Amendment 01 to SOL72030620Q00002.pdf

Amendment # 01

Solicitation No. 72030620Q00002_Audit Management Plan 2020_Clarification Questions

Q1. The RFQ states “the plug dollar number provided for Travel & Per Diem must be used” (page 71) and “all plug dollar figures provided shall be used in the Offeror’s price proposal” (page 72). We understand $90,000 is a plug number USAID inserted to the budget for administrative purposes. We would like to confirm that USAID intends for the Offerors to submit their best estimate travel cost for each Group (Group A – E) on a group by group basis via our best estimate travel cost and not use the plug dollar figure of $90,000 in our LOE/Budget and detailed travel plan/budget.

USAID Response: The amount $90,000 is for all groups.

Q2. As presented, the one objective noted below could potentially require an audit of entity wide financial statements. Could USAID please: 1) Clarify whether it is USAID’s intent to have Offerors propose to provide quotes for entity wide Financial Statements and 2) Identify which entities in Groups A

– E IPs would require audits of entity wide financial statements given the significant impact on level of effort estimates.

• For a non U.S. Organization, perform an audit of the indirect cost rate(s) if the auditee has been authorized to charge indirect costs to USAID using provisional rates. If so, the fund accountability statement should be reconciled to the USAID funds included in the general purpose income statement by a note to the fund accountability statement. If the auditee does not have a USAID authorized indirect cost rate, this fact must be disclosed in the report.

• For a non U.S. Organization, if the auditee has been authorized to charge provisional indirect cost rate, then perform a financial audit of the auditee’s organization-wide general-purpose financial statements.

• The audit of the general purpose financial statements must be performed in accordance with GAGAS. The objective of this audit is to express an opinion on whether the general purpose financial statements present fairly, in all material respects, the results of its operations for the year then ended, in conformity with generally accepted accounting principles.

USAID Response: USAID/Afghanistan is seeking to conduct financial and closeout audit services, including a review of compliance with vetting procedures, specifically to awards issued in Afghanistan. These are project/activity specific awards and we are not interested in entity-wide financial statements. None of the audits would be entity-wide audits and would

Q3. The RFQ states for past performance the Offerors “must provide the information using the Past

Performance Report Template Short Form”. Could USAID please clarify whether the past performance annex is included or excluded from the six page technical proposal limit?

USAID Response: The past performance information doesn’t count to the six-page limit.

Q4. In order to properly estimate travel cost for Group D IP IOM – International Organization for

Migration, we would like to request the Record Location for the IOM. Please clarify.

USAID Response: The travel costs will be estimated by the Office of Acquisition and

Assistance and based upon the actual location of the records in Afghanistan.

Q5. We understand the Task Order period of performance will be six (6) months base period from award date. Can USAID clarify expectation on audit performance/completion for certain Group IPs that have audit periods ending 3rd quarter, 2020 (i.e. AECOM, FHI360, Palladium International LLC)?

USAID Response: The six (6) month base period would begin on the date the contract is signed between USAID and the successful contractor not the IP’s fiscal year.

Q6. Would USAID consider extending the RFP submission deadline to March 30th in consideration of the question’s submission deadline to USAID by March 9th and to allow Offerors review of responses by

USAID upon posting?

USAID Response: USAID will not extend the due date of the RFQ

Q7. At B.7 OTHER DIRECT COSTS – TRAVEL

Our audit team management is made up of American CPAs and other nationality CAs who are all GAGAS accredited. If successful on this RFQ, we will need to travel to Kabul and live in a compound like the Green Village, or Kabul Star Hotel, or other places where many of the auditees, but not all, operate from. Our team will naturally be expected to visit USAID and/or the client for Entrance/Exit Conferences, COR meetings (unless he is willing to visit the audit sites), and possibly program delivery sites where physical inspection of assets and program results may be inspected. While the vast majority of such program-related visits can be performed by our local staff, can you please confirm that the international airfares, airport transfers, and compound to auditee site visits to examine original physical records (armored or soft-sided) will be allowable costs? Or, can you confirm that the review of digital records will be adequate?

USAID Response: All international travel costs and security costs are considered allowable costs.

Q 8. The RFQ seems to have sections of requirements that predate the revised 2018 Yellow Book as well as references to the newer, 2018 version. (ADS 591maa appears to align with the revised 2018 rules).

And the different Groups of target auditees have year ends that would appear to fall into or under “old” or

“revised” guidelines. (for example, the Group D IOM Closeout audit with a period to be audited {1/1-

2015-6/30/2016} would fall under the “old” guidelines, while the Group D Palladium Closeout contract with a 9/27/2020 period would fall under the “revised 2018 guidelines”. ) The 2018 Yellow Book rules state: The 2018 revision of Government Auditing Standards is effective for financial audits, attestation engagements, and reviews of financial statements for periods ending on or after

June 30, 2020 Early implementation is not permitted.

Are the successful auditors meant to apply different Yellow Book rules to the individual programs and

Implementing Partners?

USAID Response: The auditors must not follow different rules. The financial audit must include a specific audit of all the auditee’s USAID-funded programs. The objective of this engagement is to conduct a financial audit based on the fiscal year end or closeout audit of costs incurred in Afghanistan including a review of the compliance with vetting procedures and

National Technical Assistance guidelines by the auditees listed under section in accordance with the specifications outlined in the statement of work and in accordance with U.S. Generally

Accepted Government Auditing Standards (GAGAS or the "Yellow Book"); hereinafter referred to as GAGAS, issued by the Comptroller General of the United States General Accountability

Office; and , as applicable. The auditors must follow the reporting standards contained in

GAGAS for reporting on compliance which incorporate the AICPA Professional Standards. The auditor's report on compliance must set forth as findings all material instances of noncompliance, defined as instances that could have a direct and material effect on the fund accountability statement, and/or the financial statements, as applicable.

Q.9 Given that the auditees have headquarters/records in different/diverse parts of the USA, can we propose to only audit specific Groups or a Group?

USAID Response: YES

Q10. As the audit profession is moving to/towards electronic auditing, is it possible that some of the HQ records (which should be the less material indirect costs) can be “audited” remotely or electronically? Or, must the audit firm physically visit the HQs?

USAID Response: USAID requires the auditors to check that the auditee maintains records adequate to show receipt, location, condition, maintenance and use of property. Check that the auditee has properly documented property lost, damaged or destroyed. To that extent, remote auditing would be impossible to evaluate. As long as sufficient evidence is kept by the auditors for the required period of time, the auditors may also use their own independent professional judgment but must communicate and receive approval from USAID.

Q11. On page 16 of the RFQ under C.4 (A) Pre audit Document Review, point 6, there is a reference to 2

CFR 200 Subpart F on audit, and 2 CFR 200. 700 on Cost Principles. As per the required audit reporting of ADS 591maa and other clear RFQ guidance, the RFQ reporting will be the “old” OIG Guidelines with no opinion on the Internal Control reports or Compliance Reports, what of 2 CFR 200 Subpart F applies?

Also, can you please indicate where the Cost Principles are mentioned in 2 CFR 700?

USAID Response: OIG Guidelines must not be followed. USAID has clear guidance in ADS

591maa.

Q12. Can you please confirm if any of the Non-US organizations have a NICRA rate, or indirect environment, whereby the auditors will need to calculate or audit the indirect costs, including the analysis of the statutory audited financial statements? Audit step H on page 28 refers to this.

USAID Response: To answer this question, determination of the NICRA or rate will be determined at the award kick-off meeting.

Q13. As per page 29, L. (4) can you please confirm if any of the auditees had/have subrecipients or sub-contractors that might need to be reviewed or audited which might affect the planned LOE? As these are

Fixed Price Contracts, the responsibility for the auditor to highlight non-compliant situations that could lead to additional audit work is less than fair and could lead to LOE disputes.

USAID Response: To answer this question, determination of the NICRA or rate will be determined at the award kick-off meeting.

Q14. On page 37 of the RFQ, at point 6, the issue of exchange rates is mentioned. As the audit takes place over a fiscal year, and the IP will be drawing down US$, at different exchange rates over the period, many auditors calculate the annual weighted exchange rate and apply the average rate to questioned costs, especially as questioned expenses might not be specific to a single date. Can you please confirm if a weighted US$/Afgani rate is acceptable?

USAID Response: The U.S. dollar equivalent must be calculated at the exchange rate applicable at the time the local currency was disbursed to the contractor by USAID.

Q15. On page 50, at H.1, the approved Geographic Code is 937, which excludes Advance Developed

Countries. Part of our long-standing GAGAS accredited Kabul-serving staff are citizen of an Advanced

Developing country. As our audit firm is a US-based GSA contracted small business, are we allowed to utilize competent staff from a 937 country?

USAID Response: In the Solicitation, page 50, under H.1 AUTHORIZED GEOGRAPHIC

CODE, delete the paragraph in its entirety and replace with the following paragraph:

“The authorized geographic code for procurement of goods and services under this contract is 935.

In accordance with ADS 310.3.1.1.3), Code 935 is any area or country including the recipient country, but excluding any country that is a prohibited source”

End of Amendment # 01