RFP for Financial Audit Services

REQUEST FOR PROPOSAL             TOWN OF GREENWOOD

Proposal No. 20-01

Financial Audit Services

I.              Public Advertisement – Request for Financial Audit Services

The Town of Greenwood (hereafter “the Town”), 100 West Market Street, Greenwood, DE 19950, (Tele: 302-349-4534) is issuing this Request for Proposal (RFP) for the purpose of selecting an independent certified public accounting firm to perform audit services for the calendar year 2020 of the financial statements of the Town, as well as a compliance audit with the standards applicable to Financial audits contained in Government Auditing Standards.  The criteria for selection shall include experience and reputation, quality of the audit firm, capacity to perform and price. 

Interested parties must submit three (3) written proposals to the Town Manager, Hal Godwin, 100 West Market Street, P.O. Box 216, Greenwood, DE  19950 by 3 p.m. on Monday, January 4, 2021 at which time the proposals will be publicly opened, read aloud and recording only the name of the respondent(s).  All other information shall be confidential.  To be considered, priced proposals must be submitted in writing and respond to the items outlined in this RFP.  The award shall be made in writing to the respondent determined to be the most advantageous to the Town considering the evaluation criteria set forth in the RFP.  No other factors or criteria will be used in the evaluation.

The request for proposals may be obtained by visiting the Town’s website www.greenwood.delaware.gov. or by contacting Hal Godwin, Town Manager, 100 West Market Street, Greenwood, Delaware, Telephone: (302) 349-4534, email: hgodwin@townofgreenwood.us  The proposals may be obtained during regular business hours which are 8 a.m. to 5 p.m., Monday through Friday or visiting the Town’s website.

II.            Instructions for Proposals

Each written proposal must be submitted in a sealed envelope, addressed to Mr. Hal Godwin, Town Manager, Greenwood Town Hall, 100 West Market Street, Greenwood, DE  19950.  Each sealed envelope containing a proposal must be plainly marked on the outside as “2020 Audit Proposal” and bear the name and address of the respondent.  If sent by mail, the sealed envelope should be sent certified mail and be indicated as received on the certified receipt prior to the Bid Opening.  Late bids will not be accepted.

The Town reserves the right to reject any all bid proposals, to waive any informalities in bids received, except with respect to the date, time and place where the documents are submitted, to cancel this RFP in whole or in part, to reissue this RFP and/or to accept or reject items of bids received.  In the event this RFP is cancelled in whole or in part prior to the opening of proposals, all respondents shall receive a notice of cancellation and all proposals received shall be returned to the respective respondents unopened.

Fax or emailed proposals will not be accepted.

Interested parties are asked to submit three (3) written proposals to the Town Manager, Hal Godwin, 100 West Market Street, P.O. Box 219, Greenwood, DE  19950 at which time the proposals will be publicly opened, read aloud and recording of only the name of the respondent(s).  All other information shall be confidential.

Awards, if any, will be performed by a Certified Public Accountant in accordance with provisions of Sections 348 and 7002(j), Title 9, of the Delaware Code Annotated.

Mailing Address:            Mr. Hal Godwin, Town Manager

                                                     Greenwood Town Hall

                                          100 W. Market Street

                                          P.O. Box 216

                                          Greenwood, DE  19950

Delivery Address:                     Mr. Hal Godwin, Town Manager

                                                     Greenwood Town Hall

                                          100 W. Market Street

                                          Greenwood, DE  19950

Telephone Number:       (302) 349-4534

III.         General Information

The Town has a dedicated staff ready to assist you in the performance of the audit.  The Town has well-organized paper and electronic records to assist the auditors in being able to easily locate needed documents.  These factors are indications that the selected audit firm should expect to be able to perform an efficient and effective audit, one free from any unnecessary time delays.

Proposed schedule:

Receipt of proposal responses                         January 4, 2021

Selection of vendor by Town Council             February 10, 2021

The initial contract will be for one (1) year for the calendar year 2020.  The Town reserves the right to extend the contract for a period of one (1) additional year by mutual agreement of both parties.

The RFP, and the selected audit firm’s proposal, will become part of the contract.

Scope and Deliverables

This audit will include the financial statements of the Governmental Activities, the Business Type Activities, each major fund, fiduciary funds, and the aggregate remaining fund information, which collectively comprise the basic financial statements for the 2020 Calendar Year for the Town.

This audit shall be in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and OMB Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance).  The scope of this audit shall include examination of transactions and areas of operation in sufficient detail to allow the audit firm to render an audit opinion.

Given the absence of any unnecessary delays on the part of the Town, we require the following for this audit:

·       A formal pre-audit conference with the Town Manager and Finance Department and any other applicable members of management.  This pre-audit conference will include explanations of the test to be performed that will enable the firm to form its audit opinion, as well as a discussion on key deliverables and target dates.

·       Timely manager and partner review during the audit.

·       Weekly update meetings with the Town Manager and Finance Department and any other applicable members of management.

·       Phone calls and emails returned by the audit firm on a timely basis during the course off the audit.

·       Timely resolution of issues during the audit but with resolution of all outstanding issues by ____________________, 2021.

·       A formal post-audit conference with the Town Manager and Finance Department and any other applicable members of management.  This post-audit conference will include explanations of any findings developed as a result of the audit, the level of materiality of each finding, and which report, if any, the finding will appear in.

·       The issuance of the draft audit reports by ______________________, 2021.

IV.          Required Submittals

The following information shall be provided in the proposal.  Failure to respond to any request for information may result in rejection of the proposal in the sole discretion of the Town:

·       Delaware Business License:  Provide evidence of a valid business license to practice certified public accounting in the State of Delaware.

·       Conflict of Interest:  Audit firm ownership, management and team members must not be employees or related to employees of the Town.

·       The audit firm’s office of engagement must have demonstrated experience in the following:

o   Audit of governmental financial statements and with helping the audited entity in obtaining the GFOA Certificate of Excellence in Financial Reporting.

o   A single audit as specified in the Uniform Guidance.

Please provide a record of the firms experience in these areas.  List the most significant engagements performed in the last three (3) years that are similar to the engagement described in this RFP and provide references for at least two of these engagements.  Also, please provide a copy of the report of the firms most recent external quality control review (as well as a copy of the letter of comment if applicable) with an indication whether the review includes specific government engagements.

The firm shall certify that it has not been suspended or debarred from performing government or municipal audits or any other governmental activity, and that it has not been the subject of any disciplinary action in any jurisdiction during the past three (3) years.

·       The audit firms audit approach and proposed work plan:  Proposers are required to submit the following information at a minimum:

o   The proposed phases of the audit and what is included in each phase.

o   The level of staff and approximate number of hours to be assigned to each proposed phase.

o   Approach used to identify internal controls.

o   Approach to be taken in acquiring samples for testing.

o   Use of any computer software.

·       Support for how the audit firm can perform in the required timeframes.  Please state the size of the firm, the size of the firm’s governmental/municipal audit staff, that the staff has received adequate professional education, the location of the office from which this work is to be performed, and the number of professional staff to be working on this engagement.  Please provide the approach to be taken in managing the audit and in ensuring appropriate time and staff commitments to meet deadlines.

·       Proposed audit team:  The audit firm shall include the qualifications/experience of the proposed Audit Partner(s), Audit Manager(s), Audit In-Charge(s) and Audit Staff for this engagement.  Also indicate how the quality of the audit team over the term of the agreement will be assured.

V.            Proposal Modifications

Any changes, amendments, or modifications to a proposal must be made in writing, submitted in the same manner as the original response, and conspicuously labeled as a change, amendment, or modification to a such previously submitted proposal.  Changes, amendments, or modifications to proposals shall not be accepted or considered after the time and date specified as the deadline for submission of proposals.

Proposals which do not meet or comply with the instructions to this RPF may be considered non-conforming and deemed non-responsive and subject to disqualification at the sole discretion of the Town Manager.

The Town reserves the right to reject any and all proposals received in response to this RFP, or to make no award, or to issue a new RFP.  The Town also may waive or modify any information, irregularity, or inconsistence in proposals received.

VI.          Insurance Requirements

The awarded audit firm shall be required to secure, maintain and provide evidence of insurance, acceptable to the Town, as indicated below:

·       Professional liability (or errors or omissions liability) insurance that insures against claims alleging acts, errors and omissions arising out of or in connection with the services provided to the Town, with minimum limits of $2,000,000 per occurrence and $2,000,000 annual aggregate.

·       Employee theft insurance including client’s property coverage, insuring all employees providing services to the Town, with minimum limits of $2,000,000 per each occurrence.

·       Worker’s Compensation – Statutory limits for all of the audit firm’s employees and employers’ liability insurance with minimum limits of $100,000 each accident for bodily injury by accident; $100,000 each employee for bodily injury by disease; and $500,000 policy limit for bodily injury by disease.

·       Commercial general liability insurance that insures against bodily injury, property damage, personal and advertising injury claims arising out of or in connection with the services provided to the Town.  The minimum limits of liability for this insurance are $1,000,000 combined single limit each occurrence; $1,000,000 personal and advertising injury; $2,000,000 combined single limit general aggregate; and $1,000,000 combined single limit products/completed operations aggregate.

The commercial general liability policy shall specifically name the Town of Greenwood and its elected and appointed officials, officers, directors, employees, agents, consultants as an additional insured, on a primary and non-contributory basis.

Liability insurance as required hereunder shall be in force and current evidence of insurance must be on file with the Town, throughout the term of the contract.  Each policy shall be endorsed to provide that the policy is not subject to cancellation or non-renewal until sixty (60) days advance written notice has been given to the Town.  For cancellation due to non-payment, ten (10) days prior written notice is due to the Town.

All insurers underwriting the audit firm’s insurance must be allowed to do business in the State of Delaware and acceptable to the Town.  The insurers must have a Best’s Financial Strength Rate of “A-” or better, and a Financial Size Category of “Class VII” or higher, unless the Town grants specific approval for an exception.

If any liability insurance purchased by the audit firm has been issued on a “claims made” basis, the audit firm must comply with the following additional conditions.  The limits of liability and the extensions to be included remain the same.

Audit Firm must either:

·       Agree to provide certificates of insurance to the Town evidencing the claims-made coverages for three (3) years after termination of the contract.  Such certificates shall evidence a retroactive date no later than the beginning of services under the contract; or

·       Purchase a three (3) year extended reporting period endorsement for each such “claim made” policy in force as of the date of termination of the contract, and evidence the purchase of this extended reporting period endorsement by means of a certificate of insurance and a copy of the endorsement itself.  Such certificate or copy of the endorsement shall evidence a retroactive date no later than the beginning of services under the contract.

Any deductibles or retentions of $5,000 or greater shall be disclosed by the audit firm and are subject to the Town’s written approval.  Any deductible or retention amounts elected by the audit firm and are no chargeable as expenses.

The audit firm will be responsible for loss of or damage to the audit firm’s property, equipment and materials and shall waive all rights against the Town and its elected and appointed officials and employees for loss of or damage to the audit firm’s property, equipment and materials.  Any property insurance policies maintained by the audit firm shall permit waivers of subrogation by endorsement or otherwise.

The audit firm shall indemnify, defend, and hold harmless the Town and its elected and appointed officials, officers, directors, employees, agents, consultants from and against any and all claims, demands, suits, judgments, costs and expenses asserted by a person or persons, including agents, employees, or volunteers of vendor by reason of death or injury to person, or loss or damage to property, resulting from operations hereunder, or sustained in or upon the premises of the Town.

VII.       Price Proposal

Firms shall provide the price proposal as outlined below:

Price for the audit (including support for how the price was determined such as hourly rates and number of hours):

·       The price of the Town Financial Statement Audit in accordance with the Uniform Guidance.

·       The hourly price for additional services that may be needed.  Examples of these additional services are as follows:

o   Audit of constitutional offices at the end of term of the elected official.

o   Assistance in answering technical questions or other related work as needed.

o   Assistance with Internal Revenue Service matters if needed

o   Assistance with bond issues.

o   Assistance with specific financial statements or financial schedules.

o   Research and implementation assistance of new governmental accounting standards.

o   Any other items no mentioned but which may develop or be required from time to time.

VIII.     Evaluation and Section Process

Based on the criteria established, an evaluation committee will be selected to read, screen, and rank in writing all proposals.  In accordance with 29 Del. C. Sec. 6982(b), the evaluation committee shall determine that all applicants meet the minimum qualifications to perform the services.  It shall then interview, at a minimum, the highest ranked firm and may request a presentation from the firm(s).  Interviews and presentations may result in a change of rank.  At any point in the negotiation process, the evaluation committee and the requesting department may, at its discretion, terminate negotiations with any and all firms.  The evaluation committee may require the firm with whom it is negotiating to execute a truth-in-negotiation certificate stating the wage rates and other factual unit costs supporting the compensation are accurate, complete and current at the time of contracting.  The contract shall include a provision stating that the original contract price and any additions thereto, shall be adjusted to exclude significant sums where the requesting department determines the contract price was increased due to inaccurate, incomplete or noncurrent wage rates and other factual unit costs.  Such adjustments shall be made within one (1) year following the end of the contract.

IX.          Evaluation Criteria

Proposals will be evaluated based on the following criteria (maximum of 100 points).  The proposals will be evaluated for:

·       EXPERIENCE AND REPUTATION – With performing the audit indicated in the request for proposal.  20 points

·       QUALITY OF THE AUDIT FIRM – Firm’s work plan, audit approach and audit techniques.  20 points

·       CAPACITY TO PERFORM – Complete each audit in the necessary timeframes.  20 points

·       CREDENTIALS AND EXPERIENCE – Audit partners, audit manager, audit in-charge and audit staff on engagement.  20 points

·       PRICE – 20 points