Dear Sir or Madam:
Tri-County Community Action Agency is accepting proposals from qualified CPA firms to provide audit
(and tax) services for our organization starting with this Fiscal year ending June 30, 2013 and for an
additional three period with satisfactory performance. A description of our agency, the services needed,
and other pertinent information is included in the accompanying Request for Proposal for Audit Services
packet.
In summary, your proposal is expected to cover the following services:
1. Annual audit to be completed in compliance with the stated filing requirements and
presentations to the agency’s board of directors as necessary
2. Tax filing of IRS Form 990
3. Exit interview addressing any internal issues identified through the audit process
Key contact personnel for information you may seek in preparing your proposal are:
Brenda Fox
Theresa Rowe
Executive Director
Finance Manager
(502)222-1349 ext. 200
(502)222-1349 ext. 130
Requests for additional information, visits to our site, review of prior financial statements and tax
returns, and appointments with personnel should be coordinated through the executive director at the
number given. Requests must be made prior to 4:00 p.m. December 12, 2012.
These services have been provided by Richardson Pennington & Skinner, P.S.C. for the past several
years. It is generally accepted good governance for non-profits to periodically review the auditor
relationship in order to ensure a fresh look at financial statements and agency performance. It is
anticipated that the current auditing firm will submit a proposal and it will be equally considered along
with all other submissions.
Sincerely,
Brenda Fox
Executive Director
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 1)
1.
GENERAL INFORMATION
A. Purpose
This Request For Proposal (RFP) is to contract for a financial and compliance audit for the
year ending June 30, 2013. The proposal includes options for three additional years.
B. Who May Respond
Only Licensed Certified Public Accountants may respond to this RFP.
C. Instructions on Proposal Submission
1. Closing Submission Date
Proposals must be submitted no later than 4:00 p. m. on December 21, 2012.
2. Inquiries
Initial inquiries concerning this RFP should be directed via E-mail at
auditor@tricountycaaky.org.
3. Conditions on Proposal
All costs incurred in the preparation of a proposal responding to this RFP will be
the responsibility of the Offeror and will not be reimbursed by Tri-County
Community Action Agency, Inc. Tri-County Community Action Agency, Inc.
will be referred to as TCCAA for the remainder of the RFP.
4. Instructions to Prospective Contractors
Name:
Your proposal should be addressed as follows:
Brenda Fox
Title:
Entity:
Executive Director
Tri-County Community Action Agency, Inc.
Address:
1015 Dispatchers Way, LaGrange, KY 40031
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 2)
Proposals may be hand delivered to: TCCAA, 1015 Dispatchers Way,
LaGrange, KY 40031.
It is important that the Offeror’s proposal be submitted in a sealed envelope clearly marked
in the lower left-hand corner with the following information:
Request for Proposal
SEALED PROPOSAL
For Audit Services
Failure to do so may result in premature disclosure of your proposal and be grounds for
disqualification.
It is the responsibility of the Offeror to insure that the proposal is received by
TCCAA by the date and time specified above.
Late Proposals will not be considered.
5. Right to Reject
TCCAA reserves the right to reject any and all proposals received in response to this
RFP. A contract for the accepted proposal will be based upon the factors described in
this RFP.
6. Small and/or Minority-Owned Businesses
Efforts will be made by TCCAA to utilize small businesses and minority-owned
businesses.
An Offeror qualifies as a small business firm, if it meets the definition of “small
business” as established by the Small Business Administration (13 CFR 121.201),
by having average annual receipts for the last three years of less that 8.5 million
dollars.
7. Notification of Award
It is expected that a decision selecting the successful audit firm will be made at
TCCAA’s Board of Directors Meeting in February, 2013. Upon conclusion
final negotiations with the successful audit firm, all Offerors submitting
proposals in response to this Request for Proposal will be informed, in writing, of
the name of the successful audit firm.
of
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 3)
It is expected that the contract shall be a one-year fixed price contract with options for three additional
one-year periods.
D. Description of Entity and Records to be Audited
TCCAA is a nonprofit community action agency which serves 3 counties in Kentucky. As a
private nonprofit corporation, TCCAA has been determined to be exempt from Federal
income tax under 501 (c) (3) of the Internal Revenue Code. An eighteen (18) member
volunteer Board of Directors governs it. Administrative offices and all records are located at
1015 Dispatchers Way, LaGrange, KY 40031.
TCCAA has an automated set of books. TCCAA utilizes Sage Fund Accounting software.
TCCAA has a general fund that accounts for all grant, contract, and functional activities.
However each grant, contract, and function have individual income statements. The agency
has a consolidated Statement of Financial Position. TCCAA has four (4) bank accounts.
However, TCCAA’s main checking account represents approximately 98% of all agency
activity. Payroll is done in-house using Sage Fund Accounting software. The maximum
number of employees working for TCCAA the past fiscal year was forty-two. Approximately
1,300 checks have been written and 220 deposits have been made for all the bank accounts.
If requested TCCAA will make available for review last fiscal year’s financial records prior to
the Offeror’s proposal submission. If requested, TCCAA will make available for review a
copy of the previous audit for year ending June 30, 2012.
E. Options
At the discretion of TCCAA this audit contract can be extended for three additional
one-year periods. TCCAA and the Offeror will agree upon the cost of the option
periods. At any time during the business relationship after the first year, either party can
opt to terminate said relationship with a ninety (90) day written notice prior to March 31 of
the current fiscal year.
II.
Specification Schedule
A. Scope of a Financial and Compliance Audit
The purpose of this RFP is to obtain the services of a public accounting firm, whose
principal officers are independent certified public accountants, certified or licensed by a
regulatory authority of a state or other political subdivision of the United States,
hereinafter referred to as the “Offeror” to perform a financial and compliance audit of
TCCAA.
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 4)
B. Description of Programs/Contracts/Grants
Funding/Contract Source
Program
Amount **
KY Cabinet for Health and
Family Services
Community Services Block
Grant
$174,212
Kentucky Housing Corporation
Weatherization
$108,088
Community Action Kentucky
LIHEAP
Kentuckiana Regional Planning &
Development
Adult Day Care
$ contract amount hasn’t been
approved at this time
$ 55,000 approximate *
HomeCare
$ 92,000 approximate *
Title III-B Social Services
$120,000
Title III-B Transportation
$107,744
Title III-C Nutrition
$ 92,257
Title III-D Health Promotion
$ 5,564
Various Activities
Aging Programs
$ 39,263
$ 20,200
Metro United Way
Fiscal Courts
* Contract is open ended with services being provided on a per-requested, unit cost reimbursement
basis
** Level of funding for any contract is subject to change through contract amendments
C. Performance
TCCAA’s records should be audited through June 30, 2013.
The Offeror is required to prepare audit reports in accordance with the current Government
Audit Standards, and Offeror is responsible for preparing IRS form 990 Return of
Organization Exempt From Income Tax.
D. Delivery Schedule
Offeror is to transmit one copy of the draft audit report to TCCAA’s executive director and
fiscal person. The draft audit report is due by September 15, 2013.
The final audit should be completed and IRS Form 990 filed by October 15, 2013. The
Offeror shall deliver 25 final audit reports and report on the content of the audit to TCCAA’s
Board of Directors at the scheduled board meeting in October 2013.
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 5)
Reports may be submitted earlier than the above schedule. However, if the Offeror
fails to make delivery of the audit reports within the time schedule specified herein, or
if the Offeror delivers audit reports which do not conform to all of the provisions of the
agreed upon contract, TCCAA may, by written notice, request an adjustment in the agreed
upon invoice amount of the contract. Under certain circumstances the contracting agent
may extend this schedule upon written request of the Offeror with sufficient justification
E. Payment
Payment will be made when TCCAA has determined that the total work effort has
been satisfactorily completed. Should TCCAA reject a report, TCCAA’s authorized
representative will notify the Offeror in writing of such rejection giving the reason(s).
The right to reject a report shall extend throughout the term of this contract and for
ninety (90) days after the Offeror submits the final invoice for payment.
A progress payment of ½ will made upon the receipt of the draft copy.
Upon delivery of the 25 copies of the final audit reports, and the board’s acceptance and
approval, the Offeror may submit a bill for the balance due on the contract for the audit.
F. Audit Review.
All audit reports prepared under this contract will be reviewed by TCCAA and its
funding sources to ensure compliance with General Accounting Office’s (GAO)
Government Audit Standards, contractual requirements, and other appropriate audit guides.
The review period will be the three weeks following receipt of the draft copy.
G. Exit Conference
An exit conference with TCCAA’s representatives and the Offeror’s representatives
will be held at the conclusion of the fieldwork. Observations and recommendations must be
summarized in writing and discussed with TCCAA. It should include internal
control and program compliance observations and recommendations.
H. Workpapers
1. Upon request, the Offeror will provide a copy of the workpapers pertaining to
any questioned costs determined in the audit. The workpapers must be concise
and provide the basis for the questioned costs as well as an analysis of the
problem.
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 6)
2. The workpapers will be retained for at least three years from the end of the audit
period.
3. The workpapers will be available for examination by authorized representatives of
the cognizant federal or state audit agency, the General Accounting Office, and
TCCAA.
I. Confidentiality
The Offeror agrees to keep the information related to all contracts in strict confidence.
Other than the reports submitted to TCCAA, the Offeror agrees not to publish,
reproduce or otherwise divulge such information in whole or in part, in any manner or
form or authorize or permit others to do so, taking such reasonable measures as are
necessary to restrict access to the information, while in the Offeror’s possession, to the
employees on the Offeror’s staff who must have the information on a need to know
basis. The Offeror agrees to immediately notify, in writing, TCCAA’s authorized
representative in the event the Offeror determines or has reason to suspect a breach of
his requirement.
J. AICPA Professional Standards
The AICPA Professional Standards state:
Ethics Interpretation 501-3 Failure to follow standards and/or procedures or
other requirements in governmental audits. Engagements for audits of
government monies typically require that such audits be in compliance with
government audit standards, guides, procedures, statutes, rules and regulations, in
addition to generally accepted auditing standards. If a member has accepted such an
engagement, and undertakes an obligation to follow specified government audit
standards, guides, procedures, statutes, rules and regulations, in addition to
generally accepted auditing standards, he or she is obligated to follow such
requirements. Failure to do so is an act discreditable to the profession in
violation of Rule 501, unless the member discloses in his/her report the fact that
such requirements were not followed and the reasons therefore.
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 7)
III. OFFEROR’S PROPOSAL OUTLINE
The Offeror, in its proposal, shall, as a minimum include the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Detail your firm’s experience in providing auditing and tax services to organizations in
the not-for-profit industry of a comparable size to TCCAA.
Discuss the firm’s independence with respect to TCCAA.
Discuss commitments you will make to staff continuity, including your staff turnover
experience in the last three years.
Identify any not-for-profit clients your firm (or office) has lost in the past three years and
the reasons. Also discuss, in instances when loss of the client was due to an unresolved
auditing or accounting matter, the process of attempting to resolve the issue(s).
Identify the partner, manager, and/or in-charge accountant who will be assigned to our
job if you are successful in your bid. Indicate any complaints against them that have
been leveled by the state board of accountancy or other regulatory authority, if any.
Indicate any corrective actions that have been taken by the firm with respect to these
people.
Describe how your firm will approach the audit of the organization, including the use of
any association or affiliate member firm personnel and the areas that will receive
primary emphasis. Also discuss the firm’s use of technology in the audit. And finally,
discuss the communication process used by the firm to discuss issues with the
management and members of the board.
Set forth your fee proposal for the 2013 audit and for tax preparation, with whatever
guarantees can be given regarding increases in future years.
Describe how you will bill for questions on technical matters that may arise throughout
the year.
Provide the names and contact information for other similarly sized clients of the
partner and manager that will be assigned to our organization for reference purposes.
Describe how and why your firm is different from other firms being considered, and why
our selection of your firm as our external accountants is the best decision we could
make.
Include a copy of your firm’s most recent peer review report, the related letter of
comments, and the firm’s response to the letter of comments.
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
(PAGE 8)
Certifications:
The Offeror must sign and include, as an attachment to its proposal, the Certifications enclosed
with this RFP. The publications listed in the Certifications will not be provided to potential
Offeror by TCCAA, because TCCAA would like to contract only with the Offeror who is already
familiar with these publications.
IV. Proposal Reviews
TCCAA will evaluate proposals on a qualitative basis. This includes our review of the firm’s peer
review report and related materials, interviews with senior engagement
personnel to be assigned to our organization, results of discussions with other clients, and
the firm’s completeness and timeliness in its response to us.
A. Submission of Proposals
All proposals shall include one original and one copy.
B. Nonresponsive Proposals
Proposals may be judged non-responsive and removed from further consideration
if any of the following occur:
1. The proposal is not received timely in accordance with the terms of this RFP.
2. The proposal does not follow the specified format.
3. The proposal does not include Certifications.
4. The proposal is not adequate to form a judgment by the reviewers that the
proposed undertaking would comply with the Government Audit Standards
of the U. S. Comptroller General.
C. Review Process
TCCAA may, at its discretion, request presentations by or meetings with any or all
Offerors, to clarify or negotiate modifications to the Offeror’s proposals.
However, TCCAA 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, which the Offeror
can propose.
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
CERTIFICATIONS
(Page 1)
On behalf of the Offeror:
A. The individual signing certifies that he/she is authorized to contract on behalf of the Offeror.
B. The individual signing certifies that the Offeror is not involved in any agreement to pay
money or other consideration for the execution of this agreement, other than to an employee
of the Offeror.
C. The individual signing certifies that the prices quoted in this proposal have been arrived at
independently, without consultation, communication, or agreement, for the purpose of
restricting competition.
D. The individual signing certifies that the prices quoted in this proposal have not been knowingly
disclosed by the Offeror prior to an award to any other Offeror or potential Offeror.
E. The individual signing certifies that there has been no attempt by the Offeror to discourage
any potential Offeror from submitting a proposal.
F. The individual signing certifies that the Offeror is a properly licensed certified public accountant on or
before December 31, 2012.
G. The individual signing certifies that the Offeror meets the independence standards of the current
Government Auditing Standards.
H. The individual signing certifies that he/she is aware of and will comply with the GAO requirement of
an external quality control (peer) review at least once every three years.
I. The individual signing certifies that he/she has read and understands the following publications
relative to the proposed audits:
1. Current Government Auditing Standards
2. OMB Circular A-133, Audits of States, Local Governments and Nonprofit Organizations
TRI-COUNTY COMMUNITY ACTION AGENCY, INC.
REQUEST FOR PROPOSAL
FOR AUDIT SERVICES
CERTIFICATIONS
(Page 2)
3. OMB Circular A-133 - Compliance Supplement(s)
4. OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements
Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations
with
5. OMB Circular A-122, Cost Principles for Nonprofit Organizations
J. The individual signing certifies that he/she has read and understands all of the information in
Request for Proposal, including the information on the programs/grants/contracts to be
audited.
this
K. The individual signing certifies that the Offeror, and any individuals to be assigned to the audits, does
not have a record of substandard audit work with any federal, state or local government. (If the
Offeror or any individual to be assigned to the audits has been found in violation of any state or
AICPA professional standards, this information must be disclosed.)
Dated this___________day of__________________,20____
____________________________________
(Offeror’s Firm Name)
____________________________________
(Signature of Offeror’s Representative)
____________________________________
(Printed Name and Title of Individual Signing)