WCLB Propsal Detail Audit.pdf

WASHINGTON COUNTY LAND HOLDING CORPORATION

REQUEST FOR PROPOSALS

INDEPENDENT FINANCIAL AUDITING SERVICES

RFP Issue Date: 07/27/2026 Questions Due: 08/21/2026 Proposal Due Date: 08/24/2026 Anticipated Contract Start Date: [TBD] Contract Term: Three Years

1. INTRODUCTION

The Washington County Land Holding Corporation, operating as the Washington County Land Bank and referred to throughout this Request for Proposals as the “Land Bank,” is requesting proposals from qualified independent certified public accounting firms to perform the Land Bank’s annual independent financial audit for three consecutive fiscal years.

The first audit performed under this contract will be the Land Bank’s first annual independent audit.

The Land Bank anticipates an annual operating and program budget of less than $2 million and expects a relatively limited volume of financial transactions during the first three years. The audit engagement must nevertheless satisfy all applicable professional standards, New York State public-authority requirements, Public Authorities Reporting Information System requirements, grant requirements, and applicable laws and regulations.

The Land Bank intends to award a three-year professional services contract, subject to annual Board approval, satisfactory performance, continued need, and the availability of funding.

2. ORGANIZATIONAL BACKGROUND

The Washington County Land Bank was established to address vacant, abandoned, tax-delinquent, environmentally challenged, and blighted properties in Washington County, New York.

Land Bank activities may include:

● Acquisition and disposition of real property;

● Demolition, stabilization, rehabilitation, and redevelopment;

● Administration of State, federal, County, and other grant funds;

● Payment of contractors and professional service providers;

● Receipt of grants, public funding, property-sale proceeds, and other revenues;

● Tracking expenditures by property, project, grant, and program;

● Management of restricted and unrestricted funds; and

● Compliance with New York State public-authority reporting requirements.

The Land Bank will retain a separate accounting firm to provide bookkeeping, accounting, QuickBooks implementation, outsourced controller, PARIS preparation, and audit-support services.

The selected independent auditor will not provide the Land Bank’s routine bookkeeping, accounting, controller, or financial-system implementation services.

3. CONTRACT PERIOD

The Land Bank anticipates awarding a contract covering three consecutive fiscal years:

● Fiscal Year 1: [TBD]

● Fiscal Year 2: [TBD]

● Fiscal Year 3: [TBD]

The contract will be subject to annual Board approval, satisfactory performance, continued need, and the availability of funding.

4. SCOPE OF AUDIT SERVICES

The selected firm shall perform an annual independent audit of the Land Bank’s financial statements and related records.

The audit shall include the following services.

A. Annual Independent Financial Audit

The selected firm shall:

1. Audit the Land Bank’s annual financial statements in accordance with generally accepted auditing standards and all other standards applicable to the engagement.

2. Determine whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial-reporting framework.

3. Review the Land Bank’s accounting policies, significant estimates, financial disclosures, and presentation.

4. Evaluate the accounting treatment of:

○ Grant revenues and expenditures;

○ Restricted and unrestricted funds;

○ Property acquisitions and dispositions;

○ Property inventory and carrying costs;

○ Capital assets;

○ Construction, rehabilitation, stabilization, and demolition activities;

○ Accounts payable and receivable;

○ Accrued liabilities;

○ Deferred or unearned revenue;

○ Commitments and contingencies;

○ Property-sale proceeds;

○ Related-party transactions;

○ Debt, leases, or other obligations, if applicable; and

○ Other material financial activities.

5. Review the Land Bank’s compliance with applicable financial policies and material grant requirements.

6. Perform such testing and procedures as the auditor determines necessary to issue an independent opinion.

B. First-Year Audit and Opening Balances

Because the first audit will cover the Land Bank’s initial year of operation, the selected firm shall evaluate:

1. Organizational and start-up transactions;

2. Opening cash and account balances;

3. Initial property transfers and acquisitions;

4. Initial grants, County contributions, appropriations, or other funding;

5. Establishment of the accounting system and chart of accounts;

6. Initial contracts and financial commitments;

7. Initial capital assets or property inventory; and

8. Any other matter necessary to establish reliable beginning balances and financial reporting.

The proposer shall identify any additional procedures or information anticipated for a first-year audit.

C. Internal Controls and Compliance

The selected firm shall evaluate internal controls relevant to the preparation and fair presentation of the Land Bank’s financial statements.

The auditor shall:

1. Obtain an understanding of internal controls;

2. Evaluate significant financial processes;

3. Identify material weaknesses, significant deficiencies, or other control concerns;

4. Communicate reportable findings to management and the Board or Audit

Committee;

5. Recommend practical corrective actions appropriate to the Land Bank’s size and transaction volume;

6. Review management’s response or corrective-action plan; and

7. Provide any report on internal control over financial reporting required for submission through PARIS.

The audit shall include consideration of controls over:

● Cash receipts and deposits;

● Disbursements;

● Electronic payments;

● Bank reconciliations;

● Procurement and contracting;

● Property acquisition and disposition;

● Grant accounting;

● Financial reporting;

● Journal entries;

● User access to financial systems;

● Related-party transactions;

● Conflicts of interest;

● Record retention; and

● Segregation of duties.

The auditor should recognize that the Land Bank is a small organization and provide recommendations that are both professionally sound and operationally realistic.

D. Required Audit Deliverables

For each fiscal year, the selected firm shall provide:

1. Independent auditor’s report;

2. Audited financial statements;

3. Notes to the financial statements;

4. Required supplementary information, if applicable;

5. Supplementary schedules, if applicable;

6. Report on internal control over financial reporting;

7. Report on compliance, when required;

8. Management letter, if applicable;

9. Written communication of material weaknesses and significant deficiencies;

10.Written communication of audit adjustments;

11.Schedule of passed or unadjusted differences;

12.Communication of significant audit matters to the Board or Audit Committee;

13.Communication of critical accounting policies and practices;

14.Communication regarding alternative accounting treatments discussed with management, when applicable;

15.Management representation letter;

16.Any other communication required by professional standards or New York State law;

17.Electronic copies suitable for posting on the Land Bank’s website;

18.Electronic copies suitable for uploading through PARIS; and 19.Other reasonable supporting documentation needed to complete the Land

Bank’s annual reporting requirements.

All final documents shall be provided in accessible electronic PDF format. Editable versions of financial statements and schedules shall also be provided when available.

E. PARIS Coordination

The selected firm shall coordinate with Land Bank management and the Land Bank’s accounting firm to ensure that audited financial information is consistent with information reported through PARIS.

Services shall include:

1. Reviewing relevant PARIS financial information for consistency with the audited financial statements;

2. Providing final audit reports and required communications in formats suitable for PARIS upload;

3. Resolving discrepancies between the audit and proposed PARIS financial information;

4. Responding to reasonable questions from the Land Bank, Authorities Budget Office, or Office of the State Comptroller concerning the audit;

5. Providing the final audit sufficiently in advance of applicable submission deadlines; and

6. Assisting management in identifying audit-related documents that must be posted on the Land Bank’s website.

The auditor will not be responsible for certifying PARIS reports on behalf of the Land Bank.

F. Investment Practices

The selected firm shall perform any annual review or independent audit of the Land Bank’s investment practices required by applicable law, regulation, or Authorities Budget Office guidance.

If the Land Bank has no investments beyond ordinary bank deposits or has no reportable investment activity, the selected firm shall provide the appropriate statement or documentation necessary to address the applicable reporting requirement.

G. Federal and Grant Audit Requirements

The selected firm shall advise the Land Bank whether its federal, State, or grant expenditures trigger additional audit or compliance requirements.

The proposer shall provide separate pricing for:

● A federal Single Audit, if required;

● Program-specific audits;

● Grant-specific agreed-upon procedures;

● Compliance examinations; and

● Other supplemental audit services.

No supplemental audit work shall be performed without prior written authorization.

H. Audit Planning and Fieldwork

The selected firm shall:

1. Conduct an annual planning meeting with management and the Audit Committee or designated Board representatives;

2. Provide a written audit-request list sufficiently in advance of fieldwork;

3. Coordinate document requests with the Land Bank’s accounting firm;

4. Conduct fieldwork virtually when practical;

5. Minimize disruption to Land Bank operations;

6. Provide periodic status updates during the audit;

7. Promptly communicate material issues or anticipated delays;

8. Discuss proposed audit adjustments with management before finalizing the audit;

and

9. Provide reasonable opportunities for management to respond to findings.

I. Board and Audit Committee Presentation

The engagement partner or qualified senior representative shall attend at least one Board or Audit Committee meeting annually to:

1. Present the final audit;

2. Explain the audit opinion;

3. Review significant accounting policies and audit findings;

4. Discuss internal controls and compliance matters;

5. Explain audit adjustments and unadjusted differences;

6. Present the management letter, if any;

7. Answer Board questions; and

8. Discuss management’s corrective-action plan, when applicable.

Meeting attendance shall be included in the base fee unless clearly identified otherwise.

5. AUDIT SCHEDULE

The selected firm must complete each annual audit within all applicable statutory and regulatory deadlines.

The anticipated annual schedule is:

● Preliminary planning: Before or shortly after fiscal year-end;

● Auditor request list issued: Within [NUMBER] days after fiscal year-end;

● Records provided by Land Bank: Approximately [DATE];

● Fieldwork: Approximately [DATES];

● Draft audit delivered: No later than [DATE];

● Presentation to Board or Audit Committee: No later than [DATE];

● Final audit delivered: Sufficiently before the applicable PARIS deadline.

The Land Bank’s objective is to receive the final audit no later than approximately 75 days after fiscal year-end so that the Board has adequate time to review and accept it before the applicable reporting deadline.

The proposer shall identify whether it can meet this schedule and shall propose any recommended revisions.

6. AUDITOR INDEPENDENCE

The selected firm must remain independent of the Land Bank in fact and appearance.

The firm shall:

1. Disclose all relationships with the Land Bank, Washington County, Land Bank Board members, officers, employees, contractors, legal counsel, accounting firm, and other professional service providers that could affect or appear to affect independence.

2. Identify all non-audit services the firm has provided or proposes to provide to the Land Bank.

3. Confirm its ability to comply with applicable auditor-independence requirements.

4. Immediately notify the Land Bank of any circumstance that may impair independence.

5. Refrain from assuming management responsibilities.

6. Refrain from providing routine bookkeeping, outsourced accounting, controller, or

QuickBooks implementation services to the Land Bank during the audit engagement.

The accounting firm selected to provide the Land Bank’s bookkeeping, accounting, QuickBooks, controller, and PARIS-preparation services shall not be eligible to perform the independent audit during the same period.

7. REQUIRED QUALIFICATIONS

The selected firm must:

1. Be a certified public accounting firm authorized to practice in New York State.

2. Have experience conducting audits in accordance with generally accepted auditing standards.

3. Demonstrate experience auditing public authorities, local development corporations, land banks, governmental entities, municipalities, nonprofit organizations, or grant-funded entities.

4. Demonstrate knowledge of governmental and public-authority accounting and reporting requirements.

5. Be familiar with PARIS, Authorities Budget Office requirements, and Office of the State Comptroller reporting requirements, or demonstrate the ability to acquire and apply that knowledge.

6. Maintain appropriate professional liability, general liability, workers’ compensation, disability, and cybersecurity insurance.

7. Have an acceptable record of external peer review.

8. Have sufficient staff capacity to complete the audit within required deadlines.

9. Demonstrate experience communicating audit findings to governing boards.

10.Be free of unresolved disciplinary actions, independence concerns, or professional restrictions that could affect the engagement.

8. PROPOSAL REQUIREMENTS

Proposals shall include the following.

A. Firm Information

● Legal name and business address;

● Year established;

● Ownership structure;

● Office that will perform the audit;

● Number of professional staff;

● Primary contact information; and

● Identification of any subcontractors.

B. Qualifications and Experience

● Description of relevant audit experience;

● Experience auditing New York public authorities, land banks, governmental entities, and nonprofit organizations;

● Experience with first-year audits;

● Experience with organizations having annual budgets below $2 million;

● Experience with PARIS reporting;

● Experience with grant-funded organizations; and

● Examples of comparable engagements.

C. Engagement Team

Provide:

● Name and title of the engagement partner;

● Name and title of the audit manager;

● Names and roles of other key staff;

● Professional licenses and certifications;

● Relevant experience;

● Resumes or professional biographies;

● Estimated hours by staff level; and

● Identification of the individual who will present the audit to the Board.

The Land Bank must approve any material changes to the proposed engagement team.

D. Audit Approach

Describe:

● Overall audit methodology;

● Approach to a first-year audit;

● Risk-assessment process;

● Internal-control review;

● Use of sampling and analytical procedures;

● Approach to property and grant accounting;

● Approach to PARIS coordination;

● Communication procedures;

● Proposed audit schedule;

● Document-sharing and cybersecurity procedures;

● Procedures for resolving audit adjustments;

● Procedures for reporting findings; and

● Quality-control and engagement-review procedures.

E. Peer Review and Professional Standing

Include:

● Most recent external peer-review report;

● Letter of comments, if any;

● Firm response to any peer-review findings;

● Disclosure of relevant disciplinary action, litigation, investigation, or regulatory action during the past five years; and

● Confirmation that the firm is in good standing.

F. Independence and Conflicts

Provide:

● Written confirmation of independence;

● Disclosure of actual, potential, or perceived conflicts;

● Description of services currently or previously provided to Washington County or the Land Bank;

● Identification of any relationships with Board members, officers, employees, contractors, or the Land Bank’s accounting firm; and

● Description of procedures used to monitor independence.

G. Fee Proposal

Provide a fixed fee for each contract year:

● Fiscal Year 1 audit: $________

● Fiscal Year 2 audit: $________

● Fiscal Year 3 audit: $________

The fee proposal shall identify:

1. Services included in the base fee;

2. Estimated professional hours by staff level;

3. Hourly rates for additional services;

4. Travel or reimbursable costs;

5. Separate pricing for a Single Audit, if required;

6. Separate pricing for grant-specific or program-specific audits;

7. Separate pricing for agreed-upon procedures;

8. Separate pricing for additional Board or committee meetings; and

9. Any assumptions or limitations affecting the proposed fee.

The Land Bank prefers a fixed-fee proposal with predictable costs.

H. References

Provide at least three references for comparable independent audit engagements.

References should include organization name, contact person, title, telephone number, email address, services provided, and length of engagement.

9. EVALUATION CRITERIA

Proposals may be evaluated according to the following criteria:

● Experience auditing public authorities, land banks, governmental entities, and comparable organizations: 30 points

● Qualifications and experience of the engagement team: 20 points

● Audit approach, schedule, and understanding of the engagement: 20 points

● Experience with PARIS, governmental accounting, grants, and first-year audits:

15 points

● Cost and overall value: 10 points

● Peer-review results, references, availability, and communication: 5 points

The Land Bank may interview one or more proposers before making a final selection.

Award will be based on qualifications, independence, responsiveness, demonstrated understanding, proposed approach, ability to meet deadlines, cost, and overall best value. The lowest-cost proposal will not necessarily be selected.

10. PROPOSAL SUBMISSION

Proposals must be received no later than:

5:00PM on 08/24/26

Electronic proposals shall be submitted in PDF format to:

Jadyn Defayette, Program Administrator/Manager Email: jdefayette@northcountryruraldevelopment.org

Proposers are responsible for ensuring timely receipt.

11. QUESTIONS

Questions regarding this RFP must be submitted in writing by [DATE] to:

Jadyn Defayette, Program Administrator/Manager Email: jdefayette@northcountryruraldevelopment.org

Responses to material questions may be distributed to all known proposers or posted publicly.

12. INTERVIEWS

The Land Bank may interview selected firms. The proposed engagement partner and manager should participate in any interview.

Interviews may address:

● First-year audit planning;

● Proposed schedule;

● Internal controls;

● PARIS coordination;

● Property and grant accounting;

● Audit adjustments;

● Board communication;

● Staffing continuity; and

● Fees.

13. RESERVATION OF RIGHTS

The Land Bank reserves the right to:

● Reject any or all proposals;

● Waive minor irregularities or informalities;

● Request clarification or additional information;

● Conduct interviews;

● Negotiate scope, terms, and fees;

● Verify references and professional standing;

● Award all or part of the requested services;

● Cancel or reissue the RFP;

● Amend the procurement schedule;

● Decline to make an award; and

● Select the proposal determined to provide the best overall value.

All costs associated with preparing and submitting a proposal are the responsibility of the proposer.

14. EQUAL OPPORTUNITY

The Washington County Land Bank is an equal-opportunity organization.

Minority-owned, women-owned, service-disabled veteran-owned, disadvantaged, and locally based certified public accounting firms are encouraged to submit proposals.