4-1. Scope of Work.pdf

Boulder County Housing Authority

Scope of Work Professional Audit and Related Financial Services

Contract Term: January 1, 2027 through December 31, 2029

Solicitation Type Request for Proposals for professional audit and related financial services

Contract Period January 1, 2027 through December 31, 2029

Fiscal Years Covered Fiscal years ending December 31, 2027, December 31, 2028, and December 31, 2029

Core Expertise Required

Government accounting, HUD voucher programs including Moving to Work, LIHTC, multifamily affordable housing, Single Audit, layered compliance, development accounting and tax returns

Optional Service Inquiry Non-attest financial statement preparation services, if not included in the audited financial reports

1. Purpose Boulder County Housing Authority (BCHA) is seeking proposals from qualified independent certified public accounting firms to provide annual audit & tax services and related services for the fiscal years ending December 31, 2027, December 31, 2028, and December 31, 2029.

The selected firm must demonstrate substantial experience auditing public housing authorities of similar or greater size and complexity to BCHA. The selected firm must have direct experience with complex HUD voucher programs, Moving to Work agencies, multifamily affordable housing portfolios, layered compliance requirements, Low-Income Housing Tax Credit developments, federal awards, development-stage accounting, and cost certifications.

BCHA is seeking a firm that can serve not only as an external auditor, but also as a highly knowledgeable technical resource regarding HUD financial reporting, voucher program accounting, Moving to Work financial treatment, multifamily affordable housing compliance, LIHTC development accounting, cost certifications, energy-related cost certifications, and audit readiness.

BCHA may also consider whether the selected firm can provide non-attest financial statement preparation services, if those services are not included in the audited financial reports and are permitted under applicable independence standards. This service is not required for award.

2. Background Boulder County Housing Authority administers HUD-assisted housing programs, owns and/or manages a significant multifamily affordable housing portfolio, and is actively involved in affordable housing development.

BCHA currently owns or manages approximately 1,200 multifamily units. Many of these units are subject to one or more federal, state, local, investor, lender, or program-specific compliance regimes, including but not limited to HUD Housing Choice Voucher and Project-Based Voucher requirements, Low-Income Housing Tax Credits, Rural Development requirements, HOME, CDBG, and other affordable housing funding or regulatory programs.

BCHA administers Housing Choice Voucher and related voucher programs and operates as a Moving to Work agency. BCHA’s voucher-related activities may include tenant-based vouchers, project-based vouchers, special-purpose vouchers, portability activity, HAP funding, administrative fee funding, HUD-held funds, program compliance, and related financial reporting.

BCHA is also involved in active affordable housing development. BCHA currently has approximately 150 multifamily units and approximately 80 affordable homeownership units in the beginning stages of development. Future development activities may include LIHTC transactions, layered financing, construction- period accounting, investor and lender reporting, cost certifications, energy-related cost certifications, placed-in-service documentation, lease-up, conversion, stabilization, and permanent financing.

BCHA’s financial reporting environment may include governmental activities, business-type activities, enterprise or proprietary funds, component units, blended or discretely presented entities, limited partnerships, limited liability companies, nonprofit affiliates, development entities, federal awards, HUD programs, LIHTC projects, capital transactions, and multiple compliance frameworks.

3. Contract Term The initial contract term will begin January 1, 2027 and end December 31, 2029, covering audit & tax services for fiscal years ending:

• December 31, 2027

• December 31, 2028

• December31, 2029

The contract may be renewed for up to 5 years in total.

4. Required Services The selected firm shall provide the following services.

A. Annual Financial Statement Audit The firm shall conduct an annual independent audit of BCHA’s financial statements in accordance with applicable auditing standards, governmental accounting standards, federal requirements, and other applicable regulatory requirements.

Services shall include, but are not limited to:

1. Audit of BCHA’s annual financial statements.

2. Review of financial statement presentation and required note disclosures.

3. Review of internal controls over financial reporting.

4. Review of accounting treatment for HUD programs, affordable housing properties, development activity, component units, related entities, and restricted funds.

5. Review of year-end audit schedules and supporting documentation.

6. Communication of audit findings, deficiencies, significant deficiencies, material weaknesses, and recommendations.

7. Preparation or review of required auditor reports.

8. Presentation of audit results to BCHA management, governing bodies, County representatives, or other parties as requested.

9. Coordination with BCHA finance staff throughout planning, fieldwork, reporting, and closeout.

10. Coordination with program, property management, development, compliance, and other BCHA staff as needed.

B. Single Audit, Federal Compliance, and HUD Voucher/Moving to Work Expertise

The firm shall perform Single Audit services when required under federal regulations and shall test applicable major programs in accordance with Uniform Guidance and the applicable Compliance Supplement.

The selected firm must demonstrate substantial technical experience with HUD programs, federal award compliance, Moving to Work agency accounting, and affordable housing funding sources. The firm shall be expected to audit, review, and, where appropriate, advise BCHA regarding areas including, but not limited to:

1. Housing Choice Voucher and Project-Based Voucher accounting, reporting, and compliance.

2. Moving to Work financial activity, funding flexibility, reporting, reserves, and compliance requirements.

3. Emergency Housing Voucher, Mainstream Voucher, VASH, FUP, FYI, NED, and other special-purpose voucher programs, as applicable.

4. Voucher Management System reporting and reconciliation.

5. HAP revenue, HAP expense, landlord HAP payments, HAP equity, restricted net position, HUD-held reserves, and related reconciliation items.

6. Administrative fee revenue, expenses, reserves, allowable uses, and unrestricted net position.

7. Program reserves and restricted and unrestricted classifications.

8. HUD funding advances, offsets, shortfalls, year-end reconciliations, and other funding adjustments.

9. Port-in and port-out activities, including related receivables, payables, and voucher accounting.

10. Family Self-Sufficiency escrow accounting, as applicable.

11. Financial reporting implications of MTW flexibility.

12. Internal controls over voucher program accounting, compliance, reporting, and coordination between finance, accounting, voucher program, and compliance staff.

13. Applicable HUD financial reporting and submission requirements.

14. HOME, CDBG, Rural Development, and other federal funding sources, as applicable.

15. Preparation, review, and testing of the Schedule of Expenditures of Federal Awards.

16. Review of prior-year audit findings, corrective action plans, and the status of corrective actions.

17. Data Collection Form assistance or review.

18. Federal Audit Clearinghouse submission support, if requested.

The firm should be capable of identifying accounting, compliance, internal-control, and reporting issues related to HUD voucher programs, MTW activity, and other federal awards before they result in audit findings or unresolved year-end matters.

C. Multifamily Affordable Housing Portfolio Audit Experience The selected firm must have experience auditing affordable housing organizations with multifamily portfolios of similar or greater size and complexity to BCHA.

BCHA currently owns or manages approximately 1,200 multifamily units, many of which are subject to overlapping compliance requirements. The selected firm must be able to audit and advise on property-level and portfolio-level accounting and compliance issues involving:

1. HUD-assisted units.

2. Project-Based Voucher units.

3. LIHTC units.

4. Rural Development properties.

5. HOME-assisted units.

6. CDBG-assisted properties or activities.

7. Locally funded affordable housing programs.

8. Mixed-finance or layered-finance properties.

9. Compliance-related financial reporting and audit documentation.

BCHA is particularly interested in firms that have audited housing authorities, housing agencies, nonprofit affordable housing owners, or similar entities with complex multifamily portfolios and multiple overlapping compliance regimes.

D. LIHTC Development, Cost Certification, and Stabilization The selected firm must have significant experience with Low-Income Housing Tax Credit housing developments, including projects involving public housing authorities, governmental sponsors, nonprofit affiliates, special-purpose entities, investors, lenders, and state housing finance agencies.

BCHA currently has approximately 150 multifamily units in the beginning stages of development.

Development activity may include predevelopment, financial closing, construction, cost certification, lease-up, conversion, stabilization, and permanent financing.

Services may include, but are not limited to:

1. Audit of LIHTC project entities.

2. Development-stage accounting.

3. Predevelopment cost accounting.

4. Construction-period accounting.

5. Eligible basis and qualified basis review.

6. 4% and 9% LIHTC transaction experience.

7. Federal and Colorado state tax credit experience

8. Final cost certifications.

9. 8609-related accountant certifications or supporting schedules.

10. Investor-required cost certification packages.

11. Energy-related cost certifications and documentation.

12. Solar, geothermal, energy-efficiency, sustainability, or other energy-related cost certification

13. Review of Inflation Reduction Act, direct pay, energy credit, or related cost documentation when applicable.

14. Sources and uses review.

15. Capital account, developer fee, deferred developer fee, and related-party transaction review.

16. Placed-in-service and stabilization-period accounting.

17. Conversion and permanent financing support.

18. Coordination with tax credit investors, syndicators, lenders, attorneys, development consultants, and state allocating agencies.

19. Audit-readiness assistance.

The firm must be able to work closely with BCHA and its development partners from predevelopment through stabilization.

E. Component Units, Affiliates, and Related Entities The selected firm may be required to audit, review, or assist with financial reporting for blended component units, discretely presented component units, limited partnerships, LLCs, nonprofit affiliates, development entities, or other related organizations.

The firm shall assist BCHA in evaluating proper financial reporting treatment under applicable accounting standards and shall advise on documentation needed to support the reporting treatment.

The firm should have experience with complex affordable housing organizational structures, including entities created for LIHTC transactions, development activity, property ownership, asset management, and related purposes.

F. Internal Control and Management Recommendations The selected firm shall evaluate internal controls relevant to the audit and provide practical recommendations for improving financial reporting, compliance, grant accounting, voucher accounting, multifamily property accounting, LIHTC development accounting, and audit readiness.

The firm shall provide management letters or similar written communications identifying:

1. Material weaknesses.

2. Significant deficiencies.

3. Other control deficiencies or process concerns.

4. Best practice recommendations.

5. Prior-year finding follow-up.

6. Recommendations specific to HUD voucher programs, MTW, LIHTC development, multifamily property accounting, federal compliance, and layered compliance programs.

7. Recommendations to improve coordination between finance, voucher program, compliance, property management, and development teams.

G. Technical Consultation Throughout the contract term, the selected firm shall be available for reasonable technical consultation related to the required audit, accounting, compliance, and reporting services described above.

The proposal should identify whether technical consultation is included in the base audit fee or billed separately.

5. Deliverables The selected firm shall provide, as applicable:

1. Annual audited financial statements (Draft by May 7; Final by May 21)

2. Independent auditor’s report.

3. Single Audit reports, if required.

4. Schedule of Expenditures of Federal Awards review and related reporting.

5. Management letter or internal control communication.

6. Required governance communications.

7. HUD financial submission assistance or review, if required.

8. LIHTC cost certification reports and related schedules, when requested.

9. Energy cost certification or energy credit support schedules, when requested.

10. Project-specific audit reports for LIHTC or related entities, when requested.

11. Property-level or entity-level audit reports, when requested.

12. Affordable homeownership development accounting support, when requested.

13. Presentation materials for management, Board, County, or other stakeholders, if requested.

14. Final audit files and supporting documentation as required by applicable standards.

6. Minimum Firm Qualifications Proposing firms must demonstrate:

1. Licensed CPA firm status and independence.

2. Experience auditing governmental entities, public housing authorities, housing agencies, or comparable affordable housing organizations.

3. Experience auditing entities of similar or greater size and complexity to BCHA.

4. Experience with multifamily affordable housing portfolios of approximately 1,000 units or more, or a clear demonstration of comparable complexity.

5. Significant HUD Housing Choice Voucher program audit experience.

6. Demonstrated Project-Based Voucher experience.

7. Demonstrated Moving to Work agency experience.

8. Demonstrated Single Audit experience.

9. Demonstrated LIHTC development and cost certification experience.

10. Experience with layered compliance programs, including LIHTC, HUD, Rural Development, HOME, CDBG, or similar funding sources.

11. Experience with Colorado LIHTC projects and CHFA requirements, preferred.

12. Experience working with tax credit investors, lenders, syndicators, attorneys, and affordable housing development teams.

13. Experience with energy-related cost certifications, energy credits, direct pay, or similar energy-efficiency financing structures, preferred.

14. Experience with development-stage accounting for affordable rental and/or affordable homeownership projects.

15. Capacity to meet required deadlines.

16. Strong references from housing authorities, affordable housing developers, or similar clients.

17. Continuity of assigned audit team and access to senior-level technical specialists.

7. Proposal Requirements Proposals should include the following:

1. Firm overview.

2. Description of relevant public housing authority, housing agency, or affordable housing audit experience.

3. Description of experience with clients of similar or greater size and complexity to BCHA.

4. Description of experience with HUD voucher programs, including Housing Choice Voucher, Project-Based

Voucher, special-purpose vouchers, and Moving to Work agencies.

5. Description of experience with multifamily affordable housing portfolios subject to multiple compliance regimes.

6. Description of experience with LIHTC development, cost certifications, investor reporting, and stabilization.

7. Description of experience with Rural Development, HOME, CDBG, and other layered funding sources.

8. Description of experience with affordable homeownership development or similar publicly funded development activity.

9. Identification of proposed engagement partner, manager, senior staff, and technical specialists.

10. Resumes of key personnel.

11. Description of audit approach and work plan.

12. Proposed timeline for planning, interim fieldwork, final fieldwork, draft reports due the first week of May, and final reports due the third week of May.

13. Description of approach to HUD voucher and MTW audit areas.

14. Description of approach to multifamily property accounting and layered compliance.

15. Description of approach to LIHTC development, cost certifications, and energy-related cost certifications.

16. Description of communication practices with management.

17. Description of quality control procedures.

18. Disclosure of any actual or potential independence issues.

19. Proposed fee schedule for each contract year.

20. Hourly rates for additional services including a list of optional services and related fees.

21. At least three relevant client references within the last three years.

22. Sample list of similar engagements performed within the last five years, including client size, program types, and scope of services.

23. Optional: Non-Attest Financial Statement Preparation Services. Indicate whether the firm provides non- attest services related to audited financial statement preparation, including drafting annual financial statements, note disclosures, supporting schedules, and related audit report materials. If the firm provides these services, describe the scope of services available, and whether the services would be included in the base audit fee or billed separately. This service is not required for award, but BCHA requests this information to understand available options, potential efficiencies, and related costs.

8. Evaluation Criteria

See document titled “2. Evaluation Criteria” for details.

BCHA is not required to select the lowest-cost proposal and may select the proposal determined to provide the best overall value.

9. Anticipated Timeline

1. RFP posting: July 29, 2026

2. Questions due for submitting questions: 2 pm (MDT) August 6, 2026

3. Addendum due (BCHA responses to questions): August 7, 2026

4. Proposal submission deadline: 2 pm (MDT) August 13, 2026

5. Notice of intent to award: August 27, 2026

6. Contract negotiation and execution: September 18, 2026

7. Initial planning meeting: November 1, 2027

8. Final fieldwork begins: No later than April 1, 2028

9. Draft report delivery: May 7, 2028

10. Final report delivery: May 21, 2028

11. Board or governing body presentation: Last Wednesday of May

10. BCHA Responsibilities BCHA will provide reasonable access to financial records, accounting staff, program staff, property management staff, compliance staff, development staff, prior audit reports, general ledger data, bank reconciliations, grant records, HUD records, voucher program records, property-level records, LIHTC development records, investor reporting packages, cost certification support, Rural Development records, HOME and CDBG records, affordable homeownership development records, and other documentation needed to complete the engagement.

BCHA will designate a primary project contact and will coordinate access to other staff, consultants, attorneys, investors, lenders, property managers, development partners, and other parties as necessary.

11. Independence and Conflict of Interest The selected firm must maintain independence in accordance with applicable professional standards.

Proposing firms must disclose any existing or prior relationships with BCHA, Boulder County, related entities, developers, investors, lenders, consultants, property managers, or other parties that could create an actual or perceived conflict of interest.

If the firm offers non-attest financial statement preparation services, the proposal must describe how those services would be structured to maintain independence and comply with applicable professional standards.

BCHA reserves the right to decline any proposed non-attest service if BCHA determines that the service could create independence, procurement, operational, or conflict-of-interest concerns.