REQUEST FOR PROPOSAL (RFP) #3512 AUDIT SERVICES. School District of Lancaster. February 9, 2015
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1 REQUEST FOR PROPOSAL (RFP) #3512 AUDIT SERVICES School District of Lancaster February 9, 2015 School District of Lancaster RFP 3512 Page 1 of 9 Rev 1/28/15
2 About School District of Lancaster Established in 1836, the School District of Lancaster is the second oldest district in the Commonwealth of Pennsylvania. The School District of Lancaster serves a diverse population of approximately 11,300 students: 59.2% Hispanic, 17.9% African American, 14.4% Caucasian, and 8.5% Asian/other. The District's twelve elementary schools, one K-8 school, four middle schools, one high school campus and two alternative schools are home to approximately 1,585 staff members, including administrators, teachers, counselors, and support staff. The nine-member Board of Directors governs District activities with a total operating budget of $185 million for the school year. Invitation for Proposal The School District of Lancaster is soliciting proposals from independent certified public accounting firms to provide auditing services to the school district for the school s fiscal years ending June 30, 2015, 2016, and Schedule for Review and Approval RFP Release Date: February 9, 2015 Deadline for Inquiries: February 20, 2015 Deadline for Written Proposals: March 6, 3:00 p.m. Review Period: March 9-20, 2015 Scheduled Board Approval Date: April 21, 2015 Vendors may request a copy of this RFP from Kimberly Reynolds at: kjreynolds@lancaster.k12.pa.us or obtain a copy from our District website at under: Our District\Financial Information\Bids and Proposals\RFP 3512 Audit Services. Vendors may also request clarifications to the RFP requirements and/or specifications on or by February 20, 2015 via to: kjreynolds@lancaster.k12.pa.us. Revisions, amendments, supplemental clarifying data and information to this RFP will be posted on the aforementioned website. Any error, conflict, discrepancy, omission or deficiency in this RFP must be reported immediately. Vendor proposals shall be predicated by the terms and conditions of this RFP and any supplements or revisions thereof. Proposals are to be mailed to: Kimberly Reynolds, Business Manager School District of Lancaster 1020 Lehigh Avenue Lancaster, PA and received by 3:00 p.m. on March 6, 2015 prevailing time. Proposals should clearly indicate RFP 3512 AUDIT SERVICES PROPOSAL on School District of Lancaster RFP 3512 Page 2 of 9 Rev 1/28/15
3 the outside of the envelope. Faxed or ed proposals will not be accepted. No proposal may be withdrawn before 90 days after the date of the opening of the proposals. Tentative plans call for the School District of Lancaster Board of School Directors to review the proposals and to take action to award a contract at its regular meeting on Tuesday, April 21, The School District of Lancaster Board of School Directors reserves the right to reject any or all proposals and to waive, at its discretion, any irregularities, mistakes, omissions, or informalities relative thereto. Specifications for Proposal Term of Agreement The School District of Lancaster fiscal year ends on June 30. Records necessary to conduct the year-end audit will not be available for final review until October 1 of each year. The audit fieldwork must be completed by October 31 of each year. The School District of Lancaster is requesting proposals to provide auditing services for the School District s fiscal years , , and Qualifications Eligible accounting firms shall meet the following specifications: Shall have no obligations or interests that conflict with the best interests of School District of Lancaster; Shall have successfully complied and be currently in conformity with the membership requirements of the Private Companies Practice Section of the American Institute of Certified Public Accountants quality control program; (or comparable quality control program); Shall have the professional proficiency to provide the services requested herein; Shall have credible experience auditing Pennsylvania school districts; Shall be familiar with the Pennsylvania School Systems Manual of Accounting and Related Financial Procedures, the PA Public School Code of 1949, as amended; and with the Federal and State Single Audit Act regulations and guidelines and recent bulletins and directives related to school finance issued by the Pennsylvania Department of Education (PDE) and the PA Auditor General s Office; Shall be knowledgeable of the regulations and accounting statements of the Governmental Accounting Standards Board; Shall have at least five Pennsylvania public school districts as current clients; School District of Lancaster RFP 3512 Page 3 of 9 Rev 1/28/15
4 Shall have experience with Comprehensive Annual Financial Reports (CAFR); Shall have experience in Single Audit requirements including the American Recovery Reinvestment Act (ARRA) funds Scope of Audit The District funds to be audited are as follows: General Fund Special Revenue Funds: o Capital Reserve Fund o Athletic Fund Capital Project Fund Debt Service Fund Enterprise Fund (Cafeteria) Trust and Agency Funds: o Student Activity Funds o Scholarship Funds o GASB Pension Reporting General Long-Term Debt Accounts General Fixed Asset Accounts Single Audit work to include American Recovery Reinvestment Act (ARRA)funds - Title I, Title I Neglected and Delinquent, IDEA, Title II, Part D, Title III Twenty-First Century Community Learning Centers, National School Lunch, Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR-UP), Medical Assistance Program and other various Federal programs. The auditor shall observe the adequacy of the District s systems of internal control. Any material weaknesses shall be noted and appropriate recommendations shall be reviewed with the Chief Financial Officer and the Superintendent of Schools and shall be included in a Management Letter to the School District of Lancaster Board of School Directors. The audit shall be completed no later than November 30 of each year with a School Board presentation of final audit at the December Committee of the Whole Work Session. The District shall reserve the right to request copies of any of the working papers prepared in conjunction with the audit engagement at no additional cost to the District. Such working papers shall be provided on a timely basis, regardless of the status of any current agreements between the District and the audit firm. The audit shall comply with the Single Audit Act implemented by the Federal Office of Management and Budget in accordance with circular A-133 and any subsequent announcements, as applicable. Audit confirmations (legal, financial, and others) will be prepared by the District in School District of Lancaster RFP 3512 Page 4 of 9 Rev 1/28/15
5 final form and mailing costs will be borne by the District. The proposed fee should take into consideration that the District prepares its own financial statements, including the footnotes and schedule of expenditures for federal awards. Audit Standards The examination of the District s records shall be done in accordance with generally accepted auditing standards, as adopted by the AICPA and GASB Statement No. 1, Codification of Auditing Standards and Procedures, for state and local governments. Form of Proposal Proposals shall be presented as follows: 1. Brief statement of understanding of the work to be done and a positive commitment to perform the work within the specified time period. 2. Presentation of names of the individuals who will be authorized to make representations on behalf of the audit firm, including title, address, and telephone number of each. 3. Explanation of the size and structure of your firm. 4. Listing of the number of people, individual experience level, and qualifications of the individuals that are expected to conduct the audit for the District. A resumé for each individual is suggested. Describe the experience of the senior auditor who will be assigned to the audit and the expected percentage of time that individual will be on-site. 5. Reference list of public school district audit clients including the types of services performed and the length of service with each district. 6. The level of the firm s technical experience in preparing school audit reports. 7. The firm s approach to performing the audit to include at least the following: (i) type of audit program used, (ii) use of statistical sampling, (iii) organization of the audit team and estimate of total job hours, (iv) management letter, (v) assistance expected from District staff, and (vi) timeline for conducting the audit. 8. The fixed fee quote for the audit for the , , and the school years. 9. The fixed fee quote should be broken down into two sections as follows: Base Audit Fee and Single Audit Fee. The District understands that more work is sometimes involved in the auditing of multiple federal programs. Therefore, the District is requesting that the Single Audit Fee be broken down based on the number of programs tested on an annual basis. For example: School District of Lancaster RFP 3512 Page 5 of 9 Rev 1/28/15
6 # of Programs Audited Fee Fee Fee 2 $X,XXX $X,XXX $X,XXX 3-5 $X,XXX $X,XXX $X,XXX More than 5 $X,XXX $X,XXX $X,XXX The audit proposal may not be withdrawn for a period of ninety (90) days from the date the proposals are opened. A response form is attached to this Request for Proposal for Auditing Services. Evaluation of Proposal Proposals will be evaluated using the following criteria: Auditing experience with Pennsylvania public school districts Technical experience of the audit firm The experience and professional qualifications of the audit team Cost of the auditing services Other supportive considerations as documented by the firm submitting the proposal Additional Information The District will not be liable for any cost incurred in the preparation of proposals. The submission of a proposal shall be prima facie evidence that the firm submitting the proposal has full knowledge of the scope, nature, quantity and quality of work to be performed; the detailed requirements of the specifications; and the conditions under which the work is to be performed. The firm submitting the proposal shall furnish the District such additional information as the District may reasonably require. The District will not be liable and will not pay for any costs not included in the proposal. Specifically, it will not be subject to any fees for extra work. The auditing firm will be responsive to the District s requests for miscellaneous payroll tax form processing information and other general accounting and tax matters throughout the year at no additional cost to the District. The District reserves the right to conduct interviews of any or all firms submitting proposals prior to selection. The District will not be liable for any School District of Lancaster RFP 3512 Page 6 of 9 Rev 1/28/15
7 costs incurred by the firm in connection with such interview (i.e., travel, reproduction costs etc.). Interviews will be conducted within 30 days of RFP submission deadline if necessary. The District reserves the right to conduct pre-contract negotiations with any potential firms that have submitted proposals. The District reserves the right to reject any and all proposals. It retains sole discretion to accept the proposal it considers most favorable to its interest, and the right to waive minor irregularities in the proposals. The District further reserves the right to reject all proposals and seek new proposals when such a process is in the best interest of the District. The District audit reports and annual financial reports for the past two years may be viewed at School District of Lancaster RFP 3512 Page 7 of 9 Rev 1/28/15
8 SCHOOL DISTRICT OF LANCASTER RFP 3512 Audit Services For the Fiscal Years , , Response Form (Return this form as the Cover Page of your Auditing Services Proposal) Name of Audit Firm Address Contact Person Telephone Number Address Web Site Address FIRST, the undersigned have carefully examined the Request for Proposal (RFP) #3512 Audit Services in accordance with the specifications of the proposal and agree to furnish and perform the specified audit services for the School District of Lancaster (the District ) within the time limits specified for the amounts indicated below. SECOND, the following quotation prices are listed as firm for a period of ninety (90) days after the due date of this Request for Proposal. THIRD, the audit firm agrees to maintain a record of their percent of audit time by Federal Program as a percent of total audit time, so that the cost of the audit can be allocated to various Federal Programs. FOURTH, if the audit firm in addition to the specified audit services performs services, the audit firm will supply time records and service descriptions to validate any invoiced charges. FIFTH, the audit firm agrees to do the auditing services for the amounts quoted as follows: School District of Lancaster RFP 3512 Page 8 of 9 Rev 1/28/15
9 Base Fee $ $ $ Single Audit Fee $ $ $ 2 Programs Audited $ $ $ 3-5 Programs Audited $ $ $ More than 5 Programs $ $ $ SIXTH, the audit firm s staffing fee structure, hourly rates and other costs will be as follows: Signature Date Printed Name Title or Office School District of Lancaster RFP 3512 Page 9 of 9 Rev 1/28/15
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