NHCRWA RFQ No. 2024-02 for Financial Audit Services

SCOPE OF WORK
Purpose:The objective of this Request for Qualifications is to select a firm to conduct an annual Audit of the Authority’s Financial Statements for the fiscal year beginning January 1, 2024. Basic Services:The Basic Services to be performed under any Engagement Letter (EL) shall be set forth in such EL. Such Basic Services may include, but not necessarily be limited to the following tasks:
The Auditor shall conduct annual financial audits of the Authority’s basic financial statements and review other required supplementary information (RSI) for the fiscal year ending December 31,  The Authority may request renewal of this engagement for two additional one-year periods These audits shall be performed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the audit requirements of the State of Texas Uniform Grant Management Standards (UGMS) and any other prevailing law(s) applicable during the term of the contract resulting from this RFQ. The Auditor shall plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements, whether caused by error or fraud, and shall perform tests of the Authority’s compliance with certain provisions of laws, regulations, contract, and grants. However, because of the characteristics of fraud, particularly those involving concealment and falsified documentation (including forgery), a properly planned and performed audit may not detect a material misstatement. Therefore, an audit conducted in accordance with generally accepted auditing standards is designed to obtain reasonable, rather than absolute, assurance that the financial statements are free of material misstatements. An audit is not designed to detect error or fraud that is immaterial to the financial statements or to detect immaterial instances of noncompliance. The Auditor shall in conjunction with its annual financial audit perform a compliance audit of management controls on investments, adherence to the Authority’s established investment policies and the quarterly reports prepared by the investment manager. The Auditor shall consider the Authority’s internal control processes and assess control risks, as required by generally accepted auditing standards, and standards applicable to financial audits contained in Government Auditing Standards, for the purpose of establishing a basis for determining the nature, timing, and extent of auditing procedures necessary for expressing an opinion on the financial statements, and not as a means for providing assurance on the Authority’s internal control process or to identify reportable conditions. The Auditor understands that the Auditor's reports on the Authority’s internal control (as part of the financial statement audit and in compliance with laws and regulations) are intended for the information of the management and others within the Authority and applicable federal and state granting organizations. The Auditor shall advise the Finance Director as the Finance Director prepares and compiles the Financial Report in accordance with Governmental Accounting and Financial Reporting Standards which is published and issued by the Governmental Accounting Standards Board (GASB) and all eligibility requirements of the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program. Following the completion of the audit of each fiscal year's financial statements, the Auditor shall issue:
A report on the fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. The primary purpose of the audit shall be to activities and the disclosures, which collectively comprise the basic financial statements of the Authority, as a whole are free from material misstatement, whether due to fraud or error; issue an auditor’s report that includes an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles (GAAP); and report on the fairness of the required supplementary information (RSI) when considered in relation to the financial statements as a whole. The Auditor shall be required to make an immediate, written report of all irregularities and illegal acts of which they become aware to the Finance Director and General Manager. The Auditor shall prepare a management recommendation letter, as applicable. The letter may communicate opportunities for the Authority to improve the economy and efficiencies of the Authority financial management practices that come to the Auditors attention during the audit process. Prior to issuance, the Auditor shall review the proposed draft letter with the Finance Director and the General Manager. Subsequent to issuance, the Auditor shall review the final letter with the Board, if requested to do so.
The Auditor shall assure themselves that the Authority's Board of Directors is informed of all items required by the regulatory agencies including:
Auditor's responsibility under generally accepted & government auditing standards, Significant accounting policies, Management judgments and accounting estimates, Significant audit adjustments, Other information in documents containing audited financial statements, Disagreements with management, Management consultation with other accountants, Major issues discussed with management prior to retention, Difficulties encountered in performing the audit, Auditors shall agree to provide the Authority with information relating to regulation changes that would affect the Authority and its operation such as timely notification of changes proposed or initiated by GASB, FASB, or GAO.