KATHERINE ANNE PORTER CHARTER SCHOOL

PROFESSIONAL ANNUALAUDITINGSERVICES

QUOTESshallbesubmittedto:

Front Office

Coni Wilson

Superintendent

PO Box 2053

Wimberley, TX 78676

515.847.6867

QUOTE REQUEST for

ANNUALFINANCIALAUDIT

Katherine Anne Porter Charter School isrequesting quotesfrompublic accountingfirms toperformthe annualaudit forfiscal year2015-2016.

I.BACKGROUNDINFORMATION

Auditingrequirements for Texaspublic school districts arecontainedintheTexas Education Agency Financial Accountability SystemResourceGuide, whichis theauthoritativedocument, adoptedby referenceas aruleof theStateBoardof Education, throughTitle19, Texas AdministrativeCode,Section109.61.

Thefollowingissomeinformationabout theKATHERINE ANNE PORTER CHARTER SCHOOL(“theDistrict")that willassistinthepreparationof thequote:

  • Charter issued in 1998
  • Grades 9-12
  • Annual budget of approximately $1.9 million
  • Approximately 165 students
  • Approximately 30 faculty and staff

A.Purpose oftheQuote

Thepurposeof theQUOTEis toobtaintheservices of apublic accounting firmfortheannualaudit forfiscalyear2015-2016 withoptionalrenewalterms. The organization-wideaudit will encompass thefinancialstatements as requiredby GASB Statement No. 34andtheTexas EducationAgency Financial Accountability System Resource Guide fortheDistrict.Theauditis tobeperformedinaccordancewithgenerallyaccepted auditingstandardsandgenerallyacceptedgovernment auditingstandards containedinthe Texas EducationAgency Financial Accountability SystemResourceGuide.

Thefinancialstatement auditis todeterminewhether (1)thefinancialstatements present fairlythefinancialposition, resultsof operations, andcashflows orchangesinfinancial positioninaccordancewithgenerally acceptedaccountingprinciples,and(2)whetherthe Districthas compliedwithlaws and regulations forthosetransactions andevents that may haveamaterialeffect onthefinancialstatements. Thefinancialrelatedaudit willalsoinclude determiningwhether(1)financialreports andrelateditems arefairly presented, (2)financial informationis presentedinaccordancewithestablishedorstatedcriteria, and(3)theschool district has adheredtospecific financialcompliancerequirements.

As apart oftheaudit of thegeneralpurposefinancialstatements, theannualauditwillalso includeobtaininganunderstandingof theschool district'sinternal controlandreportingany significant deficiencies ormaterial weaknesses relatingtotheinternalcontrolsystems coming totheattentionof theauditors.

Astudyandevaluationof internalcontrolwill includeinternalaccountingandadministrativecontrolsformajorfederal financialassistanceprograms, inaccordancewithstandards for risk assessment formajor federalfinancialassistance.

Anymaterialweakness notedduringthestudyandevaluationofinternal accountingand administrativecontrols andotherkinds ofnoncomplianceandquestionedcosts will be reportedincompliancewiththeSingleAudit Act.

As part of theauditof thefinancialstatements, transactions andrecords pertainingtofederal programs will betestedformaterialcompliancewithfederal laws, rules, andregulations; and all instances ofnoncompliancewillbereportedtotheschooldistrict.

Theaudit will includetheperformanceof certainaudit procedures forthepurposeof reviewing theaccuracy of fiscal informationprovidedbythedistrict throughthePublic EducationInformation Management System(PEIMS), as requiredbythe Texas EducationCode. Theaudit will includeprocedures applicabletocompensatory educationfunds asrequiredby Module9of the FinancialAccountability SystemResourceGuide,ifrequired.

B.OtherRequirements

Theaccountingfirmshouldprovideanannual audit reportinaformacceptabletothe Texas EducationAgency andwithinthetimeframestipulatedinTEC 21.256 (d)of 150days subsequent tothecloseofthefiscal yearforwhichtheaudit was made.

TheFinancialCommittee would expect tomeetwiththeauditor(s)atleast annually. Themeetingwouldbecalledby the Committee.

Financialstatements developedby theAuditormust beinaformthat complies with the requirements fortheGFOA CertificateofAchievement, theASBO Certificateof Excellence,andthe Texas EducationAgency.

All workingpapersandreports must be retained, at theauditor's expense,fora minimumof five(5)years, unlessthefirmis notifiedinwritingby theDistrict of the needtoextendthe retentionperiod. Theauditorwill be requiredtomakeworking papers available, uponrequest,toauditors fromthe Texas EducationAgency,The GeneralAccountingOffice,orotherapplicablegovernmentalagencies; they arenot otherwiseconsideredtoberecords opentothegeneralpublic.

C.Independent Auditor

Theinterestedaccountingfirmmust demonstratethecapability toperformtheannualauditin accordancewithgenerally acceptedgovernment auditingstandards andstateboardof educationauditingrules. The audit firm must be able to show proof they are a member of the AICPA Government Audit Quality Center (GAQC) as required per Texas Administrative Code 109.23. Public accountingfirms that haveperformedannualaudits for similarentitiesareencouragedtofileaproposal.

D.Termof theAuditEngagement

Thecontract foraudit servicesbaseduponBoardofTrustees approval of theproposalwillbe for the fiscalyearendingAugust 31, 2016,withoptionalrenewalterm(s).

II.QUOTE CONTENT

A.CoverLetter

State the relevant facts and the firm’s history and capacity to comply with the request.

B.Technical Component

Todescribeclearlythepublicaccountingfirm's understandingof thework tobedone, the interestedaccountingfirmwill:

1.Provideadefinitionof theterm"generallyacceptedgovernment auditingstandards" withcleardistinctions betweenthesestandards andgenerally acceptedauditing standardsfornon-governmentalengagements;

2.Explaintheinterestedaccountingfirm's approaches toperforminganannualaudit, includingthemethodology, nature, timingandextent of audit procedures tobe performed;

3.Describehowa Charter School Audit differs from an Independent School District Audit;

4.Describe how the Financial Accounting System Resource Guide (FASRG) criteria and charter specific modules will be utilized.

5.Makeastatement concerningtheindependenceof theinterestedaccountingfirm, includingdirectandindirect financial interest,andtherelationshipof theproposed audit teamtoemployees of thedistrict andany of theboardmembers.

C.ManagementComponent

Theinterestedaccountingfirmwillfurnishsatisfactory evidenceof capability toprovideina professional andtimely mannertheservices statedintheQUOTE.Tomeet thisrequirement:

1.Statewhethertheinterestedaccountingfirmis anational,regionalorlocalpublic accountingfirm;

2.Provideevidencethat theinterestedaccountingfirmhas experienceinperforming public Charter School District audits. List currentandpast audit clientsalongwiththe names andtelephonenumbers of contact persons andnumberof years audit services wereprovided.

3.Statewhethertheinterestedaccountingfirmis currentlyundertheterms of apublic orprivatereprimandbytheTexasStateBoardofPublicAccountancyand licensing boards of otherstates;

4.Describetheinterestedaccountingfirm's level of participationinandcommunication withsuchorganizationsas theTexas EducationAgency, Texas Associationof SchoolBusinessOfficials, and Texas Charter School Association;

5.Describetheproposedaudit team, interms ofjobpositionsinthefirm;

6.List names of staff member(s)whowilldirect theoverall audit throughout theduration of theengagement as well as thosestaff members whowillberesponsiblefor planning, directing,andconductingsubstantialportions of thefieldwork or reporting onthis auditengagement. Includetheeducational backgroundof allstaffmembers namedandprofessional licenses held;

7.Describestaffrotationplans foraudit teammembers if thisistobeamultiyear contract;

8.Describethelevelof assistancethat will beexpectedfromDistrictpersonnel.

D.Task/ActivityPlan

Theinterestedaccountingfirmwillspecify budgetedhours, timelines andsequenceforaudit procedures, andnames of staff tobeassigned.

III.CONDITIONS FOR SUBMISSION OFPROPOSAL

All qualificationsin responsetothis request must meet thefollowingconditionstobeconsidered:

A.Qualifications must includeacoverletterclearly statingthenameof thefirmandthe name, andtelephonenumberof theinterestedaccountingfirm's representative;

B.Qualifications must meet eachof theauditrequirements as statedinthis QUOTE.

C.TheDistrictreserves the right toreject any andall qualifications,andtonegotiate portions thereof. Qualifications that meetonly part oftherequirements contained inthis QUOTEwillnotbeconsidered;

D.TheDistrictreserves the right toselect anyproposal, consideringthequoted estimatedfeeandotherfactors;

E.Theinterestedaccountingfirmshallfurnishsuchadditionalinformationthat the District may reasonablyrequire;

F.TheDistrict willnotbeliableforany costincurredinthepreparationof qualifications;

G.TheDistrict andinterestedaccountingfirmsmay enterintodiscussionsandrevisions of proposal, as necessary. Discussions/negotiations may beconductedwith interestedaccountingfirmswhoaredeemedtobewithinthefinalcompetitiverange; however, Charter Schoolreservestheright toawardacontract without discussions/negotiations.Thebest andfinalproposalmay be requiredas early as 24 hours aftercompletionof negotiations ordiscussions.

H.QUOTESmust besignedby anauthorizedindividualtocontractually bindtheir firmwhensubmittingtheQUOTE.Failuretosignthe QUOTEwill be consideredas amistakeandwill be rejectedas "non-responsive."

I.By submittingaQUOTE, theinterestedaccountingfirmaffirms that its company, corporation, firm, partnershiporindividualhasnot preparedthis proposal incollusion withany otherbidderandthat thecontents ofthis proposalas toprices, terms, or conditions havenot beencommunicatedby theundersignedorby any employeeor agent toany otherpersonorfirmengagedinthis typeof business priortotheopeningofthis QUOTE.

J.Uponnotificationof potentialselections foraward, thepersonorentity submittingthis proposalmust givenoticetothedistrictif thepersonoranowneroroperatorof the business entityhas beenconvictedof afelony. Thenoticemust includeageneral descriptionof theconductresultinginthis convictionof afelony (thisrequirement does not apply toapublicly heldcorporation).

IV.PROCEDURESFOR SUBMITTINGPROPOSALS

A.Delivery

Responses totheQUOTEshouldbeaddressedto:

Coni Wilson

Superintendent

PO Box 2053

Wimberley, TX 78676

515.847.6867

Or emailed to:

Proposalsmustbereceivednolaterthan1:00 PM, Wednesday, October 19, 2016. QUOTESreceivedattheCharter School front officeor via email afterthetimeanddatespecified abovewill not beconsidered.

B.NumberofCopiesQualifications

Submit oneoriginalandtwocopiesof theproposal, if mailing quote.

ASSISTANCETO PROPOSERS

Any personwishingtoobtainadditional informationabout theQUOTE orabout the operations of theDistrict may contact:

Coni Wilson

Superintendent

PO Box 2053

Wimberley, TX 78676

515.847.6867

V.STATEMENTOFREQUIREMENTS

A.It isanticipatedthat theComprehensiveAnnual FinancialReport(CAFR)willbe preparedandpresentedas theAnnualFinancialReport.

•Theindependent auditorwillprovidethewrittenaudit reportthat meets the requirements of Texas EducationAgency (TEA) Financial AccountabilitySystem ResourceGuide, separatelyissuedSingleAudit Reportif needed, includingtheScheduleof Expenditures of FederalAwards, SF-SAC DataCollectionFormandassistinthe reviewof theCAFR.

•Satisfactory delivery of theservices specifiedby theQUOTEshallbeaccomplishedno later than December 15, 2016.

•Theindependent auditorwillberequiredtopresent theaudit reporttotheBoard of Trustees prior to the TEA submission date of January 28, 2017.

•If applicable, theindependent auditorwillbe requiredtoprovideamanagement lettercontainingcomments orientedtowardconstructiveimprovements. Copies of selectedaudit workingpapers willbeprovidedas requestedby theDistrict and as providedforintheengagement letter. If amanagement letterisissued, the auditorwillprovidetheDistrict ten(10) copies.

EVALUATION WORKSHEETATTACHMENT

This worksheetis tobeusedtodocument theschool district's evaluationof theproposers'qualifications. Points withintheranges specifiedaretobeassignedtothebelow-listedcriteriaas ameans for quantifyingthe relativestrengths andweaknesses of thevarious proposals.

Intheevent thatoral interviews arenecessarytobreakatie orformakingfinalclarificationin the evaluationprocess, additional points may beawarded. It shouldbeunderstoodthat whilethetotalscore is asignificant factor, the requesterof theservicesreservestheright toconsiderotherfactors inmakinga finalselection.

PROFESSIONALQUALIFICATIONS

Theevaluationofprofessionalqualifications of theproposerswillbebasedonthefollowingcriteria:

  1. Mandatory Criteria

Proposals will not beconsideredforfurtherevaluationunlessthereis compliancewithallof thefollowingcriteria.Theproposer:

A.Must submit aproposalmeetingall of therequirements of thequote

onorbefore1:00P. M., October 19, 2016. Lateproposals will not beconsidered.

B.Must beanindependentauditorproperlylicensedforpublic practice.

C.Mustmeet theindependencestandards of Government AuditingStandards,1999 Revision, UnitedStatesGeneralAccountingOffice(GAO).

D.Must not havearecordof substandardwork tobeverifiedvia references submitted.

II.TechnicalCriteria

Proposals whichhavemet eachof thecriterionSectionI abovewillbeevaluatedonthe followingcriteria:

A.Technicalexperienceof thefirm:

1.AuditingexperienceinTexas Charter School entities(0-10points)

2.AuditingexperienceinTexas public schools (0-10points)

B.Characteristicsof thestaff,includingconsultants, tobeassignedtotheaudit:

1.Sizeandstructureof thefirm, includingaudit staff positions(0-5points)

2.Qualificationsof supervisory personnel, consultants, andthefieldaudit team (0-20points)

  • Education,includingcontinuingeducationcourses takenduringthepast

twoyears

  • Andtypes of experience

3.Generaldirectionandsupervisiontobeexercisedovertheaudit teamby the firm's management personnel(0-15points)

4.Firmlevelof participationinandcommunicationwithsuchorganizations as the Texas EducationAgency,Texas Associationof SchoolBusiness Officials, and TCSA(0-15points)

C.Clearunderstandingof thework tobeperformed:

1.Comprehensiveness of theaudit work plan(0-5points)

2.Realistic timeestimates of eachmajorsegment of thework plan, andthe

estimatednumberof hours foreachstafflevel includingconsultants assigned (0-10points)

III.ProfessionalFees

Professionalfeesof theaudit(0-25points)

IV.OralInterviews (If Necessary) Interview(0-15points)