Logan county Audit-RFP-1 2024 Revised.pdf

Logan County

REQUEST FOR PROPOSAL

FINANCIAL AUDITING SERVICES FOR THE PERIOD OF

FIVE (5) YEARS

FY2024 AUDIT IN 2025

FY2025 AUDIT IN 2026

FY2026 AUDIT IN 2027

FY2027 AUDIT IN 2028

FY2028 AUDIT IN 2029

PROJECT NAME: Financial Audit

Logan County 315 Main Street

Sterling, Colorado 80751 PH: 970-522-0880, ext. 256 FAX: 970-526-5380 unreind@logancountyco.gov

Release Date: 05/15/2024

315 MAIN STREET, SUITE 2 • STERLING, CO 80751 • 970-522-0888 • WWW.LOGANCOUNTY.COLORADO.GOV

REQUEST FOR PROPOSAL

Financial Audit Logan County, Colorado

Article I. Introduction

Logan County (the County) issues a Request for Proposals (RFP) to establish a five (5) year contract for financial auditing services (the Project) to commence with the FY2024 audit in 2025. The following proposal request will outline the Project goals and detail the format you should use to submit your proposal. Please take careful notice of the Timeline (Sec 2.06), as well as the Proposal Format (Sec 3.03) when preparing and submitting your proposal. In order for your proposal to be considered, it must meet the pre-conditions, submission deadline, and project schedule as outlined in the Timeline Section 2.06.

Section 1.01 Management

Debbie Unrein, Logan County Finance Budget Officer, or her designated representative will manage this Project.

Section 1.02 Contact Information

Please contact Debbie Unrein, Finance Budget Officer, for questions about the proposal:

Phone: 970-522-0880, ext. 256 Fax: 970-526-5380 E-mail: unreind@logancountyco.gov

Substantive questions about the Project will only be accepted in writing. All questions and County responses will be made available to contractors considering submitting a proposal.

Article II. Statement of Needs

Section 2.01 Existing Conditions

A. Background Information

Logan County is a general purpose local government that provides a full range of services. The County seat and County offices are located in the Sterling, Colorado area. Total population of the County in 2020 was 21,536. Logan County’s fiscal year begins on January 1 and ends on December 31. Net position reported in 2022 was $79,385,821. The County employs approximately 200 full-time staff.

Logan County provides the following services to its citizens:

1. General Government

a. Property valuation and assessment;

b. Vehicle licensing, election administration, and recording of official documents;

c. Planning and zoning, and building inspection;

d. Tax collection and distribution;

e. Veterans services; and

f. Administrative services.

2. Judicial and Public Safety

a. Coroner;

b. Emergency services and preparedness;

c. Law enforcement and operation of the detention center.

3. Operations and Maintenance of Public Highways and Bridges

4. Operations and Maintenance of the Solid Waste facility.

5. Recreation

a. Operation and Maintenance of the Logan County Fairgrounds and Event Center.

b. 4-H and Extension services.

c. Operation and Maintenance of the Shooting Sports Complex.

6. Health and Human Services

7. Ambulance Services

B. Fund Structure

Logan County has reported the following fund types as of the year ended December 31, 2022:

FUND TYPE NUMBER OF FUNDS

General Fund 1 Special Revenue Funds 10 Capital Improvement Fund 1

From year to year, the number of funds or component units used may increase or decrease depending on various voter initiatives, county activities, and GASB pronouncements. The County reported four major funds in 2022: General Fund, Human Services, Road and Bridge, and Capital Expenditure Fund.

C. Federal and State Financial Assistance

During the fiscal year ended December 31, 2022, Logan County expended approximately 6.9 million dollars in federal awards. Details as to major and non-major federal financial assistance programs, as well as state financial assistance, can be found in the Single Audit Report.

D. Reporting Entity

All applicable funds, organizations, institutions, agencies, departments and offices, which are not separate legal entities, are included in the financial statements as part of the “primary government” of Logan County.

E. Financial Software

The County currently uses CIC (Computer Information Concepts, Inc.) for its accounting and payroll functions but is in the process of transitioning to Tyler Technologies Inc. The accounting systems include general ledger, accounts payable, accounts receivable, payroll, personnel, fixed assets, purchasing and budget preparation.

F. Availability of Prior Audit Reports and Workpapers

Prior year audit reports and management letters are available for viewing on the Logan County website at https://www.colorado.gov/pacific/logan/finance-department-0 for any interested proposer who wishes to review them.

Logan County will use its best efforts to make prior audit reports and supporting work papers available to proposers to aid their response to the request for proposals. Requests for information other than what is available on the website must be by fax request at 970-526-5380. The County’s current auditors, Lauer, Szabo & Associates, PC., 200 Main Street, Sterling, CO, 970-522-2218, are available to answer any questions concerning prior year audits.

Section 2.02 Mission

The goals and objectives of this Project are as follows:

To obtain a professional auditor’s opinion regarding the fair presentation of Logan County’s basic financial statements in accordance with generally accepted accounting principles, including both a financial audit and an “in relation to report” on Logan County’s schedule of expenditures of federal awards.

Section 2.03 Project Specifications

The summary of Project requirements includes:

A. Financial Audit.

The auditor is to express an opinion on the fair presentation of Logan County’s basic financial statements, in conformity with generally accepted accounting principles. The auditor is not required to audit the combining and individual funds statement and supporting schedules. However, the auditor is to provide an “in relation to” report on the combining and individual fund financial statements and supporting schedules based on the auditing procedures applied during the audit of the general purpose financial statements. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards.

To meet the requirements of this request for proposal, the Financial Audit shall be performed in accordance with the standards below:

1. The audit of Logan County’s financial statements is to be performed in accordance with generally accepted auditing standards established by the American Institute of CPA’s Auditing Standards Board and the standards for financial audits set forth in the U.S.

General Accounting Office’s (GAO) “Government Auditing Standards.” The audit is to also be performed in accordance with the State of Colorado Local Government Audit Law (C.R.S. §§ 29-1-601, et seq.).

B. Single Audit.

The auditor is not required to audit Logan County’s schedule of expenditures of federal awards. However, the auditor is to provide an “in relation to” report on that schedule based on the auditing procedures applied during the audit of financial statements.

To meet the requirements of this request for proposals, the Single Audit shall be performed in accordance with the standards below:

1. The single audit of Logan County’s schedule of expenditures of federal awards assistance programs is to be performed in accordance with generally accepted auditing standards established by the American Institute of CPA’s Auditing Standards Board, the https://www.colorado.gov/pacific/logan/finance-department-0 standards set forth in the U.S. General Accounting Office’s (GAO) “Government Auditing Standards,” the provisions of the federal Single Audit Act, and the Uniform Guidance.

C. Reports.

Following the completion of audit work, the auditor shall issue the reports below:

1. To be included:

a. A fully completed Financial Statement for Logan County to include but not limited to Independent Auditors’ Report; Management’s Discussion and Analysis; Basic Financial Statements; Required Supplementary Information; Other Supplementary Information; and Single Audit Section.

b. A report on the fair presentation on the financial statements in conformity with generally accepted accounting principles; and

c. Report on Compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with government auditing standards.

2. Separate reports as part of the Financial Audit:

A letter to the Board of County Commissioners identifying opportunities for strengthening internal controls and operating efficiency (a/k/a “Management Letter” or “Memo of Advisory Comments”). Responses from affected County departments will be solicited and incorporated into the letter.

3. To be included in the Single Audit Report:

a. A report on the Schedule of Expenditures of Federal Awards and related notes;

b. A report on compliance and internal controls over financial reporting based on an audit of the financial statements.

c. A report on compliance and internal controls over compliance applicable to each major federal award program; and

d. Schedule of findings and questioned costs, and summary schedule of prior audit findings if applicable.

4. Separate report as part of the Single Audit:

Information required for completing the Data Collection Form for Reporting on Audits of States, Local Governments and Non-Profit Organizations.

5. Irregularities and Illegal Acts Reporting:

The auditor shall make an immediate, written report of all irregularities and illegal acts of which they become aware to the Board of County Commissioners.

6. Internal Control Reports:

In the required reports on internal controls detailed above, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect Logan County’s ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions discovered by the auditor shall be reported in the letter to the Board of County Commissioners identifying opportunities for strengthening internal controls and operating efficiency.

D. Special Considerations.

1. Accounting Records.

The accounting and financial reporting functions of Logan County are centralized in the Finance Department. Some accounting records and grant program administration documents are maintained at the division/department level. Audit field work may necessitate visiting some of these offices. Office locations are found in Appendix A, attached hereto and incorporated by this reference.

2. Presentation to the Board of County Commissioners.

At the conclusion of each annual audit, the audit firm will be required to make a presentation to the Board of County Commissioners. This presentation will include a review of highlights of the financial statements, overview of the auditors’ reports and findings, and any other matters the firm considers pertinent.

3. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review work papers relating to matters of continuing accounting significance.

E. Logan County does not have the resources to prepare its own financial statements.

1. It is our expectation that the audit firm prepares the complete audit report to include financial statements and notes.

2. It is our expectation that the majority of the audit is done on site.

3. Prior audits are available at https://logancounty.colorado.gov/departments/logan-county-finance-department for reference.

Section 2.04 Payment

Upon completion of the project by Contractor, the County shall pay Contractor an amount not to exceed the Contractor’s proposed maximum fee (inclusive of all costs and expenses), as summarized in Section 3.03 D., below.

Section 2.05 Insurance-Liability, Worker’s Compensation

Contractor agrees to procure and maintain, at its own cost, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by Contractor pursuant to the Agreement to provide services responsive to this RFP. At a minimum, Contractor shall procure and maintain, and shall cause any subcontractor to procure and maintain, the following insurance coverages:

https://logancounty.colorado.gov/departments/logan-county-finance-department https://logancounty.colorado.gov/departments/logan-county-finance-department

Worker's Compensation insurance to cover obligations imposed by applicable law for any employee engaged in the performance of work under the Agreement, and Employer's Liability insurance with minimum limits of five hundred thousand dollars ($500,000) each accident, one million dollars ($1,000,000) disease

– policy limit, and one million dollars ($1,000,000) disease – each employee. Evidence of qualified self-insured status may be substituted for the requirements of this Section. Commercial General Liability insurance with minimum combined single limits of one million dollars ($1,000,000) each occurrence and one million dollars ($1,000,000) general aggregate. The policy shall be applicable to all premises and operations, and shall include coverage for bodily injury, broad form property damage, personal injury (including coverage for contractual and employee acts), blanket contractual, products, and completed operations. The policy shall contain a severability of interests provision, and shall include the County and the County's officers, employees, and contractors as additional insureds. No additional insured endorsement shall contain any exclusion for bodily injury or property damage arising from completed operations. Professional liability insurance with minimum limits of one million dollars ($1,000,000) each claim and one million dollars ($1,000,000) general aggregate.

Such insurance shall be in addition to any other insurance requirements imposed by law.

Contractor shall file with the County immediately after execution of the Agreement and prior to commencement of work a certificate of insurance as evidence that the required policies are in full force and effect. The certificate shall identify the Agreement. The County shall be named as an additional insured party on all policies.

Section 2.06 Timeline

In order to complete the Project, the County has set the following timetable. This timetable is subject to change by the Service.

Request for Proposals Sent Out 05/15/2024

Deadline for Proposal Submission 06/28/2024

Opening of Sealed Proposals 07/02/2024

BOCC may require further interview of selected finalists depending on the submitted Proposal.

Project Award Date 07/16/2024

Article III The Proposal

Section 3.01 Expectations

The County will enter into an agreement based on the proposal determined to be the most beneficial to the County considering a variety of factors. The County reserves the right to reject any or all proposals, without obligation to the County.

Section 3.02 Selection Criteria

Proposals will be evaluated based upon the information submitted. All proposals are to be sealed with the Project Name clearly written on the front of the envelope. Consideration will also be given to performance projections as well as cost. The following criteria will be the primary considerations for selecting a proposal:

A. Submission of all proposals in the correct format as outlined in Section 3.03, by the stated deadline in Section 2.06.

B. The perceived effectiveness of the proposal’s solution for the County’s stated mission (Sec 2.02).

C. The perceived ability for the Contractor to deliver the solution set forth in their proposal within the allotted time frame.

D. The Contractor's past performance and successes in similar projects.

E. Overall cost of the proposal.

Section 3.03 Proposal Format

The County requires that you include the following information in your proposal:

A. Contractor Summary and Capabilities.

Include a brief history of your company including your past experience with similar projects.

Also include the company owners' names or those persons authorized to sign on behalf of your business.

B. Methodology.

Please use this section to outline specifically your proposed method for achieving the goals of the Project. This should include a detailed timeline of milestones for completing the Project.

C. Expected Results.

Use this section to summarize the expected results of your methodology listed above.

D. Expense Summary.

Give a summary of the total fees, costs and expenses for your proposal. You may also include a brief explanation of the contributing costs to the total cost. Include payment conditions or terms of compensation.

E. Licensing, Permits and Bonding.

If applicable, include the details of your licenses, permits and bonds for the services you are proposing. If possible, enclose proof of your licenses, permits and bonds.

F. References.

Provide a minimum of three (3) references for past projects similar in scope. Please include contact information for each of the references listed.

G. Proposal Delivery.

Regardless of delivery method, all proposals must be sealed and received by the County in the Commissioner’s Office at 315 Main Street, Sterling, Colorado 80751 by 4:00 PM local time, June 28, 2024. Proposals may be hand-delivered, or shipped via US Mail, FedEx, UPS, or other such commercial carrier services. Fax or email submittals will not be accepted.

APPENDIX A

LOGAN COUNTY KEY COUNTY BUILDING LOCATIONS AND OFFICES

Location Key Offices

County Court House 315 Main Street Sterling

Commissioners, Commissioner’s Administrative staff, Assessor, Clerk and Recorder, Human Resources, Finance, Planning and Zoning, Treasurer, Veterans Officer

Central Services Building 508 S 10th Ave Sterling

Human Services Offices, Attorney, Extension Office, Pest Control District Administration

Heritage Center 821 N Division Ave Sterling

Heritage Center Administration

Justice Center 110 Riverview Road Sterling

Detention Center, Sheriff Administration, Sheriff Patrol and Investigations, County/District Courts

Road and Bridge

12603 CR 33

Sterling

Road & Bridge Administration, Road & Bridge Maintenance

Ambulance Service 410 Oak Street Sterling

Ambulance Services

Solid Waste Management 24235 East US Hwy 6 Sterling

Landfill and Landfill Administration