FY'24 — FY'26 Audit Services Request for Proposal (RFP)Copyrighted
October 21, 2024
City of Dubuque CONSENT ITEMS # 13.
City Council
ITEM TITLE: FY'24 — FY'26 Audit Services Request for Proposal (RFP)
SUMMARY: City Manager recommending City Council approval of the
Audit Services Request for Proposal (RFP) process.
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. Audit RFP_MVM memo_2024_10_14
2. Audit RFP Staff Memo 2024 10 14
3. Audit Request for Proposal 2024_10_09
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THE CITY OF
Dubuque
DUB E
oft AFA0l
11_ 111.F
Masterpiece on the Mississippi
zoo013
2017*2019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: FY'24 — FY'26 Audit Services Request for Proposal (RFP)
DATE: October 14, 2024
Chief Financial Officer Jennifer Larson recommends City Council approval of the Audit
Services Request for Proposal (RFP) process.
On September 23, 2024, Finance staff were notified that FORVIS LLP has decided not
to continue as the City of Dubuque's auditor following the completion of the Fiscal Year
2023 audit.
In compliance with Iowa Code Chapter 11, it is required that cities issue a Request for
Proposal (RFP) prior to retaining auditing services. The RFP was issued on September
30, 2024, to initiate the proposal solicitation process aimed at securing a new auditor in
time for the audit to be completed by Spring 2025. This RFP is due on October 29,
2024, and will cover audit services for a three-year period, specifically for Fiscal Years
2024 through 2026.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Brian DeMoss, Finance Manager
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THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: FY'24 — FY'26 Audit Services Request for Proposal (RFP)
DATE: October 14 , 2024
Dubuque
M-hmicaCily
2007 • 2012 • 2013
The City's current auditors, FORVIS, have indicated to staff that they will no longer
perform the City's audit after the Fiscal Year 2023 audit is completed.
In compliance with Iowa Code Chapter 11, it is required that cities issue a Request for
Proposal (RFP) prior to retaining auditing services. The RFP was issued on September
30, 2024, to initiate the proposal solicitation process aimed at securing a new auditor in
time for the audit to be completed by Spring 2025. This RFP is due on October 29,
2024, and will cover audit services for a three-year period, specifically for Fiscal Years
2024 through 2026.
• Suggested audit services review committee:
Jenny Larson Chief Financial Officer
Brian DeMoss Finance Manager
Nathan Kelleher Budget/Financial Analyst (Grant Focused)
• Tentative time frame suggested for RFP process
September 30, 2024 Issue Solicitation for Proposal
October 29, 2024
Proposals Due
November 8, 2024
Committee Recommendation to City Manager
November 18, 2024
City Council Approval of Firm
November 19, 2024
Firms Notified of Selection
• CPA firms to be considered for audit services solicitation include WIPFLI and
Creative Planning (formerly known as BerganKDV). Eide Bailly LLP and
CliftonLarsonAllen have indicated that they do not have the capacity to complete
the City's Fiscal Year 2024 audit. RSM US cannot complete the City's audit due
to a conflict of interest from assisting with completion of the City's Annual
Comprehensive Financial Report the past two years.
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City of Dubuque
REQUEST FOR PROPOSAL (RFP)
I. INTRODUCTION
A. General Information
The City of Dubuque is requesting proposals from qualified certified public accounting firms
to audit its financial statements for three fiscal years ending June 30, 2024 through June
30, 2026. The annual audits are to be performed in accordance with generally accepted
auditing standards, Chapter 11 of the Code of Iowa, and any other provisions applicable to
audits of local government contained in the Code of Iowa, the standards set forth for
financial audits in the General Accounting Office's (GAO) Government Auditing Standards,
the Single Audit Act Amendments of 1996 and Office of Management and Provisions of
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement,
Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance).
There is no expressed or implied obligation for the City of Dubuque to reimburse
responding firms for any expenses incurred in preparing proposals or potential interviews
in response to this request.
One electronic (.pdf) copy shall be provided to https://citVofdubugue.sharefile.com/r-
r28e8cc4444b48228 by 4:30 p.m. local time on October 29, 2024. No bids will be
considered which have not been received by the deadline set forth. The City of Dubuque
reserves the right to reject any or all proposals submitted.
The proposals submitted will be evaluated by an Audit Services Review Committee
comprised of City employees. During the evaluation process, the Audit Services Review
Committee and the City of Dubuque reserve the right, where it may serve the City of
Dubuque's best interest, to request additional information or clarification from proposers, or
to allow corrections of errors/omissions. At the discretion of the Audit Services Review
Committee and City of Dubuque, firms submitting proposals may be requested to make
oral presentations as part of the evaluation process.
The City of Dubuque reserves the right to retain all proposals submitted and to use any
ideas in a proposal regardless of whether that proposal is selected. Submission of a
proposal indicates acceptance by the firm of the conditions contained in this request for
proposal, unless clearly and specifically noted in the proposal submitted and confirmed in
the contract between the City of Dubuque and the firm selected.
It is anticipated the selection of a firm will be completed by late late October 2024.
Following the notification of the selected firm it is expected a contract will be executed
within three weeks of City Council approval.
B. Term of Engagement
A three-year contract is anticipated, subject to an annual review and annual availability of
an appropriation.
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C. Subcontracting
If subcontracting is anticipated, the name of the proposed subcontracting firm must be
clearly identified in the proposal. Following the award of the audit contract, no additional
subcontracting will be allowed without the prior written consent of the City of Dubuque.
II. NATURE OF SERVICES REQUIRED
A. General
The City of Dubuque is soliciting the services of qualified firms of certified public
accountants to audit its financial statements for the fiscal year ending June 30, 2024, and
each of the two (2) subsequent fiscal years. These audits are to be performed in
accordance with the provisions contained in this request for proposal. The City's fiscal
year begins on July 1 and ends on June 30.
B. Scope of Work to be Performed
The City of Dubuque desires the auditor to express an opinion on the fair presentation of
its general purpose financial statements in conformity with generally accepted accounting
principles.
The City of Dubuque also desires the auditor to express an opinion on the fair presentation
of its combining and individual fund and account group financial statements and schedules
in conformity with generally accepted accounting principles. The auditor is required to audit
the schedule of expenditures of federal awards. The auditor shall also be responsible for
performing certain limited procedures involving supplementary information required by the
Governmental Accounting Standards Board (GASB).
C. Auditing Standards to be Followed
To meet the requirements of this RFP, the audit shall be performed in accordance with the
following standards:
1. Provisions of GASB and the Financial Accounting Standards Board (FASB), as
applicable to local governments,
2. Generally accepted accounting standards, as promulgated by the American
Institute of Certified Public Accountants (AICPA),
3. Generally accepted government auditing standards, as promulgated by the U.S.
Government Accountability Office,
4. Provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirement, Cost Principals, and Audit Requirements for Federal
Awards (Uniform Guidance),
5. Provisions of the Single Audit Act Amendments of 1996,
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6. ACIPA Guides applicable to state and local governments, and
7. Provision of the Code of Iowa.
D. Reports to be Issued
Following the completion of the audit of the fiscal year's financial statements, the auditor
shall issue:
1. An Independent Auditor's Report expressing opinion on the fair presentation of the
financial statements in conformity with generally accepted accounting principles.
2. A report on internal control over financial reporting and on compliance and other
matters based on an audit of financial statements performed in accordance with
Government Auditing Standards.
3. A report on compliance with requirements that could have a direct and material
effect on each major program and on internal control over compliance in
accordance with Title 2 U.S. Code of Federal Regulations Part 200.
4. A report on the fairness of presentation of the City's financial statements and
comparison is U.S. Department of Housing and Urban Development Real Estate
Assessment Center (REAC).
5. In the report(s) on internal controls, the auditor shall communicate any reportable
conditions found during the audit. A reportable condition shall be defined as a
significant deficiency in the design or operation of the internal control structure
which could adversely affect the organizations' ability to record, process,
summarize, and report financial data consistent with the assertions of management
in the financial statements. Reportable conditions discovered during the audit shall
be reported in a separate letter to management which shall be referred to in the
report(s) on internal controls. The reports on compliance shall include all instances
of non-compliance.
6. A report on the fair presentation of the Dubuque Metropolitan Solid Waste Agency's
(DMASWA) financial statements in conformity with general accepted accounting
principles.
7. A review of the Global Spectrum L.P. d/b/a OVG (OVG) financial statements for
Grand River Center Conference and Education Center Operations Services.
8. Independent auditor's report on compliance with policy and procedures concerning
the use of Airport revenues and internal control over compliance.
9. Independent auditors report on compliance with requirements applicable to the
Passenger Facility Charge Program and on internal control over compliance.
10. Summary schedule of prior audit findings.
11. Schedule of findings, which includes the following:
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a. Summary of independent auditor's results.
b. Finding related to the financial statements reported in accordance with
government auditing standards.
c. Findings and questioned costs for federal awards.
d. Other findings related to required statutory reporting.
e. Corrective action plan.
12. Auditors shall be required to make an immediate written report of all irregularities
and illegal acts or indications of illegal acts of which they become aware to Michael
C. Van Milligen, City Manager.
E. Special Considerations
The City of Dubuque, Iowa has received the Certificate of Achievement for
Excellence in Financial Reporting for 35 consecutive years as of June 30, 2022,
and has submitted the Annual Comprehensive Financial Report for the fiscal year
ending June 30, 2023 to the Government Finance Officer's Association for review.
The City anticipates submitting its Annual Comprehensive Financial Report for the
three years covered by this Request for Proposal and does not anticipate needing
any special assistance from the auditor to meet the program's requirements but will
rely on the expertise of the successful audit firm to assist the City with compliance
with any new accounting principles that become effective during the period covered
by this Request for Proposal. The cost of providing this assistance is to be
included in the base proposal price.
2. The City of Dubuque anticipates it may prepare one or more official statements
annually in connection with the sale of debt securities (normally General Obligation
Bonds, Revenue Bonds or State of Iowa Revolving Loan) which will contain the
general purpose financial statements and the auditor's report thereon. The auditor
shall be required, if requested by the financial advisor and/or the underwriter, to
issue a "consent and citation of expertise" as the auditor and any necessary
"comfort letters."
3. The City of Dubuque has determined that the U.S. Department of Housing and
Urban Development will function as the cognizant agency in accordance with the
provisions of the Single Audit Act Amendments of 1996 and the provisions of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement,
Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance).
4. The schedule of federal financial assistance and related auditor's report, as well as
the reports on the internal controls and compliance, are to be issued as part of the
ACFR.
5. The US Department of Housing & Urban Development requires the City of
Dubuque Housing & Community Development Department to electronically submit
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their fiscal year-end financial information to HUD through the Financial Assessment
Subsystem for Public Housing (FASS-PH) by August 31. The Real Estate
Assessment Center (REAC) requires a CPA certification after issuance of the
ACFR, no later than March 31. Currently, this is prepared for the Housing Choice
Voucher including Family Self -Sufficiency and Moderate Rehabilitation Programs.
The review and certification of these reports is to be included in the contract cost
utilizing full accrual method of accounting.
6. The typing, editing, printing, and assembly of the ACFR shall be the responsibility
of the City. The auditors will be responsible for suggesting revisions to and
expressing opinions on the City's working copy of the ACFR, excluding sections
identified as "unauditied." It is expected that audit procedures during fieldwork will
be based primarily on the City's trial balance and audit lead sheets.
7. At the end of the audit, the final bill for services needs to be allocated between
general enterprise funds, major federal programs, DMASWA, OVG Grand River
Center Conference and Education Center Operations Management Services,
Airport PFC and REAC certification.
The City of Dubuque will require the auditor's assistance to comply with any new
accounting principles that become effective during the period covered by this request for
proposal.
F. 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 City of Dubuque of the need to
extend the retention period. The auditor will be required to make working papers available,
upon request, to the following parties or their designees:
City of Dubuque, U.S. Department of Housing and Urban Development, Auditor of
the State of Iowa, parties designated by the federal or state governments or by the
City of Dubuque as part of an audit quality review process, auditors of entities of
which the City of Dubuque is a subrecipient of grant funds.
In addition, the firm shall respond to the reasonable inquiries of successor auditors and
allow successor auditors to review working papers relating to matters of continuing
accounting significance.
III. DESCRIPTION OF THE GOVERNMENT
A. General Description of Government/Contact Person
A list of City offered services may be found in the Transmittal Letter of the Annual
Comprehensive Financial Report (available on the City website www.cityofdubugue.org.)
Lists of elected and appointed officials and department directors, and the City's
organizational chart, are provided in the Introductory Section of the ACFR. Further
information on the City is provided in the ACFR Management's Discussion and Analysis,
and Statistical Sections.
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The auditor's principal contact with the City of Dubuque will be Brian DeMoss, Finance
Manager, phone (563) 589-4133 or bdemoss(a-)cityofdubug ue.org.
B. Fund Structure
The City's current fund structure is provided in Appendix A.
C. Budgetary Basis of Accounting
The City of Dubuque prepares its budgets on a cash basis. Budgets are prepared for all of
the City's governmental and proprietary funds.
D. Federal and State Financial Assistance
The City of Dubuque receives federal financial assistance from several federal programs; a
listing of the programs and the Catalog of Federal Domestic Assistance numbers is
included on pages 204-207 of the FY 2022 ACFR. The City does not anticipate major
changes in the amount of Federal or State financial assistance over the three-year period
covered by the contract.
Fiscal Year
2019
2020
2021
2022
2023
E. Pension Plans
Number of Maior Federal Proarams
3
4
5
4
4
The City of Dubuque participates in the Municipal Fire & Police Retirement System of Iowa
(MFPRSI) and the Iowa Public Employees Retirement System (IPERS) pension plans.
Both plans are defined benefit, cost -sharing, multiple -employer plans administered by state
agencies.
F. Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of
Chapter 28E of the Code of Iowa by the City of Dubuque and Dubuque County. The
purpose of the Agency is to provide solid waste management for the Dubuque metropolitan
area. The City appoints a voting majority of the Agency's governing board and has
authority over those persons responsible for the day-to-day operations of the Agency. The
Agency is presented as a proprietary fund type and has a June 30 year end.
Dubuque Initiatives and Subsidiaries is a non-profit corporation organized under the laws
of Iowa and Section 501(c)(3) of the Internal Revenue Code. The Organization was
created to render service to the City Council of the City of Dubuque, Iowa, on matters of
community interest. The Organization's articles require that its board members include two
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city council members, the mayor, and the city manager of the City of Dubuque, Iowa; and
in the event of dissolution, any assets or property of the Organization be transferred to the
City of Dubuque, Iowa. During the fiscal year 2009, the City of Dubuque, Iowa guaranteed
debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December
31st year end.
Dubuque Convention and Visitors Bureau (CVB) was formerly part of the Dubuque Area
Chamber of Commerce, and in 2014 was established as a separate non-profit
organization. Dubuque CVB's purpose is to strengthen the Dubuque area economy by
competitively marketing the area as a destination. The organization's board members
include one City Council member, the City of Dubuque mayor, and the City Manager. In
the event of dissolution, any assets or property of the organization shall be transferred to
the City. The City collects hotel/motel taxes and forwards 50% to the CVB as the primary
source of funds for its operations. The CVB has a June 3011 year end.
G. Joint Ventures
The City of Dubuque does not currently participate in joint ventures with other
governments.
H. Magnitude of Finance Operations
The financial activities are performed by the City of Dubuque finance and budget
department. The principal functions performed and the number of employees assigned to
each is as follows:
Function
Accounting/Treasury/Purchasing/Payroll
Budget/Financial Analyst
Utility Billing/Parking Ticket Collection
Key Finance Staff
Jenny Larson, Chief Financial Officer
Brian DeMoss, Finance Manager
I. Computer Systems
Hardware
Number of Employees
11 FT, 1 PT, 2 Seasonal
3 FT
8 FT, 1 Seasonal
Anniversary Date
August 6, 2006
July 5, 2023
The City of Dubuque currently uses a cloud hosted server for all payroll, general ledger
and several sub -ledger systems including utility billing. The landfill and parking tickets
accounts receivable systems are on a virtual server.
Software
The City of Dubuque currently utilizes Tyler Technologies' Munis software as a service
(SaaS) cloud -based solution for accounting and budget (live 7/1/2022), utility billing (live
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IV.
8/1/2023), and payroll (3/17/2024). The City of Dubuque uses AIMS Parking Management
Software developed by EDC Corporation for parking tickets. The City uses MRI for
Section 8 and Emphasys for loans in Housing. AIMS software is run on a Windows 2019
server.
J. Internal Audit Function
The City of Dubuque does not maintain an internal audit function.
K. Availability of Prior Audit Reports
Prior years' (2017-2023) audit reports are available at the following link
https://www.citVofdubugue.org/Archive.asp?AMID=93 on the City of Dubuque website.
The most recent DMASWA report is available at https://www.dmaswa.org/221/.
TIME REQUIREMENTS
A. Proposal Calendar
The following is a list of key dates pertinent to the submission of proposals:
Solicitation for proposals issued
Written questions deadline
Final Responses to questions
Due date for submitting proposals
B. Anticipated Notification and Contract Dates
Firms notified of selection
Contract finalized by
C. Tentative Schedule for Audit
September 30, 2024
October 22, 2024 (10:00 a.m.)
October 25, 2024 (5:00 p.m.)
October 29, 2024 (4:30 p.m.)
November 8, 2024
November 30, 2024
Fiscal Year 2024 audit fieldwork would need to be completed between January and April
2024. All workpaprs, trail balance, and draft financial statements will be ready for auditors
by January 2024.
We are open to negotiate dates of fieldwork for Fiscal Years 2025 and 2026.
Planning meeting
TBD
Preliminary fieldwork
TBD
Final PBC list due from auditors
TBD
Trial balance available
TBD
Draft financial statements available
TBD
Audit opinions due to the City
TBD
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Informal conferences and progress reports may be requested occasionally throughout the
audit process. Attendance by the auditor at the City Council meeting when the ACFR and
management letter are approved is required.
V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION
A. Finance Department and Clerical Assistance
The Finance Department staff and responsible management personnel will be available
during the audit to assist the firm by providing information, workpapers, journal entries,
documentation and explanations. The preparation of confirmations will be the responsibility
of the City.
In addition, clerical support will be made available to the audit firm for the preparation of
routine letters and memoranda.
B. Electronic Data Processing (EDP) Assistance
EDP personnel will be available to provide systems documentation and explanations. The
auditor will be provided access to the City of Dubuque's computer hardware and financial
system software for inquiries and reports.
C. Work Area, Telephones, Internet, Multifunction Machine.
The City of Dubuque will provide the auditor adequate workspace and access to necessary
telephone lines, internet, and multifunction machine. In addition, auditor access will be
granted to the City's financial software.
VI. PROPOSAL REQUIREMENTS
A. General Requirements
1. Written Questions and Inquiries
Any inquiries concerning this proposal should be directed in email to:
Brian DeMoss
Finance Manager
City of Dubuque
50 W. 13t" Street
Dubuque, IA 52001-4805
bdemoss(a)_cityofdubugue.org
phone: 563-589-4133
Final inquiries are due by October 22, 2024 at 10:00 a.m. All answers will be
posted in the form of an addendum by October 25, 2024 at 5:00 p.m..
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2. Submission of Proposals
The following material is required to be received October 29, 2024 (4:30 p.m.), for a
proposing firm to be considered:
a. Proposal to include the following:
Title Page
Title page showing the
address and telephone
of the proposal.
Table of Contents
iii. Transmittal Letter
IV
RFP subject; the firm's name; the name,
number of the contact person; and the date
A signed letter of transmittal briefly stating the proposer's
understanding of the work to be done, the commitment to perform
the work within the time period, a statement why the firm believes it
to be best qualified to perform the engagement and a statement that
the proposal is a firm and irrevocable offer for 90 days.
Detailed Proposal
The detailed proposal should follow the order set forth in Section VI.
B. of this RFP.
V. Appendices
Executed copies of "Proposer Guarantee" and "Proposer
Warranties," attached to this request for proposal (Appendix B and
Appendix C).
B. Technical Proposal
1. General Requirements
The purpose of the Technical Proposal is to demonstrate the qualifications,
competence and capacity of the firms seeking to undertake an independent audit of
the City of Dubuque in conformity with the requirements of this RFP. As such, the
substance of proposals will carry more weight than their form or manner of
presentation. The Technical Proposal should demonstrate the qualifications of the
firm and of the particular staff to be assigned to this engagement. It should also
specify an audit approach that will meet the RFP requirements.
THERE SHOULD BE NO COSTS INCLUDED IN THE TECHNICAL PROPOSAL DOCUMENT.
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The Technical Proposal should address all the points outlined in the RFP
(excluding any cost information which should be included in the cost bid). The
proposal should be prepared simply and economically, providing a straightforward,
concise description of the proposer's capabilities to satisfy the requirements of the
RFP. While additional data may be presented, the following subjects, items Nos. 2
through 8, must be included. They represent the criteria against which the proposal
will be evaluated.
2. Independence
The firm should provide an affirmative statement that it is independent of the City of
Dubuque as defined by generally accepted auditing standards/the U.S. General
Accounting Office's Government Auditing Standards (1994 revision).
The firm also should provide an affirmative statement that it is independent of all of
the component units of the City of Dubuque as defined by those same standards.
The firm should also list and describe the firm's (or proposed subcontractors)
professional relationships involving the City of Dubuque (or any of its component
units or oversight units) for the past five (5) years, together with a statement
explaining why such relationships do not constitute a conflict of interest relative to
performing the proposed audit.
In addition, the firm shall provide the City of Dubuque written notice of any
professional relationships entered into during the period of this agreement.
3. License to Practice in Iowa
An affirmative statement should be included that the firm and all assigned key
professional staff are properly registered/licensed to practice in the state of Iowa.
4. Firm Qualifications and Experience
The proposer should state the size of the firm, the size of the firm's governmental
audit staff, and the location of the office from which the work on this engagement is
to be performed. Also, state the number and nature of the professional staff to be
employed in this engagement on a full-time basis and a part-time basis.
If the proposer is a joint venture or consortium, the qualifications of each firm
comprising the joint venture or consortium should be separately identified and the
firm that is to serve as the principal auditor should be noted, if applicable.
The firm is also required to submit a copy of the report on its most recent external
quality control review, with a statement whether that quality control review included
a review of specific government engagements.
The firm shall also provide information on the results of any federal or state desk
reviews or field reviews of its audits during the past three (3) years. In addition, the
firm shall provide information on the circumstances and status of any disciplinary
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action taken or pending against the firm during the past three (3) years with federal
or state regulatory bodies or professional organizations.
Highlight activities in the governmental sector, including Special Designations,
consulting, membership in government organizations and sponsorship of
governmental CPEs.
5. Partner, Supervisory and Staff Qualifications and Experience
Identify the principal supervisory and management staff, including engagement
partners, managers, other supervisors and specialists, who would be assigned to
the engagement. Indicate whether each such person is registered or licensed to
practice as a certified public accountant in Iowa. Provide information on the
government auditing experience of each person, including information on relevant
continuing professional education for the past three (3) years, listing courses
completed and membership in professional organizations relevant to the
performance of this audit.
Provide as much information as possible regarding the number, qualifications,
experience and training, including relevant continuing professional education, of the
specific staff to be assigned to this engagement. Indicate how the quality of staff
over the term of the agreement will be assured.
Engagement partners, managers, other supervisory staff and specialists may be
changed if those personnel leave the firm, are promoted or are assigned to another
office. These personnel may also be changed for other reasons with the express
prior written permission of the City of Dubuque. However, in either case, the City of
Dubuque retains the right to approve or reject replacements.
Consultants and firm specialists mentioned in response to this RFP can only be
changed with the express prior written permission of the City of Dubuque, which
retains the right to approve or reject replacements.
Other audit personnel may be changed at the discretion of the proposer provided
that replacements have substantially the same or better qualifications or
experience.
6. Similar Engagements with Other Government Entities
For the firm's office that will be assigned responsibility for the audit, list the most
significant engagements (maximum - 5) performed in the last three years that are
similar to the engagement described in this RFP. These engagements should be
ranked on the basis of total staff hours. Indicate the scope of work, date,
engagement partners, total hours, and the name and telephone number of the
principal client contact.
7. 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 in Section II of this
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RFP. In developing the work plan, reference should be made to such sources of
information as City of Dubuque's budget and related materials, the organizational
chart, manuals and programs, and financial and other management information
systems.
Proposers will be required to provide the following information on their audit
approach:
a. Proposed segmentation of the engagement
b. Level of staff and number of hours to be assigned to each proposed
segment of the engagement
c. Sample size and the extent to which statistical sampling is to be used in
the engagement
d. Extent of use of EDP software in the engagement
e. Type and extent of analytical procedures to be used in the engagement
f. Approach to be taken to gain and document an understanding of the
City of Dubuque's internal control structure
g. Approach to be taken in determining laws and regulations that will be
subject toaudit test work
h. Approach to be taken in drawing audit samples for purposes of tests of
compliance
8. Identification of Anticipated Potential Audit Problems
The proposal should identify and describe any anticipated potential audit problems,
the firm's approach to resolving these problems and any special assistance that will
be requested from the City of Dubuque.
C. Dollar Cost Bids
1. Total All -Inclusive Maximum Price
The dollar cost bids should contain all pricing information relative to performing the
audit engagement as described in this RFP. The total all-inclusive maximum price
to be bid is to contain all direct and indirect costs including all out-of-pocket
expenses.
The City of Dubuque will not be responsible for expenses incurred in preparing and
submitting the technical proposal or the dollar cost bids.
The first page of the dollar cost bids should include the following information (See
Appendix D, page 1):
a. Name of Firm
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b. Certification that the person signing the proposal is entitled to represent
the firm, empowered to submit the bids, and authorized to sign a
contract with the City of Dubuque.
c. A summary of all-inclusive price for each individual year of the
engagement. Bid for audit with maximum four major programs plus
additional cost for additional major programs, if any.
d. A total all-inclusive maximum price for the three (3) year engagement.
2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated
for Each.
Pages two (2) through six (6) of the dollar cost bids should include a schedule of
professional fees and expenses that supports the total all-inclusive price for the
2024 fiscal year of the engagement and each of the two (2) subsequent fiscal
years, presented in a format similar to Appendix D, page 2.
3. Out-of-pocket Expenses Included in the Total All-inclusive Maximum Price and
reimbursement rates.
The total all-inclusive price should include all out-of-pocket expenses. This
includes expenses for travel, lodging, meals, etc.
4. Rates for Additional Professional Services
If it should become necessary for the City of Dubuque to request the auditor to
render any additional services to either supplement the services requested in this
RFP or to perform additional work as a result of the specific recommendations
included in any report issued on this engagement, then such additional work shall
be performed only if set forth in an addendum to the contract between City of
Dubuque and the firm. Any such additional work agreed to between City of
Dubuque 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.
5. Manner of Payment
Progress payments will be made on the basis of requests of the audit firm. Interim
billings shall cover periods of not less than a calendar month. The City will not pay
more than ninety percent (90%) of a single year's fees before the delivery of the
final auditors' opinion and reports requested by the Request for Proposal.
6. Tax -Exempt Entity
The City is a tax-exempt entity, thus taxes are not to be included in fee calculations.
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VII. EVALUATION PROCEDURES
A. Audit Services Review Committee
Proposals submitted will be evaluated by an Audit Services Review Committee consisted
of City employees.
B. Review of Proposals
The Audit Services Review Committee will use a point formula during the review process
to score proposals. Each member of the Audit Services Review Committee will score each
technical proposal by each of the criteria described in Section VII.C. below. The Audit
Services Review Committee will determine a composite technical score for each firm,
based on a combination of the individual scores. At this point, firms with an unacceptably
low technical score will be eliminated from further consideration.
After the composite technical score for each firm has been established, the dollar cost bids
will be added to the technical score based on the price bids. The maximum score for price
will be assigned to the firm offering the lowest total all-inclusive maximum price.
Appropriate fractional scores will be assigned to other proposers.
The City of Dubuque reserves the right to retain all proposals submitted and use any idea
in a proposal regardless of whether that proposal is selected.
The laws of Iowa require that the contents of all proposals be placed in the public domain
and be open to inspection by interested parties. Trade secrets or proprietary information
that are recognized as such and are protected by law may be withheld if clearly identified
as such in the proposal. All proposals become the property of the City of Dubuque and will
not be returned to the offeror until award has been made if requested by offereor.
C. Evaluation Criteria
Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory
criteria will have their proposals evaluated and scored for both technical qualifications and
price. The following represent the principal selection criteria which will be considered
during the evaluation process.
1. Mandatory Elements
a. The audit firm (including subcontractors) is independent and licensed to
practice in the state of Iowa.
b. The firm has no conflict of interest with regard to any other work
performed by the firm for the City of Dubuque.
c. The firm adheres to the instructions in this RFP on preparing and
submitting the proposal.
d. The firm submits a copy of its last external quality control review report,
and the firm has a record of quality audit work.
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2. Technical Qualifications: (Maximum Points - 75)
a. Expertise and Experience
The firm's past experience and performance on comparable
government engagements
ii. The quality of the firm's professional personnel to be assigned to the
engagement and the quality of the firm's management support
personnel to be available for technical consultation
iii. The firm's experience with federal and state financial assistance
programs.
b. Audit Approach
Adequacy of proposed staffing plan for various segments of the
engagement
ii. Adequacy of sampling techniques
iii. Adequacy of analytical procedures
3. Price: (Maximum Points - 25)
Cost will not be the sole factor in the selection of an audit firm. The City retains the
right to negotiate the price after an audit form has been chosen. For purposes of
scoring, the lowest cost proposal will be awarded the maximum 25 points, with
each successively higher cost proposal assigned a proportionately lower point
value.
D. Oral Presentations
During the evaluation process, the Audit Services Review Committee may request one or
more firms to make oral presentations. Such presentations will provide firms with an
opportunity to answer any questions the Audit Services Review Committee may have on a
firm's proposal. All firms may not be asked to make oral presentations.
E. Final Selection
The City of Dubuque will select a firm based upon the recommendation of the Audit
Services Review Committee. The recommendation of the committee will be subject to
approval of the City Manager and City Council.
It is anticipated that a firm will be selected by November 8, 2024. Following notification of
the firm selected, it is expected a contract will be executed between both parties by
November 30, 2024.
F. Right to Reject Proposals
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Submission of a proposal indicates acceptance by the firm of the conditions contained in
this request for proposal unless clearly and specifically noted in the proposal submitted
and confirmed in the contract between the City of Dubuque and the firm selected.
The City of Dubuque reserves the right without prejudice to reject any or all proposals in
whole or in part, and to waive irregularities.
Thank you for your firm's interest in providing audit services to the City of Dubuque.
VIII. INSURANCE
The Selected firm, at its own expense, shall procure and maintain during the life of this
contract, insurance limits and endorsements as shown in Appendix F.
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