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Port Hueneme Water Association approves three-year auditing contract with Harshwall and Company
Summary
The Port Hueneme Water Association voted unanimously to award a three-year contract, with two one-year renewal options, to Harshwall and Company, LLP to perform financial audits; first-year cost is $13,000 with a 5% annual escalation clause.
The Port Hueneme Water Association on Monday approved a contract to hire Harshwall and Company, LLP to conduct the agency’s financial audits for three fiscal years with an option to renew for two additional years. The board voted unanimously with Chair Hernandez absent to authorize staff to execute the agreement after the association’s attorney reviews the contract.
Staff presented the procurement background to members, saying the RFP was posted March 17, received six qualified proposals by the May 30 deadline and recommended the lowest qualified bidder. Ashley, a staff member, said the selected firm’s first-year fee is $13,000 and includes a 5% inflationary adjustment for subsequent years. Ashley said the agency had budgeted $13,000 for the audit and that the selected firm is a 15-year-old practice whose proposed team has about 40 years of combined accounting experience.
The presentation explained that the agency’s prior auditor, Brown Armstrong, had served for more than 20 years and that the California State Controller’s Office recommends rotating audit firms about every six years to preserve auditor independence. Staff also said they called references, including Valley of the Moon Water District, which gave positive feedback on the firm’s work.
Board members asked questions during the presentation. One member asked whether the $13,000 is lower than the previous contract; staff said the new price is below last year’s cost but that the exact prior-auditor fee was not specified in the record. Members also asked how the 15-year firm compares with larger firms; staff replied that larger firms typically charge more because they deploy larger teams and that PHWA’s audit is relatively routine. A board member asked whether a 5% annual inflation adjustment is normal; staff described that as toward the lower end of typical audit escalators.
The motion to approve the recommendation was made and seconded; the clerk recorded an affirmative vote and the motion passed unanimously with Chair Hernandez absent. Staff was authorized to execute the contract following legal review.
The item concluded with no public comments and no further follow-up direction recorded.
