RFQ Audit Services 2023

• Larry Russell, Int. Executive Director - 252.644.2368
• Shannon Alderman, Director of Finance - 252.644.2413
• Erica Spruill, Executive Assistant - 252.644.2382

• Public Housing Program. The Agency operates 383 public housing units organized into one (1) asset management project and has not established a Central Office Cost Center (COCC). As part of its housing program, the PHA receives Capital Fund grant awards each year.
• Section 8 Housing Choice Voucher (HCV) Program. The Agency manages 370 HCV vouchers. 
• Rural Development. The Agency administers 60 units of low-income housing; a program of the U.S. Department of Agriculture.
• The PHA's federal awards expended based on last year's audit (rounded to thousands) were as follows:
  • CFDA 14.850 Low Rent Public Housing: $2,047,000
  • CFDA 14.872 Public Housing Capital Fund: $716,000
  • CFDA 14.871 Housing Choice Voucher: $1,473,000
  • CFDA 14.870 Resident Opportunity and Supportive Services: $3,000
  • CFDA 14.896 Family Self-Sufficiency Program: $48,000
  • CFDA 10.415 Rural Rental Housing: $344,000

1. Right to Reject, Waive, or Terminate the RFP. Reject any or all proposals, or terminate the RFP process at any time, if deemed by the Agency, to be in its best interests.
2. Right to Not Award. Not to award a contract pursuant to this RFP.
3. Right to Terminate. Terminate a contract award pursuant to this RFP, at any time for the Agency's convenience, upon 10 days written notice to the successful offeror(s).
4. Right to Determine Time and Location. Determine the days, hours, and locations that the successful offeror(s) shall provide the services called for in the RFP.
5. Right to Retain Proposals. Retain all proposals submitted and not permit withdrawal for a period of 90 days subsequent to the deadline for receiving proposals.
6. Right to Negotiate. Negotiate the fees proposed by the offeror(s).
7. Right to Reject Any Proposal. Reject and not consider any proposal that does not meet the requirements of this RFP, including but not necessarily limited to incomplete proposals and/or proposals offering alternate or non-requested services. 
8. Right to Reject Proposal for Debarment. In addition, the Agency reserves the right to reject the proposal of any firm who is debarred by HUD from providing services. 
9. No Obligation to Compensate. Have no obligation to compensate any offeror for any costs incurred in responding to this RFP.
10. Unauthorized Sub-Contracting Prohibited. The successful offeror/contractor shall not assign any right, nor delegate any duty for the work proposed pursuant to this RFP (including, but not limited to, selling, or transferring the contract) without the prior written consent of the Agency. Any purported assignment of interest or delegation of duty, without the prior written consent of the Agency shall be void and may result in the cancellation of the contract with the Agency or may result in the full or partial forfeiture of funds paid on the contract, as determined by the Agency.
11. Project Staffing Changes. 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. However, in either situation, the Agency retains the right to approve or reject replacements.

1. Audit Standards (Single Audit). It is expected that the audit services will be performed in accordance with Generally Accepted Auditing Standards (GAAS) as set forth by the American Institute of Certified Public Accountants (AICPA) and Generally Accepted Governmental Auditing Standards (GAGAS) as issued by the US Government Accountability Office (GAO). The audit also must meet all requirements set forth in Title 2 U.S. code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or any successor issuance, and/or any HUD or other Federal agency requirement, which are in effect as of the date of the audit onsite fieldwork. 
2. State Requirements. Any state audit requirements and procedures are expected to be properly performed and completed as part of this scope of work. 
3. Audit Report. The auditor will provide one (1) original unbound, one (1) electronic and 10 bound copies of the audited financial statements including the Single Audit report to the Executive Director. 
4. Retention of Work Papers. The auditor shall retain work papers for a minimum of five (5) years after the date of issuance of the auditor's report to the Agency.
5. Access to Working Papers. Audit work papers shall be made available upon request by the Agency, HUD, or any other governmental agency having jurisdiction to such request (i.e., Office of Inspector General), and are to be made available to the requested party within 10 days of receipt of such request. All reports rendered to the Agency by the auditor are the exclusive property of the Agency and is subject to the Agency's use and control, according to applicable laws and regulations.
6. Inquiries from Successor Auditors. The audit firms shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing significance.
7. Compliance with Laws. The Auditor agrees to be bound by applicable Federal, State, and Local laws, regulations, and directives as they pertain to the performance of the audit contract.

1. Perform a financial statement and compliance audit of the Agency in accordance with standards as described under the General Requirements section. The statements to be provided by the housing agency include the following:
   1. Statement of Net Position
   2. Statement of Revenue, Expenses, and Changes in Net Position
   3. Statement of Cash Flows
   4. Notes to Financial Statements
   5. Management Discussion & Analysis
   6. Schedule of Expenditures of Federal Awards
2. As part of the engagement, the auditor will provide the following reports.
   1. Independent Auditor's report, including in relation to opinions: (1) Management Discussion and Analysis, (2) Financial Data Schedule, (3) Schedule of Expenditures of Federal Awards
   2. Independent Auditor's Report on Internal Control over Financial Reporting on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
   3. Independent Auditor's Report on Compliance for Each Major Program and Internal Control Over Compliance as Required by the Uniform Reporting Guidance
   4. Schedule of Findings and Questioned Costs
   5. Any other report as needed to be compliant with current audit standards and HUD, other Federal agency, and state requirements, including HUD's Capital Fund Grant Close-out Cost Certificates
3. Provide with the annual audit, written recommendations made to management which address any findings, observations, opinions, or comments relating to internal controls, financial systems, compliance, or other matters that come to the attention of the auditor during the examination. The management letter shall be provided in draft form prior to publication of the annual financial statement and be discussed with the Executive Director and other appropriate housing agency staff.
4. The auditor will not be involved in submission of the unaudited Financial Data Schedule (FDS) to HUD. The auditor will review any HUD comments provided on the unaudited FDS submission and last year's audited submission and address accordingly.
5. The auditor will perform the HUD required Agreed-upon Procedures related to the submission of the audited FDS upon completion of the audit and if necessary, any re-submission as required by HUD.
6. The auditor will complete and transmit the Data Collection form to be filed with the Federal Clearinghouse.
7. An exit conference is required of the auditor upon completion of fieldwork with the Finance Committee to inform them of pertinent findings.
   • A formal presentation of the report by the auditor to the Board of Commissioners is required.
8. Audit Timeline - Washington Housing Authority's fiscal year ends September 30. The audit for FY 2023 will be required to be performed prior to December 31st, 2023, and the audit report must be submitted to HUD by January 31st, 2024. The following timeline will be followed by the Agency and auditor for the completion of the Agency's financial statement and federal program audits.

August 

• The Board of Commissioners approves the audit engagement, scope, timing, and fees. The audit planning meeting occurs between the auditors and the Executive Director.

• The Agency closes the fiscal year and prepares audit schedules.
• Fee accountant prepares financial statements.
• A list of items needed at the start of the onsite field work is communicated from the auditor to the Executive Director.
• Electronic files of tenant waitlist and populations are sent to the auditor for sample selection.

• Year-end financial statement audit field work and review takes place. Onsite fieldwork must be completed no later than May and Exit conference with finance committee and ED.

• Reports - The auditor will submit to the agency one (1) original unbound, one (1) electronic and ten (10) bound copies of the audited financial statements including the audit reports to the Executive Director prior to the August Board Meeting, which is scheduled for the 4th Thursday of every other month. The auditor will present the audit to the Board of Commissioners when scheduled. Final submission to HUD REAC and the Federal Clearinghouse by June 30. 

• The Executive Director has the responsibility for the oversight of the audit and coordination with the Board of Commissioners as necessary.
• The Executive Director/Accountant serves as the liaison with the auditors and has responsibility for coordinating the financial statements and single audits for the Agency.
• The Executive Director/Accountant coordinates the preparation of financial processes and internal control descriptions and the audit schedules utilized by the auditors during the audit process.
• The audited FDS is prepared by the fee accountant and is reviewed and submitted by the Agency and auditor, respectively.

The Housing Agency will provide the following GAAP-based statements and schedules to the Auditor:

• Final trial balances of all funds with appropriate reconciliation of control accounts to detail records.
• Preliminary Financial Data Schedule (FDS).
• Financial Statement drafts including footnotes and supplemental schedules.
• Management Discussion & Analysis.

Auditor Responsibilities

• The audit senior or manager will provide the Executive Director with timely reports during field work should any questions, concerns, potential findings, questioned costs, reportable conditions, weaknesses, or deficiencies, which is identified by the audit firm staff. 
• The auditor will substantially complete the audit work and the engagement manager and engagement partner, to the fullest extent possible, will review the audit work papers prior to the audit team leaving the field (Agency). 
• The auditor will have an exit conference with the ED and financial committee and inform the Agency about the nature of the proposed management letter comments or single audit exceptions prior to the completion of the audit field work.
• The auditor will keep confidential the Agency data and information and such information will not be used for any purpose other than to perform the agreed-upon services.

1. Notice of Intent to Propose. If your firm elects to respond to this RFQ, notify Erica Spruill via email by 4 PM EST 12/1/2023.
2. Prospective offerors requiring any explanation or interpretation of the solicitation must request it in writing no later than 4:00 pm EST on 12/1/2023. The request must be addressed to Shannon Alderman via email. Any information given to a prospective offeror about this solicitation will be furnished to all other prospective offerors as a written amendment to this solicitation. After this date and time, responses to questions on the RFQ will not be provided to any prospective offeror. Responses to questions must be made in writing before the deadline for the submission of written questions. 
3. Proposals are to be submitted in a sealed envelope clearly marked RFQ: WHA, Request for Audit Services and will be received until Due Date and Time: December 8, 2023, 4:00 PM (EST) time at Washington Housing Authority, 809 Pennsylvania Ave, Post Office Box 1046, Washington, North Carolina 27889. Any proposal received/time-stamped after December 8, 2023, 4:00 PM EST time will be considered late and will be returned. If the proposal is hand-delivered, please allow enough time as there may be other clients, etc. at the front desk and you may have to wait to get your proposal time-stamped. Proposals must be time-stamped. If a proposal is sent by mail or courier, the proposal will be time-stamped upon receipt.
4. The offeror should submit a signed original and one copy of its proposal.
5. No proposal may be withdrawn or modified in any way after the deadline for proposal submittal. Proposals shall remain firm and valid for ninety (90) days from said deadline.
6. The proposal must be completed in its entirety, completing all forms included in the proposal packet. If the offeror should have any questions regarding the forms, email Shannon Alderman, Director of Finance, or call 252.644.2413. 
7. Proposals are to be submitted in narrative form and are to include the Price Proposal Template included in this package.
8. Offerors may supplement their proposal with attached sheets for the purpose of adding or otherwise explaining any further conditions the offeror wishes to have considered. Such supplemental attachments are to be considered items to be reviewed, accepted, rejected, or further considered by the evaluation committee.

• For the principal supervisory and management staff, including engagement partners, managers, or other supervisors, indicate whether each person is licensed to practice as a certified public accountant in the state. 
• For each staff, provide their job title, background, and experience, including information on the government auditing experience of each person, relevant continuing professional education, and membership in organizations relevant to the performance of this audit. 
• Include in the staffing plan, the total estimated hours to be performed onsite and offsite at the auditor's office by job classification, for example, partner, manager, senior, and staff.

1. Evidence that the key personnel that will be reviewing all work performed under the engagement is licensed as a certified public accountant.
2. An original certificate evidencing the contractor's current industrial (worker's compensation) insurance carrier and coverage amount.
3. An original certificate evidencing the contractor's General Liability coverage.
4. An original certificate evidencing the contractor's Professional Liability and/or "errors and omissions" coverage.
5. A copy of the contractor's business license allowing the entity to provide such services within the jurisdiction.
6. A copy of the contractor's license issued by the State of record allowing the contractor to provide the services provided in the RFP. 

1. Audit Services. The auditor will submit three (3) invoices for each audit. The three invoices will total the Total Hours, Annual Fee (all Inclusive) shown on Table 1 of the offeror's submission for each respective year, regardless of actual hours worked or other expenses incurred. The auditor will submit an invoice for payment based on the schedule below.
   1. Thirty percent (30%) of the total annual fee upon the completion of the field work
   2. Thirty percent (30%) of the total annual fee upon delivery of the audit report.
   3. Forty percent (40%) of the total annual fee after approval of the audit by HUD-REAC.
2. Consultation and Assistance Services. The auditor shall invoice the Agency monthly for consultation and assistance services as these costs are incurred. The Agency will provide payment within 30 days of an acceptable invoice.
3. Equitable Adjustment. At any time, the Agency may, by written notice, make changes in or additions to work or services within the general scope of the agreement. If such changes are made, an equitable adjustment will be made in the cost of the audit using the rates specified in the agreement. If the auditor believes that a change in or addition to work is beyond the general scope of the agreement, the auditor must notify the Agency in writing within 10 days of notification to begin such work. The final administrative authority in settling such disputes shall rest with the Agency.

1. Firm's Knowledge and Expertise with PHAs and HUD Programs - The proposal demonstrates the firm's experience with generally accepted accounting principles and audit standards as they apply to housing authorities.
   • 25 Points
2. Management and Staffing
   • The audit approach adequately describes the work to be performed and provides information on the sampling techniques and analytical procedures that will be used.
   • The offeror's proposed management plan for assigning and overseeing the work and the proposing staffing and proposed hours provides assurance that:
   • The firm has assigned staff to the project with the necessary expertise for performing and reviewing the work.
   • The number of hours proposed by the firm to complete the audit appears reasonable.
   • The firm's approach will meet the Agency's provided timeline.
     • 25 Points
3. Quality of Firm's References and Peer Review
   • The offeror has provided evidence of the successful performance of similar audits for other housing authorities. 
   • The prior audit experience with other housing authorities have been deemed acceptable as evidenced by references and the housing authorities' response to the reference check.
   • Latest peer review and the results of any federal or state desk reviews (if applicable) has been determined to have been acceptable.
   • The firm has not had any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organization that would be deemed concerning.
     • 20 Points
4. Section 3 Requirements
   • The offeror is a Section 3 firm or has proposed that a portion of the work is performed by Section 3 firms, i.e., small, and minority-owned businesses, women's business enterprises, labor surplus area businesses, or firms that are substantially owned by a PHA resident.
     • 10 Points
5. Price
   • The offeror's cost seems reasonable based on the services requested and the offeror's management and staffing plan for each of the requested year(s).
     • 20 Points

1. Form HUD 5369-B, Instructions to Offerors - Non-Construction. 
2. Form HUD 5369-C, Certifications and Representations of Offerors - Non-Construction Contract.
3. Form HUD 5370-C, General Conditions for Non-Construction Contracts

1. No material belonging to the Housing Agency may be removed from the office of the Housing Agency. 
2. All work performed at the Housing Agency will be during regular business hours of the agency (8:30 AM to 5:00 PM Monday through Friday).
3. The Auditor warrants that he/she has not employed any person to solicit or secure the contract upon any agreement for a commission, percentage, brokerage, or contingent fee. Breach of this warranty shall give the Housing Agency the right to terminate the contract, or in its discretion, to deduct from the Auditor's fee the amount of such commission, percentage, brokerage, or contingent fees.
4. The Auditor shall not assign or transfer any interest in the contract without prior approval of the Housing Agency.
5. The Auditor certifies that he/she presently has no interest and shall not acquire any interest, direct or indirect, in the projects and/or programs of the Housing Agency, or any other interest, which would conflict with the performance of his/her audit.
6. The Housing Agency reserves the right to request changes in the selected firm's representation if at the Agency's discretion, assigned personnel are not satisfying the needs of the Housing Agency.

Addendum No. 1

Date: November 9, 2023
RFP: RFQ 2023-2025 WHA Audit Services
Proposal Due: December 8, 2023, 4 pm EST
Proposal Opening: December 8, 2023, 4 pm EST

Greetings, 
The due date and time for all proposals has been extended to Friday, December 8, 2023, no later than 4:00 PM EST.

Clarification:

As listed under "Description of Entity"

• Rural Development. The Agency administers 60 units of low-income housing, a program of the U.S. Department of Agriculture.

This program is under Washington Housing Nonprofit Inc. and requires a separate audit in compliance with USDA Rural Development Auditing Standards. The end of the fiscal year is December 31.

An audit should consist of the following items at a minimum:

• Independent Auditor's Report
• Financial Statements
  
  • Balance Sheets
  • Statements of Operations
  • Statements of Changes in Partner's Equity (Deficit)
  • Statements of Cash Flows
• Notes to the Financial Statements
• Supplemental Information
  
  • Multiple Family Housing Borrower Balance Sheet - Form RD 3560-10
  • Multiple Family Housing Project Budget/Utility Allowance - Form RD 3560-7
  • Supplemental Information
• Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
• Audit Findings on Compliance
• Independent Accountants Report on Applying Agreed-Upon Procedures
• Schedule of Agreed-Upon Procedures

Other Financial Reports The requirements below are in addition to the requirements outlined above. Standards for state and local governments, Indian tribes and Nonprofit Organizations. Some of these organizations must submit audits in accordance with 7 CFR Part 3052 (OMB Circular A-133 requirement). For guidance meeting these requirements, the auditor may refer to the AICPA Audit and Accounting Guide for Audits of State and Local Governmental Units. The term "Federal financial assistance" is defined in 7 CFR 3052.105, but such federal assistance does not include rental subsidies (i.e., Rental Assistance). Circular A-133 requires reporting by non-Federal entities with loan balances in excess of $500,000 where the Federal Government imposes continuing compliance requirements (7 CFR 3052.205(b)(2)). RRH and Farm Labor Housing (Off-Farm) loan programs have continuing compliance requirements. Organizations subject to A-133 must submit the A-133 single audit and the borrower's certified performance standards, Budget Actuals and the Balance Sheet. Agreed-Upon Procedures are not required with this audit. These financial reporting requirements are effective for audits ending December 31, 2007, and thereafter. Questions concerning RRH audit requirements should be directed to the Rural Development office in the state where the property is located and serviced.

All other requirements remain unchanged. Offerors must take due notice and be governed accordingly. This addendum must be acknowledged as indicated in the Request for Proposals or your proposal may not be considered.

Shannon Alderman
Director of Finance, Washington Housing Authority
Email Shannon
Website: www.washingtonhousingauthority.org