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DISCUSSION AND RECOMMENDATION TO MOVE FORWARD THE TOP 2 INTERNAL CITY AUDITOR PROPOSALS TO THE CITY COUNCIL
recommended action
RECOMMENDATION
Staff presents information to the Council Audit Committee for discussion and recommendation to move forward the top 2 Internal City Auditor proposals to the City Council.
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Summary
In the fall of 2012, following the retirement of the long-time City Auditor, the City Council decided to pursue internal audit services by contract. The City issued a Request for Proposals (RFP) to conduct a risk assessment and internal control review and to provide the services of the City Auditor. In early 2013, Moss Adams was selected through the RFP process as the firm to carry out the initial projects, create an aggressive Internal Audit Plan and provide internal audit services.
Now that the initial contract with Moss Adams has expired, staff prepared an RFP to solicit proposals for a new five-year contract. Through this competitive process, UHY Advisors Mid-Atlantic, Inc. received the highest ranking based on the criteria for their written proposals (Attachments A and B) and Plante Moran received the 2nd highest ranking (Attachments C and D).
DISCUSSION
Background
In anticipation of the expiration of the previous contract for internal audit services, staff prepared an RFP to solicit proposals for a new five-year contract. While the City has had a positive experience in terms of internal audit services, it is worth noting that the RFP requirements considered lessons learned over the course of these contracted years. On October 9, 2025, the City advertised an RFP for internal auditing services.
On November 20, 2025, the City received seven proposals, to which staff conducted an initial review to confirm the process was competitive and would produce the best possible candidates. Following this initial review, it was determined that each proposal represented strongly qualified candidates and that the process would produce the desired outcome for the City.
A committee evaluated the proposals based on each firm’s qualifications, method of approach, schedule and delivery criteria, and demonstrated experience providing internal auditing services for municipalities. The following table illustrates the proposals received, their final combined scores, and their average hourly rate for their services:
|
Proponent |
Final Combined Scores |
Average Hourly Rate |
|
1. UHY Advisors Mid-Atlantic, Inc. |
91.33 |
$192.00 |
|
2. Plante Moran |
90.15 |
$246.67 |
|
3. Arroyo Associates, Inc. |
78.44 |
$214.98 |
|
4. Eide Bailly |
77.76 |
$277.78 |
|
5. GPP Analytics, Inc. |
76.73 |
$207.00 |
|
6. Miller Kaplan |
71.33 |
$160.00 |
|
7. Protiviti Government Services |
61.33 |
$282.50 |
UHY Advisors Mid-Atlantic, Inc. received the highest ranking, based on the noted criteria for their written and price proposals. UHY Advisors Mid-Atlantic, Inc. not only provided high quality materials and references, but they are the only firm that explicitly stated that they had working knowledge of the Tyler Munis ERP (Enterprise Resource Program) that the City utilizes. UHY Advisors Mid-Atlantic, Inc. has much broader experience in carrying out the specific role of City Auditor for a number of other California cities and municipalities. These California cities and municipalities include:
- City of Los Angeles Department of Building and Safety
- City of Los Angeles Economic & Workforce Development Department
- City of Los Angeles, Office of the Controller
- City of Los Angeles Harbor Department
- Los Angeles Unified School District
- County of Riverside
- County of San Bernardino
- County of Orange
UHY Advisors Mid-Atlantic, Inc. also offered a deep resource pool of experienced and certified auditors in a variety of specific areas of expertise relevant to anticipated performance and control audits planned for the City. In addition, UHY Advisors Mid-Atlantic, Inc. proposed a desired approach to finding solutions to issues identified in the City and improving operations that represent a strategic fit with the City to continue shoring up our internal control, policy and process environment in a productive way.
Plante Moran currently stands as the second highest scoring proponent when compared to UHY Advisors Mid-Atlantic, Inc. Plante Moran provided an impressive proposal with quality details and information. Plante Moran is a large firm comprised of over 3900 staff members, with the ability to pull knowledge from their diverse group of employees. They have worked with numerous other cities and municipalities totaling over 500 government clients since their inception in 1924, which has provided an undeniable amount of expertise. A short list of these clients in California is:
- City of Concord
- City of Mountain View
- City of Milpitas
- City of Daly City
- County of Sonoma
FINANCIAL SUMMARY
The estimated cost of a 5-year contract with UHY Advisors Mid-Atlantic, Inc. is $2,062,608. This proposed contract price is in line with the total expenditure of the previous Internal Audit contract, estimating a 3% price increase. A proposed contract with Plante Moran has an estimated cost of $2,649,914 through the course of a 5-year contract, estimating over a 30% price increase when compared to the City’s previous contract (Attachment E).
Attachment A - UHY Advisors Mid-Atlantic, Inc. Technical Proposal
Attachment B - UHY Advisors Mid-Atlantic, Inc. Cost Proposal
Attachment C - Plante Moran Technical Proposal
Attachment D - Plante Moran Cost Proposal
Attachment E - Average Total Cost