City of Monmouth, Oregon Request for Proposal – RFP No. FIN 22-01

Municipal Audit Services

Published February 8, 2022

Date & Time Due:

March 4, 2022, not later than 3:00 pm, Pacific Standard Time

Submit Responses to:

Janet Chenard, Finance Director City of Monmouth 780 Ecols St. S.

Monmouth, OR 97361

The City of Monmouth is requesting proposals for the services of a qualified Certified Public Accounting firm to conduct the Financial and Compliance Audit of the City’s operations commencing with fiscal year ending June 30th, 2022.

It is the intent of the City to negotiate a three-year contract, with the second and third year contingent on the successful, timely completion of the first year of the contract. An option to extend the contract through additional years may also be granted.

Scope of Services:

Includes, but may not be limited to:

• Planning and performing the audit

• Performing tests of documentary evidence

• Evaluation of internal controls

• Review of Management Letter

• Review of adjusted journal entries

• Prepare Draft Audit Reports for both the City and the City’s Urban Renewal Agency (URA).

• Prepare Final City and URA Audit Reports (12 copies of each and one each in electronic format).

• Preparation and filing of State Documents

• Technical assistance throughout the fiscal year

SOLICITATION ADVERTISEMENT

Sealed proposals for Auditor Services (RFP FIN 22-01) will be received at:

City of Monmouth Finance Department 780 Ecols St. S.

Monmouth, OR 97361

The City of Monmouth is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal years ending June 30, 2022 through June 30, 2024, with options to audit the City of Monmouth' financial statements for up to four (4) additional subsequent fiscal years.

These audits are to be performed in accordance with the provisions contained in the request for proposals. The Request for Proposals document may be examined or obtained for no charge at the City of Monmouth at the above-noted address or by downloading the document from https://www.ci.monmouth.or.us. All who are known by the City to have received a complete set of the document will receive notification when additional/related items are posted.

Sealed proposals must be submitted: Janet Chenard, Finance Director, City of Monmouth Finance Department. The proposals may be delivered or mailed to the above addresses no later than 3:00 pm on March 4, 2022. The proposals will be publicly opened and read at that time.

The City of Monmouth encourages small, minority, and women-owned businesses to submit proposals.

For more information, contact Janet Chenard at (503) 751-0134, or Hearing and Speech Impaired:

Contact Oregon Telecommunications Service 7-1-1.

CITY OF MONMOUTH, OREGON

DATED THIS 8th DAY OF FEBRUARY 2022.

By: /s/ Janet Chenard Janet Chenard, Finance Director, City of Monmouth

Advertise: Daily Journal of Commerce on February 8, 2022.

City Website – posted ad and RFP February 8, 2022 OregonBuys – posted ad and RFP February 8, 2022 https://www.ci.monmouth.or.us/

Background:

The City of Monmouth has a population of 11,142 and is located approximately 15 miles south of Salem, Oregon and 20 miles north of Corvallis, Oregon along OR Highway 99. The City provides a wide range of municipal services including: Sanitary Sewer, Water, Stormwater and Electric utilities, Streets, Parks, Library, Community Development, Building, Police, Code Enforcement, Economic Development, Municipal Court, Senior Center and General Financial and Administrative services. The City also maintains an Urban Renewal District under the governance of an Urban Renewal Agency (URA) which is comprised of the seven members of City Council.

The City operates under a council-manager form of government. The Council is composed of six elected members and an elected Mayor. The Council appoints the City Manager. The City Manager is responsible for all City functions. The City currently employs 55 full-time employees and 13 part time employees.

Accounting System:

The City utilizes a Windows-based accounting system, Caselle software, for its financial reports and information. The following modules are utilized for recording financial transactions:

General Ledger (GL)/Journal &

Budget Entries

Caselle

Cash Receipting Caselle – interfaced with GL

Merchant Card Receipts Xpress Billpay (XBP) - upload

Animal License Caselle – not currently interfaced

Payroll/Timekeeping Caselle – interfaced with GL

Inventory Materials Management Caselle – interfaced with GL

Municipal Court Management Caselle – interfaced with GL

Utility Billing Management Caselle – interfaced with GL

Accounts Payable/Vendor Mgmt Caselle – interfaced with GL

Building Permits Accela (Upload-not interfaced)

Accounts are organized using funds, such as the General Fund, Sanitary Sewer Fund, Water Fund, Power & Light Fund, Street Fund, Grants Fund, Building Fund, etc. The adopted budget for all city operations for Fiscal Year Ending June 30, 2022, is approximately $50 million, including nearly $12 million in capital outlay and improvement projects. The City’s Urban Renewal Agency has an adopted budget of $3.8 million for the same period.

A copy of the budget and prior year audited financial report is available on the City of Monmouth website under the Finance Department: www.ci.monmouth.or.us.

Auditing Standards:

The financial statements will need to be prepared to conform fully to all generally accepted accounting principles (GAAP) and to be in full compliance with the requirements of the Governmental Accounting Standards Board (GASB) and /or Financial Accounting Standards Board (FASB) as appropriate.

The auditor’s opinion will be directed toward the fairness of presentation of the financial statements in accordance with GAAP. The auditor will also provide compliance reports as required under Federal and State law.

Audit Period and Term of Engagement:

The proposal is for auditing services for a three-year term, with separate audits for each Fiscal Year Ending June 30, 2022, 2023 and 2024. It is the intent of the City to negotiate a three-year contract. If the contract is satisfactorily carried out for the three-year term, the successful Proposer’s contract may be extended for up to two 2-year extensions for 2025, 2026 and 2027, 2028, at the sole discretion of http://www.ci.monmouth.or.us/ the City. An engagement letter is required each year by the auditing firm. Either party may cancel the written contract by giving notice, in writing, to the other party at least ninety (90) days prior to July 1st of any year.

Audit Objectives and Scope of Work The Auditor, as part of this engagement, will conduct the following activities utilizing the appropriate guidelines and auditing standards.

A. Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether caused by error or fraud, and conformity with GAAP.

B. Perform tests of documentary evidence supporting the transactions recorded in the accounts, which may include tests of the physical existence of inventories and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions.

C. Perform tests of the City’s compliance with applicable laws and regulations and provisions of contracts and agreements.

D. Prepare a report on compliance with specific requirements applicable to major federal financial assistance programs, if required.

E. Review the internal accounting controls of the City to the extent necessary to evaluate the system as required by applicable standards.

F. Issue a Management Report making recommendations for improvement.

G. Provide an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the City Manager and/or the Finance Director.

H. Inform the City Manager of any matters involving internal control and its operation that the Auditor considers as reportable conditions under standards established by the American Institute of Certified Public Accountants.

I. Provide the City with adjusting entries and a final trial balance upon completion of the field work.

J. Attend meetings and provide progress reports:

1. Pre-audit conferences(s) with City management and accounting staff will be held to discuss audit schedules, working paper requirements, and report deadlines, as well as the audit program. A written list of information to be provided by City staff to the auditors should be presented at this time.

2. Progress report meetings will be held with key audit firm personnel and City financial management staff at regular intervals mutually agreed upon.

3. Post-audit conference(s) with City management and key audit firm personnel will be held at a mutually agreeable date and the Auditor should expect to present the audit to City Council if requested to do so.

4. The audits for both the City and the City’s URD will be single documents which will contain

Financial Statements, Notes, and supplementary data, the Combined and Individual Fund and Account Group Statements, Financial Statements and Schedules. An electronic copy of the audit will also be made available. Audit reports will be provided within the periods required by the State of Oregon to meet any reporting requirements.

K. Provide, as part of the overall audit contract, a variety of technical assistance throughout the fiscal year to City Staff, including answers to accounting, reporting, and/ or internal control questions.

L. All working papers 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 City of Monmouth of the need to extend the retention period.

M. Conduct of a single audit covering the City’s Federal grants as required by the Single Audit Act and the Office of Manage and Budget Circular A -133, (an additional fee may be charged for this service), if required.

N. Additional Services: Proposals should contain provisions for dealing with extraordinary circumstances discovered during the audit that may require an expansion of audit work beyond that which was originally planned. In addition, the audit firm may be requested to perform special projects for the City during the year. Because of variations in demand for additional services, such work will be contracted for, provided, and billed separately to the City on an hourly basis. Proposals should describe the types of services available from the firm, the professionals who would provide the service and the standard hourly fees to be charged for such service.

O. Use of Audit Reports: Ownership shall belong to the City of Monmouth and it is expressly understood that publication of the audit report (in whole or in part) or reference for such audit report shall be at the sole discretion of the City of Monmouth.

Mandatory Requirements The audit firm must meet the following mandatory requirements: contractor must be registered to do business in the State of Oregon; the Principal Auditor must be a Certified Public Accountant qualified to perform municipal audits in the State of Oregon; and contractor must have experience in performing municipal audits in accordance with auditing standards generally accepted in the United States of America, preparing financial statements compliant with all applicable GASB requirements and Oregon Budget Law.

Proposal Requirements The proposal should demonstrate that the firm will furnish the services in a manner that will be cost effective for the City of Monmouth. Those proposals that do not contain all the information required by this RFP or are otherwise non-responsive may be rejected immediately; however, the City has discretion to accept a proposal that does not conform with all RFP requirements if the City determines that the non-compliance is not substantial or material. If a proposal is unclear, or appears inadequate, the City may at its discretion give the firm an opportunity to explain how the proposal complies with the RFP requirements. Proposal should include the following:

1. The firm name and address, and the name and contact information of the primary contact person.

2. The names of firm partners/principals and the number of firm personnel on the Oregon Municipal roster.

3. A list of partners, managers, and other key staff people who will be assigned to the City’s account. Provide resumes of persons who will be performing professional work and indicate their experience in auditing governmental jurisdictions.

4. Outline a work plan and related time schedule for each significant segment of work.

5. Name the Oregon local government jurisdictions presently and previously audited by the firm.

Please include contact information for each agency.

6. Describe all regulatory action(s) taken by any oversight body against the proposing audit organization, if any.

7. Include the most recent quality control review report or peer review for the firm.

8. Comment on your firm’s ability and willingness to provide constructive suggestions for improving the City’s internal accounting controls, administrative procedures and financial processes.

9. Explain how you would propose to use City personnel to assist you during the audit and indicate the approximate time requirement.

10. Comment on your ability to assist City personnel in producing a document which might qualify for GFOA’s Certificate of Achievement for Excellence in Financial Reporting program.

11. Describe any personal, business, and investment or family relationships with the City, City officials, or appointed employees, or other potential conflicts of interest.

12. Include the all-inclusive fee/cost that your firm will charge the City for the entire audit, by year for the three-year period.

13. Indicate the fee/cost that your firm will charge the City for the preparation of the Single Audit

Report required under OMB Circular A-133, should the City be subject to it.

Provide any additional information that supports the scope of work to be provided as set forth above.

Proposers may submit additional questions and clarification requests by no later than February 21, 2022 to Janet Chenard, Finance Director, using the contact information listed at the end of this RFP.

Proposers shall refrain from initiating contact with City representatives other than Ms. Chenard for the purposes of obtaining information for use in preparation of proposals. Firms may modify or withdraw their proposals at any time prior to the Closing Date by providing a written request for modification or withdrawal to the City of Monmouth Finance Office. Any amendments to this RFP, as well as responses to questions from any proposers, will be in writing and will be issued to all persons or businesses that have indicated an interest to receive RFP amendments. No proposal will be considered if it is not responsive to any issued amendments.

Evaluation of Proposals Proposals will be evaluated based on the scope of work and submission requirements listed above to determine which firm best meets the needs of the city. After meeting these requirements, the following evaluation standards shall be used in scoring each proposal:

1. Understanding of the engagement:

a. Demonstration of full understanding of the work to be performed.

b. Ability of firm to provide constructive recommendations to the City of Monmouth.

2. Experience with Municipal Engagements:

a. The firm’s municipal auditing experience and expertise.

b. History of timely completing audits prior to State deadline of December 31.

c. Results of reference checks.

3. Staffing:

a. Municipal experience and expertise of the audit team proposed for the City’s audit.

b. Philosophy concerning staffing after the first year.

c. The firm’s local office’s ability to provide consulting services to the City.

d. Number of staff members and depth of staffing level to meet contract obligations.

4. Approach to Examination:

a. Description of audit approach.

b. Work plan and ability to meet the City’s schedule.

c. Estimated number of hours to be devoted to the engagement.

5. Fees:

a. Proposed audit fee.

b. Fee/Cost for services beyond the scope of the audit.

c. Proposed fee for A-133 audit, should one be required.

Proposal Award Schedule

February 8, 2022 Publish notice and distribute RFP

March 4, 2022 Proposals due by 3:00 pm (no exceptions)

March 18, 2022 Contract Awarded by Monmouth City Council. Proposals submitted will be reviewed and scored by the Finance Director and City Manager and a recommendation will be made to the City Council.

Proposal Submission:

Submittal Deadline: Two hardcopy and one electronic version of your proposal must be received at the Monmouth Power & Light (MPL) building front counter by 3:00 p.m. on March 4, 2022. MPL open hours are Monday through Friday from 9:00 a.m. to 4:00 p.m. for hand delivered proposals. Proposals received after the deadline will not be eligible for consideration. Proposals shall be submitted in a sealed envelope plainly marked “Municipal Audit Services Proposal-FIN 22-01” and with the name and address of the proposer. All proposals will be deemed valid for 90 days from the date of proposal opening.

Sealed proposals should be directed to:

Janet Chenard, Finance Director City of Monmouth 780 Ecols St. S.

Monmouth, OR 97361

For additional info, contact Janet Chenard at 503-751-0134 or email: jchenard@ci.monmouth.or.us .

Communications with parties other than Ms. Chenard may result in disqualification from consideration for a contract award.

file:///C:/Users/jchenard/AppData/Roaming/Microsoft/Word/jchenard@ci.monmouth.or.us