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REQUEST FOR FINANCIAL STATEMENT AUDIT

By Keith Howard,2014-05-18 00:25
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REQUEST FOR FINANCIAL STATEMENT AUDIT

    REQUEST FOR PROPOSAL

    ANNUAL FINANCIAL STATEMENT AUDIT

    FY 200X

    For X (X) Reporting Entity(ies):

Consolidated U.S. Department of XXX; (if applicable)

    and other components

    Table of Contents

    Section A Summary of Statement of Work

Section B - Statement of Work

    Attachment A Department’s draft timeline for FY

    200X

    Attachment B Agreed-Upon Procedures Intra-

    Governmental elimination entries for

    FY 200X and any other applicable

    agreed-upon procedures.

    Attachment C Instructions for Auditor’s Summary of

    Unadjusted Differences

    Attachment D Schedule of Deliverables

Attachment X - Any attachments pertinent to your

    agency

    REQUEST FOR PROPOSAL

    ANNUAL FINANCIAL STATEMENT AUDIT

    Fiscal Year 200X

    For X (X) Reporting Entity(ies):

Consolidated U.S. Department of XXX; and (if

    applicable) other components

    SECTION A

    SUMMARY OF STATEMENT OF WORK

    REQUEST FOR ANNUAL FINANCIAL STATEMENT AUDIT

    FISCAL YEAR 200X

     TASK ORDER STATEMENT OF WORK

    SUMMARY OF TASK REQUIREMENTS

    I. The overall objective of this statement of work is to obtain

    an audit(s) (of multiple reporting components (if applicable))

    of the U.S. Department of XXX (DOX) for fiscal year (FY) 200X.

     The reporting component(s) covered by this statement of

    work is/are: (1) the Consolidated U.S. Department of XXX; and

    (if applicable)(2) multiple components. The work under this

    task will be used to: (1) meet the requirements of the Chief

    Financial Officers (CFO) Act of 1990, Public Law 101-576 (or

    alternatively, the Accountability of Tax Dollars (ATD) Act of

    2002, Public Law 107-289) for audits of DOX’s consolidated financial statements, as defined by the Office of Management

    and Budget (OMB) Bulletin 01-02, Audit Requirements for Federal Financial Statements, as amended, or the most current guidance, (2) provide a basis for the Government

    Accountability Office (GAO) to determine the extent to which

    it can use the audit work performed under this statement of

    work in support of GAO’s annual audit of the U.S. government-wide financial report (FR) of which the Department of XXX is

    a component, (3) assist DOX management in assessing the

    effectiveness of internal controls and compliance with laws

    and regulations, and (4) assist DOX and Office of Inspector

    General (OIG) management in determining the effectiveness of

    information technology (IT) related internal controls and

    compliance with The Federal Financial Management Improvement

    Act of 1996 (FFMIA), Public Law 104-208. (Add this statement

    if you are conducting multiple component audits) The audits

    of each of these reporting components shall be conducted as

    separate and distinct tasks (Task A and Task B, Task C, etc.)

    under this task order.

An overall summary of the task requirement is presented below.

    II. This/These audit(s) is/are required by the CFO Act (or

    alternatively, the ATD Act of 2002, Public Law 107-289) and

    the Government Management Reform Act (GMRA) of 1994, Public

    Law 103-356. The audit(s) shall be performed in accordance

    with generally accepted government auditing standards (GAGAS),

    as specified in the current version of the GAO Government

    Auditing Standards (GAS), and additional audit requirements

    of the OMB. In conducting this/these audit(s), the

    methodology used shall be at a minimum, consistent with the

    Section A Page 1

most current version of the GAO/President’s Council on

    Integrity and Efficiency (PCIE) Financial Audit Manual (FAM).

    For any methodology other than the FAM, the Contractor must

    provide documentation to the OIG on a timely basis,

    demonstrating how the Contractor’s methodology satisfies the

    requirements of the FAM. The OIG shall be notified

    immediately of any significant deviations from the FAM.

The contractor shall perform procedures in accordance with

    the GAO’s Federal Information System Controls Audit Manual

    (FISCAM) to assess the effectiveness of the agency’s system

    control environment.

(If applicable) At DOX, separate audits of xx (xx) reporting

    components are performed first. The DOX Consolidated Audit

    then consists of a rollup of these xx (x) component audits

    plus consolidating issues, such as intra-Departmental

    elimination entries.

A. For the DOX Consolidated Audit, additional requirements

    include: intra-Departmental elimination entries;

    restrictions on the release of the audit opinion to the

    reporting entity; information system control environment

    review of the Department’s Data Centers; Year-End Closing

    Package for the government-wide FR; and DOX’s Performance

    and Accountability Report (PAR).

    B. For the other component audits, additional requirements

    include: reviewing the component’s financial statements

    to ensure compliance with Department requirements;

    reviewing the DOX PAR with respect to the reporting

    entity; performing specific Agreed-Upon Procedures in

    relation to the intra-Departmental and intra-governmental

    elimination entries; and restricting the release of audit

    opinions to the reporting entities.

    III. The period of performance for this/these task(s) shall be

    from date of award through XXXXX.

    IV. Place your agency’s pricing format here, i.e., fixed price,

    estimated cost not-to-exceed, indefinite delivery/indefinite

    quantity, combination of fixed price, not-to-exceed, and

    labor hours for the base year and for four (4) one (1) year

    options.

The Contractor shall propose the specific labor categories

    and quantities consistent with Section B,

    Section A Page 2

Supplies/Services/Pricing of the contract and the technical

    approach described in this task order Statement of Work.

V. Optional Requirements:

The Contractor shall include in its proposal pricing for the

    following options:

    A. Opinion on Internal Controls over Financial Reporting

    in accordance with the Statements of Standards for

    Attestation Engagements, AT Section 501,

    Codification of Statements on Auditing Standards.

    B. Independent Evaluation in accordance with the Federal

    Information Security Management Act (FISMA), Public

    Law 107-347., including the preparation of the OIG

    response to the questionnaire provided by OMB as

    part of their FISMA instructions.

    VI. Deliverables shall include a staffing list; an

    independence/quality control assurance statement (for option

    years only); a Detailed Audit Planning Document; audit

    programs, including a field office program; Notification of

    Findings and Recommendations (NFR); Summary of Unadjusted

    Audit Differences; Status and Other Meetings; monthly

    progress reports, (bills and accruals (if applicable to your

    agency)); review of financial statements to ensure compliance

    with Department’s requirements; a summary memo documenting

    the conclusions reached on each significant internal control

    cycle, account balance, lead schedule, audit adjustments, and

    on the overall audit; Financial Statement Audit Completion

    Checklist (FAM 1003) and the Financial Reporting: Checklist

    for Federal Accounting, Reporting, and Disclosures (FAM 1050);

    and reports on the Principal Financial Statements, Internal

    Control, Compliance with selected Laws and Regulations

    including FFMIA (or one consolidated report, if applicable to

    your agency), Management Letter, and applicable Agreed-Upon

    Procedures. Furthermore, a report on the Information System

    Control Environment Review, a report on the Special Purpose

    Financial Statements (Year-End Closing Package), and reports

    for Agreed-Upon Procedures (AUP) for the Office of Personnel

    Management (OPM) (OPM AUP only if required by your agency)

    and Intragovernmental Transactions are required. (Note: The

    Closing Package, OPM AUP, and Intragovernmental Transactions

    do not apply to ATD agencies.)

     See the statement of work Section XIII. Deliverables for

    further detail.

    Section A Page 3

    VII.There are multiple methods of payments for the task orders.

    Below are examples of different methods. Please choose the

    method utilized by your agency or tailor this section to your

    agency.

     (For payments based on deliverables) Monthly progress th) working day of each month. reports are due by the fifth (5

    Progress reports must also be submitted with each billing

    received, detailing how the Contractor has met the required

    deliverable. The progress reports shall be prepared in

    accordance with section xxx of the contract.

     (For payments based on hourly reimbursement) Monthly progress threports and bills shall be submitted by the fifth (5)

    working day of each month. The progress reports shall be

    prepared in accordance with section xxx of the contract.

    Bills shall be prepared on a calendar month basis.

Estimations for accruals shall be provided to the Contracting

    Officer’s Technical Representative (COTR) via e-mail ten (10)

    days prior to the end of each fiscal quarter. Each firm shall

    consolidate all of its accruals for all current tasks into

    one spreadsheet.

    VIII. Submission Dates

    A. For the Consolidated DOX Audit, the draft reports for

    the FY 200x statements shall be submitted no later than

    xxx, 200x; and the final reports shall be submitted no

    later than xxx, 200x.

    B. (If applicable) For the multiple component audits, a

    schedule of due dates for the draft and final report(s)

    will be determined through discussions with the

    Department’s management and communicated to the

    contractor no later than xxx of the fiscal year being

    audited. It is anticipated that the draft report(s)

    shall be due no later than xxx and the final report(s)

    due no later than xxx.

    Section A Page 4

    REQUEST FOR PROPOSAL

    ANNUAL FINANCIAL STATEMENT AUDIT

    FY 200X

For X (X) Reporting Entity(ies):

    Consolidated U.S. Department of XXX; and (if

    applicable) other components

    SECTION B

STATEMENT OF WORK

    Task A

    Reporting Entity: Consolidated U.S. Department of XXX

I. OBJECTIVE

The objective of Task A is to obtain an independent audit of the

    consolidated annual financial statement for the Department of XXX

    (DOX) for FY 200X.

II. ENTITY TO BE AUDITED

A. Background/Organization

    ? Mission

    ? History

    ? Organizational structure/management/organizational chart

    ? Other information pertinent to your agency

B. Funding

    ? Overall funding

    ? Funding by component

D. Department Financial Management Organization

    ? Organization of Department

    ? Brief description of organization of component financial

    management

E. Accounting Systems

    ? Description of accounting systems used

F. Government-wide/Outside Systems

    ? List other systems which provide pertinent information to

    your agency

F. Accounting Records

    ? Discussion of accounting records maintained by agency

    (centralized, decentralized, etc.)

    Section B Task A - Page 1

G. Financial Statement Presentation

    ? Who prepares the financial statements

    ? If guidance is prepared by agency, detail here

H. Prior Audits

    ? Results of prior audits

III. AUDIT BACKGROUND

    This audit is required by the Chief Financial Officers (CFO) Act of 1990 (Public Law 101-576), as amended, (or alternatively, the Accountability of Tax Dollars (ATD) Act of 2002 (Public Law 107-289)) and the Government Management Reform Act (GMRA) of 1994 (Public Law 103-356). The CFO Act required agencies to submit financial statements to the Director of the Office of Management and Budget (OMB) and required the Office of the Inspector General (OIG), or at the OIG’s discretion, an independent external auditor, to audit the financial statements. GMRA amended those portions of the CFO Act dealing with the preparation and audit of the financial statements to require that 24 major Federal Government agencies, including DOX, shall annually prepare and submit to the Director, OMB, audited financial statements covering all accounts and associated activities of the agency. (if necessary, The ATD Act of 2002 extended to selected Executive agencies the requirement to prepare and submit audited financial statements to the Congress and the Director of OMB beginning with the FY 2002 cycle.) The Government Accountability Office (GAO) is responsible for the audit of the consolidated financial statements of the U.S. Government.

    To facilitate these requirements, the OMB issued Bulletin 01-02, Audit Requirements for Federal Financial Statements, as amended.

    This Bulletin governs the conduct of Federal financial statement audits.

    On January 4, 2001, OMB issued revised guidance for determining and reporting on the Federal Financial Management Improvement Act (FMFIA) of 1996, Public Law 104-208. This guidance requires the contractor to perform tests to determine if the component’s financial management systems substantially comply with FFMIA Section 803(a).

    IV. AUDIT REQUIREMENT

    Section B Task A - Page 2

The Contractor shall be required to conduct a full scope

    financial audit of DOX’s consolidated “Annual Financial

    Statement” for the fiscal year ending September 30, 200X.

    (Mention any agreed upon procedures for your agency here (intra-

    Departmental, intra-governmental, headcount report, etc.).)

The audit shall be performed in accordance with generally

    accepted government auditing standards (GAGAS), as specified in

    the most current version of the GAO’s Government Auditing

    Standards (GAS), and additional audit requirements of the OMB. In conducting the audit, the methodology used shall be at a

    minimum, consistent with the most current version of the GAO/PCIE

    FAM. Should there be any deviations from the methodology set

    forth in the FAM, the Contractor must provide documentation to

    the OIG on a timely basis, demonstrating how the Contractor’s methodology satisfies the requirements of the FAM. The OIG shall

    be notified immediately of any significant deviations from the

    FAM.

With respect to internal control, the Contractor shall obtain an

    understanding of the components of internal control and assess

    the level of control risk relevant to the assertions embodied in

    the classes of transactions, account balances, and disclosure

    components of the financial statements. The Contractor shall

    also obtain an understanding of the components of internal

    control relating to the existence and completeness assertions

    relevant to the performance measures included in Management’s

    Discussion and Analysis (MD&A).

With respect to MD&A, the Contractor shall assess whether the

    information and manner of its presentation in the MD&A of the

    Reporting Entity is materially consistent with the information in

    the principal statements. In performing this assessment, the

    Contractor shall consider this required supplementary information

    and shall follow the guidelines presented in the American

    Institute of Certified Public Accountants’ (AICPA) AU Section 551,

    Codification of Statements on Auditing Standards, and shall

    perform the procedures described in the AICPA’s AU Section 558,

    Codification of Statements on Auditing Standards. In addition,

    the Contractor shall obtain an understanding of the design of

    internal controls relating to the existence and completeness

    assertions over performance measures and determine whether they

    have been placed in operation, as required by OMB Bulletin 01-02,

    as amended, or the most current OMB audit guidance.

With respect to Required Supplementary Stewardship Information

    (RSSI) and Required Supplementary Information (RSI), the

    Section B Task A - Page 3

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