The CalPERS Risk and Audit Committee opened interviews with four finalist firms Wednesday as part of a competitive process to select an independent financial-statement auditor for a five-year contract that the materials say will exceed $1,000,000. The request for proposals was released May 20, 2025, and the contract would cover fiscal years 2025–26 through 2029–30.

The interviews follow a Board of Administration action on Feb. 18, 2025, that authorized CalPERS staff to issue the RFP and allowed use of a subcommittee to interview and recommend finalists, Kevin Fine, chief compliance officer, said in the committee’s executive report. "It was approved to use a subcommittee of the Risk and Audit Committee to interview and recommend the finalist to the full committee and board of administration for a 5 year contract that will exceed $1,000,000," Fine said.

Justin Heeb, CalPERS contracts and procurement manager, told the committee that CalPERS received seven proposals by the July 7, 2025, filing deadline and that four passed technical evaluation to become finalists: BDO USA, P.C.; Plante Moran, P.C.; Crowe LLP; and KPMG LLP. Heeb provided preliminary fee scores and said each finalist earned 50 Disabled Veteran Business Enterprise (DVBE) incentive points that were added to fee scores for a preliminary total. "BDO USA PC received 300 points for their fee proposal, 50 points for their DVBE incentive points for a preliminary total score of 350 points," Heeb said. Heeb gave the other preliminary totals as: Plante Moran, P.C., 344.59; Crowe LLP, 340.96; and KPMG LLP, 338.68.

Each finalist was given 50 minutes for its interview — a five-minute presentation followed by 45 minutes of questions and answers. The committee agreed to conduct the interviews in alphabetical order and to score the interviews as a group after all finalists had been heard. "All finalists will be asked the same questions," Heeb said. The committee said it will combine the interview score with the preliminary total to determine an overall score and then make a motion recommending the Board award the contract to the highest-scoring finalist, "subject to final negotiations and satisfaction of all requirements," Heeb said.

The committee also turned off the public webcast for the interviews to prevent finalists from seeing competitors' presentations; the webcast will resume for the committee’s post-interview discussion and scoring. The chair said the rule that firms must not view other firms’ interviews is a condition of continuing in the competition and warned that failure to adhere could result in disqualification.

No final award was made at the meeting. The session moved into the interview portion of the RFP process; the committee will vote on interview scores and may then forward a recommendation to the full Board of Administration for final action after negotiations and verification of requirements.