2009 RFP audit services -September Final
18 Pages
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2009 RFP audit services -September Final

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Downloading requires you to have access to the YouScribe library
Learn all about the services we offer
18 Pages
English

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CTYIO DFAN,M REQUESTS FOR PROPOSALS I. INTRODUCTION A. General Information The City of Dayton is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the three (3) fiscal years ending December 31, 2009, 2010, and 2011, with the option of auditing its financial statements for each of the two subsequent fiscal years. These audits are to be performed in accordance with generally accepted auditing standards, and the standards for financial audits set forth in the U. S. General Accounting Office’s (GAO) Governmental Auditing Standards and State Legal Compliance audit requirements. There is no expressed or implied obligation for the City of Dayton to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. To be considered, an original and four copies of a proposal must be received by Julie Linnihan, Finance Director, at City Hall, 12260 S. Diamond Lake Road, Dayton, Minnesota, 55327, by 5 p.m. on Thursday, October 15th, 2009. The City of Dayton reserves the right to reject any or all proposals submitted. During the evaluation process, the City of Dayton reserves the right, where it may serve the City’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. At the discretion of the City, firms submitting proposals may be requested to make oral ...

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I, CFD T A Y O N M REQUESTS FOR PROPOSALS I. INTRODUCTION A. General Information The City of Dayton is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the three (3) fiscal years ending December 31, 2009, 2010, and 2011, with the option of auditing its financial statements for each of the two subsequent fiscal years. These audits are to be performed in accordance with generally accepted auditing standards, and the standards for financial audits set forth in the U. S. General Accounting Office’s (GAO) GovernmentalAuditing Standards and State Legal Compliance audit requirements. There is no expressed or implied obligation for the City of Dayton to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. To be considered, an original and four copies of a proposal must be received by Julie Linnihan, Finance Director, at City Hall, 12260 S. Diamond Lake Road, Dayton, Minnesota, 55327, by 5 p.m. on Thursday, October 15th, 2009. The City of Dayton reserves the right to reject any or all proposals submitted. During the evaluation process, the City of Dayton reserves the right, where it may serve the City’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. At the discretion of the City, firms submitting proposals may be requested to make oral presentations as part of the evaluation process. The City of Dayton reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Dayton and the firm selected. It is anticipated the selection of a firm will be on November 10th, 2009. B. Term of Engagement A three-year contract is contemplated with the option of auditing the financial statements for two subsequent fiscal years, subject to the annual review and the satisfactory negotiation of terms, the concurrence of the City Council and the annual availability of an appropriation. C. Subcontracting No subcontracting will be allowed without the express prior written consent of the City of Dayton.
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D. Description of Entities  The primary government consists of: (per 2008 audit) i. General Fund ii. Three Special Revenue Funds iii. Eleven Debt Service Funds iv. Seventeen Capital Project Funds v. Two Enterprise Funds vi. Two Trust and Agency Funds  Component Units The City of Dayton has no component units  Joint Venture The City of Dayton does not require auditing or reporting of joint venture activities II. NATURE OF SERVICES REQUIRED A. General The City of Dayton is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal years ending December 31, 2009, 2010, and 2011, with the option to audit the City’s financial statements for each of the two subsequent fiscal years. These audits are to be performed in accordance with the provisions contained in this request for proposal. Also to be included are audit services for a potential Federal Single Audit, as the City may be the recipient of Federal Grant proceeds related to the Brockton Interchange construction. Please list costs separately for this item on Exhibit D. This item is to be performed in accordance with the provision contained in this request for proposals. B. Scope of Work to be Performed The City of Dayton desires the auditor to express an opinion on the fair presentation of its basic financial statements in conformity with generally accepted accounting principles. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. City staff will complete and balance all accounts at year-end. The City will provide staff assistance as is reasonably available. The City will furnish the following information and work papers in conjunction with the audit engagement:  Trial balances for all funds subject to the audit.  Bank reconciliations for all accounts that are subject to the audit. Detailed reconciling records and other information as required by the auditing firm and mutually agreed upon.
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Services to be provided:  Auditor will prepare and process the City’s financial statement, footnotes and supplementary information using the City’s trial balance. The auditor will prepare a detailed management letter for the City. C. Auditing Standards to be Followed To meet the requirements of this request for proposals, the audit shall be performed in accordance with:  The auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States.  The provisions of the Single Audit Act of 1984 (as amended in 1996).  The provisions of the U.S. Office of Management and Budget (OMB) Circular A-133 if single audit is required.  The provision of the Minnesota Legal Compliance Audit Guide for Local Government. D. Reports to be Issued Following the completion of the audit of the fiscal year’s financial statements, the auditor shall have a conference with the City Administrator and Finance Director for the purpose of reviewing its audit findings and recommendations prior to issuance of management letters, certification, or reports. Following completion of the conference the auditor shall issue:  A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles.  A report on the compliance and internal control over financial reporting based on an audit of the financial statements.  A report on compliance with applicable laws and regulations. In the required report(s) on internal controls, the auditor shall communicate any control deficiencies found during the audit. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a deficiency or combination of deficiencies in internal control that is less than a material weakness, yet important enough to merit attention by those charged with governance. Deficiencies that are material weaknesses shall also be identified as such in the report. The reports on compliance shall include all instances of noncompliance. Irregularities and illegal acts. Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the City Administrator and City Council.
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Final reporting to the City Council. Auditors shall assure themselves that the City of Dayton’s City Council is informed of each of the following: 1. The auditor’s responsibility under generally accepted auditing standards. 2. Significant accounting policies. 3. Management judgments and accounting estimates. 4. Significant audit adjustments. 5. Other information in documents containing audited financial statements. 6. Disagreements with management. 7. Management consultation with other accountants. 8. Major issues discussed with management prior to retention. 9. Difficulties encountered in performing the audit. E. Special Conditions 1. The City of Dayton currently anticipates it will prepare one or more official statements in connection with the sale of future debt securities which will contain the basic financial statements and the auditor’s report thereon. The auditor shall be required, if requested by the underwriter, to issue a “consent and citation of expertise” as the auditor and any necessary “comfort letters”. F. Working Paper Retention and Access to Working Papers All working papers and reports must be retained, at the auditor’s expense, for a minimum of three (3) years, unless the firm is notified in writing by the City of Dayton of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees: City of Dayton  Office of the State Auditor  U.S. General Accounting Office  Parties designated by the federal or state governments or by the City of Dayton as part of an audit quality review process  Auditors of entities of which the City of Dayton is a sub-recipient of grant funds. In addition, the firm shall respond to the reasonable inquires of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. III. Description of Government A. Principal contacts The auditor’s principal contact will be Julie A. Linnihan, Finance Director, or a designated representative, who will coordinate the assistance to be provided by the City of Dayton to the auditor. B. Background Information The City of Dayton is located in the northwestern section of Hennepin County, Minnesota. A small portion is located in Wright County. The City encompasses an area of approximately 30 square miles and the estimated population is 5,059.
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Dayton is classified by the Metropolitan Council as a “developing community”. Developing communities are classified as such when it is anticipated that a substantial amount of the regions growth will occur in the foreseeable future. The Village of Dayton was established in 1855 and incorporated as a City on January 9, 1974. The City is a statutory city under the Plan B form of government. The City’s governing body consists of a Mayor and four Council members, all elected at large. The City offers a limited range of public services which include police, fire protection, construction and maintenance of streets and infrastructure, cultural and recreational activities and general administration. The City does provide sewer and water services to a limited, but growing number of properties. The city contracts with the City of Otsego and the City of Rogers for sewer services. The City has recently undertaken significant infrastructure improvements, related to water, sewer, street, and related infrastructure issues. This has provided utility services to both residential and commercial/industrial properties in NE Dayton (residential) and SW Dayton, specifically in the Wicht Industrial Park and surrounding sites. The City has also entered into an agreement with the City of Maple Grove to provide water service to SW Dayton for the foreseeable future. The City of Dayton anticipates the continued growth in the Industrial I-94 Park site as the community pursues the support and funding programs related to the Brockton Interchange, which will provide the City with a direct connection to the I-94 freeway system. The accounting and financial reporting functions are centralized and the City’s fiscal year is the calendar year. More detailed information on the government and its finances can be found in the Annual Financial Report for the year ended December 31, 2008, which are available on the City’s web site at www.cityofdaytonmn.com . C. Federal and State Assistance The City does anticipate it will need a single audit for 2009 pending notification of grant funding for the infrastructure grant program. D. Pension Plans All full time and certain part-time employees of the City are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota. E. Joint Ventures The City participates in the following joint venture:  LOGIS Insurance Group-Cooperative purchasing of health insurance benefits. F. Magnitude of Finance Operations The Finance Department is headed by Julie Linnihan, Finance Director and consists of one Finance Clerk. Typical functions include payroll, accounts payable, accounts receivable, cash management, accounting, fixed assets, special assessments, Tax Increment Financing reporting, utility billing, and financial reporting. IV. TIME REQUIREMENTS
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A. Proposal Calendar The following is a list of key dates up to and including the date proposals are due to be submitted.  Request for proposal issued September 29th, 2009  Due date for proposals October 15th, 2009  Review of Proposals October 19th through October 30th, 2009 B. Notification Selected firm notified November 10 th , 2009 C. Schedule for 2009 Fiscal Year Audit  The auditor shall provide the City of Dayton both a detailed audit plan and a list of all schedules to be prepared by the City.  The City will be prepared for fieldwork by March 15, 2010.  A schedule for interim work and fieldwork will be determined upon completion of the auditor selection process.  Fieldwork should be scheduled to allow for presentation of draft reports to the City Council by June, 2010. D. Entrance and Exit Conferences A similar time schedule will be developed for audits of future fiscal years. At a minimum, the following conferences should be held by the dates indicated on the schedule. These dates may be changed by mutual agreement between the City of Dayton and the selected auditor. Time Frame  Entrance conference with City Administrator and  Finance Director November 2009 The purpose of this meeting will be to discuss any  potential audit problems and the interim work to be  performed. This meeting will also be used to establish  overall liaison for the audit and to make arrangements  for workspace and other needs of the auditor. Entrance conference with Finance Director to commence year-end work January 2010  Exit conference with City Administrator, Finance Director May 2010 The purpose of this meeting will be to summarize  the results of the field work and to review significant  findings. V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION
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A. Finance and Clerical Assistance The finance staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation and explanations. The preparation of confirmations will be the responsibility of the City of Dayton upon direction of the auditor. Limited clerical support will be made available to the auditor for the location of documents and pulling requested documentation. B. Work Area, Telephones, Photocopying and FAX Machines The City of Dayton will provide the auditor with reasonable workspace, desks, and chairs. The auditor will also be provided with access to telephone lines, internet access, photocopying facilities, scanning and FAX machines. C. Report Preparation The auditor will be responsible for the preparation and processing of financial statements, footnotes and supplementary information for the City of Dayton. VI. PROPOSAL REQUIREMENTS A. General Requirements 1. Submission of Proposals-The following material is required to be received by 5:00 p.m. on October 15th, 2009, for a proposing firm to be considered: 1. Title Page - Title page showing the request for proposals subject; the firm’s name; the name, address and telephone number of the contact person; and the date of the proposal. 2. Table of Contents 3. Transmittal Letter - A signed letter of transmittal briefly stating the firm’s understanding of the work to be done, the commitment to perform the work within the time period, a statement why the firm believes itself to be best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer for 60 days. 4. Detailed Proposal – The detailed proposal should follow the order set forth in Section VI B of this request for proposals. 5. Executed copies of Proposer Guarantees and Proposer Warranties, attached to this request for proposal (Appendix A). 6. Proposers should send an original and four copies of the completed proposal to the following address: Julie A. Linnihan, Finance Director City of Dayton 12260 S. Diamond Lake Road Dayton, MN 55327
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2. Inquires Inquires concerning the request for proposal and the subject of the request for proposal should be made to: Julie A. Linnihan, Finance Director City Dayton 12260 S. Diamond Lake Road Dayton, MN 55327 B. Technical Proposal 1. General Requirements The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the City of Dayton in conformity with the requirements of this request for proposals. As such, the substance of proposals will carry more weight than their form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the request for proposals requirements. The Technical Proposal should address all the points outlined in the request for proposals. The Proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer's capabilities to satisfy the requirements of the request for proposals. While additional data may be presented, the following subjects, item Nos., 2 through 10, must be included. They represent the criteria against which the proposal will be evaluated. 2. Independence The firm should provide an affirmative statement that it is independent of the City of Dayton as defined by generally accepted auditing standards/the U.S. General Accounting Office's Government Auditing Standards . The firm should also list and describe the firm's professional relationships involving the City of Dayton or any of its agencies for the past (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. In addition, the firm shall give the City of Dayton written notice of any relevant professional relationships entered into during the period of this agreement. 3. License to Practice in Minnesota An affirmative statement should be included that the firm and all assigned key professional staff are properly registered/licensed to practice in Minnesota. 4. Firm Qualifications and Experience (See Appendix B)
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The Proposer should state the size of the firm, the location of the office from which the work on this engagement is to be performed, the size of the firm's governmental audit staff assigned to the office performing the audit, and the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number and nature of staff to be so employed on a part-time basis. If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve as the principal auditor should be noted, if applicable. The firm is also required to submit a copy of the report on its most recent external quality control review, with a statement whether that quality control review included a review of specific government engagements. The firm shall also provide information on the results of any federal or state desk reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.5. Partner, Supervisory and Staff Qualifications and Experience (See Appendix B) Identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialist, who would be assigned to the engagement. Indicate whether each such person is registered or licensed to practice as a certified public accountant in Minnesota. Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City of Dayton. However, in either case, the City of Dayton retains the right to approve or reject replacements. Consultants and firm specialists mentioned in response to this request for Proposal can only be changed with express prior written permission of the City of Dayton, which retains the right to approve or reject replacements. Other audit personnel may be changed at the discretion of the preparers provided that replacements have substantially the same or better qualifications or experience. 6. Prior Engagements with the City of Dayton List separately all engagements within the last three years, ranked on the basis of total staff hours, for the City of Dayton by type of engagement (i.e., audit, management advisory services, other). Indicate the scope of work, date, engagement partners, total hours, and the name of the principal client contact.
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7. Similar Engagements With Other Government Entities (See Appendix C) For the firm's office that will be assigned responsibility for the audit, list the most significant engagements (minimum 3, maximum 5) performed in the last three years that are similar to the engagement described in this request for proposal. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. Also, indicate if the engagement included a single audit (A-133) of federal awards. 8. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposal. In developing the work plan, reference should be made to such sources of information as City of Dayton’s budget and related materials, Capital Improvements program, organizational charts, manuals and programs, and financial and other management information systems. Proposers will be required to provide the following information on their audit approach: a. Proposed segmentation of the engagement. b. Level of staff and number of hours to be assigned to each proposed segment  of the engagement. c. Approach to be taken in drawing audit samples for purposes of tests of compliance. d. Sample size and the extent to which statistical sampling is to be used in the  engagement. e. Type and extent of analytical procedures to be used in the engagement. f. Approach to be taken to gain and document an understanding of the City  of Dayton’s internal control structure. g. Approach to be taken in determining laws and regulations that will be subject  to audit test work.
9. Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the City of Dayton. 10. Management Report
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The proposal should include sample formats for required reports. C. Dollar Cost Bid 1. Total All-inclusive Maximum Price The dollar cost proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses. The audit contract is to include telephone inquires and other assistance related to the audit and future audits requiring a minimum amount of time. The City of Dayton will not be responsible for expenses incurred in preparing and submitting the technical proposal or the dollar cost proposal. Such costs should not be included in the proposal. 2. Rates by Partner, Specialist, Supervisory and Staff Level Times, and Hours Anticipated for Each The second page of the dollar cost proposal should include a schedule of professional fees and expenses, presented in the format provided in the attachment (Appendix D) that supports the total all-inclusive maximum price. 3. Any out-of-pocket expenses including those for firm personnel (e.g., travel, lodging, and subsistence) for its employees shall be included in the total all-inclusive maximum price submitted by the firm. 4. If it should become necessary for City of Dayton to request the auditor to render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between City of Dayton and the firm. Any such additional work agreed to between City of Dayton and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the dollar cost proposal. 5. The pricing for the single audit (A-133) audit and financial statement preparation should each be reported separately on the fee proposal schedule Appendix D.  6. Manner of Payment Progress payments will be made on the basis of hours of work completed during the course of the engagement incurred in accordance with the firm's dollar cost proposal. Interim billing shall cover a period of not less than a calendar month. Payment of final billing will be held pending delivery of the firm's final reports. VII. EVALUATION PROCEDURES
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