INDEPENDENT THIRD-PARTY AUDIT OF PAYROLL AUDIT DIVISION

Agency:	City of Berkeley
State:	California
Type of Government:	State & Local
NAICS Category:	541211 - Offices of Certified Public Accountants 541611 - Administrative Management and General Management Consulting Services
Posted Date:	Mar 19, 2024
Due Date:	Apr 17, 2024
Solicitation No:	24-11660-C
Bid Source:	Please Login to View Page
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Finance Department

General Services Division

REQUEST FOR PROPOSALS (RFP)

Specification No. #24-11660-C

INDEPENDENT THIRD-PARTY AUDIT OF PAYROLL AUDIT DIVISION

PROPOSALS WILL NOT BE OPENED AND READ PUBLICLY

Dear Proposer:

The City of Berkeley is soliciting written proposals from qualified firms or individuals for whistleblower hotline and

case management software. As a Request for Proposal (RFP) this is not an invitation to bid and although price is

very important, other factors will be taken into consideration.

The project scope, content of proposal, and vendor selection process are summarized in the RFP (attached).

Proposals must be received no later than 2:00 pm, on Wednesday, April 17, 2024. Proposals are to be sent via

email with the “Specification No. #24-11660-C” and “Independent Third-Party Audit of Payroll Audit

Division” clearly indicated in the subject line of the email. Please submit one (1) PDF of the technical Proposal with

the filename saved as, “Proposal Vendor Name – SPEC #24-11660-C Independent Third-Party Audit of Payroll

Audit Division.” Corresponding pricing proposal shall be submitted as a separate document with the filename saved

as, “Pricing Vendor Name – SPEC #24-11660-C Independent Third-Party Audit of Payroll Audit Division.”

Email Proposals to:

City of Berkeley

Finance Department/General Services Division

purchasing@berkeleyca.gov

Proposals will not be accepted after the date and time stated above. Incomplete proposal or proposals that do not

conform to the requirements specified herein will not be considered. Issuance of the RFP does not obligate the City

to award a contract, nor is the City liable for any costs incurred by the proposer in the preparation and submittal of

proposals for the subject work. The City retains the right to award all or parts of this contract to several bidders, to

not select any bidders, and/or to re-solicit proposals. The act of submitting a proposal is a declaration that the

proposer has read the RFP and understands all the requirements and conditions.

For questions concerning the anticipated work, or scope of the project, please contact Erin Mullin, Whistleblower

Program Manager, via email at EMullin@berkeleyca.gov no later than Wednesday, April 3, 2024. Answers to

questions will not be provided by telephone or email. Answers to all questions or any addenda will be posted on the

City of Berkeley’s site at Bid & Proposal Opportunities | City of Berkeley (berkeleyca.gov). It is the vendor’s

responsibility to check this site. For general questions concerning the submittal process, contact purchasing at 510-

981-7320.

We look forward to receiving and reviewing your proposal.

Sincerely,

Darryl Sweet

General Services Manager

2180 Milvia Street, Berkeley, CA 94704 Tel: 510.981.7320 TDD: 510.981.6903 Fax: 510.981.7390

E-mail: finance@ci.berkeley.ca.us Website: http://www.ci.berkeley.ca.us/finance

City of Berkeley

Specification #24-11660-C

Page 2 of 20

Independent Third-Party Audit of Payroll Audit Division

BACKGROUND

Release Date 3/18/2024

The City Auditor is an elected official who serves the residents of Berkeley and whose mission is to be a catalyst

for improving City government. The City Auditor’s Office is comprised of two divisions:

 General Audit Division: Conducts performance, financial, and compliance audits in accordance with

Generally Accepted Government Auditing Standards to promote efficiency, effectiveness, and

accountability; provide objective, timely, and accurate information about City program performance to

the public, Council, management, and staff; and make recommendations for improvement that help

Berkeley residents hold City government accountable for stewardship of public resources.

 Payroll Audit Division: Examines and monitors City payroll for accuracy, accountability, and

compliance with federal and state regulations, City policies, procedures, and memorandums of

understanding (i.e., labor agreements); processes City payroll; issues pay checks and related reports;

and performs other payroll-related activities.

Because the City Auditor’s Office is responsible for management and oversight of the Payroll Division, we cannot

complete an independent audit of payroll operations in accordance with Generally Accepted Government Auditing

Standards. To do so could create an independence impairment in both mind and appearance that compromises

professional judgment, integrity, objectivity, and professional skepticism. However, we recognize that payroll

operations is a high-risk area that warrants regular, independent audits. Therefore, in keeping with our commitment

to the Berkeley community to ensure assessment of high-risk City operations, we are seeking to contract with an

independent third-party to audit our payroll services. In keeping with our policies, we will present to City Council

the third-party’s report, including findings and recommendations, and then continue to report to City Council our

progress with implementing the recommendations.

II. SCOPE OF SERVICES

The contractor will:

 Conduct an independent performance audit of the City of Berkeley City Auditor’s Office Payroll

Division in accordance with Generally Accepting Government Auditing Standards (GAGAS) issued by

the Comptroller General of the United States to:

 Determine whether the division’s internal control practices, policies, procedures, and

environment adequately and appropriately protect against fraud, waste, and abuse; and operate

in compliance with established Federal, State, and City policies, rules, and regulations.

 Assess whether the division’s practices, policies, procedures, and protocols are uniformly and

consistently applied, to ensure that pay and benefits handled by the Payroll Audit Division are

accurately and appropriately paid to, or applied to, City of Berkeley employees.

 Prepare and provide to the City Auditor’s Office a written report on the findings and recommendations

resulting from the performance audit in accordance with GAGAS reporting standards.

 Provide the City Auditor’s Office with copies of the workpapers, work plans, and other documentation

that demonstrate that the audit report was completed in accordance with GAGAS. The workpapers

must be in electronic format that will allow for retrieval and review in a commonly used software

acceptable to the City Auditor’s Office (e.g., Microsoft Office Word or Excel, or Adobe Acrobat). The

files provided may be protected to prevent changes after completion, e.g., the workpapers may be

submitted in read-only format.

RFP Revised Nov2022

City of Berkeley

Specification #24-11660-C

Page 3 of 20

Independent Third-Party Audit of Payroll Audit Division

Release Date 3/18/2024

 Keep all original workpapers, work plans, and other documentation confidential. Any public records

act request must be coordinated with the City Auditor’s Office to ensure that only work that supports

the audit content is released unless such work is exempt from disclosure. Any public release of

workpapers must be done in accordance with California Government Code and the Berkeley Municipal

Code.

The contractor will complete the onsite portion of the audit over a three-week agreed upon time frame, and will

submit the final written report and workpapers to the City Auditor’s Office within five weeks following the

completion of the on-site work. The contractor will have time between the last day of field work and report issue

date to follow up on open items not addressed while onsite. This may include returning to the City for additional

onsite work. The City Auditor’s Office will provide private workspace for the onsite portion of the audit at 2180

Milvia Street, Berkeley, CA 94704.

The City Auditor, Deputy City Auditor/Payroll Manager, Audit Managers, and entire payroll staff will be available

to assist with the audit and provide information and documentation. The City Auditor’s Office may provide an audit

liaison to help coordinate meetings and obtain information that the contractor needs to complete this scope of

services.

III. SUBMISSION REQUIREMENTS

All proposals shall include the following information, organized as separate sections of the proposal. The proposal

should be concise and to the point.

1. Contractor Identification:

Provide the name of the firm, the firm's principal place of business, the name and telephone number of the contact

person and company tax identification number.

2. Client References:

Provide a minimum of four (4) client references. References should be California cities or other large public

sector entities. Provide the designated person's name, title, organization, address, telephone number, and the

project(s) that were completed under that client’s direction.

3. Price Proposal:

The proposal shall include pricing for all services. Pricing shall be all inclusive unless indicated otherwise on a

separate pricing sheet. The Proposal shall itemize all services, including hourly rates for all professional,

technical and support personnel, and all other charges related to completion of the work shall be itemized.

4. Contract Terminations:

If your organization has had a contract terminated in the last five (5) years, describe such incident.

Termination for default is defined as notice to stop performance due to the vendor’s non-performance or poor

performance and the issue of performance was either (a) not litigated due to inaction on the part of the vendor,

or (b) litigated and such litigation determined that the vendor was in default.

Submit full details of the terms for default including the other party’s name, address, and phone number. Present

the vendor’s position on the matter. The City will evaluate the facts and may, at its sole discretion, reject the

proposal on the grounds of the past experience.

RFP Revised Nov2022

City of Berkeley

Specification #24-11660-C

Page 4 of 20

Independent Third-Party Audit of Payroll Audit Division

Release Date 3/18/2024

If the firm has not experienced any such termination for default or early termination in the past five (5) years, so

indicate.

5. Prior Performance Audits:

Provide a minimum of three (3) example audits conducted in accordance with Generally Accepted Government

Auditing Standards for cities or other large public sector entities.

IV. SELECTION CRITERIA

The following criteria will be considered, although not exclusively, in determining which firm is hired. A

selection panel will be convened of staff from the City Auditor’s Office. Each proposal will be evaluated in the

areas below and given a relative ranking. The selection process may include post-bid interviews of those

respondents achieving the highest scores in the initial bid evaluation process.

Evaluation Criteria

Responsiveness to the RFP

Relevant Experience

Quality of Example Audits

Cost

References

Weight

20%

30%

20%

10%

V. PAYMENT

Suggested Language

Invoices: Invoices must be fully itemized, and provide sufficient information for approving payment and audit.

Invoices must be accompanied by receipt for services in order for payment to be processed. Email invoices to

Accounts Payable and cc’ EMullin@berkeleyca.gov; (List on invoice, Attn: Project Manager Erin Mullin/City

Auditor’s Office) and reference the contract number.

City of Berkeley

Accounts Payable

P.O. Box 700

Berkeley, CA 94710-700

Email: AccountsPayable@berkeleyca.gov

Phone: 510-981-7310

Payments: The City will make payment to the vendor within 30 days of receipt of a correct, approved and complete

invoice.

RFP Revised Nov2022

City of Berkeley

Specification #24-11660-C

Page 5 of 20

Independent Third-Party Audit of Payroll Audit Division

VII. CITY REQUIREMENTS

Release Date 3/18/2024

A. Non-Discrimination Requirements:

Ordinance No. 5876-N.S. codified in B.M.C. Chapter 13.26 states that, for contracts worth more than $3,000 bids for

supplies or bids or proposals for services shall include a completed Workforce Composition Form. Businesses with

fewer than five employees are exempt from submitting this form. (See B.M.C. 13.26.030)

Under B.M.C. section 13.26.060, the City may require any bidder or vendor it believes may have discriminated to

submit a Non-Discrimination Program. The Contract Compliance Officer will make this determination. This applies

to all contracts and all consultants (contractors). Berkeley Municipal Code section 13.26.070 requires that all

contracts with the City contain a non-discrimination clause, in which the contractor agrees not to discriminate and

allows the City access to records necessary to monitor compliance. This section also applies to all contracts and all

consultants.

Bidders must submit the attached Non-Discrimination Disclosure Form with their proposal.

B. Nuclear Free Berkeley Disclosure Form:

Berkeley Municipal Code section 12.90.070 prohibits the City from granting contracts to companies that knowingly

engage in work for nuclear weapons. This contracting prohibition may be waived if the City Council determines that

no reasonable alternative exists to doing business with a company that engages in nuclear weapons work. If your

company engages in work for nuclear weapons, explain on the Disclosure Form the nature of such work.

Bidders must submit the attached Nuclear Free Disclosure Form with their proposal.

C. Oppressive States:

The City of Berkeley prohibits granting of contracts to firms that knowingly provide personal services to specified

Countries. This contracting prohibition may be waived if the City Council determines that no reasonable alternative

exists to doing business with a company that is covered by City Council Resolution Nos. 59,853-N.S., 60,382-N.S.,

and 70,606-N.S. If your company or any subsidiary is covered, explain on the Disclosure Form the nature of such

work.

Bidders must submit the attached Oppressive States Disclosure Form with their proposal.

D. Sanctuary City Contracting Ordinance:

Chapter 13.105 of the Berkeley Municipal Code prohibits the City from granting and or retaining contracts with any

person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs

Enforcement Division of the United States Department of Homeland Security (“ICE”).

Bidders must submit the attached Sanctuary City Compliance Statement with their proposal.

E. Conflict of Interest:

In the sole judgment of the City, any and all proposals are subject to disqualification on the basis of a conflict of

interest. The City may not contract with a vendor if the vendor or an employee, officer or director of the proposer's

firm, or any immediate family member of the preceding, has served as an elected official, employee, board or

commission member of the City who influences the making of the contract or has a direct or indirect interest in the

contract.

Furthermore, the City may not contract with any vendor whose income, investment, or real property interest may be

affected by the contract. The City, at its sole option, may disqualify any proposal on the basis of such a conflict of

interest. Please identify any person associated with the firm that has a potential conflict of interest.

RFP Revised Nov2022

INDEPENDENT THIRD-PARTY AUDIT OF PAYROLL AUDIT DIVISION

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