Request for Proposals For Auditing Services

Transcription

1 J. Housing Authority of the City of Clay Center ~ c-:.l 330 West Court St., Clay Center, KS Equal Housing Opportunity (785) * Fax (785) KS Relay Center TDD Request for Proposals For Auditing Services The Housing Authority of the City of Clay Center (also known as the Clay Center Housing Authority) acting for itself, Clay Center Affordable Housing, Inc., and Clay Center Affordable Housing Development, LP is soliciting Request for Proposals (RFP) for audit services for the three fiscal years beginning with the fiscal year ending 12/ The proposals must be submitted no later than 4:00 p.m., central time, on February 17,2012. Minority Business Enterprises and Section 3 firms are encouraged to respond to this RFP. 1. Background The Clay Center Housing Authority (CCHA) is a public body created in 1966 by the City of Clay Center under the Housing Act of 1939 and the State of Kansas. CCRA currently provides low-income housing through HUD Public Housing, Low Income Housing Tax Credits, and USDA Rural Development Section 515. We just completed 98% of a $6 million redevelopment construction project and 100% of a $750,000 renovation project in We are also currently remodeling a third project for approximately $500,00. The housing authority created a nonprofit (Clay Center Affordable Housing, Inc.) and LLC (Clay Center Housing, LLC) to become the general and limited partners for Clay Center Affordable Housing Development, LP. The CCHA Board of Commissioners are also the Directors of Clay Center Affordable Housing, Inc. (CCAH). CCAH is the general partner of Clay Center Affordable Housing Development, LP (CCAHD). Clay Center Housing, LLC (CCH) is the limited partner of CCAHD. 1

2 2. Scope of Work The audit report, financial statements, management discussion and analysis, working papers, and any other paperwork will be subject to review and approval by HUD, USDA Rural Development, and Kansas Housing Resources Corporation. The auditor must retain the working papers for a minimum of five years. The audit shall be made in accordance with Generally Accepted Auditing Standards in the United States and Government Auditing Standards issued by the Comptroller General Office of the United States, 2007 Revision. The audit and fmancial statements shall meet the requirements of federal single audit regulations as prescribed by OMB Circular A-133, "Audits of State, Local Governments and Non-Profit organizations", Basic Financial Statements, Government Accounting Standards Board (GASB) Model 34, Management Discussion and Analysis for State and Local Governments, U.S. Department of Housing and Urban Development's Public and Indian Housing Compliance Supplement, USDA Rural Development Handbook for Section 515 properties, and the Kansas Housing Resources Corporation Housing Tax Credit Compliance Monitoring Procedures. The fmancial statements are to be prepared by the auditor in accordance with Generally Accepted Accounting Principals (GAAP). The completed audit and related reports must be completed and submitted to each of the monitoring agencies by the reporting deadline for each agency. This includes electronic submission of the Financial Data Schedule (FDS) via the internet as required by the Real Estate Assessment Center (REAC). All of the records needed for the audit are located at the administrative offices, 330 West Court Street, Clay Center, Kansas. The auditors will be given access to these records during normal working hours. There will be other paperwork provided to the auditors by our fee accountant, C. Naber and Associates. The audit should begin no later than May 15 and be completed no later than August 31 (must meet the deadlines of HUD, USDA Rural Development, and Kansas Housing Resources Corporation). Twelve (12) bound copies and one (1) unbound copy of the audit report will be required. In addition the Auditor shall be responsible for submission to HUD, USDA Rural Development, and Kansas Housing Resources Corporation. 3. Submittal Format A copy of the audit firm's latest quality or peer review as required by Government Auditing Standards. An affirmative statement that the audit firm's employees have met the mandatory Government Auditing Standards continuing education requirements. An affirmative statement that the audit firm has not been suspended or barred by any regulatory agency. An affirmative statement that the audit firm is licensed to practice in the State of Kansas or will obtain a temporary permit to practice in the State of Kansas. A profile of the audit firm including How long the firm has been in business The size of the firm The professional services provided 2

3 Projected ex Rece nt audit experience (last 3 years) List of references including HUD Public Housing, USDA Rural Development Section 515, and LIHTC audits Brie f backgrounds of supervisory staff assigned to the audit Ade scription of the means that the auditor will utilize to conduct the audit including timelines Ana ffirmative statement that the audit firm can complete the audit within the time constraints stated above penses for 2008,2009 and Staff Partner Director (Senior Manager) Manager Senior Associate Associate Clerical Travel TOTAL Cost/Hour Estimated Number of Hours TOTAL Propose d audit fees the fiscal years ending: December 31, 2008 _ December 31, 2009 _ December 31, 2010 _ 4. Evaluation Points SELECTION CRITE RIA POINTS AVAILABLE Firm's Qualifications Servic e Team's Qualifications Audit Examination/Methodology Knowledge of HUD PH, USDA RD Sec 515, 0-25 and Tax Credit/Partnership Operations Cost of Service 0-15 TOTAL RATING !

4 5. Submission of Proposals All proposals must be submitted via fax, , or certified mail to the Clay Center Housing Authority no later than 4:00 p.m. Central Time on February 11,2012. The address is 330 West Court Street, Clay Center, KS The address is The fax number is (785) The contact person is John D. Kaul, Executive Director. Proposals received after 4:00 p.m. Central Time, February 10, 2012 will not be considered for any reason. The respondent is solely responsible for assuring that the proposal arrives safely and on time. Similarly, the respondent assumes the responsibility that its proposal meets all the requirements as set forth in this RFP. This Request for Proposal does not commit the CCHA to award a contract, or to pay any costs incurred in the preparation of proposals or to procure services. The CCHA reserves the right to reject any and all proposals, to waive any informalities or irregularities and to re-advertise or negotiate with any or all contractors when it is in the best interest of the CCHA. 6. Communication In order to maintain a fair and impartial competitive process, CCHA shall avoid private communication concerning this procurement with prospective proposers during the entire procurement process. Please respect this policy and do not attempt to query CCHA personnel regarding this RFP. Any questions on this RFP should be ed to prior to noon, Central Time, on February 10,2012. Receipt of request will be acknowledged. ed questions will be answered on February 13,2012 and available by the close of business that day at procurement page. Oral instructions or information concerning the specifications of the project given out by others (CCHA Commissioners, employees, or agents) to prospective proposers shall not bindccha. 7. Scoring/Award Evaluation Criteria The Executive Director shall evaluate and score each submittal using the following method. I. Firm's Qualifications * Negative Peer Review * Suspension or debarment * Not Licensed in State of Kansas

5 * Every year under 5 years in business point * No audits of housing authorities in past 3 years * No audits of USDA RD Section 515 in past 3 years * No audits oflihtc partnerships in past 3 years Service Team's Qualifications * Supervisory Staff (every year under 5 years of experience) -5 * Partner's Experience (every year under 10 years of experience) Audit ExaminationlMethodology * Planning Phase must include reading of recent financial statements, understanding the accounting and information systems, major contracts and commitments of the Authority including labor, lease, debt and other agreements affecting the financial statements. This phase must also include an analytical review including comparison of budgets to actual financial statements results for the current and prior periods to look for trends and unusual or unexpected relationships among financial information. Finally, the planning phase must include interviews with key staff and the fee accountant. Failure to address one of these items -5 * System Evaluation Phase must utilize Government Auditing Standards and comply with HUD PH, USDA RD Section 515, and Kansas Housing Resources Corporation requirements to evaluate the internal accounting control system. Failure to address any ofthese items -5 *The Testing Phase must test transactions in sufficient detail to form conclusions regarding compliance with control systems' procedures. This will include selecting transactions statistically and non-statistically based upon professional judgment. The testing must include confirmations where necessary, examination of underlying accounting documents, contracts and agreements based upon the evaluation of the procedures performed during the preliminary phase of the engagement. There must also be an analytical review of the year-end financial information to determine if the trends and relationships studied during the preliminary phase had any unexpected changes that may require modification of the audit program. This will include statistical and non-statistical audit sampling. The firm will also develop questions and comments regarding compliance with agreements, policies and the appropriate personnel to determine that they have a clear understanding. There must be an exit conference with the appropriate Authority administrative staff at the conclusion of the field work. The firm must discuss audit findings and recommendations for the management letter concerning internal control weaknesses, suggestions of improvement, systems suggestions 5

6 and efficiency suggestions with appropriate Authority administrative staff. Failure to address any ofthese items -5 The Independent Auditors' Report must contribute constructive suggestions regarding the Authority's operations to the Board of Commissioners in the following manner: During the course of the engagement, the firm will identify various matters affecting internal controls, operating systems and operating and accounting procedures which cause duplication, inefficiency or other impediments to an effective and efficient operation and make recommendations for eliminating observed weaknesses or inefficiencies. The firm will review and explain all observations and recommendations with management to make sure the observations are accurate and that management understands the recommendations and are able to implement the changes suggested. The firm will meet with management during the exit conference to orally present its findings, conclusions and recommendations. The audit report must include a statement that the audit was made in accordance with the provisions of the Office of Management and Budgets Government Auditing Standards. The firm must prepare the data to be submitted to U.S. Housing and Urban Development REAC filing. The firm must report any instances of fraud, waste or illegal acts, or indications of such, including all questioned costs in a separate written report to the federal agency that provided the federal assistance funds. The firm will notify immediately the management and board of all matters that they conclude will preclude them from issuing an unqualified opinion on the general purpose fmancial statements of the Authority. The firm will assist and advise the Authority concerning mandatory or recommended modifications to the Authority's management and accounting systems. Failure to address any of these items Knowledge ofhud PH, USDA RD Sec 515, and Tax Credit/Partnership Operations * No audits of any of these programs during the past 3 years (each) Cost of Service * For each $1,000 over the median cost proposal -1 point * Failure to include a proposed total price Negotiations and Award Negotiations may be conducted with respondents determined to have a reasonable chance of being selected for award, based on evaluation of qualifications, and other factors 6

7 considered to be most advantageous to CCHA. Such respondents shall be accorded fair and equal treatment with respect to any opportunity for negotiations and revisions of submittals to assure full understanding of and conformance to the services requested by CCHA. No respondent shall be assisted in bringing its submittal up to the level of another in order to be considered for award. CCHA reserves the right to request additional information concerning an/all submittals submitted. A common deadline shall be established for the receipt of submittal revisions based on negotiations. After the evaluation ofthe submittal revisions, if any, the contract(s) will be awarded to the responsible respondent(s) whose qualifications and other factors considered are the most advantageous to CCHA. 9. Modification of Solicitation CCHA reserves the right to modify this RFP as deemed necessary by CCHA. CCHA also reserves the right to increase or delete any scheduled items, to award portions of this RFP, to waive informalities and technicalities, and to make awards consistent with CCHA's policies and the laws governing the HUD, USDA RD, and KHRC programs. 10. Minority and Woman Owned Business CCHA strongly encourages the participation of Minority and Women-owned businesses in this and all CCHA projects, programs, and services. small 11. Collusion A Proposer submitting a response hereby certifies that: no officer, agent, or employee of CCHA has a pecuniary interest in this response; that the response is made in good faith without fraud, collusion, or connection of any kind with any other proposer; and the proposer is competing solely in its own behalf without connection with, or obligation to, any undisclosed person or firm. 12. Disputes In case of any doubt or differences of opinions as to the items or service to be furnished hereunder, or the interpretation of the provisions of the RFP, the decision of CCHA shall be final and binding upon all parties. 13. Clarification of Responses CCHA reserves the right to obtain clarification of any point in a firm's submittal or to obtain additional information necessary to properly evaluate a particular submittal. 7 I~------

8 Failure of a proposer to respond to such a request for additional information or clarification could result in rejection ofthat firm's response. 8 L_~ _