TNS Audit RFP 2025-2027 FINAL.pdf

REQUEST FOR PROPOSALS

TOWN OF NEW SHOREHAM, RI

OFFICE OF THE TOWN MANAGER

PROFESSIONAL AUDITING AND AGREED-UPON PROCEDURES

SERVICES

Prepared for and in coordination with the Office of the Town Manager

PROPOSAL DUE DATE/TIME: AUGUST 11, 2025 - NO LATER THAN 2:00 PM

AMY LEWIS LAND

TELEPHONE: (401) 466-3200

FAX: (401) 466-3219

TTY: 711

ALAND@NEWSHOREHAMRI.GOV

REQUEST FOR PROFESSIONAL AUDITING AND AGREED-UPON PROCEDURES

SERVICES

The Town of New Shoreham, Rhode Island (hereafter referred to as the TOWN), is seeking proposals from qualified firms of certified public accountants (hereafter referred to as the AUDITOR or APPLICANT or FIRM), to perform an audit of its financial statements for the fiscal year ending June 30, 2025, with the option of auditing its financial statements for each of the two subsequent fiscal years. Interested firms should respond to this request on, or before, the time due for submission. Each Applicant submitting proposals must be lawfully engaged in the practice of certified public accounting, in good standing, and with specific experience in the type of services requested herein within the State of Rhode Island.

Proposals must be received by the Office of the Town Manager, located at 16 Old Town Road, Block Island, RI 02807 no later than 2:00 PM on August 11, 2025 from firms, to be eligible for consideration by the Town. Each proposal shall be submitted in a sealed envelope which is clearly marked:

RFP for

Professional Auditing and Agreed-Upon Procedures Services

Copies of the RFP documents and all future addenda are available, at no charge, on the Town’s website at newshorehamri.gov.

The Town reserves the right to reject any or all proposals or any part thereof, to waive any formality, informality, information and/or errors in the proposal, to accept the proposal considered to be in the best interest of the Town, or to solicit and purchase on the open market if it is considered in the best interest of the Town to do so.

Failure to submit all information as detailed in the RFP documents and/or submission of an unbalanced or incomplete proposal is sufficient reason to declare a proposal as non-responsive and subject to disqualification.

TOWN OF NEW SHOREHAM

OFFICE OF THE TOWN MANAGER

16 OLD TOWN ROAD • P.O. BOX 220

BLOCK ISLAND • RHODE ISLAND • 02807

http://www.new-shoreham.com/

All requests for proposals are advertised, at the Town’s discretion, in various publications and are posted publicly as detailed below:

Name Advertisi ng Medium

Address Phone/Fax Email and Web Address

Town of New Shoreham, RI

Posted on Town Website

16 Old Town Road, Block Island, RI 02807

(401) 466-3210 newshorehamri.gov

RI Purchasing Group

Bid House Website https://www.bidnetdirect.

com/rhode-island/new-shoreham

TOWN OF NEW SHOREHAM, RI

Amy Lewis Land, Town Manager

July 21, 2025

PROPOSAL DUE DATE/TIME: AUGUST 11, 2025 - NO LATER THAN 2:00 PM

http://www.new-shoreham.com/ https://www.bidnetdirect.com/rhode-island/new-shoreham

REQUEST FOR PROPOSALS

PROFESSIONAL AUDITING AND AGREED-UPON PROCEDURES SERVICES

The Town of New Shoreham, Rhode Island (hereafter referred to as the TOWN), is seeking proposals from qualified firms of certified public accountants (hereafter referred to as the AUDITOR or APPLICANT or FIRM), to perform an audit of its financial statements for the fiscal year ending June 30, 2025, with the option of auditing its financial statements for each of the two subsequent fiscal years. The scope of services will include the Block Island School (“School”) and Block Island Land Trust (“BILT”). Interested firms should respond to this request on, or before, the time due for submission.

I. ENGAGEMENT OVERVIEW

1. GENERAL

The Town of New Shoreham, a municipal corporation in the state of Rhode Island, is seeking proposals from qualified firms of certified public accountants to perform an audit of its financial statements for the fiscal year ending June 30, 2025, with the option of auditing its financial statements for each of the two subsequent fiscal years. The scope of services will include the Block Island School (“School”) and Block Island Land Trust (“BILT”).

Interested Applicants should respond to this request on, or before, the time due for submission.

The Town of New Shoreham is required to have an annual audit of its financial statements performed by an independent Certified Public Accounting Firm, following the close of the June 30th fiscal year. This annual audit is required by the Federal Government under the Single Audit Act of 1984, as amended by the Single Audit Amendments of 1996. It is also required by the State of Rhode Island {R.I.G.L. 45-10-4 and 45-10-5} and the Town of New Shoreham (Town Charter Section 1104).

The Town of New Shoreham Treasurer is responsible for establishing the specifications for each audit, recommending the selection of the audit firm to the Town Council, and measuring the performance of this firm against the predetermined specifications.

There is no expressed or implied obligation for the Town of New Shoreham to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

The School has implemented the State of Rhode Island Uniform Chart of Accounts (UCOA).

The auditors engaged to perform the annual audit of the School shall also be engaged to report on their tests of compliance with the School UCOA requirements in an agreed-upon procedures compliance attestation format.

All inquiries concerning these specifications should be addressed to Mona Dwyer Helterline, Finance Director at (401) 466-3209, mhelterline@newshorehamri.gov or Amy Lewis Land, Town Manager at (401) 466-3213, aland@newshorehamri.gov.

During the evaluation process, the Town of New Shoreham reserves the right to request additional information or clarifications from Applicants, or to allow corrections of errors or omissions. The Town reserves the right to award in part or in full to serve the Town's best interest. The Town also retains the right to reject any and all proposals.

Any representations made with the submission will be relied upon and if proven to be false will be grounds for termination of the contract, if awarded. False representations will also be grounds for forfeiture of all payments under the contract. This will not limit the Town from seeking any other legal or equitable remedies.

As required by Section 45-10-4 of the RI General Laws, it is understood that the contract between the Town and the audit firm shall require the auditor or the audit firm to release any and all information obtained in the course of the engagement to the Rhode Island State Auditor General (or his designee). This information includes but is not limited to financial data, analysis, audit documentation, and memorandum. Documentation of the independent auditors shall be made available to the Auditor General (or their designee) upon request. The request for such information by the Auditor General shall be responded to promptly. Failure to provide this information shall constitute a breach of contract, and the contract shall give the Auditor General standing in court of competent jurisdiction to enforce this provision.

It is expected that selection of a firm will be completed by August 15, 2025. Following the notification of the selected firm, it is expected a contract will be executed between both parties by August 20, 2025.

Continuation beyond the initial fiscal year will be at the discretion of the Town.

2. SCOPE OF ENGAGEMENT

The Town of New Shoreham desires the auditor to express an opinion on the fair presentation of its basic financial statements which will include government-wide financial statements, fund financial statements, and notes to the financial statements in conformity with generally accepted accounting principles.

The auditor shall also be responsible for performing certain limited procedures, as required by generally accepted auditing standards, involving required supplementary information mandated by the Governmental Accounting Standards Board.

Required Supplementary Information shall include:

• Management’s Discussion and Analysis

• Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual

• Schedules related to defined benefit pension plans and OPEB plans, if applicable

The Town also desires the auditor to express an "in-relation-to" opinion on the supplementary financial statements and schedules based on the auditing procedures applied during the audit of the basic financial statements.

Supplementary financial statements, schedules and information shall include:

• Combining fund financial statements shall be presented as supplementary information for all non-major governmental funds. Each non-major fund (included within the Special Revenue Funds, Capital Projects Funds, Debt Service Funds, and Permanent Funds) shall be presented as separate columns in the combining fund financial statements. Similarly, combining financial statements shall also be presented for each of the other fund types when there is more than one internal service fund, enterprise fund, and fiduciary fund.

• Combining financial statements shall be presented for the General Fund when separate funds are maintained within the accounting system but the funds do not qualify as special revenue funds, in accordance with generally accepted accounting principles, and are merged with the General Fund for financial reporting purposes.

If applicable, an audit of major programs shall be performed in accordance with the criteria outlined in OMB Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards - Subpart F – Audit Requirements.

• The auditors shall audit major programs as required by OMB Guidance 2 CFR part 200 -

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F – Audit Requirements and express an opinion on compliance for each major program.

• Major programs shall be determined in accordance with guidance provided in OMB Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F – Audit Requirements.

• The auditor is not required to audit the supplementary schedule of expenditures of federal awards. However, the auditor is to provide an "in-relation-to" report on that schedule based on the auditing procedures applied during the audit of the financial statements.

The selected auditors will be required to audit the Block Island School and the Block Island Land Trust, a component unit of the Town of New Shoreham.

Other schedules may be required by the Town and/or the State of Rhode Island Director of Revenue, Auditor General, and Department of Education or as required by the applicable section of the general laws such as, Rhode Island General Law Section (RIGL) 45-10-6 (Contents of Audit Report).

• The Tax Collector’s Annual Report shall be presented within Other Supplementary Information to meet the requirements of RIGL 45-10-6 for additional information to the basic financial statements. The Tax Collector’s Annual report should be presented in accordance with the revised format requirements of the RI Department of Revenue - Division of Municipal Finance (contact the Division for the most current template). The auditors engaged to audit the municipality’s financial statements shall also report on the Tax Collector’s Annual Report, as supplementary information (“fairly presented in relation to the municipality’s basic financial statements”).

• Municipal Transparency Portal (MTP) - Enacted legislation amended Rhode Island

General Laws §45-12-22.2 and §44-35-10 to improve required reporting by creating the Municipal Transparency Portal (MTP) which will represent a centralized location for municipal financial information. Each municipality shall include their Annual Supplemental Transparency Report, MTP2, within their annual audited financial statements. This requires one schedule that includes (1) municipal reportable government services and (2) all school services (consistent with RIDE UCOA requirements). The Annual Supplemental Transparency Report, MTP2, included within the annual audit report shall also include reconciliation to the amounts included in the fund level financial statements.

The auditors engaged to audit the municipality’s financial statements shall also report on the Annual Supplemental Transparency Report (including the reconciliations), MTP2, as supplementary information (“fairly presented in relation to the municipality’s basic financial statements”).

Auditors are not required to opine on the municipality’s determination of “reportable government services” (RGS) as defined in Section 2.1 of the Municipal Transparency Portal Implementation Guidance. The municipality will make the determination of “reportable government services” for inclusion in the various reports required to be submitted through the municipal transparency portal. However, auditors will be expected to review the reconciliations as part of the Annual Supplemental Transparency Report, MTP2, (required for inclusion in the audited financial statements as supplementary information) to assess the inclusion of amounts reported which are not within the municipality’s or school’s general fund.

The format of the required MTP schedules and related reconciliations, as well as, the typical timeline for filing of the annual municipal data report and coordination with annual financial statement audit, are detailed in the MTP Implementation Guidance

(available on the RI Division of Municipal Finance website: Municipal Transparency Portal | RI Division of Municipal Finance).

The Independent Auditor’s Report shall include reference to the Annual Supplemental Transparency Report, MTP2, as supplementary information. See the Municipal Transparency Portal Implementation Guidance for additional information.

3. AUDITING STANDARDS DEFINED

The audit shall be conducted in accordance with generally accepted auditing standards established by the American Institute of Certified Public Accountants. The audit shall also be conducted in accordance with the standards for financial audits set forth in Government Auditing Standards issued by the Comptroller General of the United States. If a single audit is required, then the standards contained in the amended (July 1996) Single Audit Act of 1984 and the provisions of revised OMB Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F – Audit Requirements shall also be followed.

4. REPORTS TO BE ISSUED

Following the completion of the audit of the fiscal year's financial statements, the auditor shall report on:

A. The fair presentation of the financial statements in conformity with generally accepted accounting principles based upon an audit performed in accordance with generally accepted auditing standards and Government Auditing Standards. The auditor shall also make reference to, but not opine on, required supplementary information consistent with reporting guidance in the applicable AICPA Audit Guide.

B. Supplementary financial statements, schedules and information being fairly stated in all material respects in relation to the basic financial statements as a whole.

• The supplementary information shall include combining fund financial statements (and if applicable, General Fund combining financial statements), the Annual Supplemental Transparency Report (MTP2, including the reconciliations), and the Tax Collector’s Annual Report.

C. Internal control over financial reporting and on compliance and other matters based upon an audit of financial statements performed in accordance with Government Auditing Standards.

D. Reports and summaries related to federal financial assistance as required by OMB

Guidance (the auditor should refer to applicable OMB guidance in effect and the applicable AICPA Audit Guide for reporting guidance) and complete SF-SAC Data https://municipalfinance.ri.gov/municipal-transparency https://municipalfinance.ri.gov/municipal-transparency

Collection Form to be submitted in accordance with the current method of submission for Single Audit reporting packages (per OMB public Notice), to the Federal Audit Clearinghouse Internet Data Entry System.

E. The supplementary schedule of expenditures of federal awards (SEFA) - the auditor is to provide an "in-relation-to" opinion on the SEFA, based on the auditing procedures applied during the audit of the financial statements.

F. Other reports that may be requested by the Director of Revenue and/or Auditor General or as required by the applicable section of the general laws.

G. Upon completion of the audit, the Town requires a separately issued three-part management letter. The first part should pertain to municipal recommendations; the second part should focus on the school department and the third part on the Block Island Land Trust. The management letter should discuss any opportunities for strengthening internal controls and improving operational efficiency.

II. SELECTION OF THE AUDITORS

PROPOSALS will be examined and evaluated based on the factors presented below, responses to other items requested herein and fee factors indicated in the response. It is the responsibility of the APPLICANT to provide information, evidence or exhibits which clearly demonstrate the ability to satisfactorily respond to the RFP and the factors outlined herein.

Proposals will be publicly opened on the date specified. Proposals will be available for inspection by competing proposers and the general public. An evaluation committee will be comprised of individuals knowledgeable about auditing and financial reporting matters.

Final selection of the Town’s audit firm requires the approval of the Town of New Shoreham Town Council and the Auditor General of the State of Rhode Island.

Factors to be considered shall include, but are not limited to, the following:

1. TECHNICAL QUALIFICATIONS

A. The selected Certified Public Accounting Firm must meet each of the general standards promulgated by the Comptroller General of the United States as set forth in the revision of Government Auditing Standards (the “Yellow Book”).

B. The auditor must meet the independence requirements of the American Institute of

Certified Public Accountants and the independence requirements of Government Auditing Standards. The firm should provide an affirmative statement that it is independent of the Town of New Shoreham and its component units in accordance with these standards. This requirement must be complied with during the entire term of the audit.

C. The firm must possess a Certified Public Accountant's license and permit issued by the State of Rhode Island Board of Accountancy. (An affirmative statement should be included indicating that the firm and all assigned key professional staff are properly licensed to practice in the State of Rhode Island.) This requirement must be complied with during the entire term of the audit.

D. The proposal should state the size of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement will be performed. The firm should provide as much information as possible regarding the number, qualifications, experience and training, including continuing professional education of the partners, managers, specialists and staff personnel who would be assigned to the engagement. Information regarding the firm's ability to provide incidental "non-audit" services should also be included. In accordance with Government Auditing Standards, if the firm provides non-audit services, it must evaluate whether providing the services creates independence impairment with respect to the audit of the Town.

E. The senior accountant in charge of fieldwork shall be a certified public accountant.

F. The audit organization and the individuals responsible for planning, directing, conducting substantial portions of the fieldwork, or reporting on government audits shall meet the continuing educational requirements of Government Auditing Standards issued by the Comptroller General of the United States.

G. The audit organization shall have an appropriate internal quality control system in place and participate in an external quality control review program as required by Government Auditing Standards. The audit organization shall provide a copy of their most recent external quality control review report and also submit the results of any subsequent review performed during the term of the contract to the Town and the Auditor General.

H. The firm should provide a listing of current clients, as well as a summary of the most significant engagements performed in the last five years that are similar to the engagement described in this request for proposals. (Of specific interest is experience in small to medium sized governmental audits - budgets up to $25 million, with emphasis on municipal audits.) Finally, the firm should provide a listing of professional references.

I. The audit organization shall identify any sub-contractors, co-proposers, or other entity that will be used to provide the professional services sought by the request for proposal.

2. AUDIT APPROACH

The proposal should set forth a work plan, including an explanation of the audit methodology to be followed to perform the required services. The following information should be included:

A. Proposed segmentation of the engagement.

B. Level of staff and estimated hours assigned for each segment.

C. Sample sizes and the extent to which statistical sampling is to be used in the engagement.

D. Use of software.

E. Type of analytical procedures to be used.

F. Approach to be taken to gain and document an understanding of the Town’s internal control structure.

3. FEE SCHEDULE

The sealed proposal should contain all pricing information relative to performing the audit engagement as described in this RFP. The total fees should be listed on the Bid Form provided in this package and should include all costs, both direct and indirect:

A. The firm’s fees for performing the Town’s audit for each of the three years.

B. The firm’s fees for performing the School audit for each of the three years.

C. The firm’s fees for performing the School UCOA Agreed-Upon Procedures for each of the three years.

D. The firm’s fees for performing the BILT audit for each of the three years.

E. The firm’s hourly fees for performing specialty work for each level of the professional staff.

F. The cost of a performance bond for each of the three years. (Note: This bond may be implemented at the Town’s discretion.).

4. PROFESSIONAL LIABILITY

The FIRM must provide the amount and type of professional liability insurance coverage maintained. The audit firm shall have at the time of proposal, and throughout the period of engagement, professional liability insurance coverage of not less than $1 million.

Additionally, the FIRM must provide a listing of any professional complaints pending or resolved against the firm or any of its partners with the state boards of accountancy, or any self-regulatory, professional or government authority including, but not limited to, the AICPA or the Rhode Island Board of Accountancy. Information regarding any lawsuits or claims against the firm, pending or resolved, should also be included.

5. PROPOSAL EVALUATION

Proposals will be evaluated using the following scoring weights resulting in a maximum score of 100 points:

Maximum points

Overall qualifications and experience of the firm and the specific engagement personnel to be assigned focusing on experiences with governmental entities and the specific line of business or services provided by the entity to be audited

Overall audit approach and audit strategy described/outlined in the proposal and firm capacity to perform the engagement within the specified timeframe (prior experience of the firm in meeting timelines should be factored in here)

Audit fees - See formula for points awarded for audit fees (*) 30 30

Maximum evaluation points 100 100

* Evaluation technique – audit fees

Audit fee score = (lowest qualified bid/bid for firm being evaluated) X 30 points

Example: Assuming 3 bids received were: (firm A) - $40,000, (firm B) - $46,000, (firm C) - $50,000

Firm A (the lowest bidder) awarded 30 points $40,000/$40,000 X 30 points = 30 Firm B awarded 26 points $40,000/$46,000 X 30 points = 26 Firm C awarded 24 points $40,000/$50,000 X 30 points = 24

An evaluation grid will be prepared summarizing the scoring by each member of the evaluation committee and the composite ranking. If any firm is disqualified and therefore not evaluated, the reason for such action shall be documented.

III. AUDIT SPECIFICATIONS

1. RESPONSIBILITIES OF THE TOWN

A. The Town Treasurer and School Finance Director will close funds upon the completion of the fiscal year. These closings will include a series of adjusting journal entries which are intended to ensure that each fund is presented fairly and contains no material misstatements.

B. The Town Treasurer will provide adjusted trial balances for each municipal fund and the component unit. Work papers supporting all material balance sheet accounts will be available for auditing use and will be referenced in a convenient format. Work paper copies, source documents and general ledgers will be furnished as requested. The School Finance Director will provide trial balances for each school fund. Necessary supporting documents and schedules will be available at the School Department.

C. Control over financial statement presentation will remain with the Finance Department provided that the statements conform to generally accepted accounting principles. This control shall extend to the determination of report combinations, the selection of report line items, the formatting of combining statements, footnote schedules and supplemental data.

D. Municipal Fund Structure and Management Information Systems

The accounting function is automated, utilizing the Accufund governmental accounting software. Funds have been established in accordance with standards prescribed by GASB.

The following table illustrates the type and number of funds currently used by the Town (inclusive of the School and Block Island Land Trust) for the year ended June 30, 2024:

Fund Type Number of Funds General Fund 1 Major Special Revenue Fund (School) 1 Non-major Funds:

Permanent 1 Special Revenue 28

Proprietary Funds 2 Fiduciary Funds 2 Component Unit (BILT) 1

E. School Accounting and Management Information Systems

The School Department also utilizes the Accufund accounting system, though its accounting is autonomous from the municipal function. The School’s Finance Director is responsible for the integrity of the general ledger for the School General Fund and each of the many restricted funds currently in use. At fiscal year end, the School Department is responsible for the preparation of the Annual Uniform Chart of Accounts Data Submission to the RI Department of Education. The following table illustrates the type and number of funds currently used by the School for the year ended June 30, 2024:

Fund Type Number of Funds Special Revenue (Unrestricted) 1 Special Revenue (Restricted) 13 Custodial Fund 1

2. RESPONSIBILITIES OF THE AUDIT FIRM

An annual audit shall be completed and final audit reports (inclusive of all audit communications) related to the financial statements shall be delivered to the municipality, State Auditor General and State Director of Revenue within six months after the close of the fiscal year for each year (as required by Section 45-10-5 of the General Laws). A copy of final written correspondence between the audit firm and those charged with governance (e.g. Statement on Auditing Standards – The Auditor’s Communication with Those Charged with Governance) shall also be delivered to the State Auditor General.

An examination is to be made in accordance with generally accepted auditing standards and government auditing standards, to determine whether the Town's financial statements are in compliance with generally accepted accounting principles. The reports to be issued include, but will not be limited to, the following:

A. Thirty (30) copies of the Complete Town of New Shoreham Audited Financial Statements and Supplemental Schedules, as described below:

i. Independent Auditor’s Report

ii. Management’s Discussion and Analysis (prepared by Town)

iii. Basic financial statements

i. Government-wide Financial Statements

1. Statement of net position

2. Statement of activities

ii. Fund Financial Statements

1. Balance sheet – governmental funds

2. Reconciliation of governmental funds balance sheet to the statement of net position

3. Statement of revenues, expenses and changes in fund balances – governmental funds

4. Reconciliation of the governmental funds statement of revenues, expenses and changes in fund balances to the statement of activities

5. Statement of net position – proprietary funds

6. Statement of revenues, expenses and changes in fund net position – proprietary funds

7. Statement of cash flows – proprietary funds

8. Statement of fiduciary net position – fiduciary funds

9. Statement of changes in net position – fiduciary funds

iii. Notes to basic financial statements

iv. Required supplementary information to financial statements

v. Supplementary information to financial statements

B. Thirty (30) copies of the Town of New Shoreham Independent Auditors' Reports and

Supplemental Schedule of Federal Financial Assistance required by the Single Audit Act of 1984 (as amended by the Single Audit Act Amendments of 1996) with Reports on Compliance and Internal Controls including but not limited to:

i. 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

ii. Report on Compliance for Each Major Program and Report on Internal Control Over Compliance Required By the Uniform Guidance

iii. Schedule of Findings and Questioned Costs

iv. Schedule of Expenditures of Federal Awards

v. Notes to Schedule of Expenditures of Federal Awards

vi. Data Collection Form

C. Thirty (30) Copies of the Town of New Shoreham/Block Island School/Block Island Land

Trust Management Letter on Internal Controls and other Matters. The Management Letter should include comments, and/or recommendations beyond those included in the reports described above, on such matters as:

i. Policies, procedures and practices employed by the municipality, School and Land Trust

ii. Other matters, for example, control deficiencies that are not significant deficiencies or material weaknesses

iii. Use of resources to provide a governmental service in a reasonable, judicious, economical, and efficient manner

iv. Compliance with state laws pertaining to the Town and with rules and regulations established by the Town

D. Fifteen (15) Copies of the Block Island School audited financial statements including a report on the fair presentation of the financial statements in conformity with generally accepted accounting principles and a 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 Accounting Standards.

E. Fifteen (15) Copies of the Block Island School final agreed-upon procedures report on the School Department’s compliance with the Uniform Chart of Accounts.

F. Fifteen (15) Copies of the Block Island Land Trust audited financial statements including a report on the fair presentation of the financial statements, report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Governmental Accounting Standards, and any reports required under trust, loan and or grant agreements.

G. In conformance with changes in the General Laws of the State of Rhode Island, the audit firm will be responsible for other state mandated reports as requested by the Town, Director of Revenue, and the Auditor General, or as required by the applicable section of those general laws.

H. Final audit reports (inclusive of all audit communications) shall also be supplied in PDF format so that they might be transmitted electronically.

3. ADDITIONAL CONSIDERATIONS

A. The Town will expect adherence to a prescribed audit schedule. The Town will work with the firm to develop a mutually acceptable timetable. At a minimum, preliminary trial balances and all required supplementary schedules shall be available by October 15th.

Fieldwork should be completed by December 1st and draft financial statements, single audit reports and management letters should be available by December 15th. Final audit reports (inclusive of all audit communications) related to the financial statements shall be delivered to the New Shoreham Town Council, State Auditor General, State Director of Revenue and Rhode Island Department of Education within six months after the close of the fiscal year for each year.

B. The Town will expect periodic meetings with the firm for the purpose of discussing audit progress, adherence to deadlines and proposed audit adjustments. Draft copies of all audit reports and the management letter shall be submitted to the Town prior to the exit conference so that there will be adequate time for review.

C. It is the responsibility of the Town’s management for the implementation of all pronouncements issued by promulgating authorities which may affect the content and presentation of the financial statements issued. The Town and audit firm should review new pronouncements formally during all entrance and exit conferences. In accordance with Government Auditing Standards, the auditor may provide technical advice based on their technical knowledge and expertise and if the firm provides non-audit services, it must evaluate whether providing the services creates independence impairment with respect to the audit of the Town.

D. If adjustments to accounts are discovered during the performance of various auditing tests, these adjustments should be proposed to the Treasurer or School Department when appropriate and in a timely manner. If the cumulative effect of the proposed entries is not determined to be material to the financial statements, the adjustments will be booked at the discretion of the Treasurer or School.

E. The Audit firm will notify the Town and School upon determining that a particular financial condition warrants a Management Letter comment. This will allow for adequate time to review and respond to the issue, and to discuss its validity with the Audit firm.

F. The Auditor will allow the Town access to the audit documentation which detail account and report line item balances, proposed adjustments, report schedules, footnotes, cited deficiencies of any type and management letter comments. The auditors must make the same audit documentation available to the successor auditors upon completion of the term of this engagement.

G. Upon, the completion of each audit, the Town will receive one complete copy of audit adjustments for historical purposes.

H. It is understood that the contract between the municipality and the audit firm shall require the auditor or the audit firm to release any and all information obtained in the course of the engagement to the Rhode Island State Auditor General (or his designee). This information includes, but is not limited to financial data, analysis, audit documentation, and memorandum. The audit documentation of the independent auditors shall be made available to the Auditor General (or his designee) upon request. The request for such information by the Auditor General shall be responded to promptly. Failure to provide this information shall constitute a breach of contract, and the contract shall give the Auditor General standing in a court of competent jurisdiction to enforce this provision.

I. The School Department implemented the Uniform Chart of Accounts (UCOA) as promulgated by the Auditor General and Commissioner of Education in accordance with Rhode Island General Law 16-2-9.4. Each municipal school district, regional school district, collaborative, or charter school, which is required to adopt the UCOA, shall have additional compliance testing procedures designed to assess compliance with UCOA requirements and the entity’s effectiveness of internal control over compliance with those requirements.

See Appendix 1 for the agreed-upon procedures. Please note that the agreed-upon procedures may be subject to subsequent modification.

Fifteen (15) copies of the final agreed-upon procedures report on the School Department’s compliance with the Uniform Chart of Accounts shall be delivered to the New Shoreham School Department.

Auditors should have performed the test work necessary to complete the UCOA Agreed- Upon Procedures before issuing the audit report. New Shoreham shall provide the agreed-upon procedures report along with the audited financial statements to the Rhode Island Department of Education and the Office of the Auditor General at the conclusion of the annual audit or the revised timeline established by the Rhode Island Department of Education and the Office of the Auditor General.

The dollar cost of the bid should specifically identify the fee for the audit services and the fee for the agreed-upon procedures.

IV. PROPOSAL SPECIFICATIONS

1. PROPOSAL CONTENTS

The successful proposal should contain the following:

A. Name(s), Titles, Telephone numbers and email addresses of the Firm's Contacts.

B. The selected CPA firm must meet each of the general standards promulgated by the

Comptroller General of the United States as set forth in the revision of Government Auditing Standards.

C. The firm should provide an affirmative statement that it is independent of the Town of New Shoreham as defined by generally accepted auditing standards. The firm should also provide an affirmative Statement that it is independent of all component units of the Town of New Shoreham as defined by those same standards.

D. The firm must possess a Certified Public Accountant's license and a permit issued by the State of Rhode Island Board of Accountancy.

E. The senior accountant in charge of fieldwork shall be a certified public accountant.

F. The audit organization and the individuals responsible for planning, directing, conducting substantial portions of the fieldwork, or reporting on government audits shall meet the continuing educational requirements of Government Auditing Standards issued by the Comptroller General of the United States.

G. The audit organization shall have an appropriate internal quality control system in place and participate in an external quality control review program as required by Government Auditing Standards. The audit organization shall provide a copy of their most recent external quality control review report and also submit the results of any subsequent review performed during the term of the contract to the Town and the Auditor General.

H. The firm must provide representation that its proposal encompasses all the requirements set forth in this request for proposal.

I. The firm must provide a profile which includes:

a. The size of the firm

b. The size of the firm's government accounting staff

c. The location of the office from which the work on the engagement will be performed

d. Approximate composition of the firm's practice by service type (i.e. audit, tax, general accounting, advisory) and by industry (i.e. non-profit, governmental, health care, manufacturing, other)

e. Current client listing

f. Listing of the most significant engagements performed over the last five years, most especially municipal and school engagements

g. The amount and type of professional liability coverage - the audit firm shall have at the time of proposal, and throughout the period of engagement, professional liability insurance coverage of not less than $1 million

h. List of any professional complaints pending or resolved against the firm or any of its partners with the state boards of accountancy, or any self-regulatory, professional or government authority including but not limited to the AICPA, or Rhode Island Board of Accountancy

i. Information regarding any lawsuits or claims against the firm, pending or resolved

j. A statement that there exist no client conflicts which would inhibit the ability to perform the audit in accordance with professional standards

k. Representation that the private auditor is independent under the requirements of the

American Institute of Certified Public Accountants and Government Auditing Standards

l. Representation that the private auditor meets the continuing educational requirements of Government Auditing Standards

m. Representation that any sub-contractors, co-proposers, or any other entity providing professional services under the engagement will be subject to, and will have met, all the same applicable requirements as the proposer

n. Representation that the private auditor has an appropriate internal quality control system in place and has participated in an external quality control review program as required by Government Auditing Standards

o. The audit organization shall provide a copy of their most recent external quality control review report to the municipality engaging the auditor and also submit the results of any subsequent review performed during the term of the contract

p. A representational copy of the Firm's audited statements which reflects the quality of the report

q. Representation that the private auditor is familiar with generally accepted accounting principles for state and local government units and with the generally accepted auditing standards promulgated by the AICPA; the standards for financial audits set forth in Government Auditing Standards issued by the Comptroller General of the United States; the Single Audit Act of 1984 as amended in July 1996 and the provisions of OMB Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards - Subpart F – Audit Requirements and will conduct the audit and will report in accordance with those standards

J. Profile of the Professional Staff including:

a. Information regarding the number, qualifications, experience and training of the professional staff who would be assigned to the engagement

b. Description of the firm's formal training process and the continuing education requirements

K. The firm should provide an explanation of the planned audit approach including:

a. Expected time budget and completion date for the audit

b. Proposed segmentation of the engagement

c. Level of staff and estimated hours assigned for the engagement

d. Sample sizes and the extent to which statistical sampling is used

e. Use of EDP Software

f. Type of analytical procedures used

g. Approach to be taken to understand and evaluate the Town's internal control structure

h. Explanation of the firm's assessment of materiality

L. A completed Bid Form, summarizing the following:

a. The firm's fees for performing the Town audit for each of the three years

b. The firm’s fees for performing the School audit for each of the three years

c. The firm’s fees for performing the BILT audit for each of the three years

d. The firm's hourly fees for special work (for each level of the professional staff)

e. The cost of a performance bond for each of the three years (Note: This bond may be implemented at the Town's discretion.)

f. Agreement that the Audit firm shall release any and all information obtained in the course of the engagement to the Rhode Island State Auditor General (or his designee) including documentation of the independent auditors

V. GENERAL TERMS AND CONDITIONS

1. PREPARATION OF PROPOSALS

Proposals shall be submitted in a format suggested herein and must be signed by the APPLICANT or authorized representative. The person signing the PROPOSAL shall initial any corrections to entries made on the PROPOSAL forms.

Unless otherwise stated in the Request for Proposals (RFP) document, the APPLICANT agrees that the PROPOSALS provided shall be deemed open for acceptance for sixty (60) calendar days subsequent to submittal to the Town of New Shoreham.

Any questions or inquiries must be submitted in writing, and must be received by the Town Manager no later than seven (7) calendar days before the RFP’s due date to be considered.

Any changes to the RFP requirements will be provided to all APPLICANTS of record either directly or through the advertisement sites listed earlier.

The APPLICANT shall not divulge, discuss or compare this PROPOSAL with the PROPOSAL of any other APPLICANT and shall not collude with any others on a PROPOSAL whatsoever.

2. SUBMISSION OF PROPOSALS

PROPOSALS must be submitted as directed in the RFP documents. PROPOSALS must be typewritten or printed in ink. PROPOSALS must be mailed or delivered in person. Documents that are faxed or e-mailed will not be accepted.

3. WITHDRAWAL OF PROPOSALS

PROPOSALS may be withdrawn prior to the opening date and time upon written, faxed, e-mailed or telegraphic request of the APPLICANT to the Town Manager. Negligence on the part of the APPLICANT in preparing this PROPOSAL shall not constitute a right to withdraw a PROPOSAL subsequent to the PROPOSAL opening. PROPOSALS may not be withdrawn for a period of sixty (60) days after the date of opening indicated herein or as modified by addenda.

4. APPLICANTS INTERESTED IN MORE THAN ONE PROPOSAL:

If more than one PROPOSAL is offered by any one party, or by any person or persons representing a party, all such PROPOSALS shall be rejected. A party who has quoted prices to an APPLICANT is not thereby disqualified from quoting prices to other APPLICANTS or from submitting a direct PROPOSAL in its own behalf.

5. RECEIPT AND OPENING OF PROPOSALS:

PROPOSALS shall be submitted prior to the time fixed in the RFP. PROPOSALS received after the time so indicated shall be returned unopened.

6. LIMITATIONS:

This RFP does not commit the Town to award a contract, to pay any costs incurred in the preparation of a response to this request, or to procure or contract for services or supplies. The Town reserves the right to accept or reject any or all PROPOSALS received as a result of this request, or to cancel in part or in its entirety this RFP, if it is in the best interest of the Town to do so.

7. PROPOSAL EVALUATION:

In an attempt to determine if an APPLICANT is responsible, the Town, at its discretion, may obtain technical support from outside sources. Each APPLICANT will agree to fully cooperate with the personnel of such organizations.

8. AWARD OF CONTRACT:

Any contract entered into by the Town shall be in response to the PROPOSAL and subsequent discussions. It is the policy of the Town that contracts are awarded only to responsive and responsible APPLICANT’s. In order to qualify as responsive and responsible, a prospective APPLICANT must meet the following standards as they relate to this request:

• Have adequate financial resources for performance or have the ability to obtain such resources as required during performance;

• Have the necessary experience, organization, technical and professional qualifications, skills and facilities;

• Be able to comply with the proposed or required time of completion or performance schedule;

• Have a demonstrated satisfactory record of performance; and,

• Adhere to the specifications of this PROPOSAL and provide all documentation required of this PROPOSAL.

A contract will be awarded to a responsive and responsible APPLICANT based on the qualifications and experience of the APPLICANT, their demonstrated ability to provide the services and support requested, and within an agreed upon timeframe and schedule for providing the requested services. The APPLICANT selected will be the most qualified for the services requested.

The Town reserves the right to waive any formality, informality, information and/or errors in the PROPOSALS submitted and the right to reject any or all PROPOSALS at its discretion and to accept the PROPOSAL which will be in the best interest of the Town; or to purchase on the open market if it is considered in the best interest of the Town to do so. In case of error in the extension of prices, the unit prices proposed shall govern and the unit prices in writing shall take precedence over the unit prices in figures. Also, in the event of a discrepancy between the total of the items and the lump sum total stated, the total of the items shall govern.

9. MODIFICATIONS AFTER AWARD:

The Town reserves the right to incorporate minor modifications, which may be required by it.

The APPLICANT will incorporate these changes at no additional cost, but may protest such action and not be bound by any such request of it can prove that the timing or extent of the modifications implies a major effort on its part.

10. CANCELLATION OF AWARD:

The Town reserves the right to cancel the award without liability to the APPLICANT at any time before a contract has been fully executed by all parties and is approved by the Town.

11. CONTRACT:

Any Contract between the Town and the APPLICANT shall consist of (1) the Request for PROPOSALS (RFP) and any amendments thereto and (2) the APPLICANT’S PROPOSAL in response to the RFP. In the event of a conflict in language between documents (1) and (2) referenced above, the provisions and requirements set forth and referenced in the RFP shall govern. However, the Town reserves the right to clarify any contractual relationship in writing with the concurrence of the APPLICANT, and such written clarification shall govern in case of conflict with the applicable requirements contained in the RFP and the APPLICANT’S PROPOSAL. In all other matters, not affected by written clarification, if any, the RFP shall govern. The submitter is cautioned that this PROPOSAL shall be subject to acceptance without further clarification.

Any amendments to the contract…