RFP #2025-04-001 ANNUAL AUDIT SERVICES (City of T or C).docx

RFP #2025-04-001

ANNUAL FINANCIAL AUDIT SERVICES

PER STATE AUDITORS RULE 2.2.2 NMAC

CITY OF T OR C

STATE OF NEW MEXICO

REQUEST FOR PROPOSALS (RFP)

RFP #2025-04-001

ANNUAL FINANCIAL AUDIT SERVICES PER STATE AUDIT RULE 2.2.2. NMAC FOR 2024

CITY OF T OR C PROCUREMENT

505 SIMS STREET

TRUTH OR CONSEQUENCES, NM 87901

Issue Date: March 27th, 2025

Deadline for Questions: April 17th, 2025 @ 2:00 PM

Acknowledgement of Receipt: April 10th, 2025 Due Date: April 24th, 2025 @ 2:00 PM

OTHER INFORMATION:

COMMODITY CODE REF: # NIGP: 94620, NIGP: 946, NIGP: 91804, NIGP: 918

Table of Contents

VI. EVALUATION CRITERIA…………………………………………………………………………………29

8. FEES- APPENDIX C-PROPOSED FEE SCHEDULE (250 POINTS) ………………………………………30

VII. EVALUATION PROCESS 31

A. EVALUATION POINT SUMMERY………………………………………………………………………...31

B. EVALUATION FACTORS……………………………………………………………………………………31

VIII. EVALUATION PROCESS…………………………………………………………………………….…33

EXHIBIT A…………………………………………………………………………………………………….….57

RFP QUESTION SUBMITAL FORM………………………………………………………………………….57

I. INTRODUCTION

A. PURPOSE OF THIS REQUEST FOR PROPOSALS

The City of Truth or Consequences, hereinafter to be referred as “The City”, on behalf of the City’s Commissioners, is hereby seeking formal, sealed proposals from qualified companies to perform the fiscal year end 24/25 audit and prepare fiscal year-end financial statements for the city. In addition to the initial award, the contract will be issued for multi fiscal years as per (3) year multi term agreements.

B. SUMMARY SCOPE OF WORK

The scope of work consists of:

A. In accordance with the New Mexico State Audit Rule 2.2.2.8 NMAC, 2024, the successful Auditor shall be required to conduct a financial and compliance audit of the following applicable statements and schedules for the City for the period from July 1, 2024 through June 30, 2025:

(1) 2024 Audit Rule Summary of Key Changes. Basic Financial Statements consisting of the government-wide financial statements, fund financial statements, budgetary comparison statements for the general fund and major special revenue funds (GASB 87 and 89), and the notes to the financial statements;

(2) Required supplemental information (RSI), if applicable, consisting of budgetary comparison schedules for the general fund and major special revenue fund data presented on a fund, organization, or program structure basis because the budgetary information is not available on the GAAP fund structure basis for those funds (GASB Statement No. 84, Budgetary Comparison Schedules—Perspective Differences an amendment of GASB Statement No. 34) must be audited and included in the auditor’s opinion (AAG-SLV 14.52);

(3) Supplemental Information (SI) that must be audited and included in the auditor’s opinion (AAG-SLV 14.52), if applicable, consisting of:

(a) Component unit fund financial statements and related combining statements (if there are no separately issued financial statements on the component unit per AAG-SLV 3.20);

(b) Combining financial statements;

(c) Individual fund budget comparison statements for remaining funds that have an adopted budget, including proprietary funds, that did not appear as basic financial statement budget comparisons for the general fund, major special revenue funds or as RSI as described above; and

(d) Remaining supplemental information on schedules as required by NMAC Section 2.2.2.6

B. The Auditor shall apply certain limited procedures to the following required supplemental information (RSI), if applicable, and report deficiencies in or the omission of required information in accordance with the requirements of AU-C 730.05 to 730.09:

(1) The Management Discussion and Analysis (MD&A);

(2) RSI data required by Statements 25, 27, 43 and 45 regarding pension plans and post-employment healthcare plans administered by defined benefit pension plans; and

(3) Schedules derived from asset management systems (GASB 34, paragraphs 132 to 133).

C. The audit shall be conducted in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, OMB Circular A-133, and Requirements for Contracting and Conducting Governmental Audits (NMAC Section 2.2.2.1, et seq.).

2. SUMMERY OF SCOPE OF WORK

A. In order to meet the delivery terms of this Contract, the Auditor shall deliver the following documents to the State Auditor on or before December 15, 2025 and in accordance with NMAC Section 2.2.2.9:

(1) an organized, bound and paginated hard copy of the City’s audit report for review;

(2) a copy of the signed management representation letter provided to the IPA by the City as required by AU-C580;

(3) a Summary of Findings Form available at www.osanm.org; and

(4) a copy of the completed State Auditor Report Review Guide available at www.osanm.org;

B. Reports postmarked by the City’s due date will be considered received by the due date for purposes of NMAC Section 2.2.2.9. Unfinished or excessively deficient reports will not satisfy this requirement; such reports will be rejected and returned to the Auditor and the State Auditor may take action in accordance with NMAC Section 2.2.2.13.C. If the State Auditor does not receive copies of the engagement letter, management representation letter, summary of findings forms and the completed Report Review Guide with the audit report or prior to submittal of the audit report, the State Auditor will not consider the report submitted to the State Auditor.

C. As soon as the Auditor becomes aware that circumstances exist that will make the City’s audit report late, the Auditor shall immediately provide written notification of the situation to the State Auditor. The notification shall include an explanation regarding why the audit report will be late, when the IPA expects to submit the report and a concurring signature by the City. The State Auditor shall also notify the Finance Director, but confidential information shall be omitted from that notification.

D. Pursuant to NMAC Section 2.2.2.8.Q, the Auditor shall prepare a written and dated engagement letter that identifies the specific responsibilities of the Auditor and the City. The Auditor shall submit to the State Auditor an electronic copy of the signed and dated engagement letter and a list of client prepared documents with expected delivery dates within ten (10) days of the entrance conference.

E. After its review of the audit report pursuant to NMAC Section 2.2.2.13, the State Auditor shall authorize the Auditor to print and submit the final audit report. Within five business days from the date of the authorization to print and submit the final audit report, the Auditor shall provide the State Auditor with ONE copy of the report in an electronic version of the audit report, in PDF format. After the State Auditor officially releases the audit report by issuance of a release letter, the Auditor shall deliver Ten (10) copies of the audit report to the City. The City or IPA shall ensure that every one of the City’s governing authority shall receive a copy of the report.

F. The City, upon delivery of its audit report, shall submit the required copies of the data collection form, audit report and corrective action plan to the federal clearinghouse designated by the Office of Management and Budget and each federal awarding City to federal awards.

C. SCOPE OF PROCUREMENT

The scope of the procurement consists of ensuring the selected firm meets all State and City rules and expectations. To meet all RFP requirements as per guidelines and statutes. This Contract will automatically renew on an annual basis, for up to three (3) additional one (1) year terms unless terminated as provided by this Contract or law. In accordance with Section 13-1-150 NMSA 1978, no term for a professional services contract, including extensions and renewals, shall exceed three (3) years, except as set forth in Section 13-1-150 NMSA 1978. This procurement will result in a single source award. The contract award is expected on or about May 14th, 2025.

D. CHIEF PROCUREMENT OFFICER

The City of Truth or Consequences has designated a Chief Procurement Officer who is responsible for this procurement and whose name, address, and telephone number are listed below. Any inquiries or requests regarding this procurement should be submitted to the Chief Procurement Officer in writing. Offerors may contact ONLY the Chief Procurement Officer regarding the procurement. Other City employees do not have the authority to respond on behalf of the City of Truth or Consequences.

Jordan Javier Chief Procurement Officer, Truth or Consequences

Delivery Address (Including proposal delivery):

505 Sims Street Truth or Consequences, NM 87901

Mailing Address:

Phone : (575) 952-0490 E-mail: jjavier@torcnm.org

NOTE: All deliveries via express carrier (INCLUDING PROPOSAL DELIVERY) should be addressed to Jordan Javier's Delivery Address, above.

E. DEFINITION OF TERMINOLOGY

This section contains definitions that are used throughout this procurement document, including appropriate abbreviations.

“Board of City Commissioners” (also “BCC”) means the elected board in whom all powers of the City are vested and who are responsible for the proper and efficient administration of the City government.

“Chief Procurement Officer” (also “CPO”) means the state certified procurement officer and purchasing agent for the County of Sierra. The person or designee authorized by the City to manage or administer a procurement requiring the evaluation of competitive sealed proposals.

"Close of Business" means 5:00 P.M. Mountain Standard Time (MST) or Mountain Daylight Time (MDT), whichever is in effect on the date specified.

"Contract" or “Agreement” means a written agreement for the procurement of items of tangible personal property or services.

"Auditor" means a successful offeror who enters a binding contract.

"City" means the City of Truth or Consequences, New Mexico.

"Determination" means the written documentation of a decision of the procurement manager including findings of fact required to support a decision. A determination becomes part of the procurement file to which it pertains.

“Desirable" refers to the terms "may", "can", "should", "preferably" or "prefers" which identify a desirable or discretionary item or factor. (As opposed to a “mandatory” item or factor.)

"Evaluation Committee" means a body appointed by City management to perform the evaluation of offeror proposals.

"Evaluation Committee Report" means a report prepared by the Procurement Manager and the Evaluation Committee for submission to appropriate approval authorities for contract award that contains all written determinations resulting from the conduct of a procurement requiring the evaluation of competitive sealed proposals.

"Finalist" is defined as an offeror who meets all the mandatory specifications of this Request for Proposal and whose score on evaluation factors is sufficiently high to merit further consideration by the Evaluation Committee.

"Mandatory" refers to the terms "must", "shall", "will", "is required" or "are required" which identify a mandatory item or factor. (As opposed to a “desirable” item or factor.) Failure to meet a mandatory item or factor will result in the rejection of the offeror's proposal.

"Offeror" is any person, corporation, or partnership who chooses to submit a proposal.

"Procuring agency of the City" means the department or other subdivision of the City of Truth or Consequences that is requesting the procurement of services or items of tangible personal property.

"Purchase Order” or "PO" means the document which directs a Auditor to deliver items of tangible personal property or services pursuant to an existing, valid contract.

"Purchasing” means the City of Truth or Consequences Purchasing Office or the City’s Purchasing Agent.

"Purchasing Agent" or "PA" means the Purchasing Agent for the City of Truth or Consequences.

"Request for Proposals" or "RFP" means all documents, including those attached or incorporated by reference, used for soliciting proposals.

"Responsible Offeror" means an offeror who submits a responsive proposal and who has furnished required information and data to prove that their financial resources, production or service facilities, personnel, service reputation and experience are adequate to make satisfactory delivery of the services or items of tangible personal property called for in this proposal.

"Responsive Offer" or "Responsive Proposal" means an offer or proposal which conforms in all material respects to the requirements set forth in the request for proposals. Material respects of a request for proposals include, but are not limited to, price, quality, quantity and delivery requirements.

“Statement of Compliance” and “Statement of Concurrence” mean an express statement, by the offeror in their proposal, which they agree with or agree to the stated requirement(s). Possible examples of acceptable responses include “The [NAME HERE Company] agrees to comply with this requirement.” and “The [NAME HERE Company] concurs with this requirement.

F. PROCUREMENT LIBRARY

The Procurement Library consists of the following documents which may be accessed by their associated Internet links:

- New Mexico Procurement Code http://www.nmonesource.com

- City of Truth or Consequences BidNet Direct City of Truth or Consequences - Bid Opportunities and RFPs | BidNet Direct

II. CONDITIONS GOVERNING THE PROCUREMENT

This section of the RFP contains the schedule for the procurement, describes the major procurement events and contains the general requirements governing the procurement.

A. SEQUENCE OF EVENTS

The Chief Procurement Officer will make every effort to adhere to the following schedule

*Contract award is subject to approval of the Board of City Commissioners.

B. EXPLANATION OF EVENTS

The following paragraphs further detail the activities listed in the sequence of events shown in Section II, Paragraph A.

1. Issue RFP

This RFP is being issued by the City of Truth or Consequences Purchasing Agent on behalf of the Board of the City’s Commission.

2. Return of “Acknowledgment of Receipt” Form for Distribution List

Potential offerors should hand deliver or return by facsimile or e-mail or registered or certified mail the “Acknowledgement of Receipt” form that accompanies this document (See Appendix A) to have their organization placed on the procurement distribution list. The form should be signed by an authorized representative of the organization, dated and returned by the close of business on the date indicated in Section II.A (Sequence of Events), above.

The procurement distribution list will be used to notify those that submitted the form of any written responses to questions and any RFP amendments. Failure to return this form shall constitute a presumption of receipt and rejection of the RFP, and the potential offeror's organization name shall not appear on the distribution list.

3. Pre-Proposal Conference

There is not a Pre-Proposal Conference associated with this procurement.

4. Deadline to submit written questions

Potential offerors may submit written questions as to the intent or clarity of this RFP until 2:00 PM MDT on the date indicated in Section II.A (Sequence of Events), above. All written questions must be sent by e-mail to the Chief Procurement Officer (See Section I, Paragraph D.)

5. Response to written questions/RFP Amendments

Written responses to written questions and any RFP amendments will be provided to all potential offerors that have returned the “RFP Question Submittal form” Form found at EXHIBIT A. The “RFP Question Submittal form” will accompany the posted distribution package. The form should be signed by the offeror's representative, dated, and hand-delivered or returned by facsimile or e-mail or by registered or certified mail by the date indicated thereon. Failure to return this form shall constitute a presumption of receipt and withdrawal from the procurement process.

6. Submission of Proposal

OFFEROR PROPOSALS MUST BE RECEIVED FOR REVIEW AND EVALUATION BY THE PROCUREMENT MANAGER OR DESIGNEE NO LATER THAN 2:00 PM MDT ON THE DATE INDICATED IN SECTION II.A (SEQUENCE OF EVENTS), ABOVE. PROPOSALS RECEIVED AFTER THIS DEADLINE FOR ANY REASON WILL NOT BE ACCEPTED OR CONSIDERED.

The date and time of receipt will be recorded on each proposal. Proposals must be addressed and delivered to the Procurement Manager at the delivery address listed in Section I, Paragraph D. Proposals must be sealed and labeled on the outside of the package to clearly indicate that they are in response to the “ANNUAL FINANCIAL AUDIT SERVICES” Request for Proposals and should reference “RFP #2025-04-001.” Proposals submitted by facsimile or other electronic means WILL NOT BE ACCEPTED.

A public log will be kept of the names of all offerors submitting proposals. Pursuant to Section 13-1-116 NMSA 1978, the contents of any proposal shall not be disclosed to competing offerors prior to contract award.

7. Proposal Evaluation

The evaluation of proposals will be performed by an Evaluation Committee appointed by City management. This process will take place during the time period indicated in Section II.A (Sequence of Events), above. During this time, the Procurement Officer may at her option initiate discussions with offerors who submit responsive or potentially responsive proposals for the purpose of clarifying aspects of the proposals, but proposals may be accepted and evaluated without such discussion. Discussions SHALL NOT be initiated by the Offerors.

8. Notification of Finalists

The Evaluation Committee may select, and the Procurement Manager may notify finalist offerors on the date indicated in Section II.A (Sequence of Events), above. Only finalists will be invited to participate in the subsequent steps of the procurement. The Evaluation Committee reserves the right not to utilize the finalist process if they deem it in the best interest of the City.

9. Best and Final Offers

Finalists may be asked to submit revisions to their proposals for the purpose of obtaining the best and final offers on the date indicated in Section II.A (Sequence of Events), above.

10. Oral Presentations

Finalist Offerors may be required to make an oral presentation to the Evaluation Committee. If so required, the Procurement Manager will schedule the time for each Offeror’s presentation. All presentations will be made in a location to be specified in Truth or Consequences, NM 87901. Each presentation will be limited to a fixed amount of time as designated by the Procurement Manager in the Oral Presentation requirement notification.

11. Contract Negotiations

If necessary, contract negotiations shall commence with the most advantageous offeror no later than the date indicated in Section II.A (Sequence of Events), above. In the event that mutually agreeable terms cannot be reached within the time specified, the City reserves the right to finalize a contract with the next most advantageous offeror without undertaking a new procurement process.

12. Contract Award

After review of the Evaluation Committee Report and the tentative contract, the Purchasing Agent anticipates the Board of City Commissioners will award the contract on the date indicated in Section II.A (Sequence of Events), above. This date is subject to change at the discretion of the Purchasing Agent or the Board of City Commissioners.

Any contract awarded shall be awarded to the offeror whose proposal is most advantageous to the City, taking into consideration the evaluation factors set forth in this RFP. The most advantageous proposal may or may not have received the most points.

13. Protest Deadline

Any protest by an offeror must be timely, in conformance with, and will be governed by Sections 13-1-172 through 13-1-176 NMSA 1978 and the City’s Policy. The fifteen (15) day protest period for timely offerors shall begin on the day following the contract award and will end at 2:00 PM MDT on the date indicated in Section II.A (Sequence of Events), above. Protests must be written and must include the name and address of the protestor and the Request for Proposals number. It must also contain a statement of grounds for protest including appropriate supporting exhibits, and it must specify the ruling requested from the Chief Procurement Officer. The protest must be delivered to the Chief Procurement Officer.

City of Truth or Consequences Attn. Jordan Javier, Chief Procurement Officer

NOTE: Protests received after the deadline will not be accepted.

C. GENERAL REQUIREMENTS

This procurement will be conducted in accordance with the New Mexico Procurement Code (13-1-28 NMSA 1978) and the City of Truth or Consequences’ Procurement Policy.

1. Acceptance of Conditions Governing the Procurement

Offerors must indicate their acceptance of the Conditions Governing the Procurement in the letter of transmittal form (see Appendix D). Submission of a proposal constitutes acceptance of the Evaluation Factors contained in Section V of this RFP.

2. Incurring Cost

Any cost incurred by the offeror in preparation, transmittal, presentation of any proposal or material or negotiation associated with their response to this RFP shall be borne solely by the offeror.

3. Prime Auditor Responsibility

Any contract that may result from this RFP shall specify that the prime Auditor is solely responsible for fulfillment of the contract with the City. The City will only make contract payments to the prime Auditor.

4. Sub-Auditors

The use of Sub-Auditors must be clearly explained in the proposal, and each must be identified by name. The prime Auditor shall be wholly responsible for contract performance whether Sub-Auditors are used. Substitution of Sub-Auditors, after contract award, must receive prior written approval of the City Purchasing Office.

5. Amended Proposals

An offeror may submit an amended proposal before the deadline for receipt of proposals. Such amended proposals must be complete replacements for a previously submitted proposal and must be clearly identified as such in the transmittal letter. City personnel will not merge, collate, or assemble proposal materials.

6. Offerors' Rights to Withdraw Proposal

Offerors will be allowed to withdraw their proposals at any time prior to the deadline for receipt of proposals. The offeror must submit a written withdrawal request signed by the offeror's duly authorized representative addressed to the Procurement Manager. The approval or denial of withdrawal requests received after the deadline for receipt of the proposals is governed by the applicable procurement regulations.

7. Proposal Offer Firm

Responses to this RFP, including proposal prices, will be considered firm for hundred and twenty (120) days after the due date for receipt of proposals or ninety (90) days after the due date for the receipt of a best and final offer, if one is solicited.

8. Disclosure of Proposal Contents

The proposals will be kept confidential until a contract is awarded by the awarding authority. At that time, all proposals and documents pertaining to the proposals will be open to the public, except for material which is proprietary or confidential. The Procurement Manager will not disclose or make public any pages of a proposal on which the offeror has stamped or imprinted "proprietary" or "confidential" subject to the following requirements.

Proprietary or confidential data shall be readily separable from the proposal in order to facilitate eventual public inspection of the remaining portions of the proposal. Confidential data is normally restricted to confidential financial information concerning the offeror's organization and data that qualifies as a trade secret in accordance with the Uniform Trade Secrets Act, 57-3A-I to 57-3A-7 NMSA 1978. The price of products offered, or the cost of services proposed shall not be designated as proprietary or confidential information.

If a request is received for disclosure of data for which an offeror has made a written request for confidentiality, the Purchasing Agent shall examine the offeror's request and make a written determination that specifies which portions of the proposal should be disclosed. Unless the offeror takes legal action to prevent the disclosure, the proposal will be so disclosed. The proposal shall be open to public inspection subject to any continued prohibition on the disclosure of confidential data.

9. No Obligation

This procurement in no manner obligates the City of Truth or Consequences or any of its departments or other subdivisions to the eventual lease, purchase, etc., of any tangible personal property offered or services proposed until a valid written contract is approved by the Purchasing Agent and other required approval authorities.

10. Termination

This RFP may be canceled at any time and any and all proposals may be rejected in whole or in part when the City determines such action to be in the best interest of the City.

11. Sufficient Appropriation

Any contract awarded as a result of this RFP process may be terminated if sufficient appropriations or authorizations do not exist. Such termination will be affected by sending written notice to the Auditor. The City's decision as to whether sufficient appropriations and authorizations are available will be accepted by the Auditor as final.

12. Legal Review

The City requires that all offerors agree to be bound by the General Requirements contained in this RFP. Any offeror concerns must be promptly brought to the attention of the Chief Procurement Officer.

13. Governing Law

This procurement and any agreement with offerors that may result shall be governed by the laws of the State of New Mexico.

14. Basis for Proposal

Only information supplied by the City in writing through the Chief Procurement Officer or in this RFP should be used as the basis for the preparation of offeror proposals.

15. Contract Terms and Conditions

The contract between the City and the Auditor will follow the format specified by the City and contain the terms and conditions set forth in Appendix B, Sample Contract. However, the City reserves the right to negotiate with a successful offeror provision in addition to those contained in this RFP. The contents of this RFP, as revised or supplemented, and the successful offeror's proposal will be incorporated into and become part of the contract.

Should an offeror object to any of the City’s terms and conditions, as contained in this Section or in Appendix B, that offeror must propose specific alternative language. The City may or may not accept the alternative language, at the City’s sole discretion. General references to the offeror's terms and conditions or attempts at complete substitutions are not acceptable to the City and could lead to disqualification of the offeror's proposal.

Offerors must provide a brief discussion of the purpose and impact, if any, of each proposed change followed by the specific proposed alternate wording in order for the proposed alternate wording to be considered.

16. Offeror’s Terms and Conditions

Offeror’s must submit with their proposal a complete set of any additional terms and conditions which they request be included in a contract negotiated with the City. The City may or may not accept the additional language, at the City’s sole discretion.

17. Contract Deviations

Any additional terms and conditions, which may be the subject of negotiation, will be discussed only between the City and the selected offeror and shall not be deemed an opportunity to amend the Offeror’s proposal.

18. Offeror Qualifications

The Evaluation Committee may make such investigations as necessary to determine the ability of the offeror to adhere to the requirements specified within this RFP. The Evaluation Committee will reject the proposal of any offeror who is not a responsible offeror or fails to submit a responsive offer as defined in Sections 13-1-83 and 13-1-85 NMSA 1978.

19. Right to Waive Minor Irregularities

The Evaluation Committee reserves the right to waive minor irregularities. The Evaluation Committee also reserves the right to waive mandatory requirements provided that all of the otherwise responsive proposals failed to meet the same mandatory requirements or doing so does not otherwise materially affect the procurement. This right is at the sole discretion of the Evaluation Committee.

20. Change in Auditor Representatives

The City reserves the right to require a change in Auditor representatives if the assigned representatives are not, in the opinion of the City, meeting its needs adequately.

21. Notice

The Procurement Code, Sections 13-1-28 through 13-1-199 NMSA 1978, imposes civil and misdemeanor criminal penalties for its violation. The State of New Mexico criminal statutes also impose felony penalties for bribes, gratuities and kick-backs.

22. City Rights

The City reserves the right to accept all or a portion of an offeror's proposal.

23. Right to Publish

Throughout the duration of this procurement process and contract term, potential offerors and Auditors must secure from the City written approval prior to the release of any information that pertains to the potential work or activities covered by this procurement or the subsequent contract. Failure to adhere to this requirement may result in disqualification of the Offeror’s proposal or termination of the contract.

24. Ownership of Proposals

All documents submitted in response to the RFP shall become the property of the City. However, any technical or user documentation submitted with the proposals of non-selected offerors may be returned after the expiration of the protest period, by request, at the expense of the Offeror.

25. Ambiguity, Inconsistency or Errors in RFP

Offerors shall promptly notify the Procurement Manager, in writing, of any ambiguity, inconsistency or error which they discover upon examination of the RFP.

26. Competition

By submitting a proposal, the offeror certifies that they have not, either directly or indirectly, entered into any action in restraint of full competition in connection with the proposal submitted to the City.

27. Use by Other Government Entities

By submitting a proposal, offeror indicates that they understand and agree that other government entities within the State of New Mexico, or as otherwise allowed by their governing directives, may contract for the goods or services included in this procurement document with the awarded Auditor(s). Contractual engagements accomplished under this provision shall be solely between the awarded vendor and the contracting government entity with no obligation or liability by the City of Truth or Consequences.

28. Confidentiality

Any confidential information provided to, or developed by, the Auditor in the performance of any agreement resulting from this RFP shall be kept confidential and shall not be made available to any individual or organization by the Auditor without the prior written approval of the City.

29. Electronic mail address required

A large part of the communication regarding this procurement will be conducted by electronic mail (e-mail). Offeror must have a valid e-mail address to receive this correspondence.

30. Use of Electronic Versions of this RFP

This RFP is being made available by electronic means. If accepted by such means, the offeror acknowledges and accepts full responsibility to ensure that no changes are made to the RFP. In the event of conflict between a version of the RFP in the offeror’s possession and the version maintained by the City, the version maintained by the City shall govern.

III. RESPONSE FORMAT AND ORGANIZATION

A. NUMBER OF RESPONSES

Offeror’s may submit only one (1) response to this RFP.

B. NUMBER OF COPIES

Offerors shall deliver four (4) identical copies of their proposal to the location specified in Section I, Paragraph D on or before the closing date and time for receipt of proposals. (Identical copies are defined as the original plus the number of additional copies needed to fulfill the requirement. For example, a requirement for four (4) identical copies would be fulfilled by submitting the original and three [3] copies of the original.) The original copy should be clearly marked “ORIGINAL” on the front cover and shall contain original signatures. A responsive proposal shall be submitted electronically (on CD format included in packet, or via email to CPO to the address indicated above). (An exception to this requirement is made for the “Cost Response Form” and the “Campaign Contribution Disclosure Form”. See Section III.C.1, immediately below.)

C. PROPOSAL FORMAT

All proposals must be typewritten on standard 8 1/2 x 11 paper (larger paper is permissible for charts, spreadsheets, etc.) and placed within a binder with tabs delineating each section.

1. Proposal Organization- The proposal must be organized and indexed in the following format and must contain, as a minimum, all listed items in the sequence indicated.

a. Letter of Transmittal Form (See Appendix D)

b. Table of Contents

c. Cost Response Form* (See Appendix C) in a sealed and labeled envelope

d. Campaign Contribution Disclosure Form* (See Appendix E) in a sealed and labeled envelope

e. Proposal Summary (optional)

f. Resident Veteran Preference* (See Appendix F)

g. Response to Specifications* Exhibit A- RFP Question From

h. Other Supporting Material**

*Only the single original needs to be provided and must be secured in the binder marked “Original” in the required sealed and labeled envelope.

**See also Section III.C.3., immediately below.

Within each section of their proposal, offerors should address the items in the order in which they appear in this RFP. Any forms provided in the RFP must be thoroughly completed and included in the appropriate section of the proposal. Unless otherwise specified in this RFP, all discussion of proposed costs, rates or expenses must occur only on the Cost Response Form, Appendix C.

Any proposal that does not adhere to these requirements may be deemed non-responsive and rejected on that basis.

A proposal summary may be included by offerors to provide the Evaluation Committee with an overview of the technical and business features of the proposal; however, this material will not be used in the evaluation process unless specifically referenced from other portions of the offeror's proposal.

2. Letter of Transmittal Form

The Letter of Transmittal Form at Appendix D must be completed, signed and included with the offeror’s proposal.

3. Other Supporting Materials

Offerors may attach other materials which they feel may improve the quality of their responses. However, these materials may not be reviewed by members of the Evaluation Committee and will not be scored.

IV. SPECIFICATIONS

A. INFORMATION

1. Background

REQUIREMENTS- STATE AUDITOR RULE (“SAR”)

SAR-2.2.2.1. GENERAL CRITERIA - Scope of Annual Financial Audit:

(1) The financial audit shall cover the entire financial reporting entity including the primary government and any component units of the primary government. In accordance with updated state audit rules per fiscal years.

(a) Entities must be reported as component units within the financial statements of the primary government, if the primary government is financially accountable for the entity (GASBS 14 Paragraph 10) or if the nature and significance of the entity to the primary government warrants inclusion (GASBS 39 Paragraphs 5 and 6). The primary government, in conjunction with its auditors, must determine whether an agency that is a separate legal entity from the primary government is a component unit of the primary government as defined by GASBS 14 (as amended) and 39. The flowchart at GASBS 61 Paragraph 68 is useful for this determination. All agencies that meet the criteria of GASBS 14 (as amended) or 39 to be a component unit of the primary government must be included with the audited financial statements of the primary government by discrete presentation unless otherwise approved by the State Auditor. Exceptions may occur when an agency requires presentation other than discrete. An exemption must be requested by the agency, in writing, from the State Auditor in order to present a component unit as other than a discrete component unit. The request for an exemption must include a detailed explanation, conclusion and supporting documentation justifying the request for blended component unit presentation. The approval of the State Auditor for the exemption is required prior to issuing the report. Per Paragraph 1.01 of AAG-SLV, not for-profit component units should be reported using the government financial reporting format if they have one or more of the following characteristics: popular election of officers or appointment (or approval) of a controlling majority of the members of the organization’s governing body by officials of one or more state or local governments; the potential for unilateral dissolution by a government with the net assets reverting to the government; or the power to enact and enforce a tax levy. If a not-for-profit does not qualify to be reported using the governmental format under the above criteria, that fact should be explained in the notes to the financial statements (Summary of Significant Accounting Policies – Financial Reporting Entity).

(b) If a primary government has no component units, that fact should be disclosed in the notes to the financial statements (Summary of Significant Accounting Policies – Financial Reporting Entity). If the primary government has component units that are not included in the financial statement due to materiality, that fact must also be disclosed in the notes. However, if the primary government is a state agency, department or board, or public institution of higher education or public post-secondary educational institution, county, municipality or public school district, Section 6-5A-1(B)(4)(a) NMSA 1978 requires all 501(c) 3 component unit organizations with a gross annual income in excess of $250,000 to receive an audit. Such component units cannot be excluded from the audit based on the “materiality” criterion.

(d) The level of planning materiality required by the State Auditor for component units is at the individual fund level. This requirement does not apply to the audit of the statewide CAFR. College and university component units have a different materiality level. See Paragraph (3) of Subsection E of Section 2.2.2.12 NMAC.

(2) Audits of state and local governmental agencies shall be comprised of a financial and compliance audit of the financial statements and schedules as follows:

(a) The level of planning materiality required by the State Auditor is at the individual fund level. The State Auditor requires that the budgetary comparison statements be audited and included as part of the basic financial statements consistent with GASBS 34 footnote 53 and AAG-SLV 11.13. The level of planning materiality described in the AICPA Audit and Accounting Guide, State and Local Governments, paragraphs 4.72 to 4.73, should be used for the statewide CAFR audit.

(c) The auditor must audit the following required supplemental information, if applicable, and include it in the auditor’s opinion (AAG-SLV 14.65). Budgetary comparisons for the general fund and major special revenue fund data presented on a fund, organization, or program structure basis because the budgetary information is not available on the GAAP fund structure basis for those funds (GASB Statement No. 41, Budgetary Comparison Schedules—Perspective Differences an amendment of GASB Statement No. 34).

(vi) GASBS 84 Accounting Practices and GASBS 87 Leases

(g) The audit engagement and audit contract compensation include AU-C 720 procedures and auditor reporting be performed on a schedule of vendor information. The agency shall prepare a schedule of vendors for purchases exceeding $60,000 (excluding gross receipts tax) that includes the following information: names of all vendors that responded to requests for bids or requests for proposals during the fiscal year; whether the vendor was an instate vendor or an out-of-state vendor; if the vendor was in-state and chose the veterans’ preference instead of the in-state preference; a short description of the scope of work; the name of the vendor that was awarded the contract; and the dollar amount of the resulting contract. This “Schedule of Vendors” must be included in the Other Information section of the audit report.

SAR-2.2.2.10 B. Budget Adjustment Requests:

Legislation regarding budget adjustment requests (BARs) prevents or restricts many budget transfers or increases. The IPA shall satisfy himself that these restrictions are not being violated by direct payment or other unauthorized transfers.

SAR-2.2.2.10 C. Reverting or Non-Reverting Funds:

Legislation can designate a fund as reverting or non-reverting. The IPA must review the state law that appropriated funds to the agency to confirm…