Purpose
The Lefthand Watershed Oversight Group (LWOG), a non-profit 501c3, is seeking proposals from qualified and experienced certified public accounting firms for external audit services for the year ending December 31, 2016 and an outline of rates for external audit services with a required Single Audit for the year ending December 31, 2017 due to federal grant dollars in excess of $750,000 that will be expensed in the FY2017.
General Information
The deadline for submitting sealed proposals is 10/28/16 Firms are requested to submit 3 hard copies and one electronic copy, as described in detail under “Proposal Instructions,” below. Selected candidates may be scheduled for an interview with a selection committee as designated by the Board of Directors.
All costs incurred in the preparation of any proposal responding to this RFP will be the responsibility of the submitting firm and will not be reimbursed by LWOG.
Copies of previous years’ financial statements, as well as budgetary and other financial information, are attached on Appendix A.
Written inquiry deadline
Written inquiries may be sent only by e-mail and will be accepted until 4:30 PM MST on October 21st and all questions and responses will be documented and posted to all interested parties by 4:30 PM MST on October 24th, 2016. Inquiries should be made to Jessie Olson (jolson@lwog.org). Inquiries will be accepted by e-mail or phone.
Scope of Work
The scope of the prospective engagement will be to perform a financial audit of LWOG for the year ended December 31, 2016, in accordance with generally accepted auditing standards. In addition, LWOG is seeking advice on switching our basis of accounting from cash to accrual basis. At a minimum, the selected auditor will be required to complete the following:
- Audit LWOG’s basic financial statements in accordance with Generally Accepted Auditing Standards (GAAS) in the United States and the standards applicable to financial audits for non-profit 501c3, following the guidance on the National Council on Governmental Accounting (NCGA), the Single Audit Act Amendments of 1996, the provisions of OMB Circular A-122, and Governmental Accounting Standards Board (GASB) Statement requirements.
- Guidance and advice on switching from a cash to accrual basis of accounting.
- Express an opinion on the financial statements as to whether they present fairly, in all material respects, the financial position of LWOG and changes in financial position in conformity with generally accepted accounting principles (GAAP), and issue an independent auditors’ report stating this opinion.
- Test internal control over financial reporting and compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters, in accordance with Government Auditing Standards, and issue a report on their consideration.
- Audit and express an opinion on LWOG’s Schedule of Federal Awards in accordance with GAAS, and issue an independent auditor’s report stating this opinion.
- Express an opinion on LWOG’s compliance with requirements applicable to major programs and issue an independent auditor’s report on compliance pursuant to OMB Circular A-133.
- Apply limited procedures related to the Required Supplementary Information (RSI), Managements’ Discussion and Analysis (MD&A), budgetary comparison information, and Supplementary Information.
- Prepare a Report to the Board of Directors and Management identifying control deficiencies, significant deficiencies and material weaknesses, if any, and recommendations for improvements in accounting and administrative controls.
- Present and discuss the audit reports, financial statements and results of operations to the Board of Directors no later than the June, 2017, regularly scheduled Board meeting.
- Communicate immediately, in writing, any irregularities and illegal acts, or indications of illegal acts, of which they become aware, to the President of the Board of Directors.
- Provide general consultation on financial accounting and reporting as needed during the year.
- Retain at audit firm’s expense working papers for a minimum of three (3) years, unless the firm is notified in writing by LWOG of the need to extend the retention period. In addition, the firm shall respond to reasonable inquiries of LWOG, and successor auditors, and allow LWOG and successor auditors to review working papers relating to matters of continuing accounting significance.
- Make working papers available as necessary for examination by authorized representatives of federal, state, and private funding entities, the State Auditor’s office, and LWOG.
LWOG Information
Founded in 2004 as a 501(c)(3) nonprofit, the mission of Lefthand Watershed Oversight Group (www.lwog.org) is to assess, protect, and restore the quality of the Left Hand Creek watershed, and to serve as a hub for watershed issues through the fostering of stakeholder collaboration. All projects implemented by Lefthand Watershed Group are based on sound engineering recommendations from the Left Hand Creek Master Plan and site-specific project designs. LWOG has procedures in place to ensure that projects are planned and implemented by well-qualified contractors and has over 40 years of combined experience on staff conducting watershed restoration and monitoring projects. LWOG represents the interests of all stakeholders in the watershed, listens to all points of view, and works for the benefit of all.
LWOG is an Equal Opportunity Employer and no otherwise qualified individual shall be subject to discrimination on the basis of race, color, religion, creed, national origin, ancestry, sex, age, sexual orientation (incl. transgender status), physical or mental disability, marriage to a co-worker and retaliation for engaging in protected activity (opposing a discriminatory practice or participating in an employment discrimination proceeding) in any phase of employment for this project.
Further, the work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3), which states that: 1) Employment, training, contracting and other economic opportunities generated by U.S. Department of Housing and Urban Development (HUD) assistance shall, to the greatest extent feasible, be directed to low and very low-income persons residing within the project area; and 2) Contracts for work in connection with the project be awarded, to the greatest extent feasible, to businesses which are located in, or owned substantially by persons residing in the project area. All CDBG-DR funded projects must, to the greatest extent feasible, comply with Section 3 when contracting for professional services.
Engagement Timing
LWOG’s audit report is required to be submitted to the State of Colorado annually no later than June 30th. In order to meet this deadline, the audit must be approved by the LWOG Board of Directors no later than its regularly scheduled June meeting. In order to comply with these requirements, the following tentative timetable has been established for preparation and delivery of the audit report:
Commencement of onsite field work: No later than March 1, 2017
Draft report submitted for LWOG staff review: No later than May 1, 2017
Final draft report due to LWOG staff: No later than June 1, 2017
Audit report presentation to Board of Directors: June 20, 2017
Proposal Instructions
Responding firms shall submit 3 hard copies to LWOG:
VIA US MAIL VIA COURIER/HAND DELIVERY
Lefthand Watershed Oversight Group Lefthand Watershed Oversight Group
ATTN: Jessica Olson ATTN: Jessica Olson
PO Box 1074 6800 Nimbus Road
Niwot, CO 80544-0210 Longmont, CO 80503
One (1) electronic copy shall also be provided via email to jolson@lwog.org.
All proposals must include, at a minimum:
- Description of the qualifications of principal staff to be assigned to the audit, including audit team makeup; overall supervision to be exercised; and prior experience of the individual audit team members such as education, position in the firm, years and types of experience, continuing education, etc.
- Description of firm’s organization, size and structure.
- Statement of the availability of auditors necessary to conduct the audit in conformity with the proposed timing, as well as for pre- or post-audit consulting.
- Summary of firm’s qualifications and description of prior auditing experience including three example projects, including references of prior non-profit 501c3’s audited.
- Copy of firm’s most recent peer review.
- Description of the services to be provided, including the approaches and methods to be used, audit procedures, and other pertinent information. The firm should also include the type of assistance that will be required from LWOG staff or Board members.
- The proposed cost to provide audit services shall be provided in a sealed envelope that is separate from the proposal itself. Firm should estimate the total hours and estimated out-of-pocket costs anticipated to achieve the Scope of Work, as well as a not-to-exceed total fee. The cost proposal should include a schedule of professional fees and expenses by staff level that supports the total not-to-exceed fee. Proposal shall include a minimum of 3 years estimated costs including meeting Single Audit requirements in 2017 and 2018.
Proposals must be received no later than 4:30 p.m. on October 28, 2016 It is the responsibility of the submitting firm to ensure the proposal is received by the LWOG by the date and time specified in this RFP.
Anticipated Proposal Review Schedule
Deadline for inquiries4:30 PM MST on October 21st , 2016
Inquiry responses provided4:30 PM MST on October 24th, 2016
Deadline for submitting proposal4:30 PM MST on October 28, 2016
Proposals reviewed by the selection committeeWeek of October 31st
InterviewsWeek of November 7th
Consultant SelectionWeek of November 14th
Execution of AgreementImmediately following consultant selection.
Commence WorkImmediately following execution of agreement.
Evaluation and Selection Process
Proposals will be evaluated by a committee consisting of LWOG Board Members, staff, and bookkeeper. A recommendation for award of the audit services engagement will be made to the Board of Directors by the committee. Evaluation will be based on audit team qualifications and experience, prior experience auditing similar entities, adequate size of firm and workload capacity, overall supervision to be exercised, presentation of work to be performed, realistic time estimates, ability to provide general support, and proposed cost.
LWOG may at its discretion request presentations by or meetings with any or all submitting firms. LWOG reserves the right to make an award without further discussion of the proposals submitted.
It is anticipated that the evaluation and selection process will be completed in a manner to allow for recommendation to be made to the Board of Directors by its regular meeting on November 15, 2016 LWOG reserves the right to adjust this schedule at its discretion.
Right to Reject, Retention of Proposals, and Acceptance of RFP Conditions
LWOG reserves the right to reject any and all proposals in response to this RFP. LWOG further reserves the right to seek new proposals when such procedure is deemed in the best interest of LWOG.
LWOG reserves the right to retain all proposals submitted and to use any idea in a proposal regardless of whether that proposal is selected.
Submission of a proposal indicates acceptance by the firm of the conditions in this RFP unless clearly and specifically noted in the proposal submitted.