REQUEST FOR PROPOSALS TO PERFORM THE ANNUAL AUDIT OF THE ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT AND YOUTH CONSERVATION CORPS FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING JUNE 30, 2007 I. Introduction The State of New Mexico Energy, Minerals and Natural Resources Department (EMNRD), is requesting proposals from Independent Public Accountants (IPAs) to perform the annual financial and compliance audit of EMNRD’s financial statements for the fiscal year ending June 30, 2007, as well as the Youth Conservation Corps, which is administratively attached to EMNRD. EMNRD has approximately 500 employees, about 185 of whom work in Santa Fe, with the remaining working in Parks, Forestry, and Oil Conservation District Offices throughout New Mexico. YCC has two fulltime employees who are located in Santa Fe. Pursuant to the Audit Act, NMSA 1978, Section 1263(A): The financial affairs of every agency shall be thoroughly examined and audited each year by the state auditor, personnel of his office designated by him or by independent auditors approved by him. The comprehensive annual financial report the state shall be thoroughly examined and audited each year by the state auditor, personnel of his office designated by him or by independent auditors approved by him. The audits shall be conducted in accordance with generally accepted auditing standards and rules issued by the state auditor. II. Scope of Work The successful IPA shall conduct a financial and compliance audit of EMNRD’s and YCC’s general purpose financial statements and the combining, individual fund, and account group financial statements for the period from July 1, 2006 through June 30, 2007. Such audit shall be conducted in accordance with 2.2.2.10.D NMAC as specified below: (1) (2) (3) (4) (5) Generally Accepted Government Auditing Standards; Codification of Statements on Auditing Standards (SAS); OMB Circular A133, Audits of States, Local Governments and Non Profit Organizations (June 2003 revision); AICPA Audit Guide, Government Auditing Standards and Circular A 133 Audits; AICPA Audit and Accounting Guide, State and Local Governments;
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and 2.2.2 NMAC, Requirements for Contracting and Conducting Audits of Agencies.
The annual audit report must be received in the Office of the State Auditor no later than 60 days after the Financial Control Division of the Department of Finance and Administration provides the State Auditor with notice that EMNRD’s books and records are ready and available for audit (2.2.2.9A.1 NMAC). EMNRD, in conjunction with the successful IPA, shall identify a schedule of audit deliverables and agree to milestones for the audit to ensure that EMNRD’s books and records are ready and available for audit and the auditor delivers services on time. The 60 day audit deadline shall be based on a schedule of deliverables and milestones; however, the deadline cannot extend beyond December 15, 2007. Pursuant to 2.2.2.8.B(3) NMAC, EMNRD is seeking a contract for audit services for EMNRD and YCC in accordance with the Procurement Code, NMSA 1978, Sections 13128 through 199, General Services Department 1.4.1 NMAC, Procurement Code Regulations; and Department of Finance and Administration 2.40.2 NMAC, Governing the Approval of Contracts for the Purchase of Professional Services. The audit shall cover EMNRD’s and YCC’s entire operations and shall be comprised of a financial and compliance audit of the statements and schedules at the individual fund level. The scope of the audit includes governmentwide financial statements, fund financial statements, budget comparison statements, notes to the financial statements, component unit fund financial statements and related combining statements, and combining financial statements. All financial statements and notes presented in the annual audit shall be in conformity with accounting principles generally accepted in the United States of America. EMNRD is seeking the following audit services: a. b. c. d. e. Financial statement audit; Federal single audit; Financial statement preparation; Internal controls; Audit of cash receipts and cash control of at least five (5) field Districts or Parks that EMNRD selects; Financial and compliance audit of at least three (3) concessionaires located within State Parks as EMNRD selects;
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Financial and compliance audit of at least five (5) EMNRD administered grant programs that EMNRD selects.
Potential Offerors may view EMNRD’s and YCC’s Fiscal Year 06 audit to learn about EMNRD and YCC, including their histories, organizational structure, financial statements, programmatic information, federal funds received, bond series and statements of net assets by visiting the EMNRD website at the following link: www.emnrd.state.nm.us The successful IPA shall provide 10 copies of EMNRD’s audit report to EMNRD no later than 60 days after the Financial Control Division of the Department of Finance and Administration provides the State Auditor with notice that EMNRD’s books and records are ready and available for audit. III. Proposal Discussions with Individual Offerors EMNRD reserves the right to conduct discussions with responsible offerors who submit acceptable or potential acceptable proposals, but may accept proposals without such discussions. If such discussions are held, EMNRD may establish a common date for the submission of the best and final offers. IV. Small and Minority Audit Firms In accordance with Common Rule A102, small audit firms and audit firms owned by small and minority firms, women’s enterprises shall have the maximum practicable opportunity to participate in contracts awarded. V. Amendments This RFP shall not be modified in any way except by EMNRD’s written amendment. Offerors shall acknowledge receipt of any and all amendments in writing. VI. Cancellation This RFP may be canceled or any and all proposals may be rejected in whole or in part whenever EMNRD determines such action is in its best interest or the best interests of the State of New Mexico. In no event shall EMNRD pay any costs incurred by Offerors in the preparation or submission of a proposal.
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VII.
Contract Terms 2.2.2.14.B.(6) NMAC, requires that audit firms provide their most recent external quality control review report upon submitting a bid proposal or offer. EMNRD shall award a contract in accordance with the general terms of the attached standard State of New Mexico Audit Contract sample and in accordance with this RFP’s requirements. Prospective Offerors must be willing to sign the standard contract form or their proposal will be considered unresponsive. EMNRD is requesting a multiyear proposal to provide services, not to exceed a term of three years including renewals. The term of the contract shall be for oneyear, with the option to extend for two successive oneyear terms at the same price, terms and conditions as stated in the original proposal.
IX.
Professional Liability Insurance The successful IPA shall procure and maintain professional liability insurance covering any error or omission committed during the term of the Agreement. The IPA shall provide proof of such insurance to the State Auditor with the firm profile. The amount maintained should be commensurate with risk assumed.
X.
Compliance with Workers Compensation Act The successful IPA agrees to comply with state laws and rules pertaining to workers’ compensation coverage for its employees. If the successful IPA fails to comply with the Workers’ Compensation Act and applicable rules when required to do so, the contract may be canceled effective immediately.
XI.
Form of Proposals Proposals must, at a minimum, contain the following information: A. B. Offeror’s name, address and telephone number. Capability of firm: Resources including the number of firm team members and total audit hours available, independence, information system audit, quality control reviews, copy of the most recent external quality control review report and references. C. Work requirements & technical approach: Knowledge of audit objectives, technical plan, start and end dates, plans for use of internal staff, plans for conducting subsequent years
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audits D. Technical Experience: Government audit experience of onsite manager and the name of the onsite manager, team audit experience with agencies similar to EMNRD and their names, GASB 34 and 37 experience, and continuing education. F. Offeror's hourly composite rate, total estimated hours to complete the audit, and the total cost the offeror shall charge EMNRD to perform the audit. Offerors shall include all outofpocket auditrelated expenses, including travel, in the composite rate. The cost proposed must be provided in the following format, for each year of the multiyear bid: Hours Financial statement audit Federal single audit Financial statement preparation GASB 34 & 37 compliance Other (specifically identify) Subtotal Gross Receipt Tax Total Compensation G. Cost $ $ $ $ $ $ $ $
The original signature of the Offeror or of any employee or officer who has the authority to bind the Offeror. The signature shall be executed and dated as follows: Dated this ______ day of ________, 2007 By: ________________________________________________________ Title: ______________________________________________________ The person whose signature appears above is authorized to contractually bind this company.
H.
Offerors must also complete and sign the Campaign Contribution Disclosure Form (attached) with their proposals.
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XII.
Proposal Evaluations EMNRD shall evaluate all competitive sealed proposals based on the “Audit Contract Proposal Evaluation Form” attached to this RFP.
XIII.
Contact Person and Submission of Proposals An original and two (2) signed copies of proposals must be received no later than Noon, Thursday, May 31, 2007 at the Energy, Minerals and Natural Resources Department, Administrative Services Division, 1220 South St. Francis Drive, Santa Fe, New Mexico 87505; Attention: Kim Keahbone. Potential Offerors desiring further information may contact Ms. Keahbone at (505)4763258. “PROPOSALS FOR FINANCIAL AND COMPLIANCE AUDIT ASSISTANCE" must be printed on the envelope. Absolutely no exceptions shall be made for proposals not received at the above location by the appointed time. Fax or emailed proposals shall not be accepted.
XIV. Notices Award of contract(s) is/are contingent upon sufficient appropriations and authorization being made by the Legislature of the State of New Mexico. The Procurement Code, NMSA 1978, Sections 13128 through 131199, as amended, imposes civil and criminal penalties for its violation. In addition, New Mexico criminal statutes impose penalties for bribes, gratuities and kickbacks. Offerors must factor in Gross Receipts Tax (GRT) costs as part of their responses. Any response that does not clearly indicate GRT is included in the cost section may be deemed nonresponsive and rejected.
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CAMPAIGN CONTRIBUTION DISCLOSURE FORM Pursuant to NMSA 1978, § 131191.1 (2006), any person seeking to enter into a contract with any state agency or local public body for professional services, a design and build project delivery system, or the design and installation of measures the primary purpose of which is to conserve natural resources must file this form with that state agency or local public body. This form must be filed even if the contract qualifies as a small purchase or a sole source contract. The prospective contractor must disclose whether they, a family member or a representative of the prospective contractor has made a campaign contribution to an applicable public official of the state or a local public body during the two years prior to the date on which the contractor submits a proposal or, in the case of a sole source or small purchase contract, the two years prior to the date the contractor signs the contract, if the aggregate total of contributions given by the prospective contractor, a family member or a representative of the prospective contractor to the public official exceeds two hundred and fifty dollars ($250) over the two year period. Furthermore, the state agency or local public body shall void an executed contract or cancel a solicitation or proposed award for a proposed contract if: 1) a prospective contractor, a family member of the prospective contractor, or a representative of the prospective contractor gives a campaign contribution or other thing of value to an applicable public official or the applicable public official’s employees during the pendency of the procurement process or 2) a prospective contractor fails to submit a fully completed disclosure statement pursuant to the law. THIS FORM MUST BE FILED BY ANY PROSPECTIVE CONTRACTOR WHETHER OR NOT THEY, THEIR FAMILY MEMBER, OR THEIR REPRESENTATIVE HAS MADE ANY CONTRIBUTIONS SUBJECT TO DISCLOSURE. The following definitions apply: “Applicable public official” means a person elected to an office or a person appointed to complete a term of an elected office, who has the authority to award or influence the award of the contract for which the prospective contractor is submitting a competitive sealed proposal or who has the authority to negotiate a sole source or small purchase contract that may be awarded without submission of a sealed competitive proposal. “Campaign Contribution” means a gift, subscription, loan, advance or deposit of money or other thing of value, including the estimated value of an inkind contribution, that is made to or received by an applicable public official or any person authorized to raise, collect or expend contributions on that official’s behalf for the purpose of electing the official to either statewide or local office. “Campaign Contribution” includes the payment of a debt incurred in an election campaign, but does not include the value of services provided without
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compensation or unreimbursed travel or other personal expenses of individuals who volunteer a portion or all of their time on behalf of a candidate or political committee, nor does it include the administrative or solicitation expenses of a political committee that are paid by an organization that sponsors the committee.
“Family member” means spouse, father, mother, child, fatherinlaw, motherinlaw, daughterinlaw or soninlaw. “Pendency of the procurement process” means the time period commencing with the public notice of the request for proposals and ending with the award of the contract or the cancellation of the request for proposals. “Person” means any corporation, partnership, individual, joint venture, association or any other private legal entity. “Prospective contractor” means a person who is subject to the competitive sealed proposal process set forth in the Procurement Code or is not required to submit a competitive sealed proposal because that person qualifies for a sole source or a small purchase contract. “Representative of a prospective contractor” means an officer or director of a corporation, a member or manager of a limited liability corporation, a partner of a partnership or a trustee of a trust of the prospective contractor.
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DISCLOSURE OF CONTRIBUTIONS: Contribution Made By: Relation to Prospective Contractor: Name of Applicable Public Official: Date Contribution(s) Made: Amount(s) of Contribution(s) Nature of Contribution(s) Purpose of Contribution(s) (The above fields are unlimited in size) (Attach extra pages if necessary)
___________________________ _______________________ Signature Date ___________________________ Title (position)
OR— NO CONTRIBUTIONS IN THE AGGREGATE TOTAL OVER TWO HUNDRED FIFTY DOLLARS ($250) WERE MADE to an applicable public official by me, a family member or representative.
______________________________ Signature ______________________________ Title (Position)
_______________________ Date
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