CalHFA staff presented a multi-phase procurement plan to the Audit and Risk Management Committee for selecting its next external auditing firm, saying the current contract with CliftonLarsonAllen is expected to expire on December 31, 2025.

The plan, presented by agency staff, sets out four broad phases: define auditor requirements (experience with housing finance and public-sector audits, technological capabilities, and staff qualifications); establish selection criteria (expertise, reputation, cost-effectiveness, and modern audit tools); run an application and screening process; and conduct finalist interviews with committee participation before legal negotiates a final contract.

Staff said they will conduct broad outreach, including posting a request for proposals and encouraging bids from small firms. The shortlist will target firms that can audit CalHFA's complex financial statements (including federal awards and multiple compliance audits) and that have adequate data-security and audit-technology capabilities.

On committee involvement, staff said they expect to bring a short list to committee members for interviews and assessment of candidate fit. The tentative schedule shared in the meeting: staff will refine selection criteria this spring, present shortlisted firms for committee interviews in August/September, and complete contract negotiations thereafter. A staff speaker said the plan is to have a minimum of three finalists for the final interview round and to use committee feedback before contracting.

Committee members asked to be involved earlier in the process. One committee member requested that the selection criteria be brought to the committee for review and endorsement as the point at which the committee provides input. Staff agreed and said they would engage committee members during the short-listing and interview phase.

Staff highlighted other planning items tied to the procurement timetable: the firm will need to meet data-handling and confidentiality requirements; the contract will cover audits of the housing finance fund, federal programs (including Section 8 variants), and two compliance audits of down-payment assistance programs; and the process will include reference checks and a review of disciplinary or regulatory history.

The committee scheduled future agenda items that support the procurement and oversight work: a May 20 meeting to review the agency's risk framework and a planned August meeting for interviews of top candidates. A later fall meeting will include an information-technology security update from the agency's chief information officer.

No public comments were raised during the procurement discussion.

Ending: Committee members supported staff's approach and asked that selection criteria be circulated for committee feedback ahead of the finalist interviews.