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STATUS UPDATE ON THE INTERNAL AUDITING SERVICES REQUEST FOR PROPOSALS
recommended action
RECOMMENDATION
Informational only.
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Summary
This item provides the Council Audit Committee (CAC) with a status update on the Request for Proposals (RFP) for Internal Auditing Services.
DISCUSSION
Background
In September 2025, the CAC reviewed and approved the scope of work and issuance of a Request for Proposals to competitively procure Internal Auditing Services in accordance with Article XV of the City Charter. The RFP (Attachment A) was subsequently released, and seven (7) proposals were received by the November 20, 2025 deadline.
Staff are conducting a detailed review of the submitted proposals and are preparing a recommendation for consideration by the CAC. As this is a Charter-established office, the selection process includes direct review and consideration by the CAC, with final contract approval by the City Council.
Present Situation
Consistent with the process outlined to the Committee in September, staff released the RFP to solicit qualified firms capable of performing the full range of Charter-required auditing services, including:
• Annual audit planning
• Performance audits
• Financial and compliance audits
• Administration of the Ethics, Fraud, Waste, and Abuse Hotline
• Internal control reviews
• Quarterly and annual reporting
• Special projects and investigations
• Consultation services
Seven proposals were received in November 2025. Staff are currently reviewing and scoring proposals based on qualifications, municipal auditing experience, technical approach, staffing, and cost. Given the unique nature of this procurement involving a Charter-established office, the RFP process is being administered by staff; however, the Council Audit Committee will be provided access to all submitted proposals after the initial review is complete. Procurement has outlined the following next steps:
1. The evaluation team completes proposal scoring and submits results to Procurement.
2. Procurement compiles a master scorecard, inclusive of cost proposals, and returns it to the Program Manager.
3. The Program Manager submits the master scorecard and supporting materials to the Council Audit Committee.
4. The Council Audit Committee reviews staff’s recommendation and, if in agreement, forwards its recommendation to the full City Council for award consideration.
5. Upon Council approval, staff will proceed with contract development and execution.
In addition, staff anticipate coordinating interviews with selected finalist firms, as appropriate, prior to final Committee consideration.
This process preserves a competitive and transparent procurement approach while recognizing the Council Audit Committee’s oversight role and the City Council’s authority to approve the contract for this Charter-established function.
Attachment A - Internal Auditing Services RFP