Annual Financial Audit Request for Proposal

REQUEST FOR PROPOSALS
FOR AUDIT SERVICES
RFP Issue Date: Thursday, May 21, 2026
RFP Submittal Deadline: Monday, June 15, 2026
5:00 p.m. PDT
Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678
Attn: Sondra Ainsworth, Audit Services Proposal
Documents available online at:
www.ncpa.com

1. Scope of Services
The Northern California Power Agency (NCPA or Agency) is soliciting proposals for qualified,
independent certified public accountants to perform the annual audit of the financial statements,
including associated reporting for the Agency, and potentially other audit services, if and as
requested by the Agency. The Agency intends to award a contract for a three-year term for fiscal
years 2026, 2027, and 2028. At the sole option of the Agency, it is subject to renewal options as
further described herein.
The proposing Certified Public Accounting firm, for and in consideration of the payment to be
made to it as hereinafter provided, hereby agrees to furnish all labor, material, and equipment
necessary or required for the work described as Northern California Power Agency audit services,
in strict conformity with the terms and conditions of the Agreement. The Proposal submitted by
the Certified Public Accounting firm and the terms, conditions, and scope of services, included in
Request For Proposal are hereby incorporated as a part of this Agreement by reference, to the
same extent as if they were fully set forth herein; a sample NCPA Agreement is included in
APPENDIX A.
The Agency seeks a collaborative and professionally independent audit relationship focused on
timely, accurate, and high-quality audit services. The Agency has no interest in the manner or
methods the Certified Public Accounting firm may employ to accomplish the results to be
achieved, which shall be left to the sole and exclusive direction and control of Certified Public
Accounting firm provided that such manner and method conforms with the standards for
performance set forth in the Agreement (agreement template in Appendix A) and with all laws,
rules and/or regulations applicable to the performance of such services.
1.1 Overview of the Agency
NCPA was formed in 1968 as a joint powers agency of the State of California and consists of 16
members. The Agency is generally empowered to purchase, generate, transmit, distribute, and
sell electrical energy.
The Agency's project construction and development programs have been individually financed by
project revenue bonds that are collateralized by the Agency's assignment of all payments,
revenues, and proceeds associated with its interest in each project. Certain revenue bonds may
be additionally supported by municipal bond insurance credit enhancements. Each project
participant has agreed to pay its proportionate share of debt service and other costs of the related
project, notwithstanding the suspension, interruption, interference, reduction or curtailment of
output from the project for any reason (that is, the take or pay member agreements). Project
participants own percentage shares of the output or capability of the projects.
Members participate in the projects of the Agency on an elective basis. Various legal and tax
considerations caused the Agency to provide that separate not-for-profit corporations should be
delegated by the Agency to own the geothermal electrical generating projects undertaken by the
Agency. These Associated Power Corporations, Northern California Municipal Power
Corporations Nos. Two and Three, have delegated to the Agency the authority to construct,
operate and manage their respective geothermal plants and related assets. The Agency, in return
for financing the costs of acquisition and construction, acquires all the capacity and energy
generated by the plants. The Associated Power Corporations have no employees and have no
other operations.
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The Agency and the Associated Power Corporations are intended to operate on a not-for-profit
basis. Therefore, any balance in Accumulated Net Revenues primarily represents differences
between total revenues collected, using collections based on estimated operating expenses and
debt service, and the total actual expenses incurred. In subsequent periods of operation, excess
collections (net of encumbrances) that the participants do not direct to be held by or released to
the Agency for expenditure by the Agency are refunded to the participants. In the event the
Agency incurs an Accumulated Net Expense balance, the balance would be subject to recovery
in participant collections under the terms of the related take-or-pay Member Agreements.
Power sales to participants for their resale include both power generated by operating plants and
power purchased from outside sources. Collections for power sales are designed to recover costs
that include budgeted annual operating costs and debt service. Additional amounts for operating
reserves or rate stabilization may be included in collections under the terms of bond indentures.
During fiscal years 2024 and 2025, no amounts were specifically collected for rate stabilization.
As a participant in the California deregulated wholesale power market, from time to time the
Agency buys or sells power, transmission or fuel under forward market, fixed price contractual
arrangements to manage its loads, resources and energy price risk. The Agency does not enter
into these agreements solely for trading purposes. Such arrangements are normal purchases
and sales subject to settlement at their actual cost.
The Agency's collections for electric service are not subject to the regulatory jurisdiction of the
California Public Utilities Commission (CPUC) or the Federal Energy Regulatory Commission
(FERC). Rather, the Agency's collections are established annually in connection with its budget,
which is approved by its governing Commission.
The Agency is governed by a Commission comprised of one representative for each member.
The Commission is responsible for the general management of the affairs, property, and business
of the Agency. Under the direction of the General Manager, the staff of the Agency is responsible
for providing various administrative, operating and planning services for the Agency.
For accounting purposes, NCPA is a special-purpose governmental entity that is engaged in a
business-type activity, principally as a supplier of wholesale electricity and transmission to its
member participants. As such, the Agency's financial statements are presented as an enterprise
type fund, that is, similar in most respects to the financial statements of a private sector for-profit
entity involved in the same kind of business.
NCPA's accounting and investment functions are performed by the Finance Department. The
records of the Agency and its Associated Power Corporations are maintained substantially in
accordance with the FERC Uniform System of Accounts. Accounting principles generally
accepted in the United States of America are applied by the Agency in conformance with
pronouncements of the Government Accounting Standards Board (GASB) and, where not in
conflict with GASB pronouncements, the Financial Accounting Standards Board (FASB)
pronouncements issued on or before November 30, 1989. The combined financial statements
encompass the Agency and Associated Power Corporations on an accrual accounting basis. All
significant intercompany balances and transactions have been eliminated from the combined
amounts reported.
The Agency's financial database is maintained on Microsoft Dynamics GP (Great Plains) software
system, along with other data systems by the Agency's Information Technology group.
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The Agency's fiscal year is July 1 to June 30. Additionally, there have been no disagreements in
connection with matters of accounting principles and, in fact, NCPA has continued to receive
unqualified opinions.
1.2 Significant Agency Parameters
* NCPA is a joint powers public entity whose headquarters is located in Roseville, CA.
* The Agency and its 16 members are not-for-profit entities (most public entities).
* Accounting based on FERC Uniform Chart of Accounts-not Fund Accounting.
* Generating and Transmission Projects are supported by Take-Or-Pay contracts.
* Projects are in four locations: Geothermal (Geysers Area) near Middletown, CA;
Hydroelectric (North Fork Stanislaus River) near Murphys, CA; Combustion Turbine
No. One (two locations), Lodi, and Alameda; CA; Combustion Turbine No. Two and
Lodi Energy Center, Lodi, CA.
* The NCPA fiscal year begins July 1 and ends June 30 of the following year.
* The Agency utilizes Microsoft GP (Great Plains) software for accounting purposes.
* The Agency's Information Systems group develops, operates, and maintains
sophisticated software for its own use.
* Approximately 155 employees.
* NCPA processes timesheets internally and integrates data with a third-party payroll
service provider.
1.3 Project Location
NCPA Headquarters: 651 Commerce Drive, Roseville, CA 95678
1.4 Required Audit Services
NCPA desires the auditor to express an opinion on the fairness of presentation of its combined
statements of net position, statement of revenues, expenses, and changes in net position, and
statements of cash flow in conformity with generally accepted accounting principles. The auditor
is not required to audit the individual statements of the Northern California Power Agency and
Associated Power Corporations.
The audit shall be conducted in accordance with auditing standards generally accepted in the
United States of America (GAAS), Government Auditing Standards issued by the Comptroller
General of the United States, applicable Governmental Accounting Standards Board (GASB)
pronouncements, and other applicable professional standards.
Required Audit Products
Draft reports shall be provided electronically for Agency review prior to issuance of final reports.
For each fiscal year end, June 30, the Proposer shall provide the Agency with the following
formal documents:
* Report on the Combined Financial Statements
* Negative assurance for Supplementary Combining Information
* Report on Internal Control and Related Matters / Management Letter
* Required communications to those charged with governance, including significant audit
findings, uncorrected misstatements, internal control matters, and qualitative accounting
issues.
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* Negative assurance for Certain Bond Indenture of Trust Provisions (No Default)
* Report on Compliance with the Agency's Investment Policy
* Report and discussion on audit with Finance Committee
* Consent to use audited financial statements in bond offerings and on the Agency's
Website.
Audit Role of Agency
NCPA recognizes that assistance from its Treasurer-Controller staff during an audit conducted by
an external auditor will reduce the cost of an audit. Agency staff will provide the normal Prepared
by Client work papers in the same format provided to the current auditor in past years. NCPA
Treasurer-Controller staff members write the Management Discussion and Analysis (MD&A),
footnotes to the financial statements, and required supplementary information.
Prior Year Audit Working Papers
Baker Tilly US, LLP is the current audit firm for the Agency. The successful bidder will be
responsible for arranging any review of the prior year's work papers, which the Agency will
approve in advance.
The successful proposer shall retain audit documentation in accordance with applicable
professional standards and make relevant working papers available to successor auditors and
authorized oversight agencies upon request
Bond Indenture Requirements
The Agency's Indentures of Trust require an independent annual audit and no default letter to be
filed with the Trustee within 120 days after the close of the fiscal year. In addition to ability to
meet the schedule, the Certified Public Accounting firm performing the audit must demonstrate
experience and recognized professional standing in providing audit services to public power
agencies, joint powers authorities, or similarly complex governmental enterprise entities. In order
to meet the schedule for the production of the Agency's Annual Report, it is required that the
reports of independent auditors, which includes the audited combined financial statements, need
to be issued by October 10th of each year.
Fixed Price, Not-To-Exceed Amount for Annual Audit Services
The Agency intends to award a contract for a three-year term for audit services for fiscal years
ended June 30 of 2026, 2027, and 2028. Each annual audit will be based on a fixed not-to-
exceed fee for the audit services. The agreed-upon fees shall constitute the maximum
compensation for the services described unless additional services are separately authorized by
the Agency. In addition, at the sole option of the Agency, the Agreement is subject to two
additional three-year renewals. The fee proposal shall address the annual audit not-to-exceed fee
for each of the years covered by the Agreement.
1.5 Additional Services
Consulting or Other Work
The audit firm retained by the Agency shall not perform consulting or other nonaudit services for
the Agency unless such services are separately requested and approved in advance by the
Agency. The audit firm may, however, be retained by the Agency's underwriters or other parties
acting on behalf of the Agency in connection with bond defeasance escrow verification or similar
financing-related services, subject to prior Agency approval.
The audit firm shall disclose any existing or proposed relationships, engagements, or nonaudit
services that may reasonably be perceived to bear on the firm's independence. Any significant
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nonaudit services provided to the Agency or related parties must be approved in advance by the
Agency and performed in compliance with applicable professional independence standards.
Federal Awards
From time to time, the Agency may receive federal awards requiring additional audit procedures
and reporting. If the Agency expends federal awards in excess of the applicable federal threshold
requiring a Single Audit during any fiscal year, the auditor shall perform such audit services in
accordance with Uniform Guidance (2 CFR Part 200, Subpart F), as amended, and any other
applicable federal requirements.
Such services may include, but are not limited to:
* Audit of the Schedule of Expenditures of Federal Awards (SEFA)
* Preparation and filing assistance related to the Data Collection Form (SF-SAC)
* Reports on compliance and internal control required under Uniform Guidance
While the Agency does not specifically anticipate federal expenditures exceeding the applicable
threshold in any given year, if such services are required, the associated fees shall be separately
negotiated and mutually agreed upon in advance.
Project Financing Activities
In addition to the auditors' consent to use audited financial statements for bond offerings, at the
sole option of the Agency, the Agency may need review work in connection with bond offerings
during the term of this Agreement. The cost of issuing a comfort letter in connection with a project
financing may vary depending on the requirements associated with the financing. The cost of an
individual comfort letter, if required, will be separately determined and agreed upon prior to the
commencement of that work. Such comfort letters will be billed separately as part of the
associated cost of financing and not as part of the audit.
Other
Consultant shall perform such other services as may be requested by the Agency.
Hourly Fees for Additional Services
For additional services that may be requested by the Agency, the Certified Public Accountant
shall provide its hourly fee schedule.
2. Instructions to Proposers
2.1 Time and Manner of Submission
Audit Proposals must be submitted by electronic means via e-mail by 5:00 p.m. PDT, on
Monday, June 15, 2026 to sondra.ainsworth@ncpa.com.
2.2 Explanations to Proposers
Should the Proposer find discrepancies in or omissions from this document, or should the intent or
meaning appear to the Proposer to be obscure or ambiguous, the Proposer may send the Agency
a written request for interpretation, clarification, or correction thereof before submitting a proposal
to:
Contact Person: Eric Siu
E-mail: eric.siu@ncpa.com
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Phone number: (916) 781-4289
Questions or comments must be received by Agency no later than 5:00 p.m. PDT, Thursday,
June 4, 2026. Please reference "Audit Services Proposals" in the communication. Responses
from Agency will be communicated via email.
2.3 Addendum
If it becomes necessary to revise or supplement any part of this Request for Proposal, a written
addendum will be issued via email to all recipients of this RFP.
2.4 Proposal Evaluation and Selection Process
The proposals submitted in response to this solicitation will be evaluated for award based on the
Evaluation Criteria described in this section. Selection will be based primarily on demonstrated
competence, qualifications, governmental electric utility audit experience, audit quality, and
responsiveness to the Agency's needs. Cost will be considered, but will not be the sole or primary
determining factor in the award.
NCPA may request additional information from any or all Proposers after the initial evaluation of
the proposals to clarify representations, terms, and conditions.
The Agency reserves the right, as the interest of the Agency may require, to reject any proposal
or to waive any irregularity in the proposals received. NCPA also reserves the right to reject all
submittals and to re-advertise or extend the deadline, if necessary.
A proposed Agreement will be forwarded to the successful Proposer. Within ten (10) calendar
days thereafter, the successful Proposer is required to deliver to the Agency the required
insurance certificates and signed copies of the Agreement. The Proposer's work may not begin
until the Agency has received all the required documents and the Agency's Commission has
formally approved thereof.
2.5 Audit Services Selection Schedule
May 21 Issuance of Request for Proposals (RFP)
June 4- 5:00 pm Deadline for Proposer Question Submittal
June 15 - 5:00 pm Deadline for Proposals from prospective audit firms
June 18 NCPA notifies Proposers of award results
July 23 Presented to NCPA Commission for approval and
award of contract
2.6 Alternate Proposals
Proposals shall meet the requirements described in this Request for Proposal. However,
Proposers may submit alternate proposals in addition to the base proposal, when they consider
the alternative to be technically better or more cost effective. The alternate proposal should be
submitted as an amendment to the base proposal package.
2.7 Proposal Preparation Costs
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The costs of developing proposals are entirely the responsibility of the Proposer and shall not be
charged in any manner to the Agency.
2.8 Notice Related to Proprietary/Confidential Data
Proposers are advised that the California Public Records Act (the "Act," Government Code
Section 6250 et seq.) provides that any person may inspect or be provided a copy of any
identifiable public record or document that is not exempt from disclosure under the Act or other
applicable law. Each Proposer shall clearly identify any information within its submission that it
intends to ask the Agency to withhold as exempt under the Act. Any information contained in a
Proposer's submission that the Proposer believes qualifies for exemption from public Disclosure
as "proprietary" or "confidential" must be identified as such at the time of the first submission of
the Proposer's response to this RFP. A failure to identify information contained in a Proposer's
submission to this RFP as "proprietary" or "confidential" shall constitute a waiver of the Proposer's
right to object to the release of such information upon request under the Act. Designation of
information as proprietary or confidential does not guarantee that the information will be withheld.
The Agency will make an independent determination under the Act.
The Agency favors full and open Disclosure of all such records. The Agency will not expend public
funds defending claims for access to, inspection of, or to be provided copies of any such records.
Along with each Proposer's response to this RFP, each Proposer is required to submit a signed
indemnity agreement, included with its response to this RFP, whereby Proposer shall agree to
indemnify and defend the Agency on terms stated therein against all claims or actions brought
against it to seek access to or compel Disclosure of any records or documents in the Agency's
possession which were submitted to the Agency by any Proposer pursuant to this RFP. The
indemnity agreement each Proposer will be required to sign and submit along with its response
to this RFP is included in the "Proposal Requirements" section of this RFP.
2.9 Audit Services Agreement
A copy of the Agency's standard Professional Services Agreement is included in this RFP, See,
Appendix A. The Agency may reject proposals that contain exceptions to the terms and conditions
included in this RFP and/or Agreement.
2.10 Manner and Time of Agreement Payment
Progress billings may be submitted monthly by written invoice with brief descriptions of discrete
milestones met or portions of the work completed to date.
2.11 Indemnification
Consultant shall indemnify, defend with counsel reasonably acceptable to the Agency, and hold
harmless the Agency, and its officials, commissioners, officers, employees, agents and volunteers
from and against all losses, liabilities, claims, demands, suits, actions, damages, expenses,
penalties, fines, costs (including without limitation costs and fees of litigation), judgments and
causes of action of every nature arising out of or in connection with any acts or omissions by
Consultant, its officers, officials, agents, and employees, except as caused by the sole or gross
negligence of Agency. Notwithstanding, should this Agreement be construed as a construction
agreement under Civil Code section 2783, then the exception referenced above shall also be for
the active negligence of Agency.
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3. Proposal Requirements
Proposals should be concise, well organized, and sufficiently detailed to permit the Agency to
evaluate the Proposer's qualifications, experience, technical approach, and ability to perform the
required services.
Required Proposal Contents
* Cover Letter
* Firm Qualifications
* Relevant Experience
* Proposed Audit Team
* Audit Methodology and Work Plan
* Peer Review Report
* Independence Statement
* Fee Proposal
* Exceptions to Agreement
* References
* Sample Engagement Letter
Cover Letter Format
PROPOSER:
Company:
Address:
Signed: Title:
Print Name: Telephone: ( )
E-mail:
Date:
PLEASE SUBMIT BRIEF RESPONSES TO THE FOLLOWING:
3.1 Evaluation Criteria 1 - Relevant Governmental Electric Utility Audit Experience
a. Experience
(1) Describe your firm's experience in auditing local governmental electric
utilities and/or joint powers agencies financed with public offerings, especially
municipal bonds, insured municipal bonds, interest rate swaps, or other
derivatives related to financial contracts.
(2) Provide a list of joint powers agency, electric utility, local government, or
other pertinent clients and the type of work performed that you believe may
be of relevant value in performing the Agency's audit.
(3) Describe your firm's experience auditing clients that follow the FERC Uniform
Chart of Accounts, GASB (proprietary-not fund accounting) and FASB
(issued on or before November 30, 1989) accounting rules.
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(4) Describe the firm's experience auditing information technology general
controls, cybersecurity-related financial reporting risks, and integrated
financial systems within governmental utility environments.
(5) Please attach to your proposal a copy of the engagement letter you plan to
use or provide a copy of any boilerplate paragraphs you plan to incorporate
into the engagement letter.
(6) Provide a copy of the firm's most recent external peer review report, letter of
comment, and the firm's response, if applicable.
b. Alliances. Describe any alliances with other CPA firms, subcontractors, or
consultants (i.e., industry specialists, actuaries, etc.) you expect to utilize in
providing audit services for the Agency. Please give the name of the firm and
the nature of the work.
c. Professional Standing. The Agency requires audit services to be performed
by a CPA firm with demonstrated experience and recognized professional
standing in providing audit services to public power agencies, joint powers
authorities, or similarly complex governmental enterprise entities.
d. Official Statements. Describe your firm's requirements for the Agency's use
of audited financial statements in connection with the issuance of municipal
bonds or other public offerings.
3.2 Evaluation Criteria 2 - Qualifications of Proposed Team
State the names, titles, and home office of the audit team you plan to use and describe team
members' relevant qualifications and experience, as applicable.
Describe the firm's approach to engagement partner and senior management rotation to
maintain audit independence and objectivity.
3.3 Evaluation Criteria 3 - Audit Approach and Ability to Meet the Audit Schedule
Describe the firm's proposed audit approach and methodology, including risk assessment
procedures, use of technology and data analytics, internal control evaluation, staffing
approach, coordination with Agency personnel, and quality control review process.
Various Agency agreements, including bond indentures, require an annual audit to be
completed and published no later than 120 days after each fiscal year end, June 30. To meet
this schedule and the schedule for the production of the Agency's Annual Report requires that
your Report of Independent Auditors be issued no later than October 10th .
Please briefly outline in your proposal audit milestones and approximate dates that your firm
will expect to meet in connection with the Agency's audit schedule, e.g. interim work, pre-audit
arrangements, fieldwork start and end dates, partner and outside partner reviews, and opinion
issuance date. Assume prompt responses by the Agency.
3.4 Evaluation Criteria 4 - Technical Expertise and Industry Knowledge
Describe the firm's demonstrated technical expertise and industry knowledge relevant to the
Agency's operations, including experience with governmental electric utilities, joint powers
authorities, FERC Uniform System of Accounts, GASB enterprise fund accounting, municipal
bond financing structures, information technology general controls (ITGCs), cybersecurity-
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