NAFI Audit Statement of Work_Aug2026.docx

PR#: 60100PR260036814

STATEMENT OF WORK

8/12/2026

STATEMENT OF WORK (SOW)

FOR

Audits of the Athletic Activity Fund, Cadet Activities Fund, and Academic Activities Fund at the US Coast Guard Academy

1.0 GENERAL

1.1 BACKGROUND

The United States Coast Guard Academy, a component of the United States Coast Guard, is responsible for developing leaders of character for the officer corps. The Coast Guard Academy has three non-appropriated fund instrumentalities (NAFIs) of the United States Government. The three NAFIs are: (1) Athletic Activity Fund; (2) Cadet Activities Fund; and (3) Academic Activities Fund.

The mission of the Athletic Activity Fund (AAF) is to provide support and services to the Coast Guard Academy Athletic Division in operation of its Intercollegiate Athletics program and co-curricular activities in preparing graduates who are leaders of character. The AAF financial objective is to maintain a sound capital structure to ensure continued operation of the AAF program in support of the CGA Athletic Division.

The mission of the Cadet Activities Fund (CAF) is to provide extracurricular programs comparable to other college campuses that also promote the Coast Guard’s core values. The CAF financial objective is to maintain a sound capital structure to ensure continued operation of the CAF program in support of the CGA Corps of Cadets.

The mission of the Academics Activities Fund (AcAF) is to provide academic enrichment opportunities for cadets and faculty members beyond those programs, projects, and activities necessary for the completion of a bachelor’s degree. The AcAF financial objective is to maintain a sound capital structure to ensure continued operation of the AcAF programs in support of CGA Academic’s Division.

1.2 SCOPE

The Contractor shall provide an audit of the non appropriated fund financial statements of the three USCG Academy Non-Appropriated Funds Instrumentalities: AAF, CAF and AcAF for the Fiscal Year ending June 30, 2026. An examination of management’s assertions will also be required regarding the effectiveness of the internal controls structures over financial reporting.

1.3 OBJECTIVE

The objectives of this solicitation are financial, compliance and performance including:

· 1. Expressing an opinion on the fairness of presentation of the Operating Summary (Balance Sheet and Income Statement) of each of the three NAFIs as of June 30, 2021 2026 in conformance with Generally Accepted Government Auditing Standards (GAGAS/ “Yellow Book”), Coast Guard Financial Resource Management Manual (FRMM – NAF sections), with standards and procedures set forth in the Non-Appropriated Fund Instrumentalities (NAFI) Manual (Commandant Instruction M7010.5 series), Morale, Well-Being, and Recreation Manual (Commandant Instruction M1710.13E). Coast Guard Non-Appropriated Fund Audit Guide. CG NAFIs use a comprehensive accounting basis that may differ slightly from GAAP.

· Determining whether the three NAFIs have established sufficient internal controls to safeguard the assets against loss from unauthorized use or disposition, including assessing the adequacy of the management control system to measure, report, and monitor operations.

· Reviewing and recommendation recommending of improvements in the internal controls identified in the above objective (Paragraph V.A. 2.above), including at a minimum, testing, and analyzing such areas as cash receipts, cash disbursements, and payroll.

· 5. Recommending ways to improve the effectiveness of the Activity Funds’ organization and fiscal operations to management. .

1.4 APPLICABLE DOCUMENTS

The following documents provide specifications, standards, or guidelines that must be complied with in order to meet the requirements of this contract.

General administrative, financial, personnel, and operations instructions are contained in Commandant Instructions M1710.13D13 series, Coast Guard MWR Manual, M7010.5C5 series - Coast Guard Non-Appropriated Fund Instrumentality Manual, and M12271.1B 1 series - Non-Appropriated Fund Personnel Manual, supplemented with other CG Headquarters’ Instructions and local command guidance. The Contract Auditor should note that Coast Guard policy is updated periodically. Before the engagement, the Contract Auditor should ensure that Coast Guard policy documents, as stated herein have not been amended.

Previous financial statements and audit reports are available from the past three (3) years for reference purposes. Each NAFI prepares an annual budget report. , and four (4) quarterly reports that are submitted to the USCGA Comptroller. Monthly budget to actual reports are prepared for local management purposes. The last AAF and AcAF audits were completed in 2022. The last CAF audit was completed in 2020.

1.4 ACTIVITY FUND GENERAL INFORMATION

The U.S. Coast Guard Academy’s Activity Funds (AAF, CAF and AcAF) accounting records are maintained on-site using on-line QuickBooks Pro accounting software. The modules may consist of a Chart of Accounts, Accounts Payable, Accounts Receivables, and a General Ledger. Due to the small number of employees (6), Payroll is processed with ADP payroll service contracted by the Community Services Command.

The accounting function is performed on site by each of the Activity Fund Business Managers.

Copies of Activity Fund accounting records including a balance sheet, profit & loss statement, aged accounts payable report, and aged accounts receivable report are available and may be requested as part of the audit process.

2.0 SPECIFIC REQUIREMENTS/TASKS

The Contractor must complete an audit of the three activity funds (AAF, CAF and AcAF) according to Generally Accepted Government Auditing Standards (GAGAS/ “Yellow Book”), Coast Guard Financial Resource Management Manual (FRMM – NAF sections), with standards and procedures set forth in the Non-Appropriated Fund Instrumentalities (NAFI) Manual (Commandant Instruction M7010.5 series), Morale, Well-Being, and Recreation Manual (Commandant Instruction M1710.13E), and other regulatory guidance, as applicable.

The three audits will cover the Fiscal Year ending June 30, 2026.

2.1 DRAFT AUDIT REPORT

The Contractor must prepare a preliminary draft of each audit report and submit the draft report to each of the three Activity Fund Business Managers (AAF, CAF and AcAF). After the business managers have reviewed the draft report for factual accuracy and provided management comments, the Contractor will make all appropriate changes and send the revised PDF draft report to each manager, who will in turn forward the draft through the chain of command, including the Academy Comptroller and the Director of Business Operations.

The Contractor shall make changes necessary to clarify the findings and statements made in the draft audit report and cooperate with each of the three activity funds (AAF, CAF and AcAF) as necessary to resolve any audit findings and disputes.

The Contractor must email the three Draft Audit Reports to the Academy Comptroller at: Stephen.A.Hart@uscg.mil

2.2 EXIT BRIEFING

If requested, the Contractor must be available to conduct an exit briefing (virtual is acceptable) with the AAF, CAF and AcAF business managers, and the corresponding chain of command, including the Academy Comptroller and the Director of Business Operations, to discuss the audit report once it has been finalized.

2.3 FINAL AUDIT REPORT FORM AND CONTENT

The Contractor must address the audit report to the Commandant of CadetDirector of Business Operations, U. S. Coast Guard Academy.

The report must contain these parts:

· A report and opinion on the financial statements’ examination, consisting of a statement of the Contractor’s scope, and an opinion on the financial statements according to GAAP and GAO Standards, including the Chief Financial Officer’s Act.

· A report and opinion on whether each of the three Activity Funds (AAF, CAF and AcAF) has established sufficient internal controls to safeguard its’ assets against loss from unauthorized use or disposition and findings, or recommendations to improve the internal control environment. Each finding will include a regulatory citation or criteria to identify the laws, regulations, directives, or standards against which the condition is measured.

(a) Each finding, labeled as such, will include whenever feasible, quantifiable terms of the effect of the condition and its impact, consequences, or significance on cost, performance, or lost sales. Each finding also should include those other elements required by GAO Standards, including the condition, cause, effect and criteria, and recommendations to correct the finding.

(b) Separate and number each finding by seriousness or materiality concerns to highlight and identify important areas and facilitate follow-up.

(c) (c) Report on the status of the corrective recommendations for the previous two (2) years’ of audits and other inspectionsNOTE: Management’s comments will be required through follow-up action initiated by the Community Service Command/MWR HeadquartersUSCGA Director of Business Operations, which requires NAFI units to comply with recommendations in accordance with Coast Guard and GAO directives.

· A presentation of the balance sheet and income statements for the year ending 30 June 20212026. The for each of eth three Activity Funds (AAF, CAF and AcAF). The income statement presentation should include a summary of all revenue and expenses and a breakdown showing results for business activities.

2.4 FINAL AUDIT REPORT DELIVERY

The Contractor shall deliver three (3) final report copies for each of the three Activity Funds (AAF, CAF, AcAF) (for a total of nine report copies) to the U.S. Coast Guard Academy at the below address and in electronic format.

U.S. Coast Guard Academy Comptroller (bf) 15 Mohegan Ave New London, CT 06320

Email: Stephen.a.hart@uscg.mil

The management letter must be bound as a part of each of the three audit reports.

The Contractor will have completed all work required under this contract only on delivery and acceptance of the final audit reports.

2.5 REPORTING ISSUES

The Contractor must report any suspected fraud, waste, mismanagement, abuse or any other illegal or unethical action by NAF personnel or vendors to the Coast Guard Academy Comptroller and the Coast Guard Academy Director of Business Operations.

2.6 PERFORMANCE REQUIREMENTS

The Contractor must maintain independence and objectivity throughout the engagement.

The Contractor must safeguard and protect sensitive information, limit disclosure, and ensure secure transmission of documents (i.e. through encryption/password protection.)

At the end of performance, any Government records in Contractor’s possession must be returned or destroyed.

3.0 CONTRACTOR PERSONNEL

The Contractor must provide qualified personnel to perform all requirements specified in this Statement of Work. The contractor must be an independent CPA firm or licensed CPA. Contractor must have experience performing audits under applicable standards, have experience with the U.S. government, nonprofit or NAFI audits.

The contractor must provide key personnel qualifications.

A Project Manager must be assigned to coordinate data gathering, to interface with each of the three Activity Fund Business managers, and to set up any onsite visits (if required).

3.1 SECURITY AND ACCESS

The Contractor will be granted access to NAF system, financial records, and facilities as required. All Contractor personnel must comply with Coast Guard security protocols and privacy rules.

4.0 PERIOD OF PERFORMANCE

The period of performance for this contract is a one-year base period with three one-year option periods as follows:

If an option period is exercised, the Contractor shall perform the same audit services for the applicable fiscal year ending June 30 of that option period, unless otherwise modified by the Government.

4.1 PLACE OF PERFORMANCE

The primary place of performance will be the Contractor’s facilities.

4.2 TRAVEL

Contractor may schedule an onsite visit(s) for field work to the US Coast Guard Academy in New London CT, if needed, to assist in completion of the three audits. The Project Manager must coordinate visit dates with the Contracting Officer Representative.

4.3 POST AWARD CONFERENCE

The Contractor must attend a Post Award Conference with the Contracting Officer’s Representative (COR) no later than seven (7) business days after the date of award. The purpose of the Post Award Conference, which will be chaired by the COR is to discuss technical and contracting objectives of this contract and to introduce team members. The Post Award Conference will be held via teleconference.

5.0 GOVERNMENT FURNISHED RESOURCES

The Government will not furnish any resources to the Contractor in support of this contract.

6.0 CONTRACTOR FURNISHED PROPERTY

The Contractor must furnish all facilities, materials, equipment and services necessary to fulfill the requirements of this contract.

7.0 GOVERNMENT ACCEPTANCE PERIOD

The Contracting Officer Representative (COR) will review deliverables within five (5) business days and provide the contractor with an email that provides documented reasons for non-acceptance. If the deliverable is acceptable, the COR will send an email to the Contractor notifying it that the deliverable has been accepted.

7.1 CORRECTION OF DEFICIENCIES

The COR will have the right to reject or require correction of any deficiencies found in the deliverables that are contrary to the information contained in the Contractor’s accepted proposal. In the event of a rejected deliverable, the Contractor will be notified in writing by the COR of the specific reasons for rejection. The Contractor may have an opportunity to correct the rejected deliverable and return it per delivery instructions.

8.0 DELIVERABLES

The contractor must consider items in BOLD as having mandatory due dates.

DISTRIBUTION

N/A

COR

8.1 ACCEPTANCE CRITERIA

The three audits will be considered complete when:

· All deliverables have been submitted in accordance with this Statement of Work.

· Findings and recommendations have been presented to NAF leadership.

· Any critical compliance issues are clearly documented with recommended corrective actions.

9.0 CONTRACT STRUCTURE

This contract shall be funded with appropriated funds. Each audit requirement shall be assigned a distinct Contract Line Item Number (CLIN) for each contract year. Travel shall be established as a separate CLIN for the base period and for each option year.

10.0 POINTS OF CONTACT

Points of Contact at USCGA: