Revised SOW 12.18.09.doc

(DRAFT) STATEMENT OF WORK

Financial Statement and Accounting Services

United States Department of Labor

Office of the Chief Financial Officer

Office of Fiscal Integrity

Overview

The Chief Financial Officers Act of 1990 (CFOA) established Chief Financial Officers (CFO) for all Cabinet agencies and for certain independent agencies. Among other things, the CFOA requires each CFO to report directly to his/her agency head on all agency financial matters; oversee all agency financial management activities; develop and maintain an integrated agency accounting and financial management system, including financial reporting and internal controls; and provide policy guidance and oversight of component agency financial management personnel, activities, and operations. In accordance with the CFOA, the Department has established an Office of the Chief Financial Officer (OCFO).

In order to materially enhance control over, and accountability for, available resources, the CFOA, Office of Management and Budget (OMB) Circulars, Department of the Treasury (Treasury) regulations, the Government Performance and Results Act (GPRA), the Government Management Reform Act (GMRA), and the Federal Financial Management Improvement Act (FFMIA) require the preparation of financial reports and statements in accordance with applicable accounting standards. Within the Department, agencies are responsible for preparing financial statements and/or compiling financial data for their particular program activities for inclusion in the Department’s Consolidated Financial Statements and for transmission of the Department’s trial balance to Treasury via the Federal Agencies’ Centralized Trial Balance System (FACTS). Pursuant to responsibilities under the CFOA, the OCFO must ensure that the agency financial statement compilation data are timely, accurate, and consistent with appropriate reporting requirements; prepare the Department’s Financial Statements; cooperate with the Office of Inspector General (OIG) in the OIG’s audit of the Financial Statements; and prepare the final Annual Financial Statements for the Department reflecting the Inspector General’s audit opinion and the data statutorily required by all Federal financial management laws, regulations, and guidance. In order to properly fulfill these responsibilities, the OCFO requires professional accounting support services.

Scope of Work

The Contractor will support OCFO, the Employment and Training Administration (ETA), the Office of Workers’ Compensation Programs (OWCP), the Wage and Hour Division (WHD), the Office of Federal Contract Compliance Programs (OFCCP), and the Office of Labor-Management Standards, or any future or successor DOL components responsible for the functions performed by these entities due to new legislation, Departmental reorganization, or management prerogative (collectively, “the agencies”).

References to the Departmental accounting system and reporting system apply to the particular system of record at the time the task is performed.

The Contractor shall perform on a Task Order basis for the purpose of supporting the agencies in the preparation of accurate and timely quarterly and annual Consolidated Financial Statements and Federal Agency’s Centralized Trial Balance System (FACTS) data consistent with the requirements of the CFOA and other applicable legislation and appropriate OMB, Treasury, and Government Accountability Office (GAO) regulations and guidelines. The Scope of Work also encompasses all current and future financial management laws and reporting requirements, including additional reporting responsibilities required by the American Recovery and Reinvestment Act of 2009 and subsequent legislation.

The Contractor shall perform all work in accordance with the Statement of Work and all other terms and conditions of this contract.

Statement of Work

1. The Contractor shall assist the agencies in compiling the necessary financial data and in the extraction, transformation, and loading processes necessary to prepare the agency FACTS I and II data, compilation of the Department’s and trust fund financial statements and the compilation of the Department’s quarterly and annual Consolidated Financial Statements as well as supporting other agencies within the Department of Labor. To accomplish this, the Contractor shall coordinate, monitor, and/or support the activities of the Department’s agencies to prepare agency FACTS I and II data reports, agency and trust fund financial statements, and data used in the compilation of the Department’s Consolidated Financial Statements. Specifically, the Contractor shall prepare and submit draft and final reports, memoranda, and other work products, as applicable, for Departmental, agency, program, and administrative staff that:

a) Support the consistent treatment of accounting issues and standard journal entries, the completion of all tasks, and the timely submission of all deliverables;

b) Reflect that all off-ledger items and accounts of the Department have been properly compiled and recorded in the Department of Labor accounting system;

c) Support the availability, completeness, and accuracy of data in the Department of Labor accounting subsystems and financial reports for agency use;

d) Support completeness and accuracy of compiled agency trial balances for the FACTS I and II transmission and compliance with Treasury reporting requirements;

e) Reconcile accounts (e.g., cash to Treasury and debt), and compile data for journalizing off-ledger accounts into the Department of Labor accounting system;

f) Analyze end-of-year working trial balances and provide appropriate technical assistance and recommendations to ensure their accuracy and completeness;

g) Compile and document required footnote disclosures for financial statement preparation, as well as required supplementary information, required supplementary stewardship information, and other accompanying information;

h) Compile work papers which clearly trace the Department of Labor accounting system journal entries, working trial balance reclassifications, or working trial balance eliminations to supporting lead schedules and to supporting documentation;

i) Document financial systems procedures to conform with appropriate statutes and regulations, including development of appropriate system documentation and training of agency staff;

j) Compile elimination and adjusting entries for consolidated financial statements, including accrued disability benefit adjustments for all agencies, future workers compensation liability adjustments for the entire Department, and other year-end adjustments;

k) Support the (1) maintenance of the Unemployment Trust Fund (UTF)/Department of Labor accounting system interface and recommend revisions when required by changes in Treasury reporting; (2) reconciliations of UTF transaction files to Treasury supporting documentation; (3) completeness and accuracy of postings through system interfaces; (4) recommendations to ETA personnel regarding database or other transactions to include overpayments, taxes, reimbursable employer receivables, benefit payment accruals, and Federal Employees’ Compensation Act (FECA) account collections and receivables, and data necessary for supplemental information; recommendations to ETA personnel regarding database development so that required information will be obtained from the states;

l) Support the maintenance of FECA receivables from other agencies and collections of those receivables including interface transactions that have been recorded and agree with Treasury and worksheets for Federal accounts receivable and future workers compensation liability for distribution to other agencies and publication on the internet;

m) Compile adjustments and supporting documentation for (1) the Panama Commission Compensation Fund including investment and interest receivable transactions and preparation of market values of portfolio for year-end disclosure; and (2) Wage and Hour civil money penalties and accounts receivable; provide recommendations to accounting issues related to the Energy Employees Occupational Illness Compensation Fund, the Longshore and Harbor Workers’ Compensation Act Trust Fund, the District of Columbia Workmen’s Compensation Act Trust Fund and the Black Lung Disability Trust Fund to ensure that funds are properly recorded in the Department of Labor accounting system.

2. The Contractor shall make recommendations to the agencies, to include:

a) Outstanding accounting issues and pronouncements which might affect the content, presentation or format of the Department’s financial statements;

b) Compliance with Single Audit Act reporting and the Federal Audit Clearinghouse; and

c) Compliance requirements of current and future financial management legislation and regulations, such as the Federal Financial Management Improvement Act of 1996 (FFMIA), the Federal Managers’ Financial Integrity Act of 1982 (FMFIA), the Federal Information Security Management Act of 2002 (FISMA), OMB Circular A-123, and the Improper Payments Information Act of 2002 (IPIA).

3. The Contractor shall provide training to Federal staff, current Contractor staff, and any successor Contractor on all aspects of financial reporting, which may include presentation materials, agendas, training objectives approved by DOL management, and/or documentation to support attendance.

4. The Contractor shall prepare reconciliations and supporting documentation for:

a) Subsidiary and general ledger systems for E-Grants (DOL’s grant subsidiary), grants, and interfaces;

b) The fixed assets system and the general ledger (including additions, deletions, impairments, construction in progress (CIP), and transfers);

c) The Treasury closing package, including input data for the Government-wide Financial Reporting System (GFRS), yearly reporting to Treasury, and mock reporting for the quarters ending March 31 and June 30;

d) Proprietary to budgetary reconciliations;

e) Payroll and payroll accrual reconciliations; and

f) Upward and downward adjustments.

5. The Contractor shall:

a) Provide verbal and written explanations in support of its work products to the OCFO, the Office of Inspector General (OIG), and the independent auditor, which may include explanations of the accounting treatment of transactions and

b) Provide verbal and written guidance to assist with audit resolution, e.g., notifications of findings and recommendations (NFRs), significant deficiencies, material weaknesses, and Management Advisory Comments.

6. In support of the Department’s compliance with OMB Circular A-136 (or subsequent OMB guidance), the Contractor shall:

a) Prepare the Department’s annual and quarterly Financial Statements, including any subsequent drafts to comply with the independent auditor or OIG’s current and prior year audit findings, and make required changes to the database and presentation of the financial statements in case of entity and display changes or reorganization of bureaus or sub-departments within the Department of Labor;

b) Update the “Summary of Procedures Guide” to reflect the procedures used in the most recent compilation of financial statements for audit, including drafting assigned sections;

c) Prepare analytical procedures related to the relationship of budgetary and proprietary accounts, and research and recommend corrections to errors identified in the analytical procedures;

d) Prepare child trial balances in a format that may be posted to the core financial system and prepare analyses of parent/child activity as required by OMB Circular A-136 and other central guidance agency requirements;

e) Prepare, on the basis of data received from sub-agencies, spreadsheets reflecting percentages by sub-agency, for allocation of overhead in Department of Labor accounting and reporting systems, and reconciliations of the net cost as per Statement of Net Cost to Strategic Goals of the Department as required by OMB Circular A-136;

f) Draft responses to the recommendations of Association of Government Accountants (AGA) on the Performance and Accountability Report (PAR) under the Certificate of Excellence in Accountability Reporting (CEAR) Program;

g) Assist in the preparation of the financial and related sections to complete the Office of the Chief Financial Officer’s portion in the Performance and Accountability Report (PAR) or Agency Financial Reports (AFR) as the case may be; and

h) Assist in the preparation of the financial and related sections to complete the Office of the Chief Financial Officer’s portion of the Department’s summary of performance and financial results.

7. The Contractor shall advise and assist the agencies on management’s preparation of accounting policies and procedures.

8. The Contractor shall prepare financial management ad-hoc reports.

Workload Variability

During any fiscal year, the demand for contract staff time is expected to be greatest during the first quarter, when the financial accounts of the prior year are formally closed-out. Demand may be high for the 15 days prior to and the 45 days subsequent to the close of each fiscal quarter.

Deliverables

The Contractor shall furnish the Project Manager(s) and COTR the deliverables specified in each task order in accordance with the required delivery schedules.

Deliverables will be maintained on OCFO/DOL computer network.

Deliverables and supporting work papers will be organized and labeled in a manner to allow an accounting professional with reasonable effort to ascertain the methodology, order, and data used in their production so they may be recreated. Further, deliverables must be prepared in an auditable manner and ease audit liaison and resolution efforts.

Progress Reports

The Contractor shall deliver to the Project Manager(s) and COTR progress reports as specified in each task order.

Period of Performance

This contract covers one year.

Duty and Qualifications of Personnel by Category

The following categories of labor shall be applicable to all work under this contract, at the hourly rates established in this contract. The Government will not request any other categories of labor, and the Contractor shall not furnish personnel to work in any other labor categories.

The duties and minimum qualifications of the persons performing in the labor categories are identified below. The Contractor shall include in its proposal, by name and labor category, the key personnel to be assigned to perform and carry out all phases of work under this contract. All of the labor categories are considered to be exempt from coverage under the Service Contract Act. All key personnel are to have thorough knowledge, formal training, and high level of experience in specific specialty. Personnel assigned to the agencies have to be approved by the project manager of each respective agency. Key personnel cannot be changed without notification to Project Managers and COTR or their appointed designee at least 14 calendar days in advance with a proposed replacement with all necessary information for the Government to make a proper determination.

The Contractor shall designate contract personnel in the proposal for each category, including their resumes (maximum two pages per resume):

· Project Partner (CPA license required) with minimum 15 to 20 years of experience in Federal Accounting of a Cabinet-level Federal Agency.

· Accountant(s) with a 4-year accounting degree from an accredited institution and 4 to 6 years of experience in Federal Accounting.

· Subject Matter Auditor with 4 to 6 years of experience in Federal accounting and/or Federal Government auditing.

Time Tracking and Billing

The following requirements must be complied with unless amended by the agencies’ Project Managers, COTRs, or the Contracting Officer:

A. Labor shall be performed on-site during regular business hours. Labor performed off-site, overtime, or during holidays and weekends must be approved in writing by either the Project Managers or the COTR in advance.

B. Contractor personnel must sign in and out, including for lunch, in the log provided by the agencies unless waived by the Project Managers, COTRs, or their designees. All invoices submitted for payment must include a reconciliation of the billable hours to the sign-in log. The Contractor cannot bill for any hours not included in the sign-in log unless waived by the Project Managers, COTRs, or their designees.

C. The Contractor may not perform non-DOL work while on DOL premises.

D. No hours may be billed at overtime rates.

E. Billing rates may only be modified by the Contracting Officer.

F. The Contractor shall bill on a monthly basis.

Terms and Conditions

The Department and agencies do not direct or supervise contractor employees. As such, the Contractor shall ensure that:

a) All Contractor staff are functioning within their designated labor categories and at acceptable levels of performance.

b) All activities performed are covered by applicable task orders and directly related to the Scope of Work in this document. Time spent on non-project related activities shall not be billed to the Government.

c) Positions are filled promptly (within 15 days) and kept filled with qualified, competent personnel.

d) All Contractor staff are performing their designated assignments in a timely manner and all reporting requirements are honored.

e) All Contractor staff have been trained in proper office procedures as pertains to business professionals, and must act and present themselves in a professional manner.

f) All Contractor staff receive ongoing technical training as described in the Offeror’s proposal. Any training received by contractor staff that is charged to the contract must receive prior approval from the Project Managers.

Place and Standards of Performance

The primary place of performance will be the Frances Perkins Building at 200 Constitution Ave., NW, Washington, DC 20210 or other locations as directed by the Project Managers or COTR.

The Contractor agrees that the performance of work and services shall conform to high professional and ethical standards. The Contractor also agrees to remove any staff whose conduct or performance is such that retention would not be in the best interest of the Government as determined by the by Project Managers, COTR, and Contracting Officer.

DOL Furnished Space and Supplies

DOL will provide the workspace and routine office supplies to perform the on-site portion of work required. In addition, DOL will provide computer equipment if required.

Acceptance Criteria

Unless otherwise specified in this task order, all contract work products submitted to the Government for approval shall be approved or disapproved within 120 calendar days of delivery.

Notice to DOL of Delay

Whenever the Contractor has knowledge that any actual or potential situation that delays or threatens to delay the timely performance of tasks, the Contractor will notify the Project Managers and COTR in writing within two business days.

Confidentiality

The Contractor shall not make use of any information obtained from the performance of this work for any activity outside the scope of this project. All records / documents developed during the course of this Contract shall be protected from examination by unauthorized persons. Such records include all forms, computer files, program listings, manuals, documentation, correspondence files, contract records and reports. The Contractor shall retain all records / documents in a secure manner. No materials or any summary of these materials shall be released to any individual or organization without prior written permission from the COTR.

No work involving information furnished under this Agreement will be subcontracted without the specific advance written approval of the COTR or the Project Managers or their appointed designee.

In performance of this Contract, the Contractor agrees to comply with and assume responsibility for compliance by its staff with the following requirements:

A. All work will be performed under the supervision of the Contractor or the Contractor’s responsible staff.

B. The Project Partner is an employee of the Contractor.

C. Any information provided to, or collected by, the Contractor, in any format, will be used only for the purpose of carrying out the provisions of this contract. This information will be treated as confidential and will not be made known in any manner to any person except as may be necessary in the performance of the Contract. In addition, all related output shall be given the same level of protection as required for the source material. The Contractor and all Contractor personnel shall provide DOL with signed confidentiality agreements.

Rights in Data and Copyright

All records and documents developed, collected or otherwise obtained by the Contractor shall be considered the property of DOL. DOL reserves exclusive and unlimited rights to the information provided to the Contractor, except for the information DOL makes available to the public. DOL also reserves exclusive rights to the results and findings produced by the Contractor.

The Contractor will not place any unauthorized restrictive or limiting markings or labels on any of the deliverables.

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