TOPIC: OFFICE: Auditor STATE: KS DATE: 03/26/2012 QUESTION / … · 2013-10-21 · Single Audit Work Contracted Out 1 TOPIC: Single Audit Work Contracted Out OFFICE: Auditor STATE:

Single Audit Work Contracted Out 1

TOPIC: Single Audit Work Contracted Out OFFICE: Auditor STATE: KS DATE: 03/26/2012 QUESTION / ISSUE: Kansas contracts its Single Audit to CPA firms, and we’re trying to improve our process. If you contract part or all of your Single Audit work to contractors, we would like to know what's contained in your Invitation for Bids document, and what your bid evaluation methods are. I would appreciate it if you could provide us with your IFB and bid evaluation documents, and any other pertinent information.

State Comments Arkansas We do not contract out our statewide single audit. Colorado Attached for your reference is the Request for Proposal (RFP) template and the Bid

Evaluation template we use to solicit and evaluate proposals for award selection. At the Colorado Office of the State Auditor (OSA), we contract out portions of Single Audit Work to multiple contractors to assist us in completing the Statewide Single Audit. Our process of determining which state agencies’ and institutions’ audits will be contracted, including what Single Audit work will be contracted, begins in January each year. The RFP is tailored for each agency/institution, and is posted to the OSA’s public website. In addition, individual contractors who we have worked with in the past are sent an e-mail with the attached proposal and invitation to bid. Prospective bidders have an opportunity to make inquiries to the assigned OSA contract monitor before submitting their proposal. Questions are consolidated and summarized, and responses are posted to the OSA’s public website and individual e-mails are sent to prospective bidders. Once all proposals have been received and the response deadline has passed, two individuals with experience as contract monitors will independently evaluate and score each bid to determine the winner using the Bid Evaluation template. The winning bidder along with each firm that has submitted a proposal is notified via e-mail the firm awarded the contract and the price.

Florida We don’t contract with a CPA firm for the Single Audit of the State of Florida. Guam Guam OPA contracts out all financial audits of the Government of Guam and the

individual component units. You can readily find the Requests for Proposals (which can be downloaded) on our website. Most recently we issued an RFP for a component unit (March 23), which can be found on the main page of our website. Past RFPs were the Guam Power Authority (July 2011) and the Guam International Airport Authority (June 2011). It is quicker to find the RFP by date, although a search can still be used to locate the RFP. We do not use a standard form evaluation. Instead a summary memo is used outlining the scoring criteria and scores, the evaluators, and general discussion of the selection etc. These memos are on average about 4 pages long.

Iowa We do not contract any of the Single Audit work out to contractors. Louisiana Our office does contract part of our Single Audit work to independent CPA firms. All of

our bid documents can be viewed on our website at http://www.lla.la.gov/stategovernment/statecontracts/, except for our bid evaluation document, which is attached.

Wyoming Attached are two documents. The attached Contract includes the Request for Proposal in its entirety as an Appendix. The second document is the scoring grids we used to assess the two bidders. We only had the two bidders. Five of us independently reviewed and rated the firms. The evaluations were then averaged. Cost points were added based on several criteria and were calculated separately from the technical evaluations.

COLORADO

(Audit Name) Financial and Compliance Audit

(Audit Year) Evaluation of Bid Proposals Evaluation Criteria Maximum

Points Possible

(Firm Name) (Firm Name)

1. Adequacy and Completeness of proposal with respect to information specified in RFP.

15

2. Breadth and depth of experience of staff.

25

3. Sufficient size organization to adequately staff audit

15

4. Proposed costs (Fees and Hours) 25

5. Comprehensiveness and appropriateness of work plan

20

TOTAL POINTS 100

Directions: Evaluator should assign points for each of the criteria up to the maximum number of points possible. For example, an evaluator could assign from 0 to 20 points for “Comprehensiveness and appropriateness of work plan” depending on the evaluator’s judgment of the merits of the proposal. Evaluator Signature:_________________________________ Date:_____________________ COMMENTS: (Attach additional page(s) if needed)

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COLORADO OFFICE ````` OF THE STATE

AUDITOR

A REQUEST FOR PROPOSAL

FINANCIAL AND COMPLIANCE AUDIT

DEPARTMENT/AGENCY/UNIVERSITY, ETC.

FISCAL YEAR ENDED DATE

RFP Date

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TABLE OF CONTENTS

SECTION I: Administrative Information SECTION II: Information to Be Included in Proposal SECTION III: Proposal Evaluation Process SECTION IV: Supplemental Information

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SECTION I

ADMINISTRATIVE INFORMATION A. ISSUING OFFICE

This request for proposal (RFP) is issued by the Office of the Colorado State Auditor. The terms State Auditor, State, and State of Colorado are used interchangeably. All proposals should be delivered to:

Office of the Colorado State Auditor

Legislative Services Building 200 East 14th Avenue

Denver, Colorado 80203 Attn: Name

Email address

B. BACKGROUND INFORMATION

The Office of the State Auditor (OSA) is soliciting proposals to conduct an audit of provide background information

C. SERVICES REQUIRED

The purpose of this RFP is to solicit proposals to perform a financial and compliance audit of the Department/Agency/University, etc. for the fiscal year ending enter year end. The financial and compliance audit is to be performed in accordance with accounting and auditing standards described in subsection O below. Audit work to be performed for the fiscal year ending enter year end consists of the following: insert scope of work

D. ORAL PRESENTATION

The contractor may be required to testify for about one hour before the Legislative Audit Committee and one other legislative committee. This testimony will be an oral summary of the written report with questions by Committee members and verbal responses from the contractor and from the Department/Agency/University/etc In addition, the contractor is expected to provide oral presentations to the Department/Agency/University/etc Audit Committee at the commencement and conclusion of the audit. Various other meetings

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with State Auditor and Department/Agency/University/etc personnel will be required to communicate requirements, expectations, issues, and results, to ensure a smooth and timely completion.

E. INQUIRIES SECTION

Prospective bidders may make written inquiries concerning this RFP to obtain clarification of requirements. Please address all inquiries to Name, Title, e-mail address, 303-869-3060 (fax). No inquiries will be accepted after 5:00 p.m. MDT on Date.

F. SUBMISSION

All proposals become the property of the State Auditor upon receipt and will not be returned to the bidder. The State Auditor shall have the right to use all ideas, or adaptations of these ideas, contained in any proposal received in response to this RFP. Selection or rejection of the proposal will not affect this right.

G. ACCEPTANCE OF PROPOSAL

This RFP does not commit the State Auditor to award a contract, to pay any costs incurred in the preparation of a bid submitted in response to this request, or to procure or contract for services or supplies. The State Auditor reserves the right to accept or reject, in part or in its entirety, any or all bids received as a result of this RFP if, in the opinion of the State Auditor, it is in the best interest of the State to do so. The lowest cost proposal will not necessarily be selected. Final scope and price may be negotiated after selection of the contractor.

H. PROPOSALS - SCHEDULE

The following schedule will be followed: 1. RFP mailed to prospective bidders Day, Date 2. Prospective bidder's inquiry deadline Day, Date 3. OSA response to inquiry deadline Day, Date 4. Proposal submission deadline (5:00 PM) Day, Date 5. Bid selection Day, Date 6. Contract date Day, Date

Any proposal received after the submission deadline will not be considered. The proposal is to be submitted to the State Auditor via email addressed to the Office of the State Auditor representative listed in Section I, Part D. The proposal must be sent by a person legally authorized to bind the bidder. Optionally, Five (5) bound copies may be submitted, signed by a person legally authorized to bind the bidder.

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I. ADDENDUM OR SUPPLEMENT TO REQUEST FOR PROPOSAL

The State Auditor reserves the right to issue amendments to this RFP prior to the closing date for submission of proposals. In the event that it becomes necessary to revise any part of this RFP, an addendum to this RFP will be provided to each prospective bidder.

J. AWARD WITHOUT DISCUSSION

The State Auditor reserves the right to make an award without further discussion of proposals received. Therefore, it is important that the proposal be submitted in the most complete terms possible from both the technical and cost standpoint.

K. AWARD INFORMATION TO UNSUCCESSFUL FIRMS

The State Auditor will notify all unsuccessful bidders after the award. No information will be released after the proposal submission deadline until an award has been made.

L. JOINT VENTURES

No joint venture proposals will be accepted. However, this requirement does not preclude the use of outside special consultants if deemed necessary by the firm.

M. OTHER WORK PERFORMED FOR THE DEPARTMENT /AGENCY/

UNIVERSITY, ETC.

In its proposal, the firm should describe any non-audit work performed for the Department/Agency/University/etc within the past two years, and why this work would not impair the firm’s independence in performing the Fiscal Year year financial and compliance audit of the Department/Agency/University/etc.

N. ELIGIBLE FIRMS

Any firm providing financial and compliance audit services for Department/Agency/University/etc under contract with the State Auditor in previous years may bid on this contract providing that the lead partner, under the proposal, has not performed audit services beyond a total maximum of five years in a 10-year period.

O. STATE AUDITOR LIAISON

The State Auditor will designate an individual from her office to be a liaison to the firm throughout the audit. This individual will attend entrance/exit conferences and assist the firm to understand State Auditor requirements and reporting guidelines.

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P. GENERAL INFORMATION

1. Audit Standards

The audit shall be performed in accordance with generally accepted auditing standards as promulgated by the American Institute of Certified Public Accountants in Statements on Auditing Standards, the standards for financial and compliance audits contained in Government Auditing Standards – July 2007 Revision issued by the Comptroller General of the United States, the Single Audit Act as amended, and the Provisions of OMB Circular A-133, the AICPA Audits of State and Local Governmental Units, and Fiscal Rules promulgated by the State Controller. Further, auditors of colleges and universities should follow additional guidelines applicable to higher education, including, but not limited to, the following:

a. The AICPA Audit Guide, State and Local Governments, March 1, 2008

Edition.

b. Accounting principles promulgated by the National Association of College and University Business Officers (NACUBO) in its publication, Financial Accounting and Reporting Manual.

c. Higher Education Accounting Standards promulgated by the Colorado

Committee on Accounting Standards in Higher Education, and issued by the State Controller.

d. The U.S. Department of Education Audit Guide, Student Financial

Assistance Programs.

e. The Department of Higher Education Audit Guide, Colorado Funded Student Aid.

2. Prior Audits and Workpapers

The Department/Agency/University, etc.’s audit report for the fiscal year ended year end and audit reports for years prior to that is available at our web site at: www.state.co.us/audito

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3. Timing Considerations

All internal control and compliance audit work, and corresponding draft report findings and recommendations, must be completed by Date. The major programs for the Single Audit Act for the Dept/State/University, etc. are determined by the Office of the State Auditor at the statewide level. For Fiscal Year year, the major program to be audited is anticipated to be the enter program. Proposed audit adjustments and their effect on the Dept/State/University, etc.'s financial statements should be provided to the State Auditor by Date. A draft report should be completed by about Date. The final audit report must be delivered to the State Auditor by Date.

4. Audit Contract Period

The firm selected will be awarded a one-year contract which may be renewed on an annual basis for up to four additional years subject to acceptable performance and costs.

Q. AWARD OF BID

The contract will be awarded to that bidder whose proposal will be most advantageous to the State of Colorado, price and other factors considered. The successful bidder is expected to execute and adhere to the terms and conditions in the OSA’s standard contract and its related exhibits. A copy of the OSA’s standard contract and its related exhibits is included in Section IV - Supplemental Information of this RFP.

R. SUBMISSION OF INVOICES

The contractor may submit monthly invoices for audit work completed. The State Auditor reserves the right to withhold 10 percent of the total contract amount pending satisfactory completion of the audit.

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SECTION II INFORMATION TO BE INCLUDED IN PROPOSAL All proposals must include the information requested in this section and be organized in the same manner as this section. A. TITLE PAGE

The proposal will identify the RFP subject, firm name, local address, telephone number, name of contact person, and the date.

B. TABLE OF CONTENTS

The proposal will include a clear identification of the material included in the bid proposal by section and by page number.

C. TRANSMITTAL LETTER

Please limit the transmittal letter to two or three pages. Provide the names of individuals authorized to make representations for the firm and their titles, addresses and telephone numbers.

D. PROFILE OF THE FIRM

The proposal must:

1. State whether the firm is local, national, or international.

2. Give the location of the office from which the work is to be done and number of partners, shareholders, and managers and other professional staff employed at that office.

3. Describe the range of activities performed by the local office.

4. Describe the local office's capability, including the numbers and classifications of

personnel who will work on the audit.

5. Affirm that the firm is a properly licensed certified public accounting firm authorized to practice in the State of Colorado.

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6. Affirm that the firm has participated in a quality control review within the past three years. A copy of the review must be included in the proposal.

7. Affirm that the firm does not have any past history of substandard work.

8. Affirm that the firm is independent for this audit engagement. E. QUALIFICATIONS OF ASSIGNED PERSONNEL

The proposal must identify the principal staff (i.e., partners/principals, managers, and supervisors/in-charges) who will work on the audit, including personnel not from the local office and any specialists or subcontractors to be used. The proposal must include a resume of all principal staff highlighting their professional qualifications and similar audit work that they have performed (resumes should be included in an appendix).

F. FIRM'S APPROACH TO THE AUDIT

The proposal must include a general description of the methodology, approach, tools, and resources to be used to conduct the audit.

G. COMPENSATION

1. The proposal must state the number of professional staff hours estimated to complete the audit work by staff level, the hourly rate, and the resulting total cost. The bidder is advised that travel costs incurred in the performance of audits are reimbursable only as a part of the hourly rate and must be covered under said rate and will not be separately reimbursed.

2. The proposal must state the total inclusive maximum fee for which the work

requested will be done, excluding audit work for any federal major programs. The fees for this audit work will be added to the base price. The anticipated fee for the audit of a federal major program for Fiscal Year 2011 is $5,650.

3. The proposal should affirm that all prices, terms, and conditions will be held firm

for at least 90 days after the bid opening. H. DELIVERY SCHEDULE

The proposal must include a schedule of the audit work to be performed and delivery date of the required reports.

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I. ADDITIONAL DATA

Since the preceding sections are to contain information that is specifically requested, the firm may include any additional information considered essential to the proposal in this section. The firm should not include general information publications, such as directories or client lists.

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SECTION III PROPOSAL EVALUATION PROCESS A. GENERAL

An evaluation team will judge the merits of proposals received in accordance with the general criteria defined below. The bidder is responsible for providing all information requested in this RFP, and failure to do so may result in disqualification of the proposal.

The evaluation committee will select the bidder whose proposal is most responsive to the State Auditor's needs while being within available resources. The specifications within this RFP represent the minimum performance necessary for response.

During the evaluation process, the evaluation committee may, at its discretion, request any one or all firms to make oral presentations or answer questions about their proposals. Not all firms may be asked to make such oral presentations.

B. MANDATORY CRITERIA

1. The firm must be licensed to practice as a certified public accounting firm in the State of Colorado.

2. The firm must have had a quality control review completed within the past three

years. A copy of the review must be included in the proposal.

3. The firm is independent for the audit engagement. C. GENERAL CRITERIA

1. Adequacy and completeness of the proposal with regard to the information specified in the RFP.

2. Breadth and depth of applicable experience.

3. Qualification of staff, including subcontractors, specialists, and consultants to be

assigned to the audit.

4. Organization, size, and stability of the firm.

5. Proposed costs (number of hours and hourly rate).

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6. Technical criteria - (a) comprehensiveness and appropriateness of the audit work

plan, and (b) realistic time estimates to complete each segment of the audit based on staff to be assigned.

D. TOTAL SCORE

The evaluation team will assign scores to the proposals based on the established criteria. The State Auditor will make the final decision on the contract award.

SECTION IV SUPPLEMENTAL INFORMATION Enclosed with this RFP are the following:

1. Standard OSA contract and related exhibits. The successful bidder is expected to execute and adhere to the terms and conditions in the OSA’s standard contract and its related exhibits.

2. Statewide Attestation memos to be submitted to the Office of the State Auditor statewide audit team that were applicable for the prior fiscal year audit.

3. Items Needed for Cash Funds Uncommitted Reserves Reporting

The following website links are included to provide additional information to aid in preparation of the proposals:

Office of the State Auditor audit reports:

http://www.leg.state.co.us/OSA/coauditor1.nsf/ReportPublic?openform

LOUISIANA LEGISLATIVE AUDITOREVALUATION SUMMARYSolicitation Number: Proposal for: Engagement Type: Contract Period: Engagement Periods Ending: PRIOR AUDITORPoints Based on Technical Evaluation of Proposal: 0 0 0 0

ICPA Name ICPA Name ICPA Name ICPA Name(city) (city) (city) (city)

Yes No Yes No Pt. Yes No Pt. Yes No Pt. Yes No Pt.Responsiveness

1. The proposal has not been rejected (see general section below).

Top Proposers1. The proposer is considered one of the top proposers. Y Y Y Y

Proposers' Conference1. The ICPA attended the proposers' conference.

Minority/Disadvantaged Firm 1. The proposal provides for minority and/or disadvantaged firm

involvement (m-minority firm, d-disadvantaged firm).

Additional Services/Campaign Contributions1. Does the ICPA provide additional services to the state agency?2. Does the proposal disclose contributions to campaigns for public office?

Pricing (Completed by Evaluation Committee Only)1. Prior Fee: $2. Amount of Bid: Fee Hours Fee Hours Fee Hours Fee Hours Fee Hours

FYE: $ $ $ $ $

FYE: $ $ $ $ $

FYE: $ $ $ $ $

Total for all periods $ $ $ $ $

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Yes No Yes No Pt. Yes No Pt. Yes No Pt. Yes No Pt.

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Quality Assurance 1. The most recent required quality assurance review was performed in

accordance with the (select one):a. AICPA standards for peer review, orb. Other peer review standards (Identify).

2. With respect to the required review mentioned above (select one):a. a "pass" report has been issued, Y 0 b. a "pass with deficiencies" report has been issued, or Y -5 c. a "fail" report has been issued. Y -15

3. If the proposer 's auditing practice is less than three years old and aquality assurance review has not been performed, (select one):a. the quality assurance review is scheduled earlier than required (enter date), or Y 3 b. the quality assurance review is not scheduled. Y 0

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General (note: If the response to any of the following is "no", reject.)1. The proposal was received before the due date and time? If no, enter

the date received. 2. The proposal identifies the engagement periods. 3. The proposal is signed by an authorized firm representative.4. The proposal fee has been placed in a separate, sealed envelope, which

identifies the solicitation number, the ICPA, and the state agency.5. The proposal does not indicate any scope limitation.6. The legislative auditor is not aware of any condition that would cause the

proposer to fail to meet the state licensing requirements to practice public accounting in Louisiana. If no, how was the matter confirmed.

7. The legislative auditor is not aware of any condition that would cause the proposer to fail to meet the applicable standards for independence. If no, how was the matter confirmed.

8. The legislative auditor is not aware that the proposer has a record of substandard audit work within the past five years. If no, how was thematter confirmed.

9. The legislative auditor is not aware that the proposer has engaged in unethical practices within the past five years. If no, how was the matterconfirmed.

10. The legislative auditor is not aware of any condition that would cause the proposer to fail to comply with continuing professional educationrequirements of the Louisiana State Board of CPA's and Government Auditing Standards . If no, how was the matter confirmed.

11. The legislative auditor is not aware of any condition that would cause the proposer to fail to procure appropriate professional liability insurance. Ifno, how was the matter confirmed.

12. The proposal specifies the application of Government AuditingStandards .

13. The legislative auditor is not aware of any condition that would cause theproposer to fail to comply with peer review requirements contained inGovernment Auditing Standards.

14. If the prior ICPA has performed this engagement under a contract for the pastsix years, the engagement manager position has rotated.

15. The proposer is in an active status in the legislative auditor's ICPA database.

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Compliance with State Audit Law1. The number of governmental engagements conducted within the last three

years was (enter a number):2. With respect to the ICPA correspondence file, the number of delinquent

governmental engagements within the last three years was (enter a number):3. The percentage of delinquent engagements to the number of governmental

engagements conducted is within the following range (select one):a. from 0% to 5%, Y 3 b. from 5% to 20%, Y 2 c. from 20% to 50%, or Y 1 d. above 50%. Y 0

4. With respect to the ICPA correspondence file, the number of times wehave requested reports, management letters, or other information thatwas omitted from a report within the last three years was (enter a number):

5. The percentage of omissions from reports to the number of governmentalengagements conducted is within the following range (select one):a. from 0% to 5%, Y 3 b. from 5% to 20%, Y 2 c. from 20% to 50%, or Y 1 d. above 50%. Y 0

6. With respect to the ICPA correspondence file, within the past threeyears, the number of unapproved engagements was (enter a number):

7. The percentage of unapproved engagements to the number of governmentalengagements conducted is within the following range (select one):a. from 0% to 5%, Y 3 b. from 5% to 20%, Y 2 c. from 20% to 50%, or Y 1 d. above 50%. Y 0

8. Within the last three years, the ICPA has not been suspended for failureto complete reports in a timely manner. Y 4

9. Within the last three years, approval of an engagement has notbeen withdrawn. Y 4

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Professional Capacity of the Firm1. The proposer's office is located in close enough proximity to the state

agency to make the ICPA readily available to the agency (select one): a. office is located 0 to 30 miles from the state agency, Y 3 b. office is located 31 to 60 miles from the state agency, or Y 2 c. office is located 61 to 100 miles from the state agency. Y 1

2. The professional staff of the firm is composed of (select one): a. a sole practitioner,b. a practitioner and staff auditors,c. partners,d. partners and staff auditors, ore. partners, manager(s), senior auditor(s), and staff auditor(s).

3. The professional staff is (select one): a. 100 percent licensed, Y 5 b. at least 75 percent licensed, Y 4 c. at least 50 percent licensed, or Y 3 d. at least 25 percent licensed. Y 2

4. How many governmental engagements has the ICPA firm conductedover the past three years: a. 11 or more, Y 7 b. 4 to 10, or Y 5 c. 1 to 3. Y 2

5. Over the past three years, how many governmental engagements has theICPA firm conducted that are similar to the one being proposed on:a. 11 or more, Y 10 b. 4 to 10, or Y 7 c. 1 to 3. Y 4

6. The ICPA (firm) is a member of the AICPA per proposal. Y 1 7. The ICPA (firm) is a member of the LCPA per proposal. Y 1

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8. Within the past five years, disciplinary action has been undertaken by: a. no regulatory body, orb. the AICPA,c. a state board of accountancy,d. a state society of CPAs,e. a federal agency,f. a state agency,g. a state auditor, and/orh. any other regulatory body.

9. Regarding disciplinary action:a. no action has been undertaken, or Y 7 b. has been resolved satisfactorily in favor of the disciplinary body, Y 0 c. has been resolved satisfactorily in favor of the ICPA, and/or Y 7 d. is pending against the ICPA firm. Y 4

10. During the past 10 years, has a partner, owner, manager, or principalofficer (including staff members being proposed for the audit) beenconvicted of a felony; pleaded nolo contendere to a felony charge;been held liable in a civil action by final judgment involving a violation ofany federal, state, or local law relating to the performance of a servicecontract; settled a claim of nonperformance asserted by a proposing firm's client; or settled a claim relating to a service contract assertedby a regulatory body? (select one)a. There has been no action, or Y 10 b. there has been action. Y -10

11. Is a partner, owner, manager, or principal officer (including any staffmembers being proposed for the audit) subject to any currentlyeffective injunctive or restrictive order or decree relating to theperformance of a service contract? (select one)a. There is no order or decree, or Y 10 b. there is an order or decree. Y -10

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Audit Team1. Resumes for supervisory personnel (partner, manager, supervisor, and

senior) that are included with the proposal (select one): a. detail their governmental auditing experience, or Y 10 b. provide general information about their governmental auditing experience. Y 3

2. According to the proposal, the continuing education courses relating togovernmental accounting and auditing practices that have been attendedby supervisory personnel to meet Government Auditing StandardsCPE requirements are (select one):a. specifically identified, or Y 7 b. not specifically identified. Y 2

3. The above referenced CPE credits are presented in a format specifiedby the Response to the Solicitation for Proposals (distinguishes betweenprior and current reporting periods). Y 2

4. The supervisory personnel proposed for the engagement is: a. 100 percent licensed, Y 5 b. at least 75 percent licensed, Y 4 c. at least 50 percent licensed, or Y 3 d. at least 25 percent licensed. Y 2

Contract Period and Timeliness1. The proposal includes the appropriate contract period and the

separate engagements required. Y 3 2. The proposal includes appropriate dates for:

a. the start of field work, Y 2 b. the field work completion date, and Y 2 c. the report completion and transmittal date to the legislative auditor. Y 3

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Audit Approach/Agency Assistance1. The proposal includes a description of the scope of the audit and how the

audit will be conducted for both financial and compliance aspects that is (select one):a. tailored, or Y 10 b. general. Y 2

2. The proposal describes the detailed audit approaches that will be taken for the subsequent years. Y 5

3. The proposal includes a discussion regarding the ICPA firm's needs foragency technical assistance (EDP, internal audit, other technical). Y 1

4. The proposal includes a discussion regarding the ICPA firm's needs foragency nontechnical assistance (compile schedules, pull documents,other clerical). Y 2

Nature of Services1. In addition to Government Auditing Standards , the proposal indicates

that the audit will be conducted in accordance, or comply, with:a. Louisiana Governmental Audit Guide, Y 1 b. GAAS, and Y 1 c. OMB Circular A-133 where applicable. Y 1

2. The proposal specifically states that the ICPA will: 0-6 a. plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement caused by errors, frauds, or illegal acts; Yb. examine sufficient evidential matter to support the opinions and comments expressed within the auditor's reports; Yc. assess the accounting principles used and significant estimates made by management, as well as evaluate the overall financial statement presentation; Yd. include an assessment of risk that errors and frauds may cause the financial statements to contain a material misstatement and consider illegal acts that could have a direct material effect on the financial statements, and based on the assessment, design tests to detect such matters; Ye. to the extent required by standards and law, errors, frauds, or illegal acts detected during the audit should be included in the audit report; if federally assisted programs are involved, the federal and state cognizant agencies should be notified, and the audit committee should be notified; and Yf. convey to the state agency, as appropriate, those matters observed relating to opportunities for economies of operation or other matters that should be brought to the state agency's attention. Y

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Reports and Report Distribution 1. The proposal discusses the reports to be issued during the period:

(2 pt.s if all are mentioned) 0-2 a. a report expressing an opinion, or disclaimer, as to the fair

presentation of the agency's financial statements, Y b. an opinion, or disclaimer, as to the fair presentation, in all material respects

in relation to the financial statements taken as a whole, of the DOA, OSRAP AFR packet. Yc. a report on compliance and internal control over financial information based on an audit of the financial statements performed in accordance with Government Auditing Standards , Yd. a summary schedule of findings, Ye. a management letter, if applicable, detailing matters not significant or material in relation to the required reports, Yf. a summary schedule of prior audit findings, and Yg. management's corrective action plan. Y

FEDERAL AWARD ENTITIES2. The proposal discusses the federal reports to be issued:

(2 pt.s if all are mentioned) 0-2 a. An opinion or disclaimer as to the fair presentation, in all material

respects in relation to the financial statements taken as a whole, of the schedule of expenditures of federal awards, and Yb. a report on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133. Y

3. The proposal addresses the required report disclosures to include:(1 pt. if all are mentioned) 0-1 a. per diem or compensation paid to members of the governing board, Yb. professional service payments for surveys and studies, and Yc. DOA, OSRAP AFR packet. Y

4. The proposal states the appropriate distribution of the report:(1 pt. if all are mentioned) 0-1 a. one copy to the legislative auditor, Yb. one copy to each board member when there is an oversight board, Yc. one copy to any legislative oversight committee, Yd. ten copies to agency management, Ye. appropriate distribution required by OMB Circular A-133, Yf. one copy to each state grantor, and Yg. one copy to any state oversight agency. Y

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Audit Documentation1. The proposal includes the following audit documentation retention and

availability requirements:(2 pt.s if all are mentioned) 0-2 a. 5-year minimum retention period from the date of the audit report, Yb. availability of audit documentation for inspection, and Yc. copies provided at a cost of no more than .20 per copy. Y

Special Conditions1. The proposal includes the following special conditions:

(2 pt.s if at least 4 are mentioned, 3 pt.s if all are mentioned) 0-3a. ICPA agrees to notify the legislative auditor of any scope limitations; Yb. ICPA agrees to notify the legislative auditor if the firm withdraws from the engagement, specifying reasons; Yc. ICPA agrees to notify the legislative auditor immediately if any illegal or fraudulent acts are detected; Yd. ICPA agrees to notify the legislative auditor immediately if the audit due date can not be met, specifying reasons, and estimated date; Ye. ICPA agrees to notify the legislative auditor and the state agency being audited immediately if it is necessary to perform additional work than what was anticipated; Yf. ICPA agrees to notify the legislative auditor if the audit report is reissued and to distribute the reissued reports in the same manner as the original report; Yg. ICPA agrees not to perform additional services unless approved by the legislative auditor; and Yh. ICPA recognizes the legislative auditor's right to terminate the engagement contract at any time. Y

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Possible P

oints

Special Requirements1. The ICPA will assist the agency in compiling the financial statements. Y 5 2. The ICPA will assist the agency in preparing the DOA, OSRAP AFR packet. Y 5 3. The ICPA will perform any other special requirements addressed in the

agency's Solicitation for Proposal. Y 5

Disadvantaged and/or Minority Proposers (Select one)Disadvantaged audit firms are firms that have completed three or fewer governmental audits within the past three years.

1. According to the proposal, the proposer meets the followingcriteria (select one):a. is a disadvantaged audit firm and a minority audit firm, Y 13 b. is a disadvantaged audit firm, or Y 8 c. is a minority-owned audit firm. Y 10

2. According to the proposal the proposer (select one):a. will be assisted by a minority-owned audit firm, or Y 10 b. will be assisted by a disadvantaged audit firm. Y 5

0 0 0 0

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WYOMING

Contract for Audit Services State wide CAFR and Single Audit Between McGee, Hearne and Paiz, LLP, and the Wyoming Department of Audit

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CONTRACT FOR AUDIT SERVICES STATEWIDE CAFR and SINGLE AUDIT

1. Parties. The parties to this Contract are McGee, Hearne and Paiz, LLP, (Contractor) whose address is 314 West 18th Street, Cheyenne, Wyoming, 82001 and the Wyoming Department of Audit (Agency), whose address is Herschler Building, 3 East, Cheyenne, WY 82002. 2. Purpose of Contract. This contract establishes requirements for conducting the audit of the State’s Comprehensive Annual Financial Report and the Schedule of Federal Financial Assistance and related reports, in accordance with the Single Audit Act, for fiscal year 2012. 3. Scope and Limitations. Contractor shall conduct the audit in accordance with applicable auditing standards. Accordingly, Contractor shall examine, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assess the accounting principles used and significant estimates made by the State and evaluate the overall financial statement presentation. Contractor shall obtain reasonable, rather than absolute assurance that the financial statements are free of material misstatements, whether caused by error or fraud. Accordingly, a material misstatement may remain undetected. An audit is not designed to detect error or fraud that is immaterial to the financial statements. While an audit includes obtaining an understanding of internal controls sufficient to plan the audit and to determine the nature, timing and extent of audit procedures to be performed, it is not designed to provide assurances on internal controls or to identify significant deficiencies in internal controls. However, Contractor is responsible for ensuring that the Agency is aware of any such internal control deficiencies that come to its attention. The financial statements are the responsibility of the State. The State is also responsible for (a) maintaining effective internal controls over financial reporting, (b) identifying and ensuring the State complies with laws and regulations applicable to its activities and (c) making available to Contractor all financial records and related information and personnel with information of relevance to the audit. As required by professional standards, Contractor shall make specific inquiries of Agency and State officials about the representations embodied in the financial statements and the effectiveness of internal controls. Those standards also require that Contractor obtain from certain Agency and State officials a representation letter covering the financial statements. The results of Contractor’s audit tests, the responses to its inquiries and the written representations constitute the evidential matter Contractor will rely upon in forming an opinion on the financial statements. 4. Term of Contract and Required Approvals. This Contract is effective when all parties have executed it and all required approvals have been granted. The term of the Contract is

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from April 1, 2012 through April 1, 2013. All services shall be completed during this term. This Contract may be renewed, for up to three additional terms, by agreement of both parties in writing and subject to the required approvals. There is no right or expectation of renewal and any renewal will be determined at the discretion of the Agency. By law, contracts for professional or other services must be approved as to form by the Attorney General and approved by the Procurement Services Division of the Department of Administration and Information, Wyo. Stat. § 9-1-403(b)(v), and all contracts for services costing over one thousand five hundred dollars ($1,500.00) must be approved by the Governor or his designee as well, Wyo. Stat. § 9-2-1016(b)(iv). 5. Payment. The Agency agrees to pay the Contractor for the services described in this Contract and Appendix A, which is described more fully below and is attached to and made a part of this Contract. The total payment under this Contract shall not exceed eight hundred seventy-five thousand dollars ($875,000), based upon nine thousand two hundred fifty (9,250) total proposed hours. Contractor may invoice Agency monthly for partial payment. Such payment shall not exceed the amount calculated based upon the not to exceed amount of this Contract multiplied by the percentage of the total proposed hours worked during the invoice period. Partial payments shall not be made more than once per month. No payment shall be made for work performed prior to the date upon which the last required signature is affixed to this Contract. No payment shall be made prior to July 1, 2012. 6. Responsibilities of Contractor. The services to be provided by Contractor are described in Request for Proposal No. 0366-U, a copy of which is labeled Appendix A, attached hereto, and by this reference made a part of this Contract. Contractor will supply names and information of auditors working with certain state agencies' records to those state agencies requesting such for the purposes of conducting background investigations as required by state statutes. Contractor shall withdraw the assignment of any auditor whose background check is unsatisfactory. 7. Responsibilities of Agency. The responsibilities of the Agency and the State Auditor are described in Appendix A, which is attached and made a part of this Contract. 8. Special Provisions. A. Limitation of Payments. The Agency's obligation to pay the Contractor for services rendered pursuant to this Contract is conditioned upon the availability of state or federal government funds which are allocated to pay the Contractor. If funds are not allocated and available for the Agency to pay the Contractor for these services, the Agency may terminate this Contract at the end of the period for which the funds are available. The Agency shall notify Contractor at the earliest possible time if this Contract will or may be affected by a shortage of funds. No liability shall accrue to the Agency in the event this provision is exercised, and the Agency shall not be obligated or liable for any future payments due or for any damages as a result of termination under this section. This provision shall not be

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construed so as to permit the Agency to terminate this Contract to acquire similar services from another party. B. Monitor Activities. The Agency shall have the right to monitor all Contract related activities of the Contractor and all subcontractors. This shall include, but not be limited to, the right to make site inspections at any time, to bring experts and consultants on site to examine or evaluate completed work or work in progress, and to observe all Contractor personnel in every phase of performance of Contract related work. C. No Finder's Fees. No finder's fee, employment agency fee, or other such fee related to the procurement of this Contract shall be paid by either party. D. Nondiscrimination. The Contractor shall comply with the Civil Rights Act of 1964, the Wyoming Fair Employment Practices Act (Wyo. Stat. § 27-9-105 et seq.), the Americans with Disabilities Act (ADA), 42 U.S.C. 12101, et seq., and the Age Discrimination Act of 1975. The Contractor shall not discriminate against any individual on the grounds of age, sex, color, race, religion, national origin or disability in connection with the performance of this Contract. The Contractor shall include the provisions of this section in every subcontract awarded over Ten Thousand Dollars ($10,000.00) so that such provisions are binding on each subcontractor. E. Publicity. Any publicity given to the program or services provided herein, including, but not limited to, notices, information, pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Contractor, shall identify the Agency as the sponsoring agency and shall not be released without prior written approval from the Agency. 9. General Provisions. A. Amendments. Any changes, modifications, revisions or amendments to this Contract which are mutually agreed upon by the parties to this Contract shall be incorporated by written instrument, executed and signed by all parties to this Contract. B. Americans with Disabilities Act. The Contactor shall not discriminate against a qualified individual with a disability and shall comply with the Americans with Disabilities Act, P.L. 101-336, 42 U.S.C. 12101, et seq., and/or any properly promulgated rules and regulations thereto. C. Applicable Law/Venue. The construction, interpretation and enforcement of this Contract shall be governed by the laws of the State of Wyoming. The Courts of the State of Wyoming shall have jurisdiction over this Contract and the parties, and the venue shall be the First Judicial District, Laramie County, Wyoming. D. Assignment/Contract Not Used as Collateral. Neither party shall assign or otherwise transfer any of the rights or delegate any of the duties set forth in this Contract without the prior written consent of the other party. The Contractor shall not use this Contract, or any

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portion thereof, for collateral for any financial obligation, without the prior written permission of the Agency. E. Assumption of Risk. The Contractor shall assume the risk of any loss of state or federal funding, either administrative or program dollars, due to Contractor's failure to comply with state or federal requirements. The Agency shall notify the Contractor of any state or federal determination of noncompliance. F. Audit/Access to Records. The Agency and any of its representatives shall have access to any books, documents, papers, and records of the Contractor which are pertinent to this Contract. The foregoing notwithstanding, the working papers prepared in conjunction with the Contractor’s work are the property of Contractor, constitute confidential and proprietary information and will be maintained by the Contractor in accordance with its policies and procedures for a minimum time period of three years from the date of the issuance of the report. However, the Contractor shall allow the Agency access to its working papers upon written request. G. Availability of Funds. Each payment obligation of the Agency is conditioned upon the availability of government funds which are appropriated or allocated for the payment of this obligation. If funds are not allocated and available for the continuance of the services performed by the Contractor, the Contract may be terminated by the Agency at the end of the period for which the funds are available. The Agency shall notify the Contractor at the earliest possible time of the services which will or may be affected by a shortage of funds. No penalty shall accrue to the Agency in the event this provision is exercised, and the Agency shall not be obligated or liable for any future payments due or for any damages as a result of termination under this section. This provision shall not be construed to permit the Agency to terminate this Contract to acquire similar services from another party. H. Award of Related Contracts. The Agency may undertake or award supplemental or successor contracts for work related to this Contract. The Contractor shall cooperate fully with other contractors and the Agency in all such cases. I. Compliance with Laws. The Contractor shall keep informed of and comply with all applicable federal, state and local laws and regulations in the performance of this Contract. J. Confidentiality of Information. All documents, data compilations, reports, computer programs, photographs, and any other work provided to or produced by the Contractor in the performance of this Contract shall be kept confidential by the Contractor unless written permission is granted by the Agency for its release. K. Disputes/Remedies. In seeking to resolve any dispute relating to this Contract, the Agency does not waive its sovereign immunity. L. Entirety of Contract. This Contract consisting of eight (8) pages and Appendix A consisting of thirty-eight (38) pages represents the entire and integrated Contract between the

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parties and supersedes all prior negotiations, representations, and agreements, whether written or oral. To the extent any term or provision in Appendix A is different from, or inconsistent with any terms or provision in this Contract, the Contract shall govern and Appendix A shall be deemed to have been amended with the mutual consent of the parties unless the Agency otherwise directs in writing. M. Ethics. Contractor shall keep informed of and comply with the Wyoming Ethics and Disclosure Act (Wyo. Stat. § 9-13-101, et seq.), and any and all ethical standards governing Contractor’s profession. N. Extensions. Nothing in this Contract shall be interpreted or deemed to create a right or expectation that this Contract will be extended beyond the term described herein. Any extension of the Contract shall be initiated by the Agency, and shall be effective only after it is reduced to writing and executed by all parties to the Contract. Any agreement to extend this Contract shall include, but not necessarily be limited to: an unambiguous identification of the Contract being extended; the terms of the extension; the amount of any payment to be made during the extension; a statement that all terms and conditions of the original Contract shall, unless explicitly delineated in the extension agreement, remain as they were in the original Contract; and, if the duties of either party will be different during the extension than they were under the original Contract, a detailed description of those duties. O. Force Majeure. Neither party shall be liable for failure to perform under this Contract if such failure to perform arises out of causes beyond the control and without the fault or negligence of the nonperforming party. Such causes may include, but are not limited to, acts of God or the public enemy, fires, floods, epidemics, quarantine restrictions, freight embargoes, and unusually severe weather. This provision shall become effective only if the party failing to perform immediately notifies the other party of the extent and nature of the problem, limits delay in performance to that required by the event, and takes all reasonable steps to minimize delays. This provision shall not be effective unless the failure to perform is beyond the control and without the fault or negligence of the nonperforming party. P. Indemnification. The Contractor shall indemnify, defend and hold harmless the State, the Agency, and their officers, agents, employees, successors and assignees from any and all claims, lawsuits, losses and liability arising out of Contractor's failure to perform any of Contractor’s duties and obligations hereunder or in connection with the negligent performance of Contractor’s duties or obligations, including but not limited to any claims, lawsuits, losses or liability arising out of Contractor’s malpractice. Q. Independent Contractor. The Contractor shall function as an independent contractor for the purposes of this Contract, and shall not be considered an employee of the State of Wyoming for any purpose. The Contractor shall assume sole responsibility for any debts or liabilities that may be incurred by the Contractor in fulfilling the terms of this Contract, and shall be solely responsible for the payment of all federal, state and local taxes which may accrue because of this Contract. Nothing in this Contract shall be interpreted as authorizing the Contractor or its agents and/or employees to act as an agent or representative for or on behalf of the State of Wyoming or the Agency, or to incur any obligation of any kind on the behalf of the

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State of Wyoming or the Agency. The Contractor agrees that no health/hospitalization benefits, workers' compensation and/or similar benefits available to State of Wyoming employees will inure to the benefit of the Contractor or the Contractor's agents and/or employees as a result of this Contract. R. Kickbacks/Conflict of Interest. The Contractor certifies and warrants that no gratuities, kickbacks or contingency fees were paid in connection with this Contract, nor were any fees, commissions, gifts, or other considerations made contingent upon the award of this Contract. If the Contractor breaches or violates this warranty, the Agency may, at its discretion, terminate this Contract without liability to the Agency, or deduct from the Contract price or consideration, or otherwise recover, the full amount of any commission, percentage, brokerage, or contingency fee. Furthermore, Contractor warrants that no one being paid pursuant to the Contract is engaged in any activities which would constitute a conflict of interest with respect to the purpose of the Contract. If the Contractor breaches of violates this warranty, the Agency may, at its discretion, terminate this Contract without liability to the Agency. S. Notices. All notices arising out of, or from, the provisions of this Contract shall be in writing and given to the parties at the address provided under this Contract, either by regular mail, facsimile, e-mail, or delivery in person. T. Patent or Copyright Protection. The Contractor recognizes that certain proprietary matters or techniques may be subject to patent, trademark, copyright, license or other similar restrictions, and warrants that no work performed by the Contractor or its subcontractors will violate any such restriction. U. Prior Approval. This Contract shall not be binding upon either party, no services shall be performed under the terms of this Contract, and the Wyoming State Auditor shall not draw warrants for payment on this Contract, until this Contract has been reduced to writing, approved as to form by the Office of the Attorney General, filed with and approved by the Department of Administration and Information, and approved by the Governor of the State of Wyoming if required by Wyo. Stat. § 9-2-1016(b)(iv)(D). V. Reproduction of Report. If the Agency or the State intends to publish or otherwise reproduce the financial statements together with Contractor’s report (or otherwise make reference to Contractor) in a document that contains other information, Agency and State agrees to provide Contractor with a draft of the document to read and comment on before it is printed. W. Sovereign Immunity. The State of Wyoming and the Agency do not waive sovereign immunity by entering into this Contract, and specifically retain immunity and all defenses available to them as sovereigns pursuant to Wyo. Stat. § 1-39-104(a) and all other state law. X. Suspension/Debarment. By signing this Contract, Contractor certifies that it nor any of its subcontractors are suspended, debarred, or voluntarily excluded from Federal financial or non financial assistance, nor are any of the participants involved in the execution of

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this Contract suspended, debarred, or voluntarily excluded. Further, Contractor agrees to notify this Agency by certified mail should Contractor or any of its agents become debarred, suspended, or voluntarily excluded during the term of this agreement. Y. Taxes. The Contractor shall pay all taxes and other such amounts required by federal, state and local law, including but not limited to federal and social security taxes, workers’ compensation, unemployment insurance and sales taxes. Z. Termination of Contract. This Contract may be terminated, without cause, by the Agency upon thirty (30) days written notice. This Contract may be terminated immediately for cause if the Contractor fails to perform in accordance with the terms of this Contract. AA. Third Party Beneficiary Rights. The parties do not intend to create in any other individual or entity the status of third party beneficiary, and this Contract shall not be construed so as to create such status. The rights, duties and obligations contained in this Contract shall operate only between the parties to this Contract, and shall inure solely to the benefit of the parties to this Contract. The provisions of this Contract are intended only to assist the parties in determining and performing their obligations under this Contract. BB. Titles Not Controlling. Titles of paragraphs are for reference only, and shall not be used to construe the language in this Contract. CC. Waiver. The waiver of any breach of any term or condition in this Contract shall not be deemed a waiver of any prior or subsequent breach. THIS SPACE INTENTIONALLY LEFT BLANK

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10. Signatures. The parties to this Contract, either personally or through their duly authorized representatives, have executed this Contract on the dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this Contract. This Contract is not binding on either party until approved by the Procurement Services Division of the Department of Administration & Information, and the Governor of the State of Wyoming, if required by Wyo. Stat. § 9-2-1016(b)(iv). The effective date of this Contract is the date of the signature last affixed to this page. AGENCY

Michael Geesey, Director Wyoming Department of Audit

Date

CONTRACTOR

Ken Dugas CPA, Partner McGee, Hearne and Paiz, LLP

Date

DEPARTMENT OF ADMINISTRATION AND INFORMATION Lori Galles, Manager Date Procurement Services Division, General Services Division Department of Administration and Information APPROVAL AS TO FORM

S. Jane Caton Assistant Attorney General

Date

Appendix A State of Wyoming, Single Audit Request for Proposal 0366-U

Page 1 of 38

STATE OF WYOMING DEPARTMENT OF ADMINISTRATION AND INFORMATION

PROCUREMENT SECTION 700 WEST 21st STREET

CHEYENNE, WY 82002-0060

REQUEST FOR PROPOSAL NO. 0366-U

WYOMING DEPARTMENT OF AUDIT

PROFESSIONAL AUDITING SERVICES STATEWIDE AUDIT

OPENING DATE AND TIME AUGUST 3, 2011-----2:00 P.M.

PURCHASING REPRESENTATIVE: Lori Galles TELEPHONE NO.: (307) 777-6797

DEPARTMENT OF AUDIT REPRESENTATIVE: Pamela Robinson TELEPHONE NO.: (307) 777-7798

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TABLE OF CONTENTS

R.F.P. NO. 0366-U

SECTION I: REQUEST FOR PROPOSAL……………………………………....……

3 - 5

SECTION II: GENERAL PROVISIONS………………………………………...….….

6 - 9

SECTION III SPECIAL PROVISIONS………………………………………………....

10 - 11

SECTION IV NATURE OF SERVICES REQUIRED…………………………...…..…

12 - 14

SECTION V DESCRIPTION OF THE GOVERNMENT…………………….…....…..

15 - 18

SECTION VI TIME REQUIREMENTS……………………………………….……….

20 - 21

SECTION VII ASSISTANCE TO BE PROVIDED TO THE CONTRACTOR AND REPORT PREPARATION………………………………………………

22

SECTION VIII PROPOSAL REQUIREMENTS…………………………………………

23 - 28

SECTION IX EVALUATION PROCEDURES…………………………………………

29 - 31

APPENDIX A ORGANIZATIONAL CHART OF THE STATE OF WYOMING……..

32

APPENDIX B ORGANIZATIONAL CHART STATE AUDITOR’S OFFICE…………

33

APPENDIX C LIST OF KEY PERSONNEL, OFFICE LOCATIONS, AND TELEPHONE NUMBERS……………………………………………….

34

APPENDIX D DOLLAR COST PROPOSAL AND SCHEDULE OF PROFESSIONAL FEES AND EXPENSES, PROPOSER GUARANTIES, WARRANTIES AND CERTIFICATIONS……….………………………………………

35 - 38

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SECTION I REQUEST FOR PROPOSAL

1. SUBMISSION OF PROPOSALS:

Sealed Proposals, (one (1) original and five (5) copies) will be received for performing the audit of the State’s Comprehensive Annual Financial Report and Schedule of Federal Financial Assistance in accordance with the Single Audit Act for the State of Wyoming fiscal years 2012, 2013, 2014, and 2015 for the Wyoming Department of Audit (Agency) by the Wyoming Department of Administration and Information, Procurement Section, 700 West 21st Street, Cheyenne, Wyoming 82002 until August 3, 2011, 2:00 p.m., at which time they will be publicly opened.

NOTE: Packages not containing the required number of copies will be rejected.

1.1 No proposal will be considered which is not accompanied by the attached form (Dollar Cost Proposal and Schedule of Professional Fees and Expenses and Proposer Guarantees, Warranties and Certification (Appendix D)) and signed by the proper official of the firm.

1.2 Proposals must be received in the office of the Procurement Section on or before the time and date specified. Proposals received after the time specified will not be considered and will be returned unopened.

1.3 Proposal information is restricted and not publicly available until after the award of the Contract by the Procurement Section.

2. MODIFICATIONS OR WITHDRAWAL OF PROPOSALS:

2.1 A proposal that is in the possession of the Procurement Section may be altered by a letter bearing the signature or name of the authorized person, provided it is received PRIOR to the date and time of the opening. FAX, telephone or verbal alterations will not be accepted.

2.2 A proposal that is in the possession of the Procurement Section may be withdrawn by the proposer up to the time of the opening. Failure of the successful proposer to furnish the service awarded as a result of this advertisement shall eliminate the proposer from the active proposers list for a period of time as determined by the Procurement Section.

3. PREPARATION OF PROPOSALS:

3.1 No proposal will be considered which modifies, in any manner, any of the provisions, specifications or minimum requirements of the Request for Proposal.

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3.2 In case of error in the extension of prices in the proposal, unit prices will govern.

3.3 Proposers are expected to examine special provisions, specifications, schedules and instructions included in this Request. Failure to do so will be at the proposer’s risk.

3.4 Failure to respond (submission of proposal, or notice in writing that you are unable to offer but wish to remain on the active mailing list) to Request for Proposals will be understood by the State to indicate a lack of interest and will result in the removal of the Firm's name from the applicable mailing list.

4. AWARD AND CONTRACT INFORMATION:

4.1 The State of Wyoming hereby notifies all proposers that it will affirmatively insure that minority business enterprises will be afforded full opportunity to submit proposals in response to this invitation and will not be discriminated against on the grounds of age, race, color, sex, creed, national origin, or disability.

4.2 The proposer, also, agrees that should this firm be awarded a Contract that the firm will not discriminate against any person who performs work thereunder because of age, race, color, sex, creed, national origin, or disability.

4.3 The proposer expressly warrants to the State that it has the ability and expertise to perform its responsibilities hereunder and in doing so shall use the highest standards of professional workmanship.

4.4 The State of Wyoming reserves the right to reject any or all proposals, to waive any informality or technical defect in the proposals, or to award the contract in whole or in part, if deemed to be in the best interest of the State to do so. The Department of Administration and Information, Procurement Section will award this contract to the firm, determined by the Wyoming Department of Audit, to be the most responsive and responsible offer, based on criteria specified herein.

4.5 This Request for Proposal shall become part of the Contract and will be in effect for the duration of the Contract period.

4.6 The successful proposer will be required to enter into and sign a formal Contract with the State with reasonable adjustments acceptable to the State. The Contract will be substantially the same as the attached Sample Contract for Audit Services, Statewide CAFR and Single Audit. The agreement will become a part of the Contract and will be in effect for the duration of the contract period. The contract language will control over any language contained within this RFP that conflicts with the signed and fully executed Contract.

4.7 Successful proposer shall comply with the Americans with Disabilities Act and Wyoming Fair Employment Practices Act. (W. S. 27-9-105 et. seq.).

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DATED THIS ____ DAY OF ____, 2011.

STATE OF WYOMING

/original signed/

Lori Galles, Manager

Procurement Section

Assigned Buyer: Lori Galles

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SECTION II GENERAL PROVISIONS

1. INDEPENDENT CONTRACTOR

1.1 The contractor shall function as an independent contractor for the purposes of the Contract, and shall not be considered an employee of the State of Wyoming for any purpose. The contractor shall assume sole responsibility for any debts or liabilities that may be incurred by the contractor in fulfilling the terms of the Contract, and shall be solely responsible for the payment of all federal, state and local taxes which may accrue because of this Contract. Nothing in the Contract shall be interpreted as authorizing the contractor or its agents and/or employees to act as an agent or representative for or on behalf of the State of Wyoming or the Agency, or to incur any obligation of any kind on the behalf of the State of Wyoming or the Agency. The contractor agrees that no health/hospitalization benefits, workers’ compensation and/or similar benefits available to State of Wyoming employees will inure to the benefit of the contractor or the contractor’s agents and/or employees as a result of this Contract.

2. INSURANCE:

2.1 The contractor shall indemnify and save harmless the State, its officers, and employees from all suits, actions, or claims of any character brought because of injuries or damage received or sustained by any person, persons, or property; on account of the operations of the said contractor or on account of or in consequence of any neglect in safeguarding the work; or because of any act or omission, neglect, or misconduct of said contractor or from any claims or amounts arising or recovered under the Workers' Compensation Act, or any other law, ordinance, order or decree.

3. LAWS TO BE OBSERVED:

3.1 The contractor shall keep fully informed on all federal and state laws, all local bylaws, regulations and all orders and decrees of bodies or tribunals having any jurisdiction or authority which in any manner affect those engaged or employed on the work or which in any way affect the conduct of the work. The contractor shall at all times observe and comply with all such laws, bylaws, ordinances, regulations, orders and decrees in force at the time of award. The contractor shall protect and indemnify the State and its representatives against any claim or liability arising from or based on the violation of any such law, bylaw, ordinance, regulation, order or decree whether by himself or his/their employees. No extension of time or additional payment will be made for loss of time or disruption of work caused by any actions against the provider for any of the above reasons.

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4. TAXES:

4.1 The contractor shall pay all taxes and other such amounts required by federal, state, and local law, including but not limited to federal and Social Security taxes, workers’ compensation, unemployment insurance and sales taxes.

5. ASSIGNMENT/CONTRACTOR:

5.1 The Contract shall not be assigned by the contractor. Third party participation is authorized only as a joint venture which must be clearly stated with details on the original proposal, signed by all parties participating. Any alterations, variations, modifications or waivers of the provisions of this Contract shall be valid only if they have been reduced to writing, duly signed by the parties hereto and attached to the original Contract agreement.

5.2 The contractor shall not enter into any subcontracts for any of the work contemplated under this Contract without prior written authorization of the State except as detailed in Section III E.

5.3 Claims for money due or to become due contractor from the State under the Contract may not be assigned to a bank, trust company, or other financial institution, or to a trustee in bankruptcy, without approval by the State. Notice of any assignment or transfer shall be furnished to the State.

5.4 The contractor shall not use the Contract, or any portion thereof, for collateral for any financial obligation without the prior written permission of the Agency.

6. TERMINATION OF CONTRACT:

6.1 Termination of the Contract may be made by any party at any time with or without cause, upon no less than thirty (30) days written notice by telegram, or personal delivery of notice to the other parties. The Contract shall remain in full force and effect until terminated as provided herein.

6.2 The State may, upon ten days written notice to the contractor, terminate the contract, in whole or in part, for just cause, which shall include failure of the contractor to fulfill in a timely and proper manner the obligations under the Contract. In such event, all finished documents, data, models and reports prepared under this contract shall, at the option of the State become its property upon payment for services rendered through the termination of the Contract.

6.3 Should the contractor fail to comply with the provisions of the Contract, payment for portions of the Contract will be withheld until such time as the Contract terms have been implemented. Administrative, contractual, and/or legal remedies as determined by the Wyoming Attorney General will be implemented if it appears the contractor has breached or defaulted on the Contract.

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7. ACCOUNT REPRESENTATIVE:

7.1 The successful proposer(s) shall appoint, by name, a company representative who shall be responsible for servicing this account. The appointed representative shall be responsible to provide the services required to insure that the account will be administered in an organized systematic manner.

8. RESPONSIVENESS:

8.1 Proposers are expected to examine specifications, schedules and instructions included in this package. Failure to do so will be at the proposer's risk.

9. EXTENSION AND AMENDMENT:

9.1 The proposer and the State covenant and agree that this proposal or subsequent Contract may, with the mutual approval of the proposer and the State, be extended under the same terms and conditions of this proposal or Contract for a period of one (1) additional year, and said option to extend this proposal or Contract for a one year period shall be in effect for each year thereafter for a total period not to exceed two (2) additional years.

10. COMPLIANCE WITH LAWS:

10.1 In performing the Contract, both parties agree to comply with all applicable state, federal, and local laws, rules and regulations.

11. AUDIT:

11.1 The State or any of their duly authorized representatives shall have access to any books, documents, papers, and records of contractor which are directly pertinent to the Contract for the purpose of making audit, examination, excerpts, and transactions.

12. CONFLICT OF INTEREST:

12.1 The parties warrant that no kickbacks, gratuities, or contingency fees have been paid in connection with the Contract and none has been promised contingent upon the award of the contract. Consultant warrants that no one being paid pursuant to the Contract is engaged in any activities which would constitute a conflict of interest with respect to the purposes of the Contract.

13. OWNERSHIP OF DOCUMENTS/WORK PRODUCT:

13.1 Subject to the requirements of paragraph 11.1, Agency and any of its representatives shall have access to any books, documents, papers, and records of the Contractor which are pertinent to this Contract. The foregoing notwithstanding, the working papers prepared in conjunction with the Contractor’s work are the property of

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Contractor, constitute confidential and proprietary information and will be maintained by the Contractor in accordance with its policies and procedures for the time period specified in Section IV, Paragraph F.

14. CONFIDENTIALITY OF INFORMATION:

14.1 All documents, data compilations, reports, computer programs, photographs, and any other work provided to or produced by the contractor in the performance of the Contract shall be kept confidential by the contractor unless written permission is granted by the State for its release.

15. SOVEREIGN IMMUNITY:

15.1 The State of Wyoming and the Agency do not waive Sovereign immunity by entering into the Contract, and specifically retain immunity and all defenses available to them as sovereigns pursuant to Wyoming Statute 1-39-104(a) and all other state law.

16. INDEMNIFICATION:

16.1 The contractor shall release, indemnify, and hold harmless the State, the Agency, and their officers, agents, employees, successors and assignees from any cause of action, or claims or demands arising out of contractor's performance under the Contract.

17. REPRODUCTION OF REPORT.

17.1 If the Agency or the State intends to publish or otherwise reproduce the financial statements together with Contractor’s report (or otherwise make reference to Contractor) in a document that contains other information, Agency and State agree to provide Contractor with a draft of the document to read and comment on before it is printed.

18. SUSPENSION/DEBARMENT. 18.1 The Contractor asserts that neither the Contractor or any subcontractors are under

suspension or disbarment by the federal government from being awarded contracts paid in whole or in part with federal funds.

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SECTION III SPECIAL PROVISIONS

PROPOSALS MUST BE DELIVERED TO THE PROCUREMENT OFFICE IN A SEALED ENVELOPE OR PACKAGE BY 2:00 P.M. ON AUGUST 3, 2011. PROPOSALS ARE TO BE DELIVERED TO THE PROCUREMENT OFFICE, 700 WEST 21st STREET, CHEYENNE, WYOMING 82002, BY 2:00 P.M. ON AUGUST 3, 2011. NO PROPOSALS WILL BE ACCEPTED AFTER THE ABOVE DATE AND TIME.

A. ISSUING OFFICE This request for proposal (RFP) is issued by the Department of Audit. The Department of Audit is the sole point of contact in the State for purposes of this RFP. Questions regarding this RFP shall be directed to Pamela Robinson, CPA, Herschler Building, 3rd Floor East, Cheyenne, Wyoming, 82002. She may be reached at (307) 777-7798. B. GENERAL The State of Wyoming is requesting proposals from qualified, certified public accounting firms to conduct an audit of the State’s Comprehensive Annual Financial Report and the Schedule of Federal Financial Assistance and related reports, for fiscal year 2012, ending June 30, 2012. The Contract may be renewed for fiscal years 2013, 2014, and 2015, by agreement of both parties in writing and subject to the required approvals.

There is no express or implied obligation for the State of Wyoming to reimburse responding firms for any expenses incurred in preparing proposals in response to this RFP. A preproposal conference for all the firms interested in submitting a proposal will be held at 9:00 a.m.. on June 6, 2011. Check in will be in Room 1114, Herschler Building, Cheyenne, Wyoming, 82002, no later than 9:00 a.m. The conference is being held to answer questions about the RFP and engagement. After this preproposal conference, any inquiries concerning the RFP should be addressed in writing to Pamela Robinson. All interested firms will be provided with a copy of the minutes of the preproposal conference upon request.

C. DEFINITIONS

1. DEPARTMENT OF AUDIT - Coordinating and responsible office for the audit engagement.

2. AUDITEE - Wyoming State Government.

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3. CONTRACTOR - The firm which is awarded the contract to perform the audit described in this RFP.

4. FISCAL YEAR 2012 - July 1, 2011, through June 30, 2012. 5. FISCAL YEAR 2013 - July 1, 2012 through June 30, 2013.

6. FISCAL YEAR 2014 - July 1, 2013 through June 30, 2014.

7. FISCAL YEAR 2015 - July 1, 2014 through June 30, 2015.

8. QUALIFIED FIRM -Any individual firm, partnership, corporation, association or

other legal entity permitted by law to engage in practice as a Certified Public Accountant (CPA) in the State of Wyoming.

9. WYOMING OFFICE – An office located within the State of Wyoming engaged in

auditing Wyoming businesses. The office will include a resident partner in charge of the office who holds a permit to practice within the State of Wyoming as a certified public accountant.

D. TERM OF ENGAGEMENT The term of engagement will be from April 1, 2012 through April 1, 2013. The engagement contract may be renewed for up to three additional terms, subject to the annual review and recommendation of the Department of Audit, the satisfactory negotiation of terms (including a price acceptable to both the State of Wyoming and the selected firm), the concurrence of the State of Wyoming Legislature and the annual availability of an appropriation. E. SUBCONTRACTING Firms submitting proposals, which did not and will not have a Wyoming Office during fiscal year 2011, 2012, 2013, 2014, or 2015, will be required to subcontract at least 35 percent of the total contract payment amount to licensed certified public accounting firms located and operated in Wyoming. The proposal must outline the areas of the audit to be performed by the subcontracting firms. Following the award of the contract, no additional subcontracting will be allowed without the express prior written consent of the Department of Audit.

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SECTION IV NATURE OF SERVICES REQUIRED

A. SCOPE OF WORK TO BE PERFORMED The State of Wyoming desires the Contractor to express an opinion on the fair presentation of its Basic Financial Statements in conformity with accounting principles generally accepted in the United States and the associated Schedule of Federal Financial Assistance. The entity to be covered under the single audit is the State of Wyoming, a primary government as defined by the Governmental Accounting Standards Board Statement No. 14. The Wyoming Department of Transportation, the University of Wyoming, the Wyoming Retirement System, the Wyoming Business Council, the Wyoming Community Development Authority, the Wyoming Pipeline Authority, and the Wyoming Infrastructure Authority have their own audits performed. The relevant portion of these audits shall be combined with the single audit so as to present the total operations of the State. The State’s Accounting System (further described in Section V) is maintained through contract with CGI Technologies and Solutions, Inc., (CGI) a corporation duly incorporated under the laws of Delaware, having a principal office at 4050 Legato Road, Fairfax, Virginia 22033. All equipment is located in the CGI Phoenix Data Center. All system controls are performed using the equipment in the Phoenix Data Center. The Phoenix Data Center is SAS 70 certified and Sarbanes-Oxley compliant. These audits are updated annually. The results of the SAS 70 audit were made available to the auditors during the site visit to the Phoenix Data Center August 14-15, 2006. The results of the SAS 70 audit will continue to be made available to the auditors annually during the site visit to the Phoenix Data Center. The current contract with CGI-AMS, Inc., provides for an annual site audit as follows: Service Detail:

Participate in Managed AMS Advantage site audit(s) as part of the annual Wyoming statewide audit.

CGI Responsibilities:

Prepare and participate in the annual site audit for all production platforms. Allow for onsite auditors at CGI data center(s) for up to 3 days per year during Technical

Support Hours. CGI efforts for each annual audit, including preparation, resources during the onsite visit

and any follow-up work related to the audit will not exceed 200 hours per platform. Wyoming State Auditor’s Responsibilities:

Coordinate the site audit requirements and timing between the Contract auditors and CGI. Manage the scope of work required of CGI by the Wyoming auditors for each annual

audit to not exceed the 200 hours limit per platform. In addition to those tests required to express an opinion on the State’s financial statements, the Contractor will conduct testing on selected State agencies that would ordinarily not be tested during the course of the audit. The purpose of this testing will be to expand the Contractor’s presence into State agencies not normally affected by the audit. Contractor will be informed of these additional State agencies by the Department of Audit no later than June 30 of the fiscal

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year being audited, otherwise, the Contractor will select the State agencies to test. It is expected that no more than three such state agencies will be identified. B. AUDITING STANDARDS TO BE FOLLOWED To meet the requirements of this RFP, the audit shall be performed in accordance with current generally accepted auditing standards promulgated by the American Institute of Certified Public Accountants, generally accepted government auditing standards promulgated by the Office of the Comptroller General of the United States, the provisions of the Federal Single Audit Act of 1996 and applicable circulars of the U.S. Office of Management and Budget. C. REPORTS TO BE ISSUED

1. Following the completion of the audit of the financial statements, the Contractor shall

issue all the reports required by the applicable professional standards and federal regulations and circulars.

2. All violations of state law discovered during the audit shall be reported to the

Department of Audit, regardless of materiality. Violations not material to the financial statements may be reported in a separate management letter.

D. FEDERAL FINANCIAL ASSISTANCE Using the fiscal year ended June 30, 2010, as a base, the State of Wyoming, not including those agencies and components having separate audits done in accordance with the Single Audit Act, expended approximately $1,143,975,900 of total federal assistance for all programs. In fiscal year 2010, the State of Wyoming had 43 major programs (programs in excess of $3,000,000), with expenditures totaling approximately $1,032,361,581 For comparison, there were 37 and 40 major programs in fiscal years 2008 and 2009, respectively. Increases or decreases in total federal expenditures which changes the definition of a major program may occur during the contract term. The exact detail of Federal Assistance Programs to be audited each year will vary, depending upon the specific type, nature and number of programs administered by the State of Wyoming for each fiscal year.

In the 2010 fiscal year there were approximately 247 non-major Federal Assistance Programs administered by the State of Wyoming, each with expenditures of less than $3,000,000. In fiscal year 2010, the State of Wyoming expended approximately $111,614,319 on the non-major programs. E. SPECIAL CONSIDERATIONS

1. The State of Wyoming will send its Comprehensive Annual Financial Report to the

Government Finance Officers Association of the United States and Canada for review

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in their Certificate of Achievement for Excellence in Financial Reporting Program. The State of Wyoming does not anticipate requiring the Contractor to provide special assistance to the State to meet the requirements of the program.

2. The Contractor shall designate a company representative who will maintain contact

with the Department of Audit and Pamela Robinson. The company representative shall oversee all activities for the Contractor. The Contractor shall notify the Department of Audit prior to any substitutions of the company representative.

3. The Contractor shall report immediately to the Department of Audit whenever it

appears, in the opinion of the company representative, that any material violations of State laws or any instance of misfeasance, malfeasance or nonfeasance by a State Officer or employee of a State Agency may have occurred.

4. The Contractor shall be available to answer questions regarding the preparation of the

work papers or issues raised in the work papers without charging fees in addition to the contract amount, for three (3) years after issuance of the final audit report.

5. The contract amount submitted will include any necessary follow-up work in

conjunction with the issuance of any short-term debt or long-term debt. 6. Contractor may be required to submit names and identifying personal information for

individuals assigned to audit certain programs. The information will be used to conduct appropriate civil and/or criminal background checks prior to individuals working on programs containing classified/sensitive information. If an auditor is not acceptable to program management, another acceptable auditor will be assigned.

7. If an audit is not acceptable to the federal audit quality center or another federal

oversight agency, Contractor will bring the audit up to the acceptable standards at no cost to the State.

F. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS All working papers and reports must be retained, at the Contractor's expense, for a minimum of three (3) years from the issuance of the report, unless the Contractor is notified in writing by the State of Wyoming of the need to extend the retention period. The Contractor shall make working papers available, upon request, to the following parties or their designees:

Wyoming Department of Audit U.S. Department of Health and Human Services U.S. Government Accountability Office (GAO)

The Contractor shall respond to the reasonable inquiries of successor Contractors and allow successor Contractors to review working papers regarding matters of continuing accounting significance.

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SECTION V DESCRIPTION OF THE GOVERNMENT

A. GENERAL The State of Wyoming’s Basic Financial Statements are prepared by the State Auditor’s Office and are included in the State's Comprehensive Annual Financial Report, along with the government wide statements and the combining and individual fund statements. The financial position and results of operations for all agencies, and cash flows of the proprietary funds, within the reporting entity of the State of Wyoming are included in the Basic Financial Statements. The State's accounting system is managed and controlled by the State Auditor’s Office while outside accounting systems are independently maintained and operated. In compiling the Basic Financial Statements, the State Auditor’s Office obtains accounting information from a number of sources within and outside of the State's accounting system. The State's accounting system records the accounting transactions for the general government of the State. This includes the general fund, all the special revenue funds, and other governmental, proprietary, and fiduciary funds. A number of the larger agencies, such as the University of Wyoming, and the Department of Transportation, have their own accounting systems which are independent of the State's accounting system. Some agencies and most of the component units receive annual audits of their financial statements conducted by certified public accounting firms. The State Auditor’s Office incorporates those audited financial statements into the State of Wyoming's Basic Financial Statements.

B. STATE OF WYOMING CONTACT The Contractor’s principal contact with the Department of Audit and the State of Wyoming will be Pamela Robinson, who will coordinate the assistance to be provided by the State of Wyoming to the Contractor. An organizational chart (Appendix A) and a list of key personnel with the location of their principal offices (Appendix C) are attached. C. BACKGROUND INFORMATION For detailed information concerning the State refer to the Comprehensive Annual Financial Report for fiscal year 2010. The State of Wyoming covers an area of 97,818 square miles with a population of 567,626. The State of Wyoming's fiscal year begins on July 1st and ends on June 30th, with a 30-day close-out period.

The State of Wyoming is organized into approximately 40 agencies, 28 boards and 21 Judicial offices. The accounting and financial reporting functions of the State of Wyoming are centralized on one accounting system. There are 50 separate applications that interface with the centralized accounting system.

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D. FUND STRUCTURE The State of Wyoming used the following fund classes and account groups in its fiscal year 2006 financial reporting:

Fund Type/Account Group

Number of Individual

Fund Classes

Number of Legally Adopted Biennial Budgets

General Fund 1 1 Special Revenue Funds 23 22 Debt Service Funds 1 1 Capital Projects Funds 1 1 Enterprise Funds 7 7 Internal Service Funds 8 8 Permanent Funds 9 5 Agency Funds 5 0 Investment Trust Funds 1 0 Private Purpose Trust Funds 2 1

The number of fund classes and number of legally adopted biennial budgets are subject to change over the contract term. The above fund classes have numerous funds associated with them. E. BUDGETARY BASIS OF ACCOUNTING The State of Wyoming prepares its budget on a modified cash basis. F. PENSION PLANS The State of Wyoming, Wyoming Retirement System, administers eight retirement plans that are independently audited. In addition, the Wyoming Retirement System also administers the state’s deferred compensation plan. The deferred compensation plan is, also, independently audited. These audited financial statements are blended into the State's financial statements.

Actuarial services for the retirement plans are provided by Buck Consultants, an independent actuarial firm under contract with the Wyoming Retirement System. G. OTHER POST-EMPLOYMENT BENEFITS The State Employees and Officials Group Insurance Program administers certain Other Post-Employment Benefits (OPEB), specifically contributions toward retired employees health insurance premiums. Actuarial services for the OPEB are currently provided by Buck Consultants, an independent actuarial firm under contract with the State Employees and Officials Group Insurance Program. GASB 45 actuarial valuations are done once every two years.

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H. WORKERS' COMPENSATION The State of Wyoming, Department of Employment administers a Workers' Compensation Program. Actuarial services for the Workers' Compensation Program, for the purpose of setting rates for employer premiums, are currently provided by Oliver Wyman Actuarial Consulting, an independent actuarial firm under contract with the Department of Employment. I. SEPARATELY AUDITED AGENCIES AND COMPONENT UNITS Certain agencies and component units of the State of Wyoming receive separate audits of their financial transactions and financial positions. State Agencies. The financial statements of the State of Wyoming include the following state agencies receiving separate audits:

University of Wyoming - The State’s only university uses the NACUBO basis of accounting (fiscal year end June 30th). Wyoming Department of Transportation - The State's construction and maintenance programs for roads and bridges (Fiscal year end September 30th). Wyoming Retirement System - Administers the statewide retirement plans. (Fiscal year end December 31st).

Wyoming Business Council – Provides economic development loans to new and existing businesses in the State (Fiscal year end June 30th)

Component Units. The financial statements of the State of Wyoming include the following component units receiving separate audits:

Wyoming Community Development Authority - Provides financing for housing needs throughout the State. (Fiscal year end June 30th).

Wyoming Pipeline Authority - Promotes the development of and finance of pipelines and infrastructure necessary to develop the State's natural resource (reserve) including natural gas, crude oil, CO2, coal or coal by-products, synthetic fuels, and water related to energy production (Fiscal year end June 30th). Wyoming Infrastructure Authority - Provides funding for the developement of electric transmission infrastructure to facilitate the consumption of Wyoming energy (Fiscal year end June 30th).

H. MAGNITUDE OF FINANCE OPERATIONS

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The State Auditor’s Office, headed by Cynthia I. Cloud, CPA (elected State Auditor), is responsible for the financial reporting of the State. The office administers the State's financial accounting system and produces the financial statements. The office consists of 26 employees. See organizational chart for further detail (Appendix B). The Comprehensive Annual Financial Report and the Single Audit Report for the year ended June 30, 2010, is available on the website of the Wyoming State Auditor. The URL is: http://sao.state.wy.us/. The CAFR is located under the heading “Comprehensive Annual Financial Report;” the Single Audit can be found under the heading “Downloads” then scroll to “STATEWIDE SINGLE AUDIT (WYOMING COMPLIANCE REPORT).” I. COMPUTER SYSTEMS On July 1, 1997, the State of Wyoming implemented a statewide, on-line accounting system referred to as the Wyoming On-line Information System (WOLFS). WOLFS is an automated, integrated financial management system that accommodates governmental fund accounting, budgetary and appropriation transactions and the recording of expenditure and revenue activity.

The WOLFS database is Oracle including all data tables, journals, and ledgers. Data entry to the system is decentralized with approximately 850 users having access to the system throughout the State. During fiscal year 2010 the WOLFS system processed approximately 820,000 external payment transactions, including the writing of approximately 419,000 warrants and 400,000 electronic funds transfer payments. WOLFS Background The baseline WOLFS system was purchased from American Management Systems and is Advantage Financial version 3.7. The baseline system has been minimally modified to accommodate how the State of Wyoming conducts business. The baseline system is accompanied by the following subsystem: the Extended Purchasing System, the Fixed Asset System and the Cost Accounting System. Departmental Interface Approximately 50 other source systems interface with the WOLFS system. These interfacing systems are programmatic in nature and are amended by various agencies such as Workers Compensation and Medicaid. Interface systems also include a number of intergovernmental interfaces such as internal service fund billing, the State Treasurer's investments and the payroll system. All interfaces require signed certification by agency personnel before processing into WOLFS.

Hardware/Technical Environment

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WOLFS is a server-based application running in a hosted environment at CGI. The servers are windows and Unix based and run Oracle, Java, HTML, Versata and other tools necessary to support the applications.

Similarly, most WOLFS Tables and Ledgers have been defined to infoAdvantage. This is a query language that is based on the third party product, Business Objects, which allows for the creation of ad hoc reporting and meeting special reporting needs of the various WOLFS users. J. PRIOR AUDIT REPORTS The State of Wyoming’s financial statements have been audited annually since June 30, 1996 by various CPA firms. The fiscal year 2010 financial statement audit and the associated single audit were performed by McGee Hearne & Paiz, LLP.

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SECTION VI TIME REQUIREMENTS

A. PROPOSAL CALENDAR The following is a list of key dates up to and including the date proposals are due: (all dates are subject to change at the discretion of the Department of Audit) Request for Proposals issued ........................................................ Monday, April 25, 2011 Preproposal conference .................................................................... Monday, June 6, 2011 Proposals due ......................................................... Wednesday, 2:00 p.m., August 3, 2011 B. DATE CONTRACT TO BE AWARDED Award Date ................................................................................ Monday, August 29, 2011 C. NOTIFICATION AND CONTRACT DATES Selected firm notified ............................................................ Wednesday, August 31, 2011 Contract date ......................................................................... Wednesday, August 31, 2011 D. DATE AUDIT MAY COMMENCE Commencement Date ........................................................................ Sunday, April 1, 2012 E. DATE RECORDS AVAILABLE Records are available as schedules are produced beginning the middle of September. ......................... Wednesday, September 12, 2012 Draft financial statements available to Department of Audit and Contractor ................................................................... Monday, December 3, 2012 F. DATE REPORTS DUE Reports on the audits of the Comprehensive Annual Financial Report and the Schedule of Federal Financial Assistance shall be delivered to the Department of Audit as follows: 1. Comprehensive Annual Financial Report To comply with state statute, the State Auditor's Office shall provide by December 15

a draft report including financial statements. The audited financial statements are to be completed to comply with the requirements of the Government Finance Officers Association (GFOA)

2. Schedule of Federal Financial Assistance

a.) Draft Report A minimum of thirty (30) days prior to the due date for submission to the federal cognizant agency.

b.) Final Report A minimum of nine (9) working days prior to the due date for

submission to the federal cognizant agency.

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3. Management Letter (if applicable)

In accordance with Department of Audit Rules, Chapters 8and 9, any management letter or other written correspondence submitted regarding the results of the audit shall be submitted as an accompaniment to the auditor’s report.

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SECTION VII ASSISTANCE TO BE PROVIDED TO THE CONTRACTOR AND REPORT PREPARATION A. STATE AUDITOR'S OFFICE, CAFR GROUP AND CLERICAL ASSISTANCE The State Auditor’s Office staff and responsible management personnel will be available during the audit to assist the Contractor by providing information, documentation and explanations. B. ELECTRONIC DATA PROCESSING (EDP) ASSISTANCE During the engagement all system questions should be directed to Tom Rowe or Jeanne Hartman of the State Auditor’s Office, CAFR Group.

C. WORK AREA, TELEPHONES, PHOTOCOPYING AND FAX MACHINES The State of Wyoming will provide the Contractor with reasonable work space, desks and chairs. The Contractor will also be provided with access to one telephone line, photocopying machine and FAX machine. D. REPORT PREPARATION The State Auditor’s Office will be responsible for preparing the Comprehensive Annual Financial Report and the Schedule of Federal Financial Assistance other than the audit opinions included therein. The State is also responsible for all costs of reproducing the Comprehensive Annual Financial Report and Schedule of Federal Financial Assistance.

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SECTION VIII PROPOSAL REQUIREMENTS

A. SUBMISSION OF PROPOSALS The following material must be submitted by 2:00 p.m., Wednesday, August 3, 2011. 1. A master copy (so marked) of a Technical Proposal and five copies to include the

following: a. Title Page indicating the RFP’s subject and number; the firm’s name; the

name, address and telephone number of the contact person; and the date of the proposal;

b. Table of Contents; c. Transmittal Letter, signed, briefly stating the proposer’s understanding of

the work to be done, the commitment to perform the work within the time period, a statement explaining why the firm believes itself to be best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer;

d. A Detailed Proposal should follow the order set forth in Section VIII B of

this RFP; and e. Executed copies of the Dollar Cost Proposal and Schedule of Professional

Fees and Expenses, Proposer Guarantees, Warranties and Certifications. This form is contained in Appendix D of this RFP.

2. An original dollar cost proposal in a separate sealed envelope marked as follows:

SEALED DOLLAR COST PROPOSAL

FOR STATE OF WYOMING

FOR PROFESSIONAL AUDITING SERVICES

AUGUST 3, 2011

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3. Proposers shall send their completed proposal consisting of the two separate envelopes to the following address:

Department of Administration & Information

Procurement Section 700 West 21st Street

Cheyenne, WY 82002

B. TECHNICAL PROPOSAL 1. General Requirements The purpose of the Technical Proposal is to demonstrate the qualifications,

competence and capacity of the firms seeking to undertake an independent audit of the State of Wyoming in conformity with the requirements of this RFP. As such, the substance of proposals will carry more weight than their form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the RFP requirements.

DO NOT INCLUDE DOLLAR UNITS OR TOTAL COSTS IN THE

TECHNICAL PROPOSAL DOCUMENT. The Technical Proposal should address all the points outlined in the RFP

(excluding any cost information which should only be included in the sealed dollar cost proposal). The Proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer’s capabilities to satisfy the requirements of the request for proposals. While additional data may be presented, the following subjects, items 2 through 9, below, must be included. These items represent the criteria against which the proposal will be evaluated.

2. Independence Each proposer shall provide an affirmative statement that it is independent from

the State of Wyoming as defined by the U.S. Government Accountability Office's Government Auditing Standards (Current Revision).

Each proposer also shall provide an affirmative statement that it is independent

from all the component units of the State of Wyoming as defined by those same standards.

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Each proposer shall list and describe the firm's (or proposed subcontractors') professional relationships involving the State of Wyoming or any of its agencies, component units/agencies, or oversight units for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit.

In addition, each proposer shall give the State of Wyoming written notice of any

conflict which arises during the period of this Contract. 3. License to Practice in State of Wyoming Each proposer shall provide an affirmative statement that the firm and all assigned

key professional staff are properly registered/licensed to practice in the State of Wyoming through a license from the State or Wyoming or a Reciprocal Certificate issued by the Wyoming Board of Certified Public Accountants.

4. Firm Qualifications and Experience The proposer shall state the size of the firm, the size of the firm's state

governmental audit staff, the location of the office from which the work on this engagement is to be performed and the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number and nature of the staff to be so employed on a part-time basis. (Both primary contractor and any subcontractors).

If the proposer is a joint venture, the qualifications of each firm comprising the

joint venture shall be separately identified and the firm that is to serve as the principal Contractor should be noted, if applicable.

Each proposer shall submit a copy of the opinion on its most recent external

quality control review, with a statement about whether the quality control review included a review of specific state government engagements.

5. Partner, Supervisory and Staff Qualifications and Experience Identify the principal supervisory and management staff, including engagement

partners, managers, other supervisors and specialists, who would be assigned to the engagement. Indicate whether each such person is registered or licensed to practice as a certified public accountant in the State of Wyoming or has been issued a Reciprocal Certificate by the Wyoming Board of Certified Public Accountants. Provide information on the state government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. (Both primary contractor and any subcontractors).

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Provide information relating to the assigned principal, management, specialist, and staff that relates to their experience using CGI software.

Provide as much information as possible regarding the number, qualifications,

experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement.

The Proposer should identify the extent to which staff to be assigned to the audit

reflects the State of Wyoming's commitment to Affirmative Action. Engagement partners, managers, supervisory staff, and audit staff 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 with the express prior written permission of the Department of Audit. However, in either case, the Department of Audit retains the right to approve or reject replacements.

Consultants and specialists mentioned in response to this RFP can only be

changed with the express prior written permission of the Department of Audit, which retains the right to approve or reject replacements.

Other audit personnel may be changed at the discretion of the proposer provided

that replacements have substantially the same or better qualifications and experience.

6. Similar Engagements With Other State Governments For the firm's office that will be assigned responsibility for the audit, list the most

significant engagements (maximum - 5) performed in the last five years that are similar to the engagement described in this RFP.

These engagements should be ranked on the basis of total staff hours. Indicate the

scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact.

7. Specific Audit Approach The proposal shall set forth a work plan, including an explanation of the audit

methodology to be followed, to perform the services described in this RFP. In developing the work plan, reference should be made to such sources of information as the State of Wyoming's budget and related materials, organizational charts, manuals and programs, and financial and other management information systems.

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Proposers shall provide the following information regarding their audit approach: a. Proposed segmentation of the engagement by: (1) audit of the State’s Comprehensive Annual Financial Report, (2) audit of the Schedule of Federal Financial Assistance, (3) internal control review and analysis, b. Type and extent of analytical procedures to be used in the engagement. c. Level of staff and number of hours to be assigned to each proposed

segment of the engagement. d. Approach to be taken to gain and document an understanding of the State

of Wyoming's internal control structure. e. Management of subcontractors.

f. Extent of manager and partner on-site participation. g. Philosophy distinguishing providing professional services in association

with the audit versus professional services requiring additional funding.

8. Identification of Anticipated Potential Audit Problems The proposal shall identify and describe any anticipated potential audit problems,

the firm's approach to resolving these problems and any special assistance that will be requested from the State of Wyoming.

DO NOT INCLUDE DOLLARS IN THE TECHNICAL PROPOSAL

C. SEALED DOLLAR COST PROPOSAL 1. Total All-Inclusive Maximum Price

The sealed dollar cost proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The all-inclusive maximum price to be proposed is to contain all direct and indirect costs including all out-of-pocket expenses. The dollar cost proposal shall include any follow-up work necessary in conjunction with the issuance of any short-term debt or long-term debt.

For firms submitting proposals, which do not have a Wyoming office: The cost proposal must break-down by subcontractor the areas in which the

subcontractors will be involved and how the 35% cost will be allocated to each of the subcontractors.

The State of Wyoming shall not be responsible for expenses incurred in preparing

and submitting the technical proposal or the sealed dollar cost proposal. Such costs should not be included in the proposal.

The sealed dollar cost proposal should include the following information

(Appendix D):

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a. Name of Firm. b. Certification that the person signing the proposal is entitled to represent

the firm, empowered to submit the proposal, and authorized to sign a contract with the State of Wyoming.

c. A Total All-inclusive Maximum Price for audit services for fiscal year 2012, fiscal year 2013, fiscal year 2014, and fiscal year 2015 engagements separated by year.

2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours

Anticipated for Each The sealed dollar cost proposal should include a schedule of professional fees and

expenses, presented in the format provided in Appendix D, that supports the “Total all-inclusive maximum price.”

3. Rates for Additional Professional Services If it should become necessary for State of Wyoming to request the Contractor to

render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between State of Wyoming and the firm. Any such additional work agreed to between State of Wyoming and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost proposal.

WYOMING


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SECTION IX EVALUATION PROCEDURES

A. EVALUATOR Proposals will be evaluated by the Department of Audit. B. REVIEW OF PROPOSALS The Department of Audit will use a point formula during the review process to score

proposals. The Department of Audit will first score each technical proposal by each of the criteria described in Section IX C, below. The Department of Audit will then review the evaluations and arrive at a composite technical score for each firm. At this point, firms with an unacceptably low technical score will be eliminated from further consideration.

After the composite technical score for each firm has been established, the sealed dollar

cost proposal will be opened and additional points will be added to the technical score based on the price proposal. The maximum score for price will be assigned to the firm offering the lowest total all-inclusive maximum price. Appropriate fractional scores will be assigned to other proposers.

The State of Wyoming and the Department of Audit reserve the right to retain all

proposals and use any idea contained in any proposal regardless of whether or not that proposal is selected.

C. EVALUATION CRITERIA Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory

criteria will have their proposals evaluated and scored for both technical qualifications and price. The following represent the principal selection criteria which will be considered during the evaluation process.

1. Mandatory Elements a. The audit firm is independent and licensed to practice in Wyoming. b. The firm has no conflict of interest with regard to any other work

performed by the firm for the State of Wyoming. c. The firm adheres to the instructions in this RFP on preparing and

submitting the proposal d. The firm submits a copy of the opinion on its most recent external quality

control review with a statement about whether the quality control review included a review of specific state government engagements.

WYOMING


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2. Technical Proposal: (Maximum Points - 150) a. Audit Work Plan Maximum 110 b. Qualification of Firm Maximum 20 c. Qualification of Personnel Maximum 20 3. Price: (Maximum Points - 100) The State of Wyoming, Department of Audit will be the sole judge with respect to the evaluation of proposals. The firm which best meets the conditions of each of the individual criterion will be awarded the highest (not necessarily maximum) points for that specific criterion. The balance of the proposers will be rated based on their evaluated points. After each criterion is evaluated, the proposer with the highest total number of points will be awarded the contract. COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF AN AUDIT FIRM D. AVAILABLE FOR QUESTIONS During the evaluation process, the Department of Audit reserves the right to and may, at

its discretion, request additional information or clarification from one or all firms. The Department of Audit also reserves the right to allow corrections of errors or omissions.

E. FINAL SELECTION The State of Wyoming will select a firm based upon the recommendation of the

Department of Audit. The selection process is anticipated to be completed by August 29, 2011. Following the

notification of the selected firm, it is expected that a contract will be executed between the Department of Audit and the selected firm by August 31, 2011.

WYOMING


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APPENDICES A. Organizational Chart - State of Wyoming B. Organizational Chart - State Auditor’s Office C. List of Key Officials, Office Locations and Telephone Numbers D. Dollar Cost Proposal and Schedule of Professional Fees and Expenses, Proposer

Guaranties, Warranties and Certifications

WYOMING


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APPENDIX A

ORGANIZATIONAL CHART OF THE STATE OF WYOMING

Electorate

Secretary of State

State Auditor Governor State Treasurer

Superintendent of Public Instruction

Attorney General Governor’s Residence

Department of Admini- stration and Information

Department of Audit

Department of State Parks and Cultural Resources

Department of Corrections

Department of Employment

State Engineer

Department of Family Services

Game and Fish Department

Department of Health

Department of Environmental Quality

Department of Revenue

Department of Transportation

Department of Agriculture

Department of Workforce Services

Separate Operating Agencies

Separate Operating Agencies:

Adjutant General Public Service Commission Insurance Department Board of Equalization Geological Survey Livestock Board Public Defender Water Development Commission Office of Administrative Hearings Retirement System State Lands and Investments Community College Commission University of Wyoming Environmental Quality Council Fire Prevention & Electrical Safety Business Council

WYOMING


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APPENDIX B ORGANIZATIONAL CHART STATE AUDITOR’S OFFICE

Cynthia I. Cloud, CPA

State Auditor

Deputy State Auditor

Vicci Colgan

Chief Admin Officer

Carolyn Teter

Accounting Analyst/Exe Asst

Susan Green

Executive Assistant

Sherry Knouse

Payroll Group Manager

Technology Group Manager

CAFR Group Manager

WOLFS Group Manager

Luann Chaffin Jeanette Beman Tom Rowe Cindy Miller Comp BA

Analyst Sr Comp Tech

BA Analyst Accounting

Analyst Comp BA

Analyst Charlcy Fraley Jerry Rief Jeanne

Hartman Tara

Thompson Comp BA



Analyst Comp BA

Analyst Carol French Nancy Prince Colleen

Quinn Wendy

Roberts Accounting



Analyst Accounting

Technician Dale

Vanlandingham David Ray Barb Wallace Maureen

Lesh Accounting



Technician Brigitte Peters

Lucas Shaw Vicki Prince

Accounting

Analyst

Mary Van Heule


Page 34 of 38

APPENDIX C

LIST OF KEY PERSONNEL, OFFICE LOCATIONS, AND TELEPHONE NUMBERS

GOVERNOR SECRETARY OF STATE STATE AUDITOR Capitol Building Capitol Building Capitol Building Cheyenne, WY 82002 Cheyenne, WY 82002 Cheyenne, WY 82002 Matthew Mead Max Maxfield Cynthia Cloud, CPA *Shelly Andrews 777-8214 *Tom Cowan 777-5348 *Tom Rowe, CPA 777-6650 STATE TREASURER EDUCATION ADM & INFORMATION Capitol Building Hathaway Building Emerson Building Cheyenne, WY 82002 Cheyenne, WY 82002 Cheyenne, WY 82002 Joe Meyer Cindy Hill Chris Boswell *Sharon Garland 777-7400 *Fred Hansen 777-7804 *Rory Horsley 777-5010 ADJUTANT GENERAL AGRICULTURE REVENUE 5500 Bishop Blvd 2219 Carey Ave Herschler Building Cheyenne, WY 82002 Cheyenne, WY 82002 Cheyenne, WY 82002 Luke Reiner Jason Fearneyhough Edmund Schmidt *Judy Kechter 772-5242 *Julie Cook 777-6570 *Christie Yurek 777-3724 ATTORNEY GENERAL ENVIRONMENTAL QUALITY DEPARTMENT OF AUDIT Capitol Building Herschler Building Herschler Building Cheyenne, WY 82002 Cheyenne, WY 82002 Cheyenne, WY 82002 Greg Phillips John Corra Michael Geesey *Laura Gorny 777-7840 *Steve Toalson 777-5933 *Dennis Grenier 777-6600 PARKS & CULTURAL RES. HOMELAND SECURITY GAME & FISH Barrett Building Herschler Building 5400 Bishop Blvd Cheyenne, WY 82002 Cheyenne, WY 82002 Cheyenne, WY 82002 Milward Simpson Guy Cameron Scott Talbott *Bryan Sandlian 777-6538 *Robin Benitz 777-4916 *Kathy Frank 777-4614 TRANSPORTATION HEALTH FAMILY SERVICES 5300 Bishop Blvd Hathaway Building Hathaway Building Cheyenne, WY 82002 Cheyenne, WY 82002 Cheyenne, WY 82002 John Cox Thomas Forslund Steve Corsi *David Stearns 777-4024 *Bob Peck 777-6780 *Paul Yaksic 777-6100 STATE ENGINEER UNIVERSITY OF WYOMING CORRECTIONS Herschler Building PO Box 3314 University Station Herschler Building Cheyenne, WY 82002 Laramie, WY 82071 Cheyenne, WY 82002 Pat Tyrrell Tom Buchanan Robert Lampert *Steve Winders 777-6977 *Janet Lowe 766-3307 *Jeffie Wiggins 777-7470 WATER DEVELOPMENT COMMISSION

EMPLOYMENT & WORKFORCE SERVICES

STATE LANDS & INVESTMENTS

6920 Yellowtail Road Herschler Building Herschler Building Cheyenne, WY 82002 Cheyenne, WY 82002 Cheyenne, WY 82002 Michael Purcell Joan Evans Ryan Lance *Andrea Odell 777-7626 *Bob Curtis 777-6761 *Jeanne Norman 777-6644


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APPENDIX D DOLLAR COST PROPOSAL AND SCHEDULE OF PROFESSIONAL FEES AND

EXPENSES PROPOSER GUARANTIES, WARRANTIES AND CERTIFICATIONS

2012 2013 Hours Rates Total Hours Rates Total

Partners

Managers

Supervisory staff

Staff

Other (specify):

Out-of-pocket expenses:

Meals and Lodging

Transportation

Subcontractor

Other (specify):

Total all-inclusive

2014 2015 Hours Rates Total Hours Rates Total

Partners

Managers

Supervisory staff

Staff

Other (specify):

Out-of-pocket expenses:

Meals and Lodging

Transportation

Subcontractor

Other (specify):

Total all-inclusive


Page 36 of 38



(Continued)

A. Proposer Guaranties. By submission of this proposal, the Proposer makes the following guaranties:

1. The proposer certifies it can and will provide and make available, as a minimum,

all services set forth in Section IV, Nature of Services Required. 2. The proposer has read the proposal requirements and agrees that the rights and

prerogatives as detailed therein are retained by the State of Wyoming. 3. The proposer has read and agrees to be bound by the proposed contract language

contained in the RFP and the attached Contract for Audit Services, Statewide CAFR and Single Audit.

B. Proposer Warranties. By submission of this proposal, the proposer makes the following

warranties: 1. Proposer warrants that it is willing and able to comply with State of Wyoming

laws with respect to foreign (non-state of Wyoming) corporations. 2. Proposer warrants that it will subcontract the required percentage of audit work

under subcontract(s). In addition, the proposer warrants the final responsibility for all audit work is theirs.

3. Proposer warrants that all information provided by it in connection with this

proposal is true and accurate. C. Proposer Certifications. By submission of this proposal, the proposer certifies: 1. Prices in this proposal have been arrived at independently, without consultation,

communication or agreement for the purpose of restricting competition. 2. No attempt has been made nor will be by the proposer to induce any other person

or firm to submit a proposal for the purpose of restricting competition. 3. The person signing this proposal certifies that he/she is authorized to represent the

company and is legally responsible for the decision as to the price and supporting documentation provided as a result of this advertisement.


Page 37 of 38



(Continued) 4. Proposer will comply with all Federal regulations, policies, guidelines and

requirements. 5. Prices in this proposal have not been knowingly disclosed by the proposer and

will not be disclosed prior to the award of this Contract. D. General Information.

Proposer Name Phone

FAX

Mailing Address

City State Zip

SSN/Employer Identification Number E. Ownership and Control. Proposer’s Legal Structure:

Sole Proprietorship General Partnership

Corporation Limited Partnership

Limited Liability Other: If Proposer is a sole proprietorship, list:

Owner Name Phone

Mailing Address

City State Zip

SSN/Employer Identification Number

Beginning date as owner of sole proprietorship


Page 38 of 38



(Continued) Provide the names of all individuals authorized to sign for the proposer:

NAME (printed or typed) TITLE

VERIFICATION I certify under penalty of perjury, that I am a responsible official (as identified above) for the business entity described above as Proposer, that I have personally examined and am familiar with the information submitted in this disclosure and all attachments, and that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including criminal sanctions which can lead to imposition of a fine and/or imprisonment.

(Name and Title) (Date)

EVALUATION CRITERIA

Total # of reviewers 5 Combined Ave. Combined Reviewer 1 Reviewer 2 Reviewer 3 Reviewer 4 Reviewer 5Maximum Firm A Firm B Firm A Firm B Firm A Firm B Firm A Firm B Firm A Firm B Firm A Firm B Firm A Firm B

1. AUDIT WORK PLANa. Approach to Auditing the State's Comprehensive Annual

Fiancial Report 20 18.60 19.40 93 97 18 20 18 18 20 20 20 19 17 20b. Approach to Auditing the State's Schedule of Federal

Financial Assistance 20 18.00 19.60 90 98 18 20 18 18 18 20 19 20 17 20c. Approach to Internal Control Review and Analysis 20 19.00 19.60 95 98 20 20 18 18 20 20 20 20 17 20e. Type and Extent of Analytical Procedures 10 8.80 9.20 44 46 8 8 8 8 10 10 10 10 8 10f. Level of Staff and number of hours assigend to each proposed

segment of the engagement 10 8.80 8.40 44 42 10 10 8 9 7 7 10 9 9 7g. Extent of manager and partner on-site participation 10 9.40 7.40 47 37 10 8 9 8 8 6 10 9 10 6h. Philosophy distinguishing providing professional services in

association with the audit versus professional services requiring additional funding. 20 18.40 18.40 92 92 20 18 19 19 18 17 19 20 16 18Total Audit Work Plan 110 101.00 102.00 505 510 104 104 98 98 101 100 108 107 94 101

2. QUALIFICATIONS a. Independence (yes or no. If no, stop as there is a problem)

0 0.00 0.00 0 0b. License or Reciprocal Agreements to Practice in State of

Wyoming 5 5.00 5.00 25 25 5 5 5 5 5 5 5 5 5 5c. Similar Engagements with Other State Governments 15 11.20 12.00 56 60 15 13 15 10 0 7 14 15 12 15

Total Qualifications 20 16.20 17.00 81 85 20 18 20 15 5 12 19 20 17 20

3. QUALIFICATIONS OF PERSONNELa.

Experience and qualifications of the Principals/Partners 5 4.40 4.00 22 20 5 4 4 3 3 4 5 4 5 5b. Experience and qualifications of the Managers 5 4.60 4.40 23 22 5 5 5 4 4 4 4 5 5 4c. Experience and qualifications of the Staff 5 3.40 4.00 17 20 2 4 4 4 3 3 5 5 3 4d. Experience and qualifications of the Subcontractors 5 4.80 3.40 24 17 5 5 5 3 5 1 5 5 4 3

Total Qualifications of Personnel 20 17.20 15.80 86 79 17 18 18 14 15 12 19 19 17 16

Points before cost factor 150 134.40 134.80 672.00 674.00 141.00 140.00 136.00 127.00 121.00 124.00 146.00 146.00 128.00 137.004 COST

a. Lowest Maximum for FY12 25 25.00 18.51 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxb. Lowest Maximum for FY13 20 20.00 14.60 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxc. Lowest Maximum for FY14 20 20.00 14.65 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxd. Lowest Maximum for FY15 15 15.00 10.92 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxe. Ratio of Cost per hours FY12 5 5.00 4.16 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxf. Ratio of Cost per hours FY13 5 5.00 4.13 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxg. Ratio of Cost per hours FY14 5 5.00 4.10 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxh. Ratio of Cost per hours FY15 5 5.00 4.07 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Total Cost 100 100.00 75.14

Total Maximum Score 250 234.40 209.94

Filename: WY_2.xlsx

WYOMING

EVALUATION CRITERIACost Point Calculationlowest bid actual total bids

Assignment of points for cost MHP Points KPMG PointsFY12 = (lowest bid/higher bid)*25 $875,000 875,000 25.00 1,181,930 18.51FY13 = (lowest bid/higher bid)*20 $905,000 905,000 20.00 1,239,825 14.60FY14 = (lowest bid/higher bid)*20 $935,000 935,000 20.00 1,276,825 14.65FY15 = (lowest bid/higher bid)*15 $965,000 965,000 15.00 1,325,045 10.92Total 3,680,000 5,023,625

Copy cell with the lowest bidRatio of dollars to hours

Assignment of points for ratio lowest ratio Points PointsFY12 = (lowest bid/higher bid)*5 $ $875,000 $1,181,930

hours 9,250 10,400ratio $95 $95 5.00 $114 4.16

FY13 = (lowest bid/higher bid)*5 $ $905,000 $1,239,825hours 9,250 10,460ratio $98 $98 5.00 $119 4.13

FY14 = (lowest bid/higher bid)*5 $ $935,000 $1,276,825hours 9,290 10,400ratio $101 $101 5.00 $123 4.10

FY15 = (lowest bid/higher bid)*5 $ $965,000 $1,325,045hours 9295 10400.00ratio $104 $104 5.00 $127 4.07

Copy cell with the lowest ratio

Filename: WY_2.xlsx

WYOMING

Documents

TOPIC: OFFICE: Auditor STATE: KS DATE: 03/26/2012 QUESTION / … · 2013-10-21 · Single Audit Work Contracted Out 1 TOPIC: Single Audit Work Contracted Out OFFICE: Auditor STATE: