REQUEST FOR PROPOSAL
TO PROVIDE AUDIT SERVICES FOR:
PLEASANT VIEW CITY
520 W Elberta Dr., Pleasant View, UT
- I. BACKGROUND INFORMATION
Pleasant View City was incorporated in 1945 and currently has the following funds: General Fund, Capital Project Funds, Proprietary Funds, and a Special Improvement Fund. There is a Fixed Asset and Long-term Debt account groups. Total revenue for all funds is estimated at $8,000,000 for the fiscal year ending June 30, 2014.
Pleasant View City uses Caselle software for its accounting applications.
Pleasant View City is required by State law to provide an annual audit of its financial statements by a Certified Public Accountant in accordance with generally accepted auditing standards. This audit must be submitted to the Office of the Utah State Auditor within 180 days after the end of the fiscal year.
- II. OBJECTIVE AND SCOPE
A financial audit is requested for the fiscal year ended June 30, 2014. The audit shall be performed in accordance with generally accepted auditing standards, as promulgated by the American Institute of Certified Public Accountants (AICPA); the AICPA Audits of State and Local Governmental Units audit and accounting guide; and the Government Auditing Standards, published by the U.S. General Accounting Office.
The audit must be completed, and the report issued prior to December 27, 2014. The auditor must deliver an electronic copy of the report to the Office of the Utah State Auditor and to Pleasant View City. Additionally, 12 hard copies of the audit should be delivered to Pleasant View City.
The auditor will be involved in drafting, typing, and printing financial statements, and will assist management’s efforts to obtain the Government Finance Officers Association’s Certificate of Achievement of Excellence in Financial Reporting.
- III. REPORT REQUIREMENTS
For financial audits, the auditor shall examine the financial statements and records of the entity and shall issue an auditor’s opinion on the entity’s financial statements with an in-relation-to opinion on combining and supplementary information, if any. Such financial statements shall be prepared in conformity with generally accepted accounting principles.
The auditor shall issue a compliance report based on an audit of general purpose or basic financial statements and a report on the internal control structure; both in accordance with Government Auditing Standards.
The auditor shall prepare and include a statement expressing positive assurance of compliance with State fiscal laws identified by the state auditor and other financial issues related to the expenditure of funds received from Federal, State, or local governments.
The auditor shall prepare a comprehensive management letter including the auditor’s findings and recommendations relative to the internal accounting and administrative controls, compliance with laws and regulations as applicable and adherence to generally accepted accounting principles.
The auditor shall include the written responses from Pleasant View City for each recommendation included in the state compliance letter and the management letter required by the State of Utah Legal Compliance Audit Guide. The auditor shall supply the needed information to complete the management letter.
- IV. AUDIT TERM
If the selected certified public accounting firm performs satisfactorily for the June 30, 2014 audit, it is anticipated that the same firm will be contracted to perform the audit for up to 4 succeeding years, subject to an annual evaluation and Pleasant View City Council appropriation. In any event, the contract terms will not exceed a total of five years.
- V. PROPOSAL QUALIFICATION REQUIREMENTS
Interested certified public accounting firms should include the following information in their proposal to perform the audit of the fiscal year ending June 30, 2014:
A. Profile of the Independent Auditor
The profile of the proposers should provide general background information. This should include:
- 1. The organization and size of the proposer, whether it is local, regional, national or international in operations.
- 2. The locations of the office from which the work is to be done and the number of professional staff, by staff level, employed at the office.
- 3. A statement on the proposer’s staff capability to audit computerized systems.
- 4. A positive statement that the following mandatory criteria are satisfied:
- a. An affirmation that the proposer is properly licensed for practice as a certified public accountant in the State of Utah.
- b. An affirmation that the proposer meets the independence requirements of the American Institute of Certified Public Accountants and the Government Auditing Standards, 2003 revision, published by the U.S. General Accounting Office.
- c. An affirmation that the firm meets the continuing education and external quality control review requirements contained in the Government Auditing Standards, 2003 revision, published by the U.S. General Accounting Office.
B. Proposer’s Qualifications
- 1. Identify the audit partners, audit managers, field supervisors and other staff who will work on the audit, including staff from other than the local office. Résumés including relevant experience and continuing education for the staff auditors up to the individual with final responsibility for the engagement should be included.
- 2. Describe the recent local office auditing experience similar to the type of audit requested.
- 3. If other auditors are to participate in the audit, those auditors should be required to provide similar information.
C. Proposer’s Approach to the Examination
Submit a general audit work plan to accomplish the scope defined in these guidelines. The audit work plan should demonstrate that the proposer understands the audit requirements and the audit tests and procedures to be applied in completing the audit plan. The plan should detail the expected number of audit hours by staff level. The planned use of specialists should also be specified.
D. Time Requirements
Detail how the reporting deadline requirements of the audit will be met.
Supply the billing rates, estimated number of billable hours, other billable expenses and a “not-to-exceed” fee for the audit, inclusive of travel, per diem and all other out-of-pocket expenses. As noted in section IV, it is expected that if the selected certified public accounting firm performs satisfactorily for the June 30, 2014 audit, it will be engaged to perform the audit for the succeeding years. Therefore, the not-to-exceed fee information requested above should be provided on an annual basis for those years.
F. Non-discrimination Clause
Affirm that the firm does not discriminate against any individual because of race, religion, sex, color, age, handicap or national origin, and that these shall not be a factor in consideration for employment, selection of training, promotion, transfer, recruitment, rates of pay, or other forms of compensation, demotion, or separation.
- VI. CONTRACTUAL ARRANGEMENTS
A. Audit programs, work papers, and reports must be retained for a period of three years after the completion of the audit and made available for inspection by Pleasant View City or government auditor’s if requested by them.
B. Payment for the audit will be made upon receipt of the audit reports required in section III.
C. Pleasant View City staff will be available to prepare schedules, trial balances, and provide documentation to assist the auditor as their schedules permit during the course of the audit.
- VII. EVALUATION OF PROPOSALS
The following criteria will be considered when making an evaluation of the proposals:
A. Technical Factors
- Responsiveness of the proposal in clearly stating an understanding of the audit services to be performed.
- Appropriateness and adequacy of proposed procedures.
- Reasonableness of time estimates and total audit hours.
- Appropriateness of assigned staff levels.
- Technical experience of the firm.
- Qualifications of staff.
- Size and structure of firm, considering the scope of the audit.
- Geographic location of key personnel and responsible office.
B. Cost of the audit
C. Right to Reject
Pleasant View City reserves the right to reject any and all proposals submitted and to request additional information from all proposers. Any contract awarded will be made to the independent certified public accounting firm who, based on evaluation of all responses, applying all criteria and oral interviews, if necessary, is determined to be the best to perform the audit.
- VIII. SUBMISSION OF PROPOSALS
Five copies of your proposal must be submitted to Pleasant View City, Attn: Laurie Hellstrom, 520 West Elberta Drive, Pleasant View, Utah, 84414, no later than September 16th, 2014 at 12:00 P.M. No proposal will be considered that is not received at or prior to the above time and date. It’s anticipated the selection of the CPA firm will be made by September 23, 2014, and all firms submitting proposals will be notified thereafter as to the selection results.
- IX. SOURCES OF INFORMATION
Any questions about this Request for Proposal can be emailed to
. The subject line should state: “Auditing Services”. Laurie Hellstrom, City Recorder/Finance Officer, can also be contacted at (801) 782-8529 for information necessary to complete the proposal.