Request for Proposal (RFP) - Audit Services 2021
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COMMUNITY ACTION AGENCY
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
FOR THE PERIOD
OCTOBER 1, 2020 TO SEPTEMBER 30, 2021
PROPOSALS AND INQUIRIES SHOULD BE DIRECTED TO:
MR. ANTHONY J. SAMON, CPA
CHIEF FINANCIAL OFFICER
COMMUNITY ACTION AGENCY
1214 GREENWOOD AVE.
JACKSON, MI 49203-3037
(517) 784-4800
tsamon@caajlh.org
I. GENERAL INFORMATION
A.Purpose
This Request for Proposal (RFP) is to contract for a financial and compliance audit for the year ending September 30, 2021. The proposal includes options for two additional years.
B.Who May Respond
Only licensed Certified Public Accountants may respond to this RFP.
C.Bidder's Questions
Bidder's questions may be submitted by email to Anthony Samon at tsamon@caajlh.org by August 25, 2021. Questions with related responses will be emailed to all prospective bidders.
D.Description of Entity and Records to be Audited
Community Action Agency is a private, not for profit corporation which serves 3 counties (Jackson, Lenawee and Hillsdale) in Michigan and has been determined to be exempt from Federal income tax under Section 501 (c) (3) of the Internal Revenue Code. It is governed by a 18-member tripartite volunteer Board of Directors. Administrative offices and all financial records are located at 1214 Greenwood Avenue. Other offices are located throughout the tri-county area.
Community Action Agency uses a computerized accounting system that includes a statement of financial position and statement of activities for each of the Agency's approximately 60 programs. The programs are maintained on a program period basis and converted using a trial balance generator to the Agency's fiscal year for audit purposes.
Community Action Agency has two main bank accounts which are comprised of two impressed checking accounts, General Pooled and Payroll. There are several programmatic checking accounts as well. The programs to be audited are funded by various federal, state, and local grant awards. Federal funds represented 64% of support and revenue for the year ended September 30, 2020 and included major programs as follows: Head Start, Early Head Start, Special supplemental food program for Women, Infants and Children, VA Supportive Services for Veteran Families, Housing Advocacy and Support programs, and Community Service Block Grant. Other programs include an unrestricted corporate account, cost allocation funds for property and equipment maintenance, copier/postage and an Agency indirect cost allocation fund.
E.Options
At the discretion of Community Action Agency, this audit contract can be extended for two additional one-year periods. The cost for the option periods will be agreed upon by Community Action Agency and the Offeror.
II. SPECIFICATION SCHEDULE
A.Scope of a Financial and Compliance Audit
The purpose of this RFP is to obtain the services of a public accounting firm, whose principal officers are independent certified public accountants, licensed by the State of Michigan, hereinafter referred to as the "Offeror" to perform a financial and compliance audit of Community Action Agency for both the entity's financial statements and 403B retirement plan.
B. List of Agency Programs/Grants
See Exhibit "A" (email: tsamon@caajlh.org for a copy of Exhibit A)
C. Performance
The Community Action Agency's records would be audited through September 30, 2021.
The Offeror is to perform audit services in accordance with OMB Circular 2 CFR Part 200.500 - 521 and the appropriate Compliance Supplements.
D. Delivery Schedule
Offeror is to transmit one copy of the draft audit report to Community Action Agency's Chief Financial Officer. The draft audit report is due on or before February 7, 2022.
Offeror shall deliver and present 30 final audit reports to Community Action Agency's Board of Directors no later than February 24, 2022.
Reports may be submitted earlier than the above schedule. However, if the Offeror fails to make delivery of the audit reports within the time schedule specified herein, or if the Offeror delivers audit reports which do not conform to all of the provisions of this contract, Community Action Agency may, by written notice of default to the Offeror, terminate the whole or any part of this contract. Under certain extenuating circumstances the contracting agent may extend this schedule upon written request of the Offeror with sufficient justification.
E. Price
The Offeror's proposed price should include information indicating how the price was determined. For example, the Offeror should indicate the estimated number of hours by staff level, hourly rates, and total cost by staff level. Any out-of-pocket expenses should also be indicated.
F. Payment
Payment will be made when Community Action Agency has determined that the total work effort has been satisfactorily completed. Should Community Action Agency reject a report, Community Action Agency's authorized representative will notify the Offeror in writing of such rejection giving the reason(s). The right to reject a report shall extend throughout the term of this contract and for ninety (90) days after the Offeror submits the final invoice for payment.
Progress payments will be allowed to the extent that Community Action Agency can determine that satisfactory progress is being made.
Upon delivery of the 30 copies of the final reports to Community Action Agency and their acceptance and approval, the Offeror may submit a bill for the balance due on the contract for the audit.
G. Audit Review
All audit reports prepared under this contract will be reviewed by Community Action Agency and its funding sources to ensure compliance with Generally Accepted Government Auditing Standards and other appropriate audit guides.
H. Exit Conference
An exit conference with Community Action Agency's representatives and the Offeror's representatives will be held at the conclusion of the field work. Observations and recommendations must be summarized in writing and discussed with Community Action Agency, including internal control and program compliance observations and recommendations.
III. OFFEROR'S TECHNICAL QUALIFICATIONS
The Offeror, in its proposal, shall, as a minimum, include the following:
A.Prior Auditing Experience
The Offeror should describe its prior auditing experience including the names of prior organizations audited. Experience should include the following categories:
1.Prior experience auditing not for profit organizations.
2.Prior experience auditing programs funded by the State of Michigan.
3.Prior experience auditing programs funded by the Federal Government.
B.Organization, Size, and Structure
The Offeror should describe its organization, size (in relation to audits to be performed) and structure. Indicate, if appropriate, if the firm is a small or minority-owned business. Offeror should include a copy of the most recent Peer Review, if the Offeror has had a Peer Review.
C. Staff Qualifications
The Offeror should describe the qualifications of staff to be assigned to the audits.
Descriptions should include:
1.Audit team makeup.
2.Overall supervision to be exercised
3.Prior experience of the individual audit team members.
Include resumes of staff to be assigned to the audits. Education, position in firm, years and types of experience, continuing professional education, state(s) in which licensed as a CPA, etc. will be considered.
D.Understanding of Work to be Performed
The Offeror should describe its understanding of work to be performed, including audit procedures, estimated hours, and other pertinent information.
Proposals will be evaluated base on the above qualifications and using the matrix (exhibit B) and involving various staff of CAA. (email: tsamon@caajlh.org for a copy of Exhibit B)
IV. INSTRUCTIONS ON PROPOSAL SUBMISSION
A. Closing Submission Date
Proposals must be submitted no later than 4:30 p.m. on September 2, 2021.
B. Inquiries
Inquiries concerning this RFP should be directed to Mr. Anthony J. Samon, CFO @ (517) 784-4800 or emailed to tsamon@caajlh.org.
C. Conditions of Proposal
All costs incurred in the preparation of a proposal responding to this RFP will be the responsibility of the Offeror and will not be reimbursed by Community Action Agency.
D.Instructions to Prospective Contractors
Your proposal should be addressed as follows:
Name: Mr. Anthony J. Samon, CPA
Title: Chief Financial Officer
Entity: Community Action Agency
Address: 1214 Greenwood Avenue
Jackson, MI 49203-3037
It is the responsibility of the Offeror to ensure that the proposal is received by Community Action Agency by the date and time specified above.
Late proposals will not be considered.
E. Right to Reject
Community Action Agency reserves the right to reject any and all proposals received in response to this RFP. A contract for the accepted proposal will be based upon the factors described in this RFP.
F. Small and/or Minority-Owned Businesses
Efforts will be made by Community Action Agency to utilize small businesses, minority-owned firms, women's business enterprises and labor surplus area firms, whenever possible.
An Offeror qualifies as a small business firm, if it meets the definition of "small business" as established by the Small Business Administration (13 CFR 121.201), by having average annual receipts for the last three fiscal years of less than six million dollar
G. Notification of Award
It is expected that the contract shall be a one-year fixed price contract with options for two additional one-year periods.
It is expected that a decision selecting the successful audit firm will be made within one (1) week of the closing date for the receipt of proposals. Upon conclusion of final negotiations with the successful audit firm, all Offerors submitting proposals in response to this Request for Proposal will be informed, in writing, of the name of the successful audit firm.
Sincerely,
Anthony J. Samon, CPA
Chief Financial Officer
