NOTICE REQUEST FOR PROPOSALS INDEPENDENT AUDIT SERVICES

Transcription

1 NOTICE REQUEST FOR PROPOSALS INDEPENDENT AUDIT SERVICES I. GENERAL INFORMATION The City of Salida, Colorado ( Salida or the City ) is requesting proposals from qualified certified public accountants to audit its financial statements for the fiscal year ending December 31, 2015, with the option, on mutual agreement, of auditing the City s financial statements for each of the four subsequent fiscal years. To be considered, an electronic copy and three hard copies of a proposal must be received at City Hall by 4:00 p.m. on October 30, There is no expressed or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. During the evaluation process the City reserves the right, where it may serve the City's best interest, to request additional information or clarifications from the firms, or to allow corrections of errors or omissions. The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. Proposals submitted will be evaluated by members of the governing body, which may include Audit Committee, Mayor, other members of City Council, City Treasurer, City Clerk in addition to the City Administrator and Director of Finance and Administrative Services. II. SCHEDULE OF ACTIVITIES The following activities and dates are a tentative outline of the process to be used to solicit independent accountant responses and to award a professional services contract. September 18, Issue Request for Proposal October 14, Deadline for Submitting Questions October 21, Q&A Posted October 30, 2015, 4:00 PM... Deadline to Submit Proposals & Opening of Proposals November 2-20, Review Proposals, Check References, etc. November 23, Finalize Recommendation December 1, City Council Awards Contract By Mid December... Schedule Audit Fieldwork December 31, Year End Early March Fieldwork April 19, Present Annual Report to City Council

2 III. NATURE OF SERVICES REQUIRED A. SCOPE OF WORK TO BE PERFORMED: The City desires a certified public accounting firm perform an independent audit and express an opinion on the fair presentation of its financial statements in conformity with generally accepted accounting principles. The audit shall be performed in accordance with generally accepted auditing standards as promulgated by the American Institute of Certified Public Accountants and applicable state and federal regulations. B. REPORTING REQUIREMENTS: Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue: 1. A report of examination of the financial statements stating the scope of the examination and that the audit was performed in accordance with generally accepted auditing standards and opinion as to whether the statements conform to generally accepted accounting principles. 2. A letter to management containing comments on compliance, recommendations for improvements, and any other comments deemed pertinent by the auditors and recommendations affecting the financial statements, internal control, accounting, accounting systems, legality of actions, other instances of noncompliance with laws and regulations, and any other material matters. 3. Applicable reports on compliance and internal control as required by OMB Circular A-133 Compliance Supplement for any year in which a Single Audit is required. C. COMMUNICATIONS AND PRESENTATIONS: Auditors shall communicate their findings and the above reports to the Audit Committee, City Administrator and Director of Finance and Administrative Services for review and discussion and then to City Council for acceptance at a regularly scheduled council meeting. IV. DESCRIPTION OF THE GOVERNMENT A. BACKGROUND: Incorporated in 1880, Salida is organized as a statutory city under the constitution of the State of Colorado. The City operates under a council-mayor form of government with six council members, a mayor, treasurer and clerk serving in elected positions. Salida is located in south central Colorado approximately 2-1/2 hours southwest of Denver in Chaffee County. Government accounts are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. Salida has two general government and two business-type (or enterprise ) funds. The City prepares budgets and financial reports for five funds: 1. Government Funds a. General Fund b. Conservation Trust Fund 2. Water and Wastewater Enterprise Fund a. Water Operations b. Wastewater Operations 3. SteamPlant Event Center Enterprise Fund 2 of 6

3 The broad services provided by City of Salida employees across the various funds include the following: Public safety o 24/7 police protection, vehicle, bicycle and foot patrol, crime prevention and law enforcement; vehicle identification number inspections, school safety, special event support, DUI awareness programs, drug task force, regional preparedness, E911 board representation o 24/7 professional fire response (structural and wildland), emergency medical services, hazardous material response, technical rescue (ice, swift water, confined space, high and low angles), installation of smoke detectors, inspections and plans reviews, code enforcement, fire prevention and CPR classes, fireworks displays, staffing for fire protection district, regional preparedness and various other education and civic activities Public works operation, maintenance and improvement of streets, alleys, walkways, parking lots, parks, play features, public structures, underground distribution or collection lines and appurtenances, trees, and other public infrastructure Water and Wastewater plant operations Treatment and distribution of municipal water; collection, treatment and safe discharge of wastewater (including wastewater services for the Town on Poncha Springs); lab testing, acceptance and treatment of outside septage Community development land use and zoning, administrative review of development plans, subdivision exemptions, building permits and sign permits, long range and current planning, historic preservation, grant writing and reporting Arts and recreation swimming pool, lessons, fitness and recreation programs, activities and special events for community members of all ages, liaison with outside organizations (chamber of commerce, small business association, etc.); professional event center Administrative services liquor, marijuana and arborists licensing, vendor and special event permitting, billing and collection of water and wastewater services, protection of water rights, birth and death certificates, municipal court, grant writing and reporting, intergovernmental facility management, payroll, accounts payable, accounts receivable, budgeting, financial reporting, human resources, legal, cash management / treasury, risk management, records management, public information, meeting coordination, and other general government and administrative services The City serves as a regional shopping hub for surrounding unincorporated areas and small towns. Combined with the effect of tourism and second home owners, Salida s municipal government serves a population estimated at more than twice the size of its residential base. The City repealed its property tax in 2008 and relies primarily on sales tax to provide government services. B. FEDERAL AND STATE GRANTS: During the 2015 fiscal year to be audited, Salida has secured the following financial assistance, which will result in a single audit requirement: 1. USDA / Rural Development (federal funds) - $700, Colorado Department of Transportation Enhancement Grant (federal funds) - $500, Homeland Security (federal funds) - $40, Department of Local Affairs / Energy Impact Assistant Fund -$800, Greater Outdoors Colorado - $490, State Historic Society - $60, Department of Wildlife / Fishing is Fun (federal funds) - $25, Department of Local Affairs / Energy Impact Assistant Fund -$20,000 3 of 6

4 C. PENSION PLANS: The City of Salida participates in the following pension plans: 1. New Hire Fire and Police the City contributes to the statewide, multi-employer defined benefit pension plan administered by the Colorado Fire and Police Pension Association (FPPA) 2. Old Hire Fire and Police the City, on behalf of its full-time, paid firefighters and police officers hired prior to April 7, 1978, contributes to the City of Salida old-hire defined benefit plans 3. ICMA 401(a) Defined Contribution Money Purchase Plan 4. ICMA 457 Deferred Compensation Plan D. FINANCE STAFF: The finance department is overseen by an elected City Treasurer who delegates operations to the Director of Finance and Administrative Services. Staffing includes a Senior Accountant, Accountant I and Administrative Coordinator. In addition, certain user based fees are billed outside of the finance department (fire inspections, wastewater lab testing, permits) and certain cash transactions occur outside of the finance department (eg. pool admissions, recreation and event services). E. COMPUTER SYSTEMS: In 2013, Salida converted to the Tyler Technologies software (combination of INCODE Version 9 and VX). Modules include financials (general ledger, budgeting, accounts payable, bank reconciliations, cashiering, fixed assets), utility billing, business licensing, accounts receivable, court and law enforcement. F. MEETINGS AND PRESENTATIONS: The independent accountants will be expected to attend in person, at a minimum, the following meetings. 1. Pre-Field Work Meeting: The purpose of this meeting will be to discuss the organizational structure and details of the engagement, review the list of items to be provided by the client, discuss results of prior audits and set expectations for the pending audit. 2. In process meetings with Audit Committee and/or staff as required. 3. Exit Conference: The purpose of this meeting will be to summarize the results of the fieldwork and to review findings. 4. Presentation of Annual Report: Findings of the audit will be presented in a public meeting. Regular city council meetings are held on the first and third Tuesday of each month at 6:00 pm. V. MINIMUM QUALIFICATIONS REQUIRED In order to be considered, the firm presenting the proposal must be a firm of certified public accountants eligible by law to practice public accounting in the State of Colorado and have experience in providing audit services to Colorado municipalities. VI. AVAILABILITY OF FINANCIAL INFORMATION The City is committed to making financial information available to residents, stakeholders, and other interested parties. The Financial Documents page under the Document Library on the City s website contains past annual reports, budgets, interim financial reports, legal publications and certain 4 of 6

5 key policies and procedures. The following reports and documents are available and may be useful for responding firms in preparing a response to this RFP. Financial Documents (not a complete list): 1. Audited Annual Reports 2. Adopted Budgets 3. Interim Financial Reports 4. Key Policies and Procedures VII. PROPOSAL REQUIREMENTS A. TECHNICAL PROPOSAL: At a minimum, proposals should include the following: 1. Name, address, phone, and website address of firm and primary contact for this potential engagement. 2. Description of approach to this audit and any special techniques or suggestions for an efficient audit. 3. Proposed audit schedule. 4. Procedures used to transmit audit adjustments and the reasons for them along with management recommendations to the responsible personnel with the City. 5. Descriptions of the experience and qualifications of the firm and individuals who would be assigned to this engagement. 6. At least three client references for similar sized municipal audit engagements (Entity, contact name, phone and address). 7. Additional information the firm believes would assist the City in its evaluation process. B. COST PROPOSAL: Provide a budget with sufficient detail to understand costs associated with the engagement and describe any alternative approaches that would change the total costs. Any additional services that may be required beyond the basic scope of the audit engagement should be separately identified with costs quantified (eg. single audit, review of internal controls, report preparation services, etc.). The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses. Rates and anticipated hours for each partner, manager, supervisor, staff member, etc. expected to perform the necessary services should be included. Also include a total all-inclusive maximum price for each engagement for the years 2015, 2016, 2017, 2018 and C. ADDITIONAL INFORMATION: The City may request additional information to further clarify, explain or validate the contents of any proposal. All supplemental information must be submitted to the City in writing within three working days of the City s request. IV. EVALUATION PROCESS Prior to awarding the engagement, a committee composed of City staff and elected officials will evaluate the proposals and consider the qualifications of accounting firms by reviewing the substance, appropriateness and quality of the proposal and checking references from other clients. 5 of 6

6 The total cost of the proposal is a significant consideration but not the only factor in selecting an independent accounting firm. V. CITY CONTACT Questions about this proposal should be directed to Jan Schmidt, Finance and Administrative Services Director, who can be reached at or jan.schmidt@cityofsalida.com. VI. SUBMISSION OF PROPOSALS Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. To be considered, an electronic copy and three hard copies of a proposal must be received at City Hall by 4:00 p.m. on October 30, The City reserves the right to reject any or all proposals submitted. PLEASE MAIL HARD COPIES OF PROPOSALS TO: CITY OF SALIDA 448 E. 1 st Street, Suite 112 Salida, CO AN ELECTRONIC COPY TO: jan.schmidt@cityofsalida.com PROPOSALS MUST BE RECEIVED BY THE CITY ON OCTOBER 30, 2015 BY 4:00 PM IN ORDER TO BE CONSIDERED. 6 of 6