RFP SC Consrvation Bank.pdf

Request for Proposal Auditing Services

Introduction

The SC Office of the State Auditor (OSA) is requesting proposals from CPA firms for the audit of the South Carolina Conservation Bank (the “Bank”) for each of the fiscal years ended June 30, 2024 through 2028.

A pre-proposal conference will be held on March 11, 2024 at 9:30 am at OSA office in Columbia at 1401 Main Street, Suite 1200. Representatives of the Bank and OSA will meet with prospective proposers to review the RFP and answer questions about the proposed audits and the records to be audited. A virtual option can be arranged upon request.

Questions concerning this request for proposal should be directed to:

Sue Moss, CPA

Director of Agency Relations 1401 Main Street, Suite 1200

Columbia, SC 29201

(803) 832-8249 smoss@osa.sc.gov

Description of the Entity

The Bank was established in 2002 by section Title 48, Chapter 59 of the South Carolina Code of Laws.

The Bank was established for the purpose of making grants to public and private entities to acquire interests in real properties worthy of conservation. The Bank is governed by fourteen-member Board.

The Bank also has an Executive Director to carry out the duties of the organization. The Bank is located at 2711 Middleburg Drive, Columbia, South Carolina. Audited financial statements can be found at http://osa.sc.gov/Reports.

mailto:smoss@osa.sc.gov http://osa.sc.gov/Reports

Nature of Services Required

Audit

Conduct an audit of the Bank’s financial statements for each of the fiscal years ended June 30, 2024 through 2028 in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The engagement must also include audit procedures to ensure that all State laws, rules and regulations that would have a direct and material effect on the financial statements of the Bank have been complied with during the fiscal year.

Time Requirements

Proposal Calendar Request for proposal issued February 28, 2024 Pre-proposal conference March 11, 2024 at 9:30 am Due date for proposals March 25, 2024 Selected firm notified April 3, 2024

Audit Engagement Timetable Start of engagement work ** Preliminary draft September 15 Final October 1

**At a time mutually agreed to by Bank management and the successful proposer.

Assistance to Be Provided and Report Requirements

Assistance to Be Provided

The Bank will provide the successful proposer draft basic financial statements, including notes to the financial statements and MD&A, RSI and SI, if applicable. The Bank’s accounting staff will assist in gathering the information necessary for the audit, and a comprehensive client assistance request should be coordinated with client personnel before the start of fieldwork. Specific questions about the level of assistance provided by Bank staff should be directed to representatives during the pre-proposal conference.

Report Requirements

Financial Statements

A preliminary draft of the report on financial statements will be submitted electronically to OSA (PDF file) by close of business on the date specified in this RFP for review and comment, therefore, the draft should be considered complete and ready for issuance.

Final reports are to be addressed to the State Auditor and will include an OSA-prepared transmittal letter to be included inside the front cover of the issued report.

An electronic copy of the report on financial statements should be delivered to OSA by close of business on the date specified in this RFP. Delivery of printed and bound copies should be coordinated with the Bank. The electronic copy must meet the requirements of Section 508 of the Workforce Investment Act of 1998 regarding accessibility by individuals with disabilities.

A copy of the auditor’s communication with those charged with governance (SAS 114 and 115 related correspondence) should be provided to OSA upon issuance.

Proposal Requirements

To provide the maximum degree of comparison, we require that proposals be organized as follows:

Title Page Show the RFP subject, firm name, contact information and date.

Table of Contents Include a clear identification of the material presented by section and page number.

Letter of Transmittal In one or two pages, provide an understanding of the work to be done and a commitment to the timeline outlined in this RFP. In addition:

a) Provide the name and contact information of the individual who will be authorized to make representations on behalf of the proposer.

b) State that the person signing the letter is authorized to bind the proposer.

Profile of the Proposer Provide a profile of the proposer to include:

a) Identification of the proposer as a local, regional or national/international firm.

b) Identification of the location of the office which will have primary responsibility for the work to be done.

c) Information regarding the firm size, particularly the office which will be primarily responsible for the work and/or the size of staff specialized in providing assurance services to state and local government.

d) Description of other services provided by the firm which may be relevant to the entity.

e) Description of any business litigation brought against the firm or any of its officers or principals by any entity for fraud, malpractice, misrepresentation, negligence, or similar cause of action within the last 5 years.

f) Information on desk or other reviews of governmental engagements during the last 5 years which have resulted in correction or reissuance of a report or in disciplinary action.

g) Disclosure of any disciplinary actions against the firm or any member of the proposed engagement team.

h) A copy of the firm’s most recent peer review report, including comments, response and letter of acceptance. This may be included in an appendix.

Summary of the Proposer's Experience and Qualifications

a) Identify the senior members of the proposed engagement team and include resumes detailing relevant experience for each. Include with the resume a list of the governmental CPE courses attended in the prior two CPE reporting periods. The resume and CPE listing may be included as an appendix.

b) Describe recent engagements similar in scope to the services requested, with an emphasis on engagements performed by the office primarily responsible for the work to be done and the proposed engagement team. Provide a minimum of three references for the proposer’s most relevant audits during the past three years. Each reference should include the organization’s name and purpose, address, telephone number and the e-mail address and contact name of the individual representing the client.

c) Acknowledge that the firm is aware of current GAO Yellow Book requirements concerning continuing education and peer review and that the firm will be in compliance with them during the term of this contract.

d) List any governmental clients that have terminated the firm’s audit service contract in the last three (3) years. Include the client’s name, date of contract termination, and reasons for termination.

Proposers Approach to the Engagements Submit a comprehensive workplan to accomplish the scope of work defined in this RFP. The workplan should include time estimates for each significant segment of the work and the staff level to be assigned.

Where possible, name the individual staff members. The use of specialists or contractors should be specified.

Compensation State the total hours and hourly rate required by staff classification and the resulting all-inclusive maximum fee, including out-of-pocket costs for each fiscal year 2024 through 2028.

Additional Data Provide additional information considered essential to your proposal.

Mandatory Criteria Compliance with S.C. State Ethics Act.

Offerors are required to comply with applicable provisions of the South Carolina State Ethics Act.

Subcontractors.

Offeror must fully disclose any proposed subcontracting of any of the required services.

Mandatory Criteria (Continued) Requirements to which all offerors must agree.

By submitting a proposal, offeror agrees to or confirms the following:

a) A contract resulting from this RFP will be subject to South Carolina law.

b) A contract resulting from this RFP will not be subject to binding arbitration.

c) Neither the State of South Carolina nor its agencies indemnify, defend, or pay attorneys’ fees on behalf of any party with which the State or its agencies contract.

d) Offeror does not discriminate in the employment of persons upon the basis of race, color, creed, national origin, sex, age, or physical handicap.

e) Offeror will provide a drug free workplace during the term of this contract in accordance with the South Carolina Drug Free Workplace Act, SC Code 44-107-10.

Proposal Submission

Firms interested in responding to this RFP should submit a proposal electronically (in PDF format) no later than 5:00 PM on March 25, 2024 to officeofstateauditor@osa.sc.gov. Late proposals will be rejected as not meeting the mandatory RFP requirements. Proposals must strictly comply with the format and content stated in this RFP.

mailto:officeofstateauditor@osa.sc.gov

Proposal Evaluation

Proposals should demonstrate the technical qualification, competence and capacity of the firm seeking to undertake the services required in this RFP. Evaluators will determine the winning proposal based on the qualifications of the proposer, audit approach, and cost.

Proposals that do not include the minimum requested information, including affirmation of mandatory criteria , will automatically be rejected as not being responsive. OSA reserves the right to request additional information or clarifications from the proposing firms during the evaluation process where it serves OSA’s best interest. Technical corrections or omissions may be allowed at the discretion of OSA.

OSA reserves the right to reject any and all proposals submitted.

OSA reserves the right to negotiate with the highest rated proposer on final contract terms.

The following factors will be considered during our evaluation.

Technical Factors

1. Responsiveness of the proposal in clearly stating the firm’s understanding of the work to be performed. Evaluators will consider:

• Appropriateness and adequacy of proposed procedures.

• Necessity of procedures.

• Reasonableness of time estimates.

• Appropriateness of assigned staff levels.

• Timeliness of projected completion.

2. Technical experience of the firm.

3. Qualifications of staff, including recent pertinent continuing education.

4. Size and structure of the firm.

5. Prior experience with the firm with emphasis on report and work paper quality and track record of meeting agreed upon delivery dates.

Cost Factor Proposed audit fees are a consideration but are not the dominant factor. Cost will be given more importance when all other evaluation criteria are relatively equal. Proposals believed to be unreasonably low will be rejected.

Contractual Arrangements

Billings and Payment OSA will issue an award letter to the successful proposer stating the maximum fee to be paid for each engagement. While OSA is the client, the Bank is responsible for payment of engagement fees. All invoices are to be submitted to OSA for approval. OSA will forward approved invoices to the Bank for payment. Services that may increase the fee above the maximum must have prior written approval of

OSA.

Progress billings should be based on estimated percent of completion. Final payment will not be made until contractual obligations have been met, including delivery of final reports. OSA reserves the right to hold progress billings should issues arise in the delivery of services or if there is a reason to believe billings are being submitted in advance of work being completed. A federal Employer Identification Number (EIN) must be provided with each invoice.

Workpaper Retention, Access and Security Workpapers are required to be retained by the successful proposer for a minimum of 6 years unless advised otherwise in writing by OSA. Arrangements for access to workpapers will be made at a mutually agreed upon site and without charge for examination by OSA, successor auditors or a regulatory body, including for purposes of quality control reviews. Workpapers should be maintained securely to ensure no loss of personal data.

Quality Control Reviews Engagements will be selected for quality control review by OSA on a random basis. Reviews will be performed utilizing a standard quality control checklist. Review results will be discussed in detail with representatives of the firm. A written, responsive answer to each quality control review comment or question must be provided to the OSA review team.

In the event that a set of workpapers is found to be substandard, OSA may choose to take action against the firm, including

• Subjecting subsequent engagement workpapers to pre-issuance quality control review by OSA.

• Removal from the list of firms contracting with OSA. Depending on the seriousness of the substandard work, this may range from a one year (during which specific governmental CPE will be required) to permanent removal.

• Referral to the South Carolina Board of Accountancy.

Engagements performed for OSA must also be subject to the proposer’s internal inspection and peer review processes. Comments related to OSA contracted entities, and firm responses, must be forwarded to OSA upon completion of peer review.

All communication from regulatory authorities (Federal Government agencies, State Boards of Accountancy, AICPA, etc.) concerning engagements performed for OSA must be communicated to OSA.

Rights to Cancel The proposal must include a statement that the OSA or the successful proposer can cancel this agreement without cause by written notice delivered no less than 60 calendar days before the Bank’s fiscal year end. A failed peer review or a peer review with findings related to engagements performed for OSA is grounds for cancellation of this agreement.