Request for Proposals Independent Audit Services The Greensboro Housing Authority (GHA) herein solicits Request for Proposals (RFP) from qualified, licensed, responsible firms interested in providing GHA s External Annual Audit in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD). Each Proposer should submit an original and three (3) copies of its Proposal to Greensboro Housing Authority, attention: Nancy Thomas, Chief Financial Officer, 450 N. Church Street, Greensboro, NC 27401. Proposals will be accepted until 12:00 p.m. Eastern Standard Time (EST) Wednesday, February 27, 2013. Proposals must be clearly marked Request for Proposals Independent Audit Services Any Proposals received after the specified time and date will not be considered. All Proposals must be received and time-date stamped by the GHA receptionist at the address listed above, on or before the above specified time and date. If you choose to mail in your Proposal, it must be mailed return receipt requested and arrive by the specified time, regardless of the postmark date. THERE WILL BE NO EXCEPTIONS. By submission of a Proposal the Contractor agrees, if its Proposal is accepted, to enter into a contract with the Housing Authority to complete all work as specified or indicated in the contract documents for the contract price and within the contract time indicated in the attached RFP. The Proposers further accept all of the terms and conditions of the RFP. Proposals should be prepared in accordance with instructions contained within the RFP and should remain valid for 90 days. GHA will not be liable for any costs incurred in the preparation of proposals. Proposals shall be evaluated by GHA as stated in the evaluation factors noted in the RFP. Oral presentations, if deemed necessary by GHA, will be scheduled at a mutually agreeable date and time. GHA reserves the right to request additional information concerning any and/or all Proposals submitted. NOTE: GHA reserves the right to reject any or all proposals if such action is in the best interest of the Housing Authority and to waive any and all informalities and minor irregularities. GHA reserves the right to cancel this solicitation for any reason it deems is in the best interest of the agency. For a copy of the RFP visit GHA s website at Questions regarding the attached RFP should be directed to Nancy Thomas, Chief Financial Officer, at http://www.gha-nc.org/vendors/currentbids-requests-for-proposals.aspx (336) 303-3216, or nthomas@gha-nc.org. Sincerely, Nancy Thomas, Chief Financial Officer
TABLE OF CONTENTS INTRODUCTION SECTION A SECTION B SECTION C SECTION D SECTION E NOTICE OF INTENT TYPE OF CONTRACT QUESTIONS AND ADDITIONAL INFORMATION STATEMENT OF WORK EVALUATION CRITERIA INSTRUCTIONS TO PROPOSERS 2
REQUEST FOR PROPOSALS INDEPENDENT AUDIT SERVICES NOTICE OF INTENT TO RECEIVE PROPOSALS The A-133 audit of the Housing Authority of the City of Greensboro (GHA) shall be conducted in accordance with the Single Audit Act, the Standards of Audit for Governmental Organizations, Programs, Activities, and Functions, 24 CFR Part 990, and all other relevant regulations. GHA is requesting audit proposals for fiscal years ending June 30, 2013 and June 30, 2014 with renewal option for the fiscal years ending June 30, 2015, June 30, 2016, and June 30, 2017. GHA is chartered as a public corporation under the laws of the State of North Carolina. The purpose of the Authority is to engage in the development, acquisition, leasing and administration of low-rent housing programs. Our administrative offices are located at 450 N. Church Street, Greensboro, NC 27401. GHA has approximately 114 employees and the chart of accounts consists of approximately 45 funds. During FY13, the Authority will switch from Modern Software Technology (MST) to YARDI software. Both software packages are designed to account for housing management and include applications for accounts payable, general ledger, work orders, inventory, tenant accounting, Section 8, and tenant applications. MST software is serviced under contract with a 3 rd party and is updated and maintained in-house. The YARDI software resides on YARDI s server and will be maintained by YARDI. Personnel records are maintained on a stand-alone Abra system. Ceridian is currently used to process all payroll checks and W-2s. Employees are paid 26 times per year plus a longevity payroll in early December. All information in the Abra and Ceridian databases will be transferred over to a Paycor database during FY13. The Housing Authority does not inventory maintenance material items. SECTION A A-1 Type of Contract The Greensboro Housing Authority contemplates the award of a firm fixed price contract resulting from this solicitation. The term of this contract shall be two (2) years from date of award. This contract may be renewed for three additional one-year periods by mutual consent of both parties up to a total contract maximum term of five (5) years. The contract will be subject to termination upon one hundred twenty (120) days advance notice by either party. In the event that the Proposer to which the contract is awarded does not execute a contract within thirty (30) days after such award, GHA may give notice to such Proposer of intent to award the contract to the next ranked Proposer or to call for new proposals. 3
SECTION B B-1 Questions and Additional Information Any questions pertaining to this RFP must be received in writing and directed and addressed to Greensboro Housing Authority, 450 N. Church Street, Greensboro, NC 27401 no later than February 20, 2013. Copies of all inquiries and GHA responses will be sent to all proposers who received a copy of this RFP from GHA no later than February 22, 2013. Copies of any written addenda to this RFP will be provided to all proposers who receive a copy of this RFP from GHA no later than five days prior to the Proposal submission date, and all such addenda shall become part of this RFP. SECTION C C-1 Statement of Work Auditor will conduct an audit that covers the Authority s financial statements, internal control systems, and compliance with laws, regulations, and contract provisions or grant agreements that may have a direct and material effect on each of its major programs. The audit shall be performed in accordance with the following standards and guidelines: 1. Generally Accepted Auditing Principles (GAAP) as promulgated by the American Institute for Certified Public Accountants (AICPA). 2. Generally Accepted Government Auditing Standards (GAGAS) as published by the Government Accounting Office (GAO). 3. The provisions of the Single Audit Act of 1984 as amended and as prescribed by the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State, Local Governments, and Non-Profit Organizations. 4. The Federal compliance Supplement for Single Audits for State and Local Governments. 5. Auditing and reporting provisions of the applicable HUD Audit Guide for Lower Income Housing Program for use by Independent Public Accountants. 6. Any applicable requirements promulgated and adopted by the Federal Government and/or State of North Carolina including individual grantor agency rules and regulations. 7. Any applicable requirements of the Governmental Accounting Standards Board (GASB). The Single Audit reporting package will be submitted to the Single Audit Clearinghouse, the U.S. Department of HUD, and GHA s Board of Commissioners. The report will consist of the following items and any other pertinent information required as part of the HUD REAC GAAP flyer #6 and the Single Audit Act A-133, or as required by HUD. The auditor shall comply with all applicable authoritative guidance to include but not limited to: a) SAS 29, b) SSAE No. 4, c) GASB 33, 34, 63 and 65. 4
GHA will prepare statement, schedules, notes, and other documents for a Comprehensive Annual Financial Report (CAFR) for submission to the Governmental Finance Officers Association for review. It will be the responsibility of the chosen audit firm to compile this data into a single PDF file, to prepare and deliver 40 hard bound copies of the CAFR to the Authority, and to attend and present the report to GHA s Board of Commissioners and its Audit committee. Please indicate in your proposal the experience your firm has in assisting in the preparation of CAFRs. The report will contain the following information at a minimum: 1. Introductory Section 2. Management s Discussion and Analysis 3. Required Financial Statements (including all applicable footnotes) 4. Footnotes on the Summary of Significant Accounting Policies and Federal Non-Cash Assistance 5. Auditor s opinion on the financial statements and required supplementary schedules, (i.e. Schedule of Grant Costs, Financial Data Schedule, et al.) 6. Report on Compliance and on Internal Control Over Financial Reporting based on an audit of financial statements performed in accordance with Government Auditing Standards (GAS) and/or Generally Accepted Auditing Standards (GAAS) 7. Report on Compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133 8. Schedule of Expenditures of Federal Awards and any applicable notes 9. Schedule of Findings and Questioned Costs (includes summary of auditor s results and findings in the current and prior year audits) 10. Statistical Schedules 11. Corrective Action Plan 12. Data Collection Form The Authority wishes the audit to commence within 60 days after the end of the fiscal year and to be completed within 60 days (120 days after the end of the fiscal year). Auditor s opinions are to be delivered by November 15. In addition, a report including all findings and management points must be reviewed with the Authority during an exit conference. All adjusting entries must first be reviewed with the CFO before completion of fieldwork. All tax returns and schedules required to maintain tax-exempt status under IRS Code 501(c)(3) for Housing Authority of the City of Greensboro s non-profit entities (Opportunities Unlimited, Greensboro Housing Development Corporation and Greensboro Housing Management Corporation) will be part of the proposal and will be prepared and submitted on time in accordance with state and IRS regulations. Additionally, any information regarding changes in tax laws and regulatory requirements, including but not limited to Statement of Financial Accounting Standards (SFAS) and Governmental Accounting Standards Board (GASB), affecting our programs should be provided on a timely basis. All completed Grants will require closeout audits. Note that these grants cross the fiscal year being audited. 5
Tax returns must be prepared in time to be checked and submitted in a timely manner. Penalties and interest resulting from late preparation will be the responsibility of the auditor. SECTION D D-1 Evaluation Factors The following factors will be used to evaluate RFP responses as described below. Specific evaluation criteria to evaluate the technical qualifications of each proposer and their degree of importance/relative weight are as follows: Mandatory Requirements (5 points) a. The audit firm is independent and licensed to practice in North Carolina. b. Staff has maintained CPE requirements. c. Firm is not currently being censored by REAC. d. The audit firm submits a copy of their most recent peer review and has a record of quality audit work. e. References from at least 3 other current or recent PHA clients (comparable size of GHA) Technical Capabilities (15 points) a. Staffing on key positions, method of assigning work, and procedures for maintaining level of service Technical Approach (15 points) a. Labor categories, estimated hours and skill mix Demonstrated Experience (15 points) a. Past experience and performance with similar engagements, experience in CAFR preparation, and experience of site auditors conducting public housing audits as verified by reference checks or other reasons Audit Approach (20 points) a. Work plan, time and staff onsite, electronic capabilities, responsiveness and availability Fees for service (30 points) The evaluation and selection of an audit firm will be based on the information submitted in the audit firm s proposal, references obtained, and any required on-site visits or oral presentations. Failure to respond to each of the requirements in the RFP may be the basis for rejecting a proposal. 6
D-2 Evaluation Method GHA anticipates that it will select a minimum of a three-person committee to evaluate each of the responsive hard copy proposals submitted in response to this RFP. The evaluation committee shall evaluate the responsive proposals submitted and award points pertaining to the Evaluation Factors. GHA reserves the right to conduct a Best and Finals negotiation, which may or may not include oral interviews, with all firms deemed to be in the competitive range. Any firm deemed not to be in the competitive range shall be notified of such in writing by GHA within 10 days after the beginning of such negotiations with the firms deemed to be in the competitive range. To be considered to receive an award, a proposer must receive a total calculated average of at least 70 points. D-3 Negotiations and Award Unless there is no need for negotiations with any of the Proposers, negotiations shall be conducted with Proposers who submit proposals determined to have a reasonable chance of being selected for award, based on evaluation of qualifications, price, and other factors considered most advantageous to GHA. Such Proposers shall be accorded fair and equal treatment with respect to any opportunity for negotiation and revision of proposals. The purpose of negotiations shall be to seek clarification with regard to and advise Proposers of the deficiencies in both the technical and price aspects of their proposals so as to assure full understanding of and conformance to the solicitation requirements. No Proposer shall be provided information about any other Proposer s proposal, and no Proposer shall be assisted in bringing its proposal up to the level of any other proposal. Proposers shall not be directed to reduce their proposed prices to a specific amount in order to be considered for award; however, best and final offers may be requested. GHA reserves the right to request additional information concerning any and/or all proposals submitted. A common deadline shall be established for receipt of proposal revisions based on negotiations. After evaluation of proposal revisions, if any, the CEO shall make a recommendation to the Board of Commissioners. The Board of Commissioners will make the final selection of the firm to be awarded the contract. The contract shall be awarded to the responsible firm whose qualifications, price and other factors considered, are the most advantageous to GHA. If an award is completed, all proposers will receive by email a Notice of Results of Evaluation. Such notice shall inform all proposers of: Which proposer received the award; Where each proposer placed in the process as a result of the evaluation of the proposals received; Each proposer s right to a debriefing and to protest. 7
SECTION E E-1 Instructions to Proposer Proposal Requirements: Information concerning your firm and the name of the contract partner and staff persons who will be assigned to perform the audit. You should indicate the prior audit experience of these persons, including specifically their experience auditing public housing authorities and HUD grants. Please submit resumes for all staff to be assigned to this audit. References pertaining to public housing authority audit clients for which your firm has been the auditor of record and who have permitted the listing of their names as a reference. Please indicate the nature of the work performed for these clients as well as the time frame and the size of the Authority. Please include in your proposal the latest peer review report and a certification that your firm is licensed to perform audits in North Carolina. A statement as to the amount of assistance your firm will expect from the Housing Authority of the City of Greensboro accounting staff. If the Housing Authority of the City of Greensboro accounting staff will be asked to prepare audit schedules, please list all anticipated requirements. A description of insurance coverage maintained by the firm. Please provide a copy of the declaration page from current policies for Worker s Compensation, General Commercial Liability and Professional Liability, Malpractice and Errors and Omissions insurance coverage. Certification that your firm is in compliance with the Equal Employment Opportunity requirements. A breakdown of time by staff level and computation of the audit fee including expenses used in your proposal. The computation should show the amount of time required and rate used by each level of staff you expect to use on the audit. Availability of a staff throughout the fiscal year and proposed charges (if any) for assistance with issues and questions that arise regarding issues that could have an impact on financial statements. 8
The computation should be in the following format: LEVEL OF SERVICE RATE PER HOUR ESTIMATED HOURS AMOUNT Partner Manager Senior Staff Intermediate Staff Staff Assistant Support Staff Expenses TOTALS You must include a firm-fixed fee for the proposal work for each fiscal year (FY). The proposed fees submitted are inclusive of all necessary cost to provide the proposed services, including, but not limited to: employee costs and benefits; clerical support; overhead profit; supplies; materials; licensing; insurance; travel expenses; etc. Firm-Fixed Fee Annual Audit FY13 $ Firm-Fixed Fee Annual Audit FY14 $ Firm-Fixed Fee Annual Audit FY15 $ Firm-Fixed Fee Annual Audit FY16 $ Firm-Fixed Fee Annual Audit FY17 $ The contract also requires that you retain the audit working papers to which GHA or other governmental units may have access for a period of five years. These working papers will also be made available to successor auditors should your firm not be the successful bidder in future years. Additional information that we believe may assist you in the preparation of the audit proposal is enclosed. No member, officer, or delegate to the Congress of the United States of America or Commissioner shall be admitted to any share or part of this contract or to any benefit to arise there from; but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit. No members, officers, or employees of the Authority, no member of the governing body in which the Authority was activated, and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the project, shall during his tenure, or for one year thereafter, have an interest, direct or indirect, in this contract or the proceeds thereof. The Request for Proposals and the completed response to the Request for Proposals will be an addendum to the executed contract with the successful audit firm. STATISTICS Public Housing Units 2,203 Mixed Finance Units 191 Section 8: Housing Choice Vouchers 3,202 Other 288 9
PROGRAMS Listed below are the major programs that will need to be audited. Program Budget Period Funding Source Central Office Cost Center $3,421,962 7-1-12 thru 6-30-13 Management Fees Asset Management Properties Smith Homes $2,309,452 7-1-12 thru 6-30-13 HUD Ray Warren Homes $1,425,735 7-1-12 thru 6-30-13 HUD Hampton Homes 5 $1,086,641 7-1-12 thru 6-30-13 HUD Hampton Home 6 $647,468 7-1-12 thru 6-30-13 HUD Claremont Homes $1,607,924 7-1-12 thru 6-30-13 HUD Hall Towers $846,495 7-1-12 thru 6-30-13 HUD Gateway Plaza $1,220,869 7-1-12 thru 6-30-13 HUD WoodBerry/Baylor $313,704 7-1-12 thru 6-30-13 HUD Hickory Trails $745,203 7-1-12 thru 6-30-13 HUD Stoneridge $249,622 7-1-12 thru 6-30-13 HUD Lakespring Courts $318,829 7-1-12 thru 6-30-13 HUD Applewood $260,399 7-1-12 thru 6-30-13 HUD Pearleaf $295,228 7-1-12 thru 6-30-13 HUD Silverbriar $256,195 7-1-12 thru 6-30-13 HUD Laurel Oaks $284,666 7-1-12 thru 6-30-13 HUD Riverbirch $287,139 7-1-12 thru 6-30-13 HUD Woodland Village $134,140 7-1-12 thru 6-30-13 HUD Abby Courts $88,385 7-1-12 thru 6-30-13 HUD Foxworth $201,073 7-1-12 thru 6-30-13 HUD Hicone TBA TBA HUD Windhill * $25,992 7-1-12 thru 6-30-13 HUD Windhill Courts * $25,121 7-1-12 thru 6-30-13 HUD Woodland Village $134,140 7-1-12 thru 6-30-13 HUD The Havens at Willow Oaks * 7-1-12 thru 6-30-13 $85,556 HUD The Villas at Willow Oaks * 7-1-12 thru 6-30-13 $109,368 HUD Parkview Apartments * $74,416 7-1-12 thru 6-30-13 HUD The Townhomes at Willow Oaks * 7-1-12 thru 6-30-13 $231,984 HUD HCVP $17,771,830 7-1-12 thru 6-30-13 HUD Shelter Plus Care $116,110 3-4-08 thru 3-3-13 HUD Shelter Plus Care $427,536 3-20-12 thru 3-19- HUD Supportive Housing Program (SHP) 13 $43,730 7-1-12 thru 6-30-13 HUD 10
Supportive Housing Program $477,369 3-1-12 thru 2-28-13 HUD (SHP) ROSS Service Coordinator $453,794 9-26-11 thru 9-25- HUD 14 ROSS FSS Coordinator $150,670 1-1-12 thru 12-31- HUD 12 City Tenant Based Rental Assistance $216,000 5-28-10 thru 2-28- 14 City of Greensboro HOPWA $477,369 3/1/12 thru 12/31/12 Central Carolina Health Network Capital Grant-2009 4,063,670 Expended date 9- HUD 14-13 Capital Grant-2010 4,034,804 Expended date 7- HUD 14-14 Capital Grant-2011 3,475,783 Expended date 8-2- HUD 15 Capital Grant-2012 3,081,559 Expended date 3- HUD 11-16 Capital Grant-2013 TBA TBA HUD Development Grant 3,926,750 HUD Capital Fund Loan Program 15,265,586 HUD/FannieMae Hicone (Non-ACC) TBA TBA Private * - Mixed Finance Units E-2 Acceptance of Proposals Proposals must be signed, sealed and received in completed form at Greensboro Housing Authority located at 450 N. Church Street, Greensboro, NC 27401, attention: Nancy Thomas, Chief Financial Officer, no later than the proposal submission time and date. Unsealed Proposals will not be accepted. Proposals submitted after the designated date and hour will not be accepted for any reason and will be returned unopened to the proposer. GHA reserves the right to accept or reject any or all Proposals, issue addenda, take exception to these RFP specifications or to waive any formalities. Proposer may be excluded from further consideration for failure to fully comply with the requirements of this RFP. E-3 Withdrawal of Proposals Proposals may be withdrawn by written request prior to the deadline set for acceptance of proposals. Proposals may not be revoked or withdrawn after the time set for opening of proposals and shall remain open for acceptance for a period of ninety (90) days following such time. 11