REQUEST FOR PROPOSALS TO PERFORM THE ANNUAL AUDIT
OF THE
ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT
AND YOUTH CONSERVATION CORPS
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDING JUNE 30, 2007
I.
Introduction
The State of New Mexico Energy, Minerals and Natural Resources Department
(EMNRD), is requesting proposals from Independent Public Accountants (IPAs) to
perform the annual financial and compliance audit of EMNRD’s financial
statements for the fiscal year ending June 30, 2007, as well as the Youth
Conservation Corps, which is administratively attached to EMNRD. EMNRD has
approximately 500 employees, about 185 of whom work in Santa Fe, with the
remaining working in Parks, Forestry, and Oil Conservation District Offices
throughout New Mexico. YCC has two full-time employees who are located in
Santa Fe.
Pursuant to the Audit Act, NMSA 1978, Section 12-6-3(A):
The financial affairs of every agency shall be thoroughly
examined and audited each year by the state auditor,
personnel of his office designated by him or by independent
auditors approved by him. The comprehensive annual
financial report the state shall be thoroughly examined and
audited each year by the state auditor, personnel of his office
designated by him or by independent auditors approved by
him. The audits shall be conducted in accordance with
generally accepted auditing standards and rules issued by the
state auditor.
II.
Scope of Work
The successful IPA shall conduct a financial and compliance audit of EMNRD’s
and YCC’s general purpose financial statements and the combining, individual
fund, and account group financial statements for the period from July 1, 2006
through June 30, 2007. Such audit shall be conducted in accordance with
2.2.2.10.D NMAC as specified below:
(1)
(2)
(3)
(4)
Generally Accepted Government Auditing Standards;
Codification of Statements on Auditing Standards (SAS);
OMB Circular A-133, Audits of States, Local Governments and NonProfit Organizations (June 2003 revision);
AICPA Audit Guide, Government Auditing Standards and Circular A133 Audits;
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(5)
(6)
AICPA Audit and Accounting Guide, State and Local Governments;
and
2.2.2 NMAC, Requirements for Contracting and Conducting Audits
of Agencies.
The annual audit report must be received in the Office of the State Auditor no later
than 60 days after the Financial Control Division of the Department of Finance and
Administration provides the State Auditor with notice that EMNRD’s books and
records are ready and available for audit (2.2.2.9A.1 NMAC). EMNRD, in
conjunction with the successful IPA, shall identify a schedule of audit deliverables
and agree to milestones for the audit to ensure that EMNRD’s books and records
are ready and available for audit and the auditor delivers services on time. The
60-day audit deadline shall be based on a schedule of deliverables and
milestones; however, the deadline cannot extend beyond December 15, 2007.
Pursuant to 2.2.2.8.B(3) NMAC, EMNRD is seeking a contract for audit services
for EMNRD and YCC in accordance with the Procurement Code, NMSA 1978,
Sections 13-1-28 through -199, General Services Department 1.4.1 NMAC,
Procurement Code Regulations; and Department of Finance and Administration
2.40.2 NMAC, Governing the Approval of Contracts for the Purchase of
Professional Services.
The audit shall cover EMNRD’s and YCC’s entire operations and shall be
comprised of a financial and compliance audit of the statements and schedules at
the individual fund level. The scope of the audit includes government-wide financial
statements, fund financial statements, budget comparison statements, notes to the
financial statements, component unit fund financial statements and related
combining statements, and combining financial statements.
All financial statements and notes presented in the annual audit shall be in
conformity with accounting principles generally accepted in the United States of
America.
EMNRD is seeking the following audit services:
a.
Financial statement audit;
b.
Federal single audit;
c.
Financial statement preparation;
d.
Internal controls;
e.
Audit of cash receipts and cash control of at least five (5) field
Districts or Parks that EMNRD selects;
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f.
Financial and compliance audit of at least three (3) concessionaires
located within State Parks as EMNRD selects;
g.
Financial and compliance audit of at least five (5) EMNRDadministered grant programs that EMNRD selects.
Potential Offerors may view EMNRD’s and YCC’s Fiscal Year 06 audit to learn about
EMNRD and YCC, including their histories, organizational structure, financial statements,
programmatic information, federal funds received, bond series and statements of net
assets by visiting the EMNRD website at the following link:
www.emnrd.state.nm.us
The successful IPA shall provide 10 copies of EMNRD’s audit report to EMNRD no later
than 60 days after the Financial Control Division of the Department of Finance and
Administration provides the State Auditor with notice that EMNRD’s books and records
are ready and available for audit.
III.
Proposal Discussions with Individual Offerors
EMNRD reserves the right to conduct discussions with responsible offerors who
submit acceptable or potential acceptable proposals, but may accept proposals
without such discussions. If such discussions are held, EMNRD may establish a
common date for the submission of the best and final offers.
IV.
Small and Minority Audit Firms
In accordance with Common Rule A-102, small audit firms and audit firms owned
by small and minority firms, women’s enterprises shall have the maximum
practicable opportunity to participate in contracts awarded.
V.
Amendments
This RFP shall not be modified in any way except by EMNRD’s written
amendment. Offerors shall acknowledge receipt of any and all amendments in
writing.
VI.
Cancellation
This RFP may be canceled or any and all proposals may be rejected in whole or in
part whenever EMNRD determines such action is in its best interest or the best
interests of the State of New Mexico. In no event shall EMNRD pay any costs
incurred by Offerors in the preparation or submission of a proposal.
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VII.
Contract Terms
2.2.2.14.B.(6) NMAC, requires that audit firms provide their most recent external
quality control review report upon submitting a bid proposal or offer.
EMNRD shall award a contract in accordance with the general terms of the
attached standard State of New Mexico Audit Contract sample and in accordance
with this RFP’s requirements. Prospective Offerors must be willing to sign the
standard contract form or their proposal will be considered unresponsive. EMNRD
is requesting a multi-year proposal to provide services, not to exceed a term of
three years including renewals. The term of the contract shall be for one-year, with
the option to extend for two successive one-year terms at the same price, terms
and conditions as stated in the original proposal.
IX.
Professional Liability Insurance
The successful IPA shall procure and maintain professional liability insurance
covering any error or omission committed during the term of the Agreement. The
IPA shall provide proof of such insurance to the State Auditor with the firm profile.
The amount maintained should be commensurate with risk assumed.
X.
Compliance with Workers Compensation Act
The successful IPA agrees to comply with state laws and rules pertaining to
workers’ compensation coverage for its employees. If the successful IPA fails to
comply with the Workers’ Compensation Act and applicable rules when required to
do so, the contract may be canceled effective immediately.
XI.
Form of Proposals
Proposals must, at a minimum, contain the following information:
A.
Offeror’s name, address and telephone number.
B.
Capability of firm:
Resources including the number of firm team members and total
audit hours available, independence, information system audit,
quality control reviews, copy of the most recent external quality
control review report and references.
C.
Work requirements & technical approach:
Knowledge of audit objectives, technical plan, start and end dates,
plans for use of internal staff, plans for conducting subsequent years
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audits
D.
Technical Experience:
Government audit experience of on-site manager and the name of
the on-site manager, team audit experience with agencies similar to
EMNRD and their names, GASB 34 and 37 experience, and
continuing education.
F.
Offeror's hourly composite rate, total estimated hours to complete the audit,
and the total cost the offeror shall charge EMNRD to perform the audit.
Offerors shall include all out-of-pocket audit-related expenses, including
travel, in the composite rate. The cost proposed must be provided in the
following format, for each year of the multi-year bid:
Hours
Financial statement audit
Federal single audit
Financial statement preparation
GASB 34 & 37 compliance
Other (specifically identify)
G.
Cost
$
$
$
$
$
Sub-total
$
Gross Receipt Tax
$
Total Compensation
$
The original signature of the Offeror or of any employee or officer who has
the authority to bind the Offeror. The signature shall be executed and dated
as follows:
Dated this ______ day of ________, 2007
By: ________________________________________________________
Title: ______________________________________________________
The person whose signature appears above is authorized to contractually
bind this company.
H.
Offerors must also complete and sign the Campaign Contribution
Disclosure Form (attached) with their proposals.
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XII.
Proposal Evaluations
EMNRD shall evaluate all competitive sealed proposals based on the “Audit
Contract Proposal Evaluation Form” attached to this RFP.
XIII.
Contact Person and Submission of Proposals
An original and two (2) signed copies of proposals must be received no later than
Noon, Thursday, May 31, 2007 at the Energy, Minerals and Natural Resources
Department, Administrative Services Division, 1220 South St. Francis Drive, Santa
Fe, New Mexico 87505; Attention: Kim Keahbone. Potential Offerors desiring
further information may contact Ms. Keahbone at (505)-476-3258.
“PROPOSALS FOR FINANCIAL AND COMPLIANCE AUDIT ASSISTANCE" must
be printed on the envelope.
Absolutely no exceptions shall be made for proposals not received at the above
location by the appointed time. Fax or e-mailed proposals shall not be accepted.
XIV.
Notices
Award of contract(s) is/are contingent upon sufficient appropriations and
authorization being made by the Legislature of the State of New Mexico.
The Procurement Code, NMSA 1978, Sections 13-1-28 through 13-1-199, as
amended, imposes civil and criminal penalties for its violation. In addition, New
Mexico criminal statutes impose penalties for bribes, gratuities and kickbacks.
Offerors must factor in Gross Receipts Tax (GRT) costs as part of their
responses. Any response that does not clearly indicate GRT is included in the
cost section may be deemed non-responsive and rejected.
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CAMPAIGN CONTRIBUTION DISCLOSURE FORM
Pursuant to NMSA 1978, § 13-1-191.1 (2006), any person seeking to enter into a
contract with any state agency or local public body for professional services, a
design and build project delivery system, or the design and installation of
measures the primary purpose of which is to conserve natural resources must
file this form with that state agency or local public body. This form must be filed even if
the contract qualifies as a small purchase or a sole source contract. The prospective
contractor must disclose whether they, a family member or a representative of the
prospective contractor has made a campaign contribution to an applicable public official
of the state or a local public body during the two years prior to the date on which the
contractor submits a proposal or, in the case of a sole source or small purchase
contract, the two years prior to the date the contractor signs the contract, if the
aggregate total of contributions given by the prospective contractor, a family member or
a representative of the prospective contractor to the public official exceeds two hundred
and fifty dollars ($250) over the two year period.
Furthermore, the state agency or local public body shall void an executed contract or
cancel a solicitation or proposed award for a proposed contract if: 1) a prospective
contractor, a family member of the prospective contractor, or a representative of the
prospective contractor gives a campaign contribution or other thing of value to an
applicable public official or the applicable public official’s employees during the
pendency of the procurement process or 2) a prospective contractor fails to submit a
fully completed disclosure statement pursuant to the law.
THIS FORM MUST BE FILED BY ANY PROSPECTIVE CONTRACTOR WHETHER
OR NOT THEY, THEIR FAMILY MEMBER, OR THEIR REPRESENTATIVE HAS
MADE ANY CONTRIBUTIONS SUBJECT TO DISCLOSURE.
The following definitions apply:
“Applicable public official” means a person elected to an office or a person appointed
to complete a term of an elected office, who has the authority to award or
influence the award of the contract for which the prospective contractor is
submitting a competitive sealed proposal or who has the authority to negotiate a
sole source or small purchase contract that may be awarded without submission
of a sealed competitive proposal.
“Campaign Contribution” means a gift, subscription, loan, advance or deposit of
money or other thing of value, including the estimated value of an in-kind
contribution, that is made to or received by an applicable public official or any
person authorized to raise, collect or expend contributions on that official’s behalf
for the purpose of electing the official to either statewide or local office.
“Campaign Contribution” includes the payment of a debt incurred in an election
campaign, but does not include the value of services provided without
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compensation or unreimbursed travel or other personal expenses of individuals
who volunteer a portion or all of their time on behalf of a candidate or political
committee, nor does it include the administrative or solicitation expenses of a
political committee that are paid by an organization that sponsors the committee.
“Family member” means spouse, father, mother, child, father-in-law, mother-in-law,
daughter-in-law or son-in-law.
“Pendency of the procurement process” means the time period commencing with the
public notice of the request for proposals and ending with the award of the
contract or the cancellation of the request for proposals.
“Person” means any corporation, partnership, individual, joint venture, association or
any other private legal entity.
“Prospective contractor” means a person who is subject to the competitive sealed
proposal process set forth in the Procurement Code or is not required to submit
a competitive sealed proposal because that person qualifies for a sole source or
a small purchase contract.
“Representative of a prospective contractor” means an officer or director of a
corporation, a member or manager of a limited liability corporation, a partner of a
partnership or a trustee of a trust of the prospective contractor.
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DISCLOSURE OF CONTRIBUTIONS:
Contribution Made By:
Relation to Prospective Contractor:
Name of Applicable Public Official:
Date Contribution(s) Made:
Amount(s) of Contribution(s)
Nature of Contribution(s)
Purpose of Contribution(s)
(The above fields are unlimited in size)
(Attach extra pages if necessary)
___________________________
_______________________
Signature
Date
___________________________
Title (position)
--OR—
NO CONTRIBUTIONS IN THE AGGREGATE TOTAL OVER TWO HUNDRED FIFTY
DOLLARS ($250) WERE MADE to an applicable public official by me, a family member
or representative.
______________________________
Signature
_______________________
Date
______________________________
Title (Position)
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