BID 1060 Professional Auditing Services 2025.pdf

TOWN OF BRISTOL, RHODE ISLAND

10 COURT STREET

BRISTOL, RI 02809

INVITATION FOR BID

PROFESSIONAL AUDITING SERVICES

BID #1060

TOWN OF BRISTOL, RI

TOWN OF BRISTOL

INVITATION TO BID

BID No. 1060

Sealed Bids will be received until 12 noon on April 16, 2025, for the following:

Professional Auditing Services

BIDS WILL BE OPENED AT 12 NOON AT THE BRISTOL TOWN HALL, 10 COURT STREET ON

April 16, 2025 FOR THE TOWN COUNCIL MEETING OF April 16, 2025.

The Town of Bristol is requesting sealed bids for Professional Auditing Services, in accordance with all terms and specifications contained herein.

Specifications may be obtained and bids MUST be filed at the Office of the Town Clerk, 10 Court Street, Bristol, RI 02809. Specifications are available for download at https://www.bidnetdirect.com/rhode-island/bristolri by registering and/or logging in as a vendor.

Bids (one original marked “MASTER” and two copies) must be submitted in a sealed envelope and must be clearly marked on the outside, “Bid #1060- “PROFESSIONAL AUDITING

SERVICES” and addressed to the Town Clerk’s Office, Town Hall, 10 Court Street, Bristol, RI

02809. Sealed bids will be received until 12 noon on April 16, 2025.

Individuals requesting interpreter services for the hearing impaired must notify the Town Clerk’s

Office (401) 253-7000 three business days prior to the bid opening.

The Town reserves all rights to reject any and all bids, or any part thereof, or to go on the open market when it is deemed in the best interest of the Town.

MELISSA CORDEIRO

TOWN CLERK

April 3 & 10, 2025 https://www.bidnetdirect.com/rhode-island/bristolri https://www.bidnetdirect.com/rhode-island/bristolri

I. INTRODUCTION

A. General Information

The Town of Bristol is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending June 30, 2025, with the option of auditing its financial statements for each of the two [2] subsequent fiscal years. Continuation beyond the initial first year of the three-year contract will be at the discretion of the Town of Bristol.

These audits are to be performed in accordance with auditing standards generally accepted in the

United States of America, the standards for financial audits set forth in Government Auditing

Standards issued by the Comptroller General of the United States, the provisions of the federal Single

Audit Act of 1984 as amended by the Single Audit Act Amendments of 1996 and U.S. Office of

Management and Budget (OMB) Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards - Subpart F – Audit Requirements.

The minimum requirements of the Office of the Auditor General of the State of Rhode Island and the

Department of Education of the State of Rhode Island should also be followed.

There is no expressed or implied obligation for the Town of Bristol to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

To be considered, three (3) copies of a proposal must be received by the Office of the Town Clerk at

Town of Bristol, 10 Court Street, Bristol, RI 02809 by 12:00 PM on April 16, 2025. The proposals will be opened on April 16, 2025 at 12:00PM. The Town of Bristol reserves the right to reject any or all proposals submitted.

During the evaluation process, the Town reserves the right, where it may serve the Town of Bristol's best interest, to request additional information or clarifications from proposers, or to allow corrections of minor errors or omissions. At the discretion of the Town of Bristol, firms submitting proposals may be requested to make oral presentations as part of the evaluation process.

The Town of Bristol reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the Town of

Bristol and the firm selected.

It is anticipated that the selection of a firm will be completed by May 7, 2025. Following the notification of the selected firm, it is expected a contract will be executed between both parties by

June 1, 2025.

B. Term of Engagement

A three-year contract is contemplated, subject to the annual review and recommendation of the Town

Administrator and Town Treasurer with the concurrence of the Bristol Town Council.

II. NATURE OF AUDIT SERVICES REQUIRED

A. General

The Town of Bristol is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal year ending June 30, 2025 with the option to audit the Town of

Bristol's financial statements for each of the two subsequent fiscal years. These audits are to be performed in accordance with the provisions contained in this request for proposals.

B. Scope of Work to be Performed

The Town of Bristol desires the auditor to express an opinion on the fair presentation of its basic financial statements, which will include government-wide financial statements, fund financial statements, and notes to the financial statements in conformity with generally accepted accounting principles.

The auditor shall also be responsible for performing certain limited procedures, as required by generally accepted auditing standards, involving required supplementary information mandated by the Governmental Accounting Standards Board.

Required Supplementary Information shall include:

• Management’s Discussion and Analysis

• Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual

• Schedules related to defined benefit pension plans and OPEB plans, if applicable

The auditor shall also express an “in-relation-to” opinion on the supplementary financial statements and schedules based on auditing procedures applied during the audit of the basic financial statements.

Supplementary financial statements, schedules and information shall include:

• Combining fund financial statements shall be presented as supplementary information for all non-major governmental funds. Each non-major fund (included within the Special Revenue

Funds, Capital Projects Funds, Debt Service Funds, and Permanent Funds) shall be presented as separate columns in the combining fund financial statements. Similarly, combining financial statements shall also be presented for each of the other fund types when there is more than one internal service fund, enterprise fund, and fiduciary fund.

• Combining financial statements shall be presented for the General Fund when separate funds are maintained within the accounting system but the funds do not qualify as special revenue funds, in accordance with generally accepted accounting principles, and are merged with the

General Fund for financial reporting purposes.

If applicable, an audit of major programs shall be performed in accordance with the criteria outlined in OMB Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and

Audit Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F – Audit

Requirements.

• The auditors shall audit major programs as required by OMB Guidance 2 CFR part 200 -

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal

Awards (OMB Uniform Guidance) - Subpart F – Audit Requirements and express an opinion on compliance for each major program.

• Major programs shall be determined in accordance with guidance provided in OMB Guidance

2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F – Audit

Requirements.

• The auditor is not required to audit the supplementary schedule of expenditures of federal awards. However, the auditor is to provide an "in-relation-to" report on that schedule based on the auditing procedures applied during the audit of the financial statements.

Other schedules may be required by the Town and/or the State of Rhode Island Director of Revenue, Auditor General, and Department of Education or as required by the applicable section of the general laws such as, Rhode Island General Law Section (RIGL) 45-10-6 (Contents of Audit Report).

• The Tax Collector’s Annual Report shall be presented within Other Supplementary

Information to meet the requirements of RIGL 45-10-6 for additional information to the basic financial statements. The Tax Collector’s Annual report should be presented in accordance with the revised format requirements of the RI Department of Revenue - Division of

Municipal Finance (contact the Division for the most current template). The auditors engaged to audit the municipality’s financial statements shall also report on the Tax Collector’s Annual

Report, as supplementary information (“fairly presented in relation to the municipality’s basic financial statements”).

• Municipal Transparency Portal (MTP) - Enacted legislation amended Rhode Island General

Laws §45-12-22.2 and §44-35-10 to improve required reporting by creating the Municipal

Transparency Portal (MTP) which will represent a centralized location for municipal financial information. Each municipality shall include their Annual Supplemental Transparency

Report, MTP2, within their annual audited financial statements. This requires one schedule that includes (1) municipal reportable government services. The Annual Supplemental

Transparency Report, MTP2, included within the annual audit report shall also include reconciliation to the amounts included in the fund level financial statements.

The auditors engaged to audit the municipality’s financial statements shall also report on the

Annual Supplemental Transparency Report (including the reconciliations), MTP2, as supplementary information (“fairly presented in relation to the municipality’s basic financial statements”).

Auditors are not required to opine on the municipality’s determination of “reportable government services” (RGS) as defined in Section 2.1 of the Municipal Transparency Portal

Implementation Guidance. The municipality will make the determination of “reportable government services” for inclusion in the various reports required to be submitted through the municipal transparency portal. However, auditors will be expected to review the reconciliations as part of the Annual Supplemental Transparency Report, MTP2, (required for inclusion in the audited financial statements as supplementary information) to assess the inclusion of amounts reported which are not within the municipality’s general fund.

The format of the required MTP schedules and related reconciliations, as well as, the typical timeline for filing of the annual municipal data report and coordination with annual financial statement audit, are detailed in the MTP Implementation Guidance (available on the RI

Division of Municipal Finance website: Municipal Transparency Portal | RI Division of

Municipal Finance).

The Independent Auditor’s Report shall include reference to the Annual Supplemental

Transparency Report, MTP2, as supplementary information. See the Municipal Transparency

Portal Implementation Guidance for additional information.

https://municipalfinance.ri.gov/municipal-transparency https://municipalfinance.ri.gov/municipal-transparency

C. Auditing Standards to be Followed

To meet the requirements of this request for proposals, the audit shall be performed in accordance with:

• Generally accepted auditing standards as set forth by the American Institute of Certified

Public Accountants,

• The standards for financial audits set forth in the Government Auditing Standards issued by the Comptroller General of the United States,

• The provisions of the Single Audit Act of 1984 (as amended by the Single Audit Act

Amendments of 1996),

• The provisions of U.S. Office of Management and Budget (OMB) Guidance 2 CFR part

200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for

Federal Awards - Subpart F – Audit Requirements.

• The auditing and reporting requirements of the RI Auditor General, and

• The guidelines of the RI Department of Education.

D. Reports to be Issued

Upon completion of the audit of the fiscal year's financial statements, the auditor shall report on:

1. The fair presentation of the financial statements in conformity with generally accepted accounting principles based upon an audit performed in accordance with generally accepted auditing standards and Government Auditing Standards. The auditor shall also make reference to, but not opine on, required supplementary information consistent with reporting guidance in the applicable AICPA Audit

Guide.

2. Supplementary financial statements, schedules and information, are fairly stated in all material respects in relation to the basic financial statements as a whole.

• The supplementary information shall include combining fund financial statements (and if applicable, General Fund combining financial statements), the Annual Supplemental Transparency Report (MTP2, including the reconciliations), and the Tax Collector’s Annual Report.

3. Internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with

Government Auditing Standards.

• In the required reports on internal controls, the auditor shall communicate any significant deficiencies during the audit. A significant deficiency shall be defined as a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. Significant deficiencies that are also material weaknesses shall be identified as such in the report.

• Other matters, for example, control deficiencies that are not significant deficiencies or material weaknesses discovered by the auditor shall be reported in a separate letter to management.

• The report on compliance shall include all material instances of noncompliance. All nonmaterial instances of noncompliance shall be reported in a separate management letter.

4. Reports and summaries related to federal financial assistance as required by OMB

Guidance (the auditor should refer to applicable OMB guidance in effect and the applicable AICPA Audit Guide for reporting guidance) and complete SF-SAC

Data Collection to be submitted in accordance with the current method of submission for Single Audit reporting packages (per OMB Public Notice), to the

Federal Audit Clearinghouse Internet Data Entry System.

5. The supplementary schedule of expenditures of federal awards (SEFA) - the auditor is to provide an "in-relation-to" opinion on the SEFA, based on the auditing procedures applied during the audit of the financial statements.

6. Other reports that may be requested by the Director of Revenue and/or Auditor

General or as required by the applicable section of the general laws.

The management letter should include comments, and/or recommendations beyond those included in the reports described above, on such matters as:

1. Policies, procedures and practices employed by the municipality.

2. Weaknesses in the internal controls that are not “significant deficiencies.”

3. Use of resources to provide a governmental service in a reasonable, judicious, economical, and efficient manner.

4. Compliance with state laws pertaining to the municipality and with rules and regulations established by the municipality.

Upon completion of the audit, the management letter will be submitted to the Bristol Town Treasurer with copies to the Director of Revenue and the Auditor General.

The accounting firm will hold an exit conference with the Town Treasurer to discuss the audit as it relates to the respective departments. Draft copies of all audit reports and management letters shall be submitted to the Town’s Treasurer prior to the exit conference so that there will be adequate time for review.

At the conclusion of the audit, a representative of the accounting firm will be expected to appear before the Town Council to discuss the findings of the audit.

Fraud, irregularities and illegal acts.

Auditors shall be required to make an immediate, written report of all fraud, irregularities and illegal acts of which they become aware to the Town Administrator and Town Council.

E. Special Considerations

Outlined below are certain additional requirements, which the Town requires. The cost of providing these services should be included in the all-inclusive maximum price.

1. Difficulties may be encountered in implementing and complying with specific reporting requirements mandated by the GASB. The auditor will be responsible to work with the

Treasurer to ensure proper implementation and compliance with any new pronouncements effective during the contract. In accordance with Government Auditing Standards, if the firm provides non-audit services, it must evaluate whether providing the services creates independence impairment with respect to the audit of the Town.

2. The Town of Bristol audit report includes the Municipal Transparency Portal reporting as mandated by the State of Rhode Island. Limited audit procedures are required to assess compliance.

F. Potential Additional Work

1. Any amendments to the contract for additional work will be negotiated in good faith.

Provided, however, in the event that the parties cannot mutually agree upon additional work to be performed and the cost for said work, then the Town, at its option may rescind the option period. All potential additional work outside of the scope of the contract will be discussed in advance of work being completed. Any such amendments must have a written estimate to include the number of hours and dollar amounts required to complete the task to be submitted to the Treasurer.

2. Any such additional work agreed to between the Town and the audit firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid.

G. Audit Documentation Retention and Access to Audit Documentation

All audit documentation and reports must be retained, at the auditor's expense, for a minimum of five

(5) years, unless the firm is notified in writing by the Town of the need to extend the retention period.

The auditors will be required to make copies of all working papers requested by the Finance Director.

In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review audit documentation relating to matters of continuing accounting significance.

As required by Section 45-10-4 of the RI General Laws, it is understood that the contract between the municipality and the audit firm shall require the auditor or the audit firm to release any and all information obtained in the course of the engagement to the Rhode Island State Auditor General (or his designee). This information includes, but is not limited to, financial data, analysis, audit documentation, and memoranda. Audit documentation of the independent auditors shall be made available to the Auditor General (or his designee) upon request. The audit firm shall respond to a request by the Auditor General for such information promptly. Failure to provide this information shall constitute a breach of contract and the contract shall give the Auditor General standing in a court of competent jurisdiction to enforce this provision.

III. DESCRIPTION OF THE GOVERNMENT

A. Name and Telephone Number of Contact People

Carl Carulli Town Treasurer 253-7000 x118 Finance Dept.

Brendon Smith Deputy Treasurer 253-7000 x115 Finance Dept.

B. Background Information

The Town of Bristol serves an area of 10.8 square miles with an estimated population of 22,493 as of the 2020 Census. The Town of Bristol's fiscal year begins on July 1 and ends on June 30.

The accounting and financial reporting functions of the Town of Bristol are centralized within the

Finance department.

C. Fund Structure

The Town of Bristol used the following fund types and account groups in its financial reporting for the fiscal year ending June 30, 2024:

Number of Number With

Individual Legally Adopted

Fund Type/Account Group Funds Annual Budgets

General fund 1 1

Special revenue funds 63 0

Component Unit 1 1

Debt service funds 0 0

Capital projects funds 34 0

Enterprise funds 1 1

Internal service funds 0 0

Private purpose trust funds 12 0

Permanent funds 11 0

Pension trust funds 1 0

OPEB trust funds 1 0

Custodial funds 3 0

D. Budgetary Basis of Accounting

The Town of Bristol prepares its budgets on a basis consistent with generally accepted accounting principles.

E. Computer Systems

The Town presently utilizes Munis (accounting), Vision applications’ software (collections), and

ADP (payroll) along with Microsoft Excel for ancillary purposes. All financial applications are currently processed through these systems.

F. Availability of Prior Year Audit Reports and Working Papers

Interested proposers who wish to review prior years' audit reports should contact Carl Carulli at 10

Court Street, Bristol RI 02809 or by calling (401) 253-7000 ext. 118 or by email ccarulli@bristolri.gov. The Town of Bristol will make the prior year audit reports available to applicants to aid their response to this request for proposals. The audited financial statements can also be found on the Town’s website www.bristolri.gov mailto:ccarulli@bristolri.gov http://www.bristolri.gov/

IV. TIME REQUIREMENTS

A. Proposal Calendar

The following is a list of key dates up to and including the date proposals are due to be submitted:

Request for proposals issued March 25, 2025

Due date for proposals Wednesday, April 16, 2025 12:00 PM

B. Notification and Contract Dates

Selected firm notified May 2025

Contract date May/June 2025

C. Date Audit May Commence Upon Contract Award/Signature

The Town will have all records ready for audit as specified in the engagement letter.

D. Schedule for the 2025 Fiscal Year Audit (A similar schedule will be developed for audits of future fiscal years if the Town of Bristol exercises its option for additional audits.)

The auditor shall complete each of the following no later than the dates indicated.

1. Interim Work

The auditor shall complete all interim work by August 31, 2025

2. Detailed Audit Plan

The auditor shall provide the Town of Bristol by August 31, 2025 both a detailed audit plan and a list of all schedules to be prepared by the Town of Bristol.

3. Fieldwork

The auditor shall complete all fieldwork by December 1, 2025.

4. Draft Reports

The auditor shall have drafts of the audit report(s) and recommendations to management available for review by the Town Treasurer by December 9, 2025.

E. Date Final Report is Due

The Town Treasurer shall prepare preliminary trial balances, and all required supplementary schedules by October 15, 2025. The auditor shall provide all recommendations, revisions and suggestions for improvement to the Town Treasurer by November 30, 2025. A draft report shall be delivered to the Town Treasurer by December 9, 2025.

The Town Treasurer will complete the review of the draft report as expeditiously as possible. It is not expected that this process should exceed one week. During that period, the auditor should be available for any meetings that may be necessary to discuss the audit reports of the Town. Once all issues for discussion are resolved, the final signed report shall be delivered to the Town Treasurer within 14 working days. It is anticipated that this process will be completed and the final report delivered by December 23, 2025.

The final report, 1 signed copy and an electronic version of the full report in pdf format suitable for posting on the Town’s website and for the Town’s submission to the Auditor General and the State

Director of Revenue should be delivered to the Town Treasurer, 10 Court Street, Bristol, RI 02809.

The final audit reports (inclusive of all audit communications) related to the financial statements shall also be delivered to the State Auditor General and State Director of Revenue within six months after the close of the fiscal year for each year. A copy of final written correspondence, The Auditor’s

Communication with Those Charged with Governance, shall also be delivered to the State Auditor

General.

V. ASSISTANCE TO BE PROVIDED TO THE FIRM AND REPORT PREPARATION

A. Finance Department and Clerical Assistance

The Finance department staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation and explanations. The preparation of confirmations will be the responsibility of the Town of Bristol based upon information requested by the firm.

B. Electronic Data Processing (EDP) Assistance

The Town’s Data Processing and Software Consultants will be available to provide systems documentation and explanations.

C. Statements and Schedules to be prepared by the Staff of the Town of Bristol.

The staff of the Town of Bristol will prepare the statements and schedules outlined in the Detailed

Audit Plan (Section IV.D.2), for the auditor by October 15, 2025.

D. Work Area, Internet Service and Photocopying/Scanning

The Town of Bristol will provide the firm with reasonable workspace, desks and chairs. The firm will also be provided with access to internet service and photocopying/scanning facilities.

E. Report Preparation

Report preparation, based on the trial balance as prepared and provided by the Town, editing and printing shall be the responsibility of the firm. The Management Discussion and Analysis (MD&A) section of the report may require that some pages are printed in color. Future changes to the MD&A section may require color printing.

VI. PROPOSAL REQUIREMENTS

A. General Requirements

1. Inquiries

Inquiries concerning the request for proposals and the subject of the request for proposals must be made to:

Carl J. Carulli

Town Treasurer

10 Court Street

Bristol, RI 02809

(401) 253-7000x118 email: ccarulli@bristolri.gov

2. Submission of Proposals

The following material is to be received by 12:00 PM, Wednesday, April 16, 2025, for a proposing firm to be considered:

a. A master copy (so marked) of a Technical Proposal and two (2) copies to include the following:

mailto:ccarulli@bristolri.gov

i. Title Page

Title page showing the request for proposals' subject; the firm's name; the name, address and telephone number of a contact person; and date of the proposal.

ii. Table of Contents

iii. Transmittal Letter

• A signed letter of transmittal briefly stating the proposer's understanding of the work to be done,

• The commitment to perform the work within the time period,

• A statement why the firm believes itself to be best qualified to perform the engagement and

• A statement that the proposal is a firm and irrevocable offer for a three-year period.

iv. Detailed Proposal

The detailed proposal should follow the order set forth in Section

VI - B of this request for proposals.

v. Executed copies of Proposer Guarantees and Proposer Warranties, attached to this request for proposals (Appendix A and Appendix B).

b. The proposer shall submit an original and two (2) copies of a dollar cost bid

(Appendix C) in a separate sealed envelope marked as follows:

SEALED DOLLAR COST BID

PROPOSAL FOR

TOWN OF BRISTOL

FOR

PROFESSIONAL AUDITING SERVICES

RFP# 1060

April 16, 2025

c. Proposers should send the completed proposal consisting of the two separate envelopes to the following address:

TOWN CLERK’S OFFICE

TOWN OF BRISTOL

10 COURT STREET

BRISTOL, RI 02809

B. Technical Proposal

1. General Requirements

The purpose of the technical proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the Town of Bristol in conformity with the requirements of this request for proposals. As such, the substance of proposals will carry more weight than their form or manner of presentation. The technical proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an approach that will meet the request for proposals requirement.

THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS INCLUDED IN THE

TECHNICAL PROPOSAL DOCUMENT.

The technical proposal should address all the points outlined in the request for proposals (excluding any cost information which should only be included in the sealed dollar cost bid.) The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer's capabilities to satisfy the requirements of the request for proposals. While additional data may be presented, the following audit services requirements, items Nos. 2 through 9, must be included. They represent the criteria against which the proposal will be evaluated.

2. Independence

The firm should provide an affirmative statement that it is independent under the requirements of the

American Institute of Certified Public Accountants and Government Auditing Standards.

The firm should also list and describe the firm's professional relationships involving the Town of

Bristol or any of its agencies or component units for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit.

3. License to Practice in Rhode Island

An affirmative statement should be included indicating that the firm and all assigned key professional staff are properly licensed to practice in Rhode Island.

4. Firm Qualifications and Experience

The proposal should state

a. the size of the firm,

b. the size of the firm's governmental audit staff,

c. the location of the office from which the work on this engagement is to be performed,

d. the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number, and

e. the nature of the staff to be so employed on a part-time basis.

Representation that the private auditor has an appropriate internal quality control system in place and has participated in an external quality control review program as required by Government Auditing

Standards. The firm is also required to submit a copy of its most recent external quality control review report and also submit the results of any subsequent review performed during the term of the contract, as required by Government Auditing Standards, with a statement whether that quality control review included a review of specific government engagements.

Representation that the private auditor is familiar with generally accepted accounting principles for state and local government units and with the generally accepted auditing standards promulgated by the American Institute of Certified Public Accountants; the standards for financial audits set forth in

Government Auditing Standards issued by the Comptroller General of the United States; and the

Single Audit Act of 1984 as amended in July 1996 and the provisions of OMB Guidance 2 CFR part

200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal

Awards - Subpart F – Audit Requirements. The private auditor will conduct the audit and report in accordance with those standards.

Representation that any sub-contractors, co-proposers, or any other entity providing professional services under the engagement will be subject to, and will have met, all the same applicable requirements as the proposer.

The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm or its partners with state regulatory bodies or professional organizations.

List of any professional complaints pending or resolved against the firm or any of its partners with any state boards of accountancy, or any self regulatory, professional or government authority, including but not limited to, the AICPA, or RI Board of Accountancy.

The firm must provide information regarding any lawsuits or claims against the firm, pending or resolved. If there are none, then there must be a statement to that effect. The firm must also indicate the amount and type of professional liability coverage that it carries (Appendix B). The audit firm shall have at the time of proposal, and throughout the period of engagement, professional liability insurance coverage of not less than $1 million.

An affirmative statement should be included indicating that the firm meets the continuing educational requirements of Government Auditing Standards.

5. Partner, Supervisory and Staff Qualifications and Experience

The firm should identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a certified public accountant in Rhode

Island. The senior accountant in charge of the fieldwork shall be a certified public accountant. The firm also should provide information on the government auditing experience of each person, including information on meeting continuing professional education requirements of Government Auditing

Standards for the past three (3) years and membership in professional organizations relevant to the performance of this audit.

The firm should provide as much information as possible regarding the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. The firm also should indicate how the quality of staff over the term of the agreement will be assured.

Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the Town of Bristol.

However, in either case, the Town of Bristol retains the right to approve or reject replacements.

The firm shall identify any sub-contractors, co-proposers, or other entity that will be used to provide the professional services sought by the request for proposal.

Consultants and firm specialists mentioned in response to this request for proposals can only be changed with the express prior written permission of the Town of Bristol, which retains the right to approve or reject replacements.

Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. However, the Town of Bristol retains the right to approve or reject replacements.

6. Similar Engagements with Other Government Entities

For the firm's office that will be assigned responsibility for the audit, list the most significant engagements (maximum of 5) performed in the last five years that are similar to the engagement described in this request for proposal. These engagements should be ranked on the basis of total staff hours.

Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact.

7. Specific Audit Approach

The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposals.

Proposers will be required to provide the following information relative to their audit approach:

a. Proposed segmentation of the engagement

b. Level of staff and number of hours to be assigned to each proposed segment of the engagement and expected completion date of the audit.

c. Sample sizes and the extent to which statistical sampling is to be used in the engagement

d. Extent of use of EDP software in the engagement

e. Type and extent of analytical procedures to be used in the engagement

f. Approach to be taken to gain and document an understanding of the Town of Bristol 's internal control structure

g. Approach to be taken in determining laws and regulations that will be subject to audit test work

h. Approach to be taken in drawing audit samples for purposes of test compliance

8. Identification of Anticipated Potential Audit Problems

The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the Town of Bristol.

9. Report Format

The proposal should include sample formats for required reports. A sample municipal audit report should be enclosed for the Town's review.

NO DOLLARS SHOULD BE INCLUDED IN THE TECHNICAL PROPOSAL

C. Sealed Dollar Cost Bid

1. Total All-inclusive Maximum Price

The sealed dollar cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposals. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

Should additional work become necessary, any and all additional audit related work will require approval of the Town’s Treasurer prior to being performed. Request must be made in writing. No work will commence without written consent. No billing for related work will be recognized as being valid without prior written consent from the

Town’s Treasurer.

The Town of Bristol will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal.

The first page of the sealed dollar cost bid should include the following information:

a. Name of Firm

b. Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the bid and authorized to sign a contract with the Town of

Bristol.

c. A Total All-inclusive Maximum Price for the:

• 2025 engagement

• 2026 engagement [Optional]

• 2027 engagement [Optional]

d. The contract price(s) must be separated for each fiscal year and detailed as to:

i. Rates by Partner, Manager, Senior and Staff Level times hours anticipated for each

The second page of the sealed dollar cost bid should include a schedule of professional fees and expenses, presented in the format provided in the attachment (Appendix C) that supports the total all-inclusive maximum price.

2. Out-of-pocket Expenses Included in the Total All-inclusive Maximum

Price and Reimbursement Rates

All expense reimbursements will be charged against the total all-inclusive maximum price submitted by the firm.

3. Rates for Additional Professional Services

If it should become necessary for the Town of Bristol to request the firm to render any additional services to either supplement the services requested in this request for proposals or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between the Town of Bristol and the firm.

Any such additional work agreed to between the Town of Bristol and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid.

Firms may quote different prices for certain times of the year.

5. Manner of Payment

Progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm's dollar cost bid proposal. Interim billings shall cover a period of not less than a calendar month.

VII. EVALUATION PROCEDURES

A. Evaluation Criteria

An evaluation committee will be comprised of individuals knowledgeable about auditing and financial reporting matters. Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical qualifications and price. The following represent the principal selection criteria, which will be considered during the evaluation process.

1. Mandatory Elements

a. The audit firm is independent and licensed to practice in Rhode Island.

b. The firm's professional personnel have received adequate continuing professional education within the preceding two years.

c. The firm has no conflict of interest with regard to any other work performed by the firm for the Town of Bristol.

d. The firm submits a copy of its most recent external quality control review report and the firm has a record of quality audit work.

e. The firm adheres to the instruction in this request for proposals on preparing and submitting the proposal.

f. The firm’s capacity to meet required deadlines (e.g. staffing levels and other government engagements with similar due dates).

g. The firm’s track record for meeting contractual deadlines for completion of audits.

2. Technical Qualifications:

a. General Qualifications and Experience

b. Governmental Expertise and Experience

3. The firm's past experience and performance on comparable government engagements.

a. Please provide a list and dates of government audits conducted over the last five years.

b. The quality of the firm's professional personnel to be assigned to the engagement and the quality of the firm's management support personnel to be available for technical consultation.

c. Audit Approach

1. Adequacy of proposed staffing plan for various segments of the engagement.

2. Adequacy of sampling techniques.

3. Adequacy of analytical procedures

4. Price

Proposals will be evaluated using the following scoring weights resulting in a maximum score of 100 points.

Maximum points

Overall qualifications and experience of the firm and the specific engagement personnel to be assigned focusing on experiences with governmental entities and the specific line of business or services provided by the entity to be audited.

Overall audit approach and audit strategy described/outlined in the proposal and firm capacity to perform the engagement within the specified timeframe (prior experience of the firm in meeting timelines should be factored in here)

Audit fees - See formula for points awarded for audit fees

(*) 30

Maximum evaluation points 100 100

* Evaluation technique – audit fees

Audit fee score = (lowest qualified bid/bid for firm being evaluated) X 30 points

Example: Assuming 3 bids received were: (firm A) - $20,000, (firm B) - $30,000, (firm C) -

$40,000

Firm A (the lowest bidder) awarded 30 points $20,000/$20,000 X 30 points = 30

Firm B awarded 26 points $20,000/$30,000 X 30 points = 20

Firm C awarded 24 points $20,000/$40,000 X 30 points = 15

An evaluation grid will be prepared summarizing the scoring by each member of the evaluation committee and the composite ranking. If any firm is disqualified and therefore not evaluated, the reason for such action shall be documented.

COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF AN AUDIT FIRM.

B. Oral Presentations

During the evaluation process, the Town may, at its discretion, request any one or all firms to make an oral presentation. Such a presentation will provide a firm with an opportunity to answer any questions the Town may have on the firm's proposal. Not all firms may be asked to make such oral presentations.

C. Final Selection

The Town Council will select a firm based upon the recommendation of the Town’s evaluation committee.

It is anticipated that a firm will be selected by May 16, 2025. Following notification of the firm selected, it is expected a contract will be executed between both parties by June 1, 2025.

D. Right to Reject Proposals

Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the Town of Bristol and the firm selected.

The Town of Bristol reserves the right without prejudice to reject any or all proposals.

VIII. OTHER

1. Penalties or fines imposed on the Town due to the audit not being completed and/or audit reports not being issued and delivered to the Town and filed with the Rhode

Island Auditor General and State Director of Revenue as required by RIGL 45-10-5 of each year, determined to be the fault of the auditor, shall be borne and paid by the auditor.

2. The Town of Bristol is an equal opportunity employer and does not discriminate against any person, employee, student, or applicant on the basis of race, color, religion, sex, sexual orientation, national origin age, ancestry, marital status, military status, physical or mental disability. By submission of your bid, you, the contractor, agree not to discriminate in the above named areas and in the event of non-compliance the

Town may declare the contractor in breach and take any necessary legal recourse including termination and/or cancellation of the contract.

APPENDIX A

PROPOSER GUARANTEES

I. The proposer certifies it can and will provide and make available, at a minimum all services set forth in Section II, Nature of Audit Services Required.

Signature of Official: ______________________________________

Name (typed.): ___________________________________________

Title: ___________________________________________________

Firm: ___________________________________________________

Date:____________________________________________________

APPENDIX B

PROPOSER WARRANTIES

A. Proposer warrants that it is willing and able to comply with State of Rhode Island laws with respect to foreign (non-state of Rhode Island) corporations.

B. Proposer warrants that it will maintain in full force at all times professional liability to include errors and omissions in the minimum amount of $1 million per occurrence and supply evidence of the same to the Town, listing the Town as additional insured. In addition, the proposer shall also supply evidence of Workers Compensation insurance at the State of RI minimum required levels.

C. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the express written permission of the Town of Bristol, RI.

D. Proposer warrants that all information provided by it in connection with this proposal is true and accurate. Proposer further understands that any representations made with the submission will be relied upon and if proven to be false will be grounds for termination of the contract, if awarded. False representations will also be grounds for forfeiture of all payments under the contract. This will not limit the municipality from seeking any other legal or equitable remedies.

E. Proposer warrants that there are no client conflicts that would inhibit the ability to the audit in accordance with professional standards.

F. Proposer warrants that it is independent under the requirements of the American Institute of

Certified Public Accountants and Government Auditing Standards.

Signature of Official:, _________________________________________

Name (typed): _______________________________________________

Title: ______________________________________________________

Firm: ______________________________________________________

Date: ______________________________________________________

APPENDIX C

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2025 FINANCIAL STATEMENTS

Town

Hours

Federal

Award

Hours

Total

Hours

Standard

Hourly

Rates

Quoted

Hourly

Rates Total

Partners

Managers

Senior

Staff

Other

(specify):

Subtotal

Out of

Pocket

Expenses

Total all-inclusive maximum price for 2025 $ ____________

Total all-inclusive maximum price for 2026 $ ____________

Total all-inclusive maximum price for 2027 $ ____________

Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price.