RFP #18-008 Certified Public Accounting Services Addendum #1 Date issued and released, August 7, 2018 Correction to RFP #18-008: Please note that Oakland Affordable Housing Preservation Initiatives is removed from the list of entities on: Page 5. Section 2.1 Page 7. Section 2.2 Responses to Questions: The following questions were submitted by the deadline and are answered in this addendum. Please note that questions that were asked more than once have been consolidated. Question #1: Have there been any significant changes in your operations, programs or personnel recently or contemplated for the future that would impact the scope of services as compared to prior contracts for the same work? (Ex: changes in the audit process or those involved with the process, current year budget vs. prior year budget)? Answer #1: No significant changes have been made, or are planned, at this time. Question #2: As part of the audit process and/or reporting, will we be working with other entities or individuals other than OHA staff (such as other owners, property management company, etc.)? Answer #2: OHA staff will be the primary point of contact for the work. During the preparation of the audit and tax returns for the limited partnerships, which generally takes place in November through February, it is common for the auditors to work directly with third-party property management accounting and site staff. Question #3: What are the most challenging aspects of the audit process for OHA and specifically the accounting and finance team? Answer #3: The audits and tax returns for the limited partnerships have strict deadlines that are set by the investor limited partner. Drafts of both the audit and tax returns are due in mid-february and the final audits and tax returns are due the last week of February. 1
Question #4: Is there any specific expertise and advice the organization is looking for that may not be offered by its current provider? Answer #4: No. Question #5: What is management s and the Board s view on the desirability of transition to new auditors? Answer #5: The Board has requested staff re-bid all contracts every five years to ensure the organization receives required services for competitive fees. Question #6: How long has OHA been with the current provider? Answer #6: Five years. Question #7: Is the current provider bidding on this engagement? Answer #7: As a vendor registered with Oakland Housing Authority, the current provider was notified of this RFP and invited to submit a proposal. Question #8: We noticed in the RFP it states: Please note that the minimum qualifications to be considered for selection are a minimum of 5 years of experience in preparing audits and tax returns for low-income housing tax credit affordable housing owners for each account or auditor responsible for the work described in Section 2. Additionally, OHA will submit the name of the CPA Firm that the evaluation panel recommends for the contract award to its investor limited partners for their review and approval prior to finalizing its selection and commencing contract negotiations. Our firm is not a CPA firm yet more, a Finance and Accounting staffing firm. Our firm represents CPAs placing them on audit and tax based engagements and projects. We aren t a CPA firm per se however we represent CPAs. Is that a service that is of interest to you? If so, can you please give me an idea of approximately how many CPAs you are estimating you will need for this project? Answer #8: The Oakland Housing Authority is not interested in procuring a firm that represents and places CPAs. Question #9: We noted on the RFP that one of the entities, Oakland Affordable Housing Preservation Initiatives is indicated to be a non-profit entity but it s blank on page 5 under the tax Returns column. Please indicate if a tax filing is needed for this entity? I believe a federal and state filing is needed. Answer #9: No longer applicable. Please see Correction to RFP 18-008 Section above. 2
Question #10: Are the financial records of each of the entities maintained by the OHA staff or by 1 management company or several? Answer #10: Financial records for the limited partnerships are maintained by third-party property management companies. The financial records for the nonprofit entities and limited liability companies are maintained by OHA staff. Question #11: Does the OHA anticipate the level of service remaining the same for the entities the listed out in the RFP (i.e. audits remain audits; reviews remain reviews, etc.)? Answer #11: Yes. Question #12: When was the fieldwork conducted in the prior years for the entities? Was the fieldwork onsite or performed remotely? Answer #12: For the limited partnerships there is field work completed onsite in November, December or early January. Question #13: Does the OHA have additional affordable housing entities in the pipeline that may need services in the near future? Answer #13: Yes. Question #14: Per the RFP, cover page, it states that you are located on the first floor, but throughout the rest of the RFP it states second floor? Could you please clarify? Answer #14: The CCGS Department is located on the 2 nd floor at 1805 Harrison Street Oakland, CA 94612, but proposals will be received on the 1 st floor at 1805 Harrison Street. Question #15: Is it possible to receive PDF versions of the attachments versus scanned versions? Answer #15: PDF versions are not available. Question #16: Are the predecessor auditors allowed to bid on the current proposal for accounting, tax and audit services? Answer #16: Yes. 3
Question #17: Please provide the prior year fees charged separately for each of the following entities: a. Foothill Family Apartments, LP (audit and tax returns) b. Keller Housing Associates, LP (audit and tax returns) c. Tassafaronga Partners, LP (audit and tax returns) d. Tassafaronga Partners II, LP (audit and tax returns) e. Keller Housing Initiatives, Inc. (review and tax returns) f. Oakland Housing Initiatives, Inc. (review and tax returns) g. Tassafaronga Housing Corp (review and tax returns) h. OHA Coliseum LLC (tax return) i. OHA Development LLC (tax return) Answer #17: The OHA re-bids contracts every five years in order to ensure that the services it receives are obtained at a competitive price. In order to maintain the integrity of the competitive procurement process the OHA does not disclose current fees when requesting bids. Question #18: For the limited partnerships, is the timing and coordination of the audits communicated directly with the property management company? Answer #18: The timing and coordination of audits for the four limited partnerships are coordinated with the property management company with OHA staff assisting and acting as a liaison as needed. Question #19: What role/level of involvement does OHA have with respect to Foothill Family Apartments, LP, Keller Housing Associates, LP Tassafaronga Partners, LP and Tassafaronga Partners II, LP? Answer #19: a. Foothill Family Apartments, LP: OHA provides Asset Management Services to the managing general partner, Oakland Housing Initiatives Inc. b. Keller Housing Associates, LP: OHA provides Asset Management Services to the managing general partner, Keller Housing Initiatives Inc. c. Tassafaronga Partners, LP: The general partner, Tassafaronga Housing Corporation, is a controlled instrumentality of Oakland Housing Authority. d. Tassafaronga Partners II, LP: The general partner, Tassafaronga Housing Corporation, is a controlled instrumentality of Oakland Housing Authority. Question #20: What is the reason that OHA is going out to bid for the audit, review, and tax services for the respective entities? Answer #20: The OHA re-bids all contracts at least every five years in order to ensure the fees paid for required services are competitive. Question #21: For each of the entities that require an audit or review, are the auditors responsible for preparing the financial statements and notes? Answer #21: Yes. 4
Question #22: Per page 11 of the RFP, 1st paragraph, the following is articulated minimum qualifications to be considered for selection are a minimum of 5 years of experience in preparing audits and tax returns for low income housing tax credit affordable housing owners for each account or auditor responsible for the work described in Section 2. Is the auditor responsible for the work correlate to the engagement partner? Please provide some clarification. Answer #22: The accountant or auditor responsible for the work is the staff person assigned final responsibility for overseeing the preparation of each work product described in Section 2 and ensuring the accuracy of the work. Question #23: With respect to the entities for which the books and records are maintained by the property management company, who is the responsible party for signing the auditors management representation letter? If the responsible party is the property management company, does the company have the appropriate skills, knowledge, and experience to take full responsibility for the financial statements and accompanying notes? Answer #23: The management representation letters are signed by an appropriate director of the Board that manages the affiliate organization. Question #24: Historically, when have the audits and reviews been conducted? Answer #24: Audits for the limited partnerships are conducted between November and February. The schedule for the financial reviews for the remainder of the affiliates has not followed a consistent path due to differing filing deadlines and fiscal years. Question #25: Has OHA determined the composition of the evaluation committee? If so, could OHA provide such information? Answer #25: Per Section 5.5B of the RFP the evaluation panel will not be disclosed. Question #26: Provide copies of the prior year reports and tax returns for the following entities, as applicable: a. Foothill Family Apartments, LP b. Keller Housing Associates, LP c. Tassafaronga Partners, LP d. Tassafaronga Partners II, LP e. Keller Housing Initiatives, Inc. f. Oakland Housing Initiatives, Inc. g. Tassafaronga Housing Corp. h. OHA Coliseum LLC i. OHA Development LLC Answer #26: The prior year reports and tax returns are internal documents and will be provided to the selected firm. 5
RFP #18-008 Certified Public Accounting Services Addendum #1 Date issued and released, August 7, 2018 Bidder hereby acknowledges this addendum: Name of Firm: Authorized Signature: Date: Acknowledgement of this Addendum must be included with your response. 6