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HomeMy WebLinkAboutAGMT - The Pun Group (Auditing Services)PROFESSIONAL SERVICES AGREEMENT Between City of Seal Beach 211 8th Street Seal Beach, CA 90740 0 THE PUN GROUP, Accountants & Advisors 200 E. Sandpointe, Suite 600 Santa Ana, CA 92707 This Professional Service Agreement ( "the Agreement') is made as of February 13, 2017 (the "Effective Date "), by and between THE PUN GROUP, Accountants & Advisors ( "Consultant'), a California corporation, and the City of Seal Beach ( "City "), a California charter city, (collectively, "the Parties "). S7296- 0001 \1236808v1.doc RECITALS A. City desires certain professional services. B. Consultant represents that it is qualified and able to provide City with such services. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Consultant shall provide those services ( "Services ") set forth in the attached Exhibit A, which is hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.4. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manger may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 2.0 Term This term of this Agreement shall commence as of the Effective Date and shall continue for a term of three years unless previously terminated as provided by this Agreement. 3.0 Consultant's Compensation City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibit A for Services but in no event will the City pay more than $ 48,500 FY 2016 -17, $49,470 FY 2017 -18 and $50,459 FY 2018 -19 with two years option. Option $ 51,469 FY 2019 -20, and Option $ 52,498 FY 2020- 2 of 9 S7296-0001\1 236808vl.doc 21. Any additional work authorized by the City pursuant to Section 1.4 will be compensated in accordance with the fee schedule set forth in Exhibit A. 4.0 Method of Payment 4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant's invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24 -hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4.2 shall survive for two years following the termination of this Agreement. 5.0 Termination 5.1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination. 5.2. This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. Kenneth H. Pun is the Consultant's primary representative for purposes of this Agreement. 7.0 Notices 7.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit 3 of 9 S7296- 0001 \1236808v1.doc in the United States Mail, first class postage prepaid and addressed to the party at the following addresses: To City: City of Seal Beach 211 8th Street Seal Beach, California 90740 Attn: City Manager To Consultant: The Pun Group, Accountants & Advisors 200 E. Sandpointe, Suite 600 Santa Ana, CA 92707 Attn: Kenneth H. Pun 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1. Consultant is an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 8.2. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant's personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this Section. 9.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors. 4of9 S7296- 0001 \12368080 doc 10.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 11.0 Insurance 11.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 11.2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A: VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement /location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Professional Liability: $1,000,000 per claim /aggregate. 11.3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to state: (1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City; (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect 5of9 S7296- 0001 \1236808v1.doc coverage provided to the City, its directors, officials, officers, (3) coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying coverage and that any insurance or self- insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall not be called upon to contribute with it; (4) for general liability insurance, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (5) for automobile liability, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible. 11.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 11.5. Any deductibles or self- insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 12.0 Indemnification, Hold Harmless, and Duty to Defend Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively "Indemnitees ") free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any acts or omissions of Consultant, its employees, or its agents in connection with the performance of this Agreement, including without limitation the payment of all 'consequential damages and attorneys' fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of the City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant's own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, 6 of 9 S7296- 0001 \1236808vi.doc employees, agents and /or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its directors, officials, officers, employees, agents or volunteers. All duties of Consultant under this Section shall survive termination of this Agreement. 13.0 Equal Opportunity Consultant affirmatively represents that it is an equal opportunity employer. Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non - discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 14.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 15.0 Entire Agreement This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties. 16.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 17.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 18.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 7 of 9 s7296- 0001 \1236808vl.doc 19.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 20.0 Prohibited Interests; Conflict of Interest 20.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant 'financially interested" (as provided in California Government Code § §1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 20.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 20.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws as described in this subsection. 21.0 Attorneys' Fees If either party commences an action against the other party, legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing 8of9 S7296 -0001 \1236808v1.doc party in such litigation shall be entitled to have and recover from the losing party all of its attorneys' fees and other costs incurred in connection therewith. 22.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 23.0 Corporate Authority The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said Party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written. CITY OF SEAL BEACH By: Q0. Ingram, City Attest: it A( By: Robin L. Roberts, City Approved as to Form: By: Craig . Steele, City Attorney CONSULTANT By:�1 L Name: 4&A1Z -7y -,ti. ?4—/ Its: 7?/E &6( fI'i4 >w° 0 Name: Its: 9 of 9 S7296- 0001 \1236808vt.doc PROPOSAL CITY OF SEAL BEACH SEAL BEACH, CALIFORNIA Proposal to Perform Professional Auditing Services For the three (3) fiscal years beginning with Fiscal Year Ending June 30, 2017, with the option to renew for two (2) additional fiscal years DECEMBER 22, 2016 Kenneth H. Pun, CPA, CGMA Managing Partner 200 East Sandpointe Avenue, Suite 600, Santa Ana, CA 92707 Phone: (949) 777 -8801 1 Fax: (949) 777 -8850 1 Email: ken.pun @pungroup.com California CPA License Number: PAR 7601 Federal Identification Number: 46- 4016990 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services TABLE OF CONTENTS Letterof Transmittal .............................................................................. ............................... Section I - License to Practice in California ................................................................................ ............................... 3 SectionII - Independence ........................................................................................................... ............................... 3 Section III - Firm Qualifications and Experience .......................................................................... ..............................4 AboutThe Pun Group, LLP ............................................................................................... ..............................4 StaffConsistency .............................................................................................................. ..............................4 Other Services Offered by the Firm ................................................................................. ............................... 5 Local Office's Information Technology (IT) Audit Capabilities ......................................... ............................... 5 Firm's Municipal Clients ................................................................................................... ............................... 6 Most Recent External Quality Control Review ................................................................... .............................10 Federal or State Desk Review ......................................................................................... ............................... 11 DisciplinaryAction ............................................................................................................ ............................... 11 Section IV - Partner, Supervisory and Staff Qualifications and Experience ............................... ............................... 12 Proposed Engagement Team .......................................................................................... ............................... 12 QualityControl System .................................................................................................... ............................... 14 ProfessionalDevelopment ............................................................................................... ............................... 14 Engagement Team Resumes .......................................................................................... ............................... 14 Section V - Similar Engagements with Other Government Enfities ............................................ ............................... 23 SectionVI - Speck Audit Approach .......................................................................................... ............................... 25 Scopeof Work ................................................................................................................. ............................... 25 Reportsto be Issued ........................................................................................................ ............................... 26 Working Paper Retention and Access to Working Papers .............................................. ............................... 26 Objectiveof Our Services ................................................................................................ ............................... 26 Proposed Segmentation of the Engagement and Timeline ............................................. ............................... 27 Level of Staff and Number of Hours to be Assigned to Each Proposed Segment of the Engagement.......... 27 Sample Size and the Extent to Which Statistical Sampling is to be Used in this Engagement ...................... 28 Type and Extent of Analytical Procedures to be Used in the Engagement ..................... ............................... 28 Approach to be Taken to Gain and Document an Understanding of the City's Internal Control Structure.... 29 Approach to be Taken in Determining Laws and Regulations that will be Subject to Audit Test Work.......... 29 Approach to be Taken in Drawing Audit Samples for Purposes of Tests of Compliance .............................. 29 GASB Implementation Specialist ..................................................................................... ............................... 29 ClientTraining Seminar ................................................................................................... ............................... 30 Section VII - Identification of Anticipated Potential Audit Problems ............................................ ............................... 31 SectionVIII - Cost Proposal ........................................................................................................ ............................... 32 Certification...................................................................................................................... ............................... 32 Total All-Inclusive Maximum Price ................................................................................... ............................... 32 Out of Pocket Expenses in the Total Maximum Price and Reimbursement Rates ......... ............................... 33 Rates for Additional Professional Services ...................................................................... ............................... 33 Mannerof Payment .......................................................................................................... ............................... 33 Benefits of Choosing The Pun Group, LLP Thankyou ................... ............................... Appendix: 34 34 Proofof Insurance ............................................................................................................ ............................... 37 THE � PUN GROUP ACCOUNTANTS & ADVIS02S December 22, 2016 City of Seal Beach Ms. Robin L. Roberts I City Clerk 211 8th Street Seal Beach, California 90740 Dear Ms. Robin L. Roberts : Please allow us to introduce our Firm and share our qualifications and proposed audit plan for the City of Seal Beach (the "City") pursuant to your Request for Proposal for Professional Auditing Services for the three (3) fiscal years beginning with Fiscal Year Ending June 30, 2017, with the option to renew for two (2) additional fiscal years. The Pun Group, LLP (the "Firm "), has the knowledge and experience necessary to become the City's next public accounting firm, and the work plan to ensure a smooth audit process. This letter is an acknowledgement of the Firm's understanding of the work to be performed. We hereby offer our commitment to perform all of the required work, complete the audit, and issue the necessary auditor's report within the time periods outlined by the City. We are secure in affirming our commitment because we have: 1. A lengthy legacy of serving California cities 2. Prodigious experience serving governmental entities 3. An efficient, lower -cost approach to auditing that focuses on high -risk areas I will serve as your primary contact for contract negotiations. I am the managing partner of the Firm and have been authorized to legally bind the Firm. My contact information follows: Name: Mr. Kenneth H. Pun, CPA, CGMA Position: Managing Partner Address: 200 East Sandpointe Avenue, Suite 600 Santa Ana, California 92707 Telephone: (949) 777 -8801 Email: ken.pun @pungroup.com You may also contact the following partner, who is authorized to represent the Firm: Name: Mr. Gary M. Caporicci, CPA, CGFM, CFF Position: Partner Address: 200 East Sandpointe Avenue, Suite 600 Santa Ana, California 92707 Telephone: (949) 777 -8802 Email: gary.capodcci @pungroup.com The Pun Group is the right choice for the City of Seal Beach because we are experienced and focused in your industry. • We have audited and consulted many California cities. • We have assisted many clients in earning the GFOA Certificate of Achievement for Excellence in Financial Reporting, 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Tel: 949- 777- 8800-Toll Free: 855- 276 -4272• Fax: 949-777-8850 www.pungroup.com City of Seal Beach Ms. Robin L. Roberts I City Clerk Page 2 • Our depth of resources and specific government experience are substantial, and we are committed to deploying these resources and our experience on behalf of the City. Simply put, the City will become one of our most important clients, and will receive the priority service it deserves. • We have assigned Gary Caporicci, our GASB Implementation Specialist, who is appointed to the State Retirement Advisory Committee by the State Controller, in assisting the City in the implementation of GASB's new standards. Our goal for this audit is to complete the process in accordance with regulations while minimizing disruption to the City's daily operations. The Firm will: • Take advantage of its solid familiarity with the City's operations. • Create a detailed audit plan during initial stages of the audit. • Maintain an open communication line between the Engagement Team and the City's Management. • Assign duties to qualified staff members. This method ensures that the audit process will be performed steadily, communicated clearly, and completed efficiently. The Firm is an Equal Opportunity Employer and complies with all Federal and State hiring requirements. This proposal meets the requirements of the City's Request for Proposal. This letter and the accompanying proposal represent a firm and irrevocable offer valid for a period of 90 days. Proof of current General Liability, Business Auto Liability, Professional Liability, and Workers' Compensation insurance can be found at the Appendices section under this proposal. We will provide a copy of our Certificate of Insurance with coverages and amounts specified in the contract with the City within 10 calendar days after the notice of contract award. Also, upon the notice of contract award the Firm will obtain a valid Business License with the City of Seal Beach. If you have any questions about the proposal or the Firm, do not hesitate to contact us. We look forward to speaking with you. Sincerely, The Pun Group, LLP Certified Public Accountants and Business Advisors Kenneth H. Pun, CPA, CGMA Managing Partner CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services SECTION I - LICENSE TO PRACTICE IN CALIFORNIA The Firm and all key professional staff are licensed by the State of California to practice as Certified Public Accountants, and meet the Continuing Professional Education requirements under U.S. GAO's Government Auditing Standards to perform the proposed audits. State of California Department of Consumer Affairs California Board of Accountancy Pursuant to the provisions of Chapter 1, Division 3 of the Business and Professions Code, the firm of THE PUN GROUP, LLP is ddy registered and entitled to prarlice as a partnership of Certified Public Accountants h ara smm at Cana In Wftnass Whereof, the Pnoncera and Seaebry-Tm affix In* hands and the seal of ft California Board of Acoorntsncy on IMa a enteenfh dry of December, 2013 oca PAR 7601 SECTION II - INDEPENDENCE The Pun Group, LLP (the "Firm ") requires all employees to adhere to strict independence standards in relation to the Firm's clients. These independence standards exceed, in many instances, the standards promulgated by the American Institute of Certified Public Accountants (AICPA). The Pun Group, LLP certifies that it is independent of the City of Seal Beach (the "City ") and the Successor Agency to Seal Beach Redevelopment Agency (the "Agency "). The Firm meets independence requirements defined by the United States Government Accountability Office's (U.S. GAO's) Government Auditing Standards, and the American Institute of Certified Public Accountants (AICPA). The Firm will give the City of Seal Beach written notice of any professional relationships entered into during the period of the agreement. 7 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services SECTION III — FIRM QUALIFICATIONS AND EXPERIENCE About The Pun Group, LLP The Pun Group, LLP, Certified Public Accountants and Business Advisors, founded in 2012, is a limited liability partnership. We are a full- service accounting firm that is comprised of forty (40) professionals who work on a full - time basis and provide auditing, accounting, and advisory services. Our Partners Group have served governmental agencies since 1989, under the umbrella of its predecessor firm, Caporicci & Larson, where all key personnel assigned provided outstanding services to governmental entities throughout California. Out of the forty (40) professionals, thirty (30) of them are focused in the Government Assurance Practice. The Firm has offices in Orange County, San Diego, Palm Desert (California) and Phoenix (Arizona). The combination of hands -on experience and practical knowledge exercised by our audit professionals makes the Firm unique in our field. Our technical knowledge and thorough understanding of current regulations and issues — along with the Firm's commitment to hard work, integrity, and teamwork on every engagement —enable us to help our clients succeed. Our Governmental Partners Group —which include Kenneth H. Pun, Gary M. Caporicci, Paul J. Kaymark, Lisa B. Lumbard and Jack F. Georger— provide auditing, accounting, and advisory services to numerous governmental entities throughout the United States. With more than one hundred -fifty (150) years of combined experience in the governmental industry we have become a trusted business partner, and well- respected as one of the most socially responsible accounting firms. In addition to annual financial audits, team members undertake special studies in financial management, accounting, cost - accounting- system analysis, internal audit services, and internal control documentation and testing. By participating in industry associations and activities, we are always up to date on the latest industry changes and the impact they will have on your operations. We will keep you and our colleagues in the Firm, fully informed of these developments. Our team is committed to bringing the full breadth and depth of our expertise to the audit of the City offering an outstanding value. Our Orange County office, located at 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 will perform the requested services for the City. In this location we count on 6 partners, 2 senior managers, 1 manager, 2 supervisors, 4 seniors, 6 professional staff and 4 administrative staff. However, we may assign additional staff from our San Diego or Palm Desert (California) offices to the engagement, at no additional cost to the City. No subcontractors will be used. While many accounting Firms can perform an audit, not all can build a great working relationship with their clients. The Pun Group, LLP prides itself on developing lasting, personal relationships with our clients. Our hands -on partner involvement and low personnel turnover are crucial tools to our success and highly beneficial to the City. Our Firm has: Extensive experience in audits of local governments as well as experience with preparation of Comprehensive Annual Financial Reports, and comprehensive assistance with the implementation of new GASB Pronouncements. Strong work ethic and willingness to respond to the City of Seal Beach requirements and needs. Staff Consistency The Firm is committed to maintaining staff continuity throughout audit engagements. While we cannot guarantee that our staff members will stay with the Firm, we encourage loyalty by paying competitive wages, offering opportunities for promotion, using state -of- the -art equipment, and providing excellent working conditions. We also offer benefits including retirement plans, medical plans, profit- sharing programs, and continuing education. The Firm is an equal - opportunity employer and complies with all federal and state hiring requirements. The Firm also supports affirmative - action philosophies and works hard to provide opportunities for self- enhancement to members of disadvantaged groups. We guarantee that the partners assigned to this audit will be involved throughout the entire engagement term, and that assigned staff members will return to the City in future years if they are still with the firm. One of our primary audit concerns is staff continuity, and our hands -on partner involvement ensures that qualified and experienced professionals will perform audits efficiently and effectively every year of the engagement. CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Other Services Offered by the Firm Auditing and Accounting The Pun Group, LLP provides all levels of attestation services, including audits, reviews, and special examinations on specific accounts, items, and transactions. Additionally, we provide the following: preparation of financial statements, projections, and forecasts; practical analysis of financial information on ratios, inventory, revenues, and expenses; SEC compliance; IFRS conversions. Businessrrax Consulting We provide guidance to closely held, emerging, and family -owned businesses. Our extensive experience with privately held businesses during their entire life cycle allows us to assist our clients to create value, increase profitability, secure financing, and reach goals. Business Valuation We provide many business valuation services, including, but not limited to, the following: mergers and acquisitions, joint- venture agreements, goodwill impairment, fairness opinions, restructuring from public to private entities, and allocation of purchase price. Our multi - disciplinary team includes JDs, and MBAs who have expertise in economics, financial modeling, business management, marketing, psychology, law, competitive analysis, consumer behavior, and market research. Professional designations held by our members include CFE, CVA, CGMA, CIA, CGFM, CFF and MFAA. Financial Recovery/Forensic Services We provide many forensic accounting services, including, but not limited to the following: fraud and mismanagement, fraudulent transfers, stockbrokerage churning, fraud risk assessment, safeguarding of assets, organizational reviews. Our forensic accounting and fraud investigation team excels in solving complex economic crimes. We provide guidance on the prevention and detection of fraud. Members of the team speak as leading experts at forensic accounting and fraud investigation conferences around the nation. Tax Services Our Firm provides many tax services, including, but not limited to the following: planning /consulting, compliance, IRS and state representation, estate planning and valuation. We have specialists in international, federal, state and local taxes. Through careful planning, we can assist our clients with tax strategies for all levels of taxation. Local Office's Information Technology (IT) Audit Capabilities In order to promote audit efficiency, the Firm uses the following technology in providing auditing services: The Firm uses ProSystem fx® Engagement for audit documentation. It allows real time synchronization of the workpapers and real time quality control review. Citrix Receiver allows the engagement team to access the Firm's secure network through intemet anywhere they are. The Firm uses ProSystem fx® Portal for file sharing with the client. Provided by client, items are uploaded to this secured site and are downloaded and reviewed prior to the fieldwork. CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Firm's Municipal Clients The Pun Group, LLP has performed numerous audits of governmental organizations subject to financial and compliance audits. These audits were performed in accordance with auditing standards generally accepted in the United States, Government Auditing Standards, Uniform Grant Guidance (formerly known as OMB Circular A -133) and its Compliance Supplement (when applicable), Office of the State Controllers Minimum Audit Requirements and Reporting Guidelines for California Special Districts. A list of current engagements is as follows: 6 2013 — Present Yes Yes N/A Kenneth H. Pun 400 City of Bradbury 2012 - Present Yes N/A N/A Kenneth H. Pun 150 City of Calexico 2007- Present Yes Yes N/A Kenneth H. Pun 750 City of Cerritos 2009 - Present Yes Yes Yes Kenneth H. Puffin 400 City Clovis of 2006 - Present Yes Yes KennethFf. Prin 400 City of Culver City 2016 - Present Yes Yes Yes Kenneth H. Pun 535 _ _. af,Qewdfe 1999 - Present Yes Yes Gary Caporicci 300 City of Desert Hot Springs 2013 - Present Yes N/A N/A Kenneth H. Pun 500 2014 - Present Yes Yes Kenneth H. Pun 350 City of Escondido 2016- Present Yes Yes Yes Kenneth H. Pun 400 Fof Gardena 2007 - Present Yes Yes Yes Gary Caporicci 700 City of Hemet 2015 - Present Yes Yes N/A Kenneth H. Pun 380 of Hermosa Beach 2004 - Present Yes N/A Yes Kenneth H. Pun 200 City of Huntington Park 2015- Present Yes Yes N/A Kenneth H. Pun 650 "OPIAT "oflndusb Yes Yes Yes Kenneth H. Pun 600 City of Laguna Niguel 2016 - Present Yes Yes Yes Kenneth H. Pun 390 City of Lakewood 2013 - Present Yes Yes Yes Kenneth H. Pun 380 City of Lynwood 2016 - Present Yes Yes Yes Kenneth H. Pun 585 City of Monterey 2016 - Present Yes Yes Yes Kenneth H. Pun 620 City of Morro Bay 2015 - Present Yes Yes N/A Kenneth H. Pun 400 City of National City 2013 - Present Yes Yes Yes Kenneth H. Pun 600 City of Placentia 2016 - Present Yes Yes Yes Kenneth H. Pun 620 City of Placerville 2008 - Present Yes Yes N/A Kenneth H. Pun 350 City of Pomona 2016 - Present Yes Yes Yes Kenneth H. Pun 650 6 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services City of Redding 2016 — Present Yes Yes Yes Kenneth H. Pun 500 City ofRidgecrest 2009 — Present Yes Yes Yes Kenneth H. Pun 300 City San Bernardino 2015 — Pr Yes Yes N/A KennPun 3,000 of a City of South Gate 2016 — Present Yes Yes Yes Kenneth H. Pun 480 City ofStok 2012 — Present Yes Yes N/A KennethH.'Puri. Gold Coast Transit System 2015 — Present Yes Yes Yes Paul J. Kaymark 150 San Diego Metropolitan 2005 — Present Yes Yes Yes Kenneth H. Pun 1,850 1 Transit System Shasta Regional 2015 — Present Yes N/A N/A Kenneth H. Pun 200 Transportation Agency Ventura County Railroad 2015 — Present Yes N/A aul W Company, LLC .. _ Ventura County 2015 — Present Yes Yes Yes Kenneth H. Pun 400 Transportation Commission n Altadena Library District 2015 — Present Yes N/A N/A Paul J. Kaymark 90 Antelope Valley State Water 2015— Present Yes N/A WA Paul J. Kaymark 40 Contractors Association Barstow Heights Community 201 5 — Present Yes N/A N/A Paul J. Kaymark 40 •� Services District Big Bear City Airport District 2015 — Present Yes N/A N/A Paul J. Kaymark 120 Big Bear City Community 2015 — Present Yes N/A N/A Paul J. Kaymark Services District diaws Bodega Bay Fire Protection 2015 — Present Yes N/A N/A Paul J. Kaymark 140 District Casitas Municipal Water District 2015 — Present Yes N/A N/A Paul J. Kaymark am California Domestic Water 2016 — Present Yes N/A N/A Paul J. Kaymark 200 Company Desert Recreation District 2015 — Present Yes NIA N/A Paul J. Kaymark 150 Desert Recreation 2015 — Present Yes N/A N/A Paul J. Kaymark 40 Foundation Diablo Water District 2015 — Present Yes N/A N/A Paul J. Kaymark 350 East Orange County Water 2015 — Present Yes N/A N/A Paul J. Kaymark , 130 District El Toro Water District 2015 — Present Yes N/A N/A Paul J. Kaymark Im Encinitas Ranch Golf 2015 — Present Yes WA N/A Kenneth H. Pun 100 Authority �Palbrook FP bistrict 2008 — Present Yes N/A 1W7A`� - 1 rineihH. Pun 75 Golden Hills Community 2016 — Present Yes N/A N/A Paul J. Kaymark 180 Services District Las Virgenes Municipal Water 2014 — Present Yes N/A N/A Kenneth H. Pun 300 District Los Angeles Waterkeeper 2016 — Present Yes NIA N/A Paul J. Kaymark 100 Marina Coast Water District 2012 — Present Yes N/A Yes Kenneth H. Pun 240 7 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Menlo Park Fire Protection 2015 — Present District Yes Newport Coast Elementary 2010 — Present School Foundation N/A North Count Fire Protection 2015— Present District N/A North County Dispatch JPA 2015 — Present North of the River Municipal Yes Water District 2015— Present Orange County Coastkeeper 2015 — Present Palmdale Water District 2015 — Present Palos Verdes Library District 2015 — Present Port of Hueneme - Oxnard 2015 — Present Harbor District Yes Rancho Santa Fe Fire 2015 — Present Protection District N/A Riverside County Flood Yes Control and Water 2015 — Present Conservation District N/A San Bernardino County Fire 2016 — Present Protection District N/A San Diego Coastkeeper 2015 — Present San Dieguito Water District 2014— Present Audit N/A San Elijo Joint Powers 2016 — Present Authority N/A San Mateo Mosquito and 2015 — Present Vector Control District Yes South Bay Regional Public 2015 — Present Communications Authority 55 Southwestern Community 2009 — Present College District Paul J. Kaymark Stallion Springs Community 2015 — Present Services District N/A The Farm Mutual Water 2015 — Present Company N/A Trabuco Canyon Water 2015 — Present District Twentynine Palms Water 2016 — Present District Valley Sanitary District 2015 — Present West County Agency 2015 — Present West County Wastewater 2015 — Present District West Valley Mosquito And 2016 — Present Vector Control District West Valley Water District 2015 — Present Yes Yes Yes Yes N/A N/A Yes N/A N/A Yes N/A N/A Yes N/A N/A Yes N/A N/A Yes N/A N/A Yes N/A N/A Yes N/A Yes Yes N/A N/A Yes N/A Yes Yes N/A N/A Kenneth H. Pun 240 Kenneth H. Pun 20 Paul J. Kaymark 120 Paul J. Kaymark 60 Paul J. Kaymark 150 Paul J. Kaymark Paul J. Kaymark 180 Paul J. Kaymark 110 Kenneth H. Pun 250 Paul J. Kaymark 120 Kenneth H. Pun 250 Paul J. Kaymark 200 Yes N/A N/A Paul J. Kaymark 75 Yes N/A N/A Kenneth H. Pun 75 Yes N/A N/A Kenneth H. Pun 146 Yes N/A N/A Paul J. Kaymark 130 Yes N/A N/A Paul J. Kaymark 100 Yes Yes N/A Kenneth H. Pun 720 Yes N/A N/A Paul J. Kaymark 220 Yes N/A N/A Paul J. Kaymark 170 Yes N/A N/A Paul J. Kaymark 200 Yes N/A N/A Paul J. Kaymark 160 Yes N/A Yes Kenneth H. Pun 140 Yes N/A N/A Paul J. Kaymark 55 Yes N/A N/A Paul J. Kaymark 240 Yes N/A N/A Paul J. Kaymark 100 Yes N/A N/A Paul J. Kaymark 320 a CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Wilmington Cemetery District 2015 — Present Yes N/A N/A Paul J. Kaymark Alliance Medical Center 2013 — Present Yes N/A N/A Kenneth H. Pun Anderson Valley Health Clinic 2012 — Present Yes N/A N/A Kenneth H. Pun Desert Hot Springs Health 2013 — Present Yes N/A N/A Kenneth H. Pun and Wellness Foundation Family Health Centers of San 2009 — Present Yes Yes Yes Kenneth H. Pun Diego Industry Convalescent 2015 — Present Yes N/A N/A Kenneth H. Pun Hospital Merin City Health and 2t)t0- ..- :Present Yes Yes N/A Kenneth H. Pun Wellness Center _ McCloud Healthcare Clinic 2013 -2015 Yes Yes N/A Kenneth H. Pun Mountain Valleys Health 2015— Present Yes Yes N/A KenPun Centers Redwood Coast Medical 2008— Present Yes Yes WA Kenneth H. Pun Services Ritter Center 2013 — Present Yes N/A N/A Kenneth H. Pun Shingletown Medical Center 2013 — Present Yes Yes N/A Kenneth H. Pun Tulare Community HeaRh 2008 — Present Yes Yes N/A Kenneth H. Pun Clinic / Altura Centers United Health Centers of San 2010 -2016 Yes Yes N/A Kenneth H. Pun Joaquin Valley 9 300 200 0 100 600 230 110 200 200 100 190 200 300 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Most Recent External Quality Control Review The Firm participates in the AICPA Peer Review Program, which is designed to identify weaknesses in accounting - service policies, practices, and procedures. In 2015, an independent reviewer assessed the Firm's quality- control policies, reviewed administrative records, interviewed professional personnel, and inspected the Firm's working papers and reports from a representative sample of accounting and auditing engagements, including governmental audits. The reviewer concluded that the Firm fully complies with the AICPA's stringent standards for quality control. A quality - control reviewer considers, among other things, a firm's policies regarding hiring, training, supervision, delegation of responsibilities, and access to technical resources. The reviewer determined that the Firm's accounting and auditing work and internal quality - control system meet the AICPA's guidelines for professional standards. The Firm's participation in the Peer Review Program demonstrates our commitment to quality. We also affirm our dedication to excellent client service through our voluntary memberships in the AICPA— including the AICPA's Governmental Audit Quality Center —and CaICPA. FmuC N }uxn Wd 91cauL werU1, Frio. Ne _ Nemn The Pus Grwp LLP Sams Ma. U.f 'a; aM the Pen Review C'ommitxe of No e'difa,ia Society of cP.45 We lucx red the syurnl of .III, ..I for the ­eying and untins, Pr:tice or Ilbe Punt P. LLP (the firm)melIke t borne year ended Q euutbr 31.2014 Ow peer ,visa.. cmbuned in aenvdmwe with hu studvdr for Pa." aW Refusing on Par R iewa esubliabxd b5 the Pen RevieN goal of de Amvicwa Institute of Centilled Public Accmm,nN AS Pun of uur Wr e... we asette ed teviewx by re,,Wun entities, if aPpliwble, in detetmininy the 1,nne aN uwlt of ors prosecutes. The fin, is mpunSTk far de Ving J 5yf5em uryuallly em11NI and "Plying,5ith it W mvhbc the gym wish ,r'u"uhle a Inu tv r,f pert ing and repining In ennfmmhy wuh zwheabk pofenianal sutruiaxd, in nil mwmnl reapecu Un nerponsbiliry o m eepeen an gpnian on the der" of dre "tent of Nuahrr cool.] and the ( i P[,.e the.wiN bated csourreanted The nnnnrc. nbjclines r.pe. lunitmrw of atl tEe pncedrvea pafom i In v sYVan Rcrrcw an• dncnted In Ne S,MVrda m xwwnicm mv/,rsummmv. Aa ,yuaed by the 5undaG engegen,nn ue a Inr ree a included us rnpagvrn t a opinion, tee eyerem of Inshty eotn,l for the nemwling ud auditing paint of The G.up. LLP in CITM her Ne year eMed tu...nber 31. ?014, hm been wimbly IPrcd vM enmplied with . w—ure, the firm xuh tea usse mu..e of Penh rning rcpnning ,m 00.1farmiry NI& enplrenble pnfe ... I nnoaardr N ill .mend rcspcar, n m rtoare a ,ling ofyN prate sun rYjn�urrcy(iu) a f d. The Pun G. , LLP .teed a pee rtvrcw,tmgufprra. LLP 10 CPAMERICA CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services 0 CaICPA Peer Review Program February 4. 2016 KermMh Hing -Kwog Pun The Pun Group LLP 200 E Sandpointe Ave Suite 600 Santa Ana. CA 92707 Dear Mr Pun It is my pleasure to notify you that on January 27, 2078 hie California Peer Review Committee accepted It a report on the most recent system peer review of your firm. The due date for your rest review is June 30. 2018. This is the date by which all review, documents should he cornpleted and submitted w the administering entity. As you know, the report tract a peer review rating of pass. The Committee asked me to convey its congratulations to the firm. Sincerely. C, Linda Moc ore. CPA Director Peer Review Program cc: John Lenas Firm Number -. 8192426 Review Number 372240 AiCDA is ;40r 512 -aM1 1 ?6541522.30W . -. ........ Federal or State Desk Review No federal or state desk reviews or field reviews have been undertaken of any audits performed by the Firm or any of its partners, managers, or professionals during the past three (3) years. Disciplinary Action No disciplinary action has been taken by state regulatory bodies or professional organizations against the Firm or any of its partners, managers, or professionals during the past three (3) years. The Firm has no conditions such as bankruptcy, pending litigations, planned office closures, mergers or any organizational conflict of interest that may affect the ability of the Firm to perform the required duties requested by the City of Seal Beach. 11 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services SECTION IV - PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE Proposed Engagement Team The Engagement Team is carefully chosen to provide the City with all the services needed to successfully complete the audit. The Engagement and Concurring Partners are personally involved in the audit, and the Engagement Team has significant experience in governmental auditing. Our broad experience and technical capabilities allow us to provide technical support, interpret findings, and offer effective solutions to any issues that may arise. Professional Staff The personnel assigned to this engagement are fully qualified to perform an efficient audit of the City, and their extensive experience will be critical to the audit process. Our professionals are familiar with the complexities of governmental accounting, auditing, and financial reporting, including but not limited to, all GASB pronouncements, the Single Audit Act, Uniform Grant Guidance (formerly known as OMB Circular A -133), and fund operations. If the Firm changes key personnel we will provide the City with a written notification. Engagement personnel will only be changed with the express prior written permission from the City. Audit personnel may be replaced only by those with similar or better qualifications and experience. If the City wishes to extend the annual contract beyond the proposed years, the Firm will accommodate requests by the City to rotate partners, managers and or supervisors assigned to the City's audit with personnel with similar or higher qualifications and experience. 12 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Kenneth H. Pun, CPA, CGMA I Engagement Partner With over fifteen years of public accounting experience, Kenneth Pun is the Assurance Partner and the Partner In- Charge of the Governmental and Not - for - Profit Practice at the Firm. He specializes in audits and management consulting for governmental organizations. Ken will actively act as the Engagement Partner with the assigned task of directly overseeing the Engagement Team. He will be responsible for the speedy delivery of services for the City of Seal Beach. In addition, he will manage engagement planning and fieldwork, review for quality and approve work papers and reports. John ( "Jack ") F. Georger, Jr., CPA, CIA I Engagement Quality Control Reviewer Throughout his forty years of experience, Jack has worked diligently alongside numerous governmental municipalities, including cities, counties, and transportation agencies, as well as not - for - profit entities, providing clients with financial and compliance auditing as well as consultation services. As an Assurance Partner in our Firm, he advises clients with their complex accounting questions, and supports the engagement team with audit issues. Jack is responsible for the review of all reports issued by the Firm to ensure the utmost quality and compliance with professional standards. He is responsible for the final quality - control review within the engagement. Gary M. Caporicci, CPA, CGFM, CFF I GASB Implementation Specialist Gary Caporicci is an appointed member of the State Controller's Retirement Advisory Committee. Mr. Caporicci will utilize his expertise in providing advice and consultation during the implementation of the new GASB standards. As an assurance partner with over forty years of experience, Gary has provided financial and compliance audit and consultation services to governmental clients including cities, counties, transportation agencies, and school districts, as well as various not- for - profit entities. Gary will be responsible in providing advice and consultation for the implementation of these new standards. Frances Kuo, CPA, CGMA I Engagement Manager Frances Kuo will bring her attention to detail and commitment to delivering a high quality audit to the City of Seal Beach. Frances will work closely with the Assurance partners directing the audit team in its daily activities and tasks. She is an Assurance Services /Audit Manager who has extensive experience in auditing local governmental entities including cities, counties, transportation agencies, special districts, and not - for - profit entities. Coley Delaney, CPA I Compliance Manager Working as a Compliance Manager, Coley will direct the audit team in all compliance - related matters. He is an Assurance Services /Audit Manager in the Firm whose extensive auditing experience includes cities, counties, special districts, and not - for -profit entities. Catherine Choi / Sophia Kuo, CPA, MBA I Supervisory Team Catherine and Sophia will direct the audit staff and coordinate with the City of Seal Beach personnel to create a seamless transition during the auditing process, and will secure the effective implementation of the audit approach. Professional Staff All governmental -audit members are qualified to perform financial and compliance audits of governmental agencies. This ensures that the staff quality will be consistent throughout the engagement term. Because we support both staff development and engagement continuity, we encourage senior and staff accountants to take increased responsibilities on their previous engagements as they advance professionally. 13 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Quality- Control System Our Firm meticulously monitors the quality and contents of our reports. The Pun Group LLP is 100% committed to providing only the highest grade of work possible for our clients and for those who rely on our audits. The Firm strives to exceed professional industry standards because of the continuing respect for our clients and our emphasis an creating long- lasting relationships. The Pun Group LLP works exclusively with those who share the same moral integrity and values. Our quality- control system was crafted with excellence in mind. It not only meets AICPA standards, but also matches our own elevated standards, which includes the following professional - development activities. Professional Development Each Engagement Team member is up- to-date with continuing professional education requirements. The Firm encourages staff members to participate in the continuing education programs offered by the AICPA and the CaICPA Education Foundation in order to always keep our staff well versed in the changing field and any new regulations. These classes include, among others: • Basic Concepts of Governmental Accounting, Financial Reporting and Auditing • Government Auditing Standards • GASB Basic Financial Statements for State and Local Governments • Single Audits: Uniform Grant Guidance (formerly known as OMB Circular A -133) • Governmental and Nonprofit Annual Update • Governmental Accounting and Auditing: The Annual Update • Auditing Standards: A Comprehensive Review In addition, the Firm provides comprehensive in -house training for all levels of staff. The program includes seminars developed by the Firm, educational programs developed by the AICPA and CaICPA, and on-the-job training. Every year, all professional and administrative staff members receive an annual overview and review of topics such asthese: • Principles of accounting and financial reporting for state and local governments • Governmental fund types • Newly issued U.S. generally accepted auditing standards and government auditing standards • Internal control evaluation approaches, including COSO Internal Control Framework • Updates on recent governmental accounting and reporting guidelines and pronouncements • Single Audit requirements and approaches • Risk based audit approaches • Working paper techniques • Current issues facing the governmental community These ongoing continuing education activities and training programs ensure that the Engagement Team is always receiving the most current and pertinent information, we believe that an educated staff is a necessity when providing the most efficient and effective audit of the City. Engagement Team Resumes City of Seal Beach deserves experienced professionals who work as a team. The Pun Group, LLP will provide qualified employees to perform the audit. no subcontractors will be used. Resumes for key Engagement Team members follow. 14 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Kenneth H. Pun is the Managing Partner and the Director of the Governmental and Not - for Profit Practice of the Firm. Prior to founding his own practice, Ken was employed by Caporicci & Larson, a specialty CPA firm recognized as one of California's foremost experts in governmental and not - for - profd accounting, auditing, and advisory service. He started with the firm in 2001 and was promoted to Partner in 2008. He has performed numerous audits for cities, counties, transportation agencies, community college districts, other special districts, and not - far -profit healthcare entities of various sizes. By leveraging more than fifteen years of public accounting experience with a high level of expertise, Ken is often engaged by clients as a result of premier level of service he provides, his commitment, and his innovative methods of increasing operational efficiencies and reducing costs. Ken is a trusted advisor and a leader of accounting services to governmental and not - for - profit organizations. In addition to working with clients, Ken provides the audit teams with direction and technical guidance to ensure adherence to The Pun Group's quality controls, and he assists with the development of the Assurance Services practice. Ken also speaks on topics related to audits and quality control and shares his expertise with clients through annual educational seminars. EDUCATION ✓ BS Degree in Business Administration, emphasis in Accounting from the University of California, Riverside 'Licensed by the State of California PROFESSIONAL & CIVIC AFFILIATIONS ✓ Member, American Institute of Certified Public Accountants (AICPA) ✓ Member, California Society of Certified Public Accountants (CaICPA) ✓ Member, CaICPA Governmental Accounting and Auditing Committee ✓ Member, CaICPA Governmental Accounting and Auditing Conference Planning Committee ✓ Member, Government Finance Officers Association (GFOA) ✓ Member, California Society of Municipal Finance Officers ( CSMFO) ✓ Speaker, CSMFO Conference (2014) ✓ Instructor, CaICPA Fall Series (2014) — Long Beach and Orange County Chapter PROFESSIONAL EXPERIENCE 200 East Sandpointe Avenue, Suite 600, Santa Ana. California 92707 Email: Ken.Pun @pungroup -com I Phone: (949) 777 -8801 1 Fax: (949) 777 -8850 15 ' of Arvin City of Arcadia C 0fBadb L i of Car interia • Ci of Cerritos - a Ci • C' of Clovis Town of Danville )cif Desert C' ofE` C of Fairfield City of Gardena C of Huntington Park City of Industry City of Morro Bay City of National City C' of Rid ecrest City of San Bernardino C' of Stockton Alliance Medical Center Desert Hot Springs Health and Wellness Foundation Famil Health Centers of San Diego -us Corn, • -- hh� McCloud Healthcare Clinic Mountain Valleys Health Centers wood Co - -- Shin letown Medical Tulare Community Health Clinic United Health Centers of San Joaquin Valle 200 East Sandpointe Avenue, Suite 600, Santa Ana. California 92707 Email: Ken.Pun @pungroup -com I Phone: (949) 777 -8801 1 Fax: (949) 777 -8850 15 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services OTHER RELEVANT EXPERIENCE City of Stockton The City of Stockton filed a petition for Chapter 9 bankruptcy protection with the United States Bankruptcy Court on June 28, 2012, the largest municipality bankruptcy at the time. The Finn was engaged as audit liaison and advisor in 2012 for the City's 2011 audit. The City also engaged the Finn to help drafting the Comprehensive Annual Financial Report in accordance with U.S. GAAP and in compliance with GFOA guidelines for the certificate of achievement for excellence in financial reporting program. With the superb services provided, the City of Stockton also engaged the Firm to provide audit service for the years ending June 30, 2012 through 2015 due to the early termination of the contract from its predecessor fine. Mr. Kenneth H. Pun has been assigned as the engagement partner who facilitated the audit process since then. The engagement team completed the audit and issued the audit reports for the year ended June 30, 2012 and 2013 within the one year timeframe. City of Desert Hot Springs The City of Desert Hot Springs engaged the Firm to provide professional auditing services since June 30, 2013. During the audit, certain deficiencies were noted that the City cited as the cause of their financial hardship. The City reduced its overall workforce resulting in many positions unfilled. However, our firm was still able to complete the engagement in a timely manner and provide valuable recommendations to the City Council in addressing their deficiencies. In addition, during the year ended June 30, 2013, the City entered into a very complicated financial arrangement, New Market Tax Credit financing, for the construction of the Desert Hot Springs Health and Wellness Center. Our firm has provided guidance to the City in addressing complex accounting issues and helped drafting the stand -alone financial statements to fulfil the addition reporting requirements under the New Market Tax Credit financing. San Diego Metropolitan Transit System ( "MTS ") On January 1, 2003, California Senate Bill 1703 (SB 1703) became effective. SB 1703 required the consolidation of the planning and programming functions of MTS and the North County Transit District (NCTD) into the San Diego Association of Governments (SANDAG) in an initial transfer to take place prior to July 1, 2003. SB 1703 also required the consolidation of certain project development and construction functions of MTS and NCTD into SANDAG in a subsequent transfer to take place prior to January 30, 2004. The initial transfer occurred on July 1, 2003, and the subsequent transfer occurred on October 13, 2003. With these actions, employees were transferred from MTS and NCTD to SANDAG, and certain planning, development, and construction functions were also transferred. After the enactment of SB 1703, Mr. Kenneth H. Pun was able to convert MTS financial model from general - purpose government to standalone business -type activities government under GASB Statement No. 34 in 2007. By doing so, MTS has significantly improved their financial reporting. CONTINUING PROFESSIONAL EDUCATION / Various municipal accounting courses offered by the AICPA, CaICPA Education Foundation and local universities including: • Governmental and Nonprofit Annual Update • Government Auditing Standards • GASB Basic Financial Statements for State and Local Governments • Single Audits: Uniform Grant Guidance (formerly OMB Circular A -133) • Financial Accounting Standards Board Annual Updates • Statement on Standards for Accounting and Review Services Updates Has met the current CPE educational requirements to perform audits of governmental agencies. 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Email: Ken.Pun @pungroup.com I Phone: (949) 777 -8801 1 Fax: (949) 777 -8850 16 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Jack Georger is the Partner of the Governmental Division by leveraging more than forty years of public accounting and auditing experience in the government, agribusiness, financial services, manufacturing and non -profit sectors. Mr. Georger brings an in -depth knowledge and practical expertise to each client engagement. Mr. Georger coordinates, plans, and manages financial audit activities, consulting activities, federal and state compliance audit activities, performance audits and numerous quality control and internal control reviews for a broad mix of governmental agencies and programs throughout the United States. Jack is a continuing professional education course instructor for the AICPA. Annually, he instructs over 300 hours on accounting and auditing subjects. He has coauthored training material in governmental accounting and auditing for the AICPA and is the technical reviewer of the CCH Knovdedge -Based Audits' of State and Loral Governments with Single Audits. Mr. Georger is licensed to practice as a certified public accountant in the states of California, New York, Virginia, Maryland, District of Columbia, Georgia, South Carolina, Missouri, Connecticut (inactive), and Wyoming (inactive), and is a Certified Internal Auditor (CIA). EDUCATION ✓ Bachelor of Science, George Mason University Fairfax, Virginia 'Licensed by the State of California, New York, Virginia, Maryland, District of Columbia, Georgia, South Carolina, Missouri and Connecticut (inactive) and Wyoming (inactive) PROFESSIONAL & CIVIC AFFILIATIONS ✓ Member and Instructor, American Institute of Certified Public Accountants (AICPA) ✓ Member, Institute of Internal Auditors ✓ Member, California Society of Certified Public Accountants (CaICPA) ✓ Member, CaICPA Government Accounting and Auditing Committee ✓ Member, New York Society of Certified Public Accountants (NYSSCPA) ✓ Chairman, NYSSCPA Government Accounting and Auditing Committee ✓ Member, NYSSCPA Auditing Standards Committee ✓ Member, NYSSCPA Financial Accounting Standards Committee ✓ Member, NYSSCPA Not - far -Profit Committee ✓ Member, Missouri Society of Certified Public Accountants (MSCPA) ✓ South Carolina Association of Certified Public Accountants (SCACPA) ✓ Member, Government Finance Officers Association (GFOA) — CAFR Reviewer KEY CLIENTS Local Governments: • Town of Andrews, South Carolina • County of Isle of Wight, Virginia • City of Richmond, Virginia CONTINUING PROFESSIONAL EDUCATION ✓ Instructor of over 300 hours of municipal accounting courses offered by the AICPA ✓ Has met the current CPE educational requirements to perform audits of governmental agencies. 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Email: Jack.Georger@pungroup.com I Phone: (949) 777 -8804 1 Fax: (949) 777 -8850 17 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services , Prior to working with the Firm, Gary founded his own accounting practice. He also spent eleven years with a "Big Eight" professional services firm, where he was an Audit Manager and gained broad experience in a wide range of industries such as government, construction, manufacturing, mutual funds, and insurance. Prior to that, Gary held a consultant position with a "Big Four practice and was Vice President of a national insurance and financial services company. In 2015 Gary Caporicci was appointed to the State Retirement Advisory Committee by the State Controller. ✓ BS Degree in Accounting and Finance from the Armstrong University *Licensed by the State of California PROFESSIONAL 8 CIVIC AFFILIATIONS ✓ Member and Instructor, American Institute of Certified Public Accountants (AICPA) ✓ Member, Author and Instructor, California Society of Certified Public Accountants (CaICPA) ✓ Past Chair, CaICPA Governmental Accounting and Auditing Committee ✓ Chair and Speaker, CaICPA Governmental Accounting and Auditing State Conferences ✓ Member, CaICPA Council ✓ Chair, California Committee on Municipal Accounting (CCMA) ✓ Member, Government Finance Officers Association (GFOA) ✓ Member, California Society of Municipal Finance Officers (CSMFO) ✓ Member, Governmental Accounting Standards Board (GASB), • Member, Deposit and Investment Risks Disclosure Task Force (GASB No. 40) • National Reviewer and Speaker, Government Finance Officers Association • Adjunct Professor, National University • Past Member, Texas Governmental Accounting and Auditing Committee ✓ GFOA Certificate for Excellence in Financial Reporting — Reviewer CONTINUING PROFESSIONAL EDUCATION ✓ Author and instructor of various municipal accounting courses offered by CaICPA Education Foundation and local universities including: • Governmental and Nonprofit Annual Update • Government Auditing Standards • GASB Basic Financial Statements for State and Loral Governments • Single Audits: Uniform Grant Guidance (formedy OMB Circular A -133) ✓ Has met the current CPE educational requirements to perform audits of governmental agencies. 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Email: Gary.Capodcd @pungroup.com ( Phone: (949) 777 -8802 1 Fax: (949) 777 -8850 18 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Frances Kuo is a Senior Manager in The Pun Group, LLP's Assurance division. Frances has over ten years of accounting and auditing experience working with governmental agencies, not - for -profit entifies, and employee benefit plans. Frances also has particular expertise in conducting financial audits under GAO Yellow Book standards and compliance audits in accordance with Uniform Grant Guidance (formerly OMB Circular A -133). Frances has performed audits and other attestation services for several municipalities throughout California including cities, counties, redevelopment agencies, public financing authorities, housing authorities, transportation agencies, and special Districts. She has assisted these clients with publishing their Comprehensive Annual Financial Reports in compliance with GASB Statement No. 34. Ms. Kuo is the in -house instructor who provides training, both theoretical and on- thelob training, to lower level staff. She has developed training materials on the risk based audit approach, GASB Statement No. 34 reporting, Single Audits, and employee benefit plan audits. EDUCATION ✓ BS Degree in Business Administration, Emphasis in Accounting, from the University of California, Riverside ✓ BA Degree in Economics from the University of California, Riverside *Licensed by the State of Califomia, Arizona and Virginia. PROFESSIONAL & CIVIC AFFILIATIONS • Member, American Institute of Certified Public Accountants (AICPA) • Member, California Society of Certified Public Accountants (CaICPA) • Member, California Society of Municipal Finance Officers (CSMFO) RELEVANT PROJECT EXPERIENCE CONTINUING PROFESSIONAL EDUCATION ✓ Various municipal accounting courses offered by the AICPA, CaICPA Education Foundation and local universities including: • Governmental and Nonprofit Annual Update • Government Auditing Standards • GASB Basic Financial Statements for State and Local Governments • Single Audits: Uniform Grant Guidance (formerly OMB Circular A -133) • Financial Accounting Standards Board Annual Updates • Statement on Standards for Accounting and Review Services Updates ✓ Has met the current CPE educational requirements to perform audits of governmental agencies. 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Email: Frances.Kuo @pungroup.com I Phone: (949) 777-88051 Fax: (949) 777 -8850 19 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Coley Delaney is a Senior Manager within The Pun Group, LLP's Assurance division. In his nine years of accounting and auditing experience, Coley has worked with governmental agencies, not - for -profit entities and private for - profit entities. Coley specializes in conducting financial audits under GAO Yellow Book standards and compliance audits in accordance with Uniform Grant Guidance (formerly known as OMB Circular A -133). Coley has performed audits and other attestation services for several governmental agencies throughout California including cities, counties, redevelopment agencies, public financing authorities, housing authorities, transportation agencies, and special districts, and he has helped them publish their Comprehensive Annual Financial Reports in compliance with GASB Statement No. 34. Mr. Delaney develops training materials and shares his expertise internally with other Firm professionals. Coley is a frequent speaker at in -house seminars on topics related to government auditing standards and Single Audits. EDUCATION ✓ BA Degree in Business Economics Emphasis in Accounting from the University of California, Santa Barbara. 'Ucensed by the State of California PROFESSIONAL 8 CIVIC AFFILIATIONS ✓ Member, American Institute of Certified Public Accountants (AICPA) ✓ Member, California Society of Certified Public Accountants (CaICPA) REL FVANT PRO!FrT cxcERiENCE CONTINUING PROFESSIONAL EDUCATION ✓ Various municipal accounting courses offered by the AICPA, CaICPA Education Foundation and local universities including: • Governmental and Nonprofit Annual Update • Government Auditing Standards • GASB Basic Financial Statements for State and Local Governments • Single Audits: Uniform Grant Guidance (formerly OMB Circular A-1 33) • Financial Accounting Standards Board Annual Updates • Statement on Standards for Accounting and Review Services Updates ✓ Has met the current CPE educational requirements to perform audits of governmental agencies. 6265 Greenwich Drive, Suite 220, San Diego, California 92122 Email: Coley. Delaney @pungroup.com I Phone: (858) 242-51011 Fax: (858) 242 -5150 20 City of Arvin C of Arcadia City of Chula Vista City of Clovis Town of Danville City of Fairfield s City of Gardena City of Hennosa Beach City of Industry AW City of montertay ?ark' City of Poway City of National City City of Solana Beach .' City of Stockton of Shafter Medical Services _�_ Centers of San Diego San Dieqo Metropolitan Transit System United Health Centers of San Joaquin Valle Fallbrook Healthcare District SO' thwestem Community College District CONTINUING PROFESSIONAL EDUCATION ✓ Various municipal accounting courses offered by the AICPA, CaICPA Education Foundation and local universities including: • Governmental and Nonprofit Annual Update • Government Auditing Standards • GASB Basic Financial Statements for State and Local Governments • Single Audits: Uniform Grant Guidance (formerly OMB Circular A-1 33) • Financial Accounting Standards Board Annual Updates • Statement on Standards for Accounting and Review Services Updates ✓ Has met the current CPE educational requirements to perform audits of governmental agencies. 6265 Greenwich Drive, Suite 220, San Diego, California 92122 Email: Coley. Delaney @pungroup.com I Phone: (858) 242-51011 Fax: (858) 242 -5150 20 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Catherine Choi is a Supervisor of The Pun Group, LLP. She has more than seven (7) years of governmental experience that ranges from GASB audittreporting, Internal Controls/COSO Framework, Single Audit, Corporate Financial Reporting, Data Analysis and Taxation. In various engagements, Catherine has been involved in providing significant services to various governmental entities and actively contributed and participated in the planning process, implementafion of the audit work plan, supervision of staff, compliance testing for the Single Audit Concept and preparation of the Comprehensive Annual Financial Reports. EDUCATION V BS Degree in Accounting from the California Polytechnic University of Pomona. RELEVANT PROJE^.' EXPERIENCE CONTINUING PROFESSIONAL EDUCATION Various municipal accounting courses offered by the AICPA, CaICPA Education Foundation and local universities including: • Governmental and Nonprofit Annual Update • GovemmentAuditing Standards • GASB Basic Financial Statements for State and Local Governments • Single Audits: Uniform Grant Guidance (formerly OMB CircularA -133) • Financial Accounting Standards Board Annual Updates • Statement on Standards for Accounting and Review Services Updates Has met the current CPE educational requirements to perform audits of governmental agencies. 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Email: Catherine.Choi @pungroup.com I Phone: (949) 777 -8813 1 Fax: (949) 777 -8850 21 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Sophia Kuo is a Senior Auditor of The Pun Group, LLP. She has over four years of public accounting experience including governmental experience that ranges from GASB audittreporting, Internal Controls/COSO Framework, Single Audit, Corporate Financial Reporting, Data Analysis and Taxation. In various engagements, Sophia has been involved in providing significant services to various governmental entities and actively contributed and participated in the planning process, implementation of the audit work plan, supervision of staff, compliance testing for the Single Audit Concept and preparation of the Comprehensive Annual Financial Reports. EDUCATION MAcc from Idaho State University • MBA from Idaho State University • BA Degree in International Trade and Finance, emphasis in Finance from Fu Jan Catholic University licensed by the State of California PROFESSIONAL 8 CIVIC AFFILIATIONS • Member, American Institute of Certified Public Accountants (AICPA) • Member, California Society of Certified Public Accountants (CaICPA) RELEVANT PROJECT EXPERIENCE CONTINUING PROFESSIONAL EDUCATION Various municipal accounting courses offered by the AICPA, CaICPA Education Foundation and local universities including: • Governmental and Nonprofit Annual Update • Government Auditing Standards • GASB Basic Financial Statements for State and Local Governments • Single Audits: Uniform Grant Guidance (formerly OMB Circular A-1 33) • Financial Accounting Standards Board Annual Updates • Statement on Standards for Accounting and Review Services Updates Has met the current CPE educational requirements to perform audits of governmental agencies. 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Email: Sophia. Kuo@pungroup.com I Phone: (949) 777 -8809 1 Fax: (949) 777 -8850 22 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services SECTION V — SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES The following five clients are examples of some of the engagements that are similar to the requirements in the City's proposal. Additional references are available upon request. Please feel free to contact these governmental agencies to learn more about their experiences working with us. Reference 1 Name of Client: City of Stockton Service Period: June 30, 2012 to Present Scope of Work: The Firm has provided professional auditing services to the City of Stockton which includes the audit of the City's CAFR, Single Audit, and Measure W. In addition, the firm has performed agreed -upon procedures of the Appropriation Limit. GFOA Award: Yes Engagement Partner: Kenneth H. Pun I Concurring Partner: Gary M. Caporicci Engagement Manager: Coley Delaney I Compliance Manager: Frances Kuo Total Hours: Average 2,500 hours per year Principle Client Contact: Mr. Edwin Gato, Accounting Manager edwin. gatoCrDstockton. ca.9ov 425 N. El Dorado Street Stockton, CA 95202 (209) 937 -8499 Reference 2 Name of Client: San Diego Metropolitan Transit System Service Period: June 30, 2005 to Present Scope of Work: The Firm has provided professional auditing services to the San Diego Metropolitan Transit System, since 2005, which includes the audit of the CAFR and Single Audit. In addition, the Firm has performed agreed -upon procedures on the Indirect Cost Rates, compliance with California Transportation Development Act for MTS, San Diego Transportation Corporation and San Diego Trolley Incorporated, compliance on National Transit Database and compliance audit on Public Transportation Modernization Improvement and Service Enhancement Account. GFOA Award: Yes Engagement Partner: Kenneth H. Pun I Concurring Partner: Gary M. Caporicci Engagement Manager: Coley Delaney I Compliance Manager: Frances Kuo Total Hours: Average 1,850 hours per year Client Contact: Ms. Erin Dunn, Controller erin. d u nnCcDsdmts. com 1255 Imperial Avenue, Suite 1000, San Diego, CA 92101 (619) 557 -4536 23 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Reference 3 Yes Name of Client: City of Desert Hot Springs Service Period: June 30, 2013 to Present Scope of Work: The Firm has provided professional auditing services to the City of Desert Hot Springs Principle Client Contact: which includes the audit of the City's Basic Financial Statements, and Single Audit. In addition, the fine has performed agreed -upon procedures of the Appropriation Limit and Transient Occupancy Tax (TOT). GFOA Award: N/A Engagement Partner: Kenneth H. Pun Concurring Partner: Gary M. Caporicci Engagement Manager: Frances Kuo Compliance Manager: Coley Delaney Total Hours: Average 500 hours per year Principle Client Contact: Ms. Linda Kelly, Financial Specialist Ikel Iv(&citvofdh s. oro 65 -950 Pierson Blvd. Desert Hot Springs, CA 92240 (760) 329-6411 ext. 289 Reference 4 Name of Client: City of Clovis Service Period: June 30, 2006 to Present Scope of Work: The Firm has provided professional auditing services to the City of Clovis which includes the audit of the City's CAFR, Successor Agency and Single Audit. In addition, the firm has performed agreed -upon procedures of the Appropriation Limit. GFOA Award: Yes Engagement Partner: Kenneth H. Pun Concurring Partner: Gary M. Caporicci Engagement Manager: Coley Delaney Compliance Manager: Frances Kuo Total Hours: Average 400 hours per year Principle Client Contact: Ms. Jamie Hughson, Finance Director JamieH( ci.clovis.ca.us 1033 Fifth Street Clovis, CA 93612 (559) 324 -2106 Reference 5: Name of Client: Town of Danville Service Period: June 30, 1999 to Present Scope of Work: The Firm has provided professional auditing services to the Town of Danville which includes the audit of the City's CAFR, Financing Authority, the Lighting and Landscaping Assessment District's Basic Financial Statements, and Single Audit. In addition, the firm has performed agreed -upon procedures of the Appropriation Limit. GFOA Award: Yes Engagement Partner: Kenneth H. Pun Concurring Partner: Gary M. Caporicci Engagement Manager: Coley Delaney Compliance Manager: Frances Kuo Total Hours: Average 300 hours per year Principle Client Contact: Ms. Lani He, Accounting Manager LHaO-danvi Ile.ca. aov 510 La Gonda Way Danville, CA 94526 (925) 314 -3358 24 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services SECTION VI - SPECIFIC AUDIT APPROACH Scope of Work The City of Seal Beach is requesting an opinion as to the fair presentation of its basic financial statements in accordance with generally accepted accounting principles (GAAP) and applicable laws and regulations. These audits are to be performed in accordance with all applicable and generally accepted auditing standards, including, but not limited to, the following: • Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants. • The standards applicable to financial audits contained in the most current version of the Generally Accepted Government Auditing Standards (Yellow Book), issued by the Comptroller General of the United States. • The provisions of the Single Audit Act as amended in 1996. • The provisions of U.S. Office of Management and Budget (OMB) Uniform Grant Guidance (formerly known as Circular A -133), Audits of State and Local Governments and Non -Profit Organizations and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. To accomplish this task, the Firm will: ✓ Perform an audit of all funds of the City. The audit will be conducted in accordance with Generally Accepted Government Auditing Standards. The CAFR will be in full compliance with all current GASB pronouncements. ✓ Provide assistance in meeting the requirements for the Government Finance Officers Association (GFOA) "Certificate of Achievement for Excellence in Financial Reporting ". ✓ Prepare a Single Audit Report which will include the following: • Report on compliance and on internal control over financial reporting based on audit of financial statements performed in accordance with Government Auditing Standards. • Report on compliance with requirements applicable to each major program, internal control over compliance, and on the schedule of expenditures of federal awards in accordance with Uniform Grant Guidance, OMB Circular A -133, "Audits of State and Local Governments ", and the Single Audit Act of 1984 (Public Law 98 -502). • Schedule of Expenditures of Federal Awards. • Notes to Schedule of Expenditures of Federal Awards. • Schedule of Findings and Questioned Costs. • Any other required schedules or reports. • Prepare the Data Collection Form for Reporting on Audits of States, Local Governments, and Non - Profit Organizations. • Perform agreed -upon auditing procedures pertaining to the City's GANN Limit (Appropriations Limit) and render a letter annually to the City regarding compliance. • Prepare and submit the California State Controllers Cities Financial Transaction Report. • Issue a separate "management letter' that includes recommendations for improvements on internal control, accounting procedures and other significant observations that are considered to be no reportable conditions. Management letters should be addressed to the Director of Finance /City Treasurer and the City Manager. • Provide assistance in the implementation of applicable GASB pronouncements not yet in effect. 25 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services The Firm will be available for consultation by phone on accounting and financial issues during the year at no extra cost. The Firm will also serve as auditor for certain addition projects and studies as may be deemed necessary by the City. The Firm will make an immediate written report of all irregularities and illegal acts or indications of illegal acts of which they become aware. Supplemental reports, audits, or agreed -upon procedures must be added in a written agreement prior to commencing audit work. The Firm and the City will discuss and approved the scope and associated costs of these tasks. Reports to be Issued The following reports will be issued at the fiscal year's financial statements completion: 1. Comprehensive Annual Financial Report -40 copies 2. Single Audit Report — 20 copies 3. Management Letter — 15 copies 4. Independent Accountants' Report on Agreed -Upon Procedures Applied to Appropriations Limit Schedule — 15 copies. Working Paper Retention and Access to Working Papers The Firm will retain, at its own expense, all working papers and reports for a minimum of (7) seven years, unless the City notifies the Firm in writing of the need to extend the retention period. Upon request, the Firm will make working papers available to City of Seal Beach or other governmental agencies included in the federal or state grant audits. The Finn will comply with reasonable requests from successor auditors and allow them to review working papers that relate to matters of continuing accounting significance. Objectives of Our Services Our primary objective for the proposed audit is to examine the City's financial statements and express our opinion on their fairness of presentation, in accordance with generally accepted accounting principles. Other objectives that will benefit the City include the following: • To offer beneficial observations and recommendations about policies and procedures for accounting and operating controls • To identify opportunities to make City operations more efficient and reduce costs • To perform the audit efficiently and effectively, so disruption to office operations is minimized • To provide continuing advisory services to help the City implement recommendations • To meet these objectives at no additional cost to the City The Engagement Team will perform the audit in accordance with the Firm's quality- control procedures, which include following standard audit programs, careful planning, using industry- standardized software for auditing and internal control documentation, and welcoming an objective review of audit work. The Firm will supply portable computers to the onsite staff members. Our audit approach emphasizes careful planning, open communication, and proper assignment of responsibilities. This method ensures that audit requirements will be met with minimal disruption of the City's daily operations, and that the audit will proceed efficiently with full understanding between the Engagement Team and the City. 26 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Proposed Segmentation of the Engagement and Timeline The audit will be performed in four phases: Initial Planning Meeting I During a mutually acceptable time frame, normally May through June of each year. The Engagement Partner and Manager will meet with City's Management to get up to speed with City policies and procedures, establish any specific requirements Management may have, identification of unique transactions, implementation of new GASB pronouncements, and develop the audit work plan for the engagement. Interim I May commence end of May, first week of June of each year. The Engagement Team — including the Engagement Partner —will assess accounting policies adopted by the City, obtain an understanding of the City and its operating environment, review internal controls on all significant transaction classes, perform walkthroughs and /or tests of internal control, perform preliminary analytical procedures, evaluate Single Audit compliance (if needed), identify any audit issues, and prepare confirmation correspondence. The Engagement Team and City Management will establish expectations including responsibilities and assignments for the year -end audit, and will hold a progress status meeting at the end of the Interim phase. Year -End I May commence by mid - September of each year. The Engagement Team — including the Engagement Partner —will conduct audit procedures on account balances in the general ledger, finish confirmation procedures, perform preliminary analytical procedures, search for unrecorded liabilities, perform substantive analytical review procedures, complete work on compliance with Federal Assistance, and conclude fieldwork. The Engagement Team and City Management will hold an exit conference at the end of the Year -End phase. Reporting I Draft copies of reports will be provided in by Mid - October of each year; Completed CAFR, component unit financial statements, Single Audit report and other reports will be delivered by November 16"' of each year. The Firm will follow the schedule below: 1. Draft of CAFR and management letter– no later than October 315' 2. Final CAFR and management letter – no later than November 161° 3. Final GANN Limit report – no later than November 30`" 4. Final Agency's Basic Financial Statements – no later than November 30`" 5. Final Single Audit – no later than December 31' The Firm will review and prepare audit reports and perform quality control procedures in accordance with the Quality Control Standards issued by the AICPA. We will also review reports for compliance with GFOA reporting guidelines at no additional cost. Any comments will be issued in a letter to Management. At the City's request, the Engagement Partner and Manager will present the audit to the City's governing body. The Firm will complete the audit fieldwork and issue all reports within the established timeframe, assuming no internal City circumstances delay the audit. Level of Staff and Number of Hours to be Assigned to Each Proposed Segment of the Engagement The Pun Group, LLP understands that the City is not only looking to employ our auditing services, but is also seeking to receive value within that professional relationship. We believe that our value is derived from our in -depth knowledge, experience, and commitment that our auditing firm employs. We stress and emphasize "employ ", because all of the knowledge and expertise listed on paper will not benefit you unless it is applied. That is why we have developed a plan that we feel will accomplish the objectives of the City and your particular needs. Our Firm will utilize the information that you have shared with us and our experience from our previous audits of this nature, from various government entities and cities to develop an effective plan for all major areas. 27 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Example of Major Areas (not limited to): • Audit of the City's financial statements and the related notes to financial statements • Single Audit procedures and required reporting (if applicable) • Agreed -upon procedures on Appropriations Limit calculation • Communication with those charged with governance • Internal Control and Management Letters (if applicable) Total Hours: Staff Classification Performing work Estimated Hours Annually Total Annual Hours: 410 Sample Size and the Extent to Which Statistical Sampling is to be Used in this Engagement In our audit approach, statistical sampling is used in conjunction with our skilled judgment and knowledge of each situation. The population size and assurance level needed from any given test will determine the sample size used in our testing. Type and Extent of Analytical Procedures to be Used in the Engagement We use analytical procedures during the interim phase to set up expectations for the year -to -date results and balances and compare them with budgeted and prior -year amounts. This allows us to forecast year -end amounts, reducing the workload during the year -end phase and allowing us to focus on areas of concern. We also use trend and ratio analysis to identify any uncertain or unusual events. In order to perform these analysis, our firm performs a survey of cities and counties and develops benchmarks on certain key financial indicators, such as cost of services to tax revenues ratios, average general fund balance, capital assets, debt per capital, general fund unassigned fund balance to total general fund expenditures, etc. Our staff members have previous experience in successfully implanting analytical procedures to the City's benefit. 28 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Approach to be Taken to Gain and Document an Understanding of the City's Internal Control Structure Audit risk assessment will be established by an internal control review, combined with the Engagement Team's understanding of the City's operations and accounting software. Using the Committee of Sponsoring Organizations (COSO) Framework, staff members will evaluate the City's processes and identify any control deficiencies. These diagnostic review procedures allow the Engagement Team to evaluate the City's systems and controls and to provide constructive feedback to City Management. The Engagement Team will perform a walkthrough of the City's accounting systems, including processes for financial reporting, revenue recognition and cash receipts, purchasing /contract management and cash disbursements, and payroll and related liabilities, etc. Auditors will document the process with a flowchart or narrative summary. Approach to be Taken in Determining Laws and Regulations that will be Subject to Audit Test Work The Firm stays continually up to date with audit requirements — including new regulations, compliance supplements, state guidelines, and pertinent contracts —to ensure that we conduct audits in accordance with applicable laws and regulations. We test transactions for compliance with the Single Audit Act, California Government Code, GANN Appropriations Limit, provisions of applicable grant guidelines, requirements of local measures, etc. For example, the Single Audit Act requires that we determine which grants to include in our audit and select transactions from those grants for detailed testing. While most transactions are tested as part of the Interim phase, we cannot determine which grants to test for the Single Audit until the Year -End phase of audit. Our compliance audits of cash, investments, debt covenants, and other areas are performed in accordance with the California Government code, which has many provisions and regulations covering investments. Approach to be Taken in Drawing Audit Samples for Purposes of Tests of Compliance To test compliance, we follow the AICPA's Audit Sampling Considerations of Circular A -133 Compliance Audits. We will select an appropriate sample size based on our professional judgment and knowledge. Any deviations from control and compliance requirements will be documented. GASB Implementation Specialist Gary M. Caporicci, the Firth's GASB Implementation Specialist, is an appointed member to the State Retirement Advisory Committee by the State Controller and has tremendous expertise in assisting clients with the implementation of GASB pronouncements. For more than 40 years, Mr. Caporicci has successfully provided professional auditing, accounting, financial reporting and management advisory/consulting services to a broad spectrum of governmental entities. Caporicci is a leader in the new GASB standards going into effect in the coming years. He will actively assist the City during the process of implementation and compliance related to new accounting standards. 29 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Client Training Seminar Every year, the Firm hosts a conference to update governmental clients on new technical accounting and financial issues. The day -long session —held in Danville, Clovis and Orange County —qualifies for eight hours of CPE with the California Board of Accountancy. Participants of this year's training seminar received a high -level examination of numerous technical issues, including the following: • Survey of Cities and Counties • GASB Updates Lookback on implementation of GASB 68 and 71 • Single Audit Update –Are you ready for the Uniform Grant Guidance new Audit Requirements? The importance of fiscal policies • The Latest and Greatest on Pensions, OPEB, Bankruptcies, Local Initiatives, and the Future of the Defined Benefit Plan • GASB 74 and 75 – the New OPEB Standards Importantly, all of our clients are invited to attend the Pun Group, LLP client training seminar FREE OF CHARGE. 30 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services SECTION VII - IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS While we do not expect any problems with the audit, we will carefully investigate and monitor the following relevant accounting issues: • Investments: • Compliance with GASB 31 and GASB 34 • Authorization and approval process for City investments • Controls to assure City's compliance with investment limitations and types of specific investments • Monitoring by the City of its investments Financial Reporting: • CAFR compliance with current reporting and disclosure requirements issued by GASB • CAFR eligibility for financial reporting conformance awards issued by GFOA • Compliance with the various GASBs in effect, especially the implementation of GASB 68 and 71 related to pension accounting • Compliance with infrastructure obligations and regulatory provisions • Internal Control Structure: • City's internal control functions and compliance with proper internal control philosophies • Computer- system processes and controls, and adequacy of the control environment Over the period of the engagement, several new GASB pronouncements will become effective. The Engagement Team will pay specific attention to the following new and upcoming pronouncements, and any others that become effective during the proposal period, in order to determine proper implementation procedures: • GASB 72 – Fair Value Measurement and Application • GASB 73 – Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68 • GASB 74 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans • GASB 75 – Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions • GASB 76 – The Hierarchy of Generally Accepted Account Principles for State and Local Governments • GASB 77 – Tax Abatement Disclosures • GASB 78 – Pensions Provided through Certain Multiple- Employer Defined Benefit Pension Plans • GASB 79 – Certain External Investment Pools and Pool Participants • GASB 80 – Blending Requirements for Certain Component Units —an amendment of GASB Statement 14 • GASB 81 – Irrevocable Split- Interest Agreements • GASB 82 – Pension Issues —an amendment of GASB Statements No. 67, No. 68, and No. 73 31 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services SECTION VIII - COST PROPOSAL Certification We are committed to the performance of a high quality audit at the most reasonable fee level possible, both initially and throughout the engagement. Also, our partners will provide advice and consultation as needed, at no additional cost to the City of Seal Beach. Name of Firm: The Pun Group, LLP Certified Public Accountants and Business Advisors 200 Sandpointe Avenue, Suite 600 Santa Ana, California 92707 Certification: Kenneth H. Pun is entitled to represent the Firm, empowered to submit the bid, and authorized to sign a contract with the City of Seal Beach. y- Kenneth H. Pun, CPA, CGMA I Managing Partner The Pun Group, LLP Total All - Inclusive Maximum Price Following are our total fixed fees the three (3) fiscal years beginning with Fiscal Year Ending June 30, 2017, with the option to renew for two (2) additional fiscal years. 'Based on the information provided by the City of Seal Beach and our understanding of the engagement, the City is subject to the Single Audit Act in accordance with OMB Uniform Grant Guidance. The Single Audit fees are based on (2) two major programs. If the City of Seal Beach applies for additional funding subsequent to the preparation of this proposal, the fee to audit additional major programs will be $3,000 each. The number of programs determined to be "major' will be based on OMB Uniform Grant Guidance. The Engagement Team will discuss this with the City's Management before starting Single Audit work. 32 Optional Service FY i i i i 19-20 FY 2020 City of Seal Beach - Financial Audit $ 38,500 $ 39,270 $ 40,055 $ 40,857 $ 41,674 Successor Agency Testing - Financial Audit $ 4,500 $ 41590 $ 4,682 $ 4,775 $ 4,871 Single Audit (2 programs)' $ 5,000 $ 5,100 $ 5,202 $ 5,306 $ 5,412 Independent Accountants' Report on Agreed - Upon Procedures Applied to Appropriations Limit $ 500 $ 510 $ 520 $ 531 $ 541 Schedule Total for Fiscal Year (not-to-exceed) $ 48,500 $ 49.470 S 50.459 $ 51,469 'Based on the information provided by the City of Seal Beach and our understanding of the engagement, the City is subject to the Single Audit Act in accordance with OMB Uniform Grant Guidance. The Single Audit fees are based on (2) two major programs. If the City of Seal Beach applies for additional funding subsequent to the preparation of this proposal, the fee to audit additional major programs will be $3,000 each. The number of programs determined to be "major' will be based on OMB Uniform Grant Guidance. The Engagement Team will discuss this with the City's Management before starting Single Audit work. 32 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Out of Pocket Expenses in the Total Maximum Price and Reimbursement Rates The Firm's policy is to maintain Flexible billing rates in order to meet the needs of clients and help them control costs. In the interest of starting our long -term relationship, we will absorb all costs required to familiarize ourselves with the operations and accounting systems, as well as, travel and printing costs. Additionally, our Partners will be available to provide advice and consultation as necessary to the City of Seal Beach. These costs will also be absorbed by the Firm. Rates for Additional Professional Services Below is the Firm's standard hourly billing rates, delineated by staffing levels: Any supplemental reports, audits, or agreed -upon procedures not covered by this proposal may be added in a written agreement prior to commencing audit work. The Firm and the City will discuss and approve the scope and associated costs of these tasks. Any additional work will be performed at the above quoted hourly rates. Manner of Payment Engagement Team members are required to maintain timesheets detailing the date, number of hours, and work performed for every audit task. The Firm will collect these timesheets and bill the City of Seal Beach, at the rates outlined in the Total All-inclusive Maximum Price section, in four stages: (1) at the conclusion of the planning phase, (2) at the conclusion of the interim phase, (3) at the conclusion of the Year -End phase, (4) and after presentation and acceptance of the final audit reports. Interim billings will cover a period not less than a calendar month. The billing amounts generally break down as follows: For Planning 10% For Interim w ork 40% For Year -End w ork 40% At Presentation and Acceptance of Final Reports 10% 100% 33 Auditor's Standard Position Partner(s) Hourly Billing $ Rates FY 2015-16 250 SeniorManager(s) $ 225 Manager(s) $ 200 Supervisor(s) $ 175 SeniorAccountant(s) $ 150 StaffAccountant(s) $ 125 Clerical $ 100 Any supplemental reports, audits, or agreed -upon procedures not covered by this proposal may be added in a written agreement prior to commencing audit work. The Firm and the City will discuss and approve the scope and associated costs of these tasks. Any additional work will be performed at the above quoted hourly rates. Manner of Payment Engagement Team members are required to maintain timesheets detailing the date, number of hours, and work performed for every audit task. The Firm will collect these timesheets and bill the City of Seal Beach, at the rates outlined in the Total All-inclusive Maximum Price section, in four stages: (1) at the conclusion of the planning phase, (2) at the conclusion of the interim phase, (3) at the conclusion of the Year -End phase, (4) and after presentation and acceptance of the final audit reports. Interim billings will cover a period not less than a calendar month. The billing amounts generally break down as follows: For Planning 10% For Interim w ork 40% For Year -End w ork 40% At Presentation and Acceptance of Final Reports 10% 100% 33 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services Benefits of Choosing The Pun Group, LLP The Pun Group, LLP is recognized for its professionalism, integrity, and providing clients with effective resolutions for their unique circumstances and issues. Our Firm prides itself on being able to provide personalized client services, and with that sentiment in mind, we have carefully chosen our engagement teams. The Pun Group's main objective is always to provide the City with solutions and directions, led by highly experienced and capable partners who can successfully implement the work and produce the results you expect. This philosophy and mindset allows us to provide a superior level of service. We trust that this proposal has given you the information you need about the Firm, the Engagement Team members, overall audit approach, cost - saving measures, and audit fees. We are committed to exceeding your expectations, and we look forward to bringing our experience and expertise to the City of Seal Beach and providing you with the excellent level of service that you expect and deserve. Thank You Thank you for giving us the opportunity to introduce the Firm and submit our qualifications to provide you with audit services. Please direct inquiries to: Mr. Kenneth H. Pun, CPA, CGMA Managing Partner 200 East Sandpointe Avenue, Suite 600 Santa Ana, California 92707 ken.pun @pungroup.com (949) 777 -8801 Sincerely, The Pun Group, LLP Certified Public Accountants and Business Advisors 34 APPENDIX Proof of Insurance 35 This page intentionally left blank. 36 CITY OF SEAL BEACH Proposal to Perform Professional Auditing Services A` OR°® CERTIFICATE OF LIABILITY INSURANCE 3/812016 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND. EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does rat confer rights to the certificate holder In lieu of Such endorsement(s). PRO 4,00 "'' Connie Jones Wood Gutmann & Bogart 15901 Red Hill Ave., Suite 100 Tustin CA 92780 noes 714 - 505 -7D00 F"% 714573-1770 A�40or itie"bib.com NSUREIISAFfOnga CO98A0e NAILS W A.TRAVELERS CAS INS CO OF AMER 19046 EKN OCCURRENCE INSURED PUNB.M -1 nsweas a- Travelers Property Casualty Co of A The Pun Croup, LLP 200 East Sandpointe Avenue, Suite 000 Santa Ana CA 92707 _25674 "susenecArgonaut Insurance Company INSURER o:TRAVELERS CAS INS CO OF AMER 19048 INSURER E: INSINER F 55400 351569536 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTAtmING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRISED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POUCIES, UNITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ACCORDANCE WITH THE POLICY PROVISIONS. INSR �L'WM - fOLICYEFF PGUCYDAP Y �' / LTR TYPECF IMSDIINa:E POLICY NUMBER 5!•Sa A X COIlB1MLOB1lNALlMRST Se0]G592120.18 112016 112017 EKN OCCURRENCE CWM4MADE X OCCUR F�1 _$2,000,000 5300.008 SRED EXP(Aq pN pNSRn) 55400 _ VBI90NAL8AOV INMRr _$2,000,000 _ GEED AGGREGATE LIMT APPI£SPER DENERAL AGGREGATE 5 41.001 X 0.^ll(.Y �JE� nLCC WCOURS- COMP,OPAGG 54,000,088 OTHER s D AYfO1aBXEUA ®ury _ BA 9]67o3 112016 1 N1201T ffR�,aNg. - 5 _ 1.000.000 ANY AUTO BODILY INJURY IPw pNSml S PLL ONN<D SUTNUIED AUr ♦NIUREDAUTOS GODLY INJWYIPR 54M8 5 ONT05PNEO % X (Fw aNMO 5 5 UM3RHIA LIAR OCCUR EALH OCCURRENCE s EACE$LIAO CL.W.ADE AGGREGATE 5 DEC RETENTION �S B vIORNERS wAVExsnnax UB4646T41 -2 -16 112016 &12017 LXTLRE AND EAVLOYERS' UABILITY YIN -x 61,(IW,888 N.v PROPRIETCRFFRTNERIECECUTNE EL EACH ACLIOBIf FK AAIEMSER MLUOED? F S1 ,Opp EL pSEARE -FA 55 O[SPoPRtOMN OF OPERARONS Catrw E I DISEASE- POLICY UM] C E60 Pe"% 112010 112017 3,080,000 Rep 1400000 RebD 112911 OFBQtWrIDN OF OPIXATIONSI LDCATRI6 IVBNCLES (ACORD I ACtlIM51 gAISMS 54:10111 mN W SHCMS N INM SAICEN tpuNtel Proof Of Insurance Only CERTIFICATE HOLDER CANCELLATION ®1988 -2014 ACORD CORPORATION. All rights reserved. ACORD 25 )2014101) The ACORD name and logo are registered marks of ACORD 37 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Proof Of Insurance Only ACCORDANCE WITH THE POLICY PROVISIONS. A'rns) I ED AWRESENTATIPW Y �' / ®1988 -2014 ACORD CORPORATION. All rights reserved. ACORD 25 )2014101) The ACORD name and logo are registered marks of ACORD 37 200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707 TfIE � U N G RO Up Phone: (949) 777 -8800 1 Fax: (949) 777 -8850 1 www.pungroup.com