Risk & Audit committee selects BDO USA as preferred independent auditor, pending negotiations

The CalPERS Risk & Audit Committee voted to recommend awarding the independent financial‑statement audit contract to BDO USA as the highest‑ranking finalist, subject to final negotiations and satisfaction of all requirements. Malia Cohen, chair of the Risk & Audit Committee, reported the committee interviewed four finalist firms earlier in September and recommended BDO USA for the award.

Cohen said the contract recommendation is "subject to final negotiations and satisfactions of all requirements and direct and also to direct staff to begin contract negotiations for the contract with BDO USA. Now if staff, in its discretion concludes that negotiations are unsuccessful, staff shall begin contract negotiations with Plant Moran, which was the next highest scoring finalist." The committee directed staff accordingly and took a roll‑call vote; the recorded tally on the transcript showed unanimous committee support for the recommendation.

Why it matters: the independent auditor provides the external audit of CalPERS’ basic financial statements and issues findings and management letters that inform board oversight and financial transparency.

The committee emphasized the importance of selecting an auditor with the capacity to audit under generally accepted accounting principles (GAAP) and to provide a thorough management letter. Staff will proceed to negotiate terms with BDO USA as authorized; if negotiations do not result in an executable contract, staff will move to the next‑ranked firm, Plant Moran, and so on down the finalist list.