Request for Proposal Certified Audit Services

Request For Proposals for Audit Services
Issuance Date: April 3, 2024
Submission deadline: April 30, 2024, 5:00 PM (MDT)

Attached is a request for proposal for audit services for Hildale City, Utah, for the years ending June 30, 2024, through June 30, 2026. Your proposal must be submitted to Eric Duthie, Hildale City Manager, no later than 5:00 pm MDT on August 31, 2023, as indicated on page 1 of the Request for Proposal. Selection of the contractor is anticipated to be made by soon after the closing date and will be posted on the Hildale City website at https://www.hildalecity.com/rfps.

To be considered in the solicitation process, the proposing independent auditing firm must
meet the following minimum criteria:

1. The firm must meet the Government Auditing Standards’ continuing professional
education, independence, peer review, and licensing requirements. The firm’s
most recent peer review report must be submitted as part of the proposal.

2. The firm, as well as managers and above assigned to the engagement, must hold
current CPA licenses and maintain those in good standing for the duration of the
audit. CPA license numbers must be provided for the firm (registration) as well as
the individuals assigned to this engagement.

3. The firm must exhibit access to thought and technical leadership resources on
emerging issues with GASB and other current accounting issues.

4. The firm must demonstrate an ability to meet the reporting deadlines described in
the Request for Proposal.

We look forward to working with you as we continue our commitment to quality audits in a
timely and professional manner by utilizing the excellent services the auditing profession has to offer.

Sincerely,
Eric Duthie
City Manager

Hildale City Request for Proposal to provide audit services for the City of Hildale, Utah.

BACKGROUND INFORMATION
The City of Hildale, Utah was incorporated in 1962 and currently has the following funds:
General, Joint Utilities (ILA with Colorado City, Arizona) of Water, Wastewater, Natural Gas, and Fiber.

In addition to the funds mentioned, there are additional component organizations that are part of the reporting entity as defined by Governmental Accounting Standards Board (GASB) Statement 61. Total revenue for all funds and component organizations was $3,534,104 for the fiscal year ended June 30, 2021. Hildale City uses Caselle software for its accounting applications.

Hildale City is required by State law to provide an annual audit of its financial statements by a Certified Public Accountant in accordance with generally accepted auditing standards. This audit must be submitted to the Office of the State Auditor within 180 days after the end of the fiscal year.

OBJECTIVE AND SCOPE
Annual financial audit services are requested for the fiscal years ending June 30, 2023. through June 30, 2026. The audit shall be performed in accordance with generally accepted auditing standards, as promulgated by the American Institute of Certified Public Accountants (AICPA); the AICPA Audits of State and Local Governmental Units audit and accounting guide; and the Government Auditing Standards, published by the U.S. General Accounting Office. Federal compliance test work will be done in accordance with Uniform Guidance.

The audit must be completed, and the report issued prior to November 30, 2024. The auditor must deliver an electronic copy of the report to the Office of the State Auditor and 8 copies to Hildale City. The auditor will be involved in drafting, typing, and printing financial statements, and will assist management’s efforts to obtain the Government Finance Officers Association’s Certificate of Achievement of Excellence in Financial Reporting.

REPORT REQUIREMENTS
For financial audits, the auditor shall examine the financial statements and records of the entity and shall issue an auditor’s opinion on the entity’s financial statements with an in-relation-to opinion on combining and supplementary information, if any. Such financial statements shall be prepared in conformity with generally accepted accounting principles.

The auditor shall issue a compliance report based on an audit of general purpose or basic financial statements and a report on the internal control structure; both in accordance with Government Auditing Standards.

The auditor shall prepare and include a statement expressing positive assurance of compliance with State fiscal laws identified by the state auditor and other financial issues related to the expenditure of funds received from Federal, State, or local governments.

The auditor shall prepare a comprehensive management letter including the auditor’s findings and recommendations relative to the internal accounting and administrative controls, compliance with laws and regulations as applicable and adherence to generally accepted accounting principles.

The auditor shall include the written responses from Hildale City for each recommendation included in the state compliance letter and the management letter required by the State of Utah Legal Compliance Audit Guide.

AUDIT TERM
If the selected certified public accounting firm performs satisfactorily for the June 30, 2024, audit, it is anticipated that the same firm will be engaged to perform the audit for the succeeding two (2) years, subject to an annual evaluation and Hildale City Council appropriation. But, in any event, it will not exceed two (2) years.

PROPOSAL QUALIFICATION REQUIREMENTS
Interested certified public accounting firms should include the following information in their proposal to perform the audit of the fiscal year ending June 30, 2024:

A. Profile of the Independent Auditor
The profile of the proposers should provide general background information. This should include:

1. The organization and size of the proposer, whether it is local, regional, national, or international in operations.

2. The locations of the office from which the work is to be done and the number of professional staff, by staff level, employed at the office.

3. A statement on the proposer’s staff capability to audit computerized systems.

4. A positive statement that the following mandatory criteria are satisfied:

a. An affirmation that the proposer is properly licensed for practice as a certified public accountant in the State of Utah.

b. An affirmation that the proposer meets the independence requirements of the American Institute of Certified Public Accountants and the Government Auditing Standards, 2003 revision, published by the U.S. General Accounting Office.

c. An affirmation that the firm meets the continuing education and external quality control review requirements contained in the Government Auditing Standards, 2003 revision, published by the U.S. General Accounting Office.

B. Proposer’s Qualifications

1. Identify the audit partners, audit managers, field supervisors and other staff who will work on the audit, including staff from other than the local office. Résumés including relevant experience and continuing education for the staff auditors up to the individual with final responsibility for the engagement should be included.

2. Describe the recent local office auditing experience similar to the type of audit requested.

3. If other auditors are to participate in the audit, those auditors should be required to provide similar information.

C. Proposer’s Approach to the Examination
Submit a general audit work plan to accomplish the scope defined in these guidelines. The audit work plan should demonstrate that the proposer understands of the audit requirements and the audit tests and procedures to be applied in completing the audit plan. The plan should detail the expected number of audit hours by staff level. The planned use of specialists should also be specified.

D. Time Requirements
Detail how the reporting deadline requirements of the audit will be met.

E. Fees
Supply the billing rates, estimated number of billable hours, other billable expenses and a “not-to-exceed” fee for the audit, inclusive of travel, per diem and all other out-of-pocket expenses. As noted in section IV, it is expected that if the selected certified public accounting firm performs satisfactorily for the June 30, 2024, audit, it will be engaged to perform the audit for the succeeding two (2) years. Therefore, the not-to-exceed fee information requested above should be provided on an annual basis for two (2) years.

F. Non-discrimination Clause
Affirm that the firm does not discriminate against any individual because of race, religion, sex, color, age, handicap, or national origin, and that these shall not be a factor in consideration for employment, selection of training, promotion, transfer, recruitment, rates of pay, or other forms of compensation, demotion, or separation.

CONTRACTUAL ARRANGEMENTS
A. Audit programs, work papers and reports must be retained for a period of three years after the completion of the audit and made available for inspection by the Hildale City or government auditor’s if requested by them.

B. Payment for the audit will be made upon receipt of the audit reports required in section III.

C. Hildale City staff will be available to prepare schedules, trial balances, and provide documentation to assist the auditor as their schedules permit during the course of the audit.

EVALUATION OF PROPOSALS
The following criteria will be considered when making an evaluation of the proposals:
A. Technical Factors

• Responsiveness of the proposal in clearly stating an understanding of the audit services to be performed.

• Appropriateness and adequacy of proposed procedures

• Reasonableness of time estimates and total audit hours.
• Appropriateness of assigned staff levels.
• Technical experience of the firm.
• Qualifications of staff.
• Size and structure of firm, considering the scope of the audit.
• Geographic location of key personnel and responsible office.

B. Cost of the audit

C. Right to Reject
Hildale City reserves the right to reject any and all proposals submitted and to request additional information from all proposers. Any contract awarded will be made to the independent certified public accounting firm who, based on evaluation of all responses, applying all criteria and oral interviews, if necessary, is determined to be the best to perform the audit.

SUBMISSION OF PROPOSALS
Three (3) copies of your proposal must be submitted to City Manager Eric Duthie no later than April 30, 2024, at 5:00 PM (MDT) through any of the following methods of delivery:

In person: 320 E. Newel Ave, Hildale, Utah 84784

USPS: P.O. Box 840490, Hildale, Utah 84784

Email or electronic: ericd@hildalecity.com or manager@hildalecity.com

All firms submitting proposals will be notified immediately as to the selection results. No proposal will be considered that is not received at or prior to the above time and date.

SOURCES OF INFORMATION
There will be a pre-proposal conference held to allow for questions and clarification on Wednesday, April 24, 2024, at 2:00 PM (MDT) at the following ZOOM address:

https://us06web.zoom.us/j/84927078421?pwd=aXFiYmgvMHlNU1hGVGxZdDFicTArdz09
Meeting ID: 849 2707 8421
Passcode: 353450

City Manager Eric Duthie can be contacted at 435-874-2323 for information necessary to complete the proposal. Audit reports and management letters from prior years will be available for inspection