PROPOSAL SUBMISSION FORM

REQUEST FOR PROPOSALS

RFP # 2016-2020 Audit

Issue Date: July 18, 2017

Title: Financial Audit

Initial Period of Contract: Fiscal Year Audits three years with the right to renew for two more years

All inquiries should be directed in writing via email in Microsoft Word format to:

or by mail to: Leigh Wade, Executive Director

460 Lendall Lane

Fredericksburg, VA 22405

Deadline for submitting written inquiries is August 15, 2017

Proposal Due Date:Proposals will be accepted until September 30, 2017

Submission Method:The proposal(s) must be sealed in an envelope or box and addressed as follows:

“RFP 2016-2020 Audit Sealed Proposal”

Rappahannock Area Agency on Aging d/b/a Healthy Generations AAA

Attention: Leigh Wade

460 Lendall Lane

Fredericksburg, VA 22405

Facsimile Transmission of the proposal is not acceptable.

In compliance with this request for proposals and to all the conditions imposed therein and hereby incorporated by reference, the undersigned offers and agrees to furnish the services in accordance with the attached signed proposal or as mutually agreed upon by subsequent negotiation.

Name and address of firm:

______Date: ______

______By:______

(Signature in ink)

______Name: ______

(Please print)

______Zip Code ______Title: ______

FEI/FIN No. ______Telephone No. ______

TABLE OF CONTENTS

RFP # 2016-2020 Audit

PAGE
I. / PURPOSE / 3
II. / BACKGROUND / 3
III. / STATEMENT OF NEEDS / 5
IV. / PROPOSAL PREPARATION & SUBMISSION REQUIREMENTS / 7
V. / EVALUATION CRITERIA / 11
VI. / SELECTION PROCESS / AWARD OF CONTRACT / 12
VII. / GENERAL TERMS AND CONDITIONS / 12
VIII. / SPECIAL TERMS AND CONDITIONS / 15
IX. / ATTACHMENTS / 18
  1. Chart of Accounts.

  1. PURPOSE:Rappahannock Area Agency on Aging d/b/a Healthy Generations AAA (hereinafter called the “Agency”) is requesting sealed proposals to establish a contract through competitive negotiation for the purchase of independent Auditing services.
  1. BACKGROUND: The Agency is a private non-profit organization formed in 1976 to improve the quality of life for the elderly through charitable, educational, social services and other appropriate means. The Agency was created pursuant to the Older Americans Act, which is designated by contract with the Department for Aging & Rehabilitates Services to develop and administer the Area Plan, as approved, for a comprehensive and coordinated system of services for older persons. The Agency operates Mobility Options Paratransit service and is funded through the Virginia Department of Rail and Public Transit.

The Older Americans Act intends that the Agency shall be the leader relative to all aging issues on behalf of older persons in Planning and Service Area (16). Accordingly, the Agency carries out a wide range of functions designed to lead to the development or enhancement of comprehensive and coordinated community-based systems in, or serving, each community in Planning and Service Area (16). The elements of each such system are (1) visible focal points, (2) a range of accessible service options, (3) commitment of resources, (4) collaborative decision-making among older persons and organizations, (5) special help or targeted resources for the most vulnerable, (6) effective referral from agency to agency, and (7) sufficient flexibility to respond to individual needs.

The Agency Board is directed“The directors selected shall be as broadly representative as possible of all lay and professional elements elements of Planning and Service Area (16). Directors of the corporation shall be appointed in accordance with the Older Americans Comprehensive Services Amendments, Title 3, Section 304 (b) (3), with the following provisions:

  1. The County Board of Supervisors of the Counties of Stafford, Spotsylvania, King George, and Caroline and the City Council of Fredericksburg, shall each approve two residents to serve as directors, one of which shall be a member of the local governing body, to represent their jurisdiction on the board of directors.
  2. Directors will reflect the needs and interests of the older citizens they represent..

The Agency has established an Advisory Council, which carries out functions that further the Agency's mission of developing and coordinating community-based systems of services for all older persons in the Planning and Service Area (45 CFR 1321.57) and whose members are not members of the board of directors, but make recommendations and advise the directors from their respective jurisdictions and who reflect the needs and interests of the older citizens they represent

The following chart illustrates the organizational structure of the Agency, including the functional units and their supervisory/reporting relationships.

The agency purchases Audit services to ensure that an agency-wide Audit is conducted at the close of each fiscal year in accordance with OMB Circular A-133, Audits for State, Local Governments and Non-Profit Organizations. The Audit report is submitted to the Department for Aging & Rehabilitative Services on December 15th of the reporting year with one 30 day extension. The Audit report is in compliance with OMB Circular A-122, Cost Principals for Non-Profit Organizations.

By submitting a proposal, Offerors certify that all information provided in response to this RFP is true and accurate. Failure to provide information required by this RFP will ultimately result in rejection of the proposal.

  1. STATEMENT OF NEEDS: The Agency invites qualified independent certified public accountants (hereinafter called the “Offeror) to submit proposals to perform a financial audit for the fiscal years ended September 30, 2016 through 2020. The certified public accountant selected (hereinafter called the “Auditor or Contractor”) is to perform audits in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Circular A-133, Audits for State, Local Governments, and Non-Profit Organizations, and OMB Circular A-122 Cost Principals for Non-Profit Organizations.
  1. SCOPE OF WORK TO BE PERFORMED
  1. Financial audit-The Auditor shall audit all funds and account groups in the Agency in accordance with generally accepted auditing standards, standards for financial audits contained in Government Auditing Standards issued by the Controller General of the United States, the previsions of the U. S. Office of Management and Budget (OMB) Circular A-133, Audits for State, Local Governments, and Non-Profit Organizations, OMB Circular A-122, Cost Principals for Non-Profit Organizations. The audit shall result in a preparation of financial statements from the audited records of the Agency and the Auditor’s opinion shall be unqualified unless the Auditor furnishes to the Agency, on a timely basis, the reason for qualifying the opinion, disclaiming an opinion or rendering an adverse opinion.
  2. Preparation of IRS 990 annual return of Organization Exempt from Income Tax.
  3. Preparation of 5500 Annual Return/Report of Employee Benefit Plan for the Agency’s Section 125 Health Insurance Cafeteria Plan.
  4. Preparation of IRS 990-T annual return.
  1. REPORT REQUIREMENTS
  1. Required Reports

Based on the audit work performed, the Auditor must issue the following reports: Independent Auditor’s Report, Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133, Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of Functional Expenses, Notes to Financial Statements, and Supplementary information to include: Status of Funds, Costs by Program Activity, Status of Inventories, Schedule of Expenditures of Federal Awards, Schedule of Findings and Questioned Costs.

  1. Draft Report

The Auditor shall have drafts of the audit reports and recommendations to management available for review by the Executive Director and/or Finance Directorby Novemberof each fiscal year.

  1. Submission of Report

Twenty-seven copies of the Annual Financial Report must be submitted and presented by the Auditor to the Agency’s Board of Directors no later than the 1st Thursday in December of each fiscal year unless AASC files for a one month extension.

  1. Report Preparation

Report preparation, editing and printing shall be the responsibility of the Auditor.

  1. Representation of the Unit

Information Overview:

The Agency receives funding from Federal, State, Local Governments, Cash Program Income, Other Federal, Fees and Donations. The Agency is required to match federal and state funding by recording in-kind contributions. The following is a partial listing by classification of the various Departments that the Agency receives funding.

  • Older Americans Act (OAA) designated through contract with the Department for Aging & Rehabilitative Services (DARS)
  • Department for Aging & Rehabilitative Services – Virginia General Assembly Funds (VGAF)
  • Department of Housing and Community Development
  • Virginia Department of Medical Assistance Services (DMAS) - State Medicaid Programs
  • Centers for Medicare and Medicaid Services (CMS) – Department of Health & Community Services
  • Local Governments – (Caroline, King George, Spotsylvania, Stafford Counties and City of Fredericksburg)
  • United States Department of Agriculture (USDA) Meal Reimbursement Program
  • Federal Emergency Management Agency (FEMA)- Food & Shelter National Board Program
  • Virginia Association of Area Agencies on Aging (V4A) – Senior Patrol
  • Federal Transit Administration (FTA) contracted through the Virginia Department of Rail and Public Transportation (DRPT)
  • United Way Grants
  1. FUNDING SOURCES:

See Attached Chart of Accounts (Attachment # 1)

  1. ASSISTANCE TO BE PROVIDED TO THE AUDITOR
  1. Financial Records

The Agency will represent, for each audit period, that the financial records will be presented in conformity with accounting principals generally accepted in the United States of America and will include properly classified funds and account groups of the Agency and all component units required by generally accepted accounting principles to be included in the financial reporting entity.

  1. Schedules

The staff of the Agency shall prepare the following information:

  • A final trial balance for each fund.
  • A copy of the final budget approved by the Board of Directors for the audit period, with attached amendments to the budget.
  • A schedule of accounts payable at statement date.
  • A schedule of accounts receivable at statement date.
  • A copy of all lease agreements, notes payable and contracts at statement date.
  • Copies of all other contracts in force at statement date of a material amount.
  • A listing of all In-Kind received at statement date.
  • Such reasonable additional schedules as may be requested for financial audits.
  • A listing of all inventories.
  • Copies of monthly-reconciled bank statements for each cash account.
  • Financial records and related data, and all audit or relevant monitoring reports, if any, received from funding sources.
  • Minutes of the meetings of the Agency Board of Directors, and Advisory Council.
  1. Other Assistance

The staff of the Agency and responsible management personnel will be available during the audit to assist the firm by providing information and explanation.

  1. PROPOSAL PREPARATION AND SUBMISSION REQUIREMENTS:

A.GENERAL REQUIREMENTS:

  1. RFP Response: In order to be considered for selection, Offerors must submit a complete response to this RFP. One (1) original so marked, and five (5) copies so marked, of each proposal must be submitted to the Agency. The Offeror shall make no other distribution of the proposals.
  1. Proposal Preparation:
  1. An authorized representative of the Offeror shall sign proposals. All information requested must be submitted. Failure to submit all information requested may result in the Agency requiring prompt submission of missing information and/or giving a lowered evaluation of the proposal. Proposals, which are substantially incomplete or lack key information, may be rejected by the Agency. Mandatory requirements are those required by law or regulation or are such that they cannot be waived and are not subject to negotiation.
  1. Proposals should be prepared simply and economically, providing a straightforward, concise description of capabilities to satisfy the requirements of the RFP. Emphasis should be on completeness and clarity of content.
  1. The proposals shall be typed, bound, page-numbered, single-spaced with a 12-point font on 8 ½” x 11” paper with 1” margins and printed on one side only. A tab sheet keyed to the Table of Contents shall separate each major section. The title of each major section shall appear on the tab sheet. Proposals should be organized in the order in which the requirements are presented in the RFP. All pages of the proposal should be numbered. Each paragraph in the proposal should reference the paragraph number of the corresponding section of the RFP. It is also helpful to cite the paragraph number, sub letter, and repeat the text of the requirement as it appears in the RFP. If a response covers more than one page, the paragraph number and sub letter should be repeated at the top of the next page. The proposal should contain a table of contents, which cross references the RFP requirements. Information, which the Offeror desires to present, that does not fall within any of the requirements of the RFP should be inserted at an appropriate place or be attached at the end of the proposal and designated as additional material. Proposals that are not organized in this manner risk elimination from consideration if the evaluators are unable to find where the RFP requirements are specifically addressed.
  1. Each copy of the proposal should be bound or contained in a single volume where practical. All documentation submitted with the proposal should be contained in that single volume. The Offeror shall submit an original and five (5) copies by the response date and time specified in this RFP. Each copy of the proposal shall be bound separately. This submission shall be in a sealed envelope or sealed box clearly marked “RFP 2016-2020 Audit”.
  1. Ownership of all data, materials and documentation originated and prepared for the Agency pursuant to the RFP shall belong exclusively to the Agency and be subject to public inspection in accordance with the Virginia Freedom of Information Act. Trade secrets or proprietary information submitted by an Offeror shall not be subject to public disclosure under the Virginia Freedom of Information Act; however, the Offeror must invoke the protections of Section 11-52D of the Code of Virginia, in writing, either before or at the time the data or other material is submitted. The written notice must specifically identify the data or materials to be protected and state the reasons why protection is necessary. The proprietary or trade secret materials must be identified by some distinct method such as highlighting or underlining and must indicate only the specific words, figures, or paragraphs that constitute trade secret or proprietary information. The classification of an entire proposal document as proprietary or trade secrets is not acceptable and will result in rejection of the proposal.
  1. Oral Presentation: Offerors who submit a proposal in response to this RFP may be required to give an oral presentation of their proposal to the Agency. This provides an opportunity for the Offeror to clarify or elaborate on the proposal. This is a fact finding and explanation session only and does not include negotiation. The Agency will schedule the time and location of these presentations. Oral presentations are an option of the Agency and may or may not be conducted.
  1. Letter of Transmittal that includes:
  1. A statement by the prospective Offeror of his/her understanding of the work to be done with descriptions of the audit approach and illustrations of the procedures to be employed.
  1. The approximate date the audit will begin (including preliminary field work) and end, as well as approximate dates for delivery of the financial statements and/or Offeror’s reports.
  1. Biographies, including experience of the individuals who will be assigned to the engagement, relevant experience of each in auditing non-profits and recent continuing professional education for each.
  1. Name, address and telephone number of persons who may be contacted for reference.
  1. History of the Offeror, including number of years in business, and size of the firm.
  1. Representations of the Offeror:
  1. The Offeror shall provide a positive statement that it is independent of the Agency as that term is defined in the ethical Rules of the AICPA.
  1. The Offeror shall provide a positive statement indicating that the firm and the partners assigned to the engagement are licensed to perform the audit as provided in the applicable laws of the Commonwealth of Virginia.
  1. The Offeror shall provide a positive statement indicating that adequate supervision will be provided on a day-to-day basis.
  1. The Offeror shall provide a positive statement that all staff assigned to the audit have met the continuing education requirement required by Auditing Standards issued by the Comptroller General of the United States.
  1. The Offeror shall provide a positive statement that it has complied with the quality control section as required by Auditing Standards issued by the Comptroller General of the United States. The standard includes an appropriate internal quality control system in place and participation in an external quality control review program.
  1. SPECIFIC REQUIREMENTS:

Proposals should be as thorough and detailed as possible so that the Agency may properly evaluate your capabilities to provide the required services. Offerors are required to submit the following items as a complete proposal:

  1. The properly executed return of the RFP cover sheet and all addenda acknowledgements, if any, signed and filled out as requested.
  1. A written summary statement to include:
  1. Experience in providing the services.
  2. Approach to providing the services.
  3. What, when, and how the service will be performed.
  1. Describe your experience and qualifications to perform the work described in the Statement of Needs of this RFP.
  1. Provide an overview of your expected needs from the Agency details of any item that you believe are important for us to know but are not covered elsewhere in this RFP.
  1. Provide a list of enhancements you expect to make to your services over the next three years.
  1. State your ability to respond correctly and timely to inquiries received by telephone, by mail, or in person.
  1. Each party shall appoint a contract representative who shall be diligent in securing faithful performance of this contract. The Agency hereby appoints Regina Sayers, Executive Director, or anyone designated by the Executive Director subsequently. State your contract representative.
  1. EVALUATION CRITERIA:
  1. Proposals shall be evaluated by the Agency using the following criteria:

POINT
VALUE
1. / The skill, experience and training of the specified persons who will be performing the services requested. / 25
2. / The Offeror’s understanding of the Agency’s system of accounting obtained through prior experience or discussion with appropriate individuals. Specific plans / approach to performing the services. / 20
3. / Ability to complete the audit and submit the financial statements and Offeror’s reports to the Agency’s board of Directors by the required deadline. / 15
4. / The prior experience and reputation of the Offeror in auditing non-profit organizations similar to the Agency. / 40
_____
Total / 100
  1. SELECTION PROCESS / AWARD OF CONTRACT:

The Agency shall engage in individual discussions with two or more Offerers deemed fully qualified, responsive and responsible, and suitable on the basis of initial responses and with emphasis on professional competence, to provide the required services. Such Offerers shall be encouraged to elaborate on their qualifications and performance data or staff expertise pertinent to the audit. This Request for Proposals, is not, however, requesting that Offerers furnish estimates of man-hours or cost for services. At the discussion stage, the Agency may discuss non-binding estimates of total costs. Proprietary information from competing Offerers shall not be disclosed to the public or to competitors.