Auditing Services

The City of Manhattan Beach is requesting proposals from qualified certified public accountant firms to audit its financial statements for three fiscal years beginning with the fiscal year (FY) ending June 30, 2026 and two option years, in addition to performing other financial audits and reviews as in the scope of work. These audits are to be performed in accordance with auditing standards generally accepted in the United States of America, the standards set forth for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the U.S. Office of Management and Budget (OMB) Circular A-133 Audits of State and local Governments and Non-Profit Organizations and Governmental Accounting Standards Board (GASB) pronouncements.

It is anticipated the selection of a firm will be completed by April 30, 2025.

The City of Manhattan Beach is located in the South Bay region of Los Angeles County. The current population is 35,585. The City encompasses approximately four square miles.

Incorporated in 1912 under the general laws of the State of California, the city operates under the Council-Manager form of government. The City Council is comprised of five members elected at-large for overlapping four-year terms. Each member may serve as Mayor for a nine-month period once during his or her four-year term in office. The City Treasurer is also elected to a four year term and serves as the chairperson for the Finance Subcommittee. City Councilmembers are limited to two consecutive terms.

The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and appointing the City Manager and City Attorney. The City Councilmembers also serve as the governing body of the Manhattan Beach Capital Improvements Corporation.

In addition, the City Council appoints the members of the following advisory Boards and Commissions: Planning Commission, Parking and Public Improvements Commission, Board of Building Appeals, Parks & Recreation Commission, Library Commission, Business Improvement District Advisory Boards, and Cultural Arts Commission.

The city is a full-service municipality, and provides a variety of services to the community, including: General government, Police services, Fire and paramedic services, Culture and recreation, Building and safety, Solid waste and recycling, Water and waste water utilities, Storm water management, Parking facilities, and Street and landscape maintenance.

The City does not/did not have a Redevelopment Agency.

The City of Manhattan Beach's total budget in FY 2025 is approximately $185 million for all funds combined. The General Fund is approximately $98 million of that total. The City's fiscal year begins on July 1 and ends on June 30.

FUND STRUCTURE

The City of Manhattan Beach currently uses 32 funds in its financial reporting. The number and type of funds are subject to change based on the needs of the City. Any such change shall not result in change in the audit fee.

Number of Individual Funds by Type

Government Funds

General Fund 1

Special Revenue Funds 11

Capital Project Funds 4

Total Government Funds 16

Business Type Funds

Enterprise Funds 7

Internal Service Funds 4

Total Business Type Funds 11

Agency Funds

Agency 6

PENSION PLAN

The City participates in the State of California Public Employees' Retirement System (PERS), an agent multiple-employer retirement system. The City also maintains a defined contribution plan for employees not covered by PERS, such as part-time employees. There are a total of four CalPERS plans: Police (3%@50) and Fire (3%@55) both of which are pooled with other agencies, PEPRA Safety (2.7% at 57), and one standalone plan for Miscellaneous employees (2%@55) with PEPRA Miscellaneous (2%@62) rolled in.

AVAILABIILTY OF PRIOR REPORTS AND WORK PAPERS

The firm of Lance, Soll and Lunghard conducted the City's most recent audit. The work papers of the previous audits are the property of the previous auditor and can be reviewed by the successful Proposer. The City of Manhattan Beach Annual Comprehensive Financial Reports are available for review on the City's website at http://www.citymb.info/departments/finance/budget-and-accounting/financial-reports .