Metro North Regional Employment Board, Inc.
Request for Proposals for
Independent Financial Audit Services
March 2010
TABLE OF CONTENTS
Page
I. / Introduction / 3II. / Timeframe / 3
III. / Description of Metro North Regional Employment Board / 4
IV. / Description of Services Required / 4
V. / Submission Review Process / 4-6
VI. / Format for Submissions / 6-8
VII. / Miscellaneous / 8-9
Attachments
A. / Submission Cover Sheet / 10B. / Submission Contents Checklist / 11
C. / Fiscal Year 2009 and 2008 Sources of Funds / 12-13
METRO NORTH REGIONAL EMPLOYMENT BOARD, INC.
REQUEST FOR PROPOSALS FOR
INDEPENDENT FINANCIAL AUDIT SERVICES
- INTRODUCTION
The Metro North Regional Employment Board, Inc. (REB) is a private §501(c)(3) corporation established in July of 1995. The REB is a policy and oversight board for the Workforce Investment System in the Metro North Region of Massachusetts. Additionally, the REB serves as the fiscal agent for federal Workforce Investment Act(WIA) funds coming into the region.
The Corporation’s fiscal year starts on July 1st and ends on June 30th. Audit services will be required beginning with fiscal year two-thousand-and-ten (2010).
The REB is seeking proposals for audit services for a multi-year period in accordance with the Single Audit Act of 1984 (P.L. 98-502), as amended; and as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-profit Organizations. Audited financial statements and auditor reports should be in accordance with auditing standards generally accepted in the United States, and Governmental Auditing Standards as issued by the Comptroller General of the United States.
- TIMEFRAME
To be considered for evaluation, responses to this RFP (an original and three (3) copies) must be submitted by 3:00 p.m. on Friday, April 30, 2010 to the attention of:
Michael D. Hatfield
Director of Finance and Administration
Metro North Regional Employment Board
125 CambridgePark Drive
Cambridge, MA02140
Tel: (617) 864-1595
E-mail:
Submissions received after 3:00 p.m. on April 30th, 2010 will not be considered. This Request for Proposals does not commit the REB to award any contracts.
The REB reserves the right to accept or reject any or all proposals received as a result of this request, and to negotiate with any and all qualified applicants. The REB may require the selected offerer to participate in final negotiations, as necessary, in writing and/or in-person.
III.DESCRIPTION OFMETRO NORTH REGIONAL EMPLOYMENT BOARD
The Metro North REB is a private non-profit organization, §501(c)(3), established in1995 to serve as the Workforce Investment Board for the twenty-community Metro North region. The REB provides policy guidance, oversees the region’s career centers, serves as the local fiscal agent for Workforce Investment Act (WIA) funds, andcurrently administers $10M in state and federal workforce grants.
More detailed information regarding the activities of the REB,including its membership, can be found at
IV.DESCRIPTION OF SERVICES REQUIRED
The purpose of this request is to obtain proposals from audit firms, hereinafter referred to as "Offerers”, to perform the annual audit, and to certify the annual financial statements of the REB for multiple years, with each fiscal year ending on June 30th. *
Required financial statements and reports:
- The REB Financial Statements;
- As above but with all schedules required for compliance with OMB Circular A-133, as revised;
- A report and evaluation of the internal control systems;
- A report on the control system to assure compliance with all laws and regulations that have an effect on each major assistance program;
- Preparation of Federal Form 990 tax return, and the MA PC tax return; and
- Preparation of Data Collection Form for reporting to the Federal Agency.
Items 1, 2, 5 & 6 are to be prepared by the audit firm as a non-attest service to the REB.
A copy of the Fiscal Year Ending June 30, 2009 Financial Statements will be made available to the Offerer upon request.
* Note: Negotiations will be conducted with the winning bidder, and will lead to the award of a fixed price contract. The contract will be for a period of one year, with an option on the part of Metro North REB to extend the contract on an annual basis for an additional three (3) to five (5) years.
V.SUBMISSION REVIEW PROCESS
The REB RFP Review Process will consist of the following:
Submissions will be reviewed for completeness and timeliness of response. Submissions that are incomplete will be rejected and will not be considered.
- SUBMISSION REVIEW PROCESS (continued)
A Review Committee will examine all submissions and determine if the following qualifying criteria have been met.
- Mandatory Criteria
Offerers must meet the following mandatory criteria:
- Licensed to practice as a certified public accountant in the Commonwealth of Massachusetts;
- Meets the independence requirements of the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, 1994 revision, published by the U.S. General Accounting Office; and
- Doesnothave a record of substandard audit work, and, must submit the most current peer review.
- Technical Criteria
Those Offerers who have met the criteria in Section A above will be evaluated on the following criteria:
- Responsiveness of the submission clearly indicating an understanding of the services to be provided;
- Comprehensiveness of the audit work plan;
- Technical experience of the firm including audit work of the type under consideration, and audit work for similar entities;
- Qualifications of staff assigned to the audit, position in the firm, and years and types of experience will be considered, as determined from the resumes submitted:
(a) Qualifications of supervisory personnel and the team providing the audit work;
(b) General direction and supervision to be exercised over the audit team by the firm's management personnel;
- Cost.
Submissions failing to meet the minimum qualifying criteria may not be reviewed. The Review Committee may request clarification from Offerers. These responses will be incorporated as amendments to the original submission.
The Review Committee will determine the winning bidder. All bidders will be notified within two (2) weeks of the review date.
- SUBMISSION REVIEW PROCESS (continued)
The REB will enter into a contract with the winning bidder upon successful completion of contract negotiations.
VI.FORMAT FOR SUBMISSIONS
Submissions and any additional material must be typewritten. Responding organizations should ensure that their submissions conform to the following requirements:
1. The Submission Cover Sheet (Attachment A) must be Page 1 of your submission;
2. The submission must be organized according to the Submission Contents Checklist (Attachment B); and
3. The following material must be included and isrequired:
A.Letter of Transmittal
The letter of transmittal must contain the following:
1.A statement of the Offerer's understanding of the work to be performed, including time and cost estimates for each step in the aforementioned work description. Offerers must include hourly rates for staff assigned to specific kinds of tasks. Work performed will include periodic progress reports, and meetings with Metro North REB staff.
- A positive commitment to provide the service within the specified time table.
- The names of persons authorized to represent the Offerer, their titles, address, telephone number and e-mail address.
B.Profile of the Offerer
The Offerer must provide the following general information:
- Organization and size of the Offerer, and whether it is local, regional, national or international in operation;
- A description of the range of activities performed by the local office;
- A statement on the Offerer’s staff capability to perform audit work related to the needs of the REB;
- Audited financial statements to the Offerer; and
- A positive statement that the following mandatory criteria are satisfied.
VI.FORMAT FOR SUBMISSIONS (continued)
(a)An affirmation that the Offerer is properly licensed for practice as a Certified Public Accountant in the Commonwealth of Massachusetts.
(b)An affirmation that the Offerer meets all requirements of Massachusetts law and regulations.
(c)An affirmation from the Offerer concerning the American Institute of Certified Public Accountants Interpretation 501-3, Failure to Follow Standards and/or Procedures or Other Requirements in Governmental Audits.
(d)An affirmation that the Offerer meets the independence requirements of the Standard for Audit of Governmental Organizations, Programs, Activities, and Functions, 1994 revision, published by the U.S. General Accounting Office.
(e)An affirmation that the Offerer does not have a record of substandard audit work.
C.Summary of the Offerer's Qualifications
- Proposals must include information as to the Offerer's background and experience in providing audit services to federal, state, or local governments, as well as to quasi-public agencies and non-profit organizations.
- Identify the partner and other staff who will perform the audit. Resumes, including those of the auditor in chargeand the individual with final responsibility for the engagement, should be included.
- Describe the recent local office audit experience which is similar to the type of audit work requested, and provide the names and telephone numbers of the representative clients.
D.Offerer's Approach to the Audit
Submit a work plan to accomplish the audit work. The work plan should include time estimates and staffing levels. Where possible, indicate individual staff member’s names and their titles.
The work plan should demonstrate that the auditor can:
- Render an opinion report on the financial statements;
- Render a report and evaluation of the internal control systems;
- Render a report on Metro North REB’s control system to assure compliance with all laws and regulations; and
VI.FORMAT FOR SUBMISSIONS (continued)
- Demonstrate an understanding of the audit requirements of a single audit, as specified in OMB Circular A-133 and the audit tests and procedures to be applied in completing the audit.
E. Report Requirements
The Offerer should provide information concerning its understanding and ability to meet specific reporting requirements.
F.Time Requirements
The response should detail how the Offerer plans to meet the timeline and reporting deadlines, including issuance of an opinion and financial report on the REB on or before February 15th of each fiscal year.
.
G. List of Pending Litigation
The Offerer must include a list of any pending litigation against the Commonwealth of Massachusetts in which it is involved.
H.Compensation
The cost of services must be submitted as part of the submission.
VII.MISCELLANEOUS
APPEALS:
Appeals of the decision may be filed with:
Nancy Brown
Executive Director
Metro North Regional Employment Board
125 CambridgePark Drive
Cambridge, MA02140
Appeals must be filed within fourteen days of the date of Metro North REB’s notice to unsuccessful bidders. The REB Executive Director has final authority on any disputed claim.
A hearing will be held on the appeal within fourteen days of receipt of the appeal and a written answer to the appeal issued within fourteen days of the hearing.
REJECTION OF SUBMISSIONS:
Metro North REB reserves the right to reject any and all submissions, in whole or in part, if deemed to be in the best interest of Metro North REB.
VII.MISCELLANEOUS (continued)
SUBMISSIONS:
Offerers must submit one (1) signed original and three (3) copies of their response to the REB. No e-mail submissions will be accepted. These copies will then become the sole property of the REB. The submission upon which the award is based will become an integral part of the agreement between the REB and the successful Offerer.
Any additional data may be included as attachments to this submission.
SUBCONTRACTING:
No part of the work resulting from an agreement with the REB, covered by the terms of this RFP, may be subcontracted unless such subcontract is approved in writing in advance by the REB.
PAYMENT SCHEDULE:
The selected auditing firm is expected to submit invoices which detail specific tasks completed, including, but not limited to: staff assigned, hourly rates, number of hours by task, and specific cost for clerical support and out-of-pocket expenses in the submitted budget format. Fees not billed within sixty (60) days of service will not be honored.
ATTACHMENT A
SUBMISSION COVER SHEET
Name of Firm:
Address:
Telephone Number:()
Fax Number:()
Contact Person:
Position/Title:
Certification: I hereby certify that the information provided in this submission is accurate and that I am duly authorized/ empowered to sign contracts on behalf of this organization.
SIGNATUREDATE
TYPE OR PRINT NAMEPOSITION/TITLE
ATTACHMENT B
SUBMISSION CONTENTS CHECKLIST
______Submission Cover Sheet (signed and dated)
______Letter of Transmittal
______Profile of Offerer
______Summary of the Offerer's Qualifications
______Offerer's Approach to the Audit
______Report Requirements
______Time Requirements
______Budget
______List of Pending Litigation
______Audited Financial Statements
______Any Additional Data
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ATTACHMENT C
METRO NORTH REB
REQUEST FOR PROPOSALS
MISCELLANEOUS INFORMATION
Sources of Funds by Fiscal year
FY10 / FY09$ Totals / % / $ Totals / %
1 / Sources
1.1 / Federal Funding / $ 9,065,596 / 84% / $ 5,764,813 / 73%
1.2 / State Funding / 1,708,025 / 16% / 2,114,365 / 27%
10,773,621 / 100% / 7,879,178 / 100%
1.1 / Federal Funding
Dept of LaborFY10 FY09
Division of Employment and Training
ES 1,311,1521,239,967
ARRA ES583,96837,775
TOTAL ES1,895,1201,277,742
UI44,76324,456
DVOP10,90312,535
LVER28,43425,182
Skills Start 12,49049,960
Navigator28,12557,200
WIA Adult1,055,0631,218,937
ARRA WIA Adult485,907221,491
TOTAL ADULT1,540,9701,440,428
Rapid Response - Set Aside45,200
WIA Dislocated Worker1,135,3411,308,415
ARRA WIA Dislocated Worker937,17289,193
Rapid Response12,33212,781
TOTAL DLW2,130,0451,410,389
WIA Incentive20,000
WIA Youth1,275,4351,127,368
ARRA WIA Youth1,108,376136,664
Jobs First (Career Day)1,500.00
TOTAL YOUTH2,403,8111,265,532
Commonwealth Corporation
EOPSS919,626
P-21 3,918
P-21 4,427
P-21 6,098
P-21 66,364
Economic Development and Industrial Corporation/Boston
FirstMarbleheadState Set Aside68,938
Dept of Education
DOE Adult Ed. Career Centers51,30751,313
1.2State Funding
Division of Employment and Training
DWD95,00068,870
CareerCenterSTATE895,055992,737
Department of Transitional Assistance
DTA11,705239,835
Commonwealth Corporation
Youth Works43,966.91
Summer Youth317,244276,954
Dept of Education
CA75,000148,871
ABE314,021343,461
Total of Awards10,773,6217,879,178
1