CalHFA audit committee outlines multi-step procurement to select next external auditor
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Summary
CalHFA staff told the audit committee they plan a multi-phase request-for-proposal process to select auditing services after CLA's contract ends Dec. 31, 2025. Proposed steps include defining firm qualifications, an evaluation panel, and committee interviews of finalists.
CalHFA audit committee members reviewed a planned multi-step procurement timeline on Feb. 20 as the agency prepares to replace its external auditor when the current contract with CliftonLarsonAllen ends Dec. 31, 2025.
Comptroller Oksana Glushenko and staff outlined a procurement that will emphasize public-sector experience, housing-industry expertise and modern audit technology. The plan calls for: defining required skills and scope, issuing an RFP, screening proposals, a short list of 3 to 5 finalists, interviews with the audit committee, and legal negotiation of a final contract.
Glushenko said staff will perform broad outreach to maximize competition and include minority- and small-business firms in targeted outreach. The committee will be engaged at the finalist-interview stage; audit committee members asked that the selection criteria be presented to the committee for discussion before the finalist interviews.
Why it matters: The agency's external auditor performs the statewide financial-statement opinion and single-audit work. Committee members and staff said they want transparent, documented evaluation criteria and committee buy-in before finalist interviews to ensure a robust selection.
Process details and timing
Staff described the planned steps: - Define auditor requirements (public-sector experience, mortgage/financial-services and housing-sector familiarity). - Establish selection criteria (experience, reputation, cost structure, technology and tools). - Issue RFP and screen proposals; create a shortlist of three to five top candidates. - Audit committee members will interview finalists (staff proposed scheduling interviews in August-September). - Negotiate contract and finalize award, including data-handling and confidentiality terms.
Committee request and next steps
Director Henning and other members asked that staff present the draft evaluation criteria to the committee once it is developed so committee members can comment before the finalist interviews. Staff agreed to return to the audit committee with the proposed criteria and to coordinate interview schedules that allow committee participation.
Bottom line: The committee supported a transparent, multi-step RFP and interview process and asked to review the evaluation criteria before finalists are interviewed.