25135125 FY25-FY27 ANNUAL INDEPENDENT AUDIT _ RELATED SERVICES-RFP FINAL.pdf

REQUEST FOR PROPOSALS

CITY OF NEW BEDFORD, MASSACHUSETTS

FY25-FY27 Annual Independent Audit and Related Services

RFP #25135125

Proposals Due: Friday, May 2, 2025

Jonathan F. Mitchell Mayor

Auditor’s Office 133 William Street New Bedford, MA 02740

Table of Contents

Page

1. Advertisement 3-4

2. Section I. Instructions to Proposers

5-8

3. Section II. General Requirements

9-11

4. Section III. Scope & Specifications of the Work

11-21

5. Section IV. Comparative Evaluation Criteria

21-23

6. Section V. Selection Process

7. Sample Contract

25-33

Exhibits: Required Forms

Exhibit A – Price Proposal

35-36

Exhibit B – Technical Proposal Certification

Exhibit C – Certificate of Non-Collusion & Tax Compliance

Exhibit D – Vote of Corporation or LLC Certificate of Incumbency

39-40

Exhibit E – Debarment Certification

CITY OF NEW BEDFORD

MASSACHUSETTS

Advertisement

REQUEST FOR PROPOSALS #25135125

FY25-FY27 Annual Independent Audit and Related Services

The City of New Bedford Purchasing Department, in conjunction with the Office of the City Auditor, is seeking proposals for annual independent audit and related services for a three-year period from July 2025 through June 2028. The bidding and award of this Contract will be under the provisions M.G.L. Chapter 30B and 2 CFR 200. Minority and women-owned businesses are encouraged to submit proposals.

Copies of the RFP may be obtained beginning on Wednesday, April 2, 2025, by visiting the City of New Bedford webpage, https://www.bidnetdirect.com/massachusetts/newbedford, or by emailing purchasing@newbedford-ma.gov. Only interested parties who have downloaded documents or otherwise registered their interest in this solicitation via Bidnet Direct will be considered official plan-holders.

Sealed proposals will be received electronically by the Purchasing Department until Friday, May 2, 2025, at 2:00 PM E.S.T. Responses must be submitted electronically via the City of New Bedford Solicitation webpage on BidNet Direct:

https://www.bidnetdirect.com/massachusetts/newbedford until the above time and date. It is recommended that proposers send an email to purchasing@newbedford-ma.gov to confirm that they have submitted their proposal to the City successfully through BidNet Direct.

As this is an RFP, the opening will not be public. Proposals received after the above time and date will be rejected and any hard copy submissions returned unopened. Emailed and/or faxed proposals will not be accepted. Instructions for participation are posted on the City’s website under the Purchasing page.

If, at the time of the scheduled proposal opening, City Hall is closed due to uncontrolled events such as fire, snow, ice, wind, or building evacuation, the proposal opening will be postponed to the same time on the next normal business day. The time clock on the wall above the counter of the Purchasing Department will determine the time of the proposal opening.

Attention is called to the fact that supplies furnished as part of this Contract are exempt from the Sales and Use Tax. All proposals submitted should take this factor into consideration and be calculated accordingly.

The contract will be awarded within sixty (60) days after the proposal opening excluding Saturdays, Sundays, and all legal holidays. The time for award may be extended by mutual agreement between the City and the awarded proposer. No proposer may withdraw his/her proposal for a period of sixty (60) days, excluding Saturdays, Sundays, and legal holidays, after the actual date of the opening thereof.

Proposers must include ALL DOCUMENTS required by the Request for Proposals. The Awarding Authority reserves the right to waive any informality, reject any or all proposals, or accept other than the lowest priced proposal if the City determines that it is in the best interests of the City.

The City is an Equal Opportunity Employer and encourages MBE/WBE/DBE participation in response to the RFP process.

Awarding Authority

City of New Bedford

Purchasing Department

Geraldine Calheta, Acting Director

FY25-FY27 ANNUAL INDEPENDENT AUDIT AND RELATED SERVICES

RFP #25135125

I. INSTRUCTIONS TO PROPOSERS

1. PROPOSALS

Sealed proposals herein specified as Annual Independent Audit and Related Services for the City of New Bedford, MA will be received at the City of New Bedford's Purchasing Department via electronic submission on https://www.bidnetdirect.com/massachusetts/newbedford on or before Friday, May 2, 2025 at 2:00 PM E.S.T. As this is an RFP, the opening will not be public.

2. SUBMITTAL

Sealed proposals will be received by the Purchasing Department until Friday, May 2, 2025 at 2:00 E.S.T. All proposals must be submitted via electronic submission on https:/www.bidnetdirect.com/massachusetts/newbedford until the above time and date.

Immediately following the deadline for proposals, all proposals received within the time specified will be publicly opened online, forthwith. A Vendor may correct, modify, or withdraw a proposal received electronically by Purchasing Department prior to the time and date set for the proposal opening. After the proposal opening, a Vendor may not change the price or any other provision of the proposal in a manner prejudicial to the interests of the governmental body or fair competition. The procurement officer shall waive minor informalities or allow the Vendor to correct them. If a mistake and the intended proposal are clearly evident on the face of the proposal document, the procurement officer shall correct the mistake to reflect the intended correct proposal and so notify the Vendor in writing. A Vendor may withdraw a proposal if a mistake is clearly evident on the face of the proposal document, but the intended correct proposal is not similarly evident.

3. TIME

All proposals received after the time stated in paragraph 2. Submittal will be rejected and will be returned to the Proposer unopened. Hard copy submissions will be returned to the vendor unopened.

4. REGULAR PROPOSAL

All information required by the Instructions to Proposers, Specifications and Proposal

Offer in connection with each item against which a proposal is submitted must be provided to constitute a regular proposal. No alteration, erasure or addition is to be made in the typewritten or printed matter. The submission of a proposal will be construed to mean that https://www.bidnetdirect.com/massachusetts/newbedford the Proposer is fully informed as to the extent and character of the service required and is representation that the Proposer can furnish the manpower and equipment necessary to properly render the desired service.

5. TYPEWRITTEN

Prices and information required, with the exception of the signature of Proposer, should be typewritten for legibility. Illegible or vague proposals may be rejected. All signatures must be written. Facsimile, printed or typewritten signatures are not acceptable. All proposal prices must be presented so that the total cost is clearly understandable.

6. RFP QUESTIONS & ADDENDA

Questions concerning this Specification must be submitted online by visiting https://www.bidnetdirect.com/massachusetts/newbedford. To submit questions online, log in and use the “Ask a Question” button at the top of the page. If assistance is needed, please contact BidNet’s Vendor Support Department at 800-835-4603, Option 2.

Questions submitted by mail, via email, or by any other method will not be accepted.

Questions are due by Thursday, April 24, 2025 at 4:00 PM. City responses issued as addenda will be issued via Bidnet Direct, and on the Purchasing Department’s website at:

https://www.newbedford-ma.gov/purchasing/request-proposals-rfps-invitation-bids-ifbs/ Failure of any Vendor to receive any such addendum or interpretation shall not relieve any Vendor from any obligation under this proposal as submitted. Only interested parties who download documents or otherwise register their interest in this solicitation via Bidnet Direct will be considered official plan-holders. No oral interpretations will be made to any proposer as to the meaning of any provision of the Request for Proposals or other contract documents. Failure to acknowledge all addenda may result in your submission being rejected as non-responsive.

7. AWARDS

The contract will be awarded to the responsible and responsive proposer offering the most advantageous proposal meeting the specifications within this RFP. One contract will be awarded to the one responsive and responsible Proposer whom the City of New Bedford determines offers the most advantageous proposal, taking into consideration all required qualifications, submission requirements and selection criteria set forth in the RFP, including price. Emphasis in selecting a firm shall be placed on the chosen firm's experience on similar past projects and overall experience within this category of work.

It is understood that the City may use all means at their disposal to evaluate the proposals received on these criteria, and the final decision as to the best overall offer, both as to price and to suitability of the services offered to fit the needs of the City.

https://www.newbedford-ma.gov/purchasing/request-proposals-rfps-invitation-bids-ifbs/

No contract will be accepted from or contract awarded to any person, firm, or corporation that is in arrears or is in default to any Massachusetts municipality or had failed previously to perform faithfully any previous contract with a municipality.

8. REJECT PROPOSALS

The City reserves the right to reject all proposals. Also reserved is the right to reject for cause any proposal in whole or in part; to waive technical defects, qualifications, irregularities; and omissions if in its judgment, the best interest of the City will be served.

9. CONTRACT

This RFP #25135125, the technical proposal and price proposal submitted by the

Successful proposer, and Addenda (as applicable), shall form a part of this contract, and the provisions thereof shall be binding upon the parties thereto. The term "Contract Documents" shall include all of the aforesaid, together with the contract itself.

10. PROPOSAL REQUIREMENTS

The Successful Proposer must meet all specifications. Any proposal which does not meet these requirements, is nonresponsive, incomplete, conditional, and/or obscure, will be rejected. Any proposal which contains additions not called for, and/or irregularities of any kind, is non-responsive and will be rejected.

The attention of all Proposers is called to General Laws Chapter 156D, which requires in part that, not later than 10 days after it commences transacting business in the commonwealth, a foreign corporation deliver a certificate to the secretary of state for filing.

Proposers required to be registered with the Secretary of State in the Massachusetts Corporate Database must use the same business name in their bidding documents as is listed in the Database for that business. All Proposers must use the same business name throughout all bidding documents, and for the Successful Proposer, throughout all contract documents. Examples of these documents include the technical proposal, price proposal, vote of corporation, W-9, and certificate of insurance. Any Proposer with multiple and/or inconsistent business names for one business may be rejected by the City.

11. SPECIFICATION INTENT

It is the intention of this RFP to establish and define the services that are to be provided and to determine the capability and experience of the proposers desiring to provide such services.

12. TAXES

No charge will be allowed for federal, state, or municipal sales and excise taxes since the City is exempt from such taxes. The price proposal shall be net and shall not include the amount of any such tax.

13. SIGNED PROPOSAL

A proposal must be signed as follows: (1) if the proposer is an individual, by her/him personally; (2) if the proposer is a partnership, by the name of the partnership, followed by the signature of each general partner; and (3) if the proposer is a corporation, by the authorized officer, whose signature must be attested to by the Clerk/Secretary of the corporation and the corporate seal affixed. If the proposal is being submitted by an entity other than an individual, partnership or corporation, the proposal must include written evidence of the proposer’s authority from the entity to submit the proposal in the form of legally binding documentation.

14. LICENSING

Proposers must be properly licensed and registered in the Commonwealth of

Massachusetts to perform the work identified in this specification.

15. NON-PERFORMANCE

In the event that the Successful Proposer does not fulfill its obligations under the terms and conditions of this contract, the City shall notify the Successful Proposer in writing. If the Successful Proposer continues to neglect the terms and conditions of the contract, the City may elect to terminate the contract. Under no circumstances shall monies be due to the Successful Proposer in the event that the contract is terminated under non-performance.

END OF SECTION- INSTRUCTION TO PROPOSERS

II. GENERAL REQUIREMENTS

1. There will be no scheduled conference. No oral interpretations will be made to any proposer as to the meaning of any provision of the Request for Proposals or other contract documents.

2. The Proposer will be bound by all applicable statutory provisions of law of the Federal

Government, the Commonwealth of Massachusetts and of the City of New Bedford.

Certificates of all required insurances’ will be required prior to executing a contract.

3. All submitted proposals and associated price quotes must be guaranteed to the City of New

Bedford for a period of sixty (60) days from the date of the proposal opening, excluding Saturdays, Sundays, and legal holidays. If a contract is to be awarded as a result of this RFP, it will be awarded within a sixty (60) day time period, unless extended upon mutual agreement of City and proposer(s).

As provided by Massachusetts General Law, Chapter 64H, §6(d), purchases made by the City of New Bedford are exempt from the payment of Federal Excise Taxes and Massachusetts Sales Tax; any such taxes must not be included in the quoted price. All Proposers should take this factor into consideration and be calculated accordingly.

4. The City reserves the right to reject any and all proposals, and to make awards in a manner deemed in the best interest of the City.

5. The Proposer will not be permitted to either assign or underlet the contract nor assign either legally or equitably, any monies hereunder, or its claim thereto, without the previous written consent of the Director of Purchasing.

6. All proposal prices stated must be firm.

7. Before submitting a proposal, each Proposer must make a careful study of the specifications contained in this Request for Proposal document and fully assure themselves as to the quality, quantity and type of services that the City is seeking to have performed.

8. The proposal for this work must cover all contingencies, including all labor and materials, transportation, etc., necessary for the purchase and delivery/execution of the services required by the City.

9. The Proposer who is selected to provide services will be required to indemnify the City for all damage to life and property that may occur due to their negligence or that of their employees, subcontractors, etc., during the period of this contract.

10. The Successful Proposer shall maintain liability insurance as such that will protect it from claims under Workmen’s Compensation Acts, and from other claims for damages for personal injury, including death, property damage and automobile liability, which may arise from operations under this contract. The Awardee covenant agrees to hold the City of New Bedford and its employees, agents and officials harmless from loss or damage due to claims for personal injury and/or property damage arising from or in connection with operations under this contract. A copy of said liability insurance which is in effect and enforceable shall be provided and include the City of New Bedford as an additional insured, on a primary and non-contributory basis, on all liability policies for the length of this agreement. Failure to provide and continue in force such insurance as aforesaid shall be deemed a material breach of the contract and shall operate as an immediate termination thereof.

All policies shall be so written that the City of New Bedford will be notified of the cancellation or restrictive amendment at least thirty (30) days prior to the effective date of such cancellation or amendment.

Certificates evidencing such insurance shall be furnished to the City of New Bedford at the execution of this contract and each anniversary date thereafter.

All proposers must include a signed and completed Insurance and Indemnification Agreement.

Successful Proposer agrees to carry the following insurance, with the City clearly designated as additional insured, during the term of this Agreement. Prior to execution of the Agreement, Successful Proposer shall provide proof of the following coverage:

a. Workers Compensation and Employer’s Liability Insurance in compliance with statutory limits;

b. Liability Insurance with $1,000,000 General Liability Coverage

c. $2,000,000 General Aggregate Liability coverage

d. Certificate of Errors and Omissions (Professional Liability) Insurance will also be required with $1,000,000 minimum coverage

e. Automobile Liability Insurance including non-owned and hired automobiles with combined single limit of $1,000,000 per accident

11. The contract agreement will be in the form customarily employed by the City and is attached hereto as a sample. No changes will be allowed to be made to the contract template unless a proposer requests an edit and submits it to the City prior to the deadline for questions.

12. The proposal must include a certification of tax compliance as required by General Laws Chapter 62C, Sec. 49A, (Requirement of Tax Compliance by All Contractors Providing Goods, Services, or Real Estate Space to the Commonwealth or Subdivision). All proposers must submit a signed and completed Non-Collusion and Tax Compliance Form.

13. The following list has been prepared for the convenience of the Proposers. Proposer is responsible for verifying and determining the required forms to be submitted with his/her proposal. Proposers shall complete and submit the following attachments with their Technical Proposals in accordance with the Instruction to Proposers and the Request for Proposals:

• Technical Proposal (one hard copy and one USB)

• Price Proposal (one hard copy only)

• City of New Bedford Non-Collusion and Tax Compliance Form

• City of New Bedford Vote of Corporation

• W-9

• Addenda Acknowledgement Form (if applicable)

14. All materials provided to the City become the property of the City and may be returned only at its sole discretion. The City is a public entity. All proposals and any materials submitted with a proposal may be deemed public records subject to disclosure pursuant to the Massachusetts Public Records Act. No portion of any proposal or materials submitted therewith will be withheld from disclosure as proprietary, trade secret or confidential unless that portion is clearly marked by the proposer as such, and the proposer agrees to indemnify The City against any claim or action to compel disclosure of such portion of the proposal.

The City is not obligated to accept any proposal or to negotiate with any entity. All transactions are subject to the final approval of the City, which reserves the right to reject any and all proposals without liability. All costs directly or indirectly related to a response to this RFP will be borne by the proposer.

15. Termination Clause

If at any time the Successful Proposer fails to fulfill or comply with any of the requirements of this proposal/contract, such as shoddy workmanship, executing improper operating procedures, supplying sub-standard, improperly trained employees, not adhering to the work schedule, etc., the City, at its option, can terminate this contract upon thirty (30) days written notice to the Successful Proposer.

END OF SECTION – GENERAL REQUIREMENTS

III. SCOPE & SPECIFICATIONS OF THE WORK

1. OVERVIEW

The successful CPA shall perform an independent audit of the City’s ACFR for a three year period from July 2025 through June 2028 (Audit Services), which shall be proposed under a fixed annual fee, and may perform other related professional services that are an integral part of an annual audit (Related Services), which shall be proposed under a per hour rate.

The City of New Bedford reserves the right to negotiate the Plan of Service for this Request for Proposal.

A. Audit Services (covered under fixed annual fee)

1. CPA shall perform an examination of the financial records of all activities of the City and its component units, including assurance of compliance with relevant state statutes and city ordinances, and shall express an opinion as to whether its ACFR fairly presents the financial position of the City and the results of its financial operations in accordance with generally accepted accounting principles. This examination is to be performed in accordance with generally accepted government auditing standards as outlined in Government Auditing Standards, published by the U.S. Government Accountability Office, 2018 and 2024 Revisions.

2. CPA shall also perform an examination of the School Department End-Of-Year Report, in accordance with DESE’s Compliance Supplement for Massachusetts School Districts, and shall express an opinion on its fair presentation in accordance with generally accepted accounting principles or any other basis as promulgated by DESE.

3. CPA shall perform an audit in accordance with the Single Audit Act of 1984 as codified in Chapter 75 of Title 31 of the United States Code, and the regulations established to implement this law as described in Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, revised June 26, 2007, and shall (1) express an opinion as to whether the City complied, in all material respects, with requirements of its major Federal programs;

(2) report on the scope of testing internal controls over compliance; and (3) express an opinion as to whether the City’s Schedule of Expenditures of Federal Awards is fairly stated in relation to the GPFS.

4. CPA shall note any deficiencies and opportunities for improvement observed during the course of each audit, and shall discuss its findings, along with remedial or implementation recommendations, with the CFO and his/her designees.

5. CPA shall review drafts of the City’s ACFR, and prepare its End-Of-Year Report, Single Audit report, and management letter, at least seven (7) days before their final issuance dates, and review findings with appropriate City and School departments.

6. CPA shall provide original opinion letters for inclusion within the City’s final ACFR, including twenty (20) hard copies for inclusion within bound ACFR.

7. CPA shall provide ten (10) copies each of the End-Of-Year Report, the Single Audit report, and the management letter. CPA shall also be responsible for filing copies of final reports with required Federal and state agencies.

8. During the course of this engagement, CPA shall be available during normal business hours to provide the City with advice and guidance on financial accounting and reporting issues, and will be expected to keep the City abreast of the requirements of all new accounting and financial pronouncements of the Governmental Accounting Standards Board, the United States Office of Management and Budget, and the Commonwealth of Massachusetts, and to ensure the ACFR remains in compliance with said pronouncements. If necessary, incorporating any updates requested by the GFOA as part of the Certificate of Achievement review.

B. Related Services (covered under hourly rate)

1. During the course of this engagement, the City may elect to have CPA prepare its

ACFR, including a Transmittal Letter and Management’s Discussion and Analysis, and to produce the ACFR in both .pdf and hard-copy form.

2. During the course of this engagement, the City may also require the CPA’s assistance in proposing adjustments to properly present accounts and balances on a GAAP basis.

However, as part of the basic Audit Services, a reasonable amount of adjustments may need to be proposed by CPA in order to express an unqualified opinion and for which CPA is not entitled to receive additional compensation as a Related Service.

3. During the course of this engagement, the City may also require CPA to assist in its preparation of the Massachusetts Division of Local Services (DLS) Balance Sheet, Tax Rate Recapitulation, and Schedule A, including the provision of representation during subsequent reviews by DLS.

4. From time to time the City may also request other advisory services including demonstration of compliance with any bond covenants, lease-purchase covenants, Massachusetts Department of Revenue regulations, or rules and regulations prescribed by the Massachusetts School Building Authority.

2. INFORMATION FURNISHED TO CPA

A. General Information

1. New Bedford was established in 1787 and incorporated as a City in 1847. The City has a population of 101,079 (2020 U.S. Bureau Census estimate) and occupies a land area of 24.1 square miles. According to the Massachusetts Executive Office of Labor and Workforce Development, the City’s total labor force as of June 2024 was 48,894, of which 46,179 were employed. The June 2024 unemployment rate 5.6% was. The Commonwealth’s unadjusted unemployment rate for that same period was 4.0%.

2. As a municipal corporation, the City provides general governmental services for the territory within its boundaries, including police and fire protection; refuse collection and disposal; potable water treatment and distribution; wastewater collection and treatment; public infrastructure maintenance; and operation of a CATV station, municipal airport, and public zoo, as well as beaches, parking lots, parks, and other cultural, historic, and recreational facilities.

3. The City also provides primary and secondary public education. School facilities include 18 elementary schools, three middle schools, one high school, and two alternate junior-senior high schools. Total capacity is estimated at 16,500 students, with an enrollment of 12,845 as of October 1, 2018. Vocational education is provided by the Greater New Bedford Regional Vocational Technical School District (Voke), comprised of students from New Bedford, Dartmouth, and Fairhaven.

4. An eleven-member City Council comprised of six ward and five at-large councilors each elected for two-year terms makes legislative decisions. The City is governed by a Mayor, who is elected for a four-year term on an at-large basis. As chief executive officer, the Mayor is responsible for the administration of the City, excepting its school system, and appoints all principal executive officers of the City, subject to approval of the City Council.

5. The Mayor serves ex officio as the Chairman of a seven-member School Committee, whose remaining six members are elected to staggered four-year terms. The School Committee has exclusive jurisdiction over the City’s public school system and appoints a Superintendent to administer the day-to-day affairs of the system.

6. The fiscal 2025 adopted budget for the General Fund is $469,615,286, which includes

$246,441,568 for the School Department and another $6,257,536 for Voke.

7. The City’s wastewater operations are discretely reported as a major special revenue fund, while its municipal airport, water, cable access television and certain parking operations within a designated downtown area are accounted for as enterprise funds. Fiscal year 2025’s adopted budgets for the wastewater and four currently existing enterprise funds are as follows:

Wastewater $31,666,190 Water 19,996,853 Downtown Parking 1,063,439 Airport 1,283,108 Cable Access 1,409,820

8. A referendum to adopt the provisions of the Community Preservation Act (M.G.L.

chapter 44B) was passed by voters in November 2014. Effective July 1, 2015, real estate assessments in excess of $100,000 are assessed a 1.5% surcharge. Proceeds are placed in a special revenue fund for subsequent appropriation by the City’s Community Preservation Committee (CPC). The fiscal year 2024 annual budget adopted by the CPC was $2,200,000.

9. The City issued its first-ever annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2017. The City submitted its subsequent ACFRs for fiscal years ended June 30, 2018, 2019, 2020, 2021, 2022, 2023, and 2024 as part of an application for the Government Finance Officers Association’s Certificate of Excellence in Financial Reporting Program. The City has received this award for fiscal years ending June 30, 2020, 2021, 2022, and 2023, and is awaiting the results for the fiscal year ending June 30, 2024, which should have a decision provided approximately by August 1, 2025.

10. Hague & Sahady, CPAs, have performed audits of the City’s GPFS and ACFRs as of and for the years ended June 30, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, and 2024. Copies of all City financial reports dating back to fiscal year 2009 are available on the City Auditor’s webpage at www.newbedford-ma.gov/auditors-office/annual-financial-reports.

B. Description of financial management and records

1. The City maintains its general records using the modified accrual basis of accounting, and conforms to both the Uniform Massachusetts Accounting System (UMAS) established by the Commonwealth’s Department of Revenue, Bureau of Accounts, and the guidelines established by the Massachusetts Department of Elementary & Secondary Education (DESE).

2. The City conducts all municipal and education operations within one municipal corporation, and under one Federal Employer Identification Number.

3. In addition to its primary government, the following component units, each of which is a separate and discrete legal entity with autonomous financial management and internal accounting control systems, are included within the City’s ACFR:

• Greater New Bedford Regional Refuse Management District;

• New Bedford Harbor Development Commission;

• Greater New Bedford Workforce Investment Board, Inc.; and

• New Bedford Redevelopment Authority.

4. The City is the largest of five employers participating in the New Bedford Contributory

Retirement System, a multi-employer pension system administered by the New Bedford Retirement Board. An actuarial valuation is performed every two years, the most recent of which was dated January 1, 2024. The system’s financial position and results of operation as of and through each calendar year are discretely presented as a fiduciary fund within the City’s ACFR.

5. The City established a single-employer nonrevocable trust fund for its other post-employment benefits in February 2016. An actuarial valuation is performed every two years, the most recent of which was dated June 30, 2024. The trust fund is discretely presented as a fiduciary fund within the City’s ACFR.

6. General ledgers for the City, including its School Department, are maintained on

MUNIS, an enterprise resource planning system developed by Tyler Technologies. In addition to its General Ledger module, the City and School Department process all source documents and transactions in various other MUNIS application modules

7. General ledgers are converted from modified accrual to accrual basis only at each fiscal year end. The City accomplishes this through a Period 13 feature in MUNIS. All budgetary comparison statements and schedules utilize only periods one through 12, while GAAP-basis statements utilize full 13-period data.

8. In addition to MUNIS, the City utilizes other proprietary software solutions for processing certain transactions affecting financial reporting, including Frontline for School time and attendance; AssessPro for real and personal property valuations; IMC (transitioning to IntelliTime) for Police time and attendance; FirstDue for EMS and Fire time and attendance; Kelley & Ryan for motor vehicle and boat excise tax collections; OpenGov for code enforcement violation collections; Police Detail Tracking System (transitioning to IntelliTime) for police billings and collections; and OpenGov for municipal permit collections. Each system is maintained by departments external to the City Auditor and interfaces directly into MUNIS.

9. The City’s business operations, which consist of the offices of the Chief Financial

Officer, City Assessor, City Auditor, City Treasurer/Collector, Management Information Systems, and Purchasing, are managed by the City’s CFO, who reports to the Mayor. The financial departments are collectively responsible for overseeing all municipal and certain School finance functions. Municipal accounts payable processing functions are performed through centralized AP by the City Auditor’s office. Municipal payroll processing functions are performed through centralized payroll by the Treasurer/Collector’s office.

10. School financial activities are subject to the more restrictive of either City or School practices, policies, and procedures. The City’s Treasurer/Collector and Purchasing offices oversee all school cash management and purchasing activities, respectively. The City Auditor oversees many key accounting functions and internal controls. The School Business Manager, who reports to the Superintendent, is responsible for the School Business Office, which has autonomous authority for all other functions, practices, procedures, and internal controls affecting School transactional processing, including human resources, grants management, accounts payable, and payroll, the latter two of which are centrally managed. The School Business Manager is the primary audit point of contact for all School transactions.

3. CITY AND SCHOOL RESOURCES PROVIDED

A. The following accommodations will be provided to CPA during the course of fieldwork:

1. Private work area within City Hall, 133 William Street, New Bedford, MA, equipped with seating and a table large enough to accommodate normal desktop space for four (4) auditors;

2. Access to two network-connected desktop personal computers;

3. Read-only access to all MUNIS modules and functions needed in the course of the audit; and

4. One desktop telephone set with a dedicated extension.

B. The following books and records will be provided to CPA during the course of fieldwork:

1. Account trial balances for each fund, which balance by fund, and include balanced Due To / Due From and Other Sources / Other Uses accounts across funds. The trail balances will be delivered in Microsoft Excel or available to download directly from Munis.

2. Electronic-only access to all budget entries, journal entries, and source document images.

This will not extend to hard-copy records, which will be filed in a proximate location but remain the CPA’s responsibility to access, retrieve, and replace.

3. Digital or hard-copy documents of all Council actions, including Council Orders, meeting agendas, and meeting minutes; and all School committee meeting minutes.

4. Preparation of certain account reconciliations and auxiliary schedules, which will include receivable flow-through analyses, departmental receivable trial balances, and accounts payable trial balances. Electronic access will be provided to tax rolls, and property tax, excise tax, tax liens, and utility accounts receivable trial balances, but will not include hard copies of said documents due to their significant volume.

5. Full drafts of all components of the ACFR, which shall be delivered no later than 30 days prior to the expected final release of the City’s audited ACFR. Should the City require CPA assistance in the ACFR draft process as a Related Service, the CPA will be advised to later than 45 days prior to the expected final release of the City’s audited ACFR.

4. PROPOSAL OUTLINE

To simplify the review process and obtain the maximum degree of comparability, the proposals should include the following sections and be organized in the manner specified below.

A. TECHNICAL PROPOSAL OUTLINE

A. 1 – LETTER OF TRANSMITTAL

A Letter of Transmittal briefly outlining the proposer’s understanding of the work and general information regarding the proposer and individuals to be involved.

The letter should clearly identify the local address of the office of the proposer performing the work, the telephone number, and the name of the authorized representative. The letter shall include a clear statement from Proposer that this offer is binding and shall remain open for sixty (60) days excluding Saturdays, Sundays, and legal holidays, from the due date of this RFP and acknowledge that its proposal cannot be withdrawn within that time without the written consent of the City. The Letter of Transmittal shall be signed by a person authorized to execute such documents.

A.2 – TABLE OF CONTENTS

Include a table of contents that identifies the material by section, page number, and a reference to the information to be contained in the proposal. A list of any and all tables, figures, and appendices shall be provided.

A.3 – PROFILE OF PROPOSER

Provide a brief summary of the firm, including but not limited to, the number of employees, founding of the firm, current office locations, breadth of firm’s qualifications, etc. State whether the proposer is a local, national, or international firm and include a brief description of the firm. Provide a statement as to whether the proposer is in compliance with the registration and permit requirements to do business in the Commonwealth of Massachusetts.

State whether the proposer is a qualified small or minority-owned business, women’s business enterprise or labor surplus area proposer. Provide the location and address of the firm’s corporate office and the office where the work will be completed out of. Provide the largest dollar contract amount entered into agreement for the firm, the date of project completion, duration of the project, the location of the project, name of the division or department for whom the work was completed, and a contact name, phone number and email address for the project.

A.4– REFERENCES & QUALIFICATIONS

Section 4.1 – Previous Project Description and References Describe recent experience with auditing services for organizations of a similar size to the City of New Bedford.

Include three project descriptions with client references completed in the last five years. A reference for a municipality located in Massachusetts is required. As part of the references, provide project descriptions for the work completed. The project descriptions shall clearly indicate the scope of work, the cost of the project (initial), the completed project cost (final cost), the size of the organization, and any other pertinent information. Please provide contact names, phone numbers, and emails for each reference.

Section 4.2 – Staff and Project Team

Provide the following information related to the proposed Project Team. Team members shall be fully available for the entire project and no team members shall be removed unless approved by the City. Provide a project organizational chart of all key staff and support staff including any subconsultants along with resumes of, at a minimum, the following key staff:

Client Service Leader – Provide a resume for the proposed Client Service Leader (CSL). The CSL shall be the main business contact for business-related communications between the City and the Proposer. Provide a minimum of three clients that the CSL has been involved in within the last 5 years and include references.

Project Manager – Provide a resume of the proposed Project Manager (PM). The PM shall be responsible for the day-to-day management of the project and completion of tasks to scope, schedule and budget. The PM must have successfully completed a minimum of three implementations of similar scope in the last five years. Provide a minimum of three client references and project descriptions of three representative projects. Project descriptions shall include a summary of the scope, the total budgeted cost, the final cost at completion, the anticipated project duration and actual project duration.

Subconsultants – If the Proposer intends to utilize subconsultants for the purposes of completing tasks, those firms shall be clearly listed in the organizational chart and proposal. Resumes for each subconsultant shall be provided.

Section 4.3 – CPA Qualifications

For consideration of its proposal, CPA, including each partner and the field manager assigned to the City engagement, must, as a minimum:

(a) be registered as a firm of Certified Public Accountants by the Commonwealth of Massachusetts;

(b) maintain good standing with all Federal and Commonwealth agencies;

(c) maintain active licenses to practice as Certified Public Accountants within the Commonwealth;

(d) have no business or personal relationship with any member of the City Council, School Committee, Mayor, Superintendent, or any other City employee that would create a conflict of interest, the appearance of a conflict of interest, or any other impairment of independence in fact or appearance;

(e) have conducted at least one audit of any United States municipality having a population of 40,000 or greater for a fiscal year ended on or after June 30, 2022 and for which an ACFR was prepared; and

(f) have conducted at least one audit of any New England municipality, school district, or special purpose district of any size for a fiscal year that ended on June 30, 2022 or later.

A.5. – SCOPE OF SERVICES AND PROJECT APPROACH

The Proposer shall clearly describe the process/methodology that will be used for successful completion of annual auditing services for the City of New Bedford and to meet the City’s needs that are outlined in above Scope of Services. The proposer shall provide any alternative implementation approaches or modified business practices that the Proposer deems appropriate. Proposer must demonstrate knowledge and experience in providing the services included in the response.

Further information included in the technical proposal shall consist of:

(a) Listing of audits conducted for any United States municipalities having populations of 40,000 or greater for fiscal years ended on or after June 30, 2022 and for which an ACFR was prepared. The listing should include principal contact(s), their contact information, each type of report issued during those engagements, and the amount expended under its largest major Federal program award. Indicate which, if any, ACFR was awarded the Government Finance Officers Association’s Certificate of Excellence in Financial Reporting.

(b) Listing of all audit engagements of New England municipalities, school districts, and special purpose districts for fiscal years ended on or after June 30, 2022. The listing should include principal contact(s), their contact information, and each type of report issued during those engagements.

(c) Listing of any actions filed against the firm or individuals of the firm through the

AICPA, MSCPA, MA DBR, or any other Federal or Commonwealth agency in the past five years, along with their current status or disposition.

(d) Identification of the partner and fieldwork manager(s) who will be responsible for the proposed City of New Bedford engagement, including their resumes or other statements of their specific professional experience, qualifications, and education.

(e) A schedule of the total hours anticipated to complete Audit Services for each of the three fiscal years within this proposal. Additionally, an estimate of how many of those hours anticipated to be onsite at one or more City locations.

B. PRICE PROPOSAL OUTLINE

The Price Proposal shall be provided in a separate sealed envelope as noted in Instructions to Proposers and is to be submitted using the form in Exhibit A.

2. Fixed fees for each separate year under audit should be quoted. Unless quotes are qualified in any manner as described in sub-section (B)(3) below, quotes shall include the full cost of all labor, materials, insurance, travel time, travel expense, and all other necessary expenses to fulfill the conditions of Scope of Services. The City will not be liable for additional expenses beyond the quoted fixed fee.

3. Both the City and CPA acknowledge that it is not possible to anticipate all resources and support that will be required during the course of an audit. The City will make every attempt to provide any reasonable resources and support requested beyond those specified in above, but does not guarantee their delivery.

CPA may qualify its annual fixed fee subject to certain other resources or support, but its proposal must clearly state the qualification and include an hourly cost to remedy the qualification. In such cases, the City, at its sole discretion, will assess the likelihood of incurring additional conditional fees and will adjust the qualified fixed fee accordingly to maintain comparability on a non-qualified basis.

The price proposal must be signed by a person authorized to execute such documents and include the printed name, title, firm’s name, address, telephone number and email address.

END OF SECTION- SCOPE & SPECIFICATIONS OF THE WORK

IV. COMPARATIVE EVALUATION CRITERIA

Proposals will be evaluated by the City against the factors specified in the below evaluation criteria. The City will ultimately award to the most responsive and responsible proposer whom the City determines offers the most advantageous proposal.

1. Established practice:

Highly advantageous: proposals will be considered highly advantageous if firm has been in business more than 10 years and at least 1 audit partner has 10 years audit experience, 5 of which are in government

Advantageous: proposals will be considered advantageous if firm has been in business 5-10 years and at least 1 audit partner has 10 years audit experience, 5 of which are in government

Not advantageous: proposals will be considered not advantageous is firm has been in business less than 5 years or has no audit partner with 10 years of audit experience, 5 of which are in government

2. Experience auditing large municipalities:

Highly advantageous: proposals will be considered highly advantageous if both firm and engagement partner have audited at least 1 municipality with populations greater than 50,000 with 1 major Federal program greater than $5M in the last 3 years

Advantageous: proposals will be considered advantageous if both firm and engagement partner have audited at least 1 municipality with a population greater than 30,000 with 1 major Federal program greater than $3M in the last 3 years

Not advantageous: proposals will be considered not advantageous if either firm or engagement partner have not audited a municipality with a population greater than 30,000 with 1 major Federal program greater than $3M in the last 3 years

3. Experience performing audits of entities that provide municipal services compatible to New Bedford:

Highly advantageous: proposals will be considered highly advantageous if firm has performed 10 or more audits of MA municipalities with airport, water, wastewater, and CUs in last 3 years

Advantageous: proposals will be considered advantageous if firm has performed 5-9 audits of New England municipalities/districts with airport, water, wastewater, or CUs in last 3 years

Not advantageous: proposals will be considered not advantageous if firm has performed 1-4 audits of New England municipalities/districts with airport, water, wastewater, orCUs in last 3 years

4. Working knowledge of all existing and new accounting and financial pronouncements of FASB, GASB, OMB, DOR, and DESE:

Highly advantageous: proposals will be considered highly advantageous if engagement partner and fieldwork manager have completed 60 CPE hours directly related to governmental A&A in last 3 years

Advantageous: proposals will be considered advantageous if engagement partner and fieldwork manager have completed 30-59 CPE hours directly related to governmental A&A in last 3 years

Not advantageous: proposals will be considered not advantageous if engagement partner and fieldwork manager have completed less than 30 CPE hours directly related to governmental A&A in last 3 years

5. Ability to complete each audit engagement by 1/31, regardless of concurrent commitments to other clients

Highly advantageous: proposals will be considered highly advantageous if firm’s office staff has 20 or more professionals with 3 admin and no concurrent engagements with higher priority

Advantageous: proposals will be considered advantageous if firm’s office staff has 15-19 professionals with 2 admin and 1-2 competing engagements

Not advantageous: proposals will be considered not advantageous if firm’s office staff has 14 or fewer professionals with 2 admin and 3-4 competing engagements

6. Experience auditing ACFR that meets standards of Certificate of Excellence in Financial Reporting

Highly advantageous: proposals will be considered highly advantageous if firm has performed 10 or more audits of ACFR in last 3 years, including one as preparer and with 2 award-winners

Advantageous: proposals will be considered advantageous if firm has performed 5-9 audits of ACFR in last 3 years, including one as preparer and with 1 award-winner

Not advantageous: proposals will be considered not advantageous if firm has performed less than 5 audits of ACFR in last 3 years, including none as preparer and with no award winners

END OF SECTION- COMPARATIVE EVALUATION CRITERIA

V. SELECTION PROCESS

As a result of this RFP, the City intends to award the contract to the responsible proposer whose proposal is most advantageous to the City. All qualified technical proposals will be reviewed and evaluated by the selection committee based on the established Comparative Evaluation Criteria set forth in this RFP.