Loutit District Library Expanding Horizons, Enriching Minds

Transcription

1 Loutit District Library Expanding Horizons, Enriching Minds AUDIT RFP QUESTIONS AND RESPONSES Year Ending 6/30/ What is your expected total revenues and expenditures for the year ending 6/30/17? Budgeted Revenues and Expenditures for FY 2016/2017 began July 1, 2016 at $2,336,801 and were revised in January 2017 to $2,430,426. The current FY budget, last year s audit, and other information is available on the library s website. 2. Who maintains the listing of all capital assets owned by the Library, including accumulated depreciation, and will you calculate depreciation annually and provide it to the auditors? The Library s Business Manager maintains the list of capital assets and auditor calculates the annual depreciation based on the Library s reporting of assets. 3. What computerized accounting software does the Library use? Or, does the Library contract with someone for accounting services like an outside accountant? The Library utilizes QuickBooks. We do not contract for outside accounting services, other than the annual audit. 4. Will the Library record all accrual entries for audit purposes (i.e., receivables, accounts payable, accrued liabilities, etc.) if applicable and provide us with the applicable work papers or will the auditors be expected to assist with this? Yes. The Library will prepare all documentation needed for the audit. 5. Does the Library have more than one location? If yes, are there any decentralized receipting/disbursing functions going on at those different locations? No. The Library is a one outlet facility in downtown Grand Haven. 6. Will the Library provide the auditors with detailed reconciliations of all material accounts at the beginning of audit fieldwork? Yes. All necessary reports will be prepared by Library staff. 407 Columbus Avenue, Grand Haven, MI Phone (616) ~ Fax (616) ~

2 7. How many bound copies of our proposal to conduct audit services would you like us to provide when we submit our proposal? The RFP requests one print copy and one electronic copy of the proposal. 8. How many accounts payable disbursements are written annually (estimate if necessary)? How many employees are there at the Library? How many payroll checks are written annually (estimate if necessary)? There are approximately 1,000 accounts payable disbursements written each year. Most by check, some via ACH. There are 14 full-time and 16 part-time employees. Payroll is distributed every two weeks or 26 times per year per employee. 9. What was the cost of the June 30, 2016 audit? The FY 2015/2016 Audit cost was $12, How many auditors were on-site for the prior audit and how many days were they onsite? One auditor was on-site for approximately one week. 11. How many journal entries did the auditors propose last year? There was one Journal entry in FY 2015/ How many accounting firms received the RFP? We sent the RFP to 15 firms in the West Michigan area. 13. How many years have you been with your current auditor? Our current auditor has been with us since the beginning a) Why is the Loutit District Library soliciting proposals at this time? b) Are you dissatisfied with your current provider? c) Will you necessarily be changing auditors at this time? Page 2 of 6

3 a) We have not solicited bids for auditing services since 2000 and believe it to be good practice to seek bids for services from time to time. b) No, we are not dissatisfied with our current auditing firm. c) No. We will accept the bid deemed to be in the best interests of the Library and our taxpayers. 15. What is the deadline for submitting our proposal? February 27, :00 p.m. 16. We obtained a copy of your 2016 financial statements from State of Michigan s website. Do you anticipate any significant changes to the Loutit District Library s operations for fiscal year 2017? Nothing substantial is anticipated, although we are looking at the potential of refinancing our building bonds in the Spring 2017 to reduce annual costs. 17. a) When will the Loutit District Library be ready for the audit to begin? b) How flexible are you concerning the timing of the audit? a) We are generally ready to begin the 2 nd week in August. b) We are very flexible. 18. Approximately how long was the audit team on-site for 2016 (i.e., how many people for how many days)? One person for approximately one week. 19. What is the expected delivery deadline for final financial statements issued? We would like the draft audit to be presented to the library s Finance Committee in September. After this meeting, the draft is amended into a final version to be presented to the full Board at their October meeting. 20. a) What was the Loutit District Library s audit fee for 2016? b) Did this include any billings for additional services beyond the base audit? a) $12,100. b) No additional services were required or billed for. Page 3 of 6

4 21. a) What is the condition of the Loutit District Library s accounting records? b) Were significant audit adjustments required for 2016? c) Approximately, how many adjustments were made? a) You should find our records in well organized and ready for examination. b) No adjustments were made. c) There was one journal entry made for FY 2015/ Are there any specific adjustments that the auditors are to do yearly? No adjustments. 23. What is the size/makeup of the Loutit District Library s accounting staff (i.e., who performs what functions and for how long)? Our Business Manager takes care of all payables, receivables, daily cash, bank reports, internal accounting, and audit preparation. This is currently a full time position. 24. What two or three things are most important to the Loutit District Library in selecting the firm to conduct its audit? Price is always important. A good working relationship with our Business Manager and library staff. Excellent written and oral communication skills with staff and board members. 25. If a single audit is required, do you prepare your own SEFA and CFDA numbers? If so, a) what is the total of federal awards expenditure? b) what are the major programs? If SEFA and CFDA refer to federal funding, we receive so few federal dollars that these are probably not applicable to us. We are not familiar with either of these acronyms. 26. Does the audit firm complete the entries required for the GASB 34 conversion to fullaccrual basis of accounting (government-wide financial statements)? Yes. 27. What software is used to maintain the capital asset records? Capital assets are recorded in both QuickBooks and Excel and maintained by library staff. Page 4 of 6

5 28. There is both a defined benefit (DB) and a defined contribution MERS plan. Is the DB plan still open to new hires? The library maintains both DB and DC retirement plans. At this time, the DB plan is still open to new hires. 29. Who (Library staff or the audit firm) completes the GASB 68 Net Pension Liability calculation for the DB plan? MERS provides pension information to library staff. 30. Who (Library staff or the audit firm) calculates the transfer value included in Note J of the audited financial statements? Library staff make this calculation. 31. Any anticipated bond issuances or refunding s? It is anticipated that the library will refinance the two existing bond issues Series A and Series B in May The Request for Proposal (RFP) is asking for a report on internal control and compliance in accordance with Government Auditing Standards. This was not part of the prior audit report please verify that the Library desires the additional reporting. This is a simple report on the library s internal financial controls and was included in the auditor s transmittal letter to the Board. 33. The RFP indicates audits are typically done the end of August. Is this when the final audit is delivered or when the audit starts? Generally, the audit begins the 2 nd week in August and a draft is completed around the beginning of September. The draft is then presented to the library s Board Finance Committee for revue and editing and then a final audit is presented to the Board at either the October or November Board meeting. Page 5 of 6

6 34. The 2016 audit was dated October 9. Was the auditor waiting for information from the Library in order to complete the audit or are all schedules and reconciliations available at the time the auditors start? All schedules and reconciliations are available when the audit begins. 35. The RFP indicates the auditor will fulfill all State of Michigan Dept. of Treasury reporting requirements. Are you anticipating that the audit firm complete anything in addition to uploading the audit to the State and preparing the auditing procedures report? Does the audit firm also complete the Qualifying Statement? Audit firm completes the Qualifying Statement and library staff submit it to the state. 36. Does the Library anticipate having any significant grants, capital projects, or other significant changes in the next three years? Does it anticipate needing a single audit for federal grants? We do not anticipate any major capital projects in the next several years. We do not receive federal funding. January 31, 2017 Updated February 8, 2017 Page 6 of 6