QQ - ARMICS - 2026- Scope and Terms.pdf

Agency Risk Management and Internal Control Standards

(ARMICS)

Certificate of Liability Insurance: Shall be required upon award and before work is to begin.

Contractor’s License: A current copy shall be sent in with your bid if applicable.

Contact Person: Mae Jackson @ 804-807-2061

Work Location: Department of Juvenile Justice 600 E. Main Street, 14th Floor Richmond, VA 23219

Working Hours: Monday – Friday 9:00am – 5:00pm

Job Completion: September 2026

Invoice for Payment: (must be sent to) Department of Juvenile Justice Attn: Accounting Department 600 E. Main Street, 14th Floor Richmond, VA 23219

Close Date and Time: June 10, 2026 at 10:00am, EST Work To Be Completed By: Monday September 21, 2026

Scope of Work:

Awarded Contractor shall perform Internal Controls, the Agency Risk Management and Internal Control Standard’s (ARMICS) requirements and testing for Cash Receipts and Accounts Receivables, Fixed Assets (FAACS), Federal Grants Reporting, Comprehensive Annual Financial Report (CAFR) and EOY Reporting. Contractor shall follow up on Fixed Assets (FAACS) and Payroll processes. The Department of Juvenile Justice’s (DJJ) requirement is that ARMICS be complete with final report by September 21, 2026.

Contractor shall begin work by mid-July once fiscal year 26 has closed. The final close date for FY26 is July 16, 2026.

Below are the Department of Accounts’ standards and objectives for ARMICS:

I. STATEMENT OF NEEDS: The Virginia Department of Juvenile Justice is seeking Financial and Auditing services to implement requirements of the Comptroller of Virginia Directive 1-08, Agency

Risk Management and Internal Control Standards (ARMICS) and the minimum requirements listed in September 2015 Agency Risk Management and Internal Control Standards Self- Assessment guide and the CAPP Manual Topic 10305 Internal Controls updated July 2023. The Contractor selected preferably will be an individual or group with proven experience with the Commonwealth of Virginia ARMICS and a demonstrated knowledge of auditing, fiscal management, financial operations, and internal controls, or has proven experience in auditing for Sarbanes-Oxley compliance.

Specifications to provide the Department of Juvenile Justice with Internal Control documents and strategies to ensure compliance with ARMICS:

The Contractor shall propose a plan that complies with:

The Virginia Comptroller issued Directive 1-08, Agency Risk Management and Internal Control Standards, issued on May 12, 2008 https://www.doa.virginia.gov/reference.shtml#ARMICS. The directive requires all state agencies in Virginia to implement and assess annually their internal control systems in order to provide reasonable assurance of the integrity of all fiscal processes related to: the submission of transactions to the Commonwealth’s general ledger; submission of deliverables required by financial statement directives; compliance with laws and regulations; and stewardship over and safeguarding of the Commonwealth’s assets. This internal control assessment and documentation must be completed in accordance with the guidelines and timeframes published in the Commonwealth of Virginia’s Agency Risk Management and Internal Control Standards.

The objectives of the internal control directive are:

• Strategic – support for Virginia being recognized as the best-managed state in the nation through internal control best practices

• Operational – effective and efficient use of fiscal resources and other assets

• Reporting – integrity and reliability of financial reporting

• Compliance – compliance with applicable laws and regulations

• Stewardship – protection and conservation of assets

The contractor shall test for the following areas:

Accounts Payables, Account Receivables, Payroll, Fixed Assets, Leases, Month-end Close Reconciliations for Certifications, Cardinal Security, Federal Financial Reporting, Comprehensive Annual Financial Report (CAFR), End of Year Reporting, Budget, Small Purchase Charge Card, and Procurement Processes.

The contractor will be responsible for the following summarized internal control assessment and development components (detailed requirements are located at the following link https://www.doa.virginia.gov/reference.shtml#ARMICS

Component 1

1. Update and test the Agency Level Internal Control Assessment with Division Level Control for certification to the Commonwealth.

Documentation for the assessment must include:

a. Evaluate and update the design of DJJs internal controls across five components, plus Risk andEvaluation:

i. Control Environment

ii. Risk Assessment

iii. Control Activities

iv. Information and Communication

v. Monitoring

vi. Complete assessment in accordance with Directive 1-08.

b. Test the effectiveness of the agency-level controls and document the results of those tests.

The report for this state shall include a minimum of the following:

i. Identification of deficiencies and recommendations for improvement.

ii. Assurances of the adequate assessment of the effectiveness of the DJJ's internal controls in accordance with ARMICS standards issued by the Office of the Comptroller as applicable to the processes at the Department of Juvenile Justice.

Component 2

1. Update and test the existing agency Process and Transaction-Level Internal Control Assessment (all agency fund sources) for certification to the Commonwealth.

Examine the supporting documentation from prior ARMICS implementation and complete the following:

a. Determine if any organizational changes occurred to require a reevaluation of the fiscal processes determined to be significant for the Department of Juvenile Justice. All new significant fiscal processes shall be documented, controls evaluated, and tested.

b. Determine if there are any changes to areas identified as significant fiscal processes. Reevaluate the controls for those processes experiencing change and test the controls to ensure they function as intended.

c. For all significant fiscal processes that have not changed since the prior year, retest a sample of the controls to ensure that they are still working.

The contractor will coordinate the transaction-level control assessment for all agency fund sources.

Emphasis will be on compliance with state policies and procedures.

Component 3

1. Corrective Action Plans with certification to the Commonwealth Contractor must provide necessary tools, including an actual analysis of deficiencies in internal control, which are identified during the agency-level of process level assessments. Contractor must provide the DJJ with written documentation of the analyses, identified missing controls, and recommendations on corrective action plans.

The corrective action plan must minimally include the following elements:

a. Summary description of the deficiency in internal control

b. When the deficiency was identified

c. Classify the deficiency in internal control in accordance with guidance in Directive 1-08.

d. A target date for completion of corrective action in consultation with the appropriate personnel designated by the Department of Juvenile Justice. The date of completion shall be within the next fiscal year following the date of the assessment.

e. Identification of personnel responsible for monitoring progress

Component 4

1. ARMICS Summary The contractor shall provide a summary for each stage of ARMICS by September 16, each year, to the DJJ designated personnel.

Qualifications:

Bidder must demonstrate how they will meet the above objectives.

Bidder must be a CPA with a valid certification and provide at least three references where they have performed ARMICS auditing services in the past, one of which has been with the Commonwealth of Virginia. The reference must include name of the Organization, address, contact person, phone number of contact and a brief description of services provided.

Terms and Conditions

GENERAL TERMS AND CONDITIONS:

The Commonwealth of Virginia General Terms and Conditions will apply. See Attachment to Quick Quote https://dgs.virginia.gov/content/dam/site-assets/dps/Documents/policy/VM_2025_Final.pdf.

SPECIAL TERMS AND CONDITIONS

AUDIT: The contractor shall retain all books, records, and other documents relative to this contract for five (5) years after final payment, or until audited by the Commonwealth of Virginia, whichever is sooner. The agency, its authorized agents, and/or state auditors shall have full access to and the right to examine any of said materials during said period.

AWARD: The Commonwealth will make the award(s) on grand total basis to the lowest responsive and responsible bidder that is a DSBSD-certified micro business if such a bid is received, provided that the bid is up to and including $10,000 and the agency in its sole discretion determines that the bid price is fair and reasonable. Otherwise, award of the contract shall be made to the lowest responsive and responsible bidder that is a DSBSD-certified small business if such a bid is received, provided that the bid is not more than $100,000 and the agency in its sole discretion determines that the bid price is fair and reasonable. If, in the agency’s opinion, the criteria in the previous two sentences are not present, then award shall be made to the lowest responsive and responsible bidder of any size, provided the agency in its sole discretion determines https://dgs.virginia.gov/content/dam/site-assets/dps/Documents/policy/VM_2025_Final.pdf that the price is fair and reasonable. If applicable, unit prices, extensions and grand total must be shown.

In case of arithmetic errors, the unit price will govern. If cash discount for prompt payment is offered, it must be clearly shown in the space provided. Discounts for early prompt payment will not be considered in making awards. The State reserves the right to reject any and all bids in whole or in part, to waive any informality, and to delete items prior to making an award.

CANCELLATION OF CONTRACT: The purchasing agency reserves the right to cancel and terminate any resulting contract, in part or in whole, without penalty, upon 60 days written notice to the contractor.

In the event the initial contract period is for more than 12 months, the resulting contract may be terminated by either party, without penalty, after the initial 12 months of the contract period upon 60 days written notice to the other party. Any contract cancellation notice shall not relieve the contractor of the obligation to deliver and/or perform on all outstanding orders issued prior to the effective date of cancellation.

eVA ORDERS AND CONTRACTS: The solicitation/contract will result in (1) purchase order(s) with the applicable eVA transaction fee assessed for each order.

Vendors desiring to provide goods and/or services to the Commonwealth shall participate in the eVA Internet e-procurement solution and agree to comply with the following: If this solicitation is for a term contract, failure to provide an electronic catalog (price list) or index page catalog for items awarded will be just cause for the Commonwealth to reject your bid/offer or terminate this contract for default. The format of this electronic catalog shall conform to the eVA Catalog Interchange Format (CIF) Specification that can be accessed and downloaded from www.eVA.virginia.gov. Contractors should email Catalog or Index Page information to eVA-catalog-manager@dgs.virginia.gov.

RENEWAL OF CONTRACT: This contract may be renewed by the Commonwealth upon written agreement of both parties for (one year)/three (3) successive one year periods, under the terms of the current contract, and at a reasonable time (approximately 90 days) prior to the expiration.

BID ACCEPTANCE PERIOD: Any bid in response to this solicitation shall be valid for (30) days. At the end of the days the bid may be withdrawn at the written request of the bidder. If the bid is not withdrawn at that time it remains in effect until an award is made or the solicitation is canceled.

REFERENCES: Bidders shall provide a list of at least 3 references where similar goods and/or services have been provided. Each reference shall include the name of the organization, the complete mailing address, the name of the contact person and telephone number.

ORGANIZATION ADDRESS CONTACT PERSON TELEPHONE

1. ______________________________ _________________________________________________________

2. ______________________________ ________________________________________________________

3. _______________________________________________________________________________________

SUBCONTRACTS: No portion of the work shall be subcontracted without prior written consent of the purchasing agency. In the event that the contractor desires to subcontract some part of the work specified herein, the contractor shall furnish the purchasing agency the names, qualifications and experience of their proposed subcontractors. The contractor shall, however, remain fully liable and responsible for the work to be done by its subcontractor(s) and shall assure compliance with all requirements of the contract.

CONFIDENTIALITY OF PERSONALLY IDENTIFIABLE INFORMATION: The contractor assures that information and data obtained as to personal facts and circumstances related to patients or clients will be collected and held confidential, during and following the term of this agreement, and unless disclosure is required pursuant to court order, subpoena or other regulatory authority, will not be divulged without the individual’s and the agency’s written consent and only in accordance with federal law or the Code of Virginia. Contractors who utilize, access, or store personally identifiable information as part of the performance of a contract are required to safeguard this information and immediately notify the agency of any breach or suspected breach in the security of such information. Contractors shall allow the agency to both participate in the investigation of incidents and exercise control over decisions regarding external reporting. Contractors and their employees working on this project may be required to sign a confidentiality statement.