LWOG-2016-03 - Request for Proposals for Professional Audit Services

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:
 

1. 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.
2. Guidance and advice on switching from a cash to accrual basis of accounting.
3. 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.
4. 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.
5. 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.
6. 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.
7. Apply limited procedures related to the Required Supplementary Information (RSI), Managements’ Discussion and Analysis (MD&A), budgetary comparison information, and Supplementary Information.
8. 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.
9. 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. 
10. 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.
11. Provide general consultation on financial accounting and reporting as needed during the year.
12. 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.
13. 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.

• 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.