The Edge at Reno 2011 Financial Audit Request for Proposal
The Edge at Reno is requesting a 2011 audit proposal from several CPA firms that have extensive experience in providing audit and tax reporting services for Nevada Home Owners Associations.
The Edge at Reno is an association classified as a 501(c)(6) tax-exempt organization by the IRS and is headquartered in Reno, Nevada.
The Edge at Reno is managed by Western Nevada Management, a Reno, Nevada based Association Management Company, with 20 additional communities under management.
The Association concentrates on providing maintenance and landscaping services to 67 homeowners, members of The Edge at Reno.
Owners are billed monthly for homeowners assessments, which includes insurance and reserve contribution.
Association policies are determined by a board of directors, elected in November by the homeowners.
Financial Status The Edge at Reno revenues for 2010 were approximately $200,000. Assessments are the majority of the income, with minimum income coming from fines, transfer fees, and water usage billing.
The Edge at Reno writes approximately 20 checks a month.
Timing:
The Edge at Reno utilizes a calendar year, which ends December 31. We anticipate that we would be prepared for the audit to begin fieldwork in early February 2012 and would expect the delivery of financial statements and management letter by June 30, 2012.
Tax returns are expected to be delivered at least five days prior to their due date for review by management with no more than one extension requested.
Services Requested
The Association requests a bid from your firm for:
· Consolidated audit of the financial statements for the year ending December 31, 2011.
· Management letters containing comments and recommendations with respect to accounting and administrative controls and efficiency
· Review of The Edge at Reno Tax Returns for 2010
· Be available to answer any questions throughout the year
· Recommend Process Changes and Internal Controls
· Recommend Changes to Accounting Process for Fund Accounting Requirement
· Audit Controls to Operating and Reserve Accounts
· Contribution Levels to Reserve Fund
· Anti Fraud Recommendations
· Preparation of the 2011 Tax ReturnIf you decide to submit a proposal, we will make available all records and accounts as well as all other information required for you to respond.
The Edge at Reno through Western Nevada Management will provide:
· working trial balances
· detailed general ledger reports
· lead schedules and work papers, as necessary, to contain costs
· retrieval and refilling of documents based on pre submitted lists
· preparation of confirmations and other required letters
· adequate workspace and access to audit staff
· a copy of the current chart of accounts
· all board and committee minutes;
· all other requests necessary to complete the audit work
· 2010 tax Return.
Proposal Specifications
Each vendor, as a part of the response to the Request for Proposal (RFP), must supply the name, telephone number, and fax number of the individual assigned responsibility for the RFP.
Since we will be comparing the qualifications of several firms, please provide the information in the order requested as follows:A. Firm Philosophy in Providing Audit and Tax Services to Home Owner Associations
Provide a one page or less description of your firm. Describe what audit and tax engagements your firm currently has in the association industry. If partners or other staff serves in association industry advisory capacity, please list such positions.
In one page or less, describe your firm's philosophy concerning retention of staff and the experience levels of individuals who would be assigned to our account. Specifically, explain how your firm plans to provide continuity of staff on our audit. In one page or less, describe your firm's basic approach to performing an audit and the resulting advantages, particularly your firm's expertise in the areas of new accounting standards such as NRS 116. Please describe your firms experience with HOA fund accounting requirements, as well as tax issues, including water billing income, and income from rental operations due to possible foreclosures.C. Scheduling and Staffing of Engagement
1. Identify the engagement team which will be performing our audit and include a resume of the qualifications and experience for partners, managers and staff assigned to our account. Comment on the impact of transition to new auditors on the Association and any associated start up charges or staff work.
2. Indicate the expected timing and completion of the audit and the expected delivery of the financial statements and management letter. (Your timing should directly correlate with the deadlines mentioned in this proposal.)
3. Indicate any specific assistance you will require of our accounting staff.
4. For each request listed above, please provide the estimated number of hours to be spent by each staff person and the expected rate per hour of each. State whether or not out of pocket expenses are included in your fee structure.
5. Describe whether and how you plan to bill for cost overruns. State how your firm can reduce any overruns and how we can be assured of no "surprise" billings. Do you propose a maximum cap on your audit fee? If so, please indicate.
6. Explain your firm's availability, philosophy and billing rate for minor advice and counsel during the year.
D. References
Please provide a list of home owners associations that we can freely contact to discuss your audit work with them. Clients listed should be of similar size and nature to our organization and be serviced by the same partner, manager, and senior assigned to our audit. Such listing of clients should include clients' contact name, title, and telephone number.
E. Other Proposal Information
1. Please give any additional information, not specifically requested previously, you consider essential to the proposal. If there is no additional information to present, state so.
2. It should be noted that either party may cancel the audit for the second or third year by written notice to the other party no later than September 1 of the year to be audited.
3. The Association is not liable for any costs incurred by the prospective auditor replying to the request for proposal.
F. Proposal Deadline The deadline for receipt of your proposal is close of business 31 October 2011. No proposal received after this date will be considered.
Top candidates will be asked to make brief presentations to The Edge at Reno Board of Directors Meeting on November 7th, at 7 PM, by phone.
We appreciate your consideration of our request. Please send five copies of your proposal, sealed, to:
AUDIT RFP
The Edge at Reno
Western Nevada Management
804 Mill Street
Reno, Nevada 89502
(775) 786-6133
Thank you in advance for your efforts in this process.
