Request for Proposals - Workforce Connections, Inc.

1 Request for Proposals For Audit Services Inquiries and Proposals should be directed to: Amy Felber Director of Finance Workforce Connections, Inc. 2615 East Ave. S. #103 La Crosse, WI 54601 (608) 433-2765 I. Purpose/General Information Workforce Connections, Inc (WCI) is requesting Proposals from CPA firms that have extensive experience in providing audit and tax services for nonprofit organizations. The Request for proposal (RFP) is to contract for audit services for fiscal year ending June 30, 2018 with possible extension for future fiscal years. We invite your firm to submit a proposal to us by Wednesday, March 16th, 2018 for consideration. A description of our organization, the services needed, and other pertinent information follows: II. Background of WCI WCI is a Wisconsin charitable, tax-exempt nonprofit organization pursuant to section 501(c)(3) of the Internal Revenue Code.

2 WCI was founded in 1983 with a defined mission to connect people, work and training while advancing self-sufficiency. We have an oversight committee comprising of three board members who will be responsible for the final selection of an audit firm. Our annual operating budget has ranged between $2,500,000 and $3,000,000 the past three years and we employ approximately 25 people through our 8 locations. WCI operates programs in 8 counties throughout Western Wisconsin including Crawford, Jackson, Juneau, La Crosse, Monroe, Buffalo, Trempealeau and Vernon counties. Approximately 24%, 39%, and 21% of WCI s revenue was received from the State of Wisconsin, Department of Children and Families (DCF), Department of Health Services (DHS) and Western Wisconsin Workforce Development Board, Inc. (WWWDB), for the fiscal year ended June 30, 2017. This funding was to operate WCI s major programs including the Wisconsin Works (W-2) Program, FoodShare Employment and Training (FSET) Program, and the Workforce Innovation and Opportunity Act (WIOA) Programs.

3 WCI has a June 30 fiscal year-end, with a requirement to have completed audit report by the December following each year-end. WCI maintains all accounting records in-house and uses Blackbaud Financial Edge Accounting Software. WCI s fiscal department consists of 2 full-time staff, including a Director of Finance and Finance Coordinator. For more information, please visit III. Services to be Performed Your proposal is expected to cover the following services: 1. Annual audit of the financial statements for the year ending June 30th and meetings with the Oversight Committee and/or Board of Directors, as necessary. Services will be based on generally accepted accounting principles and generally accepted auditing standards (GAAP and GAAS) 2. Federal Single Audit in compliance with Single Audit Guidelines (if applicable, WCI has been subject to single audits in prior years) 3. Management letter containing comments and recommendations with respect to accounting and administrative controls and efficiencies.

4 4. Preparation of federal and state information returns for the organization, including the IRS Form 990. 5. Availability throughout the year to provide advice and guidance on financial accounting and reporting issues that may arise. IV. Relationship with prior CPA Firm WCI s audit services have been provided by Wipfli LLP for the past ten plus years. WCI s Board and leadership staff want to certify they are being good stewards of government grant dollars by ensuring the validity of the fiscal audit process. In preparing your proposal , be advised that management will give permission to contact prior auditors. V. Timeframe for Audit work Planning and interim testing - April/May 2018 (if deemed necessary) Meet with Oversight Committee/Full Board of Directors - May 2018 (if deemed necessary) Receive a list of client-provided documents and requests - August 10, 2018 Begin fieldwork - September 17, 2018 Financial statement draft for management review By October 19, 2018 Presentation of draft audit report and comments to Board October 29, 2018 Issue final audit report November 30, 2018 Provide draft information returns for management review February 1, 2019 Provide draft information returns for Board review March 1, 2019 File final information returns by respective due dates VI.

5 proposal Content In order to simplify the evaluation process and obtain maximum comparability, WCI requires that all responses to the RFP be organized in the manner and format described below: A. Executive Summary Describe your understanding of the work to be performed, including audit procedures, estimated hours, your firm s ability to perform the work within the time frame provided, and other pertinent information. Please speak to which offices will be serving WCI and how your firm handles the coordination. B. Service Approach and Timeline 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 WCI s 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 and the expected timeline.

6 C. 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 nonprofit organizations with a similar size and operations. Describe your firm s resources devoted to nonprofit organizations and provide copies of newsletters or other resource materials addressing issues relevant to nonprofit organizations. Discuss the firm s independence with respect to WCI. Include a list of the relevant nonprofit clients the firm has served within the past three years and furnish the names and telephone numbers of any references whom we may contact. Also, please provide copies of any industry peer reviews, quality control reviews, any private or government performed reviews. D. Team Qualifications Identify the specific partners and managers who will be assigned to this engagement if you are successful in your bid.

7 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. E. Fees Please provide a firm estimate of fees for the services to be provided. It has been WCI 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. Additionally, if the pricing may be impacted by the timing of the audit please provide alternative pricing. F. Additional Questions/Information 1. Based on the documents attached to this RFP (Audited Financials, 990, etc) and your firm s experience in the nonprofit sector, provide two suggestions you would make to WCI as our audit firm.

8 2. Describe your firm s capabilities and commitment to provide tax, information systems consulting and other management services to not-for-profit organizations. Identify any that are unique in this field. 3. Furnish current standard billing rates for classes of professional personnel for each of the last three years, including an expense policy describing how incidental costs (for example, travel and mileage) are billed. Also describe how you bill for questions on technical matters that may arise throughout the year. 4. Please provide any additional information, not specifically requested, but which you believe would be useful in evaluating your proposal . VII. proposal Timetable 2/12/18 RFP Distributed Posted on 2/19/18 Questions due by 4:30 pm from potential vendors: email 2/23/18 Questions and Responses posted on website 3/16/18 Copies of electronic Proposals due by 4:30 pm: email in pdf format to Please put AUDIT SERVICES RFP in subject line.

9 3/30/18 Vendors are sent notification of selection VIII. Evaluation of Proposals & Review Process While price is a crucial factor, WCI will evaluate Proposals on price and the following criteria: CPA firm s understanding of work to be performed (Maximum 30 points) Prior experience auditing similar nonprofit organizations (Maximum 30 points) Qualifications of staff to be assigned to the engagement (Maximum 5 points) References & Peer Reviews (Maximum 10 points) Pricing (Maximum 20 points) Completeness and timeliness of the proposal (Maximum 5 points) WCI may, at its discretion, Request presentations by or meetings with any or all Offerors, to clarify or negotiate modifications to the Offerors Proposals . However, WCI reserves the right to make an award without further discussion of the Proposals submitted.

10 Therefore, Proposals should be submitted initially on the most favorable terms, from both technical and price standpoints, which the Offeror can propose. WCI contemplates award of the contract to the responsible Offeror with the highest total points. IX. Key Contacts Any questions concerning this RFP must be submitted via email to Amy Felber: Vendors are expected to identify questions, exceptions, or additions they have concerning the RFP document at this point in the process. If a vendor observes any significant ambiguity, error, conflict, discrepancy, omission, or other deficiency in this RFP, the vendor should immediately notify the above-named individual of such error and Request modification or clarification of the RFP document. In the event that it becomes necessary to provide additional clarifying data, or to revise any part of this RFP, revisions and/or supplements will be provided to all recipients of this initial RFP.