REQUEST FOR PROPOSAL FINANCIAL ADVISING, AUDITING & COST ALLOCATION SERVICES

What is the purpose of the examination?
What must the Auditors complete in order to be considered for what?
What is the purpose of using the qualifications and experience of an auditor?

Transcription

1 REQUEST FOR PROPOSAL FINANCIAL ADVISING, AUDITING & COST ALLOCATION SERVICES CONTENTS I. PURPOSE OF REQUEST II. III. IV. PROPOSAL REQUIREMENTS EVALUATION PROCEDURES SELECTION PROCESS / AWARD OF CONTRACT V. MEETINGS VI. VII. VIII. IX. PAYMENT TERMS DESCRIPTION OF AUDITING SERVICES FINANCIAL ADVISING SERVICES COST ALLOCATION X. COUNTY S TERMS AND CONDITIONS

2 I. PURPOSE OF REQUEST The County of Halifax and the Halifax County Industrial Development Authority hereinafter called the Entity seeks a three (3) year contractual relationship for financial advising, auditing services, and cost allocation plan preparation to meet the requirements of the state and federal governments as well as assist in sound financial planning. The three (3) year relationship will be covering fiscal years ending June 30, 2015, 2016, and II. PROPOSAL REQUIREMENTS A. Format of the Proposal Proposals should be as thorough and detailed as possible so that the Entity may properly evaluate your capabilities to provide the required services. The Auditor is required to submit the following items as a complete proposal: 1. Title Page Show the RFP subject, the name of the proposer s firm, local address, telephone number, name of contact person, and date. 2. Letter of Transmittal and Representations of the Auditor to include: a. The qualifications and experience of the firm in auditing similar entities; including names, addresses, and telephone numbers of persons who may be contacted for reference. The auditing experience should be described in detail, always including scope of work, dates, and type of reports issued. State the number of years the firm and managing office have been in business. Identify the locations of other offices that will be involved in performing the scope of services and their role in those services. b. A list of the personnel to be assigned to the audit, including a description of their professional qualifications and relevant experience. c. The Auditor s approach to the audit engagement, interface with personnel, effects of electronic data processing, audit risk and materiality, and timing of the audit work. d. The name, position, and telephone number of the contact person authorized to conduct negotiations and discuss the proposal. e. A statement of assurance that the firm is independent in accordance with the Code of Professional Ethics of the AICPA, and will comply with all Federal, State, and Local laws and regulations in the performance of this engagement. f. A statement indicating the firm s participation in an external quality control review program and a copy of the most recent quality review report.

3 3. Inquiries g. Describe the firm s participation in government financial organizations such as the Government Finance Officer s Association (GFOA), Virginia GFOA, etc. Also describe the firm s participation in the GFOA certificate program, AICPA-sponsored or other comparable quality programs. h. A statement of assurance that all requirements stated in this Request for Proposal are acceptable and will become part of the final contract. i. The approximate date the audit will begin (including preliminary field work) and end, as well as approximate dates for delivery of the financial statements and/or Auditor s reports. Inquiries concerning the request for proposals and the subject of the request for proposals should be made to: Stephanie C. Jackson, CPFIM, CVGFO Director of Finance Halifax County 1030 Cowford Road, Lower Level 1 Halifax, Virginia (434) ext stephanie.jackson@co.halifax.va.us 4. Right to Reject Proposals Proposals shall be signed by an authorized representative of the firm. All information requested must be submitted. Failure to submit all requested information may result in the rejection of the proposal. Mandatory elements are those required by law or regulation or are such that they cannot be waived and are not subject to negotiation. Each copy of the proposal should be bound or contained in a single volume where practical. All documentation submitted with the proposal should be contained in that single volume. The County reserves the right to accept or reject any or all proposals, to waive informalities, and to reissue any request for proposals. The County reserves the right to contract with firms not party to the resultant contract for similar work if it determines this to be in its best interest.

4 B. Deadline for Submission In order to be considered for selection, Auditors must submit a complete response to the Request for Proposal. One (1) original and two (2) copies of each proposal must be received by the County. The proposals and all copies should be received by: Halifax County Attention: Stephanie C. Jackson, CPFIM, CVGFO 1030 Cowford Road, Lower Level 1 Halifax, Virginia Proposals must be received no later than 2:00PM on May 16, III. EVALUATION PROCEDURES Proposals meeting the mandatory requirements will have their proposals evaluated and scored for technical qualifications. The following represents the principal selection criteria which will be considered during the evaluation process. 1. Mandatory Elements a. The firm is independent and licensed to practice in Virginia. b. The firm adheres to the instructions in this request for proposal on preparing and submitting the proposal. c. The firm submits a copy of its last external quality control review report and the firm has a record of quality audit work. 2. Technical Qualifications a. The skill, experience, independence, and training of the firm and specified persons who will be performing the service requested. b. The Auditor s understanding of the system of accounting obtained through prior experience or discussion with the appropriate officials. c. The prior experience and reputation of the Auditor in auditing county governments. d. Auditor location(s), i.e. availability for service and consultation. e. Cost of Audit Services f. Ability to complete the audit and submit the financial statements in order to meet required deadlines.

5 IV. SELECTION PROCESS / AWARD OF CONTRACT The selection process will be in accordance with competitive negotiation for professional services as defined in Section of the Code of Virginia. We shall engage in individual discussions with two or more offerors deemed fully qualified, responsible, and suitable on the basis of initial responses and with an emphasis on professional competence to provide the required services. Such offerors shall be encouraged to elaborate on their qualifications and performance data or staff expertise pertinent to the audit. Proposals will be screened and selection will be made on the basis of criteria listed in the Request for Proposal and as depicted in Section III. Proprietary information shall be clearly identified as such. At the conclusion of the discussion, on the basis of the selection criteria listed in this Request for Proposal and all information developed in the selection process to this point, the selection committee shall select in order of preference two or more offerors whose professional qualifications and proposed services are deemed most meritorious. Negotiations shall then be conducted beginning with the offeror ranked first. If a contract satisfactory and advantageous to the Entity can be negotiated at a price considered fair and reasonable, the award shall be made to that offeror. Otherwise, negotiations with the offeror ranked first shall be formally terminated, and negotiations conducted with the offeror ranked second, and so on until such a contract can be negotiated at a fair and reasonable price. V. MEETINGS Conferences between the Auditor, responsible staff, and management should be scheduled by the selected Auditor before the preliminary field work and at the end of field work. The purpose of the meetings is to keep the staff and management fully informed on the scope and progress of the audit. A draft of the final report shall be presented to staff and management for comments by a deadline to be determined. VI. PAYMENT TERMS Interim billings are not to exceed 80% of said fee. Final payment will be made upon approval of the County Board of Supervisors.

6 VII. DESCRIPTION OF AUDITING SERVICES Auditing services are to be provided to the Entity by qualified independent certified public accountants in accordance with the following specifications: Scope a. Financial Audit The independent auditor will examine all funds of the Entity in accordance with Generally Accepted Government Auditing Standards (GAGAS) and the specifications of the Auditor of Public Accounts of the Commonwealth of Virginia. The examination shall result in the preparation of the financial statements from the audited records of the unit with the auditor s opinion therein. The auditor s opinion shall be unqualified unless the auditor furnishes, on a timely basis, to the Entity and to the Auditor of Public Accounts of the Commonwealth of Virginia, their reasons for qualifying the opinion, disclaiming the opinion, or rendering an adverse opinion. b. Compliance Audits The auditor shall make the compliance examinations required by OMB Circular A -133 Uniform Administrative Requirements for Grants-In-Aid to State and Local Governments, Attachment P, Audit Requirements, in addition to the annual financial audit. c. Management Letter The auditor shall submit a management letter to the Entity containing recommendations to strengthen internal controls and etc. d. Submission of Reports The auditor shall provide five (5) copies of the financial statements and auditor s report therein not later than December 30, following the end of each fiscal year. Two (2) copies of the financial statements and management letter must be submitted to the Auditor of Public Accounts of the Commonwealth of Virginia no later than November 30 th following the end of each fiscal year. A separate audit report shall be provided for the Halifax County Industrial Development Authority. Representation of the Entity a. The following are the current funds of the County and IDA: County General Fund VPA Fund Courthouse Maintenance Fund Sheriff Drug Fund Federal

7 Sheriff Drug Fund Local Sheriff Drug Fund State Law Library Fund E-911 Fund Drug Prosecutor Fund Commonwealth Attorney Drug Fund Grant Fund William Tuck Airport Fund William Tuck Airport Capital Fund School Fund School Textbook Fund School Cafeteria Fund School Construction Fund Capital Project Fund Self Insurance Fund Health Savings Account Fund Special Welfare Fund War Memorial Commission Fund Heritage Committee Fund Halifax/South Boston Library Fund Southside CSB Fund Capital Assets Fund b. The books of account will be fully balanced, all subsidiary ledgers reconciled to control accounts and all bank accounts for all months reconciled no later than September 30, each year. c. The Entity personnel shall make records available to the auditor the following information: 1) A final trial balance of each fund; 2) A final trial balance of each subsidiary ledger; 3) A copy of the final budget presented to the Entity for the audit period, the original budget approved for the audit period and all amendments to the budget ordinance; 4) A schedule of insurance in force during the year end of insurance expense for the year; 5) A schedule of the county s capital assets and depreciation with separate schedules of all capital outlays and dispositions; 6) A schedule of accounts payable at year end; 7) Reconciliation of payroll and related fringe benefit tax returns; 8) Copies of all contracts with governmental grantor or grantee agencies; 9) Copies of all other contracts in force at year end of a material amount; 10) Such reasonable additional schedules as may be requested for financial and compliance audits.

8 VIII. FINANCIAL ADVISING SERVICES A proposal should be submitted to define what advice can be expected from offerors on general financial matters that relate to the Entity. Such advice could include but is not limited to: Revenue forecasting Budget preparation Changes in withholding or etc. requirements Accounting modification Alerting to legislative changes affecting the County Others as necessary IX. COST ALLOCATION 1. Development of a Central Services Cost Allocation Plan which identifies the various costs incurred by the County to support and administer Federal and State programs. This plan will contain a determination of the allowable costs of providing counsel, disbursement processing and etc. 2. Negotiation of the complete cost allocation plan with the representatives of the Federal and State governments, whichever is applicable. 3. Assistance in preparing the initial claims for recovery of funds due the County. 4. Services to be performed shall be undertaken and completed in such sequence as to assure expeditious completion. The cost allocation plan should be available six (6) weeks after the start date of the project for review and submission to the Federal and State negotiators by May 30 of each year. 5. The County shall locally furnish all available information, data, and materials pertinent to the completion of the plan. The County shall cooperate with the consultants in carrying out the work herein and shall provide adequate staff for liaison with the consultant and other agencies of the County government. Selection criteria will include the following: 1. The skill, experience, training, and time commitments of the specified persons who will be performing the services requested. 2. Experience in working with Federal and State regulatory agencies. 3. The firms' understanding of local government systems of accounting obtained through prior experience or discussion with appropriate local officials. 4. Prior experience and reputation in preparing cost allocation plans. 5. Time proposed to complete the engagement. A copy of the latest cost allocation plan is available upon request.

9 X. COUNTY S TERMS AND CONDITIONS 1. Rejection of Proposals: The County reserves the right to accept or reject any and all proposals. The County reserves the right to negotiate with the selected firm in order to best serve the needs of the County, in respect to both cost and effectiveness. 2. Availability of Funds: It is understood and agreed between the parties to any agreement resulting from this proposal that the County shall be bound hereunder only to the extent of funds appropriated or which may hereafter be appropriated for the purposes of this agreement. It is further understood and agreed between the parties to any agreement resulting from this proposal that the County shall not be obligated to purchase or pay services covered by this agreement unless and until they are ordered, delivered, or performed for the County. 3. Cancellation: The County reserves the right to cancel and terminate any resulting agreement, in part or in whole, without penalty, upon sixty (60) days written notice to the Auditor. Any contract cancellation notice shall not relieve the Auditor of the obligation to complete an audit commenced prior to the effective date of the cancellation, nor shall it relieve the County of its obligation to pay for services rendered. 4. Term of Contract: The term of the contract shall be for the examination of the three (3) fiscal year periods for the County ending on June 30, 2015 through June 30, Insurance: The Auditor will maintain professional liability insurance coverage of a minimum of $1,000,000 at all times during the Term of the contract. 6. Return of Proposal: All proposals submitted under this RFP will become the property of the County and will not be returned. However, if any portion of the proposal is marked proprietary or confidential and is highlighted, this portion can be returned after award of contract, if requested. 7. Non-Discrimination; Drug-Free Workplace: Any certified public accounting firm submitting a proposal pursuant to this request for proposals shall maintain a workplace that is free of employment discrimination and free of drug use and shall at all times be in compliance with Virginia Code Sections through As well, any contract entered into by the Authority for the services requested hereunder will incorporate these provisions which shall be binding on the certified public accounting firm. See attachments. 8. Changes: Certain changes may be required due to implementation of new GASB statements that become effective. Minor audit work or technical assistance required by the implementation shall be covered under the terms of this agreement. Significant changes, which must be

10 mutually agreed upon by and between the County and the Auditors and approved by the County s Board of Supervisors, shall be incorporated in written amendments to this agreement. 9. Accomplishment of Project: The Auditors shall commence, carry on and complete the project with all practicable dispatch, in a sound, economical and efficient manner, in accordance with the provisions hereof and all applicable laws. In accomplishing the project, Auditors shall take such steps as are appropriate to insure that the work involved is properly coordinated with the related work being carried on by the County. 10. Assignment: The Auditors shall not assign, sublet or transfer interests in this agreement without the written consent of the County. 11. Ethics In Public Contracting: By submitting their proposals, the Auditor certifies that their bids or proposals are made without collusion or fraud and that they have not offered or received any kickbacks or inducements from any other bidder/offeror, supplier, manufacturer, or subcontractor in connection with their bid or proposal, and that they have not conferred on any public employee having official responsibility for this procurement transaction, any payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised unless consideration of substantially equal or greater value was exchanged. 12. Indemnification and Hold Harmless: To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the County, its agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney s fees, arising out of or resulting from the performance of the work, provided that any such claim, damage, loss or expense is attributable to the bodily injury, sickness, disease or death, or injury to or destruction of tangible property (other than the work itself) including the loss of use or omission of the Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. Such obligations shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person described in this paragraph. In any and all claims against the County or any of its agents or employees by any employee of the Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or obligation under paragraph 1.1 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any Subcontractor under workers or workmen s compensation acts, disability benefit acts or other Employee benefit acts.