HAMILTON SOUTHEASTERN SCHOOLS REQUEST FOR PROPOSAL OF AUDIT SERVICES

Transcription

1 HAMILTON SOUTHEASTERN SCHOOLS REQUEST FOR PROPOSAL OF AUDIT SERVICES PURPOSE OF THE REQUEST FOR PROPOSAL ( RFP ) The purpose of this RFP is to select a vendor that can satisfy the Hamilton Southeastern Schools ( HSE ) need for audit services that comply with the guidelines established by the Indiana State Board of Accounts ( SBOA ) under Ind. Code All services being sought must comply with HSE financial accountability requirements. SCOPE OF SERVICES AUDIT PERIOD The audit must be prepared for the fiscal year ending June 30, Audit Requirements To be considered for the audit services, the private examiner selected must: 1. Be a certified public accountant and/or CPA firm licensed to practice in the State of Indiana, qualified to conduct examinations in accordance with the government auditing standards adopted by the SBOA. 2. The examination shall be conducted in accordance with the guidelines established by the SBOA and make findings regarding the School s compliance with the uniform compliance guidelines established by the SBOA. 3. The examination of the School includes all associated component units; audits required or necessary for federal financial assistance; findings of noncompliance with state law and uniform compliance guidelines as required by Ind. Code ; and a separate report in accordance with the guidelines established by the SBOA for any items of noncompliance identified. 4. Meet applicable requirements of the Government Auditing Standards issued by the Comptroller General of the United States (Yellow Book). 5. Have no record of performing substandard audits. 6. Understand the role of the SBOA in the audit process and that they are acting as an agent for the State Examiner. Additionally, the following audit requirements must be met: 1. The audit shall be conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards (if applicable). Compliance with Government Auditing Standards is only required if a Single Audit is performed in accordance with OMB Circular A The audit will be performed in accordance with guidelines established by the SBOA and, if applicable, OMB Circular A-133. Schools that receive and expend federal awards are subject to the provisions of the Single Audit Act, as amended by the Single Audit Act Amendments of 1

2 1996. If HSE is subject to a Single Audit in compliance with OMB Circular A-133, then the audit must also be performed in accordance with Government Auditing Standards issued by the Comptroller General of the United States. 3. The audit will address items of noncompliance as they pertain to the auditee and as addressed in the Guidelines for Audits of State and Local Governments by Authorized Independent Public Accountants. 4. The State Examiner shall be notified immediately via phone at (317) if any fraud, abuse, or illegal acts are discovered or suspected. The SBOA shall be notified immediately and before disclosing the discovery or suspicion to HSE. 5. The certified public accountant must deliver the completed examination report to the SBOA at the same time as the School and not later than thirty (30) days after completion of the examination. The report shall be in readable format prescribed by the SBOA. The SBOA shall review the examination report and may: (1) ask questions of the certified public accountant; (b) review the examination work papers; and (c) take any other actions necessary to verify that the guidelines and standards adopted by the SBOA have been satisfied. 6. The SBOA will receive a copy of the financial audit and supplemental reports, as well as any separate communication to the entity s management, such as a management letter, in an unlocked pdf, Microsoft Word, or Microsoft Excel file. All work papers supporting the examination report shall be available for review by the SBOA. Audits performed by private examiners are to be completed and all required reports issued within 180 days after the close of the audit period. Any requests for an extension of time must be in writing to the SBOA. Reporting Requirements 1. Financial Audit Report The financial report must contain the financial statements of HSE and the private examiner's opinion thereon. In addition the report must contain a schedule of all federal financial assistance identifying each program and indicating whether the federal financial assistance is direct or pass-through, total expenditures for each federal financial assistance program classified by department, grantor, or agency, total federal financial assistance expenditures, and identifying major programs. In accordance with Government Auditing Standards, two additional reports must be issued: 1. A report on the internal control structure based on an audit of the general purpose financial statements performed in accordance with government auditing standards. 2. A report on compliance with state and federal laws and regulations based on an audit of the general purpose financial statements performed in accordance with government auditing standards. The report must also contain any other applicable reports, schedules, or opinions required by OMB Circular A-133. The report on internal control must contain a description of any reportable conditions 2

3 and/or material weaknesses noted during the audit. The report on compliance must contain a description of instances of noncompliance with state and federal laws and regulations, grant agreements, errors or irregularities, and any other items, which in the standards or auditor s judgment, are to be reported in the audit report. Recommendations for corrective action must be included with any item noted. Report Distribution Private examiners are required to file a copy of the financial audit report with the SBOA, in addition to the reports required to be filed with federal awarding agencies and pass-through entities when an audit is performed in accordance with Government Auditing Standards and/or the Single Audit Act. I. SERVICES TO BE PERFORMED INSTRUCTIONS TO PROPOSERS Your proposal is expected to cover one or more of the following services: 1. Annual financial statement audit, including a Single Audit, if required, and annual compliance audit per the requirements above. II. RESPONSE TO THIS REQUEST FOR PROPOSAL In responding to this request, we request the following information: 1. Experience a. Detail your firm s experience in providing auditing services to local governments. Also note how long your firm has been in existence. b. Provide information on whether you provide services to any related associations or groups. 2. Ability to Perform the Required Services a. Discuss the firm s independence with respect to HSE. b. State whether your firm is a member of the AICPA Governmental Audit Quality Center and if so, for how long. c. Provide the names and contact information for at least three other, similarly sized clients of the partner and manager that will be assigned to our organization for reference purposes. d. Describe how and why your firm is different from other firms being considered, and why our selection of your firm as our independent accountants is the best decision we could make. e. Include a copy of your firm s most recent peer review reports, the related letter of comments, and the firm s response to the letter of comments. 3. Capability to follow the Guidelines and Standards Adopted by the SBOA a. Discuss your understanding of the Guidelines and standards adopted by the SBOA and your ability to meet those standards b. Indicate that each individual that will be associated with the audit have complied with all applicable continuing education requirements for audits of governmental entities (e.g., Yellow Book 80 hours of A&A requirement). 3

4 4. Ability to Timely Complete all Necessary Components of the Examination a. Provide a proposed timeline for the starting and completion of all audit work. b. Provide a statement that the audit will be completed by the required deadline(s). c. Discuss commitments you will make to staff continuity, including your staff turnover experience in the last three years. d. Identify the partner, manager, and in-charge accountant who will be assigned to our job if you are successful in your proposal, and provide biographies. Indicate any complaints against them that have been leveled by the state board of accountancy or other regulatory authority, if any. Indicate any corrective actions that have been taken by the firm with respect to these people. e. Describe how your firm will approach the audit of HSE, including the use of any association or affiliate member firm personnel and the areas that will receive primary emphasis. Also discuss the firm s use of technology in the audit. And finally, discuss the communication process used by the firm to discuss issues with the management and Finance Committees of the board. 5. Price to Complete all Necessary Components of the Examination a. Provide a cost estimate for each of the following services individually to be performed on an annual basis: Audit of the financial statements needing A-133 Audit Audit of the financial statements without A-133 b. Furnish standard billing rates for classes of professional personnel for each of the last three years. III. PROPOSAL SUBMISSIONS Please mail three copies of your proposal in a sealed package clearly labeled on the outside of the package Proposal for Auditing Services to: Audit Committee Hamilton Southeastern Schools Cumberland Road Fishers, IN Please submit your response to this request for proposal by Thursday, January 24, Any proposal received after the stated date will not be considered. All proposals must be signed by an officer or employee having authority to legally bind the proposer. IV. EVALUATION OF PROPOSALS In general, HSE will evaluate proposals based upon the following factors: experience, ability to perform the required services, capability to follow the guidelines and standards adopted by the SBOA, ability to timely complete all necessary components of the examination, and price to complete all necessary components of the examination. Additionally, HSE evaluation may also include results of discussions with other clients and the firm s completeness and timeliness in its response to us. 4

5 V. WRITTEN CONTRACT The firm selected shall enter into a written contract with HSE, which shall include, but will not be limited to, the following provisions: (A) Specification of services to be provided and fees or other compensation for the services. (B) Invoices for fees or other compensation shall be submitted in sufficient detail to demonstrate compliance with the terms of the contract. (C) Specification of the contract period and conditions under which the contract may be terminated or renewed. (D) The certified public accountant shall perform the examination in accordance with: (i) the guidelines and standards adopted by the SBOA; (ii) auditing standards generally accepted in the United States; and (iii) if applicable, government auditing standards, Office of Management and Budget Circular A-133, and any other guidelines required by the industry. (E) If the certified public accountant discovers or suspects instances of fraud, abuse of public funds, or the commission of a crime, the certified public accountant shall notify the SBOA: (i) immediately; and (ii) before disclosing the discovery or suspicion to the audited entity. (F) The certified public accountant shall deliver the completed examination report to the SBOA: (i) at the same time as the audited entity; and (ii) not later than thirty (30) days after completion of the examination. The report shall be in a readable format prescribed by the state board of accounts. (G) All work papers supporting the examination report shall be available for review by the state board of accounts. 5