117-25-04+PERS+and+RIO.pdf

TABLE OF CONTENTS

1.1 PURPOSE OF RFP

1.2 PROCUREMENT OFFICER CONTACT INFORMATION

1.3 DEFINITIONS

1.4 RFP SCHEDULE

1.5 ASSISTANCE TO INDIVIDUALS WITH A DISABILITY

1.6 SECRETARY OF STATE REGISTRATION REQUIREMENTS

1.7 BIDDERS LIST REGISTRATION

1.8 STATE PROCUREMENT WEBSITE (SPO ONLINE)

1.9 AMENDMENTS TO THE RFP

1.10 DEADLINE FOR QUESTIONS AND OBJECTIONS

1.11 PREPROPOSAL CONFERENCE OR SITE INSPECTION

1.12 OFFER HELD FIRM

1.13 OFFEROR RESPONSIBLE FOR COSTS

1.14 TAXES

1.15 PROPOSAL RECEIPT DEADLINE – LATE PROPOSALS REJECTED

1.16 PROPOSAL OPENING

1.17 AMENDMENT AND WITHDRAWAL OF PROPOSALS

1.18 NEWS RELEASES

1.19 CONFLICT OF INTEREST

1.20 ATTEMPT TO INFLUENCE PROHIBITED

1.21 COLLUSION PROHIBITED

1.22 PROTEST AND APPEAL

1.23 SPECIFICATIONS PREPARED BY NON-STATE PERSONNEL

1.24 SUPPLIER REGISTRATION (PAYEE)

SECTION TWO – BACKGROUND

2.1 BACKGROUND INFORMATION – RIO

2.2 BACKGROUND INFORMATION – PERS

2.3 BUDGET

SECTION THREE – SCOPE OF WORK

3.1 SCOPE OF WORK

3.2 REQUIREMENTS

A. RIO DELIVERABLES

B. PERS DELIVERABLES

C. COMPLIANCE TESTING

D. OTHER TESTS

E. AUDIT REPORT CONTENTS

F. SPECIAL CONSIDERATION

G. ASSISTANCE AVAILABLE TO CONTRACTOR

H. LOCATION OF WORK/TRAVEL

I. RISK MANAGEMENT

J. PROJECT MANAGEMENT PLAN

K. CONTRACT TERM, SCHEDULE, AND DELIVERABLES

3.3 EXPERIENCE AND QUALIFICATIONS

A. MINIMUM QUALIFICATIONS

B. EXPERIENCE

C. CONTRACTOR PROJECT TEAM PERSONNEL

D. BACKGROUND CHECK

SECTION FOUR – PROPOSAL INSTRUCTIONS

4.1 PROPOSAL PREPARATION

4.2 PROPOSAL SUBMISSION INSTRUCTIONS

4.3 PROPOSAL FORMAT

4.4 TECHNICAL PROPOSAL

4.5 COST PROPOSAL

SECTION FIVE – AWARD AND PROPOSAL EVALUATION

5.1 AWARD

5.2 RESPONSIVENESS

5.3 RESPONSIBILITY – SUPPLEMENTARY INVESTIGATION

5.4 EVALUATION CRITERIA

5.5 COST PROPOSAL EVALUATION

5.6 CLARIFICATIONS OF PROPOSALS – DISCUSSIONS

5.7 RIGHT OF REJECTION

5.8 BEST AND FINAL OFFERS

5.9 TIE PROPOSALS

5.10 NEGOTIATIONS

5.11 NOTICE OF INTENT TO AWARD

5.12 CONTRACT APPROVAL

5.13 EVALUATION DEBRIEFING

SECTION SIX – CONTRACT INFORMATION

6.1 NORTH DAKOTA CONTRACTUAL REQUIREMENTS – BACKGROUND

6.2 STATE CONTRACT TERMS AND CONDITIONS – OFFEROR’S PROPOSED CHANGES

6.3 CONTRACT PROVISIONS

A. Contract Type B. Payment Procedures C. Inspection & Modification D. Contract Changes – Unanticipated Amendments E. Purchasing Card

6.4 CONTRACTUAL TERMS AND CONDITIONS – NO MATERIAL CHANGES

6.5 SCOPE OF WORK

6.6 CONTRACT TERM

6.7 RIGHT TO INSPECT PLACE OF BUSINESS

ATTACHMENTS

ATTACHMENT 1 – Cost Proposal ATTACHMENT 2 – Proposal Evaluation Worksheet ATTACHMENT 3 – Contract Template ATTACHMENT 4 – Summary of Agency Audit as requested by LAFRC

SECTION ONE – INSTRUCTIONS

1.1 PURPOSE OF RFP

The state of North Dakota, acting through its State Auditor’s Office (the STATE), is soliciting proposals from qualified independent CPA Firms to provide the North Dakota Office of the State Auditor (SAO) with an annual financial statement audit of the North Dakota Retirement and Investment Office (RIO) and North Dakota Public Employees Retirement System (PERS), (Clients) for fiscal years 2025, 2026, and 2027.

1.2 PROCUREMENT OFFICER CONTACT INFORMATION

The Procurement Officer is the point of contact for this RFP. Offerors shall direct all communications regarding this RFP to the Procurement Officer. Do not add the Procurement Officer to any marketing distribution lists.

PROCUREMENT OFFICER: James Carroll EMAIL: jpcarroll@nd.gov

PHONE: 701-328-2278

TTY Users call: 7-1-1

A person or firm interested in submitting a proposal should ensure all communications related to the procurement are only with the designated point of contact. This section does not restrict communication with state officials or any member of the legislative assembly unless the state official or member of the legislative assembly is involved directly with the procurement for which the person is interested or has submitted a bid or proposal (N.D.C.C. § 54-44.4-01.1).

Engaging in unauthorized communication or seeking to obtain information about an open solicitation with any state employee or official other than the responsible Procurement Officer or designee is sufficient grounds for suspension or debarment. (N.D.A.C. § 4-12-05-04(7))

1.3 DEFINITIONS

For the purposes of this RFP, the acronyms and defined terms are as follows:

Acronym or Term Name or Definitions AICPA American Institute of Certified Public Accountants Contractor Entity that has an approved contract with the State of North Dakota CT Central Time Zone Firm Independent CPA Firm GAS Government Auditing Standards NDAC North Dakota Administrative Code NDCC North Dakota Century Code OMB Office of Management and Budget PERS North Dakota Public Employee Retirement System RFP Request for Proposal RIO North Dakota Retirement and Investment Office Solicitation Closing Deadline for receipt of proposals listed in the RFP Schedule SPO Office of Management and Budget, State Procurement Office SPO Online State Procurement Office Online system https://www.ndlegis.gov/cencode/t54c44-4.pdf http://www.legis.nd.gov/information/acdata/pdf/4-12-05.pdf?20130319105642

1.4 RFP SCHEDULE

EVENT DATE and TIME RFP issued March 19, 2025 Deadline for submission of Questions and Objections March 26, 2025, by 5PM, CT Solicitation Amendment with responses to Questions issued approximately (if required) April 4, 2025

Deadline for receipt of proposals (Solicitation Closing) April 23, 2025, 5PM, CT Proposal evaluation completed by approximately May 2, 2025 Notice of intent to award issued approximately May 2, 2025 Secretary of State Registration, if determined to be required. Prior to Contract Signing

Contract start approximately May 2025

1.5 ASSISTANCE TO INDIVIDUALS WITH A DISABILITY

Contact the Procurement Officer, as soon as possible, if an individual with a disability needs assistance with the RFP, including any events in the RFP schedule, so reasonable accommodations can be made.

1.6 SECRETARY OF STATE REGISTRATION REQUIREMENTS

The North Dakota Secretary of State has registration requirements for individuals and businesses transacting business in North Dakota. If the successful Offeror is determined to have a registration requirement with the North Dakota Secretary of State, they must be registered before the contract award and registration must remain active for the duration of the contract period (N.D.C.C. § 54-44.4- 09.1)

• See the OMB Guidelines to Vendor Registry for more information.

Visit the Secretary of State's Vendor Registration webpage for information on registration requirements and fees. Visit FirstStop, the Secretary of State's business and licensing software, for online form options.

• Check the Business Records database to see if a business is registered.

• Contact Secretary of State's office by email or call 701-328-2900 (choose menu item 2, then option 1).

• If you need to register, fees apply.

• Vendors may need to obtain businesses licenses. See the list of licenses required of businesses in the State of North Dakota. The link includes information on who to contact, application fees, renewal dates, and the legal reference.

1.7 BIDDERS LIST REGISTRATION

Individuals or business entities desiring to be notified of bidding opportunities may apply to be placed on the Bidders List. (N.D.C.C. § 54-44.4-09) Bidders Lists are used to notify vendors when solicitations are issued on the State Procurement Office Online system (SPO Online). Placement on the Bidders List does not guarantee a vendor will receive notice of every solicitation (N.D.A.C. § 4-12-05-01). There are no fees to register as a bidder. The online application form requests contact information for the receipt of solicitation notices. The Bidders List application and SPO Online system use commodity codes to identify categories of goods, services, and information technology.

https://www.ndlegis.gov/cencode/t54c44-4.pdf https://www.ndlegis.gov/cencode/t54c44-4.pdf https://www.omb.nd.gov/sites/www/files/documents/doing-business-with-the-state/procurement/vendor-reg-guidelines.pdf https://sos.nd.gov/business/vendors.html https://sos.nd.gov/firststop.html https://firststop.sos.nd.gov/search/business mailto:sos@nd.gov https://www.ndsu.edu/agriculture/extension/extension-topics/leadership-and-civic-engagement/business-leadership-and-resources-2 https://www.ndsu.edu/agriculture/extension/extension-topics/leadership-and-civic-engagement/business-leadership-and-resources-2 https://www.ndlegis.gov/information/acdata/pdf/4-12-05.pdf

The commodity codes used for this solicitation are: 918-04 and 946-20.

Visit the OMB website for instructions and the online Bidders List Application:

Bidders List Registration Website

For assistance with Bidders List Registration, contact State Procurement Help Desk at 701-328-1728 or infospo@nd.gov.

1.8 STATE PROCUREMENT WEBSITE (SPO ONLINE)

This RFP and any related amendments and notices will be posted on the North Dakota OMB website using SPO Online. Offerors are responsible for checking this website to obtain all information and documents related to this RFP: https://apps.nd.gov/csd/spo/services/bidder/main.htm Select “Recent Solicitations”. Recent Solicitations are listed by close date.

Notices related to this RFP will be sent to the Bidders List for the needed commodity or service and other known potential Offerors.

Offerors not having completed the Bidders List registration may request to receive notices related to this RFP by contacting the Procurement Officer in writing with the following information: RFP title, business name, contact person, mailing address, telephone number, and email address.

1.9 AMENDMENTS TO THE RFP

If an amendment to this RFP is issued, it will be provided to all Offerors on the Bidders List for the solicitation and to those prospective Offerors who have contacted the Procurement Officer to receive notices related to the RFP. An Offeror shall include in their proposal any required acknowledgements of amendments to the RFP.

1.10 DEADLINE FOR QUESTIONS AND OBJECTIONS

Offerors should carefully review the RFP including all Attachments. Offerors may ask questions to obtain clarification and request additional information, or object to material in the RFP. Questions and objections must be submitted to the Procurement Officer in writing by the deadline identified in the RFP Schedule. If no deadline is specified, questions or objections must be received at least seven days prior to the Solicitation Closing deadline. The Procurement Officer may elect to respond to questions received after the deadline.

Questions and objections should include a reference to the applicable RFP section or subsection. Email is the preferred method of submission with the RFP number and title cited in the email subject line.

Responses to questions will be distributed as a solicitation amendment unless the question can be answered by referring the Offeror to a specific section of the RFP.

1.11 PREPROPOSAL CONFERENCE OR SITE INSPECTION

The STATE will not hold a preproposal conference or site inspection for this RFP.

https://www.omb.nd.gov/doing-business-state mailto:infospo@nd.gov https://apps.nd.gov/csd/spo/services/bidder/main.htm

1.12 OFFER HELD FIRM

Offerors must hold proposals firm for at least 90 days from the deadline for receipt of proposals (Solicitation Closing). The STATE may send a written request to all Offerors to hold their offer firm for a longer period of time.

1.13 OFFEROR RESPONSIBLE FOR COSTS

Offeror is responsible for all costs associated with the preparation, submittal, and evaluation of any proposal including any travel and per diem associated with demonstrations and presentations.

1.14 TAXES

The STATE is not responsible for and will not pay itemized local, state, or federal taxes. Purchases of tangible personal property made by a state government agency is exempt from sales tax. The state sales tax exemption number is E-2001, and certificates will be furnished upon request by the purchasing agency. The contractor must provide a valid Vendor Tax Identification Number as a provision of the contract.

The purchasing agency will determine if services provided under this contract are Form 1099 reportable. The purchasing agency may require the contractor to submit an IRS Form W-9.

The state tax exemption number should not be used by contractors in the performance of a contract.

A contractor or service provider performing any contract, including service contracts, for the United States Government, State of North Dakota, counties, cities, school districts, park board or any other political subdivisions within North Dakota is not exempt from payment of sales or use tax on materials, tangible personal property, and supplies used or consumed in carrying out contracts. In these cases, the contractor is required to file returns and pay sales and use tax just as required for contracts with private parties. Contact the North Dakota Tax Department at 701-328-1246 or visit their website at https://www.nd.gov/tax/tax-resources/ for more information.

A contractor performing any contract, including a service contract, within North Dakota is also subject to the corporation income tax, individual income tax, and withholding tax reporting requirements, whether the contract is performed by a corporation, partnership, or other business entity, or as an employee of the contractor. In the case of employees performing the services in the state, the contractor is required to withhold state income tax from the employees’ compensation and remit to the state as required by law. Contact the North Dakota Tax Department at 701-328-1248 or visit their website for more information.

1.15 PROPOSAL RECEIPT DEADLINE – LATE PROPOSALS REJECTED

An Offeror is solely responsible for ensuring their proposal is received by the STATE prior to the Solicitation Closing deadline identified in the RFP schedule regardless of the method of submission. A solicitation amendment will be issued if this deadline is changed. An Offeror may contact the Procurement Officer to inquire whether their proposal has been received. Proposals delivered late will be rejected pursuant to N.D.A.C. § 4-12-08-13.

1.16 PROPOSAL OPENING

A public opening will not be held.

This is a formal sealed Request for Proposal (RFP) process. Proposals will be secured and held unopened until the Solicitation Closing deadline. Per N.D.A.C § 4-12-08-04, the openings may be made https://www.nd.gov/tax/tax-resources/ http://www.legis.nd.gov/information/acdata/pdf/4-12-08.pdf?20130424100739 https://www.legis.nd.gov/information/acdata/html/4-12.html public at the discretion of the purchasing agency. If a public opening is held, only the names of Offerors that submitted proposals can be revealed at the opening, and each proposal will be opened in a manner to avoid disclosure of the contents to the competing Offerors.

1.17 AMENDMENT AND WITHDRAWAL OF PROPOSALS

Offeror may amend, supplement, or withdraw proposal prior to the Solicitation closing deadline. No changes will be accepted after the Solicitation closing deadline. After the Solicitation closing deadline, Offeror may make a written request to withdraw their proposal and shall provide evidence that a substantial mistake has been made, at which point the STATE may permit withdrawal.

1.18 NEWS RELEASES

Offerors shall not make any news releases related to this RFP without prior approval of the STATE.

1.19 CONFLICT OF INTEREST

Under state laws and rules, a state employee or official shall not participate directly or indirectly in a procurement when the state employee or official knows of a conflict of interest. Potential conflicts of interest include state employees or their immediate family members employed by the firm, seeking employment with the firm, or with a financial interest in the firm. Potential conflicts of interest will be addressed in accordance with N.D.A.C. § 4-12-04-04. (N.D.C.C. § 12.1-13-03)

Persons employed by the State of North Dakota, or within one year thereafter, may be prohibited from acquiring a pecuniary interest in a public contract or transaction. Offerors should review N.D.C.C. § 12.1-13-02 to ensure compliance and avoid such conflict(s) of interest.

1.20 ATTEMPT TO INFLUENCE PROHIBITED

Offerors must not give or offer to give anything to a state employee or official that might influence or appear to influence procurement decisions. Suspected attempts to influence will be handled in accordance with N.D.A.C. § 4-12-04-05.

1.21 COLLUSION PROHIBITED

Offerors must prepare proposals independently, without collusion. Suspected collusion will be handled in accordance with N.D.A.C § 4-12-04-06.

1.22 PROTEST AND APPEAL

An interested party may protest a solicitation pursuant to N.D.C.C. § 54-44.4-12 and N.D.A.C. § 4-12- 14-01. When a solicitation contains a deadline for submission of questions and objections, protests of the solicitation will not be allowed if these faults have not been brought to the attention of the Procurement Officer before the specified deadline. If no deadline for questions is specified, protests based upon defects in the solicitation must be made at least seven calendar days before the deadline for receipt of proposals.

An Offeror that has submitted a response to a solicitation and is aggrieved may protest an award or notice of intent to award pursuant to N.D.C.C. § 54-44.4-12 and N.D.A.C. § 4-12-14-02. The protest must be submitted in writing to the Procurement Officer during the protest period, which is seven calendar days beginning the day after the notice of intent to award is issued.

http://www.legis.nd.gov/information/acdata/pdf/4-12-04.pdf?20140130144222 https://www.ndlegis.gov/cencode/t12-1c13.pdf https://www.legis.nd.gov/cencode/t12-1c13.html https://www.legis.nd.gov/cencode/t12-1c13.html http://www.legis.nd.gov/information/acdata/pdf/4-12-04.pdf?20140130144222 http://www.legis.nd.gov/information/acdata/pdf/4-12-04.pdf?20140130144222 http://www.legis.nd.gov/cencode/t54c44-4.pdf?20130417132347 http://www.legis.nd.gov/information/acdata/pdf/4-12-14.pdf?20130417132435 http://www.legis.nd.gov/information/acdata/pdf/4-12-14.pdf?20130417132435 http://www.legis.nd.gov/cencode/t54c44-4.pdf?20130417132347 http://www.legis.nd.gov/information/acdata/pdf/4-12-14.pdf?20130417132435

The protestor may appeal the decision of the Procurement Officer to the Director of OMB or designee in writing within seven calendar days after receiving notice of the decision pursuant to N.D.C.C. § 54-44.4- 12 and N.D.A.C. § 4-12-14-03.

1.23 SPECIFICATIONS PREPARED BY NON-STATE PERSONNEL

When a purchasing agency has specifications prepared by someone other than a state employee or official on behalf of the STATE, that person or business entity must be excluded from submitting bids or proposals in accordance with N.D.A.C. § 4-12-06-06.

1.24 SUPPLIER REGISTRATION (PAYEE)

The successful Offeror will be required to complete Supplier Registration, if not already registered as a Supplier. Any individual or business who will be receiving payment from a state agency or higher education institution must complete a registration process to collect important financial and taxpayer information. Payments are generally made by check or automatic clearing house (ACH), and taxpayer information must be collected in compliance with IRS requirements. The State and North Dakota University System (NDUS) have separate financial systems and vendor registration processes.

http://www.legis.nd.gov/cencode/t54c44-4.pdf?20130417132347 http://www.legis.nd.gov/cencode/t54c44-4.pdf?20130417132347 https://www.legis.nd.gov/information/acdata/pdf/4-12-14.pdf https://www.ndlegis.gov/information/acdata/pdf/4-12-06.pdf?20140130144222

SECTION TWO – BACKGROUND

2.1 BACKGROUND INFORMATION – RIO

The North Dakota Retirement and Investment Office (RIO) was established in 1989 to coordinate the activities of the State Investment Board (SIB) and the Teachers’ Fund for Retirement (TFFR) as stated in Section 54-52.5-01 of the North Dakota Century Code.

State Investment Board The SIB is established in Chapter 21-10 of the North Dakota Century Code.

The SIB has statutory responsibility for the administration of the investment programs of several funds including the Public Employees Retirement System, The Teachers’ Fund for Retirement, the Workforce Safety and Insurance Fund, and the Legacy Fund. The SIB also maintains contractual obligations with certain political subdivisions. The 13-member Board includes the Governor, State Treasurer, Executive Director of Workforce Safety & Insurance, Land Commissioner, a State Representative and State Senator from the Legacy & Budget Stabilization Fund Advisory Board (LBSFAB), Director of the Office of Management & Budget, two representatives of PERS, two representatives of TFFR, and two appointed Institutional Investment Professionals.

All funds invested under the direction of the SIB follow the ‘Prudent Investor Rule’, with a specific exception for the Legacy Fund spelled out in Chapter 21-10-07.1 of the North Dakota Century Code related to in-state preference. Investments are managed exclusively in the interest of meeting the funds’ individual objectives. Professional investment managers, consultants and custodians are retained to assist in the implementation of the investment program. RIO assists the SIB in carrying out its responsibilities for investment program administration.

The investment program is highly sophisticated with ten asset classes and approximately 42 external investment manager relationships. The investments are pooled into three distinct groups, pension, insurance, and Legacy Fund, until November 2024 when the Legacy and insurance pools were combined. There are currently 31 client funds. From July 1, 2024, to March 31, 2025, all investments were externally managed. Tentatively April 1, 2025, the internally investment program will be internally trading.

Teachers’ Fund for Retirement TFFR was established in 1913 to provide retirement income to public educators. TFFR Is a qualified defined benefit public pension plan covered under section 401(a) of the Internal Revenue Code. The North Dakota Century Code Chapter 15-39.1 contains the actual language governing the Fund and is supplemented by Title 82 of North Dakota Administrative Code.

The mission of the TFFR division is to administer a comprehensive retirement program that provides North Dakota public educators with a foundation for retirement and security. The TFFR has approximately 25,000 active, inactive, and retired members and over 200 employers.

Responsibility for administration of the TFFR benefits program is assigned to a seven-member Board of Trustees (Board). The Board consists of the State Treasurer, the Superintendent of Public Instruction, and five members appointed by the Governor. The appointed members serve five-year terms which end on June 30 of alternate years. The appointed Board members must include two active teachers, one active school administrator, and two retired members.

TFFR’s funds are invested under the direction of the SIB following the ‘Prudent Investor Rule.’ The investments must be invested exclusively for the benefit of the TFFR members. Two of the TFFR Board members serve as voting members on the thirteen-member SIB.

In February 2025 a new pension administration system was launched. TFFR’s legacy solution was first deployed in 2005 as a client-server application. RIO pursued a pension administration system modernization project to better support and maintain key activities, such as payroll reporting, contributions accounting, benefits calculations, tax processing, reporting, and integration capabilities. Neospin™, Sagitec’s pension administration platform, provides TFFR with a full implementation of a modern, scalable solution that automates processes, improves data accuracy, and enhances the member and employer experience.

RIO’s most recent audit contract was with UHY LLP. The most recent financial statement and pension related (Schedule of Employer Allocations and Schedule of Pension Amounts) audit can be found on the SAO’s official website.

2.2 BACKGROUND INFORMATION – PERS

The system is the administrator of four defined benefit pension plans and an optional defined contribution retirement plan. The system also manages and administers the retiree health insurance credit program, the uniform group insurance program, the deferred compensation program, and the pretax benefit program.

Defined Benefit Pension Plans The Public Employees Retirement System (PERS) is a cost-sharing multiple employer retirement plan.

PERS was established July 1, 1966, as a defined contribution plan was changed to a defined benefit plan by the 1977 North Dakota Legislature. Starting in 2025, the Main PERS plan will be closed to new employees, who will instead be enrolled into a Defined Contribution plan. PERS covers substantially all employees of the State of North Dakota, its agencies, and various participating political subdivisions. It also covers Supreme and District Court Judges, the National Guard Security Officers, and Firefighters, and as of August 1, 2004, peace officers and correctional officers employed by political subdivisions.

The Highway Patrolmen’s Retirement System (HPRS) is a single-employer defined benefit plan established July 1, 1949, that covers substantially all sworn officers of the North Dakota Highway Patrol. The System became the administrator of this plan effective July 1, 1983. The Retirement Plan for Employees at Job Service North Dakota (Job Service Plan) is a single-employer defined benefit plan established July 1, 1961 and is limited to employees participating in the plan as of September 30, 1980.

The System became the administrator of the Job Service plan effective August 1, 2003.

PERS has approximately 27,000 contributing members and 14,500 retirees and beneficiaries currently receiving benefits. HPRS has approximately 165 contributing members and 119 retirees and beneficiaries. The Job Service Plan has 1 contributing member and 109 retirees. The employers participating in PERS include approximately 100 state agencies and 382 political subdivisions. PERS, HPRS, and Job Service Plan are accounted for as pension trust funds.

https://www.sagitec.com/neospin/pension-administration-software

Defined Contribution Retirement Plan An optional Defined Contribution Retirement Plan was established effective January 1, 2000. The Defined Contribution Plan is available to state employees who are in positions not classified by the Human Resource Management Services division of the State of North Dakota. Employees of the judicial branch, Board of Higher Education, or State Institutions under the jurisdiction of the Board of Higher Education are not eligible to participate in this plan. The 2013 Legislative Assembly passed legislation to expand eligibility for this Plan to include all new statement employees hired on or after October 1, 2013, through July 31, 2017. Eligibility has now reverted to state employees not classified by the Human Resource Management Services division of the State of North Dakota. Starting in January 2025, the Defined Contribution plan will become the primary retirement plan for newly enrolled public employees. The plan currently has approximately 90 participants and 30 retirees.

Retiree Health Insurance Credit Program This program was created by the North Dakota Legislature in 1989. It is designed to provide members with a benefit that can be used to offset the cost of their health insurance premiums during retirement years. The program is not available to new employees starting January 1, 2020 or after.

There are approximately 16,000 contributing members and 14,000 retired participants currently receiving benefits.

The retiree health insurance credit program is accounted for as an other employee benefit trust fund.

Uniform Group Health Insurance Program Group Health Insurance. The system began administering the group health insurance plan in 1971.

There are approximately 25,000 active and retired contracts under this plan. Total covered lives, including spouses and dependents, are approximately 59,000. There are approximately 100 state agencies and 120 political subdivisions participating in the group health program.

Group Life Insurance. The system began administering the group life insurance plan in 1971. There are approximately 20,000 active and 3,000 retired employees covered under the basic life insurance plan.

Active employees have the option of purchasing additional life insurance under the employee supplemental, dependent supplemental, and spouse supplemental provisions of the plan.

The uniform group insurance program is accounted for as an enterprise fund.

Deferred Compensation Program This is a voluntary, supplemental retirement plan provided in accordance with Section 457 of the Internal Revenue Code. It allows eligible employees to defer and invest income on a pretax basis to be withdrawn later, usually at retirement. The System has administered the Plan since 1987. Nine companies have agreed to provide investment services for the State’s deferred compensation program.

The deferred compensation program is accounted for as an other employee benefit trust fund.

Pretax Benefits Program (FlexComp) This program was established by the North Dakota Legislature in 1989 in accordance with Section 125 of the Internal Revenue Code. It allows employees to elect to reduce their salaries to pay for qualified insurance premiums, medical expenses, and dependent care expenses on a pretax basis. There are approximately 2,800 participants in the medical and dependent care spending accounts.

The pretax benefits program is accounted for as an other employee benefit trust fund.

PERS most recent audit contract was with UHY LLP. The most recent financial statement, pension related (Schedule of Employer Allocations and Schedule of Pension Amounts) audits, and OPEB related audits (Schedule of Employer and Schedule of OPEB amounts) can be found on the SAO’s official website.

2.3 BUDGET

Previous contracts for RIO contained a maximum audit fee of $111,720, $115,178, $118,636, and $126,600 for fiscal years 2021, 2022, 2023, and 2024 respectively.

Previous contracts for PERS contained a maximum audit fee of $111,934, $115,391, $118,848 and $123,600 for fiscal years 2021, 2022, 2023, and 2024 respectively.

SECTION THREE – SCOPE OF WORK

3.1 SCOPE OF WORK

Retirement and Investment Office The contractor shall express an opinion on the fair presentation of the combined and combining financial statements (each individual fund) of the North Dakota Retirement and Investment Office for the years ending June 30, 2025, 2026, and 2027. The firm must provide an opinion on the supplementary financial information (other than the combining statements) in relation to the financial statements taken as a whole. The firm will report on required supplementary information in accordance with the current guidance from the AICPA.

In addition, the firm shall express an opinion on the fairness of the “Schedule of Employer Allocations” and “Schedule of Pension Amounts by Employer” for the fiscal years ending June 30, 2025, 2026, and 2027. The contractor shall perform testing of census data (as detailed in the SLGEP Pension Whitepaper Series or updated guidance).

Audits will be done in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States, AU-C section 805, Special Considerations of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement, and Guidelines to Independent Certified Public Accountants Performing Audits of State Agencies, issued by the Auditor. The Firm will also follow the guidance of the AICPA Audit and Accounting Guide “Audits of State and Local Governmental Units,” any other applicable AICPA audit and accounting guide.

RIO did not receive or expend federal funds during the previously contracted audits and does not anticipate receiving federal funds in the future.

Public Employee Retirement System The contractor shall express an opinion on the fair presentation of the combined and combining financial statements (each individual fund) of North Dakota Public Employee Retirement System for the years ending June 30, 2025, 2026, and 2027. The Firm must give an opinion on other supplementary financial information (other than the combining statements) in relation to the financial statements taken as a whole. The firm will report on required supplementary information in accordance with the current guidance from the AICPA.

For multi-employer pension funds, the firm shall express an opinion on the fairness of the “Schedule of Employer Allocations” and “Schedule of Pension Amounts by Employer” and related notes to the schedules.

For the Retiree Health Insurance Credit Fund, the contractor shall express an opinion on the fairness of the “Schedule of Employer Allocations” and “Schedule of Postemployment Benefits Other than Pension Amounts by Employer” and related notes to the schedules.

The firm shall perform testing of census data (as detailed in the SLGEP Pension Whitepaper Series or updated guidance).

Audits will be done in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States, AU-C section 805, Special Considerations of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial

Statement, and Guidelines to Independent Certified Public Accountants Performing Audits of State Agencies, issued by the Auditor. The Firm will also follow the guidance of the AICPA Audit and Accounting Guide “Audits of State and Local Governmental Units,” any other applicable AICPA audit and accounting guide.

PERS did not receive or expend federal funds during the previously contracted audits and does not anticipate receiving federal funds in the future.

3.2 REQUIREMENTS

A. RIO DELIVERABLES

The contractor will be required to provide the following to achieve the objective of this project:

1. Include a representative of the State Auditor’s Office in entrance and exit conferences.

2. Presentation of the audit scope and approach to the SIB audit committee.

3. Summary of census audit testing and results delivered to RIO management.

4. Draft audit report to be reviewed by the State Auditor’s Office, including the management letter and any informal recommendations made to the Client. Copies of the draft audit report will also need to be submitted to the Client.

5. Draft report containing the “Schedule of Employer Allocations” and “Schedule of Pension Amounts” and opinions thereon to be reviewed by the SAO.

6. A final financial statement report in one, searchable, unprotected pdf file with bookmarks for the table of contents items for both the State Auditor’s Office and the Client.

7. A final report containing the “Schedule of Employer Allocations” and “Schedule of Pension Amounts” and opinions thereon. The report shall be provided in a searchable, unprotected pdf file with bookmarks for the table of contents to both the SAO and the Client.

8. Presentation of the final report to the SIB audit committee.

9. Presentation of the final report to the Legislative Audit and Fiscal Review Committee.

B. PERS DELIVERABLES

The contractor will be required to provide the following to achieve the objective of this project:

1. Include a representative of the Office of the State Auditor in entrance and exit conferences.

2. Summary of census audit testing and results delivered to PERS management.

3. Draft audit report to be reviewed by the SAO, including the management letter and any informal recommendations made to the Client. Copies of the draft audit report will also need to be submitted to the Client.

4. Draft report containing the “Schedule of Employer Allocations” and “Schedule of Pension Amounts” and opinions thereon to be reviewed by the SAO.

5. Draft report containing the “Schedule of Employer Allocations” and “Schedule of Other Post Employment Benefit Amounts” and opinions thereon to be reviewed by the SAO.

6. A final financial statement report in one searchable, unprotected pdf file with bookmarks for the table of contents to the SAO and the Client.

7. A final report containing the “Schedule of Employer Allocations” and “Schedule of

Pension Amounts” and opinions thereon. The report shall be provided in a searchable, unprotected file with bookmarks for the table of contents to the SAO and the Client.

8. A final report containing the “Schedule of Employer Allocations” and “Schedule of Other

Post Employment Amounts” and opinions thereon. The report shall be provided in a searchable, unprotected file with bookmarks for the table of contents to the SAO and the Client.

9. Presentation of the audit scope, approach, and final report to the audit committee of the

PERS Board and to the full PERS Board.

10. Presentation of the final report to the Legislative Audit and Fiscal Review Committee.

C. COMPLIANCE TESTING

The engaged contractor shall test for compliance with applicable state and federal laws and report violations of any laws regardless of financial materiality (unless clearly inconsequential).

Testing shall include but not be limited to the provisions of Title 15-39.1, 21-10, and 54-52.5 for RIO and Title 54-52 of the North Dakota Century Code and applicable Session Laws (testing of appropriation laws and legislative intent relating to transfers).

Specific NDCC Sections that shall be tested include:

RIO

15-39.1-09 15-39.1-10 15-39.1-10.1 through 15- 39.1-12

15-39.1-20 15-39.1-26 21-10-02.1

21-10-07 21-10-08 21-10-11 54-27.2-01 54-52.5-03 Article X, Section 26 of the ND Constitution

PERS

39-03.1-04 39-03.1-05 39-03.1-09 39-03.1-10 39-03.1-11 39-03.1-11.2

54-52-05 54-52-06 54-52-06.1 54-52.06.2 54-52-06.3 54-52-06.4

54-52-13 54-52-14.1 54-52-14.2 54-52.1-14.3 54-52-17 54-52-17.1

54-52-17.2 54-52.1-03.2 54-52.1-03.3

D. OTHER TESTS

To provide assurance on the internal investments of RIO, the following tests will be performed:

- Select a sample of internal investment transactions to determine that the transactions were accounted for properly.

- Perform internal control testing surrounding RIO’s internal investment process.

The CPA firm will also perform each of the following tests:

- Examine the fixed asset equipment additions and deletions for propriety.

- Physically inspect a sample of equipment items.

- Determine that a physical inventory was taken. (NDCC 44-04-07)

- Examine recorded liabilities and perform a search for unrecorded liabilities, to ensure that expenditures were charged to the proper fiscal year, and proper biennial appropriation.

- Determine whether receipts are being deposited into the appropriate fund(s), and disbursements are from the appropriate fund(s).

- Determine whether all state funds are deposited with the Bank of North Dakota.

(N.D.C.C. 6-09-07 & N.D.C.C. 21-04-02)

- Determine whether RIO and PERS complied with legislative intent included in appropriation law.

- Determine whether there were Emergency Commission or budget Section changes to RIO and PERS appropriation amounts. If changes were authorized, confirm the related expenditures complied with the documented intent of the submitted request (NDCC54-

16-03 & NDCC 54-10-01.1).

- Select a sample of administrative expenditures and determine compliance with OMB policy and state purchasing requirements with an emphasis on contracting for services

(NDAC 4-12-08).

- Determine the legality of investments. (NDCC 54-27-16).

- Determine that all public moneys were paid over to the state treasurer, unless the State

Treasurer has appointed the Bank of North Dakota as an agent for the purpose of receiving public moneys and were disbursed only pursuant to appropriation made by the legislature (State Constitution, Article X, Section 12).

E. AUDIT REPORT CONTENTS

The audit report for RIO shall be addressed to the Governor of North Dakota, the Legislative Assembly, SIB, TFFR, and RIO.

The audit report for PERS shall be addressed to the Governor of North Dakota, the Legislative Assembly, and PERS.

The audit reports for both clients must also include, as applicable, the following:

- Auditor’s report on financial statements and supplementary information.

- Management Discussion and Analysis.

- Comparative financial statements.

- Notes to the financial statements.

- Statement of appropriations.

- Required Supplementary Information

- Summary of Agency Audit as requested by LAFRC (Attachment 4).

- Non-federal findings, recommendations, and agency response.

- Auditor’s report on internal control and on compliance and other matters.

- Schedule of findings and questioned costs.

- Summary schedule of prior audit findings.

F. SPECIAL CONSIDERATION

1. The financial statements of the Client will be included in the Annual Comprehensive

Financial Report (ACFR) of the State of North Dakota. The work of the Firm will be relied on and referred to by the Auditor.

2. If the financial statements of the Client are not prepared in accordance with generally accepted accounting principles, or if the Firm's report is other than unmodified, the Auditor must be notified as soon as possible.

3. The State's ACFR will be submitted to the Government Finance Officers Association for the purpose of obtaining a Certificate of Achievement for Excellence in Financial Reporting.

4. The Firm agrees to cooperate with the Office of Management and Budget, and/or the Auditor in matters affecting the adjusting, consolidating, combining, or eliminating of the Client’s accounts and transactions, for inclusion in the basic financial statements of the State of North Dakota. This includes providing the information necessary for the State to qualify for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting.

5. The Firm shall consider the Auditor as an audit committee when making the required GAS and AICPA audit committee communications. As such the Firm will communicate audit results to the Auditor as they would to those charged with governance.

The Firm will inform the Auditor of any changes in the above requirements or other contract terms during work on the financial information of the Client.

G. ASSISTANCE AVAILABLE TO CONTRACTOR

Assistance to be supplied by the Client, including arrangements for working space, preparation of schedules, and answering of questions, will be coordinated with the Chief Financial Officer at RIO and the Chief Audit Officer at PERS. RIO’s and PERS’ internal audit function will provide limited assistance.

The staff of the Client will prepare (as applicable) the following statements, schedules, and workpapers for the selected firm:

1. Trial balance cross referenced to the financial statements.

2. Management’s discussion and analysis.

3. Statement of net position.

4. Statement of activities.

5. Balance sheet.

6. Statements of revenue, expenditures, and changes in fund balance.

7. Statement of appropriations.

8. Statement of cash flows.

9. Statement of fiduciary net position.

10. Statement of changes in fiduciary net position.

11. Notes to the financial statements.

12. Combining financial statements.

13. Bank reconciliations.

14. Cash transfers listings.

15. Receivables listings.

16. Payable listings.

17. Investment reconciliations.

18. Fixed asset listing (including depreciation).

19. Copies of lease and contracts.

20. Schedule of lease activity.

21. GASB 87 & 96 schedules.

22. Required supplementary information.

23. Supplementary information.

24. Fair value of investments.

25. List of all nonstandard entries and year-ending adjusting entries.

26. Summary schedule of prior audit findings.

27. Corrective action plan.

H. LOCATION OF WORK/TRAVEL

On-site work at RIO and PERS in Bismarck, ND is required for the first fiscal year of the contract. It will be firm discretion if on-site work is required for the second and third year. The primary accounting records for RIO are located at 1600 E Century Ave STE 3, Bismarck, ND.

The primary accounting records for PERS are located at 1600 E Century Ave STE 2, Bismarck, ND. The Client will provide access to office personnel, documents, and data as required by the Firm. While the Firm is conducting on-site work, the Client will provide the Firm with a reasonable office space.

Final report presentations may be presented virtually.

The contractor should include in its price proposal: transportation, lodging, and per diem costs sufficient to perform the proposed on-sight work.

I. RISK MANAGEMENT

The contractor will take appropriate measures to ensure the safety of their employees, state employees, the public, and property. The contractor must identify any potential risks, issues and problems associated with the project and identify ways to mitigate those potential risks.

J. PROJECT MANAGEMENT PLAN

The contractor will be expected to use appropriate project management to ensure the work is accomplished on time, within budget, and meets quality standards.

1. The contractor will be required to collaborate with the STATE to agree upon the contract schedule, including a work breakdown, schedule of tasks and activities, and progress milestones.

2. The contractor will be required to coordinate with the STATE to develop a communication plan. Any problems or unforeseen events must be communicated timely to the STATE procurement officer, and any changes must be agreed upon between the parties and set forth in a written amendment to the contract. If the STATE requires corrective action, the contractor will be notified in writing.

K. CONTRACT TERM, SCHEDULE, AND DELIVERABLES

1. Contract Term

This contract will begin once executed by all parties, anticipated to be in May 2025 and will end after completion of report presentations. See the attached contract (Attachment 3).

2. Schedule and Deliverables The STATE has identified the following deliverables which are significant work products or milestones in the project. The STATE requires these deliverables to be addressed in the Contract Schedule, at a minimum. The contractor shall develop a schedule for accomplishing the Scope of Work, including these specific deliverables. The final schedule shall be agreed upon between the STATE and the successful Offeror and incorporated into the contract. The approximate schedule for this contract is as follows:

a. Contract start: May 2025

b. “Kick off” meeting/conference call: Completed by the first week of fieldwork.

c. Completion of fieldwork: September 30th for RIO and October 15th for PERS.

d. Firm submits first draft to the State by: October 25th for RIO and November 8th for

PERS.

e. Firm submits responses from SAO comments by: November 1st for RIO and

November 15th for PERS.

f. Firm submits final report to SAO and Client by: November 15th for RIO and

November 22nd for PERS.

g. Presentation to the SIB Audit Committee: November meeting to be determined.

h. Presentation to the Legislative Audit and Fiscal Review Committee: To be determined.

i. Presentation to the PERS Audit Committee: To be determined.

j. Presentation to the PERS Board: To be determined.

3.3 EXPERIENCE AND QUALIFICATIONS

A. MINIMUM QUALIFICATIONS

Offerors must have the following minimum qualifications to be considered for contract award:

1. The offeror must have statutory authority to conduct audits in North Dakota as specified by N.D.C.C 43-02.2. Further, a Certified Public Accountant allowed to practice under N.D.C.C. 43-02.2 must plan, supervise, and conduct most of the work of the audit.

2. The offeror’s most recent peer review or system of quality control review report must have received a peer review rating of pass.

3. The auditors must be independent in accordance with AICPA Standards and Government Auditing Standards as issued by the Comptroller General of the United States.

4. Auditor team members must meet the continuing professional education requirements of Government Auditing Standards.

The Offeror must have and keep current any professional licenses and permits required by federal, state, and local laws for performance of this contract. Offerors that do not possess required licenses at the time proposals are due will be determined non-responsive to the RFP and will be rejected.

B. EXPERIENCE

The Offeror must meet the following experience requirements to be considered for the contract award. A proposal from the Offeror that does not meet minimum experience requirements will be rejected. The Offeror must have a minimum of

1. The Firm should possess significant governmental audit experience.

2. Have an understanding and experience with auditing standards generally accepted in the United States of America and Government Auditing Standards that is sufficient to fulfill the responsibilities in the audit of the group financial statements and will conduct work on the financial information of the Client in accordance with those standards.

3. Understand government financial reporting that is sufficient to fulfill the responsibilities in the audit of the group financial statements.

4. The Firm is required to acknowledge that the Client is a component of the State of North Dakota as a group audit and the Firm understands and agrees to comply with the ethical requirements that are relevant to the group audit of the State of North Dakota (AU-C Section 600.22 a).

5. The Firm agrees to help provide any information affecting the State of North Dakota group audit consolidation process (AU-C Section 600.22 d).

C. CONTRACTOR PROJECT TEAM PERSONNEL

The contractor must inform the STATE of any changes to the contractor’s project team members named in the proposal, in advance and in writing. The personnel changes of key contractor project team members that are not acceptable to STATE may be grounds for the STATE to terminate the contract.

D. BACKGROUND CHECK

If STATE, including the state agency entering into this contract on behalf of the STATE, has the necessary authority under N.D.C.C. §12-60-24, STATE may require personnel that contractor assigns to perform work under this contract, including employees, contracted staff, subcontractors, or other individuals, to submit to a criminal history record check.