RFP # 20 26-BUS-001 - Internal Audit

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Edgemont Union Free Sch ool District
Busines s Office
300 White Oak Lane
Scarsdale, NY 10583
Edgemont Union Free School District
The Board of Education of the (hereinafter referred to as the
"District") hereby invites the submissioInN oTfE pRrNopAoLs aAlUs DfoIrT tIhNeG f ollowing professional services:
RFP # 2023-BO-002
Due Date: March 15, 2023
Specifications and forms may be obtained from the District Main Office through Amy Moselhi or
online at our district page beginning February 20, 2023. All addenda will be transmitted via posting
on our district website.
The district is not responsible for proposals opened prior to the time and date of the opening if the
identifying information does not appear on the envelope. Proposals opened prior to the time and
date of the opening are invalid. The district reserves the right to accept each proposal by individual
item, by category, by groups of items or as a whole, or in its discretion, to reject all proposals.
The district also reserves the right to waive any informality in the proposal process if determined to
be in the best interest of the district. Proposals opened and read shall remain irrevocable for the
contract period. The award of contracts, if at all, shall be made as soon as practicable after the
opening. Any quantities, if shown, are estimates and not guaranteed.
The Board of Education reserves the right to consider qualification, experience, and reputation, as
well as the specific qualifications of a proposer set out herein, in considering proposals and
awarding the contract. The board of education reserves the right to reject any or all proposals in its
discretion.
By order of the Board of Education
Purchasing Agent Dated: February 15, 2023
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Edgemont Union Free School District RFP # 2023-BO-002 INTERNAL AUDITING
INTRODUCTION
Edgemont Union Free School District is issuing this Request for Proposals (RFP) for the selection of an
aPcUcRouPnOtSinEg O fiFr mTH toE pReFrPfo rm the internal audit function of the district for the year ending June 30, 2024.
This request is for the purpose of selecting a qualified and experienced auditing firm for the Edgemont Union
Free School District ("EUFSD"). An initial one-year contract is considered, said contract being subject to the
annual review by the Superintendent and the Board of Education.
Upon recommendation of the Superintendent of Schools, the contract may be extended for additional one-year
periods subject to the approval by the Board of Education. Under no circumstances will the initial term of the
Agreement and any renewals thereof exceed a total of five years. Notwithstanding the foregoing, the Board of
Education reserves the right to terminate this contract for any reason as set forth in the form of Agreement
annexed hereto.
The objective of this RFP is to solicit proposals for the provision of professional services for accounting and
auditing in connection with an annual audit, more fully described below.
Specifically, the individual (firm) selected as a result of this Request for Proposals will be expected to perform
his/her/its services in accordance with any or all of the terms of the
agreement annexed hereto as Exhibit "A". As part of the RFP, Proposers should identify in detail the manner in
wBRhIicEhF tDheE SsCerRvIiPceTsI OreNq uOiFre TdH wEi lDl IbSeT aRcIcCoTm plished by him/her/it.
Edgemont Union Free School District is located in the Town of Greenburg City of Scarsdale, Westchester County,
New York.
Enrollment: 1,956 students enrolled in grades K-12
Schools: Seely Place Elementary School; Greenville Elementary School; Edgemont Junior Senior Highschool.
BOCES: Board of Cooperative Education Services of Southern Westchester County
The Board of Education is comprised of seven (7) members as follows:
Financial Management:
Superintendent of Schools: Dr. Kenneth R Hamilton
Assistant Superintendent for Business and Administration: Mr. Bryan Paul
District Treasurer: Ms. Amy Moselhi
Audit Committee: Board of Education as Committee of the Whole
Operational Items:
All departments are under the general supervision of the Asst. Superintendent - Business and Administration
("ASB"):
Facilities - All custodial and maintenance personnel are School District employees under the direct supervision
of Facilities Director, Rosario Renda.
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Food Service - The food service program is managed via School District contract with Whitson's Culinary Group.
Transportation - EUFSD is a part of the Ardsley Consortium. We are mainly walking to school district.
Budget:
Edgemont Union Free School District 's operating budget for the 2022-23 school year is $67,026,024 and was
approved by the voters in May of 2022. The district prepares its budget on a basis consistent with a modified
accrual basis of accounting. Appropriations lapse at fiscal year-end and encumbrances are shown as a
reservation of fund balance and are honored through the expenditures for the subsequent year. Edgemont
Union Free School District uses the fund types in its financial reporting: general fund (legally adopted annual
budget); special revenue fund; special aid fund; school lunch fund; debt service fund; capital projects fund;
fiduciary fund; agency fund; and extra classroom activity fund.
Computer systems:
Edgemont Union Free School District uses nVision for its various accounting and payroll functions. All
accounting and payroll operations are performed in-house on District owned computers. The system maintains
all journals and ledgers.
Claims Auditor Functions:
The External Audit Function is performed by an independent company, PKF O'Connor Davies. The Claims Audit
function is performed by Tobin & Company LLP.
The district will be providing workspace, desks and chairs or access to a telephone line, photocopying facilities,
aPnRdO aP FOASXA Lm DacUhEin DeA. TE
Proposals will be accepted up until 3:00 pm on March 15, 2023 in the District Main Office, Edgemont Union Free
School District 300 White Oak Ln, Scarsdale NY 10583 and mailed to the attention of Amy Moselhi, Assistant
BPuRsEi-nPeRssO OPfOfiScAiaLl. Q UESTIONS
MAlal rqcuhe 1st0i,o 2n0s2 m3.ust be submitted in writing via e-mail to Amy Moselhi emoselhi@edgemont.org no later than
3:00 pm, March 6, 2023. All questions and answers will be posted on the district website no later than 3:00 pm,
The District reserves the right to amend the RFP based on questions and issues raised at any
StiCmOeP pEr iAoNr Dto R thEeQ RUFIRP EsMubEmNiTssSi on deadline.
The Annual Audit of all funds of the Edgemont Union Free School District shall be performed in accordance
with:
Statement on Auditing Standards (SAS) 54
Illegal Acts by Clients; SAS99
Consideration of Fraud in a Financial Statement Audit
Management Anti-fraud Programs and
Controls (an attachment to SAS 99)
The Auditor will evaluate the adequacy of the internal financial controls of the district with emphasis on areas
vulnerable to fraud and abuse; the adequacy of the school's current financial policies and procedures; and the
adequacy of the district's financial and auditing organizational structure. The Auditor will make use of and build
upon the internal control evaluation work done by the district's independent CPA firm during that firm's annual
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fina*n cial statement audit. The objectives of this engagement are:
* Development of a risk assessment of the district's financial operations, including, but not limited to;
* review of financial policies, procedures and practices.
An annual review and update of the risk assessment.
* Annual testing and evaluation of one or more areas of the district's internal controls, taking into account
risk, control weaknesses, size, and complexity of operations.
Preparation of reports which analyze significant risk assessment findings, recommend changes for
strengthening internal controls and reducing identified risks, and specify time frames for
implementation of such recommendations.
Area*s that may be addressed include but are not necessarily limited to:
*
* Certification of Payroll
* Review of Bank Reconciliation and Treasurer's Report
* Payroll Observations
* Review Check Signing Log
* Fixed Asset Sampling
Perform Testing and Validation functions.
* Make an independent selection of key controls for testing to assure that controls are appropriate and
* are effective when applied.
* Test the design and operating effectiveness of these internal controls to detect deficiencies.
Monitor the internal controls of the district.
* Review any recommendations regarding the internal controls with Business Office personnel and the
Board of Education.
* Based upon the findings, assist the district in the design and implementation of recommended
procedures to ensure the operating effectiveness of the internal control environment.
Report to the Audit Committee of the District on an annual basis.
If the District awards a contract as a result of this RFP, the successful proposer shall defend, indemnify and hold
harmless the District, its employees, officers, agents and Board of Education for all loss, costs, damages and
expenses, including attorneys' fees, judgments, fines and amounts paid in settlement in connection with a
terminated, pending or completed claim, liability, action, suit or proceeding of whatever name or nature as the
same may relate, in any manner, to the services provided by the successful proposer, its officers, directors,
employees and agents pursuant to this Agreement. Said indemnification and defense shall apply to any claim,
liability, suit, proceeding and action in which the School District, its employees, officers, agents and Board of
Education may be named as a party.
If the District awards a contract as a result of this RFP, the successful proposer shall be required to obtain and
maintain the types and amounts of insurance identified and to comply with all insurance requirements
sIRpRecEifGieUdL. ARITIES AND ILLEGAL ACTS
Auditors shall be required to make an immediate written report of all irregularities and illegal acts or
iAnUdDicIaTtiOoRns'S o Rf EillPeOgaRlT a cts of which they become aware to the Superintendent and the Board of Education.
The firm will type and make copies of all reports on its premises and deliver 15 copies and 2 electronic copies
in a USB of all reports to the ASB. Each Board member shall be provided with his/her own copy of the report.
The annual audit report's letter to management shall be attached to or included in the same binder as the
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financial statements. The firm shall advise the ASB as to the proper promulgation of their reports in writing.
The above shall be presented to the Board of Education at a meeting with the Audit Committee, or others
deemed appropriate by the Board of Education at a regularly scheduled public meeting. The Auditor shall work
directly with the Audit Committee in the interpretation of the report for the benefit of the Board of Education in
aTdHvEa nScEeL oEfC iTtsI OpNre PseRnOtaCtEioSnS.
Timetable
The School District is expected to undertake the selection process according to the following schedule:
Deadline for submission of proposals: By March 15, 2023 at 03:00 p.m. Interview firms: To be determined
Selection of Auditor: On or about April 15, 2023
Proposal Evaluation Criteria
Proposals will be evaluated on the basis of the following criteria:
Experience and Qualifications of the Proposer: Consideration will be given to proposers demonstrating strong
capabilities, experience and reputation in undertakings similar to those described in this RFP, and providing
authoritative documentation of their financial soundness and stability. Other consideration includes Auditor's
license to practice in the State of New York. An affirmative statement should be included that the firm and all
assigned key professional staff are properly licensed to practice in the State of New York. The District is
interested in the level and type of government auditing experience of those persons to be assigned to the
engagement. Brief resumes and listing of governmental and school district references are requested as part of
the submission.
Ability to Implement Project Promptly: Preference will be given to proposals demonstrating an ability to carry
out the tasks and responsibilities outlined in the proposal in a prompt and efficient manner including but not
limited to the number of people, by level, to be assigned to the District's audit and their government auditing
experience.
Price: Consideration will be given to the fixed price of the proposal for the services to be conducted in
accordance with the terms of the Agreement annexed hereto as Exhibit "A".
Firm qualifications and experience: The proposer should state the size of the firm's school district audit staff,
the location of the office from which the work on this engagement is to be performed and the number and
nature of the professional staff by level to be employed in this engagement on a full-time basis and the number
and nature of staff to be employed on a part- time basis. Proposer should state whether it participates in a
quality control program by their peers.
Number of New York State school districts that the firm has audited: Include the total years of service for each.
List the engagements performed in the last five years that are similar to that described in this RFP. These
engagements should indicate the scope of the work, date, engagement partners, total hours, and the name and
telephone number of the principal client contact.
Specific Audit Approach: The proposal should set forth a work plan, including an explanation of the audit
methodology to be followed, to perform the services required by this RFP. In developing the work plan,
reference should be made to such sources of information as the District budget and related materials,
organizational charts, manuals and programs, and financial and other management information charts.
Other professional services: Include any services that will be performed for this district in addition to or in
conjunction with the school district financial audit at no additional cost.
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RFP PROCEDURES
Information and Documents
All inquiries regarding this RFP should be directed to: Amy Moselhi, Assistant Business Official
Submission of Proposals
All proposals must be received by the Purchasing Agent no later than March 1, 2023 at 03:00 p.m. Any
proposals received after this time will be returned unopened to the firm.
Each firm shall submit one (1) original proposal and nine (9) copies and (1) one electronic copy (USB) in a
sealed envelope to the following:
Amy Moselhi -Assistant Business Official
Edgemont Union Free School District
300 White Oak Ln
Scarsdale, New York 10583
The envelope should be marked "PROPOSAL FOR INTERNAL AUDITING SERVICES". All proposals and
accompanying documents shall become the property of Edgemont Union Free School District . The District shall
not divulge any information presented in the RFP to anyone outside the District, unless required by law.
Modification or Withdrawal of Proposals
Any proposal may be withdrawn or modified by written request of the Proposer, provided that such request is
received by the District at the above address prior to the date and time set for receipt of proposals.
Right to Reject Proposals
This RFP does not commit the District to award a contract, pay any cost incurred in the preparation of a
proposal in response to this RFP, or to procure or contract for services.
The District intends to award a contract on the basis of the best interest and advantage to the District, and
reserves the right to accept or reject any or all proposals received as a result of this RFP, to negotiate with all
qualified proposers, or to cancel this RFP in part or in its entirety, if it is in the best interest of the District to do
so. The District may select as the successful proposer that proposal which, in the District's sole discretion and
with whatever modifications the District and the proposer may mutually agree upon, best meets the District's
requirements whether or not that proposal is the lowest priced. No proposer shall have any legal, equitable, or
contractual rights of any kind arising out of its submission of a proposal except and to the extent that the
District, in its sole discretion, shall enter into a contract with the proposer that it selects as the successful
vPeRnOdPoOr. SAL FORMAT AND CONTENTS
Proposals must be submitted in the format outlined in this section. In addition to the requirements above, each
of the described parts and sections must be completed in full (except those sections described as optional). Each
proposal will be reviewed to determine if it is complete prior to actual evaluation. The District reserves the
right to eliminate from further consideration any proposal deemed to be non-responsive to the requests for
information contained herein. Each of the parts and sections described below should begin on a separate page,
and each page should state the name of the proposer in the upper right hand corner.
Proposer Background and Qualifications
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The first page of the dollar cost bid should include:
The name of the firm, certification that the person signing the proposal is entitled to represent the firm and
submit the bid/RFP, and is authorized to sign the contract with the District.
A total All-Inclusive Maximum price shall be provided for the costs of the auditing services performed for the
term of this Agreement. This fee should be a flat annual rate and include necessary expenses. The fee should
also cover follow up work, rectifying deficiencies and consultation with all appropriate governmental, non-
governmental and regulatory agencies, as appropriate and provide for advice and counsel to the staff
throughout the terms of this contract. Out of Pocket Expenses included in the Total All-Inclusive Maximum
price, (i.e. travel, lodging, postage and subsistence) will be the responsibility of the Auditor.
All estimated out-of-pocket expenses should be included in the Total All-Inclusive Maximum Price for each
year. A statement must be included in the dollar cost bid stating the Auditor will not seek reimbursement for
travel, lodging, subsistence, or out of pocket costs incurred in connection with the audit of District finances.
It is understood and agreed that the total All-Inclusive Maximum price represents the total annual cost for the
auditing services provided hereunder as described in this Request for Proposals. In the event that the cost of
providing such services is less than the amount proposed by the successful proposer, the successful proposer
shall, at the District's sole option, either provide a refund in the amount of the difference between the actual
cost of the audit and the amount proposed or a credit in the same amount toward the cost of the following
year's audit, if the Agreement is renewed.
Rates by Partner, Specialist, Supervisory, and Staff level and the Times/Hours Anticipated for each. The second
page of the dollar cost bid should include:
A schedule of professional fees and expenses that support the Total All-Inclusive Maximum price.
Names and resumes of personnel to be assigned to this audit, including the partner in charge. It is fully expected
that the personnel indicated will be those assigned to the District.
Please provide an affirmation statement that those assigned have met all continuing professional education
(CPE) requirements necessary to satisfy the United States General Accounting Office (GAO) standards.
Name(s) of individuals in the firm that will be available throughout the term of the contract for continuing
advice and counsel.
Listing of experiences in the performance of the requested services for school districts or municipalities in New
York State, and the years of such experience.
(Optional) include any additional information about the audit team, its personnel, financial condition, or
qualifications regarded as being pertinent.
Conflicts of interest
Responses to this RFP should include an affirmation by the Auditor that there are no conflicts of interest
between the firm and the Edgemont Union Free School District .
Rates for additional professional services
If it should become necessary for the District to request that the Auditor render any additional services to
either supplement the services requested in the RFP or perform additional work as a result of the specific
recommendations provided in any report issued in this engagement, then such additional work shall be
performed only if set forth in an addendum to the contract between the District and the firm. Any such
additional work agreed to between the District and the firm shall be performed at the same rates set forth in
the schedule of fees and expenses included in the dollar cost bid.
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Specific audit approach
The proposal shall set forth a Work Plan to perform the services required in this Request for Proposal,
including an explanation of the audit methodology to be followed. In developing the work plan, reference
should be made to such sources of information as the District budget and related materials, organizational
charts, manuals and programs, and financial and other management information services. Proposers will be
requ*i red to provide the following information on their audit approach:
* Information regarding the ability and scope for testing of controls and processes of financial accounting
* software.
Proposed segmentation of the engagement.
* Level of staff and number of hours to be assigned to each proposed segment of the engagement. No
dollar amounts should be included in the technical proposal.
* Approach to the methodology of sampling and the extent any statistical sampling is to be used in this
* audit.
* Type and extent of analytical procedures to be used in the engagement.
* Approach to be taken to gain and document an understanding of the District's internal control structure.
The approach to be taken in determining laws and regulations that will be subject to audit test work.
Approach to be taken in drawing audit samples for the purpose of tests of compliance.
Report format
The proposal should include sample formats for required reports. These formats should meet or exceed New
York State Department of Education requirements.
Board of Education process
The Board of Education reserves the right to accept or reject any or all proposals or any parts of proposals. The
original copy of all proposals will be kept on file in the Edgemont Union Free School District Purchasing Office.
Form of Proposal
Proposals submitted pursuant to this RFP shall include the Proposer's cost to perform the services as set forth
herein. Proposers are requested to supply a proposal based upon an annual flat fee including necessary
expenses. The proposed annual flat fee should also include costs for follow-up work and for providing advice
and counsel to District staff throughout the term of this contract.
Each proposal will clearly state the fees to be charged for the years ended:
June 30, 2024
June 30, 2025
June 30, 2026
June, 30 2027
Each proposal will clearly state the basis on which special audit or management services will be billed.
Form of Agreement
The successful Proposer shall be required to execute a written Agreement memorializing the terms of this
e ngagement and inclusive of the terms of this RFP.
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INSURANCE
Notwithstanding any terms, conditions or provisions, in any other writing between the parties, the professional
safety consultant (Consultant) hereby agrees to effectuate the naming of the District as an additional insured on
the Consultant's insurance policies, with the exception of workers' compensation, NY State disability and
professional liability. If the policy is written on a claims-made basis, the retroactive date must precede the date
of the contract
The policy naming the District as an additional insured shall:
Be an insurance policy from an A.M. Best rated at least A- insurer, licensed in New York State. The District, at
its sole discretion, may accept an insurer otherwise authorized to provide insurance in New York State.
State that the Consultant's coverage shall be primary and noncontributory coverage for the District, its Board,
employees and volunteers.
a. The District shall be listed as an additional insured by using endorsement CG 2026 or equivalent. The
decision to accept an alternative endorsement rests solely with the District. The certificate must state that this
endorsement is being used. If another endorsement is used, a copy shall be included with the certificate of
insurance. The decision to accept an alternative endorsement rests solely with the District.
b. If so requested, the Consultant will provide copies of the required policies.
The Consultant agrees to indemnify the District for any applicable deductibles or self- insured retentions.
Required Insurance:
Commercial General Liability Insurance
$1,000,000 per occurrence/ $2,000,000 aggregate.
Workers' Compensation and N.Y.S. Disability
Statutory Workers' Compensation, Employers' Liability and N.Y.S. Disability Benefits Insurance for all
employees.
Professional Errors and Omissions Insurance
$2,000,000 per occurrence/ $2,000,000 aggregate for the consulting services being performed, directly or
through sub-consultants, by the Consultant
performed under the contract for the District. If written on a "claims-made" basis, the retroactive date must
pre-date the inception of the contract or agreement. Coverage shall remain in effect for two years following the
completion of work.
If working with students, consultant must show evidence of sexual misconduct coverage.
Excess Insurance
On a "Follow-Form" basis, with limits of $3,000,000 each occurrence and aggregate. It is the intent of the
District to have the Consultant's Excess Insurance also apply over the professional liability insurance.
Consultant acknowledges that failure to obtain such insurance on behalf of the District constitutes a material
breach of contract. The Consultant is to provide the Districts with a certificate of insurance, evidencing the
above requirements have been met, prior to the commencement of work or use of facilities. The failure of the
District to object to the contents of the certificate or the absence of same shall not be deemed a waiver of any
and all rights held by the District.
END OF SECTION
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FIRM REFERENCE FORM
EDGEMONT UNION FREE SCHOOL DISTRICT RFP 2023-BO-002 INTERNAL AUDITING
FIRM NAME: __________________________________________________________________
Please list (5) five references that your firm has serviced in a manner similar in scope to the
specifications contained in this Proposal. References are part of the Proposal Documents and failure to
supply these references may result in the rejection of your proposal.
1. School District/Public Sector:
Contact Name/Title:
Address:
Telephone: Email:
Date(s) of Service:
2. School District/Public Sector:
Contact Name/Title:
Address:
Telephone: Email:
Date(s) of Service:
3. School District/Public Sector:
Contact Name/Title:
Address:
Telephone: Email:
Date(s) of Service:
RFP 2023-BO-002 INTERNAL