RFP for Audit 2024.doc

October 23, 2024 Gratiot County invites independent Certified Public Accountants, licensed in the State of Michigan, to submit proposals to audit the County of Gratiot financial statements for the year ended September 30, 2024.

To be considered for this engagement, your firm must meet the qualifications and satisfy the requirements set forth in the Request for Proposal. Please submit your proposal to the address listed below by November 13, 2024.

Gratiot County

Stephanie Howes Payroll and Procurement 214 E. Center St.

Ithaca, MI 48847 Phone: (989) 875-5261 E-mail: procurement@gratiotmi.com Gratiot County reserves the right to reject any or all proposals, to negotiate separately with any source whatsoever in any manner necessary to attend to the best interests of the County, to waive irregularities in any proposal and to accept a proposal which best meets the needs of the County irrespective of the bid price.

I. INTRODUCTION

The purpose of this Request for Proposals (RFP) is to provide interested and qualified firms and individuals with sufficient information to enable them to prepare and submit proposals for consideration by the Gratiot County Board of Commissioners as part of its procurement of needed professional/technical services. The selected firm will be expected to provide all required audit services for county government.

A. Bid Submission and Project Representative.

Bid must be mailed or emailed to the address above on or before 4:30p November 13, 2024.

Proposals must be signed by an official authorized to bind the firm to its provisions and the proposal must remain valid for at least one hundred twenty (60) days. All proposals must include a “not to exceed” fee including all out-of-pocket expenses for each annual audit. There is no expressed or implied obligation for Gratiot County to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

B. Right of Refusal.

Gratiot County reserves the right to reject any or all proposals, to negotiate separately with any source whatsoever in any manner necessary to attend to the best interests of the County, to waive irregularities in any proposal and to accept a proposal which best meets the needs of the County, irrespective of the bid price.

C. Terms of Engagement.

A three year contract is contemplated for the years ended September 30, 2024, 2025, and 2026 subject to the annual review of the Board of Commissioners and the annual availability of an appropriation. The Board of Commissioners reserves the right to dismiss the audit firm with or without cause.

D. Independent Price Determination.

By submitting a proposal you certify, and in the case of a joint proposal, each party certifies as to its own organization, that in connection with this proposal:

1. The prices in its proposal have been determined independently without consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other proposing party or with any other competitor;

2. Unless otherwise required by law, the prices which have been quoted in the proposal have not been knowingly disclosed by the proposing party and will not be knowingly disclosed to any competitor; and

3. No attempt has been made or will be made by the proposing party to induce any other person or firm to submit or not submit a proposal for the purpose of restricting competition.

II. INFORMATION, SPECIFICATIONS AND AUDIT REQUIREMENTS

A. Scope of Work.

The audit shall include an examination of the financial statements of all accounts and funds. The auditing firm awarded the contract will be responsible for reviewing the audit work papers of Gratiot County. This must be accomplished in order to express an opinion that the financial statements of the County are prepared in accordance with generally accepted accounting principles as recommended by the National Council on Governmental Accounting in their publication "Governmental Accounting Auditing and Financial Reporting." The examination shall be made in accordance with generally accepted government auditing standards, as issued by the Comptroller General of the United States.

The auditor will be responsible for Financial and Compliance Audits under the Single Audit Act. Gratiot County is subject to the audit requirements of the Single Audit Act of 1984, Federal Public Law 98-502 and all implementing regulations prescribed by the Office of Management and Budget. The audit requirements for the Single Audit are contained in OMB Circular A-133.

The auditor shall determine that the financial statements of the County of Gratiot fairly present the financial position and the results of operations in accordance with generally accepted accounting principles. The auditor must also determine that the County has internal accounting and other central systems to provide reasonable assurance that it is managing federal financial assistance programs in compliance with applicable laws and regulations and that the County complied with laws and regulations that may have material effect on its financial statements and on each major federal assistance program.

B. Specifications of audit firm In order to permit a complete evaluation of technical ability, proposals must address each of the following:

1. Qualifications of the audit firm

2. Responsible work record, including a list of prior governmental work references

3. Compliance with applicable peer review and continuing professional education

4. Understanding of the requirements of the audit

5. Training on single audit

6. Training on GASB 34 and knowledge of application

7. Scope of services included in the contract, proposed timetable of events

8. Soundness of technical approach

9. Qualifications of the audit team, including identification of staff that would be assigned to Gratiot County and their experience C. Requirements The successful bidder will be required to prepare and provide the following:

1. Ten (10) hardcopies and an electronic copy of the Financial Report, including all accounts and funds will be required for Gratiot County. Also included in the Report shall be the notes, tables and transmittal letter of the successful bidder. The Report shall include, but not be limited to:

a. Audit Opinion

b. Government-wide Financial Statements

c. Governmental Fund Statements

d. Proprietary Fund Statements

e. Fiduciary Fund and Component Unit Statements

f. All other disclosures, reports and notes required by GASB 34

g. A report on compliance according to Federal and State statutes, including requirements of OMB-133.

h. A management letter referencing the weakest areas of the audit (including internal controls), if any, with suggested steps for improvement for all items listed in the management letter.

i. A supplementary schedule of the County’s federal financial assistance programs. This report should show total expenditure by each program, compliance in accord with applicable laws, and an internal control evaluation.

j. Additional Information (combined statements, individual statements, revenue/expense, change in fund balance, budget-to-actual comparisons, schedules of indebtedness)

2. The successful bidder shall hold an exit conference with the appropriate County

Officials. The successful bidder shall have a draft of the Single Audit Report and a draft of the management letter at the exit conference.

3. County personnel will complete bookkeeping functions prior to the commencement of the audit, and will prepare or assist in the preparation of the necessary detailed schedules. Personnel will be available during the examination to answer questions and provide assistance. Likewise, the selected firm shall be available to County personnel to answer questions and assist throughout the term of agreement for routine questions without additional cost.

4. The proposal of the successful bidder, as mutually modified, amended or supplemented shall become a contractual obligation. Failure of the successful bidder to accept these obligations may result in cancellation of any award.

5. The County will require the successful bidder to present the Single Audit Report and the management letter to the Gratiot County Commission after the exit conference at a regularly scheduled Commission meeting.

6. The selected firm will be required to assume responsibility for all services offered in the proposal whether or not they possess them within their organization. Further, the County will consider the selected firm to be the sole point of contact with regard to all contractual matters, including payment of any and all charges resulting from the contract.

7. All working papers and reports must be retained, at the auditor’s expense for a minimum of seven (7) years, unless the firm is notified in writing by Gratiot County of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to governmental agencies.

8. Time Requirements

I. County of Gratiot

a. The audit fieldwork must be completed no later than one hundred twenty (120) days after the end of the year.

b. A draft copy of the audit and reports on internal control structure is due no later than March 1.

c. The final report must be issued no later than March 30, with ten (10) copies delivered to the County Administrator. In addition the auditor shall submit two (2) copies of the financial statements to the Michigan Department of Treasury by March 30.

D. Fees

The proposal must include a “not to exceed” price to perform the audit of the County’s financial statements for 2024, 2025 and 2026. The proposal should also include the total hours estimated to complete the audit, as well as the number of hours and hourly rate for partners, managers, seniors and other staff assigned by classification.

The proposal must include the cost of reviewing an individual federal program with the expectation that more than one program may be necessary to be in compliance with audit requirements.

Please also state the applicable hourly rate by classification for any additional work to be performed during the course of this contract.

E. Bid Award Selection and awarding of the audit services bid will be based upon evaluation by the County of the criteria listed above. The contract will be rewarded to the auditing firm who, based on evaluation of all responses, applying all criteria and oral interviews if necessary, is determined to be the best qualified to perform the audit.

The auditor may commence the examination upon acceptance of a contract. During the audit, the auditor may be required to meet with various elected or appointed officials to discuss the audit or related matters.