Services for Treasury Compliance Audit 1. Audit and provide a separate report expressing an opinion on the County s compliance with the Treasury Oversight Commission provisions and articles of Government Code Sections Report should include auditor s opinion on compliance, County s Statement of Investment Policy, information from the Treasurer s Quarterly Investment Report for the Quarter Ended June 30, 20xx, and any other supplemental information provided by the Director of Finance. 3. Provide one unbound copy and up to ten (10) bound copies to the Director of Finance.

11 + 3.5 Scope of Services for Kings County First Five Commission 1. Audit the financial records and render an opinion on the fairness of the Commissions Comprehensive Annual Financial Report (CAFR) (i.e. financial statements). 2. Perform the audit in accordance with Generally Accepted Auditing Standards (GAAS), Generally Accepted Government Auditing Standards (GAGAS) (the Yellow Book), and all applicable pronouncements of the American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). 3. Provide a copy of the final audit report to the Commission each year in a timely manner (unless circumstances of the County Department of Finance cause unforeseen delays). 4. The opinion of the Commission s Comprehensive Annual Financial Report shall include an opinion on all accompanying required supplemental schedules. 5. Provide technical guidance and interpretation of new GASB pronouncements to assist the Commission in reporting with Generally Accepted Accounting Principles and in achieving the GFOA s Certificate of Achievement for Excellence in Financial Reporting. 6. Provide the Commission with a draft of the Management Letter which will include internal control evaluations, findings and recommendations in a timely manner. 7. The financial statements, notes to financial statements, notes to financial statements, statistical information and any other supplementary information to be included in the Commission s CAFR, are to be compiled from information provided by the Commission. Financial statements are to be prepared in conformance with GAAP. 8. The Contractor will provide one (1) unbound and fifteen (15) bound copies of the CAFR to the Commission. 11 P age

12 + 3.6 Scope of Services for Audit of State Grants Audits of various grants will be performed in accordance with each granting agency s guidelines. The following agencies currently provide grant funds to the County and require an annual audit. 4. Department of Insurance a) Automobile Insurance Fraud b) Workers Compensation Insurance Fraud 5. District Attorney Grant audits (2-4 grants each year pending on state funding) a) Department of Justice b) California Office of Emergency Services c) California Department of Traffic Safety 6. Transportation Development Act (TDA) a) Kings County RPTA b) Kings County RPTA Single Audit (required in 2014) c) Kings County TDA (combined audit) d) City of Avenal TDA e) City of Corcoran TDA f) City of Hanford TDA g) City of Lemoore TDA 12 P age

13 + EXHIBIT 1 Summary of Proposal Costs Firm name: No. Entity 1 County of Kings CAFR 2 County of Kings Single Audit 3 County of Kings Treasury Oversight Audit 4 Department of Insurance Automobile Insurance Fraud 5 Department of Insurance Workers Compensation Fraud 6 District Attorney Grants 7 Transportation Development Act Audits 8 Kings County RPTA Single Audit FY 14/15 cost FY 15/16 Cost FY 16/17 Cost Total all years Indicate the following for the above costs: County of Kings Single Audit: Number of major programs included in Proposal Specify dollar amount per additional major program District Attorney Grants: Number of grant audits included in Proposal Specify dollar amount per additional Grant audit 13 P age

14 + EXHIBIT 2 Customer References List and submit with this RFP, three (3) customer references for whom you have furnished similar services in size and nature, at least two (2) of which are preferred to be from other California County/Public Agencies. 1. Agency/Company Name: Address: Contact Person: Telephone Number: 2. Agency/Company Name: Address: Contact Person: Telephone Number: 3. Agency/Company Name: Address: Contact Person: Telephone Number: 14 P age

15 APPENDIX A Kings County Agreement No. AGREEMENT FOR PROFESSIONAL SERVICES WITH CONTRACT AUDIT FIRM NAME FOR THE ANNUAL COUNTY OF KINGS AUDIT THIS AGREEMENT is entered into this day of, 2015 by and between the County of Kings (hereinafter referred to as County ) and Contract Audit Firm Name (hereinafter referred to as Contract Auditor ). RECITALS WHEREAS, the Board of Supervisors of the County of Kings is required pursuant to Government Code section to make an annual examination and audit of the financial accounts of all officers having responsibility for the care, management, collection and disbursement of money belonging to the County and/or money received or disbursed by them under authority of law; and WHEREAS, Contract Auditor is comprised of certified public accountants licensed by the State of California who possess the experience, skill and expertise to perform the financial examination and audit required to be performed by the Board of Supervisors under Section Page 1 of 8

16 NOW, THEREFORE, THE PARTIES AGREE as follows: 1. SCOPE OF WORK. The scope of work to be done by Contract Auditor and the reports to be issued by Contract Auditor are set forth in the Proposal attached hereto and incorporated herein as APPENDIX A. Contract Auditor shall conduct the following audits for the County for Fiscal Years , and County of Kings Comprehensive Annual Financial Report County of Kings Single Audit County of Kings Treasury Oversight Audit Department of Insurance Automobile Insurance Fraud Workers Compensation Insurance Fraud District Attorney Grants (2-4 grants per year) Department of Justice California Office of Emergency Services California Department of Traffic Safety Transportation Development Act (TDA) Kings County RPTA Kings County RPTA Single Audit (required in 2014) Kings County TDA (combined audit) City of Avenal TDA City of Corcoran TDA City of Hanford TDA City of Lemoore TDA Contract Auditor shall perform an examination and audit in compliance with the terms and conditions of this Agreement and in compliance with the terms and conditions set forth in the Paragraph 3. This contract may be extended for two additional fiscal years ( and ) upon written agreement of both parties. 2. RETENTION OF RECORDS. Page 2 of 8

17 Contract Auditor shall retain the audit work papers and related audit reports for a minimum of five (5) years, unless the firm is notified in writing by the County of the need to extend the retention period. 3. TERM. The term of this Agreement shall commence (date of contract), and continue until completion, review and acceptance of the audit for the Fiscal Year ending June 30, This Agreement is subject to termination pursuant to Paragraph TERMINATION. This Agreement may be terminated without cause by County upon thirty (30) days written notice to Contract Auditor. Contract Auditor shall be paid for any satisfactory work completed up to the time the notice of cancellation is received by Contract Auditor. 5. COMPENSATION. Contract Auditor shall be compensated for actual work performed pursuant to this Agreement as per the Proposal by Contract Auditor and as listed below. FY 14/15 FY 15/16 FY 16/17 Total all Entity cost Cost Cost years County of Kings CAFR County of Kings Single Audit County of Kings Treasury Oversight Audit Department of Insurance Automobile Insurance Fraud Department of Insurance Workers Compensation Fraud District Attorney Grants Transportation Development Act Audits Kings County RPTA Single Audit Page 3 of 8

18 The total maximum compensation for the Fiscal Year audit shall not exceed the amount of (Contracted costs) for all components of the audit pursuant to the Proposal. The maximum compensation for the Fiscal Year audit shall not exceed the amount of (Contracted costs), for all components of the audit pursuant to the Proposal. The maximum compensation for the Fiscal Year audit shall not exceed the amount of (Contracted costs), for all components of the audit pursuant to the Proposal. There shall be no reimbursement of costs or expenses incurred by Contract Auditor. The maximum compensation set forth above includes such amounts. 6. PAYMENTS AND BILLING. Contract Auditor may request progress payments to cover all work performed to date. Progress payments will be made on the basis of hours of work completed during the course of the engagement in accordance with the Contract Auditor s Cost Proposal. Interim billings shall cover a period of not less than a calendar month. At least ten (10%) percent of the total contract billing will be withheld from the final pending delivery of the final reports by the Contract Auditor. Billings for progress payments shall include reports and descriptions of the work completed. Such billings and related reports are subject to review and approval by County. Final payment will be made after successful completion of all services and reports to the satisfaction of the County. Progress payments and final billings shall be in a form satisfactory to the County and shall include sufficient information to enable County to identify the audit costs attributable to each entity, grant or fund which will be needed to assist in charging each organization for its share of the audit costs. 7. KEY PERSONNEL. Prior to the commencement of services to be provided hereunder, Contract Auditor shall provide the County with names and qualifications of the employee entrusted with supervision of the services to be rendered. The employee will not be reassigned or a new employee assigned to provide such supervision without the prior written consent of the County. 8. SUBCONTRACTING AND ASSIGNMENT. Page 4 of 8

19 Contract Auditor shall not subcontract any of the work to be performed under this Agreement without the express prior written consent of County, nor shall Contract Auditor assign or transfer its interest in this Agreement without the prior written consent of County. 9. HOLD HARMLESS. Contract Auditor shall hold County harmless, indemnify, and defend County, its elected officials, officers, employees and assigns from and against any and all claims, demands, liability, judgments, awards, interest, attorneys fees, costs and expenses of whatsoever kind or nature, at any time arising out of or in any way connected with the performance of this Agreement. Contract Auditor's liability for indemnity under this Agreement shall apply, regardless of fault, to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of the Contract Auditor, unless the claim, demand liability, judgment, award, interest, attorney's fee, cost or expense is caused solely by the negligent or willful misconduct of the County, its officers, employees, agents or assigns. Contract Auditor will on request and at its expense defend any action suit or proceeding arising hereunder and shall reimburse and pay the County for any loss, cost, damage or expense (including the cost of its attorneys) suffered by it hereunder. This indemnification specifically includes any claims that may be against County by any taxing authority asserting that an employer-employee relationship exists by reason of this Agreement. These indemnification obligations shall survive the termination of this Agreement as to any acts or omissions occurring under this Agreement or any extension of this Agreement, within applicable statute of limitations. 10. INSURANCE REQUIREMENTS. A. Without limiting County s right to obtain indemnification from the Contract Auditor or any third parties, prior to commencement of work, Contract Auditor shall purchase and maintain the following types of insurance for minimum limits indicated during the term of this Agreement and provide a Certificate of Endorsement from Contract Auditor's Insurance Carrier guaranteeing Page 5 of 8

20 such coverage to the County. Such Certificate shall be mailed directly to the address as set forth in section 13 Notices. In the event Contract Auditor fails to keep in effect at all times insurance coverage as herein provided, County may, in addition to other remedies it may have, suspend or terminate this Agreement upon the occurrence of such event. 1. Commercial General Liability. $1,000,000 per occurrence and $2,000,000 annual aggregate covering bodily injury, personal injury and property damage. The County and its officers, employees and agents shall be endorsed to above policies as additional insured, using ISO form CG or an alternate form that is at least as broad as form CG 20 26, as to any liability arising from the performance of this Agreement. 2. Automobile Liability. Comprehensive Automobile Liability Insurance with limits for bodily injury of not less than Two Hundred Fifty Thousand Dollars ($250,000) per person, Five Hundred Thousand Dollars ($500,000) per accident and for property damages not less than Fifty Thousand Dollars ($50,000), or such coverage with a combined single limit of Five Hundred Thousand Dollars ($500,000). Coverage should include owned and non-owned vehicles used in connection with this Agreement. 3. Workers Compensation. Statutory coverage, if and as required according to the California Labor Code, including Employers' Liability limits of $1,000,000 per accident. The policy shall be endorsed to waive the insurer's subrogation rights against the County. 4. Professional Liability. $1,000,000 limit per occurrence and $2,000,000 annual aggregate limit covering Contract Auditor's wrongful acts, errors and omissions. B. Insurance Conditions. 1. Insurance is to be placed with admitted insurers rated by A.M. Best Co. as A:VII or higher. Lower rated, or approved but not admitted insurers, may be accepted if prior approval is given by the County's Risk Manager. Page 6 of 8

21 2. Each of the above required policies shall be endorsed to provide County with thirty (30) days prior written notice of cancellation. County is not liable for the payment of premiums or assessments on the policy. No cancellation provisions in the insurance policy shall be construed in derogation of the continuing duty of Contract Auditor to furnish insurance during the term of this Agreement. 11. INDEPENDENT CONTRATOR. The relationship of Contract Auditor, and its officers, agents, employees, and representatives to County will be that of independent contractor and not agent or employee. 13. NOTICES. Any notices required to be given to either party pursuant to the terms of this Agreement shall be given in writing as follows: If to Contract Auditor: Contracted Audit Firm Contact Information 14. VENUE. If to County: Rebecca Carr, CPA CGMA Director of Finance County of Kings 1400 West Lacey Blvd. Hanford, CA This Agreement shall be administered and interpreted under the laws of the State of California. Venue for any litigation arising from the Agreement shall be in the Superior Court of the State of California in Kings County, California. 15. AMENDMENTS. This Agreement and any extensions hereof, may not be modified or amended in any respect except by writing signed by the Parties. 16. AUTHORITY Each signatory to this Agreement represents that it is authorized to enter into this Agreement and to bind the Party to which its signature represents. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement this day of, COUNTY OF KINGS Contract Audit Firm Page 7 of 8

22 By Chairman, Board of Supervisors By ATTEST: By Catherine Venturella Clerk of the Board of Supervisors APPROVED AS TO FORM By County Counsel, County of Kings Page 8 of 8

23 -~. PAGE 1 State Controller Schedules COUNTY OF KINGS SCHEDULE 1 County Budget Act ALL FUNDS SUMMARY January 2010 Fiscal Year Total Financing Sources Total Financing Uses.... Fund Name Fund Balance Decreases to Increases to Unreserved! Reserves! Additional Total Reserves! Total Undesignated Designations! Financing Financing Financing Designations! Financing June 30, 2014 Net Assets Sources Sources Uses Net Assets Uses (1) (2) (3) (4) (5) (6) (7) (8) General Fund $ 14,414,178 $ $ 175,003,731 $ 189,417,909 $ 189,417,909 $ $ 189,417,909 Special Revenue Funds 17,716,556 33,049,536 50,766,092 50,766,092 50,766,092 Capital Projects Funds 7,587,202 18,835 59,324,263 66,930,300 66,602, ,098 66,930,300 Debt Service Funds. 2,282,219 2,282,219 2,282,219 2,282,219 Total Governmental Funds $ 39,717,936 $ 18,835 $ 269,659,749 $ 309,396,520 $ 309,068,422 $ 328,098 $ 309,396,520 Other Funds Internal Service Funds $ 14,172,162 $. $ 40,841,964 $55,014,126 43,139, ,139,671 Total Other Funds $ 14,172,162 $ $ 40,841,964 $ 55,014,126 $ 43,139,671 $ $ 43,139,671 ~--. Total All Funds $ 53,890,098 $ 18,835 $ 310,501,713 $ 364,410,646 $ 352,208,093 $ 328,098 $ 352,536,191