ANNUAL INDEPENDENT AUDIT SERVICES

The City of Monterey is requesting proposals from qualified firms of certified public accountants to audit its financial statements for three fiscal years beginning with the fiscal year ending June 30, 2025, with the option of extension for up to two additional fiscal years. These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the General Accounting Office's (GAO) Government Auditing Standards (2018), the provisions of the federal Single Audit Amendments Act of 1996 and U.S. Office of Management and Budget (OMB), Audits of States, Local Governments and Non-Profit Organizations .

An initial three-year contract, with the option of extending for up to two additional one-year terms is contemplated. For each contract year, one fiscal year audit – beginning with the fiscal year ending June 30, 2025 – shall be completed by the auditor. The City of Monterey reserves the right to terminate this contract with not less than thirty (30) days prior written notice.

There is no expressed or implied obligation for the City of Monterey to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

The City of Monterey is a charter city, incorporated in 1850, and operates under the council/manager form of government. The City of Monterey serves an area of 9 square miles with a population of approximately 30,000. The City of Monterey's fiscal year begins July 1 and ends on June 30. The current operating budget is $197 million across all funds.

Services provided by the City of Monterey include public safety (police and fire), public works (harbor and streets), planning and zoning, recreation and leisure, library, museums, housing and community development, public facilities, and general administration. The City also contracts to provide fire services for the neighboring cities of Pacific Grove and Carmel, La Mesa Village, and the Monterey Airport District.

The City contracts with the Department of the Army to provide maintenance and related services to the Presidio of Monterey. This contract is subject to Single Audit requirements. In addition, the City of Monterey receives grants from the Department of Housing and Urban Development, including Community Development Block Grants and the Home Investment Partnerships program, Capitalization Grants for Clean Water State Revolving Funds, and various other grants that are subject to inclusion in the City's Single Audit, which is included in the work subject to this solicitation. Total federal grant-related and Army contract-related expenditures for the fiscal year ended June 30, 2024 were $1.9 million and $169 million, respectively.

The City of Monterey has a total budgeted payroll of $106.5 million covering 476.75 fulltime or regular part-time positions and varying levels of temporary employees for the 2024/25 fiscal year. The City of Monterey is organized into ten departments. The accounting and financial reporting functions of the City of Monterey are centralized.

Budgetary and financial information on the government, including the City’s ACFR, can be found on the City’s web site ( www.monterey.org ).