REQUEST FOR PROPOSAL AUDITING SERVICES FOR GENERAL GEORGE PATTON SCHOOL DISTRICT 133 FOR THE YEARS ENDING JUNE 30, 2018, 2019 AND 2020 Deadline for Submission: APRIL 19, 2018 10:00 A.M. Page 1 of 11
General George Patton School District 133 150 West 137th Riverdale, IL 60827 (708) 768-5664 Request for Proposal For Auditing Services For the Years Ending June 30, 2018, 2019 and 2020 Table of Contents General Information 3 Request for Proposal Schedule 4 Scope of Audits 5 Services Required 6 Qualifications 7 s 8 Accounting Systems 9 Evaluation of Proposals 9 Instructions for Submitting Proposals 10 Proposal Format 10-11 Page 2 of 11
GENERAL GEORGE PATTON SCHOOL DISTRICT 133 General George Patton School District 133 invite independent Certified Public Accounting firms licensed in the State of Illinois to submit proposals for auditing services for the three years ending June 30, 2018, 2019, and 2020 in accordance with the requirements and specifications in this document. GENERAL INFORMATION The Village of Riverdale is located along the southern border of the City of Chicago and is situated between Harvey, Dolton, and Blue Island, and has close proximity to both I-57 and I- 394. District 133 educates Pre-K through 8 th grade with a student population of less than 300. The District completed various renovation projects in FY15 and FY16 through a TIF which included new windows, a parent trap for the front entrance, A/C for the gym, and new administrative offices. The District has had financial challenges that are characteristic of many districts, but has continually strived to do more with less. Thus far, the District has maintained the Financial Profile Designation of Recognition for the past few fiscal years and has worked to stay fiscally responsible while striving to provide the best education for the student population. Page 3 of 11
REQUEST FOR PROPOSAL SCHEDULE Email Request for Proposals and Post in various publications: March 14-16, 2018 Deadline for Submission: April 19, 2108 10:00 A.M. Interviews with Finalists: April 25-27, 2018 Board of Education Approval: May 14, 2018 All inquiries regarding this proposal should be made in writing to: Lynette Hutcherson Business Manager General George Patton School District 133 150 West 137 th Riverdale, IL 60827 lhutcherson@district133.org Page 4 of 11
SCOPE OF AUDITS Annual Financial Statements to include basic financial statements and supplementary schedules presented in accordance with the financial reporting model described in GASB Statement No. 34, GASB No. 44, and GASB No. 45, along with any other pertinent reporting standards. All audits shall be made by independent auditors in accordance with U.S. Generally Accepted Auditing Standards and Government Auditing Standards. All audits shall be based upon the additional requirements of the Single Audit Act Amendments and OMB Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations (when required). All audits shall include a management letter. All audits shall include the Annual Financial Report for submission to the ISBE and copies for the District s records. The firm will be available from time to time to answer questions as they may arise. The annual audits for the years ending June 30, 2018, 2019, and 2020 shall consist of an examination of the individual combining and combined financial statements conducted in accordance with generally accepted auditing standards. The audits shall include a review of the system of internal accounting control of each school district to insure that there is effective control over revenue, expenditures, assets and liabilities and a proper accounting of resources, liabilities and accounting operations. The examination shall be sufficient in scope so as to render an opinion on the fairness of the representations contained in the individual combining and combined balance sheets and related statements of revenue and expenditures, and changes in fund equity for the year then ended in accordance with generally accepted accounting principles for state and local governments. All audit work must be performed by audit staff of the proposing firm; no audit work is to be performed by subcontractors. Page 5 of 11
SERVICES REQUIRED The auditor shall prepare the following printed and bound reports for the District: Annual Financial Report for the District consistent with prior year. Supplementary schedules consistent with prior year report. Annual Financial Report (ISBE 50-35) for the District to be prepared for submission to the Illinois State Board of Education. Student Activity Report consistent with prior year s report. Annual Federal Financial Compliance Section Report (Single Audit) for the District consistent with prior year s report. Data Collection Form (SF-SAC) consistent with prior year s report. Management letter for the District. All additional reports, as may be required to be submitted, to the Illinois State Board of Education and any other regulatory agencies under the Single Audit Act. A report detailing the reconciliation of modified accrual to cash. In addition, the followings services are also required: Consult with staff as requested for preparation of the MD&A and Transmittal Letter. The audit firm will be available from time to time to answer questions as they arise during the fiscal year. Tentative drafts of all reports shall be submitted to the Business Manager prior to final preparation. The final audit reports shall be completed by October 15 th of each year unless by mutual agreement a later date is determined. The auditor shall be required to prepare and submit a management letter in connection with the audit. The purpose of the letter shall be to make known recommendations of the auditor, which if implemented, would in the auditor s opinion, increase efficiency, improve internal accounting control and assist in effective accounting procedures. Audit work papers shall remain in the custody of the auditor; however, the Districts and succeeding independent auditors shall be given access to audit work papers and shall have the right to copy such work papers pertaining to audits for the fiscal years 2018, 2019, and 2020 for a period of up to 5 years after the audits have been completed. Following the completion of the audits, the firm must be available to meet with the Board of Education of General George Patton District 133. After issuance, a representative of the firm must be available to present any or all of the reports to the Board of Education. Page 6 of 11
QUALIFICATIONS Proposals will be accepted from firms with demonstrated experience and competency in school district auditing. The minimum qualifications for firms submitting proposals are: The audit shall be conducted under the supervision of a licensed Certified Public Accountant experienced and knowledgeable in Illinois school district auditing. The senior field auditor must have three to five years of actual experience in supervising a school district audit. Senior field auditor must be on site during audit. The firm must have demonstrated efforts to keep its staff current in the industry and in governmental organizations by active participation in such organizations. The firm must be members of the AICPA, the AICPA s Governmental Audit Quality Center, and the Illinois CPA Society. The firm must meet the continuing professional education requirements of Government Auditing Standards. The firm must provide a copy of its most recent peer review report. The auditor does not have a record of substandard work. The proposal must disclose any enforcement action to which the firm has been subject during the past three years or which is in progress. The firm must provide the names, titles, addresses, and phone numbers of at least 3 school district clients for whom the firm has performed audits within the last 2 years similar in scope and reporting as those required by this proposal. The firm must have existing engagements with at least 3 Illinois public school districts. Page 7 of 11
s The proposal shall contain a maximum fee (not to exceed) for the fiscal year in accordance with the detailed description of services required. Firms have the flexibility to propose whatever method of compensation that would be to the best mutual benefit of the District and the firm. An equitable adjustment in the proposed fee shall be negotiated if the cost or the time required for performance of the audit service is increased or decreased pursuant to a change in scope of the audit requested by a District or required by state or federal regulations. Proposals shall contain provisions to the effect that in the event disclosures in the audit indicate extraordinary circumstances that warrant more intensive and detailed services, the firm shall provide all pertinent facts relative to the extraordinary circumstances, together with the firm s estimate of additional costs to the District before additional work is performed. Please include a listing of services to be provided that are included in the fee proposal. The District would like to have charges for preparing year journal entries and accruals included in the price quote. Please consider known and anticipated audit pronouncements when preparing quotations. s No additional fees will be paid unless mutually agreed upon. FY 2018 FY 2019 FY 2020 Total FY 2018-20 Additional Work (Hourly Rate) Page 8 of 11
SCHOOL DISTRICTS ACCOUNTING SYSTEM AND FUNDS The Districts accounting systems are computerized and are operated on a fund basis using the cash basis of accounting. Copies of trial balances and assistance from the Business Office staff will be available to the selected firm. Approximately 99% of the cash and investments of the District s are held as part of a common pool by the Calumet/Thornton Township School Treasurer. EVALUATION OF PROPOSALS The proposals will be reviewed and evaluated by the Business Manager and Members of the Finance Committee. The top candidates may be invited to participate in oral interviews. The proposals will be evaluated on the following criteria: Understanding of the audit engagement Accessibility and ability to respond to Districts needs in a timely manner Acceptability of audit approach References of firm Qualifications and technical experience of firm in Illinois school district audits Qualifications of assigned individuals in Illinois school district audits Experience and knowledge in working with the Illinois State Board of Education Experience and knowledge of GASB Statement 34 Audit schedule s Firms submitting proposals will be informed of the Districts selection after approved by the Board of Education in May The District reserves the right to reject any and all proposals submitted, and to ask for more details or further clarification of any proposal, and select the proposal that best meets the needs of the Districts. Page 9 of 11
INSTRUCTIONS FOR SUBMITTING PROPOSALS All proposals must be submitted no later than 10:00 A.M. on April 19, 2018 to: Sealed proposals clearly marked Audit Proposal must be received no later than 10:00 AM on April 19, 2018. Five (5) hard copies of the proposal, as well as one full copy of the proposal delivered on a USB flash drive should be submitted to: Lynette Hutcherson Business Manager General George Patton School District 133 150 West 137 th Street Riverdale, IL 60827 Questions regarding the proposal may be addressed in writing to: Lynette Hutcherson, Business Manager lhutcherson@district133.org Proposal Format In order to simplify the review process proposals should be organized in accordance with the outline below: Title Page Include the firm s name, address, contact person s name, phone and email address, and date of the proposal Table of Contents Identify sections of the proposal by page number Letter of Transmittal Briefly state your understanding of the work to be done and your audit approach. State the names of the person(s) who will be authorized to make representations for the firm, their titles, addresses, and contact information including phone numbers and email addresses. This letter should be signed by an authorized officer of the firm. Profile of the Firm Provide an overview of your firm. Include size, location, and experience of the firm. Provide the names, titles, addresses, and phone numbers of at least three school district clients for whom the firm has performed audits within the last two years similar in scope and reporting as those required by the Districts. Page 10 of 11
Summary of Proposer s Qualifications Identify the partner, manager and senior who will work on the audit. A brief resume of each person to be assigned to the audit should be included. Services to be Provided Express agreement to meet the requirements of the engagement as stated in the Scope of Audit and Services Required sections of these guidelines. Provide descriptions of the audit approach, and illustrations of the procedures to be employed. Provide a tentative schedule for performing key phases of the audit and estimated number of hours for each level of staff necessary to complete each phase of audit Timing of the Audit Provide the approximate timing of the audit so as to meet the required deadlines. Additional Information Since data not specifically requested must not be included in the foregoing sections, give any additional information considered essential to the proposal in this section. If there is no additional information to present, please note There is no additional information we wish to present. s Include the maximum fee (not to exceed) that will be charged along with an hourly rate for additional work. No additional fees will be paid unless mutually agreed upon. FY 2018 FY 2019 FY 2020 Total FY 2018-2020 Additional Work (Hourly Rate) Page 11 of 11