Audit RFP Darex

Davec

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Request for Proposal County of Dare, NC The County of Dare, North Carolina (the “County”) invites qualified independent auditors (the “auditor”) having sufficient governmental accounting and auditing experience in performing an audit in accordance with the specifications outlined in this Request for Proposal (RFP) to submit a proposal. There is no expressed or implied obligation for the County of Dare to reimburse firms for any expenses incurred in preparing proposals in response to this request. Type of Audit The audit will encompass a financial and compliance examination of the County’s Comprehensive Annual Financial Report (CAFR) in accordance with the laws and/or regulations of the State of North Carolina, which include requirements for the minimum scope of the audit. The financial and compliance audit will cover federal, State, and local funding sources in accordance with generally accepted auditing standards; Government Auditing Standards; the Single Audit Act of 1984; the Single Audit Act Amendments of 1996; the provisions of OMB Circular A-133; Audits of State, Local Governments, and Non-Profit Organizations; the State Implementation Act; and applicable laws and regulations. The audit of the County will also include the accounts of the Dare County Library Trust and the Stumpy Point Community Center. The County’s past CAFR’s are available at: http://www.darenc.com/Finance/FinInfo.htm . The County’s most recent Schedule of ...

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Request for Proposal County of Dare, NC  

      The County of Dare, North Carolina (the “County”) invites qualified independent auditors (the “auditor”) having sufficient governmental accounting and auditing experience in performing an audit in accordance with the specifications outlined in this Request for Proposal (RFP) to submit a proposal. There is no expressed or implied obligation for the County of Dare to reimburse firms for any expenses incurred in preparing proposals in response to this request.     Type of Audit   The audit will encompass a financial and compliance examination of the County’s Comprehensive Annual Financial Report (CAFR) in accordance with the laws and/or regulations of the State of North Carolina, which include requirements for the minimum scope of the audit. The financial and compliance audit will cover federal, State, and local funding sources in accordance with generally accepted auditing standards; Government Auditing Standards; the Single Audit Act of 1984; the Single Audit Act Amendments of 1996; the provisions of OMB Circular A-133; Audits of State, Local Governments, and Non-Profit Organizations; the State Single Audit Implementation Act; and applicable laws and regulations.   The audit of the County will also include the accounts of the Dare County Library Trust and the Stumpy Point Community Center.   The County’s past CAFR’s are available at: http://www.darenc.com/Finance/FinInfo.htm . The County’s most recent Schedule of Expenditures of Federal and State Awards is included as Attachment A. The County’s most recent Schedule of Findings and Questioned Costs is included as Attachment B.     Period   The unit intends to continue the relationship with the auditor for no less than four years on the basis of annual negotiation after the completion of the first year contract. Each year after negotiation has taken place an annual contract documenting the terms of the audit will be signed. Since one governing board may not obligate future governing boards, the remaining years of the agreement are subject to annual governing board approval. The years covered under the relationship will include:   July 1, 2009 to June 30, 2010 July 1, 2010 to June 30, 2011 July 1, 2011 to June 30, 2012 July 1, 2012 to June 30, 2013

  Requirements     The audit must be conducted in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations; the State Single Audit Implementation Act, and any other applicable

procedures for the audit of a government’s financial statements prepared in accordance with GAAP.   The audit must be completed and all opinions, reports and forms rendered four months following the fiscal year end (October 31) unless delayed by the County. Two copies of each opinion letter, two copies of the Schedule of Findings and Questioned Costs, two copies of the Summary Schedule of Prior Audit Findings, twenty copies of the audit committee letter, and twenty copies of the management letter must be supplied to the Finance Director within the time frame cited above. The County is responsible for submitting the required two copies, via the CAFR, to the N.C. Local Government Commission (“LGC”).   The financial audit opinion will cover the general-purpose financial statements. The combining, individual and account group financial statements and schedules and related information are not necessary for fair presentation, but will be presented as additional analytical data. This supplemental information will be subjected to the tests and other auditing procedures applied in the audit of the general purpose financial statements, and an opinion will be given as to whether the supplemental information is fairly stated in all material respects in relation to the financial statements taken as a whole.   The working papers shall be retained and made available upon request for no less than three years from the date of the audit report.   In the event that circumstances arise during the audit that require work to be performed in excess of the original estimates, any additional costs will be negotiated prior to commencement of the work and an amended contract will be approved by the governing board and forwarded to the Local Government Commission for approval.     Audit Contract & Payment of Audit Fees   The audit contract must be in the form specified by the LGC, available at http://www.treasurer.state.nc.us/DSTHome/StateAndLocalGov/AuditingAndReporting/Memos.ht m . The audit contract must be approved and executed by the LGC. Invoices are subject to approval by the LGC prior to payment by the County. Interim or progress billings will be accepted up to 90% of the total fee prior to submission of the audited financial statements to the LGC and their approval of the audited financial statements.     Other Services   The County will prepare and print the Comprehensive Annual Financial Report (the “CAFR”). The County will submit a draft of the CAFR for review by the Auditor. The Auditor will review the draft and return with comments within a reasonable period of time.   As a part of the base fee the Auditor will also: 1.   Complete the US Department of Commerce, US Census Bureau SF-SAC (Data Collection Form). The County is responsible for submitting the SF-SAC. 2.   Assist in management’s efforts to obtain the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting. 3.   Attend one audit committee meeting and one Board of Commissioners meeting for presentation of the audit results and the CAFR. 4.   Provide a letter to the Audit Committee certifying the firm’s independence in performing each audit.

5.  Be available via conference call for other audit committee meetings as requested.     Description of Selection Process   Five copies of each section of the proposal should be submitted at the time and place indicated under the section entitled “Time Schedule for Awarding Contract.”   Proposals will be submitted in two sections. The first section will be comprised of the audit firm’s prior experience and qualifications of its personnel in performing governmental audits. The audit committee will evaluate the auditor/firm on educational and technical qualifications. The top five firms from the first section will have their second section opened and evaluated. The firm best meeting the experience, audit approach, and cost requirements will be selected.   The County reserves the right to reject any or all bids, waive technicalities, and to be the sole judge of suitability of the services for its intended use and further specifically reserves the right to make the award in the best interest of the County.   Failure to respond to any requirements outlined in the RFP, or failure to enclose copies of the required documents, may disqualify the proposal.     First Section   The first section should address the information requested as shown below. The corresponding responses should begin with the number of the requested information.   1.   Indicate the number of people (by level) located within the office that will manage the audit.   2.   Provide a list of the firm’s and the managing office’s current and prior government audit clients, indicating the type(s) of services performed, the number of years for each and identification of those that are current audit clients. Include experience with the GFOA’s certificate of achievement in financial reporting program.   3.   Provide a copy of the firm’s current peer review.   4.   Describe the professional experience in government audits of each senior and higher level person assigned to the audit, including years on each job and his/her position while on each audit. Indicate the percentage or amount of time each senior and higher-level personnel will be on site.   5.   Describe the relevant educational background of each person assigned to the audit, senior level and higher.   6.   Describe any specialized skills, training, or background in public finance of assigned individuals. This may include participation in State or national professional organizations, speaker or instructor roles in conferences or seminars, or authorship of articles and books.   7.   Provide three names, addresses, and telephone numbers of personnel of current and/or prior governmental audit clients who may be contracted for reference, at least one of which is a current audit client.

  8.   Describe how the firm addresses professional independence standards. Describe how the firm monitors CPE requirements for Yellow Book audits.   9.   Describe liability insurance coverage arrangements.   10.   Disclose any regulatory action taken by any oversight body against the proposing audit organization or managing office.     Second Section   Proposals should include a completed cost estimate and any other necessary information in a separate sealed envelope marked – “Cost Estimate.” The County will evaluate the qualifications of all firms submitting proposals before considering the Cost Estimate.   The second section should consist of completed cost estimates, which will include the following information:   1.   A description of the firm’s audit approach. 2.   Organization of the audit team. 3.   Assistance expected from the government’s staff, if other than outlined in the RFP. 4.   Tentative schedule for completing the audit. 5.   The basis for the first audit year’s (July 1, 2009 to June 30, 2010) charges showing total hours and total charges by each category of personnel. For the three audit years that follow, list the estimated costs. The fee for the audit year ending June 30, 2010 is binding, while the three years that follow are estimates only. The fee is to include all expenses (travel, etc…) as well as the cost of performing the work listed under Other Services in this document. 6.   Any other information that you wish to provide.     Time Schedule for Awarding the Contract   Request for proposal packages will be distributed by December 23, 2009. Proposals will be received by David Clawson, Finance Director, at 954 Marshall C. Collins Drive, P.O. Box 1000, Manteo, NC 27954 until January 28, 2010 at 3:00 p.m. Envelopes containing proposals should be clearly identified on the front as to the contents. The Audit Committee will review the proposals and make a recommendation to the Board of Commissioners at its February 15, 2010 meeting at which time the contract will be awarded.    Any firm that desires to pose any questions that might arise and to discuss general background information on the County and its operations may contact David Clawson, Finance Director (252) 475-5731 or may call the same to schedule a telephone conference or a meeting.     Description of the County and Its Accounting System   Dare County is a county in North Carolina with a permanent population of ~35,000 and seasonal population estimated to peak at ~250,000. The County operates a Water System serving ~16,000 connections.   Based upon criteria per GASB Statement 14, the following organizations are included in the

CAFR as discretely presented component units, none of which are included in the scope of the County audit: •   Dare County Airport Authority; •   Dare County Alcoholic Beverage Control Board; •   Dare Tourism Board; •   Wanchese Community Center District; •   Rodanthe, Waves, Salvo Community Center District; and •   Stumpy Point Community Center District.     The audit scope will include the Stumpy Point Water & Sewer District for which the County performs all management and accounting functions and is shown as an Enterprise Fund in the County’s financial statements.   The audit scope will include the Dare County Library Trust Fund, an account held separately by the Dare County Library Board with net assets of approximately $70,000 and annual activity of approximately $50,000 that is shown as a Private Purpose Trust Fund in the County’s financial statements.   The audit scope will include the Stumpy Point Community Center District, an account held by the County, administered by the Finance Department at the direction of the community center board. The net assets of approximately $34,000 and annual activity of approximately $7,000 is shown as an Agency Fund in the County’s financial statements.   Component units that do not appear in the financial statements because they have no financial activity are the Dare County Public Facilities Corporation and the Dare County Industrial Facilities and Pollution Control Financing Authority.     Funds and Account Groups; Grants, Entitlements, and Shared Revenues; Budget Procedures   Please reference the County’s CAFR for the fiscal year ended June 30, 2009 and the fiscal year 2009-10 budget ordinance, both of which are available at http://www.darenc.com/Finance/FinInfo.htm .     Accounting Records   The County maintains all accounting records at the finance office located at 954 Marshall C. Collins Drive, Manteo, NC. Records of the Stumpy Point Water & Sewer District and the Stumpy Point Community Center District are maintained at the same location by the same personnel. The County maintains its records and general ledger using Tyler Technology’s “MUNIS” software. The County is one of ten strategic reference sites for “MUNIS”.      Assistance Available to Auditor   The unit will make available to the auditor sufficient help to view scanned documents (all accounts payable and cash receipts/deposits), to pull and re-file records, and prepare and mail all necessary confirmations. The following accounting procedures will be completed and documents prepared by the County’s staff:  

1.  The books of account will be fully balanced. 2.   All subsidiary ledgers will be reconciled to control accounts. 3.   All bank account reconciliations will be completed. 4.   The County’s personnel will prepare and have available the following items: a.   General i.   Balance Sheet for each fund. ii.   Statement of Revenues, Expenditures, and Transfers for each fund. iii.   General Ledger transaction detail report for each account. iv.   A copy of the original budget, access to all amendments, and the final budget as of June 30. v.   Access to all project ordinances and all amendments for active projects during the audit period. vi.   A copy of the operating and capital lease schedules itemizing contracts in force during the audit period as well as access to the lease files maintained in the Finance and Manager’s offices. vii.   A copy of all board adopted policies. viii.   Copies of all correspondence with the Local Government Commission, including semiannual Cash and Investment Reports (LGC-203), unit letters, faxes regarding the audited financial statements and compliance reports for the previous year. b.   Cash and Investments i.   All bank account reconciliations for each month. ii.   List of outstanding checks, showing check number, date, and amount. iii.   Schedule of all investments for all funds at the audit date, showing book value and market value at fiscal year end. c.   Receivables i.   Taxes receivable in detail totaled by year as of fiscal year end. ii.   Water Fund receivables by account as of the fiscal year end. iii.   EMS Billing and Home Health receivables in detail as of the fiscal year end. iv.   Schedule of miscellaneous receivables booked as of the fiscal year end. d.   Other Assets i.   Schedule of insurance coverage. e.   Fixed Assets i.   All fixed asset acquisitions during the audit year. ii.   All fixed asset dispositions during the audit year. iii.   Depreciation expense posted for the audit year. f.   Current Liabilities i.   Schedule of accounts payable including batch printouts. g.   Long-Term Debt i.   Computation of vested compensated absences payable as of the audit date. ii.   Debt schedules and documents for each debt issue and related payments. h.   Grants i.   A grant file for each grant, which will include 1.   Grant application. 2.   Grant agreement. 3.   Budget and financial reports. 4.   Correspondence with the grantor agency, including monitoring reports. 5.   CFDA # and/or pass-through grant #. ii.   For Social Services and Health grants, a schedule showing, by CFDA # and/or State program or contract #, federal, State and local revenues and

expenditures, including accruals booked. 1.   Reconciliations of reported expenditures to the general ledger.

    Size and Complexity of Unit   1.   Personnel/Payroll a.   Number of employees 725 b.   Frequency of payroll Biweekly c.   Number of payroll transactions per period 725 direct deposits (mandatory) 2.   Property Taxes a.   Number of bills issued 45,539 b.   Fiscal year 2005-06 General Fund levy $45,264,316 3.   Enterprise Billing (Water only) (quarterly) a.   Number of bills per quarter 16,625 b.   Average delinquent at first delinquent date 2,490 4.   Purchasing a.   Purchase orders issued per month 85 5.   Bank Accounts a.   Checking accounts 4 b.   Investment clearing account 1 c.   NCCMT accounts 2 d.   Money market accounts 2 e.   Central depository monthly activity i.   Deposits 540 ii.   ACH in 130 iii.   Withdrawals & checks 1,100 iv.   ACH out 110 6.   Debt a.   The County’s debt was composed of the following as of June 30, 2005 (number and total $ amount outstanding): i.   Capitalized Leases (private placements) 3 $ 2,647,481 ii.   Certificates of Participation 6 $142,150,000 iii.   Installment Financings (private placements) 1 $ 10,200,000 iv.   G.O. Bonds 2 $ 2,200,000 v.   Water Revenue Bonds 2 $ 13,470,000 7.   The following financial applications are utilized in the MUNIS the computer system: a.   General Ledger. b.   Accounts Payable. c.   Payroll/Human Resources. d.   Budget. e.   Purchasing. f.   Inventory. g.   Fixed Assets. h.   Property Tax Billing & Collections. i.   Utility (Water) Billing & Receivables. 8.   The following applications are utilized via separate systems: a.   Investments (EVARE). b.   Debt (MunEase). c.   Tax Assessment. d.   Occupancy Tax Collections (Custom). e.   Prepared Foods Tax Collections (Custom). f.   Land Transfer Tax Collections (Custom).

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Other Conditions a.   The County collects property taxes for the Towns of Manteo, Kitty Hawk, Kill Devil Hills, Duck and Southern Shores. b.   The County leases all copiers. c.   The County leases all PC’s and servers. d.   The County utilizes, with strict controls, Purchasing Cards, with activity averaging $80,000 to $100,000 per month. e.   The County is responsible for collecting and distributing local Occupancy, Prepared Foods and Land Transfer taxes. f.   The County has obtained the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting for eighteen consecutive years.