Anaheim Resort Transportation Independent Auditing Services REQUEST FOR PROPOSALS

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1 Anaheim Resort Transportation REQUEST FOR PROPOSALS Request for Proposals: CONTRACTING OFFICER: DIANA KOTLER Proposals delivered in person or by a means other than U.S. Postal Service shall be sealed and submitted to the following: Anaheim Transportation Network 1280 South Anaheim Blvd. Anaheim, CA Attention: Diana Kotler Or proposals delivered using the U.S. Postal Services shall be addressed as follows: Anaheim Transportation Network 1280 South Anaheim Blvd. Anaheim, CA Attention: Diana Kotler Telephone: (714) Fax No.: (714) NOTE: PROPOSERS ARE RESPONSIBLE TO READ ALL INFORMATION THAT IS STATED IN THIS REQUEST FOR PROPOSAL AND PROVIDE A RESPONSE AS REQUIRED Page 1 of 38

2 TABLE OF CONTENTS PAGE # 1. INSTRUCTIONS TO PROPOSERS 3 2. PROPOSAL COVER SHEET 4 3. DEFINITIONS 5 4. BACKGROUND 5 5. SCOPE OF WORK 6 6. ATN SUPPORT AND ASSISTANCE 7 7. SOLICITATION SCHEDULE 7 8. TIMETABLE OF AUDIT 8 9. WHAT TO INCLUDE IN YOUR RFP RESPONSE EVALUATION CRITERIA AND SELECTION PROCESS SCOPE OF EXAMINATION ATN SUPPORT AND ASSISTANCE CONSULTANT COMMUNICATIONS AND REQUESTS ATN RESPONSE TO COMMUNICATIONS AND REQUESTS ADDENDA TO RFP CONDITIONS, EXCEPTIONS, RESERVATIONS OR UNDERSTANDINGS DUE DATE INTERVIEWS INSTRUCTIONS TO CONSULTANTS CONSULTANT QUALIFICATIONS STATEMENTS WORK PLAN MANAGEMENT PLAN PRICE PROPOSAL REQUIREMENTS PROJECT SCHEDULE RESPONSE TO PROPOSALS REQUIRED FORMS 18 EXHIBIT A SCOPE OF SUPPORT AND SERVICES 19 EXHIBIT B COMPENSATION 21 EXHIBIT C INSURANCE REQUIREMENTS 22 ATTACHMENT A REFERENCES 24 ATTACHMENT B LITIGATION INVOLVEMENT 25 ATTACHMENT C ASSURANCE AND CERTIFICATION 26 ATTACHMENT D SAMPLE AGREEMENT 27 Page 2 of 38

3 1. INSTRUCTIONS TO PROPOSERS Contact: Diana Kotler Telephone: (714) Visit our website: 1. Prices/Notations All prices/notations must be typewritten or written in ink. No erasures permitted. Mistakes shall be crossed out, corrections made adjacent and initialed by person signing document. 2. Pricing/Terms/Tax All pricing shall be quoted both excluding applicable tax. The ATN pays California Sales Tax and is exempt from Federal excise tax. In the event of an extension error, the unit price shall prevail. 3. Period of Firm Pricing Unless stated otherwise elsewhere in this document, prices shall be firm for 120 days after the RFP closing date. If the ATN elects to do negotiations that require additional time, the ATN may request proposers prices be firm for an additional period of time to complete negotiations and award the contract. 4. Recycled Material Wherever possible, the ATN is looking for items made from, or containing in part, recycled material. 5. Method of Award The ATN reserves the right to reject any or all offers, waive any discrepancy or technicality and to split the award in any manner determined by the ATN to be the most advantageous to ATN. 6. Other Terms and Conditions The terms and conditions as indicated in this document and/or attached are hereby included with full force and like effect as if set forth herein. 7. Return of Proposal/Closing Date/Return to The proposal response shall be delivered to Anaheim Transportation Network, 1280 South Anaheim Blvd., Anaheim, CA by 2:00 p.m. on the closing date listed above. The closing date and time and the RFP number referenced above shall appear on the outside of the sealed envelope. A duly executed copy of the signature page of this proposal document must accompany your response. The ATN will not be responsible for and will not except late proposals due to delayed mail delivery or courier services. 8. Auditing The Contractor agrees that ATN or designated representatives shall have the right to review and copy any records and supporting documentation pertaining to the performance of this contract. Contactor agrees to maintain such records for possible audit for a minimum of five (5) years after final payment, or until closure of pending matter unless a longer period of records retention is stipulated. Contractor agrees to allow auditor(s) access to such records during normal business hours and allow interviews of any employees or others who might reasonable have information related to such records. Further, the Contractor agrees to include a similar right of ATN to audit records and interview staff in any subcontract related to the performance of this contract. Page 3 of 38

4 2. PROPOSAL COVER PAGE PROPOSER TO COMPLETE ALL APPLICABLE AREAS The Anaheim Transportation Network (ATN) is soliciting proposal from qualified firms to provide as detailed in the attached Request for Proposal (RFP). There are NO Proposer meetings to be held Closing Date: May 24, 2013 no later than 2:00 p.m. NO FAXED PROPOSALS WILL BE ACCEPTED After close of the RFP, the award may be announced within 3 5 working days. If an addendum is issued for this RFP, it will be the Proposer s responsibility to retrieve all applicable addendum(s) from the ATN s website at Execution hereof is certification that the undersigned has read and understands the terms and conditions hereof, and that the undersigned s principal is fully bound and committed. Company Name: Street Address: City: State: Zip: Phone #: Fax #: Vendor Web Site Address: Name: Title: Signature: Date: Page 4 of 38

5 3. DEFINITIONS Wherever these words occur in this RFP, they shall have the following meaning: A. RFP shall mean Request for Proposal. B. Addendum shall mean an amendment or modification to the RFP (Request for Proposals). C. Proposal shall mean the proposal submitted by a Proposer on the Proposer Form consistent with the Instructions to Proposers, to complete the Work for a specified sum of money and within a specified period of time. D. Proposer shall mean an individual, firm, partnership or corporation that submits a qualified Proposal for Work, either directly or through a duly authorized representative. E. Contractor shall mean any employee, agent or representative of the contract company used in conjunction with the performance of the contract. For the purposes of this RFP, Contractor and Proposers are used interchangeably. F. MQs shall mean minimum qualifications. G. ATN shall mean the Anaheim Transportation Network operating Anaheim Resort Transportation (ART) services. For purposes of this RFP, ART and ATN are used interchangeably. 4. BACKGROUND The Anaheim Transportation Network (ATN), a local non-profit 501C(4) transportation management association and a service provider of the Anaheim Resort Transportation (ART) system, is seeking proposals from certified public accounting firms to retain services to perform annual examination of their General Purpose Financial Statements for ATN Fiscal Years 2013 through ATN provides transportation services to improve mobility and air quality throughout the cities of Anaheim, Garden Grove, Santa Ana, Buena Park and Orange, California by operating a fleet of transit buses along fixed routes to provide access to lodging establishments, and tourist-related enterprises that are the main destinations connected by the system. ATN adheres to the accounting principles, standards, and procedures prescribed by the Government Accounting Standards Board and applied by the State Controller s Office. Through this RFP the ATN seeks to retain professional services to perform an independent financial review and audit of the ATN s financial statements and Single A-133 audit for ATN for the Fiscal Year ending June 30 th. Page 5 of 38

6 5. SCOPE OF WORK A. General Purpose Financial Statements 1. The intent of ATN is for the auditor to render an opinion on its General Purpose Financial Statements and accept responsibility for the statements in relation to the General Purpose Financial Statements. 2. The funds and account groups included in the examination are all funds governed by the ATN s Board of Directors. 3. The examination of the ATN s General Purpose Financial Statements shall be conducted in accordance to Generally Accepted Auditing Standards. 4. Traditional end-of-year verifications for the fiscal year ending June 30 th. 5. Conduct Single A-133 Audit to provide assurance to the US federal government as to the management and use of federal funds by the ATN. 6. Prepare ATN s Tax Returns Form Identify Errors and Irregularities: If conditions are discovered which lead to the belief that material errors, defalcations, or other irregularities may exist, or if any other circumstances are encountered that require extended services, the auditors will promptly advise the ATN. No extended services will be performed unless they are authorized in a contractual agreement or in an amendment to the agreement. 8. Report on Examination of Financial Statement a. These reports (General Purpose Financial Statements) shall set forth the scope of the examination together with an opinion in compliance with the State Board of Accountancy. b. The report shall include the financial statement customarily associated with reports on funds of governmental/non-profit units. c. The reports should be addressed to: 1. Diana Kotler 2. Executive Director 3. Anaheim Transportation Network South Anaheim Boulevard 5. Anaheim, CA d. Five (5) hard copies of the auditor s report shall be delivered to the ATN. Distribution will be made by the ATN. Page 6 of 38

7 e. A meeting between ATN and the auditing firm will be scheduled to review the financial reports. A representative from the auditing firm shall be available for the ATN Board of Directors meeting. 9. Management Letter: In addition to submitting a report on the examination of the financial statements, a management letter shall be prepared setting forth the following format. a. Findings and recommendations for improvement resulting from the survey of internal control conducted as part of the examination. b. Findings and recommendations for improvement in accounting systems where noted during the conduct of the examination. c. Findings of noncompliance with laws, rules, and regulations coming to the attention of the firm during the course of the examination. d. Any material items coming to the attention of the firm during the conduct of the examination. e. If there were no findings or recommendations, this shall also be reported to ATN by submittal of a Management Letter. f. The management letter shall be addressed to: Diana Kotler Executive Director Anaheim Transportation Network 1280 South Anaheim Boulevard Anaheim, CA ATN SUPPORT AND ASSISTANCE Preliminary to and throughout the engagement the ATN proposes to make available personnel to provide assistance for tasks such as identifying locations of required records and documentation, gathering needed records and supporting information, and, limited to available staff time, such other tasks that will expedite the conduct of engagement. 7. SOLICITATION SCHEDULE The following is the solicitation schedule: Release of RFP to Interested Parties Date: May 3, 2013 Deadline for Requests for Interpretation Date: May 10, 2013 Page 7 of 38

8 ATN Response to Communications and Requests Date: May 17, 2013 Proposals Due: Date: May 24, 2013 (2 pm) Invitation for Interviews to shortlisted firms Date: June 3, 2013 Interviews commence Date: June 12, 2013 ATN Board of Director s Recommendation Approval Notice to Proceed Date: June 26, 2013 (approximate) Date: June 27, 2013 (approximate) 8. TIMETABLE OF AUDIT The ATN reserves the right to waive these dates in the event of extenuating circumstances. 1. Audit field work shall begin no later than the first week of August of each contract year 2. The report of financial statements shall be issued by January 15 th of each contact year 3. Completion of all tax related materials and filing of the ATN s tax returns shall be completed with the set deadlines by the Internal Revenue Services (IRS) and State Board of Equalization. 9. WHAT TO INCLUDE IN YOUR RFP RESPONSE The ATN s goal in the RFP process is to identify the respondent with the best experience and capabilities to provide the services as described under Scope of Examination. The format of the proposal submitted by your firm shall specifically address and coincide with the following requirements: A. Title Page Show the RFP subject, the name of the proposer s firm, address and telephone number of the firm s office in or nearest Anaheim, California, name of the contact person, address, and the date submitted. B. Table of Contents Include a clear identification of the material by section and by page number. C. Letter of Transmittal Limit to one or two pages. 1. Briefly state the proposer s understanding of the work to be done and make a positive commitment to perform the work within the time prescribed. 2. State the names of the persons who will be authorized to make representations for the proposer, their titles, addresses, telephone and addresses. Page 8 of 38

9 3. State that the person signing the letter will be authorized to bind the proposer. D. Profile of the Firm. 1. State whether the firm is local, regional, national or international entity. 2. State the location of the office from which the work is to be performed and the number of partners, managers, supervisors, seniors and other professional staff employed at that office. 3. Describe the local office s capability to audit computerized systems, including the number of classifications of personnel skilled in computer sciences who will work on the audit. E. Summary of the Proposer s Qualifications. F. References. 1. Identify the partners, managers and supervisors who will work on the audit, including staff from other than the local office. Resumes including relevant experience and continuing education for each person assigned to the audit should be included. (The resumes may be included as an appendix.) 2. A statement of your firm s background and experience in providing auditing and management consulting services to governmental agencies. 1. Describe the most recent local and regional office auditing experience similar to the type of audit requested, and give the names and telephone numbers of client officials responsible for three of the audits listed. (See Attachment A for reference format). The services must demonstrate your firm s ability to meet the ATN s needs as described in this RFP. 2. The ATN may contact references at anytime, either before or after a respondent is selected. The ATN Executive Director may reverse the selection decision and award the contract to another respondent based upon post-award reference check. G. A declaration of your firm s ability and willingness to commit and maintain staffing, both number and level, to successfully conclude the engagement. H. Policy regarding change in personnel. In addition, the firm s ability to rotate field personnel during each contract year. I. A statement of the education and training program provided to or required of the staff identified for participation in the engagement, particularly with reference to governmental accounting and auditing, governmental practices and procedures, and governmental affairs. Page 9 of 38

10 J. A statement of arrangements your firm has with regard to liaison with or access to offices of the state and federal governments for the purpose of obtaining a prompt response to inquiries arising from technical or procedural questions developed in the course of the examination. K. A statement as to whether the firm is independent as defined by applicable auditing standards. L. A statement as to whether the local office that would be in charge of the audit has been given a positive peer review and whether they have been the object of any disciplinary actions during the past three (3) years. M. Based on the Scope of Examination, indicate the rate of pay and the amount not to exceed for which you can successfully complete the services as described in section Scope of Examination. Include the total estimated hours, hourly rate for each staff classification, and the maximum fee to be charged for the engagement. Specify whether this is a reduced rate for public entity clients. N. A statement acknowledging that if your firm is awarded a contract you will retain the audit work papers and related audit reports for a minimum of five (5) years and understand that staff of the cognizant agency is authorized to review any and all work papers. O. An expression of your estimated space and equipment requirements. State the maximum number of desks/locations that you would need on site at the ATN, including the length of time. P. An expression of your estimated requirements on the use of the ATN staff to provide you with schedules. Q. An expression of your ability to accomplish this engagement during the ATN s normal office hours. R. Any other information considered relevant to the proposal including a statement that the proposal will remain valid for 120 days. S. If your firm intends to subcontract for segments of the engagement, your proposal shall be specific as to detail. 10. EVALUATION CRITERIA AND SELECTION PROCESS 1. All proposals will be reviewed by an evaluation committee consisting of one or more representatives from the ATN and may include representatives from other governmental agencies and the ATN Board of Directors. 2. Upon completion of the review, the evaluation committee will make a tentative selection and set up an interview with representatives of the firm selected to formalize the contract. It is the ATN s intention to incorporate the RFP as part of the contract. Upon completion of the interview the Committee will make a formal recommendation to the Board of Directors. Page 10 of 38

11 3. The Board will make the final selection. 4. Criteria for evaluating responses will include: 1. Relevant experience and qualifications 30% 2. Cost, although a significant factor, will not be the determining factor 40% 3. Qualifications of firm 30% 5. Right of Rejection The ATN reserves the right to reject any and all proposals submitted and/or to request additional information from proposers. The ATN may also reverse the selection decision and award the contract to another respondent based upon a post-award reference check. 11. SCOPE OF EXAMINATION A. General Purpose Financial Statements B. The intent of the ATN is for the auditor to render an opinion on its General Purpose Financial Statements and accept responsibility for the statements in relations to the General Purpose Financial Statements. C. The funds and account groups included in the examination are all funds governed by the ATN Board of Directors and/or under the fiduciary responsibility of the ATN. D. The examination of the ATN s General Purpose Financial Statements shall be conducted in accordance to the Generally Accepted Auditing Standards. E. Traditional end-of-year verifications for the fiscal years ending June 30 th. 1) Errors and Irregularities: If conditions are discovered which lead to the belief that material errors, defalcations, or other irregularities may exist, or if any other circumstances are encouraged that require extended services, the auditors will promptly advise the ATN. No extended services will be performed unless they are authorized in a contractual agreement or in an amendment to the agreement. 2) Report on Examination of Financial Statement 1. These reports (General Purpose Financial Statements) shall set forth the scope of the examination together with an opinion in compliance with the State Board of Accountancy. 2. The report shall include the financial statement customarily associated with audit reports. Page 11 of 38

12 3. The report shall be addressed to: Anaheim Transportation Network 1280 South Anaheim Boulevard Anaheim, CA Ten (10) hard copies of the auditors report shall be delivered to the ATN. Distribution will be made by the ATN, and one electronic copy shall be sent to ATN. 5. A meeting between the ATN and representatives from the Board of Directors and the auditing firm will be scheduled to review the financial report. A representative from the auditing firm will also be available for the January s Board of Directors meeting to answer questions of the audit for the full board. 3) Single Audit Single Audit includes details of the list of federal programs and any audit findings. The Scope of the Evaluation includes: 1. Auditor s reports 2. Management Discussion and Analysis (MD&A) This serves as an introduction to the recipient s financial statements where the recipient s management (e.g., Governors, in the case of states; Mayors, in the case of cities; President in the case of non-profit organizations, etc.) discusses the results of operations and other financial information offering insight and detailed description about the recipient itself. 3. Recipient s financial statements This contains the financial statements required by the Governmental Accounting Standards Board (GASB), which includes the Government-wide statements as well as the Fund Financial Statements. 4. Recipient s notes to the financial statements This includes any notes and disclosures for the financial statements as required by US Generally Accepted Accounting Principles (GAAP). 5. Supplemental Information This section includes both financial statements and nonfinancial information relative to the recipient which is not covered in the MD&A or the financial statements and their respective notes. 6. Schedule of Federal Award Expenditures This document details all federal assistance expenditures made by the recipient during the audit period, categorized by the federal program and federal agency. 7. Schedule of Findings and Questioned Costs If the auditor finds situations where the recipient did not comply with laws and regulations, where internal controls are deficient, or a situation of illegal acts or fraud, the auditor is required by law to report such situations to the federal government in this section, as well as any questioned costs. Questioned costs Page 12 of 38

13 are amounts that the recipient expended, but which the auditor has determined that they were not permitted and must be returned to the federal government. 8. Schedule of Prior Audit Findings In this section, the auditor is required to follow-up and report about the recipient s corrective action on any audit findings reported in prior years. 9. Management Letter In addition to submitting a report on the examination of the financial statements, a management letter shall be prepared setting forth the following format: i. Findings and recommendations for improvement resulting from the survey of internal control conducted as part of the examination. ii. Findings and recommendations for improvement in accounting systems where noted during the course of the examination. iii. Findings of noncompliance with laws, rules, and regulations coming to the attention of the firm during the course of the examination. iv. Any material items coming to the attention of the firm during the conduct of the examination. v. If there are no findings or recommendations, this shall also be reported to ATN by submittal of a Management Letter. vi. The management letter shall be addressed to: Diana Kotler Executive Director Anaheim Transportation Network 1280 South Anaheim Boulevard Anaheim, CA vii. Ten (10) hard copies of the management letter shall be delivered to the ATN. Distribution will be made by the ATN, and one electronic copy shall be sent to ATN Administration. 10. Prepare ATN federal and state tax returns. 12. ATN SUPPORT AND ASSISTANCE Preliminary to and throughout the engagement the ATN proposes to make available personnel to provide assistance for tasks such as identifying locations of required records and documentation, gathering needed records and supporting information, and, limited to available staff time, such other tasks that will expedite the conduct of the engagement. Page 13 of 38

14 13. CONSULTANT COMMUNICATIONS AND REQUESTS All correspondence, communication and/or contact in regard to any aspect of this solicitation or offers shall be with the Executive Director identified her designated representative. Consultants and their representatives shall not make any contact with or communicate with any members of the ATN, its Board of Directors, or its employees and consultants, other than the Executive Director in regard to any aspect of this solicitation or offers. At any time during this procurement up to the time specified in Solicitation Schedule as the deadline for Consultant Communications and Requests, Consultants may request, in writing, a clarification or interpretation of any aspect, or a change to any requirement of the RFP or any addenda to the RFP. Such written requests shall be made to the Executive Director and may be transmitted by or facsimile. The Consultant making the request shall be responsible for its proper delivery to the ATN. 14. ATN RESPONSE TO COMMUNICATIONS AND REQUESTS The ATN will not respond to oral requests. Any responses to such written requests shall be provided by the ATN in the form of addenda only. Only written responses provided as addenda shall be official and all forms of communication with any officer, employee or agent of the ATN shall not be binding on the ATN. If it should appear to a prospective Consultant that the performance of work under the Contract, or any of the matters relating thereto, is not sufficiently described or explained in the RFP or Contract documents, or that conflict or discrepancy exists between different parts thereof or with any federal, state or local law, ordinance, rule, regulation or other standard or requirement, then the Consultant shall submit a written request for clarification to the ATN within the time period specified above. All written questions and/or requests received by the ATN within the identified time will be answered in written addenda no later than Date. 15. ADDENDA TO RFP The ATN reserves the right to amend the RFP at any time. Any amendments to or interpretations of the RFP shall be described in written addenda. The ATN shall provide copies of the addenda to all prospective Consultants officially known to have received the RFP. Prospective Consultants, or their agents, shall be responsible to collect the addendum at the address provided or receive same otherwise. Notification of or the addendum will also be made available through ATN s website, and will be ed by request to all such prospective Consultants officially known to have received the RFP and to the address provided by each prospective Consultant. Failure of any prospective Consultant to receive the notification or addendum shall not relieve the Consultant from any obligation under its proposal as submitted or under the RFP, as clarified, interpreted or modified. All addenda issued shall become part of the RFP. Prospective Consultants shall acknowledge the receipt of each individual Addendum and all prior addenda in the proposals; failure to do so may result in disqualification. Page 14 of 38

15 If ATN determines that the addenda may require significant changes in the preparation of proposals, the deadline for submitting the proposals may be postponed by the number of days that the ATN determines will allow Consultants sufficient time to revise their proposals. Any new Due Date shall be included in the addenda. 16. CONDITIONS, EXCEPTIONS, RESERVATIONS OR UNDERSTANDINGS Proposals stating conditions, exceptions, reservations or understandings (hereinafter deviations ) relating to the RFP may be rejected. Any and all deviations from requested information or material must be explicitly, fully and separately stated in the proposal setting forth at a minimum the specific reasons for each deviation so that it can be fully considered and, if appropriate, evaluated by the ATN. All deviations found by the ATN to be unacceptable in accordance with the appropriate evaluation criteria and procedures, and may result in the Consultant receiving a less favorable evaluation than without the deviation. 17. DUE DATE Sealed proposals, one (1) original and five (5) copies must be received by the ATN on or before the May 24, 2013 at 2 pm. Proposals and subsequent offers shall be valid for a period of 120 days. 18. INTERVIEWS During the evaluation period, the ATN may (but is not obligated to) choose to interview some or all of the proposing firms. The ATN has identified June 12, 2013, to conduct interviews. The ATN will notify Consultants of the specific time and location of the interview. All prospective Consultants are asked to keep this day available. No other interview dates will be provided; therefore, if a Proposing Consultant is unable to attend the interview on the indicated date and time; its proposal may be eliminated from further consideration. The interview may consist of a short presentation by the Consultant after which the evaluation committee will ask questions related to the firm s proposal and qualifications. The committee will use pre-established criteria during the interview process to score and make their final recommendation. 19. INSTRUCTIONS TO CONSULTANTS A letter of transmittal shall be addressed to the Executive Director and must, at a minimum, contain the following: A. Identification of the offering firm(s), including name, address and telephone number of each firm; B. Proposed working relationship among offering firms (e.g., prime/subcontractor), if applicable; C. Name, title, address and telephone number of contact person during the period of proposal evaluation; Page 15 of 38

16 D. A statement to the effect the proposal shall remain valid for a period of not less than 120 days from the date of the submittal; and E. Signature of person authorized to bind the offering firm to the terms of the proposal. Proposals should be submitted in 8 1/2 x 11 papers, using a single method of fastening. Offers should be typed with standard 12 point fonts, double spaced and single sided and should not include any unnecessarily elaborate or promotional material. Lengthy narratives are discouraged and presentations should be brief and concise. The proposal should not exceed thirty (60) single sided pages in length, excluding any appendices. Information should be presented in the order which it is requested. 20. CONSULTANT QUALIFICATIONS STATEMENT This section of the proposal should establish the ability of the Consultant to satisfactorily provide the required services by reasons of: demonstrate competence in the service to be provided; the nature and relevance of recently completed work; staffing capability as a business concern; and supportive client references. A. Provide a brief profile of the firm and a general description of the firm s financial condition. Identify any conditions (e.g. bankruptcy, pending litigation, planned office or plan closures, impending merger) that may impede the Consultant s ability to complete the project. B. Identify subcontractors, if any, by company name, address, contact person, telephone number, address and project function. Provide the same information for each subcontractor as requested above, and describe any experience working with each subcontractor. C. In addition, for each project cited as related experience, furnish the name, title, address, telephone number and address of the person(s) at the client organization who is most knowledgeable about the work performed. The Consultant may also supply references from other work not cited in this section as related experience. Listing references shall include a detailed description of the work performed for the client referenced. Consultant must provide, as a minimum, three references. 21. WORK PLAN The Consultant shall provide a work plan that is responsive to the scope of the work which exhibits the Consultant s understanding of the ATN s needs and requirements. The Consultant is encouraged to be creative and not just repeat tasks contained in the Scope of Work. Where the Consultant proposed alternative approaches to meet ATN s needs, these should be thoroughly explained as should any deviations or exceptions to the task identified in this RFP. 22. MANAGEMENT PLAN Page 16 of 38

17 This section of the proposal should establish the qualifications of the proposed project staff in terms of education, experience and professional credentials; the logic of the Consultant s proposed project organization as measured by lines of reporting and control; and the adequacy of labor resources. Identify key personnel proposed to perform work on the project, and indicate major areas of subcontracted work, if any. Include a project organization chart which clearly delineates communication/reporting relationships among the project staff and among the various firms involved. Furnish brief resumes for the proposed project manager and other key personnel. Resumes must feature experience most directly relevant to the work proposed for such key personnel on this project. Resumes should also describe the involvement of the key personnel. In the related experience of the firm and indicate length of time employed by the Consultant. Include a statement that key personnel shall be available for the duration of the project, and acknowledging that no person designated as key to the project shall be removed or replaced without the prior written concurrence of the ATN. 23. PRICE PROPOSAL REQUIREMENTS Cost proposals shall provide cost associated with the implementation of each identified task. Itemized budget shall provide information to identify specific labor costs, etc. Hourly labor costs shall be identified for assigned consulting personnel with the associated number of labor hours to be dedicated to the project. Should Consultant decide to retain sub-contractor services for one or more of the tasks indentified in the RFP, all sub-contracting costs shall be clearly presented and substantiated. 24. PROJECT SCHEDULE ATN anticipates award of the contract to the selected Consultant approximately at its June Board of Directors meetings on June 26, It is anticipated that all contractual negotiations shall be completed and ready for execution upon final Board approval and award. For this purpose, a draft agreement is included as Attachment D. ATN reserves the right to add other provisions to the draft agreement attached to this RFP prior to finalizing an agreement for ATN s Board s consideration. Consultant shall prepare a detailed Project Schedule based on the timeline outlined above. 25. RESPONSE TO PROPOSALS A. Acceptance/Rejection of Proposals the ATN reserves the right to reject any or all proposals for sound business reasons, to undertake discussions with one or more Consultants, and to accept that proposal or modified proposal which is conditional or not prepared in accordance with the instructions and requirements of this RFP to be noncompetitive. The ATN reserves the right to waive any defects, or minor informalities or irregularities in any proposal which do not materially affect the proposal or prejudice other Consultants. Page 17 of 38

18 The ATN may reject a proposal that includes unacceptable deviations, as provided in Conditions, Exceptions, Reservations or understandings. B. Cancellation of Procurement The ATN reserves the right to cancel the procurement, for sound business reasons, at any time before the Contract is fully executed and approved on behalf of the ATN. C. Protests Any protests by an interested party regarding this procurement shall be made in accordance with the protest procedure of the ATN. Written protest procedure may be obtained by contacting the ATN. D. Notification of Award and Debriefing Consultants who submit a proposal in response to the RFP shall be notified in writing regarding the firm awarded the contract. Such notification shall be made within three (3) days of the date the Contract is awarded. Consultants who are not awarded the Contract may obtain a prompt explanation concerning the strengths and weaknesses of their proposal. Unsuccessful Consultants who wish to be debriefed must request the debriefing in writing and it must be received by the ATN within three (3) days of the notification of the Contract award. 26. REQUIRED FORMS A. Acknowledgement of Addenda The following form shall be completed and included in the proposal. Failure to acknowledge receipt of all addenda may cause the proposal to be considered nonresponsive to the solicitation. Acknowledged receipt of each Addendum must be clearly established and included with the Offer. The undersigned acknowledges receipt of the following addenda to the documents: Addendum No #: Dated: Addendum No #: Dated: Addendum No #: Dated: Consultant Name Street Address City, State, Zip Title Phone Page 18 of 38

19 PERFORMANCE STANDARDS EXHIBIT A - SCOPE OF SUPPORT AND SERVICES The examination of the ATNs General Purpose Financial Statements shall be conducted in accordance to Generally Accepted Auditing Standards and shall be the financial type described in the American Institute of Certified Public Accountants (AICPA) Industry Guide, Accounting and Financial Reporting Standards. The parties to this Agreement understand that under general accepted governmental auditing standards the independent auditor has the responsibility, within the inherent limitations of the auditing process, to plan the examination to search for errors or irregularities (as defined in authoritative professional literature) that would have a material effect on the financial statements. A search for material errors or irregularities ordinarily is accomplished by performing those auditing procedures that in the CONTRACTOR s judgment are appropriate in the circumstances to form an opinion on the financial statements as a whole. The CONTRACTOR s examination, which is based on the concept of selective testing of the data being examined, is subject to the inherent risk that material errors or irregularities, if they exist, will not be detected. In conducting the examination, CONTRACTOR will be aware of the possibility that illegal acts (as defined in authoritative professional literature) may have occurred that may have a material effect on the financial statements. Examinations conducted in accordance with generally accepted auditing standards are of limited effectiveness in discovering possible illegal acts and cannot be expected to provide assurance that illegal acts will be detected, although procedures that are performed for the purpose of forming an opinion on the financial statements as a whole may also bring possible illegal acts to ATNs attention. CONTRACTOR s responsibility is limited to the periods covered by the CONTRACTOR s examinations and does not extend to matters that might arise during any later periods for which CONTRACTOR is not engaged. The foregoing provisions are not intended to relieve CONTRACTOR from its obligation to use due care and exercise reasonable judgment in the fulfillment of its obligation to the ATN. WORK TO BE PERFORMED The work to be performed shall consist of audits and reports regarding the accounts and funds of the ATN. Specifically the audit work to be performed shall include: A. Annual examination of the ATN s General Purpose Financial Statements for fiscal years ending June 30th. The funds and account groups included in the examination are all funds governed by the Board of Directors and/or under the fiduciary responsibility of the ATN. Audit procedures which will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, if any and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, financial institutions and Page 19 of 38

20 others. CONTRACTOR may request an audit letter from the ATNs attorney(s) as part of this engagement. At the conclusion of each audit, CONTRACTOR will also request certain written representations from the ATN about the financial statements and related matters. B. Single Audit - includes details of the list of federal programs and any audit findings C. Federal and State Tax Returns FORM 990 Prepare IRS Form 990 as part of submittal of ATN tax returns in compliance with tax-exempt nonprofit organizations filing. AUDIT PERSONNEL ATN will require the following on a yearly basis: A. Names of key individuals to be assigned to the engagement in the respective specialties considered necessary to undertake and complete the examination, together with a statement of the qualifications of the key individuals so identified, including their experience in auditing governmental units, auditing in general, and any specialized expertise such individuals might have which is applicable to this engagement B. Schedule of field work and expected deadlines C. Notification of change in personnel during the engagement D. To the extent possible, field personnel shall rotate each contract year ATN SUPPORT AND ASSISTANCE Preliminary to and throughout the engagement the ATN shall provide the basic information required for the audit and make available personnel to provide assistance for tasks such as identifying locations of required records and documentation, gathering needed records and supporting documentation not readily accessible to the CONTRACTOR, such other tasks that will expedite the conduct of the engagement. The ATN is responsible for the accuracy and completeness of information and records provided to CONTRACTOR during the examination. CONTRACTOR will advise the ATN about appropriate accounting principles and their application, and will assist in the preparation of the financial statements, but the responsibility for the financial statements remains with the ATN. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. Page 20 of 38

21 EXHIBIT B - COMPENSATION The following payments shall be made to the CONTRACTOR by ATN so long as the CONTRACTOR has performed the support services set forth in Exhibit A. A. TOTAL COMPENSATION. Notwithstanding, the total compensation to CONTRACTOR under this Agreement shall not exceed the following sums: Audit for Year Ending Total Compensation 2013 $ 2014 $ 2015 $ 2016 $ 2017 $ CONTRACTOR shall receive no reimbursement for any expenses of any kind. B. Any material extension or change in the scope of work requested by ATN or brought about by circumstances that may arise during the course of the engagement shall be discussed with ATN and the resulting fee mutually agreed upon prior to the conduct of the additional work. C. INVOICES. Each invoice shall detail the services provided as well as the staff level and hours of persons rendering services during the invoice period. Said compensation shall be paid on the basis of monthly invoice, if applicable, less a 10% retention per invoice, submitted by CONTRACTOR to: Anaheim Transportation Network 1280 South Anaheim Boulevard Anaheim, CA The 10% retention shall be paid upon acceptance by ATN as to form and compliance with applicable standards and acceptance by the Board of Directors of all required reports and letter for the fiscal year in question. Notwithstanding this 10% retention and consistent with the indemnification provisions set forth herein, CONTRACTOR shall be liable for all costs, expenses and damages incurred by the ATN that result from the CONTRACTOR s failure to submit timely reports or from CONTRACTOR s nonobservance of all applicable generally accepted accounting principles and/or generally accepted auditing standards. D. CONTRACTOR shall keep complete detailed records of the time expended by each member of CONTRACTOR s staff engaged in the audit and shall provide ATN with a summary of actual audit hours expended on each grant/program to enable ATN to allocate audit costs to grants/program. Page 21 of 38

22 EXHIBIT C - INSURANCE REQUIREMENTS CONTRACTOR shall furnish the ATN with certificate(s) of insurance or self-insurance and/or original endorsement(s) and/or insurance binder(s) affecting coverage required below. The certificates, endorsements, and/or binders for each insurance policy are to be signed by a person authorized by the insurer to effect coverage on its behalf. The certificates, endorsements, and/or binders are to be received and approved by the ATN before work commences. The ATN reserves the right to require complete, certified copies of all required insurance policies, at any time. If CONTRACTOR provides self-insurance, it shall, on intervals specified by the APCO, provide financial statements sufficiently detailed so as to allow the APCO to assess the CONTRACTOR s capability of providing such self-insurance. The APCO may reject self-insurance coverage where he finds that sufficienct coverage will not be afforded to the ATN. During the term of the Agreement, CONTRACTOR shall, at its sold expense, obtain and maintain in full force and effect the type of limits of liability requirements as follows: A. COMMERICAL/COMPREHENSIVE GENERAL LIABILITY: Bodily Injury and Property Damage for premises and operations; Personal Injury and Advertising for premises and operations; Independent Contractors (if any basis); Incidental Contracts; Contractual Liability; and Products and Completed Operations. Claims made policies are unacceptable. Minimum Limits: $1,000,000 combined single limit, on an occurrence policy form. B. BUSINESS AUTOMOBILE LIABILITY: Protection against loss as a result of liability to others caused by an accident and resulting in bodily injury and/or property damage, arising out of the ownership or use of any automobile. If CONTRACTOR has no owned automobiles, then only hired and non-owned automobile coverage is required. Minimum Limits: $1,000,000 per occurrence for bodily injury or property damage, combined single limit. C. WORKER S COMPENSATION AND EMPLOYER S LIABILITY: CONTRACTOR shall carry full Worker s Compensation insurance coverage for all persons directly employed, in carrying out the work under this contract, in accordance with the Worker s Compensation and Insurance Act, Division IV of the Labor Code of the State of California and any acts amendatory thereof. Employer s Liability statutory limits will apply. If CONTRACTOR has no employees, no Worker s Compensation coverage is required. If CONTRACTOR hires subcontractors to perform under this agreement, the CONTRACTOR Page 22 of 38

23 shall assure that the subcontractor carries workers compensation insurance for all of its employees, who are required to be covered by applicable law. ERRORS AND OMISSIONS, PROFESSIONAL LIABILITY: Errors and omissions liability insurance appropriate to the CONTRACTOR s profession. Minimum Limits: $1,000,000 per occurrence. D. NOTICE OF CANCELLATION Each insurance policy shall be endorsed, and evidence of such endorsement shall be provided to the ATN, that coverage not be suspended, voided, canceled, reduced in coverage or limits, or material change in coverage, except after thirty (30) days prior written notice has been given to the ATN. Ten (10) days prior written notice of cancellation for nonpayment of CONTRACTOR s insurance premium is permissible. E. In addition, it is understood and agreed that the following be made a part of the Agreement: 1. Excess/Umbrella: An excess policy or an umbrella policy (following form) may be utilized to meet the above required limits of liability. 2. Supplementary Payments: The above-stated limits of liability coverage for Commercial/Comprehensive General Liability, and Business Automobile Liability assumes that the standard supplementary payments clause will pay in addition to the applicable limits of liability and that these supplementary payments are not included as part of the insurance limits of liability. If any of the policies indicate that defense costs are included in the general aggregate limit, then the general aggregate limits must be multiple of the per occurrence limits. 3. Contractor s Insurance as Primary: The CONTRACTOR s insurance coverage shall be primary insurance. Any insurance or self-insurance maintained by the ATN, its officials, trustees, agents, employees or volunteers shall be excess to the CONTRACTOR s insurance shall not contribute to it. 4. Acceptability of Insurers: Insurance is to be placed with admitted State of California insurers which have an A.M. Best s rating of no less than A:VII, or be an equivalent program of self-insurance. 5. Additional Insured: All of the above insurance policies (except workers compensation and errors and omissions) shall name the ATN, its officials, agents, employees and volunteers as additional insured as respects liability arising out of activities performed by or on behalf of the CONTRACTOR. Page 23 of 38

24 ATTACHMENT A - REFERENCES Respondents must provide references from three (3) organizations that are or have received similar services. A brief description of services rendered, in addition to name, address, telephone number, contact person, and contact person s address must be provided. Proponents may include letters of reference with this attachment. The following format shall be used: Date of Service(s): Name of Organization: Address: Phone: Contact Person: Description of Services: Page 24 of 38

25 ATTACHMENT B - LITIGATION INVOLVEMENT Organization Name and Address: Involvement in Litigation: Check YES or NO to the following questions. If YES answer is checked, please explain fully the circumstances and include discussion of the type of program involved as well as the potential impact on this program, if awarded contract (use extra pages as needed). YES NO 1. Is the firm or any of its principles Involved in litigation now or within the last two years? 2. Has the firm or Project Director ever been cited for improper management? 3. Has the firm or Project Director ever had public agency funds withheld? Completed by: Name Title Date Page 25 of 38