WEST VALLEY-MISSION COMMUNITY COLLEGE DISTRICT

REQUEST FOR PROPOSAL #7-1314

FOR

INDEPENDENT AUDIT SERVICE

REQUEST FOR PROPOSAL

Request for Proposal due date and time: November 6, 2:00 p.m.

Return to:Brigit M. Espinosa, Director, General Services

Facilities Building

West Valley - Mission Community College District

14000 Fruitvale Avenue

Saratoga, CA 95070

Telephone: (408) 741-2187

This Request for Proposal is for contracting with an independent auditor to perform the audit for the District for fiscal years ending June 30, 2014, June 30, 2015, and June 30, 2016.

The District's intent is to enter into a series of one-year contracts for a period of three years, subject to satisfactory performance, with potential one-year extension for one additional year, at the option of the District.

Proposals must be received in the Purchasing office no later than the due date andtime specified above. Late proposals will be rejected.

Proposals must be sealed with the envelopes clearly marked in the lower left handcorner "Sealed Proposal Independent Auditors"

Complete and return one (1) original (marked) and three (e) copies or one (1) original and three (3) jump drives.

Should you have questions regarding this proposal email: by October 28, 2013, 5:00 p.m. All questions will be answered by and addendum to all potential firms.

REQUEST FOR PROPOSAL #7-1314

FOR

INDEPENDENT AUDIT SERVICE

You are invited to submit a proposal for independent audit services in response to the Request for Proposal.

To provide all Proposers with a clear understanding of the services to be

provided, the following is a projected time frame.

1.Request for Proposal to FirmsSeptember 30, 2013

2.Submission of questionsOctober 28, 2013

3.Closing Date For Submission of RFPNovember 6, 2013

4.Committee Review of ProposalsNovember 7 & 8, 2013

5.InterviewsNovember 11, 2013 – Dec 1, 2013

6.Award of ContractDecember 10, 2013

This Request for Proposal does not commit the West Valley-Mission Community College District to award a contract or to pay any costs incurred in the preparation of any proposal responsive to this request. The West Valley-Mission Community College District reserves the right to accept all or part of any proposal or to cancel inpart or in its entirety this RFP. The West Valley-Mission Community College District further reserves the right to accept the proposal that it considers to be in the best interest of the West Valley-Mission Community College District. While priceis a consideration, West Valley-Mission Community College District reserves theright to award a contract on the basis of its overall evaluation.

DESCRIPTION OF THE DISTRICT AND RECORDS TO BE AUDITED

1. The West Valley-Mission Community College District was established in January 1963. The District includes approximately thirty square miles of Santa Cruz County and the remainder of the District is in Santa Clara County. The District operates West Valley College in Saratoga and Mission College in Santa Clara.

2.The selective financial and statistical information related to fiscal 2011-2012 are as follows:

•Credit FTES15,620

Non Credit FTES 500

•Approximate number of full time employees (FTE): 700

•Statement of Revenue & Expenses All Funds audited financial results for fiscal

2011-2012.

  • Total Current Assets$151,991,023
  • Total Noncurrent Assets$271,939,172

Total Assets$423,930,195

  • Total Current Liabilities$ 32,675,070
  • Total Non-Current Liabilities$294,414,937

Total Liabilities$327,090,007

Total Net Assets$ 96,840,188

  • General Fund budgeted expenditures for FY 2011-2012$ 92,332,935
  • Number of federal program in FY 2011-201223

3.The District utilizes the following funds and account groups:

Funds

  • Unrestricted General Fund
  • Restricted General Funds
  • Debt Service Funds
  • Special Revenue Fund
  • Capital Projects Funds
  • Enterprise Funds
  • Trust Funds
  • Agency Funds
  • Other Component Units: Mission West Valley Land Corporation; West Valley Mission Community College District Foundation

4.The accounting policies of the District are in conformity with general accepted accounting principles related to governmental units and California Community College Districts. Revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current fiscal period. Expenditures are recognized in the accounting period in which the liability is incurred, except for interest on long-term debt, which is recognized when due.

NATURE OF SERVICES REQUIRED

1.Scope of the Work to be performed

The scope of the services to the District will consist of:

A.Audit of the general purpose financial statements, including all funds

and Balance Sheet accounts, of the District. The audit opinion should include entity-wide statements as well as each individual fund.

2.Auditing Standards to be followed:

The audit shall be conducted in accordance with generally accepted auditing standards, Governmental Auditing Standards issued by the Comptroller General of the United States and the provisions of Office of Management and Budget Circular A-133, "Audits of State and Local Governments, and Non-Profit Organizations" which involves obtaining an understanding of the internal control structure, including the control environment, the accounting system, and the control procedures established by management. In June of 1999 the Governmental Accounting Standards Board (GASB) issued Statement No. 34, "Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments." This new statement makes significant changes in the format and focus of financial statements of state and local governments. In November of 1999, GASB issued Statement No. 35, "Basic

Financial Statements and Management's Discussion and Analysis for Public

Colleges and Universities, an Amendment of GASB Statement No. 34.” Statement No.

35 permits public colleges and universities to adopt a reporting model based on the

provisions of Statement No. 34 that apply to special-purpose governments engaged

only in business-type activities (BTA), engaged only in governmental activities, or

engaged in both governmental and business-type activities.

3.Reporting Requirements

A.At minimum, the following reports should be issued for the District:

  • Independent Auditor's Report
  • Statement of Net Assets
  • Statement of Revenues, Expenses, and Changes in Net Assets
  • Statement of Cash Flows
  • Schedule of Expenditures of Federal Awards
  • Schedule of Expenditures of State Awards
  • Schedule of Workload Measures for Statement Apportionment Annualized and Annual Apprenticeship Hours of Instruction
  • Reconciliation of Annual Financial and Budget Report with Audited Financial Statements
  • Report on Compliance and on Internal Control Over Financial Reporting Based on 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
  • Report on State Compliance
  • Summary of Auditor’s Results
  • Financial Statement Findings and Recommendations
  • Federal Awards Findings and Questioned Costs
  • State Awards Findings and Questioned Costs
  • Summary Schedule of Prior Audit Findings
  • Balance Sheet – All Funds
  • Balance Sheet Reconciliation
  • Statement of Revenues, Expenditures, and Changes in Fund Balance – All Funds
  • Statement of Revenues, Expenses, and Changes in Net Assets Reconciliation
  • Supplementary Information – Management Discussion and Analysis, District Organization
  • Proposition 39 general obligation bond financial and performance audits

B. Report Review and Timing

Draft: November 30

Final Report: December 31

C. Number of Reports to be delivered to District: 50

PERIOD OF THE AUDIT

The periods to be audited are Fiscal Years ending June 30, 2014, June 30, 2015 and June 30, 2016.

TERM OF THE ENGAGEMENT

The District's intent is to enter into a series of one-year contracts for a period of three years, subject to satisfactory performance, with potential one-year extensions for one additional year, at the option of the District.

ASSISTANCE AVAILABLE TO THE RESPONDENT

1.The audits for the fiscal Years ending June 30, 2011, and June 30, 2012, were made by Vavrinek, Trine, Day & Co., LLP, and are available for review at the District's Business Services Office.

Previous audit work papers are available for inspection upon request. Please contact Terri Montgomery (925) 734-6600.

2.The District's Accounting staff can prepare schedules, reproduce documents, pull documents, etc.

3.The District's Chancellor and Vice Chancellor, Administrative Services will sign the representation letter.

4.The District will perform interfund reconciliation’s and reconciliation’s with the Santa Clara County of Education records.

5.The District will provide a work area for the auditor, which is located near the records to be audited.

EXIT CONFERENCE REQUIREMENTS

The District will require an audit exit conference with the Vice Chancellor, Administrative Services, the Director of Fiscal Services and other staff as appropriate. The auditing firm will be expected to provide progress reports to the Vice Chancellor while the audit is progressing and meet with the committee and separately if requested by the Vice Chancellor, at the conclusion of the audit to review the final audit report.

Finally, the district will expect the auditing firms to provide a presentation to the Ad hoc Board Budget Subcommittee and Board of Trustees on the audit process and findings when the report is presented to them.

REPORTS REQUIRED

Fifty (50) copies of the audit report are required. The report should meet the following minimum requirements:

1.The audit report shall state that the audit was made in accordance with the provisions of the OBM Circular A-133.

2.The audit report shall include at least:

A.The auditor's opinion report on the financial statements and on a schedule of federal assistance, showing the total expenditures for each federal assistance program as identified in the Catalog of Federal Domestic Assistance, and all other federal programs and grants which have not been assigned catalog numbers.

B.The auditor's report on the study and evaluation of internal control systems, and it must identify the organization's significant internal accounting controls, and those controls designed to provide reasonable assurance that federal programs are being managed in compliance with laws and regulations. The report must identify the controls, which were not evaluated, and the material weaknesses identified as a result of the evaluation.

C.The auditor's report on compliance containing;

1) A Statement of positive assurance with respect to those items tested for compliance with laws, rules and regulations pertaining to non-major programs and other items which could have a material effect on financial reports and claims for advances and reimbursements. In addition, the auditor's report must disclose whether the District has complied with laws and regulations that may have a material effect on each major federal assistance program.

2) A statement of negative assurance on those items not tested.

3) A summary of all instances on noncompliance.

4) An identification of total amounts of costs questioned, if any, for each federal assistance award as a result of noncompliance.

5)Other statements or reports to satisfy state and local governments' requirements.

6)Experience in performing Proposition 39 general obligation bond financial and performance audits. The district may request the selected firm to prepare and present these audit reports to the Bond Oversight Committee and Governing Board. Any experience in these audit areas should be provided with your response to the RFP along with cost to the district for this additional service.

D.In June of 1999 the Governmental Accounting Standards Board (GASB)

issued Statement No. 34, "Basic Financial Statements and Management's

Discussion and Analysis for State and Local Governments." This new statement makes significant changes in the format and focus of financial statements of state and local governments. In November of 1999, GASB issued Statement No. 35, "Basic Financial Statements and Management's Discussion and Analysis for Public Colleges and Universities, an Amendment of GASB Statement No. 34.” Statement No. 35 permits public colleges and universities to adopt a reporting model based on the provisions of Statement No. 34 that apply to special-purpose governments engaged only in business-type activities (BTA), engaged only in governmental activities, or engaged in both governmental and business-type activities.

All parts of the audit report should be bound together. The management report should be submitted and included as part of the above audit report.

Reports on fraud, abuse, or illegal acts or indications of such acts, including all questioned costs found as the result of these acts, should be covered by separate written report to the federal department or agency. Also, the Vice Chancellor, from time to time, may request written reports on observations by the Auditor regarding the effective performance of fiscal and budgetary practices.

TIME REQUIREMENTS

1.Date and time for proposal submission: November 6, 2013 at 2:00 pm

2.Date, time, and place for selected respondent interviews: November 11, 2013 through December 1, 2013, West Valley- Mission Community College District, 14000 Fruitvale Avenue, Saratoga, CA 95070, location to be determined.

3.Date of contract award: December 10, 2013

4.Dates audit work can be commenced:

A.Preliminary work prior to closing accounts: April throughJune

B.Post closing work: August through November

5.Date for preliminary report completion and exit conference: November

6.Final Exit conference: November

7.Date for final report submission: December

CONTRACTUAL ARRANGEMENTS

The District intends to present the contract for award to the Board of Trustees in December 2013. It is planned to award a series of three one-year contracts based on the satisfactory performance of the auditor. The auditor can bill the District as the audit progresses. The District will make payment within a reasonable period after receipt of the bill.

REPORT REVIEW AND TIMING

The Vice Chancellor, Administrative Services and the Director of Fiscal Services are responsible for reviewing and responding to the draft audit report.

WORKING PAPERS

Working papers will be available for examination by authorized representatives of the relevant federal agency, the General Accounting Office, the District, and other agencies as required.

RIGHT TO REJECT

The District reserves the right to reject any and all proposals submitted and to request additional information from all respondents.

The contract awarded will be made to the independent auditor who, based on evaluation of all responses and oral interviews, is determined to be the best qualified to do the audit.

Appendix A

West Valley Mission Community College District

Format of the Response

The Request for Proposal should conform to the following format to simplify and to expedite the review process and to obtain the maximum degree of information from the respondent.

TITLE PAGE

The response should identify the West Valley-Mission Community College District proposal, the name of the independent auditor, the local address, the telephone number, the fax number, the name and title of the contact person, signature of the authorized representative of the firm, e-mail address of the contact and date of submission. The period which the proposal is effective (non rescindable) should also be stated.

CONTENTS

The contents of the proposal should include a clear and complete identification of the material submitted by section and page number.

LETTER OF TRANSMITTAL

The letter of transmittal should contain the following information:

1. A brief understanding of the audit service to be performed.

2.A positive commitment to perform the service within the time period specified.

3.The names of persons authorized to represent the respondent, their title, the address and the telephone number.

PROFILE OF THE INDEPENDENT AUDITOR

The profile of the respondents should include general background information, such as:

1.The organization and size of the respondent, whether it is local, regional, national, or international in operations.

2.The location of the office from which the work is to be done and the number of professional staff by staff level employed at that office.

3.A description of the range of activities performed by the local office such as auditing, accounting, tax service, or management services.

4.A positive statement that the following mandatory criteria are satisfied:

A.An affirmation that the respondent is properly licensed for practice as a certified public accountant.

B.An affirmation that the respondent meets the independence requirements of the Standards for Audit of Governmental Organizations, Programs, Activities and Functions, 1981 revision, published by the U.S. General Accounting Office.

C.An affirmation that the respondent does not have a record of substandard audit work.

D.An affirmation that the respondent meets all specific requirements imposed by state or local law or rules and regulations.

E.An affirmation from the respondents stating they will follow the American Institute of Certified Public Accountants' "Interpretation 501-3, Failure to Follow Standards and/or Procedures or other Requirements in Governmental Audits."

TECHNICAL EXPERIENCE OF RESPONDENT

The technical experience of the respondent should include the following information:

1.List Bay area school district/community college district clients and give the names and telephone number of client officials responsible for the audits listed. Also, discuss local, state, and national reputation for quality work performed in the public sector.

2.Discuss ability to provide additional auditing, accounting, or management consulting services and provide a summary of specific projects completed both in the public sector and specifically for school districts/community college districts in the Bay Area.

3.If other auditors are to participate in the audit, those auditors should be required to provide similar information.

QUALIFICATIONS OF RESPONDENT

1.Identify the audit partners, managers and field supervisors, and other staff who will work on the audit, including staff from other than the local office. Resumes including relevant experience and continuing education for the auditor in charge up to the individual with final responsibility for the engagement should be included. (The resumes may be included as an appendix.)

2.Provide specific details of proposed audit approach. The information should include:

A.Sampling techniques for transactions testing:

B.Analytical procedures used to analyze results; and,

C.Percentage of time to be scheduled for both preliminary

and final audit work.

RESPONDENTS APPROACH TO THE EXAMINATION

1.Submit a work plan to accomplish the scope defined in the Request for Proposal. The work plan should include time estimates for each significant segment of the work and the staff level to be assigned. Where possible, individual staff members should be named and their titles provided. The planned use of a specialist should be specified.