The Northern Kentucky Area Development District (hereinafter referred to as NKADD) is accepting proposals to obtain the services of a public accounting firm, whose principal officers are independently certified public accountants, certified or licensed by a regulatory authority of a state or other politcal subdivision of the United States, hereinafter referred to as the "Offeror", to perform a financial and compliance audit for the fiscal year ending June 30, 2018. The proposal will need to include an option for four additional years, on a yearly basis.
For extended details, please refer to the NKADD Request for Qualifications for Audit Services.
- In regards to the 2017 audit, can you provide us with a list of proposed audit adjustments? Are all audit adjustments normally recorded by management?
Audit adjustments, if any, are recorded by management. None for FY17.
- Can you provide a copy of the required audit communications (report to those charged with governance) for the most recent audit?
Linked here: Governance and Conclusion Letter
- Do the auditors normally meet with the Board of Directors (or other governing body) near the completion of the audit? Do they also have a planning meeting?
The auditors meet annually with the Finance and Administration Committee of the Board to give a comprehensive review of the financial results and audit activities. The auditors then present the audit to the Board with overall general comments.
- Were there any material weaknesses or significant deficiencies in internal controls noted during the most recent audit? Can we receive a copy of the management letter, if any?
No material weaknesses. See linked Management Letter
- It appears that VonLehman is your current auditor. Can you explain why you are considering changing auditors? Was there any disagreement with the prior auditor? Did they resign from the audit? Are they allowed to submit a proposal for the 2018 audit?
The Kentucky Auditor of Public Accounts issued their “Recommendations for Public and Nonprofit Boards” on May 11,2009 stating “The Board should rotate, at least every fifth year, the auditing firm engaged to perform its annual financial audit.” A revision to these recommendations was issued on March 4, 2010 stating “The Board should also consider whether rotating audit firms would be beneficial given the facts and circumstances of the organization.” NKADD’s Board has adopted the 5-year rotation as a prudent financial policy. The prior auditor, VonLehman CPA and Advisory Firm, had been the audit firm for more than 5 years and would continue to be the auditor if the policy was for a longer term.
- When were the auditors at your location in the prior year and how many auditors were usually on site? Do you know how many hours in total they spent in the prior year?
Mid December – 2 on site, approximately 1 week
- What is your expected/desired timing for the auditors to be on site?
- Can you provide some background regarding the size of your accounting department?
Finance Director (14 yrs.), Assistant Finance Director (3 mos.), Accounts Payable Clerk (4.5 yrs, 1 in current position) + 2 Administrative staff assigned to Operational areas.
- Have any significant operational changes occurred or are expected to occur from July 1, 2017 to June 30, 2018?
None have occurred.
- Do you expect any significant changes in financial statement balances for the year ending June 30, 2018?
None are expected.
- Are your program expenditures likely to change significantly, such that there may be changes in the major programs that are to be audited in the Single Audit?
None expected, possible addition of Medicaid Program and staff.
- Are the fees paid to the auditors public information? Can you provide us with the fees paid to Von Lehman related to their work for the year ended June 30, 2017? Looks like the budget has $50,000 for audit/accounting in 2017 and $56,000 in 2018 – is that a good estimate of the annual audit fees?
Audit/accounting includes our Consultant, Bramel & Ackley, who reviews our year-end preparations, computes the depreciation, prepares audit workpapers and financial statements to include in audit, prepares SEFA and 990 and provides guidance on compliance/accounting issues -budget $30-35,000. Audit budget $18-22,000.
- Are we able to meet with you or your team prior to submitting our proposal?
A bidders’ conference has not been scheduled as part of this procurement process.
A copy of the last 8 fiscal years’ Audited Financial Statements can be found on our website at http://www.nkadd.org/about-us.