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HomeMy WebLinkAboutRFP Auditor Questions_Responses1. Why is the City going out for RFP for audit services? Response: Our prior auditors informed the City that they will no longer be performing governmental audits. 2. Can you provide us a copy of the most recent AUP for the local building code enforcement program: If not, can you provide a list of procedures you need done for the AUP? Response: The FY21 and FY22 AUP engagements are still on-going. See attached FY20 AUP. 3. Are there any issues with the current auditor? Are they allowed to bid on the RFP? Response: No issues. The City does not have any restrictions on firms that can submit a bid proposal however our prior auditors will no longer be performing governmental audits and we do not expect a bid. 4. Were there any journal entries discovered by the auditors in the field for fieldwork of the audit? Response: No journal entries were discovered by the auditors in the field for fieldwork that were required to be entered by the City. 5. How many auditors and how many days were the auditors in the field for fieldwork of the audit? Response: There were 3-5 auditors in the field for fieldwork for 5 days. Additional fieldwork time was completed remotely at various times. 6. Do you have a preference for in-person, remote, or hybrid fieldwork? Response: In-person or hybrid fieldwork is preferred. In person meetings with the Finance Director and Controller, as well as the audit presentation to the City Council are required, notwithstanding unforeseen circumstances. 7. The RFP states that the auditors will perform an in-depth review of the City’s internal control procedures of one area each year as selected by the City? a. Is this expected to be included in the overall audit fee, or should there be a separate quoted price for this? Response: Yes, this should be included in the overall audit fee. The area for additional review will generally be an area included in the audit and any additional procedures performed, if any, have not added much time to risk assessment or fieldwork. b. Is there an expectation of any formal reporting on this in-depth review? No additional formal reporting is expected. 8. What accounting software does the City use? Response: The City’s accounting software is called Navaline. It is supported by Central Square. 9. Does the City intend to provide the auditors with read-only access to certain aspects of the accounting software? Response: The City has not provided read-only access to certain aspects of the accounting software in past audits, however, the City’s Finance and IT departments are exploring possible read-only access to Navaline. 10. Did the city use a software solution for the implementation of GASB 87? If not, what was the strategy to calculate the lease asset/liability? Response: A software solution was not used to implement GASB 87. An internally created spreadsheet was used to calculate the lease asset/liability. 11. What is the City’s plan for the implementation of GASB 96? Specifically, is there a software solution that will be utilized? Response: The City is not planning to utilize a software solution to implement GASB 96. 12. Is there any anticipation of significant technological changes in the next few years? Response: A change in accounting systems is included in the FY27 capital improvement plan. To date there have not been any discussions in planning for or the timing of changing systems. 13. Outside of the audit process, what does the City find/define value from its auditors? Response: The City values technical expertise in governmental accounting and assistance, when relevant, to plan and implement new GASB standards. 14. Were there any major audit or accounting issues identified for fiscal year 2022? Any anticipated ones for 2023? Response: No major audit or accounting issues were identified for fiscal year 2022 and none are anticipated for 2023. 15. What part of the audit process would the City like to improve over the past audits? Response: The City does not have any specific improvements to note over the past audits, however, the City will value the planning and fieldwork stages of the audit be adequately scheduled, staffed, are completed as close to on schedule as possible so that carryover and/or follow up questions are minimal. 16. What transition issues would the City be concerned about if the audit is awarded to new auditors? Response: The timing/audit schedule would be a primary concern. The City expects to complete the audit and issue financial statements in early December each year. 17. Have there been any significant changes in key staff in the past year that would affect the fiscal year 2023 audit? Response: No significant staffing changes are anticipated that would affect the fiscal year 2023 audit. The Finance Director has been with the City since August 2022 and the Controller has been in that position since April 2021. 18. Are there any significant changes in federal funding anticipated for 2023? How many major programs are anticipated for 2023? Response: We anticipate 1 major program and no significant changes in federal funding in FY 2023. 19. Assuming each bidder’s proposed fees are equal, what is the next most important thing to the City? Response: The City will value a firms ability to prepare the FY 2023 ACFR and assist as the City transitions to internal preparation. 20. What were the audit and AUP fees for fiscal years 2020, 2021, and 2022? Response: The AUP fees were included in the audit fees/bid. a. 2022 – Audit/AUP $79,459.14 b. 2021 – Audit/AUP $53,000 c. 2020 – Audit/AUP $50,000 21. What is the City’s process in implementing significant new standards. Response: The City’s Controller attends trainings and develops a plan for implementation. Generally, the auditors will be included in planning and analyzing implementation. 22. Is it the expectation that the auditor propose entries for the recording of the various retirement benefit plans on the financial statements of the City? Response: No. The City records the annual retirement benefit plans adjustments. 23. Is it the expectation that the auditor propose entries for the recording of the OPEB liability, deferred outflows, and deferred inflows on the financial statements of the City? Response: No. The City records the annual OPEB adjustments. 24. Are the City’s solid waste landfill closure and post closure care cost amounts determined internally or externally by a specialist? Response: The City determines the closure costs internally and the solvent site liability adjustment amount is determined externally.