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HomeMy WebLinkAboutAudit Committee-Agenda Packets-4/2/2013City of Colleyville Page 1 City of Colleyville Audit Committee Agenda City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Tuesday, April 2, 2013 5:00 p.m. City Manager’s Conference Room Third Floor – City Hall 1. CALL TO ORDER 2. REGULAR AGENDA ITEMS 2a Presentation and discussion of Request for Proposal and selection process for external auditing services for the Fiscal Years ending September 30, 2013 through September 30, 2017 3. ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Thursday, March 28, 2013, by 5:00 p.m. Terry Leake Assistant City Manager and Chief Financial Officer Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise Executive Secretary at least 48 hours in advance at 817.503.1111, and reasonable accommodations will be made to assist you. City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2a Agenda Date 04/02/2013 Number Type Presentation and Discussion Department Finance Title Presentation and discussion of Request for Proposal and selection process for external auditing services for the Fiscal Years ending September 30, 2013 through September 30, 2017 Explanation As the five year contract for external audit services with Pattillo, Brown and Hill concluded with the audit for the Fiscal Year ended September 30, 2012, it is necessary to begin the Request for Proposal (RFP) process for external audit services. The purpose of this item is to discuss the attached RFP, the selection process, and receive direction from the Audit Committee. Attachments 1.Audit Request for Proposal Page 1 of 19 ` Proposer’s Initials _________ CITY OF COLLEYVILLE REQUEST FOR PROPOSAL (AUDITING SERVICES) I. INTRODUCTION A. General Information The City of Colleyville is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending September 30, 2013, with the option of auditing its financial statements for four subsequent years. These audits are to be performed in accordance with generally accepted auditing standards. There is no express or implied obligation for the C ity of Colleyville to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. A non-mandatory, pre-proposal conference will be held at Colleyville City Hall, Executive Conference Room, 100 Main Street, on Monday, April 15, 2013 at 9:00 AM to answer questions about the engagement. After this pre-proposal conference, any questions regarding the request for proposals should be addressed to Karen Hines, Finance Manager at (817) 503-1015, email: khines@colleyville.com. All interested firms will be provided with a copy of the minutes of the pre-proposal conference by April 16, 2013. To be considered three copies of a proposal must be received by Karen Hines at the Colleyville City Hall, 100 Main Street, Colleyville, Texas by 11:00 AM CST on Tuesday, April 23, 2013. Proposals submitted will be evaluated by a three member Audit Technical Selection committee composed of Terry Leake, Assistant City Manager / Chief Financial Officer, Karen Hines, Finance Manager, and Paul Brown, Assistant Finance Manager. During the evaluation process, the Audit Technical Selection committee and the City of Colleyville reserve the right, where it may serve the City of Colleyville's best interest, to request additional information or clarification from proposers, or to allow correction of errors. Firms receiving an acceptable technical score will be requested to make oral presentations during the time period of April 29 - May 2, 2013 as part of the evaluation process. These presentations will be made to the Audit Committee and the Audit Technical Selection committee. The City of Colleyville 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 Colleyville Page 2 of 19 ` Proposer’s Initials _________ and the firm selected. It is anticipated selection of a firm will be completed by Friday, May 3, 2013, and the contract will be presented to the City Council at the Tuesday, May 14, 2013 meeting. B. Term of Engagement A five year contract is contemplated, subject to the annual review and recommendation of the Audit Committee, the satisfactory negotiation of terms (including a price acceptable to both the City of Colleyville and the selected firm), the concurrence of the Colleyville City Council and the availability of an appropriation. II. NATURE OF SERVICES REQUIRED A. General The City of Colleyville is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal year ending September 30, 2013 with the option to audit the City of Colleyville's financial statements for each of the four subsequent fiscal years. These audits are to be performed in accordance with the provisions contained in this request for proposals. B. Scope of Work to be Performed The City of Colleyville desires the auditor to express an opinion on the fair presentation of its combining and individual fund financial statements in conformity with generally accepted accounting principles. The City of Colleyville 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 not required to audit the supporting schedules contained in the comprehensive annual financial report. However, the auditor is to provide an "in -relation to” opinion on the supporting schedules based upon the auditing procedures applied during the audit of the financial statements and the combi ning and individual fund financial statements and schedules. The auditor is not required to audit the statistical section of the report. C. Auditing Standards to be Followed To meet the minimum requirements of this request for proposals, the audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants. Page 3 of 19 ` Proposer’s Initials _________ D. Reports to be Issued 1. A report on the fair presentation of the financial statements in conformity with Generally Accepted Accounting Principles. 2. A report to management containing any significant deficiencies and/or material weaknesses found during the audit as defined by Statement on Auditing Standards 112. 3. Prepare the following portions of the Comprehensive Annual Financial Report (CAFR): Table of Contents, Basic Financial Statements: Statement of Net Assets (Primary Government and Component Unit) Statement of Activities (Primary Government and Component Unit); Fund Financial Statements: Balance Sheet (Governmental Funds), Statement of Revenues, Expenditures and Changes in Fund Balance (Governmental Funds), Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities, Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual, General Fund, Statement of Net Assets—Proprietary Fund, Statement of Revenues, Expenditures and Changes in Fund Net Assets - Proprietary Funds, Statement of Cash Flows Proprietary Funds; Statement of Net Assets- Fiduciary Funds, Combining and Individual Fund Statements and Schedules: Combining Balance Sheet Non- Major Governmental Funds, Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-major Governmental Funds, Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual : Debt Service Fund, Combining Statement of Fiduciary Net Assets, combining Statement of Changes in Assets and Liabilities- Agency Funds, Notes to the Financial Statements, Required Supplementary Information- Texas Municipal Retirement System Schedule of Funding Progress, and any other Financial Section schedules necessary to meet GASB 34 compliance. The City’s Finance Department staff will prepare the Transmittal Letter, Management’s Discussion and Analysis, and Statistical Section of the CAFR to be reviewed by the selected firm. The City desires that the selected audit firm will print and bind the CAFR and the City will supply the firm all covers and City letterhead stock necessary for printing. Irregularities and Illegal Acts: Auditors shall be required to make an immediate written report of all irregularities and illegal acts of which they become aware to the City Council, Audit Committee and City Manager. Reporting to the City Council and Audit Committee: Auditors shall assure themselves that the City of Colleyville's City Council and Audit Committee is informed of each of the following: 1. The auditor's responsibility under generally accepted auditing standards 2. Significant accounting policies Page 4 of 19 ` Proposer’s Initials _________ 3. Management judgements and accounting estimates 4. Significant audit adjustments 5. Other information in documents containing audited financial statements 6. Disagreements with management 7. Management consultation with other accountants 8. Major issues discussed with management prior to retention 9. Difficulties encountered in performing the audit 10. Future accounting and auditing pronouncements that will affect the City of Colleyville. Working Paper Retention and Access to Working Papers Working papers and reports must be retained, at the auditor's expense for a minimum of three (3) years, unless the firm is notified in writing by the City of Colleyville of the need to extend the retention period. The auditor will be required to make working papers available to the City of Colleyville, auditors of entities of which the City of Colleyville is a recipient of grant funds. Additionally, 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. F. Special Considerations The City of Colleyville currently anticipates it will prepare one or more official statements in connection with the sale of debt securities, which will contain the basic financial statements and 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". It is also anticipated during the audit period the City may receive federal assistance in excess of $500,000 and would require a single audit. III. DESCRIPTION OF THE CITY OF COLLEYVILLE A. Background Information The City of Colleyville serves an area of 13 square miles with an estimated population of 23,500. The City's fiscal year begins on October 1st and ends on September 30th. The City provides the following services: Police, Fire, Streets, Parks and Recreation, Community Development, Engineering, Library, Community Center and Utility service. In addition to the aforementioned departments, the City has a general governmental function comprised of City Manager's Office, City Council/Secretary, Finance, and Municipal Court. The City has 175 full-time employees and an annual payroll of $9.1 million. Page 5 of 19 ` Proposer’s Initials _________ B. Fund Structure The City of Colleyville uses the following fund types (Number of funds of that type) in its financial reporting: Governmental Funds - General Fund (1), Special Revenue Fund (18), Debt Service Fund (1), Capital Projects Fund (6) Proprietary Funds - Enterprise Fund (2) Fiduciary Funds - Agency Fund (2) C. Budgetary Basis of Accounting The City of Colleyville prepares its budgets on a basis consistent with generally accepted accounting principles. The following Funds have legally adopted budgets: General Fund, Utility Fund, Debt Service Fund, and Drainage Utility Fund. D. Federal and State Financial Assistance During the fiscal year to be audited the City of Colleyville will not receive financial assistance from the federal government in excess of $500,000. There is the possibility in future years that this may occur. E. Pension Plans The City of Colleyville participates in the Texas Municipal Retirement System, that is a joint contributory, defined benefit, multiple-employer agent type of pension plan. F. Component Units There are three component units in the City of Colleyville's financial statements : Blended Component Unit – Colleyville Crime Control and Prevention District, Colleyville Economic Development Corporation Discretely Presented Component Unit - Colleyville Tax Increment Financing Reinvestment Zone Number One G. Joint Ventures The City of Colleyville does not participate in joint ventures. H. Magnitude of Finance Operations The Finance Department is headed by Karen Hines, Finance Manager and consists of two other employees: Paul Brown, Assistant Finance Manager, and Sue Kralich, Accounting Clerk. Page 6 of 19 ` Proposer’s Initials _________ I. Computer Systems Hardware: During the audit period financial software ran on the following: Munis - Windows Server 2008 R2 in a VMWARE virtual environment. The Hardware is an HP blade c3000 Chassis with 4 BL460 blades Fund Balance - Windows Server 2003 enterprise environment and the hardware is an HP DL360G5 Software: For the first quarter of Fiscal Year 2013, the City's financial software package was "Fund Balance" from Micro Arizala Systems in Ann Arbor, Michigan (an Incode Division of Tyler Technologies, Inc.), and is Windows XP based utilizing Pervasive SQL 2000i as the database manager. The following Fund Balance applications were in use: general ledger, payroll, cash receipts, accounts payable, purchase order, and utility billing. For the last three quarters of Fiscal Year 2013, the City utilized the T yler Technologies software, Munis, and following applications are in use: general ledger, cash receipts, accounts payable, and purchase order. The Munis conversion to utility billing and payroll will take place during the first quarter of Fiscal Year 2014. J. Internal Audit Function The City of Colleyville does not have an internal audit function. K. The City of Colleyville will use its best efforts to make prior audit reports and client prepared supporting workpapers available to proposers to aid their response to this request for proposal. IV. TIME REQUIREMENTS A. Proposal Calendar The following is a list of key dates up to and including the date proposals are due to be submitted: Request for proposals issued April 3, 2013 Pre-proposal Conference April 15, 2013 Due Date for Proposals April 23, 2013 Oral Presentations April 29-May 2, 2013 B. Notification and Contract Dates Selected Firm Notified May 3, 2013 Contract to Council May 14, 2013 Page 7 of 19 ` Proposer’s Initials _________ C. Date Interim Audit May Commence August 12, 2013 D. Date for Completion of Interim Work September 20, 2013 E. Date for Commencement of Fieldwork November 4, 2013 F. Date for Completion of Fieldwork November 22, 2013 G. Date for Submittal of Draft Report January 10, 2014 H. Date for Audit Committee Meeting to Review Draft of Audit January 21, 2014 I. Approval of Audit Report by Council February 4, 2014 V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION A. Finance Department The Finance Department staff will be available to assist the firm by providing, information, documentation, and explanations. The preparation of confirmations will be the responsibility of the City of Colleyville. Also, the City has an Information Systems Management department and that department will answer any questions about the computer hardware. Additionally, there is a very comprehensive manual available with the "Fund Balance" software system and on- line documentation on the “Munis” software system. B. Statements and Schedules to be Prepared by the City of Colleyville Staff All of the following schedules will be available for auditors at the start of final fieldwork: Trial Balances (All Funds), Debt Service Requirements, Tax Supported Debt Roll forward, Utility Debt Roll forward, Lead Schedules-Accounts Payable Lead Schedules-Accrued Liabilities, Lead Schedules-Accounts Receivable, Detailed Fixed Assets, Detailed Fixed Assets (Enterprise Funds), Ad valorem tax receipts and receivables. Additionally, the City will provide twenty hours of staff time to prepare any other schedule the auditors may need. C. Work Area, Internet Connectivity, Telephones, Photocopying, and FAX Machines The City of Colleyville will provide the auditors with reasonable workspace located in the Finance Department including, conference table and chairs. The auditors Page 8 of 19 ` Proposer’s Initials _________ will also be provided with access to wireless internet, one telephone, a photocopier, and a fax machine. D. Report Preparation Report preparation, editing, and printing shall be the responsibility of the auditor. VI. PROPOSAL REQUIREMENTS A. General Requirements 1. Pre-proposal Conference A non-mandatory conference for firms interested in submitting proposals will be held on Monday, April 15, 2013 at 9:00 AM in the Executive Conference Room, 3rd Floor of City Hall, at 100 Main Street, Colleyville, Texas. Both verbal and written questions will be accepted during the conference. If a representative from your firm is unable to attend, please direct all questions to Karen Hines, Finance Manager at (817) 503-1015, after 12:00 PM on Monday, April 15th. 2. Inquiries Inquiries concerning the request for proposals and the subject of the request for proposals must be made to Karen Hines, Finance Manager: e-mail: khines@colleyville.com / phone: (817) 503-1015. 3. Submission of Proposals The following material is required to be received by 11:00 AM CST on Tuesday, April 23, 2013, for a proposing firm to be considered: a. A master copy (so marked) of a Technical Proposal and five copies to include the following: i. Title Page - Title page showing the request for proposal's subject; the name address and telephone number of a contact person; and the date of the proposal. ii. Table of Contents iii. Transmittal Letter - 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 itself to be the best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer for the period ending September 30, 2013. iv. Detailed Proposal - The detailed proposal should follow the order Page 9 of 19 ` Proposer’s Initials _________ set forth in Section VI B of this request for proposals. v. Audit Request for Proposal Form - Include an initialed copy of this request for proposals form. vi. Executed copies – Fully executed copies of Proposer Guarantees and Proposer Warranties, attached to this request for proposals b. The proposer shall submit an original and three copies of a dollar cost bid in a separate sealed envelope marked as follows: SEALED DOLLAR COST BID PROPOSAL FOR CITY OF COLLEYVILLE FOR PROFESSIONAL AUDITING SERVICES - APRIL 23, 2013 c. The proposer should send the completed proposal consisting of the two separate envelopes to the following address: CITY OF COLLEYVILLE 100 MAIN STREET COLLEYVILLE, TX 76034 ATTN: KAREN HINES, FINANCE MANAGER Also, hand delivered proposals will be accepted up to 11:00 AM CST on Tuesday, April 23, 2013. City Hall is located at 100 Main Street, Colleyville, TX. The Finance Department is located on the first floor. 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 Colleyville in conformity with the requirements of this request for proposals. As such, the substance of the 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 request for proposals requirements. THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS INCLUDED IN THE TECHNICAL PROPOSAL DOCUMENT. The technical proposal should address all the points outlined in the request for proposals (excluding any cost information, which should only be included in the sealed dollar 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 request for proposals. While Page 10 of 19 ` Proposer’s Initials _________ additional data may be presented, the following subjects, items Nos. 2 through 7, 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 Colleyville as defined by generally accepted auditing standards. 3. License to Practice An affirmative statement should be included indicating that the firm and all assigned key professional staff are properly licensed to practice in the State of Texas. 4. Firms Qualifications and Experience The proposal should state the size of the firm, the size of the firm's governmental staff, the location of the office from which the work on this engagement is to be preformed and the number and nature of the professional staff to be employed in this engagement and the number and nature of the professional staff to be so employed on a part time basis. A copy of the most recent peer review should be included. 5. Partner, Supervisory, and Staff Qualifications and Experience The firm should identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a certified public accountant in the State of Texas. The firm should also provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past two (2) years and membership in any governmental professional organizations. The firm should also 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. The firm also should indicate how the quality of the staff over the term of the agreement would 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 written permission of the City of Colleyville. However, in either case, the City of Colleyville retains the right to approve or reject replacements. Other audit Page 11 of 19 ` Proposer’s Initials _________ personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. 6. Audit Engagements with Other Governmental Entities The firm should list separately all governmental audit engagements within the past three years, which were performed by the proposing office location. Also include a CAFR from one of the listed audit engagements, which was prepared by your staff during the past year, or provide a link if the CAFR is available on the engaged city’s web site. 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 request for proposals. a. Proposed segmentation of the engagement b. Level of staff and the number of hours to be assigned to each proposed segment of the engagement c. Sample sizes and the extent to which statistical sampling is to be used in the engagement d. Extent and use of software in the engagement e. Type and extent of analytical procedures to be used in the engagement f. Approach to be undertaken to gain and document an understanding of the City of Colleyville's internal control structure g. Approach in meeting requirements of SAS 99 and SAS 112 in the engagement C. Sealed Dollar Cost Bid 1. Total All-inclusive Maximum Price The sealed dollar cost bid should contain all pricing information relative to performing the audit engagement and CAFR preparation and printing. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket and travel expenses. The City of Colleyville will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal. The first page of the sealed dollar cost should include the following information: a. Name of Firm. b. Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with Page 12 of 19 ` Proposer’s Initials _________ the City of Colleyville. c. A total All-inclusive Maximum Price for the fiscal year 2013 engagement including CAFR preparation and printing. 2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for Each The second page of the sealed dollar cost bid should include a schedule of professional fees and expenses, presented in the format provided in the attachment (Appendix F, part 1). The price for special services as described in Section II F of this request for proposals should be disclosed on the format provided in Appendix C, part 2. 3. Rates for Additional Professional Services If it should become necessary for the City of Colleyville to request the auditor to render any additional services to either supplement the services requested in this request for proposals 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 con tract between the City of Colleyville and the firm. Any such additional work agreed to between the City of Colleyville and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid. 4. Progress payments Progress payments will be made on the basis of hours of work completed during the course of the engagement incurred in accordance with the firm's dollar cost bid proposal. Interim billings shall cover a period of not less than a calendar month. The City of Colleyville will remit payment to the firm within thirty days of receipt of the invoice. VII. EVALUATION PROCESS A. Review of Proposals The Audit Technical Selection committee will use a point formula during the review process to score proposals. Each member of the Audit Selection Technical committee will first score each technical proposal by each of the criteria described in Section VII B below. The full Audit Technical Selection committee will then convene to discuss these evaluations and to combine the individual scores to arrive at a composite technical score for each firm. At this point, firms with an Page 13 of 19 ` Proposer’s Initials _________ unacceptably low technical score will be eliminated from further consideration. Firms with an acceptable score will be invited to make an oral presentation to the full Audit Committee, and will be assigned scores based upon their presentation. After the oral presentations are completed, the sealed dollar cost bid will be opened and additional points will be added to the score based upon the price bid. The maximum score will be assigned to the firm offering the lowest total all- inclusive maximum price. Appropriate fractional scores will be assigned to the other proposers. The City of Colleyville reserves the rights to retain all proposals submitted, and use any idea in a proposal regardless of whether that proposal is selected. B. 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 is independent and licensed to practice in the State of Texas b. The audit firm's professional personnel have received adequate continuing professional education within the preceding two years c. The firm adheres to the instructions in this request for proposals on preparing and submitting the proposal. 2. Technical Qualifications: Maximum Points - 60 a. Audit Expertise and Experience - 30 points (1) The firms past experience and performance on comparable government engagements. (2) 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. b. Audit Approach - 50 points (1) Adequacy of proposed staffing plan for various segments of the engagement (2) Adequacy of sampling techniques (3) Adequacy of analytical procedures (4) Adequacy of review of internal controls 3. Oral Presentations: Maximum Points - 10 Page 14 of 19 ` Proposer’s Initials _________ 4. Price: Maximum Points – 10 COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF AN AUDIT FIRM C. Oral Presentations Firms having an acceptable technical score will be requested to make an oral presentation to the Audit Selection Committee during the time period of April 29 – May 3, 2013. Such presentations will provide firms with an opportunity to answer any questions the Audit Selection Committee may have on a firm's Proposal. D. Final Selection The City Council will select a firm based upon the recommendation of the Audit Committee. It is anticipated that a firm will be selected by May 3, 2013. The City Council will approve the contract at the May 14, 2013 meeting. E. Right to Reject Proposals Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Colleyville and the firm selected. The City of Colleyville reserves the right without prejudice to reject any or all proposals Page 15 of 19 ` Proposer’s Initials _________ List of Appendices Appendix A - Proposer Guarantees Appendix B - Proposer Warranties Appendix C - Schedule of Professional Fees and Expenses for the Audit of the Year Ended September 30, 2013 Financial Statements Please note the FY 2012 City of Colleyville CAFR can be found at the following address on the City’s website: http://documents.colleyville.com/WebLink8 The Fiscal Year 2013 budget is also available for viewing on the website, using that link. Page 16 of 19 ` Proposer’s Initials _________ Appendix A PROPOSER GUARANTEES I. The proposer certifies it can and will provide and make available, at a minimum, all services set forth in Section II, Nature of Services Required Signature of Official: Name (typed): Title: Firm: Date: Page 17 of 19 ` Proposer’s Initials _________ Appendix B PROPOSER WARRANTIES A. Proposer warrants that it is willing and able to comply with State of Texas laws with respect to foreign (non-state of Texas) corporations. B. Proposer Warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. C. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the express prior written permission of the City of Colleyville. D. Proposer warrants that all information provided in connection with this proposal is true and accurate. Signature of Official: Name (typed): Title: Firm: Date: Page 18 of 19 ` Proposer’s Initials _________ Appendix C - Part 1 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE 2013 FINANCIAL STATEMENTS AND CAFR PREPARATION AND PRINTING Standard Hourly Hours Rates Total Partner(s) : $ $_______ Manager(s) : $ $_______ Supervisory Staff : $ $_______ Staff : $ $_______ Other (Specify) : $ $_______ Subtotal $ Out of pocket expenses $ CAFR Preparation (if not included above) $ Typing, Printing, Binding and Delivery of 25 Copies of the CAFR $ Total all-inclusive maximum price for 2013 audit and CAFR preparation $ Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. Projected annual increase for FY 2014-2017 (Express as a % or Type: e.g. Increase will be tied to DFW annual CPI increase):__________________________________________ Signature of Official: Name (typed): Title: Firm: Date: Page 19 of 19 ` Proposer’s Initials _________ Appendix C - Part 2 SCHEDULE OF PROFESSIONAL FEES FOR SERVICES DESCRIBED IN THE REQUEST FOR PROPOSALS SECTION II F – REPORTS FOR BOND SALE Total Price $ SINGLE AUDIT Total Price $ Signature of Official: Name (typed): Title: Firm: Date: