RFP #R005840 Financial Auditing and Related Services

The California State Lottery is soliciting proposals under RFP #R005840 to engage a qualified independent CPA firm for annual financial auditing and related services. The selected contractor will be responsible for conducting annual financial statement audits in accordance with AICPA and GASB Statement No. 34 standards, performing agreed-upon procedure engagements for Mega Millions and Powerball, and reviewing the Annual Comprehensive Financial Report. Key deliverables include the annual audit report, which is generally due by October 31st, and a management letter evaluating internal accounting controls. All electronic deliverables must be ADA compliant per WCAG 2.0 level AA standards. The contract is established for an initial three-year term, with the option for the Lottery to unilaterally extend the agreement for up to two additional one-year periods. The award will be based on a best-value proposal evaluation, considering the firm's experience, the qualifications of key personnel—specifically a Lead Partner with at least ten years of CPA experience—and the soundness of the proposed audit and transition plans. Proposers must adhere to strict security requirements, including FIPS 140-3 encryption for sensitive data and a security plan ensuring separation of duties. Payment is structured monthly in arrears with a 45-day payment cycle following the approval of undisputed invoices. The solicitation includes specific preferences for California certified Small Businesses and Disabled Veteran Business Enterprises, offering up to a 5% cost preference. Additionally, contractors must complete a GenAI Impact Assessment if utilizing generative AI in their deliverables and maintain comprehensive insurance coverage, including Commercial General Liability and Workers' Compensation.