Rainbow Municipal Water District is soliciting proposals from qualified firms of certified public accountants to audit the District’s financial statements for three (3) fiscal years, starting with fiscal year ending June 30, 2017, ending with the fiscal year June 30, 2019. There will be an additional option of auditing the District’s financial statements for two (2) subsequent fiscal years, those fiscal years ending June 30, 2020 and June 30, 2021. Audits are to be performed in accordance with the California State Controller’s audit requirements for special district Generally Accepted Accounting Principles (GAAP), and Standards and Governmental Accounting Standards Board (GASB) guidelines. There is no expressed or implied obligation from the District to reimburse responding firms for any expense incurred in preparing proposals in response to this request.
FAQ’s for Auditing RFP
1. Is the District 2016 audit report available? If so, may we receive a copy?
Below you will find our posted Audit Report Draft for 2016 online. This item will be presented to the Board of Directors for acceptance at the May 2017 meeting.
2. Did the District have any management letter comments or significant deficiencies or material weaknesses in prior audits?
3. Is the District open to interim testing being done?
4. What were the audit fees for FYE 6/30/16?
5. How long was the fieldwork of the audit in FYE 6/30/16 for the District? And how many individuals made up the audit team?
One week of fieldwork, it varied from 2-4 auditors throughout the week.
6. Is there a reason why the District is going out to bid? And is the prior auditor allowed to bid on the FYE 6/30/17, 6/30/18 and 6/30/19 audits?
Adhering to best practice, it is good to conduct an RFP every 3-5 years. Yes, the current auditors are welcomed to bid on the RFP.
7. Has the District had in the past year, or is it contemplating any significant new or revised IT systems?
In 2015, the District has been in the process to convert financial applications from Datastream to Springbrook. With the Utility Billing application going live in November 2016.
8. Has the District requested any additional, non-audit services from its auditors during the past contract and, if so, what was the nature of these services?
No, however this FY 16-17 we would like a review of our Capital Asset Valuation Report by Third Party and Restatement of Capital Assets in conformity to GAAP with approved valuation method. This will be a one-time prior period adjustment of our Fixed Assets with the approved valuation method.
9. Is the District expecting to require a Single Audit in FYE 6/30/17 due to Federal Expenditures of $750,000?
In current Fiscal Year 2016-17, there will not be a need for a single audit.
10. The request for proposal mentions doing a CAFR. The 6/2015 audit report on your website was not a CAFR, so is this something the District is considering or planning to do for FY17 and moving forward?
Yes, we are striving for FY 2016-2017 to obtain a Certificate of Achievement for Excellence in Financial Reporting Program (CAFR Program) from GFOA.
Please download the PDF to read more about the RFP, scope of work and submittal process.RFP Audit Services Rainbow.pdf
Please see the District's 2016 Draft Audit2016 Audit Report (Draft).pdf