REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Ethelbert Nwanegbo, CFE, Charted Accountant
PowerHouse Anchor Management Consulting, Inc.
1225 W. Beaver Street, Suite 125
Jacksonville, FL 32204
(904) 265-0765
ethel@phanchor.com
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Contents
Executive Summary
Administration and Management
Identification of Key Personnel
Identification of Key Personnel, continued
Engagement (Audit) Manager / Consultant / President – Ethelbert Nwanegbo
Audit Director / Senior Consultant – Antonio Chase
5
6
7
8
8
8
Identification of Key Personnel, continued
Engagement Team Member / Junior Consultant – Dr. Augustine Enofe
9
9
Engagement Team Member / Administrative Assistant – David Brewer
9
Project Team
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information
10
11
11
Antonio Chase, CPA .......................................................................................................................................................11
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
1
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
12
12
Ethelbert Nwanegbo, Chartered Accountant, CFE .........................................................................................................12
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
13
13
Dr. Augustine Enofe, CPA, CFE ....................................................................................................................................13
David Brewer ..................................................................................................................................................................13
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
14
14
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
15
15
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
16
16
Strength in Governmental and Non-Profit Services
Strength in Governmental and Non-Profit Services, continued
Extent of Use of EDP Software on Engagements
Quality Review
Scope of Services
17
18
18
19
19
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
2
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Scope of Services, continued
PowerHouse’s Audit Approach
PowerHouse’s Audit Approach, continued
PowerHouse’s Audit Approach, continued
PowerHouse’s Audit Approach, continued
Planning Test Work
20
20
21
22
23
23
PowerHouse’s Audit Approach, continued
Field Work Overview
24
24
PowerHouse’s Audit Approach, continued
Field Work Overview
25
25
Final Test Work
25
Reporting Phase
25
PowerHouse’s Audit Approach, continued
Reporting Phase, continued
26
26
Evidence of Firm License
Disciplinary Action
List All Outstanding Obligation
27
27
27
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
3
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Billing and Payment Terms
Quotation of Rates, Fees, or Charges
Project Area 1: Financial / Operational/ Compliance Audit Resources
28
29
29
Summary
29
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
4
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Executive Summary
PowerHouse Anchor Management Consulting, Inc. (“PowerHouse”), is a minority owned firm located in Jacksonville, Florida and
representing clients throughout the United States. We are a specialty-accounting, auditing, taxation, and management consulting firm
that provides high-class services to all levels of the organization. Our goal is to assist our clients in attaining and retaining growth. Our
core competencies are solving business problems and making organizations more manageable and profitable.
The firm consists of 11 staff, including three (3) Certified Public Accountants, two (2) Forensic Accountants, two (2) Senior
Consultants/Accountants, two (2) Staff Accountants, and two (2) Administrative Assistants. We have over 60 years of combined
experience in compilation, review, auditing, taxation, forensic accounting, risk management, and management consulting services. We
are dedicated to meeting and exceeding your expectations.
The firm’s Audit Director –Mr. Antonio Chase, CPA, will supervise the entire engagement along with the assigned Engagement
Manager, Mr. Ethelbert Nwanegbo, who will be the lead person for the engagement.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
5
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Administration and Management
The team at PowerHouse has over 60-years of combined experience in accounting, auditing and consulting. We have performed several
compilations, reviews and audits services for For-Profit, Non-Profit Organizations, and Governmental entities. We are proud of this
base of experience, but we are more proud of our practical approach to engagements such as yours.
We belong to the American Institute of Certified Public Accountants (AICPA), the Florida Institute of Certified Public Accountants
(FICPA), Association of Government Accountants (AGA), The Florida Government Finance Officer Association (FGFOA), the
National Association of Black Accountant (NABA), Institute of Management Consultants USA, and Association of Certified Fraud
Examiner (ACFE). Ethelbert Nwanegbo, the engagement manager and PowerHouse President, is also the past Training Director of the
ACFE--Jacksonville Chapter.
We provide a comprehensive range of services to our clients, including interim accounting services, advisory services, reviews and
compilations of financial statements; tax services; business valuation services; financial projections; acquisition planning; forensic
accounting evaluation; and business and management consulting services.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
6
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Administration and Management, continued
We are committed to a continuing process of staff training and development; we view our staff as valuable resources. Accordingly, we
devote a significant portion of our firm’s resources to training and continuing professional education. Hence, we are dedicated to the
improvement and enhancement of our staff to ensure high and top notch service to our clients.
Because of our streamlined management structure, we are nimble and able to adapt quickly to a changing environment. We are able to
control costs through sufficient engagement planning coupled with a collaborative review process. As result of this standard operating
procedure, we are able to identify and eliminate steps that don’t add value. Communications between Citizens Property Insurance
Corporation (“Citizens”) and PowerHouse will be handled by the Audit Director and Engagement (Audit) Manager based upon the
modes of communication agreed-upon in the contract.
Identification of Key Personnel
The team members assigned to this engagement are: Ethelbert Nwanegbo MBA, MAcc, CFE, ACA; Antonio Chase, CPA, MAcc; Dr.
Augustine Enofe, DBA, CPA, CFE; and, Gerald Brewer. We are dedicated to developing and maintaining strong working relationships
with all levels of management at Citizens.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
7
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Identification of Key Personnel, continued
Engagement (Audit) Manager / Consultant / President – Ethelbert Nwanegbo
Ethelbert Nwanegbo is a graduate of the University of North Florida, Jacksonville, Florida. He received his Master of Business
Administration (MBA) and Master of Accountancy (MAcc) from the University of North Florida, Jacksonville, Florida. Ethelbert is
a licensed Certified Fraud Examiner (CFE) and Chartered Accountant (ACA). He is also a member of the Florida Institutes of
Certified Public Accountants (FICPA) and the American Institute of Certified Public Accountants (AICPA).
Audit Director / Senior Consultant – Antonio Chase
Antonio Chase is a graduate of the University of South Florida, Tampa, Florida. He received his Master of Accountancy (MAcc)
from the University of South Florida, Tampa, Florida. He is also a member of the American Institute of Certified Public Accountants
(AICPA) and the past President of a local arts and culture Non-Profit Organization in the Tampa Bay area.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
8
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Identification of Key Personnel, continued
Engagement Team Member / Junior Consultant – Dr. Augustine Enofe
Dr. Enofe is a graduate of the University of North Florida, Jacksonville, Florida. He received his Doctorate of Philosophy (Ph.D)
and Master of Arts (MA) from the University of North Florida, Jacksonville, Florida. Dr. Enofe is a licensed Certified Public
Accountant (CPA) and Certified Fraud Examiner (CFE). He is also a member of the Florida Institutes of Certified Public
Accountants (FICPA) and the American Institute of Certified Public Accountants (AICPA).
Engagement Team Member / Administrative Assistant – David Brewer
David Brewer holds multiple certificates of completion. He is also a member of the American Institute of Certified Public
Accountants (AICPA) and the past President of a local arts and culture Non-Profit Organization in the Tampa Bay area.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
9
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team
Each member of the engagement (audit) team listed in our proposal has
strong experience in their assigned areas. They will provide high quality
professional services and business advice and will ensure that anticipated
service needs are met. A brief bio along with other relevant information of
our engagement team for Citizens is presented in the next 4 – 5 pages.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
10
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information
Antonio Chase, CPA
Mr. Chase will be the client service and engagement director (senior consultant) responsible for coordinating all segments of
the engagement. Mr. Chase will serve as the alternate point of contact and be responsible for all audit deliverables. Mr. Chase
can be contacted at 877-281-4044 x101 or via email at cpachase@gmail.com. (need a phanchor.com email address, which I
will tie to a newly created gmail account.) Mr. Chase is an alumnus of PricewaterhouseCoopers.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
11
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
Ethelbert Nwanegbo, Chartered Accountant, CFE
Mr. Nwanegbo will serve as the engagement senior manager (consultant) responsible for developing and coordinating the
overall audit work plans, supervising staff personnel, and performing an in-depth review of all pertinent work papers and
reports. Mr. Nwanegbo will closely monitor the daily progress of the audit engagements to confirm that any matters of concern
are resolved before transitioning into major issues. Additionally, he will coordinate the completion of the audit and the
preparation of the reports, and bring technical or sensitive issues to the attention of the senior consultant and Citizens personnel
and assisting in their resolution. Mr. Nwanegbo will serve as the primary point of contact. Mr. Nwanegbo can be contacted at
904-265-0765 x101 or via email at ethel@phanchor.com. Mr. Nwangebo is a former KPMG auditor who has worked with a
diverse-based client ranging from banking to construction to governmental
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
12
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
Dr. Augustine Enofe, CPA, CFE
Dr. Enofe will serve as the engagement senior (junior consultant). He will assist in the planning of the respective audit areas;
complete tasks of the audit plan under the supervision of the consultant and senior consultant, and report his daily progress to
the consultant. He will identify anytechnical issues requiring discussion or investigation to the consultant and Citizens
designated personnel. Dr. Enofe can be contacted at 904-265-0765 x103 or via email at augustine@phanchor.com. Before
joining PowerHouse Anchor Management Consulting, Inc., Dr. Enofe worked in the halls of academe where he was
instrumental in shaping the mind’s our of youth. Dr. Enofe has a wealth of knowledge and experience performing attestation
and compliance services for several of our bank clients.
David Brewer
Mr. Brewer will serve as administrative assistant responsible for data input, report production, and any other adminstrative
tasks required to deliver the engagement on time by its due date. Mr. Brewer can be contacted at 904-265-0765 x105 or via
email at david@phanchor.com. Prior to joining PowerHouse Anchor Management Consulting, Inc., Mr. Brewer worked as an
associate of the Jackson Hewitt team preparing individual and corporate tax returns.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
13
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
Senior
Consultant
Consultant
Junior
Consultant
Experience in
Government Auditing
Standards
X
X
X
Experience in auditing
Insurance Companies
X
X
X
Experience in risk based
auditing and integrated
audit approach
X
X.
X
Experience
Administrative
Assistant
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
14
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
Senior
Consultant
Consultant
Junior
Consultant
Administrative
Assistant
Experience using
TeamMate or similar
electronic work paper
products
X
X
X
X
Understanding of COSO
control framework
X
X
X
Ability to travel
X
X
X
Experience
X
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
15
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Project Team, continued
Brief Bio of Engagement Team Members and Other Relevant Information, continued
Senior
Consultant
Consultant
Junior
Consultant
Administrative
Assistant
General knowledge of
GAAP and/or Statutory
accounting
X
X
X
X
Experience in auditing
government entities
X
X
X
Experience using
Microsoft Visio
X
X
X
X
Experience in the use of
ACL or other audit
software
X
X
X
X
Experience
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
16
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Strength in Governmental and Non-Profit Services
Governmental and Non-Profit entities are a focus of our business. In our combined 60-years of experience, PowerHouse has conducted many
audits in accordance with OMB (Office of Management and Budget) Circular A-133, the Single Audit Act of 1984, and Government Auditing
Standards. PowerHouse is an emerging firm providing outstanding services to governmental and non-profit entities.
PowerHouse prides itself on its commitment to continuous training to team members with experience in providing audit and value-added
services to our cherished client base.
Industry practice guides, special audit and consulting tools, and training sessions for team members help us maintain the high quality of our
services. As a result, PowerHouse is able to apply its problem-solving abilities to address current and future issues adequately before those
issues become problems that expend unbudgeted and precious resources. This practice results in continued growth in the depth and scope of
the clients we serve.
PowerHouse team members have had the privilege to work with FCCI Group, Inc., an insurance provider that is considered, by many, to be
an established leader in the property and casualty insurance business.
At PowerHouse, we strongly believe that in order to be successful in today’s uncertain, competitive, and highly complex marketplace, we
must endeavor to distinguish ourselves through continuous professionalism and outstanding client service. We are confident of our ability to
provide our clients with an array of expertise and the depth of resources they require.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
17
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Strength in Governmental and Non-Profit Services, continued
As mentioned earlier, PowerHouse has extensive experience in serving many governmental and non-profit entities throughout Florida. We
have supervised or worked as the hands-on auditor for governmental and non-profit organizations such as FCCI Group, Inc., the
Cities of Opa Locka and Lauderdale Lakes, Indian Trail Improvement District, the National Urban League, the Gulf Coast Jewish
Family Center, Beulah Baptist Institutional Church, Heavenly Hearts, Inc., and Lutheran Services of Florida [please add other
suitable clients]. Few (same-size) firms in Florida can extol such a high watermark of providing this level of experience in serving
governmental and non-profit entities.
Extent of Use of EDP Software on Engagements
An important component of our audit is our review of Electronic Data Processing (“EDP”) controls and the use of Computer Assisted Audit
Techniques ("CAAT"). We are aware that the effectiveness of many of the control procedures performed by management and staff are
dependent upon the receipt of reliable computer-generated information for review and investigation. The reliability of this computergenerated information is dependent on EDP general controls. The consultant will review EDP general controls to determine the degree of
reliance that can be placed on computer-generated information. The senior consultant will identify areas of concern and work with
management to implement mitigating controls. If required (and with management’s pre-approval), PowerHouse will deploy its EDP expert to
effectively resolve matters deemed more complex in scope.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
18
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Quality Review
A hallmark of PowerHouse is its commitment to providing a quality end product. As such, all work performed on the engagement is reviewed
to ensure documentation is deemed adequate, conclusions can be supported by sufficient audit evidence, work product is aligned with the
firm’s established quality control. The quality control procedures bywer. We also ensure quality control on all engagements by performing
reviews of all work performed by staff professionals. Our quality control procedures include a review by the concurring engagement
partner and the engagement partner or manager reviewing all workpapers and conclusions reached for propriety. During the planning phase
of an attestation engagement, we review our confidentiality policy with all team members regarding client data--proprietary and nonproprietary. Our confidentiality policy mandates that all client data obtained or used during the audit engagement must be retained in the
strictest of confidence and is either returned to the client intact or disposed of properly if copies of the original source data is provided in lieu
of the originals.
Scope of Services
In performing the audits Citizens Property Insurance Corporation, it is imperative that PowerHouse is prepared to bring outstanding expertise
and know how to the engagement at the onset. This approach is mulifold as it allows for a smoother work flow, provides a "fresh look" at the
entity’s operating systems and documented internal control procedures and processes, and establishes a base for audits in future years.
Employing this standard operating procedure ensures a high quality and efficient audit.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
19
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Scope of Services, continued
At the beginning of an audit, the team members will allocate a portion of the total audit hours to document operating systems and related
internal controls. In addition, we will be obtaining relevant background information and identifying potential issues and opportunities that
may need to be addressed during the audit. We recognize the time commitment necessary to become familiar with Citizens Property
Insurance Corporation’s (“Citizens”) environment as well as develop a meaningful and professional relationship with points of contact. We
are devoted to meeting these objectives through in-house briefings, inquiries of select Citizen personnel, and other means while minimizing
disruptions to operations.
PowerHouse’s Audit Approach
PowerHouse’s main mission is to ensure your success by providing timely feedback on our observations and findings as well as identifying
areas for improvement. Our audit process is designed to provide solutions that are tailored to Citizens specific needs. This process is
structured in several stages, beginning with and focused throughout a top-down, top-level look at key business processes.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
20
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
PowerHouse’s Audit Approach, continued
The stages of our audit process are driven by Citizens’ objectives and strategies.
Top Level Analysis
Risk Assessment
Division/Deparmental Process Overview
Departmental Operational Measurement
Recommended Operations or Performance
Improvement
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
21
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
PowerHouse’s Audit Approach, continued
Top-Level Analysis - We work with you to ensure we
understand the external forces that affect you, the expectations
of North Dade Community Development Federal Credit Union’s
stakeholders/customers, as well as objectives, and key business
issues and risks within each program or department being
audited.
Division / Departmental Process Overview We investigate the key processes for achieving
objectives, including the programs or department's
strategy and policy processes, core operating
processes and resource management processes.
Risk Assessment - We profile key business risks, the
factors most important to your strategic and financial
success. We measure those risks, identify processes to
address and control them, and assess the adequacy of those
processes. Audit strategy is determined in collaboration
with the finance authority.
Department Operational Measurement - We
obtain sufficient audit evidence to form our
conclusion on the audit area or department by
concentrating our efforts on the areas at risk,
performing substantive audit procedures, utilizing
existing management reports and analyzing
performance compared to budget and other entities.
Audit procedures utilize operational efficiency,
financial and non-financial performance measures.
Recommended Operational or Performance
Improvement - We strive to identify
opportunities for improved performance by
comparing operational, financial and non-financial
performance measures to peer entities and
industry trends. In addition, the PowerHouse
team debriefs and assesses its performance with
a view toward continually improving service
delivery.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
22
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
PowerHouse’s Audit Approach, continued
Our ability to deliver financial statement, operational, and compliance audits is tethered directly to the skills of our team members. We have
taken our industry focus one step further by creating the right team structure. PowerHouse’s audit teams are interdisciplinary and go through
formal team training as they prepare for engagements. They work smarter by eliminating low-value work and focusing on areas with
potentially higher risk and greater rewards. Our engagement team will bring capability, knowledge, insight, and technology to the audit.
Planning Test Work




Upon appointment as your financial statement and program auditors, we would immediately begin discussions with management
regarding the timing of our planning and interim audit procedures. At a minimum, we would complete the following activities
Conduct entrance conference with the executive and various team members to discuss issues, planning and audit timetable
Conduct analytical review of operational data, board minutes, and other departmental and statistical data and reports
Develop, in conjunction with management, a cooperative plan and schedule for the audit, including the use of Citizen’s personnel
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
23
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
PowerHouse’s Audit Approach, continued
Field Work Overview









Document the use of internal controls and the accounting system to determine whether the entity is acquiring, safeguarding, and
utilizing its resources economically and efficiently
Develop our overall audit program in accordance with the Government Auditing Standards and Statutory guidance, consisting of
detailed audit program steps tailored for Citizen. We will also consider, in the development of our audit programs, our evaluation
of the strengths and weaknesses of internal controls and the management control system. In addition, we will determine the extent
of audit tests, using statistical sampling techniques where applicable
Review audit approach with the computer audit specialist. We anticipate utilizing PowerHouse’s preferred software for
aggregation of certain operational data and testing
Perform detailed compliance tests to determine whether or not controls and accounting systems are functioning effectively
Determine whether the entity has complied with laws, governmental and state requirements and any other regulations
Perform substantive tests of significant account balances and other activity as determined by management
Perform audits of only significant accounts/projects, if existing internal controls are determined to be adequate in all other
accounts
Discuss with Citizen's personnel known auditing matters requiring resolution
Discuss with the designated Citizen’s personnel the format for year-end financial statements, including footnotes to the financial
statements
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
24
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
PowerHouse’s Audit Approach, continued
Field Work Overview


Develop our audit plan to complement or leverage work performed by Citizen’s Internal Audit team
The planning and fieldwork phase of our test work involves the engagement partners, managers, senior accountants and assigned
team members. We plan to coordinate the audit schedule based on management’s recommendations for audit timing of a particular
department or group. We will deliver our audit reports within 30 days of completing fieldwork or within the timeline as
established by management.
Final Test Work




Complete the examination of account balances
Perform analytical review
Meet with the Citizen's designated personnel to resolve any remaining auditing matters and
Coordinate with our engagement team members the timely completion of and review of report drafts
Reporting Phase

In the final stages of the audit, we will coordinate a review of the audit reports, and other reports (e.g., “Communication…
Charged with Governance) as required by the audit engagement, with Citizen’s designated personnel.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
25
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
PowerHouse’s Audit Approach, continued
Reporting Phase, continued
The basic outputs of our examination are summarized as follows:
o Audit Report (detailing findings and observations, recommendations, and management’s response to
findings and observations)
o Report on Internal Controls, if required
o Communication to Those Charged with Governance
o Any other reports as required by Statutory bodies
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
26
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Evidence of Firm License
PowerHouse Anchor Management Consulting, Inc., is a local business operating in the State of Florida. We are located 1225 W. Beaver
Street, Suite 125, Jacksonville, FL 32204. We are members of the Florida Institute of Certified Public Accountant and American Institute of
Certified Public Accountants. All key personnel of the firm are properly licensed and authorized to practice public accountancy in the State of
Florida.
Disciplinary Action
There are no past, present or pending disciplinary action against the firm.
List All Outstanding Obligation
The firm has no outstanding obligation that will prevent or affect the firm ability to perform on this contract.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
27
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Billing and Payment Terms
We believe that our professional service structure, audit approach, and implementation methodology provides the most cost effective method
for Citizens Property Insurance Corporation.
We will invoice Citizens bi-weekly as work progresses. Invoices are payable net 15 days or 2%, net 5 days from invoice date. Invoices will
include: the Task Order number (if applicable), name of the resource, period covered, hours worked, and the total fee for those hours
including PowerHouse’s administrative costs. Hourly fees will be in agreement with the respective Task Order, unless otherwise approved in
writing by the appropriate Citizens management. Reimbursement of travel related expenses will be listed separately on the invoice, and the
resource incurring those expenses and the time period covering those expenses will be identified. Reimbursement of travel related expenses
will be in accordance with “Standard Document No.: 15, Citizens Travel and Travel Reimbursement Policy for Non Citizens Employees” and
will be pre-approved by Citizens in writing. Invoices will be submitted electronically to the designated OIA or ERM manager for review and
approval.
Further, we will continue our commitment to provide the most cost effective professional services structure each year the contract is enforce.
There will be no surprise billings. If there are any expected overages in work hours, we will notify Citizens management and obtain written
pre-approval before incurring the time. Our billings for overruns will be billed at the negotiated rates outlined in Attachment A.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
28
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
Quotation of Rates, Fees, or Charges
Project Area 1: Financial / Operational/ Compliance Audit Resources
The proposed fees for requested services are as follows:
Senior Consultant
$ 90
/hour
Consultant
75
/hour
Junior Consultant
55
/hour
Summary
We have been privileged to work with a diverse client base and would be truly honored to serve you. We are very adept at providing
assurance, operational, and compliance services to organizations such as Citizens Property Insurance Corporation. We have the
qualifications…but more importantly we have a sincere interest in working with Citizens Property Insurance Corporation to meet this
engagement’s objectives and goals.
We would love to discuss our planned scope of services with Citizens management in person so that we may demonstrate how we believe our
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
29
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AND ENTERPRISE RISK
MANAGEMENT SERVICES
firm can assist you in the near future. We look forward to hearing from you and earning your trust and confidence.
Thank you for giving us the opportunity to submit our professional qualifications and competence for your consideration.
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit Resources
30
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AUDIT AND ENTERPRISE RISK
MANAGEMENT SERVICES
Appendix A, Resumes of Project Team
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit
Resources
i
REQUEST FOR PROPOSAL
(RFP) NO.: 11-0011
CO-SOURCING INTERNAL AUDIT
AUDIT AND ENTERPRISE RISK
MANAGEMENT SERVICES
PowerHouse Anchor Management Consulting, Inc. | Project Area 1: Financial / Operational/ Compliance Audit
Resources
i