Professional Auditing Services

CITY OF PARAMOUNT (562) 220-2000
16400 Colorado Avenue, Paramount, California 90723
www.paramountcity.com
Request for Proposals
The City of Paramount is seeking proposals for
PROFESSIONAL AUDITING SERVICES
Proposal Release Date: April 2, 2026
Deadline for Submit Proposals: May 8, 2026, 5:00 P.M. (PST)

CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
I. INTRODUCTION
A. General
The City of Paramount ("Paramount" or "City") requests proposals from qualified certified public
accounting firms to perform professional auditing services of the City's financial statements for the three
(3) fiscal years ending June 30, 2026, June 30, 2027, and June 30, 2028, with the option of auditing the City's
financial statements for each of the two (2) subsequent fiscal years. The contract term with the City's
current audit firm, The Pun Group LLP, expires soon. The City has been satisfied with the services; however,
to comply with the requirements of Government Code 12410.6, the City is seeking formal audit proposals
at this time, ensuring competitive pricing and services. The City's goal is to provide its elected officials and
the public with a comprehensive financial report that gives complete, accurate, and understandable
information about the City's financial condition. There is no expressed or implied obligation for the City to
reimburse responding firms for any expenses incurred in preparing proposals in response to this request.
Materials submitted by respondents are subject to public inspection under the California Public Records
Act (Government Code Sec. 6250 et seq.), unless exempt.
B. Description of the Government
The City of Paramount was incorporated on January 30, 1957, as a general-law city operating under the
Council-Manager form of government. Part of the Gateway Cities of Southeast Los Angeles County,
Paramount is 4.7 square miles with approximately 54,000 residents who call Paramount home. The City
Manager is appointed by the City Council to serve as the organization's Chief Executive Officer and leads a
staff of 97 full-time employees and approximately 200 part-time employees while administering the 2025-
26 Fiscal Year operating budget of approximately $107 million for all combined funds. The City's executive
management team includes an Assistant City Manager, a City Clerk, and five (5) Department Directors all
of whom manage seven departments consisting of Administrative Services, City Manager's Office,
Community Services, Finance, Planning & Building, Public Safety, and Public Works. The City Attorney is a
contract position. The City is considered a contract city that contracts the Los Angeles County Sheriff's
Department for its law enforcement services to, the Los Angeles County Fire Department for its fire
services, the Southeast Area Animal Control Authority for its animal control services, Athens Services for
its waste disposal services, and HdL Companies for this business license and tax services.
The Finance Department is led by Finance Director Lana Dich who oversees ten (10) full-time staff
members comprising one (1) Financial Services Manager, one (1) Accounting Manager, two (2) Senior
Accountants, one (1) Accounting Specialist (vacant), one (1) Customer Service Supervisor, two (2) Finance
Technicians, one (1) Administrative Assistant, and one (1) Payroll Technician, including six (6) part-time
staff members that consist of two (2) Finance Assistants, and four (4) Finance Aides. The City's Finance
Department, along with its Water Billing Division, is responsible for accounting, payroll, cash management,
general ledger, budget management, investment management, grants management, capital projects, data
processing, business license administration, and water billing.
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
The number and type of funds are subject to change based on the needs of the City. Any such change shall
not result in the change of the audit fee. The City of Paramount uses fund accounting to ensure compliance
with finance-related legal requirements. The City's funds are divided into three (3) categories: governmental
funds, proprietary funds, and fiduciary funds.
Governmental Funds: The City maintains twenty-seven (27) individual governmental funds
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the General fund, ARPA
fund and Other Grants fund, which are considered to be major funds.
Proprietary Funds: The City maintains two (2) different types of proprietary funds, which are
enterprise and internal service funds. The City uses its enterprise funds to account for its water
utility and the internal service funds to account for its equipment replacement and maintenance.
Fiduciary Funds: The City maintains three (3) fiduciary funds, which are the Redevelopment
Obligation Retirement Private-Purpose Trust Fund and the Community Redevelopment Property
Trust Fund, which are combined and reported as the Successor Agency for the Paramount
Redevelopment Agency, and the City Agency Fund (Custodial Fund).
Although the City is undergoing an award of contract for a new Enterprise Resources Planning (ERP) system
expected to be awarded sometime in April or May 2026, the City's current accounting functions are
computerized using the Tyler Technologies Eden software. The applications operating on this system are
General Ledger, Accounts Payable, Accounts Receivable, Payroll, Bank Reconciliation, Cash Receipts,
Water Utilities, and Human Resources. The City participates in the California Public Employees Retirement
System (CalPERS), an agent multiple-employer plan. Actuarial services for the plan are provided by
CalPERS. The City's Annual Comprehensive Financial Reports (ACFR) and City Budgets are posted on City's
website at https://www.paramountcity.gov/government/departments/finance/.
II. SCOPE OF SERVICES REQUIRED
A. Auditing Standards to be Followed
The auditors shall be responsible for expressing an opinion on the City's financial statements, including the
governmental activities, business-type activities, each major fund, and the aggregate remaining fund
information. The audit shall be conducted in accordance with generally accepted auditing standards (GAAS)
and the standards applicable to financial audits contained in the Government Accountability Office's (GAO)
Government Auditing Standards (Yellow Book). If a Single Audit is required, the auditors shall express an
opinion on compliance in accordance with the Federal Single Audit Act and the U.S. Office of Management
and Budget (OMB) Circular A-133, Audits of State and Local Governments and Non-Profit Organizations.
The City's financial statements shall be prepared in accordance with generally accepted accounting
principles (GAAP), including all applicable pronouncements issued by the Governmental Accounting
Standards Board (GASB).
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
B. Scope of Services
The selected independent auditing firm will be required to perform the following tasks:
1. City's Financial Audit - The audit firm will perform the City's Financial Audits of the Basic Financial
Statements.
a. Management's Discussion and Analysis (MD&A) - The audit firm will also apply limited
audit procedures to Management's Discussion and Analysis (MD&A) and the required
supplementary information pertaining to the General Fund and each major fund of the City.
b. The City will submit each ACFR to the Government Finance Officers Association (GFOA)
for review of the GFOA Certificate of Achievement for Excellence in Financial Reporting
program. The audit firm shall assist and review the Government Finance Officers
Association (GFOA) comments, responses, and implementation.
2. Single Audit - The audit firm will perform a Single Audit on the expenditures of federal grants in
accordance with OMB Circular A-133 and render the appropriate audit reports on Internal Control
over Financial Reporting based upon the audit of the City's financial statements in accordance with
Government Auditing Standards and the appropriate reports on compliance with Requirements
Applicable to each Major Program, Internal Control over Compliance and on the Schedule of
Expenditures of Federal Awards in Accordance with OMB Circular A-133.
3. Agreed-Upon Procedures Applied to Appropriations Limit (GANN) - The audit firm shall perform
agreed-upon review procedures pertaining to the City's GANN Limit (Appropriations Limit) and
render a letter annually to the City regarding compliance.
4. State Controller's Report (State Controller's Cities Financial Transactions Report) - The audit firm
shall perform audit procedures of the annual State Controller's Report
5. Annual Street Report - The audit firm shall perform audit procedures of the Annual Street Report for
the State Controller's Office.
C. Reports to be Included
In compliance with the above-mentioned scope of services, the following reports, responses, and follow up
comments shall be prepared, when applicable:
1. Annual Comprehensive Financial Report (ACFR): The Annual Comprehensive Financial Report
(ACFR) and the preparation of the financial statements, schedules, and accompanying notes are to
be prepared by the audit firm for inclusion in the ACFR.
2. Single Audit Report: A Single Audit Report.
3. Agreed-Upon Procedures Applied to Appropriations Limit (GANN): A report on the review of the
City's Agreed-Upon Procedures applied to Appropriations Limit (GANN).
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
4. State Controller's Cities Financial Transactions Report: A report of the annual Cities Financial
Transactions Report for the State Controller's Office per Government Code section 53891.
5. Annual Street Report: A report of the Annual Street Report for the State Controller's Office per
California Streets and Highways Code Section 2151.
6. Other Auditor Communications or Other Governing Standards: A report on Other Auditor
Communications required by SAS or other governing standards.
a. The audit firm shall issue a separate "management letter," addressed to the City Manager
that includes recommendations for improvements in internal controls, accounting
procedures, and other significant observations that are considered to be non-reportable
conditions.
7. California Housing Successor Agencies Compliance Report: A Compliance Report for California
Housing Successor Agencies.
8. Parking Authority: A report of the City's Parking Authority.
9. Paramount Public Financing Authority: A report of the City's Paramount Public Financing
Authority.
10. Other Reports: Any reports on compliance and internal controls shall include all instances of
noncompliance.
D. Working Paper Retention
All working papers and reports must be retained at the auditor's expense for a minimum of seven (7) years,
unless the firm is notified in writing by the City of Paramount of the need to extend the retention period. The
auditor will be required to make working papers available to the City of Paramount or any government
agencies included in the audit of federal grants. In addition, the firm shall respond to the reasonable inquiries
of successor auditors and allow successor auditors to review working papers relating to matters of
continuing accounting significance.
E. Irregularities and Illegal Acts
Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or
indications of illegal acts of which they become aware of the following parties: the City Manager, the City
Attorney, the Assistant City Manager, and the Finance Director.
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
F. Special Considerations
From time to time, the auditor may be requested to perform certain agreed upon procedures to review
compliance with contractual agreements or certain provisions of the municipal code (e.g., utility users tax
audits, gross receipts audits, etc.). Prior to the commencement of these agreed upon procedures, the
estimated cost will be provided and shall not exceed the quoted hourly rates.
The auditors are expected to keep the City informed of new state and national developments affecting
governmental finance and reporting standards and trends, including upcoming GASB pronouncements and
provide advice for extraordinary transactions. This shall include one (1) formal updating session per fiscal
year with the selected members of the City's financial accounting staff. If there is a charge for this, the cost
must be separately identified in the firm's cost proposal.
The City of Paramount will send its Annual Financial Report to the Government Finance Officers Association
of the United States and Canada for review in its Certificate of Achievement for Excellence in Financial
Reporting program. The Auditor will be required to provide special assistance to the City of Paramount to
meet the requirements of this program.
G. Subcontracting
Should any auditing firm submitting a proposal consider subcontracting portions of the engagement, that
fact must be clearly identified in the proposal along with the name of the proposed subcontracting firms.
Following the award of the audit contract, no additional subcontracting will be allowed without the express
prior written consent of the City of Paramount.
III. TIME REQUIREMENTS
A. Audit Schedule
Audit planning, including all necessary planning for documentation of systems of internal control and
compliance and transaction testing should be completed during the interim stage in June of each year. The
City performs sixty (60) days of accrual and posts in July and August of each year. It is expected that the City
will close its books and be ready for the final audit by the end of September or the beginning of October,
unless otherwise notified.
B. Entrance Conferences, Progress Reporting, and Exit Conferences
At a minimum, the following conferences should be planned and included in the overall audit plan:
i. Entrance Conference: An entrance conference should be scheduled prior to beginning interim
fieldwork.
ii. Progress Reports: Progress reports are expected on at least a monthly basis to the Director of
Finance with the Final Report, including the Management Letter.
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
iii. Exit Conference: An exit conference to summarize the results of fieldwork and to review
significant findings is expected on the last day of fieldwork or shortly thereafter.
IV. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION
A. Finance Department Assistance
The Finance Department staff will be available during the audit to assist the firm by providing information,
documentation, and explanations. The preparation of confirmations will be the responsibility of the City,
with the assistance of the auditor.
B. Work Area, Telephone, and Office Equipment
The City will provide the auditor with reasonable workspace, desks, and chairs. The auditor will also be
provided with access to a telephone, internet connectivity, a computer with access to the general ledger
system, and photocopying machines.
C. Report Preparation
The preparation, editing, printing, tabbing, and binding of reports shall be the responsibility of the auditor.
The City will require fourteen (14) printed copies, including PDFs and electronic files, of the City's ACFR for
its elected officials and executive staff.
i. Five (5) printed copies - Elected Officials
ii. Four (4) printed copies - City Manager, Assistant City Manager, City Attorney, and City Clerk
iii. Five (5) printed copies - Department Directors
V. DETAILED PROPOSAL FORMAT AND CONTENTS
A. Submittal Information and Instructions
All questions about this proposal and/or the submittal process should be directed to Financial Services
Manager Anthony Martinez at amartinez@paramountcity.gov. The subject line must read as follows: "City
of Paramount RFP Auditing Services - Question Title." For example, "City of Paramount RFP Auditing
Services - Scope of Services"
All hard copy bid proposals (Detailed and Cost Proposals) shall be sent to the following address:
City of Paramount - Finance Department
Attn: Anthony Martinez, Financial Services Manager
16400 Colorado Avenue
Paramount, CA 90723
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
All PDF copy bid proposals must be submitted via email to the Finance Department at
amartinez@paramountcity.gov with the subject line of the email shall read, "City of Paramount RFP
Auditing Services - Your Company/Firm Name."
Both hard copy and electronic bid proposals must be received no later than Friday, May 8, 2026, before 5
p.m. (PST). All proposals received after that time will not be accepted.
Request for Proposals Issued April 2, 2026
Due Date to Submit Proposals May 8, 2026, Before 5:00 P.M. (PST)
Virtual/In-Person Interviews at City's Discretion TBD
Notification of Recommended Selection TBD
Contract Awarded by the City Council TBD
Annual Timeline to Consider:
Commencement of Interim Audit TBD
Commencement of Fiscal Year Audit TBD
ACFR presentation to Council TBD
B. Format of Detailed Proposal
The format of the Detailed Proposal shall be as follows:
1. Title Page
The title page must show the Request for Proposals subject, name of the audit firm, local address,
telephone number, name, title, date of submission, and email address of the primary point of
contact.
2. Table of Contents
The table of contents should include a clear and complete identification of the materials submitted
by section and page number, cross-referencing the sections and page numbers in the Request for
Proposals.
3. Transmittal Letter
The transmittal letter should include a general introduction that briefly states the Proposer's
understanding of the audit services to be performed. Also, a positive commitment to perform the
service within the specified period, the name(s) of the person(s) authorized to represent the
Proposer, the title, the address, and the telephone number.
4. Detailed Proposal
The Detailed Proposal should follow the order outlined in Section V - C: Contents of Detailed
Proposal
5. Auditor Information Sheet
The Auditor Information Sheet must be submitted
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
6. Cost Bid
The Request for Proposals should include the requested fee schedules.
7. Appendices or Exhibits
Any appendices or exhibits should be included as needed.
C. Contents of Detailed Proposal
The purpose of the Technical Proposal is to demonstrate the qualifications, competence, and capacity of
the auditing firm seeking to undertake an independent audit of the City of Paramount in conformity with the
requirements of this Request for Proposals. As such, the substance of proposals will carry more weight than
the form or manner of presentation.
The Technical Proposal should demonstrate the qualifications of the firm and of the staff to be assigned to
this engagement. It should also specify an audit approach that will meet the request for proposals
requirements.
The Technical Proposal should also address all points outlined in the Request for Proposals. The cost
information should only be included in the Cost Proposal Section. No dollar amounts should be included in
the Technical Proposal.
The proposal should be prepared simply and economically, providing a straightforward, concise description
of the proposer's capabilities to satisfy the requirements of this request for proposals.
While additional data may be presented, the following subjects must be included. They represent the
criteria against which the proposal will be evaluated.
1. Independence
The audit firm should provide an affirmative statement that it is independent of the City of Paramount as
defined by generally accepted auditing standards/the U.S. General Accounting Office's Government
Auditing Standards.
The firm also should provide an affirmative statement that it is independent of all the component units of
the City of Paramount as defined by those same standards.
The audit firm should also list and describe the firm's professional relationships involving the City of
Paramount or any of its component units/agencies, for the past five (5) years, together with a statement
explaining why such relationships do not constitute a conflict of interest relative to performing the proposed
audit.
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CITY OF PARAMOUNT FINANCE DEPARTMENT
16400 Colorado Avenue, Paramount, California 90723 www.paramountcity.gov
2. License to Practice
An affirmative statement must be included verifying the firm and all assigned key professional staff that are
properly licensed to practice in the State of California.
3. Business License
The audit firm selected is required to possess a City of Paramount Business License while conducting any
work for the City under the contract.
4. Indemnification and Insurance
The audit firm selected shall demonstrate its willingness and ability to possess and provide the required
indemnification and insurance coverage as described in Section 10 and Section 12 of the Agreement for
Professional Services, which is attached to this Request for Proposals.
5. Firm Qualifications and Experience
To qualify, the audit firm must have extensive experience in audits of local governments, as well as
experience with preparation of the Annual Comprehensive Financial Reports prepared in accordance with
Generally Accepted Accounting Principles (GAAP). The audit firm should state the size of the firm, the size
of the firm's governmental audit staff, the location of the office from which the work on this engagement is
to be performed, and the number and nature of the professional staff to be employed in this engagement on
a full-time basis and the number and nature of the staff to be so employed on a part-time basis. Staff
consistency is an important consideration.
The audit firm must provide a list of all current municipal clients. The audit firm is also required to submit a
copy of a report on its most recent external quality control review (peer review), with a statement whether
that quality control review included a review of specific government engagements (required by current
Government Audit Standards).
The audit firm shall also provide information on the results of any Federal or State desk reviews or field
reviews of its audits during the past three (3) years. The audit firm shall provide information on the
circumstances and status of any disciplinary action taken or pending against the firm during the past three
(3) years with State regulatory bodies or professional organizations.
6. Partner, Supervisory, and Staff Qualifications and Experience
The audit firm should identify the principal supervisory and management staff, including engagement
partner, manager, specialists, and other supervisors who would be assigned to the engagement and
indicate whether each such person is registered or licensed to practice as a certified public accountant in
the State of California. The firm should provide information on the government auditing experience of each
person, including information on relevant continuing professional education for the past three (3) years and
membership in professional organizations relevant to the performance of this audit.
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