Project Information

Bid Title

Annual Financial Audit Request for Proposal

Issuing Agency

Northern California Power Agency

Location

California

Published Date

Jun 4, 2026

Closing Date

Jun 18, 2026

Government Level

State & Local

Status

Closed

Original Source

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Bid Documents

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Project Description

Annual Financial Audit Request for Proposal

Posted Date: May 22, 2026

Submittal Due Date: June 18, 2026

Addendum 1: Responses to Questions (Posted June 4, 2026)

Attachment Preview

REQUEST FOR PROPOSALS

FOR AUDIT SERVICES

RFP Issue Date:

Thursday, May 21, 2026

RFP Submittal Deadline:

Monday, June 15, 2026

5:00 p.m. PDT

Northern California Power Agency

651 Commerce Drive

Roseville, CA 95678

Attn: Sondra Ainsworth, Audit Services Proposal

Documents available online at:

www.ncpa.com

1. Scope of Services

The Northern California Power Agency (NCPA or Agency) is soliciting proposals for qualified,

independent certified public accountants to perform the annual audit of the financial statements,

including associated reporting for the Agency, and potentially other audit services, if and as

requested by the Agency. The Agency intends to award a contract for a three-year term for fiscal

years 2026, 2027, and 2028. At the sole option of the Agency, it is subject to renewal options as

further described herein.

The proposing Certified Public Accounting firm, for and in consideration of the payment to be

made to it as hereinafter provided, hereby agrees to furnish all labor, material, and equipment

necessary or required for the work described as Northern California Power Agency audit services,

in strict conformity with the terms and conditions of the Agreement. The Proposal submitted by

the Certified Public Accounting firm and the terms, conditions, and scope of services, included in

Request For Proposal are hereby incorporated as a part of this Agreement by reference, to the

same extent as if they were fully set forth herein; a sample NCPA Agreement is included in

APPENDIX A.

The Agency seeks a collaborative and professionally independent audit relationship focused on

timely, accurate, and high-quality audit services. The Agency has no interest in the manner or

methods the Certified Public Accounting firm may employ to accomplish the results to be

achieved, which shall be left to the sole and exclusive direction and control of Certified Public

Accounting firm provided that such manner and method conforms with the standards for

performance set forth in the Agreement (agreement template in Appendix A) and with all laws,

rules and/or regulations applicable to the performance of such services.

1.1 Overview of the Agency

NCPA was formed in 1968 as a joint powers agency of the State of California and consists of 16

members. The Agency is generally empowered to purchase, generate, transmit, distribute, and

sell electrical energy.

The Agency's project construction and development programs have been individually financed by

project revenue bonds that are collateralized by the Agency's assignment of all payments,

revenues, and proceeds associated with its interest in each project. Certain revenue bonds may

be additionally supported by municipal bond insurance credit enhancements. Each project

participant has agreed to pay its proportionate share of debt service and other costs of the related

project, notwithstanding the suspension, interruption, interference, reduction or curtailment of

output from the project for any reason (that is, the take or pay member agreements). Project

participants own percentage shares of the output or capability of the projects.

Members participate in the projects of the Agency on an elective basis. Various legal and tax

considerations caused the Agency to provide that separate not-for-profit corporations should be

delegated by the Agency to own the geothermal electrical generating projects undertaken by the

Agency. These Associated Power Corporations, Northern California Municipal Power

Corporations Nos. Two and Three, have delegated to the Agency the authority to construct,

operate and manage their respective geothermal plants and related assets. The Agency, in return

for financing the costs of acquisition and construction, acquires all the capacity and energy

generated by the plants. The Associated Power Corporations have no employees and have no

other operations.

NCPA RFP – Audit Services

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The Agency and the Associated Power Corporations are intended to operate on a not-for-profit

basis. Therefore, any balance in Accumulated Net Revenues primarily represents differences

between total revenues collected, using collections based on estimated operating expenses and

debt service, and the total actual expenses incurred. In subsequent periods of operation, excess

collections (net of encumbrances) that the participants do not direct to be held by or released to

the Agency for expenditure by the Agency are refunded to the participants. In the event the

Agency incurs an Accumulated Net Expense balance, the balance would be subject to recovery

in participant collections under the terms of the related take-or-pay Member Agreements.

Power sales to participants for their resale include both power generated by operating plants and

power purchased from outside sources. Collections for power sales are designed to recover costs

that include budgeted annual operating costs and debt service. Additional amounts for operating

reserves or rate stabilization may be included in collections under the terms of bond indentures.

During fiscal years 2024 and 2025, no amounts were specifically collected for rate stabilization.

As a participant in the California deregulated wholesale power market, from time to time the

Agency buys or sells power, transmission or fuel under forward market, fixed price contractual

arrangements to manage its loads, resources and energy price risk. The Agency does not enter

into these agreements solely for trading purposes. Such arrangements are normal purchases

and sales subject to settlement at their actual cost.

The Agency’s collections for electric service are not subject to the regulatory jurisdiction of the

California Public Utilities Commission (CPUC) or the Federal Energy Regulatory Commission

(FERC). Rather, the Agency’s collections are established annually in connection with its budget,

which is approved by its governing Commission.

The Agency is governed by a Commission comprised of one representative for each member.

The Commission is responsible for the general management of the affairs, property, and business

of the Agency. Under the direction of the General Manager, the staff of the Agency is responsible

for providing various administrative, operating and planning services for the Agency.

For accounting purposes, NCPA is a special-purpose governmental entity that is engaged in a

business-type activity, principally as a supplier of wholesale electricity and transmission to its

member participants. As such, the Agency’s financial statements are presented as an enterprise

type fund, that is, similar in most respects to the financial statements of a private sector for-profit

entity involved in the same kind of business.

NCPA’s accounting and investment functions are performed by the Finance Department. The

records of the Agency and its Associated Power Corporations are maintained substantially in

accordance with the FERC Uniform System of Accounts. Accounting principles generally

accepted in the United States of America are applied by the Agency in conformance with

pronouncements of the Government Accounting Standards Board (GASB) and, where not in

conflict with GASB pronouncements, the Financial Accounting Standards Board (FASB)

pronouncements issued on or before November 30, 1989. The combined financial statements

encompass the Agency and Associated Power Corporations on an accrual accounting basis. All

significant intercompany balances and transactions have been eliminated from the combined

amounts reported.

The Agency’s financial database is maintained on Microsoft Dynamics GP (Great Plains) software

system, along with other data systems by the Agency’s Information Technology group.

NCPA RFP – Audit Services

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The Agency’s fiscal year is July 1 to June 30. Additionally, there have been no disagreements in

connection with matters of accounting principles and, in fact, NCPA has continued to receive

unqualified opinions.

1.2 Significant Agency Parameters

• NCPA is a joint powers public entity whose headquarters is located in Roseville, CA.

• The Agency and its 16 members are not-for-profit entities (most public entities).

• Accounting based on FERC Uniform Chart of Accounts—not Fund Accounting.

• Generating and Transmission Projects are supported by Take-Or-Pay contracts.

• Projects are in four locations: Geothermal (Geysers Area) near Middletown, CA;

Hydroelectric (North Fork Stanislaus River) near Murphys, CA; Combustion Turbine

No. One (two locations), Lodi, and Alameda; CA; Combustion Turbine No. Two and

Lodi Energy Center, Lodi, CA.

• The NCPA fiscal year begins July 1 and ends June 30 of the following year.

• The Agency utilizes Microsoft GP (Great Plains) software for accounting purposes.

• The Agency’s Information Systems group develops, operates, and maintains

sophisticated software for its own use.

• Approximately 155 employees.

• NCPA processes timesheets internally and integrates data with a third-party payroll

service provider.

1.3 Project Location

NCPA Headquarters: 651 Commerce Drive, Roseville, CA 95678

1.4 Required Audit Services

NCPA desires the auditor to express an opinion on the fairness of presentation of its combined

statements of net position, statement of revenues, expenses, and changes in net position, and

statements of cash flow in conformity with generally accepted accounting principles. The auditor

is not required to audit the individual statements of the Northern California Power Agency and

Associated Power Corporations.

The audit shall be conducted in accordance with auditing standards generally accepted in the

United States of America (GAAS), Government Auditing Standards issued by the Comptroller

General of the United States, applicable Governmental Accounting Standards Board (GASB)

pronouncements, and other applicable professional standards.

Required Audit Products

Draft reports shall be provided electronically for Agency review prior to issuance of final reports.

For each fiscal year end, June 30, the Proposer shall provide the Agency with the following

formal documents:

• Report on the Combined Financial Statements

• Negative assurance for Supplementary Combining Information

• Report on Internal Control and Related Matters / Management Letter

• Required communications to those charged with governance, including significant audit

findings, uncorrected misstatements, internal control matters, and qualitative accounting

issues.

NCPA RFP – Audit Services

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• Negative assurance for Certain Bond Indenture of Trust Provisions (No Default)

• Report on Compliance with the Agency’s Investment Policy

• Report and discussion on audit with Finance Committee

• Consent to use audited financial statements in bond offerings and on the Agency’s

Website.

Audit Role of Agency

NCPA recognizes that assistance from its Treasurer-Controller staff during an audit conducted by

an external auditor will reduce the cost of an audit. Agency staff will provide the normal Prepared

by Client work papers in the same format provided to the current auditor in past years. NCPA

Treasurer-Controller staff members write the Management Discussion and Analysis (MD&A),

footnotes to the financial statements, and required supplementary information.

Prior Year Audit Working Papers

Baker Tilly US, LLP is the current audit firm for the Agency. The successful bidder will be

responsible for arranging any review of the prior year’s work papers, which the Agency will

approve in advance.

The successful proposer shall retain audit documentation in accordance with applicable

professional standards and make relevant working papers available to successor auditors and

authorized oversight agencies upon request

Bond Indenture Requirements

The Agency’s Indentures of Trust require an independent annual audit and no default letter to be

filed with the Trustee within 120 days after the close of the fiscal year. In addition to ability to

meet the schedule, the Certified Public Accounting firm performing the audit must demonstrate

experience and recognized professional standing in providing audit services to public power

agencies, joint powers authorities, or similarly complex governmental enterprise entities. In order

to meet the schedule for the production of the Agency’s Annual Report, it is required that the

reports of independent auditors, which includes the audited combined financial statements, need

to be issued by October 10th of each year.

Fixed Price, Not-To-Exceed Amount for Annual Audit Services

The Agency intends to award a contract for a three-year term for audit services for fiscal years

ended June 30 of 2026, 2027, and 2028. Each annual audit will be based on a fixed not-to-

exceed fee for the audit services. The agreed-upon fees shall constitute the maximum

compensation for the services described unless additional services are separately authorized by

the Agency. In addition, at the sole option of the Agency, the Agreement is subject to two

additional three-year renewals. The fee proposal shall address the annual audit not-to-exceed fee

for each of the years covered by the Agreement.

1.5 Additional Services

Consulting or Other Work

The audit firm retained by the Agency shall not perform consulting or other nonaudit services for

the Agency unless such services are separately requested and approved in advance by the

Agency. The audit firm may, however, be retained by the Agency’s underwriters or other parties

acting on behalf of the Agency in connection with bond defeasance escrow verification or similar

financing-related services, subject to prior Agency approval.

The audit firm shall disclose any existing or proposed relationships, engagements, or nonaudit

services that may reasonably be perceived to bear on the firm’s independence. Any significant

NCPA RFP – Audit Services

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Commodity Codes

• NAICS 541211Offices of Certified Public Accountants
• NAICS 541219Other Accounting Services
• NAICS 541611Administrative Management and General Management Consulting Services

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