ESBD_File_343765_580-24-RFQ-0010_QuestionsAndAnswers_Addendum1.pdf

Questions & Answers Addendum Solicitation No. 580-24-RFQ-0010 Page 1 of 3

REQUEST FOR QUALIFICATIONS NO. 580-24-RFQ-0010

FOR

“CFO TO GO” FINANCIAL SERVICES

ADDENDUM 1 – QUESTIONS AND ANSWERS

Question 1: RFQ No. 580-24-RFQ-0010 “CFO To Go” Financial Services

• Section Number: 1.1 Overview, 1.4 Background, 2.1 Scope of Services Requested

• Text of Passage: 1.1 – Quali�ications (RFQ) from �inancial services �irms quali�ied to provide �inancial accounting services (Services) to recipients of TWDB project funding (Entities).

Services will typically involve evaluating policies and procedures of Entities in areas such as: �inancial statement closings and preparation, debt service covenant and regulatory compliance, and internal control design and implementation in areas with potential �inancial impact. Contractors will recommend process changes to Entities and provide documentation of revised policies and procedures to address any opportunities for ef�iciencies and/or strengthened internal control.

1.4 – TWDB, the state agency primarily responsible for water planning and administering water �inancing for the State, was created by constitutional amendment in 1957. TWDB issues State of Texas General Obligation and Revenue bonds to fund various �inancial programs. TWDB uses the bond proceeds as well as pass-through funding from State and Federal sources to purchase debt obligations of Texas political subdivisions and to make loans and limited grants to economically distressed areas in the State.

Selected Contractor(s) will primarily engage in the activities described in Section

1.1 above. TWDB anticipates selecting Contractor(s) who will be used as needs are identi�ied and as funds become available. The �inal Contractor or pool of contractors selected will depend on the number and quality of SOQs received compared to the anticipated work to be performed.

Questions & Answers Addendum Solicitation No. 580-24-RFQ-0010 Page 2 of 3

TWDB plans to select Contractor(s) with expertise in areas including but not limited to: municipalities and other entities providing water, wastewater, or related utility services; entities that have received �inancial assistance through the Federal Clean Water State Revolving Fund and/or the Drinking Water State Revolving Fund programs; and, generally accepted government accounting and auditing standards.

2.1 Scope of Services – The awarded Contractor(s) may be required to complete some or all the following tasks: (See page 5 of RFQ).

• Question: Has TWDB conducted or used a third party to conduct the scope of services in the past?

Question 1. TWDB Response: Yes. With the assistance of contractors, the TWDB has completed almost 20 of the types of reviews described in this RFQ.

Question 2: RFQ No. 580-24-RFQ-0010 “CFO To Go” Financial Services

• Section Number: General RFQ Question

• Text of Passage: General RFQ Question

• Question: Does the TWDB have subrecipients? If so, how many?

Question 2. TWDB Response: The TWDB has a portfolio of more than 600 entities that have received financial assistance through our agency. A significant number of these relationships are subrecipients as defined by Federal agencies. Only a fraction of them are eligible to participate in the program, however, so that number is irrelevant.

Question 3: RFQ No. 580-24-RFQ-0010 “CFO To Go” Financial Services

• Section Number: General RFQ Question & 2.1 Scope of Services Requested

• Text of Passage: General RFQ / 2.1 - The awarded Contractor(s) may be required to complete some or all the following tasks:

Work performed will be limited to engagements to monitor entities which are exempted from the requirements for a Federal Single Audit. TWDB will identify speci�ic engagement procedures and the entities to be assessed. The contractor must conduct the work in accordance with U.S. Government Accountability Of�ice’s (GAO) accepted Government Auditing Standards. Work performed under this provision will be limited in scope to one or more of the following compliance requirements:

• Activities allowed/disallowed, including compliance with �inancial instrument covenants.

• Allowable costs/cost principles

• Federal funding eligibility

Questions & Answers Addendum Solicitation No. 580-24-RFQ-0010 Page 3 of 3

• Governmental �inancial reporting standards.

The work performed will be considered �inancial advisory services. TWDB will identify the entity to which services will be provided and the scope of remedial efforts. Examples may include but are not limited to:

• Advise entities on the design and implementation of internal control procedures, particularly those addressing internal control over �inancial reporting (ICFR) in response to material and signi�icant control weaknesses identi�ied in audits of annual comprehensive �inancial reports (ACRF) and/or management letters or equivalent.

• Assist entities in the design of procedures for the preparation of �inancial statements required by the covenants of loan and other �inancial commitment documents. This assistance will not include performing the independent audit of the entity’s �inancial statements.

• Assist entities in the identi�ication and interpretation of funding commitment provisions and covenant and best practices disclosure recommendations.

• Question: Would you expect this work to be performed virtually or on-site? If on-site, what % of the time would you expect?

Question 3. TWDB Response: Services defined in this RFQ will require on-site performance for approximately 15 to 20 percent of each project.

Question 4: RFQ No. 580-24-RFQ-0010 “CFO To Go” Financial Services

• Section Number: 2.1 Scope of Services Requested

• Text of Passage: “The contractor must conduct the work in accordance with U.S.

Government Accountability Of�ice’s (GAO) accepted Government Auditing Standards.”

• Question: It is outlined on page 5, in section 2.1 that the contractor must conduct the work in accordance with U.S. Government Accountability Of�ice (GAO) accepted Government Auditing Standards. Would TWDB be willing to permit a contractor to perform the engagement under the AICPA’s consulting standards instead, since this engagement is not an independent audit?

Question 4. TWDB Response: Yes; AICPA consulting standards will be acceptable.

Please sign and submit this document along with your response to the solicitation, acknowledging your receipt of this Addendum.

[This document will not count against the page limit of your response.]