Request for Information (RFI) REQAUD-24-00-007 Financial Statement Audit.pdf

RFI - REQAUD-24-00-007 Financial Statement Audit

THIS IS A REQUEST FOR INFORMATION (RFI) ONLY. This RFI is issued solely for information and planning purposes; it does not constitute a Request for Quote (RFQ) or a promise to issue an RFQ. A solicitation does not exist for this requirement. This is only an RFI, so please do not submit proposals. The Government does not intend to award a contract on the basis of this RFI. Furthermore, those who respond to this RFI should not anticipate feedback with regards to its submission; other than acknowledgment of receipt if a request for an acknowledgement is requested by the submitter. This RFI does not commit the Government to contract for any supply or service. The Department of Homeland Security, Office of Inspector General (DHS-OIG) is not at this time seeking proposals. Responders are advised that the U.S. Government will not pay any cost incurred in response to this RFI. All costs associated with responding to this RFI will be solely at the responding party’s expense. Not responding to this RFI does not preclude participation in any future solicitation. If a solicitation is released, it may be via the Government wide Port of Entry (GPE) at (http://www.bet.sam.gov) or utilizing the General Services Administration (GSA) Ebuy portal. It is the responsibility of the potential offerors to monitor the websites for any information that may pertain to this RFI. The information provided in this RFI is subject to change and is not binding on the Government. All submissions become the property of the Federal Government and will not be returned.

Vendors must identify any proprietary information submitted in response to this Request for Information. The proprietary information must be clearly marked as proprietary.

Background

The DHS-OIG Office of Audits (OA) conducts and coordinates audits and program evaluations of the management and financial operations of DHS and conducts audits and evaluations of DHS’ information technology (IT) management, cyber infrastructure, systems integration, and systems privacy activities protections.

OA will need to acquire the services of an independent public accounting (IPA) firm to conduct an integrated audit of Department of Homeland Security’s (DHS) consolidated financial statements as of September 30, 2025, and 2024, and internal control over financial reporting as of September 30, 2025, and with further audits through FY 2029. The Office of Management and Budget (OMB) Circular A-136, revised, requires the audit reports to be submitted as part of the final Agency Financial Report (AFR), which is due on November 15th, after the end of the fiscal year being reported.

Purpose and Objectives

The DHS-OIG is seeking information from vendors who can responsively provide information related to financial statement reporting and contract management. This RFI is intended to obtain information about current industry capabilities and performance.

Audit Scope

The Contractor shall serve as the principal auditor of the department’s financial statements. As the principal auditor, the Contractor shall perform the audit of the financial statements and perform procedures on the supplemental and other accompanying information included in the AFR for the FY as of September 30, 2025, and 2024 and succeeding years, in accordance with Government Auditing Standards (GAS) issued by the Comptroller General of the United States, and subsequent revisions, and OMB Bulletin 24-01, Audit Requirements for Federal Financial Statements and subsequent issuances. The Contractor shall also follow the GAO/CIGIE Financial Audit Manual (FAM) and subsequent issuances, and Government Accountability Office’s (GAO) Federal Information System Controls Audit Manual (FISCAM) and subsequent issuances.

The department’s financial statements are defined as follows:

• Consolidated Balance Sheets;

http://www.bet.sam.gov/

• Consolidated Statements of Net Cost;

• Consolidated Statements of Changes in Net Position;

• Combined Statements of Budgetary Resources;

• Consolidated Statements of Custodial Activities; and

• Notes to the Financial Statements.

In FY 2025, the following will be subject to audit:

• Consolidated Balance Sheets;

• Consolidated Statements of Net Cost;

• Consolidated Statements of Changes in Net Position;

• Combined Statements of Budgetary Resources;

• Consolidated Statements of Custodial Activities; and

• Notes to the Financial Statements

• Internal Control over Financial Reporting as related to the DHS Consolidated Financial

Statement audit scope.

Internal Controls Over Financial Reporting

The Department of Homeland Security Financial Accountability Act (P.L. 108-330) was established to amend Title 31 of the United States Code, to improve the financial accountability requirements applicable to the DHS.

Section 4 of the Act requires that the Secretary of Homeland Security include an audit opinion on the Department’s internal control over its financial reporting in each performance and accountability reporting beginning after FY 2005.

The audit shall be conducted in accordance with Statement on Auditing Standards No. 130, An Audit of Internal Control over Financial Reporting that is Integrated with an Audit of Financial Statements.

Office of Management and Budget (OMB) Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, states “Federal agencies are subject to many legislative and regulatory requirements that promote and support effective internal control. Effective internal control is a key factor in achieving agency missions and program results through improved accountability. Identifying internal control weaknesses and taking related corrective actions are critically important to creating and maintaining a strong internal control infrastructure that supports the achievement of agency objectives.”

OMB Circular No. A-123 builds upon the internal control framework within the Standards for Internal Control in the Federal Government (Green Book), issued by the Government Accountability Office (GAO), which defines internal control as “A process affected by an entity’s oversight body, management, and other personnel that provides reasonable assurance that the objectives of an entity will be achieved.” These objectives are:

• Effectiveness and efficiency of operations,

• Reliability of financial reporting, and

• Compliance with applicable laws and regulations

General Requirements

The Contractor shall develop complete and accurate workpapers that document all work performed, support conclusions reached, and are consistent with GAO/Council of the Inspectors General on Integrity and Efficiency (CIGIE) Financial Audit Manual (FAM) guidance, government auditing standards (GAGAS), and American Institute of Certified Public Accountants (AICPA) standards. Workpapers shall clearly show the following:

• Objectives, scope, and methodology used

• Procedures performed

• Source of information

• Supervisory review of work performed

• Condition, cause, effect, criteria, and recommendations for all findings.

Workpapers shall contain sufficient information to enable an experienced auditor having no previous connection to the assignment to identify the support for the narrative, findings, and conclusions of reports and workpapers. Audit procedures, Notices of Findings and Recommendations (NFRs), and audit reports shall be cross-referenced to the workpapers, and vice versa.

At the conclusion of the audit, the Contractor shall review the following financial statement checklists:

• GAO/CIGIE FAM Volume II, Section 1003, Financial Statement Audit Completion Checklist

• GAO/CIGIE FAM Volume III, Section 2010, Federal Financial Reporting Checklist, and

• Any other checklists related to financial statement audits of federal entities required or recommended by oversight agencies, as determined by the DHS OIG, and communicated to the Contractor in writing.

Standards

The audits must be performed in accordance with the following standards and guidance, including any subsequent issuances or revisions:

• Government Auditing Standards (GAS), also known as generally accepted government auditing standards (GAGAS) or the Yellow Book, issued by the Comptroller General of the United States;

• Generally accepted auditing standards (GAAS), as established by the American Institute of Certified

Public Accountants (AICPA) and promulgated in its Statements on Auditing Standards (SAS);

• Financial Audit Manual (FAM), issued by GAO and the Council of the Inspectors General on Integrity and Efficiency (CIGIE);

• GAO’s Federal Information System Controls Audit Manual (FISCAM);

• GAO’s Standards for Internal Control in the Federal Government (Green Book);

• OMB Bulletin 24-01 and subsequent issuances, Audit Requirements for Federal Financial Statements

• OMB Circular A-136, revised, Financial Reporting Requirements.

• Department of Treasury’s Treasury Financial Manual,

• Statement on Auditing Standards No. 130, An Audit of Internal Control over Financial Reporting that is Integrated with an Audit of Financial Statements.

Information Requested:

Interested parties should submit a written response which addresses the following topics:

Volume I

1. Organization information: Provide the organization's name and full address, point of contact, email address, and phone number. Include information about your firm’s size and any small business designations.

2. Small Business Information: Please provide the business size status of your company based on NAICS 511210 Application Development and Publishing (except on a custom basis), with a business standard of $38.5. Clearly indicate all that applies, for example, whether your business is a Large Business, Small Business, Women Owned - Small Business (WOSB), Veteran Owned/Service-Disabled Veteran Owned Small Business (SDVOSB), 8a, or HUBZone.

3. GSA Schedules or Other GWACs: Vendors with a General Services Administration (GSA) schedule or other type of Government Wide Acquisition Contract (GWAC) award or schedule, which is available to the DHS-OIG for the procurement of the proposed product/service, should provide the full description of that award or schedule, award number of that contract or schedule, the Contracting Officer’s complete address, phone number, and other descriptive information.

Volume II

Capabilities: Provide a description of your capabilities. Include Background, Recommended Labor Categories, Security Clearances, Audit Scope, Deliverables, Quality Assurance, and Independence.

Volume III

Audit Approach for Annual Financial Statement Audits

Volume IV

Reasonable Order of Magnitude

1) an estimate based on estimated hours; or

2) an estimate based on contractor’s audit approach.

Submission of Information Requested:

Any submitted response must include all requested information.

Volume I - Responses for Volume I shall be limited to 10 pages, (U.S. letter size paper 8.5” x 11”), (Single- Sided), single spaced, 12-point font size and should include information such as Organization Information, Small Business Information, and GSA Schedules/Other GWAC Information as described above.

Volume II - Responses shall be limited to 50 pages (U.S. letter size paper 8.5” x 11”), (Single-Sided), single spaced, 12-point font size and should include information of your company’s capabilities and approach.

Submit responses via email no later than April 2, 2024, 10:00 AM (EST) to the point of contact listed below.

The subject line of the submission must read “Response to the RFI - REQAUD-24-00-007 Financial Statement Audit Financial Statement Audit”. Submit responses and attachments in PDF format.

Submit questions regarding the RFI, no later than March 17, 2024, 10:00 AM (EST) to the point of contact listed below.

SOURCES SOUGHT: Responses from large and small businesses are encouraged, however, in accordance with FAR 19.5, set asides for small business; the government will review the information in this announcement to determine the type of set aside (if any) for this requirement. Please provide the size status of your company based on NAICS 511210 - Applications development and publishing, except on a custom basis, with a size standard of $38.5. Source Sought information shall be included in Volume I.

The Government reserves the right to contact, or not contact, any party responding to this notice to obtain further information for market research purposes. The government will not notify respondents of the results of the evaluation of the information received and will not return submittals to the sender.

Questions and Responses to RFI may be sent via electronic mail to:

Sheri Brooks, Contracting Officer, sheri.brooks@oig.dhs.gov