NAFI Audit Statement of Work_2026.pdf

PR#: 60100PR260036814

STATEMENT OF WORK

8/12/2026

STATEMENT OF WORK (SOW)

FOR

Audits of the Athletic Activity Fund, Cadet Activities Fund, and Academic Activities Fund at the US Coast Guard Academy

1.0 GENERAL

1.1 BACKGROUND

The United States Coast Guard Academy, a component of the United States Coast Guard, is responsible for developing leaders of character for the officer corps. The Coast Guard Academy has three non-appropriated fund instrumentalities (NAFIs) of the United States Government. The three NAFIs are: (1) Athletic Activity Fund; (2) Cadet Activities Fund; and

(3) Academic Activities Fund.

The mission of the Athletic Activity Fund (AAF) is to provide support and services to the Coast Guard Academy Athletic Division in operation of its Intercollegiate Athletics program and co-curricular activities in preparing graduates who are leaders of character. The AAF financial objective is to maintain a sound capital structure to ensure continued operation of the AAF program in support of the CGA Athletic Division.

The mission of the Cadet Activities Fund (CAF) is to provide extracurricular programs comparable to other college campuses that also promote the Coast Guard’s core values.

The CAF financial objective is to maintain a sound capital structure to ensure continued operation of the CAF program in support of the CGA Corps of Cadets.

The mission of the Academics Activities Fund (AcAF) is to provide academic enrichment opportunities for cadets and faculty members beyond those programs, projects, and activities necessary for the completion of a bachelor’s degree. The AcAF financial objective is to maintain a sound capital structure to ensure continued operation of the AcAF programs in support of CGA Academic’s Division.

1.2 SCOPE

The Contractor shall provide independent audit services for the three-U.S. Coast Guard Academy Non-Appropriated Fund Instrumentalities (NAFIs): the Athletic Activity Fund (AAF), Cadet Activities Fund (CAF), and Academic Activities Fund (AcAF), for the fiscal year ending June 30, 2026.

The audits shall be conducted in accordance with Generally Accepted Auditing Standards (GAAS), Generally Accepted Government Auditing Standards (GAGAS/Yellow Book), and applicable Coast Guard NAF policies and guidance, including the NAFI Manual and other regulatory guidance provided by the Government.

For each fund, the Contractor shall express an opinion on the fairness of presentation of the required financial statements as of June 30, 2026. The Contractor shall also issue the GAGAS-required report on internal control over financial reporting and compliance. A separate attestation engagement or separate opinion on management’s assertions regarding internal control effectiveness is not required.

1.3 OBJECTIVE

The objectives of this solicitation are financial statement audit and compliance-related reporting objectives, including:

Expressing an opinion on the fairness of presentation of the applicable financial statements for each of the three NAFIs as of June 30, 2026. For the Athletic Activity Fund (AAF) and Cadet Activities Fund (CAF), the opinion shall cover the Operating Summary, consisting of the Balance Sheet and Income Statement. For the Academic Activities Fund (AcAF), the opinion shall cover the Statement of Financial Position and Statement of Activities. The audits shall be conducted in accordance with auditing standards generally accepted in the United States of America (GAAS), Generally Accepted Government Auditing Standards (GAGAS/ “Yellow Book”), applicable Generally Accepted Accounting Principles (GAAP), the Coast Guard Financial Resource Management Manual (FRMM – NAF sections), the Non-Appropriated Fund Instrumentalities (NAFI) Manual (Commandant Instruction M7010.5 series), the Morale, Well-Being, and Recreation Manual (Commandant Instruction M1710.13E), and other applicable regulatory guidance provided by the Government.

Issuing the GAGAS-required report on internal control over financial reporting and compliance in connection with the financial statement audits. A separate attestation engagement or separate opinion on management’s assertions regarding the effectiveness of internal controls over financial reporting is not required.

Reviewing internal controls over financial reporting and compliance as necessary to support the financial statement audits and GAGAS reporting requirements, including, at a minimum, testing and analyzing areas such as cash receipts, cash disbursements, payroll, and other material financial activity.

Payroll-related audit procedures shall include procedures necessary to determine whether payroll and benefits are properly accounted for and whether required tax reporting occurs.

The audit scope does not include testing of timekeeping or personnel authorization.

Identifying and communicating reportable findings, deficiencies, or recommendations for improvement related to financial reporting, compliance, and fiscal operations of the Activity Funds, as applicable.

1.4 APPLICABLE DOCUMENTS

The following documents provide specifications, standards, or guidelines that must be complied with in order to meet the requirements of this contract.

General administrative, financial, personnel, and operations instructions are contained in Commandant Instructions M1710.13 series, Coast Guard MWR Manual, M7010.5 series - Coast Guard Non-Appropriated Fund Instrumentality Manual, and M12271.1 series - Non- Appropriated Fund Personnel Manual, supplemented with other CG Headquarters’ Instructions and local command guidance. The Contract Auditor should note that Coast Guard policy is updated periodically. Before the engagement, the Contract Auditor should ensure that Coast Guard policy documents, as stated herein have not been amended.

Previous financial statements and audit reports will be made available to the Contractor after contract award for reference purposes. Copies of past audits and related materials will not be made available before award. Each NAFI prepares an annual budget report.

Monthly budget to actual reports are prepared for local management purposes. The last AAF and AcAF audits were completed in 2022. The last CAF audit was completed in 2020.

For the base-period FY2026 audit, the Contractor is not required to test or report on the status of findings or corrective actions from audits completed in 2020 or 2022, or from prior inspections or management reviews. For option years, the Contractor shall report on the status of corrective recommendations from the immediately preceding contract-year audit, beginning with the FY2026 base-year audit.

1.5 ACTIVITY FUND GENERAL INFORMATION

The U.S. Coast Guard Academy’s Activity Funds (AAF, CAF and AcAF) accounting records are maintained on-site using on-line QuickBooks Pro accounting software. The modules may consist of a Chart of Accounts, Accounts Payable, Accounts Receivables, and a General Ledger. Payroll is processed with ADP payroll service contracted by the Community Services Command. The accounting function is performed on site by each of the Activity Fund Business Managers.

Copies of Activity Fund accounting records including a balance sheet, profit & loss statement, aged accounts payable report, and aged accounts receivable report are available and may be requested as part of the audit process.

2.0 SPECIFIC REQUIREMENTS/TASKS

The Contractor must complete an audit of the three activity funds (AAF, CAF and AcAF) according to Generally Accepted Government Auditing Standards (GAGAS/ “Yellow Book”), Coast Guard Financial Resource Management Manual (FRMM – NAF sections), with standards and procedures set forth in the Non-Appropriated Fund Instrumentalities (NAFI) Manual (Commandant Instruction M7010.5 series), Morale, Well-Being, and

Recreation Manual (Commandant Instruction M1710.13E), and other regulatory guidance, as applicable.

The three audits will cover the Fiscal Year ending June 30, 2026.

2.1 DRAFT AUDIT REPORT

The Contractor shall submit the three draft audit reports for AAF, CAF, and AcAF to the respective Activity Fund Business Managers and the Academy Comptroller. After the business managers have reviewed the draft report for factual accuracy and provided management comments, the Contractor will make all appropriate changes and send the revised PDF draft report to each manager, who will in turn forward the draft through the chain of command, including the Academy Comptroller and the Director of Business Operations.

The Contractor shall make changes necessary to clarify the findings and statements made in the draft audit report and cooperate with each of the three activity funds (AAF, CAF and AcAF) as necessary to resolve any audit findings and disputes.

The Contractor must email the three Draft Audit Reports to the Academy Comptroller at:

Stephen.A.Hart@uscg.mil

2.2 EXIT BRIEFING

If requested, the Contractor must be available to conduct an exit briefing (virtual is acceptable) with the AAF, CAF and AcAF business managers, and the corresponding chain of command, including the Academy Comptroller and the Director of Business Operations, to discuss the audit report once it has been finalized.

2.3 FINAL AUDIT REPORT FORM AND CONTENT

The Contractor must address the audit report to the Director of Business Operations, U. S.

Coast Guard Academy.

The report must contain these parts:

A report and opinion on the financial statements’ examination, consisting of a statement of the Contractor’s scope, and an opinion on the financial statements according to GAAP, GAAS, Generally Accepted Government Auditing Standards (GAGAS/ “Yellow Book”), Coast Guard Financial Resource Management Manual (FRMM – NAF sections), the Non-Appropriated Fund Instrumentalities (NAFI) Manual (Commandant Instruction M7010.5 series), Morale, Well-Being, and Recreation Manual (Commandant Instruction M1710.13E), and other regulatory guidance, as applicable. Compliance with and reporting under the Chief Financial Officers Act of 1990 is not a requirement of this engagement.

A GAGAS report on internal control over financial reporting and compliance issued with the audit. A separate attestation engagement, examination-level report, or separate opinion on management’s assertions regarding the effectiveness of internal controls over financial reporting is not required. The report shall include findings, if any, and recommendations to improve the internal control environment.

Each finding will include a regulatory citation or criteria to identify the laws, regulations, directives, or standards against which the condition is measured.

(a) Each finding, labeled as such, will include whenever feasible, quantifiable terms of the effect of the condition and its impact, consequences, or significance on cost, performance, or lost sales. Each finding also should include those other elements required by GAO Standards, including the condition, cause, effect and criteria, and recommendations to correct the finding.

(b) Separate and number each finding by seriousness or materiality concerns to highlight and identify important areas and facilitate follow-up.

(c) NOTE: Management’s comments will be required through follow-up action initiated by the USCGA Director of Business Operations, which requires NAFI units to comply with recommendations in accordance with Coast Guard and GAO directives.

A presentation of the applicable financial statements for the year ending 30 June 2026 for each of the three Activity Funds. For AAF and CAF, the presentation shall include the Operating Summary, consisting of the Balance Sheet and Income Statement. For AcAF, the presentation shall include the Statement of Financial Position and Statement of Activities. The income statement presentation should include a summary of all revenue and expenses and a breakdown showing results for business activities. A budget-to-actual statement is not required.

2.4 FINAL AUDIT REPORT DELIVERY

The Contractor shall deliver three physical, bound final report copies for each of the three Activity Funds, for a total of nine physical, bound copies, and shall also provide electronic PDF copies.

The Contractor shall deliver the final audit reports to the Academy Comptroller.

U.S. Coast Guard Academy Comptroller (bf) 15 Mohegan Ave

New London, CT 06320

Email: Stephen.a.hart@uscg.mil

The management letter must be bound as a part of each of the three audit reports.

The Contractor will have completed all work required under this contract only on delivery and acceptance of the final audit reports.

2.5 REPORTING ISSUES

The Contractor must report any suspected fraud, waste, mismanagement, abuse or any other illegal or unethical action by NAF personnel or vendors to the Coast Guard Academy Comptroller and the Coast Guard Academy Director of Business Operations.

2.6 PERFORMANCE REQUIREMENTS

The Contractor must maintain independence and objectivity throughout the engagement.

All financial data shall be treated as proprietary and confidential information. The Contractor shall safeguard and protect sensitive information, limit disclosure to personnel with a need to know, and ensure secure transmission and storage of documents.

The Contractor shall use encrypted computers, secure encrypted internet-based file transfer, secure email, and password-protected software programs, as appropriate, for this engagement.

At the end of performance, Government records in the Contractor’s possession shall be returned to the Government or destroyed in accordance with Government direction.

3.0 CONTRACTOR PERSONNEL

The Contractor shall provide qualified personnel to perform all requirements in this SOW.

The Contractor must be an independent CPA firm or licensed CPA and must have experience performing audits under applicable standards, including experience with U.S.

Government, nonprofit, or NAFI audits.

Documentation demonstrating technical capability may include CPA firm/license information, resumes of key personnel, identification and qualifications of the Project Manager, relevant GAGAS, Government, nonprofit, or NAFI audit experience, past performance references, technical approach, staffing plan, and proposed performance schedule.

Peer review reports, Yellow Book continuing professional education documentation, and quality-control documentation are not required with the initial proposal but may be requested by the Government if deemed necessary.

A Project Manager must be assigned to coordinate data gathering, to interface with each of the three Activity Fund Business managers, and to set up any onsite visits (if required).

3.1 SECURITY AND ACCESS

The Contractor will be granted access to NAF system, financial records, and facilities as required. All Contractor personnel must comply with Coast Guard security protocols and privacy rules.

REAL ID-compliant identification is required for access to the U.S. Coast Guard Academy for onsite fieldwork.

4.0 PERIOD OF PERFORMANCE

The period of performance for this contract is a one-year base period with three one-year option periods as follows:

Base Period: FY2025-2026 Audit, for fiscal year ending June 30, 2026 Option Period One: FY2026-2027 Audit, for fiscal year ending June 30, 2027 Option Period Two: FY2027-2028 Audit, for fiscal year ending June 30, 2028 Option Period Three: FY2028-2029 Audit, for fiscal year ending June 30, 2029

4.1 PLACE OF PERFORMANCE

The primary place of performance will be the Contractor’s facilities.

4.2 TRAVEL

The Contractor may schedule onsite visit(s) for fieldwork at the U.S. Coast Guard Academy in New London, Connecticut, if the Contractor determines onsite fieldwork is necessary.

The Project Manager shall coordinate visit dates with the COR.

If the Contractor anticipates onsite fieldwork, the proposal shall reflect all anticipated travel in the applicable travel CLIN.

4.3 POST AWARD CONFERENCE

The Contractor must attend a Post Award Conference with the Contracting Officer’s Representative (COR) no later than seven (7) business days after the date of award. The purpose of the Post Award Conference, which will be chaired by the COR is to discuss technical and contracting objectives of this contract and to introduce team members. The Post Award Conference will be held via teleconference.

5.0 GOVERNMENT FURNISHED RESOURCES

The Government will provide access to Government records, systems, reports, and information necessary to perform the audits.

The Government will facilitate access to Coast Guard Academy facilities for any approved or required onsite fieldwork.

The Government will not furnish Contractor facilities, equipment, supplies, or other Contractor resources.

6.0 CONTRACTOR FURNISHED PROPERTY

The Contractor must furnish all facilities, materials, equipment and services necessary to fulfill the requirements of this contract.

7.0 GOVERNMENT ACCEPTANCE PERIOD

The Contracting Officer Representative (COR) will review deliverables within five (5) business days and provide the contractor with an email that provides documented reasons for non-acceptance. If the deliverable is acceptable, the COR will send an email to the Contractor notifying it that the deliverable has been accepted.

7.1 CORRECTION OF DEFICIENCIES

The COR will have the right to reject or require correction of any deficiencies found in the deliverables that are contrary to the information contained in the Contractor’s accepted proposal. In the event of a rejected deliverable, the Contractor will be notified in writing by the COR of the specific reasons for rejection. The Contractor may have an opportunity to correct the rejected deliverable and return it per delivery instructions.

8.0 DELIVERABLES

The contractor must consider items in BOLD as having mandatory due dates.

ITEM

SOW

REFERENCE

DELIVERABLE / EVENT DUE BY

DISTRIBUTION

1 4.3 Post Award Conference Within 7 business days of contract award

N/A

2 4.2 Onsite Visit to USCGA for fieldwork, if determined necessary by Contractor

As mutually agreed, by Contractor and Government

COR

3 2.1 Draft Audit Reports for AAF, CAF and AcAF

Within 70 days of contract award

Comptroller and respective Activity Fund Business Managers

ITEM

SOW

REFERENCE

DELIVERABLE / EVENT DUE BY

DISTRIBUTION

4 2.3, 2.4 Final Audit Reports for AAF, CAF and AcAF

Within 21 days after Contractor receives consolidated Government comments on draft reports

Comptroller

5 2.2 Exit Brief, if requested by Government

As mutually agreed after audit reports have been finalized

COR,

Comptroller, Activity Fund Business Managers

8.1 ACCEPTANCE CRITERIA

The three audits will be considered complete when:

All deliverables have been submitted in accordance with this Statement of Work.

Findings and recommendations have been presented to NAF leadership.

Any critical compliance issues are clearly documented with recommended corrective actions.

9.0 CONTRACT STRUCTURE

This contract shall be funded with appropriated funds. Each audit requirement shall be assigned a distinct Contract Line-Item Number, CLIN, for each contract year.

Travel shall be established as a separate travel CLIN for the base period and each option year.

The Contractor shall price all travel separately from labor and other direct costs.

Travel will be authorized only when essential to fulfill the requirements of this contract and shall comply with the Federal Travel Regulation, the Joint Travel Regulations, and applicable agency travel policies.

Per diem shall not exceed applicable GSA rates. Privately owned vehicle mileage shall be reimbursed at the current GSA-authorized rate in effect at the time travel occurs. Airfare shall comply with Federal Travel Regulation requirements, including use of the least costly coach-class fare consistent with mission requirements and use of U.S. flag carriers when required under the Fly America Act.

Actual travel charges shall be invoiced separately and supported by receipts where required. The Government reserves the right to reject or adjust travel costs that do not comply with applicable travel regulations or contract requirements.

10.0 POINTS OF CONTACT

Points of Contact at USCGA:

NAME EMAIL

Contracting Officer SK1 Kayla Rex Kayla.L.Rex@uscg.mil Contracting Officer Representative (COR)

Ms. Tamara McKenna Tamara.S.McKenna@uscg.mil

Director of Business Operations

Mr. Mark Murphy Mark.S.Murphy@uscga.edu

Comptroller, USCGA CDR Stephen Hart Stephen.A.Hart@uscg.mil Athletics Activity Fund Ms. Christie Burns Christie.P.Burns@uscga.edu Cadet Activity Fund Ms. Lara Schrage Lara.J.Schrage@uscga.edu Academics Activities Fund Mr. Sean Geisman Sean.Geisman@uscg.mil