Professional Auditing Services

Transcription

1 REQUEST FOR PROPOSAL Professional Auditing Services DENVER URBAN RENEWAL AUTHORITY 1555 California Street, Suite 200 Denver, Colorado Issued: September 19, 2016 Response Date: October 5, 2016

2 TABLE OF CONTENTS SECTION I INTRODUCTION Purpose of the Request for Proposal (RFP) Type of Agreement Rights of the Denver Urban Renewal Authority...3 Background Denver Urban Renewal Authority...4 SECTION II SCOPE OF SERVICE AUDITING SERVICES SECTION III REQUESTED PROPOSAL INFORMATION Part A Cover Letter Part B General Information Part C Fee Proposal Part D Legal Matters and Disclosure.. 11 SECTION IV PROPOSAL SUBMISSION SECTION V RFP CONDITIONS SECTION VI EVALUATION PROCESS SECTION VII SELECTION PROCESS Page 2 of 14

3 SECTION 1 INTRODUCTION PURPOSE OF THE REQUEST FOR PROPOSAL (RFP) The Denver Urban Renewal Authority ( the Authority ) is requesting proposals from qualified accounting firms (the Accounting firm ) to provide various Auditing Services to the Authority. This Request for Proposals (RFP) details the scope of the engagement and the nature of the services required, the reports or other items to be delivered under the engagement, and the format to be used for all proposals in response to this RFP. The objective is to identify the accounting firm(s) that can offer the most comprehensive auditing services at the most competitive rates. Proposals are due on October 5, The Authority reserves the right to request additional information from accounting firms responding to the RFP and may request that certain accounting firms responding to the RFP attend face-to face interviews. It is expected that any interview would occur during the week of October 17, The Authority values diversity and encourages responses from qualified Small Business Enterprise accounting firms as certified by the City and County of Denver, the Regional Transportation District or the Colorado Department of Transportation. It is the policy of the Authority to encourage and support equal opportunity. Proposals from joint venture entities will be accepted. If the respondent is a joint venture, the qualifications of each firm comprising the joint venture should be separately identified and the firm that is to serve as the principal auditor should be noted, if applicable. The Authority shall not be liable for any of the respondent s expenses associated with any portion of the proposal process. The respondent, if selected, shall not include any such expenses as part of its fee for performing the Scope of Services. TYPE OF AGREEMENT It is the intent of the Authority to enter into a Letter of Engagement arrangement with the successful respondent. It is expected that this Engagement will remain in effect for a period of three (3) years with opportunity to renew annually. Appropriate clarifications and additions to the Scope of Services may be made during negotiations with the successful respondent. Compensation is subject to negotiation. RIGHTS OF THE DENVER URBAN RENEWAL AUTHORITY The Authority reserves the right to reject any and all proposals, with or without cause. The Authority also reserves the right to waive any informality or irregularity in any proposal it receives and to be the sole judge of the merits of all proposals it receives. All proposals shall be considered by the Authority as an invitation to negotiate an engagement. The Authority reserves the right to negotiate all final terms and conditions of any engagement resulting from this RFP. Page 3 of 14

4 This RFP and the resulting Letter of Engagement are governed by the laws of the State of Colorado. Venue for any dispute regarding this RFP or the resulting Letter of Engagement shall be in the District Court for the City and County of Denver, Colorado. BACKGROUND DENVER URBAN RENEWAL AUTHORTY The Denver Urban Renewal Authority was created by ordinance of the City and County of Denver in 1958 under Colorado Urban Renewal Law which was enacted by the State Legislature in that same year. The Authority is a redevelopment agency, performing the traditional duties of an urban renewal Authority eliminating blight where it currently exists and helping prevent additional blight from developing. The Authority also has responsibility for implementing three City housing rehabilitation programs designed to improve the quality of existing single-family homes owned by low to moderate income residents and, through its component unit Denver Neighborhood Revitalization, Inc. (DNRI), for implementation of the Neighborhood Stabilization Program as contracted with the City. In its redevelopment capacity, the Authority uses an important financing tool called tax increment financing (TIF) to fill the gap between the cost of a redevelopment project and the level of private financing it can support in situations where blight exists. State law enables urban renewal authorities to use incremental property and sales taxes generated by a redevelopment project to provide financing. Redevelopment activities which benefit from tax increment are either financed through the issuance of tax increment revenue bonds, notes or with developer reimbursement obligations. The Authority is governed by a Board of Commissioners that directs policy. The Executive Director is appointed by the Board and directs the Authority staff and its operations. The Authority s annual audited financial statements, as well as DNRI s audited financial statements are available at Information about the Authority s debt, including offering documents can be accessed on the Municipal Securities Rulemaking Board (MSRB) website SECTION 1I SCOPE OF SERVICES AUDITING SERVICES The accounting firm shall meet or exceed all requirements of this RFP and provide details on the full services that can be offered related to the Authority s existing needs. The Scope of Services to be provided by the accounting firm will include, but are not limited to, the following transaction-specific and ongoing services: Page 4 of 14

5 Basic Auditing Services The primary purpose of the engagement is to examine the Authority s financial statements for the fiscal year, including its component unit, Denver Neighborhood Revitalization, Inc. (DNRI) and evaluate the fairness of presentation of the statements in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The audit will be conducted in accordance with the then prevailing auditing standards generally accepted in the United States of America, the then prevailing standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the then prevailing Single Audit requirements of U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Uniform Guidance (2014). Attention is directed to the fact that the Authority has the responsibility for the proper recording of transactions in the book of accounts, for the safeguarding of assets, and for the substantial accuracy of the financial statements. Such financial statements are the representations of management. The objective of the audit is the expression of an opinion on the Authority s financial statements. The ability to express that opinion, and the wording of the opinion will be dependent on the facts and circumstances at the date of the report. If the opinion will be other than unmodified, the reasons therefore will be fully disclosed. The Authority agrees to complete and provide the accounting firm with the following: 1. Final trial balances of all funds and account groups with appropriate reconciliation of all control accounts to detail records. 2. Appropriate footnotes and supplemental schedules. 3. Prepare confirmations for appropriate asset and liability accounts, such as bank accounts, loan commitments, notes receivable, notes payable, etc. 4. Perform other tasks deemed necessary for the audit, such as providing supporting documentation for cash receipts and disbursements, contracts and other documents Deliverables and Reports At the conclusion of the examination, the accounting firm will submit the following reports: 1. A report to be included on the fair presentation of the basic financial statements in conformity with generally accepted accounting principles. Page 5 of 14

6 2. A report on compliance and internal control over financial reporting based on an audit of the financial statements in accordance with Government Auditing Standards. 3. A report on compliance with requirements applicable to each major federal program and internal control over compliance in accordance with U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Uniform Guidance (2014). 4. In the required reports on compliance and internal controls, the accounting firm shall communicate any reportable conditions found during the audit. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions discovered by the accounting firm shall be reported in a separate letter to management, which shall be referred to in the reports on compliance and internal controls. 5. The reports on compliance and internal controls shall include all material instances of noncompliance. All nonmaterial instances of noncompliance shall be reported in a separate management letter, which shall be referred to in the reports on compliance and internal controls. 6. At the completion of the examination, the accounting firm will prepare and complete the draft copy of the financial statement report to be submitted to the Authority for review and comment. 7. At the completion of the examination, the accounting firm will work with the Authority staff to review any adjusting journal entries and ensure proper final closing of all funds. 8. Audit work papers are the property of the accounting firm. However, copies of any or all work papers shall be provided to the Authority or successor auditor, upon request of the Authority, with reimbursement of the cost of copies provided by the Authority. In addition, the accounting firm shall respond to reasonable inquiries of successor auditors. Communication and Reports to the Audit and Finance Committee The accounting firm shall undertake actions to ensure that the Authority s Audit and Finance Committee is informed of each of the following items, either initiated by the Authority or by the accounting firm in response to or in anticipation of prevailing audit standards: Page 6 of 14

7 1. The auditing accounting firm s responsibility under generally accepted auditing standards 2. Changes in significant accounting policies 3. Management judgment and accounting estimates 4. Alternative accounting treatments 5. Significant audit adjustments 6. Uncorrected misstatements that management determines to be immaterial 7. Disagreements with management 8. Difficulties encountered in performing the audit 9. Management consultation with other accounting firms 10. Other matters required to be communicated by generally accepted auditing standards in the United States of America Component Unit Denver Urban Renewal Authority (the Authority) For financial reporting purposes, the Authority is a component unit of the City and County of Denver under the provisions of Governmental Accounting Standards Board Statement No.14 (GASB 14), The Financial Reporting Entity, as amended by Governmental Accounting Standards Board Statement No.61 (GASB 61), the Financial Reporting Entity: Omnibus, an amendment of GASB Statements No.14 and No.34. As the Authority s audited financial statements and single audit report will be included in the City and County of Denver s Comprehensive Annual Financial Report (CAFR), coordination with the City Auditor s Office will be required as necessary. Discretely Presented Component Unit Denver Neighborhood Revitalization, Inc. (DNRI) The Authority reports the accounts and operations of DNRI within the reporting entity. DNRI, formed in 2009, is registered with the Colorado Secretary of the State as a not-for-profit organization established for the administration and execution of the Neighborhood Stabilization Program.as granted by the City and County of Denver. DNRI s financial statements are presented in accordance with Financial Accounting Standards Board Accounting Standards Codification 958, relating to the reporting model for financial statements of not-for-profit organizations, a different GAAP reporting model than is used by the Authority. In accordance with GASB 14, GASB 61 and Governmental Accounting Standards Board Statement No.39, Determining Whether Certain Organizations Are Component Units an amendment of GASB Statement No.14, the Authority has elected to present DNRI s financial statements as separate statements within the government-wide presentation. Page 7 of 14

8 Please Note: This Request for Proposal Auditing Service engagement includes the audit of DNRI, as well as the audit of the Denver Urban Renewal Authority. Timeline The following is the estimated schedule for completion of the engagement for each fiscal year: 1. Draft reports of final trial balances of all funds and account groups with appropriate reconciliation of all control accounts to detail records for the Authority and DNRI by March Draft Financial Statement and Single Audit Reports for the Authority completed and submitted to the Authority by April Draft Financial Statement Report for DNRI completed and submitted to the Authority by April Proposed audit adjustments submitted to the Authority by April Final Financial Statement Reports for the Authority and DNRI completed and submitted to the Authority by April Management Letter due with submission of Final Reports by April 8. Optional and Future Auditing Services The Authority anticipates it will prepare from time to time an official statement in connection with the undertaking and offering of municipal bonds that will contain the Authority s financial statements and accounting firm s report thereon. The accounting firm may be requested to provide a comfort statement which accompanies the inclusion of the Authority s financial statements in the official statement. Additionally, the Authority may from time to time request the selected accounting firm to provide managerial consulting service. Projects requiring the use of such services are anticipated to be minimal in number and duration. Transition of Services In order to ensure a smooth transition of services, the accounting firm shall provide the following transition of services: 1. The accounting firm key staff shall meet with the Authority staff immediately after the contract has been fully executed for a project kickoff meeting. In addition, the accounting firm key staff shall be available for other meetings as required by the Authority. Page 8 of 14

9 2. The accounting firm shall provide within ten (10) days of contract execution a schedule of the transition process, as well as, a list of any documents, files or information it shall need from the current accounting firm in order to have a successful transition. 3. The accounting firm shall provide bi-weekly status reports to the Authority regarding the progress of the transition of services until the transition has been completed. 4. If requested, the accounting firm shall provide on-site training to appropriate Authority staff for all online auditing services. 5. The accounting firm shall be responsible for bearing all transition costs that may occur as a result of, including but not limited to, the conversion of existing images, loading of files, etc. 6. At the termination of any contract resulting from this RFP, the accounting firm shall work with the Authority and the new accounting firm. The accounting firm shall provide any requested files, reports or documents within thirty (30) days or as otherwise requested by the Authority. SECTION III REQUESTED PROPOSAL INFORMATION The proposal shall provide information necessary for the Authority to evaluate the qualifications, experience, and expertise of the proposing accounting firm to perform the requested Auditing Services. The accounting firm shall make a written proposal which presents an understanding of the work to be performed. The proposal should address each requirement contained in the Scope of Services (Section II) and be specific in presenting their qualifications. Proposals should be as thorough and detailed as possible but written clearly and concisely so that the Authority may properly evaluate the accounting firm s capabilities to provide the required services. Requested Proposal Information shall consist of four parts: Cover Letter, General Information, Fee Proposal, and Legal Matters and Disclosure. Accounting firms must respond to all four parts of the RFP. Each accounting firm must include in their proposal the following requested information. Part A COVER LETTER Submit a cover letter summarizing your proposal. The cover letter should specify that the signatory is legally authorized to commit the accounting firm to all terms and conditions contained in the proposal. Please limit the cover letter to no more than two (2) pages. Page 9 of 14

10 Part B GENERAL INFORMATION 1. Provide the accounting firm name, address, telephone number, fax number and address of the person the Authority should contact in connection with your proposal. Where personnel in more than one office are to be involved, please indicate which office will be primary and which will be secondary. Include a brief description of the accounting firm, covering ownership, organizational structure, size and ability to staff the engagement. Describe any staffing, organizational or ownership changes which the accounting firm has undergone in the past year. Describe any additional changes that are expected to occur within the next six months. 2. The accounting firm shall have at least five (5) years of experience with large, complex governmental entities and have a local presence within the City and County of Denver. 3. Provide a brief summary of the backgrounds and qualifications of the specific individuals in your accounting firm who would be assigned to work with the Authority. Specify the person who will serve as the primary day-to-day contact and discuss the primary roles that other members of your team will fill. Note the geographic location(s) of team members, including those located in the Denver metropolitan area. Indicate how the quality and availability of the staff over the term of the engagement will be assured. (Please include resumes as an appendix to your proposal.) 4. Provide the name, title, address, telephone number and address of three client references the Authority may contact in connection with your proposal. Briefly summarize your experience with each client reference. 5. Discuss your detailed description of the services to be provided which addresses each requirement contained in the Scope of Services (Section II), including corresponding reports and functionality for each item. 6. Discuss your detailed description of other services and their standard operating procedures that are available in addition to those described in the Scope of Services. Please include any data your firm believes would be relevant to the Authority s evaluation of your proposal. 7. Please provide copies of any supplemental agreements or documents that contain any terms and conditions that will be requested to be incorporated in the overall Agreement. The agreements are an integral part of the resulting contract and will be reviewed by the Authority and its legal counsel. 8. Provide a summary of the key strengths and qualifications of your accounting firm to successfully perform Auditing Services to the Authority. Page 10 of 14

11 Part C FEE PROPOSAL Please provide your proposed cost/fee structure. The Authority is open to using any appropriate means of compensation for example: direct billing method for payment of the Auditing Services, including hours and costs by staff level for audit and single audit, an all-inclusive annual flat fee or a combination thereof. Please include administrative and out-of-pocket expenses. Describe how the proposed cost/fee structure will be assessed and calculated if applicable. Further, as the audit of DNRI is included in this engagement, please note the portion of your fee proposed that is related directly to DNRI. Discuss the benefit to the Authority of such arrangements and any limitations thereon. Please limit the fee proposal to no more than one page. Part D LEGAL MATTERS AND DISCLOSURE Disclose any pending investigation of the accounting firm and/or any person assigned to this engagement or enforcement or disciplinary actions taken within the past five years by the Colorado State Board of Accountancy or any other regulatory bodies against the firm or the persons assigned to the engagement. Indicate if your accounting firm and any person assigned to this engagement is a party to any litigation or investigation or has been notified of an investigation by any federal or state regulatory agency. Describe any client relationship that could be viewed as a potential conflict of interest, if your accounting firm is selected. Please interpret this question broadly. Disclose any professional or personal financial interest which could be a possible conflict of interest in representing the Authority. In connection with the performance of work under this Agreement, the accounting firm agrees not to refuse to hire, discharge, promote or demote, or to discriminate in matters of compensation against any person otherwise qualified, solely because of race, color, religion, national origin, gender, age, military status, sexual orientation, marital status, or physical or mental disability; and further agrees to insert the foregoing provision in all subcontracts hereunder. Page 11 of 14

12 SECTION IV PROPOSAL SUBMISSION Eight (8) hard copies of the proposal response, as well as, one (1) flash drive containing a copy of the proposal response must be submitted to: Denver Urban Renewal Authority Attn: Robbin Eldredge, Administrative Services Director 1555 California Street, Suite 200, Denver, CO Proposals will be accepted until 4:00 p.m. on October 5, All questions and clarification requests concerning the Request for Proposal must be submitted via to reldredge@renewdenver.org. Questions must be submitted no later than September 26, The Authority reserves the right to decline to answer any questions and to provide a combined answer to similar questions. The Authority, if deemed appropriate, will catalogue questions and answers and post on the Authority s website prior to the response due date. SECTION V RFP CONDITIONS If your accounting firm elects to respond to this RFP, submission of your proposal assumes acceptance of the following understandings: All proposals submitted in response to this RFP will become the sole property of the Authority. Timing and sequence of events resulting from this RFP will ultimately be determined by the Authority. Any costs and expenses incurred by respondents in preparing or submitting proposals, including travel expenses incurred to attend meetings or interviews, are the sole responsibility of the respondent. No additions or changes to the original proposal will be allowed after submission. While changes are not permitted, clarification of proposals may be required by the Authority at the respondent s sole cost and expense. The Authority reserves the right to be the sole judge as to the overall acceptability of any proposal as well as the individual merits of specific provisions between competing proposals. Page 12 of 14

13 All responses to the RFP must conform to these instructions. Failure to include any required information or to comply with any other requirements of this RFP may be considered appropriate cause for rejection of the response. RFP responses may be subject to Colorado Open Records Act. Any information the respondent believes to be proprietary must be clearly identified. In the event of an open records request, responsibility of defending the proprietary nature of the information is solely the respondents. SECTION VI EVALUATION PROCESS The proposal submitted by each accounting firm will be evaluated by a panel using the evaluation criteria set forth below. The panel may consist of representatives from various Authority Board Committees and Staff. The panel s objective will be to identify and provide a recommendation to the Authority Board of Commissioners that best meets the needs of the Authority. Respondent accounting firms will be evaluated on the basis of their written responses to this RFP, additional written information, if requested by the Authority, and oral interviews, if any, using the following criteria: Experience of the accounting firm and primary contact. The accounting firm s understanding and level of competence in providing insight, staff support, analysis, innovative or alternative products or system enhancements will be considered. Qualifications, experience and availability of the primary day-to-day contact and the expertise of the other professionals available to provide service to the Authority. The accounting firm s capacity to apply and commit itself to complete required services on a successful and timely basis. Overall degree of critical understanding of the Authority s needs and opportunities. Experience and reporting methods of the accounting firm and the staff responsible for work to be performed. Overall quality of the written proposal and oral presentation, if any. The extent to which the proposal broadens the participation of small businesses Page 13 of 14

14 SECTION VII SELECTION PROCESS The evaluation panel may select accounting firms for interviews. At the interviews, the accounting firms will be asked to respond to questions from the panel, and each accounting firm will have an opportunity to present their proposal in greater detail. Interviews, if held, will take place at the Denver Urban Renewal Authority during the week of October 17, The Authority expects the notification of award to occur week of October 24, Selection and Implementation Timeline - RFP Issued September 19, 2016 Deadline for questions, clarifications September 26, 2016 Proposals must be submitted by October 5, 2016 Oral Interviews Week of October 17, 2016 Final Selection & Begin Contract Development Week of October 24, 2016 Contract Approval by Board of Commissioners November 2016 Contract Begins November 2016 Page 14 of 14