Independent Auditor

The Town of Los Gatos sent Requests for Proposals (RFP) to qualified independent certified public accounting firms to audit its financial statement for three fiscal years, with an option to extend the agreement an additional two fiscal years with Town Council approval.  The RFP was sent to thirty-four qualified firms known to provide local government auditing services.  Six firms responded with proposals: Badawi & Associates, Chavan & Associates, Eadie & Payne, Edie Baily, Maze & Associates, and R.J. Ricciardi.

A selection panel consisting of one Finance Commissioner, the Finance Director, Assistant Town Manager, Finance and Budget Manager, and Finance Accountant reviewed and scored the six proposals.  The firms were evaluated based on their technical expertise with local government audits, qualified personnel, and responsiveness to the RFP.  These qualities were weighted at seventy percent and proposed fees weighted at thirty percent.  The cost for audit services were submitted in sealed envelopes and not opened until after the proposals were scored based on technical expertise, local government experience, and responsiveness.  Based on this analysis, three firms (Chavan & Associates, Edie Baily, and Maze & Associates) were selected to participate in an interview.

Based upon the proposals, interviews and reference checks, Town staff in consultation with the Finance Commission and final approval from Town Council has selected the firm of Chavan & Associates.  The managing partner is Mr. Sheldon Chavan, who began his career in public accounting over 20 years ago.  He is a CPA licensed in California and a member of American Institute of Certified Public Accountants (AICPA), California Society of Certified Public Accountants (CalCPA), California Society of Municipal Finance Officers (CSMFO), Governmental Audit Quality Center (GAQC), and Government Finance Officers Association (GFOA).  He has also been a member of the GFOA Special Review Committee, with responsibility for reviewing Annual Comprehensive Financial Reports (ACFR) for award of the Certificate of Excellence in Financial Reporting.  The firm’s current audit client list includes City of Oroville, City of Saratoga, and the City of Pacific Grove amongst a list of many other California cities that are audited by Chavan and Associates.  

The firm will provide the following services for the Town:

• The annual audit of the basic financial statements in accordance with Governmental Accounting Standards and preparation of the Town’s Annual Comprehensive Financial Report;
• A report communicating information related to the audit to those in charge of governance (Town Council) at the conclusion of the audit;
• A management letter containing any comments or recommendations resulting from the review of systems of internal controls in connection with the financial audit;
• A Single Audit for grant funding if required under the Title 2 U.S. Code of Federal Regulations;
• Measure G district sales tax audit;
• Pension trust audit; and
• Optional services including the preparation of the annual report of financial transactions to the State Controller.