PART I ADDITIONS, DELETIONS, CLARIFICATIONS AND MODIFICATIONS TO THE BID

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1 Addendum No. 1 To: Description: All Prospective Bidders Auditing and Tax Services Stockton University Galloway, New Jersey Bid Number: B Date: January 27, 2017 Pursuant to N.J.S.A. 18A:64 65(b), this Addendum is hereby issued for the purpose of amending certain requirements of the bid documents dated January 20th, 2017 and as noted hereinafter. This Addendum is hereby made part of and incorporated in full force as part of, and as if originally included in the Contract Documents. Unless specifically noted or specified hereinafter, all work shall comply with the applicable provisions of the Contract Documents. It is the sole responsibility of the bidder to be knowledgeable of all of the additions, deletions, clarifications and modifications to the RFP relative to this RFP as set forth in all addenda. Bidders should acknowledge receipt of this addendum on the RFP Cover Sheet. PART I ADDITIONS, DELETIONS, CLARIFICATIONS AND MODIFICATIONS TO THE BID Section 1.2 Background See the following link for the Financial Statements and 990 s. PART II QUESTIONS AND ANSWERS Q1. Are the 2016 financial statements completed? A1. Yes Q2. Is the current year Single Audit engagement completed? A2. Yes Q3. Were there any findings? A3. No

2 Page 2 of 5 Q4. How long has Grant Thornton performed the audit engagement? A4. FY15 & FY16 Q5. What are the current fees for each of the engagements? A5. This information can be obtained by submitting an OPRA request which can be found on the Office Q6. Does management prepare the financial statements? A6. Yes Q7. Has GT proposed any audit adjustments? If so, describe the adjustments and the dollar magnitude. A7. No, there were not any. Q8. How long does fieldwork typically take? A8. Six weeks Q9. How many staff in the field? A9. On site auditors varied Q10. Does management prepare all audit schedules necessary to complete the engagement? A10. Yes, accounting prepares the financial statements, footnotes, and MD&A and provides all account reconciliations and analysis. The Auditors have access to the accounting system to view supporting documents electronically. Q11. What is the reason the University has issued the RFP for audit services? A11. The current contract term has ended. Q12. Have there been any disagreements with the current auditor? A12. No Q13. Are audits of all component units done concurrently (3.1.2)? A13. Yes Q14. How many auditors were at the University during field work and for what time period (3.1.2)? A14. Refer to Answers 8 and 9 above. Q15. Could you provide us with the audit and tax fees by entity for fiscal year ending June 30, 2016? 2

3 Page 3 of 5 A15. This information can be obtained by submitting an OPRA request which can be found on the Office Q16. Could you provide copies of the management letters issued for the year ending June 30, 2016? A16. This information can be obtained by submitting an OPRA request which can be found on the Office Q17. Could you forward the most recent financial statement for the component units. The link is not working to retrieve those documents. A17. Please refer to the following link: Q18. What is the reason for the RFP at this time? A18. The current contract term has ended. Q19. We noticed that the audit firm changed in 2015 compared to the successful bidder for the 2014 audit. Can you provide any background or reason for the change? A19. Their timeliness of deliverables. Q20. How many firms have been invited to propose? A20. This is a public procurement process Q21. Is the current auditor invited to re-propose? A21. This is a public procurement process. Audit Services Section 3.1 Pages 8 and 9: Q22. Please provide a copy of the 2016 audited financial statements and single audit for the University and each component unit. A22. Refer to Answer 17. Q23. Do you need separate audit reports for the component units? A23.Yes Q24. Does Stockton management draft the financial statements? A24. Yes Q25. Do you expect any new major programs under the Uniform Guidance during fiscal year 2017? A24. No Q26. How many major programs do you expect to require an audit of for fiscal year 2017? A26. See A133 Audit Refer to Answer 17. 3

4 Page 4 of 5 Q27. Does the University receive audited financial statements from the PERS and PFRS pensions? If so, what is the typical timing of receipt (in order to allow for proper accounting and reporting in the June 30 year-end financial statements)? A27. Yes, they are posted on State of NJ division of pension website timely, see the link below: Tax Services Section 3.2 Page 10 (Please provide responses for the University and for each component part if different): Q28. What is important to you in your tax service team? A28. Timely submission, communication, professional and knowledgeable staff. Q29. What are they key decision factors you will be weighing in making your decision? A29. Please refer to Section of the RFP. Q30. Are there currently any pain points related to the tax services? A30. No Q31. If not, a general understanding of the prior 990 process and number of people involved in the compliance function would be helpful. A31. Information is provided to firm, the return prepared by firm, any questions/inquiries are responded to prior to finalizing with 1-2 staff members. Q32. Pursuant to Attachment B Forms 990 would be prepared for Stockton University, Stockton Affiliated Services Inc., Stockton ARTP, and Stockton Foundation; however, based on prior filings the University had no Form 990 filing requirement as a governmental component unit of the state. Has there been a change to the organizational structure? We assume the University is not required to file a 990 but please confirm. A32. The University is not required to file a Form 990. Q33. If copies of the most recent 2015 tax returns are available, please provide a copy of the most recently filed Form 990s & 990-Ts or drafts for each entity. A33. Refer to Answer 17. Q34. How does the University and/or its component parts handle their annual distribution of Conflict of Interest Statements? A34. Via sent annually Q35. Has the University and/or its component parts been audited by the IRS recently? A35. No Q36. How many alternative investments (i.e. private equity, hedge funds, etc.) are in each of the entities investment portfolio? A36. The University has 7, The Foundation has 1. 4

5 Page 5 of 5 Q37. State Tax Filings Please confirm, how many state unrelated business income tax returns are you currently filing? A37. None Q38. We understand New Jersey does not tax unrelated business income but please confirm if you are filing in any other states at this time. A39. No other states beside New Jersey. Q40. Do you handle the New Jersey Annual Report Tax Filings Internally? Attachment B did not include so we wanted to confirm. A40. Yes Q41. Do you handle all the state solicitation filings internally? A41. Yes. Q42. We note that the Foundation 990 pulled from GuideStar notes license/registration in all 50 states. Is the foundation active in all of these states? A42. Yes. This is not part of scope of work. Q43. International Tax Matters & Filings a. With the FY17 IRS Workplan focused on International Issues, including the oversight on funds spent outside the U.S., what has the University done to ensure compliance? b. Does the University file the Foreign Bank Account Reporting filings (FinCen 114) internally or is part of the scope of the tax engagement? If part of the tax engagement, please provide number of FinCen 114 forms required to be filed. c. Please provide number of Form 926s filed (average). d. Please provide number of Form 5471 required to be filed (average). e. Please provide number of Form 8865s (average). f. Please provide number of Form 8621 filed (average). Further, has the filing of the 8621s been reviewed recently? Typically, tax exempt entities are not required to file. A43. This is not part of the scope of work. Q44. Does the University have a 457(f) Compensation Plan document (there were none reported in the audited financial statements) but if yes if yes, has the University reviewed recently due to the final IRS regulations? A44. Yes, IRS regulations are proposed. Q45. Any assistance needed with any potential employment, property, unclaimed property and sales tax returns? A45. No 5