CEFA_05-15_Audit_RFP_Final.pdf

The California Educational Facilities Authority (CEFA) REQUEST FOR PROPOSAL-Secondary

CEFA# 05-15 - Audit Services

Notice to Prospective Proposers

March 1, 2016

You are invited to review and respond to this Request for Proposal (RFP), entitled RFP# CEFA 05-15, for the California Educational Facilities Authority (CEFA). The RFP seeks auditing services for the annual audit of CEFA’s financial statements relevant to the assets of two funds that exist within CEFA. This RFP also seeks to fulfill CEFA’s obligations pursuant to Government Code Sections 5871 and 5872, to include meeting the Office of the State Controller’s minimum auditing requirements. In submitting your proposal, you must comply with these instructions.

Note that all agreements entered into with the State of California will include by reference, General Terms and Conditions and Contractor Certification Clauses that may be viewed and downloaded at Internet site www.ols.dgs.ca.gov/standard+language and a hard copy has been provided.

In the opinion of CEFA, this RFP is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, the contact person for this RFP is:

Martha Maldonado Operations Manager

California Educational Facilities Authority

(916) 653-2872

Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

http://www.ols.dgs.ca.gov/standard+language

Table of Contents

Section Page

A) Purpose and Description of Services

1. Introduction

2. Scope of Serv ice

a) Audit and Examination

b) Audit Report & Findings

c) Other Agencies Financial Transaction Report

3. Term of Agreement

B) Minimum Qualificat ions for Proposers

C) Proposals Requirements and Informat ion

1. Key Action Dates

2. Firm Experience, Personnel and References

3. Cost Detail Format and Requirements

4. Submission of Proposal

5. Evaluation Process

6. Award and Protest

7. Disposition of Proposals

8. Agreement Execution and Performance

D) Preference Programs

1. Small Business or Microbusiness Preference

2. Non-Small Business Preference

3. California Disabled Veteran Business Enterprise (DVBE) Participation

E) Required Attachments

1. Required Attachments

Attachments Attachment 1 - Required Attachment Check List Attachment 2 - Proposal/Proposer Certification Sheet Attachment 3 - Sample Cost Proposal Work Sheet Attachment 4 - Proposer References Attachment 5 - Payee Data Record (STD 204) Attachment 6 - Contractor’s Certification Clauses (CCC-307) Attachment 7 - Small Business or Microbusiness Preference * Attachment 8 - Non-Small Business Preference* Attachment 9 - Disabled Veteran Business Enterprise (DVBE) Incentive Program* Attachment 10 - Darfur Contracting Act

(*If applicable)

F) Sample Standard Agreement (STD 213) Exhibit A, Scope of Work Exhibit B, Budget Detail and Payment Provisions Exhibit C, General Terms and Conditions (http://www.ols.dgs.ca.gov/standard+language) Exhibit D, Special Terms and Conditions Exhibit E, Additional Provisions

Attachment A – Senate Bill 99 (SB99) Attachment B – Office of the State Controller, Minimum Audit Requirements & Reporting Guidelines Attachment C – Other Agencies Financial Transactions Report

California Educational Facilities Authority (CEFA)

RFP# CEFA 05-15

A. Purpose and Description of Services

1. Introduction The California Educational Facilities Authority (CEFA) was created for the purpose of issuing revenue bonds to assist private non-profit institutions of higher learning in the expansion and construction of educational facilities.

Section 94155 of the Education Code requires CEFA to make an annual report including a complete operating and financial statement and an audit of books and accounts by a certified public accountant. CEFA is soliciting proposals from public accounting/auditing firms and seeks to contract with a qualified certified public accounting firm (“firm”) to audit financial statements relevant to the assets of the program funds that exist within CEFA: the Educational Facilities Authority Fund (EFAF); and the student loan programs (Student Loan Authority Fund (SLAF) and California Student Loan Refinancing Program fund or account (Education Code sections 94157-94165). While the review of EFAF includes the internal operations of CEFA and a review of all outstanding tax-exempt bond issue amounts, the student loan funds is much more complex.

It may require a complete review of the existing student loan programs, including all of the funds held by trustee banks or other financial institutions, loss reserve accounts, the loans disbursed by and collections made by the loan servicers, and the reports prepared by the program administrators. This audit also entails a review of the separate annual audits on each of the servicer’s and the administrator’s organization.

In addition, effective January 1, 2010, legislation (Senate Bill 99, which added Chapter 10.7 of Division 6 of Title 1, commencing with section 5870, to the Government Code) increased the reporting and auditing requirements for conduit issuers. While the focus of the legislation was on the joint powers authorities that frequently issue bonds, the legislation was written to include the state finance authorities chaired by the California State Treasurer. As a result, CEFA must comply, at a minimum, with the same reporting/auditing requirements imposed on the joint powers authorities.

All proposals submitted to perform these services must explain the experience and qualifications that demonstrate the firm’s ability to provide these services. Failure to provide the entire required format may result in disqualification. The firm that is selected must be technically and professionally capable of providing the services in all subject areas described in Section A, Item 2, Scope of Service (pages 1-3) and meet the Minimum Qualifications for Proposers in Section B (page 3). The firm must be free from actual conflicts of interest not only at the time of selection, but also throughout the term of the contract. The engagement period will be for the audit of each of the two (2) fiscal years ending June 30, 2016 and June 30, 2017 with a possible one year option to renew the agreement for the audit of the fiscal year ending June 30, 2018. CEFA anticipates a June 2016 contract start date and the firm must be available at that time to assume services.

2. Scope of Service The firm will be expected to provide financial and performance audits and examination services as described herein. In addition, pursuant to the passage of Senate Bill 99 (SB 99), the scope of the audit must include the Office of the State Controller’s (SCO) minimum standards for conducting audits and reporting requirements. Inasmuch as the SCO has not yet issued written minimum standards for conducting audits and reporting requirements pursuant to SB 99, the scope of this audit as articulated herein is subject to change, and any auditing firm must be prepared to incorporate any additional legal or industry requirements for the performance of audits as may be disseminated by the SCO subsequent to the initial circulation of this RFP.

(Refer to Attachments A, B & C)

a) Audit and Examination

1. Perform an audit and examination of CEFA’s higher education and student loan programs (the “Programs”). The audit will include an evaluation of CEFA’s internal control in accordance with generally accepted auditing standards as set forth in Statements on Auditing Standards, published by the American Institute of Certified Public Accountants, and the Office of the State Controller’s (SCO) Minimum Audit Requirements for California Special Districts. The audit and examination will include such tests of the accounting records and procedures as are necessary for the expression of the firm’s opinion, in compliance with Rule 58 of the State Board of Accountancy on the financial statements taken as a whole, in conformity with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), and general provisions of State law.

2. Confirm assets held by CEFA for each Program Fund.

3. Verify the bonds outstanding for each Program Fund.

4. Treat all information in a confidential manner with all recommendations to be stated only in the audit reports provided to CEFA for appropriate release by CEFA as required by law.

b) Audit Report and Findings

1. The report shall include a statement of the scope of the audit and examination for each Program Fund; the period covered by the audit and examination; and a list of the financial statements included in the report.

2. The report and findings shall include a statement of material audit findings and recommendations regarding the financial statements, internal control and accounting systems, and legality of actions for each Program Fund.

3. Audited financial statements in the report shall include a "Statement of Operations", "Statement of Assets and Liabilities" (Balance Sheet), and a "Statement of Cash Flows” for each Program Fund.

4. The Audit report shall include a Management Letter.

5. The audit report shall include any other material information.

6. The audit must meet the reporting time frame requirements of the SCO. Currently, it is anticipated the audit should be conducted mid-August through September with the draft due to the SCO by October 1 of each fiscal year and the final completed and submitted to the SCO by mid-October of each fiscal year. The audit submittal time frame is subject to change upon further instruction from the SCO. The dates for fiscal year 2017/2018 will be provided if the State exercises its option to renew the agreement.

7. The firm shall review the proposed report with CEFA staff prior to finalizing.

8. One original and twenty (20) copies of the report shall be prepared with provision for additional copies upon request, and provide an electronic version in PDF.

9. In all respects, represent the best interests of CEFA and the State of California in all transactions and proceedings.

c) Other Agencies Financial Transaction Report An example of the State Controller’s Offices Other Agencies Financial Transaction Report is attached (Attachment C). In conjunction with conducting the financial audit as described above, the firm will be expected to complete the “Other Agencies Financial Transaction Report” on CEFA’s behalf by mid-October of each year of the contract.

CEFA will work with the firm to obtain all available accounting records and data necessary for the performance of the work described herein, and will provide office workspace and furnishings adjacent to CEFA’s office at 915 Capitol Mall, Suite 590, Sacramento, California 95814. All other equipment or material is to be provided by the firm.

Firm shall be responsive to CEFA staff regarding the status of the audit including prompt response to e-mails and telephone calls. Firm shall keep CEFA staff apprised of information needed and issues outstanding, and shall meet deadlines set by CEFA Staff.

3. Term of Agreement

The term of the agreement will be for the audit of each of the two (2) fiscal years ending June 30, 2016 and June 30, 2017, with a possible option to renew the agreement for the audit of the fiscal year ending June 30, 2018. The effective date of this agreement is either the start date or the approval date by the Department of General Services whichever is later. No work shall commence until the effective date of the agreement.

B) Minimum Qualifications for Proposers

In preparing the proposal, please provide your firm’s response to the following requirement in the same order as listed in this RFP. Failure to meet the minimum qualification will cause your proposal to be considered unresponsive and the proposal will be disqualified.

The firm must have , at minimum, the following qualifications and experience:

1. Firm must have an office established in the State of California.

2. Firm must be licensed to do business in the State of California.

3. Firm must be a professional certified public accounting firm, not in public employment, in business for at least three (3) years.

4. Firm must have conducted, within the last four (4) years, at least five (5) audits of California state or local governmental agencies, preferably agencies engaged in bond financing. The firm must have experience in the State of California accounting procedures and related processes.

5. Firm must have sufficient staff to provide auditing services to CEFA to meet the tight deadlines outlined in Section A, Item 2, Scope of Service (pages 1-3).

C) Proposal Requirements and Information

1. Key Action Dates

It is recognized that time is of the essence. All firms are hereby advised of the following schedule and will be expected to adhere to the required dates and times:

Date Action

March 1, 2016 RFP available to prospective firms.

April 5, 2016 Final Date for Proposal Submission.

Proposals must be received at the CEFA office at 915 Capitol Mall, Room 590, Sacramento, CA 95814 By 4:00 P.M.

April 12, 2016 Evaluation and selection of firm by evaluation committee

April 13, 2016 Notice of Intent to Award

April 20, 2016 Proposed Award Date

June 1, 2016 Proposed Contract Start Date

2. Firm Experience, Personnel and References CEFA expects to have a close working relationship with the firm as evidenced by the scope of service listed above, and requires the demonstration of a high degree of experience, training and proficiency in the conduct of the various functions performed. The firm should have extensive background in both accounting/auditing of educational facilities and student loan programs. In addition, CEFA expects that the firm will comply with current accounting/auditing standards and financing trends and will maintain appropriate expertise at the firm’s own expense.

This section is intended for the firm to demonstrate their qualifications. Information provided will be used in the evaluation process as outlined on page 7-8.

a) Qualifications and Experience of Accounting/Auditing Firm - Discuss the overall experience of your firm that demonstrates your ability to successfully complete the Scope of Service, Section A, Item 2 (pages 1-3). Experience should include recent services provided to other conduit issuers of higher educational tax-exempt bonds, as well as services provided directly to such borrowers. Additionally, firm must have knowledge of the State of California accounting procedures. Discuss your firm’s experience auditing California state or local governmental agencies. Provide a detailed list of accounting/auditing services by client or transaction for the past four years as an attachment. Indicate if the accounting/auditing service provided was transaction specific or for a contracted period.

b) Qualification of Personnel/Resumes - Identify the personnel who will be providing the services required by the proposal, including years and type of experience for each person.

Experience should include number of years at current firm as well as all prior service.

Experience in bond financing should be detailed. The lead personnel in charge of the CEFA account must have at least five (5) years of experience in public accounting and audits of State governmental agencies, or services as an accounting or financial consultant to a State agency.

The firm must ensure that the quality and availability of its personnel assigned to this agreement will be maintained over the term of the agreement. Any replacements must have substantially the same as or better qualifications and experience than the original personnel.

Include staff of subcontractors (if any).

c) References - Submit a list of at least three references (clients) to which the firm has provided similar accounting/auditing services within the past four (4) years and contact numbers for each. At least one reference must be from a California state or local governmental agency.

(Attachment 4)

3. Cost Detail Format and Requirements The anticipated contract for accounting/auditing services would establish a maximum amount for each of the two (2) fiscal years ending June 30, 2016 and June 30, 2017, with a possible option to renew the agreement for the audit of the fiscal year ending June 30, 2018. The vendor will be compensated using an invoice procedure detailing hours expended. Invoices must include total hours expended not to exceed maximum yearly amount. Progress payments are permitted for work performed under the agreement. In accordance with Public Contract code section 10346, ten percent (10%) of the invoiced amount shall be withheld pending final completion of the Agreement.

The proposed work should be broken down into a work plan and work schedule. Use the Sample Cost Proposal Worksheet (Attachment 3) as a guide in preparing your cost. The work plan must identify lead personnel, anticipated employee hours, reflect the cost for preparation of reports, analysis, charts and other printed materials, anticipated travel, and other direct cost expenses. The proposal must include the rate for each fiscal year audit (fiscal years 2015/2016, 2016/2017) and the option to renew (fiscal year 2017/2018). The total proposed maximum fee schedule will be the basis for the scoring of the cost portion of the evaluation. (See Attachment 3) Bids submitted with a fee schedule not in compliance with these requirements will be rejected.

The following formula will be used for the award of cost points:

Lowest total cost proposal is awarded the maximum cost points (30 points). Other proposals are awarded total cost points based on the following calculation:

(Lowest Bidder’s Total Cost/Other Bidder’s Total Cost) = (factor) Total Cost points for other Bidder = (factor) X maximum cost points

EXAMPLE: A maximum of 30 points is available

Lowest Bidder’s Total Cost Proposal = $55,000 Other Bidder’s Total Cost Proposal = $73,000

(Total lowest cost proposal / Other total cost proposal) = $55,000 / $73,000 = ¾ (Total cost points awarded to other proposal = ¾ x 30 =22.5 points

4. Submission of Proposal

a) Proposals should provide straightforward and concise descriptions of the firm’s ability to satisfy the requirements of this RFP. The proposal must be complete and accurate.

Omissions, inaccuracies or misstatements may be cause for rejection of a proposal.

b) The proposal package should be prepared in the least expensive method.

c) All proposals must be submitted under sealed cover and sent to CEFA by dates and times shown in Section C, Proposal Requirements and Information, Item 1) Key Action Dates, (page 3). Proposals received after this date and time will not be considered.

d) A minimum of four (4) copies of the proposal must be submitted.

e) The original proposal must be marked "ORIGINAL COPY". All documents contained in the original proposal package must have original signatures and must be signed by a person who is authorized to bind the firm. All additional proposal sets may contain photocopies of the original package.

f) The proposal envelopes must be plainly marked with the RFP number and title, the firm name and address, and must be marked with “DO NOT OPEN”, as shown in the following example:

Subject – Request for Proposals – “Audit Services”

Firm Name Firm Address

Contact Person and Phone Number

DO NOT OPEN

If the proposal is made under a fictitious name or business title, the actual legal name of firm must be provided.

g) All proposals shall include the documents identified in Section E, Required Attachments (see page 10 & Attachment 1). Proposals not including the proper "required attachments" shall be deemed non-responsive. A non-responsive proposal is one that does not meet the basic proposal requirements.

h) Mail or deliver proposals to the following address:

Ms. Martha Maldonado

California Educational Facilities Authority 915 Capitol Mall, Suite 590 Sacramento, CA 95814

i) Proposals must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and will cause a proposal to be rejected.

j) A proposal may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. CEFA may reject any or all proposals and may waive any immaterial deviation in a proposal. CEFA’s waiver of an immaterial deviation shall in no way modify the RFP document or excuse the proposer from full compliance with all requirements if awarded the agreement.

k) Costs for developing proposals and in anticipation of award of the agreement is entirely the responsibility of the proposer and shall not be charged to CEFA, or the State of California.

l) An individual who is authorized to bind the proposing firm contractually shall sign

Attachment 2, Proposal/Proposer Certification Sheet. The signature must indicate the title or position that the individual holds in the firm. An unsigned proposal may be rejected.

m) A firm may modify a proposal after its submission by withdrawing its original proposal and resubmitting a new proposal prior to the proposal submission deadline as set forth in the Key

Action Dates. The submission of a new proposal must comply with requirements of this section. Proposal modifications offered in any other manner, oral or written, will not be considered.

n) A firm may withdraw its proposal by submitting a written withdrawal request to CEFA, signed by the proposer or an authorized agent in accordance with h) above. A firm may thereafter submit a new proposal prior to the proposal submission deadline. Proposals may not be withdrawn without cause subsequent to proposal submission deadline.

o) CEFA may modify the RFP prior to the date fixed for submission of proposals by the issuance of an addendum to all parties who received a proposal package.

p) CEFA reserves the right to reject all proposals. The agency is not required to award an agreement.

q) Before submitting a response to this solicitation, firms should review, correct all errors and confirm compliance with the RFP requirements.

r) Where applicable, the firm should carefully examine work sites and specifications. No additions or increases to the agreement amount will be made due to a lack of careful examination of work sites and specifications.

s) More than one proposal from an individual, firm, partnership, corporation or association under the same or different names, will not be considered.

t) CEFA will not accept alternate contract language from the firm. A proposal with such language will be considered a counter proposal and will be rejected. The General Terms and Conditions (GTC) are not negotiable.

u) No oral understanding or agreement shall be binding on either party.

5. Evaluation Process

a) All proposals will be reviewed by an evaluation committee. At the time of proposal opening, each proposal will be checked for the presence or absence of required information in conformance with the submission requirements of this RFP. The absence of required information will cause a proposal to be deemed nonresponsive and may result in the proposal’s disqualification.

b) Proposals that contain false or misleading statements, or which provide references, which do not support an attribute or condition claimed by the proposer, may be rejected.

c) Award, if made, will be to the responsible proposer with the highest scored proposal.

d) Proposal Evaluation The proposals that meet the Minimum Qualifications in Section B, (page 3) and the Proposals

Requirements in Section C, Items 1-4, (pages 3-7) will be evaluated and scored according to the criteria indicated below. The selection will be made on the basis of the following weighted factors. (Maximum points available for each criteria are noted.)

(1) Qualification of personnel (20 points) CEFA will evaluate the individuals to be assigned to the contract on the basis of background and experience in related work.

(2) Experience as an accounting/auditing firm (25 points) CEFA will evaluate the firm on the basis of the firms overall experience demonstrating its ability to successfully complete the requirements identified in 1) Introduction and 2) Scope of Service, Section A (pages 1-3).

(3) Experience as an accounting/auditing firm to California state or local governmental agencies (25 points) CEFA will evaluate the firm on the basis of the firms overall experience demonstrating its knowledge of the State of California’s accounting procedures and the firms experience auditing California state or local governmental agencies.

(4) Cost (30 points) CEFA will score the cost proposal based upon the Cost Detail Format and Requirements, Section 3, (page 5 and Attachment 3).

Maximum Total Possible Points 100 points

6. Award and Protest

a) Notice of the proposed award(s) shall be posted in a public place in the office of the California Educational Facilities Authority, 915 Capitol Mall, Room 590, Sacramento, CA 95814 and on the following Internet site for five (5) working days prior to awarding the agreement(s): http://www.treasurer.ca.gov/CEFA.

b) If any firm, prior to the award of agreements, files a protest with CEFA and the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, West Sacramento, CA 95605, on the grounds that the (protesting) firm would have been awarded a contract had CEFA correctly applied the evaluation standard in the RFP, or if CEFA followed the evaluation and scoring methods in the RFP, the agreement(s) shall not be awarded until either the protest has been withdrawn or the Department of General Services has decided the matter.

It is suggested that the firm submit any protest by certified or registered mail.

c) Within five (5) days after filing the initial protest, the protesting firm shall file with the

Department of General Services, Office of Legal Services and CEFA a full and complete written statement specifying the grounds for the protest. It is suggested that the firm submit this complete written statement by certified or registered mail.

d) Upon award of the agreement(s), the firm must complete and submit to the awarding agency the Payee Data Record (STD 204), to determine if the firm is subject to state income tax withholding pursuant to California Revenue and Taxation Code Sections 18662 and 26131.

(This form is made part of the RFP as Attachment 6.) No payment shall be made unless a completed STD 204 has been returned to CEFA.

7. Disposition of Proposals

a) Upon proposal opening, all documents submitted in response to this RFP will become the property of CEFA and the State of California, and will be regarded as public records under the California Public Records Act (Government Code Section 6250 et seq.) and subject to review by the public.

b) Proposal packages may be returned only at the firm's expense, unless such expense is waived by CEFA.

8. Agreement Execution and Performance

a) Performance shall start on the express date set by CEFA and the selected firm, after all approvals have been obtained and the agreement is fully executed. Should the firm fail to commence work at the agreed upon time, CEFA, upon five (5) days written notice to the firm, reserves the right to terminate the agreement. In addition, the firm shall be liable to CEFA for the difference between the firm's proposal price and the actual cost of performing work by another contractor.

b) All performance under the agreement shall be completed on or before the termination date of the agreement.

D) Preference Programs

1. Small Business or Microbusiness Preference-www.pd.dgs.ca.gov/smbus

A five percent (5%) preference will be applied to certified small business firms submitting proposals. To obtain the preference, firms must be certified as a small business at the time the bid is submitted. The firm MUST include an updated copy of their Small Business Certificate to obtain the preference. The 5% preference is issued only for computation purposes to arrive at the successful firms and does not alter the amounts of the actual bids. Once each bid has been scored, if the highest responsible firm is not a certified small business or microbusiness, 5% of the highest scoring bid is added to the total “earned” points for each bid submitted by a certified small business. These final numbers, with the 5% included, are then used to determine the highest scoring bid.

Questions regarding the small business certification or preference approval should be directed to the Office of Small Business & DVBE Services (OSDS) at (916) 375-4940 or can be found at the website listed above.

2. Non-Small Business Preference-www.pd.dgs.ca.gov/smbus

A five percent (5%) bid preference is available to a non-small business claiming twenty-five percent (25%) California certified small business subcontractor participation. If claiming the non-small business subcontractor preference, the bid response must include a list of the small business(es) with which the firm commits to subcontract in an amount of at least 25% of the net bid price with one or more California certified small businesses. Each listed certified small business must perform a "commercially useful function" in the performance of the contract as defined in Government Code Section 14837(d)(4).

The required list of California certified small business subcontractors must be attached to the bid response and must include the following: 1) subcontractor name, 2) address, 3) phone number, 4) http://www.pd.dgs.ca.gov/smbus a description of the work to be performed and/or products supplied; and 5) the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor.

Firms claiming the 5% preference must commit to subcontract at least 25% of the net bid price with one or more California certified small businesses. Completed certification applications and required support documents must be submitted to the OSDS no later than 5:00 p.m. on the bid due date, and the OSDS must be able to approve the application as submitted. Questions regarding certification should be directed to the OSDS at (916) 375-4940.

The preference to a non-small business firm that commits to small business or microbusiness subcontractor participation of 25% of its net bid price shall be 5% of the highest responsive, responsible firm’s total score. A non-small business, which qualifies for this preference, may not take an award away from a certified small business

3. California Disabled Veteran Business Enterprise (DVBE) Participation-www.pd.dgs.ca.gov/smbus

This solicitation DOES NOT include a minimum DVBE participation requirement. DVBE participation is NOT required in the bid or proposal. However, a DVBE incentive will be applied as provided in Attachment 9.

DVBE INCENTIVE. The State will apply a DVBE incentive for responsive bids or proposals from responsible bidders that propose DVBE participation. The DVBE incentive will vary in relation to the percentage of confirmed DVBE participation (up to five percent (5%).

DVBE PARTICIPATION COMMITMENT. Bidders seeking the DVBE incentive must submit a completed Bidder Declaration, GSPD-05-105, that demonstrates DVBE participation and qualification for a DVBE incentive.

E) Required Attachments

1) Required Attachments (Attachment 1) For the proposal to be considered responsive, all required attachments listed on Attachment 1 must be included with the RFP by dates and times shown in Section C, Proposal Requirements and Information, Item 1, Key Action Dates, (page 3). (Refer to Attachment 1, Required Attachment Check List.)

ATTACHMENT 1

REQUIRED ATTACHMENT CHECK LIST

A complete proposal or proposal package will consist of the items identified below. Complete this checklist to confirm the items in your proposal. Place a check mark or “X” next to each item that you are submitting to the State. For your proposal to be responsive, all required attachments must be returned. This checklist should be returned with your proposal package also.

Attachment Attachment Name/Description

Attachment 1 – Required Attachment Check List

Attachment 2 – Proposal/Proposer Certification Sheet

Attachment 3 – Sample Cost Proposal Work Sheet Attachment 4 – Proposer References

Attachment 5 – Payee Data Record (STD 204)

Attachment 6 – Contractor’s Certification Clauses (CCC-307)

Attachment 7 – Small Business or Microbusiness Preference *

Attachment 8 – Non-Small Business Preference*

Attachment 9 – California Disabled Veteran Business Enterprise (DVBE) Participation*

This solicitation DOES NOT include a minimum DVBE participation requirement. DVBE participation is NOT required in the bid or proposal. However, a DVBE incentive will be applied as provided in Attachment 9.

DVBE INCENTIVE. The State will apply a DVBE incentive for responsive bids or proposals from responsible bidders that propose DVBE participation. The DVBE incentive will vary in relation to the percentage of confirmed DVBE participation (up to five percent (5%).

DVBE PARTICIPATION COMMITMENT. Bidders seeking the DVBE incentive must submit a completed Bidder Declaration, GSPD- 05-105, that demonstrates DVBE participation and qualification for a DVBE incentive.

Attachment 10 – Darfur Contracting Act

*If applicable

ATTACHMENT 2

PROPOSAL/PROPOSER CERTIFICATION SHEET

This Proposal/Proposer Certification Sheet must be signed and returned along with all the "required attachments" as an entire package in duplicate with original signatures. The proposal must be transmitted in a sealed envelope in accordance with RFP instructions.

Do not return the RFP nor the "Sample Agreement" at the end of this RFP.

A. Place all required attachments behind this certification sheet.

B. The signature affixed hereon and dated certifies compliance with all the requirements of this proposal document. The signature below authorizes the verification of this certification.

An Unsigned Proposal/Proposer Certification Sheet May Be Cause for Rejection

1. Company Name 2. Telephone Number 2a. Fax Number

3. Address

Indicate your organization type:

4. Sole Proprietorship 5. Partnership 6. Corporation

Indicate the applicable employee and/or corporation number:

7. Federal Employee ID No. (FEIN) 8. California Corporation No.

9. Indicate applicable license and/or certification information:

10. Proposer’s Name (Print) 11. Title

12. Signature 13. Date

14. Are you certified with the Department of General Services, Office of Small Business Certification and Resources (OSBCR) as:

a. California Small Business Yes No

If yes, enter certification number:

b. Disabled Veteran Business Enterprise Yes No

If yes, enter your service code below:

NOTE: Proof of Certification is required to be included if either of the above items is checked “Yes” and will be verified.

Date application was submitted to OSBCR, if an application is pending:

Completion Instructions for Proposal/Proposer Certification Sheet

Complete the numbered items on the

Proposal/Proposer Certification Sheet by following the instructions below.

Item Numbers

Instructions

1, 2, 2a, 3

Must be completed. These items are self-explanatory.

Check if your firm is a sole proprietorship. A sole proprietorship is a form of business in which one person owns all the assets of the business in contrast to a partnership and corporation. The sole proprietor is solely liable for all the debts of the business.

Check if your firm is a partnership. A partnership is a voluntary agreement between two or more competent persons to place their money, effects, labor, and skill, or some or all of them in lawful commerce or business, with the understanding that there shall be a proportional sharing of the profits and losses between them. An association of two or more persons to carry on, as co-owners, a business for profit.

Check if your firm is a corporation. A corporation is an artificial person or legal entity created by or under the authority of the laws of a state or nation, composed, in some rare instances, of a single person and his successors, being the incumbents of a particular office, but ordinarily consisting of an association of numerous individuals.

Enter your federal employee tax identification number.

Enter your corporation number assigned by the California Secretary of State’s Office. This information is used for checking if a corporation is in good standing and qualified to conduct business in California.

Complete, if applicable, by indicating the type of license and/or certification that your firm possesses and that is required for the type of services being procured.

10, 11, 12, 13

Must be completed. These items are self-explanatory.

If certified as a California Small Business, place a check in the "yes" box, and enter your certification number on the line. If certified as a Disabled Veterans Business Enterprise, place a check in the "Yes" box and enter your service code on the line. If you are not certified to one or both, place a check in the "No" box. If your certification is pending, enter the date your application was submitted to OSBCR.

ATTACHMENT 3

SAMPLE COST PROPOSAL WORKSHEET

Rate Per DIRECT LABOR (Job description as applicable) Hour Hours Cost

Program Manager/Lead Personnel __________@ __________ __________

Manager __________@ __________ __________

Senior Associates __________@ __________ __________

Staff Associate __________@ __________ __________

Administrative Support (Job Description) __________@ __________ __________

TOTAL DIRECT LABOR $__________

SUBCONTRACTOR(S) COST ITEMIZED $__________

DIRECT COSTS (EXCEPT LABOR)

Travel Costs (mileage, parking) __________

Equipment and Supplies (Itemized) __________

Other Direct Costs (Itemized) __________

TOTAL INDIRECT AND DIRECT COSTS $__________

TOTAL PROPOSED FEE SCHEDULE

A. FISCAL YEAR 2015/2016 $__________

B. FISCAL YEAR 2016/2017 $__________

Please provide cost for the option to renew for fiscal year 2017/2018.

C. FISCAL YEAR 2017/2018 $__________

TOTAL PROPOSED MAXIMUM FEE SCHEDULE FOR A, B & C $__________

Firm Name:

By:

(signature of person authorized to sign contracts)

Name and Title:

Date:

ATTACHMENT 4

PROPOSER REFERENCES

Submission of this attachment is mandatory. Failure to complete and return this attachment with your proposal will cause your proposal to be rejected and deemed nonresponsive.

Submit a list of at least three references (clients) to which the firm has provided similar accounting/auditing services within the past four (4) years and contact numbers for each. At least one reference must be from a California state or local governmental agency. If three references cannot be provided, please explain why on an attached sheet of paper.

REFERENCE 1

Name of Firm Street Address City State Zip Code Contact Person Telephone Number Dates of Service Value or Cost of Service Brief Description of Service Provided

REFERENCE 2

Street Address City State Zip Code Contact Person Telephone Number

REFERENCE 3

Street Address City State Zip Code Contact Person Telephone Number

ATTACHMENT 6 CEFA 05-15

CCC-307

CERTIFICATION

I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Contractor to the clause(s) listed below. This certification is made under the laws of the State of California.

Contractor/Bidder Firm Name (Printed)

Federal ID Number

By (Authorized Signature)

Printed Name and Title of Person Signing

Date Executed Executed in the County of

CONTRACTOR CERTIFICATION CLAUSES

1. STATEMENT OF COMPLIANCE: Contractor has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 8103) (Not applicable to public entities.)

2. DRUG-FREE WORKPLACE REQUIREMENTS: Contractor will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:

a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.

b. Establish a Drug-Free Awareness Program to inform employees about:

1) the dangers of drug abuse in the workplace;

2) the person's or organization's policy of maintaining a drug-free workplace;

3) any available counseling, rehabilitation and employee assistance programs; and,

4) penalties that may be imposed upon employees for drug abuse violations.

c. Every employee who works on the proposed Agreement will:

1) receive a copy of the company's drug-free workplace policy statement; and,

2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Contractor has made false certification, or violated the certification by failing to carry out the requirements as noted above. (Gov. Code §8350 et seq.)

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a Federal court, which orders Contractor to comply with an order of the National Labor Relations Board. (Pub.

Contract Code §10296) (Not applicable to public entities.)

4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO

REQUIREMENT: Contractor hereby certifies that contractor will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Contractor agrees to make a good faith effort to provide a minimum number of hours of pro bono legal services during each year of the contract equal to the lessor of 30 multiplied by the number of full time attorneys in the firm’s offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its contract with the State.

Failure to make a good faith effort may be cause for non-renewal of a state contract for legal services, and may be taken into account when determining the award of future contracts with the State for legal services.

5. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California.

6. SWEATFREE CODE OF CONDUCT:

a. All Contractors contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. The contractor further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108.

b. The contractor agrees to cooperate fully in providing reasonable access to the contractor’s records, documents, agents or employees, or premises if reasonably required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice to determine the contractor’s compliance with the requirements under paragraph (a).

7. DOMESTIC PARTNERS: For contracts over $100,000 executed or amended after January 1, 2007, the contractor certifies that contractor is in compliance with Public Contract Code section 10295.3.

http://www.dir.ca.gov/

DOING BUSINESS WITH THE STATE OF CALIFORNIA

The following laws apply to persons or entities doing business with the State of California.

1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions regarding current or former state employees. If Contractor has any questions on the status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification.

Current State Employees (Pub. Contract Code §10410):

1). No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.

2). No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code §10411):

1). For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency.

2). For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Contractor violates any provisions of above paragraphs, such action by Contractor shall render this Agreement void. (Pub. Contract Code §10420)

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Pub. Contract Code §10430 (e))

2. LABOR CODE/WORKERS' COMPENSATION: Contractor needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Contractor affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code Section 3700)

3. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

4. CONTRACTOR NAME CHANGE: An amendment is required to change the Contractor's name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said amendment.

5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:

a. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the contractor is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled.

b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate contractor performing within the state not be subject to the franchise tax.

c. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California. Agencies will determine whether a corporation is in good standing by calling the Office of the Secretary of State.

6. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

8. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all contractors that are not another state agency or other governmental entity.

S:\ADMIN\HOMEPAGE\CCC\CCC-307.doc

ATTACHMENT 7 & 8

Attach Proof if Claiming Small Business Preference

Small Business or Microbusiness Preference www.pd.dgs.ca.gov/smbus/default.htm

Non-Small Business Preference* www.pd.dgs.ca.gov/smbus/default.htm* http://www.osmbpd.dgs.ca.gov/disputes

Attachment 9

RFP CEFA 05-15

STO/BCA Rev. 9/12/2014

CALIFORNIA DISABLED VETERAN BUSINESS ENTERPRISE (DVBE)

PARTICIPATION GOAL PROGRAM INSTRUCTIONS

DVBE PARTICIPATION REQUIREMENT. The Disabled Veteran Business Enterprise (DVBE) Participation Goal Program for State contracts is established in Public Contract Code (PCC) section 10115 et seq., Military and Veterans Code (MVC) section 999 et seq., and California Code of Regulations (CCR), title 2, section 1896.60 et seq. This solicitation DOES NOT include a minimum DVBE participation requirement. DVBE participation is NOT required in the bid or proposal. However, a DVBE incentive will be applied as provided below.

DVBE…