ALAMANCE COUNTY, NORTH CAROLINA 124 West Elm Street Graham, NC 27253

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1 ALAMANCE COUNTY, NORTH CAROLINA 124 West Elm Street Graham, NC REQUEST FOR PROPOSAL AUDIT SERVICES RFP # 16-P002 Issued on: Friday, January 15, 2016 Due Date: Tuesday, February 16, 2016 at 4:00 pm Administered by: Susan Roberts, Finance Officer Tel: (336) Fax: (336) susan.roberts@alamance-nc.com

2 REQUEST FOR PROPOSAL The County of Alamance (hereinafter called the "County") invites qualified independent auditors (hereinafter called "Auditor") having sufficient governmental accounting and auditing experience in performing an audit in accordance with the specifications outlined in this RFP to submit a proposal. The details set forth below shall be considered a minimum for this RFP. There is no obligation to reimburse firms for responding to this RFP. Any contract entered into shall be governed by NC law and venue shall be proper and shall lie exclusively in the Alamance County Superior Court. TYPE OF AUDIT The audit will encompass a financial and compliance examination of the County's Comprehensive Annual Financial Report (CAFR) in accordance with the laws and/or regulations of the State of North Carolina, which include requirements for the minimum scope of the audit. The financial and compliance audit will cover federal, State, and local funding sources in accordance with generally accepted auditing standards; Government Auditing Standards; the Single Audit Act of 1984; the Single Audit Act Amendments of 1996; the provisions of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, including revisions published in Federal Register 06/27/03; the State Single Audit Implementation Act; and all other applicable laws and regulations. PERIOD The County intends to continue the relationship with the auditor for no less than three years on the basis of annual negotiation after the completion of the first year contract. Each year after negotiation has taken place, an annual contract documenting the terms of the audit will be signed. Since one governing board may not obligate future governing boards, the remaining years of the agreement are subject to annual governing board approval. July 1, 2015 to June 30, 2016 July 1, 2016 to June 30, 2017 July 1, 2017 to June 30, 2018

3 REQUIREMENTS 1. The audit must be conducted in accordance with generally accepted auditing standards, Government Auditing Standards as determined by the Comptroller General of the United States (the Yellow Book), the Single Audit Act Amendments of 1996, U. S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, the State Single Audit Implementation Act, and any other applicable procedures for the audit of a government's financial statements prepared in accordance with GAAP. 2. The audit must be completed, journal entries communicated, and reports rendered within four months following the fiscal year-end (October 31). The County will assist in the preparation of all schedules, tables and the notes to the financial statements. The County will coordinate the printing of the Comprehensive Annual Financial Report. 3. The financial audit opinion will cover the financial statements for the governmental activities, the business-type activities, the financial statements of the aggregate discretely presented component units, each major fund, and the remaining fund information, which collectively constitutes the basic financial statements. The combining and individual financial statements, schedules, and related information are not necessary for fair presentation, but will be presented as additional analytical data. This supplemental information, as required by GASB 34, will be subjected to the tests and other auditing procedures applied in the audit of the basic financial statements, and an opinion will be given as to whether the supplemental information is fairly stated in all material respects in relation to the financial statements taken as a whole. The auditor shall also express an opinion on the budgetary comparison information for the general fund, the major funds, and any annually budgeted special revenue funds. An opinion will not be given on the Management Discussion and Analysis. 4. The working papers shall be retained and made available upon request for no less than three years from the date of the audit report. 5. In the event circumstances arise during the audit, which require work to be performed in excess of the original estimates, any additional costs will be negotiated prior to commencement of the work and requires approval by the Board of County Commissioners. Other Services The auditor will assist the County in maintaining its GFOA Certificate of Achievement for Excellence in Financial Reporting through technical assistance and timely compliance with any new reporting requirements. These services will be included in the base bid.

4 DESCRIPTION OF SELECTION PROCESS One copy of each section of the proposal should be submitted at the time and place indicated under the section entitled "Time Schedule for Awarding Contract." Proposals will be submitted in two sections. The first section will be comprised of the firm's prior experience and qualifications of its personnel in performing governmental audits. County Management will evaluate the auditor on educational and technical qualifications. The second section will be comprised of the firm's audit approach and costs. The firm best meeting the experience, audit approach, and cost requirements will be selected. Alamance County reserves the absolute right to reject any or all proposals. The County also reserves the right to request additional information from proposing firms. Failure to provide such additional information may preclude further consideration of the proposal. Cost will not be a sole determining factor in making a bid award. First Section The first section should address the requested information below. The corresponding responses should begin with the number of the requested information. 1. Indicate the number of people (by level) located within the local office that will be involved with the audit. 2. Provide a list of the local office's current and prior government audit clients, indicating the type(s) of services performed and the number of years served for each. 3. Describe your audit organization's participation in AICPA-sponsored or comparable quality control programs (peer review). The firm is required to submit its most recent external quality control review report. 4. Describe the relevant educational background (seminars and courses attended within the past three years) and professional experience in government audits of each senior and higher level person assigned to the audit, including years on each job and his/her position while on each audit. Indicate the percentage of time the senior will be onsite. 5. Provide names, addresses, and telephone numbers of personnel of current and prior governmental audit clients who may be contacted for reference. 6. Describe the firm s Statement of Policy and Procedures regarding Independence under Government Auditing Standards (Yellow Book), Amendment 3. Provide a copy of the firm s Statement of Policy and Procedures. 7. Is the firm adequately insured to cover claims? Describe liability insurance coverage arrangements. 8. Describe any regulatory action taken by any oversight body against the proposing audit organization or local office.

5 Second Section The second section should address the following requested information: 1. Identify the type of audit program used (tailor-made, standard government, or standard commercial). Describe the firm s anticipated audit approach, including the use of statistical sampling and computer audit specialists. 2. Organization of the audit team and the approximate percentage of time spent on the audit by each member. 3. Assistance expected from the government's staff, if other than that outlined in the RFP. 4. Tentative schedule for completing the audit within the specified deadlines of the RFP. 5. Specify total fee (inclusive of all incidental costs such as travel, etc.) using the format below for the audit year July 1, 2015 to June 30, For the subsequent two audit years, list the estimated fee. The fee for the audit year ending June 30, 2016, is binding, while the two years which follow are estimated fees. There should be no fees proposed for year-end bookkeeping or preparation of financial statements. Total fee 2016 Total fee 2017 Total fee 2018 Audit Fee 6. Other information the firm may wish to provide.

6 TIME SCHEDULE FOR AWARDING THE CONTRACT 1. Request for proposal packages will be mailed by January 15, A pre-proposal conference with the Finance Officer can be scheduled to answer any questions which might arise and to discuss general background information on the unit and its operations, or any specific matters necessary in preparing your proposal. Any questions should be directed to Susan Roberts, Finance Officer, at (336) The proposal must be received by 4:00 pm., Tuesday February 16, 2016, in the Purchasing Department located at the Alamance County Administration Office Building, 124 West Elm Street, Graham, NC Proposals must be submitted in a sealed envelope and clearly marked: Proposal: Proposal for Audit Services RFP # 16-P002 Attn: Randy Clark, Purchasing Manager The County requires one original proposal and 2 additional copies. One copy shall be marked as Original and contain an original signature by an authorized company representative. Submissions of proposals by fax or are not acceptable. Minority businesses are encouraged to participate in this project. Alamance County reserves the right to reject any or all proposals presented and to waive any informalities and irregularities. The County will coordinate and issue information regarding all aspects of this audit. All inquiries and submissions are to be directed in writing to the Finance Officer at the above address. 4. The audit contract will be awarded by the Board of County Commissioners at a regularly scheduled meeting on April 4, The audit firm selected will be notified soon thereafter.

7 DESCRIPTION OF THE GOVERNMENTAL ENTITY AND IT S ACCOUNTING SYSTEM Alamance County is located in central North Carolina with an approximate population of 155,000. The County s Comprehensive Annual Financial Report for the Year Ended June 30, 2015 is available on the County s website at: Fund and Account Groups The auditor should make reference to the Alamance County Comprehensive Annual Financial Report for the previous year. The County still maintains all the funds and account groups at approximately the same level unless noted below. The County collects the taxes for twelve fire districts, the Cities of Burlington, Graham and Mebane, the Towns of Haw River, Green Level, Elon and Gibsonville, the Village of Alamance, and the Altamahaw-Ossipee Sanitary District. Grants, Entitlements and Shared Revenues The auditor should refer to the Comprehensive Annual Financial Report for the County of Alamance for the previous year. The unit received all the grants, entitlements, and shared revenues listed on page 155 in the Compliance Section of the report. Budgets The unit budgets all funds on the modified accrual basis of accounting as required by North Carolina law. Appropriations are made at the departmental level. The unit also maintains an encumbrance system. Both the budgetary and encumbrance systems are integrated with the accounting system to provide easy comparison with actual expenditures. Accounting Records The County of Alamance maintains all its accounting records at the finance office located at 124 W. Elm St., Graham, NC. The governmental unit maintains its cash receipts journal, cash disbursements journal, general ledger, fixed assets, payroll, and tax receivables on a mainframe computer system. The tax appraisal and collection is maintained with OneTax Software. Budgeted revenues are estimated at $157,170,370 for FY In addition, outstanding debt totaled $57,297,611 as of June 30, The County continues to maintain an AA- bond rating from Standard & Poor s Corporation and Aa2 from Moody s Investors Service.

8 ASSISTANCE AVAILABLE TO PROPOSER The unit will make available to the auditor sufficient assistance to pull and file records, and prepare and mail all necessary confirmations. The following accounting procedures will be completed and documents prepared by the unit's staff no later than September 15: 1. The books of account will be fully balanced. 2. All subsidiary ledgers will be reconciled to control accounts. 3. All bank account reconciliations for each month will be completed. Additionally, the unit's staff will prepare the draft of the financial statements, including Management s Discussion and Analysis and all supporting schedules and information by October 3. The County will provide to the auditor a workspace in close proximity to finance personnel, phones, copier, and fax machines.

9 ASSISTANCE AVAILABLE TO PROPOSER The unit will make available to the auditor sufficient assistance to pull and file records, and prepare and mail all necessary confirmations. The following accounting procedures will be completed and documents prepared by the unit's staff no later than September 15: 1. The books of account will be fully balanced. 2. All subsidiary ledgers will be reconciled to control accounts. 3. All bank account reconciliations for each month will be completed. The auditor is expected to draft the exhibits, supplementary schedules, and footnotes for the CAFR. The County will review and accept responsibility for the drafted information upon their completion. The County will prepare the transmittal letter and the MD&A. The County and the audit firm will coordinate their efforts to proofread the CAFR. The auditor is expected to draft the Schedule of Federal and State Awards. The County will prepare portions of the statistical section of the CAFR with assistance from the audit firm upon request. The County will be responsible for final printing and binding of the CAFR. The County will provide to the auditor a workspace in close proximity to finance personnel, phones, copier, and fax machines.