REQUEST FOR PROPOSALS: AUDIT AND TAX SERVICES

Transcription

1 GOODWILL INDUSTRIES OF CENTRAL EAST TEXAS, INC. REQUEST FOR PROPOSALS: AUDIT AND TAX SERVICES Issue Date: April 4, 2018 Due Date: April 20, 2018 Goodwill Industries of Central East Texas, Inc. 1

2 Index to Request for Proposals Description Page Number Section I: General Information 3 Section II: Background 4 Section III: Scope of Services 5 Section IV: Response Format and Information Content 6 Section V: Protests 8 Section VI: Evaluation Procedures 8 Goodwill Industries of Central East Texas, Inc. 2

3 Request for Proposals To Audit The Financial Statements of Goodwill Industries of Central East Texas, Inc. SECTION HEADING Section I - General Information Goodwill Industries of Central East Texas, Inc. is seeking proposals from Certified Public Accounting firms to provide audit and related tax return preparation service for the annual financial statements for the three (3) fiscal years ending December 31 of 2017 through December 31, 2019 with one (1) two (2) year option to extend upon mutual agreement. Proposals will be accepted from accounting firms certified by the State of Texas with at least five years experience in nonprofit and governmental auditing including experience performing Single Audits. The presentation of the annual financial statements, the independent auditor s report and other reports must be in accordance with GAAP. The deadline for submitting such proposals is Friday, April 20, 2018, at 2:00 p.m. local time. Any proposals received after the time and date advertised will not be considered. The proposal should be ed to Finance@LufkinGoodwill.Org or addressed as follows: Goodwill Industries of Central East Texas, Inc.. ATTN: Finance Director 301 Hill Street Lufkin, TX The complete proposal to the RFP must include the legal name of the Proposer. The proposal shall be signed by a person or persons legally authorized to bind the Proposer to a contract. The audits are to be performed in accordance with generally accepted auditing standards. Periodic progress reports may be required during the course of the audits, as well as an audit exit conference to discuss the proposed drafts of the audit reports. Additionally, letters detailing significant opportunities to improve management practices are to be furnished for each audit, if applicable. The tax return preparation services are to be performed in accordance with Texas tax laws and with the Internal Revenue Code for nonprofit corporations. There is no expressed or implied obligation for Goodwill Industries of Central East Texas, Inc. to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. The submitted proposals will be reviewed by the Audit Committee and will be evaluated on a qualitative basis. This review may include a 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. Goodwill Industries of Central East Texas, Inc. 3

4 The Audit Committee will present its recommendations to the full Board of Directors for consideration. Goodwill Industries of Central East Texas, Inc. reserves the right to reject all proposals and terminate the process or re-advertise and solicit new or additional proposals. Goodwill Industries of Central East Texas, Inc. reserves the right to retain all proposals submitted and to use any ideas from a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between Goodwill Industries of Central East Texas, Inc. and the firm selected. It is anticipated the selection of a firm will be completed by the end of April Following the notification of the selected firm, it is expected a contract will be executed immediately upon Goodwill Industries of Central East Texas, Inc. Board of Directors approval. Any questions concerning this Request for Proposal should be made to the following: Tiffany Rhodes Oliver, Senior Director of Finance Goodwill Industries of Central East Texas, Inc. 301 Hill Street Lufkin, TX Phone: Fax: Tiffany.Rhodes@LufkinGoodwill.org Section II - Background Goodwill Industries of Central East Texas, Inc. (Goodwill) is a not-for-profit organization incorporated in Goodwill Industries of Central East Texas, Inc. is a member of a national organization known as Goodwill Industries International. Goodwill collaborates with our community to transform donations into innovative training, employability and financial stability programs that empower people with disabilities and other barriers to achieve independence. Goodwill territory includes Angelina, Nacogdoches, Houston, San Augustine, Sabine, and Trinity counties. Goodwill is and autonomous not-for-profit organization governed by a volunteer Board of Directors consisting of members who are representative of the communities we serve. The Board of Directors guides Goodwill by establishing by-laws, overseeing strategic planning and providing fiscal oversight for the agency. They hire the Executive director to oversee the organization s daily operations and ensure the implementation of the agency s strategic plan. Goodwill currently has two retail stores and a virtual store. (These locations require a year-end inventory count that was performed by the previous auditor.) In addition, to our retail stores we have a Mission Services division that provides work training for consumers through a contract with the Department of Assistive and Rehabilitative Services (DARS), provides temporary employment Goodwill Industries of Central East Texas, Inc. 4

5 services through a contract with TIBH Industries, and provides yearly tax assistance through the federal VITA program. In 2016 Goodwill was awarded the Child Care Services contract through the Texas Workforce Commission to manage child care services in a 12 county region Goodwill s records are maintained on a calendar year basis. The financial records are maintained at 301 Hill Street, Lufkin, TX The financial records are processed using QuickBooks Enterprise accounting software package. The activities with regard to year-end closing are normally completed by the end of January. While we have been pleased with the audit and tax services that have been provided by Axley & Rode, LLP, Goodwill is required to periodically review all business services to determine whether greater efficiency and cost-effectiveness is available in the marketplace through a competitive solicitation such as this RFP. Further information is included in the December 31, 2016 audited financial statements. Section III - Scope of Services Goodwill is soliciting the services of qualified firms of independent certified public accountants to audit its annual financial statements, perform a single audit on required programs and prepare the required Federal and State income tax returns for the fiscal years ending December 31 of 2017 through 2019 respectively. To meet the requirements of this request for proposals, the audit services shall be performed in accordance with generally accepted auditing standards and the Internal Revenue Code for nonprofit corporations. Following the completion of the audit of the fiscal year's financial statements, the auditor shall Issue: 1. A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. 2. A letter detailing significant opportunities to improve management practices, if applicable. To assist the selected firm, Goodwill will provide basic information required for the audits and will be responsible for the accuracy and completeness of that information. We do expect advice regarding appropriate accounting principles and their application and assistance in the preparation of our financial statements. As part of the engagement, the selected firm shall be available during the year for consultation on any tax or accounting issue that may arise. The successful firm will be expected to attend the Goodwill Board meeting at the completion of the audit to assist in the presentation of the audited financial statements and to answer any Board member questions. Goodwill Industries of Central East Texas, Inc. 5

6 Goodwill has established that the Executive Director and the Senior Director of Finance are the primary representatives in all matters related to the financial statements and audit of the financial records. The annual audit must be finalized and issued to the full Board of Directors at or before the September board meeting of each year. The annual income tax return Form 990 and accompanying schedules are to be reviewed by the Executive Director and the Senior Director of Finance each year and then subsequently presented to the full Board of Directors for approval at the next available meeting, typically September. Section IV - Response Format and Information Content The format and information content for a response should be consistent with the following. 1. Cover Page 2. Table of Contents 3. Cover Letter: Summarizing the major points in the response. 4. Firm Qualifications: i. Describe the firm, including the number of offices and the number of partners and professionals. ii. Indicate for the firm the number and type of nonprofit and government clients served and the types of engagements. iii. Describe the firm s approach to continuing professional education with particular attention to continuing education related to nonprofit and government sector engagements. iv. Describe the firm's approach to peer review and provide a report of the most recent peer review, the related letter of comments, and the firm s response to the letter of comments. Indicate whether that peer review included a review of nonprofit or government client activities. v. Describe any disciplinary actions that have been instituted or proposed against the firm during the last three years and describe any pending disciplinary matters of which the firm is aware. 5. Staffing: i. Indicate the firm office(s) that will staff the Goodwill engagement and describe the number of partners and professionals in the office(s) and the nonprofit and government practice activities of that office. Goodwill Industries of Central East Texas, Inc. 6

7 ii. iii. Indicate the partner-in-charge and other professional staff that will be assigned to the Goodwill Audit and tax returns. In Appendix A, for each person named, including the partner-in-charge, provide a brief biographical background with a list of nonprofit and government clients served that includes the type of engagement and the capacity served. Discuss commitments the firm will make to staff continuity. Address in response what assurances can be given that staff assigned will have had experience at comparable organizations and have fund accounting and auditing competence and experience with nonprofit corporation tax returns. 6. Management Letter: Describe the process the firm will take to produce a meaningful management letter. 7. Statement of Auditor's Independence: i A statement indicating the firm's independence with regard to this audit engagement must be included. ii Disclose any potential conflict of interest relationships between the firm, members of the firm, or members of the firm s audit engagement team and the Goodwill Board of Directors. 8. Reference: Provide five recent nonprofit or government audit clients that can be contacted as references. Include the client name, address, telephone number and the name of the contact person. 9. Pricing Schedule: i. Include a quotation of fees for the proposed audit and tax return preparation services. The proposal should include a fee schedule for the audit and tax return services. Further, provide an indication of the estimated level of additional out-of-pocket expenses (i.e. travel). Be specific on the types of recurring services included in the basic fee, such as responding to periodic technical questions. ii. Explain the firm s policy for distinguishing between additional billable consulting services and services included in the audit and tax return engagement fee. Provide fee schedule that would apply for such special services. iii. Furnish standard billing rates for classes of professional personnel. iv. Indicate the impact on Goodwill for the transition to a new audit firm such as the approach to be taken, any first-time costs, additional time required in the first year, etc. Section V - Protests Following the selection of the apparent successful firm, Goodwill shall notify all firms in writing of its intent to award a contract to such firm. Any protest to the award of the contract to the apparent successful firm shall be submitted to Goodwill in writing within no less than five calendar days from the date of such notice. Any protest shall state with specificity the ground on which the protestor alleges the contract may not be awarded to the apparent successful firm. Goodwill shall Goodwill Industries of Central East Texas, Inc. 7

8 consider any properly submitted protest and may accept or reject such protest as it determines appropriate in its sole discretion. Section VI - Evaluation Procedures Responses will be reviewed, evaluated, and scored by the agency s Audit Committee on the basis of completeness, responsiveness, and timelinessof the responses and on quality in four areas as outlined below: POINTS Firm s Experience with Non-Profit Entities 0-40 Staff Qualifications: Experience in Non-Profit Auditing and Tax Returns 0-20 Pricing Schedule 0-20 References from Governmental/ Non-Profit Clients 0 20 TOTAL POSSIBLE POINTS 100 The Audit Committee will utilize the above scoring method to score each response, and based on scores, the Committee will make a recommendation then present their recommendation to Goodwill s full Board of Directors for consideration. The full Board or Directors will make a final determination based on majority vote of all members voting. Goodwill Industries of Central East Texas, Inc. 8