GAYLORD COMMUNITY SCHOOLS Request for Proposal For Audit Services Years Ending June 30, 2015, 2016 and 2017 November 12, 2014
GENERAL CONDITIONS Gaylord Community Schools is seeking proposals (RFP) for the audit of the Gaylord Community Schools (the School District) in accordance with the Michigan Department of Education requirements, Governmental Auditing Standards, OMB Circular A-133, Audits of States, Local Governments and Non- Profit Organizations, and generally accepted auditing standards. Completed proposals (10 copies) must be sent to the attention of Tina Mills, 615 S. Elm, Gaylord, MI 49735 and be received by 2:00 p.m. on Friday, December 19th at which time they will be publicly opened and read. Proposals must be submitted in a sealed envelope that is clearly marked AUDIT PROPOSAL-GAYLORD. Proposals submitted by facsimile will not be accepted. Proposals should include separate firm pricing for the Annual Financial Report and the report on Compliance for Federal Grant Programs for three separate fiscal years: July 1, 2014 June 30, 2015 July 1, 2015 June 30, 2016 July 1, 2016 June 30, 2017 The contract may be extended at the discretion of Gaylord Community Schools 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. 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 might invalidate the proposal(s). Proposals shall remain valid for a period of sixty (60) days after submission. The District will not accept modifications to proposals, except as may be mutually agreed upon following the acceptance of the proposal. All questions should be directed to Tina Mills, Director of Business and Finance at (989) 705-3002 or millst@gaylord.k12.mi.us. TIME TABLE 11/14/14 Request for Proposals sent to CPA firms 12/01/14 Prebid Informational Meeting 2 p.m. at 615 S. Elm, Gaylord, MI 49735 12/19/14 Sealed proposals are due to the Business Office and will be opened at 2:00 p.m. 12/22/15-1/9/15 Proposals distributed and reviewed 1/12/15-1/16/15 Recommended auditing firm interview 02/09/15 Board of Education discussion and potential action 02/10/15 Notification to selected CPA firm
MANDATORY QUALIFICATIONS OF THE AUDITOR The following must be affirmed in the proposal response: 1. The proposer is properly licensed for public practice as a certified public accountant. 2. The proposer meets the independence and continuing professional education requirements of the Government Auditing Standards - Standards for Audit of Governmental Organizations, Programs, Activities and Functions, 2011 revision published by the U.S. General Accounting Office. 3. The respondent does not have a record of substandard audit work. Please disclose the controls your firm has in place to ensure quality standards have been met. Also disclose whether your firm is subject to an external quality control review process. 4. The proposer has an unqualified Peer Review Report. 5. 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 firm must have an excellent reputation for service in school district auditing 6. The firm shall identify the audit manager, field supervisors and other staff who will work on the audit, including staff from other than the local office. Resumes including relevant experience and continuing education for the audit manager, field supervisor(s) and partner in charge of the engagement should be included with the proposal. 7. 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 financial report that is in compliance with Generally Accepted Governmental Auditing Standards as promulgated by GASB, AICPA and Michigan Departments of Education and Treasury. Completion of a Single Audit Report, if necessary, in compliance with the United States General Accounting Office standards commonly referred to as the Yellow Book and Michigan Department of Education Michigan School Auditing Manual. Completion of the Audit Disclosures report as required by the Michigan Department of Education (MDE). Preparation of a Management Letter of Recommendations. Meetings with the Director of Business and Finance and/or Superintendent of Schools prior to release of any report and, at the request of the Superintendent, meetings with the Board of Education, or its committees, to review the above reports. Audit procedures must be in compliance with auditing standards as promulgated by MDE, Michigan Department of Treasury, GASB, GAAP/SAS, AICPA, and U.S. General Accounting Office.
Audit Timeline Interim Audit to commence by June 30 of each year at such time as mutually agreed upon. Audit to commence first two weeks of August of each year at such time as mutually agreed upon. Preliminary draft documents to be delivered no later than August 31 of each year. Final audit documents to be delivered to the district by September 20 of each year in order to meet FID deadline of October 1. Audit to be presented to the Board of Education in October of each year. Communication The auditor will maintain regular contact and meetings with the Director of Business and Finance for the following purposes including, but not limited to: Other Engagement planning meeting. Progress reports. Closing review meeting (exit conference). Notification and explanation of changes to accounting/auditing requirements that affect District financial practices. A written report that would include, but not limited to: results of the audit (including any findings); summary of unrecorded possible adjustments; recommendations; and other innovative methods and best practices that may warrant district investigation and/or adoption. The auditor shall furnish the school district with 15 copies and a PDF electronic file of the Annual Financial Report and Single Audit Report, if necessary. Electronic filing of the reports and letters with MDE. Working Papers The working papers shall be retained for at least three years. The working papers will be available for examination by authorized representatives of the appropriate federal audit agency, the State of Michigan Department of Education, the General Accounting Office and the school district. DISTRICT INFORMATION 1. Enrollment Gaylord Community Schools is a K-12 school district located in Gaylord, Michigan. The District provides general and special education services to all district students within its service area as well as those enrolling under the Schools of Choice Program in Char-Em, COOR, TBA and AMA ISD s. Like the majority of school districts in Michigan, enrollment at the School District has been negatively affected by the economic slowdown in Michigan, and a generally declining birth rate, however enrollment has stabilized over the past three years.
2. Funding School Programs Enrollment South Maple Elementary K-3 466 North Ohio Elementary K-3 438 Gaylord Intermediate 4-6 663 Gaylord Middle School 5-8 521 Gaylord High School 9-12 956 Gaylord Virtual High School 9-12 6 St. Mary s and Otsego Christian K-12 251 Total Enrollment 3,301 The foundation grant for the District is $7,126 per pupil plus $125 per pupil equity payment for the 2014-15 school year. Additionally, the District receives approximately $900,000 in federal grant funds each year and $950,000 in Child Nutrition funding. 3. Accounting Software Gaylord Community Schools utilizes web based software provided by Specialized Data Systems for general ledger, accounts payable and cash disbursements, cash receipts, purchasing, payroll, personnel. The district anticipates converting the Macomb ISD AS400 system by the end of the 2014-15 fiscal year for all finance/personnel and payroll systems. The district uses Power School for student services/pupil accounting purposes. The district uses Kronos Workforce Ready Time Keeping and Accrual Systems for all hourly and administrative staff and AESOP to track attendance for teaching staff. 4. Staffing The District employs 301 people: 161 teachers, 14 exempt administrators, and 126 hourly staff including secretaries, maintenance personnel, food service, aides and bus drivers. Custodians, grounds and substitutes are contracted. 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 Cheryl Wojtas Superintendent 8 years 30 years Tina Mills Dir of Business and Finance 2 years 25 years Donna Rodgers Accounting Specialist 14 years 14 years Teena Blasko Payroll and Benefit Specialist 1 years 19 years Lisa Hibner Sp Ed and Pupil Acctg Asst 7 years 7 years Total Experience in Public Education
5. Financial Fund Fund Balance @ 6/30/14 Budgeted Revenues Budgeted Expenditures General Fund $ 5,707,842 $ 26,982,440 $ 26,928,373 School Service Funds: Food Service $ 293,108 $ 1,577,541 $ 1,521,051 Debt Service Fund $ 215,964 $ 3,008,147 $ 2,909,230 Sinking Fund $ 533,380 $ 1,021,813 $ 1,174,511 Internal Service Fund (Teacher Severance) Activity Funds High School, Middle School, and Elementary Internal Accounts $ 0 $ 516,086 assets $ 331,594 current liab $ 452,715 $ -0- $ -0-6. Taxes The District levies taxes in ten jurisdictions. The 2014 tax levy includes 18 mills on Non-PRE property and 6 mills on commercial personal property for operational purposes, 3.32 debt mills and 1.1378 mills for sinking fund. 7. Other In preparation for each audit, the district currently records all journal entries and provides general ledger account reconciliations and detail records for all assets and liability accounts. All grants are reconciled and receivables/unearned revenues are recorded at year-end. The district will prepare the FID transmissions for the years ending June 30, 2015, 2016 and 2017. The district will prepare the General Ledger for each fund and Schedule of Federal Awards and submit to the auditor in excel format. A copy of the District s Annual Financial Report for the year ending June 30, 2014 is located on the District s Transparency page of the website at http://www.gaylordschools.com/budget-and-salarycompensation-68/.
GAYLORD COMMUNITY SCHOOLS AUDIT PROPOSAL FORM Please complete and return this proposal form with any additional information you feel is necessary to help us evaluate your firm. Proposals are due by 2:00 p.m. on December 19, 2014. Location of the office preparing the audit for Gaylord Community Schools: Audit Firm: Address: Contact Person: Phone Number: 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, 2014 Year ending June 30, 2013 Year ending June 30, 2012 Number of other governmental (fund accounting) audits your firm has conducted in each of the last two years. Last year Prior year List your firm s involvement in school district type organizations. 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 Number of staff above whom were directly involved in a significant portion of the audit of a school district in the last two years. Staff anticipated to be assigned to audit. # of Years # of Yrs Audit School Audit Qualifications Name Title/Position Experience Experience (Degree,CPA)
What type of consulting services do you provide to the School District on an ongoing basis which are included in the base audit cost? Hourly rates for consulting services beyond the scope of the consulting services listed above. Indicate other services that you provide to your clients. Does your firm provide newsletter or other methods of regular communications containing information with specific benefits to school districts? If so, please explain. Please provide any additional information or data that you feel is relevant and may be helpful in the selection process:
Please provide the following from a school district that your firm performed audit services for the year ended June 30, 2014: a. Copy of Annual Financial Statements and Auditor s Report b. Copy of Single Audit c. Copy of Management Letter d. Copy of Board of Education presentation e. Other This is for presentation purposes only. The content and all information presented shall not be shared with others without prior consent. Audit Firm Official Information Firm Name: Address: City, State, Zip Code: Phone: Fax: Signature: Printed or Typed Name: Title: Date: Base audit cost: For the year ending June 30, 2015 $ For the year ending June 30, 2016 $ For the year ending June 30, 2017 $ Auditor Prepares