Horsemen - Addendum A.pdf

Rev. 03/25/2011

PART IV

WORK STATEMENT

IV-1. Objectives.

a. General. The Commonwealth is seeking audit services through this RFQ.

These services will enable the Commonwealth and the Horsemen’s Associations to comply with the requirements of Pennsylvania’s fiscal code (Act 87 of July 2, 2012).

The audits shall be completed within 90 days after the end of each horsemen’s organization’s fiscal year. Recommendations for changes relating to the maintenance, use or administration of the funds should be included in the reports.

b. Specific. The Commonwealth’s fiscal code requires a set of two annual financial audits, of each Horsemen’s Association and its’ affiliates.

The first of the annual audits is an audit of each Horsemen’s association and its’ related affiliates’ financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). These audits will be conducted in accordance with generally accepted auditing standards. The audit report should also contain additional information that reconciles the amount of state Racing funds contained in each Horsemen’s Association GAAP financial statements to the audit of the statement cash receipts and disbursements for each association, which is further detailed below.

The second of the annual audits is an audit of each Horsemen’s association’s statement of Racing Fund cash receipts and disbursements and shall include an auditor’s report on these financial statements, in accordance with Generally Accepted Government Auditing Standards (GAGAS); an auditor’s report over internal controls related to the statement of Racing Fund cash receipts and disbursements, in accordance GAGAS; an auditor’s report on compliance with Chapter 436a of the Pennsylvania Horse Development and Gaming Act and fiscal code (72 P.S. § 1701-O), in accordance with GAGAS; and schedules to be determined by the Office of the Budget which will provide clarity into the types of administrative expenditures and health benefits for which state Racing funds are used.

Rev. 03/25/2011

C) Prepare and include additional supplementary schedules that reconcile the amount of state Racing funds contained in each Horsemen’s Association GAAP financial statements to the audit of the statement cash receipts and disbursements for each association, which is further detailed below.

D) Provide an annual audit of each Horsemen’s association’s statement of Racing

Fund cash receipts and disbursements and include an auditor’s report on these financial statements, in accordance with GAGAS; an auditor’s report over internal controls related to the statement of Racing Fund cash receipts and disbursements, in accordance GAGAS; an auditor’s report on compliance with Chapter 436a of the Pennsylvania Horse Development and Gaming Act and fiscal code (72 P.S. § 1701-O), in accordance with GAGAS; and schedules to be determined by the Office of the Budget which will provide clarity into the types of administrative expenditures and health benefits for which state Racing funds are used.

E) Draft Report – The Contractor(s) should provide the issuing officer a copy of the draft reports for review and comment 5 working days before issuance of the draft reports to the Horsemen’s Associations and its affiliates. Issuing officer approval should be obtained by the Contractor prior to the issuance of the draft report to the associations and its affiliates. The final reports should be addressed to both Office of the Budget management and management of the respective Horsemen’s association.

F) Association and Affiliate Comments – The Contractor(s) must include the views of responsible officials for each association and affiliate audit completed distributed.

IV-5 Reports and Project Control.

a. Task Plan. A work plan for each task that identifies the work elements of each task, the resources assigned to the task, and the time allotted to each element and the deliverable items to be produced. Where appropriate, a PERT or GANTT chart display should be used to show project, task, and time relationship.

b. Status Report. The Contractor(s) will be provided with the Commonwealth designated individual to direct the reporting and the acceptable reporting methods (e-mail, etc.). Reporting any problems identified during the course of the audit should be performed on an “as needed” basis.

c. Problem Identification Report. An “as required” report, identifying problem areas. The report should describe the problem and its impact on the overall project and on each affected task. It should list possible courses of