REQUEST FOR PROPOSAL FOR AUDIT SERVICES Warren County Water District Issue Date: August 15, 2017 Due Date: September 8, 2017, 4:00 pm CDT
R e q u e s t f o r P r o p o s a l P a g e 2 TABLE OF CONTENTS Introduction and Background Page 3 RFP Schedule Page 3 Contact Information Page 3 Guidelines for Response Page 4 Terms of Engagement Page 4 Submittal Requirements Page 6 Evaluation Criteria Page 6
R e q u e s t f o r P r o p o s a l P a g e 3 INTRODUCTION AND BACKGROUND Warren County Water District (WCWD) is Kentucky s second largest water district and provides water and sewer service to a blend of residential, agricultural, commercial and industrial customers. WCWD serves over 28,000 water customers with an average of 7.1 million gallons of water distributed daily through a network of 1,142 miles of pipeline in a 526 square- mile area. WCWD also collects and disposes wastewater from over 6,100 customers. Through a joint operations agreement, WCWD also operates and manages Butler County Water System, Inc. and Simpson County Water District. Additional information about WCWD can be found at www.warrenwater.com. The purpose of this Request for Proposal (RFP) is to: Solicit responses from licensed certified public accounting firms to audit WCWD s financial statements for two (2) years with the option of auditing its financial statements for the subsequent two (2) fiscal years. Execute an Engagement Letter between both parties within 30 days after notification of the selected Firm. Enter into a contractual agreement between WCWD and the selected Firm based on the results from this solicitation and successful negotiations. RFP SCHEDULE Event Date RFP Issuance August 15, 2017 Questions from Firms are due September 1, 2017 Proposals are due September 8, 2017 by 4:00 pm CDT Interviews with selected Firms September 11 22, 2017 Selection of Firm September 26, 2017 CONTACT INFORMATION Questions regarding this RFP should be submitted in writing by letter, fax, or email and directed to: Jeff Peeples Manager of Finance and Administration Warren County Water District 523 U.S. Highway 31W Bypass P.O. Box 10180 Bowling Green, KY 42102 Fax: (270) 842-8360 Email: jeffp@warrenwater.com
R e q u e s t f o r P r o p o s a l P a g e 4 GUIDELINES FOR RESPONSE Guidelines have been established for the purpose of clarification to assure full understanding of the requirements of the RFP and to ensure a fair and equitable evaluation process of all Firms. There is no expressed or implied obligation for WCWD to reimburse responding Firms for any expenses incurred in preparing proposals in response to this RFP. Questions and inquiries related to this RFP should be submitted by the close of business on September 1, 2017. WCWD reserves the right to reject any or all proposals submitted or to waive any immaterial technicalities and to accept the proposal that provided the greatest value to WCWD. Submission of proposal indicates acceptance by the Firm to the terms and conditions contained in this RFP, unless clearly and specifically noted in the submitted proposal and confirmed in the contract between WCWD and the Firm. Submit one (1) electronic copy saved on a USB flash drive and four (4) paper copies no later than 4:00 p.m. CDT, September 8, 2017 to: Jeff Peeples Manager of Finance & Administration Warren County Water District 523 U.S. Highway 31W Bypass P.O. Box 10180 Bowling Green, KY 42102 Proposals received after 4:00 p.m. CDT will not be accepted. The Firm accepts all risks of late delivery of mailed proposals regardless of fault. WCWD reserves the right to request additional information or clarifications from responding Firms or to allow corrections of errors or omissions. TERMS OF ENGAGEMENT A two (2) year contract for fiscal years ending December 31, 2017 and December 31, 2018 is requested with a renewal option of auditing its financial statements for the subsequent two (2) fiscal years. 1. The audit must be conducted in accordance with Generally Accepted Accounting Principles and Government Auditing Standards. 2. The auditor is expected to observe the warehouse inventory count that will be scheduled in mid-december 2017.
R e q u e s t f o r P r o p o s a l P a g e 5 3. Preliminary planning, review of procedures, and review of internal controls can begin in January 2018. Year-end field work should begin in the first week in March 2018 and be completed by March 31st. 4. The auditor is expected to advise appropriate WCWD accounting staff on the applicability of accounting and reporting standards (i.e. GASB statements, etc.), and day-to-day questions concerning payroll, internal control procedures, and accounting issues. As other needs arise during the year, certain inquiries and requests for assistance from the auditor may be made. This service should be responded to as part of the cost proposal. However, in cases where services requested would require a more in-depth scope with greater time requirements, a separate contract may be considered for such services. 5. WCWD accounting staff will be responsible for work papers and schedules as jointly decided upon prior to the audit. 6. WCWD accounting staff will be responsible for the preparation of the Management Discussion and Analysis (MD&A). 7. WCWD accounting staff will be responsible for filing the Annual Report with the Kentucky Public Service Commission. 8. The Manager of Finance will expect the following: a listing of requested information for the audit at a pre-planning meeting; periodic meetings during the audit as necessary; and an exit meeting prior to the completion of fieldwork. 9. The audit report should include the independent auditor s report, MD&A, basic financial statements, required supplemental information, other supplementary reporting, and the independent auditor s report on internal controls. 10. Other supplementary reporting should include the following: schedule of operating expenses in the format required by the Kentucky Public Service Commission, statement of net position and statement of revenues, expenses and changes in net position stated separately for the Water Division and the Sewer Division. 11. Guidance will be required for new note disclosures; all adopted GASB s (GASB 34,45,78) as well as future GASB implementations, and other reporting requirements. 12. Filing of the Office of Management and Budget (OMB) Circular A-133 compliance supplement for expenditure of federal funds. An OMB filing for year 2017 is not anticipated. 13. A draft of the audit report will be submitted to the Manager of Finance for review. The draft should be submitted in time to allow sufficient review and corrections. The timing of the draft should insure completion of the audit report no later than April 11th. 14. An audit partner will be available to present the audit report to the WCWD Board of Commissioners at the meeting scheduled for April 24, 2018. The board meetings are normally the fourth Tuesday of the month and begin at 4:00 pm CDT.
R e q u e s t f o r P r o p o s a l P a g e 6 SUBMITTAL REQUIREMENTS Each response should include the following: 1. Provide an executive summary that outlines your firm s experience, methodology, scope of services, and deliverables. 2. Provide a listing of the Firm s staff that will be involved in the audit. Describe their roles and provide a brief description of their professional experience in governmental auditing. The description should include specific experience with water utilities and governmental entities. 3. Provide a reference list that includes names, office addresses, email addresses, and telephone numbers of current and prior water utility and governmental clients. 4. Outline the assistance expected from WCWD s staff if other than that outlined in the RFP. 5. Provide a tentative schedule for completing the audit within the specified deadlines of this RFP. 6. Provide a two (2) year cost proposal listing the cost separately for each of the two years. EVALUATION CRITERIA WCWD reserves the right to reject any or all responses and to waive any informality or irregularity in the responses submitted and to select the Firm which best serves the interest of WCWD. The Firm will be selected based on professional competence and experience using the following criteria: 1. The auditor shall be a Certified Public Accountant licensed to practice within the State of Kentucky. 2. The auditor shall understand the needs of WCWD and its future plans. 3. The auditor s approach shall be thorough, comprehensive, and tailored to WCWD s needs. 4. The auditor shall have a thorough understanding of GASB statements that apply specifically to WCWD s financial reporting and disclosures. 5. The Firm s staff assigned to the audit should have experience auditing government entities including water utilities. 6. The Firm shall have appropriate resources available to apply to the audit engagement.
R e q u e s t f o r P r o p o s a l P a g e 7 7. The fees proposed by the Firm shall be reasonable for the type and quality of services the Firm will be providing. A Firm will not be selected solely based on fees since auditing is a professional service that should not be purchased strictly based on lowest cost. THIS SPACE INTENTIONALLY LEFT BLANK