1-REQUEST FOR PROPOSALS - Independent Annual Financial Audit Services (FINAL).pdf

www.firstclasstownshippa.org

REQUEST FOR PROPOSALS (RFP)

Independent Annual Financial Audit Services

Pennsylvania State Association of Township Commissioners (PSATC) http://www.firstclasstownshippa.org/

1. NOTICE TO PROPOSERS

The Pennsylvania State Association of Township Commissioners (PSATC) invites qualified Certified

Public Accounting (CPA) firms to submit proposals to provide independent annual financial audit services for the Association.

The selected firm shall perform an annual audit of PSATC's financial statements and provide related services as described herein. Proposals will be accepted through the PennBid Electronic Procurement

Program until the date and time specified in the PennBid advertisement.

PSATC reserves the right to reject any or all proposals, waive informalities, request additional information, and negotiate with the proposer deemed to be in the best interest of the Association.

2. INTRODUCTION

PSATC is a Pennsylvania-based professional association serving township commissioners and local government officials throughout the Commonwealth. The Association seeks to engage an independent CPA firm with extensive experience auditing nonprofit organizations, associations, and governmental entities in Pennsylvania.

The selected firm will conduct annual financial audits and provide recommendations regarding internal controls, accounting practices, regulatory compliance, and financial reporting.

3. SCOPE OF SERVICES

The selected CPA firm shall provide, at a minimum, the following services:

Annual Financial Statement Audit

Conduct an independent audit of PSATC's annual financial statements in accordance with:

• Generally Accepted Auditing Standards (GAAS)

• Applicable standards issued by the American Institute of Certified Public Accountants (AICPA)

• Applicable accounting standards for nonprofit organizations

• Any applicable federal, state, and local requirements

Audit Deliverables

The selected firm shall provide:

• Independent Auditor's Report

• Audited Financial Statements

• Management Letter identifying internal control recommendations and operational improvements

• Required communications to governance in accordance with professional auditing standards

• Presentation of audit findings to the PSATC Board of Directors and/or Audit Committee if requested

Additional Services

As requested, the firm may provide:

• Consultation regarding accounting standards updates

• Guidance regarding internal controls and financial reporting

• Assistance with implementation of best practices for nonprofit financial management

• Tax-related advisory services as applicable

4. TERM OF CONTRACT

The initial contract term shall be for three (3) years, covering the fiscal years ending 2026, 2027, and

2028.

PSATC reserves the option to renew the contract for up to two (2) additional one-year periods by mutual agreement.

5. MINIMUM QUALIFICATIONS OF PROPOSERS

To be considered, the proposing firm must meet the following minimum qualifications.

A. Professional Licensing

The firm shall:

• Be licensed to practice public accounting in the Commonwealth of Pennsylvania.

• Have all personnel assigned to the engagement properly licensed and in good standing.

• Employ engagement partners and managers with significant audit experience.

B. Pennsylvania Experience

The firm must demonstrate substantial experience conducting audits within Pennsylvania, including:

• Pennsylvania nonprofit organizations.

• Pennsylvania municipal governments, authorities, councils, commissions, or associations.

• Statewide or regional membership organizations.

• Organizations subject to Pennsylvania regulatory requirements.

Preference will be given to firms with direct experience serving organizations affiliated with local government, municipal associations, or public-sector entities.

C. Technical Expertise

The firm shall demonstrate experience with:

• Nonprofit accounting and reporting requirements.

• Fund accounting.

• Internal control evaluation.

• Financial statement preparation and presentation.

• Governance reporting.

• Emerging accounting and auditing standards.

D. Peer Review

The firm must:

• Have undergone an external peer review.

• Provide a copy of the most recent peer review report.

• Maintain quality control standards acceptable to the AICPA and Pennsylvania licensing authorities.

E. Independence

The firm must be independent with respect to PSATC as required by professional auditing standards.

6. DESIRED QUALIFICATIONS AND

EVALUATION FACTORS

PSATC seeks a firm demonstrating excellence in the following areas:

Experience in Pennsylvania

• Number of years providing audit services in Pennsylvania.

• Experience working with Pennsylvania nonprofit organizations.

• Experience working with municipal associations and membership organizations.

• Familiarity with Pennsylvania governmental and regulatory environments.

Technical Skill

• Qualifications of audit partner and engagement team.

• Specialized nonprofit expertise.

• Continuing professional education of assigned personnel.

• Ability to identify opportunities for process improvement and risk mitigation.

Coverage and Capacity

• Adequate staffing levels and resources.

• Availability during audit and reporting periods.

• Responsiveness to management and board inquiries.

• Capacity to maintain continuity throughout the contract term.

Client Service

• Communication practices.

• Accessibility of engagement leadership.

• History of timely completion of audits.

• Reputation for professionalism and responsiveness.

7. PROPOSAL CONTENT REQUIREMENTS

Proposals shall include the following information:

Firm Overview

Provide:

• Legal name of firm.

• Headquarters and Pennsylvania office locations.

• Number of years in business.

• Description of services provided.

• Organizational structure.

Qualifications and Experience

Provide:

• Description of experience auditing nonprofit organizations.

• Description of Pennsylvania clients relevant to this engagement.

• Experience with membership associations and local government-related organizations.

• Description of specialized expertise.

Engagement Team

Provide:

• Names and resumes of key personnel.

• Identification of engagement partner.

• Years of experience of each team member.

• Professional certifications and licenses.

Pennsylvania Coverage

Describe:

• Pennsylvania office presence.

• Geographic service coverage throughout the Commonwealth.

• Resources available to support the engagement.

• Backup staffing plans.

References

Provide at least three (3) references for comparable clients, including:

• Organization name

• Contact person

• Title

• Telephone number

• Email address

• Services provided and years served

Peer Review

Include:

• Most recent peer review report.

• Any findings or corrective actions, if applicable.

Litigation and Regulatory Matters

Disclose:

• Any litigation involving the firm within the last five years relevant to auditing services.

• Any disciplinary actions by state licensing boards, AICPA, or other regulatory agencies.

Cost Proposal

Provide:

• Fixed annual audit fee.

• Hourly rates for additional services.

• Any anticipated out-of-pocket expenses.

• Multi-year pricing structure.

Provide a list of Pennsylvania nonprofit, association, municipal, authority, or local government-related audit clients served during the past five years. Include organization name, years of service, engagement partner, approximate annual revenues audited, and contact information for reference purposes.

8. EVALUATION OF PROPOSALS

Proposals may be evaluated using criteria including, but not limited to:

Criteria Weight

Pennsylvania nonprofit and association audit experience 30%

Qualifications and expertise of assigned personnel 25%

Technical approach and understanding of services 20%

Capacity, responsiveness, and client support 15%

Cost proposal 10%

PSATC reserves the right to conduct interviews with selected firms before making an award.

9. SCHEDULE

The anticipated procurement schedule is as follows. These dates are subject to change.

Milestone Date

RFP Issued 9/24/2026

Questions Due 10/1/2026

Responses Posted 10/8/2026

Proposal Submission Deadline 10/15/2026

Interviews (if required) 10/22/2026

Selection Recommendation 10/29/2026

Contract Award 11/5/2026

PSATC reserves the right to modify this schedule as necessary.

10. INSURANCE REQUIREMENTS

The selected firm shall maintain:

• Professional Liability (Errors and Omissions): Minimum $1,000,000 per occurrence.

• Commercial General Liability: Minimum $1,000,000 per occurrence.

• Workers' Compensation insurance as required by Pennsylvania law.

• Automobile Liability insurance, if applicable.

Certificates of insurance shall be provided upon request.

11. RIGHT TO REJECT

PSATC reserves the right to:

• Reject any or all proposals.

• Waive minor irregularities.

• Request clarifications or additional information.

• Negotiate with one or more proposers.

• Cancel the solicitation if deemed in the Association's best interest.

12. INSTRUCTIONS FOR SUBMISSION

All proposals shall be submitted electronically through the PennBid procurement system.

Questions regarding this RFP shall be submitted exclusively through PennBid. Verbal inquiries will not be binding.

Late submissions will not be considered.

Contact Information

Pennsylvania State Association of Township Commissioners (PSATC)

Todd Miller

President

Email: Info@firstclasstownshippa.org