SOW_GEWA-GCDC-Exchg_Council_Audit_2016_NNH16594503Q.pdf

STATEMENT OF WORK

AUDIT OF

FINANCIAL STATEMENTS

GODDARD EMPLOYEES WELFARE ASSOCIATION

PR: 4200590061

Background

The Goddard Employees Welfare Association (GEWA) Exchange is a non-appropriated fund entity established by NASA to contribute to the efficiency, welfare, and morale of

Goddard Space Flight Center personnel. The Exchange is an instrumentality of the government. Exchange Council Members are Center employees appointed by the

Directors of for two-year terms, and serve, in an oversight, policy, review, and approval capacity without additional compensation.

The GSFC Employee Exchange Council is responsible for the management oversight, policies, and procedures of Exchange non-appropriated funds operations, which provide products, services, and recreational activities for the welfare and morale of NASA

Goddard Space Flight Center employees. Operations are comprised of four venues

(Visitor Center, Exchange Store, discount ticket sales and Recreation Center).

SPECIFICS RELATIVE TO GEWA

For FY 2016, GEWA operating budget is $300,000. GEWA’s major sources of income are:

• Exchange Store

• Visitor Center

• Cafeteria

• Vendor Services

GEWA has 10 employees that work in the Exchange Store (4), Visitor Center (3), Recreation Center (1), Post Office (1), and the Bookkeeper (1). The manager of the

Exchange Store and one Exchange Store Cashier are full-time and the remaining six employees are part-time.

Please note that GEWA employees do not operate the cafeteria and vending services.

Scope

The requirement is to have a financial audit performed for the operating elements of the

Goddard Employees Welfare Association Exchange for the fiscal year ending September

30, 2016.

The audit must be conducted in accordance with Government Auditing Standards because the exchanges are instrumentalities of the United States Government.

Government Auditing Standards provide a framework for conducting high quality government audits and attestation engagements with competence, integrity, objectivity, and independence. Audits performed in compliance with Government Auditing Standards provide information used for oversight, accountability, and improvements of government programs and operations. When auditors comply with GAGAS, their work can lead to improved government management, better decision making and oversight, effective and efficient operations, and accountability for resources and results.

Requirements

Observe on-site test counts of physical inventories of the Exchange Store and Visitor

Center Gift Shop during October 1 – 5, 2016.

Perform all inquiries, tests, and observations deemed necessary to provide independent opinion on the Financial Statements of the Exchange as of September 30, 2016.

Issue an Independent Auditor’s report on the financial statements (i.e., opinion or disclaimer), report on internal control over financial reporting, and report on compliance with laws, regulations, and provisions of contracts or grant agreements.

The auditor’s report on the financial statements must cover the consolidated two-year comparative financial statements for FY 2015 and FY 2016.

Perform close out of accounting records for FY 2016 and establish beginning balance accounts for FY 2017.

Provide required adjusting journal entries (resulting from subject audit) for recording in the Exchange accounting system.

Deliverables

Audit Report to be used in GEWA’s annual report – report must be submitted by

January 18, 2017.

Any recommendations the auditor deem necessary to ensure effective and efficient operations.

The contractor is advised that this solicitation is for a firm fixed price purchase order and additionally the contractor is required to provide evidence that the firm has had a Peer

Review within the last three years in accordance with Government Auditing Standards.

The contractor is advised that per the Inspector General Act of 1978, as amended, section

4, paragraph (b)(1)(C), directs each Inspector General, with respect to the organization within which the office is established, to take appropriate steps to ensure that any work performed by non-Federal auditors complies with the standards established by the

Comptroller General. Therefore, a quality control review may be performed by the

NASA IG to ascertain whether this subject audit was performed in accordance with generally accepted government auditing standards (GAGAS) issued by the Comptroller

General of the United States. The contractor agrees any costs incurred to support such an audit (if it is performed) will not be separately billed to NASA.

Government-Furnished Equipment and Government-Furnished Information:

No government-furnished equipment will be provided

Access to GEWA financial systems, reports, records and policies will be provided as government-furnished information to perform audit

Place of Performance:

On contractor’s site and government site visits for information gathering

Period of Performance:

GEWA Base Year: October 01, 2016 – January 18, 2017

GEWA Option 1: October 01, 2017 – January 18, 2018

GEWA Option 2: October 01, 2018 – January 18, 2019

GEWA Option 3: October 01, 2019 – January 18, 2020

GEWA Option 4: October 01, 2020 – January 18, 2021

GODDARD CHILD DEVELOPMENT CENTER

PR: 4200590093

Background

The NASA Goddard Child Development Center (GCDC) is a high quality day care that utilizes the quality of education and helps in the development of young children for employees at NASA Goddard Space Center and other federal contractors. GCDC is a

National Association for the Education of Young Children accredited, Maryland State

Department of Education certified child care center which can support up to 127 children between the ages of two and five through eight classrooms.

GCDC is operated and controlled by the Goddard Employees Welfare Association

(GEWA). GCDC is supported by the GCDC Board of Director’s Association, a not-for-profit organization (501(c)(3)), which serves as an advisory board to GCDC. The board is composed for nine member; four pointed NASA civil servant and five elected members.

For FY 2016, GCDC’s operating budget is $1,500,000. Our major source of income is student tuition, charged on a weekly basis.

GCDC has 26 employees that work in the center; four administrators, one food service manager, twenty one lead or assistant teachers.

Scope

The requirement is to have a financial audit performed for the operating elements of the Goddard Child Development Center (GCDC) for the school year ending August 31, 2016.

NASA Goddard Child Development center is a part of the Goddard Employees Welfare

Association (GEWA). GEWA is an instrumentality of the United States Government. As such, the audit must be conducted in accordance with Government Auditing Standards because the exchanges are instrumentalities of the United States Government.

Government Auditing Standards provide a framework for conducting high quality government audits and attestation engagements with competence, integrity, objectivity, and independence. Audits performed in compliance with Government Auditing Standards provide information used for oversight, accountability, and improvements of government programs and operations. When auditors comply with GAGAS, their work can lead to improved government management, better decision making and oversight, effective and efficient operations, and accountability for resources and results.

Requirements

Perform all inquiries, tests, and observations deemed necessary to provide independent opinion on the Financial Statements of NASA GCDC for the period of September 1, 2015 through August 31, 2016.

Issue a report for financial statements (i.e., opinion or disclaimer)

Report on internal controls for financial reporting

Report on compliance with laws, regulations, and provisions of contracts or grant agreements.

Perform close out of accounting records for school year end 2016 and establish beginning balance accounts for school year 2017.

The auditor’s report on the financial statements must cover the consolidated two-year comparative financial statements for school year 2015 and 2016.

Provide required adjusting journal entries (resulting from subject audit) for recording in the NASA GCDC accounting system.

Deliverables

Audit Report to be used in GCDC’s annual report – report must be submitted by

December 16, 2016.

Any recommendations the auditor deem necessary to ensure effective and efficient operations.

The contractor is advised that this solicitation is for a firm fixed price purchase order and additionally the contractor is required to provide evidence that the firm has had a Peer Review within the last three years in accordance with Government Auditing Standards.

The contractor is advised that per the Inspector General Act of 1978, as amended, section 4, paragraph (b)(1)(C), directs each Inspector General, with respect to the organization within which the office is established, to take appropriate steps to ensure that any work performed by non-Federal auditors complies with the standards established by the Comptroller General. Therefore, a quality control review may be performed by the NASA IG to ascertain whether this subject audit was performed in accordance with generally accepted government auditing standards (GAGAS) issued by the Comptroller General of the United States. The contractor agrees any costs incurred to support such an audit (if it is performed) will not be separately billed to NASA.

Government-Furnished Equipment and Government-Furnished Information:

No government-furnished equipment will be provided

Access to GCDC financial systems, reports, records and policies will be provided as government-furnished information to perform audit

Place of Performance:

On contractor’s site and government site visits for information gathering

Period of Performance:

Base Year: September 01, 2016 – December 16, 2016

GCDC Option 1: September 01, 2017 – December 16, 2017

GCDC Option 2: September 01, 2018 – December 16, 2018

GCDC Option 3: September 01, 2019 – December 16, 2019

GCDC Option 4: September 01, 2020 – December 16, 2020

Headquarters NASA Exchange Council

PR: 4200594503

Compilation and Review of the Headquarters NASA Exchange Council

NASA Policy Directive 9050, NASA Exchange and Morale Support Activities, requires that audits of Exchange finances shall be conducted by a licensed independent public accounting firm, in accordance with Government Auditing Standards (GAS) issued by the Comptroller General of the United States. It provides that in some of the smaller

Exchanges (i.e. less than $500,000 total annual revenues), it may be appropriate to perform a review in accordance with American Institute of Certified Public Accountants

Standards for Accounting and Review Services. In accordance with NASA Policy

Directive 9050, the NASA Headquarters Exchange which has less than $500,000 in total revenues seeks to procure compilation and review services (as described below) by a licensed Independent Public Accountant (IPA) or independent public accounting firm referred to below as “the firm.”

Professional Services

The compilation and review of Exchange finances shall be conducted in accordance with

American Institute of Certified Public Accountants Standards for Accounting and Review

Services. The firm will be responsible for compilation of the statement of financial position of the National Aeronautics and Space Administration Headquarters Exchange

Council (HQEC) as of September 30, 2016, and the related statement of activities, changes in net assets, and statement of cash flow. The firm will also be responsible for preparing end of period closing transactions, including any inventory adjustments resulting from the end of year inventory conducted by HQEC. The HQEC utilizes

Quickbooks and Quickbooks Point of Sale (POS) software. The firm must be proficient with the software and able to utilize it for its analysis, reports, and accounting transactions.

The review performed by the firm should be designed to obtain only limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. During the performance of the compilation and review engagement, the firm can make suggestions about the form or content of the financial statements, in whole or in part, based on information that is the representation of management. All work should be completed, including delivery of the Compilation and Review opinion and final report, by December

31, 2016.

Any other information necessary to complete the review, including last year’s financials, may be provided upon request.

Background:

Description of Reporting Entity

The National Aeronautics and Space Administration Headquarters Exchange Council is a

NASA employee volunteer organization. Its main mission is to introduce and encourage activities that contribute to the quality of life, well-being, and morale of

NASA Headquarters personnel. The NASA Headquarters Exchange Council is responsible for supervising and directing the retail store that generates revenues, which mailto:may allows the organization to offer social events for NASA employees. The organization reports to NASA’s Associate Administrator for Mission Support Directorate, and

Executive Director for Headquarters Operations. As an instrumentality of the United

States, the NASA Headquarters Exchange Council is entitled to all privileges, rights, and immunities of a government instrumentality.

The Headquarters Exchange Council’s primary source of revenue is non-appropriated funds generated from retail store operations and event ticket sales. Retail store operations include two salaried employees. Review of the financial statements includes all HQEC activities related to non-appropriated funds. All operations are located at 300 E St, SW, Washington, DC 20546.

Budget and Budgetary Accounting

NASA Headquarters Exchange Council’s Board of Directors annually adopts a budget for non-appropriated funds that provide the Council with authority to use funds from its cash accounts at the NASA Federal Credit Union to meet operating and program expense requirements.

Basis of Accounting

Financial statements are prepared under the accrual basis of accounting. HQEC does not use budgetary accounting because non-appropriated funds are not subject to legal constraints.

Cash Balances

NASA HQEC maintains its cash in commercial bank accounts. Cash receipts and disbursements are processed through these financial institutions and credit unions and not by the U.S. Treasury. The balance of funds with the commercial bank represents non-appropriated fund balances that are available to pay current liabilities and to finance authorized purchase commitments relative to goods or services that have not been received.

Inventory

NASA HQEC maintains its inventory on a perpetual basis. An annual inventory is performed on or near September 30 each year.

Tax Status

NASA HQEC, as a NASA Employee Organization is a wholly owned instrumentality of

NASA (i.e., a subdivision of the U.S. Government) and is not generally subject to federal, state, or local income taxes, and accordingly, no provision for income tax is made.

HQEC Base Year: August 1, 2016 – December 31, 2016

HQEC Option 1: August 1, 2017 – December 31, 2017

HQEC Option 2: August 1, 2018 – December 31, 2018

HQEC Option 3: August 1, 2019 – December 31, 2019

HQEC Option 4: August 1, 2020 – December 31, 2020