SOW_FirstNet_FASB.doc

Statement of Work National Institute of Standards and Technology (NIST)/Finance Division Financial Accounting Standard Board (FASB) Financial Statements for the

First Responder Network (FirstNet) Program Support

1. BACKGROUND:

The Finance Division within the NIST is seeking expert accounting support in preparation of Government fiscal year FY2015 financial statements, footnotes, and other disclosures that are consistent with commercial standards established by the FASB.

Subtitle B, Title VI of the Middle Class Tax Relief and Job Creation Act of 2012(P.L. 112-96) (the Act) created FirstNet, which is responsible for establishing a nationwide, interoperable, wireless public safety broadband network. FirstNet is an independent authority within the National Telecommunications and Information Administration (NTIA). The Vision of First Net is “To provide emergency responders with the first high-speed, wireless nationwide public safety broadband network (NPSBN).” Funding for this project is $7 Billion authorized to build the FirstNet Network. This will be funded by spectrum auctions through 2022. FirstNet’s goal is to ensure there is service in all 50 US states, 5 territories, and the District of Columbia.

FirstNet is led by a fifteen member Board, consisting of twelve members appointed by the Secretary of Commerce as well as the Attorney General, the Secretary of Homeland Security and the Director of the Office of Management and Budget. FirstNet is responsible for taking all actions necessary to ensure the building, deployment, and operation of the network in consultation with Federal, State, tribal, and public safety entities. It is critical that the government have an experienced contractor that can handle a project of such large scope, exposure, and publicity.

Section 6209 of the Act requires the Secretary of Commerce to engage an independent auditor to conduct an annual audit of stand-alone FirstNet financial statements. The statute specifies that the audit be conducted in accordance with “general accounting principles and procedures applicable to commercial corporate transactions.”

The Federal Accounting Standards Advisory Board (FASAB) is the body designated by the American Institute of Certified Public Accountants (AICPA) as the source for generally accepted accounting principles (GAAP) for federal reporting entities. FASAB issued Statement of Federal Financial Accounting Standard 34 (SFFAS 34), The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial Accounting Standards Board, which states that “a federal entity that is preparing GAAP based general purpose financial reports for the first time should implement FASAB standards as FASAB is the preferred method of reporting for federal entities.”

However, the standard does provide that a federal entity that is preparing GAAP-based general purpose financial reports for the first time may, in consultation with its auditors and bodies with oversight authority, elect to apply standards issued by the Financial Accounting Standards Board (FASB) if the entity clearly demonstrates that the needs of its primary users would be best met through the application of FASB standards.

Based on the statutory language and requirements of the primary users of the financial reports, FirstNet has made the following interpretations for its stand-alone financial statements:

a. In the recording and reporting of its financial transactions, FirstNet shall comply with GAAP and financial reporting standards issued by the FASB.

b. The independent audit required by section 6209 of the Act shall be conducted in accordance with Generally Accepted Auditing Standards (GAAS) promulgated by the AICPA on financial transactions recorded and reported in compliance with GAAP applicable to corporate enterprises governed by the FASB.

2. OBJECTIVE:

Obtain a complete gap analysis between the FASB and FASAB standards, FASB financial statements and other required disclosures that are in compliance with FASB standards. Utilizing the gap analysis obtain FASB, FASAB and GAAP compliant financial statements.

3. SCOPE:

Generate gap analysis of the FASB and FASAB standards, preparation of the FY 2015 monthly financial statements and the year-end FASB trial balance from the underlying FASAB compliant data, preparation of the FASB compliant financial statements, footnotes and other required disclosures to be audited by an independent auditor, and FASB disclosure checklist for the FY2015 financials.

REQUIREMENTS:

The Contractor shall provide technical accounting support to conduct the following tasks:

a. Create a project plan in power point for accomplishing the requirement B to G. The project plan shall include the timeline, key personnel, and method for accomplishment.

b. Conduct research on relevant accounting principles, standards and pronouncements related to financial statement presentations and disclosures in conformity with both FASB and FASAB GAAP and, as applicable to FirstNet, a governmental entity performing commercial type transactions. Document the complete analysis and research demonstrating the discrepancies between FASAB and FASB accounting standards for each financial statement line item for the FirstNet standalone financial statements, including line items that may not have included but should have been per standards.

The following table provides an example of the information needed in the financial statement analysis:

In the FS

Adjusting entries

OR

State “No Difference Noted”

Adjusting entries

OR

State “No Difference Noted”

List all FS lines below and any other line items that are necessary

c. Complete a FASB footnote / disclosure checklist for the standalone FASB statements. Document the complete analysis demonstrating the discrepancies between FASAB and FASB accounting standards for each required footnote /other disclosure for the FirstNet standalone financial statements, including disclosures that may not have been included in the past but should have been per standards.

The following table provides an example of the information needed in the analysis:

In the disclosures

sample format for presenting information (table including headers with required data fields)

sample format for presenting information (table including headers with required data fields)

sample format for presenting information (table including headers with required data fields)

d. Prepare the monthly FirstNet standalone FASB based trial balance cross-walked from the FASAB based trial balances, incorporating the appropriate adjusting entries to demonstrate the differences between two accounting standards (FASAB and FASB). Include all supporting schedules and documentation for the FASB adjustments (FASB adjustment GJ package must be provided). Provide balance sheet and income statement based on FASB trial balance.

e. Prepare auditable year end FASB compliant FirstNet standalone trial balance and all required financial statements, footnotes, and other required disclosures, in conformity with FASB GAAP. Include all supporting schedules and documentation for FASB adjustments, disclosures and footnotes. (FASB adjustment GJ package must be provided). The Contractor shall generate a Standard Operating Procedures document which clearly details the methodology employed by the Contractor in performing these tasks.

f. Provide guidance on corrective actions for audit findings throughout the performance period; and

g. Provide bi-weekly status report to management.

4. PERIOD OF PERFORMANCE:

Performance Period: Date of Award to 3/31/2015

5. SCHEDULE AND DELIVERABLES:

Contractor shall provide the following deliverables:

Requirement a Entrance conference Project Plan with timeline and project plan in power point presentation slides

Face-to-face meeting preferred.

Within 5 business days from the contract award

Requirement b and c Email the documentation of FASB v FASAB research and analysis to the COR

Within 3 weeks from the entrance conference

Requirement d Email the monthly FirstNet standalone trial balances, documentation and schedules, balance sheet, and income statement to the COR – for months XXX FY2015 to February FY2016

Within 20 days from the month-end system close at NIST. The month-end close generally takes place on the first business day of each month.

Requirement e Email FY2015 Year-End Financial Statements, footnotes and other required disclosures; documentation and schedules, and standard operating procedure to the COR.

The files shall be both in editable application (Word and Excel) and in a non-editable application (PDF).

November 1st, 2015

Requirement f Guidance on corrective action for audit findings and responses. Emailed to COR in Word document format.

Throughout the contract period

Requirement g Email the bi-weekly status report, including the tasks accomplished and to-be accomplished with projected timeline until the next reporting period.

Bi-weekly Effective two weeks after the contract award.

All draft deliverables will be submitted to the COR in a soft copy, editable file, and provided in accordance with dates specified in this section. The government will have 7 business days to review, and if no feedback is provided, the deliverables will be considered final. If the government provides feedback within the allotted time, the contractor will incorporate the feedback and finalize within 3 business days from receipt of the feedback. All final deliverables shall be provided in soft copy (via email) and hard copy to the COR.

6. KEY PERSONNEL QUALIFICATIONS:

· Demonstrated knowledge and experience in telecommunication industry financial management and financial statements reporting in compliance with FASB accounting standards, specifically, in major telecommunication companies in the U.S.A.

· Demonstrated experience in private sector financial statement reporting, under FASB.

· Demonstrated experience with current GAO, OMB and Treasury regulations and guidance specific to financial management.

· CPA License/or other professional certification

· Minimum of five year experience with Federal Government financial/accounting systems

· Minimum of five year experience in major telecommunication companies’ financial management/audit

Project Manager -The primary POC between contractor and Government for all contractual issues, -The final approver of all contract deliverables.

-The manager of the overall task.

· Bachelor’s degree in Accounting or related field (or an additional 4 years of relevant experience in lieu of degree)

· Demonstrated strong experience/knowledge in telecommunication industry’s financial management and financial statements reporting in compliance with FASB accounting standards, specifically, in major telecommunication companies in the U.S.A.

· Demonstrated experience in the private sector financial statement reporting, under FASB.

· Demonstrated strong experience with current GAO, OMB and Treasury regulations and guidance specific to financial management.

· Excellent oral communication and writing skills.

· Excellent project management skills.

· CPA License/or other professional certification

· Minimum of four year experience with Federal Government financial/accounting systems

· Minimum of four year experience in major telecommunication companies’ financial management/audit

· Demonstrated ability to manage projects.

· Demonstrated ability to work successfully with a diverse workforce

7. PLACE OF PERFORMANCE:

The task will be performed primarily at contractor’s site. Some meetings shall take place at NIST located at 100 Bureau Drive, Gaithersburg, MD 20899 and/or at the Herbert C. Hoover Building located at 1401 Constitution Avenue, Northwest, Washington, D.C. Local travel costs will be reimbursed in accordance with Federal Travel Regulations.

8. GOVERNMENT PROVIDED SERVICES/SPACE”

The Government will not furnish the Contractor with phone services or work space. The contractor will have access to NIST and HCHB, 1401 Constitution Avenue, Northwest, Washington, D.C., for occasional meetings with NIST or the FirstNet staff. Local travel costs will be reimbursed in accordance with Federal Travel Regulations.

9. OPERATING HOURS

The contractor shall work with the Government during normal Government business operating hours (8:00AM to 4:00PM Eastern Time, Monday through Friday).

10. SECURITY REQUIREMENTS

The contractor shall comply with NIST security requirements regarding access to government facilities and follow NIST policies and procedures. The contractor must also comply with DOC and NIST IT Security Policies. For any subsequent staffing changes, the contractor, at minimum, will provide five (5) working days written notice of requests for contractor staff to be provided NIST badges and any other required access.

Source Selection Information

See FAR 3.104