Audit Guide QA 6-11 -2020 Final.docx

Audit Guide Revision Questions and Answers June 10, 2020

1. Section V, A.2, “Prior Experience”, it states that - “the offeror should explain its prior experience updating auditing documents and processes”. Will the proposed personnel’s past experiences in preparing audit documentation, processes and audit reports be acceptable?

A. We want the offeror to demonstrate that they have experience updating guidance and policies related to preparation of audit documentation and audit processes, not just first-hand experience preparing audit documentation and reports. We will accept submission of materials related to preparing audit documentation, processes, and audit reports. However, those types of materials may not be sufficient to demonstrate proficiency and prior experience with the type of work we require of proposed personnel.

2. Section V, A.3, “References”, it states that “the offeror shall provide the current name, address, contact information, and a project description for at least three client references with whom the offeror has worked in the past three years.” If a firm is established for less than two years, will it be acceptable if its proposed personnel, not the firm itself, have similar required experiences?

A. Experience of proposed personnel is acceptable so long as the OIG is able to contact the reference.

3. Section V, A.4, “Staff Qualifications”, it states that “The proposal shall demonstrate that proposed staff have the knowledge and prior experience with federal grantees, federal grantors, LSC, grant audits, the Uniform Guide, non-profit audits, Federal Register notices, and any other relevant experience.” Will it be acceptable If the proposed personnel have all the required knowledge and experience except for prior LSC experience?

A. Prior experience with LSC is not required. The OIG will weigh all past performance collectively to determine a contractor’s ability to perform the work.

4. Section III, “Statement of Work”, it states that “the offeror should conduct interviews with all relevant stakeholders to ensure comprehensive understanding of LSC, the OIG, and the grantee financial statement audit process and OIG oversight of the process. Interviews may include LSC staff, OIG staff, LSC grantees, IPAs hired to conduct grantee audits, and other audit contractors who work with the OIG”. Is it anticipated that full cooperation from all relevant stakeholders will be obtained to ensure work will progress as planned?

A. The OIG will ensure that all necessary stakeholders will participate with the contractor’s efforts. The contractor and the OIG should work together to determine the most appropriate and necessary stakeholders who will participate.

5. Will out of town travel be required?

A. No out of town travel will be required.

6. What is LSC OIG’s anticipated timing for issuing the award?

A. We anticipate issuing an award in August.

7. Is remote work an option except in situations where in-person interviews and meetings are conducted after on-site restrictions are lifted?

A. Remote work is an option. The OIG anticipates that all work will be done remotely with the exception of meetings and interviews. Meetings and interviews may be done via videoconference in light of the current pandemic.

8. Can the OIG provide the general timeframe of when draft and final audit manual will be issued after the award issuance?

A. We ask that the contractors provide a schedule indicating how long they anticipate the revision will take, including allowing time for the Federal Register Notice and response.

9. When was the last time the audit guide was updated? Was this work contracted out?

A. The Audit Guide was last updated in 1996, but guidance has been updated using audit bulletins and other, similar notices. The previous Audit Guide update was completed internally.

10. Does the OIG have an estimate of the level of effort for this engagement?

A. The OIG does not have an estimated level of effort. We ask that the contractor provide an estimated level of effort based on their knowledge and experience, as well as their review of our current Audit Guide.

11. If available, could you please provide a copy of the most recent audit guide?

A. The link to the most recent Audit Guide is provided in the RFP. It is also here for convenience. https://oig.lsc.gov/images/96guide.pdf. An example bulletin can be found here: https://www.embroker.com/services/professional-liability-insurance/

12. Due to the current working environment, will the contract allow for remote work?

A. Yes. The OIG anticipates that all work will be done remotely with the exception of meetings and interviews. Meetings and interviews may be done via videoconference in light of the current pandemic.

13. Does the OIG have an anticipated due date for the final audit guide?

A. We have a public comment estimation date of June 2021. The comment period may range from 30 to 60 days, depending on the extent to which audit procedures changes as a result of the revisions to the Audit Guide. We then anticipate a publication date of early October 2021.

14. For staff qualifications, are there any key personnel requirements?

A. A key staff member must possess a CPA. He / She should demonstrate extensive experience leading similar projects. He / She should have expert knowledge interpreting, applying and developing accounting, audit, and other standards. Other professional certifications, such as Certified Internal Auditor, PMP, etc. are desired, but not required. .

15. Do the references count against the 10-page limit?

A. The 10-page limit should include technical qualifications, past performance, and a description of staffing. It does not include cover page, Table of Contents, cover letter, staff resumes, or references.

16. The instructions states, “The offeror’s proposal should be no more than 10 pages long…” Is the 10-page limit inclusive of the “Technical qualifications” excluding a cover page, the table of contents and a cover letter?

A. The 10-page limit should include technical qualifications, past performance, and a description of staffing. It does not include cover page, Table of Contents, cover letter, staff resumes, or references.

17. The certification states, “The individual signing certifies that the Offeror is a properly licensed Certified Public Accountant.” Will OIG please consider amending this question to read, “The individual signing certifies that the Offeror is either (1) a properly licensed Certified Public Accountant or (2) consulting firm and will assign an individual to this work who is a properly licensed Certified Public Accountant”?

A. We believe that having a CPA on the project meets the needs of the project. The individual signing does not need to be a CPA, so long as one of the key staff is a CPA. If needed, we can amend the certification to reflect this clarification.

18. The certification states, “The individual signing certifies that the firm complies with the GAO requirement of an external quality control review at least once every three years, where applicable.” Will OIG please consider amending this question to read, “The individual signing certifies that the firm either (1) complies with the GAO requirement of an external quality control review at least once every three years, where applicable or (2) the Offeror is ISO 9001:2015 Certified demonstrating an external quality control review at least once every three years”?

A. Because this project requires significant knowledge of and compliance with Generally Accepted Government Accounting Standards, we will not adjust the certification. Additionally, we feel that ISO 9001:2015 is not applicable to this project.

19. The certification states, “The individual signing certifies that the Offeror carries professional malpractice insurance.” Will OIG please consider amending this question to read, “The individual signing certifies that the Offeror either (1) carries professional malpractice insurance or (2) the Offeror carrier Professional Liability - Errors and Omissions”?

A. Yes. We will amend the certification as needed to allow the offeror to carry Professional Liability – Errors and Omissions instead of professional malpractice insurance.

20. The RFP does not specify an anticipated start date and period of performance. For purposes of the offeror’s response, what date should we use for the start date and period of performance. In addition, is there a date the OIG would like the completed revised Audit Guide to be completed?

A. We anticipate the start date to be no later than November 2020. We anticipate a public comment date of June 2021 (response to Q#13). The comment period may range from 30 to 60 days. (response to Q#21). Therefore, we estimate a publication date of early October.

21. For purposes of building a project plan, how long does the OIG anticipate it will need for the OIG to review and provide feedback to the offeror on both the Draft Updated Audit Guide and the Finalized Audit Guide.

A. We will need 30 days to review and provide feedback on the Draft Audit Guide and another 30 days for the Finalized Audit Guide.

22. It appears the Audit Guide provided via the link in the RFP was last revised in 1996. Is this correct? If yes, what has prompted the OIG to update the Audit Guide now? If the Audit Guide was revised after 1996, will the latest version be provided?

A. The Audit Guide was last updated in 1996. The Audit Guide provides a uniform approach for LSC grantee audits. It therefore requires revision to incorporate changes to public laws, LSC regulations, auditing standards, or other guidelines that have changed since it was last revised.

23. The RFP states, “Some meetings or in person interviews may occur at LSC offices (3333 K St., NW, Washington, DC 20007).” Due to the Pandemic, would the OIG consider allowing the meetings or interviews to take place via video conference?

A. The OIG will hold meetings via video conference (primarily with Microsoft Teams) instead of in person for the duration of the pandemic.

24. Does the OIG have an estimated timeframe or period of performance for this engagement?

A. We anticipate the start date to be no later than November 2020. We anticipate a public comment date of June 2021 (response to Q#13). The comment period may range from 30 to 60 days. (response to Q#21). Therefore, we estimate a publication date of early October.

25. Do the resumes count against the 10-page limit?

A. The 10-page limit should include technical qualifications, past performance, and a description of staffing. It does not include cover page, Table of Contents, cover letter, staff resumes, or references.

26. Is the purpose of this engagement primarily to ensure the Audit Guide is updated to comply with laws, regulations and professional standards, or is the purpose to re-engineer the audit guide to make it more effective and improve the quality?

A. The purpose of this engagement is to accomplish both compliance with laws, regulations, and standards, and to re-engineer the Audit Guide as the contractor deems appropriate.