Request for Qualifications for Audit Services March 25, 2015

Transcription

1 Request for Qualifications for Audit Services March 25, 2015 I. GENERAL INFORMATION A. Purpose This Request for Qualifications (RFQ) is to solicit a CPA firm with which to contract for a financial and compliance audit for the year ending June 30, 2015, with options for four additional years. B. Who May Respond Only licensed Certified Public Accountants (CPA) with experience and training in auditing governments may respond to this RFQ. C. Questions CPA s may contact First 5 Butte County Children & Families Commission (Commission) in writing to get explanatory information on the response requirements. No formal bidder s conference will be held. Inquiries should be directed to Eva Puciata, Administrative Analyst, at epuciata@buttecounty.net; or by mail at First 5 Children & Families Commission, 82 Table Mountain Blvd., Suite 40, Oroville, CA Questions must be received by noon on April 21, 2015, so that a compilation of questions and answers can be posted at and PublicPurchase.com by 5p.m. on April 28, D. Instructions on Submission 1. Closing Submission Date Submission must be received in the Commission s office by no later than 5:00 p.m., May 12, It is the responsibility of the CPA to insure that the submission is received on time. Late or incomplete responses will not be considered. 2. Costs of Submission All costs incurred in the preparation of a submission are the responsibility of the CPA and will not be reimbursed by Commission. 3. Submission The response should be sent to (and may be ed in): First 5 Butte County Children & Families Commission 82 Table Mountain Drive, Suite 40 Oroville, CA Attn: Eva Puciata epuciata@buttecounty.net, and info@first5butte.org First 5 BCCFC FY Audit Request for Qualifications Page 1 of 7

2 4. Right to Reject Commission reserves the right to reject any and all responses received when it is deemed to be in the best interests of Commission to do so. E. Notification of Award It is expected that a decision selecting the successful CPA will be made by May 29, Upon conclusions of final negotiations with the successful firm, all firms will be informed in writing of the name of the successful CPA. It is expected that the audit contract shall be a one-year contract, with options for four additional one-year periods. A sample contract is enclosed. F. Description of Entity and Records to be Audited 1. The First 5 Butte County Children & Families Commission is a political subdivision of the State of California, established on December 15, 1998 by the Butte County Board of Supervisors to implement the provisions of California s Proposition 10. Funded with a tax on tobacco products, the general purpose of the Commission is to promote, support and improve the early development of children from the prenatal stage through five years of age, through the creation and implementation of an integrated, comprehensive and collaborative system of information and services to enhance early childhood development pursuant to the California Children and Families First Act of The Commission s administrative office and all financial records are located in Oroville, California Records to be Audited The Commission s accounting is contracted out to the Butte County Auditor, who utilizes the computerized accounting program SunGard Pentamation Finance Plus. Supplemental Excel spreadsheet subsidiary reports and the financial statements are prepared by the Commission s staff. G. Options At the discretion of Commission, the audit contract may be extended for four additional one-year periods. The cost for the option periods will be agreed upon by the Commission and the selected CPA. It is anticipated that the cost for the optional years will be based upon the same approximate cost as the initial contract year. Applicants may provide their estimate of audit charges for option periods as a part of their response, but will not be penalized if they choose not to do so. First 5 BCCFC FY Audit Request for Qualifications Page 2 of 7

3 II. SPECIFICATION SCHEDULE A. Scope of Financial and Compliance Audit The purpose of this RFQ is to obtain the services of a public accounting firm whose principal officers are independent certified public accountants, certified or licensed by the regulatory authority of a state or other political subdivision of the United States to perform a financial statement audit of the Commission under Generally Accepted Accounting Principles (GAAP), and generally accepted auditing standards for audits of governmental agencies as established by the American Institute of Certified Public Accountants; and perform a compliance audit in accordance with the California State Controllers Audit Guidelines for Commissions B. Performance Commission s records are to be audited for the period July 1, 2014 through June 30, The CPA is to prepare audit reports in accordance with the requirements previously described. C. Delivery Schedule 1. Field Work On-site work should begin as soon as practical after the final negotiation for the audit contract and after the close of the Butte County Auditor s books (generally close September 4 each year after which Commission staff can prepare the financial statements for inspection), but in no event later than September 21, Draft The CPA will deliver a draft electronic report to the Commission s Director and/or designated staff no later than 9:30a.m., October 20, The CPA will be available between October 20 and October 29, 2015, at least by phone and , to work with the Director and/or designated Commission staff to finalize the draft. 3. Final The CPA will make any refinements needed to the draft audit report, and will deliver one (1) electronic copy of the final report to the Commission no later than 4 p.m. October 29, 2015, and shall verbally present the audit report to the full Commission at their meeting to be held on October 30, 2015, at 9a.m. The CPA will also deliver six (5) bound copies and one (1) unbound copy of the final report by December 3, Reports may be submitted earlier than the above schedule. However, if the CPA fails to make delivery of the audit reports, or delivers audit reports which do not conform to all of the provisions of this request and the subsequent contract, the Commission by written notice of default to the CPA, will terminate the whole or any part of the audit contract. Under certain extenuating circumstances, with sufficient justification, Commission may extend the delivery schedule upon written request. D. Audit Review Commission will review the audit for compliance with the previously described auditing standards/ requirements. In the event the audit report does not comply with any of the auditing First 5 BCCFC FY Audit Request for Qualifications Page 3 of 7

4 standards/ requirements as determined by Commission, the CPA will be responsible for revising the report to the appropriate specifications without additional remuneration. E. Work papers 1. Commission personnel will be available to assist in the preparation of audit work papers. A written request by the CPA for all client-prepared work papers required for the audit should be submitted in writing at least six weeks before field work begins. 2. The CPA will retain all work papers for at least five years from the date of acceptance of the audit. 3. All work papers will be available for examination by authorized representatives of Commission, the Butte County Auditor, the California Children & Families Commission, or the California State Controller s office. F. Confidentiality The CPA agrees to keep the information related to all Commission s contracts in strict confidence. Other than the reports submitted to Commission, the CPA agrees not to publish, reproduce or otherwise divulge such information in whole or in part, in any manner or form, or to authorize or permit others to do so, taking such reasonable measures as are necessary to restrict access to the information while in the CPA s possession. The CPA s employees will have access to the information only on a need-to-know basis. The CPA agrees to immediately notify Commission, in writing, in the event the CPA determines or has reason to suspect a breach of this requirement. G. Other Information Commission annually undertakes an independent audit. Copies of previous audit reports are available for review. This RFQ, the successful response, and all pertinent correspondence or negotiations with the successful CPA will be incorporated, by reference, into the audit contract. III. RESPONSE CONTENTS The response must include, as a minimum, the following elements: A. General Description The CPA firm should describe its organization, size (in relation to audits performed) and structure. Indicate, if appropriate, if the firm is a small or minority-owned business. The CPA firm should include a copy of the most recent peer review, if the CPA has had a peer review in the last three years. If the CPA has not had a peer review, it should be so stated in the response. First 5 BCCFC FY Audit Request for Qualifications Page 4 of 7

5 C. Prior Auditing Experience The CPA firm should describe its prior auditing experience including the names, addresses, contact persons, and telephone numbers of prior organizations audited. Experience should include the following categories: 1. Prior experience auditing (type of entity). 2. Prior experience auditing similar county or local government activities. D. Staff Qualifications The CPA should describe the qualifications of the staff to be assigned to this audit. Descriptions should include: 1. Audit team makeup. 2. Overall supervision to be exercised. 3. Prior experience of the individual audit team members. Only include resumes of staff to be assigned to this audit. Do not include information on general partners, etc., who would not normally be involved in this audit. Education, position in firm, years and types of experience, and continuing professional education should be addressed in the narrative or the resumes provided. D. Understanding of Work to be Performed The CPA firm should describe its understanding of the work to be performed, including audit procedures, estimated hours, and other pertinent information. E. Price The CPA s price for services should be submitted in a separate sealed envelope enclosed with the response. The separate envelope should include information indicating how the price was determined. For example, the CPA should indicate the estimated number of hours by staff level by auditing areas (e.g. testing), hourly rates, and total cost by staff level. Any estimated out-ofpocket expenses should be shown. Any contingencies should be shown. F. Time Frame Although a final schedule will be agreed upon during the negotiation process, the CPA should indicate the anticipated start date of on-site work, date for receipt of the draft report, and date of receipt for the final report. Although this may be subject to change, the CPA should also indicate the approximate number of days anticipated for the on-site work. G. Certifications The CPA must sign and include as an attachment to its response the Certifications enclosed with this RFQ (Attachment I). The publications listed in the certifications will not be provided to CPA by Commission, because Commission desires to contract only with a CPA firm who is already familiar with these publications. First 5 BCCFC FY Audit Request for Qualifications Page 5 of 7

6 V. RESPONSE EVALUATION A. Submission of Responses Responses may be submitted electronically, by U.S. mail, or hand delivered. B. Non-responsive Submissions CPA s may be judged non-responsive and removed from further consideration if any of the following occur: 1. The response is not received on a timely basis in accordance with the terms of this RFQ. 2. The response does not include all of the specified elements. 3. The response is not adequate to form a judgment by the reviewers that the proposed undertaking would comply with all of the auditing standards/ requirements specified in this RFQ. 4. The response indicates that the audit reports would not be made available to Commission in the time frames outlined in this RFQ. C. Evaluation Evaluation of each response will be based on the following criteria: 1. Factors 14 Maximum Points a. Prior experience auditing similar organizations. 1. Prior experience auditing governmental organizations: 0-2 points. Commission may contact prior audited organizations to verify the CPA s experience. b. Qualifications of staff to be assigned to the audit, as determined by resumes and other information submitted. 1. Audit team makeup: 0-2 points. 2. Overall supervision to be exercised: 0-2 points. 3. Prior experience of the individual and team members: 0-2 points. c. CPA s understanding of the work to be performed. 1. Adequate coverage/explanation: 0-2 points. 2. Realistic time estimates: 0-2 points. d. Price: 0-2 points. 2. Review Process Commission may, at its discretion, request presentations by or meetings with any/all CPA s to clarify or negotiate modifications to the responses. However, Commission reserves the right to make an award without further discussion of the responses received. Therefore, responses should be submitted initially on the most favorable terms the CPA firm can provide, from both technical and price standpoints. The Commission anticipates awarding the contract to the CPA firm that is deemed to be the most responsive to this RFQ. First 5 BCCFC FY Audit Request for Qualifications Page 6 of 7

7 Attachment I -- CERTIFICATIONS A. The individual signing certifies that he/she is authorized to contract on behalf of the CPA firm. B. The individual signing certifies that the CPA is not involved in any agreement to pay money or other consideration for the execution of this agreement, other than to an employee of the CPA. C. The individual signing certifies that the prices quoted in this response have been arrived at independently, without consultation, communication, or agreement, for the purpose of restricting competition. D. The individual signing certifies that the prices quoted on this response have not been knowingly disclosed by the CPA to any other potential CPA responder to this RFQ prior to award. E. The individual signing certifies that there has been no attempt by the CPA to discourage any potential other CPA firm from submitting a response. F. The individual signing certifies that the CPA firm is a properly licensed certified public accountant, or a public accountant licensed on or before December 31, G. The individual signing certifies that the CPA meets the independence standards of the Government Auditing Standards - Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. H. The individual signing certifies that all individuals to be assigned to the audit have met the Continuing Education Requirements of 80 hours continuing education every two years. I. The individual signing certifies that the CPA, and any individual to be assigned to the audit, does not have a record of substandard audit work and has not been debarred or suspended from doing work with any Federal, State, or Local Government. (If the CPA or any individual to be assigned to the audit has been found in violation of any State or AICPA professional standards, this information must be disclosed). J. The individual signing certifies that the CPA (circle one:) does/ does not carry professional malpractice insurance. Dated this day of (CPA firm s Name) (Signature of CPA s Representative) (Printed Name and Title of Individual Signing) First 5 BCCFC FY Audit Request for Qualifications Page 7 of 7