REQUEST FOR PROPOSALS FOR 
FINANCIAL STATEMENT PREPARATION AND AUDIT SERVICES 
CITY OF JOHNSONVILLE, SOUTH CAROLINA 

CITY OF JOHNSONVILLE, SOUTH CAROLINA REQUEST FOR PROPOSALS 
FINANCIAL STATEMENT PREPARATION AND AUDIT SERVICES 
Due: July 16, 2019 by 2:00 pm 
The City of Johnsonville is soliciting sealed proposals from qualified vendors for financial services for the fiscal periods ending June 30, 2019, 2020, and 2021. Sealed proposals are due prior to 2:00 pm, July 16, 2019. One (1) original and two (2) copies of sealed proposals should be hand carried or delivered by traceable means to the City Administrator, Attention: Jim Smith, at PO Box 428, Johnsonville, SC 29555. All proposals should be clearly marked "RFP Financial Services". Proposals must address all issues reflected in the attached requirements document/questionnaire and the proposal price summary attachment to be considered responsive. 
The proposal evaluation process will be completed within thirty (30) days of receipt of proposals, and the prospective provider of this service will be identified. The pricing data reflected in your proposal must be good through June 30, 2019. 
All offerors may submit questions or requests for clarification in writing no later than 12:00 pm on Friday, July 5, 2019. After that date, additional questions or requests will not be accepted. 
The City reserves the right to accept or reject any or all proposals received as a result of this request for proposals, to negotiate with all qualified offerors, or to cancel in part or in its entirety, this request for proposals if it is in the City's best interest to do so. 
The City reserves the right to retain all proposals submitted and to use any ideas in a proposal, regardless of whether the proposal is selected. 
This solicitation does not commit the City to award or to pay for any costs incurred in the preparation of your proposal, or to procure or contract for any good or services. 
Your proposal must be signed by an official of your company authorized to commit and enter into a formal contract for goods and services. 
The City does not discriminate on the basis of race, color, national origin, sex, religion, age, or disability in employment or in the provision of goods and services. 
1.0 INTRODUCTION 
	1.1 	PURPOSE OF Request for Proposals (RFP) 
This request solicits proposals from qualified firms to certified public accountants to provide the City of Johnsonville the following: 
Part I-Financial Statement Preparation Part II-Audit Services 
These services are to be performed in accordance with the provisions contained in this request for proposal. 

	1.2 	Term of Engagement 
The contracts will be (1) year contracts, with the stipulation that at the City's option, the contract may be extended for two (2) additional years subject to an annual review, the satisfactory negotiation of terms (including a price acceptable to both the City of Johnsonville and the selected firm), and the concurrence of the City of Johnsonville and the annual availability of appropriations. 
The same firm will not be chosen for both the accounting services and the audit services. 
The City's fiscal year runs July I through June 30. The engagement will include preparation of the City's Financial Statements. 
Prices for additional services (Single Audit) will be specifically identified. 
1.3 	General Instructions 
The City expects to award the contract for services according to the following Schedule: 
Issue RFP 
Due Date for Proposals 
Friday, June 14, 2019 
Tuesday, July 16, 2019 by 2:00 pm 
Questions regarding the RFP may be submitted by 12:00 pm on Friday, July 5, 2019 via email. Jim Smith 
City Administrator 
111 W Broadway Street, Johnsonville, SC 29555 cityadmin@cityofjohnsonville.com
Only questions submitted by the deadline will be answered directly to the email address of the sender by the City no later than 12:00 pm on Tuesday July 9, 2019. 
Firms may arrange on-site inspections by coordinating with the City Administrator. 
Proposals Received after 2:00 pm July 16, 2019 will be considered non-responsive and returned unopened. The official clock will be that of the City's Town Administrator. 
Evaluation of proposals and selection of the recommended firm( s) will be conducted by the City Administrator and Finance Department staff. Their recommendation will be taken to the City Council who must approve the contract award. Firms will be evaluated initially on the basis of the written proposals, as well as follow up questions that are deemed necessary. Further evaluations may include an oral presentation of the staff, mayor, and/or council by the firm(s) deemed most responsive to the RFP. 
During the evaluation process, the City of Johnsonville reserves the right, where it may serve the City's best interest, to request additional information or clarification of information from one or more proposers, or to allow corrections of errors or omissions. 

1.4 	Terms and Conditions 
1.4.1 Disqualification and Rejection of Bids 
The City reserves the right to reject any proposer who has failed to perform satisfactorily, or complete on time, or in a manner inconsistent with the proposal documents, contract of similar nature, or to reject a proposer who is not in a position to perform such contract satisfactorily. The City expressly reserves the right to award the contract to the offeror that best meets the requirements as set forth herein. 
1.4.2 Assignment Contract 
The audit firm shall not assign any interest of the agreement and shall not transfer any interest in the same without prior written consent of the City. The firm shall not subcontract any part of the services without consent of the City. 
1.4.3 Insurance Provisions 
The audit firm selected will be required to provide and maintain proof of insurance throughout the contract term in the amount of $1,000,000 as follows: 
Comprehensive General Liability (per occurrence) 
Worker's Compensation Liability (as required by State statutes) 
The City of Johnsonville is to be named as an Additional Insured on the above msurance coverage as respect to the City's interest under the contract. 
Certificates showing proof of such insurance shall be submitted to the City prior to commencement of services under the Agreement. Further, it shall be an affirmative obligation upon the firm to advise the City Clerk/Treasurer at fax number 843-386-2626; email mrollins@cityofjohnsonville.com , or by mail at PO Box 428, Johnsonville, SC 29555, within two (2) days of the cancellation or substantive change of insurance policy set out herein, and failure to do so shall be construed to be a breach of the Agreement. 
1 .4.4 Indemnification 
The selected film agrees to indemnify, defend, and hold harmless the City of Johnsonville and their authorized officer, employees, agents, and volunteers from any and all claims, actions, losses, damages, and/or liabilities arising from their acts, errors, or omissions and for any costs or expenses incurred by the City therefore under the agreement. 
1.4.5 Compliance with Law 
The selected firm and its agents and employees shall be bound and comply with all federal, state, and local laws, ordinance rules and regulations, as well as all other governing bodies having legal jurisdiction with respect to the area where such work is performed. 

1.4.6 License and Permits 
The selected firm shall be required to obtain all applicable City of Johnsonville permits and business licenses. The business license department may be reached at 843-386-2069 or mrollins@cityofjohnsonville.com.
1.4.7 Vendor Disclosure/Notice of SC Freedom of Information Act 
The parties acknowledge that all material submitted may be subject to release under the South Carolina Freedom of Information Act (FOIA) and will be released to the public unless exempt from disclosure under the FOIA. We discourage you from including any information you consider proprietary or trade secret, as this material is subject to the FOIA once it's in the City's possession. If you must include any such information in your submission, please identify it by color, labeling, and/or bold font so that it can be readily identified. In the event the City receives a request for this material, the City will notify those parties who have identified information they believe is proprietary or trade secret of the request. The City has a fifteen-day deadline to produce the material. This is your window to file an action challenge the release. Please be on notice that if the City is not served with such an action, the information will be released. 
The City is not responsible for costs incurred in preparation of the RFP. By submitting a proposal, a firm certifies that is has fully read and understands this RFP, has reviewed the FY 2018 Financial Report located at www.cityofiohnsonville.com and has full knowledge of the scope of the work to be performed; the detailed requirements of the services to be provided and the conditions under which the services to be performed. If a firm wishes to suggest any alternatives to RFP items, such alternatives must be clearly specified and described in a memo accompanying the proposal. 
Any proposal submitted shall constitute an irrevocable offer through June 30, 2019, to provide the proposed services at the proposed compensation. 
The City reserves the right to reject any or all proposals, to call for new proposals, to waive any requirement of the RFP, or to award the contract to the next most qualified proposer if the selected firm does not execute a contract within fifteen (15) days after notification of the bid award or if such actions is deemed to be in the best interest of the City. The proposal submitted by the successful firm will become a part of a written agreement between the City and the firm. 
The City reserves the right to terminate any resulting agreement, in part or in whole, without penalty upon sixty (60) days written notice to the auditor. Any termination agreement shall not relieve the auditor of the obligation to deliver and/or perform on all outstanding orders issued prior to the effective date of termination. In the event of termination by mutual agreement, the auditor shall be compensated for all hours worked at the specified contractual rate. 
The City may at any time during the contractual agreement period, make changes within the general scope of the agreement and its technical provisions. If such change causes any increase or decrease in the auditor firms cost of performance, an adjustment will be made in agreement price, or in time allowed for performance, or both, and a written memorandum of such adjustment shall be made. 

Any claim by the firm for such an adjustment must be made in writing and prior to proceeding with the service for which an adjustment is requested. Nothing in this clause shall excuse the firm from proceeding with performance of this contract in accordance with its original terms and conditions and any approved changes. 
2.0 GOVERNMENT ENTITY TO BE AUDITED 
	2.1 	Description of the City of Johnsonville 
The City of Johnsonville was incorporated under the laws of South Carolina on May 24, 1913. It currently occupies three square miles and serves a population of around 1,480. 
The City of Johnsonville operates under the council (strong council) form of government. Policymaking legislative authority is vested in a governing Council (Council) consisting of the mayor and six other members, elected to four-year staggered terms. 
The City provides a full range of services, including police, fire and rescue, sanitation services, the repair and maintenance of city streets and infrastructure, planning, and zoning. In addition to governmental activities, the City provides water, sewer, and wastewater. 
The City of Johnsonville has a total payroll of approximately $775,000 covering approximately 21 full-time and part-time employees. 
	2.2 	Definition of Johnsonville's Fund Structure 
The City uses the following fund types and account groups in its financial reporting: 
Governmental Fund Types General Fund 
Police Equipment Fund Victims Assistance Fund Hospitality Tax Fund Heritage Festival Fund Restricted Donations Fund Old IGA Building Fund Francis Marion Statue Fund Park Improvements Fund Grants Fund 
Capital Projects Fund 
Proprietary Fund Types Water Fund 
Sewer Fund 
	2.3. 	Budgetary Basis of Accounting 
The City of Johnsonville prepares its budgets on a basis consistent with generally accepted accounting principles and legally adopts a budget for all government and proprietary fund types. 

2.4 	Federal and State Financial Assistance 
The City of Johnsonville periodically receives federal and state grant assistance. Grant amounts fluctuate, but may be at a level requiring performance of a Single Audit. For the fiscal year ending June 30, 2019 a single audit is not anticipated. 
2.5 	Pension Plan 
The City of Johnsonville participates in the South Carolina Retirement System and the South Carolina Police Officers Retirement System. Both plans are administered by the State and classified as multiple-employer cost-sharing public employee retirement systems. 
2.6 	Information 
More detailed information on the government and its finances can be found in the City's Annual Financial Report. This document is available for review on the City's website at www.cityofiohnsonville.com.
2.7 	Accounting Systems Records 
The City's accounting records are maintained through FMS software. The FMS system encompasses all areas of financial management to include cash management, financial reporting, payroll, accounts payable, purchasing, business licensing, and utility billing. Public Safety uses LawTrak software. Capital assets are maintained with Easy ACCT. 
3 .0 FINANCE OPERATIONS/CONTACT PERSON/ ORGANIZATIONAL CHART /KEY PERSONNEL 
The City's Finance Department is overseen by the City Administrator, Jim Smith, and consists of two (2) additional employees. 
The auditor's principal contact with the City of Johnsonville will be Jim Smith, City Administrator, or a designated representative, who will coordinate the assistance provided by the City to the auditor. 
A list of the City's key personnel is attached and labeled Attachment A. 
The Finance Department staff and responsible management personnel will be available to assist the firm by providing information, documentation and explanations. City of Johnsonville personnel will also pull invoices, minutes of Council meetings, and other supporting documentation as needed and will make copies of pertinent materials for the auditors. City staff will prepare supporting schedules for the auditor as needed. The exact format and content of such schedules will be determined during the initial stages of the audit process. 
Adequate audit workspace will be provided in close proximity to accounting records and staff. 

4.0 SCOPE OF SERVICE TO BE PROVIDED 
4.1 	Part 1-Financial Statement Preparation 
The funds that comprise the financial statements include those listed in Section 2.2 of this proposal. The City, with assistance, shall have closed and balanced all accounts for all funds to be examined under Part II by October 1 of each year. 
The City intends to issue basic financial statements prepared in accordance with GAAP and all applicable federal and state requirements to include supplemental schedules for sub funds. 
The audit firm engaged will be responsible for preparation of the basic financial statements. Throughout the contract period the auditor shall advise the City on implementation of new accounting standards as promulgated by the authoritative bodies. The auditor shall advise the City on specialized accounting questions that may arise. 
The City acknowledges its responsibility for the reliability, accuracy, and completeness of the financial preparations. Finance Department staff will participate in a thorough review of the draft audit report. 
4.2 Part II-Financial Audit Services 
The Audit services require the auditor to express an opinion on the fair presentation of its basic financial statements in conformity with generally accepted accounting principles. The auditor is not required to audit "required supplementary information" presented in the report, but should apply certain limited procedures, consisting principally of inquiries of management regarding methods of measurement and presentation of the supplemental information. The auditor is also not required to audit combining and individual fund financial statements and supplemental information presented that is not a required part of the basic financial schedules. However, the auditor is to provide an "in-relation-to" report on the combining and individual fund financial statements and supplemental information based on the auditing procedures applied during the audit of the basic financial statements. The auditor is not required to audit the introductory or statistical sections of the report. 
To meet the requirements of this request for proposal, the audit shall be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the General Accounting Office's (GAO) Government Auditing Standards (1994), the provisions of the federal Single Audit Amendments of 1996 and US Office of Managements and Budget (0MB) Circular A-133 (if applicable), Audits of States, Local Governments, and Non-Profit Organizations. 
The following reports shall be issued: 
1.	A report of the fair presentation of the basic financial statements in conformity with generally accepted accounting principles. 
2.	A report on compliance and on internal control over financial reporting based on the audit of the basic financial statements performed in accordance with Government Auditing Standards. 

In the required reports on compliance and internal control, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the data consistent with the organization's ability to record, process, summarize and report financial data consistent with the assertion of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in reports. 
Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the Mayor, City Council, and Finance Director. 
All working papers and reports must be retained, at the auditor's expense for a minimum of three (3) years, unless the firm is notified in writing by the City of Johnsonville of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees: 
1.	City of Johnsonville 
2.	US General Accounting Office (GAO) 
3.	Parties designated by the federal or state governments or by the City of Johnsonville as part of 
an audit or quality review process 
4.	Auditors of entities of which the City of Johnsonville is a sub-recipient of grant funds 
In addition, the firm shall respond to the reasonable inquires of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. 
5.0 PROPOSAL REQUIREMENTS 
The following material is required for a proposing firm to be considered: 
1.	Title Page- Title page showing the request of proposals subject, the firm's name, the name, address, and telephone number of the contact person, and the date of proposal. 
2.	Table of Contents 
3.	Transmittal Letter- A signed letter of transmittal briefly stating the proposer's understanding of the work to be done, the commitment to perform the work within the allocated time period, a statement 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 until June 30, 2019. 
4.	Detailed Proposal- The purpose of the proposal is to demonstrate the qualification, competence, and capacity of the firms seeking to perform services for the City of Johnsonville in conformity with the requirements of this request for proposal. As such, the substance of proposals will carry more weight than their form or manner of presentation. The proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an approach that will meet the request of proposal requirements. 
5.	Sealed Dollar Cost Bid- A Total All-Inclusive Maximum Price for the June 30, 2019 year-end audit engagement and for each subsequent two (2) years of the contemplated engagement (excluding single audit). Projected Hours and Billing Rates for Engagement and Out-ofPocket Expenses. Include a Schedule of Professional Fees and Expenses, presented in the format provided in Appendix D that supports the total all-inclusive maximum price. 

6.	Rates for Additional Professional Services- If it should become necessary for the City of Johnsonville to request any additional services to either supplement the services requested in this RFP or to perform additional work shall be performed only if set forth in an addendum to the contract between the City of Johnsonville and the firm. Any such additional work agreed to between the City of Johnsonville 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 bid. 
7.	Manner of Payment- Progress payments will be made on the basis of hours of work completed during the course of engagement and out-of-pocket expenses incurred in accordance with the firm's dollar cost bid proposal. Interim billing shall cover a period of not less than a calendar month. 
8.	Independence- The firm should provide an affirmative statement that is independent of the City of Johnsonville as defined by Generally Accepted Auditing Standards and the US General Accounting Office's Government Auditing Standards. The firm should also list and describe the firm's professional relationships involving the City of Johnsonville or any of its employees 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 service(s). In addition, the firm shall give the City of Johnsonville written notice of any professional relationships that may be entered into during the period of this agreement. 
9.	License to Practice in South Carolina- An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in South Carolina. 
10.	Firm qualifications and Experience- The proposal should state the size of the firm, the size of the firm's 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. This firm is also required to submit a copy of the report on its most recent external quality control review, with a statement whether that quality control review included a review of specific government agreements. 
11.	Partner Supervisory and Staff Qualifications and Experience- Identify the principal supervisory and management staff, including engagement partner, manager, and other specialists that would be assigned to the engagement and their qualification to do so. 
12.	Similar Engagement with Other Government Entities-List the most significant engagement performed in the last five years that are similar to the engagement described in this proposal. 

APPENDICES 
A.	List if Key Officials, Office Locations and Telephone Numbers 
B.	Proposer Guarantees 
C.	Proposer Warranties 
D.	Format for Schedule of Professional Fees and Expenses for the Audit of 2019 Financial Statements 

APPENDIX A 
LIST OF KEY PERSONNEL, OFFICE LOCATIONS, AND TELEPHONE NUMBERS 
Jim Smith 	City Hall 	(843) 386-2069 	
	111 W Broadway St 		
City Administrator 	Johnsonville, SC 29555 		
Marlene Rollins 	City Hall 	(843) 386-2069 	
	111 W Broadway St 		
City Clerk/Treasurer 	Johnsonville, SC 29555 		
Ron Douglas 	Police Department 	(843) 386-2069 	
	146 Broadway St 		
Chief of Police 	Johnsonville, SC 29555 		
Troy Gaskins 	Water Department 	(843) 319-1711 	
	150 Broadway St 		
Water Supervisor 	Johnsonville, SC 29555 		
Joey Miles 	Sewer Department 	(843) 319-1039 	
	31 Bluff House Rd 		
Sewer Supervisor 	Johnsonville, SC 29555 		

APPENDIXB 
The proposer certifies it can and will provide and make available, as a minimum, all services set forth in Section II, Nature of Services Required. 
Signature of Official: 	_ 
Name:. 	_ 
Title:. 	_ 
Firm: 
-------------------------------- 
Date: 	_ 

APPENDIXC 
A. Proposer warrants that it is willing and able to comply with the State of South Carolina laws with respect to foreign (non-state of South Carolina) corporations. 
B. Proposer warrants that is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. 
C. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the City of Johnsonville. 
D. Proposer warrants that it will maintain worker's compensation coverage on all staff working on the audit. 
E. Proposer warrants that all information provided by it in connection with this proposal 1s true and accurate. 
	Signature of Official: 	_ 
	Name: 	_ 
	Title: 	_ 
	Firm: 	_ 
	Date: 	_ 

	APPENDIX D 				
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE 2019 	
	FINANCIAL STATEMENTS 			
			Standard 	Quoted 		
		Hours 	Hourly 	Hourly 	Total 	
			Rate 	Rate 		
Partners 					
Managers 					
Supervisory Staff 					
Staff 					
Other (Specify) 					
Subtotal 					
Out of Pocket Expenses: 					
Meals and Lodging 					
Transportation 					
Other (Specify) 					
Total all-inclusive maximum cost for 					
the 2019 audit