CITY OF JOHNSTON REQUEST FOR PROPOSALS ANNUAL AUDIT SERVICES

Transcription

1 June 9, 2009 CITY OF JOHNSTON REQUEST FOR PROPOSALS ANNUAL AUDIT SERVICES The City of Johnston is seeking two proposals from qualified, independent public accounting firms for the audit of the City s financial records and statements. The first proposal will be a one-year proposal for Fiscal Year ending June 30, The second proposal is for a three-year period and includes the years ending June 30, 2009, June 30, 2010 and June 30, The audit examination must be conducted in accordance with generally accepted auditing standards, Chapter 11 of the Code of Iowa and Government Auditing Standards, promulgated by the Comptroller General of the United States. Attached is information about the City of Johnston and its financial operation, RFP bidding requirements, and an agreement to perform audit services. Please send four (4) copies of your proposal to Teresa Rotschafer, Finance Director, 6221 Merle Hay Road, P. O. Box 410, Johnston, IA To be considered, the City must receive all proposals by 4:00 p.m. on December 1, Please direct all inquiries related to this request to the Teresa Rotschafer, Finance Director at (515) The City of Johnston appreciates your time and consideration of this request and looks forward to hearing from you.

2 CITY INFORMATION AND FINANCIAL OPERATION 1. The population of Johnston is 13,596 according to the 2005 special census. 2. Johnston has approximately 80 full-time employees, 20 part time and 17 seasonal employees and 32 paid-on-call firefighters. 3. The City operates on a cash basis of accounting (modified accrual audit). 4. The City uses Incode accounting software, which includes budgeting and accounting, payroll and utility billing programs. Both monthly and annual financial reports are maintained on this system as well as on printed hard copy. 5. The City has eight (8) departments including Police, Fire, Library, Parks, Streets/Water/Sewer, Economic Development, Finance, and Administration. 6. The City is governed under the mayor/council/manager from of government with five council members elected at large to four year staggered terms and the mayor elected for a two year term. The chief administrative officer is the City Administrator, whose appointed position is created by ordinance. 7. A five-year Capital Improvements Program is adopted annually. 8. Typically, the City also requires a separate OMB Circular A-133 audit. 9. The City s last five adopted annual budgets has the following revenues and Expenditures totals: REVENUES EXPENDITURES FY2009(est.) $29,786,971 $31,990,490 FY2008 $34,211,962 $33,851,032 FY2007 $37,959,832 $34,164,682 FY2006 $27,358,546 $33,398,818 FY2005 $28,770,301 $20,257,931

3 RFP BIDDING REQUIREMENTS 1. The City of Johnston reserves the right to refuse or reject any or all proposals submitted or received. 2. Only those proposals that are received by the City at the location described and in the time frame given will be considered. 3. Two (2) original copies of the enclosed agreement will be completed, signed and dated by an authorized representative of the firm and returned with the proposal. 4. The audit will be performed in accordance with the following standards: a. Chapter 11 of the Code of Iowa. b. Generally accepted auditing standards. c. The standards for financial audits contained in the GOVERNMENT AUDITING STANDARDS issued by the Comptroller General of the United States. d. The Single Audit Act and OMB Circular A-133, AUDITS OF STATE AND LOCAL GOVERNMENTS, if needed. 5. The fees quoted in the proposal and included in this agreement will be the maximum paid per hour and the total paid per year, unless an amendment to the agreement is agreed to in writing by both parties. 6. The audit report will conform to any standard reporting format used or accepted by the Auditor of State s office and/or any existing AICPA Audit Guides and the requirements of the Single Audit Act of 1984 and Office of Management and Budget (OMB) Circular A- 128, Audits of State and Local Governments and Non-Profit Organizations. 7. The audit report will include a management letter which will provide comments and recommendations on financial statements and accounting procedures, internal controls, accounting and bookkeeping systems, legality of actions and any other items worthy of reporting. 8. Twelve (12) bound and typed copies of the audit report including the management letter will be provided to the City, no later than December 1 st after the close of the fiscal year. The report should also be provided in an electronic format. 9. Three (3) bound and typed copies of the report including the management letter, a detailed per diem audit bill and a copy of the audit news release will be provided to the State Auditor on a timely basis each year the audit is performed.

4 INFORMATION TO INCLUDE IN PROPOSAL To expedite the review process and provide a fair comparison of all proposals considered, all proposals shall include the following items and be organized in the manner given below. 1. Letter of Transmittal: A letter of transmittal briefly outlining your understanding of the work required and general information about the firm and individual(s) that will perform the audit. The transmittal letter should clearly indicate the name, address, telephone number, address, and FAX number of the firm and the name of a contact person. 2. Table of Contents: Include a table of contents which identifies the material by section, page number and a reference to the following information to be contained in the proposal. If a transmittal letter is not submitted, please include on the table of contents the local address of the office to be performing the work, the telephone number, and the name of the contact person. 3. Profile of the Firm: a. Indicate if the firm is local, national, international, etc., and provide a brief description of the type of work performed by the firm. b. Indicate if the firm is in compliance with all registration and permit requirements to engage in the practice of public account auditing within Iowa. c. Indicate the office from which this audit work will be performed including: 1) The location of the office. 2) The size of the professional staff indicating owners, partners, managers, supervisors, etc., as well as any office staff involved in this audit. 3) The number of CPA s in the office. 4) Any other information you feel appropriate that describes the personnel and facilities used to perform this audit. 4. Qualifications: a. Describe the experience of this office and personnel in similar type audit work (public sector preferred). If needed, include the firm s regional experience in auditing similar type organizations and include a list of the five largest clients served. The Offeror should describe its prior auditing experience in the public sector, including the name of prior cities audited in Iowa and contact information for each city. b. Provide resumes or biographical profiles on all key professional staff assigned to this audit team. Resumes or profiles should include: 1) The individuals knowledge, training and experience in the auditing profession and their role in this audit. 2) A brief summary of similar or other audits on which this individual has worked. 3) A summary of the continuing professional education courses this individual has completed in governmental accounting and auditing over the past two years.

5 4) A statement as to whether this individual is independent, as defined by applicable auditing standards. c. Describe the firm s policy on notification of changes in key personnel during the audit and actions that will be taken to guarantee completion of the audit on a timely basis and within the cost of the audit. d. Provide a listing of the professionals in the office performing this audit that are experienced in public sector or local government auditing. e. If needed, identify the individuals within the firm that are knowledgeable and experienced in governmental auditing and reporting, and describe their availability to members of the audit team. f. Briefly describe the firm s system of quality control to ensure that the audit is adequately performed. 5. Scope of Services and Proposed Project Schedule: Briefly describe the scope of services to be provided. Indicate a proposed time schedule with dates to complete the fieldwork and to prepare and submit the final report. Specify on-site time versus off-site time. Indicate the amount and type of city staff assistance you expect to perform this audit within the timeframe given. The City requires the process to be completed in a timely manner so that the City Clerk publishes the City s Annual Report by December 1 st and meets all mandatory deadlines. Proposal shall include a timeline to reflect this. 6. Fees and Compensation: Provide the following information: a. Estimated total number of hours to complete audit. b. Estimated total out-of-pocket expenses. c. The hourly rate charged by staff classification. d. The all-inclusive maximum fee and out-of-pocket expenses to be charged and not exceeded except by amendment. e. The frequency of your billing and your payment terms. f. The policy and charges of the firm s additional consulting services for each year auditing services will be provided. g. Separate, all-inclusive maximum fee and out-of-pocket expenses for performing a single audit, if needed, per the Single Audit Act and OMB Circular A-133, Audits of State and Local Governments and Non-Profit Organizations. h. The additional charge to complete the Annual Financial Report for submission to the Auditor of State, in a timely manner, should the City decide to include this report in the final contract. i. Insurance: Provide a photocopy from the current declarations page of the Firm s errors and omissions insurance policy showing a minimum coverage amount of $1,000, per incident. It is important the Offeror s proposal be submitted in a sealed envelope clearly marked in the lower left hand corner with the following information:

6 REQUEST FOR PROPOSAL 4:00 P.M. DECEMBER 1, 2008 SEALED BID FOR AUDIT SERVICES Failure to do so may result in premature disclosure of your proposal. It is the responsibility of the Offeror to insure that the proposal is received by the City of Johnston by the date and time specified and in the manner outlined. LATE PROPOSALS WILL NOT BE CONSIDERED

7 EVALUATION CRITERIA The proposal will be evaluated based upon the following two areas. Therefore, it is important that your proposal be responsive to the data requested. 1. Cost Overall cost, including out-of-pocket expenses for the performance of the audit. 2. Qualifications a. Organizational structure and size of firm. b. Organizational structure and size of the office performing the audit. c. Recent experience in similar audits. d. Qualifications of the audit team. e. Individuals with whom the audit team can consult. f. Understanding of work and timetable to complete the audit.

8 AGREEMENT BETWEEN AND THIS AGREEMENT made and entered into this day of, 20, by and between, hereinafter called and, hereinafter called CPA. WHEREAS, the wishes to obtain the services of the CPA to perform an audit in accordance with Section 11.6, Code of Iowa, for the year(s) ending ; and the Code of Iowa. WHEREAS, the CPA is equipped and staffed to perform the above audit; and WHEREAS, this agreement is in the public interest in fulfilling the requirements of Chapter 11 of NOW, THEREFORE, BE IT UNDERSTOOD AND AGREED: 1. That the CPA will: A. Provide auditors of various classifications and for the estimated hours as detailed in 2.A of this agreement. B. Begin work on the audit as specifically agreed upon with the. C. Perform all work in accordance with U.S. generally accepted auditing standards, Chapter 11 of the Code of Iowa, Government Auditing Standards, and applicable federal requirements. D. Immediately inform the, the Auditor of State, and County Attorney if the audit discloses any irregularity in the collection or disbursement of public funds. E. Provide access to the working papers to any appropriate federal agencies for the period of time specified in relevant agreements entered into by the. F. Provide access to the working papers to the Auditor of State in accordance with Chapter 11 of the Code of Iowa.

9 Agreement Page 2 2. Conditions of Payment: A. It is understood that the fees for the services set forth above shall be reimbursed at the following hourly rates: Classification Estimated Hours Hourly Rate B. The CPA shall present an invoice for services in the following manner:. C. Payment shall be made within days of receipt of invoice. D. The total reimbursement shall not be for more than $, except as specifically agreed by the and the CPA. 3. Termination of Agreement: A. may terminate this contract without notice if the CPA fails to perform the covenants or agreements contained herein. B. The CPA shall be paid for all work satisfactorily performed to the date of termination. IT WITNESS THEREOF, and CPA have executed this AGREEMENT as of the date indicated below: CPA By By Title Title Date Date

10 EVALUATION CRITERIA AND TECHNIQUES FOR RESPONSES TO REQUESTS FOR PROPOSALS Evaluation of responses to a request for proposal is based upon a 100-point rating system. A maximum of 25 points is assigned to the cost of the bid proposal, and a maximum of 75 points is assigned to the qualifications of the bidding firm or individual. The techniques used to evaluate these two components are described below. Criteria: COST Evaluation Value: 25 points Evaluation Technique: For each firm evaluated Cost Score = Lowest cost of all bids received Bid cost for this firm x 25 Criteria: Evaluation Value: QUALIFICATIONS 75 points Evaluation Technique: Subjective scoring for the following factors: Qualification Factor Possible Points 1. Organizational structure and size of entire firm (resources available personnel and research, existence of areas of specialization, commitment to governmental auditing, etc.) Organizational structure and size of office performing the audit (resources available personnel and research, existence of area of specialization, commitment to governmental auditing, etc.) Recent experience in similar audits (involvement in local governmental audits extensiveness, variety, length of time performing audits, etc.) 4. Qualifications of the audit team (level of experience as accountants, auditors, governmental auditors, variety of experience, % of time devoted to governmental audits, number of CPA s involved, training, etc.) 5. Individuals with whom the audit team can consult (level and variety of experience, number of CPA s, training, etc.) 6. Understanding of work and timetable to complete audit (number of hours, projected timetable, on-site vs. off-site, commentary showing understanding of entity and general knowledge of what is required, etc.) Total points - Qualifications 0-75 Each firm s total evaluation score is the sum of its cost score plus its qualification score. The maximum score is 100 points. Page 10 of 10