HomeMy WebLinkAboutRes 2016-05-169-2016 Audit RFP CITY OF ANNA, TEXAS
RESOLUTION NO. I v- 05-140
(2016 Audit Service RFP)
A RESOLUTION AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS
FOR INDEPENDENT FINANCIAL AUDIT SERVICES.
WHEREAS, the City of Anna, Texas ("the City") is committed to principles and
practices of open and fair government that honor the public trust; and,
WHEREAS, Article 7 Section 7.18 of the City's Home-Rule Charter ("the Charter")
requires an annual independent audit of all accounts of the City by a certified public
accountant; and,
WHEREAS, Article 7 Section 7.18 of the Charter further states that no more than five
consecutive annual audits may be completed by the same firm; and,
WHEREAS, the same audit firm has completed five consecutive audits; and,
WHEREAS, the City wishes to obtain competitive proposals for audit services;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The above-referenced recitals are incorporated herein as if set forth in full for all
purposes.
Section 2. Investment Policy Reviewed
The City Council has hereby authorizes the issuance of a request for proposals for
independent financial audit services hereto as exhibit 1.
PASSED by the City Council of the City of Anna, Texas, on this the 10th day of May,
2016.
ATTEST: °"'""'� MQVED:
Carrie Smith, City cretary Mi e Cfi4 Mavor
tP(frf�p�dEfltolECC
CITY OF ANNA,TEXAS RESOLUTION Page 1 of 1
1
�
CITY OF ANNA, TEXAS
CITY OF ANNA, TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
DUE DATE:
THURSDAY, June 9, 2016, AT 2:00 PM (CST)
ISSUED BY:
FINANCE DEPARTMENT
CITY OF ANNA, TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
TABLE OF CONTENTS
I. INTRODUCTION
A. Request for Proposals (RFP)............................................................................l
B. Term of Engagement................................................................................................1
II. DESCRIPTION OF THE MUNICIPALITY
A. Background Information..........................................................................................1
B. Current City Officials ..............................................................................................1
C. Fund Structure..........................................................................................................2
D. Budgetary Basis of Accounting...............................................................................2
E. Financial Information...............................................................................................3
F. Pension Plans...........................................................................................................3
G. Federal and State Financial Assistance....................................................................3
H. Computer Systems...................................................................................................3
I. Internal Audit Function............................................................................................4
J. Finance Department Personnel................................................................................4
III. SCOPE OF AUDIT SERVICES REQUIRED
A. Auditing Standards...................................................................................................4
B. Reporting..................................................................................................................4
C. Evaluation of Internal Control Systems...................................................................5
D. Provision of Advisory Guidance..............................................................................5
E. Special Assistance in Award Recognition Program................................................5
F. Requested Client-prepared Schedules......................................................................5
G. CAFR Preparation....................................................................................................5
H. Working Paper Retention and Access to Working Papers.......................................6
IV. CITY OF ANNA'S RESPONSIBILITIES DURING AUDIT............................................6
V. CALENDAR OF EVENTS
A. Selection of Audit Firm ...........................................................................................6
B. Contemplated Schedule for Annual Audit...............................................................7
VI. INFORMATION REQUESTED FROM AUDIT FIRMS
A. Title Page.................................................................................................................7
B. Table of Contents.....................................................................................................8
C. Letter of Transmittal................................................................................................8
D. Profile of the Responding Firm................................................................................8
E. Summary of the Responding Firm's Qualifications................................................9
F. Approach to the Audit..............................................................................................9
VII. SUBMISSION OF COMPETITIVE PROPOSAL
A. Instructions to Prospective Firms...........................................................................10
B. Filing Requirements...............................................................................................11
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
VIII. EVALUATION CRITERIA..............................................................................................12
IX. RIGHTS RESERVED BY THE CITY OF ANNA...........................................................12
X. WARRANTIES .................................................................................................................13
XI. DOLLAR COST OF THE AUDIT SERVICES TO BE PROVIDED..............................14
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
I. INTRODUCTION
A. Request for Proposals (RFP)
The City of Anna, Texas (the City) is soliciting Competitive Proposal for
services to audit its financial records and accounts and to prepare its
comprehensive annual financial report (CAFR) based on the audit. Persons
qualified to perform these services include certified public accountants who are
licensed in the State of Texas and public accountants who hold permits to practice
from the Texas State Board of Public Accountancy.
B. Term of Audit Engagement
The contract for audit services based upon City Council approval of the proposal
will be for the fiscal year ending September 30, 2016 through September 30, 2017.
Following satisfactory delivery of the services specified in this proposal and
engagement letter, the City may, at its option, request to extend the agreement for
another two years through fiscal year ending September 30, 2019.
II. DESCRIPTION OF THE MUNICIPALITY
A. Background Information
The City of Anna is a political subdivision located just North of
McKinney, Texas and is in Collin County. The City's corporate limits
currently encompass a land area of approximately 13 square miles and a
planning area of over 57 square miles when including the extraterritorial
jurisdiction. The City has a population of approximately 12,000. With the
adoption of the home rule charter- in 2005, the municipality presently
operates under the Council-Manager form of government.
B. Current City Officials
• Elected Officials:
Mayor................................................................Mike Crist
Mayor Pro-Tem................................................Chad Barnes
Deputy Mayor Pro-Tem....................................John Beazley
Councilmember.................................................Justin Burr
Councilmember.................................................Lauren Lovato
Councilmember.................................................Nathan Bryan
Councilmember.................................................Dick Dowd
Page 1
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
• Executive Staff:
City Manager....................................................Philip Sanders
Police Chief/Deputy City Manager...................Kenneth Jenks
City Secretary....................................................Carrie Smith
Finance Director.................................................Clayton Fulton
Fire Chief....... ..................................................Tim Gothard
Planning Director................................................Maurice Schwanke
Public Works Director........................................Joseph Johnson
ECD/CDC Chief Admin. Officer.......................Jessica Perkins
C. Fund Structure
As of April 30, 2016,the City's fund structure is as follows:
Number with
Number of Legally Adopted
Fund Type/Account Group Individual Funds Annual Budgets
General fund 1 1
Special revenue funds 2 2
Debt service funds 1 1
Capital projects funds 1 1
Enterprise funds 1 1
General fixed asset account group 1 0
General long-term debt account group 1 L 0
D. Budgetary Basis of Accounting
The City prepares its operating budget on an annual basis. The budgets for all
governmental funds are prepared and adopted on a basis consistent with generally
accepted accounting principles. The budgets prepared and adopted for enterprise
funds differ from generally accepted accounting principles primarily in that
depreciation expense is not a budgeted item, while capital outlay is budgeted as an
expense.
Page 2
CITY OF ANNA, TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
E. Financial Information
Total annual appropriations for funds of the primary government for fiscal year
2015-16 total $16.4 million. Information that is more detailed is available about
the City and its finances on the City's website at www.annatexas.gov. There you
will find prior Audits and Adopted Budgets.
F. Pension Plans
The City's employees participate in the Texas Municipal Retirement System. The
City does not currently offer any additional retirement or pension plans.
G. Federal and State Financial Assistance
During the fiscal year to be audited, the City may receive funding from federal
and state financial assistance programs. A Single Audit may be required if the
appropriate grant expenditure thresholds are met. Last year the City was not
required to provide a Single Audit report.
H. Computer Systems
The City currently utilizes the ASYST software package from United
Systems Technology, Inc., for the following applications:
• General ledger
• Accounts payable
• Check reconciliation
• Payroll
• Utility billing
• Cash collections
Municipal court currently utilizes the MCRS software package from Utility Data
Systems of Texas, LLC, to input citations and traffic tickets, maintain the docket,
enter judgments, and enter payments. Payment information is manually entered
into ASYST as separate transactions on a monthly basis. The two software entries
are then reconciled at the end of the month after all transactions have been entered.
J. Internal Audit Function
The City does not currently have any internal audit functions.
Page 3
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
K. Finance Department Personnel
The Director of Finance has a Masters of Public Administration with emphasis
in local government and financial analysis. He has just under 5 years of
municipal finance experience. Additionally,the City utilizes an accounting
consultant from time to time to advise on accounting questions and closing entries.
Other finance-related personnel hold the following positions and years of
experience in municipal government:
• Accountant II 9 years
•
Finance/Budget Analyst 1 I years
• Utilities Clerk(2) 20 combined years
• Human Resources Administrator 10 years
III. SCOPE OF AUDIT SERVICES REQUIRED
A. Auditing Standards
The examination of the City's financial statements should be made in accordance
with:
• Auditing standards generally accepted in the United States of America,
• Standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States,
• Provisions of relevant Governmental Accounting Standards Board
statements, and
• U.S. Office of Management and Budget Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations, as applicable.
B. Reporting
The selected audit firm will be required to prepare the following reports:
• Independent Auditor's Report,
• 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, and
• All other reports required of the independent auditor examining the City's
financial statements in accordance with the standards listed above.
Page 4
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
C. Evaluation of Internal Control Systems
The selected audit firm shall observe the adequacy of the systems of internal
control. If weaknesses are noted, appropriate findings and recommendations
should be reviewed with the City Manager and Director of Finance, with final
inclusion in a separate letter to the City Council.
D. Provision of Advisory Guidance
The successful audit firm will be expected to provide advisory guidance to City
staff during the course of audit work for accounting and other technical matters
necessary to keep the City in compliance with any changes in governmental
accounting and financial reporting standards.
E. Special Assistance in Award Recognition Program
The City has never completed an annual CAFR to submit to the
Government Finance Officers Association of the United States and Canada
(GFOA) for review in its Certificate of Achievement for Excellence in Financial
Reporting Program. The City intends to complete an annual CAFR and submit
to the GFOA for FY 16. Therefore, the successful audit firm will be required to
provide special assistance to meet the requirements of this program. The City will
give additional consideration to those firms that have actively participated in
technically assisting clients complete an annual CAFR.
F. Requested Client-prepared Schedules
The successful audit firm will be expected to submit a detailed list of requested
client-prepared schedules to the City's Director of Finance at an agreed-upon date
to facilitate efficient and timely completion for the fieldwork process. The
Finance Department is staffed at only a maintenance level and must carry on its
normal operations during the audit. Additional staff time may be necessary to
prepare schedules for the audit and thus this time constraint should be taken into
account in preparing the Competitive Proposal.
G. CAFR Preparation
The audit firm will prepare the draft and final versions of the CAFR as follows:
• The introductory and statistical sections will be prepared by City staff with
assistance from the auditor as necessary. Final review of introductory and
statistical sections will be performed by the auditor.
Page 5
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
The financial section will be prepared by the auditor. The auditor will
compile and prepare all financial statements and schedules. The notes to
the basic financial statements will be a joint effort of the City and the
auditor, and they will be prepared by the auditor.
Printing and binding of twelve (12) copies of the CAFR will be the responsibility
of the audit firm, with the report covers provided by the City. The audit
firm will also provide the City with a print-ready version of the
CAFR in Portable Document Format (PDF) to facilitate the printing of
any additional copies and for posting the CAFR on the City's website.
H. 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 five (5) years, unless the firm is notified in writing by the City of the
need to extend the retention period.
At the City's request, copies of any or all working papers prepared in conjunction
with a respective audit engagement will be provided, on a timely basis, at no cost
to the City. In addition, the audit firm shall respond to reasonable inquiries of
successor auditors and allow them to review working papers relating to matters of
continuing accounting significance.
IV. CITY OF ANNA'S RESPONSIBILITIES DURING AUDIT
A. The City's finance department staff shall close all accounts within 90 days after
fiscal year end and prepare, at the audit firm's option, a trial balance and/or
detailed general ledger transaction listing for all funds to be examined by the
auditor.
B. The City will provide the auditor with an on-site work area and access to a source
of power,telephone,photocopier, and fax machine.
C. The City will make available and accessible all documents, records, and systems
requested by the independent auditors to conduct their examination.
D. City staff will be available to provide documents and reports for examination,
reproduce documents,prepare specific schedules, etc.
E. The City will allow the auditor access to staff work areas for confidential
discussions to take place.
V. CALENDAR OF EVENTS
A. Selection of Audit Firm
Page 6
CITY OF ANNA, TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
The following is a proposed calendar of events for selection of an auditor. Dates
are subject to change.
KEY DATE DESCRIPTION OF EVENT
Thursday,May 12, 2016 Advertise RFP in local newspaper, post RFP
on City's website, and distribute RFP to
prospective firms
Thursday,May 19, 2016 Second advertisement of RFP in local
newspaper
Thursday, June 9, 2016 Receive sealed Proposals by 2:00 PM to City
Secretary at City Hall
Tuesday, July 28, 2016 City Council selection of audit firm
B. Contemplated Schedule for Annual Audit
The desired schedule for completion of certain aspects of the audit for each year
of the engagement is as follows:
1. The audit may commence after September 30 or at an earlier time for
planning purposes as mutually agreed upon by the City.
2. The detailed list of requested schedules to be prepared by City staff needs
to be provided to the City at least four(4)weeks prior to fieldwork.
3. The preliminary draft report will be prepared by the audit firm and given
to the City no later than the last business day of January.
4. The final report is to be issued by the audit firm to the City no later than
the last business day of February.
5. The audit firm will be required to present the CAFR to the City Council at
a meeting scheduled in March.
VI. INFORMATION REQUESTED FROM AUDIT FIRMS
Any firm interested in being considered for the independent financial audit services
engagement is requested to submit, on the firm's letterhead, a Competitive
Proposal, which provides information on the points, indicated below. Responding firms
should refer to Section VII (Submission of Competitive Proposal) of this RFP for
additional response guidelines.
__._...__.._.__ Page 7
CITY OF ANNA, TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
To achieve a uniform review process and obtain the maximum degree of
comparability, the Competitive Proposal is to be organized according to the following
outline:
A. Title Page
Show the RFP subject, the name of the proposing firm, local address, website
address,telephone number,name of contact person, and date submitted.
B. Table of Contents
Include a clear identification of the material by section and by page number.
C. Letter of Transmittal
1. Briefly state the firm's understanding of the work to be performed and
provide a clear commitment that work will be performed within the time
periods specified in the RFP.
2. Provide the dollar cost(maximum not to exceed amount) of the services to
be performed, included the cost of a Single Audit, if required.
3. Provide the names of the persons who will be authorized to make
representations for the firm, their titles, addresses, email addresses, and
telephone numbers.
4. State that the person signing the transmittal letter is authorized to bind the
firm and enter into a contract.
5. The firm should provide affirmative statements that:
a. It is licensed to practice in the State of Texas and
b. It is independent of the City of Anna as defined by Government
Auditing Standards issued by the Comptroller General of the
United States. (Otherwise, identify and discuss any potential
conflicts of interest of which the firm is aware.)
D. Profile of the Responding Firm
1. State whether the firm is local,regional,national, or international.
2. State the location of the office from which work is to be performed and the
number of partners, managers, supervisors, seniors, and other professional
staff employed at that office.
3. Describe the local office's capacity to audit computerized systems,
including the number and classifications of personnel skilled in computer
sciences who will work on the audit.
Page 8
CITY OF ANNA, TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
4. List the firm's professional affiliations and the results of the latest peer
review.
E. Summary of the Responding Firm's Qualifications
1. Describe the firm's most recent auditing experience similar to the type of
audit being requested. Include a reference list of local government audit
clients and the number of years served for each. Indicate who prepared
each entity's CAFR and whether the entity has been awarded any GFOA
Certificates of Achievement for Excellence in Financial Reporting.
2. Identify the partner, audit manager, and supervisors who will work on the
audit. Resumes including relevant governmental auditing experience and
continuing education for each individual assigned to the audit should be
included. (Resumes may be included as an appendix.)
3. Indicate the firm's experience in providing any additional services to local
governments by listing the name of each entity, the type(s) of service
performed, and the year(s) of engagement.
F. Approach to the Audit
1. Submit a work plan to accomplish the scope of services required,
including an explanation of the audit methodology to be followed. In
developing the work plan, reference should be made to sources of
information, such as the City's budget and related materials,
organizational charts, manuals and programs, and financial and other
management information systems. The planned use of any specialists
should also be specified. In addition,proposers are required to provide the
following information on their audit approach:
a. Proposed segmentation of the engagement,
b. Level of staff and number of hours to be assigned to each proposed
segment of the engagement,
c. Sample sizes and the extent to which statistical sampling is to be used
in the engagement,
d. Extent of the use of EDP software in the engagement,
e. Type and extent of analytical procedures to be used in the engagement,
f. Approach to be taken to gain and document an understanding of the
City's internal control structure,
g. Approach to be taken in determining laws and regulations that will be
subject to audit test work, and
h. Approach to be taken in drawing audit samples for purposes of tests of
compliance.
2. State the purpose and degree of utilization of City of Anna personnel.
---- -- Page 9
CITY OF ANNA, TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
VII. SUBMISSION OF COMPETITIVE PROPOPOSAL
A. Instructions to Prospective Firms
The following instructions should be observed by firms responding to this RFP:
1. Please respond specifically to all information requested in this
RFP or indicate why a particular response is not given.
2. Please limit responses to relevant material. Any additional data
may be included in the Competitive Proposal at the
proposer's discretion. Additional information must be submitted
in the form of an appendix or bound separately.
3. Identify the RFP item being addressed in the introduction to each
response.
4. Respondents or their representatives are prohibited from
communicating with City of Anna officials (including City
Council members) and employees regarding the RFP from the
time it is released until it has been acted upon by the City Council.
Violation of this provision by respondents or their agents will lead
to disqualification of the respective Competitive Proposal from
consideration.
5. If there are any clarification questions regarding the scope of work
and/or any other requirements of this RFP, respondents or their
representatives should submit them in writing and forward them
via email to Clayton Fulton, Director of Finance, at
cfulton annatexas.gov. All responses by the City will be
provided in the form of an addendum and will be posted on the
City's website at www.annatexas.gov. It is the responsibility of
responding firms to ensure that the addendum has been reviewed
and addressed in their Competitive Proposals.
6. The City of Anna is subject to the Texas Open Records Act.
However, certain types of information may be exempt from
disclosure under the Act. Firms submitting information, which
they deem confidential or proprietary, must clearly mark and
identify such information page by page. The City, as allowed by
applicable law, will protect such information from disclosure. The
final decision as to what information must be disclosed under the
Open Records Act lies with the Texas Attorney General.
------- Page 10
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
B. Filing Requirements
The City of Anna requests two (2) bound copies of the Competitive
Proposal, along with one (1) unbound copy suitable for reproduction. All
Competitive Proposals should be sealed in an envelope and clearly marked
"Competitive Proposal for Independent Financial Audit Services" on the
outside of the envelope or on any carrier's envelope.
Sealed Competitive Proposals are to be mailed, sent by overnight courier, or
hand-delivered to the attention of.
Carrie Smith
City Secretary
City of Anna, Texas
PO Box 776,Anna, TX 75409
The City of Anna will accept sealed Competitive Proposals for
independent financial audit services until 2:00 PM on Thursday,June 9,2016.
Competitive Proposals received after this time will not be
considered.
The City of Anna will not be responsible in the event that the U.S. Postal
Service or any other courier system fails to deliver the sealed Competitive
Proposals to the City of Anna by the deadline specified above. Electronic
transmission or facsimile of the Competitive Proposal will not be accepted.
Page 11
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
VIII. EVALUATION CRITERIA
City staff s recommendation to the City Council will be based on the Competitive
Proposal determined to offer the best value to the City and its taxpayers. The
evaluation of the Competitive Proposal will be made based on, but not limited to, the
following criteria, in no particular order of priority or rating, in addition to the items listed
in Section VI (Information Requested from Audit Firms) of this document. These
factors will be applied to all eligible, responsive firms in comparing the Competitive
Proposals received and in selecting the audit firm.
The City of Anna reserves the right to require oral presentations by any or all firms. A
contract award may be made without oral presentations and/or discussions with firms
after RFP responses are received by the City. Therefore, RFP responses should be
submitted on the most favorable terms.
All costs directly or indirectly related to preparation of a response or oral presentation, if
any, required to supplement and/or clarify an item in the RFP shall be the sole
responsibility of,and shall be borne by,the responding firm.
The City will use the following criteria in selecting the proposal representing the greatest
benefit to the City:
A. Knowledge of generally accepted accounting principles, auditing standards,
financial policies, and procedures applicable to governmental entities,
B. Prior experience in auditing financial statements of similar sized or larger
municipal governments in Texas,
C. Proposing firm's approach to the examination and the work plan for
accomplishing the scope of services required in the RFP,
D. Proposing firm's anticipated hours, time lines and sequence for audit procedures
and anticipated total billing charges to complete the engagement for September
30, 2016 and a statement of how these amounts would change for the subsequent
year(s),
E. Availability of trained personnel and technical resources required for conducting
the audit and for providing consultation on accounting and other technical matters
as needed to keep the City current on any changes in governmental accounting
and financial reporting standards, and
F. A demonstrated ability to provide assistance in obtaining the Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association.
IX. RIGHTS RESERVED BY THE CITY OF ANNA
The City of Anna reserves the right to:
Page 12 ------
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
A. Accept,reject, re-solicit, and/or extend the RFP by up to two (2) additional weeks
from the original submission date if only one or no Competitive Proposal is
received by the submission deadline,
B. Hold Competitive Proposals for 90 days from the submission date without
action,
C. Extend the original 90 day holding period prior to the award if agreed upon in
writing by both parties,
D. Request additional information or to meet with representatives from responding
firms to discuss items in the Competitive Proposal before and after
submission, any or all of which may be used in forming a recommendation,
E. Disregard and reject the entire Competitive Proposal for any alterations,
changes, or deletions made to this RFP by the proposer,
F. Reject any or all Competitive Proposals received and to accept the
Competitive Proposal the City considers being in its best interest based upon the
requirements and descriptions outlined in the RFP,
G. Retain all Competitive Proposals submitted and to use any ideas in a
Competitive Proposal regardless of whether that Statement is selected, and
H. Terminate all or any part of the unfinished portion of the work resulting from this
solicitation within thirty (30) days written notice whether due to default, delay, or
non-performance by the firm or, if it is deemed in the best interest of the City for
convenience.
X. DOLLAR COST OF THE AUDIT SERVICES TO BE PROVIDED
The City will rank all validly submitted Competitive Proposals and selected a firm based
upon demonstrated competence&qualifications and the dollar cost to provide the
requested services. The proposing firm will be expected to provide the following items for
consideration:
A. The dollar cost is to provide the maximum not-to-exceed fee. The total hours and
hourly rate required to complete the requested work by staff classification are to be
stated. The resulting all-inclusive maximum not-to-exceed fee amount is to
contain all direct and indirect costs, including all out-of-pocket expenses.
B. The cost to perform the Single Audit(if applicable) is to be shown separately from
the cost to audit the basic financial statements and required supplementary
information. In addition,the expected rates for any additional services for which
the City might desire to utilize the expertise of the auditor on additional projects
outside the scope of this financial audit engagement are to be provided.
C. The expected manner and terms of payment for the proposed engagement are to be
provided.
Page 13 —...__--- __--------
CITY OF ANNA,TEXAS
REQUEST FOR PROPOSALS
INDEPENDENT FINANCIAL AUDIT SERVICES
XI. WARRANTIES
A. The successful firm warrants that it will not delegate or subcontract its
responsibilities under the audit engagement without the express prior written
consent of the City.
B. The successful firm warrants that it will not replace or substitute key audit
personnel without the City's knowledge and consent.
C. The successful firm warrants that it is willing and able to obtain an errors and
omissions insurance policy providing a prudent amount of coverage for willful or
negligent acts or the omissions of any officers or employees.
D. The submission of a Competitive Proposal shall be prima facie evidence that the
proposing firm has full knowledge of the scope,nature, quantity, and quality of the
work to be performed,the detailed requirements of the specifications, and the
conditions under which the work is to be performed.
Page 14
City of Anna
Request for Proposals
Independent Financial Audit Services
The City of Anna is soliciting Sealed Competitive Proposals from qualified certified public
accountants to audit its financial statements for a period of three years with option for renewals.
Interested firms may obtain specifications and information through our website at
wammannat
Yexas. ov. Go to the Departments tab, then to the Finance Department, then to
Audit RFP. If you are unable to access our website or would like a proposal sent to you, please
contact Mr. Clayton Fulton, Director of Finance, City of Anna, PO Box 776, Anna, Texas
75409, (972) 924-3325 or cfulton@annatexas.gov
Sealed Competitive Proposals must be marked"Competitive Proposal for Independent
Financial Audit Services". Sealed proposals must be delivered to the City Secretary,PO
Box 776,Anna, Texas 78374 on or before 2:00 P.M. local time on Thursday,June 9,2016.
Any proposals received after this stated date and time will be returned unopened. Proposals will
be received, opened, evaluated, and awarded as outlined in the contract documents.
The City of Anna reserves the right to reject all proposals, to waive all formalities and to
make the award of contract deemed to be in the best interest of the City.
For additional information, contact Clayton Fulton, Director of Finance, at (972) 924-3325 or
via email at cfulton@annatexas.gov.
/s/
Clayton Fulton
Finance Director