January 2013 AUDITOR REQUEST FOR PROPOSAL (RFP) I. INTRODUCTION A. General Information The Community Foundation of Grundy County, hereafter known as CFGC, is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending 12-31-12, and four years thereafter, to be exercised annually. These audits are to be performed in accordance with generally accepted auditing standards, as well as the laws and standards prescribed by the State of Illinois. B. Term of Engagement A 5-year contract is contemplated to coincide with our policy of re-bidding every five years. Each year shall be subject to the annual review and recommendation of CFGC s Audit Committee. II. DESCRIPTION OF THE COMMUNITY FOUNDATION OF GRUNDY COUNTY CFGC bridges people who care with causes that matter. We strive to improve the quality of life in Grundy County through leadership and philanthropy. CFGC is a 501(c)3 organization established in 1999, has a volunteer board of 11 (soon to be 13), and a staff of one full-time and two part-time. CFGC s currents assets are $5.4 million, 80% of which are endowed, 18% are non-endowed, and we have an operating budget of 2%. These assets are managed by two investment firms: Savant Capital Management (Rockford) and Balasa, Dinverno, & Foltz (Itasca). CFGC s Investment Committee meets with both firms quarterly. CFGC s Finance Committee meets monthly. CFGC s ad-hoc Audit Committee meets at least twice once in preparation for the audit and once to review the audit before being presented to the full CFGC board for approval. CFGC s annual reports for past years are available upon request, via our website, and via our Facebook page. CFGC is a member of the national Council on Foundations and was confirmed in compliance with National Standards in 2008. Many of the National Standards address best practices for accounting, fund management, and donor services. Basis of Accounting CFGC prepares its financial statements on the cash basis in accordance with U.S. Page 1 of 7
generally accepted accounting principles. Fiscal Year CFGC has a fiscal year of January 1 through December 31. Financial and Data Processing Systems The accounting transactions are recorded on the cash basis. CFGC utilizes two software packages: Quickbooks and Fund Tracker Pro. Quickbooks needs little explanation as it is widely used throughout the business community. Fund Tracker Pro is a boutique software created by a fellow community foundation to track donor funds and spread investment returns proportionately across multiple funds. Beginning in 2013, CFGC will begin calculating fund investments on a monthly basis rather than on a quarterly basis. Internal Audit Function CFGC currently does not have an internal audit function. III. NATURE OF SERVICES REQUIRED Auditing Standards to be Followed To meet the requirements of this request for proposals, the audit shall be performed in accordance with auditing standards generally accepted in the United States as set forth by the American Institute of Certified Public Accountants. Deliverables/Reports to be issued Following the completion of the audit, the firm shall issue the following reports: o Report on the fair presentation of the consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles. o A management letter shall be presented to the Audit Committee with respect to recommendations to internal controls and financial management practices. o Reportable conditions/material weakness letter, if applicable. o Federal and state 990s The auditors will make a presentation to the CFGC Audit Committee. Typically five (5) hard copies of the final audit are required and e-versions are requested (especially of the 990s) in pdf format so that CFGC can share with the public in order to meet National Standards for transparency. Page 2 of 7
Working Paper Retention and Access to Working Papers All working papers and Reports must be retained, at the auditing firm s expense, for a minimum of seven (7) years, unless the firm is notified in writing by CFGC of the need to extend the retention period. The audit firm will be required to make working papers available upon request by CFGC. Reports, documents, and working papers will only be released with specific written permission and direction from CFGC. In addition, the firm shall respond to reasonable inquiries of successor firms and allow successor audit firms to review working papers relating to matters of continuing accounting significance. IV. TIME REQUIREMENTS The following is the calendar of events related to this RFP: EVENT DATES Issue Request for Proposals (RFP) January 11, 2013 Deadline for sending January 18, 2013 'Confirmation of Interest' e-mail to julie@cfgrundycounty.com Deadline for Written Questions. January 25, 2013 E-mail written questions to julie@cfgrundycounty.com Deadline for submission of January 31, 2013 proposals to CFGC by 4:00 p.m. If hard copy, provide one sealed original and 4 copies If e-mailed, attached proposal and any additional documents as pdf files to julie@cfgrundycounty.com Hard copies may be mailed or delivered to 102 Liberty Street Morris, IL 60450 Evaluation of Proposals Oral Presentations (Specific Appointments to be Arranged) Week of February 4th Final selection made at board meeting February 21, 2013 Firm notified February 21, 2013 Page 3 of 7
Date Preliminary Audit Work May Commence CFGC will have records ready and all management personnel available to meet with the firm s personnel for preliminary work as of March 1, 2013. Audit Schedule A schedule for the audit must be submitted with the firm s proposal and must contain the following milestones: 1 Interim work plan 2. Detailed audit plan 3. Fieldwork 4. Draft Reports Report Due Dates A draft audit Report shall be delivered to CFGC by May 1 st with Audit Committee review within one week, and final report to the Board of Trustees on May 16, 2013. V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION Financial Staff and Clerical Assistance CFGC Finance staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation and explanations. Statements and Schedules to be Prepared by the Staff of CFGC The Finance staff will prepare statements and schedules for the firm whenever possible and appropriate. Work Area, Telephones, Photocopying and FAX Machines CFGC will provide the firm with reasonable workspace, desks and chairs, if the firm desires to work in the CFGC office. The firm will also be provided with reasonable access to telephone lines, photocopying machines, and FAX machines. Report Preparation Report preparation, editing and printing shall be the responsibility of the selected firm. VI. PROPOSAL PREPARATION AND SUBMISSION PROCEDURES Submission of Proposals There is no expressed or implied obligation for CFGC to reimburse firms for any expense incurred in preparing proposals in response to this RFP. Submission of a proposal indicates acceptance by the firm of the conditions contained in this RFP unless Page 4 of 7
clearly and specifically noted in the submitted proposal and is confirmed in the written contract between CFGC and the selected firm. To be considered, please submit a proposal according to the timeline listed in Section IV. CFGC reserves the right to reject any or all proposals submitted after the prescribed time. An Audit RFP Evaluation Review Committee has been selected to evaluate proposals and make a recommendation to the CFGC Board. During the evaluation process, the Audit RFP Evaluation Review Committee and CFGC reserve the right, where it may serve CFGC s best interest, to request additional information or clarifications from proposers, or to allow correction of errors or omissions. At the discretion of CFGC or the Audit RFP Evaluation Review Committee, firms submitting proposals may be requested to make an oral presentation at the CFGC s offices as part of the evaluation process. Not all firms may be asked to make oral presentations. CFGC reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal, unless clearly specifically noted in the proposal submitted and confirmed in the contract between CFGC and the selected firm. VII. CONTENT OF PROPOSALS The purpose of the proposal is to demonstrate competence, experience, and capability of the firm seeking to undertake this request for proposal. As such, the substance of the proposal will carry more weight than their form or manner of presentation. The proposal should demonstrate the capabilities of the firm and should specifically identify the audit approach that will be used to meet the RFP requirements. Not-for-profit, community foundation, and endowment experience is highly desired. Detailed Proposal The proposal should address all points outlined in the RFP. The proposal should be prepared simply and economically, providing a straightforward, concise description of the firm s capabilities to satisfy the requirements of the RFP. While additional data may be presented, the following subjects, item numbers 1 through 9, must be included. They represent the criteria against which the proposal will be evaluated. 1. Independence The firm should provide an affirmative statement that it is independent of CFGC as defined by the U.S. General Accounting Office s Governmental Auditing Standards (1994). The firm should also list and describe the firm s professional relationships involving CFGC for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. Page 5 of 7
2. License to Practice in Illinois An affirmative statement should be included indicating the audit firm and all assigned key professional staff are properly licensed to practice in Illinois. 3. Firm Demographics The proposal should state the size of the firm, size of the firm s nonprofit/governmental audit staff, location of the office from which work on this engagement is to be performed, the number and nature of professional staff to be employed in this engagement on a full-time basis and the number and nature of staff to be employed on a part-time basis. The audit firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations. The firm shall provide a copy of their most recent peer review report. 4. Partner Supervision, Staff Qualifications, and Staff Expertise The audit firm should identify the principal engagement partner and management staff who will be assigned to the engagement. The firm should also provide the résumé and qualifications for the staff assigned to the audit, along with three (3) references. It is important to highlight partner and staff experience with not-forprofits and endowments. The firm should indicate how the quality of staff over the term of the agreement would be assured and the level of commitment to staff continuity for CFGC. 5. Engagement Expertise and History List at least three engagements performed by the firm s office in the last five years that are similar to the engagement described in this RFP. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. Identify expertise pertaining to nonprofit tax issues and related FASB pronouncements (in particular 116, 117 and 136). 6. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed. Provide an audit schedule of the work plan. The plan should also include the communication process used by the firm to discuss issues with management and audit committee of the board. Page 6 of 7
7. Total All-inclusive Maximum Price The proposal should contain all pricing information relative to performing the engagement as described in this RFP for Year 1. The total all-inclusive maximum price is to contain all direct and indirect costs including all out-of-pocket expenses. Community Foundation of Grundy County 102 Liberty Street Morris, IL 60450 815-941-0852 phone 815-941-9110 fax julie@cfgrundycounty.com http://cfgrundycounty.com Julianne Buck, Executive Director Page 7 of 7