Independent Auditor Request for Proposal

Rural Human Services has used the services of its present accounting firm for the past five years. While we are pleased with their services, our Audit Policy requires that a competitive bid process be used to select an auditor at least every five years. Upon being chosen, the auditor will be awarded a three year contract. After three years the Board will review the contract and decide whether to extend the contract an additional two years.

 

Our accounting firm provides the following services:

 

·        Audit of the financial statements for the years ending June 30th.

·        Preparation of the related management letter.

·        Presentation of the results of the audit and the management letter to the Board.

·        Preparation of the Agency’s Federal and state tax returns.

·        Preparation of the Agency’s California Registration/Renewal Fee Report.

·        Limited consultation on financial and tax matters of the Agency.

 

The primary users of the financial statements are the Board of Directors and Federal, state and other funding organizations.

 

Your firm has been selected as a candidate to provide these services, and is hereby invited to submit a written proposal. Please note that your proposal fees should be for a three year period, beginning June 30, 2010, and include an option of a two year extension for the years ended June 30, 2013 and 2014. The proposal should be based on a single, annual fee for the services outlined above.

 

In an effort to minimize the time required by you to prepare your proposal, we have provided the following information for your consideration.

INTRODUCTION


Rural Human Services is a 501 (c) (3) non-profit agency formed in 1981 to provide human services and community programs that improve the lives of the residents of Del Norte County. The Agency currently has forty-four full and part time staff members and salaries and wages approaching a million dollars. For the fiscal year ended June 30, 2009 total support and revenue was $2,619,112 provided by over forty funding sources. Total assets were $1,899,768, most of which is the cost of our domestic violence facility. The Agency leases its offices under a fifteen year lease that expires at the end of 2013.


SCOPE OF WORK


The scope of work will include auditing the statement of financial position of Rural Human Services as of June 30, 2010, 2011 and 2012, and the related statement of activities, functional expenses and cash flows for each of the years then ended. Also the following additional information accompanying the basic financial statements will be subjected to the auditing procedures applied in the audit of the financial statements:

·        Reconciliation of Workforce Investment Act Expenses

·        Reconciliation of Workforce Investment Act Revenues

·        Statement of Expenditures of Federal Awards

·        Notes to Statement of Expenditures of Federal Awards


The Proposer should provide a professional opinion about whether the financial statements are fairly represented, in all material aspects, in conformity with U.S. generally accepted accounting principles and according to the standards for financial audits contained in Government auditing standards, issued by the Comptroller General of the United States; the Single Audit Act and its Amendments; the provisions of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, OMB Circular A-122, Cost Principals for Nonprofit Organizations, OMB Circular A-110, Grants and Agreements of Higher Education, Hospitals, and Other Nonprofit Organizations, and the Bureau of Workforce Investment-Financial Management Technical Assistance Guide.


The Proposer will prepare a draft of the financial statements, schedules and notes that will be reviewed and approved by Rural Human Services prior to their issuance. Proposer will then provide final reports for internal use and external distribution. These reports should be provided in both paper and electronic format.


ADDITIONAL SCOPE OF WORK 


The scope of work will also include preparation of the IRS Form 990 and California State tax return along with the Agency’s California Registration/Renewal Fee Report for the years ended June 30, 2010, 2011 and 2012 with the option of a two year extension for the years ended June 30, 2013 and 2014.


SCHEDULE OF AUDIT WORK


The Proposer must demonstrate in this proposal a time schedule to ensure full completion of the audit within required timeframes. The proposer must include a schedule for on-site work, and times which will be needed to complete the audits. These must be made in advance so that the appropriate records can be made available. The examination can commence upon written notification to the proposer. All audit reports must be submitted to the Agency according to the regulations set forth in OMB Circular A-133.


COST OF THE AUDIT WORK


Quotes must be submitted as to the cost of the audit. Please also give an estimated quote for the audit for the option years ending June 30, 2013 and 2014.


PROPOSER’S BACKGROUND AND EXPERIENCE


The Proposer shall give any information indicating the firm’s background and experience in auditing a program like or similar to the type under consideration. This should include specific, separate information about the size, types and number of agencies audited under OMB Circular A-133.


SIZE AND ORGANIZATIONAL STRUCTURE OF FIRM


The Proposer should state the size of the firm and the location of the office from which work on this engagement is to be performed. The Proposer should also submit a copy of the report on its most recent external quality control review, with a statement whether that quality review included a review of specific government engagements.


PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE


The Proposer should identify the principle supervisory management staff, including engagement partners, managers and other staff who will be assigned to this engagement. The Proposer should also provide information on the government auditing experience of each person.


PROPOSAL SUBMISSION


Proposals should be submitted to Donald C. Youtsey, Director of Fiscal Services, Rural Human Services, 286 M Street, Crescent City, Ca 95531 by Monday March 1, 2010. The cost to develop and submit a proposal in response to this Request for Proposals is not reimbursable.


OTHER INFORMATION


Retention of Records: The audit reports and related working papers shall be retained by the Proposer for three years after the issuance of the audit report. They shall be made available to Rural Human Services upon request.


Restrictions Against Disclosure: The Proposer agrees to keep all information in strict confidence, other than reports submitted to Rural Human Services. The Proposer agrees to take reasonable measures necessary to restrict access to all information, except those staff of the Proposer and the Agency who are directly involved in the process. In the event the Proposer determines or has reason to suspect a breach of this agreement, the Proposer agrees to immediately notify Rural Human Services in writing.


Payment Schedule: The Proposer shall invoice and the Agency shall pay, two-thirds of the agreed upon cost, upon the completion of field work, and the remaining balance upon completion of the services per the contract.


Selling, Transferring or Assigning Contract: No part of any contract awarded under this agreement shall be sold, transferred or assigned without the written approval of Rural Human Services.


Length of Contract: Rural Human Services intends to enter into a three year agreement with the selected accounting firm, with the option to extend the contract for an additional two year period.


Thanks you for your consideration. We look forward to your response.


Sincerely,


Donald C. Youtsey

Director of Fiscal Services

Rural Human Services

(707) 464-7441 Ext. 237

dyoutsey@ncen.org 

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