REQUEST FOR PROPOSAL AUDITING SERVICES

Transcription

1 REQUEST FOR PROPOSAL AUDITING SERVICES CITY OF MONROE, WISCONSIN December 5, 2014 Bridget J Schuchart, Comptroller

2 The City of Monroe, Wisconsin is requesting proposals from qualified firms of certified public accountants to perform the annual financial and compliance audits for the three years ending December 31, 2014, 2015, Options to renew the resulting contract for up to three additional years without a formal proposal process will be considered. Section 1 Information Furnished to the Proposer General The City of Monroe, (City), with a population of approximately 10, 750, is located in south central Wisconsin in Green County. Its annual budget is about $20,000,000 (including utilities). The City employs approximately 100 full-time and numerous part-time/seasonal persons and has an annual payroll of approximately $5,000,000. The City is governed by a mayor and a council consisting of nine elected members with the help of several additional appointed officials and advisory boards and committees. The City Comptroller, City Administrator, and the Finance Committee, with formal approval of the council when appropriate, generally handle financial and budgetary matters. Refue, Pas, Jacobson, Knox & Koster, LLP (RPJKK), performed the most recent audit of the City. Information and documents pertaining to prior year s auditing, reporting, budgeting and fee structure, as indicated later in the RFP, will be available for inspection at the Office of the City Comptroller, Monroe City Hall, th Avenue, Monroe, WI Accounting The City attempts to, and its goal is to maintain records and accounts in accordance with generally accepted accounting procedures for governmental units of its type and size, and in a manner which will merit an unqualified opinion from its independent auditors. Funds and account groups, as well as anticipated revenues and expenditures, will be similar to those in All governmental funds and agency funds are accounted for on a basis that is deemed appropriate for that particular fund. Budgets are prepared on a comparable basis. Accounting and reporting functions are centralized in the Office of the Comptroller and maintained on a central system located at City Hall. Some subsidiary ledgers and records are kept in various departments and/or offices. Electronic Data Processing The City uses Caselle Accounting software which is supported by Civic Systems, a Baker Tilly Virchow Krause company. The software is licensed to the City and used for payroll, accounts payable and receivable, cash receipting, general ledger, and other account functions.

3 Nature and Scope of Services Required The basic service required is an audit of the year ending Trial Balance and the preparation of general purpose financial statements and supplemental information for all City Funds and account groups. Such funds and departments include, but are not limited to the following: Senior Center Park and Recreation Police Department Fire Department Street Department Wastewater Treatment Plant General Government Tax increment Financing Districts Water Utility Storm Water Utility Revolving Loan Fund Where necessary to comply with reporting requirements listed below, compliance audits are to be done also. Audits are to be performed in accordance with all applicable professional standards and Federal and State statutory and regulatory requirements. Such standards are understood to include but are not limited to the following: 1. Generally Accepted Auditing Standards set forth by the American Institute of Certified Public Accountants. 2. Generally Accepted Governmental Audit Standards for financial and compliance elements of an audit as these are established by the U.S. General Accounting Office s Government Auditing Standards (1988), 3. Provisions of the Federal Single Audit Act of 1984 and the U.S. Office of Management and Budget (OMB) Circular A128, Audits of State and Local Governments. 4. Wisconsin Single Audit Guidelines as published by the Wisconsin Department of Administration. Each year at the end of the field work, there will be an exit conference between the auditors, City Comptroller, City Administrator, and whatever City officials are deemed appropriate or necessary. At this conference the auditors shall provide a general review of the audit and discuss comments which will be included in the management letter. Documentation for the Schedule of Findings and Questions Cost (Single Audit) must be provided to the City in ample time for the City to verify the accuracy of the findings and prepare

4 appropriate responses to be included with the audit reports that must be submitted to the various Federal and State agencies. Report Requirements The following auditor s reports are expected at the completion of the audit: 1. A complete set of the General Purpose Financial Statements for the City of Monroe, including all appropriate combining statements, notes, and schedules. 2. An Independent Auditor s Report on the general purpose financial statements. 3. A letter highlighting best practices along with recommendations on improving existing accounting and internal control procedures. 4. A report on Federal and State Financial Assistance (Single Audit) in proper form for submission to necessary oversight agencies. As stated before, the City expects the audit firm selected to provide an unqualified opinion with respect to the general purpose financial statements. If during the course of the audit, the auditing firm concludes that an unqualified opinion cannot be issued, the firm must promptly notify the City Comptroller, or other appropriate parties, in writing, stating all matters which would preclude the issuance of an unqualified opinion so that corrective action can be taken if possible. A draft copy of the audit report shall be submitted to the City Comptroller prior to the issuance of the final report. The City will review the draft report and respond with questions and/or comments within 10 days of receipt of the draft report. The number of copies and target dates of the various reports discussed above will be as follows, unless State and Federal due dates change making it necessary to receive the documents earlier to be considered timely: REPORT # OF COPIES TARGET DATE Audited General Purpose 15 6/15 Financial Statements, Schedules, and Notes (including one electronic copy) Independent Auditors Opinion 15 6/15 Management Discussion & 15 6/15 Analysis (MD&A) Report on Federal/State Financial Assistance (Single Audit) 15 7/15 Unless otherwise noted all due dates occur in the year following the audit period.

5 After the audit reports have been completed, representatives of the audit firm will meet with the City Comptroller, City Administrator, and/or the Finance Committee to discuss the financial statements, audit reports, and supporting documentations. Audit firm representatives may also be asked to meet with the full City Council to review the audit. Audit Performance Preliminary audit work may be scheduled prior the end of the year through the City Comptroller. Every effort should be made to schedule dates that are mutually convenient to both the audit firm and city personnel. Necessary year-end work should be outlined in detail and schedule at the earliest possible date. The City Comptroller will act as liaison to arrange for the availability of appropriate city personnel. The City anticipates having accounting records for final audit field work by April 15 th. Billings Progress billings may be issued as the audit work is in process. Final payment will be made after the work is completed and the report(s) have been presented and accepted by the governing body. At final billing, a breakdown of the total fee by fund/major department will be required. Auxiliary Services The City may wish to seek assistance regarding operational, financial, or regulatory matters. The selected audit firm should have adequate expertise to provide such assistance in a timely manner. Assistance to be Provided by the Selected Firm Except in those cases where some other City official may be named elsewhere in this RFP, or specifically designated during the course of the audit, the City Comptroller will be the City s liaison representative for routine contacts with the audit firm. As such, she/he will be able to handle most requests for scheduling, copies for records, assistance, etc. The City will render all possible assistance to the selected firm and will respond promptly to requests for information, provide all necessary books and records and prepare supporting schedules as needed. The City is aware that specific working papers and schedules will depend on the firm selected and may vary from year to year. The City will provide the auditor with the physical facilities needed to perform the audit, access to telephone lines, copying facilities and fax machine.

6 Other Information If it becomes necessary to revise any part of this RFP or otherwise request or provide additional information an addendum will be issued by the City and furnished to all firms that have received copies of the original RFP. Seven (7) copies of the proposal shall be submitted by 12:00 p.m. (noon) on December 30, 2014 to: Bridget Schuchart, Comptroller Monroe City Hall th Avenue Monroe, WI The dollar cost portion of the proposal shall be submitted in a separate sealed envelope clearly marked Audit Proposal. Said cost proposal shall contain the maximum proposed fee for each of the audit periods (calendar years 2014, 2015, 2016). Materials available for inspection prior to the proposal due date at the Office of the City Comptroller will include but not limited to the following: Audit reports for the prior three years 2015 City of Monroe Budget Most recent completed audit report/md&a Prior years audit fees All proposals become the property of the City of Monroe. The City is not liable for any cost incurred by the prospective auditors in replying to this RFP. The City will select a firm based on a review of the proposals by the City Comptroller, City Administrator, and the Finance Committee Chair. The basis for review and evaluation of the proposals is a part of the RFP. While the total score will be a significant factor the City reserves the right to reject any and all proposals submitted and to request additional information from any and all proposers or to accept the proposal of any qualified proposers. The City anticipates that a proposal will be accepted or that all proposals will be rejected by 4:30 p.m. on Wednesday, January 21, Following written notification of the firm selected the successful proposer will be required to submit an executable contract document containing the significant elements of this RFP and the proposer s response to it. The contract document, which should be for the three years

7 specified and include an option for renewal, will be expected within ten (10) working days of notification. Section 2 Information Requested from Proposer In order to simplify the evaluation process and obtain the maximum degree of comparison, the City is requiring proposals in the format and manner prescribed in this section. Title Page Show the RFP project title, the name of the proposer firm, address, telephone number, name of the contact person, and date. Letter of Transmittal (limit of two pages) Briefly state the proposers understanding of the work to be done. Comment on the firm s ability and commitment to perform that work within the time frame specified and why they are best suited to perform this engagement. Also include a statement on the irrevocability of the proposal. State the name(s) of the person(s) who are authorized to make representations for the proposer along with their title and telephone number. Table of Contents Clearly identify the material included in the proposal by section and page number Profile of the Proposer State the type of firm (local, regional, national, etc), the location of the office from which the audit team assigned to this job will work, and the number and classification of staff located at that office. Describe the range of activities performed by the personnel at the office such as accounting, auditing, tax service, electronic data processing, etc. Describe any regulatory action taken by an oversight body against the firm. Qualifications of the Proposer Affirm that the proposer is: 1. Properly licensed to practice as a Certified Public Accountant in the State of Wisconsin

8 2. Is independent as to the City of Monroe as defined in the AICPA Code of Professional Ethics and the GAO s Standard for Audit of Governmental Organizations, Programs, Activities and Functions. 3. Has participated and is participating in a professionally sponsored quality review program. Enclose a copy of the most recent peer review opinion. Describe the local and/or regional office s current and previous audit experience with local governments similar to the City of the Monroe. List the names, addresses, and telephone numbers of an official of at least three of the governments who are familiar with the work of your firm performed during a recent audit and who may be contacted for references. At least one of these should be a governmental unit for who you no longer perform the audit. Reference and/or recommendation letters are encouraged and may be included as an appendix. Indentify supervisory personnel who are expected to be a part of the audit team for this job and their position with the form. Provide brief resumes showing relevant qualifications, experience, education, training, etc. Proposer s Approach to the Audit Elaborate on the firms understanding of the services to be performed and the work products to be provided as described in the RFP. Submit a brief work plan which will follow to complete the engagement within the time frame outlined in the RFP Compensation Submit a schedule showing the various classes of personnel to be assigned to this audit and the gross hourly rate to be billed for each class. Do not include the total fee in this area. Proposal prices are to be submitted separately as indicated elsewhere in this RFP. Additional Information Additional information not requested but which you consider essential to the proposal may be included here. If there is no additional information, please indicate.

9 Section 3 Scoring System Each proposal will be given a score from 1 to 100 based on the following system. The City Comptroller, City Administrator, and the Finance Committee Chair will use this scoring system to determine which proposer will be selected. Mandatory Criteria 1. Is the firm properly licensed in the State of Wisconsin? 2. Is the firm independent? 3. Does the firm subject itself to peer review? 4. Has the firm included a recent favorable peer review opinion? Technical Criteria Qualifications of Proposer 1. All affirmative responses to Mandatory Criteria questions 10 points 2. Qualifications of the Firm 20 points Audit experience with similar entities Results of reference checks Capacity to provide auxiliary services 3. Qualifications of Audit Team 20 points Approach to the Audit 1. Firms understanding of the scope of the engagement 5 points Services to be performed Work products to be produced 2. Supervision of audit team 5 points Level of and amount of supervisory time 3. Reasonableness of work plan 15 points Cost TOTAL 25 points 100 points