REQUEST FOR PROPOSALS. Phone# (928)

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1 REQUEST FOR PROPOSALS PROPOSAL DUE DATE: DESCRIPTION: CONTACT PERSON: Friday, September 27, 2013, 5:00 P.M. Fort Defiance Indian Hospital Board, Inc. Purchasing Department RFP #13-016, Auditing Services Fi Yazzie, Interim Purchasing Manager Phone# (928) RETURN ALL PROPOSALS CLEARLY MARKED DO NOT OPEN- RFP# , Auditing Services : DELIVER TO: MAIL TO: Fort Defiance Indian Hospital Board, Inc. Purchasing Department 2 nd Floor Attn: Mr. Fi Yazzie, Interim Purchasing Manager Corner of Route 12 and Route 7 Ft. Defiance, AZ Fort Defiance Indian Hospital Board, Inc. Purchasing Department Attn: Mr. Fi Yazzie, Interim Purchasing Manager P.O. Box 649 Ft. Defiance, AZ The Fort Defiance Indian Hospital Board, Inc. reserves the right to reject any or all proposals and to waive any informality in the proposals received whenever such rejection or waiver is in the best interests of the Fort Defiance Indian Hospital Board, Inc. 1

2 FORT DEFIANCE INDIAN HOSPITAL BOARD, INC. RFP# Auditing Services SECTION I General Information A. Request for Proposals (RFP): The Fort Defiance Indian Hospital Board, Inc. (FDIHB) is contacting prospective Auditors that may have an interest in doing business according to this RFP. All interested Auditors are invited to submit a proposal in accordance with this RFP. The companies that respond to this RFP are referred to as the Auditor. B. This RFP provides prospective Auditors with sufficient information to enable preparation and submittal of proposals for the purpose of providing auditing services. C. Scope. This RFP contains the instructions and requirements to be deemed eligible for consideration. D. Schedule of Activities: Advertisement Period 8/31/2013 through 9/27/2013 RFP# Due Date 9/27/2013 at 5:00 P.M. Auditor Presentations to Selection 9/30/2013 Committee Evaluation of Proposals 9/30/2013 Official Award of Contract 10/01/2013 E. Inquiries. Prospective Auditors may make inquiries concerning the RFP by contacting Mr. Fi Yazzie, Interim Purchasing Manager at (928) or via reference RFP#13-016, Auditing Services. F. Proposal Standards. One master copy (so marked) and five (5) copies of the proposal shall be submitted in a sealed envelope clearly marked Do Not Open RFP#13-016, Auditing Services by September 27, 2013, 5:00 P.M. and addressed to the Fort Defiance Indian Hospital Board, Inc., Attention: Mr. Fi Yazzie, Interim Purchasing Manager, P. O. Box 649, Fort Defiance, AZ or deliver to Fort Defiance Indian Hospital Board, Inc., 2 nd Floor Purchasing Department Corner of Route 12 and Route 7, Ft. Defiance, AZ Auditors who are mailing their proposals should allow sufficient time for mail delivery to ensure receipt by the time specified. No proposals will be accepted after the due date. No facsimiles or proposals will be accepted. G. Addendum of Supplement to this RFP. In the event that it becomes necessary to revise any part of this RFP, a written addendum shall be issued from the Purchasing Department, noting the revision. 2

3 H. Late Receipt of Proposals. Late proposals will not be accepted. It is the responsibility of the Prospective Auditors to ensure the proposal arrives at the Purchasing Department prior to the due date and time specified. I. Rejection of Proposals. The FDIHB reserves the right to reject any or all proposals and to waive all informalities in the proposals received whenever such rejection or waiver is in the best interests of the FDIHB. J. Proprietary Information. Any restrictions on the use of the data contained within any proposal must be clearly stated in the proposal itself. Each and every page of the proprietary material must be labeled or identified with Proprietary. K. Response Material Ownership. All material submitted regarding this RFP shall become the property of the FDIHB and will not be returned to the Prospective Auditors. Responses received will be retained in a file. The FDIHB has the right to use any or all system ideas presented in reply to this RFP, subject to limitations outlined in paragraph J above. Disqualification or non-selection of a Prospective Auditor or proposal does not eliminate this right. L. Incurring Costs. The FDIHB is not liable for any costs incurred by the Prospective Auditors prior to issuance of an agreement, contract and/or purchase order. M. Acceptance of Proposal Content. The contents of the proposal of the successful Auditor will become contractual obligations if acquisition action ensues. Failure of the successful Auditor to accept these obligations may result in cancellation of the award and such Auditor may be removed from future solicitation. The FDIHB reserves the right to pursue appropriate legal action in the set of circumstances in the Navajo Nation Courts. N. Acceptance Time. The FDIHB intends to make a selection within thirty (30) calendar days after the closing date of receipt of proposal. No inquiries will be accepted during the evaluation period. The evaluation period will begin on the specified time and may last up to ten (10) working days thereafter. O. Award of Proposal. Upon selection, a purchase order and/or contract document will be prepared and the proposal submitted by the Auditor will become the contract until such completion. P. Evaluation Procedures and Criteria. 1. All proposals will not be publicly opened at or on the specified due date. 3

4 2. A review team will evaluate the proposals received in accordance with the general criteria used herein. Auditors should be prepared to provide any additional information the team deems necessary to the fair evaluation of proposals. 3. Endorsement. Failure of an Auditor to provide any information requested in this RFP may result in disqualification of the proposal. All proposals must be endorsed with the signature of a responsible official having the authority to bind the offer to the execution of the proposal. 4. Navajo/Indian Preference. This RFP is not restricted to Navajo/Indian Organizations and Navajo-Owned Economic Enterprises; however, Navajo/Indian Preference will apply in the selection and evaluation of the contract award. Persons or businesses seeking qualification under the Navajo Nation Business Opportunity Act shall submit sufficient evidence to establish their qualification as a Navajo-owned enterprise or organization. 5. Evaluation Criteria. Responsive Proposals shall be evaluated based a point system where 100 points are possible to select the proposal that is most advantageous to FDIHB. Q. Standard Contract. FDIHB reserves the right to incorporate standard contract provisions into any contract negotiations as a result of a proposal submitted in response to this RFP; such standard contract provisions include but are not limited to a non-waiver of sovereign immunity by the FDIHB. Navajo Nation laws govern the contract and the Navajo Nation courts shall have sole and exclusive jurisdiction over any disputes that may arise. FDIHB reserves the right to accept and reject any and all proposals and to waive any and all formalities if deemed in the best interest of FDIHB. R. Selection of Auditor. A professional service agreement may be negotiated with an Auditor whose proposal is determined to be most advantageous to FDIHB. Auditor s proposal shall meet or exceed the established criteria. Interviews may be scheduled if determined necessary, however, selection may be without discussion after proposals are received. Proposals therefore should be submitted on the most favorable terms, from both technical standpoints and price. The FDIHB reserves the right to reject any or all proposals and to waive any and all formalities if deemed in the best interests of the FDIHB. S. Pre-Proposal Conference. There is no scheduled pre-proposal conference for this RFP. However, individual pre-proposal conferences may be scheduled upon request. For additional information or conference contact Mr. Fi Yazzie, Interim Purchasing Manager at (928) or via at 4

5 Section II Scope of Work A. Purpose. The purpose of this RFP is to invite audit firms to submit proposals to provide for auditing of the FDIHB financial statements. The successful Auditor will be invited to negotiate a contract for audit services with the FDIHB. The term of the contract is for a period of one (1) year beginning with fiscal year ending September 30, 2013, with four (4) one-year options for renewal. B. Overview of FDIHB. The FDIHB is a tribally chartered, 501(c)(3) nonprofit healthcare organization that operates and manages Tséhootsooí Medical Center (TMC) and Nahaťá Dziil Health Center (NDHC). Effective March 28, 2010, the FDIHB began its operations with a Board now comprised of nine (9) members and exists under the auspices of the Public Law , the Indian Self-Determination and Education Assistance Act. FDIHB is certified by the Centers for Medicare & Medicaid Services (CMS) to offer a wide range of acute and ambulatory care services to patients. The two facilities provide healthcare services to an estimated 47,000 people; a majority of whom are members of the Navajo Nation and reside within the 16 Navajo communities/chapters of the Fort Defiance service area. TMC is located at the Northwest corner of Navajo Route 7 and Navajo Route 12 in Fort Defiance, Arizona. TMC is an inpatient and outpatient facility with a 24-hour Emergency Room. NDHC is located off Interstate 40 and State Highway 191 in Sanders, Arizona. NDHC provides basic outpatient services with a small laboratory, a pharmacy, and four exam rooms. The most recent audit of FDIHB was performed in 2013 for the period October 1, 2011 through September 30, Copies of the auditor s reports are available upon request. C. Scope of Audit. The Auditor shall be engaged to conduct an examination of the financial statements, accounts, records, and procedures of all divisions and funds of FDIHB. The FDIHB uses enterprise fund accounting. Revenues and expenses are recognized on an accrual basis using the economic resources measurement focus. Indicate in your proposal if you are able to meet and/or exceed the following requirements: 1. A single audit conducted in accordance with OMB Circular A-133 is required for all federally assisted programs. 5

6 2. The Auditor shall perform a financial and compliance audit of all funds reported in FDIHB s financial reports. 3. The Auditor shall prepare and examine FDIHB s statements, conducted in accordance with generally accepted auditing standards for the purpose of providing an opinion on those statements and their compliance with generally accepted accounting principles applied on a consistent basis. 4. In correlation with the review of records and financial statements, the Auditor shall review the system of internal controls, operating procedures and compliance with budgetary and legal requirements by FDIHB. 5. FDIHB views its engagement of an Auditor as an ongoing professional relationship. As such, the Auditor is expected to consult as required on auditing, accounting and financial reporting and operating questions which arise during the course of a year. 6. The Auditor agrees to make its working papers available upon request, to meet any FDIHB financial need as well as in accordance with any Federal and state grant provisions. Working papers will be kept for three years from submission of the final audit report. 7. The Auditor will agree to an entrance conference to review the audit program with FDIHB s CFO and/or designated others. 8. The person in charge of the audit shall be available to attend FDIHB s Leadership Council, Finance Subcommittee, and Board meetings. 9. Reports and Timing. The Auditors will: a. Prepare an auditor s report and management letters having a format and content consistent with generally accepted auditing standards; b. Discuss the auditor s report and management letters with the FDIHB s Leadership Council, Finance Subcommittee and Board prior to their distribution; c. Meet any audit or reporting requirement dates as set out by the Events table below. 6

7 The expected key dates relating to the audit are as follows. These dates should be considered indicative only. Event Key Audit Dates FDIHB Fiscal Year End September 30, 2013 Entrance Conference October 31, 2013 Completion of Year End Field Work February 28, 2014 Leadership Council & Finance March 19, 2014 Subcommittee review of financial statements Board Meeting to Review and Approval of March 21, 2014 Financial Statements; Auditor to provide 30 copies of the financial statements D. Additional Services. Indicate in your proposal if you are able to meet and/or exceed the following requirements: 1. The Auditor is expected to provide FDIHB with information on current developments and professional pronouncements which could affect its financial operations and management. 2. FDIHB may also require consultation on a variety of auditing, financial reporting, accounting, and payroll-related issues which arise during the year. 3. The Auditor shall assist in and with the implementation of any new GASB Statement. Consequently, the Auditor is expected to have a complete and thorough working and implementation knowledge of existing and new GASB statements. 4. The Auditor shall prepare the electronic Federal Clearinghouse form SF-SAC for certification as applicable by FDIHB and its officers. E. Qualifications of the Auditor. The Auditor must include a summary of its qualifications to perform an audit of a non-profit hospital. The proposal shall include at a minimum: 1. Independence: The Auditor should provide an affirmative statement that it is independent of FDIHB as defined by generally accepted auditing standards. 2. License to Practice in Arizona: The Auditor should provide an affirmative statement indicating the firm and all assigned key professional staff are properly licensed to practice in Arizona. 3. Auditor Qualifications and Experience: The proposal should provide the size of the audit firm, the size of the firm s non-profit staff, the location of the office from which the work on this engagement is to be performed, the number and nature of the professional staff to be employed in this engagement on a full-time basis and the 7

8 number and nature of the staff to be so employed on a part-time basis. Include in this section the following: a. A description of your Audit firm and its relevant prior experience. b. A list of recent non-profit hospital audits performed and two references which are non-profit hospital officials. c. Names of the partners and managers to be assigned to the engagement and a summary of their qualifications. d. A description of your Audit firm s experience working with grantor agencies if substantial funding is received from particular agencies. e. A description of your Audit firm s experience working with Tribal Self- Determination or Self-Governance hospitals. f. A description of your Audit firm s experience working with a large volume patient accounts receivables. 4. The Auditor is required to provide a copy of the report on its most recent external quality control review with a statement whether that peer review included a review of specific non-profit engagements. 5. Partner, Supervisory and Staff Qualifications & Experience: The Auditor should identify the principle supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who will be assigned to the engagement and indicate whether each is licensed to practice as a Certified Public Accountant in Arizona. The Auditor should also provide information on the nonprofit and governmental auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. The Auditor should provide as much information as possible related to the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. The Auditor should indicate how the quality of the staff over the term of the agreement will be guaranteed. 6. Similar Engagements with Other Non-Profits: For the Auditor s office that will be assigned responsibility for the audit, list the most significant engagements (maximum of 5) performed in the last five years that are similar to the engagement described in this request for proposals. These engagements should be ranked on the basis of total staff hours. 7. Audit Approach. The proposal should set forth a work plan, including an explanation of the audit methodology to be followed to perform the services required in this RFP. In developing the work plan, reference should be made to such sources of 8

9 information as the FDIHB s budget and related materials, organizational charts, manuals and programs, and financial and other management information systems. Auditors are required to provide the following information on their approach: a. Proposed segmentation of the engagement b. Level of staff and number of hours to assigned to each proposed segment of the engagement. Please do not include costs here. c. Sample sizes and the extent to which statistical sampling is to be used in the engagement. d. Extent and type of analytical procedures to be used in the engagement. e. Approach to be taken to gain an understanding of the FDIHB s internal control structure. f. Approach to be taken in the determination of laws and regulations that will be subject to audit test work. g. Approach to be taken in drawing audit sample for purposes of tests of compliance. 8. Identification of Anticipated Potential Audit Problems. The proposal should identify and describe any anticipated potential audit problems, the Auditor s approach to resolving these problems and any special assistance that will be requested from FDIHB. 9

10 Section III RFP Proposal Requirements A. Proposal Submission Requirements. All Auditor proposals are required to be received by September 27, 2013, 5:00 P.M. and must contain the following: 1. Proposal Copies. The Auditor must submit a master copy (so marked) and five (5) copies of the proposal for receipt by the due date at the address provided on page 1 of this RFP. 2. Title Page. Title page showing the request for proposals subject; the Auditor s name; the name, address, address, telephone number of a contact person, the date of the proposal and designation whether the Auditor is Priority One (Certified 100% Navajo-owned) or Priority Two (Certified 51%-99% Navajo or 51%- 100% other Indian owned). 3. Table of Contents. 4. Transmittal Letter. A signed letter of transmittal briefly stating the Auditor s understanding of the work within the time period, the Auditor s reason(s) they believe themselves to be the best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer. 5. Eligibility. The Auditor certifies through submittal of this RFP that they are not barred from bidding as a result of violation of the Navajo Business Procurement Act Title 12, Chapter 15; and Navajo Business Opportunity Act Title 5, Chapter 2; and Excluded Parties List System. 6. Detailed Proposal. A detailed proposal as outlined in Section II, Part C, D & E of this RFP. 7. Cost. A completed cost table template provided as part of this RFP. 8. A completed Non-Collusive Affidavit. Template provided as part of this RFP. 9. A verbal presentation to the Review Team on September 30, Auditors are advised that FDIHB desires all proposals prepared in response to this RFP be submitted on recycled paper, and all copies be printed on both sides of paper. While appearance of proposals is important and professionalism in proposal presentation should not be neglected, the use of non-recyclable or non-recycled glossy materials is discouraged. In addition, it is requested that proposals be in flat bound form to facilitate filing. Please do not submit proposals in loose-leaf binders (3-ring), these will be returned to the Auditor unrated. 10

11 B. All proposals will not be publicly opened on the due date specified. FDIHB will screen proposals received in accordance with the criteria contained in this RFP for acceptance. Proposals which fail screening will be rejected and returned to the Auditor unrated. 1. Proposals received after specified due date and time will be considered nonresponsive, rejected, and unrated. 2. All Proposals that meet or exceed the minimum specifications and criteria will be reviewed by an Evaluation Team. 3. Auditors shall not contact FDIHB during the proposal review process. C. Proposal Evaluation. 1. The Proposals will be evaluated and rated in accordance with the criteria outlined in Section III., Proposal Content and Evaluation Criteria, and Section VII, Additional Requirements and FDIHB s Purchasing Policies and Procedures. 2. The Auditor will provide additional information to the FDIHB if necessary to complete the evaluation. Failure to comply may result in disqualification of the proposal. 3. Selection of the Auditor. FDIHB will rank the proposals based on total points awarded. The Auditor deemed most qualified and responsive will be considered for contract award. This RFP is not based on cost/price. D. Award of the Contract. 1. The FDIHB shall inform in writing the Auditor selected for the contract award, and provide related information and instructions on completing the offer. Failure to address the questions adequately by the Auditor shall result in cancellation of the offer. FDIHB will then offer the contract to the next responsible responsive Auditor. 2. FDIHB will issue Notice to Proceed to the Auditor upon execution of the contract. 3. Conferences. The Auditor shall participate in the following: i. FDIHB personnel mentioned at Section I Part E may be contacted for inquiries regarding this RFP. ii. Progress meetings between the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Purchasing Manager, the FDIHB project team leader, and the Auditor may be held to ensure all problem areas have been thoroughly 11

12 discussed and clarified with corrective action plans developed to clearly delineate the responsible parties. 4. If awarded the contract, the selected Auditor will be required to provide the following: i. A Completed W-9 ii. Certificate of general liability insurance E. Primary Contacts. Sales, Accounts Receivable, Support Services, and Customer Service. 1. Auditor. a. Primary Contact Name: b. Address: c. Telephone: d. Fax: e. 12

13 Section IV Evaluation Criteria Company Name: A. Qualifications. 1. A list of senior staff, managers, and partners assigned to this audit 2. Experience auditing Self Determined or Self Governed Tribes or Hospitals 3. Experience with OMB Circulars 4. Experience auditing a large volume of patient accounts receivables 5. Experience with non-profit entities 6. Experience with government entities 7. Audit strategy clearly outlined 8. Potential anticipated concerns clearly outlined 10 points each (0 to 80 points) B. Peer Review. Provide copy of a peer review. (0 to 10 points) C. Cost. Describe fee structure, including discounts offered to non-profits. (0 to 10 points) Total Points (100 points possible) 13

14 Section V Proposal for Financial Audit Services for the Fort Defiance Indian Hospital Board, Inc. The undersigned proposes to provide FDIHB with the independent audits of its financial accounts and records as outlined in the accompanying specifications: Fiscal Year Dates Cost October 1, 2012 through September 30, 2013 $ October 1, 2013 through September 30, 2014 October 1, 2014 through September 30, 2015 October 1, 2015 through September 30, 2016 October 1, 2016 through September 30, 2017 Total 5 Year Cost $ Date: Auditor: Signed by: Title: 14

15 NON-COLLUSIVE AFFIDAVIT *Must be Notarized State of ) ss County of ) ss, being first duly sworn, deposes and says: That he/she is (A partner or officer of the Supplier of, etc.) the party making the foregoing proposal or bid, that such proposal or bid is genuine and not collusive or a sham; that said bidder has not colluded, conspired, connived, or agreed, directly or indirectly, with any bidder or person, to put in a sham bid or to refrain from bidding, and has not in any manner, directly or indirectly, sought by agreement or collusion, or communication or conference, with any person, to fix the bid price of affiant or of any other bidder, or to fix any overhead, profit or cost element of said bid price, or of that any other bidder, or to secure any advantage against the FDIHB or any person interested in the proposed contract; and that all statements in said proposal or bid are true. Signature of: Bidder, if the bidder is an individual; Partner, if the bidder is a partnership; Officer, if the bidder is a corporation. Subscribed and sworn to before me this day of, 20. My commission Expires, 15

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