REQUEST FOR PROPOSALS FOR PERFORMING INTERNAL CONTROL AND STATUTORY/REGULATORY COMPLIANCE AUDITS AND PROVIDING A REPORT THEREOF FOR SELECTED RECIPIENTS OF SPECIAL MUNICIPAL AID

Issued by the State of New Jersey Department of Community Affairs Division of Local Government Services

Date Issued: January 12, 2009

Responses Due by January 28, 2009 at 5:00 PM

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Request for Proposals (RFP) FOR PERFORMING INTERNAL CONTROL AND STATUTORY/REGULATORY COMPLIANCE AUDITS AND PROVIDING A REPORT THEREOF FOR SELECTED RECIPIENTS OF SPECIAL MUNICIPAL AID

I.

PURPOSE AND INTENT

The State of New Jersey, Department of Community Affairs, Division of Local Government Services (Division) is requesting proposals from qualified auditing firms to perform internal control and statutory/regulatory compliance audits and providing a report thereof (hereafter, audit or engagement) of selected municipalities receiving Special Municipal Aid (SMA). This RFQ defines the scope of services, related requirements of the engagement, and requests contracted audit firms to submit proposals. After completion of the audits, the Division will ask the contractor for an estimate of add: additional hours to provide monthly follow-up services to monitor implementation of corrective action plans and general compliance with the Special Municipal Aid program requirements. There is no assurance that such follow-up contracts will be awarded. The NJ Standard Terms & Conditions version 07-27-07 will apply to this contract. These terms are in addition to the terms and conditions set forth in this RFP and should be read in conjunction with them unless the RFP specifically indicates otherwise. Proposers must also submit the State’s “Standard RFP Forms” as part of their proposal. These forms include; Ownership Disclosure, Disclosure of Investigations and Actions Involving Bidder, MacBride Principles, Affirmative Action Supplement, Affirmative Action Employee Information Report. Finally, proposed must submit Political Contribution Compliance Forms: Contractor Certification and Disclosure of

Political Contributions and EO 117 Form. The proposer assumes sole responsibility for the complete effort required in submitting a proposal in response to this RFP. No special consideration will be given after proposals are opened because of a proposer’s failure to be knowledgeable as to all of the requirements of this RFP. If a joint venture is submitting a proposal, the agreement between the parties relating to such joint venture should be submitted with the joint venture’s proposal. Authorized signatories from each party comprising the joint venture must sign the proposal. A separate Ownership Disclosure Form, Disclosure of Investigations and Actions Involving Proposer, Affirmative Action Employee Information Report, MacBride Principles Certification, and Business Registration or Interim Registration must be supplied for each party to a joint venture.

II.

MINIMUM REQUIREMENTS

The Division is seeking one or more of the accounting organizations to provide the services detailed below. The successful contractors will provide personnel and services necessary to provide an audit report on statutory and regulatory compliance and internal controls. The Division has determined that given the scope of services required for this contract, a New Jersey Registered Municipal Accountant must serve as a Manager or Partner for the SMA Audit RFP

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engagement. If the Partner is an RMA, the Partner must be an active member of the team and have a regular on-site presence. Further, no firm will be permitted to perform an analysis on any municipality for which the firm has performed work within the past two years, and is barred from accepting any work from the audited municipality for one year after the conclusion of the engagement. The services and a final report shall be completed by June 12, 2009. Monthly progress reports highlighting progress made and initial observations and findings shall be submitted on the first of the month starting March 1, 2009. Further, in order for the Division to respond to anticipated legislative requests for information between March 1 and June 1, the Division reserves the right to request an interim report highlighting progress made and initial findings upon 10 working days notices. An initial/working draft report shall be submitted by May 15. III.

PROPOSAL SUBMISSION

An original, three paper copies of each proposal must be marked “REQUEST FOR PROPOSALS, SELECTED SPECIAL MUNICIPAL AID AUDITS” and addressed to: New Jersey Division of Local Government Services PO Box 803 Trenton, NJ 08625-0803 ATTN: Special Municipal Aid Audits The street address for courier or overnight delivery services is: New Jersey Department of Community Affairs Division of Local Government Services Attention: Special Municipal Aid Audits 101 South Broad Street Trenton, NJ 08625 Proposals must be received by January 28, 2009 at 5:00 PM, Eastern Daylight Time. Faxed proposals will not be accepted. All documents/information submitted in response to this solicitation shall be available to the general public as required by the New Jersey Open Public Records Act N.J.S.A. 47:1A-1 et seq. Communications with individual representatives of the State concerning this request by you or on your behalf are not permitted during the submission and selection processes. No telephone inquires will be accepted. Firms may e-mail specific questions regarding the scope of work for this RFQ and general state procurement. All inquiries concerning this request should be directed in writing or by e-mail (recommended) to: New Jersey Division of Local Government Services PO Box 803 Trenton, NJ 08625-0500 ATTN: Special Municipal Aid Audits

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E-mail: [email protected] If communicating questions via e-mail, the subject area must be labeled: “Questions – SMA Audit.” It is the Division’s policy to answer e-mail inquiries as soon as possible and sending responses to all qualified contractors. All e-mail inquiries must be received no later than January 22, 2009 at 12:00 noon EDT. The State will not be responsible for any expenses in the preparation and/or presentation of the proposals and oral interviews, or for the disclosure of any information or material received in connection with the solicitation, whether by negligence or otherwise. The State reserves the right to reject any and all proposals, with or without cause, and waive any irregularities or informalities in the proposals. The State further reserves the right to make such investigations as it deems necessary as to the qualifications of any organization submitting proposals. In the event that all proposals are rejected, the State reserves the right to re-solicit proposals. IV. GENERAL CONDITIONS All-Inclusive Hourly Rate – Fees shall be based on a hourly rate for employees assigned to the audit. The hourly rate shall be comprised of all direct and indirect costs including, but not limited to: overhead, fee or profit, clerical support, travel expenses, per diem, safety equipment, materials, supplies, managerial support, and all documents, forms, and reproductions thereof. This rate also includes portal-to-portal expenses as well as per diem expenses such as food. Fraud: Upon the suspicion or recognition of fraud, major accounting system deficiencies, or material misstatements of accounts, the contractor shall immediately contact the Division representative. No further work shall be performed relating to these items unless instructed to do so by the Division representative. The contractor may be required to provide a written report to the Division detailing the nature of the findings in these situations. Working Papers: As part of any normal audit, the auditor shall maintain working papers consisting of noted and written records created during the performance of the audit. The contractor shall create and maintain audit working papers while performing the work of this contract. Audit working papers are not deliverable during the performance of this contract and payments are not dependent on the presentation of working papers to the Division. Nonetheless, it is required, as part of the generally accepted auditing standards, that the contractor shall create files of working papers related to the entire audit. The contractor shall make available to the Using Agency for inspection or review, the working papers developed during the engagement at any given time during the course of the audit, at the conclusion thereof, and/or any time (see below) thereafter. These papers shall include: • Facts gathered and documents obtained • Computations and analyses performed • Other pertinent data relating to the audit Audit work papers shall be indexed in a logical manner and show evidence that each working paper or group of papers has been subjected to appropriate supervisory review. Working papers SMA Audit RFP

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must show the name of the auditor who prepared the paper and be clearly titled and dated. Audit work papers must be retained for a period of not less than three (3) years from the date of receipt of the contractor’s final payment and be made available to the Division when requested. Failure to make working papers available on request shall be considered a contractual nonperformance item subject to Section 5.13.3 of this RFP. Working papers are exempt from the conditions noted in Section 5.8 of this RFP. The contractor shall retain ownership of working papers. Forms That Must Be Submitted With Bid Proposal: State forms are linked below and are found at www.state.nj.us/treasury/purchase/forms.htm. Proposal Summary/Signatory Page: The bidder shall complete and submit the Proposal Summary/Signatory Page. The Page shall be signed by an authorized representative of the bidder. If the bidder is a limited partnership, the Page must be signed by a general partner. If the bidder is a joint venture, the Page must be signed by a principal of each party to the joint venture. Failure to comply will result in rejection of the bid proposal. Standard RFP Forms: These forms are online and can be downloaded from www.state.nj.us/treasury/purchase/forms.htm 1. Ownership Disclosure Form: In the event the bidder is a corporation, partnership or sole proprietorship, the bidder must complete the attached Ownership Disclosure Form. A current completed Ownership Disclosure Form must be received prior to or accompany the bid proposal. Failure to do so will preclude the award of a contract. 2. Disclosure of Investigations and Actions Involving Bidder: The bidder shall provide a detailed description of any investigation, litigation, including administrative complaints, or other administrative proceedings, involving any public sector clients during the past five (5) years, including the nature and status of the investigation, and, for any litigation, the caption of the action, a brief description of the action, the date of inception, current status, and, if applicable, disposition. 3. MacBride Principles Certification: The bidder is required to complete the MacBride Principles Certification evidencing compliance with the MacBride Principles. The requirement is a precondition to entering into a State contract. 4. Affirmative Action: The bidder is required to complete the Affirmative Action Employee Information Report, or, in the alternative, supply either a New Jersey Affirmative Action Certificate or evidence that the bidder is operating under a federally approved or sanctioned affirmative action program. The requirement is a precondition to entering into a State contract. Subcontracting Forms: These forms are online at and can be downloaded from: www.state.nj.us/treasury/purchase/forms/SubContracting.pdf 1. Notice of Intent to Subcontract Form: All bidders shall complete the Notice of Intent to Subcontract Form to advise the Division as to whether a subcontractor will be used to provide any goods or services under the contract. SMA Audit RFP

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2. Subcontractor Utilization Form: If the bidder intends to use a subcontractor, the Subcontractor Utilization Form must be completed and submitted with the bid proposal. Business Registration Certificate from the Division of Revenue: Failure to submit a copy of the bidder’s Business Registration Certificate (or interim registration) from the Division of Revenue with the bid proposal may be cause for rejection of the bid proposal. The bidder may go to www.nj.gov/njbgs to register with the New Jersey Division of Revenue or to obtain a copy of an existing Business Registration Certification Source Disclosure Certification Form: Pursuant to N.J.S.A. 52:34-13.2, the bidder is required to submit with its bid proposal a completed Source Disclosure Certification Form. Bidder Organization Support and Experience: The bidder shall include information relating to its organization, personnel, and experience, including, but not limited to, references, together with contact names and telephone numbers, evidencing the bidder's qualifications and capabilities to perform the services required by this RFP. The bidder should identify staff by resume, experience, and costs in accordance with the following professional skill classifications: a) Partner - A partner is an individual who has ownership in the firm and the person who signs the audit report. A New Jersey issued CPA certificate is required for this position. Qualification includes extensive audit experience and managerial ability. This individual is charged with the overall management of the audit and responsible for insuring that all necessary disclosures are made in the audit report. b) Manager - This classification of staff reports directly to the partner. Qualifications include extensive audit experience and managerial ability. A CPA certificate issued by any state within the United States is required for this position. This individual is responsible for the direct management of complex issues including the technical review of audit working papers and technical research of complex accounting and auditing issues affecting presentation of audit reports. c) Senior - This classification represents the highest level of audit field staff (in charge). The educational background required is a bachelor's degree with a major in accounting from an accredited college or university and at least three (3) years working experience with a certified public accounting firm. Individuals in this position should be either a CPA or qualified to sit for the CPA examination. d) Staff - This field audit position requires an individual to possess a bachelor's degree with a major in accounting from an accredited college or university. The position must represent a professional title in the bidder's organization, and the individual should have a minimum of six (6) months working experience of field auditing with a certified public accounting firm. All staff individuals should be directly supervised during the field assignment by an audit senior. The above categories a) through c) represent managerial skill level positions; category d) represents field audit staff. Each bidder shall segment its professional skill classifications into the four (4) categories. If the title differs in the bidder's organization, that title should be listed in parenthesis after the particular category. It is not necessary for a bidder's firm to possess all four (4) categories of professional skill classifications. SMA Audit RFP

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The bidder's firm must be registered with the New Jersey State Board of Accountancy. Detailed resumes should be submitted for all personnel to be assigned to the contract who fill the positions listed above. Resumes should emphasize relevant qualifications and experience of these individuals in successfully completing contracts of a similar size and scope to those required by this RFP. Experience of Bidder on Contracts of Similar Size and Scope: The bidder should provide a comprehensive listing of contracts of similar size and scope that it has successfully completed as evidence of the bidder’s ability to successfully complete the services required by this RFP. Emphasis should be placed on contracts that are similar in size and scope to the work required by this RFP. A description of all such contracts should be included and should show how such contracts relate to the ability of the firm to complete the services required by this RFP. For each such contract, the bidder should provide two (2) names and telephone numbers of individuals for the other contract party. Beginning and ending dates should also be given for each contract. Contractor Responsibilities: The contractor shall have sole responsibility for the complete effort specified in the contract. Payment will be made only to the contractor. The contractor shall have sole responsibility for all payments due any subcontractor. The contractor is responsible for the professional quality, technical accuracy, and timely completion and submission of all deliverables, services or commodities required to be provided under the contract. The contractor shall, without additional compensation, correct or revise any errors, omissions, or other deficiencies in its deliverables and other services. The approval of deliverables furnished under this contract shall not in any way relieve the contractor of responsibility for the technical adequacy of its work. The review, approval, acceptance or payment for any of the services shall not be construed as a waiver of any rights that the State may have arising out of the contractor’s performance of this contract. Substitution of Staff: If it becomes necessary for the contractor to substitute any management, supervisory or key personnel, the contractor shall identify the substitute personnel and the work to be performed. The contractor must provide detailed justification documenting the necessity for the substitution. Resumes must be submitted evidencing that the individual(s) proposed as substitution(s) have qualifications and experience equal to or better than the individual(s) originally proposed or currently assigned. The contractor shall forward a request to substitute staff to the Division Representative for consideration and approval. No substitute personnel are authorized to begin work until the contractor has received written approval to proceed from the Division Representative.

Form of Compensation and Payment: This section supplements the NJ Standard Terms and Conditions version 07-27-07. The contractor must submit official State invoice forms to the Division with supporting documentation evidencing that work for which payment is sought has been satisfactorily completed. Invoices must reference the tasks or subtasks detailed in the Scope of Work section of the RFP and must be in strict accordance with the firm fixed prices submitted for each task or subtask on the RFP SMA Audit RFP

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pricing sheets. All invoices must be approved by the Division Representative before payment will be authorized.

V.

SCOPE OF WORK

Background: The following municipalities are part of this RFP; along with their budgets, and number of employees and are the subject of audits: Municipality

Camden Newark Union City

FY 2008 Budget

Approximate # of full time employees

178,303,214 610,887,124 93,695,176

1,278 3,889 579

Content: Request for Proposal responses must adhere to the requirements set forth in this section, both for content and sequence. Failure to adhere to these requirements or the inclusion of conditions, limitations or misrepresentations may be cause for rejection of the submittal. Use 8-1/2 x 11 sheets (foldouts are acceptable for charts, etc.) and font size large enough to be easily legible, but not smaller than 10 point. Each bidder must include one proposal on the Individual Proposal Detail form, with a separate form for each municipality being proposed, bearing in mind the characteristics of the municipality set forth in the table above. Scope of Work: The scope of work includes completion of the services and deliverables listed below. A. The auditor must conduct an appropriate risk assessment to establish testing and sampling methods. An audit plan must be submitted to the Division five days prior to the commencement of the audit. The commencement of the audit may consist of an entrance conference with a member of the Division in attendance. B. In the course of the auditor’s work, it is expected that the auditor will review, and if appropriate provide comments, on the following documents: a. Annual Financial Statement b. Prior year Audit Report and related Corrective Action Plans c. Organization charts d. Administrative code and related ordinances or resolutions e. Internal procedural manuals or policies, including but not limited to: Personnel, Purchasing, and Risk Management C. The contractor must complete the following reports, studies, and analyses. 1. Provide a report on the municipality’s Internal Controls that will identify both the municipality’s strengths and weaknesses in each area of operational controls and include SMA Audit RFP

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recommendations to correct any deficiencies identified. Areas that shall be tested and reported on shall include: a. Purchasing, including but not limited to whether: i. purchase orders were prepared only on the basis of written purchase requisitions or other appropriate form, and approved by authorized persons; ii. controls exist preventing unauthorized purchases, unauthorized use of purchase order forms, and to prevent invoices from being paid in an amount greater then the original purchase order; iii. controls exist to verify that goods and services were received as per contract; iv. contracts (including purchase orders) were awarded in a manner consistent with the Local Public Contracts Law, and if aggregation policies were properly applied; v. there is an appropriate record of open purchase orders; and the use of any credit or procurement cards are used consistent with state law and regulations; vi. contracts awarded by the governing body, have appropriate resolutions, certification of availability of funds, and executed written contracts; and whether there were, in the opinion of the auditor, any, unreasonable, or inappropriate contracts, and identification of any such contracts; vii. an encumbrance system is properly used and administered; viii. invoices agree with original purchase order; purchase order agrees with and is consistent with any governing body approved contract, or if to the contrary, proper procedures for change orders or emergencies were followed; ix. voucher packages contain a purchase order, an invoice, a receiving slip, a proof of delivery (bill of lading, packing slip, notice of delivery, etc…); x. payments are made from original invoices (not statements or duplicates) invoice dates are not prior to delivery date; and, xi. if written procedural documentation regarding the procurement function (i.e., administrative code, purchasing manual) exists b. general fiscal operations, including but not limited to whether: i. controls within the municipality’s accounting functions: budgeting, cash receipts, accounts payable, encumbrance, general ledger maintenance, and if they are adequate, consistently applied, and in compliance with state law, regulations, and local ordinances; ii. banking and investment practices are consistent with state law; iii. investment policies and procedures are established, followed, and effective; iv. grant accounting is compliant with contracts, draw-down and reimbursement procedures, and timeliness; v. capital ordinances, tax abatements, and trust funds are maintained in compliance with state law, regulations, and local ordinances; and, vi. appropriate financial staff are in compliance with SAS 112. c. payroll/human resources, including but not be limited to whether: i. there exist controls over manual and non-manual payroll payments; ii. payments are made in accordance with contract terms; SMA Audit RFP

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iii. position control reconciles with payroll and budget information; iv. verification that timesheets exist and tie into payroll records; v. verification that salaries were properly authorized and paid in accordance with contract or ordinance; and, vi. employee benefits are authorized by contract, ordinance, or resolution as appropriate, and received by employees pursuant to authorization (i.e., test to ensure that only active employees receive benefits). d. information technology operations: the adequacy of infrastructure, administrative support and fiscal applications, disaster management, and information security practices; e. risk management: if adequate insurance coverage is provided at the least cost to the municipality; if self-insured, review of controls and oversight procedures; and; if risk management policies are in place and training provided for staff as appropriate; if procedures are established for periodic review of risk management practices and providers; if risk management contracts were awarded pursuant to law; and, f. inventory controls: whether supplies, fixed assets, technology and electronic equipment with value greater than $5,000 are adequately inventoried and controlled. 2. Payroll distribution audit: signed verification of employees receiving a paycheck, or in the absence of reasonable verification, verification of time sheet submissions. 3. Statutory and regulatory compliance review of all (100 percent) professional services, competitive contacting, and extraordinary unspecifiable service contracts from the previous fiscal year. 4. Review of all individual employee employment agreements for statutory and regulatory compliance, and identification of, in the opinion of the auditor, any unreasonable, or inappropriate benefits or compensation. 5. Review of all public employee labor contracts to identify any benefits that in the opinion of the auditor are unreasonable, or inappropriate; and whether the organization prepares cost accounting for each labor contract. 6. The organizational structure of the activities reviewed and its adequacy. D. Additional procedures shall consist of the following with a narrative explaining the finding: 1. analysis of purchase orders where the payment amounts exceed the original purchase order amount by more than 20 percent; 2. review of databases to determine if any vendors are paid at addresses listed as PO Box, commercial mail receiving agencies, etc.; 3. analysis of payroll/personnel databases to identify incomplete or missing hire date, birth date, status, address information and other key data elements; 4. analysis of payroll data to identify employees who receive greater than the normal number of payroll checks within the two year period covering Fiscal Years 2006 and 2007; and, 5. analysis of payroll data to identify employees whose base salary increased by greater than $7,500 from Fiscal Year 2006 to 2007. SMA Audit RFP

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E. The firm must follow up on any finding, outliers or anomalies that are identified during the engagement and provide a written conclusion based upon the facts and professional judgment. F. The auditor shall identify and provide a report on any efficiencies or procedures that would lead to cost savings for the municipality or state that the auditor discovers beyond those that have been identified from the process in “A” through “D” above, including in the report any findings of non-compliance with applicable laws, regulations, and governance. G. A working draft of the report must be submitted by May 1. This will be to facilitate the Division’s understanding of the results. It is expected that this will be a rough draft report and will be subject to editing. H. At least ten working days before the date of submission of the final draft of the audit to the Division, the auditor shall, upon receipt of written approval from the Division, conduct and exit interview and provide a draft of the final report to the municipality for review. The municipality shall be encouraged to respond to the report in writing. Any written response from the municipality shall be included in the final report submitted to the Division. I.

The contractor must provide a separate bound report for each municipality. Final Reports shall be submitted by June 12, 2009. The reports shall include the following: 1. cover letter that provides a narrative of the work performed and any assumptions used in performing the work; 2. a table of contents; 3. an engagement summary report (not to exceed two (2) pages); 4. a section describing the findings of statutory and regulator compliance, which shall include; a. a brief summary within each category b. specific examples and results c. a letter from the municipality responding to the contractors findings 5. a section describing the findings on internal controls, which shall include: a. overall summary of internal controls with a listing of each category identifying the level of risk (high, medium, low); b. a brief summary within each category; and, c. specific examples and results 6. a letter from the municipality responding to the contractor’s findings.

J.

The contractor must conduct all reviews in accordance with the GAO “Yellow Book” and (AICPA) Statements on Standards for Accounting and Review Services or any other industry standards that may apply, in addition to controlling New Jersey statutes, rules, and guidance issued by Division of Local Government Services.

K. The contractor must provide the Division three copies of each report and one CD-ROM with the report in PDF or MS Word format. L. The contractor will make a presentation of the report to the Division and the contractor may also be required to present to the municipality.

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VI.

MANDATORY CONTENTS OF PROPOSAL

The organization must provide a price for providing the services required herein for each municipality on which the firm chooses to submit a price. A. Proposal Requirements: 1) A narrative explaining the bidder’s understanding of the services to be provided, demonstrating that the bidder understands the performance expectations. 2) The auditor’s resources, experience and capabilities as they relate to meeting the demands of this contract. 3) Hourly rates for each class of employee: partner, manager, senior, and staff. 4) A work plan describing how reviews will be performed. Once a contract is authorized, each municipality will be advised of the scope of the audit and directed to prepare the information that will be needed by the auditor. This is intended to facilitate the work schedule. 5) For each municipality the firm is quoting, the Individual Proposal Detail and a staffing plan listing those persons who will be assigned to the engagement if the firm is selected, including the designation of a project manager to be responsible for the performance of the required services. This portion of the proposal must include resumes of the individuals who would be assigned. The resume information should include, at a minimum, a description of the person’s relevant professional experience, years and type of experience, and number of years with the firm. Identify the Partner or Manager who possesses an RMA License and the person’s License number. 6) Conflict of Interest Statement: Identify any existing or potential conflicts of interest, or other relationships that might be considered a conflict of interest, that may affect or involve this assignment or the State of New Jersey. 7) Preparer’s Information: Provide the name and address of the bidder, the name, telephone number, fax number, and e-mail address of individual or individuals responsible for the preparation of this proposal who may be contacted when additional information is required or information must be conveyed, and the location of the office at which the services to be provided hereunder will be performed. B.

Proposal Layout 1) Cover letter: Provide a “Cover Letter” and “Introduction”, including the name and address for the organization submitting the proposal, together with the name, address, telephone and fax numbers, and e-mail address of the contact person who will be authorized to make representations for the organization, and an expression of the firm’s ability and desire to meet the requirements of this Request for Proposals The letter must be signed by an individual authorized to bind the bidder contractually. 2) Cost Proposal: Provide a signed copy of the Proposal Summary Form. 3) Table of Contents: This section shall include a detailed “Table of Contents” and an outline of the submittal identified by sequential page numbers, section reference numbers and a section title as described herein.

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4) Proposal Requirements: include the remaining information required above in section A, in the order listed above.

VII. SELECTION PROCESS All proposals will be reviewed to determine responsiveness. Non-responsive proposals will be rejected. An Evaluation Committee will evaluate responsive proposals. The following evaluation criteria, separate or combined in some manner, and not necessarily listed in order of significance, will be used to evaluate proposals received in response to this RFP. • The bidder’s detailed approach and plans for performing the services required by the Scope of Work contained in this RFP. • The bidder’s cost proposal. Proposals will be evaluated and separate contractors may be selected for individual municipalities. The Division reserves the right to determine if the number of engagements is reasonable and will make engagement awards accordingly. VIII. INTERVIEW The Department reserves the right to interview any or all of the bidders submitting a proposal. Although interviews may take place, the proposal should be comprehensive and complete on its face. The State reserves the right to request clarifying information subsequent to submission of the proposal. IX.

BIDDER SELECTION AND CONTRACT

The State will select the proposal(s) deemed most advantageous to the State, price and other factors considered.

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PROPOSAL SUMMARY/SIGNATORY FORM Be sure to complete Individual Proposal Detail Forms for each municipality for which a proposal is submitted. Municipality

Proposed Fee

Hours Partner

Hours Manager

Hours Senior

Hours Staff

Camden Newark Union City

Price Proposal for Classifications of Employees Title

Hourly all-inclusive rate

Partner Manager Senior Staff

The firm is encouraged to submit a fee proposal for as many municipalities as it wishes. However, the firm should also note below the maximum number of municipalities for which it will accept an award (i.e. a firm may submit a fee for 3 municipalities but indicate that it can only accept the award of 2 municipalities) or other limitation: Maximum awarded municipalities able to accept ______ Other limitation:

Name of Audit Firm: Name of authorized agent: E-mail address:

Phone #:

Signature: Date:

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Individual Proposal Detail Name of Municipality: Task

Ref #*

Proposed Fee

Hours Partner # Hours

Risk Assessment Document Review (AFS, audit, organization charts, manuals, etc.)

A B

Internal Controls

C1 (all)

Payroll Distribution Audit Review of professional services, etc. Review of employment agreements Review of all labor contracts Organization structure review

C2 C3 C4 C5 C6

Additional procedures analysis: Analysis of purchase orders Vendor address checking Missing personnel data base data Employees with excess paychecks Excess base salary increases

D D1 D2 D3 D4 D5

Analysis of Cost Saving Efficiencies TOTALS

F

Rate

Hours Manager # Hours

Rate

Hours Senior # Hours

Rate

Hours Staff # Hours

Rate

* Corresponds to subsections of Section V, Scope of Work in the RFQ document. Hours for each element should include a portion of all ancillary activities, including but not limited to meetings and report preparation.,

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