178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
TOWN OF HAYDEN
ANNUAL AUDIT with SINGLE AUDIT
REQUEST FOR PROPOSALS
SPECIFICATIONS
I. GENERAL INFORMATION
The Town of Hayden is requesting proposals from qualified firms of certified public
accountants to audit its financial statements for the fiscal year ending December 31, 2021,
with the option on mutual agreement, of auditing the Town's financial statements for each of
the four subsequent fiscal years subject to appropriation via TABOR. These audits are to be
performed in accordance with applicable standards.
There is no expressed or implied obligation for the Town of Hayden to reimburse responding
firms for any expenses incurred in preparing proposals in response to this request.
During the evaluation process, the Town of Hayden reserves the right, where it may serve
the Town of Hayden's best interest, to request additional information or clarifications from
the firms, or to allow corrections of errors or omissions. At the discretion of the Town of
Hayden, firms submitting proposals may be requested to make oral presentations as part of
the evaluation process.
The Town of Hayden reserves the right to retain all proposals submitted and to use any ideas in
a proposal regardless of whether that proposal is selected. Submission of a proposal indicates
acceptance by the firm of the conditions contained in this request for proposals, unless clearly
and specifically noted in the proposal submitted and confirmed in the contract between the
Town of Hayden and the firm selected.
To be considered, one emailed copy and one physical copy of a proposal must be received by
Andrea Salazar, Finance Manager at andrea.salazar@haydencolorado.org and P.O. Box 190,
Hayden, Colorado 81639-0190 by December 3rd, 2021. The Town of Hayden reserves the right to
reject any or all proposals submitted.
Proposals submitted will be evaluated by the Town Manager and the Finance Manager with
recommendation for a particular firm to the Town Council.
It is anticipated that the selection of a firm will be completed by December 16thth, 2021.
Following notification of the selected firm, it is expected the contract will be executed
between both parties by December 31st, 2021.
II. KEY DATES
A tentative schedule of key dates for the project has been established as follows:
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
A. Proposal Calendar
Distribute RFP November 9, 2021
Due date for proposals December 3rd, 2021
Interviews (if necessary)
Selection and Notification
of bid selection December 16, 2021
Contract executed December 31st, 2021
B. Date Audit May Commence
The Town will have all records ready for audit and all management personnel available to meet with the firm’s personnel on March 31, 2022. Preliminary field work may commence after that date. The audit shall be on site at the Town of Hayden.
C. Detailed Audit Plan
The auditor shall provide the Town a detailed audit plan by February 28, 2022, or earlier, at the auditor’s convenience the first year, thereafter the audit plan shall be provided by January 31 of each year.
D. Fieldwork
The auditor shall complete all fieldwork, including any recommended adjusting journal entries by April 30, 2022, thereafter the fieldwork shall be completed by the end of April for each subsequent year.
E. Date Final Report is Due
The auditor shall prepare and have available for review a draft of its comprehensive annual financial report (CAFR), including transmittal letter, financial statements and management discussion and analysis, notes, and all required supplementary schedules and statistical data by May 31, 2022. It is anticipated that the auditor will present a final draft of the CAFR and auditor’s report to the Town Board for review at the Town Board regular meeting June 16, 2022. The final signed report shall be delivered to the Town Manager within 5 working days thereafter.
III. NATURE OF SERVICES REQUIRED
A. SCOPE OF WORK TO BE PERFORMED:
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
The Town of Hayden desires the auditor to express an opinion on the fair presentation of its financial statements with conformity with generally accepted accounting principles.
The audit shall be performed in accordance with generally accepted auditing standards as promulgated by the American Institute of Certified Public Accountants and applicable state and federal regulations.
It is contemplated that the selected firm will express an unqualified opinion on the financial statements. If during the performance of the audit, it appears probable that an unqualified opinion cannot be issued, the selected auditing firm must promptly notify the Town Manager and Finance Manager in writing, stating all matters which preclude the issuance of an unqualified opinion.
The auditor shall be responsible to directly contact the Town Manager and Finance Manager should concerns raised during the Town audit warrant such contact.
The auditor will review preliminary annual budget prior to October 31, 2022 for subsequent years and specify if there will be an additional charge.
The auditor will specify the terms for consultation time.
B. AUDITING STANDARDS TO BE FOLLOWED:
To meet the requirements of this request for proposals, the audit shall be performed in accordance with generally accepted GFOA audit standards.
C. REPORTING REQUIREMENTS:
Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue:
1. A report of examination of the financial statements stating the scope of the examination and that the audit was performed in accordance with generally accepted auditing standards. It must include an opinion as to whether the statements conform to generally accepted accounting principles.
2. A letter to management containing comments on compliance, recommendations for improvements and any other comments deemed pertinent by the auditors and recommendations affecting the financial statements, internal control, accounting, accounting systems, legality of actions, other instances of noncompliance with laws and regulations, and any other material matters. An agreed upon number of copies of the management letter will be provided to the Town, in addition to an electronic copy.
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
Within the required reports on internal controls and compliance, the auditor shall communicate any reportable conditions 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 organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. In addition, the following conditions shall be considered reportable:
• Material weaknesses
• Instances of noncompliance
• Irregularities and illegal acts (auditors shall be required to make an immediate, written report of all irregularities and illegal acts or implications of illegal acts of which they become aware to the Town Manager and the Finance Manager).
Non-reportable conditions by the auditors shall be reported in a separate letter to management, which shall be referred to in the reports on compliance and internal controls.
D. REPORTING TO THE TOWN MANAGER:
Auditors shall assure themselves that the Town of Hayden's Town Manager is informed by way of regularly scheduled meetings and/or written updates.
E. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS:
All working papers and reports must be retained at the auditor's expense, according to the appropriate statutory retention requirements, unless the firm is notified in writing by the Town of Hayden of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees:
• Town of Hayden
• Auditors of entities of which the Town of Hayden is a sub-recipient of grant funds.
In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review papers relating to matters on continuing accounting significance.
F. DESCRIPTION OF THE GOVERNMENT
1. BACKGROUND: The Town of Hayden serves a population of about 2150 residents. More information may be found on our official website www.haydencolorado.com
2. FISCAL YEAR: The Town of Hayden's fiscal year begins on January 1 and ends on December 31.
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
3. BUDGETARY BASIS OF ACCOUNTING:
The accounting policies of the Town of Hayden conform to accounting principles generally accepted in the United State of America as applicable to governments (US GFOA). The Town of Hayden was incorporated under the laws of the State of Colorado and operates under an elected Mayor-Council form of government. As required by generally accepted accounting principles, these financial statements present the Town of Hayden (the primary government) and its component units, if any. No additional separate governmental units, agencies, or nonprofit corporations are included in the financial statements of the Town, since none were discovered to fall within the oversight responsibility based upon the application of the following criteria: financial accountability, appointment of a voting majority of the organization's governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens, and fiscal dependency.
4. FUND STRUCTURE:
The Town reports two major governmental funds:
The general fund is the Town's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The enterprise fund is the Town’s water and waste water operating and capital expenditures for all financial resources of the enterprise and the related expenditures.
Additionally, the Town reports the following governmental types of funds:
The conservation trust fund, a special revenue fund, account for the lottery proceeds received from the state and the related allowed expenditures.
Hayden Center Fund, a fund connected to parks, recreation, and cultural arts.
Debt Service Fund, a fund that collects and pays for debt service for the Town.
Capital Improvement Fund, a fund that pays for major capital improvements for the Town. In 2023 this will include all capital projects including water and sewer.
Economic Development Fund, which funds the Town’s economic development efforts.
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
Service Fund, a fund that pays for major equipment purchases and repairs.
The Hayden Heritage Center, a component fund, accounts for the museum proceeds and all related expenses and capital expenditures.
5. COMPUTER SYSTEMS:
Hardware used by Town departments is standardized. Laptops and desktops are supported by networked printers and scanners. Software impacting financial records includes: Windows 2010 operating system) and Caselle Basic Cash Receipting, Utility Billing, Accounts Payable, General Ledger, Payroll.
IV. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION:
A. FINANCE DEPARTMENT AND CLERICAL ASSISTANCE:
The Town Manager and Finance Manager will be available during the audit to assist the firm in providing information, documentation and explanations.
B. WORK AREA, COMPUTER, TELEPHONES, PHOTOCOPYING AND FAX MACHINES:
The Town of Hayden will provide the auditor with reasonable workspace. The auditor will also be provided inquiry access to the financial management software, at least one telephone line, photocopying facilities and fax machines.
C. REPORT PREPARATION:
The Finance Manager will prepare or provide all statements, subsidiary ledgers, detailed schedules and backup documentation deemed necessary by the audit firm. The auditor shall provide all recommendations, revisions and suggestions for improvement to the Finance Manager. A report, including a draft auditor's report shall be delivered to the Town Manager by May 31 of each audit year.
The Town Manager and Finance Manager will complete their review of the draft report as expeditiously as possible. During that period, the auditor should be available for any meetings that may be necessary to discuss the audit reports. Once all issues for discussion are resolved, the final signed report will be completed and the final report approved the first Tuesday in June of the audit year.
IV. PROPOSAL REQUIREMENTS
A. GENERAL REQUIREMENTS
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
1. Submission of Technical Proposal and Cost Proposal: A technical proposal and cost proposal shall be submitted in a separate sealed envelope following the specifications outlined below. There shall be no cost or monetary values included in the technical proposal.
2. Both proposals should be sent together to the following address;
Town of Hayden Financial AUDIT RFP
Andrea Salazar, Finance Manger
Town of Hayden
PO Box 190
Hayden, CO 81639-0190
970-276-3741
Andrea.salazar@haydencolorado.org
B. TECHNICAL PROPOSAL
The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the Town of Hayden in conformity with the requirements of this request for proposals. As such, the substance of proposals will carry more weight than their form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm that will meet the request for proposals requirements.
The Technical Proposal should address all the points outlined in the request for proposals (excluding any cost information which should only be included in the cost proposal). The Proposal should be prepared to satisfy the requirement of the request for proposal. While additional data may be presented, the following items must be included, as they represent the criteria against which the proposal will be evaluated.
1. Independence
The firm should provide an affirmative statement that it is independent of the Town of Hayden as defined by applicable standards. The firm should provide an affirmative statement that it is independent of all of the entities included in this proposal. In addition, the firm shall give The Town of Hayden written notice of any professional relationships entered into during their period of engagement.
2. License to Practice in Colorado
An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in Colorado.
3. Firm Qualifications and Experience
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
The firm should state the size of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement is to be performed and the number and the nature of professional staff to be employed on the engagement on a full-time basis.
If the firm is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve, as the principle auditor, should be noted, if applicable.
The firm is required to submit a copy of the report on its most recent external quality control review, with a statement whether that quality control review included a review of specific government engagements.
The firm shall provide information on the results of any federal or state desk reviews or field review of its audits during the past three (3) years.
In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.
4. Partner, Supervisory and Staff Qualifications and Experience
Identify the principle supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement.
Audit personnel may be changed at the discretion of the firm, provided that replacements have substantially the same or better qualifications or experience.
5. Prior engagements with the Town of Hayden
List separately all engagements within the last five (5) years with the Town of Hayden, ranked on the basis of total staff hours and type of engagement (audit, management advisory services, etc). Indicate the scope of work, date, engagement partners, total hours, office location for specific engagement, and the name and telephone number of the principle contact.
6. Similar engagements with other Government Entities
List the most significant engagements performed in the last three (3) years that are similar to the engagement described in this request for proposal, based on the office that will be directly responsible for this project. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engaging partners, total hours, and the name and telephone number of the principal client contact.
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
7. Specific Audit Approach
The proposal shall include a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposal. In developing the work plan, reference should be made to such sources of information as Town of Hayden's budget and related materials, organizational chart, manual and programs, and financial and other management information systems.
Firms will be required to provide the following information on their audit approach:
a. Proposed segmentation of the engagement.
b. Level of staff and number of hours to be assigned to each proposed segment of the engagement.
c. Sample size and the extent to which statistical sampling is to be used in the engagement.
d. Type and extent of analytical procedure to be used in the engagement.
e. Approach to be taken to gain and document an understanding of the Town of Hayden's internal control structure.
f. Approach to be taken in determining laws and regulation that will be subject to audit test work.
g. Approach to be taken in drawing audit samples for purposes of tests of compliance.
8. Identification of Anticipated Potential Audit Problems
The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested for the Town of Hayden.
C. Cost Proposal
1. Summary of Professional Fees and Expenses
The cost proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.
The Town of Hayden will not be responsible for expenses incurred in preparing and submitting the technical proposal or sealed cost proposal. Such costs should not be included in the proposal.
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
The first page of the sealed cost proposal should include the following information:
a. Name of firm
b. Certification that the person signing the proposal is entitled to represent the firm empowered to submit the bid and authorized to sign a contract with the Town of Hayden.
c. A total all-inclusive maximum price for each engagement for the years 2021, 2022, 2023, 2024 and 2025.
d. Provide separate total “Not-to-Exceed” annual amounts for each year of the 2021 through 2025 audits. And, what additional cost per year if a single audit is required due to grants.
2. Rates by staff member
Include the rate, anticipated hours for each partner, specialist, supervisory and staff level expected to perform the necessary services. The second page of the proposal should include a schedule of professional fees and expenses.
3. Manner of payment
Payment will be made in full upon completion of the audit.
V. EVALUATION PROCEDURES
A. AUDIT COMMITTEE AND KEY STAFF
Proposals will be evaluated by the Town of Hayden Board of Trustees, the Town Manager and the Finance Manager.
B. REVIEW OF PROPOSALS
The Audit Committee will use a point formula during the review process to score proposals. Each member of the Audit Committee will first score each technical proposal by each criterion described below under EVALUATION CRITERIA. The full Audit Committee will then convene to review and discuss these evaluations and to combine the individual scores to arrive at a composite technical score for each firm. At this point, firms with an unacceptably low technical score will be eliminated from further consideration.
After the composite technical score for each firm has been established, the sealed cost proposal will be opened and additional points will be added to the technical score based on the cost proposal. The maximum score for price will be assigned to the firm offering the lowest all-inclusive maximum price. Appropriate fractional scores will be assigned to other firms.
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
The Town of Hayden reserves the right to retain all proposals submitted and use any idea in a proposal regardless of whether that proposal is selected.
C. EVALUATION CRITERIA
Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will have their proposal evaluated and scored for both technical qualifications and price.
1. Mandatory elements
a. The audit firm is independent and licensed to practice in Colorado
b. The firm has no conflict of interest with regard to any other work performed by the firm for the Town of Hayden
c. The firm adheres to the instructions in this request for proposal on preparing and submitting the proposal
d. The firm submits a copy of its last external quality control review report and the firm has a record of quality audit work.
2. Technical Quality: (Maximum Points - 60)
a. Expertise and Experience
1) The firm's past experience and performance on comparable government engagements.
2) The quality of the firm's professional personnel to be assigned to the engagement and the quality of the firm's management support personnel to be available for technical consultation.
3) Experience with similar computer systems.
b. Audit Approach
1) Adequacy of proposed staffing plan for various segments of the engagement
2) Adequacy of sampling techniques
3) Adequacy of analytical procedures
3. Price (Maximum points - 40)
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
COST WILL NOT BE THE PRIMARY FACTOR IN THE
SELECTION OF AN AUDIT FRIM
D. ORAL PRESENTATIONS
During the evaluation process, the Audit Committee may, at its discretion, request the eligible firms to make an oral presentation. Such presentation will provide firms with an opportunity to answer any questions the Audit Committee may have on a firm's proposal. Not all firms may be asked to make such oral presentations.
E. FINAL SELECTION
The Town of Hayden will select a firm based upon the recommendation of the Audit Committee.
It is anticipated that a firm will be selected on December 16, 2022. Following notification of the firm selected, it is expected that a contract will be executed between both parties by December 31, 2021.
F. RIGHT TO REJECT PROPOSALS
Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the Town of Hayden and the firm selected.
The Town of Hayden reserves the right to reject any or all proposals.
VI. TERMINATION OF CONTRACT
The Town may, by written notice to the successful Bidder, terminate the contract if the Bidder has been found to have failed to perform in a manner satisfactory to the Town’s specifications, including delivery as specified. The date of termination shall be stated in the notice. The Town shall be the sole judge of non-performance.
The Town may cancel the contract upon thirty (30) days written notice for reasons other than cause. This may include the Town's inability to continue with the contract due to non-appropriation or reduction of funding.
VII. WARRANTIES
The successful firm shall indemnify and save harmless the Town against any and all damages to property or injuries to or death to any person or persons, including property and employees or agents of the Town, and shall defend, indemnify and save harmless the Town from any and all claims, demands, suits, actions, or proceedings of any kind, or nature, including workmen's compensation claims, of or by any whomsoever, in any way resulting from or arising out of the operation in connection herewith, including operations of subcontractors and acts or omissions of employees or agents of the successful firm or his sub-contractors. The successful firm shall
178 West Jefferson Avenue·PO Box 190·Hayden, CO 81639-0190
970-276-3741·Fax 970-276-3644
www.haydencolorado.com
procure and maintain, at their own cost and expense, any additional kinds and amounts of insurance that, in their own judgment, may be necessary for his proper protection in the prosecution of the work.
The successful firm shall be required to have property, liability, and workers compensation insurance with minimum limits of $1,000,000.00 and to provide the Town with copies of the certificate of insurance upon request.
The successful firm will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin and will comply with the Americans with Disabilities Act. The successful firm shall adhere to acceptable affirmative action guidelines in selecting employees and shall ensure that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination, rates of pay or other forms or compensation; and selection for training, including apprenticeship.
Pursuant to Section 8-17.5-102(1), C.R.S., the auditing firm will certify that, as of the date of its Proposal, it does not knowingly employ or contract with an illegal alien and it has participated or attempted to participate in the Basic Pilot Employment Verification Program (as such term is defined in Section 8-17.5-101(1), C.R.S.) in order to verify that it does not employ any illegal aliens
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