Request for Proposal Professional Auditing Services 16607 Burlington Road, Union Grove, WI. 53182 October 4, 2019

Town of Paris – Kenosha County WI

Request for Proposal Professional Auditing Services

16607 Burlington Road, Union Grove, WI. 53182

October 4, 2019

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PURPOSE OF REQUEST

The Town of Paris, Wisconsin (Town) is requesting proposals for the purpose of retaining a certified public accounting firm (Firm) to audit the Town’s financial records for the fiscal year ending December 31, 2019 with the option of extending the contract at the mutual agreement of the Town and the firm. All detailed information needs are outlined in subsequent sections of this request for proposal (RFP). The term of the contract with the successful Firm shall commence no later than December 1, 2019.

This RFP seeks professional services and statutory bidding laws do not apply.

INSTRUCTIONS TO AUDITING FIRMS

  1. All submissions must be addressed and mailed or delivered to:

Town of Paris
Diana Coughlin ‐ Clerk/Treasurer 16607 Burlington Road, Union Grove, WI 53182

  1. All proposals must be in writing and must be in a sealed envelope and clearly marked in the lower left corner “Auditing Services Proposals”. All proposals must be received by 5:00 p.m. on Monday, November 18t, 2019. Proposals received after that date and time will be rejected. Proposals will not be opened publicly.
  1. One (1) original and four (4) written copies of the proposal must be provided.
  2. The Clerk/Treasurer will notify the Firm selected by Wednesday, November 27th, 2019. If interviews are required prior to selection, your firm will be notified.
  1. This request for proposal does not commit the Town to award a contract, to pay any costs incurred in the preparation of a submittal to this request or to procure or contract for services or supplies.
  2. No official or employee of the Town shall have any financial interest, whether direct or indirect, in the contract.
  3. Amendment of proposals may be done as follows:
    1. By the Town: Proposals may be amended by the Town in response to the need for further clarification, specifications and/or requirement changes, new opening date, etc.
    2. By the Firm: Proposals may only be amended after receipt by the Town by submitting a later dated proposal that specifically states that it is amending an earlier proposal. No proposal may be amended after the opening dates unless requested by the Town.

DESCRIPTION OF ENTITY AND RECORDS TO BE AUDITED

The Town of Paris is located in Kenosha County, approximately 10 miles west of downtown Kenosha, in the southeast corner of Wisconsin. The Town of Paris covers over 35 square miles and has an estimated population of 1,500. The Town operates with a three-person board, consisting of a Town Chair and two supervisors. All terms are for two years and expire at the same time. Following the passing of a referendum, the Clerk/Treasurer position is appointed by the Town Board and oversees the day to day operations. The Town Clerk/Treasurer has appointed an assistant who is paid hourly.  The Town of Paris provides a limited range of services typical of town governments, including fire and emergency medical protection; public works activities such as road maintenance (provided contractually by Kenosha County), construction inspections, a local planning commission, with zoning and zoning enforcement provided by Kenosha County; property assessment (contracted); and general and financial administration.  The Town receives revenues from Waste Management via tipping fees and from shared revenue from a We Energies power plant located in the town.  The Town has no debt service.

The Town receives revenues from Waste Management via a negotiated tipping fee contract and from the State Shared Revenue Program (utility aid).  The Town does not collect a local town tax.  The Town has assets of approximately $22.0 million in various investments including the State Investment Pool, a money market account and an investment portfolio managed by LPL Financial.

The Town’s Fire and Rescue department consists of both paid on call members as well as daytime staffing by paid on premises employees. The Town had a payroll of approximately $250,000.00 in 2019 for Fire and Rescue.

The Town’s 2019 adopted budget of approximately $2.1 million included $1.0 million to offset 75% of the County levy for Paris landowners.   A summary of the various funds used by the Town is available from the Town Clerk.

Funds to be analyzed:

  • Governmental Funds
  • Fiduciary Funds

The Town currently does not have any proprietary funds.

The Town uses QuickBooks as its primary accounting software.  During the 2019 fiscal year, the Town adopted by ordinance and policy, the ability to manage the payment of its payroll via direct deposit.  Direct deposit is facilitated by Johnson Bank of Racine, the Town’s designated depository.  Vendor accounts are paid by check, following the Town’s previous bill payment protocol.

The Town’s fiscal year ends on December 31.

BASIS OF ACCOUNTING

The Town currently elects to present its financial statements on a modified cash basis of accounting.  Revenues and expenses and their related assets, liabilities and deferred inflows and outflows are recorded when they result from cash transactions or events, except for certain modifications such as recording accrued payroll liabilities and notes receivable in the government-wide financials and in the fund financial statements. As a result, certain liabilities and their related expenses are not recorded in the current financial statements.

SCOPE OF AUDIT

The audit shall cover the financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the Town of Paris, Wisconsin as of and for the year ending December 31, 2019 and related notes to the financial statements, which collectively comprise the Town’s basic financial statements. The audit shall be conducted in accordance with auditing standards generally accepted in the United States of America, American Institute of Certified Public Accountants Industry Audit Guide, and Audits of State and Local Government Units.

The Firm will also be responsible for preparing all financial statements, schedules and associated notes, as well as the State Financial Report Form C. The audit shall include an annual examination of the Town’s financial statements for the year ending December 31, 2019 with an option to extend services.

The Town presently does not anticipate the need for a single audit through the term of this contract. Should the Town receive federal and/or state financial assistance that would require a single audit to be performed; the Town will negotiate the necessary fees with the Firm.

In addition to the above, the Firm will:

  1. Prepare and publish a SAS 114 and SAS 115 letter, Communications to those charged with governance and management, which includes findings and recommendations affecting financial statements, internal controls, accounting systems and procedures, legality of actions and any other material matters.
  1. If necessary, prepare an annual single audit report and express an opinion thereon, for the years ending December 31, 2019 as required by the Federal Office of Management and Budget Circular A‐133 and the State of Wisconsin Single Audit Guidelines.
  2. Audit presentation of financial statements and management letter to the Town Board is expected to occur no later than the Town Board meeting in June, which takes place on the fourth Tuesday of the month. A representative from the Firm shall be available to meet with elected officials at that evening’s meeting to answer questions regarding the completed audit and/or management letter.
  3. Provide all reports in a digital format as well as five (5) printed and bound copies at least one (1) week prior to presenting the report to the Town Board.

ASSISTANCE AVAILABLE TO SELECTED FIRM

The Town’s financial statements were last audited by Gordon J. Maier & Company, LLP as of December 31, 2018.

The primary contact for the audit will be the Town Clerk/Treasurer. Other staff will be available to provide information and explanations as required.

The Town will provide adequate office space, office furniture, photocopying, internet, telephone and fax service at no cost to the auditor.

TERMS AND CONDITONS

Insurance

All proposals must include either a description of the Firm’s insurance or a certificate of insurance outlining the Firm’s insurance policies which evidence a prudent amount of coverage for the willful or negligent acts or omission of any officers, employees or agents thereof. The Town’s minimum requirement for errors and omissions coverage is $2 million. The successful Firm shall agree that it will, at all times during the term of the agreement, keep inforce and effect insurance policies required by the contract, issued by a company or companies authorized to do business in the State of Wisconsin and satisfactory to the Town. Such insurance shall be primary. Prior to execution of the written contract, the successful Firm shall furnish the Town with a Certificate of Insurance listing the Town as an additional insured and upon request, certified copies of the required insurance policies. The Certificate shall reference the contract and provide for thirty (30) days advance notice of cancellation or nonrenewal during the term of the agreement.

Applicable Law

Any lawsuits related to or arising out of disputes under this agreement shall be commenced and tried in Circuit Court of Kenosha County, Wisconsin, and the Town and successful Firm shall submit to the jurisdiction of the Circuit Court for such lawsuits.

Nondiscrimination

In connection with the performance of work under this agreement, the Firm agrees not to discriminate against any employee or applicant for employment because of age, race, religion, color, marital status, sexual orientation, sex, disability, national origin or ancestry.

Assignment or Subcontract

This contract may not be assigned or subcontracted by the Firm.

Independent Contractor Status

The Firm agrees that it is an independent Contractor with respect to the services provided pursuant to this agreement. Nothing in this agreement shall be considered to create the relationship of employer and employee between the parties.

Amendments to Contract

This contract may be modified only by written amendment to the contract, signed by both parties.

Waiver

One or more waivers by any party of any term of the contract will not be construed as a waiver of a subsequent breach of the same or any other term. The consent or approval given by any party with respect to any act by the other party requiring such consent or approval shall not be deemed to waive the need for further consent or approval of any subsequent similar at by such party.

Indemnification and Defense of Suits

The Firm agrees to indemnify, hold harmless, and defend the Town, its officers, agents and employees from any and all liability including claims, demands, damages, actions or causes of action, together with any and all losses, costs, or expense, including attorney fees, where such liability is founded upon or grows out of the acts, errors, or omissions of the Firm or its employees.

Contract Period

The term of this contract shall commence no later than December 1, 2019. The contract will be for one (1) year with the option for extension if the services meet or exceed the Town’s expectations.

Termination of Contract for Cause

If through any cause, the Firm shall fail to fulfill in a timely and proper manner the obligations under this contract, or if the Firm shall violate any of the covenants, agreements or stipulations of this contract, the Town shall thereupon have the right to terminate this contract by giving written notice to the Firm specifying the effective date thereof, at least five (5) days before the effective date of such termination. In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports or other materials related to the services prepared by the Firm under this contract shall, at the option of the Town, become the property of the Town of Paris.

Notwithstanding the above, the Firm shall not be relieved of liability to the Town for damages sustained by the Town by virtue of any breach of the contract by the Firm, the Town may withhold any payments to the Firm for the purpose of set off until such time as the exact amount of damages due to the Town from the Firm is determined.

Auditor Access

All parties contracting with the Town shall, upon request, provide access to and furnish the Town auditors with requested information, records and reports regarding powers, duties, activities, organization property, financial transactions, methods of operation, or any or all other records, reports or information in their custody. In addition, they shall provide access for the auditors to inspect all property, equipment and facilities within their custody.

Working Papers

Audit working papers must be retained for at least seven (7) years from the final year of the audit engagement and be made available for examination by authorized representatives of the cognizant federal or state audit agencies, Government Accountability Office, the Town, successor auditors (if appointed), and/or any other parties authorized by the Town of Paris.

PROPOSAL FORMAT

Your proposal should provide a straightforward, concise description of the proposed delivery of services and your ability to achieve the same in the format provided. Emphasis should be on completeness and clarity.

Title Page

The proposal should identify the subject, the name of the Firm, address, telephone number, fax number, e‐mail address, name and title of the contact person, and the date of submission. The response should confirm that the proposal is effective for ninety (90) days from the date submitted.

Letter of Transmittal

The letter of transmittal should summarize the following information:

  1. A brief understanding of the services to be performed.
  2. A positive commitment to perform the services as specified.
  3. The name(s) of the person(s) authorized to represent the Firm; their title, address, telephone number, fax number and email address if different from the individual who signs the transmittal letter.

Certification of License to Practice in Wisconsin

Firm must affirm that they are licensed to practice as Certified Public Accountants in the State of Wisconsin.

Certification of Independence

Firm must certify that the firm, partners and all staff members assigned to the engagement are free from impairments to independence with respect to the Town of Paris, as defined by generally accepted auditing standards and the U.S. General Accounting Office’s Government Auditing Standards. The Firm must commit to maintaining an independent attitude and appearance through the full term of the engagement.

Profile of the Firm

This section should include information on:

  1. The type of organization and size of the Firm
    1. The location of the office from which the work is to be performed.
    1. List (if any) of other municipal clients.

COST PROPOSAL

The proposed fees should be provided as a part of the proposal.

OTHER CONSIDERATIONS

Factors which include, but are not limited to, quantity involved, time of completion, purpose for which required, competency and financial capacity of Firm, ability to render satisfactory service and past performance will be considered in determining status as a responsible Firm. The Town reserves the right to request additional information as may reasonably be required to make this determination and to further investigate the qualifications of the respondent as deemed appropriate.

PROFESSIONAL SERVICES CONTRACT

If your proposal is accepted and a contract is issued, then this Request for Proposal and all documents attached hereto including any amendments, the Firm’s technical and price proposal, and any other written offers/clarifications made by the Firm and accepted by the Town, will be incorporated into a contract between the Town and the Firm. It shall contain all the terms and conditions agreed on by the parties hereto, and no other agreement regarding the subject matter of this proposal shall be determined to exist or bind any of their parties hereto.

The submission of a proposal shall be considered as a representation that the Firm has carefully investigated all conditions, has full knowledge of the scope, nature and quality of work required, and is familiar with all applicable State, Federal and Local regulations that affect, or may at some future date affect the performance of this contract.

Acceptance of this proposal will take place only upon award by the Paris Town Board, execution of the contract by the proper Town officials, and delivery of the fully‐executed contract to the successful Firm. Acceptance may be revoked at any time prior to delivery of the full‐executed contract to the successful Firm. The contract may be amended only by written agreement between the Firm and the Town of Paris.

RIGHT OF THE TOWN TO REJECT PROPOSALS

The Town of Paris reserves the right to reject any and all proposals or any part of any proposal, to waive minor irregularities in the procedure, defects or technicalities, or to cancel in part or in its entirety, or to solicit new proposals on the same project or on a modified project which may include portions of the originally proposed project as the Town may deem necessary in its best interest. The Town also reserves the right to negotiate with any vendor regarding all or part of any proposal that is in the best interest of the Town.

CONFIDENTIALITY OF DOCUMENTS

All responses to the Request for Proposals (RFP) submitted by vendors shall be deemed public documents at the time they are opened by the Town of Paris. The RFP is intended to be worded in a manner so as not to elicit proprietary information from the vendor. If proprietary information is submitted as part of the proposal, such information is to be labeled proprietary and be accompanied with a request that the information is to be held in confidence by the City of Pewaukee until such time as the contract is set. Any proposal that is submitted with a general statement or limitation that would prohibit reasonable public inspection shall be considered non‐responsive and shall be rejected.