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Jan 28, 2020
The City of Rehoboth Beach, Delaware, is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal years ending March 31, 2020, 2021 and 2022. Additional years will be optional. These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the U.S. Government Accountability Office’s (GAO)Government Auditing Standards (2018) , the provisions as set forth by the Government Accounting Standards Board, the provisions of the federal Single Audit Act of 1984 and U.S. Office of Management and Budget Circular, Audits of State and Local Governments.
Additional information about the City of Rehoboth Beach and past audited financial statements can be located on the City’s website, https://www.cityofrehoboth.com/government/budget
There is no expressed or implied obligation for the City of Rehoboth Beach to reimburse responding firms for any expenses incurred in preparing proposals in response to this request nor does the City of Rehoboth Beach have to accept any or all bids that come forward.
Selection Process
To be considered, please submit four (4) copies of the proposal by February 13, 2020, to:
City Manager Sharon Lynn
City of Rehoboth Beach
229 Rehoboth Avenue
Rehoboth Beach, DE 19971
Proposals must include the total cost per year for the initial three (3) year period. The proposed annual cost should be inclusive of all charges to the City of Rehoboth Beach. Proposals must also include three (3) references of governmental clients that can comment on the firm’s qualifications and work.
Proposals submitted will be evaluated by a selection committee consisting of the City Manager, Finance Director and one of three members of the City’s Audit Committee.
All proposals will be evaluated based on the following criteria:
- Professional qualifications
- Experience and technical expertise with governmental entities of similar size and structure to the City of Rehoboth Beach
- Annual cost to the City
- Responsiveness and quality of the proposal
- Any other criteria deemed appropriate by the City in its sole discretion
The Selection Committee will make a recommendation to the City Commissioners, who will make the final selection. During the evaluation process, the Selection Committee reserves the right, where it may serve the City’s best interest, to request additional information or clarifications from proposers, to conduct interviews, or to allow corrections of errors or omissions. The City will select the most responsive and responsible bidder which may or may not be the lowest cost proposal.
It is anticipated the selection of a firm will be completed by February 28, 2020, and a recommendation brought forward to the Commissioners at their workshop meeting scheduled for March 9, 2020, with a vote to be taken by the Commissioners at their regular meeting on March 20, 2020.
All questions regarding the RFP should be directed to:
Mr. Burton Dukes
Finance Director
City of Rehoboth Beach
229 Rehoboth Avenue
Rehoboth Beach, DE 19971
302-227-6182 ext. 107
Term of Engagement
A three-year contract is anticipated, subject to the annual review and recommendation of the Commissioners, the satisfactory negotiation of terms and the annual availability of an appropriation. However, the Commissioners may also desire to exercise an option to extend the contract to an additional fourth and/or fifth year.
Audit Scope
The audit must be performed in accordance with generally accepted auditing standards. The successful auditing firm will audit the financial statements of the government activities, the business-type activities and each fund, which collectively comprise the basic financial statements of the City of Rehoboth Beach. The United States generally accepted accounting standards provide for certain required supplementary information, such as management’s discussion and analysis to accompany the City’s basic financial statements. As part of the engagement, the auditing firm will apply certain limited procedures to the City’s required supplemental information. These limited procedures will consist principally of inquiries of management regarding the methods of measurement and presentation, which management is responsible for affirming in its representation letter. Unless the auditing firm encounters problems with the presentation of the required supplementary information or with procedures relating to it, they will disclaim an opinion on it. The following request for supplementary information is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited:
1. Management’s Discussion and Analysis
2. Budgetary Comparison Schedule
3. Pension Plan Funding Progress
AUDIT OBJECTIVE
The objective of the audit is the expression of opinions as to whether the City’s basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the additional information referred to above when considered in relation to the basic financial statements taken as a whole.
OTHER AUDIT SERVICES
The auditor shall assist as necessary in the implementation of new GASB standards during the term of the audit services. The City may elect to early implement standards at its discretion.
The City expects that, should matters come to the attention of the auditor, a management letter will be issued. Any significant management letter comments must be reviewed with the Finance Director and the City Manager before the issuance of the letter.
It is expected that the auditor will attend one meeting of the City Audit Committee on an annual basis to detail the audits results and findings.
It is expected that the auditor is available to city personnel throughout the year for periodic consultation on financial and accounting matters as appropriate.
AUDIT TIMING
Field work may start in June. Exact dates will be determined jointly by the City’s Finance Director and the selected firm.
On-site field work should be limited to three weeks.
CITY RESPONSIBILITIES
The City is responsible for making all financial records and related information available to the auditing firm and for the accuracy and completeness of that information. The City’s financial software package (Munis) maintains the accounting, payroll, and utility billing records of the City. The City will generate trial balances, general ledger, revenue/expenditure reports, and any other reports that are agreed upon during the audit planning process.
As part of the audit, the auditing firm will prepare a draft of the financial statements and related notes. In accordance with Government Auditing Standard, the City will be required to review and approve those financial statements prior to their issuance and have a responsibility to be in a position in fact and appearance to make an informed judgment on those financial statements. Further, The City is required to designate a qualified management-level individual (the Finance Director) to be responsible and accountable for overseeing the auditing services.
AUDIT PROCEDURES
The audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify deficiencies. However, during the audit, the auditing firm will communicate to management and those charged with governance internal control related matters that are required to be communicated under professional standards.
AUDIT PROCEDURES – COMPLIANCE
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, the auditing firm will perform test of the City’s compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of the audit will not be to provide an opinion on overall compliance by the City.
