City of Sycamore 308 West State Street Sycamore, Illinois 60178 Request for Proposals To Perform the City s Annual Independent Audit Fiscal Year 2016 Proposals Due: 11AM., March 4, 2016
Introduction Proposals are invited from qualified professional accounting firms to perform an audit of the City's combined financial statements including those of the pension trust funds, for the fiscal year ended April 30, 2016. Service Objective The City of Sycamore adopted a modified accrual basis of accounting in April 1999 and fully implemented GASB 34 in fiscal year 2004. The services should include: 1) An audit of the combined financial statements performed in accordance with Government Auditing Standards issued by the Comptroller General of the United States. 2) An independent auditor s report on compliance with requirements applicable to each major program and on internal control over compliance in accordance with OMB Circular A-133, if applicable. 3) An independent auditor s report on compliance and on internal control over financial reporting based on an audit of the combined financial statements performed in accordance with Government Auditing Standards. 4) A management letter. 5) Submittal of the appropriate reports to the State of Illinois Office of the Comptroller, Department of Insurance, Department of Commerce and Community Affairs, and Single Audit Clearinghouse. Time for Completion The audit shall be conducted and prepared during the summer 2016. The auditor s reports shall be issued in September 2016. Scope of Work and Service In the preparation of a proposal, the consultant should provide the services noted below as well as describe any additional services the firm believes to be beneficial in meeting the City s objectives. 1. Government-wide Financial Statements. The firm shall prepare the following: All the necessary statements and schedules in accordance with GASB 34; Statement of Net Assets; Statement of Activities; All statements that need to include the Sycamore Public Library as a discretely-presented component unit. The Sycamore Public Library issues their own financial statements; and
2. Fund Financial Statements. The firm shall prepare the following: All the necessary statements and schedules in accordance with GASB 34; Balance Sheet-Governmental Funds; Reconciliation of Fund Balance to Net Assets of Governmental Activities; Statement of Activities; A combined statement of revenue collected, expenditures paid, and changes in fund balances for all government fund types; A combined statement of revenues collected, expenditures paid, and changes in fund balances (actual and budget) for all government fund types on a budgetary cash basis with a reconciliation to modified accrual basis; A Statement of Net Assets-Proprietary Funds; A statement of revenues collected, expenditures paid, and changes in retained earnings/fund balances (actual and budget) for the Proprietary Funds; A statement of cash flows for the Proprietary Funds; Statement of Net Assets-Fiduciary Funds; A statement of changes in plan net assets for the Fiduciary funds; A Summary of Significant Accounting Policies; Notes to the aforementioned statements; and 3. Supplemental Financial Information. The firm shall prepare the following: Combining Balance Sheet Non-major governmental funds; A schedule of the revenues collected, expenditures paid and changes in fund balance (actual and budget) for the General Fund; A schedule showing the combining statements of assets, liabilities and fund balances arising from cash transactions for the Special Revenue Funds; Separate schedules showing the combining statement of the revenues collected, expenditures paid and changes in fund balance (actual and budget) for the Special Revenue Funds, including but not limited to the Hotel/Motel Tax, Foreign Fire Insurance, and Impact fee Funds; Separate schedules showing the statement of revenue collected, expenditures paid and changes in fund balance for the Capital funds, including but not limited to the Capital Assistance Fund, Motor Fuel Tax Fund, Road & Bridge Fund and the Street Maintenance Fund; A schedule showing the statement of revenues collected, expenditures paid, and changes in retained earnings (actual and budget) for the Water and Sewer funds; Separate schedules showing the combining statement of net assets for the Fire and Police Pension Funds; A schedule showing assessed valuations, rates, extensions and collections. A schedule of funding progress for the Fire and Police Pension Funds; and
4. Federal Single Audit reports. Please list the single audit cost separately. If required, the firm shall prepare the following: A schedule of federal expenditures; The independent auditor s report of compliance with requirements applicable to each major program and on internal control over compliance in accordance with OMB circular A-133; The independent auditor s report on compliance and on internal control over financial reporting based on an audit of combined financial statements performed in accordance with Government Auditing Standards; A schedule of findings and questioned costs; and A management letter. 5. Audit Journal Entries. In addition to regular audit entries, the firm will prepare the following: Fixed assets: the City prepares additions and deletions for the list maintained by the auditors. Document Format The firm should provide twenty-five (25) spiral-bound copies of the final document along with one unbound copy suitable for future reproduction and distribution by the City. The firm should also provide an electronic copy in searchable PDF format. Proposal Format The proposal should be printed on letter size paper, single-sided on the right hand page. Charts may be appended as exhibits. Part A: Narrative The narrative section should 1) Adequately address the project objective and the scope of services; 2) Describe the professional firm s team and their qualifications, including resumes of personnel directly involved in the project. An organizational chart revealing the firm s size and the place of the team members within the organization is also desirable; 3) Provide a list of current and recent projects that demonstrate the team s knowledge of applicable Illinois law and procedures and the requirements of public auditing; 4) Provide a detailed scope of services. The City s Request for proposals identifies the general scope of work and services that are considered necessary to meet the City s objectives; and 5) Provide a schedule indicating the estimated time for completion of the project.
Part B: Fee This part of the proposal should be sealed and separate from Part A. It will include the firm s detailed cost estimate to furnish the services outlined in the proposal. Part B will not be the primary factor in the evaluation of proposals leading to the selection of the top candidate, but will be an influential factor. The proposed fee will be considered a basis for negotiation over the final scope of services. Part C: Term The term of the proposal is three (3) years. Selection of Firm The City will principally evaluate the proposals according to the quality and depth of the experience and level of knowledge of the interested firms, as well as their familiarity with the applicable law and procedures. If the City is unsuccessful in reaching a contract agreement with the top-rated professional firm, negotiations will cease and the second-rated professional firm will be invited to negotiate with the City. The City of Sycamore reserves the right to reject any and all proposals and to solicit additional proposals. The City Manager will make a recommendation to the Sycamore City Council in March 2016. Submission Requirements Four (4) copies of the proposal and separate fee quote should be submitted to: Adam Orton City Treasurer / Assistant to the City Manager City of Sycamore 308 West State Street Sycamore, IL 60178 Phone: (815) 895-0918 Fax: (815) 895-1760