Addendum # 1 - RFP # 2024-013.pdf

CITY OF SALEM

PURCHASING DEPARTMENT

114 NORTH BROAD STREET

P.O. BOX 869

SALEM, VA 24153

PHONE (540) 375-3063 FAX (540) 375-4057

DATE: FEBRUARY 8, 2024

RFP # 2024-013

AUDIT SERVICES

DATE AND TIME PROPOSAL DUE: FEBRUARY 15, 2024 AT 3:00 P.M.

ADDENDUM # 1

This Addendum # 1, dated February 8, 2024, amends or supplements Request for Proposal (RFP) # 2024-013 as indicated below:

I. Vendor Questions:

1. What were the prior year audit fees?

The prior year audit fees were $132,050, which included the City, Schools, Sheriff’s Office Procedures, VRS examination additional work required due to federal programs, GASB 96, Cardinal Criminal Justice Academy and VASAP.

2. What is the level of effort/hours that the incumbent has provided for the previous years audits?

This information is not available from the City of Salem.

3. Is the incumbent allowed to bid? Which firms have been invited to bid?

Yes, the incumbent is allowed to submit a proposal. All firms who meet the requirements of a governmental audit are eligible to bid. This RFP was placed on eVA and is open to any firm that wishes to submit a proposal.

4. Are there any improvements you would like to see in the audit process?

No, we do not have any improvements we would like to see at this time.

5. Are there any significant changes in operations in the current year vs. the prior year including changes in policies and procedures, personnel, or the reporting entity?

The City of Salem hired a new City Manager who began his employment on 1/8/24.

6. Why is the City requesting a proposal? (i.e., rotation cycle, fresh perspective desired, governing board request, cost)

Our current audit services contract is expiring on June 30, 2024.

7. Please comment on and/or provide a listing of audit schedules provided by the City to the auditor (e.g.;

PBC listing)?

This information is not available.

8. Please comment and/or provide journal entries proposed by the auditors in the prior year?

We did not have any journal entries proposed by the auditor for FY2023.

9. Please comment and/or provide a listing of findings or comments made by the auditor to the governing body. Are copies of all auditor-submitted documents from the prior year available for review? (i.e., management letter, governance communication)

The Annual Comprehensive Financial Report and the Management Letter for FY2023 have been included for reference. There was one finding that can be located on page 152 of the ACFR. The ACFR is available on the City website at: https://www.salemva.gov/ArchiveCenter/ViewFile/Item/1050

10. Any items in management letters that have been subsequently addressed?

No.

11. Please comment on extent of decentralized operations within the City? Describe any decentralized accounting functions that may require site visits during the audit.

The only site visits that are required during the audit would be for testing of inventory counts at the Electric Department and the Civic Center, as well as highway maintenance testing at the Streets Department.

12. What computer systems are used for general ledger operations? Which systems manually interface with the general ledger? Which systems automatically interface with the general ledger?

The City of Salem and Salem City Schools use New World for our financial work, Kronos for payroll and HRIS, PCI for taxes, and CityWorks for work orders. An interface has been developed for PCI and CityWorks.

13. How many years have the current auditors being serving the City? How many years have the current engagement partner/principal served the City?

Brown, Edwards and Company has audited the City and Schools since fiscal year 2019. During that time, we have worked with the same engagement partner.

14. Are you satisfied with the current auditor’s (a) timeliness, (b) pro-activeness on communications, (c) involvement outside of the audit process, and (d) value they provide to your organization?

Yes, the City of Salem is satisfied with the current auditor.

15. Has there been any disagreement with the current auditor firm? If yes, please provide some background on the issue.

The City has not had any disagreements with the current auditor.

16. Has there been any untimely (not retirement related) resignations of management level employees?

No.

17. Has the City investigated a fraud in the last two years?

No.

18. What are the two most significant issues facing the City in the next two years?

The main issue facing the City is the continuing implementation of new GASB standards.

https://www.salemva.gov/ArchiveCenter/ViewFile/Item/1050

19. Describe any relationships with third party service providers used by the entity that may have an impact on the accounting or financial reporting of the entity (i.e., ADP, Paychex, etc).

The City does not use any third party service providers.

20. In RFP section titled VII. Instructions to Offerors, it states, “Each proposal a transmittal letter, technical proposal and price proposal. The signed transmittal letter should briefly state the Offeror’s understanding of the work to be done, the commitment to perform the work within the time period and a statement why the firm believes itself to be the best qualified to perform the engagement.” Can you please clarify if firms should submit the technical and cost proposals in one proposal document or if you would like firms to submit their technical and cost proposals in separate documents?

The proposing firm may submit one document containing the transmittal letter, technical proposal and price proposal.

BY SIGNING THIS DOCUMENT, THE BIDDER ACKNOWLEDGES THAT THEY HAVE RECEIVED THIS ADDENDUM # 1 AND

FULLY UNDERSTANDS THESE CHANGES.

***THE SIGNED ADDENDUM MUST BE INCLUDED IN THE BID SUBMITTAL***

BIDDER’S SIGNATURE:

COMPANY:

END OF ADDENDUM # 1 TO RFP # 2024-013