City of Lula
6055 Main St. (P.O. Box 99), Lula GA 30554
REQUEST FOR PROPOSALS # (“RFP”)
Financial Audit Services
Proposals are due:
March 10, 2025; no later than 2:00 p.m. EST
Sealed proposals (“Proposals”) must be received by the City of Lula (“City”) no later than March 10, 2025, 2:00 p.m. EST. The city will only accept printed copy submissions (one hard copy with an electronic copy thumb drive). Any Proposal submitted in any other format (e-mail, fax, mail, etc.) will not be accepted for any reason.
General Information:
1. All communications regarding this procurement must be with Franklin Etheridge, Assistant City Manager, frank.etheridge@cityoflula.com.
2. All questions or requests for clarification must be sent to frank.etheridge@cityoflula.com
Questions are due no later than February 24, 2025, 5:00 p.m. EST. Questions received after this date and time may not be answered.
3. Questions and clarifications will be answered in the form of an addendum to this RFP. Any addenda, schedule changes and other important information regarding this procurement will be posted on the City’s website www.cityoflula.com. It is the Offeror’s responsibility to check the website for any addenda or other communications related to this procurement.
4. The City reserves the right to reject all submitted Proposals and to waive technicalities and informalities, and to make award in the best interest of the City.
5. An Offeror’s RFP checklist is provided for convenience below. This checklist is provided for assistance only and should not be submitted with the Proposal.
TABLE OF CONTENTS
PROPOSAL SIGNATURE AND CERTIFICATION
CORPORATE CERTIFICATE
OFFEROR’S RFP CHECKLIST
SECTION 1: BACKGROUND
SECTION 2: SCOPE OF SERVICES
SECTION 3: SUBMITTALS
SECTION 4: CONTENTS OF PROPOSALS, CRITERIA EVALUATION AND SELECTION PROCESS
SECTION 5: PRE-SUBMITTAL INQUIRIES
SECTION 6: COMMUNICATIONS
SECTION 7: SCHEDULE OF EVENTS
SECTION 8: TERMS AND CONDITIONS
PROPOSAL SIGNATURE AND CERTIFICATION
I certify that this Proposal is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a Proposal (“Offeror”) for the same materials, supplies, equipment, or services and is in all respects fair and without collusion or fraud. I understand collusive bidding is a violation of state and federal law and can result in fines, prison sentences, and civil damage awards. I agree to abide by all conditions of this Proposal and certify that I am authorized to sign this Proposal for the undersigned Offeror. I further certify that the undersigned Offeror has not violated the provisions of O.C.G.A. § 45-10-20, et seq. and will not violate them in any respect.
Authorized Signature for Offeror: _____________________________________________________________
Date: ____________________________________
Print/Type Offeror Name Here: ______________________________________________________________
Company Name: ______________________________________________________________
CORPORATE CERTIFICATE
I, ____________________________________, certify that: I am the _________________ of the entity named as Offeror in the foregoing Proposal; that ______________________________________________, who signed said Proposal on behalf of the Offeror, was then (title) __________________ of said entity; that said Proposal was duly signed for and in behalf of said entity by authority of its governing body, and is within the scope of its corporate powers; that said entity is duly authorized to do business in the State of Georgia.
This _____________ day of ___________________________, 2024.
________________________________________________________________________
(Signature)
(Seal)
Corporate Name: _____________________________________________________
d/b/a: _____________________________________________________
OFFEROR’S RFP CHECKLIST
9 Critical Things to Keep in Mind When Responding
to an RFP for the City of Lula
1. _______ Read the entire document. Note critical items such as: supplies/services required; submittal dates; number of copies required for submittal; contract requirements, if any (e.g. bonding and insurance requirements).
2. _______ Note the Procurement Officer's name, address, phone numbers and e-mail address. This is the only person you are allowed to communicate with regarding the RFP and is an excellent source of information.
3. _______ Attend the pre-Proposal meeting. These meetings provide an opportunity to ask questions, obtain a better understanding of the procurement, or to notify the city of any ambiguities, inconsistencies, or errors in the RFP. This meeting is voluntary, but all potential Offerors are strongly encouraged to attend.
4. _______ Take advantage of the “question and answer” period. Submit your questions to the Procurement Officer by the due date listed in the RFP and view the answers given in any formal “addenda” issued for the RFP. All addenda issued for an RFP will be distributed by e-mail to Offerors.
5. _______ Follow the format required in the RFP when preparing a Proposal. Provide point-by-point responses to all sections in a clear and concise manner.
6. _______ Provide complete answers/descriptions. Read and answer all questions and requirements. Don’t assume the City or Evaluation Committee will know what your capabilities are or what items/services you can provide, even if you have previously contracted with the City. Proposals are evaluated based on the information and materials provided in response to the RFP.
7. _______ Use the forms provided, e.g. cover page, reference questionnaire, etc.
8. _______ Review the RFP document again to make sure that you have addressed all requirements.
9. _______ Submit the Proposal on time. Note all the dates and times listed in this RFP, and be sure to submit all required items on time. Late Proposals will not be accepted.
This checklist is provided for assistance only and should not be submitted with your Proposal.
SECTION 1: BACKGROUND
In accordance with Georgia Law on Local Government Audits, O.C.G.A. § 36-81-7, the City of Lula (“City”) requires an independent annual audit. The City is therefore issuing this RFP seeking responses (“Proposals”) to locate and select a qualified Certified Public Accountant (“Auditor”) to perform financial and compliance auditing services in accordance with generally accepted auditing standards (GAAS), as set forth by the American Institute of Certified Public Accountants (AICPA). Audits shall be performed in accordance with generally accepted government auditing standards issued by the Comptroller General of the United States. If a Single Audit is required as a part of the annual audit, the audit shall be performed in accordance with AICPA standards, Government Auditing Standards, the provisions of the federal Single Audit Act and the U.S. Office of Management and Budget (OMB). The term of the contract resulting from this procurement will be for an initial term of one year with annual renewals for an additional year. This RFP includes the same services on behalf of a selected component or potential component units of the city, as described later in this RFP.
SECTION 2: SCOPE OF SERVICES
GENERAL INFORMATION
The City operates under a council/manager form of government, where the Council is the legislative authority, and the Mayor possesses all of the executive powers granted to the government under the constitution and laws of the State of Georgia and the City charter. The City Manager maintains all of the administrative powers granted to the government under the constitution and laws of the State of Georgia and the City charter. The City is empowered to levy a property tax on both real and personal property located within its boundaries and is qualified to levy all other taxes granted to municipalities within the State of Georgia.
The 2023 Financial Report contains additional information about the City, particularly in the Transmittal Letter and Management’s Discussion and Analysis. The Financial Report can be found at: www.cityoflula.com
City government is organized into eight (8) departments identified as:
Mayor/ Council
Administration
Municipal /Court
Public Works
Marshall Bureau
Sewer
Water
Solid Waste
City Governmental Funds:
The following Governmental Funds are included in the audit entity:
Fund Number Name
100 General Fund
230 ARPA
274 Street Light District
278 Special Revenue Utility District
323 Banks County SPLOST 2017
329 Hall County SPLOST 2017
505 Water/Sewer
540 Solid Waste
Banks County TE SPLOST
The following component units are discretely presented in the reporting entity:
• The Development Authority is a public authority used to strengthen and redesign the business districts of Lula. The Development Authority complies with any provisions relative to the expenditure of said revenue contained in O.C.G.A. 36-42-1 as now or hereafter in effect and any other criteria deemed proper by the mayor and city council.
City Accounting System and Records
The City’s accounting records are maintained through Harris’s Accounting + Financial Software. This governmental system is a fully integrated accounting system that includes purchasing, budgeting, cash receipts, fixed assets, payroll and Human Resources related activities.
The City’s accounting records are maintained on the accrual or modified accrual basis, and the city records all payables and receivables at year-end. The City’s annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds. All annual appropriations lapse at fiscal year-end.
The City Clerk/Treasurer is responsible for maintaining the City’s accounting records. The City Clerk/Treasurer is responsible for audit coordination and will be available as needed to confer with audit staff, answer questions, and ensure that necessary information is provided to the auditor on a timely basis.
City Staff’s Audit Participation
In terms of performing the audit, the Auditor's principal day-to-day contact with the City will be the City Clerk/Treasurer, who will coordinate City staff’s assistance to be provided to the Auditor. The city does not have an audit committee.
Following the format provided by the Auditor, City staff will prepare confirmation letters to banks, paying agents, and grantors. City staff will prepare supporting detail schedules for general ledger account balances. Staff will prepare reconciliations of due to and due from accounts and inter-fund transfer accounts among funds. City staff will pull any requested documents, including journal entries and accounts payable vouchers.
Adequate audit workspace will be provided. The Auditor will be provided with copies of Harris’s Accounting+ reports, including fund trial balances, detailed general ledger, and other reports as requested. Prior year audit reports and working papers, as well as management letters will be made available upon request.
SCOPE OF SERVICES
Proposals are requested for an examination and expression of opinion on the fair presentation of the basic financial statements in conformity with GAAP. The examination must be performed in accordance with GAAS Standards, as set forth by the AICPA, and in accordance with Government Auditing Standards issued by the Comptroller General of the United States.
If a Single Audit is required as a part of the annual audit, the audit shall be performed in accordance with AICPA Standards, Government Auditing Standards, the provisions of the federal Single Audit Act and the U.S. Office of Management and Budget (OMB).
The audit must also meet the requirements of the applicable laws of the State of Georgia. The Auditor will audit the financial statements of the governmental activities, the business –type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information and the respective changes in financial position and, where applicable, cash flows, thereof [and the respective budgetary comparison for each governmental fund] in conformity with the Governmental Accounting Standards Board as mandated by GAAS.
In addition to determining whether the combining and individual non-major fund financial statements are fairly stated in all material aspects in relation to the basic financial statements, the audit will also include the following Required Supplementary Information (RSI):
• Management’s Discussion and Analysis (MD&A).
• Schedule of Funding Progress – Retirement Plan.
• Budgetary comparisons for the General Fund.
Supplementary information other than RSI also accompanies the basic financial statements. The following supplementary information will be subjected to the auditing procedures applied in the audit of the basic financial statements and the auditor will provide an opinion on it in relation to the basic financial statements:
1. Schedule of expenditures of federal awards.
2. Combining and individual fund statements.
The following additional information accompanying the basic financial statements will not be subjected to the auditing procedures applied in the audit of the basic financial statements, and no opinion will be expressed on them:
• Introductory section.
The scope of work for the component units is similar to what is required by the city.
Preparation of Financial Statements
The City intends to issue annually a Financial Report prepared in accordance with generally accepted government accounting principles and all applicable federal and state requirements.
City Finance staff will provide trial balances for all funds. The Auditor will prepare the draft financial statements, schedule of expenditures of federal awards, and related notes. Management will be responsible for making all management decisions and performing all management functions related to the financial statements, schedule of expenditures of federal awards, and related notes, and will approve and accept responsibility for them prior to their issuance.
City Finance staff will prepare the Management Discussion and Analysis of the report of the report for inclusion in the Financial Statements.
Throughout the contract period, the Auditor shall advise the City on implementation of new accounting standards as promulgated by authoritative bodies. The Auditor shall also give advice to the City on specialized accounting questions that may arise. The City acknowledges its responsibility for the reliability, accuracy, and completeness of all financial preparations.
The preparation of financial statements for the component units is similar as to what is required by the City.
Required Audit Reports
The City will require the following reports for each year of the audit contract:
A. A report on the fair presentation of the basic financial statements in the Financial Report.
B. A report on the Schedule of Federal Financial Assistance, and all reports on compliance and internal control necessary to meet the Single Audit Act. A report on State Statutory Grants, if applicable.
C. A report on compliance and on internal controls over financial reporting based on an audit of financial statements performed in accordance with government auditing standards.
D. An Audit Progress Report to be made each week to the City Clerk/Treasurer by the audit manager. The report will update the city on areas covered during the week, findings in those areas, recommendations for improvements, and open items needed to complete the audit.
Recommendations for improving the City’s accounting procedures, internal accounting controls, and related areas should be developed by the Auditor during the course of the examination. Areas in need of improvement should be communicated verbally during the weekly meetings described above. In conjunction with the issuance of the Financial Report and audit report, the findings and recommendations for improvement should be summarized in a draft report (Management Letter). The draft is to be delivered to the Assistant City Manager for review and a work plan will be prepared to address the recommendations.
Following the review, the Auditor may be required to participate in a conference with the City Manager to discuss the management letter and the work plan drafts. In addition, the auditors may be required to present the management letter to the City Council in a regularly scheduled meeting or work session.
Required Audit Time Schedule
Please note that work under this proposed contract will be effective for Fiscal Year Ending June 30, 2025. The City’s fiscal year runs from July 1 through June 30. For each fiscal year, the audit is to be scheduled so that the Financial Report is issued prior to December 31, with the goal date being December 10.
Following the signing of the audit contract, a pre-audit conference will be held by the selected Auditor and the City finance staff. At this time a detailed schedule for the FY 2025 audit will be developed. A similar conference will be held each year of the contract. The City reserves the right to specify the order in which funds are to be audited each year. Proposed bond issues or other events may require that a particular fund be given priority.
In January of each year, the Auditor shall provide the City with an estimated breakdown by service of audit costs for the following fiscal year, for budgetary purposes.
When the audit is billed, the actual breakdown by service shall be provided. Audit costs shall be billed after service is provided and will be paid within thirty (30) days of receipt of invoice. Audit working papers are to be retained for at least five (5) years and are to be made available for examination by authorized representatives of the City and other governmental agencies. Working papers are also to be available for review by successor auditors, and the Auditor shall respond to reasonable inquiries from a successor firm.
The selected Auditor shall prepare draft financial statements, notes and all required supplementary schedules, with the exception of the Transmittal Letter and Management Discussion and Analysis section by November 20. The City Manager shall provide all recommendations, revisions and suggestions for improvement to the reports to the selected Auditor by November 30. The City will provide draft of Management Discussion & Analysis to selected auditing firm by November 30 for auditors’ review. A revised report, along with reviewed Management Discussion & Analysis, shall be delivered to the City by November 30.
The city will complete the review of the City’s final draft report as expeditiously as possible. It is not expected that this process should exceed one week. During that period, the Auditor shall be available for any meetings that may be necessary to discuss the audit reports and shall provide any additional work paper support for any financial statements in the report, which will include government-wide conversion worksheets. Once all issues for discussion are resolved, the final signed report shall be delivered to the City within five (5) working days. It is anticipated that this process will be completed and the final report delivered to the City by December 10.
The City will also prepare and submit all continuing disclosure requirements for any bond issues requiring such disclosure.
Audit time schedule for component units should be developed with the goal to submit required tax reports in a timely matter.
Audit Objectives
The audits shall be designed to accomplish the following objectives:
A. To determine whether the financial statements present fairly the financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information, and the changes in financial position and cash flows, where applicable, in conformity with GAAP.
B. To determine whether the combining and individual non-major fund financial statements are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
C. To obtain an understanding of internal control over financial reporting sufficient to plan the audit by performing procedures to understand both the design of controls relevant to an audit of financial statements and whether they have been placed in operation, and assess control risk, in accordance with the AICPA Statement on Auditing Standards (SAS) Number 55, Consideration of Internal Control in a Financial Statement Audit, as amended by SAS Number 78, Consideration of Internal Control in a Financial Statement Audit: An Amendment to SAS No. 55; and SAS No. 94, The Effect of Information Technology on the Auditor’s Consideration of Internal Control in a Financial Statement Audit.
D. To provide reasonable assurance that the financial statements are free of material misstatements resulting from violations of laws and regulations that have a direct and material effect on the determination of financial statement amounts in accordance with SAS Number 54, Illegal Acts by Clients, as described in SAS Number 74, Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of Governmental Financial Assistance, and to provide reasonable assurance about whether the financial statements are free of material misstatements (whether caused by error or fraud), as described in SAS Number 99, Consideration of Fraud in a Financial Statement Audit (as amended by SAS Nos. 82, 96 and 98). The Codification of Statements on Auditing Standards, Section AU 317 requires the auditor to consider laws and regulations that are generally recognized by auditors to have a direct and material effect on the determination of financial statement amounts. The auditor’s responsibility to detect and report misstatements resulting from illegal acts having a direct and material effect on the determination of financial statement amounts is the same as that for misstatements caused by error or fraud. In addition, the auditor should be aware of the possibility that illegal acts that may, in particular circumstances, be regarded as having material but indirect effects on financial statements may have occurred. If specific information comes to the auditor’s attention that provides evidence concerning the existence of possible illegal acts that could have a material indirect effect on the financial statements, the auditor should apply audit procedures specifically directed to ascertaining whether an illegal act has occurred.
E. To provide reasonable assurance of detecting material misstatements resulting from violations of provisions of contracts or grant agreements that have a direct and material effect on the determination of financial statement amounts or other financial data significant to audit objectives. If specific information comes to the auditors’ attention that provides evidence concerning the existence of possible violations of provisions of contracts or grant agreements that could have a material indirect effect on the financial statement amounts or other financial data significant to the audit objectives, auditors should apply audit procedures specifically directed to ascertaining whether violations of provisions of contracts or grant agreements have occurred or are likely to have occurred. In addition, auditors should be alert to situations or transactions that could be indicative of abuse, and if indications of abuse exist that could significantly affect the financial statement amounts or other financial data, auditors should apply audit procedures specifically directed to ascertain whether abuse has occurred and the effect on the financial statement amounts or other financial data.
F. To consider the results of previous audits and attestation engagements and follow up on known significant findings and recommendations that directly relate to the objectives of the audit being undertaken.
G. To ensure that audit documentation related to planning, conducting, and reporting on the audit contains sufficient information to enable an experienced auditor who has had no previous connection with the audit to ascertain that sufficient evidence supporting the auditors’ significant judgments and conclusions was examined. The audit documentation should contain support for findings, conclusions, and recommendations before auditors issue their report.
H. To determine whether the government entity complied with laws, regulations, and the provisions of contracts or grant agreements pertaining to federal awards that have a direct and material effect on each major program. With regard to internal control over compliance, the auditor is required to do the following (in addition to the requirements of Government Auditing Standards): (1) perform procedures to obtain an understanding of internal control over federal programs that is sufficient to plan the audit to support a low assessed level of control risk for major programs, (2) plan the testing of internal control over major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program, and (3) perform tests of internal control (unless the internal control is likely to be ineffective in preventing or detecting noncompliance).
I. To verify and test expenditures of the Special Purpose Local Option Sales Tax proceeds. In accordance with State law, a schedule with be included in each annual audit that shows the original estimated cost, the current estimated cost, amounts expended in prior year, and amounts expended in the current year. The auditor shall verify and test expenditures sufficient to provide assurance that the schedule is fairly presented in relation to the financial statements.
J. To certify that funds were expended in compliance with the expenditure requirements of the Official Code of Georgia Annotated, Section 46-5-134 for governments collecting and expending any 911 charges or wireless enhanced 911 charges. This Code section requires that an annual report of collections and expenditures be prepared and certified by the recipient local government.
Detailed Services Required: Reporting Requirements
A. The Auditor will prepare the required audit reports including those required by Government Auditing Standards, provision of the federal Single Audit Act and the U.S. Office of Management and Budget, and the OCGA at the completion of the audit.
B. Standard report on the financial statements for government entity and its component units. Reference should be made that the audit was conducted in accordance with generally accepted government auditing standards. The Auditor should include in their report on the financial statements either (1) description of the scope of the auditors’ testing of internal control over financial reports and compliance with laws, regulations and provisions of contracts or grant agreements and the results of those tests or (2) reference to the separate report(s) containing this information and state that the separate report is an integral part of the audit and should be considered in assessing the results of the audit.
C. Reference: Audit in Accordance with Government Auditing Standards Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The report should describe the scope of the auditor’s testing of compliance with laws and regulations and present the results of those tests. The report should also describe the scope of the auditor’s testing of internal control and present the results of those tests. Also, separate identification and written communication of all reportable conditions, including those reportable conditions that are individually or cumulatively material weaknesses, is required. As stated in paragraph 5.12 of Government Auditing Standards, “auditors should report, as applicable to the objectives of the audit (1) deficiencies in internal control considered to be reportable conditions as defined in AICPA standards, (2) all instances of fraud and illegal acts unless clearly inconsequential, and (3) significant violations of provisions of contracts or grant agreements and abuse”.
D. Reference: Report on Internal Controls for Audit in Accordance with Generally Accepted Auditing Standards. A report on reportable conditions is required in accordance with the AICPA’s Codification of Statements on Auditing Standards, Section AU 325.
E. Single Audit: Reference Audit in Accordance with Government Auditing Standards. Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circulars. The auditor is required to express an opinion on whether the government entity complied with laws, regulations, and with the provisions of contracts or grant agreements, which could have a direct and material effect on each major program and, where applicable, refer to a separate schedule of findings and questioned costs. The report on internal control over major programs should describe the scope of testing internal control and the results of the tests, and, where applicable, refer to a separate schedule of findings and questioned costs.
F. Single Audit: In accordance with OMB Circulars, the auditor’s report(s) may be in the form of either combined or separate reports. The auditor’s report(s) shall include an opinion as to whether the financial statements are presented fairly in all material respects in conformity with GAAP and an opinion as to whether the schedule of expenditures of federal awards is presented fairly in all material respects in relation to the financial statements taken as a whole. Auditors should follow the guidelines contained in the AICPA’s Audit Guide: Audits of States, Local Governments, and Not-for-Profit Organizations Receiving Federal Awards (Chapter 10 contains guidance on auditor reporting requirements and other communication considerations).
G Single Audit: In accordance with OMB Circulars, a schedule of findings and questioned costs is required and should include the following three components: (1) a summary of the auditor’s results; (2) findings related to the financial statements which are required to be reported in accordance with generally accepted government auditing standards; and (3) findings and questioned costs for federal awards.
H. If applicable; Report on Grants to Municipalities program, as defined in OCGA §§ 36-40-40 and 36-40-20.
The City will require the Auditor to provide information relating to regulation changes that would affect the City and its operations, such as changes proposed by GASB, FASB, AICPA or GAO.
The city will request the Auditor’s overall evaluation of the efficiency and adequacy of accounting procedures, assistance with the implementation of any new GASB statements and educational/ training to staff on an as needed basis.
The City will request the accounting firm to grant permission to use the Auditor’s Opinion in the Official Statement of any future bond issues. In addition, the auditor shall be required, if requested by the City, fiscal advisor and/or underwriter, to issue a “consent and citation of expertise” as the auditor and any necessary “comfort letters”. The City may request assistance in preparing official statements or other documents or disclosure related to sales of debt instruments for any future bond issues.
A written Management Letter containing matters not included in the Auditor’s report on compliance and on internal control over financial reporting shall be prepared and presented to the government entity’s director at the conclusion of each audit. This letter shall address all exceptions in accounting practices, immaterial instances of noncompliance with laws and regulations, and deficiencies in the internal control that are not reportable conditions as defined in AICPA’s Codification of Statements on Auditing Standards, § AU 325. Such immaterial instances of noncompliance and deficiencies in internal control that are not reportable conditions should be referred to in the report on compliance and on internal control over financial reporting (see Government Auditing Standards, paragraphs 5.16 and 5.20. It is important to note that all audit findings required to be reported under OMB Circular A-133 must be included in the schedule of findings and questioned costs; a separate letter may not be used to communicate such matters to top management in lieu of reporting them as audit findings in accordance with OMB Circulars. The Auditor shall offer recommendations for appropriate corrective action for each item contained in the management letter.
Any other reports required shall be submitted to the government entity upon request.
At the conclusion of the engagement, the Auditor will complete the appropriate sections of the Data Collection Form that summarizes the audit findings and will coordinate with Finance staff the electronic submission and certification.
All working papers and reports must be retained, at the Auditor’s expense, for a minimum of five (5) years, unless the Auditor is notified in writing by the City of the need to extend the retention period. The Auditor shall make working papers available upon request by the City. In addition, the Auditor shall respond to the reasonable inquires of successor auditors and allow successor auditors to review working papers relating to matters on continuing accounting significance.
A preliminary draft of all reports shall be submitted to the government entity prior to their release. The government entity will review and approve the release of all draft reports.
Other Audit Provisions
The City may, at any time during the contract period, make changes within the general scope of the contract and its technical provisions. If such change causes any increase or decrease in the Auditor’s cost of performance, an adjustment will be made in contract price, or in time allowed for performance, or both, and a written memorandum of such adjustment shall be made. Any claim by the Auditor for such an adjustment shall be made in writing and prior to proceeding with the service for which an adjustment is requested. Nothing in this clause shall excuse the Auditor from proceeding with performance of this contract in accordance with its original terms and conditions and any approved changes.
The City is constantly seeking better and more efficient ways of implementing its policies and procedures. It is continually seeking ways to improve, and it is important that the Auditor be prepared to actively participate in the improvement process. The city welcomes constructive suggestions, both during the audit and in the Management Letter.
Additional information about the City’s accounting policies is contained in the Notes to Financial Statements in the Financial Report.
SECTION 3: SUBMITTALS
Proposals shall be submitted by producing two hard copies and an electronic copy saved to a thumb drive no later than 2:00 p.m. EST on March 10, 2025. A Proposal received after this date and time or at any other location will not be accepted or considered. The city is not responsible for delays caused for any reason. It is the Offeror’s sole responsibility to submit its Proposal before the required deadline. Hard copy, electronic and facsimile submittals will not be accepted.
SECTION 4: CONTENTS OF PROPOSAL, EVALUATION CRITERIA AND SELECTION PROCESS
The RFP and Proposals will enable the city to gather additional information and identify qualified firms to perform the Scope of Services described in Section 2. The city will conduct a comprehensive, fair and impartial evaluation of all Proposals received. An evaluation committee (“Evaluation Committee”) will be established by the City to evaluate Proposals. The City reserves the right, among others, to determine that no qualified Proposals have been received and reject all Proposals.
CONTENTS OF PROPOSAL
A Proposal shall contain two (2) components: a Technical Proposal; and a Cost Proposal. The Technical Proposal and Cost Proposal shall contain the information described below. They must be submitted separately. It is not necessary or desirable to prepare an elaborate or extensive Proposal for this Project; detailed brochures, documentation, artwork, or other superfluous embellishments are unnecessary and are, in fact, discouraged.
A. Technical Proposal Requirements
In determining the capabilities of an Offeror to perform the services specified herein, the following technical requirements must be met by the Offeror. (Note: Each item must be thoroughly addressed. Offerors taking exception to any requirements listed in this section may be found non-responsive or be subject to ranking reductions.)
1. Basic Information and Experience of the Offeror
a. Firm Experience. Submittals should provide information about the Offeror and should address the qualifications and depth of experience of the firm’s local office in conducting governmental audits of cities of similar size, and local government units that receive state and federal funding; including Single Audits and FINANCIAL REPORT preparation (please identify FINANCIAL REPORT preparation experience). Include:
Name of firm
Address of firm headquarters
Address of local office
Name of primary contact person(s) at local office and telephone number
Number of employees
Total government audit staff in firm
Total Government audit staff in local office
Founding date of firm
Founding date of local office
List audits performed for local governmental units in last three (3) years. List name of government, specify fiscal year for which audit performed, whether FINANCIAL REPORT prepared, whether GFOA certificate received, whether Single Audit, and whether ARRA funding received
Number of audits for local governmental units in which local office participated in the last three (3) years
Number of these that were Single Audits
Number of Financial Reports prepared for local governmental units by local office in last three (3) years
Attach an affirmation of proper licensing for public practice as a CPA in the State of Georgia.
b. Qualification of Local Office Staff. It is mandatory that an Offeror be properly licensed for public practice in the State of Georgia as a Certified Public Accountant, and that the Offeror meets the independence requirements of the GAO Audit Standards.
c. Offeror’s Audit Team. Identify the partner, manager, and in-charge accountant who will be assigned to this project if successful, and provide biographies the following information:
Name
Title
Position on Audit
Degree(s)
Certification(s)
Added training
Years of professional experience
Years with Offeror entity
Audits performed/FINANCIAL REPORTs prepared for local governments in last three (3) years:
Responsibility on each engagement listed
Other qualifications
Resumes and Qualifications of Local Office Staff Assigned to City’s Audit
Submittals should address the qualifications and experience of each senior and higher-level person to be assigned to the audit.
Qualifications include education, certification, special training and professional activity. Experience should be quantified by degree of responsibility as well as number of years.
Please note that the city has requested information on each senior or higher-level person to be assigned to the audit. If Offeror is not yet ready to make an assignment, it should give information on current staff that may be assigned. At a time, closer to the audit, replacements may be made, subject to approval by the Finance Director.
2. Quality Control and Peer Review
Submittals should address the following:
a. Offeror’s participation in quality-control programs, either AICPA-sponsored or comparable. Include the results of peer reviews during the past three (3) years, and a description of any regulatory action taken by any oversight body against the firm and/or its staff in the last three (3) years.
b. Describe Offeror’s participation in AICPA-sponsored or comparable quality control programs.
c. Include results of peer reviews during the last three (3) years.
d. Describe any regulatory action taken by any oversight body against the firm and/or any staff members in the last three (3) years.
e. Describe any lawsuits in the last three (3) years involving Offeror’s audit services.
f. Attach an affirmation that firm members meet the independence requirements of the GAO Auditing Standard.
g. Include a copy of Offeror’s most recent peer review report, the related letter of comments, and the Offeror’s response to the letter of comments.
3. Client References
Offeror shall provide a minimum of three (3) references of previous and/or current governmental clients who the City may contact for a candid appraisal of Offeror’s services. The most effective references will come from entities, comparable in size to Lula, for which Offeror has provided services very similar to those the City is requesting. References should all preferably be within the last three (3) years.
At a minimum, the Offeror shall provide the company name, the location where the services were provided, contact person(s), customer’s telephone number, a complete description of the service type, and dates the services were provided. Indicate those governmental clients for whom Offeror has prepared FINANCIAL REPORTs and which of those FINANCIAL REPORTs have received the GFOA Certificate of Achievement. These references may be contacted to verify Offeror’s ability to perform the services requested. The City reserves the right to use any information or additional references deemed necessary to establish the ability of the Offeror to perform the conditions of this request. Negative references may be grounds for proposal disqualification.
Include the following information:
a. Name of Client Government Service(s) Provided to Client (Audit/Single Audit/Financial Report Prep).
b. Date(s) of service.
c. Client contact person.
d. Telephone number.
e. Attach a signed letter or statement authorizing the city to contact the listed clients.
f. Identify the five largest clients Offeror (or office) has lost in the past three years and the reasons. Also, discuss, in instances where loss of the client was due to an unresolved auditing or accounting matter, the process of attempting to resolve the issue(s)
4. Approach and Methodology to Audit
a. Describe how Offeror will approach the audit of the organization, including the use of any association or affiliate member firm personnel and the areas that will receive primary emphasis.
b. Address the type of audit program, statistical sampling techniques, and analytical procedures that will be used.
c. Discuss the proposed organization of the audit team and segmentation of the engagement, including estimated time to be spent on each segment by each level of staff. Use this section to address Offeror’s understanding of the City’s objectives and requirements for the audit and Financial Report preparation and explain how Offeror’s audit approach would meet those objectives and requirements.
d. Discuss Offeror’s use of technology in the audit.
e. Discuss the communication process used by Offeror to discuss issues with the management and audit committees of the board.
f. Provide a timeline of the work plan and methods to be used that will convincingly demonstrate to the city what the Offeror intends to do the timeframes necessary to accomplish the work, and how the work will be accomplished.
B. Cost Proposal Requirements
Although cost is a significant factor, it will not be the dominant factor. Cost will be given more importance when all the other evaluation criteria are relatively equal. The general approach is to first identify all qualified, responsive Offerors and then to award a contract to the lowest Cost Proposal in that group.
If there is reason to believe that an unreasonably low-cost Proposal has been made, it will be rejected. One method of measuring reasonableness is to divide the proposed cost by a reasonable average hourly rate to show hours of effort that might be expected.
The following information must be included separately and identified as “Cost Proposal”:
1. Total hours required to complete the Scope of Services for each year by personnel levels (i.e., total hours for partner, manager, supervisor, senior, staff).
2. Total fees for the Scope of Services for each year.
3. Total fees for Financial Report preparation.
4. Amount of professional services, in hours, allowed each year without additional cost to the government entity. Such services will not be directly related to the annual audit.
5. Out-of-pocket expenses for firm personnel (e.g. travel, lodging and subsistence) will not be reimbursed by the city. All estimated out-of-pocket expenses to be reimbursed should be included in the Offeror’s “not to exceed” cost for the contract.
EVALUATION CRITERIA
Proposals will be scored and ranked based upon how well the Offeror demonstrates its knowledge and understanding of the evaluation criteria described herein. The City reserves the right to short list and conduct interviews should the need arise to complete the selection process. The City may award contracts to more than one firm for this project to meet the schedule.
The Technical Proposal evaluation criteria consists of the following: Firm Strength, Project Manager and Project Team; Quality Control and Peer Review Process: Relevant Experience and Client References; and Project Understanding/Approach; with the following weighting to be given each element:
The following factors will be considered during the evaluation:
CRITERIA FOR TECHNICAL PROPOSALS WEIGHT IN EVALUATION
Firm Strength, Audit Manager and Audit Team 30%
Quality Control and Peer Review Process 20%
Relevant Experience and Client References 25%
Understanding of Scope of Services / Approach 25%
TOTAL 100%
Cost Proposals will be reviewed for reasonableness and realism against the City’s independent assessment following evaluation of Technical Proposals.
SECTION 5: PRE-SUBMITTAL INQUIRIES
All questions or requests for clarification shall be sent or directed to frank.etheridge@cityoflula.com.
Questions are due no later than February 24, 2025, 5:00 pm EST. Questions received after this date and time may not be answered.
Questions and clarifications will be answered in the form of an addendum. Any addenda, schedule changes and other important information regarding this procurement will be posted on the City’s website at www.cityoflula.com.
It is the Offeror’s responsibility to check the website frequently for any addenda or other communications related to this procurement.
SECTION 6: COMMUNICATIONS
Questions or comments regarding this procurement shall be submitted in writing via e-mail to the Assistant City Manager ONLY (see address below). The Offeror shall clearly reference the sections and page numbers of the RFP which are applicable to the question(s) or comment(s) submitted.
Note: Oral questions will not be accepted due to the possibility of misunderstanding or misinterpretation.
Offerors are encouraged to submit questions or comments by no later than February 24, 2025, 5:00 p.m. EST, to allow for analysis and dissemination of the City's responses in advance of the Proposal due date. Questions received after this date and time may not be answered.
The principal point of contact for this procurement is the Assistant City Manager, Franklin Etheridge. He can be reached via e-mail at frank.etheridge@cityoflula.com. Until a firm is selected and the selection is announced regarding the procurement, elected officials, Evaluation Committee members, employees of the city, and contracted personnel receiving information and documents regarding this procurement are not allowed to communicate regarding the procurement for any reason with any potential or interested contractors, vendors, City staff, or contracted personnel except through the Assistant City Manager or designated successor.
For violation of this restriction, the City reserves the right to reject the Proposal of any potential or interested contractor or vendor who knowingly participates in such violation. Any City staff or elected officials who violate this restriction acknowledge such conduct may result in an ethics violation pursuant to the City's ethics ordinance and/or disqualification from further participation in, or briefing on, the procurement. All communications concerning this procurement must be directed to the Assistant City Manager.
SECTION 7: SCHEDULE OF EVENTS*
EVENT DATE
RFP Released January 15, 2025
Deadline for Receipt of Inquiries February 24, 2025, 5:00 p.m.
Deadline for Posting Written Answers to Inquiries March 3, 2025
Proposal Due Date March 10, 2025, 2:00 p.m.
*This proposed schedule of events is informational and is subject to change at the discretion of the City.
SECTION 8: TERMS AND CONDITIONS
All Proposals and supporting materials as well as correspondence relating to this procurement become property of the City when received. Any proprietary information contained in the Proposal shall be so indicated; however, a general indication that the entire contents, or a major portion, of the Proposal is proprietary will not be honored.
The following terms and conditions shall also apply:
A. All applicable federal and State of Georgia laws and City of Lula ordinances, licenses and regulations of all agencies having jurisdiction shall apply to Offerors throughout and are incorporated herein.
B. Professionals requiring special licenses shall be licensed in the State of Georgia and shall be responsible for those portions of the work as may be required by law.
C. No Proposal shall be accepted from, and no contract shall be awarded to, any person, firm, or corporation that (i) is in arrears to the City with respect to any debt, (ii) is in default with respect to any obligation to the City, or (iii) is deemed irresponsible or unreliable by the City.
D. The City shall be able to request an Offeror to provide satisfactory evidence that it has the necessary financial resources to accomplish the requirements of the contract.
E. From the date this RFP is issued until a consultant is selected, Offerors are not allowed to communicate with any staff or elected officials of the City regarding this procurement, except at the direction of Michelle Collings, Finance Director in charge of this procurement. Any unauthorized contact may disqualify the Offeror from further consideration. Contact information for the single point of contact is as follows:
Franklin Etheridge, Assistant City Manager
City of Lula
6055 Main St.
Lula, Georgia 30553
E-mail: frank.etheridge@cityoflula.com
F. While the City has every intention to make an award as a result of this procurement, issuance of the RFP in no way constitutes a commitment by the City to award and execute a contract. Upon a determination such actions would be in its best interest, the City, in its sole discretion, reserves the right to:
1. Cancel or terminate this RFP at any time. A notice of cancellation will be issued if the RFP is cancelled. Preparation of a Proposal is the Offeror’s sole financial responsibility.
2. The city will not reimburse any Offeror for preparation of its Proposal. Proposals may be returned upon request, if unopened;
3. Reject any or all Proposals received, make a contract award based directly on the Proposals received in the best interest of the City, in its sole discretion, or enter into further discussions with one (1) or more Offerors;
4. Waive and/or amend any undesirable, inconsequential, or inconsistent provisions/specifications of this RFP which would not have significant impact on any Proposal:
5. Make partial award or no award if it is in the best interest of the city to do so; and
6. Terminate any contract if the City determines adequate funds are not available or for any other reason if the City determines such action to be in its best interest.
3/21/2025