ONEONTA CITY SCHOOL DISTRICT Office of the Business Manager 31 Center Street Oneonta, NY Phone: (607) , ext Fax: (607)

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1 ONEONTA CITY SCHOOL DISTRICT Office of the Business Manager 31 Center Street Oneonta, NY Phone: (607) , ext Fax: (607) TO: DAILY STAR - LEGAL NOTICE REQUEST FOR PROPOSALS INTERNAL AUDIT SERVICES The Oneonta City School District in accordance with Section 104-b of the General Municipal Law hereby invites submissions of proposals on: INTERNAL AUDIT SERVICES Bids will be received until 2:00 P.M. on July 28, 2017 at the Business Office of the Oneonta City School District, 31 Center Street, Oneonta, NY and at that time and place will be publicly opened and read aloud. Specifications and bid forms may be viewed on the District s website: Oneontacsd.org or they may be obtained from the Business Office, 31 Center Street, Oneonta, NY Please submit five (5) copies of your proposal, no later than, 2:00 p.m. July 28, 2017 to the following address: Lisa Weeks Business Manager Oneonta City School District 31 Center Street Oneonta, New York Proposals must be in a sealed envelope clearly marked: Proposal Internal Audit Services. The Board of Education reserves the right to accept partial bids or reject any or all bids. Board of Education of the Oneonta City School District of the City of Oneonta County of Otsego 31 Center Street Oneonta, NY BY: Lisa J. Weeks, Business Manager el:bids:publicnotice:internalauditservices

2 ONEONTA CITY SCHOOL DISTRICT REQUEST FOR PROPOSAL FOR INTERNAL AUDIT SERVICES Home of the Yellowjackets ONEONTA CITY SCHOOL DISTRICT BUSINESS OFFICE 31 CENTER STREET ONEONTA, NEW YORK 13820

3 I. INTRODUCTION A. General Information ONEONTA CITY SCHOOL DISTRICT REQUEST FOR PROPOSAL Risk Assessment and Internal Audit Services The Oneonta City School District is requesting proposals from entities wishing to provide risk assessment and internal audit services for the fiscal year ending June 30, 2018, with options to provide internal audit services for the subsequent two (2) fiscal years. These engagements are to be performed in accordance with the provisions included in this request for proposal: To be considered, five (5) copies of a proposal must be received by Lisa J. Weeks at Oneonta City School District, 31 Center Street, Oneonta, NY by 2:00 PM on July 28, The Oneonta City School District reserves the right to reject any or all proposals submitted. The Oneonta City School District reserves the right, where it may serve the District s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. At the discretion of the Oneonta City School District, entities submitting proposals may be requested to make oral presentations as part of the evaluation process. Submission of the proposal indicates acceptance by the proposer of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the Oneonta City School District and the proposer selected. It is anticipated the selection of a contractor will be completed by August 4, Following the notification of the selected proposer, it is expected a contract will be executed between both parties by August 16, B. Terms of Engagement The terms of engagement is intended to be for a three year period, with the option to extend for an additional two year period. The first phase is the comprehensive risk assessment as defined in II.A.1, Scope of Work. The second phase will be for the next two years, determined by the Board of Education s choice of risk(s) to test in accordance with II.A.2, Scope of Work. An all-inclusive fee must be quoted for the first phase. Anticipated all-inclusive fees for annual services for the subsequent two years should also be included. Each party shall have the right to cancel the awarded contract provided that thirty days written notice is given by the other party. 1

4 II. NATURE OF SERVICES REQUIRED A. Scope of Work In Phase I (July 2017 June 2018), the contractor will provide the following services: 1. Development of a District wide All Funds financial risk assessment. The assessment must include, at a minimum: a. Interviews with senior management & the Board of Education b. Review of the audit committee charter c. Review of District financial policies & procedures d. Discussions with district external auditors about internal control issues identified in the financial audit e. Identification and documentation of key financial functions and internal controls. The use of flow charts & risk maps is highly encouraged. f. Articulation of the District s risk tolerance and appetite g. Identification of District financial risks (classified as high, moderate, and low) h. Communication of the identified risks in a written report and oral presentation to the Audit Committee. These communications should facilitate: 1. Board and District comprehension of risk priorities 2. District development of appropriate mitigating strategies to be integrated into policies, procedures and processes. i. Creation of a framework that allows for continuous review and updating of the District s financial risk assessment. j. Provision of suggestions for a long-term approach to the internal audit function including quality assurance of that function. In Phase II (12-month periods), the contractor will provide the following services based on the direction of the Board of Education, who will identify risk area(s) to be tested: 2. Provision of Internal Audit Services to include, at a minimum: a. Development of an audit plan for those functions identified by the District as current period priorities. The audit plan must consider, at a minimum: 1. The adequacy of internal controls to ensure financial reporting reliability with particular attention to District information technology 2. Compliance with policies, procedures, laws and regulations 3. The means used to safeguard assets 4. The economy and efficiency with which resources are used 5. The effectiveness of the function in meeting District goals and objectives b. Execution of the audit plan to include, at a minimum: 1. Tests of the internal controls 2. Assessment of the results of these tests 3. Communication of these results to the Audit Committee on an annual basis, including recommendations for improvement c. Monitoring of previous internal control recommendations to assure control effectiveness d. Update of the District s financial risk assessment 2

5 B. Auditing Standards To meet the requirements of this request for proposals, the engagement must be performed in accordance with generally accepted auditing standards, the applicable laws and regulations of the State of New York, and the specific guidelines of the District s Board of Education. Generally accepted auditing standards include the Government Auditing Standards, issued by the Comptroller General of the United States (Yellow Book), and/or the International Standards for the Professional Practice of Internal Auditing, issued by the Institute of Internal Auditors (Red Book). Regardless of the auditing standards adopted, the proposer must demonstrate, in accordance with the laws and regulations of the State of New York and guidelines of the District s Board of Education: 1. Independence from the District in accordance with standards. 2. Continuing Professional Education in financial risk assessment, internal auditing, and/or governmental auditing. 3. Quality Assurance compliance through peer review or quality assurance review. Evidence of compliance with standards must be included in the proposal. C. Access to Records The contractor shall have free and unrestricted access to all relevant District records, physical properties, and personnel. When appropriate, District personnel may assist the contractor. D. Working Papers All working papers, electronic and hardcopy, are the property of the district. The contractor may retain copies for its records. In addition, the contractor shall respond to the reasonable inquiries of successor contractors. E. Organizational Reporting The contractor shall report functionally to the Board of Education. Administratively, it may report to the Superintendent or Audit Committee, at the discretion of the Board of Education. III. DESCRIPTION OF THE DISTRICT A. Name and Telephone Number of Contact Person The auditor s principal contact with the Oneonta City School District is Lisa J. Weeks, Business Manager, (607) , ext

6 B. Background Information The Oneonta City School District is 61.9 square miles and provides quality educational services to approximately 1,700 students in Kindergarten through Grade 12, in four buildings. The District contracts its transportation and food service labor, and operates its own maintenance program. The District s fiscal year begins on July 1 and ends on June 30. The District has four bargaining units that cover instructional personnel (approx. 235), principals (6), clerical (17), and CSEA-O&M (28). The contracts for Superintendent of Schools and several other staff are negotiated separately. Total annual payroll is approximately $17,500,000. The District has a total general fund budget of approximately $38,678,108 and has a seven (7) member Board of Education. The accounting and financial reporting functions of the District are centralized. The District s accounting and financial reporting functions are computerized and integrated. The District s secondary level (Grades 7-12) has recognized Extraclassroom activities. More detailed information on the District and its finances can be found in the District s latest financial statements and budget documents at Click on Our District. C. Magnitude of Finance Operations All financial accounting and reporting is handled through the business office. Number of vendors the District regularly does business with: 1,250 Number of purchase orders generated in a year: 1,500 Number of non-payroll checks issued in a year: 2,500 Number of paychecks distributed in a pay period: 400 D. Computer Software The business office utilizes a local area network (LAN) and server running the Windows Server 2008R2 operating system, The data is held on a Windows 2012R2 Server running SQL Server Bothe servers are backed up by a Unitrends Data Protection Unit (DPU). The server is further protected via the use of SAN Snapshots which can also be used to recover lost data. All workstations run Windows 10 Enterprise LTSB. Backups of data are also protected by being replicated to a vault maintained by ONC-BOCES. All systems are also scanned with an Enterprise version of Sophos Antivirus. The District s financial software is nvision E. Contracts The District contracts individually or through inter-municipal contracts for the following: - Transportation Birnie Bus Service - Food Service Chartwells - Educational and Administrative Services BOCES

7 IV. TIME REQUIREMENTS A. Proposal Calendar The following is a list of key dates up to and including the date proposals are required to be submitted: Requests for proposals issued July 12, 2017 Due Date for proposals July 28, 2017 B. Notification and Contract Dates Selected firm notified August 4, 2017 Contract date August 16, 2017 C. Expected Engagement Commencement The engagement must commence no later than September 1, 2017, with the first report to the Audit Committee no later than December 1, V. PROPOSAL REQUIREMENTS A. General Requirements 1. Inquiries Inquiries concerning the request for proposals and the subject of the request for proposals must be made to: Lisa J. Weeks Business Manager 31 Center Street Oneonta, NY (607) , ext Submission of Proposals The following material is required to be received by July 28, 2017 for an entity to be considered: a. Five (5) copies of proposal to include the following: i. Title page Title page showing the request for proposal s subject; the firm s name, address and telephone number of a contact person; and the date of the proposal. ii. Table of Contents

8 iii. Transmittal Letter A signed letter of transmittal briefly stating the proposer s understanding of the work to be done, the commitment to perform the work within the time period, a statement of why the firm believes itself to be the best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer for sixty days. iv. Detailed Proposal THE DETAILED PROPOSAL SHOULD FOLLOW THE ORDER SET FORTH IN SUBSEQUENT SECTION V.B. OF THIS REQUEST FOR PROPOSALS. b. Proposer should send the completed proposal to the following address: Lisa J. Weeks Business Manager 31 Center Street Oneonta, NY B. RFP Requirements 1. General Requirements The technical proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer s capabilities to satisfy the requirements of the request for proposals. 2. Auditing Standards The firm must indicate the auditing standards adopted for purposes of this engagement. 3. Independence The proposer should provide an affirmative statement that it is independent of the School District as defined by the standards adopted and incompliance with this request. 4. Firm Qualifications and Experience The proposal should state the size of the proposer s organization, the size of the firm s internal audit staff (where applicable), the location of the office from

9 which the work on this engagement is to be performed and the number and nature (including degrees, certifications, years of and nature of school district financial experience) of the professional staff to be assigned to this engagement. The proposer shall provide information on the results of its most recent peer/quality assurance review. 5. Partner, Supervisory and Staff Qualifications and Experience The proposer should identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement. Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the School District. However, in either case, the School District retains the right to approve or reject replacements. Other engagement personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. 6. Prior Engagements with the Oneonta City School District The proposer should list separately all engagements within the last five years for the Oneonta City School District by the type of engagement (i.e. audit, management advisory services, other). For each engagement, the proposer should indicate the scope of work, date, engagement partners, total hours, the location of the office from which the engagement was performed, and the name and telephone number of the principal client contact. 7. Similar Engagements with Other Government Entities For the office that will be assigned responsibility for the engagement, list the most significant engagements (maximum of ten) performed in the last five year that are similar to the engagement described in this request for proposals. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. 8. Specific Engagement Approach The proposal should set forth a work plan, including an explanation of the engagement methodology to be followed, to perform the services required in Section II of this request for proposals. Firms are required to provide the following information on their approach: a. Level of staff and number of hours to be assigned for Phase I. b. Sample sizes and the extent to which statistical sampling and data mining techniques are to be used in the engagement

10 9. Fee c. Extent of use of Information Technology in the engagement d. Approach to be taken in determining laws and regulations that will be applicable to the engagement. The fee should be a flat annual rate and should include any necessary expenses. It should also cover follow-up work and provide for advice and counsel throughout the term of the contract. 10. Manner of Payment Progress payments will be made on the basis of hours of work completed during the course of the agreement. Interim billings shall cover a period of not less than a calendar month. Ten percent (10%) will be withheld pending delivery of the firm s final reports. VI. EVALUATION PROCEDURES A. Administrative Review Proposals submitted will be evaluated by the Audit Committee and a recommendation will be made to The Board of Education. B. Oral Presentations During the evaluation process, the Audit Committee has the discretion to request that one or more proposers make oral presentations. Such presentations are intended to provide more information for the District decision makers and an opportunity for the proposer to answer any questions on its proposal. Not all firms may be asked to make such oral presentations. C. Final Selection The Oneonta City School District Board of Education will select a contractor based upon the recommendation of the Audit Committee. It is anticipated that a contractor will be selected by August 4, Following notification of the proposer selected, it is expected a contract will be executed between both parties by August 16, D. Right to Reject Proposals Submission of a proposal indicates acceptance by the proposer of the conditions contained in this request for proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between Oneonta City School District and the proposer selected. The Oneonta City School District reserves the right without prejudice to reject any and all proposals.

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