VILLAGE OF SCARSDALE, NEW YORK REQUEST FOR PROPOSALS PROFESSIONAL AUDITING SERVICES. February 3, 2017

Transcription

1 VILLAGE OF SCARSDALE, NEW YORK REQUEST FOR PROPOSALS PROFESSIONAL AUDITING SERVICES February 3, 2017 Office of the Village Treasurer 1001 Post Road Scarsdale, New York 10583

2 Village of Scarsdale, New York Request for Proposals Professional Auditing Services Table of Contents I. INTRODUCTION...1 A. General Information...1 B. Term of Engagement...2 C. Understandings and Proposal Requirements...2 II. NATURE OF SERVICES REQUIRED... 3 A. General...3 B. Scope of Work to be Conducted... 3 C. Auditing Standards to be Followed...4 D. Reports to be Issued...4 E. Special Considerations... 5 F. Working Paper Retention & Access to Working Papers...5 III. DESCRIPTION OF THE GOVERNMENT... 6 IV. TIME REQUIREMENTS... 6 A. Key Proposal Dates...6 B. Anticipated Annual Audit Calendar...6 V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR... 7 VI. PROPOSAL REQUIREMENTS...7 A. General Requirements...7 B. Technical Proposal...8 Independence... 8 Conflict of Interest...8 License to Practice in New York State... 9 Qualifications and Experience...9 Similar Engagements with Other Governmental Entities...10 Specific Audit Approach Identification of Anticipated Potential Audit Problems C. Price Proposal Total All-inclusive Maximum Price Rates and Hours of Partners, Managers, Specialists, Supervisors and Staff IRS and GSA Rates for Travel, Lodging, Meals and Incidental Expenses Rates for Additional Professional Services VII. EVALUATION PROCEDURES...12 A. Evaluation Criteria...12 Mandatory Elements...12 Technical Qualifications...12 Price B. Oral Presentations, Questions and Clarifications Regarding Proposals C. Final Selection...13

3 D. Right to Reject Proposals...13 VIII. General Understandings...13 A. Non-Collusion...13 B. Conflict of Interest C. Contract...14 D. Indemnification and Insurance...14 E. Freedom of Information Law (FOIL)...15 F. Questionnaires (Appendices B & C) G. Proposer Certification APPENDICES: A. Schedules of Professional Fees & Expenses B. Required Disclosure of Relationships to Village C. Required Disclosure of Criminal, Civil, or Disciplinary Actions

4 Village of Scarsdale, New York Request for Proposals Professional Auditing Services I. INTRODUCTION A. General Information The Village of Scarsdale, New York (Village) is requesting proposals from qualified firms of certified public accountants to audit the Village s financial statements for the fiscal year ending May 31, 2017 with the option to enter into a professional services agreement to renew the agreement for two (2) additional one year periods. These audits are to be conducted in accordance with generally accepted auditing standards, the standards set forth for financial audits in the United States Government Accountability Office (GAO) Government Auditing Standards; the provisions of the Federal Single Audit Act of 1996; U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations (OMB A- 133), and Part 43 of the New York State Codification of Rules and Regulations (43 NYCRR) that are applicable to the transportation assistance programs offered by the New York State Department of Transportation (NYSDOT). Pursuant to New York State Village Law Section 4-408(e), the Village Board of Trustees must audit, or cause to be audited, the Village Treasurer s annual financial report and supporting records. Pursuant to 2019-a of the Uniform Justice Court Act, the records and docket of the Village Justice must at least once a year be examined by an auditing board or official, or by a certified public accountant or public accountant. It is the desire of the Village Board of Trustees to enter into an agreement with a certified public accountant or firm of certified public accountants for such auditing services. There is no express or implied obligation for the Village to reimburse responding firms for any expenses incurred in preparing proposals in response to this request for proposals (RFP). To be considered, three (3) printed originals and one electronic copy (in PDF format supplied on a flash drive) of a proposal must be received by the Village Treasurer at the following address no later than 4:00 PM New York Time Tuesday, February 21, 2017: Marie Louise McClure Village Treasurer Village of Scarsdale 1001 Post Road Scarsdale, New York It is anticipated that the selection of a firm will be completed by Tuesday, March 7, Following the notification of the selected firm it is expected that a professional service agreement will be executed between the parties on or before Tuesday, March 14, Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 1 of 16

5 B. Term of Engagement A one (1) year professional services agreement is contemplated with the Village s option to renew annually for up to two (2) additional years thereafter; subject to the annual review and recommendation of the Village Treasurer and the satisfactory negotiation of terms for any additional work that may be required. C. Understandings and Proposal Requirements By submission of a proposal in response to this RFP, the proposer agrees to and understands the following: While this is an RFP for professional services and exempt from the competitive bidding requirements of Section 103 of the New York State General Municipal Law (GML 103), the Village reserves the right to apply case law under GML 103 regarding bidder responsibility in determining whether a proposer is a responsible firm for the purpose of this RFP process. Submission of a proposal pursuant to this RFP shall not require the Village to enter into an agreement with the proposer. The Village is not obligated in any way to respond to any proposal. The Village assumes no responsibility or liability of any kind for costs incurred in the preparation or submission of any proposal. To be considered, proposals must arrive at the place specified herein and be time stamped prior to the deadline. The Village is not responsible for any internal or external delivery delays that may cause any proposal to arrive beyond the stated deadline. The Village reserves the right, at its own discretion, to reject any or all proposals; to issue additional solicitations for proposals and/or amendments to this RFP; to waive any irregularities in proposals received after notification to proposers affected; and/or to conduct investigations with respect to the qualifications of each proposer. Evaluation criteria are not necessarily listed in order of importance. The Village reserves its right, at its own discretion, to weigh its evaluation criteria in any manner it deems appropriate. The Village reserves its right, at its own discretion, to apply its judgment with respect to any aspect of this RFP, the evaluation of proposals and the negotiations and award of any professional service agreement; to enter into an agreement for only portions, or not enter into an agreement for any, of the services offered by the proposals with one or more of the proposers; to select any proposal as the basis for negotiations of a contract and to negotiate with one or more of the proposers for amendments or other modifications to their proposals, and/or to select the proposal offering best value to the Village and not necessarily on the basis of price or any other single factor. Any and all counter-proposals, negotiations, or communications received by a proposer, its officers, employees or agents from the Village, its elected officials, officers, employees, or agents, shall not be binding against the Village, its elected officials, officers, employees or agents unless and until a formal written professional service agreement for the services sought by this Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 2 of 16

6 RFP is duly executed by both parties and approved by the Village Attorney and the Village Board of Trustees. Questions and requests for clarification of this RFP must be written and submitted by postal mail or to Marie Louise McClure, Village Treasurer, 1001 Post Road, Scarsdale, New York no later than 4:00 PM on Friday February 10, Formal written responses will be distributed by the Village to all proposers on or before Wednesday February 15, COMMUNICATIONS OF ANY KIND WILL NOT BE BINDING AGAINST THE VILLAGE, EXCEPT FOR THE FORMAL WRITTEN RESPONSES TO ANY QUESTIONS AND/OR REQUESTS FOR CLARIFICATION. Proposals MUST be signed. Unsigned proposals will be rejected. Proposers may be required to give an oral presentation to the Village Board and/or the Village Treasurer to clarify or elaborate on the written proposal. No proposal will be accepted from nor any agreement awarded to any proposer that is in arrears upon any debt or in default of any obligation owed to the Village. Additionally, no agreement will be awarded to any proposer that has failed to satisfactorily perform pursuant to any prior or current agreement with the Village. A. General II. NATURE OF SERVICES REQUIRED The Village is soliciting the services of qualified firms of certified public accountants to audit the Village s financial statements and the records of the Village Justice Court for the fiscal years ending May 31, 2017, with the Village s option to renew its professional service agreement with the firm for each of the two (2) subsequent fiscal years. These audits are to be conducted in accordance with the provisions contained in this RFP. B. Scope of Work to be Conducted The auditor will conduct an audit and express an opinion on the Village s basic financial statements. While not a required part of the basic financial statements, the combining and individual fund financial statements and schedules will be derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The auditor will subject these accounting and other records to the auditing procedures applied in the audit of the basic financial statements. The auditor will express an opinion as to whether or not such information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The auditor will not be required to subject the introductory and statistical sections (if any) to the auditing procedures applied in the audit of the basic financial statements, and accordingly, will not be required to express an opinion or provide any assurance on them. Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 3 of 16

7 The auditor will issue a report on the fair presentation of the financial statements in conformity with generally accepted accounting principles, and a communication of internal control matters identified in the audit to those charged with governance and management. The auditor will conduct an audit of each major Federal program and on internal control over compliance as required by OMB A-133 ( Single Audit ). The auditor will issue a report on internal control over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with Government Auditing Standards, and a report on compliance for each major federal program and on internal control over compliance in accordance with OMB A-133. The auditor will conduct an audit in accordance with 43 NYCRR that are applicable to the transportation assistance programs offered by the NYSDOT and issue a report on compliance and controls over State transportation assistance expended based on an audit of the financial statements performed in accordance with Government Auditing Standards. The auditor will conduct an audit of the docket and records of the Village Justice Court in accordance with the standards and requirements of 2019-a of the Uniform Justice Court Act, the Office of the State Comptroller and the Office of Court Administration. The auditor, from time to time, will be requested to assist in accounting and management issues. The proposer should detail experience and timeliness of responses to inquiries. C. Auditing Standards to be Followed To meet the requirements of this request for proposals, the audit shall be conducted in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the provisions of OMB A-133 the provisions of 43 NYCRR applicable to transportation assistance programs offered by NYSDOT, and for the audit of the Justice Court, any requirements set forth by 2019-a of the Uniform Justice Court Act, the Office of the State Comptroller and the Office of Court Administration. D. Reports to be Issued Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue a report on the fair presentation of the financial statements in conformity with generally accepted accounting principles (auditor s report); a report on internal control over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with Government Auditing Standards, and a communication of internal control matters identified in the audit to those charged with governance and management. Where applicable, the auditor shall also issue a report on compliance for each major Federal program and on internal control over compliance in accordance with OMB Circular A-133, a report on compliance and controls over State transportation assistance expended based on an audit of the financial statements performed in accordance with Government Auditing Standards, and any other report(s) required by Federal, state, or local laws, rules or regulations. Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 4 of 16

8 The auditor shall issue a report (or reports) on the docket and records of the Village Justice Court in accordance with the standards and requirements of 2019-a of the Uniform Justice Court Act, the Office of the State Comptroller and the Office of Court Administration. The reports on compliance shall include all instances of non-compliance irregularities and illegal acts, and the auditor shall be required to make an immediate, written report of all irregularities and/or illegal acts of which the auditor becomes aware to the Village Board of Trustees and the Village Treasurer. The schedules of Federal financial assistance and related reports as required by the Single Audit Act of 1984 (with amendment in 1996) and OMB A-133, and the schedules of State transportation assistance and related reports as required by 43 NYCRR will be included as separate sections of the Village s financial report. Village Justice Court reports will be issued as separate reports from the Village s financial report. E. Special Considerations The auditor should detail in the proposal the extent and duration of their experience auditing villages in New York State. The proposal should also include detail on the auditor s experience auditing any cities, towns, or villages in New York State that publish a Comprehensive Annual Financial Report (CAFR). The auditor should also provide financial statements for a Village comparable to Scarsdale for the fiscal year ended May 31, The Village may prepare one or more official statements in connection with the sale of debt, which will contain the general purpose financial statements and the auditor's report thereon. If requested by the Village or the Village s financial advisor, bond counsel, or underwriter, the auditor shall be required to issue a "consent and citation of expertise" as the auditor and/or any necessary "comfort letters. The auditor must, for the term of the contract, be thoroughly familiar with all current and emerging standards and guidance issued by the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB), the American Institute of Certified Public Accountants (AICPA), and any Federal, State and local laws, rules and regulations affecting the Village s accounting, auditing and/or financial reporting. The proposer selected to perform the services herein is prohibited from assigning, transferring, conveying, subletting, or otherwise disposing of its rights, title or interest in the contract without the prior written consent of the Village, and attempts to do so are null and void. F. Working Paper Retention & Access to Working Papers All working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years following the date of the auditor s report, unless the firm is notified in writing by the Village of the need to extend the retention period. Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 5 of 16

9 The auditor will be required to make working papers available upon request to the Village Board of Trustees; the Village Treasurer; the Village Clerk; any Federal or State agency, and auditors for entities where the Village is a grant or aid recipient or sub-recipient. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. III. DESCRIPTION OF THE GOVERNMENT The auditor's principal contact with the Village will be the Village Treasurer and/or his/her designated representative, who will coordinate the assistance to be provided by the Village with the auditor. The auditor shall be responsible for the preparation, editing, printing and publication of the Village s financial report, unless otherwise advised by the Village Treasurer. The Village currently utilizes New World Systems software, a product of Tyler Technologies, Inc. ( Marie Louise McClure currently serves as the Village Treasurer and Chief Fiscal Officer and is assisted by a full-time Deputy Treasurer. Accounting entries associated with payroll, employee benefits, accounts payable and accounts receivable are performed by the Deputy Treasurer, and four full-time employees. A complete description of the Village and its finances may be found in the Village s most recently audited financial report and the Village s most recently adopted budget. These documents are available for download from the Village s website at: Official statements of the Village are available for download from the MSRB EMMA website at A. Key Proposal Dates IV. TIME REQUIREMENTS Request for proposals issued Friday, February 3, 2017 Due date for proposals Tuesday, February 21, 2017 Selected firm notified Tuesday, March 7, 2017 Contract date Tuesday, March 14, 2017 B. Anticipated Annual Audit Calendar 1. April Auditor provides Village with a detailed audit plan; a list of all schedules to be prepared by Village and a list and format of confirmations to be prepared by the Village. Auditor conducts preliminary engagement activities over a two day period (may be between April and early June). Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 6 of 16

10 2. Second week of July Audit staff commences two week on-site field audit work. Recommendations and suggested adjustments are presented to Village Treasurer during the course of the field work. Preliminary government-wide and fund statements (balance sheet, income statements and comparative statements of cash flows) are presented and discussed by the Audit Partner and Audit Manager with Village Manager, Deputy Village Manager, Village Treasurer and Deputy Village Treasurer at the end of the field audit. 3. August (3rd week) Auditor presents draft financial statements and any additional recommendations and suggested adjustments to Village Treasurer for review/response after review by Audit Partner. 4. On or before the first Board meeting in September Auditor issues financial reports, auditor s letter and other auditor reports. Auditor presents financial statements at a Finance Committee in September. The above key proposal dates and annual audit calendar are subject to change at the Village s sole discretion. The Village Justice Court audit reports are generally prepared simultaneously but may follow a different schedule. V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR The Office of Village Treasurer will assist the auditor during the engagement by providing information, documentation and explanations, and coordinating the auditor s access to management and staff of other Village departments. The Village will prepare confirmations as directed by the auditor. A. General Requirements VI. PROPOSAL REQUIREMENTS ALL INQUIRIES DURING THE ENTIRE PROPOSAL PROCESS MUST BE MADE IN WRITING TO MARIE LOUISE MCCLURE, VILLAGE TREASURER, VIA (treasurer@scarsdale.com) OR FAX ( ). VERBAL INQUIRIES AND/OR CONTACT WITH VILLAGE PERSONNEL OTHER THAN THE VILLAGE TREASURER AND/OR HIS/HER DESIGNEE REGARDING THIS REQUEST FOR PROPOSALS WILL NOT BE BINDING ON THE VILLAGE AND MAY BE GROUNDS FOR DISQUALIFICATION OF THE PROPOSER FROM THE SELECTION PROCESS. Three (3) printed and signed originals and one electronic copy (in PDF format supplied on a flash drive) of a proposal in a single envelope or package clearly marked PROPOSAL FOR PROFESSIONAL AUDITING SERVICES 2017 and addressed to Marie Louise McClure, Village Treasurer, Village of Scarsdale, 1001 Post Road, Scarsdale, NY must be received by the Village no later than 4:00 PM New York Time Tuesday, February 21, Such proposal must consist of the following five (5) sections: 1. Title Page - Title page showing Proposal for Professional Auditing Services 2017 ; the firm's name; the name, address, telephone number, fax number and address of the firm s contact person, and the date of the proposal. Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 7 of 16

11 2. Table of Contents 3. Transmittal letter - A letter of transmittal signed by an authorized signatory of the firm, briefly stating the proposer's understanding of the work to be done, the commitment to perform the work within the time period, a statement why the firm believes itself to be best qualified to perform the engagement, and a statement that the proposal is a firm and irrevocable offer for three (3) months from the date of the proposal. 4. Detailed Proposal - The detailed proposal should follow the order set forth in Section VI.B of this RFP. 5. Price Proposal The detailed proposal should follow the order set forth in Section VI.C of this RFP. B. Technical Proposal The purpose of the technical proposal is to demonstrate the qualifications, competence, capacity and audit approach of the firm, and the particular staff to be assigned to this engagement, in conformity with the requirements of this RFP. The technical proposal should address all the points outlined in this RFP, excluding any cost information, which should only be included in the price proposal. The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer's capabilities, qualifications and experience to satisfy the requirements of this RFP. While additional data may be presented, the following items must be included, as they represent the criteria against which the proposal will be evaluated. Independence The firm must provide an affirmative statement that it is independent of the Village. In addition, the successful proposer shall give the Village written notice of any relationships entered into during the period of the agreement that would present a question concerning the independence of the firm. Conflict of Interest The firm must provide an affirmative statement that there are no existing professional relationships that would present a conflict of interest. In addition, the successful proposer shall give the Village written notice of any professional relationships entered into during the period of the agreement that would present a conflict of interest. The firm must provide a list and describe any professional relationships involving the Village for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to conducting the proposed audit. Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 8 of 16

12 License to Practice in New York State The firm must provide an affirmative statement that the firm and all assigned key professional staff are properly licensed to practice as certified public accountants in the State of New York. Qualifications and Experience The proposal must state the size (number of full-time equivalent or number of full-time and parttime employees) of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement is to be conducted and the number and nature of the professional staff to be employed in this engagement on a full-time basis, and the number and nature of the staff to be so employed on a part-time basis. The proposal must include a copy of the report on its most recent external quality control review, with a statement as to whether or not that quality control review included a review of specific government engagements. The proposal must include information on the results of any Federal or State desk reviews or field reviews of its audits during the past five (5) years. The proposal must include information on the circumstances and status of any criminal (felony or misdemeanor) or civil charges or disciplinary actions, taken or pending, against the firm or an owner, officer, or director of the firm (Appendix C). The proposal must include a list of all offices of the firm located in the State of New York, and the identification of the office providing services for the scheduled audit must be located in the metropolitan New York area. The proposal must identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists who would be assigned to the engagement, and indicate whether each such person is licensed to practice as a certified public accountant in New York State. The proposal must include information on the government auditing experience of each person with an emphasis on village government experience, including information on relevant continuing professional education for the past five (5) years and membership in professional organizations relevant to the performance of this audit. The Village is particularly interested in the experience that the staff expected to be assigned to the audit has with New York local government clients. The proposal should provide as much information as possible regarding the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. The proposal should indicate how the quality of staff over the term of the agreement will be assured. PLEASE TAKE NOTICE: THE VILLAGE DESIRES PROPOSALS THAT PRESENT A TEAM FOR THE SCARSDALE AUDIT OF PARTNER(S), SUPERVISOR(S) AND STAFF HAVING EXPERIENCE WITH AUDITS OF NEW YORK STATE MUNICIPAL GOVERNMENTS, PARTICULARLY VILLAGES. THIS FACTOR WILL BE A CRITICAL DETERMINANT IN THE SELECTION OF THE AUDIT FIRM. FIRMS THAT PROPOSE QUALIFIED PARTNERS AND/OR SUPERVISORS, BUT WILL Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 9 of 16

13 HAVE THE MAJORITY OF THE AUDIT WORK CONDUCTED BY INEXPERIENCED STAFF WILL NOT BE GIVEN SERIOUS CONSIDERATION. IN ADDITION, ANY FIRM THAT IS SELECTED FOR THIS CONTRACT WITH A PROPOSAL TO USE EXPERIENCED PERSONNEL FOR CONDUCTING THE MAJORITY OF THE WORK, BUT FAILS TO DELIVER, SHOULD UNDERSTAND THAT THIS WILL BE GROUNDS FOR TERMINATION OF THE CONTRACT FOR CAUSE. Proposals must include a page that identifies key personnel who will be conducting the work. Key personnel shall be approved by the Village Treasurer and will be reflected as a schedule in the successful proposer s contract. There shall be no change in key personnel without the express written prior permission of the Village Treasurer, except for engagement partners, managers, and other supervisory staff and specialists who may be changed if those personnel leave the firm, are promoted, or are assigned to another office. In all other circumstances, key personnel may only be changed with the express prior written permission of Village Treasurer. Any replacements should have the appropriate experience in auditing local governments in New York State. The Village Treasurer shall have the right to approve or reject replacements. Consultants and firm specialists mentioned in response to this request for proposals can only be changed with the express prior written permission of Village Treasurer. The Village retains the right to approve or reject replacements. Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. Similar Engagements with Other Governmental Entities The proposal must include a list of the firm s most significant engagements (maximum of five) conducted in the last five (5) years that are similar to the engagement described in this RFP. Experience of the proposed partners, supervisors and staff with New York State villages is especially important. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name, telephone number and address of the principal client contact that the Village can contact as a reference. The proposal must also include a list of all governmental clients in New York State. Specific Audit Approach The proposal must set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposals. In developing the work plan, reference should be made to such sources of information as the Village s budget and related materials, organizational charts, manuals and programs, and financial and other management information systems. The proposal must include the following information on the audit approach: Proposed segmentation of the engagement; Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 10 of 16

14 Level of staff and number of hours to be assigned to each proposed segment of the engagement; Sample sizes and the extent to which statistical sampling is to be used in the engagement; Extent of technology and software to be used in the engagement; Type and extent of analytical procedures to be used in the engagement; Approach to be taken to gain and document an understanding of Village s internal control structure; Approach to be taken in determining laws, rules and regulations that will be subject to audit test work, and, Approach to be taken in drawing audit samples for purposes of tests of compliance. Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from Village in resolving these problems. C. Price Proposal Total All-inclusive Maximum Price The proposed price should contain all pricing information relative to performing the audit engagement as described in this request for proposals. The total all-inclusive maximum ( not-toexceed ) price to be proposed is to contain all direct and indirect costs, including but not limited to all out-of-pocket expenses. The Village will not be responsible for expenses incurred in preparing and submitting the proposal, and such costs must not be included in the proposal. The price proposal must be in a separate section (Section 5) of the proposal and must provide the following: Name and address of the firm Name, title, telephone number, fax number and address of the contact person for the firm A total all-inclusive maximum ( not-to-exceed ) price for the audit of each of the three fiscal years ending May 31, 2017, 2018 and 2019 A signed certification that the person executing the proposal is entitled to represent the firm, empowered to submit the proposal and authorized to sign a contract with Village Rates and Hours of Partners, Managers, Specialists, Supervisors and Staff The price proposal should include a schedule of professional fees and expenses, presented in the format provided in Appendix A that supports the total all-inclusive maximum ( not-to-exceed ) price. Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 11 of 16

15 IRS and GSA Rates for Travel, Lodging, Meals and Incidental Expenses In addition, the price proposal must include a statement from the firm, stating that the firm will accept reimbursement for travel, lodging, meals and incidental expenses at the Internal Revenue Service (IRS) standard mileage rates and the U.S. General Services Administration (GSA) per diem rates for lodging, meals and incidental expenses in existence at the time such expenses were incurred. Rates for Additional Professional Services Additional services beyond the scope of the RFP shall be conducted only if set forth in a written addendum to the professional services agreement between Village and the firm and signed by both parties prior to the commencement of such work. Any such additional shall be conducted at the same hourly rates set forth in the schedule of fees and expenses included in the price proposal, and the IRS and GSA rates for mileage, lodging, meals and incidental expenses as noted above. VII. EVALUATION PROCEDURES Proposals submitted will be evaluated by the Village Board and Village Treasurer. The Village reserves the right to retain all proposals submitted and use any idea in a proposal regardless of whether or not that proposal is selected. A. Evaluation Criteria Proposals will be evaluated using three sets of criteria: mandatory elements, technical qualifications, and price. The Village will evaluate only those proposals from firms meeting the mandatory elements criteria. Proposals from firms meeting the mandatory elements criteria will then be evaluated based on their technical qualifications and price. The Village reserves the right to weigh evaluation criteria in any manner it deems appropriate. Mandatory Elements The audit firm is independent and licensed to practice in New York State. The audit firm's professional personnel are current with all continuing professional education requirements. The firm has no conflict of interest with regard to any other work conducted by the firm for Village. The firm submits a copy of its most recent external quality control review report and the firm has a record of quality audit work. The firm adheres to the instructions in this request for proposals on preparing and submitting the proposal. Technical Qualifications The firm's past experience and performance on comparable government engagements. The firm's past experience with New York State local governments, especially with villages whose size and operations are similar to those of the Village. Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 12 of 16

16 Price The quality of the firm's professional personnel to be assigned to the engagement and the quality of the firm's management support personnel to be available for technical consultation. Familiarity with automated accounting systems. Experience with Federal and State financial aid and grants. Experience with GFOA's Certificate of Achievement for Excellence in Financial Reporting program. The firm s use of experienced personnel to conduct the audit. Adequacy of proposed staffing plan for various segments of the engagement. Adequacy of sampling techniques. Adequacy of analytical procedures. Adequacy of the audit plan in utilizing current technology formats. Price proposed must clearly indicate a total all-inclusive maximum ( not-to-exceed ) price, including but not limited to all direct and indirect costs and all out-of-pocket expenses. In accordance with Appendix A herein, the proposal must also include the hourly rate schedule for each of the various disciplines/titles performing work on the audit B. Oral Presentations, Questions and Clarifications Regarding Proposals The Village Treasurer and/or Village Board may require any proposer to make one or more oral presentations, answer any questions, and/or provide clarifications regarding their proposal. C. Final Selection The Village Board will select a firm based upon the recommendation of the Village Treasurer. It is anticipated that a firm will be selected by Tuesday March 7, Following notification of the firm selected, it is expected a contract will be executed between both parties by Tuesday March 14, D. Right to Reject Proposals Submission of a proposal indicates that the firm understands and will abide by the conditions contained in this RFP. The Village reserves the right without prejudice to reject any or all proposals. A. Non-Collusion VIII. General Understandings By signing the proposal, the proposer does hereby warrant and represent that any ensuing agreement has not been solicited, secured or prepared directly or indirectly in a manner contrary Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 13 of 16

17 to the laws of the State of New York and the Village of Scarsdale, and that said laws have not been violated and shall not be violated as they relate to the procurement or the performance of the agreement by any conduct, including the paying or the giving of any fee, commission, compensation, gift, gratuity, or consideration of any kind, directly or indirectly, to any Village official, officer, employee, or member of any Village board or commission. B. Conflict of Interest The award of a contract is subject to provisions of all Federal, State and local laws. All firms must disclose with their proposals the name of any officer, director, or agent, or any extended family member (spouse, domestic partner, parent, mother-in-law, father-in-law, child, spouse of child, grandchild, brother, sister, or spouse or child of a brother or sister) of any officer, director, or agent of the firm who is also an official, officer, employee, or member of any Village board or commission. All firms must disclose with their proposals the name of any Village official, officer, employee, or member of any Village board or commission, who directly or indirectly owns an interest of five percent (5%) or more in the firm or any of its subsidiaries or affiliates. C. Professional Service Agreement After selection of the successful proposer, a formal written professional service agreement will be prepared by the Village of Scarsdale and will not be binding until signed by both parties and approved by the Village Attorney and Board of Trustees. NO RIGHTS SHALL ACCRUE TO ANY PROPOSER BY THE FACT THAT A PROPOSAL HAS BEEN SELECTED BY THE VILLAGE FOR SUBMISSION TO THE VILLAGE ATTORNEY OR BOARD OF TRUSTEES FOR PROFESSIONAL SERVICE AGREEMENT APPROVAL. SAID VILLAGE ATTORNEY AND SAID BOARD OF TRUSTEES EACH HAVE THE RIGHT TO REJECT ANY RECOMMENDATION, AND THE APPROVAL OF BOTH THE VILLAGE ATTORNEY AND THE BOARD OF TRUSTEES IS NECESSARY BEFORE A VALID AND BINDING PROFESSIONAL SERVICE AGREEMENT MAY BE EXECUTED BY THE VILLAGE. D. Indemnification and Insurance Upon execution of any contract between the proposer and the Village, the proposer will be required to procure and maintain for the duration of the contract, insurance that will protect the successful proposer and the Village from and against injury and damage that may arise from the performance of the work performed under the professional service agreement in the following minimum amounts: Professional Liability Insurance NY State Workers Compensation NY State Disability One million dollars ($1,000,000) per occurrence Statutory Limits Statutory Limits Insurance shall be placed with insurers licensed in New York State with an A.M. Best rating of no less than A-. The Village of Scarsdale and its officials, officers, employees and volunteers shall be endorsed as an additional insured on the professional liability insurance policy. Prior to the commencement of the work hereunder, the successful proposer shall provide to the Village certificates of insurance evidencing the above coverage, with said certificates to provide for thirty (30) days prior written notice to the Village of any cancellation, suspension, or change to Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 14 of 16

18 the coverage. The form and contents of the policies of insurance shall be subject to the approval of the Village Attorney. E. Freedom of Information Law (FOIL) The New York State Freedom of Information Law (FOIL) as set forth in Public Officers Law, Article 6, Sections 84-90, mandates public access to government records. However, Section 87(2)(d) of the Public Officers Law allows a government, such as the Village, to deny access to information provided by a commercial enterprise or derived from information obtained from a commercial enterprise, which if disclosed would cause substantial injury to the competitive position or constitute a trade secret of the subject enterprise. Proposers who believe that certain information submitted in their proposals is protected from disclosure under Section 87(2)(d) of the Public Officers Law must insert the following notice on the front of their proposal: NOTICE THE DATA ON PAGES OF THIS PROPOSAL IDENTIFIED BY AN ASTERISK (*) AND BOLD TYPE CONTAINS TECHNICAL OR FINANCIAL INFORMATION CONSTITUTING TRADE SECRETS OR INFORMATION THE DISCLOSURE OF WHICH WOULD RESULT IN SUBSTANTIAL INJURY TO THE PROPOSER S COMPETITIVE POSITION. THE PROPOSER REQUESTS THAT SUCH INFORMATION BE USED ONLY FOR THE EVALUATION OF THE PROPOSAL, BUT UNDERSTANDS THAT ANY DISCLOSURE WILL BE LIMITED TO THE EXTENT THAT THE VILLAGE CONSIDERS PROPER UNDER THE LAW. IF THE VILLAGE ENTERS INTO AN AGREEMENT WITH THIS PROPOSER, THE VILLAGE SHALL HAVE THE RIGHT TO USE OR DISCLOSE SUCH INFORMATION AS PROVIDED IN THE AGREEMENT, UNLESS OTHERWISE OBLIGATED BY LAW. Such proposals must also clearly present the following in uppercase bold face on the top of each page containing such information: THE PROPOSER BELIEVES THAT THIS INFORMATION IS PROTECTED FROM DISCLOSURE UNDER THE NEW YORK STATE FREEDOM OF INFORMATION LAW" The Village assumes no liability for disclosure of information so identified, provided that the Village has made a good faith legal determination that the information is not protected from disclosure under applicable law or where disclosure is required to comply with an order or judgment of a court of competent jurisdiction. The contents of the proposal accepted by the Village may become part of any agreement between the Village and a successful proposer, except portions protected from disclosure under applicable law or by order or judgment of a court of competent jurisdiction. F. Questionnaires (Appendices B & C) Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 15 of 16

19 Proposers are required to complete the questionnaire entitled Required Disclosure of Relationships to Village attached hereto as Appendix B. In the event that any information provided in the completed questionnaire changes during the term of a contract or agreement, the successful proposer agrees to provide a revised Required Disclosure of Relationships to Village form to the Village within ten (10) business days of such event. Proposers are required to complete the questionnaire entitled Required Disclosure of Criminal, Civil, or Disciplinary Actions attached hereto as Appendix C. In the event that any information provided in the completed questionnaire changes during the term of a contract or agreement, the successful proposer agrees to provide a revised Required Disclosure of Criminal, Civil, or Disciplinary Actions form to the Village within ten (10) business days of such event. G. Proposer Certification The undersigned agrees, understands, represents and warrants that: This proposal, including all attachments any additional information submitted herewith, constitute merely an offer to negotiate with the Village; Submission of this proposal, attachments and additional information shall not obligate or entitle the proposer to enter into a professional service agreement with the Village for the required services; The Village is not obligated to respond to this proposal nor is it legally bound in any manner whatsoever by the submission of same; Any and all proposals and negotiations shall not be binding or valid against the Village, its elected officials, directors, officers, employees or agents, unless a contract or agreement is approved by the Village Attorney and Board of Trustees and signed by a duly authorized officer of the Village; The Village reserves the right to reject consideration of any and all proposals including, but not limited to, proposals that are conditional or incomplete; The Village reserves all rights specified in this RFP, and, Except as disclosed in the proposal, no official, officer, employee, or member of a board or commission of the Village is directly or indirectly a party to, or in any other manner interested in, this proposal or any subsequent contract or agreement that may be entered into with the Village. Proposer Signature Printed Proposer Name and Title Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 16 of 16

20 Date Village of Scarsdale NY RFP Audit Services February 3, 2017 Page 17 of 16

21 APPENDIX A: SCHEDULES OF PROFESSIONAL FEES & EXPENSES Audit of Fiscal Year Ending May 31, 2017 Personnel: Hours Hourly Rate Total Partners Managers Supervisors Staff Other Subtotal Personnel Expenses: Travel Lodging Meals Incidentals Other Subtotal Expenses All-Inclusive Maximum ( Not to Exceed ) Price Note: The hourly rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive price. Village of Scarsdale NY RFP Audit Services February 3, 2017 Appendix A Page 1 of 3

22 Audit of Fiscal Year Ending May 31, 2018 Personnel: Hours Hourly Rate Total Partners Managers Supervisors Staff Other Subtotal Personnel Expenses: Travel Lodging Meals Incidentals Other Subtotal Expenses All-Inclusive Maximum ( Not to Exceed ) Price Note: The hourly rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive price. Village of Scarsdale NY RFP Audit Services February 3, 2017 Appendix A Page 2 of 3

23 Audit of Fiscal Year Ending May 31, 2019 Personnel: Hours Hourly Rate Total Partners Managers Supervisors Staff Other Subtotal Personnel Expenses: Travel Lodging Meals Incidentals Other Subtotal Expenses All-Inclusive Maximum ( Not to Exceed ) Price Note: The hourly rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive price. Total All-Inclusive Maximum Price Summary All Years FYE May 31 Personnel Expenses Total Total Village of Scarsdale NY RFP Audit Services February 3, 2017 Appendix A Page 3 of 3

24 APPENDIX B: REQUIRED DISCLOSURE OF RELATIONSHIPS TO VILLAGE Prior to execution of a contract by the Village, a potential Village contractor must complete, sign and return this form to the Village Contract Name and/or ID No.: (To be filled in by Village) Name of Contractor: (To be filled in by Contractor) A.) Related Employees: Are any of the employees that you will use to carry out this contract with Village of Scarsdale also an official, officer, employee, or member of any board or commission of the Village, or the spouse, domestic partner, parent, mother-in-law, father-in-law, child, spouse of child, grandchild, brother, sister, or spouse or child of a brother or sister of such Village official, officer, employee, board or commission member? Yes No If yes, please provide details. B.) Related Owners, Officers and Directors: Are any owners, officers, or directors of your firm also an official, officer, employee, or member of any board or commission of the Village of Scarsdale, or the spouse, domestic partner, parent, mother-in-law, father-in-law, child, spouse of child, grandchild, brother, sister, or spouse or child of a brother or sister of such Village official, officer, employee, board or commission member? Yes No If yes, please provide details. C.) Interest in Contract To answer the following question, the definition of the word interest shall mean a direct or indirect pecuniary or material benefit accruing to a Village of Scarsdale official, officer, employee, or member of any board or commission of the Village, or the spouse, domestic partner, parent, mother-in-law, father-inlaw, child, spouse of child, grandchild, brother, sister, or spouse or child of a brother or sister of such Village official, officer, employee, board or commission member, whether as the result of a contract with the Village or otherwise. For purposes of this question, a Village of Scarsdale official, officer, employee, or member of any board or commission shall be deemed to have an "interest" in a firm or a subcontractor of a firm when the Village official, officer, employee, board or commission member, or the spouse, domestic partner, parent, mother-in-law, father-in-law, child, spouse of child, grandchild, brother, sister, or spouse or child of a brother or sister of such Village official, officer, employee, board or commission member: has a contract with the firm or a subcontractor of the firm; and/or, is an officer, director, member, or employee of the firm; and/or, is an officer, director, member, or employee of a subcontractor of the firm; and/or, Village of Scarsdale NY RFP Audit Services February 3, 2017 Appendix B Page 1 of 2