23-24 -11 RFP for Audit Services~1.pdf

Lane Community College RFP 23/24-11 Audit Services

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LANE COMMUNITY COLLEGE

REQUEST FOR PROPOSAL

RFP 23/24-11

AUDIT SERVICES

ISSUE DATE: APRIL 26,2024

CLOSING DATE: MAY 27,2024 2:00 PM (Local Time)

SUBMITTAL LOCATION: https://bidlocker.us/a/lanecc/BidLocker

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INDEX

Part I Invitation Page 3

Part II Scope of Work Page 4

Part III Instructions to Proposers Page 7

Part IV Qualification, Evaluation & Award Page 10

Part V Contract Conditions Page 12

Part V I College General & Financial Data Page 18

Part VII Proposal Content & Analysis Page 19

Appendix Page 23

• Appendix A Analysis Sheet

• Appendix B Proposal Form

• Appendix C Fee Proposal Form

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PART I: INVITATION

1) INVITATION

Lane Community College of Eugene, Oregon, hereinafter, "College," invites proposals from a limited number of

Certified Public Accounting firms (hereinafter, "Proposer," or "Servicer," or "Firm," or "Contractor," or "CPA," or

"Auditor," or "Audit Services Provider,") to act as the College's Provider of Financial Audit Services.

The selected Proposer will be contracted to provide annual financial audit services and other associated work, as assigned.

Firms and individuals which are interested in providing these services and which qualify in accordance with the requirements stated herein are invited to submit proposals to accomplish the Scope of Work defined herein.

Lane Community College, a Community College District created within the context of Oregon Revised Statutes, is an

Equal Opportunity Employer.

2) SUBMITTAL OF PROPOSALS

Interested firms and individuals may submit responses to this invitation by completing the documentation requested herein and submitting it to:

https://bidlocker.us/a/lanecc/BidLocker

Not later than: May 27,2024 2:00 PM

Delivery is the sole responsibility of the proposer. Proposals not received by the time and date shown directly above will not be considered.

3) SINGLE POINT OF CONTACT (SPC)

Laura T. Aung

Director, Contract and Procurement

Lane Community College contractprocurement@lanecc.edu

4) SCHEDULE

Event Date & Time

Issue Request for Proposal April 26,2024

Deadline for submitting requests for scope clarification May 13, 2024

Answers to Questions / Requests for Clarification Issued (approx.) May 20 ,2024

RFP Protest Period Ends 7 calendar days prior to RFP Opening

Opening (Proposal Due) See RFP cover page

Presentations, Demonstrations, or Interviews (if needed) June 2024

Issuance of Notice of Intent to Award (approx.) June-July 2024

Award Protest Period Ends 7 calendar days after Notice of Intent to

Award

END OF PART I

https://bidlocker.us/a/lanecc/BidLocker mailto:contractprocurement@lanecc.edu

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PART II: SCOPE OF WORK

1) GENERAL DESCRIPTION

The Contractor shall perform the following work within the scope of this agreement:

a. To audit the general purpose financial statements of the College and KLCC Radio Broadcasting station accordance with generally accepted auditing standards and the standards for financial audits in effect at the time, such as those currently contained in Government Auditing Standards, issued by the Comptroller General of the United States, the

Single Audit Act of 1984, as amended, and the provisions of Office of Management and Budget (OMB) Circular A-133, if applicable, Audits of State and Local Governments and prescribed Minimum Standards for Audits of Oregon

Municipal Corporations, as applicable for audits of the college.

b. The audit should help to determine whether the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information and the respective changes in financial position and, where applicable, cash flows, thereof [and the respective budgetary comparison for the (indicate the major governmental funds involved)] in conformity with accounting principles generally accepted in the United States of America. In addition, to determine whether the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

c. To obtain an understanding of the components of internal control that is sufficient to assess the risks of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures. Because an audit of a government’s financial statements is based on opinion units, the auditor’s consideration of internal control in assessing the risks of material misstatement should address each opinion unit. The auditor should obtain a sufficient understanding by performing risk assessment procedures to (a) evaluate the design of controls and (b) determine whether they have been implemented. The auditor should use such knowledge to identify types of potential misstatements; consider factors that affect the risks of material misstatement;

and design tests of controls, when applicable, and subsequent procedures. In acquiring an understanding of and assessing internal control, the auditor should consider computer controls as well as the controls over manual portions of the system.

d. To plan and perform the audit to obtain reasonable assurance about whether the financial statements, including note disclosures, are free of material misstatement, whether caused by error or fraud, and material misstatements arising from illegal acts that have a direct and material effect on the determination of financial statement amounts.

e. To evaluate whether the government entity has taken appropriate corrective action to address findings and recommendations from previous engagements that could have a material effect on the financial statements or other financial data significant to the audit objectives.

f. To Fulfill the additional responsibilities and reporting requirements under Uniform Grant Guidance (2 C.F.R. Part 200), as applicable to the College. In accordance with federal rules, prepare the following separate written reports:

❖ Report on Supplementary Schedule of Federal Financial Assistance;

❖ Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs;

❖ Opinion on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance

Programs;

❖ Report on Compliance with the General Requirements Applicable to Federal Financial Assistance Programs;

and

❖ Report on Compliance with Specific Requirements Applicable to Non-major Federal Financial Assistance

Program Transactions.

g. The auditor shall communicate in a letter to management any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control

Page | 5 structure which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.

h. Auditors shall be required to make a written report of all irregularities and illegal acts of which they become aware and present such reports to the VP of Finance and Operations.

i. Review drafts of all reports and management letter(s) with the VP of Finance and Operations. and other college officials as may be appropriate and make necessary clarifications as may be appropriate, all before final publication.

j. Complete all field work by October 31 (including Financial Aid field work) directly following the year being audited and deliver to the College the above referenced reports no later than the October 31 immediately thereafter.

k. Prepare, print and assemble separate financial statements for KLCC and the College (KLCC is the college’s FM radio station; it receives partial funding from the Corporation for Public Broadcasting). The College’s

Comprehensive Annual Financial Report contains its Introductory section, General Purpose Financial

Statements, Supplementary Data (Combining and Individual Fund Financial Statements) and Schedules and

Other Financial Schedules, Statistical Section, Audit Comments (Disclosures and Comments Required by State

Regulations) and Grant Compliance reports and schedules as required for compliance with applicable Office of

Management and Budget (OMB) circulars, other Federal, State and Local laws and regulations and generally accepted accounting principles as may be applicable to the College.

l. The Contractor shall furnish the College with the following bound copies of these reports as well as a searchable

PDF version. All costs of formulation, printing, reproduction, binding, and delivery shall be borne by the

Contractor.

❖ KLCC 15 copies

❖ College 20 copies

m. File reports with the State of Oregon and federal government as required.

2) COLLEGE RESPONSIBILITIES AND PREROGATIVES

a. The VP (Finance and Operation) or her designee is the Contract Manager for all the work described herein and shall manage the Audit Services on behalf of the College.

b. The College shall provide on-site, secure, temporary office space with telephone for the period during which the audit field work takes place.

3) PUBLIC CONTRACT COMPLIANCE

A review of the College's public contract practices and procedures shall be done within the context of the normal scope of the audit.

4) TECHNICAL ASSISTANCE

a. As a part of the overall audit contract and included in the proposed fee for the overall College audit, the

College expects to receive from the Contractor a variety of technical assistance throughout the fiscal year.

This assistance would include answers to accounting, reporting, or internal control questions which could require telephone/visual conversations of five or ten minutes in length.

b. These types of assistance shall be rendered within the context of the overall fee and shall not be charged in addition to the agreed upon fee unless approved in advance as discrete items by separate Purchase Order.

5) CHANGES OF SCOPE AND ADDITIONAL WORK

The Contractor may be requested to perform special projects for the College. Because of variations in the demand for additional services from year to year, such work will be agreed upon in advance, contracted for, provided, and billed separately to the College on an hourly basis. All such work will be defined within a discrete purchase order stating maximum hours and fees. Hourly rates submitted by the proposer shall be used to ascertain costs of separately contracted services.

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In the event that audit findings require more intensive and detailed examination in addition to that which would be sufficient under normal circumstances, the Contractor shall provide all pertinent facts relative to the extraordinary circumstances together with the Contractor's estimate of the additional services and fees to the College required to resolve the issue(s). Any fees relating to such extensions of examination procedures shall be considered as additional fees subject to negotiation and such fees are not included within the scope of services to be performed under the original contract and the scope of work defined herein.

In the event that the College's ability to raise revenue is severely restricted (such as the result of severe limitation in funding), the College retains the right to reduce the scope of work and to negotiate a fair fee for the reduced scope.

6) MANAGEMENT LETTER AND OTHER REPORTS

Reports covering examinations of financial statements, compliance with grant programs, and management letters shall be a matter of public record following acceptance by the Board of Education. The audited financial statements may appear in all official statements or other documents as may be applicable.

7) PERIODIC REPORTS

Within the boundaries of propriety and confidentiality, the Contractor shall provide summary reports and associated information on all Audit activities, progress, incidents and occurrences when appropriate and/or as requested by the College from time to time.

8) ELECTIVE REPORTS

In addition to the final audit report and any associated formal management letter, the Contractor is encouraged to make reports to the Contract Manager, in letter form, which include any findings, observations, opinions, recommendations, options, controls, accounting systems, data processing alternatives, compliance with laws, rules and regulations, or any other matters related to the provision of audit services and the intent to provide sound financial management that come to the attention of the Contractor during the course of the contract and, in the opinion of the Contractor, warrant the attention of management.

9) CONTRACT TERM

The contract term should be an annual cost with the option of up to 4 yearly renewal terms.

END OF PART II

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PART III: INSTRUCTIONS TO PROPOSERS

1) DEFINITION OF PARTIES

Hereinafter Lane Community College shall be referred to as “College” or “LCC.” Persons, firms, agencies, partnerships, or companies submitting responses to this invitation shall be referred to as “Proposers” and the successful Proposer to whom the work is awarded shall be referred to as “Contractor” or “Vendor” or “Supplier.”

2) PROPOSERS’ REPRESENTATION

Proposers, by the act of submitting their proposals, represent that:

a. They have read and understand the Proposal Documents and their Proposal is made in accordance therewith;

b. They have familiarized themselves with the local conditions under which the work will be done to their satisfaction; and

c. Their Proposal is based upon the requirements described in the Proposal Documents without exception

(unless exceptions are clearly stated in the response).

3) CONDITIONS OF SUBMITTAL

By the act of submitting a response to this invitation the Proposer certifies that:

a. The Proposer and each person signing on behalf of any Proposer certifies, and in the case of a sole proprietorship, partnership or corporation, each party thereto certifies as to its own organization, under penalty of perjury, that to the best of their knowledge and belief, no member of the Board of Education or other officer, employee, or person, whose salary is payable in whole or in part by Lane Community College, has a direct or indirect financial interest in the proposal, or in the services to which it relates, or in any of the profits thereof other than as fully described in the

Proposer's Transmittal Letter submitted in response to this invitation;

b. The Proposer has examined all parts of the Request for Proposal, including all requirements and contract terms and conditions thereof, and, if its Proposal is accepted, the Proposer shall accept the contract documents thereto unless substantive changes are made in same without the approval of the Proposer;

c. The Proposer, if an individual, is of lawful age; is the only one interested in this proposal; and that no person, firm or corporation, other than that named, has any interest in the proposal, or in the contract proposed to be entered into;

and

d. The Proposer is duly licensed by the Oregon Board of Accountancy as a Certified Public Accountant and Municipal

Auditor.

4) INTERPRETATION OR CORRECTION OF PROPOSAL DOCUMENTS

a. Proposers shall promptly notify the College of any ambiguity, inconsistency, or error which they may discover upon examination of the Proposal Documents or the site and local conditions.

b. Proposers requiring clarification or interpretation of the Proposal Documents shall make a request email to contractprocurement@lanecc.edu.

c. The College will attempt to provide verbal clarifications where appropriate; however, any interpretations, corrections, or changes of the Proposal Documents shall be made by written, published Addenda.

Interpretations, corrections, or changes of the Proposal Documents made in any other manner will not be binding, and Proposers shall not rely upon such interpretations, corrections, and changes.

d. Should any doubt or difference of opinion arise between the College and a Proposer as to the items to be furnished hereunder or the interpretation of the provisions of this solicitation, the decision of the College shall be final and binding upon all parties.

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5) REQUESTS FOR ADDITIONAL INFORMATION

Requests for information regarding college services, programs, personnel, or financial systems, or any other information shall be submitted at the address in the invitation.

6) ADDENDA

a. Addenda will be posted in the same manner as the RFP and other related documents.

b. No addenda will be issued later than seven days prior to the date set for receipt of Proposals except an addendum, if necessary, postponing the date for receipt of Proposals, or withdrawing the invitation.

c. Each Proposer shall ascertain, prior to submitting a Proposal that the Proposer has obtained all Addenda issued, and each Addendum shall be acknowledged in the appropriate location on the Proposal Form.

7) COMPETITION

Respondents are encouraged to comment, either with their proposals or at any other time, in writing, on any specification or requirement within this RFP which the respondent believes will inordinately limit competition.

8) COST OF RFP AND ASSOCIATED RESPONSES

This RFP does not commit the College to paying any costs incurred by any Proposer in the submission or presentation of a proposal, or in making the necessary studies for the preparation thereof. Responses to this solicitation are purely voluntary.

9) RIGHT TO CLARIFICATION AND ADDITIONAL RESEARCH

a. The College reserves the right to obtain clarification of any point in a Proposal or to obtain additional information necessary to properly evaluate a particular Proposal. Failure of a Proposer to respond to such a request for additional information or clarification could result in a finding that the Proposer is non-responsive and consequent rejection of the Proposal.

b. The College may obtain information from any legal source for clarification of any Proposal or for information on any Proposer including, but not limited to, the Proposer’s clients, police files, insurance files and agencies, credit bureaus and professional organizations. The College need not inform the Proposer of any intent to perform additional research in this respect or of any information thereby received.

c. The College may perform, at its sole option, investigations of the lowest responsible proposer. Information may include, but shall not necessarily be limited to credit history, recent financial statements, current litigation, bonding capacity and related history, contracting references, etcetera. All such documents, if requested by the College become part of the public records and may be disclosed accordingly . If the

College finds that a bidder or proposer is unable to demonstrate financial responsibility in accordance with

ORS 279B.110 in the sole judgment of the College, then that respondent will be declared a non-responsible proposer and the subject proposal shall be rejected in accordance with OAR 279B.060. Following such declaration, a new lowest responsive proposer shall be designated and investigations to assure that respondent’s financial responsibility shall be undertaken.

10) QUANTITY OF PROPOSALS

Proposers may submit one, and only one Proposal not more than 25 pagers.

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11) REJECTION OF PROPOSALS

The College reserves the right to reject any or all proposals received as a result of this request. Proposals may be rejected for one or more of the following reasons, including but not limited to:

a. Failure of the Proposer to adhere to one or more of the provisions established in this RFP;

b. Failure of the Proposer to submit a proposal in the format specified herein;

c. Failure of the Proposer to submit a proposal within the time requirements established herein;

d. Failure of the Proposer to adhere to ethical and professional standards before, during, or following the proposal process.

The College may reject any proposal not in compliance with all prescribed public procurement procedures and requirements, and may reject for good cause any or all proposals upon a finding of the College that it is in the public interest to do so.

12) MODIFICATION OR WITHDRAWAL OF PROPOSAL

a. A Proposal may not be modified, withdrawn, or canceled by the Proposer for 60 (sixty) calendar days following the time and date designated for the receipt of Proposals.

b. Prior to the time and date designated for receipt of Proposals, Proposals submitted early may be modified or withdrawn or modified by retracting and resubmitting the proposal at https://bidlocker.us/a/lanecc/BidLocker.

c. Withdrawn Proposals may be resubmitted up to the time designated for the receipt of Proposals provided that they are then fully in conformance with these Instructions to Proposers.

13) PROPOSAL OWNERSHIP

a. All proposals submitted become and remain the property of the College and, as such, are considered public information and subject to public disclosure within the context of the federal Freedom of Information Act and Oregon Revised Statute 279B.055.

b. Unless certain pages or specific information are specifically marked "proprietary" and qualify as such within the context of the regulations stated in the preceding paragraph, the College shall make available to any person requesting information through the College's processes for disclosure of public records, any and all information submitted as a result of this solicitation without obtaining permission from any Proposer to do so.

14) PREVAILING OPINION

Should any doubt or difference of opinion arise between the College and a Proposer as to the items to be furnished hereunder or the interpretation of the provisions of this RFP, the decision of the College shall be final and binding upon all parties.

15) RECIPROCAL PREFERENCE

In determining the lowest responsible Proposal, the College shall, for the purpose of awarding the contract, add a percentage increase onto the proposal prices of a nonresident proposer equal to the percent, if any, of the preference given to the proposer in the state in which the proposer resides, in accordance with ORS 279A.120.

END OF PART III

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Part IV: QUALIFICATIONS, EVALUATION, AND AWARD

1) REQUIREMENTS

Requirements which the Proposer shall meet in order to qualify for consideration for award of the work are:

a. The Proposer shall employ accountants properly licensed by the Oregon State Board of Accountancy as

Certified Public Accountants and as Municipal Auditors;

b. The Proposer shall meet the independence standards of the GAO Standards for Audit of Governmental

Organizations, Programs, Activities and Functions, most current revision; and

c. The Proposer shall not have a record of substandard work; the College will verify this requirement by communication with the Oregon State Board of Accountancy and as many other references as may be desired. (Also see submittals section for requirement to provide copy of latest peer review report).

d. The Proposer shall be qualified and experienced in performing Single Audits of institutions of higher education.

e. The Proposer shall demonstrate, to the College's satisfaction, ability to provide complete and broad-based

Audit Services, and shall demonstrate a history of same for public agencies, educational institutions, and school districts, especially in a labor/management setting.

2) DIVESTITURE

The American Institute of Certified Public Accountants' Rules on Independence, as interpreted by the College, requires that assigned partners and principals of the successful Proposer divest itself of all holdings of the College indebtedness. Submission of a proposal in response to this invitation binds the Proposer to compliance with this stipulation.

3) EVALUATION AND SELECTION PROCESS

The following steps shall be taken to analyze and rank the proposals, and to finalize an agreement for the provision of

Audit Services Provider.

a. Written proposals submitted to the College in accordance with this RFP will be evaluated by a review committee convened for the purpose of analyzing the responses.

b. Interviews of selected Proposers shall be held at the discretion of the committee and are tentatively scheduled for the second week following the date that proposals are due; Proposers are asked to have appropriate staff available during that time period.

c. Proposals shall be ranked by the review committee based on evaluation of responses and oral interviews (if any), with the first ranked Proposer being that Proposer which is deemed to be the most appropriate and fully able to perform the services and the second-ranked Proposer being the next most appropriate, etc., all in the sole judgement of the review committee.

d. Respondents will be ranked in the format of Appendix A to this RFP. Any Proposer's response to this RFP shall be considered de facto permission to the College to disclose Appendix A and associated summary, when completed, to selected viewers at the sole discretion of the college.

e. The review committee in conjunction with the Vice President of College Operations will then submit its ranked list to the college President. If approved, a recommendation will be submitted to the Board of

Education, the top-ranked Proposer usually being awarded the contract. If, for any reason, the top-ranked

Proposer is unacceptable to the President or the Board of Education, the remaining Proposers will be considered in the order of their ranking and the process will be repeated until a Proposer acceptable to the

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College is identified.

f. It is the intent of the College to award the contract on the basis of the most attractive offer considering experience, capabilities, and services to be provided (per ORS 279B.070).

4) AWARD INTENT:

It is the intent of the College to award the contract and associated work to one contractor only; this award will not be partitioned among several contractors except under extraordinary circumstances. The College reserves the right to make multiple awards if such awards are in the best interest of the College.

6) AWARD PROCESS

Award of the contract is for one year at a time and is accomplished by the issue of an annual Purchase Order incorporating this entire Request for Proposal, the Proposer's response and any clarifications, addenda or additions which may evolve during the process of invitation, analysis, and selection. All these documents constitute the contract documents. The contract resulting from this solicitation may be renewed for four additional one-year periods beyond the original or first year.

7) PAYMENT

Payment will be in a lump sum for each monthly invoice within 30 (thirty) days following receipt and approval of a valid invoice (a valid invoice is an invoice on which all necessary items are shown including substantiation of requested payments, purchase order number and address to which the payment is to be sent).

8) CONTRACT MANAGEMENT

By delegation from the Board of Education through the President of the College, the Vice President of Finance and

Operation is the Contract Manager for all the work described herein and shall manage the Audit services on behalf of the College.

END OF PART IV

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PART V: CONTRACT CONDITIONS

THIS AGREEMENT is entered into by and between Lane Community College, a Community College District of the State of

Oregon, hereinafter called college, and the selected Proposer, hereinafter called Contractor or Provider.

WHEREAS, the College has need for the services of an Audit Services Provider with the particular training, ability, knowledge, and experience possessed by the Contractor, in consideration of the agreed upon fees the Contractor agrees to provide during the period(s) indicated in the attached documents the services indicated herein.

In providing these services, it is understood and agreed that all conditions herein shall apply to all services rendered within the context of this invitation and resulting award.

1) CONTRACTOR STATUS

The Contractor is engaged as an Independent Contractor and shall be responsible for all Federal and State taxes as applicable to this contract and the payments made therewith.

2) CONTRACTOR SUPERVISION AND CONTROL

Whether the Contractor is a corporation, partnership, other legal entity, or an individual, the Contractor is an

Independent Contractor. If the Contractor is an individual, the Contractor's duties will be performed with the understanding that Contractor is a self-employed person and has special expertise as to the services which the

Contractor is to perform and that the Contractor is customarily engaged in the independent performance of the same and/or similar services for others. The manner in which the services are performed shall be controlled by the

Contractor; however, the nature of the services and the results to be achieved shall be specified by the College.

Contractor is not to be deemed an employee of the College and has no authority to make any binding commitments or obligations on behalf of the College except to the extent expressly provided herein.

3) REPORTING OF PAYMENTS

The College shall report the total amount of all payments to the Contractor including any expenses, in accordance with Federal Internal Revenue Service and State of Oregon Department of Revenue regulations.

4) ELIGIBILITY FOR PUBLIC ASSISTANCE OR SUPPORT

The Contractor shall not be eligible for any Federal Social Security, State Worker's Compensation, Unemployment

Insurance, or Public Employee's Retirement System benefits from subject contract payments, and the Contractor shall be responsible for same as a self-employed individual/firm.

5) INDEMNIFICATION

The Contractor agrees that performance under this contract is at the Contractor's sole risk and that the Contractor shall carry "errors and omissions" insurance for the purpose of indemnifying the College's Board of Education, agents, officers and employees, from any and all liability for damages, costs, losses and expenses resulting from, arising out of, or in any way connected with the Contractor's failure to perform fully hereunder or any associated negligence by Contractor.

In the event any such action or claim is brought against the College, the Contractor shall, upon notice of the expense, promptly satisfy any judgment adverse to the College and shall reimburse the College for any loss, cost, damage, or expense (including legal fees) suffered or incurred by the College.

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6) TERMINATION OF CONTRACT

a) The contract resulting from this solicitation may be terminated at any time by the College for good cause.

Good cause may be such items as breach of contract by the Contractor, failure of the Contractor to fulfill requirements for insurance, workers compensation, professional registration, bonding or licensing, failure of the Contractor to perform in accordance with any requirements of the contract including the meeting of delivery dates, invoicing, filings, and other requirements.

b) This contract may also be terminated for convenience of the College without warning or advance notice. If the contract is terminated for convenience of the College, any monies owing to either party shall be paid within thirty (30) days of contract termination.

7) LEGAL COSTS AND VENUE

a) In the event of litigation involving the terms and conditions of this contract or the performance hereunder, the prevailing party shall be entitled to recover reasonable attorney fees, costs and expenses from the losing party, including all such fees, costs and expenses of appeal.

b) State of Oregon law shall prevail throughout the execution of this contract and any performance hereunder.

Any litigation undertaken with respect to the execution of, or performance within the context of, this contract shall take place within the State of Oregon and State of Oregon Laws shall prevail throughout any such litigation.

c) The Contractor agrees that in the event suit is instituted by the College for any default on the part of the

Contractor hereunder and the Contractor is found liable, the Contractor shall pay to the College all costs, expenses (expended or incurred) by the College in connection therewith, and reasonable attorney fees.

d) All actions relating to this contract shall be tried before the courts of the State of Oregon to the exclusion of all courts which might have jurisdiction apart from this provision. Venue in any action shall lie in the Circuit

Court of Lane County, Oregon.

8) RECOVERY OF COSTS IN EVENT OF TERMINATION

In the event of a termination of this contract by the College due to a breach of contract by Contractor, College may complete the work by contracting with another appropriately qualified firm or individual. Contractor shall be liable to the College for any reasonable costs or losses incurred by the College arising out of or related to the breach. The

College may withhold payment of reasonable portion of monies due the Contractor for work performed to the date of termination and the College may offset any amount due Contractor against the costs and losses incurred by the

College.

9) RECORDS AND INSPECTION OF SAME

The Contractor shall maintain its records generated within the context of this contract for a period of not less than three full contract years following completion of the then current contract year. Upon reasonable advance notice, the

College or its authorized representatives may, from time-to-time, inspect and make appropriate copies of the

Contractor's records that relate to this contract.

10) INSURANCE

a) The Contractor shall maintain in force for the duration of this contract the insurance coverage specified below. Each policy required by these provisions shall be written as a primary policy, not contributing with or in excess of any coverage which the College may carry. A copy of each policy or a certificate satisfactory to the College shall be submitted to the College prior to commencement of the work each year. Unless otherwise specified, each Certificate of Insurance shall show an insurance carrier licensed to do business in

Page | 14 the State of Oregon and shall contain an endorsement entitling the College to not less than 30 days prior written notice of any material change, non-renewal, or cancellation.

b) The adequacy of all insurance required by these provisions shall be subject to approval by the College.

Failure to maintain any insurance coverage required by this contract shall be cause for immediate termination of this contract by the College.

11) COMPREHENSIVE GENERAL LIABILITY

The Contractor shall maintain a broad form comprehensive general liability and automobile liability insurance policy with coverage of not less than $1000,000 combined single limit per occurrence, with aggregate of $2,000,000 for bodily injury, personal injury, or property damage. Such policy shall contain a contractual liability endorsement naming the College as an additional insured, in a form satisfactory to the College, and shall expressly provide that the interest of the College shall not be affected by the Contractor's breach of policy provisions.

12) WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE

The Contractor shall maintain a current policy of workers' compensation and employers' liability coverage. The

Contractor shall comply with the Oregon Workers' Compensation law (ORS 656) by qualifying as a carrier-insured employer or as a self-insured employer and shall strictly comply with all other applicable provisions of such law. The

Contractor shall provide the College with such further assurances as the College may require from time-to-time that the Contractor is in compliance with these workers' compensation coverage requirements and the workers' compensation law.

13) PROFESSIONAL LIABILITY INSURANCE

The Contractor shall maintain professional liability insurance ("errors and omissions") providing coverage in an amount not less than $1,000,000 with 2 years of tail insurance, with a deductible of not more than $10,000, to protect the Contractor from claims for errors or omissions arising from the Contractor's work under this agreement. Failure to maintain professional liability insurance in accordance with this paragraph shall be cause for immediate termination of this contract by the College.

14) LIMITATION OF LIABILITY

The Contractor shall not be liable for failure to perform its obligations herein when such failure is unequivocally the result of acts beyond the Contractor's control (force majeure); some, but not all, such acts are acts of God or of the public enemy, acts of local, state or federal government in either their sovereign or contractual capacity, fires, floods, civil disobedience, strikes, lock-outs, freight embargoes, inclement weather, errors or defects in the data supplied by the College, or other such failures and shortcomings.

15) SUBCONTRACTING AND ASSIGNMENT

The Contractor shall not subcontract any work under this contract or assign this contract, in whole or in part, or any right or obligation hereunder, without the College's prior written approval. The Contractor shall require any approved subcontractor or assignee to agree, as pertains to the portion subcontracted or assigned, to comply with all obligations specified in this contract. Notwithstanding the College's approval of a subcontractor or assignee, Contractor shall remain obligated for full performance of this contract and the College shall incur no obligation to any subcontractor or assignee.

16) DISCRIMINATION

The Contractor agrees not to discriminate against any client, employee or applicant for employment or for services, because of race, creed, color, national origin, gender, ethnic background, or age with regard to, but not limited to, the

Page | 15 following: Employment upgrading, demotion or transfer; Recruitment or recruitment advertising; Layoffs or termination; Rates of pay or other forms of compensation; Selection for training; Rendition of services. It is further understood that any Contractor who is in violation of this clause shall be barred forthwith from receiving awards of any kind from the College, unless a satisfactory showing is made that discriminatory practices have terminated and that a recurrence of such acts is unlikely.

17) OWNERSHIP OF WORK

All reports from the Contractor which result from this contract shall be the exclusive property of the College and shall be delivered to the College upon completion of the work or the termination of this contract.

18) NOTICES

Notices in compliance with this contract shall be deemed given when personally delivered or upon deposit in the

United States mail, postage fully prepaid, certified, and return receipt requested, addressed to:

College: Address on Cover of this RFP

Contractor: Address given in Response Documents to RFP

Or such other address as either party may provide by notice given in accordance with this provision.

19) PERFORMANCE STANDARDS AND COMPLIANCES

All work performed within the context of this agreement shall be in compliance with:

a) Oregon Revised Statute Chapter 656;

b) Oregon Revised Statute Chapters 279A, 279B and 279C;

c) Oregon Revised Statute 30.26 through 30.30 (public agency torts);

d) Oregon Administrative Rules Chapter 125;

e) US Code Title 42 (especially sections 1983, 1985 and 1988); and, Oregon and local laws and regulations; and other Federal, State and Local laws and regulations as may be applicable to the College. Contractor shall comply with all federal, state, local and College laws, policies, rules and regulations concerning environmental health and safety and workers’ compensation. Contractor shall permit inspec tion of all service units under its control by the applicable authority and shall comply in a timely manner with all directives issued by such authorities and regulatory bodies.

20) AUDIT STANDARDS

All work performed within the context of this agreement shall be in accordance with Generally Accepted Auditing

Standards (GAAS), promulgated by the American Institute of Certified Public Accountants; the Minimum Standards for

Audits of Municipal Corporations as prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy; Generally Accepted Government Auditing Standards (GAGAS), Standards for Audit of Governmental

Organizations, Programs, Activities, and Functions, issued by the Comptroller General, U.S. General Accounting Off ice;

the Uniform Single Audit Act of 1984; Oregon and local laws and regulations; Office of Management and Budget

(OMB) Circular A-133 and other applicable circulars as may be released by OMB from time to time, and other federal, state and local laws and regulations as may be applicable to the College.

21) REMUNERATION / FEES

Except for special projects assigned by the college with a scope clearly outside of the requirements stated herein, the

Provider shall be compensated entirely by fees for services directly related to the provision of audit and related services as defined herein.

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22) CONTRACT ENGAGEMENT TERM AND CONDITIONS THERETO

a) This contract, unless otherwise interrupted or canceled, shall be valid for one year from the date of initiation and will be activated by Purchase Order for consecutive one-year periods unless terminated in accordance with the conditions outlined below. At the sole discretion of the college the contract may be renewed for up to three consecutive one-year periods directly following the initial or first year.

b) The annual contract shall be renewed each year by Purchase Order. In every case, the enabling Purchase

Order shall incorporate this document in its entirety, by reference, the Contractor's response submitted in answer to the invitation herein, and any other modifying documents such as cumulative change orders, addenda and renegotiated fee schedules. These documents, in their entirety, shall be known as the contract documents and shall, in their entirety, state and control the activities of the parties to this contract.

23) CONTRACT TERMINATION CONDITIONS

Notwithstanding other portions of this agreement, this contract may be terminated if any of the following actions take place —:

a) The Contractor is no longer qualified as an Audit Provider licensed to practice that profession in the State of

Oregon;

b) Any suit is filed against the College regarding the Contractor's performance, which, in the opinion of a neutral third-party attorney, is significant and substantive and has a reasonable likelihood of success;

c) The Contractor engages in anti-competitive activities such as blocking competition, displays of favoritism, improper patronage, fiscal impropriety or any other activities which, in the sole judgment of the College, are not in concert with the mission and scope of work stated above;

d) Failure to reach agreement on subsequent-year fees.

e) Other valid reasons, for example, may be for lack of funds, for unacceptable performance of the Contractor, for lapse of required services provision, for lapse of required registrations or insurance coverage, or for any other documentable reason.

f) The contract may be canceled by the delivery of a certified letter or email from the President of the College, at his or her sole discretion, giving thirty calendar days' notice of intent to cancel. The notice shall give reason for termination of the contract. At the end of the thirty-day period, if the notice is not rescinded by email, certified or registered mail from the President, the contract shall be deemed to have been canceled.

24) SUBSEQUENT YEAR FEES

a) Each subsequent year's proposed new fees shall be submitted to the College by the Contractor not later than the immediately preceding March 1 for review, negotiation, and finalization. If a settlement is not reached by March 30, the College may, at its sole discretion, solicit proposals for the services stated herein from other Contractors and, at its sole option, terminate the agreement on the basis of inability to reach an agreement on remuneration.

b) For each fiscal year that this contract is renewed a new audit fee and schedule of fees for additional services shall be calculated. The schedule of fees applicable to the first contract year shall be those submitted with the selected proposal as may be modified during the clarification and award process. Thereafter, the audit fee for each subsequent fiscal year shall not exceed the previous year's fee, multiplied by the percentage increase in the Western Region (Cities of 50,000 to 1,500,000) Consumer Price Index (CPI), All Items, according to the U.S. Department of Labor, Bureau of Labor Statistics, as determined using December of each calendar year as the comparison point. The Fee Schedule for additional services shall be computed annually by the

College Finance Department after the Contractor provides the regular hourly rate information for the applicable year. Following such calculation, the College Finance Department shall prepare the appropriate

Page | 17 purchase order for the renewal year's audit fee with the new fee schedule for additional services attached.

25) INTEGRATION AND SEVERABILITY

This contract embodies the entire agreement of the parties. There are no promises, terms, conditions or obligations other than those contained herein, incorporated within the enabling purchase order, either directly or by reference, and understood to be the contract documents. This contract shall supersede all prior communications, representations, or agreements, either oral or written, between the parties. This contract shall not be amended except in writing, signed by both parties. If any of the provisions herein are determined to be invalid under any local, state or federal stature, regulation, or rule of law, such provision shall be deemed omitted from this document. Each provision of this agreement is severable, and if any provision is held to be unenforceable or is vacated by mutual agreement of the parties in writing, the remainder of the provisions shall remain unchanged an in effect, undiminished and unchanged.

26) INTERGOVERNMENTAL PARTICIPATION

a. Pursuant to Oregon Revised Statute 279A.215, other governmental agencies, bodies, or districts may participate in the award resulting from this solicitation as if said agencies had generated this solicitation and made this award on their own behalf. Such participation shall be enabled and inaugurated on the basis of an intergovernmental agreement between the Participating Agency and the College.

b. The Contractor shall have the option of declining participation in any such agreement; that is, Contractor participation in provision of services resulting from intergovernmental agreements shall be voluntary. If the Contractor chooses to participate in such agreements all agency relationships including those for contract administration, service provision, approvals, billing and collections shall be between the Participating Agency and the Contractor; the College, except for its enabling agreement, shall not participate in any aspects of commercial activity or contract administration between the Contractor and the Participating Agency.

c. If the Contractor agrees to participate, all such participation shall be on the basis of this solicitation and the resulting award except those reasonable changes in pricing and terms may be negotiated directly between the Participating

Agency and the Contractor to accommodate differences in distances and local conditions. All such changes shall be solely between the Contractor and the Participating Agency. The Contractor shall report all commercial activity resulting from this solicitation and award to the college when requested to do so.

d. Any such participation by the Contractor and any contracts negotiated by the Participating Agency with the

Contractor shall have no bearing and no effect upon the contract between the college and the Contractor.

e. Contractor shall be solely responsible for its own labor relations with any trade or union and their representatives and shall negotiate and adjust, in good faith, any and all disputes arising out of Contractor's operations with employees and/or unions representing its employees. Contractor shall comply with all federal, state, and local laws, policies, College's collective bargaining agreements, rules, and regulations concerning employment and labor relations.

END OF PART IV

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PART VI: COLLEGE GENERAL AND FINANCIAL DATA

1) BACKGROUND

Lane Community College is a comprehensive, two-year, public college founded in 1964. Lane serves a 4,600 square-mile area from the Cascade Mountains to the Pacific Ocean. More than 10,000 people take one or more classes at

Lane each year (unduplicated headcount) in recent years. Congruent with its mission, Lane offers a broad range of educational programs leading to four associate degrees: associate of arts/Oregon transfer, an associate of science, an associate of general studies, and associate of applied science. All Lane educational programs are based on recognized fields of study and are approved by the Higher Education Coordinating Commission (HECC) as sufficient in content and length.

2) FINANCIAL DATA

Additional Financial data, including prior years audited financial statements, budget development and financial projections are available on-line.

Audit Reports: https://www.lanecc.edu/collfin/audit/audit-reports

Budget Development: and Financial Projections: https://www.lanecc.edu/budget

END OF PART V

https://www.lanecc.edu/collfin/audit/audit-reports https://www.lanecc.edu/budget

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PART VII: PROPOSAL CONTENT AND ANALYSIS

1) PROPOSAL ANALYSIS PROCESS

Proposals shall be analyzed on the following basis:

Proposals will be read by the members of the review committee. Proposals will be divided into two groups, those which are considered responsive and responsible, and those which are not. Of those considered responsive and responsible, proposals will be ranked in terms of the evaluation factors shown in Appendix A;

Note: "Responsive" means that the proposal has complied with all the requirements of this invitation;

"Responsible" means that the Proposer has been truthful, that pertinent negative information has not been withheld, that the…