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HomeMy WebLinkAboutAuditing Services VILLAGE OF OAK BROOK REQUEST FOR PROPOSAL AUDITING SERVICES July 2020 Please mail all responses to: Rania Serences Senior Purchasing Assistant Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 Page 1 This Request for Proposals (“RFP”) has been prepared by the Village of Oak Brook in order to retain an independent Certified Public Accountant licensed in the State of Illinois to provide auditing services for the three (3) fiscal years from December 31, 2020 through December 31, 2022, with a Village option for a fourth and fifth year ending December 31, 2023 and 2024 (“Services”). For the purpose of this RFP and the anticipated Agreement, "Village" means the Village of Oak Brook and the selected Proposer that is awarded the Agreement is the “Proposer.” The selected Proposer will be invited to enter into an agreement with the Village, in a form to be provided by the Village (“Agreement”), to provide the Services in accordance with the Project Scope section of this RFP. The Village Board has the ultimate authority to approve any proposal and to authorize execution of the negotiated Agreement. SECTION I: GENERAL INFORMATION The Village is a non-home rule municipality with a population of 7,883. The Village’s annual budget for fiscal year 2020 is $66,630,570. While the Village has no outstanding bonded debt, installment contract financing has been used on three occasions in order to finance specific capital projects. The Village does not levy a property tax. Sales taxes, telecommunications taxes, and utility taxes are the primary revenue sources for general governmental operations. Village Information Number of Funds The Village has the following number of funds by type: Type of Fund # of Funds General Corporate 1 Capital Project 2 Special Revenue 3 Enterprise 3 Internal Service 3 Pension Trust 2 14 Of the total number of funds, the Village has six funds classified as Major Funds as of December 31, 2019. In addition, the capital project funds noted above include one tax increment financing district (TIF). Both real estate taxes and sales taxes support the TIF District, which was created in 2005. The Village provides a full range of services including public safety (police, fire, bureau of inspection, and emergency medical service), public works, a water utility, engineering and public improvements, and a free public library. In addition, the Village owns the Oak Brook Sports Core, consisting of 3 swimming pools, banquet facilities, outdoor tennis courts, and an 18-hole public golf course. Statistics Fiscal Year December 31, 2020 General Fund Budget $25,531,850 Page 2 Total Budget $66,630,570 Population 7,883 Total full-time equivalent employees 188.3 Financial Operations Five full-time employees, including the Finance Director, staff the Village’s Finance Department. The Finance Department utilizes Munis as its financial system software, which is available on the Village- wide network. The Village obtains its insurance through membership in the Intergovernmental Risk Management Agency (IRMA). The Village has complied with all of the accounting and reporting standards set forth in GASB Statement 34, including the retroactive reporting of infrastructure. The first Village CAFR to reflect the requirements of GASB 34 was for the fiscal year that ended December 31, 2003. The Comprehensive Annual Financial Report (CAFR) is to be prepared in a format that complies with the Certificate of Achievement for Excellence in Financial Reporting requirements of the Government Finance Officers Association (GFOA). The Village has been awarded the Certificate for 41 consecutive fiscal years. SECTION II: PROJECT SCOPE The Services must include the following: 1. The Proposer is to express an opinion on the fair presentation of the financial position of the governmental activities, the business-type activities, and the Village’s fiduciary funds in conformity with accounting principles generally accepted in the United States of America. The Proposer will issue an “in relation to” opinion on the Village’s combining and individual fund statements and schedules. 2. The Proposer shall be responsible for performing certain limited procedures involving providing required supplementary information required by GASB as mandated by generally accepted auditing standards. 3. The report, including financial statements, notes, and statistical sections, is to be presented in a manner that is consistent with GASB, GFOA CAFR standards and practices. The Village will submit the report to the GFOA CAFR award program. The Proposer must prepare any response to GFOA regarding CAFR deficiencies, if any. 4. The Proposer shall prepare the Comprehensive Annual Financial Report (CAFR), including drafting and typing such report. The most current version of the CAFR for the Village for the year ending on December 31, 2019 is available for viewing on the Village’s website at http://www.oak-brook.org/424/CAFR. 5. The Village will provide all records necessary to perform such audit and will prepare workpapers. A listing of the workpapers that have been prepared in the past is attached (see Attachment A). The Proposer must note additional workpaper requirements, if any, in the response to the request for proposal. 6. The Letter of Transmittal, Management’s Discussion and Analysis, and necessary letterhead will be provided by the Village of Oak Brook. Page 3 7. Report preparation, editing, printing, and supplies including covers, dividers, and spines shall be the responsibility of the Proposer. 8. If during the course of the examination, the Proposer finds any weaknesses in internal controls, the Proposer shall summarize such findings and recommendations in the form of a separate management letter to the Village of Oak Brook. 9. The Proposer shall be available to meet with elected officials at an evening meeting to answer questions regarding the proposal, the completed audit, or management letter, if requested. The Proposer will present the audit report to the Village Board at one if its May or June meetings of each year of the Agreement. 10. The Proposer shall be available for consultation and questions which arise throughout the year regarding accounting, compliance or internal control issues. 11. If required, the Proposer shall prepare a Single Audit Report as required by the Single Audit Act. Village requirements vary from year-to-year and at the present time a Single Audit is not required. The Proposer’s responsibility includes advising the Village of all filing requirements related to the Single Audit Act. 12. Preparation of financial statements and report of the Village’s Tax Increment Financing District, as required by the Tax Increment Allocation Redevelopment Act. 13. The Proposer shall complete their audit fieldwork and submit a draft of the CAFR and management letter within 100 days of year-end. Preliminary fieldwork is encouraged. Final copies of the CAFR, management letter, certificate responses, and required compliance opinions are due no later than April 30th of each year. 14. The following minimum numbers of reports are to be provided to the Village photocopied and bound: Twenty-five (15) copies of the Village’s Comprehensive Annual Financial Report. Twenty (15) copies of the Management Letter. Twelve (15) copies of the report on the Village’s Tax Increment Financing District. 15. In addition to the Services, the Village is also interested in receiving proposals for an agreed upon procedures report on its internal controls. The scope of the internal controls review will focus on various Village activities including, without limitation, the Village’s Sports Core operations. Proposers should include a description and pricing for this supplementary service as part of their proposals to the Village. SECTION III: SUBMITTAL REQUIREMENTS All proposals must be signed by an authorized officer of the Proposer. Proposals that contain omissions, erasures, alterations, conditional quotes, or that contain irregularities of any kind may be rejected. The proposal should contain, without limitation, the following information at a minimum: A. Contact Information. 1. Name of Proposer; and Page 4 2. Office address, main telephone and fax numbers, e-mail address, and website address. B. List of Qualifications and Certifications, and Required Licensing. The Proposer shall provide the following: 1. General information about the Proposer, its history, and services; 2. The resume of the owner/supervisor/partner of the Proposer that will be responsible for providing the Services and all of the key person(s) that would be responsible for overseeing and completing the Services, including these individuals’ certifications, degrees and experience. 3. A current listing of the firm’s Illinois municipal clients along with an indication as to which clients have received the GFOA Certificate of Achievement. 4. The hourly rates for staff assigned to the engagement as well as the total maximum inclusive fees for the years ending December 31, 2020 through 2022 and the fourth and fifth year option for the years ending December 31, 2023 and 2024 (See Attachment B). For purposes of your response, the maximum inclusive fees should be broken down into the following categories: (1) the base audit including preparation of the Management Letter and CAFR; and (2) preparation of financial statements and reports of the Village’s Tax Increment Financing District, as required by the Tax Increment Allocation Redevelopment Act. C. References. The Proposer shall provide a list of at least three public agencies and firms for which the Proposer has provided similar services and a summary of the exact type of services that were provided to these references. The proposal must include the contact information for these references. D. Letter. All Proposers shall include a letter indicating that all information in the proposal is true and complete and signed by the authorized owner, partner, officer of the corporation, or manager of the limited liability company submitting the proposal, with said signature duly notarized by a notary public. SECTION IV: EVALUATION OF PROPOSALS The Village staff will evaluate all properly submitted proposals. The Village reserves the right to use a steering committee to assist in evaluating proposals. Properly submitted proposals will be graded and ranked based on their responsiveness to this RFP, the total cost of the Services, familiarity with the GFOA Certificate Program, ability to assist the Village to successfully implement the requirements of new GASB Statements, and the factors listed in Section 1-7-4 of the Village Code of the Village of Oak Brook, Illinois. The Village may conduct interviews of all or some of the Proposers, as it deems advisable. Interviews may be held in person, by video conference, or by phone. The format will be determined at a later date. The Village will then select the top preferred Proposer, with whom the Agreement, on a form to be provided by the Village, will be negotiated. The Village Board of Trustees has the ultimate authority to Page 5 approve any proposal and to authorize execution of the negotiated Agreement. The Village reserves the right to make clarifications, corrections, or changes in this RFP at any time prior to the deadline for the submission of proposals. All Proposers or prospective Proposers that register with the Village prior to the deadline for the submission of proposals will be informed of said clarifications, corrections, or changes. To register, Proposers must email their contact information to Rania Serences at rserences@oak-brook.org. SECTION V: SUBMITTAL PROCEDURES A Questions and Clarifications. All questions regarding this RFP should be directed in writing to Jason Paprocki, Finance Director, at jpaprocki@oak-brook.org. Questions will be accepted until 12:00 p.m. CST on Friday, July 31, 2020. All questions and responses will be compiled, posted on the Village website, and submitted to all Proposers electronically in one general response memorandum by Tuesday, August 4, 2020. In order to enable the Village to equitably respond to requestor questions, the Village requests that prospective Proposers register in advance with the Village via e-mail at rserences@oak-brook.org. B RFP Submittals. All proposals shall be submitted in an opaque sealed envelope on or before the time stated and shall bear the name of the individual, firm, or corporation submitting the proposal. The envelope must state the project name: “Oak Brook Auditing Services.” Three (3) copies of the proposal must be submitted to: Rania Serences Senior Purchasing Assistant Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 Proposals must be received no later than 3:00 p.m. CST on Friday, August 14, 2020. Proposals will not be opened publically. Proposals submitted after this time will not be opened. No oral, telephone, e-mail or facsimile proposals will be considered. C Standard Terms and Conditions. Proposals submitted are offers only, and the decision to accept or reject is a function of quality, reliability, capability, reputation, and expertise of the Proposers submitting proposals. Issuance of this RFP does not obligate the Village to pay any costs incurred by a Proposer in its submission of a proposal or making any necessary studies or designs for the preparation of that proposal, or for procuring or contracting for the services to be furnished under this RFP. A Proposer may withdraw its proposal, either personally or by written request, at any time prior to the scheduled deadline for submittals. No proposal shall be withdrawn for 90 days after the date set for opening proposals. Proposals shall be subject to acceptance during this period. Page 6 The Village reserves the right to accept the proposal that is, in its judgment, the best and most favorable to the interests of the Village and to the public; to reject the low price proposal; to accept any item of any proposal; to reject any and all proposals; and to waive irregularities and informalities in any proposal submitted or in the RFP process; provided, however, that the waiver of any prior defect or informality shall not be considered a waiver of any future or similar defect or informality. Proposers should not rely upon, or anticipate, such waivers in submitting their proposal. The Village reserves the right to negotiate specifications, terms, and conditions, which may be necessary or appropriate to the accomplishment of the purpose of the RFP. The Village may require the entire proposal be made an integral part of the resulting contract. This implies that all responses, supplemental information, and other submissions provided by the Proposer during discussions or negotiations will be held by the Village as contractually binding on the successful Proposer. The Village is exempt from Federal excise tax and the Illinois Retailer's Occupation Tax. This proposal cannot include any amounts of money for these taxes. The proposer understands and agrees that, if his proposal is accepted, and he fails to enter into a contract forthwith, he shall be liable to the Village for any damages the Village may thereby suffer. The proposer further declares that the only person or party interested in the proposal, as principals are those named herein, and that the proposal is made without collusion with any other person, firm or corporation. The proposer will not discriminate against any employee or applicant for employment because of race, color, religion, sex, ancestry, national origin, place of birth, age or handicap unrelated to bona fide occupational qualifications. The Proposer, its employees and subcontractor, agrees not to commit unlawful discrimination and agrees to comply with applicable provisions of the Illinois Human Rights Act, the U.S. Civil Rights Act and Section 504 of the Federal Rehabilitation Act, and rules applicable to each. SECTION VI: ANTICIPATED PROJECT TIMELINE • RFP Released July 13 2020 • Questions Due July 31, 2020 • Issuance of Responses to Questions August 4, 2020 • RFP Due Date August 14, 2020 • Interviews (if applicable) Late August / Early September 2020 • Selection of Proposer September 30, 2020 • Approval of Agreement October 13, 2020 Page 7 SECTION V: ATTACHMENTS Attachment A – List of Audit Workpapers Prepared by Village Accounts Payable Schedules, Including Retainage Accounts Receivable Listings By Fund All Board Minutes All Confirmations Bad Debt Analysis Bank Reconciliations Billed and Unbilled Water Accounts Receivable Budget Building Deposit Listing Chart of Accounts Debt Service Analysis DuPage Water Commission Payment Analysis Fixed Asset Workpapers Food and Beverage Inventories Garage Supplies and Gasoline Inventory Golf Merchandise Inventory Health Insurance Expense Account Reconciliation Hotel/Motel Tax Revenue Analysis, Including Receivable Interfund Schedules Investment Schedules IRMA and IMRF Expenses Reconciled to General Ledger IMRF Pension Net Pension Liability Motor Fuel Tax Revenue Analysis Office Supply Inventory Organization Charts OPEB Liability Payroll, Vacation, & Sick Leave Accruals Police and Firefighters’ Pension Net Pension Liability Road & Bridge Tax Revenue Analysis Schedule of Expenditures of Federal Awards Schedules of Other Receivable Accounts Self-Insurance (Health and Dental) Analysis, Including IBNR Liability Special Event Deposit Listing Sports Core Membership Analysis Sports Core Special Event Accounts Receivable Listing Trial Balances Utility Tax Revenue Analysis, Including Receivable Yard Waste Sticker Inventory YTD Water Billing Analysis Page 8 Attachment B – Schedule of Audit & Professional Fees Maximum Fees Base Audit T.I.F. Report Single Audit (if necessary) (Audit Year) All Inclusive Fee for 2020 $__________ $__________ $__________ All Inclusive Fee for 2021 $__________ $__________ $__________ All Inclusive Fee for 2022 $ $ $ Optional Years All Inclusive Fee for 2023 $__________ $__________ $__________ All Inclusive Fee for 2024 $__________ $__________ $__________ Schedule of Hourly Rates Personnel Rate Partners __________ Managers __________ Supervisors __________ Seniors __________ Staff __________ Other(Specify) _____________ __________ Page 9 Attachment C – Vendor Questionnaire FIRM NAME CONTACT PERSON ________________________________________________ ADDRESS ________________________________________________ ________________________________________________ ________________________________________________ PHONE NUMBER ________________________________________________ EMAIL ADDRESS WHEN ORGANIZED _ WHERE ORGANIZED________________________________________________ LICENSED IN ILLINOIS? _____________________ NUMBER OF YEARS IN PRACTICE? _____________________ HAS THE FIRM EVER REFUSED A CONTRACT? If yes, please submit details ____________________ HAS THE FIRM EVER DEFAULTED ON A CONTRACT? If yes, please submit details ____________________ WHERE IS YOUR NEAREST OFFICE TO OAK BROOK? _____________________ HOW MANY PEOPLE ARE EMPLOYED IN THE NEAREST OFFICE TO OAK BROOK? _____________________