Questions and Answers #1.pdf
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- Attached to
- Audit and Tax Compliance Services
- Solicitation number
- 105-105-2026Foundation
- Issued by
- Lee County, North Carolina
About this file
This is a Questions and Answers document related to an audit and tax compliance services RFP issued by the Lenoir Community College Foundation, Inc., a North Carolina nonprofit organization. The Foundation is soliciting proposals from qualified CPA firms to provide independent audit services and tax compliance services for fiscal years ending June 30, 2027, 2028, and 2029. The organization's fiscal year ends on June 30, with accounting staff completing books by mid-July to allow approximately two weeks for year-end procedures before audit commencement. The Foundation requires draft reports by August 1 and final reports timed to support a mid-September reporting deadline to the Office of the State Controller. Written questions were due August 10, 2026, with interviews scheduled for September 15-16, 2026, firm selection on September 21, and contract approval on October 28, 2026. Contract commencement is November 6, 2026, with an initial one-year term and the Foundation's option to renew for two additional one-year periods before competitive procurement is required.
The current auditor is Sharpe Patel, PLLC, which has provided auditing services for five years and is eligible to submit a proposal. The Foundation has never received audit findings and has consistently met the August 1 draft report deadline without difficulties. The organization maintains approximately 217 endowments and 43 College funds and operates under a spending policy requiring calculation of allowable distributions based on a 4% target spending rate of the rolling twelve-quarter average market value. No single audits are anticipated as federal or state expenditures are not expected to exceed applicable thresholds. The selected firm will have access to the predecessor auditor's information and prior-year workpapers subject to professional standards and confidentiality requirements. The Foundation is discretely presented as a component unit of Lenoir Community College with no anticipated changes to that determination during the contract period.
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1. Reason for the RFP
Is there a particular reason the Foundation is issuing the RFP at this time (e.g., required auditor rotation, contract expiration, desire for additional services, fee considerations, or other factors)?
The LCC Foundation is soliciting proposals for audit and tax compliance services to ensure the Foundation’s continued compliance with applicable requirements, including North Carolina General Statutes § 147-64.7(b)(2).
2. Current Auditor Relationship
Who is the Foundation's current independent audit firm? How long has the current firm served as auditor of the Foundation? Will the incumbent firm be submitting a proposal?
The current auditor is Sharpe Patel, PLLC. They have provided auditing services for five years. The opportunity is open to all qualified firms, including the incumbent firm
3. Anticipated Changes
Are there any significant anticipated changes over the next three fiscal years that proposers should consider when developing audit hours and fee estimates, including changes in staffing, leadership, fundraising initiatives, capital campaigns, grants, awards, funding sources, endowments, or reporting requirements?
There are no changes that we are currently aware of.
4. Single Audit Considerations
Does management anticipate federal or state expenditures exceeding the applicable audit threshold during any of the contract years, which could require additional compliance testing or a Single Audit?
No.
5. Key Challenges and Pain Points
What are the Foundation's biggest operational, accounting, financial reporting, compliance, or audit-related challenges today? Are there any specific areas where management believes a new audit firm could provide additional value or improve the audit process?
None that we are aware of.
6. Prior Audit Findings
Were there any significant deficiencies, material weaknesses, management letter comments, or other notable audit observations reported within the last three years? If so, have all items been remediated?
The College and the Foundation have never received an audit finding.
7. Access to Prior Auditor Information
Will the selected firm be permitted to communicate with the predecessor auditor and obtain access to relevant prior-year audit information and workpapers, as appropriate?
Yes, subject to the applicable professional standards, confidentiality requirements, and authorization by the Foundation and predecessor auditor, the selected firm may communicate with the predecessor auditor and obtain relevant prior-year audit information and workpapers, as appropriate.
8. Audit Timeline Expectations
Have there been any difficulties meeting the August 1 draft report deadline in prior years? Are there any known timing constraints related to Foundation or College reporting requirements that proposers should consider?
The Organization’s fiscal year ends on June 30. Our accounting staff work diligently to finalize the books and have them ready for the auditors by mid-July, allowing approximately two weeks to complete the necessary year-end procedures, reconciliations, and adjustments prior to the start of the audit.
The Organization has not experienced any difficulties meeting the August draft report deadline in prior years. A Foundation reporting template is due to the Office of the State Controller in mid-September. This reporting requirement should be considered when planning the audit timeline and completion of the final audit report.
9. Component Unit Status
Has the Foundation historically been reported as a discretely presented component unit or as a blended component unit of the College? Does management anticipate any changes to that determination during the contract period?
Discretely presented – no change is anticipated.
10. Investment and Endowment Activity
Approximately how many endowments and investment accounts are maintained by the Foundation? Have there been any significant changes in investment strategies or endowment administration in recent years?
There are approximately 217 endowments and 43 College funds within the Foundation. The Lenoir Community College Foundation adopted a spending policy for the Endowment Investment Fund that requires the calculation of allowable distribution amounts based on a target spending rate of 4% of the rolling twelve-quarter average market value of each separate endowment fund.
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