Indiana Legal Services, Inc.
RFP for Auditors
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Due by August 7, 2015
INDIANA LEGAL SERVICES INC.LEGAL TOPICS FAQS
INDIANA LEGAL SERVICES, INC.
REQUEST FOR PROPOSALS FOR AUDITORS
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INDEX
ORGANIZATION
ADMINISTRATIVE INFORMATION
AUDIT SPECIFICATIONS
ITEMS TO BE INCLUDED IN YOUR PROPOSAL
POTENTIAL PROVIDERS
SUBCONTRACT
WORK PAPERS
PUBLICATIONS
PARTIAL PERFORMANCE
CANCELLATION
PROVIDER’S RESPONSIBILITIES
AUDITEE’S RESPONSIBILITIES
OTHER REQUIREMENTS
RFP TIMETABLE
EVALUATION CRITERIA
INSTRUCTIONS
ORGANIZATION
Indiana Legal Services Inc. is a non-profit 501(c)(3) organization which ensures the delivery of civil legal assistance to low-income
individuals and families across the state. In 2015, Indiana Legal Services, Inc. has $8.6 million in annual funding, $6.5 million of
which is funded by the Legal Services Corporation in Washington, DC.
Indiana Legal Services, Inc. was established in 1966 and is federally funded by the Legal Services Corporation, the Department of
Health and Human Services passed through local agencies on aging, HUD through a community development block grant, and
the U.S. Department of the Treasury through a Low Income Taxpayer Clinic grant. Additionally, Indiana Legal Services, Inc.
receives state funding from the Civil Legal Aid Fund. Locally, Indiana Legal Services, Inc. receives funding from various United Way
agencies as well as private foundations and corporations. Indiana Legal Services receives additional funding generated on a
donation basis.
Indiana Legal Services, Inc.
RFP for Auditors
Due by August 7, 2015
Indiana Legal Services, Inc. currently employs 133 staff and has offices in Bloomington, Evansville, Fort Wayne, Indianapolis,
Lafayette, Merrillville, New Albany and South Bend, as well as satellite locations in Columbus and Yorktown. All accounting and
management functions are performed at the administration office in Indianapolis.
ADMINISTRATIVE INFORMATION
The ILS Fiscal year is January 1 through December 31. All accounting records are computerized. Microsoft Great Plains Solomon
is the software utilized for accounts payable, budget and general ledger. Payroll is processed by ADP. Fixed assets are tracked
with Fixed Assets Manager software. Indiana Legal Services, Inc. is open to a multi-year contract, but services will be re-evaluated
on an annual basis and subject to an annual engagement letter. Please bid on a three-year period. Prior year audit working
papers will be available to the firm selected to succeed the predecessor auditor. It is anticipated the records would be ready for
audit by the third week in March.
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The final audited financials must be completed and submitted to LSC by April 30.
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The audit and finance committee must approve the audit prior to finalizing.
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The final reports are approved by the Indiana Legal Services, Inc. board of directors at the annual meeting in late
May or early June.
AUDIT SPECIFICATIONS
The provider selected for the audit of Indiana Legal Services, Inc. must complete the following
specifications:
1. The audit will encompass a financial and compliance examination of the basic financial statements, supplementary information
and compliance reports in accordance with the laws and/or regulations of the State of Indiana, which include requirements for
the minimum scope of the audit. The financial and compliance audit will cover federal, state and local funding sources in
accordance with Generally Accepted Accounting Principles and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General in the United States, the Audit Guide of Recipients and
Auditors (the Audit Guide), and the, Compliance Supplement for Audits of LSC Recipients (the Compliance Supplement), both
issued by Legal Services Corporation Office of Inspector General. The audit will also be required to be performed in accordance
with the Single Audit Act of 1984, the Single Audit Act Amendments of 1996, the provisions of OMB Circular A-133, Audits of
State, Local Governments and Non-Profit Organizations, including revisions published in the Federal Register; the State Single
Audit Implementation Act and all other applicable laws and regulations.
2. The audit report shall contain the following provisions:
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Independent Auditor’s Report
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Financial Statements:
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Statement of Financial Position
Indiana Legal Services, Inc.
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Statement of Activities
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Statement of Functional Expenses
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Statement of Cash Flows
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
RFP for Auditors
Due by August 7, 2015
Notes to Financial Statements
Additional Reports and Information Required Under Single Audit Act
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Report of Independent Auditors on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit Of Financial Statements Performed In Accordance With Government Auditing
Standards
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Report of Independent Auditors on Compliance For Each Major Federal Program and on Internal Control
Over Compliance Required by OMB Circular A-133
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Schedule of Findings and Questioned Costs
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Summary Schedule of Prior Audit Findings
Supplementary Information
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Schedule of Expenditures of Federal Awards
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Schedule of Activities – Legal Services Corporation Grants
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Schedule of Activities – Aging Grants
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Schedule of Activities – United Way Grants
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Schedule of Activities – Other Grants
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Schedule of PAI Expenses
3. The provider shall prepare a comprehensive management letter for the audit period.
4. The provider will complete and submit the 990 and 5500 tax forms to the IRS.
5. The audit transmittal form is to be completed and sent with reports to the Single Audit Clearinghouse.
6. The provider shall provide copies of the draft audited financial statements to the staff prior to presentation to the Audit and
Finance Committee of the Indiana Legal Services, Inc. board of directors, which will happen in time for submission of the final
report to the Legal Services Corporation on April 30.
7. The provider selected shall make a presentation to the Indiana Legal Services, Inc. board of directors at its annual meeting.
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The final audited financials must be completed and submitted to LSC by April 30.
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The audit and finance committee must approve the audit prior to finalizing.
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The final reports are approved by the Indiana Legal Services, Inc. board of directors at the annual meeting in late
May or early June.
ITEMS TO BE INCLUDED IN YOUR PROPOSAL
Indiana Legal Services, Inc.
RFP for Auditors
Due by August 7, 2015
GENERAL INFORMATION
1. Provide a brief description of your firm including an organizational chart, which indicates how many partners and professionals
work in your accounting and tax departments.
2. Outline your audit approach to our engagement, including your approach to staffing our engagement.
3. Submit the qualifications of those partners and professionals who will be working on the Indiana Legal Services, Inc.
engagement. Include specifically non-profit expertise, A-133 and grant compliance experience, any LSC-funded program
experience, and your firm’s dedication to serving not-for-profits. Indiana Legal Services, Inc. requests disclosure of any
Administrative proceedings that have been levied against the partner or employee including any corrective actions.
Additionally, please describe the firm’s tax expertise, especially regarding IRS 990 and 5500 preparation.
4. Submit the names of three companies or corporations for which these individuals have provided similar services on your behalf.
Please provide the name and telephone numbers of the appropriate person with whom your staff has worked on these
engagements. Please advise if Indiana Legal Services, Inc. Inc. may contact these individuals for the purpose of a reference.
5. Submit a copy of your last annual external quality control review report, or peer review.
6. Describe any resources provided by your firm such as continuing education or not-for-profit newsletters.
WORK PLAN AND TIMETABLE
1. Specifically identify the significant steps in your audit plan and your specific time schedule to complete the fiscal year audits.
2. Identify the amount of start-up time that you will need in order to have a full understanding of Indiana Legal Services, Inc.
Start-up time will be considered your investment in this relationship. Indicate when your firm would be incurring the start-up
time.
INSURANCE AND SPECIAL PROVISIONS
1. The provider shall indemnify and hold harmless, Indiana Legal Services, Inc., its officers and employees from all suits, actions,
or claims of any kind brought because of injuries or damage received or sustained by any person, persons, or property; on account
of the operations of Indiana Legal Services, Inc.; or on account of or in consequence of any neglect in safeguarding the work; or
because of any act or omission, neglect, or misconduct of said provider or from any claims or amounts arising or recovered under
the Worker’s Compensation Act or any other law, ordinance or decree.
2. The provider shall submit evidence of coverage by general professional liability insurance for this engagement in an amount
equal to the contract price. Proof of insurance shall be submitted to Indiana Legal Services, Inc. upon receipt of official Notice of
Award.
COST
Indiana Legal Services, Inc.
RFP for Auditors
Due by August 7, 2015
Provide a separate, detailed cost breakdown for each of the next three fiscal years of required services requested in the RFP. In
a chart, describe the fee basis and number of hours required for the partner, the in-charge manager, and other staff. Also please
describe the fees and hours required by position for the preparation of the tax forms 990 and 5500. Please indicate whether fees
are fixed, or a guaranteed maximum.
POTENTIAL PROVIDERS
The universe of potential providers to perform the audit will be defined to be those CPAs/firms licensed to practice in the State
of Indiana and qualified to perform A-133 audits.
SUBCONTRACT
The provider is prohibited from subcontracting, assigning, transferring, conveying, subletting or otherwise disposing of this
agreement or its rights, title, or interest therein or its power to execute such agreement to any other person, company, or
corporation without the prior written consent of Indiana Legal Services, Inc. All approved assignments, subletting or other
transfers referred to herein must abide by the provision of the agreement.
WORK PAPERS
The provider shall maintain all required work papers and records in accordance with law or any regulatory requirements. After
the approved retention period, Indiana Legal Services shall have the option to take possession of the work papers whenever the
provider decides to dispose of them. Indiana Legal services shall have access to any materials provided to auditor in connection
with the A-133 audit.
PUBLICATIONS
Any reports, information, data, etc., furnished by Indiana Legal Services, Inc. to the provider which the provider is requested to
keep confidential shall not be made available by the provider to any individual or organization without the prior written approval
of Indiana Legal Services.
No reports or other documents produced in whole or in part under this contract shall be the subject of an application for copyright
by or on behalf of the provider.
Content of the audit may not be released without the written consent of the Indiana Legal Services, Inc.
Indiana Legal Services, Inc.
RFP for Auditors
Due by August 7, 2015
PARTIAL PERFORMANCE
Should the provider fail to comply with the provisions of this agreement, payment for portions of the agreement will be withheld
until such time as the contract terms have been implemented. Administrative, contractual, or legal remedies as determined by
Indiana Legal Services, Inc.’s counsel will be implemented if it appears the provider has breached or defaulted on the contract.
CANCELLATION
Indiana Legal Services, Inc. may, upon ten days written notice to the provider, terminate this agreement, in whole or in part, for
just cause, which shall include failure of the provider to fulfill in a timely and proper manner the obligations under the contract.
In such event, all finished documents, data, reports, etc. prepared under the contract shall, at the option of Indiana Legal Services,
Inc., become its property upon payment for services rendered through the termination of this contract.
As stated in Administrative Information above, services will be re-evaluated on an annual basis and subject to an annual
engagement letter.
PROVIDER’S RESPONSIBILITIES
The provider shall be responsible for personnel, supplies and equipment.
The provider shall allow for necessary planning and budgeting of future audit work. The provider shall provide the approximate
number of professional staff hours spent in conducting the audit work.
The provider shall be responsible for correcting all material errors and omissions in the performance of the contract found by ILS
or any third party receiving the auditor’s product..
The provider shall provide, at least two weeks prior to submission of the final report, a draft copy of the audit report to the
auditee and discuss its contents with representatives of Indiana Legal Services, Inc. The auditee will provide responses in writing
to the provider. These agency responses and any comments by the provider relating to them shall be included in the final audit
report. The audit report is to be issued no later than April 15th for each audit year.
AUDITEE’S RESPONSIBILITIES
Office space will be provided to accomplish the audit.
Auditee will make all files and records available to the provider.
Indiana Legal Services, Inc.
RFP for Auditors
Due by August 7, 2015
Auditee shall timely comply with all requests of the provider.
The auditee shall provide assistance to the provider, such as gathering supporting documents.
The accounting staff of Indiana Legal Services, Inc. will provide:
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The year-end trial balance and general ledger detail
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All subsidiary ledgers
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Interim financial statements
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All supporting schedules
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Draft Year-end Statements of Activities in detail by funder
OTHER REQUIREMENTS
Describe any topics not covered in the Request for Proposals which you would like to bring to the attention of Indiana Legal
Services, Inc..
RFP TIMETABLE
Notice of RFP to candidate firms
July 13, 2015
Submission to ILS by
August 7, 2015
Interviews of 2 best candidates
August 20, 21 or 24, 2015
F & A Committee meeting to approve award
August 31 – September 4, 2015
ILS board meeting to consider committee recommendation
September 11, 2015
Notice of award
September 14, 2015
EVALUATION CRITERIA
The audit will be awarded based on a weighted scale. Proposals will be evaluated and subsequent judgments made on criteria as
follows:
Indiana Legal Services, Inc.
RFP for Auditors
Due by August 7, 2015
FACTOR
1. Qualifications
a. Organizational structure and size of the firm.
b. Organizational structure and size of the office performing the work.
c. Recent experience in similar audits.
d. Qualifications of the audit team and number of individuals experienced in nonprofit
auditing, federal funding and compliance.
e. Individuals with whom the audit team may consult.
f. Understanding of the work and timetable to complete the engagement.
2. Cost
Overall cost is evaluated, including out-of-pocket expenses for performance of the audit.
3. Submission of Proposals
All submissions shall include the requested pricing information. These documents will become
part of the agreement between the firm and Indiana Legal Services, Inc.
4. Evaluation
Evaluation of each proposal will be based on a point system for each section of the proposal.
Price will be limited to 20% of total available points.
5. Review Process
Indiana Legal Services, Inc. may, at its discretion, request presentations by or a meeting with
any or all firms, to clarify or negotiate modifications to the firm’s proposal.
However, Indiana Legal Services, Inc. reserves the right to make an award without further
discussion of the proposals submitted. Therefore, proposals should be submitted initially on the
most favorable terms, from both technical and price standpoints, that the firm can propose.
Indiana Legal Services, Inc. is not obligated to select the audit firm with the lowest cost.
INSTRUCTIONS
1. Keep your proposal, excluding exhibits, with a limit of ten (10) pages. A brief executive letter should accompany the proposal.
2. No proposal will be considered unless it is signed by an officer or authorized representative. Electronically submitted proposals
will be accepted c/o joe.simpson@ilsi.net .
Indiana Legal Services, Inc.
RFP for Auditors
Due by August 7, 2015
3. A proposal that is in the possession of Indiana Legal Services, Inc. may be altered in writing bearing the signature or name of
the authorized person, provided it is received PRIOR to the date and time of the submission deadline.
4. A proposal that is in the possession of Indiana Legal Services, Inc. may be withdrawn by the authorized company representative
up to the award of the contract. Failure of the successful provider to furnish the services awarded as a result of this RFP shall
eliminate the proposer from consideration of any future RFP.
5. Indiana Legal Services, Inc. hereby notifies all proposers that it will affirmatively insure that minority business enterprises will
be afforded full opportunity to submit proposals in response to this invitation and will not be discriminated against based on race,
color, gender, sexual orientation, age, creed, national origin, or disabling condition.
6. The successful provider will be required to enter into and sign a formal agreement with Indiana Legal Services, Inc. The
agreement will be in effect for the duration of the auditing period.
7. The provider shall specify what audit work papers the staff of Indiana Legal Services, Inc. shall be responsible to prepare.
8. Submit the proposal to electronically to joe.simpson@ilsi.net by close of business Friday, August 7, 2015.
9. Notice of award: Monday, September 14, 2015.