Fiscal Auditor Selection

1. APPROVE and AUTHORIZE the Executive Director to execute contract with Moss, Levy & Hartzheim, in an amount not to exceed $117,255 to provide auditing services for the period ending June 30, 2023;
2. APPROVE the use of planning (overhead), Regional Development Impact Fee and Measure X funds budgeted to this purpose); and
3. AUTHORIZE the Executive Director to take such other further actions as may be necessary to fulfill the intent of the contract, including approvals of future modifications or amendments that do not significantly alter the scope of work, or change the approved contract term or amount.

In October 2017, the Board authorized the release of a Request for Proposals to solicit bids from auditors to perform the next 5-year cycle of annual fiscal audits. The CPA firm of Moss, Levy & Hartzheim submitted the lowest responsive proposal.

The proposed contract would cost $23,265 per year for the first three years and $23,730 for the following two years for a total of $117,255 over 5 years. There are sufficient funds in the budget to cover this expense on an annual basis.

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, 6666, and 6751 of the California Regulations Code. A Request for Proposal process was followed to select an audit firm to complete the Agency’s annual fiscal audits for the five-year cycle beginning with fiscal year 2017-2018.

An annual fiscal audit is also required for the Regional Development Impact Fee Joint Powers Agency and the Transportation Safety & Investment Plan Account (Measure X).

Staff sent the Request for Proposals to twelve qualified audit firms, and received five proposals from responsible firms.

A committee composed of two Agency staff, and financial staff from two public agencies was formed to review the five proposals received. Upon review, it was the consensus of the committee that Moss, Levy & Hartzheim was the best choice as auditors. The low bid that was both responsive and responsible was submitted by Moss, Levy & Hartzheim, an amount of $22,265 a year for the first three years and $23,730 for the next two years.

It is Staffs’ recommendation to APPROVE selection of Moss, Levy & Hartzheim, Certified Public Accountants of Santa Maria, California, to prepare annual Transportation Development Act, Regional Development Impact Fee Joint Powers Agency and Transportation Safety & Investment Plan Account compliance and audit reports for five years beginning with fiscal year 2017-2018 through fiscal year 2021-2022, and AUTHORIZE Executive Director to negotiate and execute an Agreement with the CPA firm not to exceed the amount of $23,265 per year for the first three years and $23,730 for the following two years for a total of $117,255 over 5 years.