Questions Answers 1 - 2024-05-23 RFP for Audit Services.pdf

Questions and Answers – 1 Solicitation: 2024-05-23 RFP for Audit Services for Clear Creek County, Colorado

1. Why is the County going out for audit proposals?

The County has not solicited audit services for several years and believes it is a good practice to rebid audit services periodically.

2. Has your prior audit firm been invited to respond to this RFP? If not, why not?

Yes, all qualified firms are invited to respond.

3. Have you encountered any difficulties with your audits in prior years? If so, please describe.

No.

4. Were there any instances of known or suspected fraud within the County over the last year?

5. What is the overall condition of the accounting records when audit fieldwork begins? Are all accounts reconciled when the audit commences, or are there certain funds or accounts that are reconciled at a later time? If so, which accounts and when is the information provided?

Most accounts are reconciled quarterly; completion is thirty (30) days after the close of the quarter.

However, there are a few accounts such as unavailable revenue and the IBNR liability where a final reconciliation for the prior year is not complete until the second week of March.

6. Any new debt in 2024? If so, how much and what for?

7. Any large capital asset projects in 2024? If so, how much and what for?

No.

8. Any significant change to your federal funding? If so, related to what and for how much?

No.

9. Does the County use a portal to share work papers with its audit firm? If not, are you open to using such a tool?

Yes.

10. How long has audit fieldwork typically lasted? How many auditors were involved in previous years?

One to two weeks, most fieldwork has been completed remotely for the past few years. However, when auditors were onsite, there were two.

11. Our fieldwork strategy is typically spilt into two segments. One segment relates to preliminary audit fieldwork where we gather documents, evaluate internal controls and finalize our audit planning. The other (final) would take place once your financial records are available? Is this a similar structure that your previous auditors have taken? If not – are you opposed to this approach (which we will detail out further in our proposal)? Furthermore – could you provide details on your current auditor’s approach if it is different from ours?

This is the customary approach, interim testing is completed prior to or at the end of the year and may involve preliminary planning, grant testing, and evaluation of internal controls.

12. In relation to #11 – we performed a significant number of our audits remotely for the past three years. We would likely propose to perform your audit using a remote model. Do you have any concerns with such an approach? If so, what are your concerns?

No concerns for remote work, this is customary post COVID.

13. If your audit was completed remotely last year – what went well? What improvements would you like to see made to the process?

Most fieldwork was completed remotely for the past three years, without issue.

14. If your audit was completed onsite entirely last year – what went well? What improvements would you like to see in the process?

N/A, see response to question 13.

15. How much has the County paid in audit fees for the various segments of the audit for each of the last three audit cycles?

$21,000 for 2021, $22,150 for 2022, and $22,900 for 2023.

16. Has the prior auditor charged the County fees outside the scope of the audit in the past several years? If so, what is the nature of this and the amount of fees?

17. Does the County have internal control documentation of key accounting cycles (disbursements, payroll, taxes, etc.)? If so, in what format (narratives, flowcharts, other)?

Yes, narratives.

18. Does the County utilize a specialist for determining any liabilities?

The County consults with a benefit broker to confirm reasonableness of the IBNR liability.

19. How does the County maintain their capital assets database (excel, capital asset module, other)?

Capital asset module within the accounting system.

20. Does the County typically require assistance in adopting new GASB standards? If so, please describe.

No. The County reviews new standards and if a new standard requires entries, changes, prior period restatement, or has a financial statement impact, the County prepares the journal entries and a draft of the accompanying footnotes and presents them to the auditor for comment or suggestions before making the final entries.

21. Are there any major anticipated changes in the County’s operations or organization that will have a significant impact on the audit?

22. Have there been any changes in management or accounting staff since last year? Do you anticipate any changes coming up?

No changes in management or the accounting staff since last year. However, the Finance Director is leaving, and recruitment is underway for a replacement.

23. How many audit journal entries has your auditor proposed for the 2022 and 2023 audits?

None.

24. Please confirm that the County prepares a complete set of financial statements (ACFR).

Currently, the Finance Director prepares the Annual Comprehensive Financial Report (ACFR), including footnotes, the government wide statements, and the compliance section (Schedule of Expenditures of Federal Awards-SEFA and highway finance report). However, this may change with a new Finance Director. Proposers are requested to respond with two alternatives for pricing of audit services: 1. the Finance Director will prepare all financials, including the SEFA, and make the ACFR available to auditors by or before March 31, or 2. the auditors will prepare the ACFR, including footnotes and SEFA.

25. Please confirm that the County prepares the schedule of federal awards that is reconciled to the general ledger and financial statements.

See response in question 24.