2024 Q-A 2 - 2024-05-23 RFP for Audit Services.pdf

Questions and Answers – 2 Solicitation: 2024-05-23 RFP for Audit Services for Clear Creek County, Colorado

1. Did the County have any audit adjusting journal entries and management letter comments in the 2023 audit? If so, would you be able to provide the governance / management letter with the audit adjusting entries included?

No adjusting entries, no management letter comments.

2. How many auditors worked on your audit in the prior year?

For the past three audit cycles, most work was completed remotely, when auditors were in person, there were two on site.

3. When do you expect fieldwork to be conducted and audit to be completed?

Closing entries and fund trial balances are available by the end of March and the audit should be complete and presented to the Board by the third week of May.

4. Were the audits mostly remote or mostly on-site? What are your expectations on this topic?

See questions number 2 above.

5. We audited Clear Creek County many years ago as staff of Swanhorst & Company. How was the County able to sustain operations with the closure of the Henderson Mine and reduction of value of the years? Is this something that had a lesser impact on the County's budget?

The County’s primary source of revenue, property tax, has declined substantially over the past eight years. However, residents approved a sales tax increase for emergency medical services in 2017 and road & bridge infrastructure in 2021 which has helped alleviate pressure for general fund operations.

Additionally, the County realized significant ongoing and long-term savings by replacing its payroll software and rebidding all lines of benefits.

6. It appears that Clear Creek County received ARPA and plans to spend further awards in 2024. How much ARPA funding is remaining at 12/31/2023? Will ARPA grant be fully spent in 2024?

Remaining at 12/31/23 - $1.28M. Spent YTD 2024 - $780k. The County expects to spend or obligate all funds by year-end.

7. Will the County need any assistance from the auditors with the preparation of the financial statements, application of GASB 87, 96, and 101, and/or other non-audit services?

Currently, the Finance Director prepares and completes all entries and implementation of new GASB standards. The Finance Director also prepares the Annual Comprehensive Financial Report (ACFR), including footnotes, the government wide statements, and the compliance section (Schedule of Expenditures of Federal Awards-SEFA and highway finance report). However, this may change with a new Finance Director. Proposers are requested to respond with two alternatives for pricing of audit services: 1. the Finance Director will prepare all financials, including the SEFA, and make the ACFR available to auditors by or before March 31, or 2. the auditors will prepare the ACFR, including footnotes and SEFA.

8. Do you expect any significant changes at the County that may add significant time to the audit in FY 2023 and in the future?

See answer to question number 7.

9. What did you like about the prior auditor's process and what improvements are you expecting with a new auditor?

The prior auditor was knowledgeable and accessible for questions and to review and comment on significant GASB entries. The County has not solicited audit services for several years and believes it is a good practice to rebid audit services periodically.

10. What was the prior year audit fee? Also, if possible, please provide a breakdown of the prior year audit fee?

$22,900, flat fee.

11. The County's audit RFP suggests that proposals should be mailed. Do you prefer the audit proposals mailed or are electronic submissions considered acceptable?

Please mail the proposal to the address listed in the RFP, you are welcome to submit electronically as well, but a hard copy is required.