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Town of Beaufort Audit RFP FY2018

Post Date:03/16/2018 1:25 PM

Town of Beaufort Audit RFP for Fiscal Year 2018 

The Town of Beaufort is seeking a Request for Proposals (RFP) for Auditing Services for Fiscal Year 2018.

March 16, 2018
Town of Beaufort, NC Request for Proposal for Audit Services                                                  

The Board of Commissioners of The Town of Beaufort (hereinafter called the “Town”) invites qualified independent auditors (hereinafter called “auditor”) having sufficient governmental accounting and auditing experience in performing an audit in accordance with the specifications outlined in this Request for Proposal (RFP) to submit a proposal.
There is no expressed or implied obligation for the Town of Beaufort to reimburse firms for any expenses incurred in preparing proposals in response to this request.
The specific details shown herein shall be considered minimum unless otherwise shown.  The specifications, terms, and conditions included with this RFP shall govern in any resulting contract(s) unless approved otherwise in writing by the Town of Beaufort.  The bidder consents to personal jurisdiction and venue in a state court of competent jurisdiction in Carteret County, North Carolina.

Type of Audit
The audit will encompass a financial and compliance examination of the Town’s Financial Statements, supplementary information and compliance reports in accordance with the laws and/or regulations of the State of North Carolina, which include requirements for the minimum scope of the audit.  The financial and compliance audit will cover federal, state, and local funding sources in accordance with generally accepted auditing standards; Government Auditing Standards, July 2011 revisions; the Single Audit Act of 1984; the Single Audit Act Amendments of 1996; the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the State Single Audit Implementation Act; and all other applicable laws and regulations.  

The unit intends to continue the relationship with the auditor for no less than three years on the basis of annual negotiation after the completion of the first year contract.  Each year after negotiation has taken place an annual contract documenting the terms of the audit will be signed.  Since one governing board may not obligate future governing boards, the remaining years of the agreement are subject to annual governing board approval.  The Town of Beaufort reserves the right to request proposals at any time following the first year of this contract.  Thus, prepare proposals for the following years, with Year one being the only obligated year:

July 1, 2017 to June 30, 2018
July 1, 2018 to June 30, 2019
July 1, 2019 to June 30, 2020 

The audit must be conducted in accordance with generally accepted auditing standards; Government Auditing Standards, July 2011 revisions issued by the Comptroller General of the United States; Office of Management and Budget Uniform Guidance, the State Single Audit Implementation Act of 1996, and any other applicable procedures for the audit of a government’s financial statements prepared in accordance with GAAP.

The Auditor will prepare most year-end adjusting journal entries.  The auditor will be ultimately responsible for the preparation, typing, proofing, printing, and copying of the Basic Financial Statement, supplementary information and compliance reports. The Town of Beaufort Finance Officer will be actively involved in the MD&A, and other schedules section preparation. The auditor will submit a draft of the Financial Statement to be reviewed in detail by the Finance Officer.  This draft should be submitted to the Town of Beaufort in time to allow ample review and corrections.  The timing of this should insure final completion of the Financial Statements no later than the annual October 31st deadline.  

The Town of Beaufort prefers interim fieldwork be completed in early June.  Year-end fieldwork should begin in late August and be completed by September 20th.  While many documents can be shared electronically, the Town expects that the audit firm staff will be onsite for field work, including manager and partner level staff for at least a portion of the onsite work. The Finance Officer will expect a listing of requested information needed for the audit at the preplanning conference, periodic conferences during the conduct of the audit, as well as an exit conference prior to the completion of fieldwork.  An agreed upon post-closing trial balance must be prepared and a preliminary draft of the audit and required journal entries must be submitted to the Finance Director by October 1 for proofing and reconciliation to the Town’s records.

The audit must be completed and reports rendered four months following the fiscal year end (October 31).

Fifteen copies of each audit report, management letter, and other applicable reports must be supplied to the Finance Director. In addition, the auditor is responsible for submitting the required two copies to the staff of the Local Government Commission (LGC).  Any other copies required will be charged on an as needed basis in addition to the quoted fee.  

The financial audit opinion will cover the financial statements for the governmental activities, the business-type activities, the financial statements of the aggregate discretely presented component units, each major fund, and the remaining fund information, which collectively constitutes the basic financial statements.  The combining and individual financial statements, schedules, and related information are not necessary for fair presentation, but will be presented as additional analytical data.  This supplemental information, as required by GASB 34, will be subject to the tests and other auditing procedures applied in the audit of the basic financial statements, and an opinion will be given as to whether the supplemental information is fairly stated in all material respects in relation to the basis financial statements taken as a whole.  The auditor shall also express an opinion on the budgetary comparison information for the general fund, the major funds, and any annually budgeted special revenue funds.  An opinion will not be given on the Management Discussion and Analysis.  
The working papers shall be retained and made available upon request for no less than three years from the date of the audit report.
In the event that circumstances arise during the audit that require work to be performed in excess of the original estimates, any additional costs will be negotiated prior to commencement of the work and an amended contract will be approved by the governing board and forwarded to the staff of the LGC for approval.

Audit Contract & Payment of Audit Fees
The audit contract must be approved by the staff of the Local Government Commission.  Invoices are subject to approval by the LGC staff prior to processing by the Town.  Interim or progress billings will be accepted up to 75% of the total fee prior to submission of the audited financial statements to the staff of the Local Government Commission and their approval of the audited financial statements.

Other Services
The auditor will prepare, type, and print the audited financial statements.  The auditor will submit a draft for review by the Finance Director.  The Finance Director will return the draft with proposed revisions within 10 working days.

Description of Selection Process
Proposals must be submitted in two sections and two separate sealed packages. The first section will be comprised of the audit firm’s prior experience and qualifications of its personnel in performing governmental audits. 

The Town audit selection committee consisting of a Town Commissioner, Town Manager, and Finance Director, will independently review and rate all proposals in order to select one firm to recommend to the Board. Therefore, THREE copies of the first section of the proposal and one copy of the second section should be submitted at the time and place indicated under the section entitled “Time Schedule for Awarding Contract.”  

The selection committee will evaluate and rate the auditor/firm on educational and technical qualifications.  The firm chosen from the first section will have their second section opened and evaluated.  The firm best meeting the Town of Beaufort’s expectations for experience, audit approach, and cost requirements will be selected and recommended to the Board. 


The Town of Beaufort requests that no Town of Beaufort officials be contacted during this process.  The Finance Officer may be contacted only to clarify questions concerning the RFP.

The Town  reserves the right to reject any or all bids, waive technicalities, and to be the sole judge of suitability of the services for its intended use and further specifically reserve the right to make the award in the best interest of the Town .

Failure to respond to any requirements outlined in the RFP, or failure to enclose copies of the required documents, may disqualify the bid.

First Section

The first section should address the requested information below.  The corresponding responses should begin with the number below for the requested information.

1. Indicate the number of people (by level) located within the local office that will handle the audit.

2. Provide a list of the local office’s current and prior government audit clients, indicating the type(s) of services performed and the number of years served for each.  Responsive firms should include any relevant information regarding audits performed on financial statements prepared under the new reporting model.  

3. Indicate the experience of the local office in providing additional services to government clients by listing the name of each government, the type(s) of service performed, and the year(s) of engagement.

4. Describe your audit organization’s participation in AICPA-sponsored or comparable quality control programs (peer review).  Provide a copy of the firm’s current peer review.

5. Describe the professional experience in governmental audits of each senior and higher level person assigned to the audit, the years on each job, and his/her position while on each audit.  Indicate the percentages of time each senior and higher-level personnel will be on site.  Again, relevant experience with the new reporting model should be clearly communicated.

6. Describe the relevant educational background of each person assigned to the audit, senior level and higher.  This should include seminars and courses attended within the past three years, especially those courses in governmental accounting and auditing.

7. Describe the professional experience of assigned individuals in auditing relevant government organizations, programs, activities, or functions (e.g., utilities, solid waste, transit, airports, or health authorities and school systems).

8. Describe any specialized skills, training, or background in public finance of assigned individuals.  This may include participation in State or national professional organizations, speaker or instructor roles in conferences or seminars, or authorship of articles and books.

9. Provide names, addresses, and telephone numbers of personnel of current and prior governmental audit clients who may be contracted for a reference.

10. Describe the firm’s Statement of Policy and Procedures regarding Independence under Government Auditing Standards (Yellow Book), July 2011 Revision.  Provide a copy of the firm’s Statement of Policy and Procedures.

11. Is the firm adequately insured to cover claims?  Describe liability insurance coverage arrangements.

12. Describe any regulatory action taken by any oversight body against the proposing audit organization or local office.

Second Section

Proposals should include completed cost estimate sheets and any other necessary cost information in a separate, sealed envelope marked – “Cost Estimate.”  The Town plans to evaluate the qualifications of all firms submitting proposals before considering the Cost Estimate.

This second section should consist of completed cost estimate sheets, which will include the following information:

1. Type of audit program used (tailor-made, standard government, or standard commercial).

2. Use of statistical sampling.

3. Use of computer audit specialists.

4. Organization of the audit team and the approximate percentage of time spent on the audit by each member.

5. Information that will be contained in the management letter.

6. Assistance expected from the government’s staff, if other than outlined in the RFP.

7. Tentative schedule for completing the audit within the specified deadlines of the RFP.

8. Use of internal audit staff (if applicable).
9. Specify costs using the format below for the audit year July 1, 2017 to June 30, 2018.  For the two audit years, which follow, list the estimated costs.  The cost for the audit year ending June 30, 2018 is binding, while the second and third years are estimated costs.  Cost estimates must indicate the basis for the charges and whether the amount is a “not-to-exceed” amount.

A. Personnel costs – Itemize the following for each category of personnel (partner, manager, senior, staff accountants, clerical, etc.) with the different rates per hour.

1) Estimated hours – categorize estimated hours into the following:  on-site interim work, year-end on-site work, and work performed in the auditor’s office.

2) Rate per hour.

3) Total cost for each category of personnel and for all personnel costs in total.    

B. Travel – itemize transportation and other travel costs separately.

C. Cost of supplies and materials – itemize.

D. Other costs – completely identify and itemize.

E. If applicable, note your method of determining increases in audit costs on a year to year basis

10. Please list any other information the firm may wish to provide.  

11. Please include the Summary of Audit Costs Sheet with your proposal.

Time Schedule for Awarding the Contract

Request for proposal packages will be available by March 16, 2018.

Please acknowledge the receipt of this request for proposal and your intent to respond with a proposal by March 23, 2018.

Proposals signed by authorized officials will be received by Christi Wood, Finance Director at 701 Front Street. P.O. Box 390, Beaufort, NC, 28516 until April 2, 2018 at 2:00 p.m.  Envelopes containing proposals should be clearly identified on the front with the words “RESPONSE TO RFP FOR AUDIT SERVICES”.  The selection committee will review the proposals and make a recommendation to the Board of Commissioners on May 14, 2018 at which time the contract will be awarded.  

Please find the fiscal year 2017 Financial Report at  Additional information may be found by clicking the link at the top of this page.

The Town will not be holding a pre-proposal meeting, any questions should be directed to:

Christi Wood