REQUEST FOR PROPOSALS FOR AUDITING SERVICES

The City of Prairie du Chien, Wisconsin invites qualified independent accountants, licensed to practice in the State of Wisconsin, to submit proposals to conduct an audit of its financial accounts and records in accordance with the following specifications listed. The audit contract will be for a term of five (5) years, for the years ending December 31st 2018, 2019, 2020, 2021 and 2022.

All proposals must address each requirement set forth in the Request for Proposals (RFP) in order to be considered.

SELECTION CRITERIA – In evaluating the proposals, cost will be an important factor, but not the sole decisive criteria. The following criteria will be considered in the review process:

1) Proposal Format

2) Qualifications of Work Team

3) Firm Resources

4) References

5) Price

RIGHTS RESERVED – The City of Prairie du Chien reserves the right to waive any irregularities which may or may not be in the City’s best interest. The City reserves the right to accept or reject any and all bids, and may select the bid which in the opinion of the City is the most advantageous to the City of Prairie du Chien

PROPOSAL DUE DATE:

1) Proposals are due by 4:30 PM on Friday, December 14th, 2018 to Prairie du Chien City Hall, 214 East Blackhawk Avenue, Prairie du Chien, WI 53821.

2) Proposals shall include resumes and work experience of the auditors that will be assigned to the City of Prairie du Chien Audit.

3) Proposals shall include at least five (5) municipal references of similar size and complexity to Prairie du Chien including names and contact information

FOR MORE INFORMATION – Questions should be addressed to the City Administrator (Chad Abram cabram@prairieduchien-wi.gov ) or City Clerk/Treasurer (Tina Fuller tfuller@prairieduchien-wi.gov ) or at 608-326-6406.

NEWSPAPER ADVERTISEMENT

REQUEST FOR PROPOSALS FOR AUDITING SERVICES

The City of Prairie du Chien, Wisconsin invites qualified independent accountants, licensed to practice in the State of Wisconsin, to submit proposals to conduct an audit of its financial accounts and records in accordance with the following specifications listed. The audit contract will be for a term of five (5) years, for the years ending December 31st 2018, 2019, 2020, 2021 and 2022. All proposals must address each requirement set forth in the Request for Proposals (RFP) in order to be considered.

SELECTION CRITERIA – In evaluating the proposals, cost will be an important factor, but not the sole decisive criteria. The following criteria will be considered in the review process:

1) Proposal Format

2) Qualifications of Work Team

3) Firm Resources

4) References

5) Price

RIGHTS RESERVED – The City of Prairie du Chien reserves the right to waive any irregularities which may or may not be in the City’s best interest. The City reserves the right to accept or reject any and all bids, and may select the bid which in the opinion of the City is the most advantageous to the City of Prairie du Chien

PROPOSAL DUE DATE:

1) Proposals are due by 4:30 PM on Friday, December 14th, 2018 to Prairie du Chien City Hall, 214 East Blackhawk Avenue, Prairie du Chien, WI 53821.

2) Proposals shall include resumes and work experience of the auditors that will be assigned to the City of Prairie du Chien Audit.

3) Proposals shall include at least five (5) municipal references of similar size and complexity to Prairie du Chien including names and contact information

FOR MORE INFORMATION – Questions should be addressed to the City Administrator (Chad Abram cabram@prairieduchien-wi.gov ) or City Clerk/Treasurer (Tina Fuller tfuller@prairieduchien-wi.gov ) or at 608-326-6406.

QUALIFICATION INFORMATION REQUESTED

A. Profile of the Proposer

1) State the type of firm (local, regional, and national, etc.), the location of the office from which auditors are to work from, and the number of staff by job classification at that office.

2) State any regulatory action taken by an oversight body against the firm.

B. Qualifications of the Proposer

1) Describe the local and/or regional office’s recent audit (and other requested service) experience with local governments. (This may be included as an appendix.)

2) Identify the supervisors (e.g. partner, manager, auditor-in-charge) and the staff who are expected to work on the audit. Provide resumes (which may be included as appendices) showing relevant past experience, education, training, etc.

3) List the qualifications of the proposer’s staff to audit computerized systems.

4) Describe the firm’s participation, if any, in professionally-sponsored quality control review programs or comparable programs.

5) List the names, addresses, and telephone numbers of client officials for several engagements listed in 1, above, who may be contracted.

6) List experience in working with TIF Districts, grants (state and federal), debt management, water and sewer utility reporting, and rate case work.

7) List experience in helping communities comply with GASB regulations and rules.

C. Requested Format for Proposals

1) In order to simplify the evaluation process and obtain the maximum degree of comparison, the City is requiring prospective auditors to submit proposals in the format and manner prescribed by this section.

a) Title Page - Show the RFP project title, name of the proposer firm, address, telephone number, name of the contact person, and date.

b) Letter of Transmittal - (Limit to one or two pages)

1) Briefly state the proposer’s understanding of the work to be done and make a positive commitment to perform the work within the required time period.

2) State the all-inclusive fee for which the work will be done.

3) State the name(s) of the person(s) who will be authorized to make representations for the proposer, along with the person’s title, address, and telephone number.

c) Table of Contents - Include a clear identification of the material by section and by page number. Such sections will be those identified below.

d) Proposer’s Approach to the Audit

1) State the proposer’s understanding of the services to be performed and the work products to be provided as defined in “Nature of Services Required” and “Report Requirements” of this RFP.

2) Submit a work plan to accomplish the scope of services (within the required time frame presented in “Timing Considerations” of this RFP). The work plan should include time estimates for each of the significant segments of the work and the staff level to be assigned. Include a brief discussion of the audit procedures to be used in the audit process.

e) Compensation - State the total hours and hourly rate required by staff classification for each type of service requested in “Nature of Services Required” and the resulting all-inclusive maximum fee by year.

f) Additional Services

1) Give any additional information, not specifically requested previously, considered essential to the proposal. If there is no additional information to present, state “There is no additional information we wish to present”.

2) If additional work, such as non-audit work or work not included in the scope of the audit, is required, your hourly rate charged will be $___________________. Will travel time be charged? Yes________ No_________. If yes, at what rate? $_______________. Will the City be billed for phone time and charges? Yes________ No__________.

INFORMATION FURNISHED TO PROPOSER

A. General Information

1) The City of Prairie du Chien has a population of 5,911 and a total operating expense budget for water ($965,588.07), wastewater ($1.122 million), and general funds ($5.5 million) for 2018 of $7.5 million. The current work force of the City is 46 full time employees.

2) The most recent audit of the City was performed in 2018 for the period ending December 31st 2017 by Johnson Block & Co. The type of opinion given was unqualified on the general purpose financial statements. Modifications have not been made to provide for the elimination of such qualifications for the periods to be audited under this proposal. A copy of the audit report of the City is available from Chad Abram, City Administrator, at 214 East Blackhawk Avenue, Prairie du Chien, WI., 53821.

B. Descriptions of Records

1) The City utilizes the following basis of accounting for recording revenues and expenditures/expenses in the various funds.

a) Governmental and Fiduciary Fund Types. Revenues and expenditures of the governmental and fiduciary fund types are recorded using the modified accrual basis of accounting. Under this basis, expenditures are recognized in the period the obligations are incurred, except for principal and interest on long term debt, which are recognized when due. Revenues are recognized when they are both measurable and available to finance expenditures during the fiscal period or they are of a material amount and not received at the normal time of receipt.

b) Proprietary Fund. The full accrual basis of accounting is used for all revenues and expenses of proprietary funds of the Water Utility and Sewer Utility. Under the full accrual basis, revenues are recognized when they are earned and expenses are recognized when incurred.

C. Nature of Services Required

1) Required services consist of an examination of the City’s financial statements of all fund types and account groups. The funds and account groups to be included in the audited financial statements are listed below: General Fund; Special Revenue Funds (CDBG Funds & TIF Districts); Enterprise Funds (Water & Sewer); Trust and Agency Funds; Debt Service Funds; Capital Projects Funds, and; General Long-Term Debt Obligations. This examination is to be performed in accordance with generally accepted auditing standards as promulgated by the American Institute of Certified Public Accountants and the Single Audit Act.

2) In addition to conducting the aforementioned audit(s), the following services are required:

a) Recording and posting of closing and audit entries and recording and entering new budgets for the year ending December 31st 2018, 2019, and 2020, 2021 and 2022.

b) Compilation of the Department of Revenue’s Financial Report Form for the year ending December 31st 2018, 2019, 2020, 2021 and 2022.

c) Compilation of the Public Service Commission’s Municipal Utility Annual Report for the Water Utility for the year ending December 31st 2018, 2019, 2120, 2021 and 2022.

D. Report Requirements

1) The following auditor’s reports are expected at the completion of the audit:

a) A report that examines the financial statements of the City of Prairie du Chien for the years ended December 31st 2018, 2019, 2020, 2021 and 2022. The examination will be made in accordance with the generally accepted auditing standards adopted by the American Institute of Certified Public Accountants and the Single Audit Act and will include tests of accounting data and procedures considered necessary under the circumstances. The findings will be conveyed to the City Council in a formal report. While the objective of the examination is the expression of an unqualified opinion on the financial statements referred to above, the opinion may have to be qualified or denied as the facts and circumstances dictate. The ordinary examination incident to the expression of an opinion on financial statements is not designed and cannot be relied upon to disclose defalcations or other similar irregularities. Should such defalcations and other similar irregularities come to the attention of the auditor, the auditor will discuss them with you to determine what course of action should be taken. It is understood that management has the responsibility for proper recording of transactions in the books of account, for the safeguarding of assets, and for substantial accuracy of the financial statements. Such statements are the representation of management. Our examination is to include the following: General Fund; Special Revenue Funds; Enterprise Funds (Water Utility and Sewer Utility); Trust and Agency Funds; Debt Service Funds, and; Capital Projects Fund.

2) The accounting firm will be expected to print and bind the financial statements (and schedules) described in 1 above.

3) The accounting firm will hold an exit conference with the appropriate City personnel to review draft copies of the aforementioned reports before such reports are presented to the governing body.

4) The number of copies of each report discussed in 1, above, will be as follows:

These reports should be delivered to: Aaron Kramer, City Administrator, 214 East Blackhawk Avenue, Prairie du Chien, WI 53821 E. Time Considerations

1) Proposers may request to inspect records or obtain clarification on this RFP any time prior to the bid opening.

2) Two (2) copies of the proposals will be accepted by: Chad Abram, City Administrator, 214 East Blackhawk Avenue, Prairie du Chien, WI 53821 until 4:30 P. M. on Friday, December 14th 2018.

3) Proposer interviews will be held if necessary.

4) The audit award is scheduled for the December 18th 2018 Common Council meeting, but is subject to change.

5) The tentative date for which preliminary work may commence is January 1st 2019.

6) The tentative date for which post-closing work may commence is March 1st, on each of the succeeding years.

7) The draft reports will be reviewed with appropriate City personnel at an exit conference to be held by in May, on each of the succeeding years. Any request to extend this deadline must be submitted in written form to the City Administrator, who shall or shall not extend such deadline.

8) The final audit reports will be completed by June 15th and a presentation of such reports will be made to the governing body at a mutually agreed upon time. Any request to extend this deadline must be submitted in written form to the City Administrator, who shall or shall not extend such deadline.

9) The compilation report to accompany the Department of Revenue’s Financial Report Form will be completed as required by the Department of Revenue.

10) The compilation report to accompany the Public Service Commission’s Municipal Utility Annual Report will be completed as required by the commission.

F. Billings

1) Progress payments may be billed monthly for services rendered in the prior month. Final payment will be made after receipt of the final reports and presentation to and acceptance by the governing body.

G. Other Proposal Information

1) If it becomes necessary to revise any part of this RFP or otherwise provide additional information, an addendum will be issued by the City and furnished to all firms that have received copies of the original RFP.

2) All proposals become the property of the City.

3) The City is not liable for any cost incurred by the prospective auditors in replying to this RFP.

4) Audit fees of the prior year(s) are available upon request.