Responses_to_RFP_Questions_.pdf

Questions on LSC Request for Proposals on 2017 Financial Statement Audit

1. Have there been any significant changes in LSC’s operations in the current year

vs. the prior year (examples include: changes in audit policies, procedures or personnel, etc.)? Have there been any changes in funding in the current year either as a result of changes in dollar amounts received or in actual programs?

a. Answer - Nothing significant has changed with operations. Funding is subject to Congressional appropriations, so that can vary from year to year.

2. Were there any audit adjustments in the past two years? If so, how significant were the adjustments and what accounts did the adjustments relate to?

a. Answer - There were no adjustments in either year.

3. Does management prepare the financial statements and notes or do the auditors assist with the preparation?

a. Answer - Management prepares the draft statements and the notes.

4. Describe any relationships with third party service providers used by LSC that may have an impact on the accounting or financial reporting of the entity (i.e.

ADP, Paychex, etc).

a. Answer - We use Concur for Travel Management, PayCom for payroll and a cloud based backup system. We use TD bank for our bank accounts and we are allowed to use GSA contracts for purchasing goods and services. We also use AUL for our 403(b) retirement system.

5. Is there any specific expertise and advice LSC is looking for that it may not be receiving from its current provider? For example, is LSC satisfied with the incumbent auditors:

a. timeliness

b. pro-activeness on communications

c. involvement outside of the audit process

d. value they provide to LSC

e. Answer - No. The incumbent contractor has performed satisfactorily for the past several years.

6. Are there any improvements you would like to see in the audit process?

a. Answer - None that we know of but we are open to suggestions. The audit process follows GAAS and the yellowbook. We are satisfied with that process.

7. Was there any turnover with the incumbent auditor’s staff?

a. Answer - No. Same Partner in Charge, Senior Auditor and personnel for the last two years.

8. Has there been any disagreement with the incumbent? If yes, please provide some background on the issue.

a. Answer - Not in the last several years.

9. In an effort to understand the level of effort currently exerted by the incumbent auditing firm, please provide:

a. hours billed

Answer - This is a fixed priced contract and is not billed by hours. In general, payments are based on progress made. Milestones are estimated at 25%, 65% and 10%.

b. schedule of auditors in the field (For example, 2 people for 2 weeks in November)

Answer - We believe it was about 2 – 2 week on-site visits, but we do not track that activity.

c. prior year audit fees.

Answer - 2016 - $55,095.22, 2015 - $53,490.50.

10. Provide the date or range of dates by which the year-end draft financial statements are completed by management

Answer - Draft financial statements were provided by 11/15/16

11. Does the outside service bureau that processes the payroll for Legal Services Corporation (LSC) provide an SSAE 18 (Formerly SSAE 16 and SAS 70) Type 2 report?

Answer - Yes. They provided this on 10/13/16

12. We note that the page limit for this proposal is seven, exclusive of appendices.

It is difficult to effectively address all of the evaluation factors identified in the solicitation in seven pages. This includes laying out an effective technical approach. We are kindly requesting that LSC consider increasing the page limit from seven pages to fifteen pages.

Answer - In the past prior RFPs contained the same language. See additional responses to handle this issue.

13. If the page count is not increased, can we include our prior experience as an appendix in the proposal?

Answer - Yes. That is how other bidders in the past met this requirement.

14. Similarly, if the page count is not increased, can the project plan and approach be included as an appendix?

Answer - Yes.