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HomeMy WebLinkAboutADDENDUM #1 RFP 22-02-01 PROFESSIONAL INDEPENDENT AUDITING SERVICES1 ADDENDUM # 1 DATE: MONDAY, FEBURARY 28, 2022 TO: ALL PLANHOLDERS FROM: FINANCE- PURCHASING DIVISION RFP NO.: RFP 22-02-01 PROFESSIONAL INDEPENDENT AUDITING SERVICES Please attach this addendum to the documents in your possession and include the Acknowledgement of Addenda form with your response incorporated with the Invitation to Bid. Revisions: (Note: Deletions will be indicated by strikethrough, additions will be indicated with bold font) Q1. Who are the members of the audit selection committee? A1. Vice Mayor Jeniffer Viscarra, Norman Edelcup (citizen and former Mayor) and Lewis Thaler (citizen and former Vice Mayor). Q2. How many years has the City used the current auditors? A2. 6 years. Q3. What were the audit fees for fiscal years 2020 and 2021? A3. FY20: $42,500. Allocated PO FY21: $44,450. Q4. Are the current auditors performing the audit remote or on-site? A4. On-site Q5. For fiscal years 2019, 2020, and 2021, were there any out-of-scope fees paid to the auditor? If so, what were the related services and fees? A5. No. Q6. Section 4.3 of the RFP shows 5 points for Cost of Services. How are these points allocated? Does every vendor receive 5 points for submitting a price proposal? Is there a formula? Please clarify. A6. The assigning of points and formula is up to the Audit Selection committee to determine. In practice, a firm with a lower cost proposal will receive the maximum # of points. 2 Q7. Section 3.6.3 of the RFP makes reference to an EDP audit. Also page 39 requires a total price for an EDP audit. Please provide sufficient information regarding the EDP audit and the information systems that you want covered in order to allow us to project a fee. Are all the systems managed in-house? A7. In reference to the EDP audit, per the City’s Chief Information officer, the total network size is approximately 400 nodes, and about 100 servers. The firm must describe the nature and extent of Electronic Data Processing (EDP) audit techniques to be used, if requested by the City to perform the Services by the Proposer in the examination of the City’s financial statements, and provide a description of work to be done in accordance with current applicable auditing standards (effects of EDP on the auditors study and evaluation of Internal Control). Q8. 8. Section 3.6.3 of the RFP makes reference to an EDP audit. When was the last year that the City obtained an EDP audit? Was the EDP audit performed by the current City auditor? A8. The City has not had a need for an EDP audit. The specifications were included in the RFP for the firm to address if they have the experience/qualifications to complete an EDP audit in the case the City requests one. Q9. Can you provide a copy of the last auditor’s contract? A9. Attached. Q10. Please provide the auditor’s last engagement letter. A10. Attached. Q11. Was there a separate single audit reporting package for FYE 9/30/20 and, if so, can you provide it? A11. No, a single audit was not required for FYE 9/30/20. Q12. 4. How much were the audit fees for each year of the last contract period, or, at a minimum, for the last 3 years? A12. FY19: $42,500. FY20: $42,500. Allocated PO FY21: $44,450. Q13. What is the expected budget for the FYE 2022 audit? A13. The budget for FY 2022-23 has not yet been finalized. Q14. When on-site, pre-COVID, how long were the auditors in the field for preliminary and for final? A14. One week for preliminary and two weeks for final. Q15. When on-site, pre-COVID, what months were the auditors were in the field for preliminary and for final? A15. Late July/Early August for preliminary and November for final. The City reserves the right to adjust this schedule as needed. Q16. Do you expect the 2022 and succeeding audits to be performed, primarily, on site or remotely? Do you have a preference? A16. On-site is preferred. 3 Q17. What were the auditor’s total hours? A17. Approximately 400 hours. Q18. Has there been a change in finance/accounting department key personnel in the last two years? A18. There is one change, a new Assistant Finance Director started on February 28, 2022. Q19. Did the entity implement any new financial software or new components of existing software in the last 3 fiscal years or expect to do so in the next 3 fiscal years? A19. No new financial software or components have been implemented in the last 3 fiscal years. There is a potential possibility of doing so in the next 3 fiscal years although no official discussions or actions have been taken at this time. If it were to happen, it would likely occur closer to the 3rd fiscal year. Q20. When will the books be closed and when will the auditors be able to get the final trial balance? A20. Generally, the books are closed between 11/15 and 11/30 and the final trial balance would be provided at that time. Q21. How many adjusting journal entries were booked based on the audit work performed in each of the last 2 years? A21. There were 7 adjusting journal entries for 2021 and 12 adjusting journal entries for 2020. Q22. Was the auditor engaged to perform any additional services in the last 3 years? If so, what were they and what were the fees? A22. No Q23. Who, specifically, will make up the selection committee? A23. Please refer to A1. Q24. For the original copy of the proposal, can electronic signatures be used on forms and other areas except for the transmittal letter? A24. Wet signature preferred. Q25. For the original copy of the proposal can digitally-certified signatures be used for the transmittal letter? A25. Wet signature preferred.