CWSRF Audit Bid Specifications 0425.docx

REQUEST FOR QUOTATION

CWSRF AUDIT

SPECIFICATIONS

1. PURPOSE AND SCOPE: The West Virginia Purchasing Division is soliciting bids on behalf of The West Virginia Department of Environmental Protection to establish a contract for Certified Public Accountants to provide a single audit of the West Virginia Water Pollution Control Revolving Fund, also known as the Clean Water State Revolving Fund (CWSRF) for the fiscal year ending June 30, 2025. Funding for this program includes receipts from project loan repayments and fees and the following federal Environmental Protection Agency Grants: The CWSRF Base capitalization grant, the CWSRF Infrastructure Investment and Jobs Act (IIJA) capitalization grant, the CWSRF (IIJA) BIL Emerging Contaminants grant, and the Sewer Overflow and Stormwater Reuse Municipal Program Grant.

2. DEFINITIONS: The terms listed below shall have the meanings assigned to them below. Additional definitions can be found in section 2 of the General Terms and Conditions.

2.1 “Contract Services” means Reporting/ETL and Quality Software as more fully described by these specifications, as more fully described in these specifications.

2.2 “Pricing Page” means the pages, contained wvOASIS or attached hereto as Exhibit A, upon which Vendor should list its proposed price for the Contract Services.

2.3 “Solicitation” means the official notice of an opportunity to supply the State with goods or services that is published by the Purchasing Division.

2.4 “WVDEP and DEP” means the West Virginia Department of Environmental Protection.

2.5 “CWSRF” means the Clean Water State Revolving Fund.

3. QUALIFICATIONS: Vendor, or Vendor’s staff if requirements are inherently limited to individuals rather than corporate entities, shall have the following minimum qualifications:

3.1. Vendor Requirements:

3.1.1.1 Certified Public Accountant

3.1.1.2 All vendors must provide any and all peer reviews performed within the last 6 years. The vendor must have received a rating of pass or pass with deficiencies on all applicable peer reviews. A failed peer review will not be acceptable. No vendor shall bid on the request with the knowledge of a pending peer review that will likely be classified as failed. Peer reviews must be submitted with bid.

4. MANDATORY REQUIREMENTS:

4.1 Mandatory Contract Services Requirements and Deliverables: Contract Services must meet or exceed the mandatory requirements listed below.

4.1

4.1.1 CWSRF Audit:

4.1.1.1 Scope of Work: The DEP requires the auditor to express an opinion on the fair presentation of the CWSRF’s financial statement in accordance with accounting principles generally accepted in the United States of America and render a report on the internal controls and compliance with Title VI of the Clean Water Act.

4.1.1.2 Auditing Standards to be followed: The audit shall be performed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States that require the auditor to obtain reasonable assurance about whether the financial statements are free from material misstatements.

4.1.1.3 Reports to be issued: Following the completion of the audit of the financial statements, the auditor shall issue a report on whether the financial statements are free from material misstatements in accordance with accounting principles generally accepted in the United States of America; a report on the internal controls and a report on compliance with Title VI of the Clean Water Act in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (previously OMB Circular A-133). A report will be considered acceptable when approved for inclusion in the Comprehensive Annual Financial Report issued by the Financial and Reporting Section of the Department of Administration. The report will be filed by the issuing auditor to the Federal Audit Clearinghouse (FAC) per 2 CFR 200 Subpart F.

4.1.1.3.1 Irregularities and illegal acts: Auditors shall be required to make an immediate, written report of all irregularities and illegal acts of which they become aware to the State Comptroller under the authority of Section 5A-2-33 of the State Code, as well as to the Secretary of the Department, the Division Director of the Division of Water and Waste Management (DWWM) and the Department’s Chief Financial Officer.

4.1.1.3.2 Reporting to the Department’s Secretary: The auditors shall assure themselves that the Department is informed of each of the following:

4.1.1.3.2.1 The auditor’s responsibility under Generally Accepted Accounting Principles.

4.1.1.3.2.2 Significant accounting policies.

4.1.1.3.2.3 Other information in documents containing audited financial statements.

4.1.1.3.2.4 Disagreements with management.

4.1.1.3.2.5 Difficulties encountered in performing the audit.

4.1.1.3.3 Special Considerations: The audit of the CWSRF is funded by the United States Environmental Protection Agency (USEPA).

Federal and State audit requirements.

4.1.1.3.3.1 The auditor will include a reasonable period of time for meetings with USEPA in the bid.

4.1.1.3.3.2 The per hour rate will be spelled out in the bid so that only hours actually spent with USEPA will be charged at the rate.

4.1.1.3.3.3 Any anticipated travel must be incorporated into the vendor’s fee. No travel will be reimbursed by the State and is the sole responsibility of the vendor.

4.1.1.3.4 Working Paper Retention and Access to Working Papers: All working papers and reports must be retained, at the auditor’s expense, for a period of five (5) years, unless the firm is notified in writing by the Department of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees:

Chief Financial Officer Department of Environmental Protection State of West Virginia Financial Accounting and Reporting Section Department of Administration State of West Virginia

United States Environmental Protection Agency 1650 Arch Street Philadelphia, PA 19103-2029

In addition, the firm shall respond to the reasonable inquiries of successor audit firms and federal grantors and allow the review of working papers relating to matters of continuing accounting significance.

4.1.1.3.5 Description of the water pollution control revolving fund: Names and Telephone Number of Contact Persons and Location of Offices The auditor’s principal contact with the Division will be the Chief Financial Officer or a designated representative who will coordinate the assistance to be provided by the Department to the auditors.

LIST OF KEY POSITIONS, OFFICE LOCATIONS AND TELEPHONE NUMBERS

Katheryn D. Emery, P.E.

Program Manager CWSRF 601 57th Street, S.E.

Charleston, WV 25304 Katheryn.D.Emery@wv.gov

Gary W. Rogers Chief Financial Officer 601 57th Street, S.E.

Charleston, WV 25304 Gary.W.Rogers@wv.gov

Kimberly A. Henderson Accounting & Financial Reporting Manager 601 57th Street, S.E.

Charleston, WV 25304 Kimberly.A.Henderson@wv.gov

4.1.1.3.6 Background Information: The Water Pollution Control Revolving Fund was established under Article 2, Chapter 22C of the West Virginia Code to fill the void left by the demise of the Construction Grants Program. The purpose of this fund is to:

4.1.1.3.6.1 Provide low interest loans to communities that require sewer service either by upgrading the existing wastewater system or establishing a new utility.

4.1.1.3.6.2 “Clean” up the State’s water supply, and

4.1.1.3.6.3 Exist in perpetuity by administering the principal, administrative fees and interest earned from the repayment of loans.

4.1.1.3.7 The WVDEP Division of Water and Waste Management maintains responsibility for the operation and general management of this fund. The fund has been in operation since November 1, 1991.

The source of revenue for the CWSRF includes principal repayments, interest earnings both on the loans made and from the subsequent investments of these payments with the Investment Management Board, administrative fees, Federal Grants and the 16.7% state match funds provided by the West Virginia Infrastructure and Jobs and Development Council.

Once the project has met all pre-construction technical and administrative requirements, the loan recipients are allowed to go to bid. A bid package is submitted for review and authorization before loan closing is set. The Water Development Authority (WDA) is the Program’s bank. The WDA bond counsel takes the necessary steps to ensure the bonds payable by the locality to the CWSRF are properly issued. The WDA also monitors the loans to ensure that the repayment schedules are being met.

The loan recipients make the principal, interest and administrative fee repayments directly to the Municipal Bond Commission (MBC). The MBC calculates the interest due on each repayment and maintains the repayment schedules. The MBC transfers the funds collected to the CWSRF on a quarterly basis. The funds, if not currently required, are then invested with the Investment Management Board.

4.1.1.3.8 Department Structure/Method of Reporting: The Water Pollution Control Revolving Fund is administered by the Division of Water and Waste Management, with oversight by the Office of Administration, Fiscal Services.

The CWSRF operates as a special revenue fund of the Department. The fund is accounted for and reported as an enterprise fund in West Virginia’s Comprehensive Annual Financial Report and in separately reported financial statements.

4.1.1.3.9 Maintenance and Tracking of Financial Operations: The financial operations of the Department are maintained as follows:

CWSRF financial statements are currently maintained using Microsoft Excel.

4.1.1.3.10 Availability of Audit Reports and Work Papers: Reports and work papers for the Fund’s fiscal years 2023 and 2024 will be made available upon request from the WVDEP Chief Financial Officer.

4.1.1.3.11 Audit of Investments: The CWSRF’s investment portfolio is managed by and in the custody of the Investment Management Board (IMB) of the State of West Virginia. The IMB is audited annually by independent Certified Public Accountants. The auditor will be required by the Department to rely on this audit work to the fullest extent.

4.1.1.4 Time Requirements:

4.1.1.4.1 Terms of Engagement: The contract is to audit the trial balance and the required GAAP financial statements for the fiscal year ending June 30, 2025.

4.1.1.4.2 Timetable for Completion of Audit:

The exit conference will be held with the Chief Financial Officer, the Program Manager and the Accounting and Financial Reporting Manager. The purpose of the meeting will be to summarize the results of the audit.

4.1.1.5 Assistance to be provided to the auditor and report preparation:

4.1.1.5.1 Fiscal Services Office and Clerical Assistance: Fiscal Services office 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, including copies for Fiscal Services, will be the responsibility of the auditor.

4.1.1.5.2 Fiscal Services Staff Assistance: The Chief Financial Officer and Accounting and Financial Reporting Manager will provide draft copies of the financial statements, notes to financial statements, relevant supporting work papers, and will be available to coordinate requests for additional information.

4.1.1.5.3 Report Preparation: Report preparation, editing, and printing shall be the responsibility of the auditor.

4.1.1.5.3.1 Five bound, signed copies and an electric copy of the Independent Auditor’s Report on the firm’s letterhead will be delivered to the Chief Financial Officer.

4.1.1.6 Cost Proposal: The cost proposal shall contain all pricing information relative to performing the engagement as described in the Request for Quotations. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

5. CONTRACT AWARD:

5.1 Contract Award: The Contract is intended to provide Agency with a purchase price for the Contract Services. The Contract shall be awarded to the Vendor that provides the Contract Services meeting the required specifications for the lowest overall total cost as shown on the Pricing Pages.

5.2 Pricing Page: Vendor should complete the Pricing Page (Exhibit A) by filling in the yearly and total price. Vendor should complete the Pricing Page in full as failure to complete the Pricing Page in its entirety may result in Vendor’s bid being disqualified. While the pricing page includes one year and three renewals, original award document will be for the first year only. Subsequent renewals will be added by official change order with agreement by the vendor and Agency.

Vendor should type or electronically enter the information into the Pricing Page to prevent errors in the evaluation.

6. PERFORMANCE: Vendor and Agency shall agree upon a schedule for performance of Contract Services and Contract Services Deliverables, unless such a schedule is already included herein by Agency. In the event that this Contract is designated as an open-end contract, Vendor shall perform in accordance with the release orders that may be issued against this Contract.

7. PAYMENT: Vendor shall accept one single payment not to exceed the contract price, as shown on the Pricing Pages, when an acceptable product has been delivered.

Vendor shall accept payment in accordance with the payment procedures of the State of West Virginia.

8. TRAVEL: Vendor shall be responsible for all mileage and travel costs, including travel time, associated with performance of this Contract. Any anticipated mileage or travel costs may be included in the flat fee or hourly rate listed on Vendor’s bid, but such costs will not be paid by the Agency separately.

9. FACILITIES ACCESS: Performance of Contract Services may require access cards and/or keys to gain entrance to Agency’s facilities. In the event that access cards and/or keys are required:

9.1. Vendor must identify principal service personnel who will sign in at the main floor reception to perform service.

9.2. Agency staff will walk the Vendor’s principal personnel in and out of the secured areas of the building.

9.3. Anyone performing under this Contract will be subject to Agency’s security protocol and procedures.

9.4. Vendor shall inform all staff of Agency’s security protocol and procedures.

10. VENDOR DEFAULT:

10.1. The following shall be considered a vendor default under this Contract.

10.1.1. Failure to perform Contract Services in accordance with the requirements contained herein.

10.1.2. Failure to comply with other specifications and requirements contained herein.

10.1.3. Failure to comply with any laws, rules, and ordinances applicable to the Contract Services provided under this Contract.

10.1.4. Failure to remedy deficient performance upon request.

10.2. The following remedies shall be available to Agency upon default.

10.2.1. Immediate cancellation of the Contract.

10.2.2. Immediate cancellation of one or more release orders issued under this Contract.

10.2.3. Any other remedies available in law or equity.

11. MISCELLANEOUS:

11.1. Contract Manager: During its performance of this Contract, Vendor must designate and maintain a primary contract manager responsible for overseeing Vendor’s responsibilities under this Contract. The Contract manager must be available during normal business hours to address any customer service or other issues related to this Contract. Vendor should list its Contract manager and his or her contact information below.

Contract Manager: ______________________ Telephone Number: ________________________ Fax Number: ______________________________ Email Address: ____________________________

Revised 10/27/2014