RFP Eatonton Auditing Services 08_01_2024 upd.pdf

City of Eatonton, Georgia

CITY ADMINISTRATION

REQUEST FOR PROPOSALS

FOR

PROFESSIONAL AUDITING SERVICES

ISSUED August 1, 2024

201 N. Jefferson Avenue Eatonton, GA 31024

TABLE OF CONTENTS

I. INTRODUCTION 3

A. General Information B. Term of Engagement C. Subcontracting

II. NATURE OF SERVICES REQUIRED 4

A. Scope of Work to be Performed B. Auditing Standards to be Followed C. Reports to be Issued D. Working Paper Retention and Access to Working Papers

III. TIME REQUIREMENTS 6

A. Proposal Calendar B. Notification and Contract Dates C. Date Audit May Commence D. Schedule for the August 31, 2024, Fiscal Year Audit E. Progress Reporting and Exit Conferences

IV. ASSISTANCE TO BE PROVIDED TO THE AUDITOR 7

A. City Administration Staff and Clerical Assistance B. Statements and Schedules to be Prepared by the City Clerk of the City of Eatonton

V. PROPOSAL REQUIREMENTS 8

A. General Requirements B. Technical Proposal Requirements C. Cost Proposal Form

VI. EVALUATION PROCEDURES 13

A. Review of Proposals B. Mandatory Elements C. Oral Presentations D. Final Selection E. Right to Reject Proposals

APPENDICES

A. Government Entity and Records Information B. Cost of Proposal Form C. Mandatory Prequalification Form D. Form of Agreement

THE CITY OF EATONTON, GEORGIA

REQUEST FOR PROPOSALS

I. INTRODUCTION

A. General Information The City of Eatonton, Georgia is requesting proposals from qualified firms of certified public accountants having sufficient governmental accounting and auditing experience to audit its financial statements for the fiscal year ending August 31, 2024, and the 2025 and 2026 fiscal years thereafter, with the option of auditing its financial statements for subsequent fiscal years (Section I, B for Term of Engagement). These audits are to be performed in accordance with the provisions contained in this Request for Proposals.

Any resulting contract represents the entire integrated agreement between the auditor and government entity and supersedes all prior negotiations, representation, or agreements, whether written or oral. The contract may only be amended by the written agreement of the auditor and the government entity.

The City of Eatonton will not reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

B. Term of Engagement A three-year contract with an option to renew for additional years is contemplated, subject to the annual review and recommendation of the City Administrator of Eatonton, the satisfactory negotiation of terms (including a price acceptable to both the City of Eatonton, and the selected firm), the concurrence of the City of Eatonton, and the annual availability of an appropriation.

C. Subcontracting No portion of the work shall be subcontracted without the prior written consent of the City of Eatonton. If the auditor desires to subcontract some part of the work specified herein, the auditor shall furnish the government entity with the names, qualifications, and experience of its proposed subcontractors. The auditor shall, however, remain fully liable and responsible for the work/service to be performed by his/her subcontractor(s) and shall assure compliance with all requirements of the contract.

II. NATURE OF SERVICES REQUIRED

A. Scope of Work to be Performed

The auditor will determine whether the basic financial statements present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, the aggregate remaining fund information, the respective changes in financial position and cash flows, where applicable, and the respective budgetary comparison for the major funds in conformity with accounting principles generally accepted in the United States of America. The individual financial statements, schedules, and related information are not necessary for a fair presentation but will be presented as additional data. This supplemental information will be subjected to the tests and other auditing procedures applied in the audit of the basic financial statements, and an opinion will be given as to whether the supplemental information is fairly stated in all material respects in relation to the financial statements taken as a whole.

Throughout the contract period, the auditor shall advise the City of Eatonton on the implementation of new accounting standards as promulgated by authoritative bodies.

The auditor shall also advise the City of Eatonton on specialized accounting questions that may arise.

B. Auditing Standards to be Followed To meet the requirements of this Request for Proposals, the audit shall be conducted in accordance with auditing standards generally accepted in the United States of America, promulgated by the American Institute of Certified Public Accountants (AICPA), and in accordance with standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and the Official Code of Georgia Annotated, as well as all applicable federal, state, local, or other programmatic audit requirements. If a Single Audit is required as a part of the annual audit, the audit shall be performed in accordance with American Institute of Certified Public Accountants (AICPA) Standards, Government Auditing Standards, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

C. Reports to be Issued The auditor shall prepare, issue, and submit all required audit reports as denoted by the aforementioned standards, codes, and circulars. As professional standards or federal or state requirements change, the auditor shall adjust his/her auditing techniques, reporting formats, and criteria, so the new standards and requirements are met. (Any additional hours used by the auditor as a result of such changes that would cause the auditor to exceed the proposed hours as submitted in the Cost Proposal, shall be treated as provided by Section V, C, 4.)

Upon completion of the audit of the fiscal year's financial statements, the auditor shall issue at a minimum the following:

1. Standard Independent Auditor’s Report

2. Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.

3. Report on Compliance for Each Major Program and Report on Internal Control over Compliance in Accordance with the Uniform Guidance.

Any other reports required shall be submitted to the City of Eatonton upon request or as required by federal, state, local, or programmatic audit requirements.

A written management letter containing matters not included in the auditor's report on compliance and on internal control over financial reporting shall be prepared and presented to the City Clerk after each audit. The auditor must offer recommendations for appropriate corrective action for each item contained in the management letter.

D. Working Paper Retention and Access to Working Papers

All working papers and reports must be retained, at the auditor's expense, for a minimum of three years, unless the firm is notified in writing by the City of Eatonton of the need to extend the retention period. The auditor will be required to make working papers available to any party upon request of the City of Eatonton.

At our request, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.

III. TIME REQUIREMENTS

A. Proposal Calendar Request for Proposals August 1, 2024 Issued Due Date for Proposals September 3, 2024, no later than 5:00 pm

B. Notification and Contract Dates Selected Firm Notified September 16, 2024 Contract Date September 26, 2024

C. Date Audit May Commence October 22, 2024

The City of Eatonton will have all records ready for audit as of the above commencement date.

A. Schedule for the August 31, 2024, Fiscal Year Audit (A similar schedule will be developed for audits of future fiscal years if the City of Eatonton exercises its option for additional audits.)

Each of the following should be completed by the auditor no later than the dates indicated:

1. Detailed Audit Plan The auditor shall provide the City of Eatonton w i t h a timetable, a detailed audit plan, and a list of all schedules to be prepared by the City of Eatonton (in addition to those indicated in Appendix B) by October 1, 2024. The City of Eatonton reserves the right to specify the order in which funds are to be audited each year.

2. Draft Reports The auditor shall have drafts of the audit report[s], journal entries, and recommendations to management available for review by the City Clerk no later than January 30, 2025. The City Administrator shall provide all recommendations, revisions, and suggestions for improvement to the auditor by February 13, 2025. A revised report, including a draft auditor’s report, shall be delivered to the Administrative Offices by February 28, 2025.

3. Final Report The final report and nine signed copies should be delivered to the City of Eatonton at 201 N. Jefferson Avenue, Eatonton, Georgia 31024. The auditor will be expected to appear before the Administrative Staff and/or the City Council to present a review of their findings in conjunction with a presentation of the audit report.

B. Progress Reporting and Exit Conferences The Exit Conference should be held by January 10, 2025, to summarize the results of the fieldwork and to review significant findings.

IV. ASSISTANCE TO BE PROVIDED TO THE AUDITOR

A. City Administration and Clerical Assistance The City Administrative Staff will be available during the audit to assist the firm by providing information, documentation, explanations, and internal audit assistance (as mutually agreed upon by both parties prior to commencement of the fieldwork). The preparation of confirmations will be the responsibility of the auditor with the assistance of the City Clerk.

B. Statements and schedules to be prepared by the City Clerk of the City of Eatonton.

The staff of the City of Eatonton is available for limited assistance in the engagement.

Adequate supervision and reasonable lead time must be provided by the auditor.

Supporting schedules and analysis may be provided under the following circumstances:

1. Schedules performed during the normal course of the city administrative duties (to include but not be limited to those indicated in Appendix B).

2. Any additional schedules mutually agreed upon by both parties prior to the commencement of fieldwork.

V. PROPOSAL REQUIREMENTS

A. General Requirements

1. Inquiries Inquiries and/or questions concerning this Request for Proposals shall be submitted in writing, no later than August 26, 2024, to:

Middle Georgia Regional Commission Attn: Aidan Leahy

3661 Eisenhower Parkway, Suite MB102 Macon, GA 31206

(478) 722-6961 aleahy@mg-rc.org

IMPROPER CONTACT WITH CITY OF EATONTON PERSONNEL REGARDING THIS

REQUEST FOR PROPOSALS MAY BE GROUNDS FOR ELIMINATION FROM THE

SELECTION PROCESS.

2. Submission of Proposals The following material is required to be received by 5 p.m., September 3, 2024, for a proposing firm to be considered: (Failure to respond to any requirement outlined in the RFP, or failure to enclose copies of the required documents, may disqualify the proposal.)

Late submittals will not be accepted.

a. Technical Proposal and five copies to include the following:

Title Page showing the Request for Proposals’ subject; the firm's name; the name, address, and telephone number of the contact person; and the date of the proposal.

Technical Proposal. The detailed proposal should follow the order set forth in Section V, B of this Request for Proposals.

b. The proposer shall submit an original and five copies of a signed Cost Proposal Form (Appendix B) in a separate sealed envelope marked as follows:

Cost Proposal Form for THE CITY OF EATONTON, GEORGIA For

Professional Auditing Services August 1, 2024

Proposers should send the completed proposal consisting of the two separate envelopes to the following address:

Middle Georgia Regional Commission Attn: Aidan Leahy

3661 Eisenhower Parkway, Suite MB102 Macon, GA 31206 mailto:aleahy@mg-rc.org

B. Technical Proposal Requirements

THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS INCLUDED IN THE TECHNICAL

PROPOSAL DOCUMENT.

The Technical Proposal should address the requested information below. The corresponding responses should begin with the number associated with the requested information.

1. Independence The firm should provide an affirmative statement that it is independent of the City of Eatonton and all its component units as defined by Government Auditing Standards issued by the Comptroller General of the United States.

The firm should also list and describe the firm's (or proposed subcontractors') professional relationships involving the City of Eatonton or any of its agencies, component units, or primary government for the past five years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit.

In addition, the firm shall give the City of Eatonton written notice of any professional relationships entered into during the period of this agreement.

2. License to Practice in the state of Georgia An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in the state of Georgia.

3. Firm Qualifications and Experience The proposer should state the size of the firm, size of the firm's governmental audit staff, and the location of the office from which the work on this engagement is to be performed.

If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified, and the firm that is to serve as the principal auditor should be noted, if applicable.

4. External Quality Control Review The firm is also required to submit a copy of the report on its most recent external quality control review, with a statement of whether that quality control review included a review of specific government engagements.

5. Results of Federal or State Reviews The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations.

6. Partner, Supervisory, and Staff Qualifications and Experience Identify the principal supervisory and management staff, including engagement partners, managers, other supervisors, and specialists, who would be assigned to the engagement.

A. Indicate whether each such person is registered or licensed to practice as a certified public accountant in the state of Georgia.

B. Provide information on the government auditing experience of each person, including information on relevant continuing professional education, including GASB 34, for the past three years and membership in professional organizations relevant to the performance of this audit.

C. A statement should be included which indicates the auditor’s staff to be assigned to the engagement meet the continuing education requirements of the Government Auditing Standards issued by the Comptroller General of the United States.

D. Individuals identified as principal supervisory and management staff for purposes of this Request.

Proposals can only be changed with express written permission of the City of Eatonton.

Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience.

Consultants and firm specialists mentioned in response to this Request for Proposals can only be changed with the express prior written permission of the City of Eatonton, which retains the right to approve or reject replacements.

7. Prior Engagements with the City of Eatonton List separately all engagements within the last five years, ranked based on total staff hours, for the City of Eatonton by type of engagement (i.e., audit, management advisory services, other). Indicate the scope of work, date, engagement partners, total hours, location of the firm's office from which the engagement was performed, and the name and telephone number of the principal client contact.

Prior experience with the proposer will be considered (if applicable) with emphasis on report and work paper quality and track record of meeting agreed-upon delivery dates.

8. Similar Engagements with Other Government Entities For the firm's office that will be assigned responsibility for the audit, list the most significant engagements (maximum 5) performed in the last five years that are similar to the engagement described in this Request for Proposals. These engagements should be ranked based on total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact.

Responsive firms should include any relevant information regarding audits performed on the financial statements under the new reporting model (GASB Statement 34). The responsive firm may include other experiences the staff has related to GASB Statement 34.

9. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed to perform the services required in Section II of this Request for Proposals. In developing the work plan, reference should be made to such sources of information as the City of Eatonton's budget and related materials, organizational charts, manuals and programs, and financial and other management information systems.

Proposers will be required to provide the following information on their audit approach:

a. Proposed segmentation of the engagement to include an explanation of the audit methodology to be followed to perform the services required. (An overview of start-up work that would be required in the first audit year should also be included.)

b. Level of staff and number of hours to be assigned to each proposed segment of the engagement.

c. Sample size and the extent to which statistical sampling is to be used in the engagement.

d. Extent of use of EDP software in the engagement.

e. Type and extent of analytical procedures to be used in the engagement.

f. Approach to be taken to gain and document an understanding of the City of Eatonton's internal control structure.

g. Approach to be taken in determining laws and regulations that will be subject to audit test work.

h. Extent to which specialists will be used.

i. Approach to be taken in drawing audit samples for purposes of tests of compliance.

10. Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems, and any special assistance that will be requested from the City of Eatonton.

11. Describe liability coverage arrangements.

C. Cost Proposal Form

1. General Requirements - The Cost Proposal Form should include the following information:

a. Name of Firm

b. A Total All-Inclusive Maximum Price for the August 31, 2024, engagement, and each of the subsequent years. The total all-inclusive maximum price being proposed is to contain all direct and indirect costs including all out-of-pocket expenses.

c. An amount of professional services, in hours, allowed each year without additional cost to the government entity. Such services will not be directly related to the annual audit.

2. Out-of-pocket expenses included in the total all-inclusive maximum price and reimbursement rates out-of-pocket expenses for firm personnel (e.g., travel, lodging, and subsistence) will be reimbursed at the rates used by the City of Eatonton for its employees. All estimated out-of-pocket expenses to be reimbursed should be presented on the Cost Proposal Form in the format provided in the attachment (Appendix B). All expense reimbursements will be charged against the total all-inclusive maximum price submitted by the firm.

In addition, a statement must be included in the Cost Proposal Form stating the firm will accept reimbursement for travel, lodging, and subsistence at the prevailing City of Eatonton rates for its employees.

3. Rates for Additional Professional Services If it should become necessary for the City of Eatonton to request the auditor to render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between the City of Eatonton and the firm. Any such additional work agreed to between the City of Eatonton and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the Cost Proposal Form.

In the event, during the audit, it is determined by any party that a change in the scope of the audit work is necessary, the discovering party shall promptly notify the other parties in writing. If the auditor becomes aware that the government entity is subject to audit requirements that may not be encompassed in the terms of the contract, he or she shall communicate this situation immediately to the City of Eatonton's Administrative Staff.

The City of Eatonton retains the right to contract with other auditing firms for additional services to either supplement the services requested in the RFP, to perform additional work as a result of the specific recommendations included in any report issued on this engagement, or any other agreed-upon procedures deemed necessary during the contract period.

4. Manner of Payment

Progress payments will be made based on hours of work completed during the engagement and out-of-pocket expenses incurred in accordance with the firm's Cost Proposal Form. Interim billing shall cover a period of not less than a calendar month.

VI. EVALUATION PROCEDURES

A. Review of Proposals Proposals submitted will be evaluated by the City’s Administrative Staff, with assistance from the Middle Georgia Regional Commission, upon request, subject to Council approval.

Proposals will be evaluated using the general, technical, and cost criteria as described in Section V. Firms meeting the mandatory criteria below will have their proposals evaluated for both technical qualifications and cost.

COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF AN AUDIT FIRM.

However, cost may be given more importance when all other evaluation criteria are relatively equal. If there is reason to believe that an unreasonably low proposal has been made, it will be rejected.

During the evaluation process, the Middle Georgia Regional Commission, the City of Eatonton and its administration reserve the right, where it may serve the City’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions.

The City of Eatonton reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Eatonton and the firm selected. Upon receipt, responses become subject to the Georgia Open Records Act, Official Code of Georgia Annotated, Section 50-18-70, et. seq., unless otherwise provided by law.

B. Mandatory Elements

FAILURE TO MEET THE MANDATORY REQUIREMENTS DESCRIBED BELOW WILL RESULT IN

IMMEDIATE REJECTION OF THE ENTIRE PROPOSAL, AND NO EVALUATION OF THE

REMAINDER OF THE TECHNICAL COMPONENT OR THE COST PROPOSAL WILL BE MADE.

1. The audit firm is independent and licensed to practice in the state of Georgia.

2. The firm has no conflict of interest regarding any other work performed by the firm for the City of Eatonton.

3. The firm adheres to the instructions in this Request for Proposals on preparing and submitting the proposal.

4. The firm submits a copy of its last external quality control review report, and the firm has a record of quality audit work.

C. Oral Presentations During the evaluation process, the City Administration may, at its discretion, request any or all firms to make oral presentations. Such presentations will provide firms with an opportunity to answer any questions the City Administration may have about a firm's proposal. Not all firms may be asked to make such oral presentations.

D. Final Selection

The City of Eatonton will select a firm based upon the recommendation from the City’s

Administrative Staff, with assistance from the Middle Georgia Regional Commission, subject to Council approval. It is anticipated that a firm will be selected by September 16, 2024.

Following notification of the firm selected, it is expected that a contract will be executed between both parties by September 26, 2024. Prior to the final contract execution, the selected auditor will be required to enter discussions with the City of Eatonton to resolve any contractual differences. These discussions are to be finalized and all exceptions resolved within 10 days of notification; if not, this could lead to rejection of the proposal.

E. Right to Reject Proposals Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Eatonton and the firm selected.

The City of Eatonton reserves the right without prejudice to reject any or all proposals, waive irregularities and technicalities, and request resubmission. Any proposal which does not include all the required statements and affirmations called for in this RFP will automatically be rejected as not being responsive.

APPENDICES

A. Government Entity and Records Information

As of the 2020 Census, the City of Eatonton (City) has a population of 6,307. The City is governed by an elected Mayor and seven council members and provides the following services: public safety, road maintenance, sanitation, health and welfare services, cultural arts and recreation, community development, economic development, and general administrative services. The City of Eatonton FY 2024 adopted budget, reflecting estimated revenues, appropriations, and encumbrances, was $7,752,133.

The City uses the following fund types and account groups for financial reporting:

Governmental Funds:

• The General Fund

• Special Revenue Funds, including: American Rescue Act Fund, Capital Reserve Fund, Hotel/Motel Tax Fund, Police Condemnation Fund

• Capital Projects Funds

Proprietary Funds:

• Natural Gas Fund

• Revolving Loan Fund

All accounting records are computerized with Caselle Connect accounting software. Internally, five City of Eatonton staff members perform financial duties.

At present, there are no known problems related to the accounting system, internal control, or other problems. All records can be made available and are complete. The accounting firm of David Giddens, CPA completed the City of Eatonton's most recent audit, for FY 2023. Previous audit papers are available for inspection. A disclaimer of opinion was issued for the audit.

B. Cost of Proposal Form

FIRM NAME:

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Enter Year (Complete one Schedule for each year covered by the proposal)

HOURS HOURLY RATES TOTAL

PARTNERS

MANAGERS

SUPERVISORY STAFF

OTHER (SPECIFY)

TOTAL FOR SERVICES DESCRIBED IN RFP

OUT-OF-POCKET EXPENSES (See Section IV.B.2 for allowability):

MEALS AND LODGING

TRANSPORTATION

OTHER (SPECIFY)

TOTAL ALL-INCLUSIVE PRICE FOR AUDIT

AMOUNT OF PROFESSIONAL SERVICES, IN HOURS, ALLOWED FOR

YEAR WITHOUT ADDITIONAL COST

C. Mandatory Pre-Qualification Form To be answered by Contractor Section A - General Information

1. Firm Name:

Contact Person: Telephone Number:

2. Address:

3. Firm FEI Number:

4. Firm's Georgia CPA State License Registration Number:

5. Type of Accounting Practice (place an "X" next to the appropriate response)

a. Individual

b. Partnership

c. Corporation - Give the name of the State where incorporated:

Section B - Contractor Firm's Quality Program for Audits Please answer each of the following questions by placing an "X" in the proper column at the right.

CHECK ONE YES NO

1. Quality Control: Does the Contractor Firm have internal procedures to ensure proper quality control for its governmental audit assignments?

(If yes, ATTACH A DESCRIPTION OF THE PROCESS)

2. Quality Review: Does the Contractor Firm participate in an External Quality review program every three years? (If yes, ATTACH A COPY OF THE LAST

PEER REVIEW OR QUALITY REVIEW REPORT AND LETTER OF COMMENT.

PLEASE ENTER THE ENDING DATE OF THE LAST PERIOD COVERED BY REVIEW

If no, explain the reason and your plan to participate.

3. Professional Membership: Do the partners of the Contractor Firm belong to either the AICPA or the Georgia Society of CPAs?

4. Proper License: Is the Contractor Firm properly licensed to practice public accounting in the state of Georgia?

5. Special Governmental Audit Requirements: Is the Contractor Firm familiar with the AICPA's ethical ruling called Interpretation 501-3, "Failure to Follow Standards and/or Procedures or other Requirements in Governmental Audits"? (According to this ruling, if a CPA agrees to follow specified standards, guides, rules, and procedures in addition to GAAS, then the CPA is OBLIGATED to follow all such requirements. Also, the auditor must report any deviations from the agreed-upon engagement procedures.)

CHECK ONE YES NO

6. Subcontracts: Does the Contractor Firm agree to not subcontract any work required without the prior express written consent of the auditee?

7. Federal Audit Laws and Rules: If federal audit work is required, does the Contractor Firm agree to perform the audit work in accordance with American Institute of Certified Public Accountants (AICPA) Standards, Government Auditing Standards, Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as necessary?

8. Confidentiality: Does the Contractor Firm agree to not publish or distribute any information concerning work done for the auditee, except as provided by law or rule?

9. Access to Records and Workpapers: Does the Contractor Firm agree to keep work papers and reasonable records to support work claims for at least five years and make them available for audit or review by any authorized parties?

10. Other Federal and State Laws and Rules: Does the Contractor Firm agree to comply with all other federal and state laws, rules, and regulations that pertain to this engagement?

11. Independence: Does the Contractor Firm meet the independence standards of the current "Government Auditing Standards," issued by the Comptroller General of the United States?

(If "No", attach a brief summary of facts.)

12. Continuing Education: Does the Contractor Firm have sufficient staff who meet continuing professional education requirements for government audits as set forth in "Government Auditing Standards"?

13. Conflict of Interest: Does the Contractor Firm declare that there is no public or private interest which would conflict in any manner with the performance of an audit for the auditee or would violate any laws of the State of Georgia?

14. No Substandard Work: Do the Contractor Firm and all proposed Audit Team Members have a record of an acceptable standard of audit work?

(Contractor Firm must answer this question "No" if the Firm or any Audit

CONTRACTOR FIRM CERTIFICATION STATEMENT

I (we) certify that the information contained herein is true and correct to the best of my (our) knowledge and that the person submitting the RFP on behalf of the proposer has the authority to submit this RFP and make all representations contained herein. I (we) understand that the inclusion of false information may result in the rejection of the proposal submitted in response to this RFP.

Contractor Firm Name Date

Signature of Preparer

Team Member has received an enforcement action for substandard audit work during the past three years or has a related investigation pending by a professional or regulatory group. Attach a brief summary of any enforcement actions.)

15. Ethics: Does the Contractor Firm certify that its proposals are made without collusion or fraud and that it has not offered or received any kickbacks or inducements from any other auditor, supplier, manufacturer, or subcontractor in connection with their proposals, and that it has not conferred on any City of Eatonton employee having official responsibility for this procurement transaction, any payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value was exchanged; that it is not in violation of the Official Code of Georgia Annotated, Sections 16-10-2 and 16-10-22, for acts of bribery and/or conspiracy in restraint of free and open competition in transactions with state or political subdivisions?

16. Provisions of RFP: Does the Contractor Firm agree to abide by all General Terms and Conditions and Special Terms and Conditions specified in the

RFP?

D. Form of Agreement Counterpart No.

Of 2 Original Executed Counterparts.

Counterpart of the

STATE OF GEORGIA,

City OF :

AGREEMENT FOR AUDIT SERVICES

THIS AGREEMENT FOR AUDIT SERVICES, hereinafter referred to as “Agreement”, is made and entered into as of the _____ day of ___________________, __________, (the “Date Hereof”), by and between _____________________________________________, whose agent and address for purposes of this agreement is hereinafter referred to as “the Auditor” and The City of Eatonton, whose address for the purposes of this Agreement is hereinafter referred to as “the Auditee.”

WITNESSETH THAT:

WHEREAS, the Auditee is a municipal corporation; and

WHEREAS, the Auditee is required by Georgia Code 36-81-7 to be audited on a regular basis in accordance with certain specified audit standards; and

WHEREAS, the Auditor is a _______________________________ organized under the laws of the State of Georgia engaged in the practice of accountancy and business of performing professional audit services; and

WHEREAS, the Auditee desires to utilize the professional services of the Auditor, in accordance with the needs, requirements, terms, and conditions contained in a Request for Proposals, Number _ _ _ _ (the “RFP”), and the proposal (the “Auditor’s Proposal”) submitted by the Auditor in response to the RFP; RFP and Auditor’s Proposal are attached hereto and by this reference incorporated herein; and

WHEREAS, the Auditee awarded the contract for audit services to the Auditor in accordance with the RFP and reliance upon the representations and certifications contained in the Auditor’s Proposal; and

WHEREAS, the Auditor and Auditee desire to document the terms and conditions of their Agreement.

NOW, THEREFORE, for and consideration of the mutual covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:

ARTICLE 1

BASIC AGREEMENT

The Auditor will perform professional audit services in accordance with the Audit Requirements, Reporting and Delivery Requirements, General Terms and Conditions, and Special Terms and Conditions of the RFP. The Auditee will provide the information required by the RFP. The Auditor shall be compensated for its services as provided in the RFP and the Auditor’s Proposal.

ARTICLE 2

COVENANTS AND REPRESENTATIONS

2.1 Covenants of the Auditor. The Auditor shall perform professional audit services in accordance with the Auditor’s Proposal and the Audit Requirements, Reporting and Delivery Requirements, General Terms and Conditions, and Special Terms and Conditions contained in the RFP, and any attachments thereto, all of which are by this reference incorporated herein.

2.2 Covenants of the Auditee. The Auditee will provide to the Auditor all information reasonably necessary, useful, or customary pursuant to both standard accounting and auditing practices and customary within the Auditee’s trade or business activities.

2.3 Representations. To induce the Auditee to enter into this Agreement, the Auditee shall be entitled to rely upon the representations and certifications made by the Auditor in the Auditor’s Proposal, without independent investigation and verification, and each such representation or certification shall be deemed to be material to this Agreement. The person negotiating and executing this Agreement on behalf of the Auditor has the full right, power, and authority to enter into, execute, and perform this Agreement in accordance with the terms hereof, and when executed and delivered, this Agreement will constitute a valid and binding obligation of the Auditor and will be enforceable in accordance with the terms thereof.

ARTICLE 3

FEES

3.1 The Auditor shall be paid for its services as provided in the schedule of fees and expenses submitted by the Auditor in the Auditor’s Proposal in the sealed dollar cost bid as stated in the Cost Component of the RFP, Section IV (B), which are by this reference incorporated herein.

Additional services shall be compensated in the manner set forth in the Addendum to this Agreement, at the same rates as set forth in the schedule of fees and expenses submitted by the Auditor in the Auditor’s Proposal.

ARTICLE 4

CONTINGENCIES

4.1 Contingent Obligations of the Auditee. The obligations of the Auditee are subject to the following conditions:

4.1.1 The ability of the Auditee to carry out the terms of this Agreement in accordance with the laws and Constitution of the State of Georgia.

4.1.2 The timely performance by the Auditor of each and every covenant, agreement, and obligation imposed upon the Auditor in this Agreement.

4.1.3 The truth and accuracy as of the date hereof of each and every representation made by the Auditor.

4.1.4 This Agreement is expressly made subject to other laws affecting its subject matter. In the event of any conflict between such laws and this Agreement, such laws shall take precedence.

4.2 Contingent Obligations of the Auditor. The obligations of the Auditor are subject to the following conditions:

4.2.1 The timely performance by the Auditee of each and every covenant, agreement, and obligation imposed upon the Auditee in this Agreement.

ARTICLE 5

TERM

This Agreement shall have an initial term of three (3) years, to run concurrently with the fiscal years of the City of Eatonton, commencing with the fiscal year ending August 31, 2024, and be subject to renewal for additional successive terms if the Auditee gives notice of its election to renew the Agreement within thirty days prior to the end of the term.

ARTICLE 6

NOTICES

All notices, demands, or requests required or permitted to be given pursuant to this Agreement shall be in writing and given or served either in person or by United States Mail, postpaid, registered or certified with Return Receipt Requested, showing the name of the recipient and the date of delivery. Notices shall be addressed to the party or parties identified and at the address as set forth in the introductory paragraph of this Agreement, and the date upon which such notice is delivered shall be deemed the effective date thereof. Either party may, from time to time, by five days’ prior written notice to the other party, specify a different agent or address to which notices can be delivered. Rejection or other refusal to accept a notice or inability to deliver a notice because of a changed agent or address of which no notice was given shall constitute receipt of the notice on the date when personal service is attempted or the date of the postmark if mailed.

ARTICLE 7

RIGHTS CUMULATIVE

All rights, powers, and privileges conferred hereunder shall be cumulative and not restrictive of those given by law.

ARTICLE 8 - NON-WAIVER

No failure of the Auditee to exercise any right or power given to the Auditee under this Agreement, or to insist upon strict compliance by the Auditor with the provisions of this Agreement, and no custom or practice of the Auditee or the Auditor at variance with the terms and conditions of this Agreement, shall constitute a waiver of the Auditee’s right to demand exact and strict compliance with the terms and conditions of this Agreement.

ARTICLE 9

CONTINUITY

Each of the provisions of this Agreement shall be binding upon and inure to the benefit and detriment of the Auditor and the Auditee and the heirs, devisees, legatees, legal representatives, successors, and assigns of the Auditor and the Auditee.

ARTICLE 10

DATE FOR PERFORMANCE

If the time period by which any right, option, or election provided under this Agreement must be exercised, or by which any act required hereunder must be performed, or by which the Closing must be held, expires on a Saturday, Sunday, or legal holiday, then such time period shall be automatically extended through the close of business on the next regularly scheduled business day.

ARTICLE 11

TIME OF THE ESSENCE

All time limits stated herein are of the essence of this Agreement.

ARTICLE 12

CAPTIONS

The brief headings or titles preceding each provision hereof are for purposes of identification and convenience only and should be completely disregarded in construing this Agreement.

ARTICLE 13

COUNTERPARTS

This Agreement is executed in two counterparts which are separately numbered, each of which is deemed an original of equal dignity with the other and which is deemed one and the same instrument as the other.

ARTICLE 14

NO ASSIGNMENT, NO THIRD-PARTY BENEFICIARIES

14.1 This Agreement is a personal retention of the Auditor as an independent contractor. The auditor must perform by its own forces and may not delegate, subcontract, assign, transfer, or otherwise obtain its performance of this Agreement, without the express written consent of Auditee.

14.2 Nothing herein shall be construed as conferring upon or giving to any person, other than the parties hereto, any rights or benefits under or by reason of this Agreement.

IN WITNESS WHEREOF, the Auditor and the Auditee have caused these present to be duly signed, sealed, and delivered on the day, month, and year first above written.

AUDITOR

By (Seal)

Name:

Title:

(If a corporation, fill in below)

Attest: ___ (Seal)

Name:

Title:

(Corporate seal affixed)

AUDITEE

By ___ (Seal)

Name:

Title: