RFP-2022-258-DFA-IC, "Audit Services" 1

City of Albuquerque

Request for Proposals

Solicitation Number: RFP-2022-258-DFA-IC

Audit Services January 27, 2022

Deadline for Receipt of Proposals: February 28, 2022: at 4:00 p.m. (Mountain Time)

The City eProcurement System will not allow Proposals to be submitted after this date and time.

City of Albuquerque Department of Finance and Administrative Services

Purchasing Division

V2021.9.23JLB

RFP-2022-258-DFA-IC, "Audit Services" 2

TABLE OF CONTENTS

Page

Introduction 3

Part 1 Instructions to Offerors 4

Part 2 Proposal Format 14

Part 3 Scope of Services 16

Part 4 Evaluation of Proposals 17

Part 5 Preferences 19

Part 6 Draft Agreement 21

RFP-2022-258-DFA-IC, "Audit Services" 3

INTRODUCTION

The City of Albuquerque (City) is requesting responses for the services outlined in this

Request for Proposals (RFP) from qualified Certified Public Accounting firms to audit and express an opinion on the City’s financial statements (Comprehensive Annual Financial

Report- “ ACFR”) for the fiscal year ending June 30, 2021 with the option of auditing its financial statements for an additional two years. These audits are to be performed in accordance with the provisions contained in this Request for Proposals.

To meet the requirements of this RFP, the audit shall be performed in accordance with the prevailing auditing standards generally accepted in the United States of America, the prevailing standards for financial audits set forth in the U.S. General Accounting Office’s

Government Auditing Standards, and the prevailing Single Audit requirements of the U.S.

Office of Management and Budget (OMB) 2 CFR Part 200 Subpart F, and the provisions of 2.2.2 NMAC Requirements for Contracting and Conducting Audits of Agencies (New

Mexico State Auditor Rule).

The City was founded in 1706, chartered as a town in 1885, and organized under territorial law as a city in 1891. The City became a charter city in 1917, and the voters approved a home rule amendment to the charter in 1971. In 1974, the electorate voted to establish a mayor-council form of government; the City Council consists of nine council members elected from districts.

The City has an estimated population of 559,374as of 2020 and ranks 33rd in population of the nation’s cities and is the largest city in New Mexico with roughly one-fourth of the state’s population. The City’s fiscal year begins on July 1 and ends on June 30, with an annual operating budget of approximately 1 billion dollars. The City is organized into twenty-two different departments and has a bi-weekly payroll of approximately 15 million dollars, with 5900 employees on average. The City’s accounting and grant management functions are managed by department fiscal staff. The City’s financial, grant reporting, payroll processing, vendor payments, and billing are centralized in the Department of

Finance and Administrative Services (DFA) Accounting Division.

For fiscal year 2020, the City of Albuquerque Foundation will become a component unit of the City for financial reporting purposes, and will be presented in the City’s financial statements.

RFP-2022-258-DFA-IC, "Audit Services" 4

PART 1

INSTRUCTIONS TO OFFERORS

1.1 RFP Number and Title: RFP-2022-258-DFA-IC, "Audit Services"

1.2 Proposal Due Date: February 28, 2022 - NLT 4:00 PM (Local Time)

The time and date Proposals are due shall be strictly observed.

1.3 Purchasing Division: This Request for Proposals (“RFP”) is issued on behalf of the City of Albuquerque by its Purchasing Division, which is the sole point of contact during the entire procurement process.

1.4 Authority: Chapter 5, Article 5 of the Revised Ordinances of the City of

Albuquerque, 1994, (“Public Purchases Ordinance”). The City Council, pursuant to Article

1 of the Charter of the City of Albuquerque and Article X, Section 6 of the Constitution of

New Mexico, has enacted this Public Purchases Ordinance as authorized by such provisions and for the purpose of providing maximum local self-government. To that end, it is intended that this Public Purchases Ordinance shall govern all purchasing transactions of the City and shall serve to exempt the City from all provisions of the New

Mexico Procurement Code, as provided in Section 13-1-98K, NMSA 1978.

1.5 Acceptance of Proposal: Acceptance of Proposal is contingent upon Offeror's certification and agreement by submittal of its Proposal, to comply and act in accordance with all provisions of the following:

1.5.1 City Public Purchases Ordinance

1.5.2 City Purchasing Rules and Regulations: These Rules and Regulations

(“Regulations”) are written to clarify and implement the provisions of the Public

Purchases Ordinance. These Regulations establish policies, procedures, and guidelines relating to the procurement, management, control, and disposal of goods, services, and construction, as applicable, under the authority of the

Ordinance.

1.5.3 Civil Rights Compliance: Acceptance of Proposal is contingent upon the

Offeror's certification and agreement by submittal of its Proposal, to comply and act in accordance with all provisions of the Albuquerque Human Rights Ordinance, the New Mexico Human Rights Act, Title VII of the U.S. Civil Rights Act of 1964, as amended, and all federal statutes and executive orders, New Mexico statutes and City of Albuquerque ordinances and resolutions relating to the enforcement of civil rights and affirmative action. Questions regarding civil rights or affirmative action compliance requirements should be directed to the City of Albuquerque

Human Rights Office.

1.5.4 Americans with Disabilities Act Compliance: The Offeror certifies and agrees, by submittal of its Proposal, to comply and act in accordance with all applicable provisions of the Americans With Disabilities Act of 1990 and federal regulations promulgated thereunder.

RFP-2022-258-DFA-IC, "Audit Services" 5

1.5.5 Insurance and Bonding Compliance: Acceptance of Proposal is contingent upon Offeror's ability to comply with the insurance requirements as stated herein. Please include a certificate or statement of compliance in your

Proposal and bonds as required.

1.5.6 Ethics:

1.5.6.1 Fair Dealing. The Offeror warrants that its Proposal is submitted and entered into without collusion on the part of the Offeror with any person or firm, without fraud and in good faith. Offeror also warrants that no gratuities, in the form of entertainment, gifts or otherwise, were, or will be offered or given by the Offeror, or any agent or representative of the Offeror to any officer or employee of the City with a view toward securing a recommendation of award or subsequent contract or for securing more favorable treatment with respect to making a recommendation of award.

1.5.6.2 Conflict of Interest. The Offeror warrants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under the contract resulting from this RFP. The Offeror also warrants that, to the best of its knowledge, no officer, agent or employee of the City who shall participate in any decision relating to this RFP and the resulting contract, currently has, or will have in the future, a personal or pecuniary interest in the Offeror’s business.

1.5.7 Participation/Offeror Preparation: The Offeror may not use the consultation or assistance of any person, firm company who has participated in whole or in part in the writing of these specifications or the Scope of Services, for the preparation of its Proposal or in the management of its business if awarded the contract resulting from this RFP.

1.5.8 Debarment or Ineligibility Compliance: By submitting its Proposal in response to this RFP, the Offeror certifies that (i) it has not been debarred or otherwise found ineligible to receive funds by any agency of the federal government, the State of New Mexico, any local public body of the State, or any state of the United States; and (ii) should any notice of debarment, suspension, ineligibility or exclusion be received by the Offeror, the Offeror will notify the City immediately.

Any Proposal received from an Offeror that is, at the time of submitting its Proposal or prior to receipt of award of a contract, debarred by or otherwise ineligible to receive funds from any agency of the federal government, the State of New

Mexico, any local public body of the State, or any state of the United States, shall be rejected.

Upon receipt of notice of debarment of an Offeror awarded a contract as a result of this RFP (“Contractor”), or other ineligibility of the Contractor to receive funds

RFP-2022-258-DFA-IC, "Audit Services" 6 from any agency of the federal government, the State of New Mexico, any local public body of the State, or any state of the United States, the City shall have the right to cancel the contract with the Contractor resulting from this RFP for cause in accordance with the terms of said contract.

1.5.9 Goods Produced Under Decent Working Conditions: It is the policy of the City not to purchase, lease, or rent goods for use or for resale at City owned enterprises that were produced under sweatshop conditions. The Offeror certifies, by submittal of its Proposal in response to this solicitation, that the goods offered to the City were produced under decent working conditions. The City defines

“under decent working conditions” as production in a factory in which child labor and forced labor are not employed; in which adequate wages and benefits are paid to workers; in which workers are not required to work more than 48 hours per week

(or less if a shorter workweek applies); in which employees are free from physical, sexual or verbal harassment; and in which employees can speak freely about working conditions and can participate in and form unions. [Council Bill No. M-8, Enactment No. 9-1998]

1.5.10 Graffiti Free: When required, the Contractor will be required to furnish equipment, facilities, or other items required to complete these services, that are graffiti-free. Failure of Contractor to comply with this requirement may result in cancellation of the contract resulting from this RFP.

1.6 City Contact: The sole point of contact for this RFP is the City of Albuquerque

Purchasing Division. Questions regarding this RFP should be directed to the following

Purchasing representative unless otherwise specified in the solicitation. Offerors who fail to abide by this instruction may be deemed nonresponsive.

• Claire Gonzales, Senior Buyer, Department of Finance and Administrative

Services, Purchasing Division

• Phone: (505) 768-3329 or E-Mail: cdgonzales@cabq.gov

• Post Office Box 1293, Albuquerque, New Mexico 87103

1.7 Contract Management: The contract resulting from this RFP will be managed by the Finance and Administrative Services Department, Accounting Division.

1.8 Clarification: Any explanation desired by an Offeror regarding the meaning or interpretation of this RFP must be requested in writing not less than ten (10) working days prior to the deadline for the receipt of Proposals to allow sufficient time for a reply to reach all Offerors before the submission of their Proposals. No extension of time will be granted based on submission of inquiries subsequent to the required date nor will such inquiries be answered. All inquiries must be directed to the Purchasing Division as stated herein and must be submitted through the City’s eProcurement system Bonfire. The City will not respond to questions that are submitted by any other means than electronically through the City’s eProcurement system. Oral explanations or instructions given before the award of the contract or at any time will not be binding. Purchasing shall mailto:cdgonzales@cabq.gov

RFP-2022-258-DFA-IC, "Audit Services" 7 prepare answers to questions in the form of Addenda to this RFP and shall post all such

Addenda to the online eProcurement System.

1. 9 Submission of Proposals. The Offeror’s sealed Proposal must be submitted electronically through the eProcurement system pursuant to the following requirements:

1.9.1 Electronic Copy. Submit your complete Proposal including all forms, attachments, exhibits, Technical Proposal, Cost Proposal, etc. using the eProcurement

System at https://cabq.bonfirehub.com/portal/?tab=openOpportunities. Please allow a minimum of two (2) business days to submit your proposal. If you do not have a username and password, please register as this is the only method to submit electronically on the

Bonfire portal. Please make sure to register on the system in order to receive notices and submit a response to a solicitation. For assistance, please contact support@gobonfire.com. Failure to submit your proposal electronically through the

City’s eProcurement system shall result in your proposal being deemed nonresponsive.

1.9.2 Format. Each file uploaded to the eProcurement System shall be in Optical

Character Recognition (OCR) searchable PDF format unless otherwise indicated. Do not encrypt files and do not password protect the documents submitted.

1.9.3 ALL PROPOSALS MUST BE RECEIVED BY THE CITY PURCHASING

DIVISION AS SPECIFIED HEREIN. FAILURE TO COMPLY WITH THE SUBMISSION

REQUIREMENTS SHALL BE CAUSE FOR THE CITY TO DEEM YOUR PROPOSAL

NONRESPONSIVE.

1.9.4 No other methods of Proposal delivery. Neither telephone, facsimile, nor telegraphic Proposals shall be accepted.

1.9.5 Modification. Proposals may be modified or withdrawn only by written notice, provided such notice is received prior to the Proposal Due Date.

1.9.6 Receipt of Proposals. The only acceptable evidence to establish the time of receipt of Proposals by City Purchasing Office is the time-date stamp of the

EProcurement System.

1.9.7 Acknowledgment of Addenda to the Request for Proposals. Receipt of

Addenda to this RFP by an Offeror must be acknowledged in the City’s eProcurement system. Failure to acknowledge an Addendum may result in your response being deemed non-responsive.

1.10 Modifications to Scope of Services: In the event that sufficient funds do not become available to complete each task in the Scope of Services, the Scope of Services may be amended, based upon the cost breakdown required in the Cost Proposal.

1.11 Draft Agreement: A copy of the Draft Agreement to be entered into is included in the RFP. The Offeror certifies that it accepts the terms and conditions of the Draft

Agreement, or has noted exceptions in its response. The City’s receipt of exceptions in a response is not an acceptance of any requested changes to the Draft Agreement. The https://cabq.bonfirehub.com/portal/?tab=openOpportunities http://www.cabq.gov/vendor/email-notification mailto:support@gobonfire.com

RFP-2022-258-DFA-IC, "Audit Services" 8

Draft Agreement may differ from the final Agreement.

1.12 Contract Term: The contract resulting from this solicitation is anticipated to have a term of one (1) year with two (2) possible extensions of one (1) year terms each.

1.13 Evaluation Period: The City reserves the right to analyze, examine and interpret any Proposal for a period of ninety (90) days after the hour and date specified for the receipt of Proposals. The City reserves the right to extend the evaluation period if it feels, in its sole discretion, such an extension would be in the best interest of the City.

1.14 Evaluation Assistance: The City, in evaluating Proposals, reserves the right to use any assistance deemed advisable, including City contractors and consultants.

1.15 Rejection and Waiver: The City reserves the right to reject any or all Proposals and to waive informalities and minor irregularities in Proposals received.

1.16 Award of Contract:

1.16.1 When Award Occurs: Award of contract occurs when a Purchase Order is issued or other evidence of acceptance by the City is provided to the Offeror. A

Recommendation of Award does not constitute award of contract.

1.16.2 Award: If a contract is awarded, it shall be awarded to the responsive and responsible Offeror whose Proposal conforming to this RFP will be most advantageous to the City as set forth in the Evaluation Criteria.

1.17 Cancellation: This RFP may be canceled for any reasons and any and all

Proposals may be rejected in whole or in part when it is in the best interests of the City.

1.18 Negotiations: Negotiations may be conducted with the Offeror(s) recommended for award of contract.

1.19 City-Furnished Property: No material, labor, or facilities will be furnished by the

City unless otherwise provided for in this RFP.

1.20 Proprietary Data:

1.20.1 The file and any documents relating to this RFP, including the Proposals submitted by Offerors, shall be open to public inspection after the recommendation of award of a contract has been approved by the Mayor, or his designee. An Offeror may designate material as Trade Secrets, Proprietary Data, and/or other Confidential Data by clearly marking that material as “Trade Secret”, “Proprietary Data”, or “Confidential Data” within the Proposal submitted (uploaded) in response to this RFP. Pricing and makes and models or catalog numbers of items offered, delivery terms, and terms of payment shall not be so designated. Further, any Proposal in which a majority of pages are designated as Trade Secret, Proprietary Data, or Confidential Data may be deemed nonresponsive.

1.20.2 The City will endeavor to restrict distribution of material designated as

“Trade Secret”, “Proprietary Data”, or “Confidential Data” and provided separately to only those individuals involved in the review and analysis of the Proposals. However, Offerors

RFP-2022-258-DFA-IC, "Audit Services" 9 are advised that, if a request for inspection of records under the New Mexico Inspection of Public Records Act (Sections 14-2-1 et seq, NMSA 1978) (“Act”) is received for such materials, and they are not exempt under the Act, the City is required to disclose those records. The City shall, to the extent possible under the Act, provide the Offeror with notice before any disclosure to allow the Offeror an opportunity, within the Act’s fifteen

(15) day deadline, to initiate legal action (such as an injunction or other judicial remedy) to prevent the release of Trade Secret, Proprietary Data, or Confidential Data, should the

Offeror wish to do so. Notwithstanding anything to the contrary herein, the City shall not be responsible to the Offeror for any disclosure of records required by the Act or an order of a court or other tribunal with jurisdiction over the City.

1.21 Preferences: Preferences may be available under the City of Albuquerque Public

Purchases Ordinance for this procurement. See Part 5 of this RFP for additional information. NO PREFERENCES ARE AVAILABLE FOR ANY SOLICITATION FOR

WHICH ALL OR A PART OF THE FUNDS USED ARE FROM FEDERAL GRANT

SOURCES.

1.22 Request for Proposals Protest Process:

1.22.1 When: If the protest concerns the specifications for a competitive solicitation or other matters pertaining to the solicitation documents, it must be received by the Chief Procurement Officer no later than 5:00 p.m. of the tenth (10th) business day prior to the deadline for the receipt of Proposals.

1.22.2 Recommendation of Award: If the protest concerns other matters relating to this solicitation, the protest must be filed with the Chief Procurement Officer no later than 5:00 p.m. of the tenth (10th) business day after the receipt of notice of the Recommendation of Award.

1.22.3 Timely Protests: Protests must be received by the Chief Procurement

Officer prior to the appropriate deadline as set out herein, or they will be rejected.

The Chief Procurement Officer may waive the deadline for good cause, including a delay caused by the fault of the City. Late delivery by the U.S. Postal Service or other carrier shall not be considered good cause.

1.22.4 How to File: Any Offeror who is aggrieved in connection with a competitive solicitation or recommendation of award of a contract may protest to the City Chief

Procurement Officer. The protest shall be addressed to the Chief Procurement

Officer, must be submitted in written form and must be legible. Protests may be electronically delivered via email, mailed, or hand-delivered. Facsimile, telephonic, telegraphic or any other type of electronic protests will not be accepted.

1.22.5 Required Information: The protest shall contain at a minimum the following:

1.22.5.1 The name and address of the protesting party;

1.22.5.2 The number of the competitive solicitation;

RFP-2022-258-DFA-IC, "Audit Services" 10

1.22.5.3 A clear statement of the reason(s) for the protest detailing the provisions believed to have been violated;

1.22.5.4 Details concerning the facts, which support the protest;

1.22.5.5 Attachments of any written evidence available to substantiate the claims of the protest; and

1.22.5.6 A statement specifying the ruling requested.

1.22.6 Delivery of Protests:

1.22.6.1 Mail or Hand Delivery: Protests may be mailed or hand-delivered in an envelope marked “PROTEST” with the solicitation number. Protests which are mailed or hand-delivered should be addressed or delivered as follows:

By Mail:

Chief Procurement Officer City of Albuquerque Purchasing Division P.O. Box 1293 Albuquerque, NM 87103 RFP Number

PROTEST

Hand Delivery:

Chief Procurement Officer City of Albuquerque Purchasing Division One Civic Plaza, 7th Floor, Room 7012 Albuquerque, NM 87103 RFP Number

PROTEST

1.22.6.1 Electronic Mail Delivery: Protests may be emailed to:

Jennifer Bradley, Chief Procurement Officer jlbradley@cabq.gov

The message should clearly indicate “PROTEST” and the solicitation number in the subject line.

1.22.7 Protest Response by Chief Procurement Officer: The Chief

Procurement Officer will, after evaluation of a protest, issue a response. Only the issues outlined in the written protest will be considered by the Chief Procurement

Officer.

1.22.8 Protest Hearing: If a hearing is requested, the request must be included in the protest and received within the time limit. Only the issues outlined in the protest will be considered by the Chief Procurement Officer, or may be raised at a mailto:jlbradley@cabq.gov

RFP-2022-258-DFA-IC, "Audit Services" 11 protest hearing. The granting of a hearing shall be at the discretion of the Chief

Procurement Officer following review of the request.

1.23 Insurance:

1.23.1 General Conditions: The City will require the successful Offeror, referred to as the Contractor, to procure and maintain at its expense during the term of the contract resulting from the RFP, insurance in the kinds and amounts hereinafter provided with insurance companies authorized to do business in the State of New

Mexico, covering all operations of the Contractor under the contract. Upon execution of the contract and on the renewal of all coverages, the Contractor shall furnish to the City a certificate or certificates in form satisfactory to the City as well as the rider or endorsement showing that it has complied with these insurance requirements. All certificates of insurance shall provide that thirty (30) days written notice be given to the Risk Manager, Department of Finance and Administrative

Services, City of Albuquerque, P.O. Box 470, Albuquerque, New Mexico, 87103, before a policy is canceled, materially changed, or not renewed. Various types of required insurance may be written in one or more policies. With respect to all coverages required other than professional liability or workers’ compensation, the

City shall be named an additional insured. All coverages afforded shall be primary with respect to operations provided.

1.23.2 Approval of Insurance: Even though the Contractor may have been given notice to proceed, it shall not begin any work under the contract resulting from this

RFP until the required insurance has been obtained and the proper certificates (or policies) are filed with the City. Neither approval nor failure to disapprove certificates, policies, or the insurance by the City shall relieve the Contractor of full responsibility to maintain the required insurance in full force and effect. If part of the contract is sublet, the Contractor shall include any or all subcontractors in its insurance policies, or require the subcontractor to secure insurance to protect itself against all hazards enumerated herein, which are not covered by the Contractor's insurance policies.

1.23.3 Coverage Required: The kinds and amounts of insurance required are as follows:

1.23.3.1 Commercial General Liability Insurance. A commercial general liability insurance policy with combined limits of liability for bodily injury or property damage as follows:

$2,000,000 Per Occurrence

$2,000,000 Policy Aggregate

$1,000,000 Products Liability/Completed Operations

$1,000,000 Personal and Advertising Injury

RFP-2022-258-DFA-IC, "Audit Services" 12

$ 50,000 Fire Legal

$ 5,000 Medical Payments

Said policy of insurance must include coverage for all operations performed for the City by the Contractor and contractual liability coverage shall specifically insure the hold harmless provisions of the contract resulting from this RFP.

1.23.3.2 Automobile Liability Insurance. A comprehensive automobile liability insurance policy with liability limits in amounts not less than

$1,000,000 combined single limit of liability for bodily injury, including death, and property damage in any one occurrence. The policy must include coverage for the use of all owned, non-owned, hired automobiles, vehicles and other equipment both on and off work.

1.23.3.3 Workers' Compensation Insurance. Workers' compensation insurance policy for the Contractor's employees, in accordance with the provisions of the Workers' Compensation Act of the State of New Mexico, (the "Act"). If the Contractor employs fewer than three employees and has determined that it is not subject to the Act, it will certify, in a signed statement, that it is not subject to the Act. The Contractor will notify the City and comply with the Act should it employ three or more persons during the term of the contract resulting from this RFP.

1.23.3.4 Professional Liability (Errors and Omissions) Insurance.

Professional liability (errors and omissions) insurance in an amount not less than $1,000,000 combined single limit of liability per occurrence with a general aggregate of $1,000,000.

1.23.4 Increased Limits: During the life of the contract the City may require the

Contractor to increase the maximum limits of any insurance required herein. In the event that the Contractor is so required to increase the limits of such insurance, an appropriate adjustment in the contract amount will be made.

1.23.5 Additional Insurance: The City may, as a condition of award of a contract, require a successful Offeror to carry additional types of insurance. The type and limit of additional insurance is dependent upon the type of services provided via the contract by the successful Offeror.

1.24 Pay Equity Documentation. All proposals shall include a Pay Equity Reporting

Form or a valid Certificate which can be accessed at https://www.cabq.gov/gender-pay-equity-initiative or in the Solicitation Instructions. Offerors who believe they are exempt because they are an out-of-state contractor that have no facilities and no employees working in New Mexico are not required to report data, but must still submit a Pay Equity

Reporting Form with the box verifying their exempt status checked. Any Proposal that https://www.cabq.gov/gender-pay-equity-initiative https://www.cabq.gov/gender-pay-equity-initiative

RFP-2022-258-DFA-IC, "Audit Services" 13 does not include a Pay Equity Reporting Form or Certificate shall be deemed nonresponsive, as stated in the Public Purchases Ordinance, 5-5-31 (A). The gender pay equity task force will automatically issue pay equity certificates to qualifying vendors within two business days of submitting the pay equity reporting form. To ensure you have your form or certificate before the deadline for solicitation close, please access the link at least three (3) business days prior to the solicitation deadline. Please visit the website or contact the gender pay equity task force with questions: OEI@CABQ.GOV mailto:OEI@CABQ.GOV

RFP-2022-258-DFA-IC, "Audit Services" 14

PART 2

PROPOSAL FORMAT

2.1 Technical Proposal Format, Section One

2.1.1 Offeror Identification: State name and address of your organization or office and nature of organization (individual, partnership or corporation, private or public, profit or non-profit). Subcontractors, if any, must be identified in a similar manner. Include name, email address and telephone number of person(s) in your organization authorized to execute the Draft Agreement. Submit a statement of compliance with all laws stated herein. Submit a statement of agreement of the terms and conditions of the Draft Agreement; state exceptions. Show receipt of

Addenda if applicable. Provide a statement or show ability to carry the insurance specified.

2.1.2 Experience:

2.1.2.1 Current Experience. State relevant experience of the company and person(s) who will be actively engaged in the proposed services, including experience of subcontractors. Submit resumes for the individuals who will be performing the services for the City.

2.1.2.2 Past Experience. Describe a minimum of three (3) contracts for services of similar scope and size, which services are now complete;

state for whom the services were performed, year completed, and a letter of reference for each regarding the services. References must be for services performed in the past three to five (3 to 5) years. DO NOT use

City employees or any City elected officials as a reference. The City will not contact and will not assign any evaluation points for references from City employees or elected officials. State relevant experience with other municipalities or government entities.

2.1.3 Proposed Approach to Tasks: Discuss fully your proposed approach to each of the tasks described in Part 3, Scope of Services. Use charts to illustrate the number of hours dedicated to each task and who will be performing each task

[individual(s)/firm(s)]. Reference Appendix A, attached hereto, without stating the price structure.

2.1.4 Management Summary: Describe individual staff and subcontractor's responsibilities with lines of authority and interface with the City of Albuquerque staff. Describe resources to be drawn from in order to complete tasks.

2.2 Cost Proposal Format, Section Two

2.2.1 Total Cost: Submit your Cost Proposal (Appendix A) separately from your Technical Proposal (upload Appendix A in the City’s eProcurement system).

Failure to submit your cost separately from your Technical Proposal shall

RFP-2022-258-DFA-IC, "Audit Services" 15 result in your proposal being deemed non-responsive. The cost proposal should include the information highlighted in sections 2.2.2 through 2.2.7 in a spreadsheet format.

2.2.2 Offeror Statement of Compliance: All costs to be incurred and billed to the City shall be described by the Offeror for each item, to allow for a clear evaluation and comparison, relative to other offers received. The Offeror should understand that the City will not pay any amount not included, or identified separately, such as insurance or taxes of any kind; that liability for such items, remains with the Offeror, and the proposed price quoted must include any such costs (including all applicable taxes).

The Cost Proposal should contain at least the following information:

• The cost for the entire project broken down by the activities or steps shown on the project schedule.

• Estimated periodic billing to the City based on the cost of the deliverable items.

• Cost or pricing details should be shown by task. This might include, but is not limited to:

o Hours by category, hourly rates, and total labor broken out by professional and other labor. Subcontract costs if applicable, and additional consulting beyond the scope of the described tasks (if requested).

2.2.3 Detailed costs. Offerors shall show detailed costs by task and number of hours dedicated to each task as listed in the specifications. Please complete the Cost Proposal sheet provided in the e-Procurement System Bonfire. Include the total number of hours and total cost for the basic audit for each task as listed below:

• Financial Statement Audit

• Federal Single Audit

• Special Engagements/Audits

• Other Nonaudit Services

• Other Please provide the detailed costs in the following format for the City:

Summary Cost Proposal Hours and Cost

Report Approximate Hours/Year FY2021 FY2022 FY2023

Total Cost

Financial Statement Audit

Single Audit

Special Audits/Engagements (provide detail in section 2.2.3)

Gross receipts tax

Total Cost

2.2.4 Special Engagements/Audits. Include the estimated number of hours for each

RFP-2022-258-DFA-IC, "Audit Services" 16 engagement. In addition include a separate total cost for each of the three years, for the special engagements listed below. The Offeror should include as part of the bid hours associated with auditing Revenue Bond Debt Service Coverage schedules.

• Separate Independent Auditors’ Report- OPEB Trust

• Separate Independent Auditors’ Report- Airport Fund

• Separate Independent Auditors’ Report – The City of Albuquerque Foundation, a Component Unit of the City of Albuquerque

• Agreed Upon Procedures – Transportation Section 15

• Agreed Upon Procedures – Aviation Passenger Facility Charge Audit

• Agreed Upon Procedures for each landfill and convenience center

• Agreed Upon Procedures – Impact Fees

Offeror shall provide the detailed costs in the following format (Appendix A):

Special Engagement Audit Cost Hours and Cost

Approximate Hours/Year FY2021 FY2022 FY2023 Total Cost

Separate Independent Auditors' Report

Airport Fund

OPEB Trust Fund

The City of Albuquerque Foundation

Agreed Upon Procedures

Transportation Section

Aviation Passenger Facility Charge

Landfills/Convenience Centers

Impact Fees

Gross Receipts Tax

2.2.5 Independent Accountants’ Certificate for Additional Bond Test Procedures:

The proposed cost for an Independent Accountants’ Certificate as a result of additional bond test procedures performed will be requested on an “as needed-basis”. It is anticipated the cost will vary depending on the specific bond issue. The cost proposal will

RFP-2022-258-DFA-IC, "Audit Services" 17 be based on the Proposed Rates for Additional Services that will be included in Part 2.2.7.

2.2.6 Rates for Additional Professional/Audit Services. On occasion the City may request the auditor to render additional services outside the scope of this audit. All such work will be set forth in an addendum to the contract between the City and the firm. Any such additional work shall be performed at the same rates as proposed under this RFP and included in the cost proposal 2.2.7.

Please provide the additional rates in the following format:

Standard Hourly Rates Quoted Hourly Rates

Partners

Managers

Supervisory Staff

Staff

Other (specify):

2.2.7 All Costs: All costs to be incurred and billed to the City should be described by the Offeror for each item, to allow for a clear evaluation and comparison, relative to other offers received. The Offeror should understand that the City will not pay for any amounts not included -- for example, insurance or taxes -- and that liability for items not included remains with the Offeror.

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PART 3

SCOPE OF SERVICES

In accordance with 2.2.2.8(F)(6) NMAC, the City shall only award a contract to an independent public accounting firm that is included on the 2022 Approved Firm List, which is expected to be published in March 2022.

3.1 Scope of Services to be Performed:

3.1.1 General Information the City of Albuquerque (City) is soliciting the services of qualified firms of certified public accountants (auditor) to audit its financial statements and the financial statements of its component unit, the City of Albuquerque Foundation, for the fiscal year ending June 30, 2020, with an option to audit for each of the two (2) subsequent fiscal years.

3.1.2 Financial and Compliance Audit The auditor shall conduct a financial and compliance audit of the following applicable statements and schedules of the City for the period July 1, 2022 through June 30, 2023:

3.1.2.1 Basic Financial Statements The government-wide financial statements, fund financial statements budgetary comparison statements for the general fund, major special revenue funds, major proprietary funds, and the notes to the financial statements.

3.1.2.2 Supplemental Information (SI) Combining statements for the non-major funds are required to be included as Supplementary Information. Budgetary statements for non-major funds with a legally adopted budget will be included as supplementary information.

The auditors will audit and opine on the total of the non-major funds.

a) Combining financial statements by fund type, and the individual fund and account group financial statements.

b) Remaining supplementary information on schedules as required by Section 2.2.2.10(A)(2)(e) NMAC.

3.1.2.3 Required Supplemental Information (RSI) The auditor shall apply procedures and report in the auditor’s report on the following RSI pursuant to AU-C730.

a) The Management Discussion and Analysis (MD&A)

b) RSI data required by GASB 67 and 68 for defined benefit pension plans

3.1.2.4 Remaining Supplementary Information The auditor shall include an AU-C 725 opinion on the remaining SI schedules presented in the audit report.

a) Single Audit of Federal Assistance. The auditor shall complete an audit of the financial and compliance components of the federal grant awards received by the City and a review of its component unit, in accordance with OMB Uniform Guidance 2 CFR 200. This audit shall include and opinion on the fair representation of the City’s Schedule of Expenditures

RFP-2022-258-DFA-IC, "Audit Services" 19 of Federal Awards (SEFA) and certification of the submission of the Data Collection Form (SF-SAC) submitted through the Federal Audit Clearinghouse system.

b) Schedule of pledged collateral required by Subsection P of 2.2.2.10 NMAC.

c) Schedule of changes in assets and liabilities for agency funds required by Subsection P of 2.2.2.10 NMAC.

3.1.2.5 Other Special Audits/Engagements

3.1.2.5.1 Agreed Upon Procedures -Transportation Section 15. The auditor is to evaluate whether the Transit Fund, an enterprise fund of the City, satisfies certain requirements of the FTA Standards with regard to the data reported in its Federal Funding Allocation Statistics Form (Form FFA-10). The Federal Transit Administration (FTA) has established standards, published in 49 CFR Part 630, Federal Register, January 15, 1993 as presented in the National Transportation Database (NTD) 2020 Urban Module Reporting Manual and requires reporting of the Federal Funding Allocation Statistics Form (Form FFA-10) to be prepared in accordance with the requirements of the Uniform System of Accounts (USOA) and Records and Reporting System Final Rule. The link to 49 CFR Part 630 can be found below: https://www.gpo.gov/fdsys/granule/CFR-2007-title49-vol7/CFR-2007-title49-vol7-part630 . The link to the NTD 2020 Reporting Manual can be found below: https://www.transit.dot.gov/ntd/2020-ntd-reporting-policy-manual

3.1.2.5.3 Agreed Upon Procedures - Passenger Facilities Charges. The auditor is to perform an audit of the Schedule of Passenger Facility Charges (Revenue and Expenditures) of the City's Albuquerque International Sunport. The schedule is prepared annually for the purpose of complying with U.S. Federal Aviation Administration (FAA) Passenger Facility Charge Audit Guide for Public Agencies. In addition, the auditor shall issue an Independent Auditors' Report on Compliance and Internal Control Over Financial Reporting based on an audit of Passenger Facilities Charges (Revenues and Expenditures) performed in accordance with Generally Accepted Auditing Standards and Generally Accepted Government Auditing Standards. The link to the Code of Federal Regulations can be found below: https://www.gpo.gov/fdsys/pkg/CFR-2011-title14-vol3/xml/CFR-2011-title14-vol3-part158.xml

3.1.2.5.4 Agreed Upon Procedures -Landfill Financial Assurance. The auditor is to apply agreed upon procedures to the City's Solid Waste Department's post-closure landfill cost estimates. The cost estimates are prepared for the Intermediate Processing Facility, Montessa Park Convenience Center, Eagle Rock Convenience Center and Don Reservoir Convenience Center. The requirements for the Local Government Financial Test are contained in the New Mexico Solid Waste Management (NMSWM) Regulations

20.9.10.19 NMAC, Local Government Financial Test. The test is used solely by the City and New Mexico Environment Department Solid Waste Bureau in determining if the City satisfies the requirements of the NMSWM criteria. The link to 20.9.10.19 NMAC can be found below: http://164.64.110.239/nmac/parts/title20/20.009.0010.htm

3.1.2.5.5 Agreed Upon Procedures- Impact Fees. The auditor will apply agreed upon procedures to the City’s annual impact fee report in accordance with certain requirements http://en.wikipedia.org/wiki/Federal_Audit_Clearinghouse https://www.gpo.gov/fdsys/granule/CFR-2007-title49-vol7/CFR-2007-title49-vol7-part630 https://www.gpo.gov/fdsys/granule/CFR-2007-title49-vol7/CFR-2007-title49-vol7-part630 https://www.transit.dot.gov/ntd/2020-ntd-reporting-policy-manual https://www.gpo.gov/fdsys/pkg/CFR-2011-title14-vol3/xml/CFR-2011-title14-vol3-part158.xml https://www.gpo.gov/fdsys/pkg/CFR-2011-title14-vol3/xml/CFR-2011-title14-vol3-part158.xml http://164.64.110.239/nmac/parts/title20/20.009.0010.htm

RFP-2022-258-DFA-IC, "Audit Services" 20 of the Development Fee Act contained in the New Mexico Statutes Annotated 1978 (Development Fee Act), and with any federal, state, or City regulations applicable. The link to the New Mexico Statutes NMSA 1978 Development Fee Act 5-8-1-43 can be found below: https://law.justia.com/codes/new-mexico/2006/nmrc/jd_5-8-16-398f.html

3.1.2.5.6 Additional Bond Tests. The City of Albuquerque in the future may need to prepare one or more official statements in connection with the sale of debt securities. The auditor shall be requested by Bond Counsel to perform additional bond tests as specified in the Bond Legislation. An Independent Accountants’ Certificate will be required confirming the additional required bond testing has been performed. Such testing usually includes 1) reviewing bond legislation and relevant portions of Tax Ordinances, 2) comparing financial information in the debt offering schedules to the original source documents and 3) performing mathematical calculations as required and relating to the supporting schedules.

3.1.3 Required Reports to be issued for inclusion in the City's Comprehensive Annual Financial Report (ACFR). Upon completion of the audit, the auditor shall issue the following auditors’ reports for the City and its component unit, The City of Albuquerque Foundation:

3.1.3.1 An Independent Auditors' Report on the fair presentation of the financial statements in conformity with generally accepted accounting principles based on an audit of basic and combining financial statements performed in accordance with Government Auditing Standards.

3.1.3.2 A Report on Internal Control Over Financial Reporting And on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance With Governmental Auditing Standards. The auditor shall communicate any deficiencies in internal control and material weaknesses found during the audit. A deficiency in internal control is specifically defined as a deficiency in the design or operation of control that does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material misstatement is defined as a deficiency, or combination of deficiencies, in internal control such that there is reasonable possibility that a material misstatement in the financial statements will not be prevented, detected and corrected on a timely basis.

3.1.3.3 Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance.

3.1.3.4 A Schedule of Findings and Questioned Costs. The reports shall include all instances of noncompliance.

3.1.4 Other Required Reports to be Issued: Following the completion of the audit of the fiscal year’s financial statements the auditor shall issue the following additional reports:

3.1.4.1 An Independent Auditors' Report (separate) on the financial statements for certain enterprise funds for inclusion in debt offerings and for the City’s OPEB Trust fund.

https://law.justia.com/codes/new-mexico/2006/nmrc/jd_5-8-16-398f.html

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Presently those funds are:

Airport Fund OPEB Trust Fund Component Unit: The City of Albuquerque Foundation

3.1.4.2 Agreed Upon Procedures Reports. The City is required to submit special reports to various agencies. Presently reports are required for the following:

a) Transportation Section 15 Independent Accountants' Review Report on Reporting Forms Required under Title 49 U.S.C. 5335(a) Independent Accountants' Report on Applying Agreed-Upon-Procedures as stated in section 3.1.2.5.1.

b) Passenger Facility Charge Program Independent Auditors' Report on Compliance and Internal Control Over Financial Reporting based on an audit of Passenger Facilities Charge Revenues and Expenditures performed in accordance with Government Auditing Standards as stated in section 3.1.2.5.3 of this request for proposals.

c) Landfill Financial Assurance Independent Accountants' Report on Applying Agreed- Upon Procedures for each landfill and convenience center as stated in section 3.1.2.5.4 of this request for proposals.

d) Impact Fees Audit Independent Accountants' Report on Applying Agreed-Upon Procedures for City Impact Fees as stated in section 3.1.2.5.5 of this request for proposals.

3.1.4.3 Additional Bond Tests - Independent Accountant's Certificate. A certificate will be required for each new bond issue, if applicable.

3.1.4.4 Report of Possible Violations of Criminal Statutes in Connection with Financial Affairs. Auditors shall be required to make an immediate, written report of any possible criminal statute violation in connection with its financial affairs. The notification shall include an estimate of the dollar amount involved and a complete description of the violation, including names of persons involved and any action taken or planned to the City’s Director of Finance and Administrative Services, the City Controller and the New Mexico State Auditor.

3.1.5 Special Considerations

3.1.5.1 Reporting to the City Controller. Auditors shall communicate with the City of Albuquerque’s City Controller regarding each of the following:

a) The Auditors' responsibility under generally accepted auditing standards.

b) Significant accounting policies.

c) Significant audit adjustments.

d) Major issues discussed with management prior to retention.

e) Difficulties encountered in performing the audit.

f) Management judgements and accounting estimates.

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3.1.5.2 Auditing Standards to be Followed. To meet the requirements of this request for proposals, the audit shall be performed in accordance with:

a) The December 2011 revision of GAGAS issued by the United States Government Accountability Office.

b) U.S. auditing standards-AICPA (clarified) effective for periods ending on or after December 15, 2012;

c) Uniform administrative requirements, cost principles, and audit requirements for federal awards (uniform guidance);

d) AICPA audit and accounting guide, government auditing standards and single audits, (AAG-GAS) latest edition;

e) AICPA audit and accounting guide, state and local governments (AAG-SLV) latest edition; and

f) 2.2.2 NMAC, requirements for contracting and conducting audits of agencies, latest edition.

3.1.5.3 The City of Albuquerque has determined that the United States Department of Housing and Urban Development (HUD) will function as the cognizant agency in accordance with the provisions of the Single Audit Act of 1984, as amended, and U.S.

Office of Management and Budget (OMB) 2 CFR Part 200 Subpart F, Audits of State and Local Governments and the N.M. State Auditor’s Rule 2.2.2 NMAC.

3.1.6 Working Paper Retention and Access to Working Papers All working papers and reports must be retained, at the Auditors' expense, for a minimum of three (3) years, unless the firm is notified in writing by the City of Albuquerque 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 to City of Albuquerque:

U.S. General Accounting Office Cognizant federal agency Parties designated by the federal or state government or by the City of Albuquerque as part of an audit quality review process In addition, the firm shall respond to the reasonable inquiries of successor auditors to review working papers relating to matters of continuing accounting significance.

3.2 Description of the Government

3.2.1 Name and Telephone Number of Contact Persons/Organizational Chart/Location of Offices. The Auditor’s principal contact with the City of Albuquerque will be Pamela Fanelli, City Controller, Department of Finance and Administrative Services, or a designated representative, who will coordinate the assistance to be provided by the City to the auditor. A city-wide organization chart and list of Department Directors is included in the appendices.

3.2.2 Background Information The City of Albuquerque has been granted “Home Rule” authority as provided under the New Mexico constitution and as such has adopted City Ordinances that govern City operations.

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Information on the government and its finances which can be found in the City of Albuquerque’s Budget document, as well as in prior years’ Comprehensive Annual Financial Reports.