WEST VALLEY SANITATION DISTRICT

Transcription

1 WEST VALLEY SANITATION DISTRICT Request for Proposal (RFP) for Independent External Audit Services RFP #: FIN Schedule of Key Events: RFP Release Date: April 14, 2015 Written Questions Due: 4:00 P.M. Pacific Standard Time, April 23, 2015 District s Response to Written Questions: May 1, 2015 Proposal Due Date: No later than 4:00 P.M. Pacific Standard Time on May 8, 2015 Anticipated Contract Start Date: After July 1, 2015

2 1. INTRODUCTION West Valley Sanitation District of Santa Clara County (District) invites qualified firms of certified public accountants, who are licensed to practice in the State of California, to submit proposals for the performance of an examination of its financial statements for a three (3) year period beginning July 1, 2014 through June 30, 2017 with an option to extend for an additional three (3) years thereafter, subject to the mutual satisfaction of both parties. The purpose of the examination is to express an opinion on the fairness of the District s financial statements in conformity with generally accepted accounting principles. 2. GENERAL INFORMATION The District was formed in 1948 under the provisions of the California County Sanitation District Act. West Valley Sanitation District provides sewer collection services for the City of Campbell, Town of Los Gatos, City of Monte Sereno, a majority of the City of Saratoga, and the intervening unincorporated areas of Santa Clara County to the west of these cities. The five member Board of Directors is comprised of one governing member from each of the four cities served by the District and a County Board of Supervisors appointed to be on the District s Board. The District s mission statement is To protect public health & the environment for the communities it serves through the safe, reliable, & cost effective collection & conveyance of wastewater for the treatment at San Jose/Santa Clara Regional Wastewater Facility. Today, the District serves a population of approximately 109,000 over an encompass area of 28.3 square miles. Wastewater is collected and conveyed to the San Jose/Santa Clara Regional Wastewater Facility in Alviso. The District s collection system is considered to be medium size. The District employs approximately 28.5 full time equivalents in 3 departments with an annual operating budget of $26 million. The District s fiscal year begins on July 1 and ends on June 30 of the following year and currently utilizes Tyler Incode V.X as its financial system. The District is the recipient of Special District Leadership Foundation s District Transparency Certificate of Excellence and the District does not plan to participate in the Certificate of Achievement for Excellence in Financial Reporting Program during this contract period. The District is a participant of the California Public Employees Retirement System (CalPERS) and contributes to the multi employer plan. Additionally, the District s post employment benefits are with the California Employer s Retirement Benefit Trust. Copies of the budget and annual report can be found at 3. DEFINITIONS Agreement means contract signed between the Consultant and the District. Consultant means the entity awarded the contract by the District. District West Valley Sanitation District of Santa Clara County. Fiscal year means a period the District uses for accounting purposes, which starts July 1 and ends on June 30 of the subsequent year. Proposal means the Proposer s best and final response to this RFP.

3 Proposer means the firm responding to this RFP. RFP means request for proposal. Successful Proposal means the proposal submitted with the most favorable proposal based on the evaluation criteria. 4. DETAILED SPECIFICATIONS 4.1 Scope of Work and Deliverables Financial Statement Audit The Consultant agrees to conduct a financial audit of the District s financial statements in compliance with generally accepted accounting principles for fiscal years ending June 30, 2015 through June 30, 2017 and express an opinion on the fairness of the overall presentation of financial statements. The audit is to be performed in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. The examination includes examining transactions and accounts that support the amounts in the financial statements and includes an overall view of the District s financial position. In addition, such audit procedures should be adequate to determine whether the District financials and operations were conducted in compliance with legal and regulatory requirements and the District s policies and procedures. Following the completion of the audit of the fiscal year s financial statements, the Consultant is to provide: (i) The financial statements a) Statement of Net Position b) Statement of Revenues, Expenses, and Changes in Net Position c) Statement of Cash Flows (ii) Notes and supplemental schedules presented in the financial statement Management Letter A management letter and any significant findings will be issued for each year audited. The Consultant shall provide a written report of communications and findings no later than the last Monday of October for the audit of the previous fiscal year Review of Internal Controls The Consultant is required to obtain a clear understanding of the District operations, review internal controls, assess fraud risk and identify potential areas of misstatements Copies of the Report 1 unbound hard copy and 1 clean PDF of all reports The Consultant will present the results of the audit to the District Board of Directors and address questions presented at a regular Board of Directors meeting. 5. OTHER REQUIREMENTS 5.1 Additional Services The District may determine that additional services are necessary and may contract with the Consultant to perform those services. All additional services shall be documented and approved by the District Manager and Engineer or Board of Directors. The fee for additional services shall be negotiated separately at the time of the engagement.

4 5.2 Time Requirements The District will have all records prepared for the audit in a timely manner in order to meet reporting deadlines. Anticipated fieldwork should not commence prior to the third Monday in August for the audit of the previous fiscal year. The audit report and Management letter, in its final form, shall be given to the District no later than the last Monday of October for the audit of the previous fiscal year. 5.3 Required Notification The Consultant shall notify the District Manager and Engineer or designee immediately for any of the following reasons: change in completion date, discovery of possible violations of laws, discovery of the possibility of fraud, discovery of a material weakness in internal controls, or replacement of supervising and/or managing personnel assigned to the audit. 5.4 Replacement of personnel Changes to the supervising and/or managing personnel of the audit team during the audit period will require notification to the District. The replacement personnel shall have similar credentials and experience as the personnel replaced. The Consultant will be responsible for briefing all replacement personnel on District operations and the status of the work at no expense to the District. 5.5 Work papers All working papers and reports must be retained, at the Consultant s expense, for a minimum of five (5) years following completion of the audit. 6. SUBMISSION INSTRUCTIONS 6.1 Format Proposals should be prepared using a font no smaller than 12 point, Times New Roman, on 8 ½ X11 paper. The maximum number of pages a proposal can have is 15 pages inclusive of resumes and references. 6.2 The proposal should address the points listed in the following order: A. Firm Profile B. Experience in providing similar auditing services to municipal agencies C. Audit methodology, approach, and use of information technology tools D. Scope of work E. Professional team assigned, role, experience and resume, including any subcontractors F. Copy of the latest peer review G. Provide a timeline for the audit H. Number of hours allocated to the engagement I. Proposed fee signed and date by an authorized official (See Exhibit A) J. At minimum, 3 references from previous or current municipal customers within the past 5 years 6.3 Sealed Proposals: Each respondent shall submit only one proposal. A proposal shall include one (1) manually signed original labeled as Original and three (3) photocopies of the completed proposals. They shall be submitted in a sealed envelope or package labeled RFP # FIN Proposals are to be delivered to the District office located at 100 E. Sunnyoaks Ave, Campbell, CA Faxed and copies will not be accepted.

5 7. EVALUATION A panel will evaluate the proposals based on, but not limited to the following factors (not necessarily in order of significance): A. Quality and experience with government engagements of comparable size and industry B. Scope of work C. Experience of the firm s assigned project team D. Completeness of the response to the RFP E. Cost of services F. Responses of the references G. Oral presentation (if required) As part of the evaluation and selection process, the District may elect to conduct oral interviews with one or more firms following the evaluation. 8. SCHEDULE Due Date RFP Release Date: April 14, 2015 Written Questions Due: 4:00 P.M. Pacific Standard Time, April 23, 2015 District s Response to Written Questions: 4:00 P.M. Pacific Standard Time, May 1, 2015 Proposal Due Date: 4:00 P.M. Pacific Standard Time on May 8, 2015 Interviews (if required): Week of May 18, 2015 and May 25, 2015 Notification of Intent to Award Contract: June 5, 2015 Anticipated Contract Start Date: After July 1, CONFLICT OF INTEREST All respondents must disclose any business relationships or family relations with any officer, board member, subcontractor, or employee of the District. 10. INVOICE FOR WORK The Proposer shall prepare an estimate of total hours required to complete the engagement along with milestones and payment percentages at the completion of each milestone. 11. SUBCONTRACTORS Where Proposers do not have the capability to perform the scope of work stated in the RFP in house, subcontracting may be permitted with prior knowledge and approval from the District. The subcontractor(s) must be able to perform quality work in a timely manner as it would have been if the Consultant completed the work. The names of any intended subcontractor(s) should be listed in the proposal. Any subcontractor employed by the Proposer is subject to the same requirements as the Proposer and the Proposer is required to notify such subcontractor.

6 12. INQUIRIES All inquiries related to this RFP are to be sent to Phuong Vu at or 100 E. Sunnyoaks Ave, Campbell, CA Inquiries by phone will not be accepted. 13. INSURANCE At the Consultant s cost, shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the performance of the services by the Consultant, its agents, representatives or employees. Consultant shall not commence work until certificates of insurance issued by Consultant s insurance carrier and countersigned by an authorized agent or representative of the insurance company has been provided to the District that it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work until evidence satisfactory to the District that the subcontractor has secured all insurance required under this section. The certificates shall show that the insurance will not be cancelled, altered, or reduced without at least thirty (30) days prior written notice to the District. The District requires worker s compensation and employer s liability insurance, comprehensive general liability insurance, comprehensive automobile insurance, professional insurance, and an umbrella policy Worker s Compensation and Employer s Liability Insurance: As required by the State of California with a limit of not less than $1,000,000 per accident for bodily injury and disease Comprehensive General Liability Insurance: To protect Consultant and District from any and all claims for damages or personal injuries, including death, which may be suffered by persons, or for damages to or destruction to the property of others, which may arise from the consultant s operations under this Agreement, which shall name the District as additional insured. Said insurance shall provide a minimum of $1,000,000 for personal injury, bodily injury, and property damage for each occurrence, and $2,000,000 general aggregate limit. Such insurance will insure Consultant and District from any and all claims arising from the following: 1) Personal injury; 2) Bodily injury; 3) Property damage; 4) Broad form property damage; 5) Independent contractors; 6) Blanket contractual liability Comprehensive Automobile Liability Insurance Consultant agrees to carry a Comprehensive Automobile Liability Policy providing bodily injury liability. This policy shall protect Consultant against all liability arising out of the use of owned or leased automobiles both passenger and commercial. Automobiles, trucks, and other vehicles and equipment (owned, not owned, or hired, licensed or unlicensed for road use) shall be covered under this policy. Limits of liability for Comprehensive Automobile Liability Insurance shall not be less than $2,000,000 combined single limit Professional Liability Insurance: To protect the Consultant against claims arising out of negligent acts, error, or omissions with minimum limits of $1,000,000 per claim and $2,000,000 in

7 aggregate. Covered Professional Services shall specifically include all work to be performed under the Agreement Umbrella Liability Insurance: The umbrella liability policy will have a minimum limit of $1,000,000 per occurrence. 14. INDEPENDENT CONTRACTOR The consultant, persons employed by the consultant are deemed independent contractors of the District. The persons used by Consultant to provide the work under any contract will not be considered employees of the District for any purposes. 15. DISQUALIFICATION A proposal from any firm will be disqualified when the Proposer violates any condition mentioned in this RFP. All items listed in Submission Instructions must be met. Any violation and/or omission of the submission requirements will qualify as automatic disqualification. 16. ACKNOWLEDGEMENTS By submitting a proposal, a proposing vendor acknowledges and agrees to each of the following: 16.1 Marketing and Announcements News releases of the award of contract for this RFP will not be permitted without prior approval from the District. The District s name shall only appear on, but not limited to, advertisements, promotions and customer lists with prior approval Acceptance of a Proposal Proposals submitted are offers only. The District reserves the right to accept the Proposal that is, in its judgement, the best and most favorable to the interests of the District The Proposer shall furnish the District such additional information as the District may reasonably require The District reserves the right to conduct personal interviews of any or all Proposers prior to selection. The District will not be liable for any costs incurred by the Proposer in connection with such interview (i.e., travel, lodge, meals, etc.) Commitment to Contract This RFP is not a commitment to contract with the Proposer, and any expenditures incurred by the Proposer in preparation and submission of the proposal shall not be reimbursed by the District nor does the District obligate itself with any action taken or cost incurred by Proposer in responding to this RFP. Further, the District reserves right to reject all proposals received and not award a contract.

8 EXHIBIT A NOT TO EXCEED PRICE FOR THE PROPOSED SERVICES SCHEDULE In accordance with the RFP for audit services issued by West Valley Sanitation District, the firm referenced below hereby submits the following proposal: Firm Name: Fiscal Year Ending June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 Amount Not to Exceed* *Amount not to exceed is inclusive of travel, lodging and meal expense. A breakdown can be provided with RFP. Staff Level Hourly Billing Rate Estimated Number of Hours Staff Auditor Senior Auditor Manager Partner Administrative Professional Other Estimated Charges Total I hereby certify that the undersigned is authorized to represent the firm stated above, and empowered to submit this bid, and if selected, authorized to enter into a contract with the District, for the services identified in the RFP. Signature: Printed Name: Title: Date: