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The City Council on March 10 unanimously approved an agreement with The Pun Group to perform the annual audit of Seal Beach. The term would be for three years. There is money in the budget to cover the costs, according to the staff report.
This was a Consent Calendar item. Consent items are voted on collectively, without discussion, unless a council member pulls one or more items for further discussion. This item was not pulled.
The PUN Group has served such cities as Lakewood, Lynwood, Montebello, Monterey Park, and the city of Paramount, according to public record.
Background
“On January 13, 2025, the City issued a Request for Proposal (RFP) for professional auditing services, with a submission deadline of February 10, 2025. Out of thirteen prospective bidders, only The Pun Group submitted a responsive bid within the required guidelines,” according to the staff report by Finance Director/Treasurer Barbara Arenado.
The Pun Group has audited Seal Beach for the past eight years, according to Barbara Arenado.
“During this time, they have consistently delivered high-quality audits, met all deadlines, and provided year-round assistance to City staff,” Arenado said.
“Staff have had positive experiences working with The Pun Group, citing their responsiveness, professionalism, and ability to adapt to the City’s evolving financial needs,” Arenado wrote.
“Given The Pun Group’s strong track record, familiarity with the City’s financial operations, and adherence to government auditing standards, staff recommends awarding a contract for audit services to The Pun Group for a three-year term, with an option to renew for two additional one-year terms,” Arenado wrote.
“The Pun Group fees for services to be provided are outlined in the attached proposal in the amounts of $52,140 for FY 2024-25, $54,747 for FY 2025-26, and $57,485 for FY 2027-28 for the original term. The Agreement also provides the City with the option to renew for two additional one-year terms, in the not-to-exceed amount of $60,359 for the first extension and $63,376 for the second extension. A contingency of up to $5,000 per year for audit services related to Governmental Accounting Standards Board (GASB) is also requested. There are adequate funds budgeted for the annual audit and future years’ funding will be included as appropriate,” Arenado wrote.
