Audit Services
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REQUEST FOR PROPOSALS
AUDIT SERVICE CONTRACT
Proposals due: October 18, 2024 at 12:00 pm.
The Town of Nottingham will be accepting sealed Proposals for the purpose of obtaining a qualified Certified Public Accountant to perform the audit of the financial statements of the Town and its related component units as outlined in this proposal.
Proposals must be received by the Town Administrator of the Town of Nottingham no later than October 18, 2024 at 12 pm. Failure to deliver Proposal on time will result in rejection of the Proposal.
Inquiries regarding this Proposal may be directed in writing to:
Ellen White, Town Administrator
Town of Nottingham
139 Stage Road
PO Box 114
Nottingham, NH 03290
603-679-5022
GENERAL TERMS AND CONDITIONS OF PROPOSALS
(These items apply to and become a part of the proposal. No exceptions to these terms & conditions will be considered.)
1. Proposals must be submitted on this form only, including a signature of authorized agent. Be sure envelope is completely and properly identified and sealed.
2. No Proposer may withdraw his/her proposal for a period of thirty (30) days after the date and hour set for the opening of proposals.
3. The Proposer shall show in the proposal both the unit prices and total amount, where required, of each item listed. In the event of error or discrepancy in the mathematics, the unit prices shall prevail.
4. Any exceptions or deviations from written specifications shall be shown in writing and attached to the Proposal form.
5. The Town of Nottingham reserves the right to reject any and all Proposals and to waive any technicalities in the Proposal.
6. Proposal price shall be valid for a period of thirty (30) days after the opening date.
AWARD OF PROPOSAL
This Proposal shall be awarded to the firm whose proposal is judged most responsive to the Proposal and is most advantageous to the Town of Nottingham, considering the factors identified in the Proposal.
1. The Board of Selectmen shall have the authority to award the contract.
2. The contract shall be awarded to the lowest secure Proposer meeting specifications. In determining “lowest secure proposer”, in addition to price, the following factors shall be considered:
• The ability, capacity, skill and experience of the Proposer to fulfill the terms of the contract or provide the service required.
• Whether the Proposer can fulfill the terms of the contract or provide the service promptly or within the time specified without delay or interference.
• The character, integrity, reputation, judgment, experience and efficiency of the Proposer.
• The quality of fulfillment of the terms of previous contracts or services.
• The previous and present compliance of the Proposer with laws and ordinances relating to the contract or service.
• The sufficiency of the financial resources and ability of the Proposer to fulfill the terms of the contract or provide the services required.
• The quality, availability and adaptability of the contractual services to the particular use required.
• The number and scope of the conditions attached to the Proposer.
SECTION I – GENERAL SPECIFICATIONS
The Town of Nottingham is incorporated under the applicable laws of the State of New Hampshire and operates under a Board of Selectmen form of government. The Town provides municipal services necessary for the health and well being of its citizens, including police and fire protection, comprehensive land use planning and zoning services, code enforcement; streets and drainage, recreation and parks, cultural and nature services, sanitation services, and necessary administrative services to support these activities.
The Town’s financial reporting entity is comprised of the following:
Primary Government:
Town of Nottingham
Blended Component Units:
None
Discretely Presented Component Units:
None
The Town maintains its internal accounting records on a modified cash basis (for budgetary accounting purposes) during the year. At year end, Town staff prepares and posts the necessary journal entries to convert the records to GAAP. The conversion results in the reporting of governmental funds on the modified accrual basis of accounting and current financial resources measurement focus.
SECTION II – SERVICES REQUIRED
A. General
The Town is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal year ending December 31, 2024. The Town’s Board of Selectmen cannot bind future governing bodies; however, it is anticipated that the firm selected to serve as the Town’s independent auditor will be retained for at least three years, with annual evaluations made of the firm’s services.
These audits are to be performed in accordance with generally accepted auditing standards, the standards as set forth in the Government Accountability Office’s (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act of 1996 and US Office of Management and Budget (OMB) Guidance 2 CRF part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. It is not expected that the Town will expend in excess of this requirement at any time during the contract.
B. Scope of Work
The Town desires the auditor to audit the financial statements to express opinions on the fair presentation of the basic financial statements in conformity with generally accepted accounting principles. The opinion units will include: the Town’s governmental activities, each major fund, and the aggregate remaining funds.
The entities included in the scope of this audit are those identified Section One.
The combining and individual financial statements and schedules for nonmajor funds, and other non-required supplementary information schedules will be presented for purposes of additional analysis. The auditor is to provide an “in-relation-to” report on these statements and supporting schedules based on the auditing procedures applied during the audit of the basic financial statements.
The Management Discussion and Analysis, budgetary comparison schedules and pension funding progress schedules will be presented as required supplementary information. The auditor will be responsible for applying certain limited procedures, which consist principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, the auditor is not expected to audit the information nor express an opinion on it.
C. Other Considerations
In addition to the opinions on the basic financial statements, the auditor will issue a separate management letter setting forth findings and recommendations relative to other internal control findings, fiscal affairs and other significant observations of the accounting firm during the course of the audit. All reports required by the Single Audit Act must be provided, if applicable.
The accounting firm will be readily available to answer questions throughout the year and meet with Town staff if requested.
D. Working Paper Retention and Access to Working Papers
All working papers and reports must be retained, at the auditor’s expense, for a minimum of five (5) years, unless the firm is notified in writing by the Town of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties:
The Town of Nottingham
Parties designated by the federal or state government or by the Town as part of an audit quality review process
Auditors of entities of which the Town is a recipient or subrecipient of grant funds
In addition, the firm shall respond to the reasonable inquires of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.
III. REPORT REQUIREMENTS AND RESPONSIBILITIES
The Town’s Finance Department staff will prepare end of year adjusting entries and will prepare working trial balances for the auditor. Town staff may also prepare confirmations and certain schedules at year end which assist the external accounting firm. Finance Department staff will be available during the audit to assist the audit firm by providing information, documentation and explanations.
The Town will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to all telephone lines and photocopying facilities.
The auditor will be responsible for providing any proposed adjusting entries to the Town management for review and acceptance. The audit firm will also provide a list of immaterial audit differences not proposed for adjustment. Once the audit is completed, the audit firm will supply the Town with ten (10) copies of signed audit opinions and related reports. These reports must be submitted prior to August 15, 2025.
The firm will present the final report to the Board if requested to do so.
IV. THE SELECTION PROCESS
A. Town management will review all proposals and score each firm’s proposal using the Proposal Specifications Evaluation Check List (see Exhibit 1). Town staff may contact selected references provided by the accounting firm.
After the proposals have been scored and ranked based on qualifications and responsiveness, the sealed cost information will be opened and the firms will be ranked based upon their total all-inclusive maximum price. The two rankings will then be compared and an accounting firm will be recommended to the Selectmen.
B. Proposals should be structured in substantially the same format and order listed below:
Table of Contents-Include a clean identification of the material by section and page number.
Scope-Clearly define your understanding of the scope of services required.
Personnel-Identify the supervisors, including audit in-charge or senior accountants who will work on the audit. Resumes for each supervisory person assigned to the audit should be included and specific expertise indicated. Resumes may be included as an appendix. Include name and phone number of the person authorized to answer questions about the proposal.
Audit Approach-Clearly define the firm’s approach to conducting the audits.
Profile of the Firm-Give the location of the office from which the work is to be done and the number of partners, managers, seniors and other professional staff employed at that office. Describe the range of activities performed by the local office in the governmental area.
Governmental Experience-Describe local office auditing experience for the last three (3) years similar to the type of audit requested and give names of current clients. Provide names and telephone numbers of client officials (up to 5) responsible for those audits listed. Before the acceptance of the firm’s engagement letter, the successful accounting firm must certify to the Town that the audit staff assigned to this audit has met the Government Auditing Standards requirements for continuing education.
Additional Data-Give any additional information considered essential to this Proposal. Firms are requested to include results of their most recent external quality control review, including any letter of comments. Firms are encouraged to explain how they are able to assist the Town in implementing new accounting pronouncements. Also identify any potential impairments to auditor independence that may exist between the firm and the Town of Nottingham and any of its public trusts.
C. Fee Proposals
Fee Proposals submitted in response to this RFP should be a maximum all-inclusive price to perform the audit. The sealed cost information should include a total price for the audit for 2024 fiscal year and an estimate for each of the two succeeding fiscal years. Include in the proposal a minimum of the following information:
Budgeted hours by type of staff
Hourly rate proposed by type of staff
Total not-to-exceed fee, including expenses
Fee Proposals should be sealed in a separate envelope labeled “Cost Information”. The envelope should bear the firm's name and a return address.
D. Other
All statements made in the audit proposal may be incorporated by reference in the audit contract.
All proposing firms may contact Ellen White, Town Administrator for any questions or concerns or may make an on-site visit before their proposal is submitted.
Progress payments will be made on the basis of hours worked and interim billings shall cover a period of not less than a calendar month.
V. INSTRUCTIONS FOR PROPOSAL SUBMITTAL
Two (2) copies of your proposal, including sealed cost information, must be submitted to:
Ellen White, Town Administrator
Town of Nottingham
139 Stage Road
PO Box 114
Nottingham, NH 03290
no later than October 18, 2024 at 12 pm. Failure to deliver Proposal on time will result in rejection of the Proposal.
The Town of Nottingham reserves the right to reject any and/or all Proposals.