Request for Proposal For Audit Services Years Ending June 30, 2014, 2015, and 2016

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1 Request for Proposal For Audit Services Years Ending June 30, 2014, 2015, and 2016 February 18, 2014 Proposals due March 7, 2014 at 2:00 p.m. 1

2 GENERAL CONDITIONS Ionia Public Schools is soliciting proposals from qualified Certified Public Accounting firms to audit its financial statements for the fiscal years ending June 30, 2014, 2015, and Assuming the audit relationship is mutually beneficial, the District may extend the proposed 3- year contract for an additional three years based on satisfactory performance of audit services, but the term of the engagement shall end: 1. When the audit contract has been violated. 2. When the quality of the audit is unacceptable. Completed proposals (3 copies) must be sent to the attention of Donald G. Wilcox, Director of Finance, Ionia Public Schools, 250 E. Tuttle Road, Ionia, Michigan 48846, and be received by 2:00 p.m. on Friday, March 7, 2014 at which time they will be publicly opened and read. Proposals must be submitted in a sealed envelope that is clearly marked AUDIT PROPOSAL. Proposals submitted by facsimile and/or will not be accepted. Although cost will be an important factor in awarding the contract, the School District is not obligated by any statute or regulation to award the purchase of audit services solely on the basis of cost. Accordingly, the School District reserves the right to evaluate all proposals objectively and subjectively and to accept or reject any or all proposals or portion thereof. Additionally, the District reserves the right to negotiate changes in services with the firm determined to have submitted the proposal that is in the best interest of the District. It is to be understood that this RFP constitutes specifications only for the purpose of receiving proposals for services and does not constitute an agreement for those services. It is further expected that each bidder will read these specifications with care. Failure to provide requested information or meet certain specified conditions may invalidate the proposal(s). Proposals shall remain valid for a period of sixty (60) days after submission. Modifications to proposals will not be accepted by the District, except as may be mutually agreed upon following the acceptance of the proposal. All questions should be directed to Don Wilcox, Director of Finance, at , or via at TIME TABLE 2/18/14 Request for Proposals out to CPA firms 3/7/14 Proposals due back to Business Office 2:00 p.m. 3/10/14 to 3/14/14 Presentations/Interviews with CPA firms 3/17/14 Board action 3/18/14 Notification to selected CPA firm 2

3 FIRM/AUDITOR QUALIFICATIONS The firm must maintain a sufficient number of professional staff in order to provide adequate technical expertise and depth. The firm and the partner assigned to the District must have considerable experience in auditing K-12 public school districts within the State of Michigan. The auditor is expected to be familiar with the types of policies and procedures school districts follow. All staff must be properly trained and supervised. The firm must have an excellent reputation for service in school district auditing. The firm should have a minimum of $1,000,000 Errors and Omissions Insurance. (The successful firm will be required to provide the district with a certificate of insurance to verify this coverage.) AUDIT REQUIREMENTS SCOPE: Completion of an annual, audited comprehensive annual financial report that is in compliance with Generally Accepted Governmental Auditing Standards, issued by the Comptroller General of the United States, and as promulgated by GASB, AICPA, and the Michigan Departments of Education and Treasury. The financial report must be prepared in accordance with GASB Statement No. 34 and the Michigan School Accounting Manual. Completion of a Single Audit Report in compliance with the United States General Accounting Office standards commonly referred to as the Yellow Book and the Michigan Department of Education Michigan School Auditing Manual. Financial and compliance audit in accordance with the requirements of the applicable sections of the Revised School Code and the Revised Bulletin for School District Audits of Bonded Construction Funds and of Sinking Funds in Michigan. Completion of the Required Audit Disclosures report/management Letter as required by the Michigan Department of Education (MDE). Completion and filing of the Federal Data Collection Form. Electronic filing of the comprehensive annual financial report, single audit report, and required audit disclosures report/management letter with MDE. Meetings in October with the Superintendent and Director of Finance prior to release of any report and attend Board of Education meeting to review the above reports. Audit procedures should be in compliance with auditing standards as promulgated by MDE, Michigan Department of Treasury, GASB, AICPA, and the U.S. General Accounting Office. AUDIT TIMELINE: Preliminary Audit fieldwork (Internal Control Review) to commence at such time as mutually agreed upon. Final Audit fieldwork to commence in July and/or August 2014, 2015 and 2016 at such time as mutually agreed upon. Audit documents to be delivered to the District by October 15th of each year in order to meet audit deadlines set by the Michigan Department of Education. 3

4 OTHER The auditor shall furnish the school district with 15 copies of the Comprehensive Annual Financial Report, 12 copies of the single audit report and 12 copies of the management letter. DISTRICT INFORMATION 1. Enrollment. Ionia Public Schools is a K-12 school district located in Ionia, Michigan. The District provides general and special education services to all school district students within its service area as well as those enrolling schools of choice. Enrollment in the District can be described as relatively stable. The District owns and operates the following schools, and operates a shared-time program with SS. Peter and Paul Church: School Programs Enrollment Boyce Elementary K Emerson Elementary K Jefferson Elementary K Twin Rivers Elementary K Rather Elementary K Kinderstart K 36 Ionia Middle School Ionia High School Welch High School SS. Peter and Paul PNP K-8 6 (fte through shared program) Total 3,071 4

5 2. Funding The foundation grant for the District is $7,026 per pupil for the school year. The District receives approximately $2.0 million in federal grant funds each year. The District s larger federal programs are Title I, Title II and National School Lunch Program. 3. Accounting software Ionia Public Schools utilizes New World Systems software provided through the Ionia County ISD for general ledger, accounts payable and cash disbursements, cash receipts, purchasing and inventory, payroll and human resources. Student trust and agency (internal student activity) accounts are processed through EPES. Student services/pupil accounting purposes are processed through Pinnacle. 4. Staffing The District employs approximately 330 people: 162 teachers, 18 administrators and 150 hourly staff including secretaries, custodians, maintenance personnel, aides, bus drivers and food service workers. The following list represents key personnel involved in the financial operations of the District and their length of experience: Name Position Length of Service with the District Dr. Patricia L. Superintendent Total Experience in Public Education 23 years 33 years Batista Don Wilcox Director of Finance 27 years 27 years Robin Beyer Payroll 10 years 16 years Shoni Mayle Payroll 9 years 9 years Carol Francisco Accounts Payable 16 years 16 years Sybil Laird Food Service 36 years 36 years 5

6 5. Financial Information Fund 7/1/2013 Fund Balance Adopted Budget Revenues Adopted Budget Expenditures General Fund $3,302,103 $26,235,583 $26,388,143 School Service Funds: Food Service $420,885 $1,534,560 $1,537,630 Debt Retirement Funds (4) $192, Taxes The District levies taxes in jurisdictions. It levies only on the summer roll in the City of Ionia, and only on the winter roll in the remaining jurisdictions, which are the Townships of Berlin, Easton, Ionia, Lyons, North Plains, Orange, Orleans, Portland and Ronald. The 2013 tax levy included for operational purposes (non-homestead property only) and 7.72 mills for debt retirement fund purposes. 7. Fixed Assets The District utilizes Mid-America Appraisal to update its fixed assets records based on information provided by the District to update both additions and deletions in the current year. 8. Other In preparation for each audit, the District currently records all journal entries and provides workpapers for cash, investments, inventory, accounts receivable, accounts payable, accrued salaries, other accrued liabilities and deferred revenue. All grants, state aid, and taxes are reconciled and receivables/deferred revenue recorded at year-end. An electronic trial balance and detailed general ledger transaction file are provided to the firm. Few audit entries are usually required by the current auditors. Financial statement reclassification entries may be made. Once the audit is completed, the CPA firm and the District prepare the comprehensive annual financial report. The District will file the Financial Information Database with CEPI. A copy of the District s Comprehensive Annual Financial Report for the year ending June 30, 2013 and the adopted budgets for the year ending June 30, 2014 are available on our website, within the transparency section at 6

7 IONIA PUBLIC SCHOOLS AUDIT PROPOSAL FORM Proposals are due by 2:00 p.m. on March 7, Please complete and return: 1. This proposal form 2. The attached familial relationship form 3. Your most recent peer review report 4. Sample engagement letter 5. Any other additional information you feel is necessary to help us evaluate your firm. 1. Location of the office that will be performing the audit for Ionia Public Schools. Audit Firm: Address: Contact Person: Phone Number: 2. Number of Michigan school district audits that your firm conducted in each of the last three years. Please attach a list of school districts. Year ending June 30, 2013 Year ending June 30, 2012 Year ending June 30, Number of other governmental (fund accounting) audits your firm has conducted in each of the last two years. Last year Prior year 4. List your firm s involvement in school district type organizations. 5. List specific school district/government audit training supplied to your staff in the last two years. 7

8 6. Number of total audit staff. Do not include tax, consulting services or clerical personnel. Number of audit staff Number of audit staff with CPA certification 7. Number of staff above whom were directly involved in a significant portion of the audit of a school district in the last two years. 8. Staff anticipated to be assigned to the Ionia Public Schools audit. # of Years # of Years Audit School Audit Qualifications Name Title/Position Experience Experience (Degree,CPA,CFE) 9. Base audit cost: For the year ending June 30, 2014 For the year ending June 30, 2015 For the year ending June 30, 2016 Other costs, i.e. extra charges for excess single audit programs to be tested, mileage, copy charges, and other out-of-pocket charges: 10. A proposed payment schedule is: Date % 11. What type of consulting services do you provide to School Districts on an ongoing basis which are included in the base audit cost? 8

9 12. Hourly rates for consulting services beyond the scope of the consulting services listed in number 11 above. 13. Please provide any additional information or data that you feel is relevant and may be helpful in the selection process. 9

10 FAMILIAL RELATIONSHIP DISCLOSURE STATEMENT As required by Public Act 232 of 2005, all bids shall be accompanied by a sworn and notarized statement disclosing any familial relationship that exists between the owner or any employee of the bidder and any member of the Ionia Public Schools Board of Education or the Superintendent of Schools. The undersigned, the owner or authorized officer of (the Bidder ), hereby represent and warrant, except as provided below, that no familial relationships exist between the owner(s) or any employee of the company and any member of the Ionia Public Schools Board of Education or the Superintendent of Schools. If such a relationship exists, please explain: Attach additional pages if necessary By: (Bidder Signature) Title: (type or print) Date: Subscribed and Sworn to Before Me: This day of, 20 A.D., in and for the County of, State My Commission expires. Signature of Notary 10

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