Request for Proposal For Audit Services

Transcription

1 Request for Proposal For Audit Services Requested by: Rural Employment Opportunities, Inc. PO Box 831 Helena, MT Valley View Drive, Suite 103 Montana City, MT 59634

2 Address and Proposal Requirements The Auditee is: Rural Employment Opportunities, Inc. (REO) Mailing Address: PO Box 831 Helena, MT Physical Address: 1 Valley View Drive, Suite 103 Montana City, MT Questions concerning the proposal should be directed to: Jami Lind Anderson Executive Director (406) To qualify for consideration, the proposal must be received at REO s office by 5:00 PM on May 21, The proposal should be addressed to REO at the address above, and should follow the requested format. The proposal will become part of the official contract file. Once selected as the audit contractor, any commitments made in the proposal will be part of the contract. This RFP does not commit REO to pay any cost incurred in preparing a proposal. 1

3 Description of Auditee and Records to be Audited REO is a non-profit organization incorporated in the State of Montana and is tax exempt under Section 501(c)(3) of the Internal Revenue Code. REO began operations in The mission of REO is; To assist migrant and seasonal farmworkers attain economic stability and providing them with the opportunity for upward mobility through long term unsubsidized employment; To promote and develop employment opportunities for disadvantaged individuals; To advocate and promote the establishment of job training and referral services for displaced workers and disadvantaged individuals; To Promote rural economic development; and To combat the causes of rural poverty. The REO administrative office is located at 1 Valley View Drive, Suite 103, Montana City, MT Field staff are located in Billings, Hamilton, Havre, Polson and Wise River. Seasonal staff members are hired for projects in Polson. The accounting records are located at the Administrative Office. The accounting records are computerized, using the MIP Fund Accounting Software. REO currently utilizes the general ledger, human resource, payroll and time reporting modules. Total expenditures of $1,568,634 by REO during the fiscal year ending June 30, 2017 have been audited. Grant receipts during this fiscal year are as follows: GRANTOR AMOUNT Department of Labor, NFJP Direct Assistance WIA 167 (CFDA #17.264) $ 531,022 US Department of Education Passed through by State of Montana Office of Public Instruction ESEA Title 1 Part C Migrant $ 478,202 Education Coordination Grant Montana Department of Public Health and Human Services TANF Family Economic Services $ 558,362 Additional Information: 2

4 Number of employees 12 permanent/20 seasonal Number of pay periods per year 26 Number of bank accounts 2 Main corporate checking account 1 Main corporate savings account 1 Number of investment accounts 1 Number of clients one time assistance 400 Number of clients multi time assistance or training programs 100 Accounts Payable checks issued approx. 780 The cognizant Federal Agency is the US Department of Labor and REO has established an Indirect Cost Rate agreement. 3

5 OBJECTIVE AND SCOPE NATURE OF SERVICES REQUIRED Each proposal must address itself to the conduct of an examination and an expression of an opinion upon the entity s combined financial statements for the fiscal year ended June 30, The audit must be performed in accordance with generally accepted auditing standards and include audit procedures to ensure that all laws and regulations have been complied with during the fiscal year. In addition, the audit must be performed in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Rewards. A draft audit report is to be delivered to REO s Administrative office at the address previously given and a formal exit conference is to be held with REO s Executive Director and board of directors in accordance with the timeline on page 5. Three bound copies and an electronic copy of the final report will be issued to REO within seven days of the exit conference. A formal presentation of the draft or final report to REO s Board of Directors will be required at REO s annual meeting held in late October REQUIRED REPORTS The audit report is to be addressed to Rural Employment Opportunities, Inc. The reporting package shall include the financial statements and schedule of expenditures of Federal awards, a summary schedule of prior audit findings, the auditor s report, a corrective action plan and the data collection form. The audit report shall state that the audit was made in accordance with the provisions of OMB Compliance Supplement. The preparation and filing of federal tax form 990. ASSISTANCE AVAILABLE TO PROPOSER All correspondence and other communications with REO with regard to this RFP shall be directed to the individual specified previously in this RFP. Anderson Zurmuehlen (Helena) performed the prior audit covering the period July 1, 2016 June 30, An unqualified opinion was issued. REO was also classified as Low Risk auditee under the single audit act. The previous audit workpapers are available for inspection, if desired. REO s accounting staff will be available to retrieve and re-file requested information. The current Fiscal Officer has been with REO for four years and will prepare PBCs as requested/detailed in the proposal. Additional assistance proposed must be specifically set forth in the offeror s proposal. We expect that our records will be available for the audit field work during the first of September. 4

6 Key Personnel: Following are key contacts for information you may seek in preparing your proposal: Jami Anderson Lind Executive Director Katherine Dalton Chief Fiscal Officer TIME LINE REQUIREMENTS Proposals must be submitted no later than 5:00 PM, May 21, The final records will be ready for audit by August 30, Work may begin any time after that date. A draft report must be presented to the Executive Director no later than October 1, 2018, and a final report presented to the Board of Directors no later than October 30, The Preparation and Filing of Federal Tax Form 990, including review by the REO Board of Directors, must be completed and filed by November 15, Payment for services rendered will be made within ten days of delivery of the final report. Should the cognizant agency reject the final audit report; no additional costs will be paid by REO for any subsequent work required of the auditor to present an acceptable report. WORKING PAPERS The successful proposer for a minimum of three years must retain working papers after the date of issuance of the auditor s report(s) to the auditee, unless the auditor is notified in writing by the cognizant agency for audit to extend the retention period. The working papers must be made available upon request to the authorized representatives of the cognizant Federal audit agency, the General Accounting Office and REO. In addition, the successful proposer must make all working papers physically available at the audit site to a successor auditor. RIGHT TO REJECT REO reserves the right the reject any and all proposals submitted and to request additional information from any proposer. An award made will be based on firm qualifications and cost considerations outlined in the proposals received on or before the stated deadline. 5

7 Your Response to This Request for Proposal: In responding to this request, we request the following information: 1. Detail your firm s experience in providing auditing services to organizations of comparable size and similar operations. 2. Provide information on whether you provide services to any related industry associations or groups. 3. Discuss the firm s independence with respect to Rural Employment Opportunities, Inc. 4. Discuss commitments you will make to staff continuity, including your staff turnover experience in the last three years. 5. Identify the five largest clients your firm has lost in the past three years and the reasons. Also, discuss, in instances where loss of the client was due to an unresolved auditing or accounting matter, the process of attempting to resolve the issue(s). 6. Identify the partner, manager, and in-charge accountant who will be assigned to our job if you are successful in your bid, and provide biographies. Indicate any complaints against them that have been leveled by the state board of accountancy or other regulatory authority, if any. Indicate any corrective actions that have been taken by the firm with respect to these people. 7. Describe how your firm will approach the audit of the organization, including the use of any association or affiliate member firm personnel and the areas that will receive primary emphasis. Also discuss the firm s use of technology in the audit. And finally, discuss the communication process used by the firm to discuss issues with the management and audit committees of the board. 8. Set forth your fee proposal for the 2018 audit, with whatever guarantees can be given regarding increases in future years. 9. Furnish standard billing rates for classes of professional personnel for each of the last three years. 10. Provide the names and contact information for other, similarly sized clients of the partner and manager that will be assigned to our organization for reference purposes. 11. Describe how and why your firm is different from other firms being considered, and why our selection of your firm as our independent accountants is the best decision we could make. 6

8 12. Include a copy of your firm s most recent peer review report, the related letter of comments, and the firm s response to the letter of comments. Evaluation of Proposals REO, Inc. will evaluate proposals on the qualitative basis. This includes our review of the firm s peer review report and related materials, interviews with senior engagement personnel to be assigned to our organization, results of discussions with other clients, and the firm s completeness and timeliness in its response to us. Please submit your response to the request for proposal by May 21, We would also appreciate a response if you decline to submit a proposal. Award of contract REO, Inc. will notify all proposers of selection committee s decision to contract on June 15,