THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC. REQUEST FOR PROPOSAL PROFESSIONAL AUDITING and TAX SERVICES The Florida Institute of Certified Public Accountants, Inc. (FICPA or the Institute) requests proposals for independent audit and tax services for the fiscal years ending June 30, 2012, 2013, and 2014. General The Florida Institute of Certified Public Accountants, Inc. (FICPA) and its related companies request proposals from qualified firms of certified public accountants to audit the financial position as of June 30, 2012 and the related statements of activities, changes in net assets and cash flows for the years ending June 30, 2012, 2013 and 2014. The statements are the responsibility of FICPA s management; however, it is expected that the auditor will draft the financial statements, notes and requested supplemental information for management approval. The auditor is to express an opinion on these financial statements based on their audits. These audits are to be performed in accordance with auditing standards generally accepted in the United States of America and the provisions contained in this RFP. The FICPA s Board of Governors must appoint an auditor each year. It is anticipated that the term of the audit engagement will extend 3 years although FICPA reserves the right to exercise its option to renew annually. Overview FICPA and its related companies are described below: Florida Institute of Certified Public Accountants, Inc. is a state wide nonprofit (501) (c) (6) association with more than 18,000 members. FICPA provides education activities, continuing education, member assistance programs and government representation. Annual revenues are approximately $9.3 million per year, and the FICPA employs 56 employees at its sole office in Tallahassee, Florida. The FICPA has 27 chapters throughout the state. The Institute prepares a consolidated audited financial report and tax return. The Institute has a June 30 fiscal year-end, with a requirement to file an audited financial statement with the board of governors by September 15 of each year. CPA Service Corporation, Inc. is a wholly owned for profit subsidiary of the FICPA. At present, there are no activities running through the service corporation. Revised 1-17-2012 1
Florida Institute of Certified Public Accountants Educational Foundation, Inc. is a tax exempt (501) (c) (3) entity organized to raise funds for the purpose of subsidizing educational programs in the field of accounting. Florida CPA Political Action Committee, Inc. is a not-for-profit political organization which provides funds to state candidates, public education or constitutional issues effecting public accounting and general business. There are five (5) separate PACs and they are audited every 4 th year on the election cycle. When they are not audited, a review is performed. The next audit is schedule for FYE June 30, 2015. Schedule The following is a list of key dates relative to the Request for Proposal for fiscal year 2011-12. Future years will have a similar schedule. Jan 17, 2012 February 20, 2012 February 21 March 9, 2012 March 12 16, 2012 May 22-23, 2012 June 29, 2012 July 3, 2012 July 16-20, 2012 August 15-22, 2012 September 12, 2012 September 14, 2012 Request for Proposal issued Proposals Due Evaluate RFPs Interviews/Final Selection Auditor Selection Approval by Committee on Finance and Office Advisory and Executive Committee Auditor Selection Approval by Board of Governor s Notification of Auditor Selection Preliminary Audit Planning Meeting Commencement of Audit Work Financial Statement Draft Approval of Report from Audit Committee Proposal Requirement This document serves to define the terms, conditions and specifications desired by FICPA to receive proposal for independent audit and tax services. Any inquiries concerning the request for proposals should be made to Donna Son, Revised 1-17-2012 2
Chief Financial Officer. The proposal should be submitted to Bethany Carr, FICPA Audit Committee, c/o Donna Son, Chief Financial Officer, FICPA 325 W. College Avenue, Tallahassee, FL 32301 and all proposals shall be submitted in paper and portable document format (pdf) and shall include: 1. Title page to include the auditor/company name, address and telephone number of contact person and date of proposal. 2. Transmittal letter briefly stating the auditor s/company s understanding of the work to be done and agreement to perform the work within the time frame described in the request for proposal and a statement of why the auditor/company believes it to be the most qualified to perform the work. 3. An affirmative statement indicating that the auditor/company is properly licensed to practice in Florida. 4. The proposal should state the size of the firm, and should identify the principals (engagement partners, managers, etc.). The proposal should also identify the experience levels of the professional staff to be employed in the engagement. Association and/or non-profit organization audit experience should also be given for individuals participating in the audit. 5. Information about the firm, including: a. The firm s auditing experience with not-for-profit organizations, specifically with membership-type organizations of similar size as the Institute and its affiliated organizations within the last five years (a list may be attached) b. The firm s experience and expertise with respect to tax services for 501(c)(3) and 501(c)(6) organizations. Describe your firm s experience in addressing income tax issues as they relate to unrelated business income. c. A copy of the firm s most recent peer review report. d. A copy of the firm s most recent PCAOB inspection report, if applicable e. Resumes of personnel expected to be working on the audit and tax preparation, including experience relevant to this type of entity and engagement f. Whether any portion of the audit work will be subcontracted g. The firm s ability to comply with the outlined time schedule h. The firm s presence and resources in the Tallahassee area. 6. Provide a list of three to five current audit clients that we may contact as references. References that are similar to the engagement described in this request for proposal are preferred. 7. The firm should provide an affirmative statement that it is independent of the FICPA and its related entities as defined by auditing standards Revised 1-17-2012 3
generally accepted in the United States of America. The firm should also describe the process utilized to ascertain that the firm is currently independent of the FICPA, including its 27 chapters and its related entities, and the procedures the firm employs to confirm independence on an annual basis. 8. A three-year fee estimate including total fees and expenses for each year, assuming that the engagement continues with no significant changes in the audit requirements or accounting principles. Fees and expenses should be stated separately. Expenses should include items such as postage, copies, clerical processing, telephone, travel and lodging. 9. Evidence of malpractice insurance in an amount no less than $1,000,000. Professional Services Required Scope of Work to be Performed FICPA desires the auditor to express an opinion on the fair presentation of its financial statements in conformity with accounting principles generally accepted in the United States of America and to state a separate opinion on the Florida Institute of Certified Public Accountants Education Foundation, Inc. as well as provide an opinion on or review of (as applicable to the respective year end) the financial statements of the Florida CPA Political Action Committees, Inc. The audit firm will provide all tax filings: FICPA staff will provide information as requested. The auditor may be requested to perform other professional services at the discretion of FICPA, such as special reports, opinions, analysis, or other accounting consultations to be prepared either for management, board of governors or accounting staff. Examples of these services include official statements, management studies, cost allocation review, FASB summaries, meeting with the Audit Committee of the FICPA and Board of Governors. Auditing Standards to be Followed To meet the requirements of this request for proposals, the audit should be performed in accordance with auditing standards generally accepted in the United States of America as set forth by the American Institute of Certified Public Accountants. Reports to be Issued Following the completion of the audit of the fiscal year s financial statements, the auditor shall issue a report on the fair presentation of the financial statements in conformity with accounting standards generally accepted in the United States of Revised 1-17-2012 4
America. A report on internal controls and a management letter shall also be issued along with the auditor s report. However, we understand that the auditor will not be engaged to and will not complete an audit of internal controls. Fee Proposal The proposed fee for services rendered should be broken down by the following segments and be for the fiscal years ending June 30, 2012, 2013 and 2014. Audited financial statements of the FICPA Audited financial statements for the Educational Foundation Audited financial statements for the Political Action Committees (5), when applicable Reviewed financial statements for the Political Action Committees (5), when applicable Preparation of all tax returns (federal and state) for the FICPA, Educational Foundation and the five (5) PACs. Issuance of other reports and letters such a report under SAS 112 or 115 is expected as appropriate. Working Paper Retention and Access to Working Papers All working papers and reports must be retained at the auditor s expense for a minimum of seven years unless notified in writing by FICPA to extend the retention period. The auditor will be required to make working papers available upon request to the following parties or their designees: The Florida Institute of Certified Public Accounts, Inc. and its related companies, The Audit Committee of the Florida Institute of Certified Public Accounts, Inc., Management and Accounting Staff In addition, the auditor shall be responsive to reasonable inquiries of successor auditors and allow successor auditors to review working papers related to matters of continuing accounting significance. Schedule for the 2011-2012 Fiscal Year Audit 1. Detailed audit plan - The auditor shall provide the Audit Committee and Chief Financial Officer both a detailed audit plan and a list of all schedules to be prepared by FICPA staff at the Entrance Conference by June of each year, except in 2012 the date shall be July 7. 2. Interim Work - It is anticipated the auditor will commence interim work by June 15 of each year, except in 2012. Revised 1-17-2012 5
3. Field Work - The auditor shall attempt to complete all field work by August 25. It is anticipated that final general ledger closing will be done during the first week of August each year. At the close of Field Work an Exit conference will take place. The purpose of the meeting is to summarize the results of the field work, review significant findings and review a draft of the management letter. 4. Draft Report - It is anticipated the auditor will deliver the opinion letter, financial statements and management letter and all requested reports by September 15 of each year. 5. Presentation to the Audit Committee - the audit report will be presented to the Audit Committee of the Board of Governors at their first regularly scheduled meeting in September after receipt of the printed reports from the auditor. Right of Rejection The Florida Institute of Certified Public Accountants, Inc. and its related companies will accept a proposal based on its judgment of what is in the best interests of the organizations and reserves the right to reject any proposals in whole or part with or without cause. Basis for Proposal Bidding firms may set up an appointment, if desired, to review books and records prior to submitting bids. Electronic copies of the FICPA s most recent audited financial statements are available at www.ficpa.org or will be provided on request. Contact Donna Son at sond@ficpa.org. Revised 1-17-2012 6