Questions and Answers #2.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 for an RFP issued by Lenoir Community College Foundation, Inc., a North Carolina nonprofit organization seeking audit and tax compliance services. The Foundation requests independent audit services and Form 990 tax compliance for fiscal years ending June 30, 2027, 2028, and 2029. The organization's fiscal year ends June 30, with accounting books typically finalized by mid-July. Audit fieldwork is scheduled to begin mid-July with board presentation and approval anticipated by late August of each year. Written questions were due August 10, 2026, interviews are scheduled for September 15-16, 2026, with firm selection on September 21, 2026, and contract approval on October 28, 2026. The contract commences November 6, 2026, and awards for an initial one-year term with the Foundation's option to renew for two additional one-year periods.
The Foundation's finance team is experienced and well-established, with the Chief Financial Officer having served in that role for over 20 years and no recent leadership changes. The organization utilizes MIP Accounting software and has maintained strong internal controls with no audit findings or management letter comments in the 2025 audit. The Foundation anticipates receiving the completed Form 990 by November 1 annually. Notable organizational developments include a $1 million gift received in July 2026 and a planned property sale in September 2026. The CPA firm selected must hold North Carolina CPA licensure, demonstrate experience auditing nonprofit organizations and higher education foundations, and provide services in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. The firm must also prepare the Form 990 and other required tax filings and provide tax research and consultation on nonprofit taxation matters, including evaluation of revenue taxability determinations.
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Text version
RFP - Audit and Tax Compliance Services Lenoir Community College Foundation, Inc.
Clarification Questions
1. Reason for the RFP
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. When do you anticipate the 2026 audit will be complete?
We typically begin the audit in mid-July, with a presentation of the audit to the Foundation Board in late August. The 2026 audit is anticipated to be approved by the Foundation Board on Wednesday, August 26, 2026.
3. Can you describe your governance structure and how financial oversight is managed?
Audit committee? Board?
The Vice President of Administrative Services/CFO/COO of the College serves as the Treasurer of the Foundation. The President of the College, Executive Director of the Foundation, Treasurer, and Accounting Assistant are responsible for managing the Foundation’s day-to-day financial activities and operations. The LCC Foundation Board of Directors provides overall governance, strategic direction, and financial oversight.
4. Any recent changes in leadership, finance staff, or governance policies?
No. There have been no recent changes in leadership, finance staff, or governance policies.
5. Have there been any disagreements in the past with the auditors about accounting policies?
No. There have been no disagreements with our auditors regarding accounting policies.
6. With your previous auditors, can you share your experience - what worked well, what could be improved?
The College and Foundation staff have a strong and positive working relationship with our auditor. Communication has been consistent and effective throughout the audit process, and requested information and documentation have been provided in a timely manner. The audit process has been collaborative, professional, and well-organized.
7. Has the audit been onsite/remote?
We have used a combination of onsite and remote audit work.
8. Preferred timing for the audit fieldwork?
We prefer the timeframe currently used, with audit fieldwork beginning in mid-July and the completed audit presented to the Foundation Board in late August.
9. How long does it take for the Organization to close their fiscal year end?
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. This allows approximately two weeks to complete the necessary year-end procedures, reconciliations, and adjustments prior to the start of the audit.
10. I have reviewed the last audit, any significant changes or transactions for 2026 or for 2027?
The Foundation received a $1 million gift in July 2026 and plans to sell a piece of property in September 2026. There are no other significant changes or transactions anticipated at this time.
11. What accounting system do you use?
MIP Accounting
12. What is the size and experience of those that would be involved in the audit?
The finance team is seasoned and experienced. The Sr. Vice President of Administrative Services/Chief Operating Officer/Chief Financial Officer is heavily involved in the annual audit process, and she has been in the role for more than 20 years.
13. What are typical journal entries that the auditors record as part of the audit?
It is our goal to not have journal entries in the auditor’s records.
14. Any change in the mix of investments No. There has been no change in the mix of investments.
15. Does the Organization maintain process and control documentation over financial reporting?
The College maintains process and control documentation related to financial reporting, which is also utilized for the Foundation’s financial activities. These established processes and internal controls support accurate and reliable financial reporting and help ensure appropriate oversight of financial activities.
The College and Foundation have a strong history of effective internal controls and have not had any audit findings. We believe this demonstrates the effectiveness of our current processes and control environment.
16. Can you send us a copy of your most recent internal financial statement for most recent period closed in 2025?
Yes.
17. Any areas the current auditor assists with such as functional expenses, fixed assets, net assets, etc.?
The auditors prepare the financial statements based on the information provided. The College maintains the fixed asset and depreciation records. The auditors perform the calculation and allocation of functional expenses as part of the audit process.
18. Could you provide any management letter comments and internal control findings issued from the 2025 audit if any?
There were no internal control findings or management letter comments issued as part of the 2025 audit.
19. What is your preferred timing for receiving the tax return draft and filing the return?
We would like to receive the completed Form 990 by November 1 to allow sufficient time for Foundation staff to review it prior to filing.
20. Does the CPA meet with the board or committee to present the 990?
No. The CPA does not present Form 990 to the Board or a Finance committee.
21. Have you evaluated the taxability of revenue from passport services and lease income to determine they are not subject to UBIT?
The Foundation considers the revenue generated from passport services and lease income to be related to and supportive of the Foundation’s mission.
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