REQUEST FOR PROPOSAL AND STATEMENT OF QUALIFICATIONS FOR AUDIT SERVICES PART 1: PROCUREMENT INFORMATION The West Palm Beach Housing Authority, Florida (WPBHA) will accept proposals with Statements of Qualifications from Certified Public Accounting Firms for WPBHA's annual audit service for a two (2) year contract term to include the years ending March 31, 2017 and March 31, 2018. Interested firms should submit Ten (10) copies of their proposal in the format described in Part VI below by 4:30 p.m. on January 31st, 2017 to: Executive Director, Laurel Robinson West Palm Beach Housing Authority 1713 North Dixie Highway West Palm Beach, FL 33407 A B. The proposals should be sealed and clearly marked on the outside as follows: Proposal for Auditing Services. The initial contract period shall be that of two (2) years, with a one (1) year renewal option to a maximum of three (3) years. C. Technical information regarding the accounting system may be obtained from Philip O. Goombs, Director of Finance (561) 655-8530, extension 1111 D. Proposals will first be evaluated by the WPBHA Staff Committee. Firms will be ranked by the committee based on its evaluation of qualifications. The criteria and assigned point values are shown in Appendix 1. E. The WPBHA reserves the right to reject any or all proposals and to select the firm which in its judgment, best meets the needs of the Agency. The WPBHA further reserves the right to terminate the contract with proper notice. F. The tentative schedule for selection and award is shown in Appendix 2. G. The selection process contemplated by this request for proposals will result in the selection of a firm to audit the WPBHA. H. The Audit working papers shall be retained by the Auditor for five years. The working papers shall be made available to the WPBHA should the need arise during that time. I. Firms should be prepared to present cost information in a flat yearly fee for each of the one-year periods. Fee will include all REAC submissions. This fee structure should be supported by an hourly rate based upon the type and mix of personnel to be assigned to the audit. Fees are to be broken out for the various programs as detailed in part IV. Fees for tax returns are also to be listed separately. 1
J. The Authority is seeking proposals under its small purchases procedures which do not require public bidding. The Authority will award a contract no later than February 15, 2017. A final audit report must be completed no later than December 31st of each year. K. All responses will be initially vetted by the WPBHA staff review committee. The top three candidates will be submitted to the WPBHA Board of Commissioners for their consideration. Candidates are expected to present their responses to the Board at the regularly scheduled Board meeting on February 15, 2017. PART 11 AUDIT OBJECTIVES AND SCOPE OF SERVICES A. The objective of the audit is to provide an opinion on the financial statements taken as a whole in conformity with Generally Accepted Accounting Principles (GAAP). The audit must meet the requirements of the HUD Audit Guide and Uniform Grant Guidance (UGG) which may amend or supersede these requirements. B. The audit will be a financial and program compliance audit. C. Rental Assistance Demonstration (RAD) programs Compiled Financial Statements are due to HUD by June 30 th each year while the single-audit fieldwork for all other programs should be completed by August 31st of each year. The statements must be ready for publication by September 30 th of the calendar year of the audit year. D. The audit of WPBHA's financial records must be made in accordance with Generally Accepted Account Principles (GAAP), and Governmental Auditing Standards. E. Accompanying the financial statements, the Auditor will submit a Management Letter of Comments and Recommendations, if applicable, for improvement of program and financial management per the Auditor's opinion after examining the WPBHA system. F. The Auditor shall submit an audit report which shall comply with the applicable reporting standards as contained in the publications aforementioned, as amended. Twenty (20) bound copies of each report shall be made and delivered to the Executive Director at the Administrative Offices located at 1713 Dixie Highway, West Palm Beach, FL 33407. Each audit report shall contain at least the following: 1. A table of Contents 2. The auditor's report on: The annual financial statements and any supplementary data within the scope of the audit, (i.e. Schedule of Expenditure of Federal Awards, Financial Data Schedule, et al.) An Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based On An Audit Of Financial Statements performed in accordance with Government Auditing Standards (GAS) An Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by Uniform Grant Guidance Additional activities, if any, required to be included within the scope of the annual financial audit and required to be included in the audit reports.. 2
G. Entrance Conference and Exit Conference Entrance Conference with the Executive Director The purpose of this meeting will be to discuss prior audit issues, the final work to be performed, liaison for the audit and arrangements for work space and other needs of the auditor. Exit Conference with the Executive Director An exit conference with the Executive Director and staff will be conducted by the auditor in charge. At the exit conference findings and recommendations regarding compliance and internal control shall be discussed. The director or a designee shall have the opportunity to respond, orally or in writing, to the findings. Any such written responses shall be included in the audit. PART III WPBHA AND ITS ACCOUNTING SYSTEM A. The West Palm Beach Housing Authority, FL, is organized under Chapter 421 of the Florida Statutes. The WPBHA is governed by a seven (7) member Board appointed by the Mayor of the City of West Palm Beach. B. The WPBHA is progressive in its attitude toward new accounting standards. Early implementation is practiced when recommended. The auditor should be able to provide guidance and assist in the implementation of current changes in governmental accounting standards. C. The WPBHA maintains all accounting records of the Agency. PART IV AUDIT OBJECTIVE AND SCOPE OF SERVICES 1. The WPBHA is a single enterprise fund with the following programs. Section 8 Housing Choice Vouchers & VASH (CFDA14.871)-(3,400 vouchers) Public & Indian Housing Programs (CFDA14.850) (Asset Management, 3 AMPS, total 157 units) Section 8 Housing Assistance Payment Program (CFDA14.195)- Rental Assistance Demonstration (RAD) programs (PBRA) 282 units (multi-family reporting) Public Housing Capital Fund Programs (CFDA14.872) Central Office Cost Center Community Development Block Grant (CFDA14.218) Business Activity - Newton Woods Apartments (60 units) Business Activity - Colony Oaks Apartments (65 units) HOME Investment Partnership Program (CFDA14.239). The HOME Investment Partnership Program accounts for the Tenant Based Rental Assistance (TBRA) program PIH Family Self Sufficiency (CFDA14.896 2. The selected auditor will prepare financial statements, footnotes, FRDS/REAC supplementary schedules, grant status schedule and schedule of federal awards and footnotes. The final reporting package should include the following; 3
1. Statement of Net Position 2. Statement of Revenues, Expenses and changes in Net Position 3. Statement of Cash Flows 4. Supplemental Information 3. The audit will be a financial and compliance audit as required by the U.S. Department of Housing and Urban Development (HUD). 4. Submission to REAC/HUD will meet all HUD guidelines. 5. Data from prior years will be available upon request. 6. No Audit shall be published until the draft submitted to the Executive Director is approved. 7. The Auditor shall also submit to the Federal Audit Clearinghouse the Data Collection Form, SF-SAC, Data Collection Form for Reporting on Single Audits, and one copy of the reporting package (as defined by Uniform Grant Guidance. A copy of the reporting package submitted to the Federal Audit Clearinghouse for the Single Audit shall also be submitted to the local HUD Office if required. Prepare the annual federal and Florida state Tax returns for the West Palm Beach Housing Authority at MerryPlace, Inc. (an 1120 and F-1120 Return) PART V WPBHA'S ACCOUNTING SYSTEM A. The West Palm Beach Housing Authority receives approximately $36,800,000 in federal funds and $3,500,000 in rent collections. B. There are approximately 60 employees C. The Housing Authority's records are fully computerized; the Authority uses Emphasys Elite Software. D. There is one general fund used by the AMPs, CFP, COCC and the Voucher program and it is used as a revolving fund to make all payments for all programs & AMPS. E. The Authority's accountant will prepare the general ledger and subsidiary ledgers and trial balances for each fund open during the audit period. Additional supporting schedules where appropriate will be prepared to assist the audit process. Staff will be available to answer questions and to locate documents as needed. The Housing Authority will be available to make copies as required. 4
PART VI INFORMATION TO BE INCLUDED IN THE PROPOSAL In order to facilitate the evaluation of the proposals, it is requested that the information be arranged in the following format: TITLE PAGE Information should include the subject of the RFQ, the firm's name, the name of a contact person along with an address and phone number, and the date of the proposal. TABLE OF CONTENTS TRANSMITTAL LETTER A signed letter of transmittal briefly stating the proposer's understanding of the work to be done, a statement of why the firm believes itself to be the best qualified to perform the engagement, and a statement that the proposal is a firm and irrevocable offer to provide the services. The letter should also include a declaration of the ability and willingness to commit and maintain staffing, both number and level, to successfully conclude the audit examination in the time frames specified in this request for qualifications. DETAILED PROPOSAL Describe the experience in auditing programs, activities and functions funded by HUD. Indicate the number of years each person who will be assigned to the audit has worked in this area. State whether your audit organization is national, regional or local. State the local address of your firm. An affirmative statement should be included indicating that the firm and all assigned key professional staff are properly licensed to practice in Florida. Affirm that your audit organization is properly licensed for public practice as a certified public accountant. Affirm that your organization meets the independence requirement of Standards for Audit of Government Organization, Programs, Activities and Functions, published by the U.S. GAO or any subsequent amendments or superseding revisions. Affirm that you and/or members of your organization have not been suspended or debarred from performing government audits or other government activity. Provide a list of the local office's current and prior government audit clients and the year (s) engagement. Indicate the number of people by level who will handle the audit. 5
AUDIT APPROACH Describe your technical approach to the audit. Describe your understanding of the work to be performed and your firm's ability to meet the deadlines as written. REFERENCE LIST REQUIREMENT Client Reference: List the names, addresses and phone number of current and prior government audit client references. OTHER INFORMATION AUDIT FEE Include any other information, which may be helpful to the Authority in evaluating your firm's qualifications, including peer reviews within the past three years. Also describe any regulatory action taken by any oversight body against the proposing audit organization or local office. Indicate your fee for this engagement. The audit fee should be detailed showing the audit fee for each program, component unit and tax works. The selection of a firm to conduct the audit will be made based on qualification, experience with Single Audits and price. Interested parties may contact Philip O. Goombs, Director of Finance, regarding questions about the proposal at (561) 655-8530 ext 1111 6
APPENDIX 1 POINT VALUES FOR EVALUATION CRITERIA AUDIT RFP 1. Professional Competence and Experience (40 points maximum) Each firm shall provide information on direct experience in auditing HUD and related housing programs. The information provided should include, but not be limited to, the name of clients, scope of work performed, dates of engagements and a contact person who can render an opinion on the quality of services provided by the firm. Additionally, the firm will provide a copy of its last peer review. 2. Professional Staff (25 points maximum) Each firm shall submit detailed resumes on all members of the firm with special emphasis on HUD auditing experiences of those principles set forth in the Single Audit Act and HUD regulations. Each firm shall also provide details as to the overall supervision to be exercised over the audit team by the firm's management. The Key Personnel and/or associates, which will be assigned to work on this audit, and substitutions for Key Personnel listed, must be equally qualified and must be approved by the Authority prior to assignment to work. 3. Capability to Provide Timely Services (20 points maximum) Each firm shall detail current and future projects contemplated which are anticipated to coincide with this engagement and relate the impact of such work on the schedule anticipated for this audit. Each firm shall submit an approximate time frame for this audit. Auditor's report must be completed and submitted to the Authority no later than two (2) months from the last field date of work, but not later than nine months after the December 31 fiscal year end. 4. Cost (15 points maximum) 7
APPENDIX 2 TENTATIVE SCHEDULE FOR SELECTION AND AWARD 1. Approval of Request for Proposal and Statement of Qualifications for Audit 2. Public Solicitation: Palm Beach Post; FAHRO website 3. Release of RFP: January 9, 2017 4. Responses due by 4:30 P.M. January 31, 2017 5. Proposals and statements of qualifications reviewed: February 8, 2017 6. An oral presentation may be made at the WPBHA's Board of Commissioners meeting scheduled to be held on February 15 th 2017 7. A final selection will be published by February 16 th 2017 8
AUDIT SERVICES RFP PROPOSERS RANKING SHEET Ranking Maximum Points Criteria Points Scored 1. Evidence of the Firm or Individual Ability to Perform All IPA Services as Specified in this RFP Work and Staff Qualifications, Professional Competence and Experience 0-40 Points 2. Qualification of Professional Staff 0-25 Points 3. Capability to Provide Professional Services in a Timely Manner. 0-20 Points 4. Proposed Cost 0-15 Points 5. Evidence that the Firm or Individual is Currently If "NO" the Licensed in the State of Florida Individual Will Be Disqualified TOTAL 100 POINTS TOTAL POINTS Firm/Proposer Name: Evaluator's Name: Date: COMMENTS: 9