City of Belgrade

CITY OF BELGRADE

REQUEST FOR AUDIT PROPOSALS

FY Ending June 30, 2003, 2004 & 2005

W/option to renew for 3 Additional Years

Introduction:

The City of Belgrade is requesting proposals from qualified firms of Certified Public Accountants to audit it’s financial statements, for the years ending June 30, 2003, 2004, 2005 with an option of auditing its financial statements for each of the three subsequent years. These audits are to be performed in accordance with auditing standards generally accepted in the USA and Government Auditing Standards issued by the Controller General of the US. The audit will include tests to determine that the entity has complied with provisions of existing revenue bond ordinances and agreements. The proposal should include separate quotes for those years when the Single Audit Act, OMB Circular A-133, and/or GASB 34 requirements as applicable. The City is required to be in compliance with GASB 34 for fiscal year ending June 30, 2004.

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

To be considered, two copies of the proposal must be received at the office of the Director of Finance, 91 E. Central, Belgrade, MT 59714 by 5:00 p.m. on June 11, 2003. The City reserves the right to accept or reject any or all proposals submitted. The proposals will be evaluated by the City Manager and Director of Finance and approved by the Belgrade City Council.

Time Line of Audit:

The audit shall be conducted in October of each year following the end of the City’s fiscal year and completed no later than November of the same year. An audit report shall be issued before the 3rd Monday in December of that year.

Method and Timing of Payment:

Payments will be made on a schedule to be agreed upon by parties at the time the audit contract is signed. Ten percent of the contract price will be retained until the final audit report is delivered to the City of Belgrade.

Staff Assistance Available:

Due to staff limitations, the auditor will be expected to locate and refile documentation as necessary with limited assistance from City staff. Photocopies will be provided as needed by City staff.

Description of Organization:

The City of Belgrade is a city of approximately 5728 residents. We have approximately 30 employees. More information about the city can be obtained on our web site

Information to Include with Audit:

Proposals should include the number of hours at each level of audit and review and names of those who are expected to be assigned to the audit, their qualifications and experience in governmental accounting and auditing. Describe general direction and supervision to be exercised over the audit team by the firm’s management personnel.

Other governments to whom you have provided auditing services;

Approach and procedures that will be used on the audit;

Any additional services that will be included in the bid which are not listed in the request for proposal;

Fees charged for each audit period. Separate quote for those years when the Single Audit Act, OMB Circular A-133 and/or GASB 34 requirements are needed. Fees charged for additional copies of the audit report over and above agreed upon number of copies. The City is required to be in compliance with GASB 34 for fiscal year ending June 30, 2004.

List of items needed for audit and when they should be available.

CRITERIA FOR EVALUATION OF PROPOSALS

Mandatory Qualifications of Auditor:

The auditor is currently listed on the Department of Commerce’s rooster of independent auditors authorized to conduct local government audits;

The auditor holds a current Montana certificate as a certified public accountant and a current annual permit to engage in the practice of public accounting under section 37-50-314;

The respondent meets the independence requirements of the Standard of Audit of Governmental Organizations, Programs, Activities and Functions published by the US General Accounting Office (GAO);

The auditor does not have a record of substandard work, which can be determined by communicating with the state licensing authority.

Technical Criteria: The following criteria will be used in evaluating the proposals.

Responsiveness of the proposal in clearly stating an understanding of the work to be performed. (0-25)

Comprehensiveness of audit work plan. (0-15)

Realistic time estimates of each major segment of the work plan and the estimated number of hours for each staff level including consultants assigned (0-10)

Technical experience of the firms (0-20)

Auditing the type of entity under consideration (0-15)

Auditing similar entities (0-5)

Qualifications of staff, including consultants, to be assigned to the audit, education, including CPE courses taken last three years, position in the firm, and years and types of experience (0-25)

Qualifications of supervisory personnel, consultants, of the audit team doing the work (0-15)

General Direction and Supervision to be exercised over the audit team by the firm’s management personnel (0-10)

Size and Structure of the firm (0-5)

Cost Criteria (0-25)

Cost of the Audit (0-25)

TECHNICAL AND COST – MAXIMUM POINTS 100

TOTAL SCORE COMPUTATION:

Technical Score______x 75 =______Technical Score

Lowest Cost of all Bids______x 25 =______Cost Score

TOTAL SCORE ______