REQUEST FOR PROPOSAL (RFP) FOR OUTSOURCED ACCOUNTING SERVICES FOR American Association for Family & Consumer Sciences (AAFCS)

Transcription

1 REQUEST FOR PROPOSAL (RFP) FOR OUTSOURCED ACCOUNTING SERVICES FOR American Association for Family & Consumer Sciences (AAFCS) Proposals are due (April 16, 2012) 1. Purpose The American Association for Family and Consumer Science (AAFCS) is entertaining proposals from qualified firms that wish to enter into a multi-year contractual relationship for the provision of outsourced accounting services as identified in this Request For Proposals (RFP). 2. Mission of AAFCS The mission of the AAFCS is to provide leadership and support for professionals whose work assists individuals, families, and communities in making informed decisions about their well being, relationships, and resources to achieve optimal quality of life. 3. Historical Background and Demographics A. Functional Support AAFCS currently out sources accounting services to an accounting firm. Accounting services: process invoices, cut checks, enter cash receipts into the accounting software, maintain general ledger operations, maintain the program budgets, month end close, and assist in the facilitating of effective functioning of accounting services. Due to a staff vacancy the accounting services firm has also most recently worked with AAFCS on strategic planning, budget forecasts, monthly analysis, executive and governance support and overview of AAFCS financial position. AAFCS now employs a Division Director of Operations and Membership who is responsible for oversight of finances and re-organization of accounting roles according to the attached chart of responsibilities. B. Software Systems AAFCS uses Microsoft CRM to record all program-based activities of AAFCS. With limited exceptions, CRM has been used to generate invoices for accounts receivable as well as membership dues. AAFCS has a technical support contract to assist with software issues. The financial records are maintained in Microsoft Dynamics Great Plains. AAFCS plans to upgrade or change its AMS software by the end of calendar year AAFCS is open to migrating its accounting software out of Great Plains to a more user-friendly platform, such as QuickBooks. C. Disbursements Staff members receive invoices from vendors, authorize the expenditure, and provide codes from the chart of accounts for charging the appropriate cost center and line item. These invoices are then provided to accounting services for posting and twice-monthly check-generation. Some purchases affect the entire operation and cannot reasonably be charged to a specific cost center. Examples are rentals of photocopy machines, telephone service, and staffing that provides general support to all departments. These costs are charged against general and administration to be spread through allocations based on the number of hours worked by staff towards each cost center.

2 D. Receipts AAFCS collects membership dues from organizations and individual members. Dues are assessed on the anniversary date which means that collection occurs throughout the year. Accounting services Additionally, AAFCS provides fee-based services through a variety of programs including (a) professional development programs; (b) credentialing programs; (c) an annual conference which includes an exposition; (d) and sale of books, products, merchandise, journal and web advertising, list sales, and a job service. Membership dues receipts are sent to a lockbox and less frequently to the main office. Once processed by the lockbox the A/R clerk is responsible for setting up the batches to be processed in CRM by the appropriate departments. Upon completion the A/R clerk reviews the batch entries and imports into Great Plains. Deposits are taken to bank weekly by staff. E. Payroll AAFCS s employees are paid twice monthly on the fifteenth and last working day of the month. Each employee submits a timesheet using ClickTime online software to where it can be reviewed by managers and accounting services. Accounting services reviews and transmits payroll data to Ovation payroll services. In addition to salaries, we offer a variety of benefit plans that affect the payroll function. Employees can elect to contribute into a 401(k) plan (Fidelity). AAFCS also makes contributions to employees into a 503-B plan (TIAA-CREF). Payroll taxes, 401 (k) contributions, 503-B contributions, and flexible spending withholdings are distributed directly by accounting services to the respective parties. Ovation payroll services tracks and posts annual and sick leave records for AAFCS. AAFCS employees may elect and contribute towards a medical insurance plan (BlueCross BlueShield CareFirst). F. Demographics Operating Budget (FY ) $2,000,000 Investment Funds $6,700,000 (includes endowed funds for awards, grants and scholarships) Monthly Electronic Rebates to 50 Affiliates Quarterly Dues Transfer to International Federation Employee FTEs 12 (8 work in office; 4 work from remote locations) Accounting Structure: Accrual Accounting Software: Microsoft Dynamics Great Plains Average Monthly Checks: Average Monthly Receipts: $150,000 IRS Tax Status 501(c)(3) Fiscal Year May 1 April 30 Annual Conference in June For additional information please refer to the enclosures: Chart of accounts Internal financial statements Audited financial statements Management letter Federal Form 990, Chart of financial responsibilities

3 4. Scope of Work A. Assessment of Current Practices. The provider shall conduct an assessment of the following functions: 1.AAFCS s current processes for performing all accounting functions and ensuring internal controls. 2.AAFCS s general business practices that impact on the accounting systems. 3.AAFCS s financial policies contained in the AAFCS Board of Directors Policy Manual. The intent of these assessments is to determine if sufficient internal controls exist and to recommend procedural changes that will achieve efficiencies or improve effectiveness. An executive summary report, including recommendations and associated costs, shall be provided to the Executive Director by no later than (June 1, 2012). The provider shall quote an hourly rate with an estimate of total costs for this specific assessment and report. B. Systems The provider will be required to migrate AAFCS s accounting system from Great Plains to a more user friendly platform (ex: Quickbooks). Thus expertise with numerous accounting systems will be required. The provider will be required to support AAFCS s transition to a new AMS system with regards to accounting and business practices. It is a requirement that AAFCS has 24x7 access to the accounting data for the purpose of creating reports and monitoring accounts. C. Required Services The selected provider shall provide the following outsourced accounting services for AAFCS and its affiliates and related entities: (1) Collaboratively, develop accounting practices and procedures. Make appropriate recommendations and changes to ensure satisfactory accounting from (date of implementation) forward. (2) Draft an accounting policies and procedures manual. (3) Process cash disbursements twice-monthly including affiliate rebates by 4 th Wednesday of the month and International Federation dues transfer quarterly. (4) Process cash receipts (checks and credit card activity) via the bank lockbox daily/weekly. (5) Process payroll in conjunction with Ovation payroll services on a semimonthly basis. (6) Timely reconciliation of general ledger accounts and issuance of monthly internal financial statements by the 4 th Friday of the month for the previous month. (7) Ensure timely and accurate compliance for all legal reports and payments by preparing and filing the following documents including, but not limited to:

4 (a) Federal Forms 1096 and 1099 (b) Sales and Use Tax Reports (c) Personal Property Tax Return (d) Unclaimed Property Return (8) Assistance in preparing for year end independent audit. (9) Assistance preparing the annual budget which staff and the treasurer present to the board annually. (10) Maintain deferred dues schedule (11) Firm to maintain depreciation schedules (12) Firm to provide accrued leave valuations quarterly (13) Firm to maintain deferred income schedule for annual conference and other activities The vendor can propose alternative tasks to accomplish the finance and accounting function in order to provide the best service to the AAFCS. An alternative Statement of Work is acceptable and will be evaluated. D. On-Site Facilities AAFCS will provide an office to the provider for the purpose of performing accounting functions and offering direct technical assistance to the staff. The proposal should give details about on-site staffing of accounting services versus remote staff and the corresponding hours. (1)To process all cash disbursements: receive invoices and authorization from the budget manager, generate checks for signature, distribute checks as appropriate, post expenses in the general ledger, monitor bank account balances and manage the vendor files (automated and manual). (2)To handle all accounts receivable issues. (3)To address all payroll issues. 5. Qualifications of Provider A.Qualified providers shall maintain an office in the Metropolitan Washington DC area with sufficient personnel and equipment to address AAFCS s accounting and tax issues during business hours (9:00 a.m. to 5:30 p.m.). B.Qualified providers shall offer a range of technical expertise in all facets of non-profit accounting. C.Qualified providers shall have demonstrated experience in providing outsourced accounting services to not-for-profit 501[c][3] organizations. D.Qualified providers shall have demonstrated experience with Great.

5 Plains accounting software and state recommendations and experience for transitioning to different accounting software. E.Qualified providers shall demonstrate that they have sufficient bonding to protect the financial assets of AAFCS. F.Qualified providers shall not have been involved in any litigation in the most recent five years. G. Qualified providers shall provide financial document retention and storage plan. 6. Effective Date The effective date for the services outlined in the proposal shall be May 1, 2012 and shall be in force for 12 months. Ninety days prior to the initial expiration date, AAFCS will assess its relationship with the provider and determine whether to renew its contract for additional years. 7. Payment Schedule AAFCS is seeking a contract with the selected provider for the provision of the required services. If selected, AAFCS will provide payment on a monthly basis; with payment after the service is provided. 8. Submittal Documents and Timelines Proposals are due to AAFCS by April 16, 2012, close of business. Proposals should be addressed to: John Lord, Division Director of Operations and Membership, AAFCS Proposals may be ed to: jlord@aafcs.org As part of their proposal, interested firms shall submit the following documentation: 1) Narrative describing the types and levels of outsourced accounting services provided to clients. 2) References from three association clients who are currently receiving services similar to those outlined in this RFP. 3) Listing and resumes of managers and principals who will be assigned to the AAFCS account if selected. 4) Listing of any specific exceptions taken to the requirements of this RFP. 5) Pricing structure consistent with the requirements outlined in Section 4 of this RFP. 9. Questions or Clarification Questions or clarification should be addressed to: John Lord, Division Director of Operations and Membership, jlord@aafcs.org or