LSC_OIG_RFQ-_Selected_Internal_Control_Audit-Final.pdf

Introduction: The Legal Services Corporation (LSC) Office of Inspector General (OIG) operates under the Inspector General Act of 1978, as amended, 5 U.S.C. App.3. The OIG has two principal missions: (1) to promote economy and efficiency in the activities and operations of LSC and its grantees; and (2) to prevent and detect fraud and abuse.

LSC provides funding to 134 independent nonprofit legal aid programs throughout the nation and in U.S. territories.

Purpose: The purpose of this request for quote is to request proposals for a capped time and materials contract for the services of a public accounting firm to assist the OIG in conducting a Selected Internal Control Audit of an LSC grantee, Puerto Rico Legal Services, Inc. Information on this grantee is available at http://www.lsc.gov/grants-grantee-resources/program-profile?RNO=253010.

Needs Assessment: The OIG has scheduled audit fieldwork commencing mid- August 2016 at Puerto Rico Legal Services, Inc. (PRLS) headquartered in San Juan, Puerto Rico (PR). However, due to a number of factors beyond the control of this office, there is a possibility that the audit fieldwork may be postponed to a later date. Some staff at PRLS speaks English. However, because the primary language spoken on the island is Spanish, a the documents that are part of this audit will only be in Spanish. As a result, there is a need to contract for 2 qualified senior auditors bilingual in English and Spanish. The OIG prefers the use of contractors that are based on the island for several reasons including logistics, travel cost savings on transportation/hotel, and an understanding of the culture. The OIG also prefers vendors using or with experience using TeamMate as an audit management software.

Scope: Work under this contract will be related to an LSC OIG Selected Internal Control audit of PRLS, and will be conducted on-site at the grantee’s central office in San Juan and one or more branch offices, including at PRLS’ subgrantee’s central office located in San Juan. Selected internal controls will include, inter alia, an assessment in accordance with the Legal Services Corporation Accounting Guide for LSC Recipients (2010 Edition) of the controls over derivative income; contracting; cost allocation;

property and equipment; internal management reporting and budgeting; the general ledger; credit cards; purchasing and disbursements; and employee benefits. The audit work will be supervised by the OIG auditor-in-charge and will be further refined as demanded by the exigencies on-site. The audit fieldwork will likely commence the week of August 15th, 2016. At its option, the OIG may request pre-visit or follow up work. The

Request for Quote (RFQ)

Selected Internal Control Audit of Puerto Rico Legal Services, Inc. and Use of Contractors

June 28, 2016 http://www.lsc.gov/grants-grantee-resources/program-profile?RNO=253010 http://www.lsc.gov/grants-grantee-resources/program-profile?RNO=253010

OIG estimates that work under this contract will be for 8 days on-site with a possible additional ½ day for preparatory work, and one additional full day for wrap up, but this may be adjusted, at OIG’s discretion, according to the volume and complexity of the work. All working papers and audit documentation, including any analysis, schedules, spreadsheets and write-ups will be delivered to the auditor in charge in an acceptable electronic format. All working papers will have to be prepared electronically and in English.

Instructions on Proposal Submission:

A. Technical Qualifications:

1. Prior Auditing Experience: The Offeror shall describe its prior experience in conducting internal control audits in accordance with generally accepted government auditing standards. Prior experience shall include all of the following categories that apply:

a. Auditing entities that provide grants to independent organizations;

b. Auditing programs financed by the Federal Government and the Legal Services Corporation;

c. Auditing nonprofit organizations.

The Offeror shall also include a copy of the most recent Peer

Review or a statement explaining why a Peer Review report is not available. The Offeror will also state whether it has been the object of any disciplinary action within the last three years.

2. Staff Qualifications: The Offeror shall describe the qualifications of staff to be assigned to the audit. Descriptions should include:

a. Audit team makeup;

b. Overall supervision to be exercised;

c. Prior experience of individual audit team members, specifically in audits of non-profit organizations.

d. Oral and written proficiency in Spanish and English

The Offeror shall include only resumes of staff to be assigned to the audits. Education, position in firm, years and types of experience, continuing professional education, and state(s) in which licensed (if applicable), will be considered.

3. Project Plan and Approach: The Offeror shall provide a documented approach to support the completion of the internal control audit. Specifically, the Offeror shall describe its understanding of work to be performed, including audit procedures, estimated hours, and other pertinent information. The Offeror shall state that audit work will not be subcontracted and that all audit work will be performed by employees of the Offeror.

4. Certifications: The Offeror must sign and include as an attachment to its proposal the Certifications enclosed with this RFQ.

5. References: The Offeror shall include the names, addresses, contact persons, and telephone numbers of three prior organizations audited.

B. Price:

The price proposal shall be submitted separately from the technical proposal.

The Offeror will provide at a minimum the estimated number of hours by staff level, hourly rates by professional classification and total cost by staff level.

Any anticipated out-of-pocket expenses should also be indicated. Travel expenses will be subject to the LSC OIG Contractor Travel Reimbursement Policy.

The price shall be predicated on the anticipated cooperation from LSC personnel. The OIG must approve any additional time and fees in writing.

C. Page Limitation:

The proposal (exclusive of appendices) should be no longer than seven (7) pages long.

Inquiries: Inquiries concerning this RFQ should be directed to Magali Khalkho, Director of Management Operations, at mk@oig.lsc.gov and no later than July 8th, 2016. All inquiries and responses will be e-mailed to all prospective Offerors by the OIG.

Deadline for submission of quote: All quotes shall be received by the deadline of July 15th, 2016, 6PM EST and should be emailed to Magali Khalkho, Director of Management Operations, mk@oig.lsc.gov.

mailto:mk@oig.lsc.gov mailto:mk@oig.lsc.gov

CERTIFICATIONS

A. The individual signing certifies that he/she is authorized to contract on behalf of the Contractor and to make these certifications.

B. The individual signing certifies that the prices quoted in this proposal have been arrived at independently, without consultation, communication, or agreement for the purpose of restricting competition.

C. The individual signing certifies that the Contractor is a properly licensed certified public accountant.

D. The individual signing certifies that the firm complies with the GAO requirement of an external quality control review at least once every three years, where applicable.

E. The individual signing certifies that the Contractor, including any individuals to be assigned to the audit, does not have a record of substandard audit work and has not been debarred or suspended from doing work with any Federal, state or local government. (If the Contractor or any individual assigned to the audit has been found in violation of any state or AICPA professional standards, this information must be disclosed.)

F. The individual signing certifies that the Contractor carries professional malpractice insurance.

G. The individual signing certifies that the Contractor is an Equal Opportunity Employer and does not discriminate in hiring, employment or activities because of race, color, religion, sex, age, national origin, disability, or any other basis prohibited by law.

(Contractor's Firm Name)

(Signature of Contractor's Representative)

(Printed Name and Title of Individual Signing)

(Date)

Office of Inspector General

Legal Services Corporation

Contractor Travel Reimbursement Policy

I. Purpose

This policy governs the OIG’s reimbursement of travel costs incurred by OIG contractors.

II. Reimbursable Travel Expenses

When a contract calls for reimbursement of travel expenses, the OIG will reimburse (1) the cost of airplane tickets or other appropriate mode of transportation and (2) the cost of necessary lodging, provided the costs claimed by the contractor are reasonable. In such cases, the OIG will also pay (3) a per diem payment for each traveler as determined below. The OIG will not reimburse other travel costs except as described below.

To be reimbursable, travel expenses must be reasonable and necessary to complete the work contemplated by the contract. The expenses must represent the lowest available rates for accommodations of the sort ordinarily used in the contractor’s field of business. The OIG will not reimburse travel costs when the location of the work to be performed under the contract is within 50 miles of the contractor’s offices and/or the traveler’s place of residence. If personal and business travel are combined, the traveler and/or contractor is responsible for any additional transportation cost; LSC will only reimburse the cost of business travel.

A. Mode of Transportation

Travel is to be completed by means of transportation most beneficial to the OIG and the traveller considering cost, time, and other pertinent factors. Travel by common carrier is presumed to be the most advantageous method of transportation and must be used when reasonably available. The OIG will not pay for first class or business class travel unless it is documented that no other options are available. The OIG will reimburse baggage fees based on the requirements of the carrier. Rental cars expenses must be pre-approved. The OIG will not reimburse for rental car insurance other than that minimally required by law or for expenses arising out of any damage to a rental car. If a personal automobile is used, reimbursement for mileage will be available at the IRS established rate, currently 51 cents per mile. See http://www.irs.gov.

The cost of buses, streetcars, subways and taxicabs incurred in connection with out-of-town travel are reimbursable provided they are reasonable as defined in this policy.

The OIG will not reimburse taxi expenses to and from restaurants. If a personal automobile is reasonably used as transportation to and from an airport or the terminal http://www.irs.gov/ of origin, the OIG will reimburse parking costs. The total reimbursement for mileage to and from that airport or terminal and parking is limited to the cost of the same travel by taxi.

B. Lodging

Lodging expenses are reimbursable when reasonable and incurred in connection with out-of-town travel. While the contractor may not be eligible for GSA rates, the OIG will use those rates as one factor when evaluating the reasonableness of lodging expenses.

Lodging expenses may exceed the GSA rate and still be deemed reasonable.

C. Per Diem

The OIG will reimburse meals at a per diem rate as specified in Chapter 5, Part III.D of

LSC’s Administrative Manual. Per diem rates are available on the GSA website at http://www.gsa.gov/portal/content/101518.

D. Other Allowable Expenses

For purposes of this policy, the term “other allowable expenses” shall refer to baggage fees, reasonable and necessary taxi fees, mileage to and from a principal mode of transportation, airport or terminal parking fees, reasonable internet connectivity at a place of lodging to the extent that other access is not available, and similar items, as limited by other sections of this policy.

E. Non-Reimbursable Expenses

Expenses that will not be reimbursed include the following:

(1) Alcoholic beverages and entertainment;

(2) Laundry, dry cleaning, and pressing;

(3) Travel insurance;

(4) Parking fines;

(5) Charges incurred because of indirect travel for personal reasons;

(6) Gratuities and tips paid to potters, waiters, bellboys, and hotel maids inside the lodging facility;

(7) Nonproductive time related to official travel to and from one’s out-of-town destination;

(8) Any charges, fees, or other associated costs related to the making of reservations or other accommodations for travel; and

(9) Similar expenses.

http://www.gsa.gov/portal/content/101518

III. Authorization of Travel

Excepting emergency situations and expenses qualifying as “other allowable expenses,” the OIG will only pay travel costs that are preapproved. The contractor will submit proposed travel costs using the attached Travel Request Form at least three weeks in advance of travel to the

Administrative Manager1. If the proposed costs are reasonable and consistent with this policy, the Administrative Manager will forward the Travel Request Form to the Project Manager with a recommendation for approval. To the extent he or she agrees with the recommendation, the

Project Manager will sign the Travel Request Form. The Project Manager’s signature indicates approval. Once signed, a copy will be forwarded to the contractor via email by the

Administrative Manager. Other allowable expenses, defined in Section II.D of this policy, need not be submitted for preapproval provided they are reasonable.

When the field work under an OIG contract necessitates changes in preapproved travel plans, the contractor shall inform the Administrative Manager of the changes as soon as possible. If the change occurs before scheduled travel, the contractor shall submit updated approval requests. Emergency travel expenses, defined to include unforeseeable travel costs that arise in the course of business travel, will be reimbursed if they are reasonable and consistent with this policy. In such emergencies, the contractor will submit details of the change and a justification by email to the Administrative Manager at the earliest date possible.

Official travel by independent contractors of the OIG outside the contiguous 48 states of the

United States must be approved in advance by the Inspector General.

IV. Submission and Payment of Travel Expense

The contractor will submit a Travel Expense Report for each instance of travel to the

Administrative Manager with supporting documentation, including receipts for transportation, lodging, and fees associated with Other Reimbursable Expenses. It is recommended that the traveller keep a record of all expenditures to be used in the expense report. The contractor will specify the number of full and partial days of travel for each traveller. All Travel Expense

Reports must be signed and returned within 15 days of the conclusion of the travel.

Travel Expense Reports will be reviewed by the Administrative Manager. Where the OIG determines that the full claim is not adequately supported or reimbursable, it will communicate its determination to the contractor as soon as possible and allow the contractor to provide additional documentation. Any corrected Travel Expense Report must be returned for processing within 10 days.

The Administrative Manager will determine which expenses are allowable (based on the contractor’s submitted Expense Report form and supporting documentation) and indicate his or

Should the needs of a particular contractor dictate that it gives shorter notice; the OIG will be amenable to establishing a shorter deadline on a per-contract basis.

her determination on a copy of the contractor’s reimbursement form. The Project Manager will then review the submission, indicate approval or disapproval by notation and signature, and, if approved, forward the package to the Comptroller of LSC for payment. The OIG has the final authority to determine whether claims are reimbursable under this policy.

V. GSA Rates

The OIG is not entitled to use the GSA rates for airplane tickets where those tickets will be used by contractors or other persons not employed by LSC.

VI. Applicability of LSC’s Travel Policy

To the maximum extent possible, the OIG will interpret consistent with the LSC Travel policy contained in Chapter 5 of LSC’s Administrative Manual. Use of LSC’s travel Policy as an interpretive guide is not, however, intended to establish an employer employee relationship between the OIG and a traveler employed by or working at the direction of a contractor.

Travel Request Form

FROM: (Contractor Name) _____________________________________

(Contractor Address) ____________________________________

PROJECT: _________________________________________________

AUTHORIZING OFFICIAL: _____________________________________

AUTHORIZING SIGNATURE: ___________________________________ DATE: ________________

TRAVELER NAME: ___________________________________________

PURPOSE OF TRAVEL: _____________________________________________________________________

Dates of Travel

Departure City & State

Arrival City & State

Departure Time

Carrier & Flight/Train #

Fare Other Fees

Approval (Initialize)

Total: $ $

Total Fares and Fees: $ _______

Booking Agent: _______________

Fare & Fees Confirmed Through (Date):

Optional

Name and Locations of Hotel No. of Nights Cost Per Night

Total Per Trip $ _______

Rates Confirmed Through (Date):

Optional

Rental Car Company City & State No. of Days Vehicle Type Total Cost

Total: $ _______

Rates Confirmed Through (Date):

Optional

Other Requirements: _______

LEGAL SERVICES CORPORATION

TRAVEL EXPENSE REPORT

TRA\/ELER'S NAME: •SEND REIMBURSEMENT TO:l-----------------1

GRANTEE#:

OEPTCODE#:

TRIP PURPOSE:

STARTDATE:r--1

ENO OATE:c=J

•TELEPHONE:!-----------------~

EMAIL(NON-LSC EMPLOYEES):L--------- -------.-J

·sTART LOCATION:f----------~

'DESTINATION:.__-----------'

(PART Al REIMBURSABLE EXPENSES: , 2

DATE DETAIL OF EXPENSES (Code) TRANSPORT M&IE

TOTAL REIMBURSABLE EXPENSES $0.00 $0.00

(PART BJ VISA BILLING (LSC Card Only)•

TOTAL LSC CREDIT CARD EXPENSES $0.00 $0.00

{PART Cl DIRECT BILLING EXPENSES:

TOTAL DIRECT BILLED EXPENSES $0.00 $0.00

EXPLAHAllON FOR UNUSUAL EXPENSES:

(PART Cl SIGNATURES AND SUMMARY I CERTFY TMAT THIS EXPENS!: REPORT IS TRUE A.HD CORRECT TO THf Bf.ST OF MY KNOWLEOGe.

TRAVELER'S SIGNATURE DATE

APPROVING SIGNATURE DATE

LSC-8509 REVISED 06110

3 4 5

LODGING TAXES OTHER TOTALS

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

TRAVEL EXPENSE (Parts A & C) $0.00

LESS CREDIT CARD EXPENS~Part B) $0.00 LESS DIRECT BILLED EXPENSE (Part C) $0.00

SUBTOTAL DUE TRAVELER $0.00

LESS TRAVEL ADVANCE $0.00

TOTAL DUE TRAVELERl(LSC)" $0.00 lntarnal Approvals: _..:.:ln..:.:il::;;ia::.:l::.s ---=D=-at=e'---

Travel Coordinatorl

• Required Field Accounts Payable Coordinatort------1-----1

Accounting SupervlsorL.. _ __ __. ____ .-J •• If the amount due travel Is negative please attach a check with this report.

Per Diem Locator WebsKe»>» http"/lwww,gsa.gov/portal/category/100120

EXPENSES:

Code

1 MIL

1 AIR

1 TIF

BAG

TRN

CAR

PRK

GAS

CAB

MIE

LOG

TAX

CA

SKF

INF

Descriotion

MILEAGE

AIRFARE

TICKET FEES

BAGGAGE FEES

TRAIN

CAR RENTAL

PARKING

GASOLINE

CAB FARE W/ TIP

MEALS & INCIDENTALS

LODGING

TAXES

CASH ADVANCE

BANK FEES

INTERNET FEES

DEPARTMENTS:

Code Description 1010 Board of Directors 1110 Executive Office 1210 Le<ial Affairs 1310 Gov't Relations 1411 Financial Services 1412 Human Resources 1611 Program Perfonnance 1512 Information Manaaement 1613 Compliance 1610 Comptroller 1810 Information Technology 3130 Inspector Genera I

2124/2011

ADMINISTRATIVE MANUAL

CHAPTERS

BUSINESS TRAVEL

PART III-SUBSISTENCE AND OTHER EXPENSES, EXCLUDING

TRANSPORTATION EXPENSES

D. AUTHORIZED MEAL REIMBURSEMENTS

Except as provided, reimbursement for meals is based on the GSA Per Diem guidelines for standard meal allowances. However, if an individual is on travel status for part of a day, either on the day of departure or day of return to the traveler's home or office, the standard meal allowance is pro-rated as follows:

M&IE ALLOWANCE

When travel is: Your allowance is:

Less than 12 hours* Reimbursement up to $30 l upon presentation of receipts More than 12 hours less than 24 hours* 75 percent of the applicable

M&IE

24 hours or more The day of 75 percent of the applicable on departure M&IE

Full days of travel 100 percent of the applicable

M&IE

The last day of 75 percent of the applicable travel M&IE

*No meal reimbursement will be provided within the Washington, DC Metro Area, except by approval of the Chief Administrative Officer.

Anytime a meal is furnished to a traveler by a host or hotel, it is the traveler's responsibility to reduce the daily per diem following the table below, which is based on the GSA reductions and which is updated annually by GSA:

5 - 8

M&IE $39 $44 $49 $54 $59 $64

Breakfast. ..................... 7 8 9 10 11 12 Lunch ......................... 11 12 13 15 16 18 Dinner . . .......... . ........... 18 21 24 26 29 31 Incidentals ... . . ...... . ... .. .. 3 3 3 3 3 3

There is no meal allowance when all three meals are provided; however, the incidentals for each day will be reimbursed.

When traveling between cities while on official travel, the per diem is paid based on where the traveler spends the night. Daily itemization of meal expenses is not required when the requested reimbursement is based on the per diem.

Per Diem rates change October 1 each year and are seasonal in some areas. Refer to http://www.gsa.gov under Travel Resources to check Per Diem Rates for the current per diem and for an up-to-date breakdown of the meal offset when meals are provided by a host; refer to www.gsa.gov/mie.

The Comptroller is authorized to waive the maximum meal rate when circumstances indicate that additional allowances are necessary and appropriate for the conduct of LSC business. A waiver of the maximum meal rate must be requested in advance of travel. The Comptroller will return a copy of the approved request or an explanation of the denial. Failure to obtain the requisite approval will result in the traveler being reimbursed at the established per diem rate. When authorization is approved to have meals reimbursed on an actual basis for one day or multiple days while on a trip, itemization of meal expenses and receipts are required.

For the Office of the Inspector General (OIG) staff, the Inspector General is the authorizing authority for waivers.

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