RFP B-25-014 Financial Auditing Services.pdf

Request for Proposal

B-25-014

Financial Auditing Services

May 7, 2025

Metro Water Recovery

6450 York Street

Denver, CO 80229-7499 www.MetroWaterRecovery.com http://www.metrowaterrecovery.com/

RFP Number: B-25-014

Title: Financial Auditing Services

Proposal Due Date: June 4, 2025 Time: 5:00 PM MT

Issuing Office: Metro Water Recovery

Attn: Jason Lee

Purchasing Division

6450 York Street

Denver, CO 80229-7499

Jlee@MetroWaterRecovery.com

Vendors must ensure that proposals are submitted in accordance with this request for proposal

(RFP) by the due date and time stated herein.

Late proposals will not be accepted nor evaluated.

Proposals that do not comply with the requirements of this RFP may be rejected.

Vendors are encouraged to read the entire RFP prior to submitting a proposal. Metro Water

Recovery reserves the right to make award without discussions, based on initial proposals received.

Therefore, vendors should ensure their best terms and pricing are included with initial proposals.

Likewise, Metro Water Recovery may conduct discussions with one, some, or all vendors as determined, in their sole discretion, to be in Metro Water Recovery’s best interest. Metro Water

Recovery further reserves the right to cancel this RFP and/or reject offers, without obligation, as determined in the best interest of Metro Water Recovery. Any proposal that takes exception to any terms and conditions, including the Short Form Agreement may, at the sole discretion of Metro

Water Recovery, be excluded from further consideration.

General Information mailto:Jlee@MetroWaterRecovery.com

Table of Contents Section 1 Introduction and Background

1.1 Introduction

1.2 Summary of Project Objective

1.3 About Metro Water Recovery

Section 2 Instructions to Vendors

2.1 Schedule of Events

2.2 Administrative Information

Section 3 Scope of Project

3.1 Statement of Work

3.2 Scope of Services

Section 4 Miscellaneous Provisions

4.1 Open Records

4.2 Arrears Vendor

4.3 Independent Proposal

4.4 Work Quality

4.5 Incurred Costs

4.6 Taxes

4.7 Media Release

4.8 Gifts and Gratuities

4.9 Reservation of Rights, No Obligation, Right of Rejection, and Multiple Award

Section 5 Proposal Evaluation

5.1 Evaluation

5.2 Contract Negotiation

5.3 Dissemination of Evaluation and/or Award Information

Section 6 Proposal Response Requirements

6.1 Transmittal Letter and Executive Summary

6.2 Company Background and References

6.3 Proposed Product(s) and Services

6.4 Proposed Team Resources

6.5 Price Proposal

Attachment A: Metro 2024 Annual Comprehensive Financial Report

Attachment B: Metro 2024 Defined Benefit Retirement Plan

Attachment C: Short Form Agreement (SFA)

SFA Exhibit A, Scope of Services

SFA Exhibit C, Fee Schedule

NOTE: The attachment is the standard Metro Water Recovery contract. Metro Water Recovery will only consider exceptions to section 1.0 Services, 2.0 Payment and 3.0 Insurance. Any exceptions must be specifically stated with initial proposals. Metro Water Recovery may accept or reject such exceptions at its sole discretion. Other than these limited enumerated exceptions, non-acceptance of the standard Metro Water Recovery contract will render a vendor non-responsive and ineligible for award, at Metro Water Recovery’s sole discretion.

By submitting a proposal, vendors agree to these terms.

Section 1 Introduction and Background

1.1 Introduction

This RFP is to solicit proposals from vendors capable of satisfying the needs of Metro Water

Recovery as stated herein. In addition to soliciting written responses, this document provides information to assist vendors in preparing their responses and facilitates the evaluation process.

1.2 Summary of Project Objective

Metro is seeking proposals from experienced and qualified Certified Public Accounting (CPA) firms to provide annual financial audit services.

1.3 About Metro Water Recovery

Metro Water Recovery is the wastewater treatment authority for most of Metropolitan Denver and parts of Northern Colorado. Metro Water Recovery is a Metropolitan sewage disposal district formed in 1961 and is a political subdivision of the State of Colorado.

Metro Water Recovery is committed to protecting the environment and providing for the community's future needs.

• Metro Water Recovery operates and maintains two treatment plants – the Robert W. Hite

Treatment Facility (RWHTF) and the Northern Treatment Plant (NTP) – the METROGRO

Farm, and its 230-mile Interceptor System.

• Metro Water Recovery serves approximately 2.2 million people within the 817-square mile service area.

• Metro Water Recovery treats on average 138 million gallons of wastewater per day from neighborhood sewer lines and removes more than 95% of the pollutants before discharging it into the South Platte River.

Metro Water Recovery’s mission is to protect the region’s health and environment by cleaning water and recovering resources.

Visit at www.MetroWaterRecovery.com http://www.metrowaterrecovery.com/

Section 2 Instructions to Vendors

2.1 Schedule of Events

The following RFP Schedule of Events represents the best estimate of the schedule Metro Water

Recovery will follow, which is subject to change at Metro Water Recovery’s discretion. Metro

Water Recovery reserves the right to add or delete events as may be necessary.

2.2 Administrative Information

All official communication with vendors will be via the Rocky Mountain E-Purchasing System

(Bidnet Direct) at https://www.bidnetdirect.com/colorado/metro_water_recovery prior to the

Proposal Due Date. Notices may include RFP addendums, modifications, questions and answers, clarifications to requirements, and award announcements. It is the responsibility of vendors to monitor Bidnet for any such notices. Communications outside of the Bidnet system must be approved by Metro Water Recovery. Vendors are required to acknowledge receipt of all addendums in the cover letter of their proposal.

Metro Water Recovery is requesting vendor proposals for the items or services described herein.

All proposals must be clear, concise, accurate, and legible. There must be no doubt as to the intent and scope of the proposal. Proposals may be withdrawn, in writing, at any time prior to the Proposal

Due Date and time.

Proposals shall be submitted as follows:

1. Proposals are due on or before the Proposal Due Date enumerated in the Event table

Event

Date and Time

RFP Posted on Bidnet

(https://www.bidnetdirect.com/colorado/metro_water

_recovery)

May 7, 2025

Written Inquiry Deadline May 21, 2025 @ 5:00PM MT

Response to Written Inquiries May 28, 2025

Proposal Due Date (must be submitted in Bidnet) June 4, 2025 @ 5:00PM MT

Oral Presentations July 15, 2025

12:00PM to 4:00PM MT

Notice of Award July 22, 2025 (estimated) https://www.bidnetdirect.com/colorado/metro_water_recovery https://www.bidnetdirect.com/colorado/metro_water_recovery https://www.bidnetdirect.com/colorado/metro_water_recovery included herein.

2. Unnecessarily elaborate proposals are not desired. Font size for basic narrative descriptions must be no smaller than 12 characters per inch. Proposals must be limited to 12 pages (not including cover page, table of contents, appendices)

3. Proposals should include all requirements as identified in Section 3.2 and Section 6.

4. The proposal shall present a full and complete description of how the vendor proposes to meet the scope requirements of this RFP.

5. Recent and relevant references for projects/contracts of similar size and scope.

6. A valid IRS Form W-9

The vendor and its employees will not disclose any written, printed, graphic, or electronically or magnetically recorded information furnished by Metro Water Recovery for the proposer’s use to any person except with Metro Water Recovery approval, and only to the extent necessary to perform the work under the Agreement. This also applies to the vendor’s employees, agents, and subcontractors.

All proposals should be valid for a minimum of 60 calendar days from the Proposal Due Date. All proposals and accompanying documentation will become the property of Metro Water Recovery at the Proposal Due Date.

Any person, vendor, corporation, or association submitting a proposal shall be deemed to have read and understood all the terms, conditions, and requirements in the RFP and SFA.

Vendors may make written inquiries concerning this RFP to obtain clarification of requirements.

No inquiries will be accepted after the Written Inquiry Deadline indicated in the Schedule of Events and no phone calls will be accepted. Metro Water Recovery requires that all inquiries be sent through Bidnet unless otherwise approved. Please ensure the RFP number and title is included in the subject line of all communications. Responses to inquiries may be published as addendums on

Bidnet in accordance with the Schedule of Events. Vendors should not rely on any other statements, either written or oral during the open solicitation period.

During an active solicitation, all communication shall be with the issuing office. Vendors should not contact and/or discuss this solicitation with any other Metro Water Recovery office or individual.

A Pre-proposal conference may be held in accordance with the Schedule of Events. While the conference is not mandatory, participation is highly encouraged. The format of the conference will be an overview of the RFP followed by questions and answers related to the requirements, RFP, and/or overall process. Metro Water Recovery will attempt to answer all questions at the conference; however, the conference is not a substitute for the written questions due in the Schedule of Events. Following the conference, Metro Water Recovery may post questions and answers on

Bidnet and/or make any necessary changes to the RFP via a formal addendum.

Section 3 Scope of Project

3.1 Statement of Work

Conduct an annual audit of Metro Water Recovery’s financial records and financial statements and issue an independent auditor’s report expressing an opinion on the fairness of the financial statements.

3.2 Scope of Services

Metro Water Recovery (Metro) is a single purpose governmental entity authorized by the State of

Colorado for the purpose of constructing and operating wastewater transmissions and treatment systems in the Denver metropolitan area. Metro maintains the financial records of its operations and construction activities within a single enterprise fund. Metro also maintains financial activities for several retirement plans within a pension trust fund. Metro issues financial statements containing both funds in the form of an annual comprehensive financial report. Metro also maintains separate financial statements for its Defined Benefit Retirement Plan.

Audit Services

Metro is seeking proposals from qualified independent firms to conduct audits of Metro’s financial activities and the annual comprehensive financial report, and the separately issued Defined Benefit

Retirement Plan financial statements beginning with the year ending December 31, 2025.

Audit services shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, the standards for financial audits set forth in the Generally Accepted Government Auditing Standards as issued by the United States

Government Accountability Office, and any other applicable laws or guidelines including Colorado

Revised Statutes.

Based on experience, Metro expects the independent firm to issue an unmodified opinion on

Metro’s financial statements. If, during the performance of the audit, the audit firm concludes that an unmodified opinion cannot be issued, the audit firm shall promptly notify the Chief Financial

Officer, in writing, stating all matters which preclude the issuance of an unmodified opinion.

The opinion of the financial statements must state both the scope of the audit and that the audit was performed in accordance with generally accepted auditing standards. It must include an opinion as to whether the statements conform to generally accepted accounting principles.

A management letter, if issued, shall include a statement of audit findings and recommendations affecting the financial statements, internal control, accounting, accounting systems, legality of actions, other instances of noncompliance with laws and regulations, and any other material matters.

The selected firm will prepare and deliver the opinion for the following financial reports each year for the previous year's audit:

• Annual Comprehensive Financial Report by March 31

• Defined Benefit Retirement Plan Statements by March 31

The field work for the year-end audit generally entails an interim period in the fall of the year in

October or November and final field work beginning in mid-February.

Metro will provide assistance to the selected audit firm and will respond to requests for information, provide all necessary records, and the physical facilities needed for the audit engagement as reasonable and necessary. Audits may be conducted in person or virtually at the agreement of

Metro and firm staff. In addition, Metro will provide:

• Detailed trial balances,

• All supporting schedules, and

• Draft and final financial reports and statements

Metro will perform all work of an assisting nature, consistent with generally accepted auditing standards whenever qualified staff are available and provide work papers and reports of internal audits conducted during the audit period and assist with the external audit as necessary.

Metro will issue a management representation letter that will include statements concerning unrecorded liabilities, pledged assets, loss contingencies, or other liabilities or information related to Metro.

Metro has been awarded the Governmental Finance Officers Association Certificate of

Achievement in Financial Reporting for the years 1987 through 2023 and has applied for the 2024 award with the 2024 annual comprehensive financial report. The firm will advise and assist Metro with ensuring this award continues to be received throughout the duration of the contract.

The firm is required to make presentations of the results of the year-end audit to the following:

• Audit and Finance Committees in April (generally first Thursday after the first Tuesday in

April at 7:30AM MT)

• Defined Benefit Retirement Board first quarterly meeting (generally third Thursday in May at 7:30AM MT)

• The firm will be required to attend the following meetings:

• Audit Committee in November (generally first Thursday after the first Tuesday in

November at 9:30AM MT)

• Others as determined by Metro and coordinated with the firm

Meetings may be in person or virtual as mutually agreed to by Metro and the firm.

Other Services

Metro may require other ad hoc services related to auditing and/or routine accounting support.

Firms should provide pricing for the following services:

Geothermal Energy Tax Credit Annual Report – Metro has received notice of award of a Tax Credit from the State of Colorado Energy Office. Metro will be required to submit annual tax credit reports within 60 days from the end of each year, starting in 2025. The reports are required to include an independent CPA review and report in writing within the same timeline. Please provide pricing for such services.

Single Audit Requirements – Metro currently does not receive enough federal funding to require Single Audit. However, should Metro in the future require a Single Audit, firms should provide confirmation that such services can be provided and pricing for such services.

Parity Debt Certification – Metro’s outstanding bond resolutions require that an

Independent Accountant provide certification in relation to Metro’s calculations of forecasted coverage ratios for future years including proposal parity debt. The information included in the certificate shall be presented in accordance with compilation standards. Firms should provide confirmation that such services can be provided and pricing for such services.

Other services may include performance audits, calculations related to arbitrage, and other forms of services. Please provide an hourly rate schedule by position, to perform other services.

Section 4 Miscellaneous Provisions

4.1 Open Records

The vendor acknowledges that Metro Water Recovery is a public entity subject to the Colorado

Open Records Act, §24-72-201, et. seq., C.R.S. (“CORA”). Consequently, the proposal, including any accompanying information and/or documentation that the vendor submits in conjunction therewith is public records available for public review under CORA. Written requests for confidentiality shall be submitted by the vendor with the proposal. The vendor must state, specifically, what elements of the proposal are to be considered confidential and/or proprietary and must state the statutory basis for the request under the Public (open) Records Act. (Section 24-72-

201 et seq., C.R.S.). Confidential and/or proprietary information must be readily identified/marked.

Neither a proposal in its entirety, nor price information will be considered confidential and/or proprietary. Any information that will be included in any resulting contract cannot be considered confidential and/or proprietary.

4.2 Arrears Vendor

No proposal shall be accepted from, nor any purchase order/contract be awarded to, any vendor that is in arrears upon any obligations to Metro Water Recovery, or that otherwise may be deemed irresponsible or unreliable.

4.3 Independent Proposal

By submission of a proposal, the vendor certifies that the proposal has been arrived at independently and submitted without collusion with any other vendor, and that the contents of the proposal have not been communicated to any person not an employee or agent of the vendor, or its surety on any bond furnished herewith, and will not be communicated to any person prior to the Proposal Due

Date.

4.4 Work Quality

The apparent silence of any specification and any supplemental specifications as to any details or the omission from it of a detailed description concerning any point shall be regarded as meaning that only the best commercial practices are to prevail and that only materials of first quality and correct type, size, and design are to be used. All workmanship is to be first quality. All interpretations of the specification shall be made upon the basis of this statement and as determined solely by Metro Water Recovery.

4.5 Incurred Costs

All costs related to the preparation of the proposal, incurred by the vendor, shall be the sole responsibility of the vendor. Metro Water Recovery will not consider and/or reimburse vendors for any costs or expenses incurred in preparing and/or submitting proposals in response to this RFP, attending meetings, presentations, or other necessary requirements.

4.6 Taxes

Metro Water Recovery is exempt from federal taxes and Colorado state and local government sales and use taxes. Where applicable, vendors are responsible for payment of use taxes.

4.7 Media Release

News releases, including social media, pertaining to this RFP and/or resultant award shall not be made without Metro Water Recovery’s written approval.

4.8 Gifts and Gratuities

Metro Water Recovery will not accept gifts or gratuities from vendors. Metro Water Recovery may request product samples from vendors for evaluation purposes with disposition of those samples to be at the discretion of Metro Water Recovery.

4.9 Reservation of Rights, No Obligation, Right of Rejection, and Multiple Award

The solicitation made through this RFP implies no obligation on the part of Metro Water Recovery.

Metro Water Recovery reserves the right to cancel this RFP in whole or in part, at any time, without penalty.

This RFP does not constitute an offer or a contract with any proposed vendor or other party.

The decision to reject a proposal is solely that of Metro Water Recovery. Metro Water Recovery reserves the right to reject or accept any or all proposals, in whole or in part. Proposals received from debarred or suspended vendors will be rejected. Metro Water Recovery may reject any proposal that is not responsive to all of the material and substantial terms, conditions, and performance requirements of this RFP. Metro Water Recovery further reserves the right to award all, some, or none of the components/functional areas included in this RFP. Metro Water Recovery further reserves the right to make one or more awards to competing vendors for all or subsets of functionality as a result of this RFP or as otherwise determined in Metro Water Recovery’s best interests. Metro Water Recovery further reserves the right to reject any proposal determined to be nonresponsive, negotiate with any or all vendors with respect to any or all terms of a proposal or contract, refrain from making an award if it determines it to be in its best interest, abandon the project, and/or to re-advertise and solicit other proposals at its discretion.

Metro Water Recovery reserves the right to award without discussions or to conduct discussions with one, some, or all vendors as it determines in its best interests.

Section 5 Proposal Evaluation

5.1 Evaluation

For proposals to be evaluated and considered for award, they must be deemed responsive to this

RFP in the sole discretion of Metro Water Recovery. To be determined responsive, submitted documents shall conform in all material respects to the requirements stated herein and vendors shall document and validate the capability to fully perform all requirements defined by the RFP. Factors to be considered in connection with a vendor’s capability to fully perform all requirements of the

RFP include, and not limited to, qualifications, experience, innovation, creativity, functionality, value-added services, project approach, and other factors required to provide the products and/or services defined herein.

Metro Water Recovery will evaluate proposals received in response to this RFP that are determined to be responsive. The objective of the evaluation is to determine the proposal that most effectively meets Metro Water Recovery’s needs. Vendors should not assume they will have an opportunity for oral presentations or revisions of proposals, so they should submit their most favorable proposal as the initial proposal. Vendors may be provided an opportunity to make an oral presentation as part of the evaluation process at Metro Water Recovery’s sole discretion.

5.2 Contract Negotiation

In the event Metro Water Recovery and a vendor are unable to agree upon all contract provisions, Metro Water Recovery reserves the right to cease negotiations and negotiate with one or more other vendors, or to reject all proposals with no obligation.

5.3 Dissemination of Evaluation and/or Award Information

Before contract award, information shared concerning the proposal evaluation may only include:

• The number of proposals received

• The company name of vendors participating.

Vendors will be notified of selection on Bidnet after Metro Water Recovery after award of the contract.

Section 6 Proposal Response Requirements

6.1 Transmittal Letter and Executive Summary

SECTION 1 should contain the transmittal letter and executive summary and be limited to four pages.

The transmittal letter shall be signed by an authorized representative of the vendor such as the owner, partner, or in the case of a corporation, the president, vice president, secretary, or other corporate officer(s) responsible for binding the vendor.

The transmittal letter must provide the vendor’s primary contact information, including the following:

1. Name of the vendor representative

2. Title

3. Name of company

4. Address

5. Telephone number

6. E-mail address

7. Signature of authorized officer of the vendor

The transmittal letter must acknowledge all addendums, if applicable. A signature on the transmittal letter provides Metro Water Recovery with the vendor’s acknowledgement and acceptance of the RFP and execution of it during the discharge of any subsequent contract. It shall be clearly understood that by submitting a proposal in response to this solicitation the vendor shall be deemed to have accepted all specifications, terms, general conditions, and requirements set forth unless otherwise clearly noted and explained in the vendor’s proposal. Any exceptions or exclusions may render the proposal non-responsive in the sole discretion of Metro Water

Recovery.

The executive summary may be incorporated as part of the transmittal letter and should include the following:

1. A brief summary of the proposal contents

2. Discussion of unique aspects, strengths, or value-added components being offered

6.2 Company Background and References

SECTION 2 of the proposal shall include company background information and client references.

Vendors should identify and include client references that may be contacted by Metro Water

Recovery for evaluation purposes. Vendors shall provide at least three references of similar clients with whom the vendor has worked during the past five years that are of similar size and scope to this requirement. Metro Water Recovery reserves the right to contact any reference, whether provided by the vendor or obtained by Metro Water Recovery, in connection with evaluation of this RFP. If no such references exist, alternate references may be provided or none, and shall be separately addressed in the proposal.

6.3 Proposed Product(s) and Services

SECTION 3 of the proposal must include a summarized narrative description of the capabilities for each requirement presented throughout the RFP, for the purpose of providing Metro Water

Recovery with a high-level understanding of the proposed solution. The narrative should be written for an audience of the end-user community. Descriptions should include all products proposed by third parties to meet Metro Water Recovery’s Functional and Technical Requirements identified in this RFP.

6.4 Proposed Team Resources

SECTION 4 of the proposal should include the project and implementation team organizational structure, project roles and responsibilities, and key team member resumes of the proposed project personnel resources. The implementation team as well as the personnel involved in live operation and ongoing support and maintenance shall be included as necessary/required. A clear distinction shall be made to identify vendor resources, sub-contractor/third party resources, and Metro resources roles and responsibilities. Key team member resumes shall be specific to the actual personnel to be assigned to this project for all primary roles. Metro Water Recovery reserves the right to require that background checks be conducted on any and all individuals conducting work as either employees or independent contractors of the vendor, or who are otherwise providing services on the vendor’s behalf in connection with the project including, without limitation, employees and independent contractors of any third-party companies or vendors included in the vendor’s proposal.

6.5 Price Proposal

SECTION 5 of the proposal shall be the price proposal, which should be submitted as an annual lump sum fee for the initial contract award year, as well as renewal pricing for up to five (5) total years. Please include an hourly rate schedule by position or specialty.