RFP: Audit Services
The Housing Authority of the City of Richmond Indiana
Request for Proposals (RFP)
Audit Services for the Fiscal Years Ending June 30, 2023 and June 30, 2024
Proposals must be received no later than 10:00 am on April 4, 2023.
All responses must be submitted to:
Housing Authority of the City of Richmond
58 S. 15th St. Richmond, IN 47374
Attn: RFP Audit Services
(Clearly marked on envelope)
Or Emailed to Keon with a subject line of: RFP Audit Services
The Housing Authority of the City of Richmond (HACR) is charged with providing "affordable, decent, safe, and sanitary housing for eligible low-income persons."
HACR currently has 11 full-time employees and 2 part-time employees. HACR maintains 304 low-income public housing units; and through its Neighborhood Stabilization Program provides 12 units of housing owned by the Housing Authority. The Housing Authority City of Richmond's PHAS score is 61, operating as a Substandard Performer. The HACR also operates A section 8 Program with 277 Vouchers. The SEMAP Certification is 69, a standard performer. The prior year audits are available for review.
HACR serves low-income and very low-income residents within the City of Richmond and is committed to providing quality services to our residents. HACR wishes to enter a Fixed Fee contract to assure this commitment is being met in a professional, effective, and cost-efficient manner. To that end, HACR wishes to engage a contractor to provide auditing services in the various areas identified herein. The audit will be subject to the Indiana State Board of Accounts which must approve the RFP, contract, and meet state reporting requirements (exit conference notification and state-required reporting). The HUD submission of the audit report and certification of the FDS is required by January 31st, 2024. HACR will require the final audit to be presented to the board of commissioners in person or via zoom. This contract will be awarded by the HACR Board of Commissioners through the Finance Department. The Executive Director or Director of Finance or Designee will be the key contact once the contract is awarded.
Request for Proposals
Pursuant to the Code of Federal Regulations, "All procurement transactions will be conducted in a manner providing full and open competition". Consistent with the standards CFR Section200.509, the Housing Authority of the City of Richmond is seeking competitive proposals to engage a qualified accounting firm to provide annual auditing services for the public housing agency.
Keon Jackson, Executive Director/President-CEO
Housing Authority City of Richmond
58 South 15th Street
Richmond, IN 47374
The Executive Director/President-CEO shall serve as the "primary" contact for contract administration.
All responses to this RFP must be submitted no later than 10:00 AM Local Time on April 4, 2023 submit to:
Housing Authority City of Richmond
58 South 15th Street
Richmond, IN 47374
Note: Proposals received after the deadline will not be considered
Important: One original, marked "Original" and three (3) copies, marked "Copy" must be submitted by the above deadline. The following identification should be clearly marked on the outside of the sealed envelope:
Audit Services for the Fiscal Years Ending June 30, 2023 and June 30, 2024
RFP: February 2023
It shall be the responsibility of each proposer to be aware of and to abide by all dates, times, conditions, requirements, and specifications set forth within all applicable documents issued by the HACR, including the Instruction to Bidders, and any addenda and required attachments submitted by the proposer, by virtue of completing, signing, and submitting the completed documents, the proposer is stating his/her agreement to comply with the instructions, conditions, and requirements set forth within those documents.
- The HACR reserves the right to reject any or all proposals, to waive informalities in the RFP process, and/or to terminate the RFP process at any time deemed in its best interest.
- The HACR reserves the right to not award a contract pursuant to this RFP.
- The HACR reserves the right to terminate any contract awarded pursuant to this RFP, at any time, for its convenience upon ten (10) days written notice to the successful proposer.
- The HACR reserves the right to determine the days, hours, and locations that the successful proposer shall provide the services called for in this RFP.
- The HACR reserves the right to retain all proposals submitted and not permit withdrawal for a period of sixty (60) days subsequent to the deadline for receiving proposals without the written consent of the HACR Director of Finance and Administration.
- the HACR reserves the right to negotiate the fees proposed by the proposer entity.
- the HACR reserves the right to reject any and all proposals that do not meet the requirements of this RFP, including but not limited to:
- Incomplete Proposals and/or
- proposals offering alternate or non-requested services
- The HACR shall have no obligation to compensate any proposer for any costs incurred in responding to this RFP.
Equal Employment Opportunity
The contractor shall affirm that it does not subscribe to any personnel policy which permits or allows for discrimination in the employment, promotion, demotion, dismissal, or laying off of any individual due to his/her race, creed, color, national origin, age, gender, or physical handicap, and that it has not been convicted of violating any Laws within the immediate preceding six (6) month period.
Diversity Business Enterprise Program
Consistent with 2 CFR Chapter 1, Chapter II, Part 200, et al, the proposer shall make efforts to ensure that minority, women, and small business enterprise businesses are utilized when possible. Efforts to achieve minority, women, and small business participation shall include, but shall not be limited to:
- Placing qualified small and minority businesses and women's business enterprises on solicitation lists.
- Ensuring that small and minority businesses and women's business enterprises are solicited whenever they are potential sources.
- Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women's business enterprises.
- Establishing delivery schedules, where the requirements of the contract permit, which encourage participation by small and minority businesses and women's business enterprises; and
- Using the services and assistance of the U.S. Small Business Administration, the Minority Business Development Agency of the U.S. Department of Commerce, and State and local governmental small business agencies.
Section 3 Program
The purpose of the section 3 program of the Housing Urban Development Act of 1968 is to ensure that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, be directed to low and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low and very-low income persons. Offerors are to ensure they comply with 24 CFR 135.
The HACR shall select a minimum of a three-person panel to evaluate each proposal submitted in response to this RFP for the applicable administrative area, and in accordance with the evaluation criteria referenced in the document. The evaluation methods utilized by the panel may include an oral interview of each qualified proposer entity.
All persons having familial (including in-laws) and/or employment relationships (past or current) with principals and/or employees of a sponsor entity will be excluded from participation on the HACR evaluation panel.
Contract Award Procedure
If a contract is awarded pursuant to this RFP, the following procedure will be followed:
Upon completion of the Proposal Evaluation Process, the HACR evaluation panel will forward its conclusions and recommendation to the HACR Board of Commissioners for approval of award. If the recommendation is followed, the successful proposer will receive an HACR Notice of Award; thereafter contract price negotiations will begin.
Terms of Engagement
The contract period shall be for two (1) year, with provisions for an option to extend for an additional one (1) year period thereafter, up to three (4) additional years up to 2027. The audit firm shall state its willingness to enter into a contract for up to three (3) additional years under substantially the same terms, fees and conditions. Fees would be subject to inflation-related adjustment as proposed. The audit contract between the selected firm and HACR is subject to approval by the HACR Board of Commissioners. New HUD programs and new HUD reporting requirements may occur in future years. New programs and negotiated fees will be negotiated prior to the end of the year under audit.
Right to Negotiate Final Fees
The HACR shall retain the right to negotiate the amount of fees that are paid to the successful proposer, meaning the fees proposed by the apparent successful proposer may be the basis for the beginning of negotiations. Such negotiations may begin after the HACR evaluation panel has chosen an apparent successful proposer and received the Board of Commissioners approval to begin negotiations. If such negotiations are not, in the opinion of the HACR evaluation panel, successfully concluded within five (5) business days, the HACR shall retain the right to end such negotiations and begin negotiations with the next rated proposer. The HACR shall also retain the right to negotiate additional fees with any proposer, if the HACR needs in these areas change.
Nature of Services Required
The purpose of the RFP is to allow the HACR to solicit meaningful, technical, competitive proposals so that the Housing Authority may select from among a range of proposals, the Auditing Firm that best meet its needs and requirements. Proposers should acquaint themselves with the Housing Authority's enabling statute, as well as relevant local, state, and federal legislation and regulations promulgated thereunder when reviewing the Scope of Services. Prior to submitting a proposal, Proposers at their own expense must secure any personnel required to perform the services contemplated herein.
The Housing Authority encourages auditing firms to submit a proposal for all identified services. The selection of the Firm shall be based on the specific needs of the Housing Authority and shall be made at the Housing Authority's sole discretion.
The Housing Authority City of Richmond is soliciting firms to perform audit services. Proposals must include a letter indicating that if selected your firm will sign an annual contract for audit services for a period of two (2) years. This contract may be extended for an additional one (1) year period for up to an additional three (3) years if mutually agreed upon by HACR and the Contractor. Proposals must specify that the audit is for the purpose of expressing an opinion on the financial statements and not primarily or specifically designed to disclose any other qualifications that you feel should be included. The fee for performing the audit will be stated and will include all applicable expenses.
This audit will be conducted in accordance with the Single Audit Act, Government Auditing Standards, and the U.S Department of Housing and Urban Development regulations and the State Board of Accounts Guidelines for Audits of State and Local Governments by Authorized Independent Public Accountants. The audit shall be performed in accordance with generally accepted auditing standards and will additionally require compliance testing and a study of internal controls. The successful proposer will be required to certify that each and every audit is performed in accordance with all applicable federal and state laws and regulations, and in accordance with Generally Accepted Accounting Principles (GAAP).
Solicitation of the Request for Proposals does not commit the Authority to pay any costs incurred in the preparation or submission of said bids.
The auditors should demonstrate their ability to submit a report containing all of the applicable statements listed. Although the Single Audit Act requires the submission of financial statements, the Authority also wishes the audit report to contain the following statements:
- Accountants' Opinions
- Accountants' Report of Financial Statements
- Accountants' Report on compliance and on Internal Control Structure over Financial Reporting based on an Audit of Financial Statements performed in accordance with Government Auditing Standards.
- Accountants' Report on Compliance and on Internal Control over Compliance in Accordance with 2 CFR Chapter 1, Chapter II, Part 200, et al.
Financial Statements - GAAP Basis
- Combined Balance Sheet - All Fund Types
- Combined Statements of Revenues, Expenditures, and Changes in Fund Balance
- Combining Balance Sheet - All Fund Type
- Combining Statements of Revenues, Expenditures, and Changes in Fund Balance
- Statement of Cash Flow (if applicable)
- Notes to the Financial Statements
Supplementary Information - HUD Reports
- Financial Data Schedule (required by REAC)
- Computation of Annual Contributions Earned and Project Account - Operating Reserve
- Changes - Housing Assistance Payment Program
- Reconciliation of Capital Fund Grant Advanced with Costs
- Schedule of Federal Financial Awards
- Status of Prior Audit Findings
- Schedule of Findings and Questioned Costs
- General Comments
- Schedule of Adjustments made
Types of Programs to be Audited
Low Income Public Housing (LIPH)
The Housing Authority operates 304 units of conventional housing during 2023.
Additional Federal Programs
Capital Fund Programs (CFP)
CFP IN36P009501-20 - $770,336.00
CFP IN36P009501-21 - $811,480.00
CFP IN36P009501-22 - $998,053.00
*Subject to change
Family Self Sufficiency (FSS)
The FSS program supports the Department's strategic goal of utilizing housing as a platform for improving quality of life by helping HUD-assisted renters increase their economic security and self-sufficiency. The purpose of the FSS program is to promote the development of local strategies to coordinate the use of assistance under the HCV and PH programs with public and private resources to enable participating families to increase earned income and financial literacy, reduce or eliminate the need for welfare assistance, and make progress toward economic independence and self-sufficiency.
Section 8 Program
Under the Section 8 Program, the landlord/tenant relationship is between the housing owner and a family rather than the authority and the family, as in conventional programs.
The Authority presently has 277 units under the Section 8 Voucher Program.
Neighborhood Stabilization Program (NSP)
This is a program where the Housing Authority is given ownership of houses by the City of Richmond that have been renovated and are ready to move in. The tenants pay rent based on their monthly income. This is a tax-credit type program where after 15 years of ownership by the Housing Authority, the tenant has the option to purchase the home.
The Housing Authority has a total of 12 houses that are a part of this program.
This is a program where the Housing Authority has ownership of 3 houses. The tenant pays rent to the Housing Authority with a portion being set aside for when the tenant attempts to purchase the house. The funds set aside are for the tenant to use as down payment.
- The contractor shall audit the accounts and records of the Public Housing Agency for the 12 month period ending June 30, 2023 and the 12 month period ending June 30, 2024, in accordance with generally accepted auditing standards, the generally accepted government auditing standards and the auditing and reporting provisions of the applicable HUD Audit Guide for the Low-Income Housing Program for use by Independent Public Accountants and the State Board of Accounts Guidelines for Audits of State and Local Governments by Authorized Independent Public Accountants. The audit performed will be sufficient in scope to enable the Contractor to express an opinion in the audit report on the financial statements of the Public Housing Agency. The Housing Authority may, from year-to-year, expand the scope of work beyond that required by HUD. Any expanded scope will be attached as an Addendum to this Contract. Report groupings must be based on PHAS defined categories by HUD.
- The auditor's responsibility continues for reporting until the PHAS report is approved by HUD and Indiana State Board of Accounts.
- The Contractor must perform compliance testing for the Section 8 Management Assessment Program (SEMAP), in accordance with standards that will be OMB publications, including OMB Circulars/2 CFR part 200 and the Supplement for audits under OMB Circular A-133/2 CFR part 200, subpart F.
- In accordance with the Uniform Financial Reporting standards for HUD Housing Programs, effective Fiscal years ending 06/30/2023 and 06/30/2024, the audit report submitted to HUD must be in compliance with Generally Accepted Accounting Principles (GAAP).
- Upon Completion of the audit, an Audit Report consisting of those elements described in the Audit RFP will be submitted within 60 days after the completion of the audit field work to the following: local HUD Management Office for Audit (2 copies); Public Housing Agency (10 copies) and the required copies sent to the Federal Audit Clearinghouse and the Indiana State Board of Accounts.
- The contractor must be a Certified Public Accountant and meet all legal requirements concerning registration in which the PHA is located.
- The contractor certifies that is has not provided accounting or bookkeeping services for the Housing Authority during the period covered by the audit.
The audit will be required to be performed in accordance with Federal guidelines outlined in 2 CFR Chapter 1, Chapter II, Part200, et al.
The audit for FY 2023 will be required to be performed prior to January 15, 2024 and the report must be issued by January 31, 2024 as follows:
- Field work must be completed by November 30, 2023
- Draft report must be submitted by December 31, 2023
- Final report must be submitted by January 31, 2024
- Electronic Submission to REAC by January 31, 2024
The audit for FY 2023 will be required to be performed prior to November 30, 2023, and the report must be issued by January 31, 2024 as above.
At the conclusion of the engagement, the auditor will provide the Authority with any proposed adjusting entries, together with copies of supporting work documents. Additionally, any informal comments and suggestions regarding improvements in operational efficiency should be discussed during the exit interview. Once completed, the successful proposer will be required to submit to the HACR a total of ten (10) copies of the Single Audit Report.
The auditing firm selected will be required to retain the audit working papers to which HUD may have access for a period of five (5) years as well as the State Board of Accounts.
The auditor will be selected based on the following point system. Housing Authority of the City of Richmond reserves the right to reject any or all proposals and to waive any informality in the proposal submissions.
Proposal Evaluation Criteria - Maximum Points
- Professional qualifications of staff assigned to the audit. Education, position in the firm, and years and types of experience - 30 Points
- Capacity to accomplish the work in the required period of time, including organization size and structure of firm - 20 Points
- Prior experience and past performance including auditing HUD programs, auditing of local governments under the Single Audit Act, and auditing Public Housing Authorities - 20 Points
- Total price for the contract to complete the required work - 20 Points
- Minority/Women Business Enterprise Participation - 5 Points
- Section 3 Business Participation - 5 Points
- Information concerning your firm, the name of the contact partner, and staff persons who will be assigned to perform the audit. You should indicate the prior audit experience.
- References should be provided pertaining to audit clients for which your firm has been the auditor of record or who have permitted the listing of their names as a reference. Please indicate the nature of the work performed for these clients.
- Breakdown of time by staff level and computation of the audit fee including expenses used in your proposal. This computation should show the amount of time required and rate used by each level of staff within the firm (partner, manager, senior/junior staff, and support staff), estimated hours and hourly rate.
- Demonstrate experience and capability in providing stability, continuity, and responsiveness of both staff and management. For instance, will the same staff conduct the audit this year and be available to work on the audit next year.
- The proposal should include the external peer review required by 3.82 of the Government Auditing Standards 2011 Revision for all audit organizations performing audits in accordance with Generally Accepted Government Auditing Standards (GAAS).
The HACR intends to retain the successful proposer on a "Best Value" basis, not a "Low Bid" basis. Therefore, so that the HACR can properly evaluate the offers received, all proposals submitted in response to the RFP must be formatted in accordance with the sequence noted below:
Profile of Firm Form: The Profile of Firm Form, to include Section 3 W/MBE documentation, is attached hereto and incorporated herein by reference as Attachment A. It and its required attachments must be fully completed and executed and submitted as part of the Proposal submittal.
Proposed Service Description: The proposed service description must list all services the proposer will provide. The proposal must incorporate the technical specifications of this RFP as well as a description of the plan and/or methods that the proposer will utilize to deliver the proposed services. The detailed work plan shall also show the sequential steps and a timetable fully describing how the proposer proposes to provide the services.
Proposed Fees: The Proposed Fees Form is attached hereto and incorporated herein by reference as Attachment B. It must be fully completed and executed and submitted as part of this proposal. Please note the HACR reserves the right to negotiate all fees.
Client List: The proposer must submit a list of at least three (3) former or current clients for whom the proposer has performed similar or like services to those being proposed herein, with the preceding twelve (12) months. The list must include:
- The client's name
- The client's contact name
- The client's telephone number
- A description of the services provided
Non-Collusion: Each proposal shall include a completed and notarized Non-Collusive Affidavit attached hereto and incorporated herein by reference as Attachment C, Form of Non-Collusive Affidavit.
For the following forms, please contact our office:
- Profile of Firm Form
- Proposed Fees Form