REQUEST FOR PROPOSAL TVCC 2023-24.pdf

REQUEST FOR INFORMAL PROPOSALS

Audit Services Provider

Treasure Valley Community College District (College) and Treasure Valley Community College Foundation, (Foundation) of Ontario, Oregon, invites qualified independent licensed municipal auditors (auditor) having sufficient governmental and auditing experience interested in performing an audit in accordance with the specifications outlined in the Request for Informal Proposals (RFP) to submit a proposal. These auditing services will be for both the College and the Foundation.

There is no expressed or implied obligation for the College or Foundation to reimburse auditor for any expenses incurred in preparing proposals in response to this request.

The term of the contract shall be three (3) years, commencing with the fiscal year ending June 30, 2024, and may be renewed at the option of the College, for up to two (2) additional one-year periods. The successful proposal and all terms and conditions contained in this Request for Informal Proposals will be made part of the contract. The management of this contract for the College will be the direct responsibility of the Vice President for Administrative Services. The contract may be cancelled by either party upon written notice at least sixty (60) days prior to the chosen cancellation date.

Written proposals are to be received no later than Tuesday, March 5th , 2024, and should be sent to:

Darin Bell VP of Administrative Services Treasure Valley Community College 650 College Blvd Ontario, OR 97914

Email responses are also acceptable and may be sent to dbell@tvcc.cc.

REQUEST FOR ADDITIONAL INFORMATION

Requests for additional information regarding College services, programs, financial services, or any other information should be directed to Darin Bell, VP of Administrative Services. He may be contacted at 541-881-5842 or via email at dbell@tvcc.cc.

PURPOSE

The objective of this Request for Informal Proposal (RFP) is to provide audit services for the Treasure Valley Community College District and the Treasure Valley Community College Foundation.

TECHNICAL QUALIFICTIONS

Proposers must be licensed Certified Public Accountants (CPA’s) that are included on the roster of authorized municipal accountants maintained by the Oregon State Board of Accountancy under ORS

297.670. Proposers must have a record of responsible work, meet the applicable independence standards, and comply with applicable requirements for peer review and continuing professional education.

OVERVIEW OF THE COLLEGE AND FOUNDATION

Treasure Valley Community College is a local community college district covering Malheur County and a portion of Baker County. The College is accredited by the Northwest Commission of Colleges and mailto:dbell@tvcc.cc

Universities. The governing body, which is the Board of Education, consists of seven (7) elected members who are charged with the general governance of the College.

The College is a local government subject to Oregon Budget Law and Minimum Standards for Audits of Oregon Municipal Corporations, Governmental Auditing Standards, GASB reporting standards. The College is subject to meeting the requirements of the Single Audit Act and related standards and Uniform Guidance. Prior year audited financial statements and adopted budgets can be found at https://www.tvcc.cc/about/leadership/budget_audits.cfm.

The Treasure Valley Community College Foundation provides grants to students, college staff and departments, and capital support for major College facilities such as new buildings. The Foundation is a 501(c)(3) nonprofit corporation subject to FASB reporting standards. The appointed Board of Directors is independent from the elected College Board. The Foundation is a component unit of the College and also issues separately bound annual financial statements. All Foundation staff are College employees and fiscal records are maintained in the College Business Office.

The College and Foundation retain the same independent CPA firm. The College Board of Education has a three-member audit committee that meets with the auditing firm at least two times per year. Once prior to the beginning of the audit to discuss plans for the audit, any changes in accounting and/or auditing standards from previous years, and once to hear the results of the audits prior to the presentation to the full Board of Education.

Detailed Information This is a routine informal Request for Proposals. We are requesting a three-year contract with optional one-year extensions for an additional two years. Fiscal yar 2022-23 was the 5th year with the current auditors. There have been no disagreements between management and the current auditors. No adjustments were required to the 2022-23 statements prepared by College staff.

Key staff and their roles are:

• Darin Bell, CPA, Vice President of Administrative Services – responsible administrator, coordinates the audit, reviews all College work papers, and prepares the College financial statements, including the Management’s Discussion and Analysis. Reviews Foundation workpapers and financial statements.

• Mandy Gaskill, Controller – supervises Business Office staff, prepares and/or reviews College workpapers, and assists the VP of Administrative Services with all aspects of both the College and Foundation work papers and financial statements.

The College performs the following work:

1. Prepare working papers documenting all balance sheet account balances, selected operating statements accounts, and information in the financial reports. For the College, this includes work papers documenting the conversion of fund-accounting information to the college-wide financial statements.

2. Prepare the College and the Foundation financial statements.

The College prefers that the auditors perform interim work on single audit transactions in July. Our preference is that no other interim work be done on financial transactions so that College staff can complete the work papers and reports. Fieldwork has traditionally been performed the first two or three weeks of October. We are open to whatever time frame works best for both the auditing firm and https://ousearch.omniupdate.com/texis/search/redir.html?query=Budgets&pr=tvcc-dev&prox=page&rorder=500&rprox=750&rdfreq=500&rwfreq=750&rlead=750&rdepth=31&sufs=0&order=r&uq=&u=https%3A//www.tvcc.cc/about/leadership/budget_audits.cfm&link the College but require that the completed audit reports be available for presentation to the College Board of Education no later than the regularly scheduled December meeting, typically the third Tuesday in December.

For 2022-23, the audit fee for the College was $110,340 and the fee for the audit services and preparation of Federal Form 990 for the Foundation is estimated to be $28,000.

For 2021-22, the audit fee for the College was $40,040 and the fee for the audit services and preparation of Federal Form 990 for the Foundation was $13,525.

SCOPE OF WORK

The required services are:

1. Annual financial and single audit of the financial statements of Treasure Valley Community College.

2. AU260 governance letter for Treasure Valley Community College.

3. Filing the required information with the Federal Clearinghouse regarding the single audit for

Treasure Valley Community College.

4. Annual audit of the financial statements of the Treasure Valley Community College

Foundation.

5. AU260 governance letter for the Foundation.

6. Form 990 federal return of organizations exempt from income tax for the Foundation.

7. Oregon Form CT-12 annual report for the Foundation.

8. Form 990T Exempt Organization Business Income Tax Return(s), if applicable.

9. A principal of the auditing firm will be required to present the audit report to the audit committee at a meeting to be scheduled prior to the presentation to the full College Board of Education.

10. A principal of the auditing firm will be required to present the audit report to the full board at a regularly scheduled meeting as soon as practical after the audits have been completed.

11. A principal of the auditing firm will meet with the audit committee at least one other time during the year to discuss audit planning as well as to apprise the committee and staff of any developments that will affect future audits.

12. A principal of the auditing firm will meet with the foundation board at a regularly scheduled meeting as soon as practical after the Foundation audit has been completed.

13. The final audited financial statements of the College and its component unit (the Foundation) shall be delivered to management no later than December 15th each year.

14. The auditor shall be available to answer questions on fiscal matters that may arise during the course of the fiscal year.

Planning Prior to the start of the engagement, the auditor will meet with the designated representative(s) of the College and Foundation to review the audit plan and associated schedules to make the necessary arrangements for coordination of the work with College and Foundation personnel.

The Audit Plan should describe the manner in which accounting, auditing, and other services will be coordinated and controlled and techniques planned to successfully keep the audit on schedule and within budget.

Auditing The auditor will review the financial statements of the College and the Foundation and make a comparison of the figures shown on the statements with subsidiary journals and the source documents from which they are drawn.

The auditor will perform other examinations as may be required by the College and the Foundation or any other State or Federal agency as prescribed by law.

During the course of the audit, if the auditor determines that discrepancies exist in the records or procedures, or if the auditor determines that it is not receiving full cooperation in obtaining the records of the College or the Foundation, the auditor shall notify the Vice President of Administrative Services or Controller, and the College President by letter of those issues.

The auditor will meet with the designated representative of the College and/or Foundation at regular intervals to review the status of the engagement, including any areas needing follow-up or special attention. The results of these meetings are to be formalized in a written memorandum and submitted to the Vice President of Administrative Services and the Controller prior to the exit conference.

Financial Reporting The auditor shall prepare and render written opinion letters on the Basic Financial Statements of the College and Foundation, in addition to the Single Audit Reports which includes the Schedule of Expenditures of Federal Awards.

The auditor shall assist with necessary revisions to the College’s Annual Financial Report. The auditor shall assist in the preparation of the draft financial statements and related footnotes from the trial balance and conversion working papers and other information provided by the College and Foundation.

The auditor shall furnish the College with 30 copies and the Foundation with 30 copies of all reports, comments and opinion letters, respectively. In addition, the auditor shall provide electronic copies of the financial reports.

Audit Review and Exit Conference All audit reports prepared will be reviewed by the Vice President of Administrative Services for completeness. An exit conference with the Vice President of Administrative Services, Controller, Vice President of Student Services, Financial Aid Director, and other designated representatives of the College and Foundation will be held at the conclusion of the field work. Observations and recommendations, including internal control and compliance issues, must be summarized in writing and discussed at the exit conference.

Technical Assistance Selected firm will be available to provide technical assistance to the College and Foundation as needed.

Examples of technical assistance include, but are not limited to, questions regarding accounting principles, GASB/FASB requirements and annual financial report preparation.

DELIVERY SCHEDULE AND PAYMENT TERMS

While earlier dates are acceptable, the College requires that the audit begin no later than November 1st, for the year being audited. The auditor is to submit one copy of the draft audit report to the College’s VP of Administrative Services on or before December 10th each year.

The auditor shall deliver (1) copy of the final audit report to the VP of Administrative Services by December 15th of each year. Presentations will also be made to the College’s audit subcommittee and Board of Education following finalization of the audit. The appropriate forms must be filed with the Secretary of State no later than December 31st following the fiscal year audited.

The auditor may submit their report earlier than the above schedule. However, if the auditor fails to make delivery of the audit reports within the time schedule or if the audit reports do not conform to the requirements, the College, by written notice to the auditor, may terminate the agreement.

Progress payments may be allowed to the extent that the College and/or Foundation can determine that satisfactory progress is being made. Such payments shall be specified in an agreement to be executed between the College and the auditor, and the Foundation and the auditor. Invoices requesting payment must clearly identify the services being billed. Upon delivery and acceptance of each final audit report, the auditor may submit a bill for the balance due on each contract for the audit.

WORK PAPERS AND CONFIDENTIALITY

All work papers and reports associated with the annual audit and the single audit of the College will be made available for examination by authorized representatives of the College upon written request. All work papers and reports associated with the annual audit of the Foundation will be made available for examination by authorized representatives of the College or Foundation upon written request. All work papers and reports associated with the annual audit and single audit of the college and annual audit of the Foundation will be retained for a minimum of three years from the date the audited is accepted by the state.

Other than the report submitted, the auditor will keep information pertaining to the audits in the strictest of confidence.

PREPARATION OF PROPOSAL

The proposal will consist of the actual offer to enter into a contract to perform the desired work. The person signing the offer must have the authority to commit the Proposer to all of the provisions of the proposal, fully recognizing that the Treasure Valley Community College District and the Treasure Valley Community College Foundation reserve the right to make an award without further discussion if it so selects.

In order to simplify the review process and to obtain the maximum degree of comparability, each proposal must include the following items and be organized in the manner specified below. Feel free to keep your responses as brief as possible as long as the items are addressed.

A. General

1. Describe your firm relative to others. What are your strengths? How does your philosophy differ from that of others?

2. Describe your ability to meet agreed-upon completion dates.

3. Describe the procedures your firm uses to develop and communicate with clients in regards to:

a. Audit adjustments and reasons for them.

b. Management recommendations.

c. Weaknesses noted in internal controls, accounting systems, and data processing.

4. What is your policy of billing for phone calls and other questions raised during the year?

5. Describe what services your audit contract generally covers and what it does not cover.

6. Specify how much, if any, of the audit engagement will be performed on-site as opposed to virtually. We are open to either and/or both.

B. Personnel

1. The number of personnel in your firm currently licensed by the Oregon State Board of

Accountancy to conduct Oregon municipal audits.

2. The size of the office that would be assigned to the audit; the number of personnel readily available, who can be assigned to this engagement; and the number of clients this office serves.

3. The policy of your firm regarding rotation of personnel to be assigned to engagements:

a. During the year undergoing an audit.

b. Year to year.

4. Your firm’s policy regarding degree of participation of senior audit personnel assigned to the engagement and frequency of contact with College personnel.

5. Provide details of the municipal auditing experience of the personnel that you expect to assign to this audit, including number of years of experience.

6. Provide a general statement of your firm’s staff longevity.

7. Identify the partners and managers who would be responsible for the audit.

8. Provide a statement regarding the firm’s most recent Peer Review report and related comment letter.

C. Services

1. Experience in, and approach to, auditing computerized records and financial systems.

2. Describe the firm’s knowledge and experience in auditing federal financial aid in addition to federal, state, and local grants, including OMB Uniform Guidance.

3. Describe the firm’s approach to assessing internal control risk in community colleges.

4. Provide a timeline for the first year’s audit process, including initial fieldwork up to the issuance of the final audit report. Follow this with the timeline for subsequent years’ audit services.

5. Provide any additional information that you feel would have an impact on the College’s selection of an audit firm.

D. Fees

1. Provide the estimated fee for the 2023-24 audit and governance letter for the College.

2. Provide an estimated fee for the Foundation 2023-24 audit and 2023 tax returns.

3. Provide the estimated or guaranteed percentage fee increases for the subsequent two years.

4. College staff occasionally have questions during the year. Describe whether these are included as part of the audit services or separately billed.

5. Provide the estimated cost of printing approximately 30 copies each of both the College audit report and the Foundation report and indicate whether the cost is included in the fees estimated above.

E. References

1. List other recent Oregon municipal audits of similar size and scope for which your firm has contracted. Oregon Community College experience, if any, should be detailed. Note those that are new clients within the past two years; also indicate those clients lost in the past five years, including contact person and phone number. References from similar clients should be included. The College reserves the right to investigate any client references, whether or not furnished by the proposer, as well as past performance of any proposer with respect to its successful performance of similar services, compliance with specifications and contractual obligations, and its completion or delivery of a product/service on schedule.

F. Evaluation of Proposals The selection process will be based on the information submitted or obtained in response to this Informal Request for Proposals. The College will be the sole judge of the merits of each respondent’s submission.

The evaluation committee includes:

• Darin Bell, VP of Administrative Services

• Cathy Yasuda, Foundation Executive Director

• TBD, College Board of Education audit committee member(s)

• Mandy Gaskill, Controller

The committee will evaluate the proposals, select finalists, and make a recommendation to the College Board of Education. The College Board of Education selects the audit firm for both the College and the Foundation.

The evaluation and selection will be based on the following:

Weight

Firm qualifications 20%

Personnel performing the audit 30%

Fees 30%

References 20%

CONTRACT TERMINATION CONDITIONS

The College and/or Foundation may terminate this contract if any of the following actions take place:

a. The contractor is no longer qualified as an Audit Provider licensed to practice that profession in the State of Oregon.

b. Failure to reach agreement on subsequent years’ fees.

c. Any suit is filed against the College regarding the contractor’s performance which, in the opinion of a neutral third-party attorney, is significant and substantive and has a reasonable likelihood of success.

d. Other valid reasons, for example, unacceptable performance of the contractor or lapse of insurance.

e. The contract may be cancelled by letter from the President of the College, at his or her sole discretion, giving sixty calendar days’ notice of intent to cancel. The notice shall state the reason for termination of the contract. At the end of the sixty-day period, if the notice is not rescinded by the President, the contract shall be deemed to have been cancelled.

OTHER INFORMATION

Treasure Valley Community College District reserves the right at any time during the solicitation process to reject any or all proposals or cancel the solicitation without liability if it is in the public interest to do

so. Responses to this RFP are purely voluntary and the College will not reimburse any Proposer for the cost of their proposal.

The College also reserves the right to obtain clarification of any point in a proposal or to obtain additional information necessary to properly evaluate a proposal.

The College retains the right to post its audited financial statements on the College’s web site.

SIGNATURE SHEET

The undersigned hereby proposes to furnish, within the time specified, the several items and/or services listed, to be delivered in accordance with the foregoing specifications.

SIGNATURE FOR INDIVIDUAL (signed by individual)

Address _______________________________ X__________________________________

City/State______________________________ ___________________________________ (Typed or Printed Name)

Zip____________________________________ Telephone__________________________

SIGNATURE FOR PARTNERSHIP (signature of one partner required) Name of Partners: (please print) Name of Partnership:

______________________________________ Address____________________________

______________________________________ City/State/Zip_______________________

______________________________________ Telephone__________________________

X_____________________________________

SIGNATURE FOR CORPORATION (as indicated)

Address _______________________________ __________________________________ (Corporate Name)

City/State/Zip___________________________ __________________________________ (Signature of Officer or Agent)

Telephone______________________________

(Typed or Printed NAME and TITLE of Officer or Agent)