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HomeMy WebLinkAboutStaff Report 2504-4602CITY OF PALO ALTO Policy & Services Committee Special Meeting Tuesday, May 13, 2025 7:00 PM     Agenda Item     3.Recommend City Council Approval to Amend the FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized Budgets with a Net Zero Impact Staff Presentation 7 1 9 5 Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: May 13, 2025 Report #:2504-4602 TITLE Recommend City Council Approval to Amend the FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized Budgets with a Net Zero Impact RECOMMENDATION The City Auditor recommends that the Policy & Services Committee recommend City Council approve the amendment of the FY 2024 and FY2025 Task Orders to realign the authorized budgets with a net zero impact overall: •FY 2025 Task 4.32: CSD Equipment and Materials Inventory Management reduced by $20,000 •FY 2024 Task 4.25: Emergency Preparedness – Wildfire increased by $5,000 •FY 2024 Task 4.28: Dispatch Center Assessment increased by $15,000 BACKGROUND In accordance with our agreement with the City, Baker Tiily is required to conduct recurring activities each year. Task 4: Execute the Annual Audit Plan comprises the majority of our budget and time. Specific audit task orders are approved annually by the Council and executed by the Policy & Services Committee (P&S) Chair as the Project Manager for the Baker Tilly contract as stipulated in the contract terms. ANALYSIS The Office of the City Auditor (OCA) is seeking changes to task orders for the P&S Committee’s recommendation for Council Approval. If these Task Order changes are approved unanimously by the P&S Committee, this recommendation will be forwarded to the full City Council approval on May 19, 2025 consent calendar for Council approval. For FY 2024, two audit activities, Task Order 4.25: Emergency Preparedness (Wildfire) Audit and Task Order 4.28: Dispatch Center Assessment were included as part of the Annual Audit Plan. 7 1 9 5 Both of these audits required a high degree of complexity in terms of research and analysis. The approved budgets for executing these task orders was not sufficient. The Office of the City Auditor wrote off some expenses for both of these projects. However, as these projects had extended reporting periods necessitating multiple management reviews and extending project work into 2025, the Office of the City Auditor is seeking to transfer unused funds from an FY 2025 Task Order, Task Order: 4.32 CSD Equipment & Materials Inventroy Management Audit, to defray these additional costs. No change to the overall FY2025 budget is requested. •Task 4.25: Emergency Preparedness (Wildfire) – increase budget by $5,000 •Task 4.28: Dispatcher Center Assessment – increase budget by $15,000 •Task 4.32: CSD Equipment & Materials Inventory Management – reduce budget by $20,000 FISCAL/RESOURCE IMPACT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-4.25 Emergency Preparedness Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referencedFY24 in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. 1B. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340A TASK O RDER NO.: FY23-4.25 2.CONSULTANT NAME: Baker Tilly Advisory Group, LP 3.PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $73,110 $75,110.00 Increased by $2,000.00 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Lydia Kou, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title____________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Baker Tilly Advisory Group, LP 12/23/2024Manager/ City Auditor Kate Murdock 12/25/2024 Council Member Council Member Lydia Kou Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: Services and Deliverables To Be Provided Schedule of Performance Maximum Compensation Amount and Rate Schedule (As Applicable) Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting an internal audit of Emergency Preparedness involves three (3) primary steps: Step 1: Audit Planning Step 2: Control Review and Testing Step 3: Reporting Step 1 – Audit Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include: Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable o Review additional documentation and conduct interviews as necessary Assess the audit risk Write an audit planning memo and audit program o Refine audit objectives and scope o Identify the audit procedures to be performed and the evidence to be obtained and examined Announce the initiation of the audit and conduct kick-off meeting with key stakeholders o Discuss audit objectives, scope, audit process, timing, resources, and expectations o Discuss documentation and interview requests for the audit Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Step 2 – Control Review and Testing This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to determine whether the City is working to prevent wildfire and adequately prepared to respond to wildfire as part of the City’s emergency management plan. Procedures include, but not limited to: Interview the appropriate individuals in all relevant departments to gain an understanding of the organizational structure, processes, and controls related to wildfire prevention and response as well as the City’s overall emergency preparedness. Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control design and effectiveness. Review the existing emergency management plan and other related documents such as prevention activities, training and exercises, equipment, and service contracts. Compare the process and controls against the best practices. Step 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include: Develop findings, conclusions, and recommendations based on the supporting evidence gathered Validate findings with the appropriate individuals and discuss the root cause of the identified findings Complete supervisory review of working papers and a draft audit report Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses Obtain written management responses and finalize a report Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverable will be prepared as part of this engagement: Audit Report Schedule of Performance Anticipated Start Date: March 1, 2024 Anticipated End Date: December 31, 2024 Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $73,110. The not-to-exceed budget is based on an estimate of 385 total project hours, of which 25 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $6,500. The following summarizes anticipated reimbursable expenses: Round-trip Airfare – $2,000 (1 round trip flights x 2 auditors) Ground Transportation (car rental or Uber/taxi) - $800 Hotel accommodation - $3,000 (2 rooms x 4 nights) Food and incidentals – $700 Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-4.28 Dispatch Center Program Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-4.28 2.CONSULTANT NAME: Baker Tilly Advisory Group, LP 3.PERIOD OF PERFORMANCE: START: August 15, 2024 COMPLETION: February 28, 2025 4.TOTAL TASK ORDER PRICE: $76,540 $79,040 Increased by $2,500.00 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5.BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6.CITY DEPARTMENT PROJECT MANAGER’S NAME & Lydia Kou, Chair of the City Council’s Policy and Services Committee 7.DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) 8.ATTACHMENT REIMBURSABLE EXPENSES, if a Task Order Scope any of Service “not to exceed” (with amount) B (if any): N/A 9. I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title______________________ Date __________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: Baker Tilly Advisory Group, LP BY:____________________________________ Name __________________________________ Title___________________________________ Date _ _________________________ Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Kate Murdock Manager/ City Auditor 12/23/2024 Council Member 12/25/2024 Council Member Lydia Kou Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: Services and Deliverables To Be Provided Schedule of Performance Maximum Compensation Amount and Rate Schedule (As Applicable) Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting an assessment of the Dispatch Center Program involves three (3) primary steps: Step 1: Assessment Planning Step 2: Control Review and Testing Step 3: Reporting Step 1 – Assessment Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall assessment objective and to solidify mutual understanding of the project scope, objectives, process, and timing between stakeholders and auditors. Tasks include: Gather information to understand the environment under assessment o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit and/or assessment results, as applicable o Review additional documentation and conduct interviews as necessary Write an assessment program o Refine objectives and scope o Identify the assessment procedures to be performed and the evidence to be obtained and examined Announce initiation of the assessment and conduct kick-off meeting with key stakeholders o Discuss objectives, scope, assessment process, timing, resources, and expectations o Discuss documentation and interview requests for the assessment Step 2 – Control Review and Testing This step involves executing the procedures in the assessment program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary assessment objective is to: (1) Determine whether the City’s Dispatch Center Program is operating efficiently and effectively to meet community needs. Procedures include, but are not limited to: Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to the Dispatch Center Program. Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control program effectiveness. Review overall Dispatch Center Program performance, including selecting a sample of Dispatch Center Calls to test for efficiency and effectiveness of response and triage for services. Compare the performance, process, and controls against the best practices. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Ste p 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize assessment working papers, prepare and review a draft report with the stakeholders, and submit a final report. Tasks include: Develop findings, conclusions, and recommendations based on the supporting evidence gathered Validate findings with the appropriate individuals and discuss the root cause of the identified findings Complete supervisory review of working papers and a draft report Distribute a draft report and conduct a closing meeting with key stakeholders o o Discuss the results, finings, conclusions, and recommendations o Discuss management responses Obtain written management responses and finalize a report Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverable will be prepared as part of this engagement: Report Schedule of Performance Anticipated Start Date: August 15, 2024 Anticipated End Date: February 28, 2025 Maximum Compensation Amount The not-to exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $76,540. The not-to exceed budget is based on an estimate of 415 total project hours, of which 100 are estimated to be completed by the City Auditor. Reimbursable Expenses If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $8,500 The following summarizes anticipated reimbursable expenses (for three team members): Round-trip Airfare - $2,000 (3 round trip flights) Ground Transportation (car rental or Uber/taxi) - $1,500 Hotel Accommodation - $3,500 (12 nights) Food and incidentals - $1,500 Confidential Information 1.In the performance of this Task Order, Baker Tilly (“AUDITOR”) may have access to CITY’s Confidential Information (defined below). AUDITOR will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Task Order and for no other purpose. AUDITOR will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. This includes the use of encrypted, access- controlled storage for any Confidential Information stored in electronic form. Notwithstanding the foregoing, AUDITOR Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 may disclose Confidential Information to its employees, agents and subcontractors, if any, only to the extent they have a need to know in order to perform AUDITOR’s obligations to CITY under this Task Order and for no other purpose, and provided that the AUDITOR informs them of, and requires them to follow, the confidentiality and security obligation s of this Task Order. 2.“Confidential Information” means all data, information, and materials of a non-public, proprietary or confidential nature, in any form or medium, tangible or intangible, provided or otherwise made available to AUDITOR by CITY, directly or indirectly, pursuant to this Task Order. For this Task Order, such Confidential Information may include dispatch calls, dispatch radio/phone traffic (including recordings, summaries, and transcripts of such traffic), dispatch logs and computer-aided dispatch (CAD) data, observations of the dispatch service (including recordings, summaries, notes, and transcripts of such observation), any information protected by law obtained by AUDITOR in conducting this Task Order (including but not limited to criminal background data, customer utility data, medical information, mental health conservatorship data, witness and victim identities protected by law, law enforcement intelligence, law enforcement investigations, law enforcement personnel file information protected by law, and “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time)). In addition to the Confidential Information itself, AUDITOR agrees that deliberations, conversations and discussions pertaining to the Confidential Information shall be kept confidential and shall not be disclosed without approval of CITY, and any required reporting incorporating Confidential Information will present findings in de-identified or summary formats as agreed by the Parties. 2.1. Exceptions: Confidential Information excludes information that AUDITOR can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become pub licly known other than by a breach of this Agreement and is not otherwise protected from further sharing by law; (ii) was rightfully in AUDITOR’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfu lly obtained by AUDITOR from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of AUDITOR without any use of or access to the Confidential Information; or (v) AUDITOR has written consent to disclose signed by an authorized representative of CITY. 2.2 Confidential Markings: As practicable, the Confidential Information shall be marked with the words “Confidential” or “Confidential Material” or with words of similar import. To the extent possible, t he disclosing party (whether CITY or AUDITOR) shall endeavor to mark any electronic document intended to be covered by the terms of these confidentiality provisions with the words “Confidential” or similar words, shall notify the receiving parties (for example, by cover e-mail transmitting the electronic document) that the electronic document is Confidential Information, and, for documents shared via encrypted cloud storage, shall file such Confidential Information in folders so labeled. The City’s failure, for whatever reason, to mark any material at the time it is produced to the AUDITOR, or to notify AUDITOR that oral or electronic material is Confidential Information at the time it is provided, shall not remove the material from the coverage of these confidentiality obligations, and the AUDITOR shall treat the material as Confidential Information once the CITY has notified it that the material is to be covered by these provisions. 3.Notwithstanding the foregoing, AUDITOR may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that AUDITOR will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless AUDITOR is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 4.AUDITOR will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, AUDITOR will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 5.Prior to or upon termination or expiration of this Task Order, AUDITOR will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on AUDITOR. Notwithstanding the return or destruction of tangible Confidential Information as contemplated by this subsection, AUDITOR and its representatives will continue to be bound by all obligations of confidentiality with respect to the CITY’s Confidential Information. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 16 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.32 CSD Equipment and Materials Inventory Management Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340A 1B. TASK ORDER NO.: FY25-4.32 2. CONSULTANT NAME: Baker Tilly Advisory Group, LP 3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025 4. TOTAL TASK ORDER PRICE: $89,900 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Lydia Kou, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Kate Murdock 12/23/2024 Manager/ City Auditor Council Member Council Member Lydia Kou 12/25/2024 17 Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: Services and Deliverables To Be Provided Schedule of Performance Maximum Compensation Amount and Rate Schedule (As Applicable) Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting an internal audit of the Community Services Department Equipment and Materials Inventory Management three (3) primary steps: Step 1: Audit Planning Step 2: Fieldwork and Testing Step 3: Reporting Step 1 – Audit Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include: Gather information to understand the environment under review o Understand the environment under assessment o Assess the City code, regulations, and other standards and expectations o Assess prior audit results, as applicable o Assess additional documentation and conduct interviews as necessary Assess the audit risk Prepare an audit planning memo and audit program o Refine audit objectives and scope o Identify the audit procedures to be performed and the evidence to be obtained and examined Announce the initiation of the audit and kick-off meeting with key stakeholders o Discuss audit objectives, scope, audit process, timing, resources, and expectations o Discuss documentation and interview requests for the audit Step 2 – Fieldwork and Testing The step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives The preliminary audit objective is to determine if the Community Services Department Equipment and Materials Inventory Management system is operating effectively and efficiently: Interviewing the appropriate individuals to gain an understanding of the equipment and materials inventory management system Analyze policies and procedures related to equipment and material management and procurement to identify the criteria to be used for evaluation of control design and effectiveness Compare processes and controls against best practices Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 18 Step 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with stakeholders, and submit a final report for management response. Tasks include: Developing findings, conclusions, and recommendations based on the supporting evidence gathered Validating findings with appropriate individuals and discuss the root cause of the identified findings Complete supervisory review of working papers and a draft audit report Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, findings, conclusions, and recommendations o Discuss management responses Obtain written management responses and finalize a report Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverables will be prepared as part of this engagement: Audit Report Policy & Services Committee Audit Report Presentation Schedule of Performance Anticipated Start Date: January 1, 2025 Anticipated End Date: June 30, 2025 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $89,900. The not-to-exceed budget is based on an estimate of 500 total project hours, of which a minimum of 40 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $6,500. The following summarizes anticipated reimbursable expenses: Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors) Ground transportation – $800 (car rental or Uber/taxi) Hotel accommodation – $3,000 (2 rooms x 4 nights) Food & Incidentals – $2,100 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. City of Palo AltoOffice of the City Auditor (OCA) Policy & Services Committee Meeting Task Order Changes City Auditor: Kate Murdock May 13, 2025 City Auditor recommends the Policy and Services Committee recommend City Council: Amend FY2024 and FY2025 Task Orders to realign the authorized budgets with a net zero impact overall: o FY2025: Task 4.32 – CSD Equipment and Materials Inventory Management reduced by $20,000 o FY2024: Task 4.25 – Emergency Preparedness – Wildfire increased by $5,000 o FY2024: Task 4.28 – Dispatch Center Assessment increased by $15,000 RECOMMENDATION 2 Questions? Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. The name Baker Tilly and its associated logo is used under license from Baker Tilly International limited. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. © 2024 Baker Tilly Advisory Group, LP