RFP - Audit Services.v1
36 Pages
English

RFP - Audit Services.v1

-

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

Description

REQUEST FOR PROPOSALS CITY OF DICKINSON, TEXAS PROFESSIONAL AUDIT SERVICES FOR CITY OF DICKINSON, TEXAS RFP #0808-01 OPENING DATE: September 22, 2008 RFP # 0806-02 PROFESSIONAL AUDIT SERVICES FOR THE CITY OF DICKINSON RETURN REQUEST FOR PROPOSALS (RFP) TO: Physical Address Mailing Address DICKINSON CITY HALL CITY OF DICKINSON CITY SECRETARY CITY SECRETARY 1621 FM 517 EAST 2716 FM 517 EAST DICKINSON, TX 77539 DICKINSON, TX 77539 Sealed Proposals shall be received no later than: Monday, September 22, 2008, at 12:00 p.m. (Noon). Prospective respondents may obtain copies of the request for proposals at City Hall or downloaded from the Purchasing Page of the City of Dickinson’s website at www.ci.dickinson.tx.us. The City of Dickinson appreciates your time and effort in preparing a response to this request. No member of the governing body, officer or employee of the City of Dickinson shall have any interest, financial or otherwise, direct or indirect, in the contract. Minority and small business vendors or contractors are encouraged to submit proposals on any and all City of Dickinson projects. Please contact the Director of Finance if any requirements are causing you difficulty in responding to this request for proposal. Questions will be accepted until Thursday, September 18, 2008, at 5:00 p.m. The City of Dickinson will review all valid proposals after the submittal deadline. It is ...

Subjects

Informations

Published by
Reads 13
Language English



REQUEST FOR PROPOSALS
CITY OF DICKINSON, TEXAS




PROFESSIONAL AUDIT SERVICES FOR
CITY OF DICKINSON, TEXAS

RFP #0808-01


OPENING DATE:
September 22, 2008

RFP # 0806-02

PROFESSIONAL AUDIT SERVICES
FOR THE CITY OF DICKINSON


RETURN REQUEST FOR PROPOSALS (RFP) TO:

Physical Address Mailing Address
DICKINSON CITY HALL CITY OF DICKINSON
CITY SECRETARY CITY SECRETARY
1621 FM 517 EAST 2716 FM 517 EAST
DICKINSON, TX 77539 DICKINSON, TX 77539

Sealed Proposals shall be received no later than: Monday, September 22,
2008, at 12:00 p.m. (Noon).

Prospective respondents may obtain copies of the request for proposals at City
Hall or downloaded from the Purchasing Page of the City of Dickinson’s website
at www.ci.dickinson.tx.us. The City of Dickinson appreciates your time and effort
in preparing a response to this request.

No member of the governing body, officer or employee of the City of Dickinson
shall have any interest, financial or otherwise, direct or indirect, in the contract.

Minority and small business vendors or contractors are encouraged to submit
proposals on any and all City of Dickinson projects.

Please contact the Director of Finance if any requirements are causing you
difficulty in responding to this request for proposal. Questions will be accepted
until Thursday, September 18, 2008, at 5:00 p.m.

The City of Dickinson will review all valid proposals after the submittal deadline.
It is anticipated that within approximately three weeks after the submittal
deadline, the consultant deemed by the City as providing service at the best
value will be selected and will enter into contract negotiations with the City. If the
City and consultant are unable to reach agreement on a contract, the City may,
at its sole discretion, enter into negotiations with the next most qualified
respondent, and so forth. Please contact the Director of Finance at (281) 337-
6235 or email umathew@ci.dickinson.tx.us, to obtain results or if you have any
questions.


2


I. ANNOUNCEMENT

The City of Dickinson, Texas, is requesting proposals from qualified Certified
Public Accounting firms interested in providing professional audit services for the
City of Dickinson (“the City”) for the Fiscal Years ending September 30, 2008,
2009 and 2010. The City may extend the length of the contract for two, one year
periods. These audits are to be performed in accordance with generally accepted
auditing standards, the standards set forth for financial audits in the General
Accounting Office’s (GAO) Government Auditing Standards, the provisions of the
federal Single Audit Act of 1984 (as amended) and U.S. Office of Management
and Budget (OMB) Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations. Additionally, compliance with the policies and
procedures of the City of Dickinson and all federal, state, and local laws and
regulations is required.

There is no expressed or implied obligation for the City of Dickinson to reimburse
responding firms for any expenses incurred in preparing proposals in response to
this request.

II. COMMUNITY BACKGROUND

The City of Dickinson is a home rule city located between Houston and
Galveston on Interstate 45, approximately 30 miles south of Houston. The City of
Dickinson was incorporated in 1977, serves an area of 12.5 square miles, and
has a population of approximately 20,000. The City operates under a hybrid form
of Government with a Mayor-Council and an appointed City Administrator. The
City is governed by six (6) Council Members and a Mayor, elected at-large. The
Mayor is Julie Masters and the City Administrator is Julie Johnston.

The City’s Fiscal Year 2007-2008 General Fund operating budget is $8.6 million
dollars. The City received the Distinguished Budget Presentation Award for the
last two years. The City is a limited-service city offering police, EMS and first-
response fire services, public works, drainage, building inspection, code
enforcement, and storm water management. Solid waste is provided by private
contractor, and water and sewer services are provided by Galveston County
Water Control and Improvement District Number 1. The City has a total payroll
of approximately $5 million covering 129 employees (77 FTE and 52 PTE).

More detailed information on the government and its finances can be found in the
Comprehensive Annual Financial Report and Annual Operating Budget posted
on the city’s website at http://www.ci.dickinson.tx.us/finance.htm or may be
obtained by contacting Usha J. Mathew at (281) 337-6235.

There were no reportable conditions or adverse impact statements from the
auditor regarding any weaknesses in internal controls that would have caused a
concern by the auditors regarding the financial condition of the City of Dickinson.
3



III. PROJECT OVERVIEW

1. The City desires to select a qualified Certified Public Accounting firm to
audit financial statements for the City for the Fiscal Years ending
September 30, 2008, 2009 and 2010. The City will have the option of
extending the contract for such audit services for each of the two (2)
subsequent fiscal years based on satisfactory performance.

A. Audit Standards: Audits must be performed in accordance with
generally accepted auditing standards (GAAS) as set forth by
the American Institute of Certified Public Accountants, the
standards for financial audits set forth in the U. S. General
Accounting Office’s (GAO’s) Government Auditing Standards,
and the provisions of the U. S. Office of Management and
Budget (OMB) Circular A-133, Audits of State and Local
Governments, as well as the following additional requirements:
examination for compliance with the procedures, if any,
established by the City of Dickinson City Charter, City
Ordinances, City of Dickinson Financial Policies, and, where
applicable, State and Federal laws or regulations, including the
Texas Code of Criminal Procedures.

B. Term of Engagement: A three-year contract is contemplated,
subject to satisfactory performance, the satisfactory negotiation
of terms (including price acceptable to both the City and the
selected firm), the concurrence of the City Council, and the
annual availability of an appropriation.

C. Scope of Services: The scope of services for the City Audit
Services should include, but are not limited to, the following:

a. The auditor is expected to express an opinion on the fair
presentation of its general-purpose financial statements
of the City of Dickinson, and its component units in
conformity with the audit standards set out herein.

b. The auditor is expected to express an “in relation to”
opinion on the fair presentation of the City’s combined
and individual fund and account group financial
statements and schedules.

c. The auditor shall be responsible for performing certain
limited procedures involving required supplementary
information required by the Governmental Accounting
4


Standards Board as mandated by generally accepted
auditing standards.

d. The auditors shall perform appropriate audit testing and
reporting of its federally-funded programs, if any.

e. From time to time, the City may request the auditor to
perform other audits and reviews not specifically provided
for under this RFP. If such a request is made, the auditor
shall submit, at the City’s, a separate proposal for
completing the engagement, along with a proposed fee
schedule. The City reserves the right to contract any
additional audits or reviews with whomever they choose.


f. Reports to be Issued: Following the completion of the
audits of the fiscal year’s financial statements for the City,
the auditor shall issue:

i. A report on the examination and fair presentation
of the financial statements in conformity with
generally accepted accounting principles as a
whole.

ii. A report on compliance and internal controls over
compliance applicable to each major federal
program.

iii. A report on compliance and internal controls over
financial reporting based on an audit of the
financial statements.

iv. A report on the fair presentation of the
supplementary schedule of expenditures of federal
awards in relation to the audited financial
statements.

v. In the required reports on internal controls, the
auditor shall communicate any reportable
conditions found during the audit. A reportable
condition shall be defined as a significant
deficiency in the design or operation of the internal
control structure, which could adversely affect the
organizations' ability to record, process,
summarize, and report financial data consistent
5


with the assertion of management in the financial
statements.

vi. Reportable conditions that are also material
weaknesses shall be identified as such in the
report.

vii. Non-reportable conditions discovered by the
auditors shall be reported in a separate letter to
management, which shall be referred to in the
reports on internal controls.

viii. The reports on compliance shall include all
material instances of noncompliance. All non-
material instances of noncompliance shall be
reported in a separate management letter, which
shall be referred to in the report on compliance.

ix. 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 both
the Director of Finance and City Administrator.

g. Reporting to the Director of Finance. The auditors shall
inform the Director of Finance of each of the following:

i. The auditor’s responsibility under generally
accepted auditing standards.
ii. Significant accounting policies.
iii. Management judgments and accounting estimates
iv. Significant audit adjustments.
v. Other information in documents containing audited
financial statements.
vi. Disagreements with management.
vii. Management consultation with other accountants.
viii. Major issues discussed with management prior to
retention.
ix. Difficulties encountered in performing the audit.

D. Report Preparation: Audit reports for the City are to be
addressed to the Honorable Mayor, City Council and City
Administrator.
6



E. Schedule for the 2008 Fiscal Year Audit:

a. Interim Work: The auditor shall complete all interim
work by October 30, 2008 and September 15th of each
year thereafter.

b. Detailed Audit Plan: The auditor shall provide the City
thby October 30, 2008 and August 15 of each year
thereafter, both a detailed audit plan and a list of all
schedules to be prepared by the City.

thc. Fieldwork: Fieldwork may commence after October 30
of each year; however, working trial balances will not
thnormally be available until after November 30 of each
year. The auditor shall complete all fieldwork by January
, th20 2009 and January 12 of each year thereafter.

d. Draft Reports: The auditors shall have draft audit
reports and recommendations to management available
for review by the Finance Director by January 30, 2009
and January 22th of each year thereafter.

e. Entrance Conferences, Progress Reporting And Exit
Conferences: At a minimum, the following conferences
should be held by the dates indicated:
Week of

September 16 Entrance conference with Director of
Finance

The purpose of this meeting will be to discuss prior 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 work space and other needs of the auditor.

October 13 Progress conference with the Director of
Finance and other staff as appropriate

The purpose of this meeting will be to summarize the results of the
preliminary review and to identify the key internal controls or other
matters to be tested and discuss the year-end audit work to be
performed.
7


December 4 Entrance conference with the Director of
Finance to commence year-end audit work.

January 15 Exit conference with the Director of Finance
to summarize the results of the field work
and to review significant findings.

The purpose of this meeting will be to summarize the results of the
of the field work and to review significant findings.


F. Final Report Due Dates: The final reports are due on or before
February 10 of each year. Date for submission of the
management letter shall be no later than February 17.

G. Special Considerations:

a. The City may send its comprehensive annual financial
report to the Government Finance Officers Association of
the United States and Canada for review in its Certificate
of Achievement for Excellence in Financial Reporting
program. It is anticipated that the auditor will be required
to provide special assistance to the City to meet the
requirements of that program.

b. The City may require the auditor to comply with new
reporting requirements recently mandated by GASB
Statement No. 27, Accounting for Pensions by State and
Local Governmental Employers and if applicable, GASB
Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other than
Pensions.

c. The auditors shall observe the adequacy of the systems
of internal control. If weaknesses are noted, appropriate
findings and recommendations should be reviewed with
the Director of Finance and City Administrator.

d. The auditor is also required to issue a report for our
component unit (Bayou Lakes Public Improvement
District No. 1).

H. 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 five (5) years, unless the firm is
notified in writing by the City of the need to extend the retention
period.
8



a. The auditor will be required to make working papers
available, upon request, to the following parties or their
designees:
i. City of Dickinson;
ii. Federal Grant Agencies and other Federal
Agencies;
iii. State of Texas Grant Agencies and other State of
Texas Agencies; and
iv. Auditors of entities of which the City is a sub-
recipient of grant funds.

b. In addition, the firm shall respond to the reasonable
inquiries of successor auditors and allow successor
auditors to review working papers relating to matters of
continuing accounting significance.

I. Unless otherwise noted, the auditor will furnish all required
labor, materials, supplies and travel required in connection with
the project.


IV. Assistance Provided by City

1. Financial Department Assistance
a. Primary Contact
i. The auditor’s principal contact with the City of Dickinson will
be Usha Mathew, Director of Finance or a designated
representative, who will coordinate the assistance to be
provided by the City to the auditor
b. The auditors will coordinate their efforts with the Director of Finance
Officer to determine possibilities for fee reduction through utilizing
available financial and clerical staff and will endeavor to accomplish
the audit on a phased basis throughout the year to reduce the year-
end workload on the City’s financial activities.
c. The Finance Department staff and responsible management
personnel will be available during the audit to assist the firm by
providing information, documentation and explanations.
d. The preparation of confirmations will be the responsibility of the
City.

2. Statements and Schedules to be Prepared By City Staff:

a. The Finance Department staff will prepare necessary prepared by
client (PBC's) working papers normally required for the annual
audit.

9


b. All working papers to be prepared by the City must be submitted,
by written list, to the City on or before October 1 of each year,
together with adequate explanatory detail as to the purpose of the
working papers as well as method of preparing the working papers.
Most working papers and all lead schedules are prepared on
Microsoft Office Excel 2007 by the Finance Department.

3. Work Area, Telephones, Photocopying, and Facsimile Machines

a. The City will provide the auditor with reasonable work space, desks
and chairs. The auditor will also be provided with access to one
telephone line, photocopying and Facsimile machines.

4. Comprehensive Annual Financial Report

a. The proposal should include the preparation, editing and printing of
the CAFR including the general-purpose financial statements, the
notes to financial statement, combined and individual fund and
account group statements and schedules, and all required
supplementary schedules of the CAFR, and statistical information.

5. Fund Structure

a. The City used the following fund types and account groups in its
financial reporting:

Fund Type/Account Group Number of Individual Number with Legally
Funds Adopted Annual
Budgets
General Fund 1 1
Debt Service Fund 1 1
Capital Project Fund 1 1
Enterprise Fund 1 1
Special Revenue Fund 3 3
Discretely Presented Component Units 3 3

6. Budgetary Basis of Accounting

a. The City elects to adopt its annual budget on a basis consistent
with generally accepted accounting principles. Budgets are
adopted for all General and Proprietary Funds.
b. Capital Projects are adopted on a total project basis but are shown
in the annual budget for monitoring purposes.
10