OPD-2026-19 - Request for Proposals.pdf

Request for Proposal

RFP OPD-2026-19

Annual Certification of

OPWDD’s Consolidated

Fiscal Report

OPWDD: Putting People First

RFP OPD-2026-19 2 of 37 Annual Certification of OPWDD’s CFR

1. INTRODUCTION

1.1. Issuing Office

1.2. Purpose

1.3. Calendar of Events

1.4. Restricted Period

1.5. Announcements and Amendments to the RFP

1.6. Term of Contract

1.7. Independence Provisions

1.8. Conflicts of Interest

1.9. Bidder Minimum Qualifications

2. SCOPE OF WORK

2.1. Purpose

2.2. Resources

2.3. Overview of the Engagement Process

2.4. Required Deliverables

2.5. Staffing

3. ADMINISTRATIVE PROPOSAL

3.1. Document Submission Checklist and Attestation (Attachment 1)

3.2. Ownership of Work Product

3.3. Non-Collusive Bidding Certification (Attachment 5)

3.4. Vendor Responsibility Questionnaire (Attachment 7)

3.5. Procurement Lobbying Requirements (Attachment 10)

3.6. Diversity Requirements and Equal Employment Opportunities for Minorities and Women20

3.7. NYS Service-Disabled Veteran-Owned Businesses

3.8. Encouraging the Use of New York Subcontractors and Suppliers (Attachment 4) and New York

State Business Usage Form (Attachment 4A)

3.9. Consultant Disclosure Legislation (Attachments 8 & 8A)

3.10. Conflicts of Interest (Attachment 9)

3.11. Sexual Harassment Prevention Policy Certification (Attachment 14)

3.12. Executive Order 177 Anti-Discrimination Certification (Attachment 15)

3.13. Tax Law Section 5-A

3.14. Executive Order No. 16 Prohibiting State Agencies and Authorities from Contracting with

Businesses Conducting Business in Russia (Attachment 16)

3.15. Gender-Based Policy and the Workplace Certification (Attachment 17)

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3.16. Vendor Identification Number

3.17. Subcontractors

4. TECHNICAL PROPOSAL— 70 PERCENT

4.1. Overview of the Bidder 10 points

4.2. State Government Experience 15 Points

4.3. Cost Reporting Audit Experience 15 Points

4.4. Other Audit Expertise Related to Medicaid Service Delivery Systems 10 points

4.5. Experience of Assigned Staff 15 points

4.6. Timeline and Audit Approach 20 points

4.6.6. Communication Methods

4.7. Quality Assurance Practices 15 points

5. COST PROPOSAL — 30 PERCENT

5.1. Cost Evaluation

6. INSURANCE REQUIREMENTS

6.1. Proof of Workers’ Compensation Coverage

6.2. Proof of Disability Benefits Coverage

6.3. Additional Insurance Requirements

7. PROPOSAL SUBMISSION REQUIREMENTS

7.1. Specific Requirements

7.2. Required Submission Documents

7.3. Late Submissions

7.4. Proposal Redactions - Freedom of Information Law / Trade Secrets

7.5. Packaging of Proposal

7.6. Building Access Procedures for Hand Deliveries

8. AWARD

8.1. Method of Award

8.2. Administrative Evaluation (Pass/Fail)

8.3. Technical Evaluation (70 percent)

8.4. Cost Evaluation (30 percent)

8.5. Final Composite Score

8.6. Notification of Award

8.7. Form of Contractual Agreement

8.8. Debriefing

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8.9. Bid Protest Policy

9. OPWDD RESERVED RIGHTS

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1. INTRODUCTION

1.1. Issuing Office

The New York State Office for People With Developmental Disabilities (OPWDD) is the New York State (NYS) executive agency responsible for the provision, regulation, and oversight of services to NYS people with developmental disabilities. Per Mental Hygiene Law § 1.03 (22), people served by OPWDD have a documented history of diagnoses that may include, but are not limited to, intellectual disabilities, cerebral palsy, epilepsy, neurological impairments, and autism spectrum disorders. (https://opwdd.ny.gov/eligibility)

OPWDD provides services and supports directly and through a network of approximately 500 nonprofit service-providing agencies, with about 80% of services provided by the private nonprofits and 20% provided by state-run services. OPWDD also provides residential support, day and employment services for approximately 43,000 people with developmental disabilities throughout New York State. People receiving OPWDD services reside in residential homes, group homes, and supported apartments, and development centers. OPWDD operates approximately

1,250 programs statewide. These programs are supported by 13 regionally located district offices.

1.2. Purpose

OPWDD issues this Request for Proposal (RFP) for the Annual Certification of OPWDD’s Consolidated Fiscal

Report (CFR) with the intent to award one contract. OPWDD is seeking competitive proposals from Certified Public

Accounting Firms registered in NYS to conduct an annual examination of OPWDD’s CFR and render an opinion on the reported costs regarding reasonableness, compliance with GAAP, and compliance with the cost principals described in the Medicare Provider Reimbursement Manual (Publication-15). It is anticipated this RFP will result in one (1) five-year contract.

This RFP, all exhibits and solicitation documents will be posted on the NYS Contract Reporter (NYSCR) website at https://www.nyscr.ny.gov/, as required by Economic Development Law 4-C, titled “The Procurement Opportunities

Newsletter.” The opportunity is also announced on the NYS OPWDD Procurement Opportunities webpage at https://opwdd.ny.gov/procurement-opportunities.

1.3. Calendar of Events

RFP Release Date ...................................................................................................................... September 17, 2026

Deadline for Submission of Questions ........................................................................................ September 28, 2026

Issuance of Responses to Questions .............................................................................................. October 12, 2026

Mandatory Notice of Intent to Bid………………………………………………………………………. October 19, 2026

Proposal Due Date ................................................................................................. November 02, 2026, by 4:00 PM

Anticipated Notification of Tentative Award ................................................................................ December 04, 2026

Anticipated Contract Start Date ..................................................................................................... November 1, 2027

NOTE: The above dates are tentative and subject to change at OPWDD’s sole discretion.

1.4. Restricted Period

1.4.1. Prohibitions on Procurement Lobbying

Pursuant to State Finance Law (SFL) §§ 139-j and 139-k, this Solicitation includes and imposes certain restrictions on communications between OPWDD and Bidders during the procurement process. The restricted period begins at the moment of the earliest posting, on a governmental entity’s website, in a newspaper of general circulation, or in the procurement opportunities newsletter, of intent to solicit offers or bids, and it ends only after final award and approval of the Contract by OPWDD and, if applicable, the Office of the State Comptroller (OSC). Throughout this restricted period, a Bidder is restricted from making contacts to staff other than those so designated, unless it is a contact that is included among certain statutory exceptions set forth in SFL § 139-j(3)(a). Designated staff, as https://opwdd.ny.gov/eligibility https://www.nyscr.ny.gov/ https://opwdd.ny.gov/procurement-opportunities

RFP OPD-2026-19 6 of 37 Annual Certification of OPWDD’s CFR of the date hereof, are identified below. OPWDD employees are required to obtain certain information when contacted during the restricted period and to make a determination of the responsibility of the Bidder pursuant to

SFL §§ 139-j and 139-k. Certain findings of non-responsibility can result in rejection for Contract award. In the event of two such findings within a four-year period, the Bidder is debarred from obtaining governmental procurement contracts for four years. Further information about these requirements can be found on the Office of

General Services website at https://ogs.ny.gov/acpl/.

1.4.2. Designated Contacts

Pursuant to SFL § 139-j(3)(a), OPWDD identifies the following allowable contacts for communications related to the submission of questions, letters of intent to bid, proposals, and requests for debriefings.

Primary Contacts Allison Parent / Graciela Martin Contract Management Unit NYS Office for People With Developmental Disabilities 44 Holland Ave, 5th Floor Albany, NY 12229 Procurement@opwdd.ny.gov

Secondary Contacts Shannon Plasencia / Marc Kleinhenz Contract Management Unit NYS Office for People With Developmental Disabilities 44 Holland Ave, 5th Floor Albany, NY 12229 Procurement@opwdd.ny.gov

1.4.3. Prebid Activities

1.4.3.1. Questions and Answers

Questions from Bidders regarding this RFP must be received by OPWDD in accordance with the Deadline for

Submission of Questions included in the Calendar of Events, Section 1.3 of this RFP. All questions must be submitted via electronic mail to the designated contact(s) at Procurement@opwdd.ny.gov as stipulated in

Section 1.4.2 of this RFP.

1.4.3.1.1. Each question must, to the degree possible, cite the specific RFP Section to which it refers. OPWDD reserves the right not to answer questions that are not directly related to this RFP.

1.4.3.1.2. Bidders are cautioned that any question or inquiry regarding the RFP must be written in generic terms and must not contain pricing information. The inclusion of specific information about a Bidder’s Cost

Proposal in an inquiry may result in the Bidder’s disqualification.

1.4.3.1.3. Bidders must identify, during the question-and-answer period, any terms and conditions in the RFP that would prohibit a Bidder from submitting a proposal. This process may not be used to negotiate material changes to the terms and conditions set forth in the RFP; any such changes will not be accepted by

OPWDD. If a Bidder discovers any ambiguity, conflict, discrepancy, omission, or other error in the RFP, the Bidder shall immediately notify OPWDD of such error(s) in writing to the designated contact(s) identified in Section 1.4.2 of this RFP. If, prior to the proposal due date as specified in Section 1.3 of this

RFP, a Bidder fails to notify OPWDD of a known error or an error that reasonably should have been known, the Bidder shall assume the risk of proposing. If awarded the contract, the Bidder shall not be entitled to additional compensation by reason of the error or its correction. Prior to the proposal due date, any clarifications or modifications deemed necessary by OPWDD will be posted to the NYSCR website provided in Section 1.2 of this RFP.

1.4.3.1.4. Any change to language, terms, or requirements within the RFP, including all associated attachments, appendices, and exhibits, that is proposed by a Bidder after the question-and-answer period has ended will not be considered by OPWDD, as any such change would not have been offered to all potential

Bidders.

https://ogs.ny.gov/acpl/ mailto:Procurement@opwdd.ny.gov mailto:Procurement@opwdd.ny.gov mailto:Procurement@opwdd.ny.gov

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1.4.3.2. Mandatory Notice of Intent to Bid (Attachment 19)

Vendors intending to submit a proposal in response to this RFP must submit Attachment 19 (found in the Library of Attachments) to the Designated Contacts identified in Section 1.4.2. of this RFP.

The notice of intent to bid must provide the current mailing address, email address and telephone number for the person who will be the Bidder’s designated point of contact throughout the duration of this RFP. Bidders must notify OPWDD of all changes related to the point of contact provided in the notice of intent. OPWDD is not responsible for any miscommunications that occur throughout this RFP process because of Bidder’s failure to provide notification of changes in the point of contact information.

A notice of intent is required for OPWDD to consider a proposal. However, submitting an intent to bid does not bind a vendor to submit a proposal

1.5. Announcements and Amendments to the RFP

OPWDD will utilize the NYSCR for the purpose of disseminating information relating to this procurement. OPWDD will post its official answers to Bidder questions and any changes to the RFP resulting from such questions on this site on or before the Issuance of Response to Questions date as indicated in the Calendar of Events. Bidders are encouraged to monitor this site: https://www.nyscr.ny.gov/.

OPWDD’s responses to questions and notification of amendments to the RFP, if any, will be in the form of a formal addendum that will be annexed to and become part of this RFP and any ensuing contract.

1.6. Term of Contract

OPWDD intends to award one contract for the annual certification of OPWDD’s Consolidated Fiscal Report (CFR) to one responsive and responsible Bidder as a result of this RFP. The term of the Contract is anticipated to be five years, with an anticipated start date of November 1, 2027. In accordance with SFL § 41, the State shall have no liability under this contract to the Bidder or to anyone else beyond funds appropriated and available for this contract.

Continued contract approval beyond October 31, 2032 will be at the sole discretion of OPWDD and the OSC, until such time as a replacement contract can be put in place. If this contract is extended, all original terms and conditions will remain the same.

1.7. Independence Provisions

1.7.1. Bidders interested in bidding on this RFP must provide an affirmation that they will be able to perform the duties as outlined in the scope of work in accordance with the independence provisions contained in Generally

Accepted Government Auditing Standards (GAGAS) Chapter 3.

1.7.2. The Awarded Bidder will ensure each staff assigned to an audit completes an independence statement at the onset of each new audit engagement.

1.7.3. The engagement for this RFP is required to be conducted by an independent CPA firm. The Bidder awarded for this RFP is required to meet the GAGAS independence standard (see Section 1.7.1). The awarded Bidder will warrant their compliance with the independence standard and indemnify OPWDD against any third-party challenges to the awarded Bidder’s independence without limitation. If found to be in violation of the independence requirement, the awarded Bidder’s liability includes OPWDD legal fees incurred related to defense against third party claims. The contract will also be subject to termination under the termination provisions as stated in Section

3 of the contract boilerplate released with this RFP.

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1.8. Conflicts of Interest

Throughout the procurement process, Bidders must identify and bring to the attention of OPWDD actual or apparent conflicts of interest as knowledge of such conflicts arise, as follows:

a. Disclose any existing or contemplated relationship with any other person or entity, including relationships with any member, shareholders of 5% or more, parent, subsidiary, or affiliated firm, which would constitute an actual or potential conflict of interest or appearance of impropriety, relating to other clients/customers of the Bidder or former officers and employees of the Agencies and their Affiliates, in connection with the bidder’s rendering services enumerated in this RFP. If a conflict does or might exist, please describe how your firm would eliminate or prevent

it. Indicate what procedures will be followed to detect, notify the Agencies of, and resolve any such conflicts.

b. The Bidder must disclose whether it, or any of its members, shareholders of 5% or more, parents, affiliates, or subsidiaries, have been the subject of any investigation or disciplinary action by the New York State Joint

Commission on Public Ethics or its predecessor State entities (collectively, “JCOPE”), and if so, a brief description must be included indicating how any matter before JCOPE was resolved or whether it remains unresolved.

Bidders must disclose actual and potential conflicts of interest in the Administrative Proposal (see Section 3.10 below for additional information).

If an organization or person is presently performing consulting services for OPWDD, or has provided consulting services for OPWDD, it may still submit a proposal in response to this RFP but must also satisfy these conflict-of-interest provisions.

Any Bidder awarded a contract under this RFP will have an on-going obligation to inform OPWDD of any actual or apparent conflicts of interest.

After the RFP is awarded, if the awarded Bidder utilizes any person(s) or entities that violate these conflict-of-interest provisions, the Bidder is subject to termination and reimbursement of contract funding to OPWDD.

1.9. Bidder Minimum Qualifications

Any Bidder submitting a proposal in response to this RFP must meet the minimum qualifications listed below.

Information demonstrating these qualifications must be incorporated into the Bidder’s Administrative Proposal.

These qualifications are Pass/Fail; Bidders failing to meet the minimum qualifications as indicated below will result in a Bidder’s ineligibility for the proposal evaluation process.

1.9.1. Bidder must be a public accounting firm that employs and/or can provide Certified Public Accountants (CPAs) licensed in New York State.

1.9.2. Bidder must be able to perform the duties as outlined in the scope of work (see Section 2) in accordance with the independence provisions contained in Generally Accepted Government Auditing Standards (GAGAS) Chapter 3

(See Section 1.7).

1.9.3. A minimum of five years of professional auditing experience

1.9.4. Bidder must not currently hold, nor have a pending contract with OPWDD for, any of the following services.

• Auditing of Medicaid Service Documentation; or

• Ad hoc accounting, auditing, or consulting services.

In addition, the successful Bidder will not be eligible to bid on future procurement opportunities for these services for the duration of awarded contract.

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2. SCOPE OF WORK

OPWDD is requesting proposals from Certified Public Accounting firms to provide certification of OPWDD’s annual

Consolidated Fiscal Report (CFR). OPWDD’s CFR is an agency-wide cost report that includes costs incurred and revenues received by OPWDD to provide State Operated services to individuals with developmental and intellectual disabilities as well as costs incurred, and revenues received to provide administrative oversight of OPWDD’s Medicaid service delivery system. OPWDD’s 2024-25 Certified Consolidated Fiscal Report is available for review upon request for vendors who submit a notice of intent to bid (see Section 1.4.3.2.).

The awarded Bidder must be a Certified Public Accounting Firm licensed to practice in the state of New York and will be responsible for the certification of OPWDD’s annual CFR. The Bidder must dedicate enough resources to complete the annual CFR Certification engagement no later than July 31 or 3 months after receipt of the draft cost finding of the year following the end of the reporting period.

2.1. Purpose

The certified CFR is utilized for the following purposes:

2.1.1. State Operated Medicaid Service Rates - A significant portion of the services provided through State Operations are eligible for federal financial participation (FFP) under the Medicaid program. The NYS Department of Health as the single State Medicaid agency, utilizes OPWDD’s annual certified CFR to establish the Medicaid rates used to claim federal reimbursement for State provided services to Medicaid eligible recipients.

2.1.2. Administrative Oversight of the Service Delivery System – when preparing the CFR, costs incurred by OPWDD to oversee OPWDD’s entire service delivery system which includes the costs reimbursed through the quarterly

Medicaid Administration claims are segregated from the cost information used to develop state provided Medicaid

State Plan Service rates and HCBS Waiver Service rates to provide assurance that these costs are not being double-funded.

2.1.3. Justification that allocation of costs is in accordance with Medicare Provider Reimbursement Manual

(Publication 15) - the accumulation, allocation and reporting of costs on the certified CFR is performed using the methods described in OPWDD’s Cost Allocation Plan. OPWDD has developed and updates its Cost Allocation

Plan using the principles contained in the Provider Reimbursement Manual (PRM-15) issued by the Centers for

Medicare & Medicaid Services. When preparing the CFR, non-Medicaid costs are segregated from Medicaid program costs to provide assurance that the appropriate indirect cost allocations are distributed to non-Medicaid programs and to provide assurance that non-Medicaid costs are not included in Medicaid State Plan Service rates and HCBS Waiver rates or in quarterly Medicaid administration claims reimbursed through the OPWDD Cost

Allocation Plan.

2.1.4. OPWDD Management Tool – the certified CFR provides management with an accurate understanding of the full cost of services provided by each district Office; and enables management to identify potential operational economies in addition to enabling OPWDD management to assess Statewide operations in order to enhance statewide efficiencies in service provision.

2.2. Resources

2.2.1 New York State Consolidated Fiscal Reporting and Claiming Manual – contains instructions to be followed when preparing the Consolidated Fiscal Report (CFR). The most recent version can be accessed at this site: https://www.oms.nysed.gov/rsu/Manuals_Forms/Manuals/CFRManual/home.html

The Awarded Bidder will perform a Compliance Examination to certify that the OPWDD’s annual cost report, the

CFR, complies with the cost principles contained in the Provider Reimbursement Manual Publication 15 and that the annual cost report was prepared in accordance with the CFR Manual with modifications agreed to by Centers for Medicare & Medicaid Services (CMS) and OPWDD as follows:

https://www.oms.nysed.gov/rsu/Manuals_Forms/Manuals/CFRManual/home.html

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2.2.1.1 Section 3.0 Reporting Periods – NYC = July1 – June 30; all others = January 1 –December 31

Modification: OPWDD prepares the CFR using a 4/1 – 3/31 reporting period.

2.2.1.2 Section 4.0: Due Dates - OASAS, OPWDD, DOH and OCFS certified and/or funded programs must submit their completed CFR to the applicable funding State Agency– no later than the first day of the sixth month following the end of the reporting period.

Modification: OPWDD is required to submit its certified cost report within 18 months of the end of each rate period (i.e., within 18 months after the close of the OPWDD fiscal year) per the NY Waiver agreement

NY.0238.R07.01.

2.2.1.3 Section 5.0: Software – All CFR state agencies require CFRs to be completed using approved NYS CFRS software available from the NYS Office of Mental Health.

Modification: OPWDD will utilize Microsoft Excel in lieu of the CFRS software to prepare its CFR.

2.2.1.4 Section 6.0: Financial Statements and Federal Audit Requirements – OPWDD does not require submission of financial statements for counties, cities, towns or villages.

Modification: Since OPWDD is a governmental entity, OPWDD would be exempt from submitting the State of New

York’s Comprehensive Financial Report as part of their CFR submission. The State of New York’s Comprehensive

Financial Report is available on OSC’s website. It does not include supplemental information by state agency;

therefore, it would not be possible to reconcile OPWDDs CFR to the State of New York’s Comprehensive Financial

Report.

2.2.1.5 Section 8.0: General Instructions – Fiscal information in the CFR is reported on a program type or program/site specific basis. OPWDD program code descriptions in Appendix G of the CFR Manual specify if the program is reported on a program/site basis or a program type basis.

Modification: Per the NY Waiver NY0238.R07.01 each State Operated waiver service is required to be reported using a separate column of the CFR. OPWDD is also required to report each Developmental Center; each State

Operated ICF/ID; and each Article 16 main clinic in separate final cost centers by operating certificate on its cost report.

2.2.1.6 Section 11.0: CFR-i/iiA Accountant’s Report – County Local Government Units (LGUs), municipalities, and other governmental entities completing a Full CFR may submit any one of the following to meet the certification requirement: Compliance Review (Appendix CC of the CFR Manual); Schedule CFR-ii; Schedule CFR-iiA.

Modification: In lieu of CFR-ii/iiA, OPWDD is required to submit an Audit Organization’s Report (as referenced in

NY Waiver – NY.0238.R07.01 Addendum A.2) to meet the CFR certification requirement.

2.2.1.7 Section 14.0: CFR-2 Agency Fiscal Summary

Modification: OPWDD reports all Medicaid Programs on CFR-1 and CFR-4; and reports the aggregate of all

Medicaid funded costs under CFR-2 Column 4 OPWDD Totals. OPWDD reports the aggregate of all non-Medicaid funded costs under CFR-2 Column 7 Other Programs Totals.

Since the Comprehensive Financial Report prepared by OSC and certified by an independent auditor is not prepared on a State Agency basis, the OPWDD CFR cannot be reconciled back to the OPWDD of New York’s

Comprehensive Financial Report. OPWDD will prepare a reconciliation of the total expenses reported on the

OPWDD CFR to OPWDDs total cash spending recorded in the Statewide Financial System (SFS) as reported on

Open Book NY for the cost reporting period.

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2.2.1.8 Section 16.0: CFR-4 Personal Services

Modification: OPWDD will separately report employee salaries directly charged to final cost centers; and employee’s salaries included in each cost pool (Allocation Group) by NYS Civil Service title on CFR-4. The CFR-

4 data will be reported as such so that it can be reconciled to State Operated Medicaid Service rate sheets.

2.2.1.9 Section 40.0: Appendix G - OPWDD Program Types, Definitions and Codes

Modification: OPWDD State Operated Developmental Centers, State Operated ICF/DDs and each Article 16 main clinic are required to be reported by operating certificate on the OPWDD CFR.

OPWDD will use the Final Cost Center (Group Numbers) referenced in its approved Cost Allocation Plan as the basis for reporting programs/services unique to OPWDD on its cost report.

2.2.1.10 Section 42.0 and 43.0: Appendix I -Agency Administration and Appendix J - Allocating Expenses for

Shared Programs/Sites

Modification: OPWDDs Cost Allocation Plan (submitted to the Department of Health) will be used in lieu of these

Sections.

2.2.1.11 Section 57.0: Appendix X – Adjustments to Reported Costs

Modification: PRM-15 and CFR 200 will be followed for OPWDD State Operations. State Operated programs are governed by the Medicaid State Plan and the Waiver Agreements.

2.2.2 Medicare Provider Reimbursement Manual (Publication-15) - the cost principles described in

Publication 15 issued by CMS are required to be used when preparing the annual CFR.

2.2.3 NY State Plan Amendment (SPA) 14-03A - State operated Developmental Center and State operated ICF/ID

Medicaid service rates will be computed and reconciled to the final reported allowable costs as described in SPA

14-03A.

2.2.4 NY Waiver – NY.0238.R07.01 - As stipulated in the NY Waiver – NY.0238.R07.01; Addendum A –

Supplemental Rate Language, the federal Centers for Medicare & Medicaid Services (CMS) requires OPWDD to annually report costs using a complete Consolidated Fiscal Report (CFR), which will be used to compute Medicaid service rates for Home & Community Based Service (HCBS) Waiver services as well as for cost reconciliations of waiver services which are required to be submitted to CMS along with the certified CFR within 18 months of the end of each rate period. The CFR annual cost report is required to be either audited by an Independent Certified

Public Accountant (CPA), or OPWDD may use the Compliance Examination identified in the New York State

Consolidated Fiscal Reporting and Claiming Manual, in lieu of an audit; and the CPA shall render an opinion on the reported costs regarding reasonableness, compliance with GAAP, and that the CFR reported costs were determined in accordance with the cost principles described in the Medicare Provider Reimbursement Manual

(Publication-15).

2.2.5 Addendum A.1 Independent Accountant’s Compliance Examination Guidance - The NY Waiver agreement includes Addendum A.1 for use by the independent accounting firm when examining OPWDD’s

Consolidated Fiscal Report, posted with this RFP as Exhibit I: Independent Accountant’s Compliance

Examination Guidance.

2.2.6 Addendum A.2 Audit Organization’s Report - The NY Waiver agreement includes Addendum A.2 for use by the independent accounting firm as a sample report of an audit organization’s examination of a CFR prepared by OPWDD. The sample Audit Organization’s Report provided in Exhibit II of this RFP has been determined acceptable for CMS purposes; material omissions in an independent CPA’s actual report may result in CMS rejecting the report.

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2.3. Overview of the Engagement Process

2.3.1. Opening Conference:

An Opening Conference will be held with the awarded Bidder and OPWDD Central Office management at the beginning of each annual CFR Certification engagement prior to commencing any field work.

2.3.2. Sample Determination

A representative sample of OPWDD District Offices must be used, in accordance with professional standards, to perform site visits. It is expected that prioritization of risks, cluster sampling techniques, etc. will be used by the awarded Bidder in determining how many Districts to visit, to enhance economy/efficiency of audit. This should result in limiting annual site visits to a representative sample of District Offices rather than visiting all 13 Districts during each annual engagement over the 5-year contract period.

2.3.3. Detailed List Creation

A detailed listing of information being requested, including supporting documentation needed for sample testing, must be provided ahead of time, giving Districts and/or Central Office ample time to pull the data for review by the awarded Bidder:

2.3.3.1. Coordination of Sample Requests: The awarded Bidder will be responsible for coordinating with Central Office staff the distribution of sample requests to the District Offices. The format and manner of the distribution will be subject to approval by OPWDD prior to distribution. Details provided in the documentation request must be sufficient enough for the District Office to locate the documentation based on multiple data points; in no case will the awarded Bidder be required to provide details that were not included in the source data from OPWDD.

2.3.3.2. Justification of Inefficient Requests: All outstanding items from sample documentation requests will be noted to clearly indicate if a response was received or if the response received was insufficient. If a response received was insufficient, an explanation will be provided to OPWDD as to why the documentation was found to be insufficient so that OPWDD can work with the awarded Bidder to identify alternative acceptable sources of documentation.

2.3.4. Establishment of Portal

The awarded Bidder will establish a secure portal for sharing information to allow for electronic documentation transmittal to avoid HIPAA and personal employee information breaches.

2.3.4.1. The awarded Bidder must provide audit documentation to OPWDD through a secure portal maintained by the awarded Bidder to allow for electronic documentation transmittal to avoid HIPAA breaches. Personal employee information will be made available on-site or via secure access to OPWDD’s file share. OPWDD will provide documentation to the awarded Bidder through a SharePoint site and laptop computers that can access select

OPWDD network files.

2.3.4.2. OPWDD will provide view only access to OPWDD personnel information for the purpose of verifying information within the scope of the engagement. The awarded Bidder agrees not to copy, download, or store electronic or paper, confidential personnel information encountered during the engagement.

2.3.5. Information Security

2.3.5.1. Data Categorization

The selected Bidder must strictly adhere to all applicable NYS OPWDD and NYS ITS policies as they relate to information classification. The OPWDD Chief Information Security Officer will provide the necessary information classification framework. The selected Bidder will be responsible for designing and implementing security controls that not only align with and address the specific requirements and outcomes identified through the information classification process but must also ensure full compliance with all applicable regulatory and

RFP OPD-2026-19 13 of 37 Annual Certification of OPWDD’s CFR statutory standards. The selected Bidder must ensure that all controls meet or exceed the requirements set forth by the CISO and adhere to relevant laws, regulations, and best practices to maintain data security, integrity, and confidentiality.

2.3.5.2. Data Ownership

NYS OPWDD retains exclusive ownership of all data provided to the selected Bidder through the duration of the engagement, and any future engagements. This includes but is not limited to data that has been input, transmitted, or stored. This ownership extends to all rights, titles, and interests in the data, including but not limited to any intellectual property or derivative works created from it.

2.3.5.3. Data Location

All data must always remain within the continental United States (CONUS). Under no circumstances shall data be stored, transmitted, or accessed from locations outside of CONUS. Additionally, the selected Bidder is prohibited from connecting to the system from any location outside of CONUS, ensuring that all operations, support, programming, data migration, conversion, management activities, and other operations are conducted exclusively within CONUS boundaries. The Bidder also must conduct all labor within the CONUS boundaries.

The Bidder must implement and maintain appropriate controls to enforce this restriction and provide assurances of compliance throughout the duration of the agreement.

2.3.5.4. Encryption

The selected Bidder must strictly adhere to all applicable NYS OPWDD and NYS ITS policies, standards, and requirements as they relate to encryption, specifically including the NYS-S14-007 Encryption Standard. This includes ensuring full compliance with all applicable regulatory requirements. The selected Bidder is expected to demonstrate adherence through periodic audits, reporting, and certification processes as required. The NYS-

S14-007 Encryption Standard can be seen here: https://its.ny.gov/system/files/documents/2025/06/nys-s14-

007-encryption.pdf.

2.3.6. Exit Conference

An Exit Conference will be held with the awarded Bidder and OPWDD Central Office management prior to the issuance of the Final Accountant’s Report and Management Letter so that draft findings can be presented; and so that time can be allotted for preparation of OPWDD comments for consideration in Final Accountant’s Report and Final Management Letter (see Sections 2.4.4 and 2.4.5).

2.4. Required Deliverables

2.4.1. Deliverables to be provided PRIOR TO the Opening Conference:

Awarded Bidder:

a) Drafted CFR Certification Engagement Letter(s) outlining the objectives and scope of the review, clearly defining auditor and management responsibilities, communicating the limitations of the services provided and detailing the expected duration should be forwarded to Central Office management prior to Opening Conference for review.

Final signed letters to be delivered at Opening Conference.

b) Compliance Examination Plan/Agreed Upon Procedure Plan – should include a macro-level scope and methodology; description of data systems, records critical to auditor’s work; description of survey results and prioritization of risks; cluster sampling techniques being used to enhance economy/efficiency of audit; tests of controls to be performed; an audit plan timeline (by phase) with target completion date for each phase, description of experience for (assigned) staff.

c) Secure Portal established, and access granted to Awarded Bidder contacts for sharing information requested;

organized by District and topic.

https://its.ny.gov/system/files/documents/2025/06/nys-s14-007-encryption.pdf https://its.ny.gov/system/files/documents/2025/06/nys-s14-007-encryption.pdf

RFP OPD-2026-19 14 of 37 Annual Certification of OPWDD’s CFR

OPWDD:

a) New York State Education Department (NYSED) website link to Calendar CFR Manual; CMS website link to

Medicare Provider Reimbursement Manual Publication 15; NYS HCBS Waiver Agreement (to include Addendum

A; A.1 and A.2)—currently approved as NY.0238.R07.01 or any future approved amendments (provided as

Exhibit I: Independent Accountant’s Compliance Examination Guidance and Exhibit II: Audit Organization’s

Report); NY State Plan Amendment– currently approved as SPA 14-03A or any future approved amendments.

b) Provide the source expenditure data sets for the cost period for sampling including but not limited to: Statewide

Financial System (SFS); Bonded Capital (DASNY); Debt Service (DASNY); Hard $ Checkruns (DASNY); EBT

Transactions; P-Card transactions; Personal Service (Financial Management System (FMS)).

c) In addition, provide additional source expenditure datasets including, but not limited to: Statewide Cost Allocation

Plans; Memo Bills; Provider Tax Assessments; Salary Withholdings, and Compensated Absences.

d) Provide units of services, revenues, and certified capacity source files.

e) Coding maps developed and used by OPWDD to assign CFR Line Numbers and Final Cost Centers (Group

Numbers), or Allocation Group Numbers based on attributes in the transactional cost data.

f) OPWDD issued laptops for access to secure file shares.

2.4.2. Deliverables to be provided AT Opening Conference:

Awarded Bidder:

a) Annual CFR Certification Work Plan – listing specific work activities; staff assigned; targeted deadlines established for the various work activities required to be performed throughout the CFR Certification engagement.

OPWDD:

a) List of contacts at District Offices; Central Office; and the Institute of Basic Research (IBR).

2.4.3. Deliverables to be provided PERIODICALLY THROUGHOUT Engagement:

Awarded Bidder:

a) Monthly findings report: details of potential findings must be provided to OPWDD management as soon as they are identified.

b) Bi-weekly status report: a report on each activity on work plan (Not Started; In Progress, Completed); brief progress notes must be included; targeted deadlines should be updated if necessary.

c) Provision and Maintenance of Ongoing Tasks Requested from OPWDD (via tracking tool): Provide/maintain on-going list of items requested from District/Central Office/IBR via tracking tool. This will include Requestor

(Awarded Bidder staff name); Recipient (OPWDD staff name); date requested; date response received.

d) Monthly Summary Report: the Awarded Bidder will outline outstanding issues to be provided to OPWDD management.

e) Revisions to the Certification Work Plan: The Awarded Bidder will provide a report outlining revisions made to the work plan if necessary, with evidence that such changes were reported to OPWDD management as amended. If no changes were made, the report will state such.

OPWDD:

a) Draft Cost Finding

b) Draft CFR Schedules

c) Updates on status of federal approval of any amendments to the OPWDD Cost Allocation Plan that impact the annual CFR reporting period being certified

RFP OPD-2026-19 15 of 37 Annual Certification of OPWDD’s CFR

2.4.4. Deliverables to be provided PRIOR TO or AT Exit Conference

Awarded Bidder:

a) Draft Management Letter: for review and comment by OPWDD Division Managers

b) Draft Independent Accountant’s Report: this will also contain an Agreed Upon Procedure (Revenue) for review and comment by OPWDD Division Managers. A template for this report is provided as Exhibit II.

c) Draft Report for the Commissioner to communicate any significant findings: for review and comment by OPWDD

Division Managers.

OPWDD

a) Management response to draft management letter and draft independent audit report.

2.4.5. Deliverables to be provided POST Exit Conference

Awarded Bidder:

a) The Final Management Letter and Final Independent Accountant’s Report is to be issued no later than July 31st;

or no later than 3 months after the awarded Bidder’s receipt of the draft Cost Finding Work Paper from OPWDD if the draft Cost Finding Work Paper is not provided prior to May 1st.

2.4.6. Schedule of Deliverables with completion timeframe

Description of Deliverables

Required for Payment

Expected Completion

Drafted CFR Certification Engagement

Letter(s)

Completed prior to the Opening

Conference

Compliance Examination/Agreed

Upon Procedure Plan

Completed prior to the Opening

Conference

Establishment of Secure Portal Completed prior to the Opening

Conference

Annual CFR Certification Work Plan Completed at opening conference

Monthly Findings Report Due the last business day of the month

Bi-Weekly Status Report Bi-Weekly on Fridays

Provision and Maintenance of

Ongoing Tasks Requested from

OPWDD

Weekly updates every Friday

Monthly summary Report Due the last business day of the month

Revisions to the Certification Work

Plan

Due the last business day of the month

Draft Management Letter At least two weeks prior to exit conference

RFP OPD-2026-19 16 of 37 Annual Certification of OPWDD’s CFR

Draft Independent Audit

Report/Agreed Upon Procedure

(Revenue)

At least two weeks prior to exit conference

Draft Report for the Commissioner At or by exit conference

Final Management Letter and Final

Accountant’s Report

Due by July 31st annually

2.5. Staffing

2.5.1. Staffing Changes

2.5.1.1. OPWDD shall be given two weeks’ notice of any change to key personnel as defined in Section 2.5.3 of this

RFP.

2.5.1.2. Any staff represented as key personnel are anticipated to fulfill all deliverables and tasks throughout the entire life of the contract. If staffing changes are required for any of the key personnel on the project prior to the completion of his or her assignment period, the awarded Bidder shall first, before proceeding with such removal, consult with and seek the approval of OPWDD. If, after said consultation, it is mutually agreed that such removal shall take place, the awarded Bidder shall provide the resumes of up to three potential replacements with similar or better qualifications for OPWDD’s review and approval within three business days, or as otherwise agreed to by OPWDD.

2.5.1.3. OPWDD shall also have the right in its reasonable discretion to request removal of an awarded Bidder staff member at any time, and the awarded Bidder must provide the resumes of up to three potential replacements with similar or better qualifications for OPWDD’s review and approval within three business days, or as otherwise agreed to by OPWDD. Any associated cost will be borne by the awarded Bidder. As documentation to facilitate knowledge transfer is the sole responsibility of the awarded Bidder, the replacement staff will be provided at no cost during the knowledge transfer period.

2.5.1.4. Where awarded Bidder staff ceases work for reasons beyond the control of the awarded Bidder, the awarded

Bidder must immediately notify OPWDD and provide the resumes of up to three potential replacements with similar or better qualifications for OPWDD’s review and approval within three business days, or as otherwise agreed to by OPWDD. Reasons beyond the control of the Awarded Bidder shall be defined as:

• death of the awarded Bidder staff member;

• disability or illness;

• awarded Bidder staff member resigns his or her position;

• termination for cause by the awarded Bidder;

• military service; or

• any other reason deemed acceptable by OPWDD.

The provisions of this section do not preclude any awarded Bidder staff member from reasonable sick leave or annual leave.

2.5.2. Staffing Portfolio

2.5.2.1. Staffing and Organization Plan:

The awarded Bidder must provide OPWDD with a Staffing and Organization Plan, upon contract execution, depicting each component of the respective project, all cross-cutting functional units of the organization/project, numbers, and types of staff for each component/function, and identified lines of authority governing the interaction of staff, and relationships with subcontractors. The names of management personnel must be shown

RFP OPD-2026-19 17 of 37 Annual Certification of OPWDD’s CFR on the organization chart and display key personnel and other staffing titles, how the project staff will be organized, located across the state, and how communication will be handled between the main site and any remote sites. The plan must include the total number of staff for each function, outline sufficient numbers of staff in each role needed to support the scope and volume of this RFP, ratio for supervision, quality assurance and case management, and the designated full-time key personnel as defined in Section 2.5.3 of this RFP. The awarded Bidder will identify staff that support the project but are not dedicated full-time employees, and subcontractors if any, their respective roles, and job descriptions for all professional, managerial, and supervisory positions. Subcontractors must be pre-approved by OPWDD.

2.5.3. Engagement Staffing Requirements

Bidders must provide staff who possess the qualifications and can perform duties as defined in RFP Sections 1.9 and 2, Attachment 1: Attestation Checklist (Administrative Proposal), the Technical Proposal and the Cost Proposal. The engagement for this RFP is required to be conducted by an independent CPA firm. The awarded Bidder is required to meet the independence standard as defined under Generally Accepted Government Auditing Standards (GAGAS). The awarded Bidder will ensure each staff assigned to an audit completes an independence statement at the onset of each new audit engagement.

The awarded Bidder must be able to dedicate enough resources to complete the annual CFR Certification engagement no later than July 31 of the year following the end of the reporting period.

Bidders are instructed to utilize the following titles even if they are not consistent with the awarded Bidder’s existing titles:

2.5.3.1. Engagement Principal

The individual has ultimate authority over decisions made by senior managers, who work to set the strategic vision of the company. Five years, or more, of experience leading an auditing, accounting, financial management or consulting firm, is required. This role will have overall responsibility for the quality and delivery of the engagement and will ensure OPWDD continues to have access to the resources needed to complete an engagement. This individual must be a CPA.

2.5.3.2. Engagement Director

This individual will be responsible for logging, tracking and handling all communication between the Awarded Bidder and OPWDD. With exception of the Engagement Principal, all engagement titles will be required to communicate through the Engagement Director. The Engagement Director will be responsible for setting up meetings with appropriate OPWDD staff should engagement staff need to communicate with OPWDD staff. The Engagement Director will be allowed to appoint a temporary replacement should they become unavailable. The replacement will be expected to handle all communication as required of the Engagement Director.

2.5.3.3. Engagement Manager

This individual will be the day-to-day lead for engagement. They will directly manage the senior associates, direct company policy for assigned division and make important decisions on operations and finances.

2.5.3.4. Senior Associate

This individual assigns tasks to entry-level associates and oversees the day-to-day management of data collection, advanced-level research and client issues.

2.5.3.5. Associate

This individual will likely have a Bachelors’ Degree, with entry level (up to 3 years) auditing, accounting, or financial experience, and will be responsible for most of the administrative and research work within the firm.

2.5.3.6. Junior Associate

This individual will assist the senior associate to check the financial records of companies and make sure that they conform to business and accountancy regulations and ethics.

RFP OPD-2026-19 18 of 37 Annual Certification of OPWDD’s CFR

2.5.3.7. Independent CPA Firm:

2.5.3.7.1. The individual opining/signing the Final Accountant’s Report must be a CPA, as defined by the CFR

Manual:

2.5.3.7.1.1. Signature of Independent Accountant, Firm or Sole Practitioner: The signature of the independent certified public accountant, sole practitioner, partner of the CPA firm or CPA firm that audited and certified the CFR.

2.5.3.7.1.2. CPA Firm Registration Number: The 7-digit number assigned to the firm by the NYS Office of

Professions within the NYS Education Department. Sole proprietorships should enter the certified public accountant’s license number.

2.5.3.7.2. The Independent CPA firm must effectively communicate with OPWDD management throughout the CFR

Certification engagement. A tracking tool must be utilized for information requests as well as for deliverables identified during meetings to ensure all requests are received and responded to in a timely manner. Obstacles to attaining requested information as well as any delays impacting the delivery of the

Final Accountant Report by July 31 must be communicated to Central Office management as soon as possible.

3. ADMINISTRATIVE PROPOSAL

Bidder must be willing to enter into a contract in accordance with the terms of this RFP, inclusive of all appendices, exhibits, attachments, questions and answers, and any amendments or addenda.

3.1. Document Submission Checklist and Attestation (Attachment 1) Bidders must meet the minimum qualifications in Section 1.9. The Bidder must outline the specific experience that meets these qualifications in their Administrative Proposal.

The Bidder must complete and submit the required attestations, agreements, warranties, and certifications contained in Attachment 1 as part of the mandatory Administrative Proposal requirements.