The Risk and Audit Committee on Sept. 11 interviewed finalists and recommended awarding the independent financial‑statement audit contract to BDO USA as the highest‑ranking finalist, subject to final negotiations and satisfaction of requirements.

Committee chair Malia Cohen said the external auditor's role is "to provide an audit of CalPERS basic financial statements" and stressed the importance of generally accepted accounting principles (GAAP). The committee approved staff direction to begin contract negotiations with BDO USA and, if those negotiations prove unsuccessful, to negotiate with Plante Moran as the next highest scoring finalist.

The committee made the selection as part of the external auditor request‑for‑proposal process. The decision passed in committee on a roll‑call vote; staff will proceed to negotiate contract terms and finalize the award if satisfactory terms are reached.

Why it matters: The external auditor is responsible for the independent audit of CalPERS' basic financial statements. The committee also noted that the independent auditors’ report for fiscal year 2024–25 and the auditors’ management letter will be reviewed at the November Risk and Audit Committee meeting.

Next steps: Staff will begin negotiations with BDO USA and complete required pre-award steps. If negotiations do not produce an acceptable contract, staff will move to the next highest ranked firm per the committee's instruction.