Dear Sir or Madam:
LULAC Head Start, Inc. is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal years ending June 30, 2019, 2020, and 2021. These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the General Accounting Office’s (GAO) Government Auditing Standards (1994), the provisions of the Federal Single Audit Act of 1984, as amended in 1996, and U.S. Office of Management and Budget (OMB) Circular A‑133, Audits of States, Local Governments and Non-profit Organizations, and the provisions of Sections 4 – 230 through 4 – 236 of the Connecticut General Statutes concerning the State Single Audit Act.
The auditor(s) shall state that the primary purpose of the audit is to express an opinion on the general-purpose financial statements taken as a whole and that the audit is subject to the inherent risk that errors or irregularities may occur and not be detected. In conducting the State Single Audit, the auditor should be familiar with the State Single Audit Act and its regulations and the State Single Audit Compliance Supplement
There is no expressed or implied obligation for LULAC Head Start to reimburse firms for any expenses incurred in preparing proposals in response to this request.
To be considered, an original and (5) copies of a proposal must be received by the LULAC Head Start Fiscal Manager by 3:00 pm May 15, 2019. LULAC Head Start reserves the right to reject any or all proposals submitted. Proposals submitted will be evaluated by the Fiscal Manager, Executive Director and Board of Directors. During the evaluation process, the Board of Directors reserves the right, where it may serve LULAC Head Start’s best interest, to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. At the discretion of LULAC Head Start Board of Directors, firms submitting proposals will be requested to make oral presentations as part of the evaluation process.
LULAC Head Start 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 proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the LULAC Head Start and the firm selected. It is anticipated the selection of a firm will be completed no later than May 30, 2019. Following the notification of the selected firm, it is expected that an engagement letter will be executed between both parties within 30 days of approval.
Background of LULAC Head Start, Inc.
LULAC Head Start Inc. (LULAC) has provided high-quality childcare services since 1983. The program has grown from its first location in a church basement founded by neighborhood parents in New Haven to four centers with credentialed teachers in center-based, safe and nurturing educational environments. As a Head Start program, LULAC primarily serves the families in the New Haven community who are at or below the poverty level. Based on their eligibility for the program, parents pay a low amount or nothing for the childcare services. The program is NAEYC accredited and offers a research-based curriculum that supports developmentally appropriate education for the children, ages 8 weeks to 5 years as they are prepared for entry into kindergarten. LULAC recognizes that children’s health and wellness significantly impact the child’s ability to learn. In addition, the program supports the parent as the child’s first teacher. Based on these factors, LULAC offers comprehensive a childcare program that offers additional services for the children and families, including health, nutrition, and support services for children with developmental delays or disabilities, community resources, and trainings for parents.
Services to Be Performed
Your proposal is expected to cover the following services:
1. Annual audit to be performed in accordance with generally accepted auditing standards, including a Single State Audit of both state and federally funded expenditures of the financial statements for the year(s) ended June 30, 2019, 2020, and 2021; and meetings with the Board of Directors, as necessary.
2. Management letter containing comments and recommendations with respect to accounting and administrative controls and efficiency.
3. Preparation of audited financial statements and, if necessary, management letter for the year ending June 30, 2019.
4. Presentation of financial statements and management letter to the board of directors.
5. Preparation of IRS Form 990 and all related attachments for the year ending June 30, 2019.
6. Consultations as required throughout the fiscal year.
7. Preparation of federal and state information returns for the organization.
8. Availability throughout the year to provide advice and guidance on financial accounting and reporting issues.
9. LULAC Head Start will fully close the books for the year and provide full financial statements. We use Sage 50 for accounting software. LULAC staff will prepare and provide supporting schedules, work papers, and audit confirmations. All books, records, supporting documents and related items will be provided as requested.
10. Please give any additional information, not specifically requested previously, considered essential to your proposal.
11. It should be noted that either party may cancel the audit for the second or third year by written notice to the other party no later than six months after the start of the fiscal year.
Proposal Content
In order to simplify the evaluation process and obtain maximum comparability, LULAC Head Start asks that all responses to the RFP be organized in the manner and format described below:
1. Executive Summary
Describe your understanding of the work to be performed and your firm’s ability to perform the work within the time frame provided.
2. Professional Experience
Describe how and why your firm is different from other firms being considered. This should include an explanation of the firm’s philosophy, size, structure, and qualifications with serving not for profit organizations with a similar size and operations. Describe your firm’s resources devoted to not for profit organizations and provide copies of newsletters or other resource materials addressing issues relevant to not for profit organizations. Discuss the firm’s independence with respect to the LULAC Head Start.
3. Team Qualifications
Identify the specific partners, managers, and in-charge staff who will be assigned to this engagement if you are successful in your bid. Provide their bios specifying relevant experience to the type of services requested. Also discuss commitments you make to staff continuity, including your staff turnover experience in the last three years.
4. Audit Approach
Describe how your firm will approach the proposed services, including the use of affiliates or staff from other locations, areas that will receive primary emphasis, and the type of assistance that will be required from LULAC Head Start staff. Also discuss the firm’s use of technology. Finally, discuss the communication process used by the firm to discuss issues with management and the Board.
5. Fees
Please provide a firm estimate of fees for the services to be provided. It has been the LULAC’s practice for management to negotiate a fee for services each year prior to such services being rendered. Given that the time required in the first year will be more substantial than subsequent years, please feel free to include the fees for subsequent years if there is a significant differential in cost from year one as well as provide any guarantees that can be made regarding increases in future years.
6. Client References
Include a list of the relevant not for profit clients the firm has served within the past three years and furnish the names and telephone numbers of any references whom we may contact.
7. Additional Information
Please provide a copy of your most recent peer review report. Please provide any additional information, not specifically requested, but which you believe would be useful in evaluating your proposal.
8. Describe how and why your firm is different from other firms being considered, and why our selection of your firm as our independent accountants is the best decision we could make. Please also indicate whether your firm qualifies as a minority-owned or small business firm.
Relationship with Prior CPA Firm
These services have been provided by Henry, Raymond, & Thompson, LLC in Hamden, Connecticut for the past three years. In keeping with good practice, the Board of Directors is assessing all options for the provision of these services to have the benefit of a new perspective on the organization’s financial operations. There are no disagreements with the auditors and there are no legal matters pending which could impact the financial statements.
Evaluation/Selection
LULAC Head Start Inc. will evaluate proposals on a qualitative basis. This will include our review of your peer review report, other clients served, size and qualifications of the firm, prior experience with similar entities, proposed timeline and price. We may request a meeting with the proposed partner assigned and may communicate with references, other clients and former clients.
We reserve the right to award based solely on our decision regarding which firm best fits our needs. We reserve the right to reject all proposals received. LULAC Head Start may make an award without further discussion of the proposals submitted. Therefore, your proposal should be submitted initially based on the most favorable terms, from both technical and price standpoints, which your firm can propose.
Proposal Timetable
RFP distributed May 3, 2019
5 copies of written proposals due to LULAC Head Start May 17, 2019
Management contacts finalists to schedule presentations May 21, 2019
Finalists make presentations to the Audit Committee May 2019
CPA firm selected and notified May 2019
Proposal Submission
Please provide five (5) copies of your proposal by 3:00 PM on pm May 15, 2019 to LULAC Head Start 250 Cedar Street New Haven, CT 06519. Proposals should be hard copy and should not be submitted electronically.