Appendix B - Written Response Packet.docx

appendix b: Written Response Packet

1801 Hermitage Boulevard, Suite 210 Tallahassee, FL 32308

When completing this Written Response Packet, the Respondent should give clear, concise, and, where appropriate, quantifiable replies to all questions. The length of the Response is at the discretion of the Respondent, however, Responses are expected to be brief and to contain full and fair disclosure of essential elements without references to an appendix or attachment, unless otherwise requested. Where an attachment is requested, the Respondent may provide the supporting material as a separate attachment and clearly reference it in the applicable response.

This packet is made available in Microsoft Word on the Board’s website for ease of completion.

Please visit: Board Reports - 529 College Savings Plans | Florida Prepaid College.

TAB 1: Invitation to Negotiate Acknowledgement

1801 Hermitage Boulevard, Suite 210 Tallahassee, FL 32308

This sheet and the accompanying negotiation documents constitute an offer from the Respondent to provide the services detailed in the solicitation under the contractual terms provided therein.

By completing this acknowledgment, I agree to abide by all conditions of this negotiation and certify that (1) I am authorized to sign this response and (2) that the offer complies with all requirements of the solicitation.

Respondent (Firm):

Contact Person:

Address:

Telephone:

E-Mail Address:

Authorized Signature:

Date:

Printed Name & Title:

Tab 2: Minimum Qualifications

Respondent:

The following represents minimum qualifications for this ITN. Respondents must enter “Yes” or “No” for each minimum qualification below. A “Yes” response affirms that the Respondent satisfies the qualification as of the Response deadline. Any Respondent that does not satisfy all minimum qualifications shall be rejected.

MINIMUM QUALIFICATIONS:

Yes/No

Respondents must affirmatively state, in writing, that as of the Response deadline, the Respondent:

Will assign an engagement partner who holds an active Certified Public Accountant (CPA) license in good standing and ensure all personnel performing audit services meet applicable professional qualification standards and comply with Generally Accepted Auditing Standards (GAAS), Government Auditing Standards (GAGAS), and the AICPA Code of Professional Conduct.

The Respondent’s proposed engagement partner must have at least five years of relevant experience providing audit and accounting services to governmental or nonprofit entities, or a combination thereof. This experience must include financial statement audit engagements of comparable size and complexity to the services required under this ITN. Preference will be given to Respondents whose proposed engagement partner has experience providing audit and accounting services to qualified tuition programs established under Section 529 of the Internal Revenue Code, qualified ABLE programs established under Section 529A of the Internal Revenue Code, or governmental pension plans at the federal, state, or local level.

Agrees to provide the services detailed in Section 3 and satisfy all other requirements of this ITN.

Is a legal entity duly authorized and licensed to practice public accounting in the State of Florida and maintains good standing with all applicable regulatory authorities and the state in which it is organized.

Has no material conflict of interest involving its organization, key professionals, Board staff, or members of the Board.

Tab 3: Organizational Experience

Respondent:

0. Organization Overview Provide a concise organization overview, including:

Legal name, year established, ownership structure, total number of employees, core service offerings, locations, and the office(s) that will serve the Board. Describe any material organization changes within the past three years (e.g., mergers, acquisitions, restructuring, leadership).

Response:

Relevant Audit Experience Describe the Respondent’s experience auditing Section 529 qualified tuition programs, Section 529A qualified ABLE programs, governmental pension plans, and other governmental or nonprofit entities with significant investment activities. Include the years of experience and types of services provided in each applicable area. Where direct experience is limited, describe comparable engagements of similar size and complexity. Distinguish the Respondent’s overall experience from that of the proposed engagement partner.

Response:

Proposed Engagement Team Identify the proposed engagement partner, manager, and other key personnel, including specialists. For each individual, provide their title, proposed responsibilities, professional credentials, academic qualifications, years of relevant experience, length of employment with the firm, and experience with comparable audits. Distinguish experience gained by the proposed personnel from experience held elsewhere within the firm. Describe the proposed engagement partner’s and manager’s availability during fieldwork and throughout the year, including their roles in resolving issues and expected response times. Identify the primary day-to-day contact for Board staff, including whom staff should contact first with questions and how matters would be escalated to the engagement manager or partner when needed.

Response:

Subcontractors and Outside Specialists Identify any proposed subcontractors, outside specialists, or consultants, including their qualifications, services to be performed, and relationship to the Respondent. State the location from which each subcontractor will work or access Board information, and any software or hosting platforms they will use. Explain how their work would be supervised and reviewed. If none are proposed, state so. The Board reserves the right to approve all subcontractors as part of the negotiation process.

Response:

Staffing Capacity and Continuity Describe how the Respondent would maintain sufficient staffing and continuity throughout the engagement. Address anticipated availability of key personnel, competing client commitments, staff turnover, replacement procedures, and access to additional technical resources when needed. Summarize staff turnover and engagement partner or manager replacements on comparable audit engagements during the past three years. Explain the reasons for significant changes and how continuity was maintained.

Summarize the Respondent’s record of meeting agreed report issuance deadlines for comparable audit engagements completed during the past three years. Include the number of engagements completed and the number issued on time, using the originally agreed deadlines. Explain significant delays, distinguishing those attributable to the Respondent from those arising from client readiness, outstanding information, or other circumstances. Describe how delays were communicated and addressed.

Response:

Firm Quality Management and External Review Describe the Respondent’s firmwide quality management procedures. Provide its most recent external peer review or equivalent quality review report, including accompanying findings and the firm’s response, if applicable. State whether the review included governmental audit engagements and describe the status of any corrective actions.

Response:

Client References Provide at least three client references for comparable audit engagements. Include the client’s name, nature of operations, services provided, engagement dates, reference contact information, and proposed team members who participated in the engagement.

Response:

Auditor Independence Describe the Respondent’s procedures for identifying, evaluating, and addressing threats to auditor independence. Identify any audit, accounting, consulting, or other services provided to the Board, Foundation, or ABLE United within the past five years, and explain whether those services would affect the Respondent’s independence for this engagement.

Response:

Professional Liability Insurance Describe the Respondent’s errors and omissions or professional liability insurance coverage, including the carrier, policy limits, and deductible or retention. Identify any material exclusions relevant to the proposed services.

Response:

Comparable Engagement Examples Provide up to two examples of comparable audit engagements in which proposed team members addressed significant accounting, financial reporting, internal control, or audit challenges. For each example, describe the organization, issue encountered, procedures performed, professional judgments applied, outcome, and participating team members. Explain how the experience would benefit the Board, Foundation, and ABLE United.

Response:

Proposed Contract Changes Identify any material changes the Respondent would request to the proposed contract in Appendix A, including its exhibits. For each requested change, identify the applicable paragraph or exhibit item, provide the proposed revision, and explain the reason for the change. If no material changes are requested, state so.

Response:

Regulatory Restrictions, Litigation, and Conflicts of Interest

Please state whether or not there are any past or pending regulatory restrictions, consent orders, stipulations, or litigation to which the Respondent, any subcontractor, any Related Entity of the Respondent or any subcontractor, or any of their principals, owners, directors or officers, has ever been a party that would affect its or their ability to provide the required services or which alleges any unfair, illegal or unethical business practice. If so, a detailed description of each must be provided.

Response:

Please state whether or not any officers, principals, owners, directors, and all proposed contract employees of the Respondent or any subcontractor that will provide services under this ITN have been convicted of, or have pled guilty or nolo contendere to, any felony, regardless of whether adjudication of guilt was withheld. If so, a detailed description of each incident must be included.

Response:

Please state whether or not any penalties, fines, or liquidated damages have been imposed against the Respondent, any subcontractors, or any Related Entity of the Respondent or any subcontractor, including without limitation thereto, those associated with any contract for services entered into by the Respondent, any subcontractor, or any Related Entity of the Respondent or any subcontractor, within the past five (5) years. If so, a detailed description of each such incident, including the amount of the penalty, fine, or liquidated damages imposed, must be included in the Response.

Response:

Please state whether or not the Respondent or any subcontractor has ever been involved in any litigation related to providing services offered in this Response. If so, a detailed description of each lawsuit must be provided.

Response:

Please state whether or not the Respondent or any Related Entity has ever been contacted by any regulatory body (federal, state, or industry) regarding any potentially illegal, non-compliant, unethical or improper activities involving the Respondent, any Related Entity, or any of the employees of the Respondent or any Related Entity. If so, a detailed description must be provided that indicates whether your firm or any Related Entity conducted an investigation of those matters.

Response:

Please confirm that the Respondent has not been placed on the convicted vendor list and that it will comply with the provisions of s. 287.133, F.S. Section 287.133(2)(a), F.S., which provides:

A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid, proposal, or reply on a contract to provide any goods or services to a public entity; may not submit a bid, proposal, or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit bids, proposals, or replies on leases of real property to a public entity; may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity; and may not transact business with any public entity in excess of the threshold amount provided in s. 287.017 for CATEGORY TWO for a period of 36 months following the date of being placed on the convicted vendor list.

Response:

Please confirm that the Respondent has not been placed on the discriminatory vendor list and that it will comply with the provisions of s. 287.134(2)(a), F.S. which provides that:

An entity or affiliate who has been placed on the discriminatory vendor list may not submit a bid, proposal, or reply on a contract to provide any goods or services to a public entity; may not submit a bid, proposal, or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit bids, proposals, or replies on leases of real property to a public entity; may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity; and may not transact business with any public entity.

Response:

Pursuant to the provisions of Chapter 112, F.S., Respondents must disclose with their Response the name of any officer, director, or agent who is also an employee of the State of Florida, the Board, or any State agency. Respondents must disclose the name of any state employee who owns, directly or indirectly, interest of five percent or more in the Respondent. Respondents must disclose all investment products, annuities, mutual funds, or other similar type savings plans that are marketed or sold by the Respondent or its proposed subcontractors for other states as a part of a prepaid college fund, a college savings fund, or ABLE program.

Response:

Tab 4: Annual Audit SERVICES

Respondent:

0. Audit Transition Describe the proposed approach and timeline for assuming responsibility for the annual audits of the Board, Foundation, and ABLE United. Address coordination with the predecessor auditor, access to prior-year audit documentation, understanding each entity’s operations, and evaluation of unresolved prior-year matters. Identify key transition milestones and information needed from Board staff and service providers.

Response:

Audit Methodology and Risk Assessment Describe the proposed audit methodology, including planning, materiality, risk assessment, consideration of fraud risks, internal control considerations, substantive testing, and analytical procedures. Explain how the approach would be tailored to each entity’s operations, financial reporting requirements, and significant audit risks, and how it would comply with the auditing standards required by this ITN.

Describe the Respondent’s experience conducting audits under the Florida Single Audit Act and the proposed approach to ABLE United’s state single audit. Address major state project determination, testing of compliance and internal control over compliance, the Schedule of Expenditures of State Financial Assistance, and required reports and schedules.

Response:

Audit Schedule and Required Client Assistance Provide a proposed annual audit schedule that meets the planning and reporting deadlines in Contract Exhibit B, including the July 31 initial document request list, August 1 planning meeting, November 15 draft reports, and November 30 final reports. Identify interim and year-end fieldwork, draft and final reporting milestones, management review periods, and anticipated presentations.

Describe the records, schedules, reconciliations, staff assistance, and service provider support expected at each stage. Explain how progress, outstanding requests, and potential delays would be monitored and addressed.

Identify the platform proposed for managing audit requests and securely exchanging documents, and briefly describe how Board staff would upload files, track request status, and communicate with the audit team.

Provide estimated hours by entity, staff level, and audit phase, separately identifying first-year transition hours. These hours are planning estimates and do not change the proposed lump-sum annual audit fees.

Response:

Internal Controls and Service Providers Describe the approach to understanding and evaluating internal controls over financial reporting and determining the nature and extent of control testing. Address controls performed by third-party recordkeepers, accounting providers, custodians, and other relevant service organizations.

Explain how relevant service organization control (SOC) reports, reporting-period gaps, exceptions, and complementary user entity controls would be evaluated, and how additional audit procedures would be determined.

Response:

Audit Evidence and Data Reliability Describe how the Respondent would obtain sufficient appropriate audit evidence across the Board’s participant recordkeeping, accounting, banking, custody, and investment systems. Address interfaces among these systems, testing the completeness and accuracy of reports and transaction populations, and evaluating reconciliations.

Explain the approach to testing participant contributions, distributions, cancellations, refunds, returned payments, and year-end cutoff. Describe how inconsistent data, incomplete records, or unresolved reconciliation differences would be investigated and addressed.

Response:

Investments and Significant Estimates Describe the proposed approach to auditing investment balances, valuation, income, transactions, and related disclosures, including reconciliation of participant investment balances to the appropriate underlying records.

For prepaid liabilities, address testing participant data supplied to the actuary, evaluating significant assumptions and changes, and reconciling actuarial results to the financial statements. Explain the approach to other significant estimates and how the Respondent would use specialists and coordinate with actuaries, custodians, investment managers, and other relevant service providers.

Response:

Financial Statements and Accounting Standards Describe the approach to evaluating each entity’s financial statements and disclosures for conformity with accounting principles generally accepted in the United States and the accounting standards applicable to that entity.

Address new or revised standards, unusual or complex transactions, and proposed accounting or disclosure changes. Explain the respective responsibilities of the Respondent and management in the financial statement preparation and review process.

Response:

Engagement Review and Audit Quality Describe the engagement-level supervision, review, and approval procedures that would apply to these audits. Address engagement partner involvement, technical consultation, review of significant judgments, and engagement quality review procedures, as applicable.

Explain how sufficient time would be provided for review and resolution of significant matters before reports are issued.

Response:

Audit Reporting and Communication Identify the audit reports, internal control reports, management letters, governance communications, and presentations proposed for each entity. Describe how significant findings, control deficiencies, proposed adjustments, and accounting disagreements would be communicated promptly to management and those charged with governance.

Explain the process for discussing recommendations, obtaining management responses, and following up on prior-year findings. Provide a redacted sample report or management letter and a sample governing board or audit committee presentation as attachments.

Response:

Data Security and Use of Technology Describe your security framework, access controls and MFA, encryption, data location and any non-US access, retention and disposal, and recovery targets. Identify security certifications held by the Respondent. For each platform proposed to exchange or store Board information, provide its current SOC 2 Type II report or equivalent. Disclose any security incident involving client data in the past three years.

Identify any artificial intelligence, data analytics, or other automated tools proposed to receive or process Board information, including their use on transaction populations. Describe each tool’s data retention and training terms, human oversight, and how results would be validated.

Response:

Tab 5: Special Consulting and Advisory SERVICES

Respondent:

0. Consulting and Advisory Services Describe any additional consulting or advisory services offered beyond the required audit scope that would enhance the Board’s financial reporting, accounting practices, internal controls, or risk management. Examples may include guidance on complex accounting matters, evaluation of financial reporting processes, recommendations for operational efficiencies, or assistance with implementing new accounting standards. Explain how these services would benefit the Board and how auditor independence would be maintained.

Response:

Ongoing Consultation and Responsiveness Describe the Respondent’s approach to providing ongoing consultation and advisory support to Board staff throughout the fiscal year. Address key personnel availability, expected response times, and how recommendations would be communicated and documented. Identify which routine consultations and minor research requests are included in the annual audit fee and which would be billed separately.

Response:

Training and Technical Resources Describe any additional training, technical resources, or knowledge-sharing opportunities your firm would provide to strengthen Board staff’s understanding of accounting standards, financial reporting requirements, internal controls, and audit readiness. Explain how these resources would be delivered, their anticipated frequency, and whether they would be included in the proposed fees or billed separately.

Response:

Comparable Consulting Engagements Provide up to two examples, if available, of comparable consulting and advisory services successfully implemented for other clients. Describe the problem addressed, the Respondent’s role, implementation requirements, and results achieved. Identify whether the proposed engagement team participated in the work and whether a redacted example is available.

Response:

Tab 6: PRICING SCHEDULE

Respondent:

0. Respondents shall provide complete pricing for all audit and accounting services. Prices must include all labor, tools, overhead, travel, and other costs unless specifically identified as separately reimbursable. All first-year transition costs must be included in the proposed Year 1 annual audit fees and shall not be billed separately. State all assumptions and optional services.

Annual Audit Services (Contract, Exhibit B, items 1 – 14) (Lump Sum):

Special Consulting and Advisory Services (Contract, Exhibit B, item 15) (Per Hour):

* Optional renewal periods ** Include all additional position types in the “Other” category and provide the corresponding hourly rate