APPROVE Request for Proposals to solicit an audit firm to prepare annual Transportation Development Act compliance and audit reports for the Transportation Agency for Monterey County, the Regional Development Impact Fee Joint Powers Agency and Transportation Safety and Investment Plan for a period of five years beginning fiscal year 2017-2018 through fiscal year 2021-2022, and direct staff to release the Request for Proposals to potential independent audit firms.

The State Transportation Development Act requires annual audits of the activities of the Transportation Agency for Monterey County, as described in sections 99243.5 and 99245 of the California Public Utilities Code, and sections 6661, 6662, 6664, 6665, 6666, and 6751 of the California Regulations Code. An annual audit is also required for the Regional Development Impact Fee Joint Powers Agency and Transportation Safety and Investment Plan. The Request for Proposal process is necessary to select an audit firm to complete the Agencies annual fiscal audits for the next five-year cycle.

The last five-year cycle of annual fiscal audits for the Transportation Agency for Monterey County cost $19,015 per year for the first three years and $19,985 for the last two years. Cost of the Regional Development Impact Fee Joint Powers Agency audit was $2,500 per year. Due to the passage of Measure X, additional audits will also be required for the Transportation Safety and Investment Plan.

On March 27, 2013, after the completion of a Request for Proposal process, the Board selected the audit firm currently employed by the Agency. It is now time to begin a Request for Proposal process to select an audit firm to complete annual fiscal audits for five-year period beginning with the audit of fiscal year 2017-2018.

If approved by the Board, the Request for Proposals would be released on Monday, November 6, 2017 (see attached Scope of Work). Proposals would be due to the Agency staff on Thursday, December 14, 2017, no later than 12:00 p.m. A committee of Agency staff and staff from member agencies will review the proposals and present a recommendation to the Board for approval no later than Wednesday, March 28, 2018.

The five-year cycle period has worked well for several reasons. It provides for possible turnover in audit firms. It provides a new audit firm with enough time to become familiar with Agency fiscal procedures and begin to make recommendations to improve them. It is a financial incentive to get CPA firms to submit proposals to know that if they perform well, they will be able to prepare the annual audits for up to five years.