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CityTown of ______

By Andrew Bradley,2014-05-15 17:34
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CityTown of ______

    Town of Dunbarton

    Request for Proposal Auditing Services

The Town of Dunbarton, New Hampshire requests qualified independent certified public accountants

    (hereinafter call the “Auditor”), licensed to practice in the State of New Hampshire, and having sufficient

    governmental accounting and auditing experience in performing an audit in accordance with the

    specifications outlined in this Request for Proposal (RFP), to submit a proposal.

The Town intends to continue the relationship with the selected Auditor for a period of two (2)

    consecutive years beginning with the fiscal year ending December 31, 2009 and ending with the fiscal year ending December 31, 2010.

Renewals: Two (2) one-year renewals; thereafter, if mutually agreed.

All inquiries for information should be directed to:

     Town of Dunbarton

     Board of Selectmen

     1011 School Street

     Dunbarton, NH 03046

     C/O Line Comeau

     Town Administrator

     townadministrator@dunbartonnh.org

     603-774-3540 x102

I. INFORMATION FURNISHED TO PROPOSER

A. Background and General Information

    1. The Town of Dunbarton is a local government of the State of New Hampshire. The Town serves

     an area of approximately 31.4 square miles and a population of approximately 2650.

    2. The Town is governed by a Board of Selectmen and managed by a Town Administrator.

    3. Size and complexity of the Town is as follows:

    a. Personnel/Payroll

    i. 8 fulltime employees with approximatly 23 regular part time, 14 quarterly part

    time with a total of 45 in the payroll system.

    ii. Payroll is processed weekly

    iii. Number of payroll direct deposit advises is weekly

    b. Major Revenue Sources

    i. Number of tax bills issued: 1289 total tax bills issued by Town to residents

    ii. Frequency of tax bills issued Semi-annual

    iii. Number of motor vehicle registrations for the 2008 (4084)

    iv. Total dollar amount of most recent year’s collections totaled approximately

    $6,321,336 collected by town last year from all revenue sources

    v. Total dollar of property tax levy for the year 2008 was $5,118,947 total budget

    amount for 2008 Tax commitment: $5,058,147

    1. Municipal commitment : $905,502

    2. School commitment: $2,651,056

    3. County commitment: $851,895

    4. State commitment: $710,494

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c. Bank Accounts

    i. Number of bank accounts approximately 7 ii. Number of escrow accounts approximately 14 iii. Average monthly activity in main accounts

    o Number of deposits (central depository) approximately 20

    o Number of checks:

    o Accounts payable approximately 108 checks are written from the operating

    account monthly

    o Payroll processing is 95 payroll checks monthly, of which 69 are direct

    deposit. d. Management Information Systems:

    ? Number of PCs on the premises 8

    ? Core storage of the central processing unit is stored on the server.

    ? Total disk capacity of the system 475 gb

    ? Number of employed programmers capable of modifying the operating system and

    the application programs is 2.

    4. The Town’s fiscal year is from (January 1 to December 31).

    5. The Town has a total General and Special Revenue, budgets for the fiscal year ended December

    31, 2008 of approximately $1,871,319.00.

    6. Total revenue for all funds and component organizations was $992,312.00 for the fiscal year

    ended December 31, 2008.

    7. The Town has the following funds and account groups:

    a. Major Governmental Funds:

    i. The General Fund is the Town’s primary operating fund. It accounts for all

    financial resources of the general government.

b. Non-Major Governmental Funds (including permanent funds):

    i. Public Library

    ii. Conservation

    iii. Old Home Day Committee

    iv. DARE Program

    v. Town Common

    vi. Town Forest Committee

    vii. Winslow Town Trust

    viii. Capital Reserves include: Common Trust Funds; Cemetery Fund; Sargent/Pages

    Corner; Winslow Town Forest Fund: Land Purchase Cap. Reserve; Revaluation

    Cap. Reserve fund; Silberberg School Fund; Dunbarton School Cap. Reserve;

    Special Education Fund; DES Kitchen Equipment Fund; Fire Dep. Equipment

    Fund.

c. Major Enterprise or Special Revenue Funds:

    i. Capital Reserves Capital Reserves include: Common Trust Funds; Cemetery

    Fund; Sargent/Pages Corner; Winslow Town Forest Fund: Land Purchase Cap.

    Reserve; Revaluation Cap. Reserve fund; Silberberg School Fund; Dunbarton

    School Cap. Reserve; Special Education Fund; DES Kitchen Equipment Fund;

    Fire Dep. Equipment Fund.

     Silberberg Trust Funds

    ii. Police Department Special Revenue Fund

    iii. Performance bonds

    d. Account Groups

    i. General Fixed Assets Account Group

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8. Mason & Rich Professional Assoc. performed the most recent audit of the Town for the fiscal year

    ended 2008. A copy of the auditors’ reports and management letter is available upon written

    request.

    B. Description of Records

1. The Town maintains its general records in accordance with GASB.

2. The following records are maintained on the Town’s automated accounting information system

    BMSI:

    a. General ledger

    b. Budgetary

    c. Payroll

    d. Procurement

    e. Accounts payable

3. The following financial application(s) are on a separate computer system:

    a. Treasurer’s files (Quicken)

4. The following records are maintained manually (if any):

    a. We have approximately 5 accounts which are tracked manually

    C. Objective and Scope of Work to be Performed

1. The audit will encompass a financial and compliance examination of the Town’s basic financial

    statements, supplementary information and compliance reports. The financial and compliance

    audit will cover federal, state and local funding sources in accordance with auditing standards

    generally accepted in the United States of America and the standards applicable to financial

    audits contained in the following:

    ? Government Auditing Standards issued by the U.S. Government Accountability Office;

    ? Single Audit Act of 1984 and Single Audit Act Amendments of 1996, if applicable;

    ? Provisions of the U.S. Office of Management and Budget OMB Circular No. A-133, Audits of

    States, Local Governments, and Non-Profit Organizations, if applicable;

    ? Government Auditing Standards and Circular A-133 Audits issued by the American Institute of

    Certified Public Accountants; and

    ? All other applicable laws and regulations.

2. The Auditor will be responsible for assisting with the preparation of and printing the basic

    financial statements, supplementary information and compliance reports (or CAFR if

    applicable). The Town Administrator will be actively involved in preparing the Management

    Discussion and Analysis (MD&A), other schedules section and supplementary information. The

    Auditor will submit a draft of the financial statements to be reviewed in detail by the Town

    Administrator and the Board of Selectmen. This draft shall be submitted to the Town in time to

    allow ample review and corrections.

3. The audit shall result in the preparation of financial statements from the audited records of the

    Town with the Auditor’s opinion thereon. The Auditor’s opinion shall be expressed in the report

    and include reasons for qualifying the opinion, disclaiming the opinion, or rendering an adverse

    opinion.

4. If required, the Auditor shall perform the audit and prepare all reports pertaining to the Single

    Audit Act of 1984 and the Single Audit Act Amendments of 1996. The Auditor is not required to

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    audit the schedule of federal financial assistance. However, the Auditor is to provide an “in-

    relation-to” report on that schedule based on the auditing procedures applied during the audit of

    the financial statements.

    5. The auditor should also be familiar with and prepared to advise Town staff on how to best

    implement both current and proposed GASB Statements. In addition, the auditor is also expected

    to provide informal advice and consultation throughout the year on matters relating to

    accounting and financial reporting. This would not necessarily include any task that entails

    significant research or a formal report.

    6. Should circumstances arise during the audit that require significant additional work to be

    performed in excess of the amounts set forth in the contract, additional costs shall be negotiated

    prior to commencement of the work and an amended contract will be submitted for approval to

    the Board of Selectmen.

    7. The auditor shall review the system of internal controls and of compliance with budgetary legal

    requirements by the Town and provide recommendations in the form of a management letter.

    The auditor shall communicate any reportable condition found during the audit. A reportable

    condition shall be defined as a significant deficiency in the design or operation of the internal

    control structure, which could adversely affect the Town’s ability to record, process, summarize

    and report financial data. Said letter shall include written responses by governmental officials to

    the auditor’s observations.

    8. Non-reportable conditions discovered by the auditors shall be reported in a separate letter to the

    Board of Selectmen and the Town Administrator, which shall be referred to in the management

    letter.

    9. The Auditor shall be required to make an immediate written report of irregularities and illegal

    acts, or indications of illegal acts of which they become aware.

    10. As guided by AICPA Auditing Standards Board Statement on Auditing Standard No. 68, the

    Auditor should exercise due professional care in understanding the type of engagement and also

    requiring that if during the audit the Auditor becomes aware that the Town is subject to audit

    requirements which may not be encompassed in the terms of the engagement he or she should

    communicate to management and the audit committee or others with equivalent authority and

    responsibility that the audit may not satisfy the requirements.

    11. The Auditor shall complete the state required MS-5 report for a timely submission to the State of

    New Hampshire Department of Revenue Administration-Municipal Services Division.

    D. Report Requirements

    Following the completion of the audit of the fiscal year’s financial statements, the Auditor shall issue the

    following:

    1. A report on the fair presentation of the financial statements in conformity with generally

    accepted accounting principles for the Town and its component units. The financial audit opinion

    will cover the basic financial statements. The audit shall lead to the expression of an unqualified

    opinion on the financial statements unless the auditor justifies to the Town, in advance and in

    writing, the reasons for an opinion that is other than unqualified. Certain combining and

    individual financial statements and schedules, and related information are not necessary for a fair

    presentation, but will be presented as additional analytical data. This supplementary information

    will be subjected to the tests and other auditing procedures applied in the audit of the basic

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    financial statements, and an opinion will be given as to whether the supplemental information is

    fairly stated in all material respects in relation to the financial statements taken as a whole.

    2. Management letter.

3. State required MS-5 report.

    E. Assistance to be Provided to the Auditor

1. The Town will designate Town Administrator as the audit engagement coordinator to work

    directly with the Auditor. The engagement coordinator will have responsibilities for the

    following:

    a. Primary contact for questions, securing information, and other pending issues

    between the Auditor and the Town on items related to the financial statements.

    b. Receiving initial draft copies and re-drafted copies of the financial statements,

    management letter and internal control letter from the Auditor and circulating

    drafts to the Board of Selectmen.

    c. Coordinating meetings with Auditor and the Board of Selectmen.

    d. Monitoring and reviewing the progress reports from the Auditor.

    e. Helping to resolve issues with the Auditor not related directly to financial

    statements.

    f. Oversight of “Representation Letter” by management to Auditor.

2. The Town will render all feasible assistance to the Auditor and shall respond to requests within

    reason for information; provide all necessary books and records; provide account analysis

    worksheets, computer reports on all activity on requested accounts, and provide physical

    facilities required by the auditors for the expeditious conduct of this engagement.

3. A trial balance with budgeted amounts will be made available to the Auditor via computer

    diskette, hard copy, or e-mail. The Town represents that the books of account will be fully

    balanced, all subsidiary ledgers reconciled to control accounts, and all bank account

    reconciliations for each month will be completed.

4. The staff of the Town will prepare schedules, statements, reconciliations and provide information

    as requested by the Auditor.

    F. Timing Requirements

1. The Auditor will attend a preplanning conference with the Town Administrator prior to the

    interim field work; periodic conferences during the audit; as well as an exit conference prior to

    the completion of field work.

    2. The Town Administrator will receive a listing of requested information needed for the audit at

    the preplanning conference.

3. The Town prefers interim field work to be performed and completed in the 1st quarter of the

    fiscal year 2010 being audited.

4. An agreed upon post-closing trial balance will be prepared by April 30, 2009

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5. The audit must be completed and reports rendered within eight months following the fiscal year

    end of the Town.

6. A preliminary draft of the audit and required journal entries must be submitted to the Town

    Administrator within seven months of year-end for proofing and reconciliation to the Town’s

    records.

7. The Auditor shall provide 5 bound copies of each audit report, management letter, and other

    applicable reports within the time frame sited above. In addition, the Auditor shall provide one

    copy of the original audit reports, management letter and other applicable reports in electronic

    format.

8. The Auditor shall attend one meeting with the Board of Selectmen, at which the audit report will

    be discussed.

9. Progress reports are to be submitted with billings. These reports are to measure results against

    the Auditor’s work plan. The Auditor shall promptly report to the Town Administrator any

    conditions, which impede the proper conduct or planned timetable of the audit.

    II. INSTRUCTIONS REGARDING PROPOSALS

Three (3) copies of your sealed proposal will be accepted by the Town Administrator, Town of Dunbarton,

    1011 School Street, Dunbarton, NH 03046, until 3:30 pm, Tuesday, December 1, 2009. Proposals must

    include:

A. Qualifications of the Firm

    a. A description of your firm and its relevant prior experience.

    b. List of any experience with the GFOA Certificate of Achievement for Excellence in Financial

    Reporting.

    c. List of references pertaining to the audit of government agencies and/or municipalities.

    d. A description of the partner(s) and manager(s) to be assigned to this engagement, including

    their resumes.

    e. A list of the audit personnel. The Town requires continuity of audit personnel throughout

    the audit.

    f. An affirmative statement should be included indicating that the firm and all assigned key

    professional staff are properly licensed to practice in New Hampshire.

    B. Technical Approach

    a. Express agreement to meet or exceed the scope of work, report requirements and timing

    requirements stated in Sections C, D & F.

    b. A tentative schedule for performing the key phases of the audit.

    c. A brief description of the audit procedures to be followed, presented in a form which shall

    best aid the Town in evaluating your firms ability to identify, evaluate and communicate on

    local government financial matters.

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    d. Comment specifically on the timeline and how the Town can assist in expediting the audit.

    Describe assistance expected from the Town staff, if other than outlined in the RFP.

e. Include a signed “Authorized Signatures and Attestation” form (Exhibit A).

    C. Fees

    a. Maximum fee that your firm will charge the Town of Dunbarton for the audit stated in

    Section C with the exception of the Single Audit Act and hourly rates for each level of staff if

    the Town of Dunbarton authorizes your firm to expand the scope of the engagement. The

    total all-inclusive maximum price is to contain all direct and indirect costs including out-of-

    pocket expenses.

    b. If required, the maximum fee that your firm will charge the Town of Dunbarton for the audit

    and required reports under the Single Audit Act. Said fee shall be listed separate from the

    above-mentioned cost.

    c. All hourly rates shall include all direct and indirect costs. Out-of-pocket expenses for your

    firm’s personnel (e.g., travel, lodging and subsistence) shall be the responsibility of your firm.

    A list of the hourly rates by team member shall also be included.

    D. Manner of Payment a. Progress payments will be made on the basis of work completed during the course of the

    engagement. Interim billings shall cover a period of not less than a calendar month. Interim

    billings can not exceed the total cost of the engagement. Ten (10) percent may be withheld

    from each billing pending delivery of the firm’s final reports.

    E. Other Information a. Insurance requirements The firm awarded the contract shall maintain, at their own expense,

    during the life of the contract, insurance against professional liability in the amount of

    $1,000,000. The firm shall also maintain, at their own expense, during the life of the contract,

    the statutory Workers’ Compensation and Employer’s Liability Insurance for all its

    employees engage in work for this contract.

    b. Describe any regulatory action taken by any oversight body against the proposing audit firm

    or local office, if any.

    c. Identify any potential audit difficulties, along with the firm’s proposed resolution and any

    additional assistance expected from Town staff.

    d. Provide any other information you believe relevant to the decision of selection of the best

    auditing firm for the Town.

    F. General Requirements

    1. The Town reserves the right to reject any or all proposals if there is good cause; to cancel the

    solicitation, waive technicalities; request clarification or additional information and be the sole

    judge of suitability of the services for its intended use and further specifically reserves the right to

    make the award and negotiate the final contract in the best interest of the Town considering cost

    effectiveness. Failure to respond to any requirements outlined in the RFP, or failure to enclose

    copies of the required documents, may disqualify the bid. The Town reserves the right to retain

    all submitted proposals.

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    RFP- Audit Services Exhibit A

    AUTHORIZED SIGNATURE AND ATTESTATION

    I, the undersigned, an authorized representative of _________________________________, whose address is ___________________________________, have read and thoroughly understand the specifications, instructions and all other conditions of the RFP for Auditing Services issued by the Town of ______________ for auditing services for the fiscal years ended (first year), and (second year).

    Acting on behalf of my accounting firm, which is listed above, I do attest that the services offered by us meet the Town of __________________ specifications in every respect (check one) __________without exception/_________with exception.

    We therefore, offer and make this bid to furnish the Town of _________________ the Audit Services detailed in this proposal, at the prices indicated.

Date: ________________________________

Signature: ________________________________

Printed Name: ________________________________

Title: ________________________________

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