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Award of Contract to KPMG Peat Marwick for Comprehensive Financial Audit Services May 16, 1994 Page 3. The firm as presently constituted, only has one local government client - the City of Calexico. Previous work performed for the City of Los Angeles and City of Simi Valley were awarded to Miranda & Macias which dissolved and split into two separate firms at the start of 1994. The audit work with Los Angeles and Simi Valley was retained by Macias & Company since the break-up. RJ Miranda & Company does not have in-house experts participating as reviewers in the GFOA or CSMFO financial reporting certificate program. Such review expertise has proven to be critical in the City of Santa Ana's continued receipt of these awards for financial reporting - generally recognized as the most prestigious in the field of governmental accounting. - Based on responses to questions at the oral interview, it was apparent that Miranda's audit team has not kept up-to-date with current issues being addressed by the Governmental Accounting Standards Board (GASB) and its recent pronouncements and exposure drafts on governmental accounting standards, particularly GASB Statement No. 11 - Measurement Focus and Basis of Accounting - Governmental Fund Operating Statements. - While Miranda had previously done audit work with the City of Santa Ana, it was conducted under the auspices of Miranda Strabala & Associates which also dissolved prior to Miranda's merger with Macias. Miranda conducted the city's audit as a joint venture with Deloitte & Touche, with Deloitte as the lead agency for the entire length of the engagement. The selection committee also determined that the KPMG Peat Marwick proposal was better than the Ernst & Young/Macias proposal (despite the $3,000 cost differential .over five years) given the greater overall experience of the Peat Marwick audit team in conducting audits of municipalities in Southern California, the greater experience in directly handling engagements with larger cities, the firm's organizational structure in dedicating professional staff directly to the government sector, and the firm's quality service program as the only firm to implement a formal program of obtaining tangible feedback from clients (Client Service Measurement Process).