COASTAL BEND COLLEGE BEEVILLE, TX ANNUAL FINANCIAL AUDIT SERVICES ACKNOWLEDGMENT OF RECEIPT

COASTAL BEND COLLEGE BEEVILLE, TX ANNUAL FINANCIAL AUDIT SERVICES ACKNOWLEDGMENT OF RECEIPT Please fill in the requested information below as acknowledgment that you have received the Request for Qualifications/Proposal noted above. If your firm is interested in participating, it is highly recommended that this sheet be completed, returned and/or faxed to: Coastal Bend College Attn: Shannon McCarron, Vice President, Administration 3800 Charco Rd., Beeville, TX 78102. Phone: 361-354-2271 Fax: 361-354-2542 By following this procedure, further notification will be provided should there be addendums and/or modifications to this package. Name and Address of Firm: Fax #: ( Tel. #: ( ) ) Email: YES, Our Company does have an interest in responding. NO, Our Company does not have an interest in responding. Name: Title: Signature: Date: 1 P a g e

REQUEST FOR QUALIFICATIONS/PROPOSAL - RFQ #2017-01 ANNUAL FINANCIAL AUDIT SERVICES for Coastal Bend College District and The Coastal Bend College Foundation, Inc. Coastal Bend College will receive Statements of Qualifications/Proposal from Respondents interested in providing the services described herein. To be considered, Statements of Qualifications/Proposals must be received not later than 10:00 am, local time, Wednesday, April 19, 2017. A Pre-proposal Conference shall be held on Monday, April 4, 2017 at 1:00 pm CDT at Coastal Bend College, 3800 Charco Rd., Beeville, Tx 78102 in the President s Conference Room, located in the Administration Building. Statements of Qualifications/Proposals shall be submitted to: Coastal Bend College Attn: Shannon McCarron, Vice President, Administration 3800 Charco Rd. Beeville, Texas 78102 Technical questions regarding specifics of the required audits and requests for qualifications should be addressed to: Dela Castillo Executive Director of Business Services (361) 354-2212 dcastillo@coastalbend.edu 1. OVERVIEW-PURPOSE a. The Board of Trustees of Coastal Bend College is requesting Statements of Qualifications/Proposal for selecting an independent, qualified certified public accounting firm to perform a financial audit of Coastal Bend College and the Coastal Bend Foundation, Inc. (hereafter called the Foundation) for the fiscal year ending August 31, 2017. b. The College intends to enter a professional services contract with the selected Respondent. The period of performance of the contract will begin on or about August 1, 2017 and terminate when all services and reports associated with the audits are completed. Subject to the mutual agreement of the parties, the contract may be renegotiated and amended on a year-to-year basis to include services for audits in subsequent, consecutive fiscal years, so long as the total number of fiscal years audited under the contract does not exceed four (4). c. Respondents must be licensed to practice public accounting in the State of Texas. 2 P a g e

3 P a g e d. General information about the College and the Foundation may be found on the web at www.coastalbend.edu. e. As a matter of principle, Coastal Bend College is extremely sensitive to the cost of the annual audit. However, the College s primary concern is to obtain the best possible service from a qualified firm. 2. SCOPE OF SERVICES FOR THE COLLEGE AUDIT a. The scope of services to be provided for the audit of the College shall include, but not necessarily be limited to, the following: i. The Audit will include financial reports as prescribed by the Texas Higher Education Coordinating Board and the Southern Association of Colleges and Schools-Commission on Colleges. ii. A management letter addressing internal control systems and procedures. iii. Single audit of federal programs in accordance with the Federal Single Audit Act Amendments of 1996 and the Uniform Grant Management and Standards Single Audit Circular guidelines. iv. Annual report submitted to the Texas Higher Education Coordinating Board by January 1, 2018 as specified in Texas Education Code. v. Annual report submitted to the Board of Trustees of Coastal Bend College prior to the third Wednesday in November, 2017 and each year of the contract. b. Documents included in the Annual Audited Financial Report (subject to change based on changes in federal and state requirements current at the time of the audit.) i. Basic Financial Statements Management s Discussion and Analysis Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position Statement of Cash Flows Notes to the Financial Statements ii. Schedules Schedule of Operating Revenues Schedule of Operating Expenses by Object Schedule of Non-Operational Revenues and Expenses Schedule of Net Assets by Source and Availability Schedule of Expenditures of Federal Awards Schedule of Expenditures of State Awards iii. Reports Independent Auditor s Report Report on Internal Control over Financial Reporting and on compliance and other matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report on Compliance with Requirements Applicable to Each Major Federal Program and State Program and on Internal Control Over Compliance Required by the Uniform Guidance and State of Texas Single Audit Circular

Report on Fraud, Abuse, or Illegal Act (only when observed) Schedule of Federal Findings and Questioned Costs -Report on Compliance with Requirements Applicable to Each Major State Program and Internal Control over Compliance in Accordance with State of Texas Single Audit Circular Schedule of State Findings and Questioned Costs iv. Statistical Section consisting of various reports required by the Texas Higher Education Coordinating Board and the Southern Association of Colleges and Schools- Commission on Colleges. 3. SCOPE OF SERVICES FOR THE COASTAL BEND COLLEGE FOUNDATION AUDIT a. The Coastal Bend College Foundation, Inc. is a not-for-profit corporation chartered by the State of Texas and operated as an adjunct entity of the College. As a separate legal entity, the Foundation requires an audit totally separate from the College's audit. The Foundation is also reported as a Component Unit in the College's financial statements. b. The Foundation is exempt from federal income taxes under section 501 (c) (3) of the Internal Revenue Code and is not classified as a private foundation under section 509 (a) of the Code. c. For the fiscal year ending August 31, 2016, the Foundation reported net assets of $1.5 million dollars and total revenue of $409 thousand dollars. d. The audit shall follow the recommendations and guidelines of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) no. 117, "Financial Statements of Not-For-Profit Organizations" which includes reports of financial position by class of net assets (unrestricted, temporarily restricted, and permanently restricted) and a statement of cash flows. e. Documents included in the Annual Audited Financial Report Independent Auditor's Report i. Statements of Net Assets ii. Statements of Activities iii. Statements of Cash Flows iv. Notes on Financial Statements f. The College prefers that the Foundation audit begin soon after the effective date of contract and end not later than August 31, 2018. 4. SERVICES AND INFORMATION APPLICABLE TO EITHER AUDIT a. The College will provide the auditor with reasonable workspace, desks, and chairs. The auditor will be provided with access to telephone lines, photocopying assistance, and fax machines. b. The audit firm shall be available prior to the close of the fiscal year for interim or preliminary audit work and compliance testing. (This requirement is not applicable for the FY 2017 audit of the Foundation.) c. Prior to submission of a completed audit report, the staff of the audit firm must review a draft of the proposed report and management letter with the College administration. 4 P a g e

5 P a g e d. The audit firm will be required to present two verbal reports to the Audit Committee of the Board of Trustees and later at a meeting of the Foundation Board of Directors. e. The College s accounting staff will be available to answer questions, locate documents, and assist in preparing letters, confirmations, etc. With prior approval of the Executive Director of Financial Services, Dela Castillo, audit working papers, schedules, analyses, and statements may be prepared for the auditor by the College s staff. f. The audit firm must retain audit working papers for a period of not less than five years after the date of the auditor s opinion or until notified that all cognizant agency reviews have been accomplished. The working papers shall be made available for review by the cognizant federal and state audit agencies, by Coastal Bend College, and by designated representatives thereof. g. The primary contact person for matters of a contractual nature will be Shannon McCarron, Vice President, Administration. 5. FORMAT FOR RESPONSE a. The Statement of Qualifications/Proposal should be limited to about twenty (20) pages and include the following sections. It is required that the information be provided in the order listed below: i. Signed Cover Letter and Executive Summary that references this RFQ/RFP and confirms that all elements of this RFQ/RFP have been reviewed and understood. ii. Identify your primary point of contact for this effort and the preferred method the College should use in contacting this person. iii. Discuss your understanding of the work to be done and a commitment to perform the work within the time period stated. iv. Briefly profile the reasons why Respondent is best suited to fulfill the College's needs and objectives. v. Provide names and titles of individuals authorized to make representation for Respondent and how to contact them. vi. The cover letter must be signed by an individual who is authorized to bind Respondent contractually. b. Background and prior experience in auditing 501 (c) (3) corporations and Texas public community colleges or universities. i. List current or past public school (K-12) districts, community college or university auditing assignments in Texas. Give the length of engagement and scope of work currently being or previously performed. Provide similar information for audits of 501 (c) (3) corporations. ii. Discuss your familiarity with the Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges as mandated by the Texas Higher Education Coordinating Board (THECB). iii. Discuss your experience in fund accounting and governmental audits. iv. Discuss your experience and knowledge of federal student financial aid programs. v. Discuss your familiarity with higher education Enterprise Resource Planning Software, specifically the financial components. c. Identification of direct and support staff. i. Specifically identify by name the primary, secondary, and principal staff assistants to be assigned to the College audit and the Foundation audit. Include

resumes and specific information regarding their continuing education credits specific to colleges and universities, and governmental entities. All participants of the audit team must comply with the CPE requirements of the Government Auditing Standards. ii. Provide information about the size, structure and location of the office that will be principally supporting the College audit and the Foundation audit. Provide a list of the total number of employees in the office stratified by partners, managers, senior and staff accountant, and the like. Provide a list of your major clients in this area and range of services offered by Respondent. Describe the resources that your firm can provide on an as-required basis to address technical issues that may arise during the College audit. Describe your company policy with respect to rotation of staff assigned to an audit of the same organization from one year to the next. d. Audit approach (philosophy) i. Discuss or describe Respondent's general philosophy for audits of public institutions such as the College and 501 (c) (3) corporations such as the Foundation. ii. State that the examination will be in accordance with generally accepted auditing standards and that the audit opinion is subject to inherent risks and errors or irregularities that may exist, or if any other circumstances are encountered that require extended services, the auditor will promptly advise the College. State that the auditor will not become involved in micromanagement assessments without the approval of the College Executive Team. iii. State that no extended services will be performed unless approved, in advance, by the College. iv. State that audit firm agrees to meet with the College Executive Team on a weekly basis with a written follow-up. v. State that all communications will be with the College Executive Team and communications with the Board will only take place at the time of the final presentation to the Board of Trustees and the Foundation Board of Directors. e. Provide references (points of contact) of institutions similar to the College and the Foundation currently served by Respondent, including contact name and phone number, and which office (if more than one) provides the majority of service. f. Peer Review and Disciplinary Actions i. State whether Respondent has received a peer or quality review. Provide a copy of the latest Peer Review. ii. Provide information about any disciplinary actions undertaken against Respondent. 6. FEE PROPOSAL a. Provide, in a separate envelope, fee information based on and including the following: i. Either provide separate proposals for the College audit and the Foundation audit or present your proposal in such a manner that the College's evaluation committee can clearly differentiate levels of effort, costs and fees associated with each audit. ii. Categories of audit staff proposed 6 P a g e

iii. Planning hours of audit firm staff time. Submit a work plan giving time estimates and staff level assigned for each significant segment for the College audit. Total estimated hours by category of audit staff. Per hour fee to be charged for each category of audit staff. Total audit staff fees. Itemize any estimated out-of-pocket expenditures or types of expenditures. Specify details (staff level and number of hours) if the fee quoted includes any provision for unforeseen problems. Specify what fee adjustments will be made by the audit firm if the agreed upon timeline is not met by the audit firm without approval from the College President. 7. SELECTION PROCESS a. Contractor selection will be made to a Respondent who best demonstrates the competence and qualifications necessary to perform the services required and with whom the College is able to negotiate a fair and reasonable price for same. b. An Audit Evaluation Committee will review the Statements of Qualifications/Proposal received. At the College's option, any Statement of Qualifications/Proposal may be eliminated from consideration if it does not follow the requirements of this RFQ.RFP or does not meet the minimum content or quality standards. Statements of Qualifications/Proposal will be reviewed by the Committee to determine competence and qualifications to perform the services required. c. At the discretion of the College, any or all the following interviews with any respondent may occur at times and locations of the College's choice. i. Interview(s) with the evaluation team, if desired. ii. Interview(s) with the President and key administrative staff, if desired. iii. Interview(s) with the Board of Trustees, if desired. d. The Audit Evaluation Committee will make a recommendation to the Board of Trustees. 8. EVALUATION CRITERIA a. Respondent's background and experience in conducting audits such as described in this RFQ/RFP for public school (K-12) districts, public community colleges or universities or similar governmental entities and 501 (c) (3) corporations. This would include, among other things, experience in and knowledge of fund accounting, governmental audits, Federal student financial aid programs under the single audit act, and state reporting guidelines. b. Preference shall be given to Respondents that have conducted three or more audits of Texas public school (K-12) districts, public community colleges or universities or similar governmental entities within the last six years and who also demonstrate experience in 501 (c) (3) corporations. c. Respondent's familiarity with the financial accounting software used by institutions of higher education. d. The background, experience and qualifications of the team that will conduct the audits. Other staff available to provide additional resources for technical issues which may arise. 7 P a g e

e. Respondent's approach or general philosophy for audits of public institutions such as the College and 501 (c) (3) corporations such as the Foundation. f. Content of most recent peer review. g. Quality of references provided and information made available to the evaluation team based on college contact with some or all of them. h. The College s perception of Respondent's ability to perform the audit within the timelines required as stated in this Request for Qualifications. i. Results of interview(s) with evaluation committee members, the College President or key administrative staff and/or the Board of Trustees. j. Fee proposals will be opened and considered after the evaluation of all firms and determination of the firms best qualified. 9. GENERAL TERMS AND CONDITIONS a. RFQ/RFP/SOQ Errors and Omissions i. If a Respondent discovers any ambiguity, conflict, discrepancy, omission or other error in this RFQ, any of its attachments or any addendum, it shall immediately notify the College s Executive Director of Business Services of such error in writing and request modification or clarification of the document. Approved modifications, deletions and additions will be made by addendum. Clarification will be given by written notice to all parties who have been furnished an RFQ/RFP Package. ii. If a Respondent fails to notify the College prior to the date fixed for SOQ submissions of an error in this RFQ/RFP known to them, or an error that reasonably should have been known to them, it shall submit a Statement of Qualifications/Proposal at their own risk, and if it is awarded the Contract, it shall not be entitled to additional compensation or time extension because of iii. the error or its later correction. As a function of the negotiation process, the College reserves the right to remedy technical errors in response to this RFQ/RFP and/or modify the published scope of services. Should the College determine that specific expertise is lacking in the audit team, the College will reserve the right to request specific consultants with specific expertise to be added to the team. b. Addenda to RFQ/RFP- The College may modify this RFQ/RFP, any of its action dates, or any of its attachments, prior to the date fixed for submission of SOQs/Proposals, by issuance of an addendum to all parties who have been furnished this RFQ/RFP. Addenda will be numbered consecutively. c. Respondent's Cost - All Respondent costs relating in any way to this RFQ/RFP and Respondents SOQs/Proposals are entirely the responsibility of the Respondent and shall not be chargeable to or paid by the College. d. Rejection of Statement of Qualifications/Proposals -The College may reject any or all Statements of Qualifications/Proposals and may waive any deviation related to this RFQ/RFP and any SOQ/Proposal. The College's waiver of any such deviation shall in no way modify this RFQ/RFP document or excuse the Respondent from full compliance with its requirements if the Respondent is awarded the Contract. Statement of Qualifications/Proposals referring to terms and conditions other than the College's terms and conditions may be rejected as being nonresponsive. 8 P a g e

9 P a g e e. Cancellation - While it is the intent of the College to proceed with the Project, this solicitation does not obligate the College to enter into a Contract. The College reserves the right to cancel this RFQ/RFP at any time with no obligation to any Respondent. No obligation either expressed or implied, exists on the part of the College to make an award or to pay any costs incurred in the preparation or submission of a Statement of Qualifications/Proposal. f. Execution of the Contract - If the College tentatively selects a Respondent for this Project and requests in writing that such Respondent execute the College s completed Contract, such request will be considered withdrawn if the Contract it is not signed by the Respondent and returned, along with the required documents, to the College within Seven (7) business days. The period for execution may be changed by the College. g. Contracts are of no force or effect until approved by the appropriate College officials. Any work performed prior to receipt of a fully executed Contract shall be at Respondent s sole risk. Failure to execute the Contract within the time identified above shall be sufficient cause for voiding the award. Failure to comply with other requirements within the set time shall constitute failure to execute the Contract. If the selected Respondent refuses or fails to execute the Contract, the College may award the Contract to the next qualified highest ranked Respondent. h. Proprietary Information- Respondent should be aware that the contents of all submitted Statements of Qualifications/Proposal become the property of the College upon receipt and are subject to public review and disclosure, after a contract has been awarded, under the terms of the Texas Public Information Act. All information submitted with your proposal will be considered public information unless Respondent identifies all proprietary information in the Statement of Qualifications/Proposal by clearly marking on the top of each page so considered Proprietary Information. A final determination of what constitutes proprietary information or trade secrets is made by the Texas Attorney General under the Texas Public Information Act, Chapter 551, Texas Government Code. While Coastal Bend College endeavors to maintain all submitted information deemed proprietary within Coastal Bend College, Coastal Bend College will not be liable for the release of such information. i. Insurance- The Contractor shall, at its expense, purchase and maintain in full force and effect, for the duration of the Contract, such primary insurance as will protect itself and the College from and against liability, loss, damage, expense, cost (including without limitation to costs and fees of litigation) out of or in connection with the performance of the work hereunder whether such work is performed by the Contractor, any sub consultant, by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be held liable. 10. SUBMISSION OF PROPOSAL a. Respondents are asked to provide an original and 7 copies of the Statement of Qualifications/Proposal in sealed envelopes or containers. The exterior of each envelope or container must be plainly marked AUDIT PROPOSAL, FISCAL YEAR 2016-2017. SOQ /Proposal responses are due on or before the time and date set forth on page 1 of this RFQ/RFP. b. Proposals may be mailed or delivered directly to the office of: Shannon McCarron Vice President of Administration Coastal Bend College

10 P a g e 3800 Charco Rd. Administration Building, President s Office Beeville, TX, 78102. c. The Respondent is solely responsible for ensuring delivery of the SOQ/Proposal no later than the date and time specified. Use of the U.S. Postal Service, campus mail system, express or overnight delivery, or any other service which might result in delayed delivery shall not relieve the Respondent from the conditions of the specified deadline.