Request for Proposals (RFP) #2021 for FY21 & FY22 City Exams

Date July 6, 2021

REQUEST FOR PROPOSALS (RFP)

RFP NUMBER 2021

The City of Fayette, Iowa (City) will receive proposals to perform agreed upon procedures to satisfy the annual examination requirements of Section 11.6 of the Code of Iowa for the 2020-2021 year(s) ending June 30, 2021 and for the 2021-2022 year(s) ending June 30, 2022.  Attached is information relating to minimum specifications of services, data to be included in the proposal, evaluation criteria and selected information relating to the City to be examined.

Sealed proposals (2 copies) will be accepted until 12:00 p.m. (Noon), July 15, 2021, at the office of the Fayette City Hall (11 S. Main Street) in Fayette, Iowa.  If mailed, the proposals should be mailed to:

Fayette City Hall

Attn: Kris McGrane

P.O. Box 28

Fayette, IA 52142

Those submitting sealed proposals should indicate on the outside of the envelope in the lower left-hand corner that it is a sealed proposal for the RFP number indicated above and the name of the firm submitting the proposal.

The contract for services will be awarded by August 3, 2021.

Further information may be obtained from Fayette City Hall at (563)-425-4316 or This email address is being protected from spambots. You need JavaScript enabled to view it.

NOTE
: This form is available on the Auditor of State's website at:

                      http://auditor.iowa.gov/municipal/index.html 

At the Municipal Oversight page, navigate to Annual Examination Agreed Upon Procedures (AUP) Engagement Request for Proposals (RFP) to access a Word version and download a copy of the RFP.

I. SPECIFIC REQUIREMENTS

1. The City reserves the right to reject any and all proposals received.

2. Only proposals received at the location described and in the time frame given will be considered.

3. The original and one copy of the enclosed contract should be completed and manually signed by a partner of the firm submitting the proposal.

4. The annual examination agreed upon procedures (AUP) engagement shall be performed in accordance with the following:                                          

     a) Attestation Standards for agreed upon procedures engagements issued by the American Institute of Certified Public Accountants,

     b) The Standards for Attestation Engagements contained in Government Auditing Standards issued by the Comptroller General of the United States and

     c) The agreed upon procedures program guide prepared by the Office of Auditor of State (AOS).

     d) Other procedures, if any, requested by the City.

5. The fees quoted in the proposal and included in the contract will be the maximum paid per hour and in total, unless an amendment to the contract is completed by both parties.

6. The AUP engagement report should conform to:

     a) Reporting formats specified by the AOS,

     b) Attestation Standards reporting requirements and

     c) Government Auditing Standards reporting requirements.

7. The AUP engagement report should report all findings from the AUP engagement since materiality does not apply to the findings to be reported in accordance with, and as described in, Attestation Standards, AT-C 215.26 of the AICPA’s attestation standards.

8. Bound copies of the report, in a quantity sufficient to meet the needs of the City, are required to be provided by the firm awarded the contract. In addition, the firm awarded the contract shall prepare an electronic (PDF) copy of the report for submission to the AOS at This email address is being protected from spambots. You need JavaScript enabled to view it..

9. An electronic (PDF) of the report, a detailed per diem AUP engagement invoice and a copy of the news release shall be submitted to AOS at This email address is being protected from spambots. You need JavaScript enabled to view it. upon release of the report to the City.

10. Working papers shall be retained by the firm performing the AUP engagement and shall be made available to the AOS in accordance with Chapter 11 of the Code of Iowa.

II. DATA TO BE INCLUDED IN PROPOSAL

In order to simplify the review process and to obtain the maximum degree of comparability, the proposal should include the following items and be organized in the manner specified below.

A. Letter of Transmittal - optional

A letter of transmittal may be included briefly outlining the proposer’s understanding of the work and general information regarding the firm and individuals to be involved, including the local address of the office of the firm which will perform the work, the telephone number and the name of the contact person.

B. Profile of Firm Proposing - recommended

1. Provide a brief description of the size of the firm.

2. State whether the firm is in compliance with the registration requirements to engage in the practice of public accounting within Iowa.

3. State whether the firm is independent of the City in accordance with Government Auditing Standards.

4. Describe the local office from which the work will be performed.

     a) Location of the office.

     b) Current size of the office.

     c) Size of professional staff by level, such as partner, manager, supervisor, senior and other professional staff.

     d) Number of CPA’s in the office.

5. Submit any other pertinent information required to describe the office which will perform the work.

C. Qualifications - required

1. Describe the recent local office experience in similar types of City or governmental engagements to which the proposal relates. If appropriate, include regional experience regarding similar types of entities and/or engagements.

2. Include brief resumes of all key professional members who will be assigned to the AUP engagement. The resumes should include:

     a) The amount of experience the individual has in the profession.

     b) A summary of similar governmental audits and/or AUP engagements on which the individual has worked.

     c) A summary of the continuing professional education the individual has had in governmental accounting and auditing during the last two years.

     d) A statement as to whether the individual is independent, as defined by Government Auditing Standards.

3. Describe the firm’s policy on notification of changes in key personnel to be assigned to the engagement.

4. Provide a listing of or the number of professionals in the office who are experienced in governmental audits and/or AUP engagements.

5. Describe the availability of individuals within the firm who are primarily involved in governmental audits and/or AUP engagements and reporting and with whom the AUP engagement team may consult.

6. Describe briefly the firm’s system of quality control to ensure the AUP engagement is adequately performed.

D. Scope of Services and Proposed Project Schedule - required

Briefly describe your understanding of the scope of services to be provided.  Indicate a proposed time schedule for completing the work, assuming the contract will be issued on the date given in the cover letter.  Include the approximate dates you would perform fieldwork, office review and report preparation and the latest delivery date of the final report.

E. Fees and Compensation - required

Provide the following information:

  1. Estimated total hours.
  2. Estimated out-of-pocket expenses.
  3. Hourly rate by staff classification.
  4. All-inclusive maximum fee and out-of-pocket expenses, which will not be exceeded.
  5. Frequency and timing of your billing process.

 

III. RECOMMENDED EVALUATION CRITERIA

It is important the proposal is responsive to the data requested.

1. Cost

     Overall cost, including out-of-pocket expenses, for performance of the AUP engagement.

2. Qualifications

     a) Organizational structure and size of the firm.

     b) Organizational structure and size of the office performing the AUP engagement.

     c) Recent experience in AUP engagements.

     d) Qualifications of the AUP engagement team.

     e) Individuals with whom the AUP engagement team can consult.

     f) Level of effort, understanding of work and timetable to complete the AUP engagement.

 IV. CITY PROFILE

SUGGESTED information to include:

     (1) Administrative Information:

  • Background information on the City,
  • Fiscal year(s)covered by AUP engagement,
  • List of the City’s funds,
  • Description and magnitude of the City’s accounting records,
  • Description of the City’s computer system(s), if applicable, and
  • Availability of prior reports and/or working papers.

     (2)  Work and Reporting Requirements:

  • Extent to which the City would assist the firm,
  • Specific scope of the AUP engagement work to be performed,
  • Number of copies of reports required,
  • List of restrictions, such as copy services or work space and
  • Exit conference requirements.

     (3)  Time Requirements:

  • Date of contract award,
  • Date records would be ready for the AUP engagement and
  • Date final report is due (9 months following the end of the reporting period).

 

SAMPLE AGREEMENT BETWEEN

_________________________

AND

City of Fayette, Iowa

            THIS AGREEMENT made and entered into this _____day of ___________________, 2021, by and between the City of Fayette, Iowa hereinafter called “City,” and ____________________________________, hereinafter called “CPA.”

            WHEREAS, the City wishes to obtain the services of the CPA to perform an agreed upon procedures (AUP) engagement to satisfy the annual examination requirements of Section 11.6 of the Code of Iowa, for the 2020-2021 year(s) ending June 30, 2021 and for the 2021-2022 year(s) ending June 30, 2022; and

            WHEREAS, the CPA is equipped and staffed to perform the above AUP engagement; and

            WHEREAS, this agreement is in the public interest in fulfilling the requirements of Chapter 11 of the Code of Iowa.

NOW, THEREFORE, BE IT UNDERSTOOD AND AGREED:

1. The CPA will:

     A. Perform the AUP engagement for the estimated hours as noted in this agreement.

     B. Begin work on the AUP engagement as specifically agreed upon with the City. 

     C. Perform all work in accordance with Attestation Standards issued by the American Institute of Certified Public Accountants and those contained in Government Auditing Standards issued by the Comptroller General of the United States and the agreed upon procedures program guide prepared by the Office of Auditor of State.

     D. Immediately inform the City, the Auditor of State and the County Attorney if the AUP engagement discloses any irregularity in the collection or disbursement of public funds or other findings the CPA believes represent significant noncompliance as required by Chapter 11 of the Code of Iowa.

     E. Provide access to its working papers to the Auditor of State in accordance with Chapter 11 of the Code of Iowa.

2. Conditions of Payment:

     A. It is understood the fees for the services set forth above shall be reimbursed at the following hourly rates:

 

Classification

 

Estimated

Hours

 

Hourly Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     B. The CPA shall present an invoice for services in the following manner: a hard copy to Fayette City Hall, 11 S. Main Street, P.O. Box 28, Fayette, IA 52142.

     C. Payment shall be made within 45 days of receipt of the invoice.

     D. The total reimbursement shall not be for more than $________, except as specifically agreed by the City and the CPA.

3. Termination of Agreement:

     A. The City may terminate this contract without notice if the CPA fails to perform the covenants or agreements contained herein.

     B. The CPA shall be paid for all work satisfactorily performed to the date of termination.

 IT WITNESS THEREOF, the City and CPA have executed this AGREEMENT as of the date indicated below:

CPA _____________________________                  City of Fayette

By ______________________________        By _________________________________

Title ____________________________         Title ________________________________

Date ____________________________        Date _______________________________

            RECOMMENDED EVALUATION CRITERIA AND TECHNIQUES FOR RESPONSES TO REQUESTS FOR PROPOSALS

Evaluation of responses to a request for proposal is based upon a 100-point rating system.  A maximum of 25 points is assigned to the cost of the bid proposal, and a maximum of 75 points is assigned to the qualifications of the bidding firm or individual.  The techniques used to evaluate these two components are described below.

 

Criteria:                          COST

Evaluation Value:            25 points

Evaluation Technique:      For each firm evaluated

          Cost Score =   Lowest cost of all proposals received   

                               Proposal cost for this firm                     x 25

Criteria:                          QUALIFICATIONS

Evaluation Value:            75 points

Evaluation Technique:      Subjective scoring for the following factors:

 

Qualification Factor

 

Possible Points

1.    Organizational structure and size of the entire firm (resources available – personnel and research, existence of areas of specialization, commitment to governmental auditing and AUP engagements, etc.)

 

 

0-5

2.    Organizational structure and size of office performing the AUP engagement (resources available – personnel and research, existence of area of specialization, commitment to governmental auditing and AUP engagements, etc.)

 

 

0-5

3.    Recent experience in similar engagements (involvement in local governmental audits and/or AUP engagements, extensiveness, variety, length of time performing governmental examinations, etc.)

 

 

0-15

4.    Qualifications of the AUP engagement team (level of experience as accountants, auditors or governmental auditors, variety of experience, % of time devoted to governmental engagements, number of CPA’s involved, training, etc.)

 

 

 

 

0-25

5.    Individuals with whom the AUP engagement team can consult (level and variety of experience, number of CPA’s, training, etc.)

 

 

0-5

6.    Level of effort, understanding of work and timetable to complete the AUP engagement (number of hours, projected timetable, commentary showing understanding of the City and general knowledge of what is required, etc.)

 

 

 

 

0-20

Total points – Qualifications

 

0-75

Each firm’s total evaluation score is the sum of its cost score plus its qualification score.  The maximum score is 100 points.

There is no place like home. And there is no place like Fayette.

11 S. Main Street

563.425.4316

info@fayetteiowa.com

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