HomeMy WebLinkAboutAnnual Independent Financial Audit Request for ProposalsCITY OF BOZEMAN
REQUEST FOR PROPOSALS
FOR
ANNUAL INDEPENDENT FINANCIAL AUDIT
The City of Bozeman is soliciting proposals for the annual
independent audit of the City’s financial records.
For documents, please contact:
Stacy Ulmen, CMC
City Clerk
P.O. Box 1230
Bozeman, MT 59771-1230
(406) 582-2321
sulmen@bozeman.net
Or visit the City’s website at www.bozeman.net.
The original plus six copies of the responses will be received by
the City Clerk, 121 North Rouse Avenue, Bozeman, MT 59715, until
5:00 PM, MST, on Tuesday, March 2, 2010. The City of Bozeman and
its agents reserve the right to reject any or all proposals and to
waive any formality and technicality.
Legal Ad
Publish: Sunday, February 7, 2010
Sunday, February 14, 2010
Sunday, February 21, 2010
CITY OF BOZEMAN
REQUEST FOR PROPOSALS
FOR
ANNUAL INDEPENDENT FINANCIAL AUDIT
PART I
A. Requirements for Submission of City Proposals.
1. RFP deadline:
a. 5:00 p.m. March 2, 2010
b. Mail to: City Clerk
Stacy Ulmen
P.O. Box 1230
Bozeman, MT 59771-1230
The outer envelope in which proposals are offered
should be marked "PROPOSAL FOR EXTERNAL AUDIT OF CITY
OF BOZEMAN."
2. Original plus six (6) copies of sealed proposals are
required, not to be opened until after the final
submission date and hour noted above.
3. To be eligible to qualify as external auditor, the
following minimum requirements must be met:
a. The firm of certified public accountants must be
of widely recognized ability and standing, and
licensed to practice in Montana.
b. The CPA firm must be a member of the American
Institute of Certified Public Accountants and must
adhere to the AICPA professional standards of
audit practices and conduct.
c. The firm must have audited similar governmental
units and must have the capability of assisting
the City in retaining its Certificate of
Achievement for Excellence in Financial Reporting
awarded by the Government Finance Officers'
Association.
d. The audit examination shall result in financial
statements prepared in conformity with generally
accepted accounting principles for local
governments. The resulting financial statements
will conform to all applicable GASB Statements,
including GASB Statement #34.
e. The firm must include a statement of the all-
inclusive fee for which the work will be done for
fiscal years 2010 and 2011 (separate costs for
each year). A statement of the estimated total
number of hours required for each year for audit
staff is also required.
f. The CPA firm must satisfy the Government Auditing
Standards educational requirements issued by the
GAO.
g. The auditor must demonstrate compliance with the
CPE requirements for auditing and governmental
accounting.
4. The Auditor Selection Committee will schedule oral
presentations by selected firms if deemed necessary.
5. The auditor's report will be submitted to the City by
the first Monday in December, after the close of the
audited fiscal year. The audit work can be commenced
by the successful audit firm at any time after the
contract is awarded.
6. The audit contract will be between the audit firm, the
City, and the Department of Commerce. A copy of the
latest standard audit contract is attached. (see
ATTACHMENT 1) Auditors should be fully aware of any
changes contemplated by the Commerce Department.
Auditors must also comply with the terms of this RFP.
B. Scope of the Audit.
1. Periods to be Audited:
July 1, 2009 through June 30, 2010 - Fiscal Year 2010
July 1, 2010 through June 30, 2011 - Fiscal Year 2011
The City reserves the right to negotiate with the
successful proposer for two additional fiscal years to
be audited.
2. Standards and Guidelines - The audit shall be conducted
in accordance with:
-- Generally Accepted Auditing Standards (GAAS)
-- Government Auditing Standards issued by the
Comptroller General of the U.S. 2003 Revision (GAO
Standards).
-- AICPA Audit & Accounting Guide-Audits of State and
Local Governmental Units (ASLGU).
3. Audit Review - The audit should not be limited to a
specific review of the financial transactions and
statements of the City. It should include an overall
review of the City's financial and accounting systems
and procedures.
4. Specified "Deliverable" - The "deliverables" required
for this audit shall be provided within the time frame
specified in Item 5 of Part I. A. They are listed
below.
a. All certifications and audit reports required by
the Federal government for Federal monies the City
has received, including the Schedule of
Expenditures of Federal Awards (SEFA). This
includes but not limited to Federal Transit
Authority (FTA) funds, American Recovery and
Reinvestment Act (ARRA) funds, Save America’s
Treasures (SAT) Grant funds, and Staffing for
Adequate Fire and Emergency Response (SAFER) grant
funds.
b. All certifications and audit reports required by
the State for compliance with State Law regarding
the financial reporting of municipalities;
including the report on compliance with building
inspection codes as prescribed by Montana statute.
5. The auditors shall familiarize themselves with and
comply with the provisions of any and all Federal,
State and City orders, statutes, ordinances, Charter,
bond covenants, and administrative rules and
regulations which may pertain to the work required in
the engagement.
6. Audit Conferences:
-- The CPA firm will have an entrance conference with
the audit committee.
-- The CPA firm will meet with the Director &
Controller for the purpose of reviewing its audit
findings and recommendations prior to the issuance
of management letters, certifications, or reports.
-- The CPA firm will present the final reports to the
audit committee and the City Commission.
7. Scheduling and Procedures - The CPA firm shall develop
a time schedule and procedures to be observed during
the audit and prior to the beginning of each audit.
The schedule and procedures will be developed in
conjunction with the City and shall be subject to
approval by the City. The schedule will be approved
prior to the audit work commencing. The City’s goal is
to complete a preliminary close of its accounting
system by the 2nd week of September. Other than
interim audit work and confirmations, the auditors
should not expect to perform general field work prior
to this date.
8. The audit will meet the requirements of the Single
Audit Act of 1984 (31 U.S.C. 7501-7507), as amended by
the Single Audit Act Amendments of 1996 (P.L. 104-156)
and the Federal Office of Management and Budget's (OMB)
Circular A-133, when applicable.
C. City Responsibilities
1. The City will provide:
a. Draft Financial Statements. (See ATTACHMENT 2)
b. Such City-wide schedules as needed for closing.
c. Bank reconciliations, vouchers in support of
accounts payable, such checks, etc. as needed for
examination.
d. Typing services for confirmation letters.
2. The City will provide access to all files and records
of the City departments.
3. The City staff will not prepare auditor workpapers or
data entry, other than what may be agreed upon under #4
below.
4. At the City's option, the City would make a staff
member available to the auditor to assist in the audit.
The purpose is to allow one of the City's staff members
to gain a better understanding of auditing theory that
would be useful in their job.
5. The City will provide to the auditor an electronic
version of the financial statements and notes to the
financial statements received from the prior auditor.
D. Auditor Responsibilities
1. The auditors will:
a. Prepare the entire CAFR. This will include
preparation of the government-wide and fund level
statements, the combining and combined financial
statements, notes to the financial statements, and
schedule of Federal Financial Assistance. The
city will provide updated information for the
statistical section, MD&A, and Letter of
Transmittal. The final audit report prepared by
the auditor will include all required information
to receive the Certificate of Achievement for
Excellence in Financial Reporting. The management
letter will be issued separately.
b. Submit a draft copy of the financial statements to
the city at least 2 weeks prior to the final
report date to enable city officials to review the
financial statements for possible changes.
c. In addition to the auditors’ normal internal
control review procedures, the auditors will
perform an in-depth review of the city's internal
control procedures and internal audits of one area
each year as selected by the city.
d. Provide the city with 25 copies of the final audit
reports and 20 copies of the building inspection
report and the management letter. This does not
include copies that the auditors must submit to
the state.
2. If there is a substantial change in the firm's audit
staff (i.e. audit manager, managing audit partner,
etc.) prior to or during the audit, the city reserves
the right to void the contract.
3. Provide to the city electronic media containing the
information and format used by the auditor to prepare
the CAFR (i.e. word processing or spreadsheets
containing the same information as the CAFR). The city
may provide this same information to a subsequent
auditor for their use.
E. Information to be Requested from the Proposer
Section 1:
To provide for a uniform review process and to obtain
comparability, it is required that proposals be organized in
the manner specified below.
1. Title Page
Show the RFP subject, the name of the firm, address,
telephone number, name of the contact person, and the
date.
2. Letter of Transmittal
Limit to two pages.
a. Briefly state the proposer's understanding of the
work to be done and make a positive commitment to
perform the work within the time period.
b. Give the names of the persons who will be
authorized to make representations for the
proposer, their titles, addresses and telephone
numbers.
3. Profile of the Proposer
a. State whether the firm is local, regional, or
national.
b. Give the location of the office from which the
work is to be done and the number of partners,
managers, supervisors, seniors, and other
professional staff employed at that office.
c. Describe the range of activities performed by the
local office such as audit and accounting, tax,
and/or management advisory services.
d. The auditors must comply with the continuing
professional education requirements and the
external quality control review requirements as
set out in Government Auditing Standards, as
established by the Comptroller General of the
United States.
4. Summary of the Proposer's Qualifications
a. Identify the partners, managers and supervisors
who will work on the audit. Resumes for each
supervisory person to be assigned to the audit
should be included. The resumes may be included
as an appendix.
b. Describe local office auditing experience similar
to the type of audit requested and give the names
and telephone numbers of client officials who can
be contacted as references.
5. Scope Section
Describe your firm's approach to completing the scope
of work as described above, demonstrating an
understanding of the task and level of effort required.
6. Review Letter
The auditors will submit a copy of their most recent
peer review letter.
7. Additional Data
Since data not specifically requested must not be
included in the foregoing proposal sections, give any
additional information considered essential to the
proposal in this section. If there is no additional
information to present, state in this section, "There
is no additional information we wish to present".
Section 2 - Compensation
Estimate the total hours and the resulting all-inclusive
maximum fee for the requested work, separately stated for
fiscal years 2010 and 2011. An appendix stating the hourly
rates to be charged for each staff classification is
required. The auditor will not be reimbursed for any travel,
per diem, photo copying, telephone bills, or other related
expenses of the audit unless incurred at the specific request
of the City.
PART II
Evaluation of Proposals
Proposals will be evaluated using a predetermined method to
ascertain which proposer best meets the needs of the City.
In some circumstances, proposals may be so similar in quality
that oral interviews may have to be arranged to assist in
making the final selection. Evaluation considerations will
include the following.
1. Qualifications of the Firm:
a. Relevant auditing experience (governmental),
including experience in the implementation of GASB
Statement #34.
b. Reputation of firm (based on references).
c. Qualifications of personnel to be assigned
(experience, training, communicative skills.)
2. Technical Approach:
a. Ability to meet or exceed performance
expectations.
b. Ability to communicate audit plans in an
organized, clear and convincing manner.
3. Fees:
a. Estimated cost as compared with other bids.
The award to the audit firm will also conform to the
Administrative Rules of Montana, section 2.4.407, which
states:
2.4.407 CRITERIA FOR THE SELECTION OF THE INDEPENDENT
AUDITOR (1) In selecting an independent auditor to perform
an audit under 2-7-503, MCA, a local government entity shall
consider the following criteria:
(a) listing on department's roster of independent auditors
authorized to conduct local government audits;
(b) independence, as defined by applicable auditing
standards;
(c) demonstrated understanding of the work to be performed;
(d) technical experience of the independent auditor in
conducting similar types of local government entity audits;
(e) qualifications of staff to be assigned to the audit;
(f) work history of the independent auditor; and
(g) the proposed audit fee.
(2) The department may require the local government entity
to demonstrate that the independent auditor selected is
qualified to conduct the audit based on an evaluation of:
(a) the criteria established in (1) above;
(b) any additional information requested by and used by the
local government entity in selecting the independent auditor;
and
(c) the results of oral interviews of independent auditors
conducted by the local government entity, if appropriate.
The City reserves the right to reject any and all proposals
submitted and to request additional information from
proposers. The award made will be to the firm which, in the
opinion of the City, is best qualified.
Staff Contact for Additional Information: Questions
regarding this Request For Proposals may be directed to Brian
LaMeres at blameres@bozeman.net or (406)582-2335