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R-17-14RESOLUTION R-17-14 AUTHORIZING THE ENGAGEMENT OF BAKER TILLY TO PROVIDE PROFESSIONAL AUDITING SERVICES FOR FISCAL YEARS 2017 THROUGH 2O21 WITH FIVE ONE YEAR EXTENSIONS WHEREAS, the Village is required to conduct an audit of public funds on an annual basis; and WHEREAS, the Village has received a proposal, dated August 2, 2017, from Baker Tilly to perform said services for five years beginning with calendar year 2017; and WHEREAS, after review of the proposal Village staff has recommended acceptance of the proposal from Baker Tilly; and WHEREAS, it is in the best interest of the Village to retain this firm to prepare the annual financial report for the fiscal years ending December 31, 2017 through 2021 with five one year extensions. NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF DEERFIELD, COUNTIES OF LAKE AND COOK, STATE OF ILLINOIS, that the proposal of Baker Tilly to perform the audit of Village funds for the fiscal years ending December 31, 2017 through 2021 with five one year extensions is hereby accepted. ADOPTED this 4th day of December 2017. AYES: Jester, Oppenheim, Seiden, Shapiro, Struthers NAYS: None ABSENT: Benton ABSTAIN: None APPROVED this 4th ATTEST: Vil age Clerk day of December _ , 2017. Mayor AUDIT SERVICES AGREEMENT THIS AUDIT SERVICES AGREEMENT (the "Agreement"), dated 2017 (the "Effective Date"), is entered into by and between the Village of Deerfield, an Illinois home rule municipality (the "Village") and Baker Tilly Virchow Krause, LLP, an Illinois limited liability partnership (the "Consultant"). (For convenience, the Village and the Consultant maybe referred to individually as a "Party" and collectively as the "Parties.") RECITALS WHEREAS, on or about July 6, 2017, the Village, with the Village of Glenview and the City of Highland Park (collectively, the "Municipalities"), issued Request for Proposals No. 217019, as subsequently amended and supplemented by Addendum #1 thereto (collectively, the "RFP") seeking a qualified provider to perform audit services (the "Services") for each Municipality; WHEREAS, on or about August 2, 2017, the Consultant submitted its proposal in response to the RFP (the "Proposal"); WHEREAS, the Village evaluated all proposals submitted in response to the RFP and determined that the Proposal was most advantageous to and would best serve the Village; WHEREAS, at its regular meeting on Q_e,4eY4[j2017, the Village's Board of Trustees passed a Resolution authorizing the Village President to execute an agreement with the Consultant for the Services; WHEREAS, the Parties have determined that it is in their best interests to enter into this Agreement in order to set forth the respective rights and obligations of each Party in regard to the Services; NOW THEREFORE, in consideration of the foregoing, the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Village and the Consultant agree as follows: SECTION 1. RECITALS The recitals set forth above are true and correct and are hereby incorporated into this Agreement as if fully stated herein. SECTION 2. CONTRACT DOCUMENTS The documents which govern the Consultant's Services (collectively, the "Contract Documents"), and which constitute the entire agreement between the Parties, are: A. This Agreement and all exhibits thereto; B. The RFP, attached hereto as Exhibit A and incorporated herein by reference; and C. The Proposal, attached hereto as Exhibit B and incorporated herein by reference; The Consultant shall comply with all provisions, requirements, and obligations set forth in the RFP and the Proposal, whether or not specifically stated in this Agreement. The omission of specific reference to any provision(s) of the RFP and/or the Proposal in this Agreement shall not excuse Consultant's obligation to comply with such provision(s) or otherwise preclude the application of such provision(s). In the event of a conflict between the text of this Agreement and any exhibit hereto, the text of this Agreement shall control. In the event of a conflict between the RFP and the Proposal for which the Proposal expressly excepts the terms of the RFP, as described in the exceptions set forth in Exhibit C, attached hereto and incorporated herein by reference (the "Exceptions"), the Exceptions shall control. In the event of any other conflict between the RFP and the Proposal, the RFP shall control. SECTION 3. SCOPE OF WORK The Consultant agrees to provide the Services in accordance with the Contract Documents, The Consultant shall perform the Services diligently and to the best of its talents, skills, and expertise. The Consultant shall abide by and observe all rules and regulations established by the Village and shall comply with any and all applicable federal, state, and local laws, statutes, ordinances, orders, codes, rules, and regulations, now or hereafter in effect, relating to the Services, and shall not permit any violations of the foregoing. SECTION 4. TERM; TERMINATION The term of the Agreement shall commence on the Effective Date with respect to the Village's 2017 Fiscal Year and shall expire upon the final completion of Services for the Village's 2021 Fiscal Year (the "Initial Term"). The Parties may renew this Agreement for one (1) additional like term, commencing with the Village's 2022 Fiscal Year and ending upon final completion of Services for the Village's 2026 Fiscal Year (the "Renewal Term"), upon mutual written agreement of the Parties. Notwithstanding the foregoing, the Village may terminate the Agreement during the Initial Term or the Renewal Term (if any) in accordance with Sections 17 (as modified by the Exceptions), 19, 26 (as modified by the Exceptions), and 27 of the RFP's General Terms and Conditions. SECTION 5. AGREEMENT PRICE The Village agrees to pay the Consultant in accordance with the Contract Documents and at the rates for Services set forth in Exhibit D, attached hereto and incorporated herein by reference (the "Rate Schedule"). The Village shall pay all invoices submitted by the Consultant in accordance with the Local Government Prompt Payment Act, 50 ILCS 50511, et seq. SECTION 6. CONSULTANT REPRESENTATIONS The Consultant hereby represents as follows: A. It is a company which is validly existing and duly authorized to do business under the laws of the State of Illinois, with power and authority to conduct its business as currently conducted and as contemplated by this Agreement. B. All necessary corporate, regulatory, or other similar action has been taken to authorize and empower the Consultant to execute, deliver and perform this Agreement. The person(s) executing this Agreement on behalf of Consultant is duly authorized to do so. C. Except only for those representations, statements or promises expressly contained in the Contract Documents, no representation, statement or promise, oral or in writing, of any kind whatsoever by the Village, its officials, agents, or employees has induced Consultant to enter into this Agreement or has been relied upon by Consultant. D. No proceeding of any kind, including, but not limited to, litigation, arbitration, judicial or administrative, is pending or threatened against or contemplated by Consultant which would under any circumstance have any material adverse effect on the execution, delivery, performance or enforceability of this Agreement. As of the date of execution of this Agreement, Consultant has not received notice, or has a reasonable basis for believing that Consultant or any of its members, shareholders, partners, associates, officers, managers or employees are the subject of any criminal action, complaint or investigation pertaining to any felony charge, or any civil action or claim predicated on alleged acts of antitrust violations; business fraud; discrimination due to race, creed, color, disability, gender, marital status, age, national origin, or religious affiliation. E. This Agreement constitutes a valid, legal and binding obligation of Consultant, and to the extent permissible by law, is enforceable against it in bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors' rights generally and to general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law. F. Consultant shall provide prompt notice to the Village whenever, during the Initial Term and any Renewal Tenn, any of the representations contained herein ceases to be true or correct. SECTION 7. INDEMNIFICATION & LIMITATION ON DAMAGES The Consultant agrees to indemnify, save harmless and defend the Village of Deerfield and its respective elected and appointed officials, employees, agents, consultants, attorneys and representatives (each a "Covered Person") and each of them against and hold it and them harmless from any and all lawsuits, claims, injuries, demands, liabilities, losses, and expenses (collectively "Claims"); including court costs and reasonable attorney's fees to the extent such Claim or Claims have arisen out of the willful misconduct, negligent, or other wrongful acts or omissions of Consultant in connection with the Services provided by Consultant pursuant to this Agreement. The foregoing indemnity and save harmless obligations shall apply except if such Claim(s) is caused solely by the direct willful and wanton conduct of the Village of Deerfield or its agents, servants, or employees or any other person indemnified hereafter. The obligations of the Consultant under this provision shall not be limited by the limits of any applicable insurance required of the Consultant. Notwithstanding the foregoing, the indemnity and save harmless obligations in this Section shall not apply to Consultant, its subsidiaries and their present or former partners, principals, employees, officers and agents: (i) in the event that the lawsuits, claims, injuries, demands, liabilities, losses, and expenses arise as a result of the sole acts or omissions of the Village or such Covered Person; or (ii) to the extent that Consultant's obligations under this Section would violate Consultant's independence requirements under the AICPA Code of Conduct. Furthermore, because of the importance of the information that the Village provides to Consultant with respect to Consultant's ability to perform the services, and provided that Consultant provides the services in a manner consistent with the standards of professional practice by recognized auditing firms providing services of a similar nature, the Village hereby releases Consultant and its present and former partners, principals, agents and employees from any liability, damages, fees, expenses and costs including attorneys' fees, relating to the services to the extent that the same arise from or relate to any information, including representations by management, provided by the Village, its personnel or agents, that is not complete, accurate or current. The liability (including attorney's fees and all other costs) of Consultant and its present or former partners, principals, agents or employees related to any claim for damages relating to the Services performed under this Agreement shall not exceed Two Million Dollars ($2,000,000), except to the extent finally determined to have resulted from the willful misconduct or fraudulent behavior of Consultant relating to such Services. No Party, except to the extent finally determined to have resulted from the willful misconduct or fraudulent behavior of Consultant relating to such Services, shall be liable for any lost profits, lost business opportunities, lost data, consequential, special, incidental, exemplary or punitive damages, delays or interruptions arising out of or related to this Agreement even if the other Party has been advised of the possibility of such damages. Any legal proceedings arising from or in conjunction with the Services provided under this Agreement must be commenced within twenty-four (24) months after the delivery of the audit report relating to the Services for which the action is brought, without consideration as to the time of discovery of any claim. Each Party recognizes and agrees that the warranty disclaimers and liability and remedy limitations in this Agreement are material bargained for bases of this Agreement and that they have been taken into account and reflected in determining the consideration to be given by each Party under this Agreement. The terms of this Section 7 shall apply regardless of the nature of any claim asserted (including, but not limited to, contract, tort or any form of negligence, whether of the Village, Consultant or others), but these terms shall not apply to the extent finally determined to be contrary to the applicable law or regulation. These terms shall also continue to apply after any termination of this Agreement. SECTION 8. INSURANCE The Consultant shall comply in all respects with Section 17 of the RFP's General Terms and Conditions, as modified by the Exceptions. SECTION 9. JURISDICTION, VENUE, CHOICE OF LAW This Agreement shall be construed under and governed by the laws of the State of Illinois, and the exclusive jurisdiction and venue for all claims and controversies arising hereunder shall be the Circuit Court of Cook County, Illinois. SECTION 10. ASSIGNMENT This Agreement is personal in character, and the Consultant shall not assign any duties or performance hereunder without the express prior written consent of the Village, which may be withheld in the Village's sole discretion. SECTION 11. MODIFICATION This Agreement may be amended or supplemented only by an instrument in writing executed by both Parties. SECTION 12. NO IMPLIED WAIVERS The failure of either Party at any time to require performance by the other Party of any provision of this Agreement shall not affect in any way the full right to require such performance at any time thereafter, nor shall the waiver of either Party of a breach of any provision of this Agreement be taken or held to be a waiver of the provision itself. SECTION 13. SEVERABILITY If any part of this Agreement shall be determined by a court of competent jurisdiction to be invalid for any reason, the remainder of this Agreement shall be valid to the fullest extent permitted by law. SECTION 14. CONFIDENTIALITY Consultant understands that it may receive or gain access to information that is confidential or highly sensitive in nature and acknowledges that such information will be used only for the purpose of fulfilling its obligations under the Agreement. Confidential information shall include, without limitation: A. All information that concerns the business affairs of the Village including, without limitation, financial information, and all other data, records, and proprietary information involving the Village's business operations; and B. Any other information reasonably identified by the Village as confidential; provided however that confidential information shall not include the following: i. Information known by, or generally available to the public at large through no breach by Consultant of this Agreement; ii. Any information given to Consultant by a third party without continuing restrictions on its use; iii. Information disclosed by Consultant with the Village's written approval; iv. Information required to be disclosed by; regulations or professional standards governing the Services performed; and V. Information required to be disclosed by law. SECTION 15. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an original with the same effect as if the signatures thereto were on the same instrument. SECTION 16. NOTICES Any notices required to be given by either Party to the other under this Agreement shall be in writing, and all such notices shall be made either (a) by personal delivery; (b) by a recognized courier service, such as Federal Express or UPS, or (c) by United States certified mail, postage prepaid addressed to the Village or Provider, respectively, at the following addresses, or at such other place as the Village or Provider may from time to time designate in writing. Notice will be effective upon receipt if delivered personally, on the date signed for if delivered by courier service, or the earlier of actual receipt or three (3) days after deposit in the U.S. mail if by mailing. If to the Village: The Village of Deerfield 850 Waukegan Rd. Deerfield, IL 60015 Attn: Finance Dept. If to the Consultant: Baker Tilly Virchow Krause, LLP Attn: Joseph M. Lightcap 1301 W 22nd Street, Suite 400 Oak Brook, Illinois 60523 With a cony to: Matthew D. Rose Rosenthal, Murphey, Coblentz & Donahue 30 N. La Salle St., Suite 1624 Chicago, Illinois 60602 With a copy. to: Baker Tilly Virchow Krause, LLP 205 North Michigan Avenue Chicago, IL 60601 Attn: Office of the General Counsel [Signature page follows.] IN WITNESS WHEREOF, the undersigned have caused this Audit Services Agreement to be executed in their respective names on the dates hereinafter enumerated. THE VILLAGE OF DEERFIELD Harriet Rosenthal Village President Village of Deerfield 1z(-2e9i� Date BAKER TILLY VIRCHOW KRAUSE, LLP 'Joseph M. Lightcap Partner Date ///2-/IS- 8 EXHIBIT A The RFP RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 1 REQUEST FOR PROPOSALS RFP # 217019 PROPOSAL DOCUMENTS AND SPECIFICATIONS PROFESSIONAL AUDITING SERVICES OF FINANCIAL STATEMENTS FOR THE MUNICIPALITIES OF: DEERFIELD, GLENVIEW, AND HIGHLAND PARK VILLAGE OF GLENVIEW PURCHASING 2500 EAST LAKE AVENUE GLENVIEW, IL 60026 (847) 724-1700 RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 2 LEGAL NOTICE Official notice is hereby given that sealed proposals will be received in the Office of the Purchasing Analyst, Glenview Village Hall, at 2500 East Lake Avenue, Glenview, IL 60026 until 2:00 p.m. local time on August 2, 2017, for the following: RFP NO: 217019 RFP ON: PROFESSIONAL AUDITING SERVICES OF FINANCIAL STATEMENTS FOR THE MUNICIPALITIES OF: GLENVIEW, HIGHLAND PARK AND DEERFIELD A NON-MANDATORY PRE-SUBMISSION MEETING WILL BE HELD on July 18, 2017 AT 1:00 P.M. at the Village of Glenview Board Room, 2500 E. Lake Avenue, Glenview, IL 60026. Scope of work includes audit services in accordance with generally accepted auditing standards. Specifications may be obtained at Administrative Services Department, Glenview Village Hall, 2500 East Lake Avenue, Glenview, Illinois, 60026 or by calling (847) 724-1700. Offers may not be withdrawn for a period of one hundred twenty (120) days after closing date without the consent of the Municipalities. Any proposal submitted unsealed, unsigned, fax transmissions or received subsequent to the aforementioned date and time, shall be disqualified and returned to the bidder. The Municipalities reserve the right to reject any and all proposals or parts thereof, to waive any irregularities or informalities in procedures and to award the agreement(s) in a manner best serving the interest of the Municipalities. Dated: 7/6/2017 Hannah Bresson Purchasing Analyst RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 3 TABLE OF CONTENTS Village of Glenview Pricing Sheet ............................................................................................ 4 City of Highland Park Pricing Sheet ......................................................................................... 5 Village of Deerfield Price Sheet ................................................................................................ 6 Instruction for Submission of Proposal ................................................................................... 7 General Terms and Conditions ................................................................................................. 9 Calendar of Events ................................................................................................................... 12 Special Provisions .................................................................................................................... 18 Required Forms ........................................................................................................................ 37 RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 4 SUBMISSION INFORMATION Village of Glenview Administrative Services Department 2500 East Lake Avenue DUE DATE: August 2, 2017 Glenview, IL 60026 TIME: 2:00 P.M. Local Time LOCATION: Village of Glenview REQUEST FOR PROPOSALS INFORMATION Company Name: ____________________________________ Address: __________________________________________ City, State, Zip Code: ________________________________ Contact Person: _________________________________________ PROFESSIONAL AUDITING SERVICES per the specifications identified herein Submit 1 original, 3 copies & 1 electronic copy (electronic copy can be a flash drive, CD or DVD – no e-mail) VILLAGE OF GLENVIEW – PRICING SHEET AUDIT SERVICES – ANNUAL NOT TO EXCEED AMOUNT Fiscal Year Ending 12.31.2017 12.31.2018 12.31.2019 12.31.2020 12.31.2021 Financial Statements (CAFR) $ $ $ $ $ Single Audit (if required) $ $ $ $ $ Annual Report for the State of Illinois Comptroller $ $ $ $ $ The Glen TIF Compliance Report $ $ $ $ $ Waukegan-Golf TIF Compliance Report $ $ $ $ $ TOTAL PROPOSAL PRICE $ $ $ $ $ RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 5 SUBMISSION INFORMATION City of Highland Park 1707 St. Johns Avenue Highland Park, IL 60035 DUE DATE: August 2, 2017 TIME: 2:00 P.M. Local Time LOCATION: Village of Glenview REQUEST FOR PROPOSALS INFORMATION Company Name: ____________________________________ Address: __________________________________________ City, State, Zip Code: ________________________________ Contact Person: _________________________________________ PROFESSIONAL AUDITING SERVICES per the specifications identified herein Submit 1 original, 3 copies & 1 electronic copy (electronic copy can be a flash drive, CD or DVD – no e-mail) CITY OF HIGHLAND PARK – PRICING SHEET AUDIT SERVICES – ANNUAL NOT TO EXCEED AMOUNT Fiscal Year Ending 12.31.2017 12.31.2018 12.31.2019 12.31.2020 12.31.2021 Financial Statements (CAFR) $ $ $ $ $ Single Audit (if required) $ $ $ $ $ Annual Report for the State of Illinois Comptroller $ $ $ $ $ Ravinia TIF Compliance Report $ $ $ $ $ Ancillary Services Item (a) (see pg. 31) $ $ $ $ $ TOTAL PROPOSAL PRICE $ $ $ $ $ RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 6 SUBMISSION INFORMATION Village of Deerfield 850 Waukegan Road DUE DATE: August 2, 2017 Deerfield, IL 60015 TIME: 2:00 pm LOCATION: Village of Glenview REQUEST FOR PROPOSALS INFORMATION Company Name: ____________________________________ Address: __________________________________________ City, State, Zip Code: ________________________________ Contact Person: _________________________________________ PROFESSIONAL AUDITING SERVICES per the specifications identified herein Submit 1 original, 3 copies & 1 electronic copy (electronic copy can be a flash drive, CD or DVD – no e-mail) VILLAGE OF DEERFIELD – PRICING SHEET AUDIT SERVICES – ANNUAL NOT TO EXCEED AMOUNT Fiscal Year Ending 12.31.2017 12.31.2018 12.31.2019 12.31.2020 12.31.2021 Financial Statements (CAFR) $ $ $ $ $ Single Audit (if required) $ $ $ $ $ Annual Report for the State of Illinois Comptroller (if prepared) $ $ $ $ $ Deerfield Public Library Audit $ $ $ $ $ TOTAL PROPOSAL PRICE $ $ $ $ $ RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 7 INSTRUCTIONS FOR SUBMISSION OF PROPOSAL JULY 2017 1. GENERAL A. Definition: The Request for Proposals (RFP) process is a method of procurement permitting discussions with responsible bidders and revisions to proposals prior to award of an agreement. Proposals will be opened and evaluated in private. Award will be based on the criteria set forth herein. B. Examination of Documents: Prior to submitting a proposal, bidders are advised to carefully examine the project scope and work tasks to be accomplished, specifications, insurance requirements and required affidavits; becoming thoroughly familiar with all conditions, instructions and specifications governing this proposal. If a bidder’s proposal is accepted, they shall be responsible for, and the Municipality will make no allowance for, any errors in the bidder’s proposal resulting from failure or neglect to comply with these instructions. C. Form of Proposal: Proposals shall be made in accordance with these instructions. Proposals shall be submitted on the forms provided herein by the Municipality. Additional information, as requested by the Municipalities, shall be submitted in accordance with instructions contained within these documents. Failure to execute proposals as required may be, at the sole discretion of the Municipality, a cause for rejection. D. Execution of Proposal; Proposals shall be signed by an authorized officer or Manager of the bidder. If the bidder is a corporation, the proposal shall bear the name of the corporation, and be signed by the president and secretary of the corporation. Should the proposal be signed by an officer(s) other than the president and secretary of the corporation, the proposal must be accompanied by an affidavit authorizing such officer(s) to bind the corporation. E. Incurred Costs: The Municipalities will not be liable in any way for any costs incurred by respondents in replying to this Request for Proposal. 2. SUBMISSION OF PROPOSAL All proposals shall be submitted in a sealed envelope to the office of the Purchasing Analyst, Village of Glenview, Administrative Services Department, 2500 East Lake Avenue, Glenview, Illinois, 60026, by the specified closing time for receipt of the proposals. The sealed envelope shall carry the following information on the face: bidder’s name, address, subject matter of the proposal, proposal number, and date and hour designated for the closing of receipt of proposals as shown in the notice. Where proposals are sent by mail or courier service, the bidder shall be responsible for their delivery to the Purchasing Analyst prior to the designated date and hour for opening. If delivery is delayed beyond the date and hour set for the opening, proposals thus delayed will not be considered and will be returned unopened. Proposals transmitted by facsimile (fax) or e-mail will not be accepted. No responsibility will be attached to the Purchasing Analyst or the Village of Glenview for the premature opening or non-opening of a proposal not properly addressed and identified in accordance with these instructions, except as otherwise provided by law. 3. WITHDRAWAL OF PROPOSAL Proposals may be withdrawn prior to the time designated for the closing of receipt of proposals by written request. However, no offer shall be withdrawn within the one hundred twenty (120) calendar day period after the time set for the closing. Bidders withdrawing their proposal prior to the time and date set for closing of receipt of proposals may still submit another proposal if done in accordance with these instructions. 4. CONFIDENTIALITY Consideration will be given to requests to maintain confidentiality for certain proprietary or confidential information provided in a proposal. If the bidder desires to maintain confidentiality for specific information, the pages RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 8 containing the information should be clearly marked on the proposal as “Proprietary and Confidential.” In no event should all pages of the proposal be so marked. The proposal should include a separate written request clearly evidencing the need for confidentiality. The Village of Glenview Purchasing Analyst shall examine the proposals to determine the validity of any written requests for nondisclosure of trade secrets and other proprietary data identified. After award of the agreement, all responses, documents, and materials submitted by the bidder pertaining to this RFP will be considered public information and will be made available for inspection, unless otherwise determined by the Village of Glenview Purchasing Analyst. All data, documentation and innovations developed as a result of these contractual services shall become the property of the Municipality. Based upon the public nature of these RFP’s, a bidder must inform the Municipalities, in writing, of the exact materials in the offer that the bidder believes should not be made a part of the public record in accordance with the Illinois Freedom of Information Act. 5. RESPONSIBILITY OF OFFEROR No agreement will be awarded to any person, firm or corporation that is in whole or in part, in an unsatisfactory manner, in any agreement with a respective Municipality, or who is a defaulter as to surety or otherwise upon any obligation to the Municipalities. 6. EXCEPTIONS TO SPECIFICATIONS Any exceptions to these specifications shall be listed and fully explained on a separate page entitled "Exceptions to Specifications", prepared by the bidder on its firm's letterhead, to be attached to and submitted with these documents at the time of submission of the proposal. Each exception must refer to the page number and paragraph to which it pertains. The nature of each exception shall be fully explained. Bidders are cautioned that any exceptions to these specifications may be cause for rejection of the proposal. Should a bidder submit a proposal where any exception is not clearly marked, described and explained, the Municipalities will consider the proposal to be in strict compliance with these specifications. If then awarded an agreement, the successful bidder shall comply with all requirements in accordance with these specifications. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 9 GENERAL TERMS AND CONDITIONS JULY 2017 1. INTENT It is the intent of the Village of Deerfield, (“Deerfield”), Village of Glenview, (“Glenview”), the City of Highland Park, (“Highland Park”), and the (collectively, the “Municipalities”), to enter into an agreement with reputable firm(s) (“Consultant”) to audit financial statements for the fiscal years identified herein. Through this joint proposal process, the Municipalities are collectively releasing this single RFP document. This is an efficient approach for communities to obtain similar services. The Village of Glenview is coordinating the initial phase of the proposal process on behalf of the Municipalities identified herein. Each City or Village’s municipal manager/administrator or board of trustees/city council, as the case may be, will have the right to review and independently take action on the proposals submitted and execute an agreement. Within each agreement, the selected consultant will be required to provide audit services in accordance with generally accepted auditing standards, promulgated by the American Institute of Certified Public Accountants (AICPA), and Government Auditing Standards (1994) issued by the Comptroller General of the United States. The audit must be conducted in accordance with the Federal Single Audit Act of 1984 (as amended in 1996), and the Office of Management and Budget (OMB) Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” as implemented by DOL regulations at 29 CFR part 97. 2. PROPOSAL PRICE Please provide an audit fee for the years outlined on each individual pricing sheets. Audit pricing for Deerfield, Glenview, and Highland Park will include the fiscal years ending December 31st. Additionally, each Municipality requests pricing for additional Professional Services that may include but is not necessarily applicable to all communities. Therefore, you are encouraged to review carefully the proposal pricing sheets for each Municipality. Each bidder shall submit a proposal using the forms and pricing sheets provided herein. 3. TERM OF AGREEMENT The term of this Agreement shall be five (5) years. The Municipality reserves the right to renew their agreement for five (25 additional years, subject to acceptable performance by the Consultant. At the end of the initial or renewal term, the Municipality reserves the right to extend this agreement for a period of up to ninety (90) days for the purpose of getting a new agreement in place. For any term beyond the initial term, this agreement is contingent on the appropriation of sufficient funds; no charges shall be assessed for failure of the Municipalities to appropriate funds in future contract years. 4. AWARD The decision to award shall be made by each Municipality. Award shall be made to the consultant who is deemed by each municipality to be the most advantageous and who is best qualified to perform in accordance with the terms and conditions of the agreement. Each Municipality will apply the evaluation criteria specified herein. Following the initial review of proposals, each Municipality may request their short-listed respondents to make presentations to its municipality in order to clarify or verify the proposal and to develop a comprehensive assessment of the proposal. Presentations are at the option of each Municipality and may not be conducted. Bidders are therefore, encouraged to initially present as complete a proposal as possible. The Municipalities reserve the right to award in part or in whole, not to award any portion of the proposal, and to award to multiple consultants whatever is deemed to be in the best interest of the Municipalities. 5. BIDDER QUALIFICATIONS AND EVALUATION CRITERIA All bidders must be qualified consultants and demonstrate the capability to provide services required in accordance with the specifications. Proposals shall be evaluated using three sets of criteria identified below. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 10 Firms meeting the mandatory criteria will have their proposals evaluated for both technical qualifications and price. The following represent the principal selection criteria that will be considered during the evaluation process (not listed in order of priority): A. Mandatory Elements  The audit firm is an independent firm  Licensed to practice in Illinois  Proposed fees for audit services  Experience of the firm with Municipality audit services  Experience of the partner (s) and senior team members proposed  Professional personnel have received adequate continuing professional education within the preceding three (3) years pertinent to the audit of governmental agencies  Commitment to audit team continuity  Date of last peer or quality review. State whether or not it was an unmodified report;  Can document quality audit work  Compliance with specifications  Provide a link to a sample CAFR prepared by bidder B. Technical Qualifications  Expertise and experience o Past experience and performance on comparable government engagements (complete reference sheet included herein) o Professional Personnel to be assigned to the engagement and the quality of the firm’s management support personnel to be available for technical consultation o Single audit experience o Government Finance Officers Association (“GFOA”) Certificate of Achievement for Excellence in Financial Reporting experience C. Audit Approach  Adequacy of proposed staffing plan for various segments of the engagement  Adequacy of sampling techniques  Adequacy of analytical procedures 6. PROPOSAL SUBMITTAL REQUIREMENTS The following material is required to be submitted for a bidder to be considered: A. One (1) original unbound, one (1) electronic (USB or compact disc) copy and three (3) bound copy of the proposal shall be submitted and shall include the following: 1. Title Page - the title page shall show the request for proposal’s subject; the firm's name and address; the name and telephone number of a contact person; and the date of the proposal. 2. Table of Contents 3. Transmittal Letter - a signed letter of transmittal briefly stating the bidder's understanding of the work to be done, the commitment to perform the work within the agreed upon time table, a statement why the firm believes itself to be the best qualified firm to perform the engagement and a statement that the proposal is a firm and irrevocable offer for one hundred twenty (120) days. 4. Detailed Technical Proposal - the detailed technical proposal should follow the order set forth in each Municipality’s section of this request for proposals. 5. Fee Proposal - the proposed fees should be presented using the proposal sheets provided herein. The proposed fees shall be the maximum, not to exceed fee for each fiscal year on the form provided herein. 6. Certification of Compliance Forms – The following forms shall be included in the submittal documentation: i. Pricing Sheet – Please use the proposal sheets included in this document when submitting pricing RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 11 information. Failure to submit pricing using the proposal sheets provided herein may result in a reduction in evaluation scoring. ii. References – The reference page shall be completed for the firm and submitted with the proposal. iii. Resumes – Please provide resumes of proposed staff that would likely be assigned to the Municipalities, including references. iv. Sample CAFR – A link to a sample CAFR prepared by bidder must be included in the proposal. v. Other affidavits as identified herein The bidder shall submit a link to a sample CAFR from a recent engagement of a governmental agency in which the firm prepared, edited and assembled the report. This report shall be compliant with all recently enacted GASB pronouncements and have been awarded the GFOA Certificate of Achievement for Excellence in Financial Reporting. 7. FIRM QUALIFICATIONS, EXPERIENCE & REFERENCES Please provide references of at least 5 current clients similar in scope to the Municipalities and/or other governmental references for your firm. Additionally, the proposal shall identify 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 , the number and nature of the professional staff to be employed in this engagement on a full-time basis and the number and nature of the staff to be so employed on a part-time basis. The 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 engagements. The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past five (5) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past five (5) years with state regulatory bodies or professional organizations. The proposal should identify and describe any pending or previous litigation the firm was involved in over the past five (5) years which dealt with the quality of audit work or of pricing of auditing services rendered. A. Partner, Supervisory and Staff Qualifications and Experience The firm should identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a certified public accountant in the State of Illinois. The firm also should provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past five (5) years and membership in professional organizations relevant to the performance of this audit. Additionally, the firm should provide resumes of key professional personnel [including the individual(s) who will assume the day-to-day responsibilities of managing and supporting this audit service] assigned to this specific engagement, indicating their experience with similar engagements. In addition, any relevant continuing educations programs should be listed. Substitutions for the above lis ted individuals after an agreement has been signed will be allowed only when the substitutes have substantially the same qualifications, or better, than the person they replace. No substitutions shall be accepted unless the affected Municipality grants prior written approval. Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the Municipality. However, in either case, the respective municipality retains the right to approve or reject replacements. The Partner and Manager (or “Lead”) mentioned in response to this request for proposals can only be changed with the express prior written permission of the respective municipality, which retains the right to approve or reject replacements. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 12 Other audit personnel may be changed at the discretion of the bidder provided that replacements have substantially the same or better qualifications or experience. 8. CALENDAR OF EVENTS (Tentative and subject to change) DATE ACTIVITY Thursday, July 6, 2017 Proposal sent to potential Suppliers and advertised in the Pioneer Press. Please confirm that you have received via email to Hannah Bresson at hbresson@glenview.il.us. Tuesday, July 18, 2017 1:00 p.m. PRE-PROPOSAL MEETING, VILLAGE OF GLENVIEW VILLAGE HALL, RUGEN COMMUNITY ROOM, 2500 EAST LAKE AVENUE, GLENVIEW, IL 60026 Friday, July 21, 2017 4:00 p.m. Last day to submit questions and requests for clarification. Wednesday, August 2, 2017 2:00 p.m. Deadline for RFP Submission. Proposals received after the date and time identified will be returned unopened One (1) original (clearly identified), three (3) copies, and one electronic copy of the complete/signed proposal by August 2, 2017 before 2:00 p.m. CST, to: Hannah Bresson Purchasing Analyst Village of Glenview 2500 East Lake Avenue Glenview, IL 60026 RFP #217019 RFP ON: Audit Services August, 2017 Evaluation of proposals received September, 2017 Recommendation made to the Glenview Board of Trustees September, 2017 Recommendation made to the Highland Park City Council September, 2017 Recommendation made to the Deerfield Board of Trustees 9. ADDITIONAL INFORMATION Should the bidder require additional information about this request for proposal, submit questions via email to: hbresson@glenview.il.us. Questions are required no later than 4:00 P.M. on July 21, 2017. ANY and ALL changes to these specifications are valid only if they are included by written addendum. No interpretation of the meaning of the scope of work will be made orally. Failure of any bidder to receive any such addendum or interpretation shall not relieve the bidder from obligation under this proposal as submitted. All addenda so issued shall become part of the proposal documents. Failure to request an interpretation constitutes a waiver to later claim that ambiguities or misunderstandings caused a bidder to improperly submit a proposal. The Municipalities recognize that in some cases the information conveyed in this RFP may provide an insufficient basis for performing a complete analysis of the RFP requirements. Prospective bidders are therefore requested to make the best possible use of the information provided, without the expectation that the Municipalities will be able to answer every request for further information, or that the schedule for receipt and evaluation of proposals will be modified to accommodate such request. 10. RESERVATION OF RIGHTS Each Municipality identified herein reserves the right to accept a bidder’s proposal that is, in its judgment, the best and most favorable to the interests of that Municipality and of its residents; to accept any item (s) of a bidder’s proposal; to reject, any portion or all of a bidder’s proposals; to accept and incorporate corrections, clarifications or modifications following the opening of the bidder’s proposals when to do so would not, in each Municipality’s opinion, prejudice the proposal process or create any improper advantage to any bidder; and to waive irregularities and informalities in the proposal process or in any bidder’s proposal submitted; provided, however, that the waiver of any prior defect or informality shall not be considered a waiver of any future or RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 13 similar defects or informalities, and bidders should not rely upon, or anticipate, such waivers in submitting the bidder’s proposals. The enforcement of this Reservation of Rights by one or more of the Municipalities shall not be considered an alteration of the proposal. 11. DOCUMENT OBTAINED FROM OTHER SOURCES The Village of Glenview is the only official source for proposal packages and supporting materials. Registration with the Village of Glenview is the only way to ensure bidders receive all addenda and other notices concerning this project. The Village of Glenview cannot ensure that bidders who obtain proposal packages from sources other than the Village of Glenview will receive addenda and other notices. All bidders are advised that proposals that do not conform to the requirements of this proposal package, including compliance with and attachment of all addenda and other notices, may, at the Municipalities’ discretion, be rejected as non-responsive and/or their proposal disqualified. In such cases, the Village of Glenview will NOT re-release the project absent extraordinary circumstances. 12. CONTACT WITH MUNICIPAL PERSONNEL All bidders are prohibited from making any contact with the respective Municipalities’ Presidents/Mayors, Trustees, or any other official or employee of the Municipalities (collectively, “Municipal Personnel”) with regard to the request for proposals, other than in the manner and to the person(s) designated herein. The respective City/Village Manager or Administrator reserves the right to disqualify any bidder found to have contacted Municipal Personnel in any manner with regard to the request for proposals. Additionally, if the Manager or Administrator determines that the contact with Municipal Personnel was in violation of any provision of 720 ILCS 5/33E, the matter will be turned over to the Cook County or Lake County State’s Attorney for review and prosecution. 13. DISCLOSURE OF POTENTIAL OR ACTUAL CONFLICT OF INTEREST Each Municipality’s Code of Ethics prohibits public officials or employees from performing or participating in an official act or action with regard to a transaction in which he has or knows he will thereafter acquire an interest for profit, without full public disclosure of such interest. This disclosure requirement extends to the spouse, children and grandchildren, and their spouses, parents and the parents of a spouse, and brothers and sisters and their spouses. To ensure full and fair consideration of all proposals, the Municipalities require all bidders including owners or employees to investigate whether a potential or actual conflict of interest exists between the bidder and any Municipality, their officials, and/or employees. If the bidder discovers a potential or actual conflict of interest, the bidder must disclose the conflict of interest in its proposal, identifying the name of the municipal official or employee with whom the conflict may exist, the nature of the conflict of interest, and any other relevant information. The existence of a potential or actual conflict of interest does NOT, on its own, disqualify the disclosing bidder from consideration. Information provided by the bidder in this regard will allow the Municipality to take appropriate measures to ensure the fairness of the proposal process. The Village of Glenview requires all bidders to submit a certification, enclosed with this proposal packet, indicating that the bidder has conducted the appropriate investigation and disclosed all potential or actual conflicts of interest. By submitting a proposal, all bidders acknowledge and accept that if any Municipality discovers an undisclosed potential or actual conflict of interest, that Municipality may disqualify the bidder and/or refer the matter to the appropriate authorities for investigation and prosecution. 14. SILENCE OF SPECIFICATIONS The apparent silence of specifications as to any detail or apparent omission from a detailed description concerning any portion of this request for proposals shall be interpreted as meaning that only the best practice shall prevail. The proposed auditing fees shall include the implementation of all current and foreseeable Governmental Accounting Standards Board (GASB) pronouncements and Statement on Auditing Standards (SASs). 15. RESPONSIVE PROPOSAL 15.1 A "Responsive Proposal" is defined as a "proposal which conforms in all material respects to the requirements set forth in the request for proposals." Bidders are hereby notified that any exceptions to the requirements of this proposal may be cause for rejection of the proposal. 15.2 Bidders shall promptly notify the Village of Glenview of any ambiguity, inconsistency or error which they RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 14 may discover upon examination of the proposal documents. Interpretations, corrections and changes will be made by addendum. Each bidder shall ascertain prior to submitting a proposal that all addenda have been received and acknowledged in the proposal. 16. MODIFICATIONS Bidders shall be allowed to modify/withdraw their proposal prior to due date. Once proposals have been received and opened they cannot be changed or withdrawn unless requested in writing and approved by the respective Municipality. 17. INSURANCE The Consultant shall maintain for the duration of the agreement, insurance purchased from a company or companies lawfully authorized to do business in the state of Illinois and having a rating of at least A-minus as rated by A.M. Best Ratings. Such insurance will protect the Consultant from claims set forth below which may arise out of or result from the Consultant’s operations under the agreement and for which the Consultant may be legally liable, whether such operations be by the Consultant or by a Subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable: 17.1 Worker’s Compensation Insurance covering all liability of the Consultant arising under the Workers’ Compensation Act and Occupational Diseases Act; limits of liability not less than statutory requirements. 17.2 Employers Liability covering all liability of contractor as employer, with limits not less than: $1,000,000 per injury – per occurrence; $500,000 per disease – per employee; and $1,000,000 per disease – policy limit. 17.3 Comprehensive General Liability in a broad form on an occurrence basis, to include but not be limited to, coverage for the following where exposure exists; Premises/Operations, Contractual Liability, Products/Completed Operations for 2 years following final payment, Independent Contractor’s coverage to respond to claims for damages because of bodily injury, sickness or disease, or death of any person other than the Consultants employees as well as claims for damages insured by usual personal injury liability coverage which are sustained (1) by a person as a result of an offense directly or indirectly related to employment of such person by the consultant, or (2) by another person and claims for damages, other than to the Work itself, because of injury to or destruction of tangible property, including loss of use there from; Broad Form Property Damage Endorsement; General Aggregate Limit $ 2,000,000 Each Occurrence Limit $ 1,000,000 17.4 Professional Liability Insurance shall be maintained to respond to claims for damages due to the Consultant’s errors and omissions. Errors and Omissions $2,000,000 17.5 Crime Insurance shall be maintained to respond to claims for damages due to the Consultant’s employee theft, dishonesty, or other crime. Crime $5,000,000 17.6 Consultant agrees that with respect to the above required insurance: 17.6.1 The CGL policy shall be endorsed for the general aggregate to apply on an annual basis; 17.6.2 To provide separate endorsements: to name each Municipality as additional insured as their interest may appear, and; to provide thirty (30) days’ notice, in writing, of cancellation or material change. 17.6.3 The Consultant’s insurance shall be primary in the event of a claim. 17.6.4 The Village of Deerfield, the Village of Glenview, and the City of Highland Park shall be provided with Certificates of Insurance and endorsements evidencing the above required insurance, prior to commencement of an agreement and thereafter with certificates evidencing renewals or replacements of said policies of insurance at least thirty (30) days prior to the expiration of cancellation of any such policies. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 15 17.6.5 A Certificate of Insurance that states the respective Municipality has been endorsed as an “additional insured” by the Consultant’s insurance carrier. Specifically, this Certificate must include the following language: “The (Municipality’s name inserted), and their respective elected and appointed officials, employees, agents, consultants, attorneys and representatives, are, and have been endorsed, as an additional insured under the above reference policy number_________ on a primary and non-contributory basis for general liability and automobile liability coverage for the duration of the contract term.” 17.7 Failure to Comply: In the event the Consultant fails to obtain or maintain any insurance coverages required under this agreement, the Municipality may purchase such insurance coverages and charge the expense thereof to the Consultant. 18. HOLD HARMLESS The Consultant agrees to indemnify, save harmless and defend the Village of Deerfield, the Village of Glenview, and the City of Highland Park, and their respective elected and appointed officials, employees, agents, consultants, attorneys and representatives and each of them against and hold it and them harmless from any and all lawsuits, claims, injuries, demands, liabilities, losses, and expenses; including court costs and attorney’s fees for or on account of any injury to any person, or any death at any time resulting from such injury, or any damage to property, which may arise or which may be alleged to have arisen out of, or in connection with the work covered by this project. The foregoing indemnity shall apply except if such injury is caused directly by the willful and wanton conduct of the Village of Deerfield, the Village of Glenview, and the City of Highland Park its agents, servants, or employees or any other person indemnified hereafter. The obligations of the Consultant under this provision shall not be limited by the limits of any applicable insurance required of the Consultant. 19. CHANGE IN STATUS The Consultant shall notify each Municipality immediately of any change in its status resulting from any of the following: (a) consultant is acquired by another party; (b) change in greater than 5% ownership interest; (c) consultant becomes insolvent; (d) consultant, voluntarily or by operation law, becomes subject to the provisions of any chapter of the Bankruptcy Act; (d) consultant ceases to conduct its operations in normal course of business. The Municipalities shall have the option to terminate its agreement with the consultant immediately on written notice based on any such change in status. 20. SUBCONTRACTORS Subcontracting during the initial and subsequent terms of the agreement is prohibited. 21. INVOICES AND PAYMENTS The Consultant shall submit invoices to each Municipality detailing the services provided directly to the respective Municipality. The Municipality shall only pay for services rendered. Additional services may be added based on the needs of the Municipality with prior written approval. Payment shall be made in accordance with the Local Government Prompt Payment Act. Invoices shall be delivered to: Village of Deerfield Village of Glenview City of Highland Park Director of Finance Director of Administrative Services Finance Director 850 Waukegan Road 2500 East Lake Avenue 1707 St. Johns Avenue Deerfield, IL 60015 Glenview, IL 60026 Highland Park, IL 60035 22. PRECEDENCE Where there appears to be variances or conflicts, the following order of precedence shall prevail: Each individual Municipalit y’s Scope of Work as stated; The Request for Proposals Terms and Conditions (including Special), and the Consultant’s Proposal Response. 23. JURISDICTION, VENUE, CHOICE OF LAW Each agreement shall be governed by and construed according to the laws of the State of Illinois. Jurisdiction and venue shall be exclusively found in the Circuit Court of Cook County, State of Illinois and the 19th Judicial Circuit Court of Lake County. 24. NON-ENFORCEMENT BY THE MUNICIPALITIES RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 16 The Consultant shall not be excused from complying with any of the requirements of the agreement because of any failure on the part of the Municipality, on any one or more occasions, to insist on the consultant’s performance or to seek the Consultant’s compliance with any one or more of said terms or conditions. 25. INDEPENDENT CONTRACTOR The consultant is an independent contractor and no employee or agent of the consultant shall be deemed for any reason to be an employee or agent of the Municipalities. 26. TERMINATION Each Municipality reserves the right to terminate their respective portion of their agreement, or any part thereof, upon thirty (30) days written notice. In case of such termination, the consultant shall be entitled to receive payment from the terminating Municipality for work completed to date in accordance with the terms and conditions of their agreement. In the event that an agreement is terminated due to consultant’s default, the Municipality shall be entitled to purchase services elsewhere and charge the consultant with any or all losses incurred, including attorney’s fees and expenses. 27. NON APPROPRIATIONS The Municipality’s reserve the right to terminate any part of their respective agreement or to reject proposals, in the event that sufficient funds to complete the agreement are not appropriated by their Municipal Board. 28. PROTEST PROCEDURE Any bidder wishing to file a protest regarding the proposal process may do so by giving written notice to the Village of Glenview Purchasing Analyst within seven calendar days of the closing time and date. This notice should include the title of the requirement, the request for proposal number, the closing date and the nature of the protest. The municipality’s purchasing agent shall decide any disputes concerning a question of fact under this procurement, which is not disposed of by agreement. The decision of the municipality’s purchasing agent or their duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessary to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the consultant shall be afforded an opportunity to be heard and offer evidence in support of his appeal. Pending final decision of a dispute hereunder, the consultant shall proceed diligently with the performance of the agreement and in accordance with the decision of the municipality’s purchasing agent. 29. AFFIDAVITS The following affidavits included in these agreement documents must be executed and submitted with the proposal: A) References B) Disqualification of Certain Bidder C) Affidavit/Anti-collusion D) Conflict of Interest Form E) Tax Compliance 30. PROPERTY OF THE MUNICIPALITY All documents and findings produced as a result of these services shall become the property of the Municipality. 31. EQUAL EMPLOYMENT OPPORTUNITY Consultant shall comply with the Illinois Human Rights Act, 775 ILCS 5/1-101 et. seq., as amended, and any rules and regulations promulgated in accordance therewith, including, but not limited to the Equal Employment Opportunity Clause, Illinois Administrative Code, Title 44, Part 750 (Appendix A), which is incorporated herein by reference. Additionally, the consultant shall comply with any Fair Employment Ordinance that has been adopted by the individual Municipality. 32. AUDIT/ACCESS TO RECORDS A. The consultant shall maintain books, records, documents and other evidence directly pertinent to performance of the work under this agreement consistent with generally accepted accounting standards in accordance with the American Institute of Certified Public Accountants Professional Standards. The consultant shall also maintain the financial information and data used by the consultant in the preparation or RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 17 support of any cost submissions required under this subsection, (Negotiation of contract amendments, change orders) and a copy of the cost summary submitted to the Municipality. The Auditor General, the Municipality, or any government agency or any of their duly authorized representatives shall have access to the books, records, documents, and other evidence for purposes of inspection, audit, and copying. The consultant will provide facilities for such access and inspection. B. Audits conducted pursuant to this provision shall be consistent with generally accepted auditing standards in accordance with the American Institute of Public Accountants Professional Standards. C. The consultant agrees to the disclosure of all information and reports resulting from access to records pursuant to the subsection above. Where the audit concerns a consultant, the auditing agency will afford the consultant an opportunity for an audit exit conference and an opportunity to comment on the pertinent portions of the draft audit report. The final audit report will include the written comments, if any, of the audited parties. D. Records under the subsections above shall be maintained and made available during performance of the work under this agreement and until three years from the date of final audit for the project. In addition, those records which relate to any dispute or litigation or the settlement of claims arising out of such performance, costs or items to which an audit exception has been taken, shall be maintained and made available for three years after the date of resolution of such dispute, appeal, litigation, claim or exception. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 18 SPECIAL TERMS AND CONDITIONS JULY 2017 1. AUDITOR RESPONSIBILITY It shall be the responsibility of the consultant to communicate in a letter to management, 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 organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Consultants shall be required to make an immediate written report of all irregularities and illegal acts of which they become aware and present such report to the party identified by each Municipality upon initiation of the audit. Consultants shall assure themselves that the Municipality has informed them of each of the following: A. The consultant's responsibility under generally accepted auditing standards; B. Significant accounting policies; C. Management judgments and accounting estimates; D. Significant audit adjustments; E. Other information in documents containing audited financial statements; F. Disagreements with management; G. Management consultation with other accountants; H. Major issues discussed with management prior to retention; I. Difficulties encountered in performing the audit. 2. INDEPENDENCE The consultant shall provide an affirmative statement that it is independent of the Municipalities as defined by generally accepted auditing standards. The consultant shall also list and describe the firm's professional relationships involving the Municipalities or any of its agencies, its elected or appointed officials and employees for the past five (5) years, together with a statement explaining why such relationships, if any, do not constitute a conflict of interest relative to performing the proposed audit. In addition, the consultant shall give the Municipality written notice of any professional relationships entered into during the period of this agreement should it be thought to cause a conflict of interest. 3. LICENSE TO PRACTICE IN ILLINOIS An affirmative statement should be included indicating that the consultant and all assigned key professional staff are properly licensed to practice in Illinois. 4. SPECIFIC AUDIT APPROACH The proposal should set forth a work plan, including an explanation of the audit methodology to be followed to perform the services required in Section II of this request for proposal. Bidders will be required to provide the following information on their audit approach: A. Proposed segmentation of the engagement B. Level of staff and number of hours to be assigned to each proposed segment of the engagement C. Sample sizes and the extent to which statistical sampling is to be used in the engagement D. Extent of use of financial software in the engagement E. Type and extent of analytical procedures to be used in the engagement F. Approach to be taken to gain and document an understanding of the Municipality’s internal control structure G. Approach to be taken in determining laws and regulations that will be subject to audit test work H. Approach to be taken in drawing audit samples for purposes of tests of compliance I. Approach to be taken in proposing audit adjustments J. Pending and previous litigation. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 19 5. ALL INCLUSIVE PRICING It shall be understood that annual pricing shall be all-inclusive with no allowances made for any expenses or additional services without the express written consent of the Municipality. This shall include, but is not limited to:  Travel & Lodging  Meal allowances The Consultant shall immediately notify the Municipality in writing when fees exceed the cost of annual services identified herein. The Municipality is under no obligation to reimburse the Consultant for services performed without prior written approval. 6. EDUCATION/CONSULTATION The bidder shall describe in its response education and training that is typically provided at no additional cost, to the Municipality, specifically on the implementation of new GASB pronouncements and SASs. 7. IDENTITY PROTECTION In the event the Municipality engages a consultant to perform an activity involving financial or sensitive information, the Municipality will take the following steps to ensure the consultant performs its activity in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft: a. Require, by agreement or consultant letter, that the consultant has such policies and procedures in place; and b. Require, by agreement or consultant letter, that the consultant reviews the Municipality’s program and report any red flags to the party identified by each municipality upon initiation of the audit. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 20 VILLAGE OF GLENVIEW 2500 East Lake Avenue Glenview, Illinois 60026 RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 21 SPECIAL PROVISIONS – VILLAGE OF GLENVIEW SCOPE OF WORK JULY 2017 I. GENERAL INFORMATION A. DESCRIPTION OF THE VILLAGE The Village of Glenview was incorporated in 1899, and today serves an area of 13.5 square miles with a population of 44,692 at the 2010 Census. The Village is a home-rule Municipality under the 1970 Illinois Constitution, operating under the Council-Manager form of government. The Village Board consists of a Village President and six Trustees. The Village's fiscal year begins on January 1 and ends on December 31. The Village is organized into six departments and has approximately 278 full-time employees. The accounting and financial reporting functions of the Village are centralized. The Village of Glenview provides the following services to its citizens: police and fire protection, street maintenance and construction, flood control, health and human services, water and sewer, building and code enforcement, general administrative functions and contractual support for library services. As of December 31, 2016 the Village of Glenview utilized fund structures in accordance with current governmental account standards and the detail is as follows: During the current fiscal year (FY2017), the Village of Glenview expects to receive the following financial assistance and state revenue sources:  Federal Assistance: Various Capital Projects and Public Works Department related grants.  State Payments: Income Tax, Motor Fuel Tax, Sales and Use Taxes, Municipal Telecommunications Tax, and Personal Property Replacement Tax.  Local Programs: Home Rule Sales Tax, Local Motor Fuel Tax, Hotel/Motel Tax, Ambulance Fees, Utility Franchise Agreement Fees. The Village of Glenview participates in three (3) pension plans. These are the Illinois Municipal Retirement Fund (multi-employer, agent), the Village of Glenview Police Pension Fund (single-employer, defined benefit), and the Village of Glenview Firefighters’ Pension Fund (single-employer, defined benefit). Actuarial services for the Police and Firefighters’ Pension Funds are provided by independent actuaries. The Village of Glenview includes the Police and Firefighters’ Pension Funds in the Village's financial statements. The Glenview Public Library is included as a discrete presentation since it is governed by a separately elected board of trustees. No other legally separate entity qualifies as a component unit of government. The Village of Glenview is a participant in the Solid Waste Agency of Northern Cook County a proprietary joint Operating Funds Corporate Fund Special Revenue Funds Special Tax Allocation Fund Waukegan/ Golf TIF Fund Foreign Fire Tax Fund Police Special Fund Capital Project Funds Capital Projects Fund Glen Capital Projects Fund Motor Fuel Tax Fund Village Permanent Fund Debt Fund Corporate Purpose Bonds Fund Enterprise Funds Glenview Water Fund Glenview Sanitary Sewer Fund Wholesale Water Fund Commuter Parking Fund Internal Service Funds Municipal Equipment Repair Fund Capital Equipment Replacement Fund Insurance and Risk Fund Facility Repair and Replacement Fund Trust and Agency Funds Police Pension Fund Firefighters' Pension Fund Escrow Deposit Fund Special Service Area Bond Fund RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 22 venture. B. ADMINISTRATIVE SERVICES DEPARTMENT The Administrative Services Department is headed by a Village Department Head and has five (5) Divisions including a Finance Division which is headed by a contracted Chief Financial Officer. The Finance Division consists of 7 full time contract staff. The principal functions performed are Financial and Accounting Services Management, Budget, Accounts Payable, Accounts Receivable, Payroll, Debt and Cash Management, Audit and Investment and General Ledger. The Strategic Services Division consists of two full-time staff with one FTE administering the Purchasing activities for the Village. The Resolution Center Division supports Utility Billing. The Village of Glenview is using Tyler Technologies MUNIS software product for maintaining and processing financial data. Specific modules include the general ledger, payroll, human resources, budget requisitions and purchase orders, contract management, fixed assets, utility billing (water and sanitary services) and self- service E-payments, accounts receivable, accounts payable, cash receipts, work orders, inventory, permits and inspections, code enforcement and administrative adjudication, and occupational (business and contractor) licenses. C. FINANCIAL ACTIVITY Following is information on the Village's financial activity: Vendor Checks Issued FY 2016: 6,700 2016 Annual Payroll: Village & Library $32,151,000 Pension Employer Contributions $ 6,644,000 Payroll Checks Issued Annually: 12,500 FY2017 General Fund Budget: $69,547,412 Water Customers: 15,000 Water Bills Issued Annually: 60,000 Investments, as of 1/31/17: $80,237,684 More detailed information on the government and its financial activity can be found in the Village's 2017 Budget and the Comprehensive Annual Financial Report (CAFR) for the Year Ended December 31, 2016. Both of these documents are posted on the Village of Glenview website (www.glenview.il.us) or can be viewed at Village Hall upon request. D. CONTACTS 1.1 Principal Contact: Amy L. Ahner Director of Administrative Services 2500 East Lake Avenue Glenview, IL 60026 1.2 Contracting Authority: Hannah Bresson Purchasing Analyst (847) 904-4444 hbresson@glenview.il.us 1.3 Coordination of Audit: Maggie Bosley Finance Director 2500 East Lake Avenue Glenview, IL 60026 RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 23 II. NATURE OF SERVICES REQUIRED A. SCOPE OF WORK TO BE PERFORMED 1. The Village of Glenview is requesting an audit which includes all the funds, accounts, capital assets, long term debt and activities of the Village of Glenview, including its component unit, the Village of Glenview Public Library. 2. The Village of Glenview desires the auditor to express an opinion on the fair presentation of the financial position of the governmental activities, the business-type activities, and the fiduciary funds, as well as the Village of Glenview’s discretely presented component unit in conformity with accounting principles generally accepted in the United States of America. The auditor will issue an “in relation to” opinion on the Village of Glenview’s combining and individual fund statements and schedules. The auditor is not required to audit the introductory or statistical information sections of the CAFR. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. 3. The auditor shall prepare, edit and produce all sections of the CAFR of the Village each year based on financial and other information provided by the Village of Glenview. This shall include GASB 34 conversion statements as well as all financial statement related schedules in the statistical section. The Village of Glenview shall be responsible for and provide to the auditor for inclusion in the final document the Transmittal Letter, MD&A and the non-financial statement sections. 4. The auditor is responsible for the compilation of the State of Illinois Annual Financial Report for the Village. This shall include preparation of the Annual Financial Report and electronically filing the report with the Comptroller of the State of Illinois. 5. The auditor is responsible for expressing an opinion on management’s assertion that the Village of Glenview complied with the requirements of the Economic Development Project Area Tax Increment Act of 1995 (Illinois Public Act 89-176 of 1995, approved July 19, 1995, effective January 1, 1996), (65 ILCS 10/1, et. Seq.) for both The Glen Redevelopment and the Waukegan/Golf TIFs. 6. As a recipient of Federal financial assistance, the Village may be required to have an audit performed in accordance with OMB Circular A-133 (Single Audit Act). If such audit is required, the auditing firm will be required to prepare a report in accordance with this Act and electronically submit the certified Data Collection Form. This item will be priced separately in the proposal. B. REPORTING Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue the following reports: 1. Twenty-five (25) bound copies and one (1) unbound copy of the CAFR. The auditor will prepare all financial statements and notes to the financial statements. The auditor will assist in preparation of the statistical section of the CAFR and will prepare appropriate schedules. The Village of Glenview will provide covers, binders, and dividers for the CAFR. The auditor will furnish the Village with a bookmarked PDF copy of the CAFR to be incorporated into the Village website. 2. Two (2) copies and the electronic filing of the Illinois Comptroller’s Annual Financial Report for the Village of Glenview. 3. A letter to management containing appropriate suggestions for improvement of accounting procedures and internal controls for the Village’s consideration. This letter should contain comments and recommendations for controlling any internal weaknesses discovered and shall be reviewed by the Chief Financial Officer (CFO) before finalizing. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 24 4. A report on the fair presentation of the financial statements of Tax Increment Financing Districts in conformity with generally accepted accounting principles and compliance with the Economic Development Project Area Tax Increment Act of 1995. 5. Ten (10) copies of a report on the financial statements, internal control and compliance in accordance with the audit guide and standards for compliance with the Single Audit Act, as may be required. C. SPECIAL CONSIDERATIONS 1. The Village of Glenview will send its comprehensive annual financial report to the GFOA for review in its Certificate of Achievement for Excellence in Financial Reporting program. In accordance with this award program, the auditor shall assure that the Village’s CAFR conforms to the provisions of the program and shall prepare annually the Village's response to comments made by the award program on the preceding year's report as submitted to the program. It is the auditor’s responsibility to confirm with the Village that any and all comments have been incorporated into the current year’s report. 2. The Village of Glenview’s Financial Advisors will file the CAFR with each Nationally Recognized Municipal Securities Information Repository to comply with SEC filing requirement 15c-2-12 by the appropriate deadline and, therefore, the auditor will not be required to provide this service. 3. The Village of Glenview as need arise will prepare one or more official statements in connection with the sale of debt securities which will contain the general purpose financial statements and the auditor's report thereon. The auditor shall be required, if requested by the financial advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor and any required communication. D. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS Working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the consultant is notified in writing by the Village of Glenview 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 designee: 1. Village of Glenview; 2. Auditors of entities of which the Village of Glenview is a sub-recipient of grant funds. In addition, the consultant shall respond to the reasonable inquires of successor auditors and allow successor auditors to review working papers from prior years’ audits. E. TIME REQUIREMENTS The Village of Glenview will make all records and management personnel available to meet with the consultant's personnel any time after the award of agreement. The Village expects an entrance conference no later than December 1st of the audit year and the auditor. The Village expects to have fully-adjusted trial balances available no later than the first day of scheduled fieldwork. The start of engagement date shall be agreed upon by and with the Village of Glenview, but shall commence no later than the third week in March in the year subsequent to the audit year. The Village prides itself in the ability to obtain the GFOA Certificate of Achievement for Excellence in Financial Reporting for the past 34 years. Therefore, the completion date of June 5th is considered of the essence to the Village. 1. Detailed Audit Plan The auditor shall provide the Village of Glenview both a detailed audit plan and a list of all schedules to be prepared by the Village prior to the audit by no later than December 1st of the audit year. 2. Fieldwork The auditor shall begin the fieldwork portion of the audit by the third week in March and to complete all fieldwork within four weeks of initiation of the audit. The Village shall be notified, in advance, of the audit team to be assigned to the Village’s engagement. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 25 3. Draft Reports The auditor shall supply the first draft of the CAFR including the auditor’s report, financial statements, and notes to the financial statements and recommendations to management no later than the end of the first week in May of each year. 4. Final Reports All financial statements and reports must be delivered to the Village in final and complete form by no later than June 5th of each year. F. ASSISTANCE TO BE PROVIDED TO THE AUDITOR Administrative Services Department staff and responsible management personnel will be available during the audit to assist the consultant by providing information, documentation and explanations. The preparation of confirmation letters will be the responsibility of the Village of Glenview. The mailing of the confirmation letters shall be the responsibility of the auditing firm. The Village will have personnel available to assist the auditor in performing the engagement. Information Systems personnel will also be available to provide system documentation and explanations. The staff of the Village of Glenview will provide the auditors with all individual fund statements and supporting schedules by the first day of scheduled fieldwork each year: The Village of Glenview will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to one telephone and fax line, inquiry access into the accounting software and photocopying facilities. G. FEE PROPOSAL “Dollar Cost Proposal" 1. Total All-inclusive Maximum Price The dollar cost proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposals on an annual "not to exceed" basis for the years ending December 31, 2017 through December 31, 2021, along with a Village option to extend for an additional five years. The option will be solely that of the Village based on satisfactory negotiations or the fee with the auditor at that time. The total all-inclusive maximum price proposed is to contain all direct and indirect costs including all out-of-pocket expenses. Budget for the proposed work to include: a. Estimated Hours - by level of Professional personnel. Also summarize estimated hours by major project timelines. i.e., planning, field work, report preparation, etc. b. Support Personnel Costs c. Report reproduction fees, if applicable RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 26 CITY OF HIGHLAND PARK 1707 St. Johns Avenue Highland Park, Illinois 60035 RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 27 SPECIAL PROVISIONS – CITY OF HIGHLAND PARK SCOPE OF WORK JULY 2017 I. GENERAL INFORMATION A. DESCRIPTION OF THE CITY The City of Highland Park, incorporated in 1869, has a long-standing heritage as one of the prestigious communities along Chicagoland’s “north shore” of Lake Michigan. The City currently occupies a land area of 12.25 square miles, located 26 miles north of Chicago, and serves a population of 29,763. The City automatically became a home-rule unit of government when the 1970 Illinois Constitution was adopted and it operates under the council-manager form of government. Policymaking and legislative authority are vested in a seven-member Council composed of a mayor and six council members elected on an at-large basis for four year, staggered terms. The City Council appoints the City Manager, Treasurer, City Clerk and Corporation Counsel. The City’s fiscal year begins on January 1 and ends on December 31. The City provides a full range of services including police and fire protection; community and economic development; construction and maintenance of the City’s streets and other infrastructure; water, sewer and parking services; youth and senior services; and local transit services. Annual reporting also includes activities of the Police and Firefighters’ Pension Funds, as well as the Highland Park Public Library. The control of the Pension Funds rests with independent boards. The Library Funds are controlled by a Board of Directors that is appointed by the Mayor of Highland Park and is presented as a component unit. As of December 31, 2016 the City of Highland Park utilized fund structures in accordance with current governmental accounting standards and the detail is as follows: General Fund (Major) Special Revenue Funds  Motor Fuel Tax (Non-Major)  Emergency 911 (Non-Major)  Foreign Fire Insurance Tax (Non-Major)  Highland Park Theater (Non-Major)  Environmental Sustainability Fund (Non-Major)  Multi-Modal Transportation Fund (Non-Major)  Public Safety Pension Levy (Major) Debt Service Funds  Debt Service (Major) Capital Project Funds  Capital Projects (Major)  Tax Increment Financing (Non-Major) Enterprise Funds  Motor Vehicle Parking System (Major)  Water (Major)  Sewer (Major) Internal Service Funds  Equipment Maintenance and Replacement (Non-Major)  Insurance (Non-Major) Trust and Agency Funds  Police Pension (Non-Major)  Firefighters’ Pension (Non-Major)  General Deposit (Non-Major)  Housing Trust (Non-Major) During the current fiscal year (2017), the City of Highland Park expects to receive the following financial assistance and state revenues sources:  Federal Assistance: Various Capital Projects and Public Works Department related grants.  State Payments: Income Tax, Motor Fuel Tax, Sales and Use Taxes, Municipal Telecommunications Tax, and Personal Property Replacement Tax. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 28  Local Programs: Home Rule Sales Tax, Local Motor Fuel Tax, Hotel/Motel Tax, Food & Beverage Tax, Ambulance Fees, Utility Franchise Agreement Fees. The City of Highland Park participates in three (3) pension plans. These are the Illinois Municipal Retirement Fund (multi-employer, agent), the City of Highland Park Police Pension Fund (single-employer, defined benefit), and the City of Highland Park Firefighters’ Pension Fund (single-employer, defined benefit). Actuarial services for Other Post Employment Benefits and the Police and Firefighters’ Pension Funds are provided by independent actuaries. The Highland Park Public Library is included as a discrete presentation since it is governed by a separately appointed board of trustees. No other legally separate entity qualifies as a component unit of government. The City of Highland Park is a participant in the Solid Waste Agency of Lake County. The City also sells water to the Villages of Deerfield, Lincolnshire and Bannockburn as well as the Glenbrook Sanitary District. B. FINANCE DEPARTMENT The Finance Department is headed by the Finance Director. The department consists of ten full time and one part time employees committed to finance related functions and three employees that are assigned to the Computer Services Division. The principal functions performed are general ledger, accounts payable, accounts receivable, payroll, purchasing, debt management, cash management, water billing, external audit coordination, budget preparation, risk management and claims administration for non-workers’ compensation claims. The City uses Tyler Technologies EDEN software product for maintaining and processing financial data. Specific modules include general ledger, human resources, licensing, payroll, utility billing, accounts receivable, accounts payable and purchasing. C. FINANCIAL ACTIVITY Following is information on the City’s financial activity: Vendor Checks Issued for FY 2016 5,900 Accounts Receivable Invoices Processed 7,300 2016 Annual Payroll: $22,523,600 2016 Employer Contributions to Pension Plans: Firefighters’ Pension $ 3,412,800 Police Pension $ 3,612,000 Illinois Municipal Retirement Fund $ 1,050,300 FY 2017 General Fund Operating Budget: $32,614,000 Water Customers: 10,400 Water Bills Issued Annually: 42,400 Penalty Bills Issued Annually: 7,000 Cash and Investments at 12/31/16: $44,733,000 D. CONTACTS Principal Contact: Julie Logan Finance Director City of Highland Park 1707 St. Johns Avenue Highland Park, IL 60035 (847) 926-1020 Contracting Authority: City Manager City of Highland Park 1707 St. Johns Avenue Highland Park, IL 60035 (847) 926-1021 Coordination of Audit: Kristi McCaulou RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 29 Deputy Finance Director City of Highland Park 1707 St. Johns Avenue Highland Park, IL 60035 (847) 926-1020 II. NATURE OF SERVICES REQUIRED A. SCOPE OF WORK TO BE PERFORMED 1. The City of Highland Park is requesting an audit which includes all the funds, accounts, capital assets, long term debt and activities of the City, including its component unit, the City of Highland Park Public Library. 2. The City of Highland Park desires the auditor to express an opinion on the fair presentation of the financial position of the governmental activities, the business-type activities, and the fiduciary funds, as well as the City of Highland Park’s discretely presented component unit in conformity with accounting principles generally accepted in the United States of America. The auditor will issue an “in relation to” opinion on the City of Highland Park’s combining and individual fund statements and schedules. The auditor is not required to audit the introductory or statistical information sections of the CAFR. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. 3. The auditor shall prepare, edit and produce all sections of the CAFR of the City each year based on financial and other information provided by the City of Highland Park. This shall include GASB 34 conversion statements as well as all financial statement related schedules in the statistical section. The City of Highland Park shall be responsible for and provide to the auditor for inclusion in the final document the Transmittal Letter, MD&A and the non-financial statement sections. 4. The auditor is responsible for the compilation of the State of Illinois Annual Financial Report for the City. This shall include preparation of the Annual Financial Report and electronically filing the report with the Comptroller of the State of Illinois. This item will be priced separately in the proposal. 5. The auditor is responsible for expressing an opinion on management’s assertion that the City of Highland Park complied with the requirements of the Economic Development Project Area Tax Increment Act of 1995 (Illinois Public Act 89-176 of 1995, approved July 19, 1995, effective January 1, 1996), (65 ILCS 10/1, et. Seq.). This item will be priced separately in the proposal. 6. As a recipient of Federal financial assistance, the City may be required to have an audit performed in accordance with OMB Circular A-133 (Single Audit Act). If such audit is required, the auditing firm will be required to prepare a report in accordance with this Act and electronically submit the certified Data Collection Form. This item will be priced separately in the proposal. B. REPORTING Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue the following reports: 1. Twenty-Five (25) bound copies and one (1) unbound copy of the CAFR. The auditor will prepare all financial statements and notes to the financial statements. The auditor will assist in preparation of the statistical section of the CAFR and will prepare appropriate schedules. The City of Highland Park will provide a cover design for the CAFR, but the auditor will provide binders and dividers. The auditor will furnish the City with a bookmarked PDF copy of the CAFR to be incorporated into the City website. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 30 2. Two (2) copies and the electronic filing of the Illinois Comptroller’s Annual Financial Report for the City of Highland Park. 3. A letter to management containing appropriate suggestions for improvement of accounting procedures and internal controls for the City’s consideration. This letter should contain comments and recommendations for controlling any internal weaknesses discovered and shall be reviewed by the Finance Director before finalizing. 4. Two (2) copies and one (1) electronic copy of the report on the fair presentation of the financial statements of Tax Increment Financing Districts in conformity with generally accepted accounting principles and compliance with the Economic Development Project Area Tax Increment Act of 1995. 5. Ten (10) copies of a report on the financial statements, internal control and compliance in accordance with the audit guide and standards for compliance with the Single Audit Act, as may be required. C. SPECIAL CONSIDERATIONS 1. The City of Highland Park will send its comprehensive annual financial report to the GFOA for review in its Certificate of Achievement for Excellence in Financial Reporting program. In accordance with this award program, the auditor shall assure that the City’s CAFR conforms to the provisions of the program and shall prepare annually the City's response to comments made by the award program on the preceding year's report as submitted to the program. It is the auditor’s responsibility to confirm with the City that any and all comments have been incorporated into the current year’s report. 2. The City of Highland Park will file the CAFR with each Nationally Recognized Municipal Securities Information Repository to comply with SEC filing requirement 15c-2-12 by the appropriate deadline and, therefore, the auditor will not be required to provide this service. 3. The City of Highland Park as need arise will prepare one or more official statements in connection with the sale of debt securities which will contain the general purpose financial statements and the auditor's report thereon. The auditor shall be required, if requested by the financial advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor and any required communication. D. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS Working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the consultant is notified in writing by the City of Highland Park 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 designee: 1. City of Highland Park; 2. Auditors of entities of which the City of Highland Park is a sub-recipient of grant funds. In addition, the consultant shall respond to the reasonable inquires of successor auditors and allow successor auditors to review working papers from prior years’ audits. E. TIME REQUIREMENTS The City of Highland Park will make all records and management personnel available to meet with the consultant's personnel anytime after the award of agreement. The City expects an entrance conference no later than December 1st of the audit year with the auditor. The City expects to have fully-adjusted trial balances available no later than the first day of scheduled fieldwork. The start of engagement date shall be agreed upon by and with the City of Highland Park, but shall commence no later than the first week in April in the year subsequent to the audit year. The City prides itself in the ability to obtain the GFOA Certificate of Achievement for Excellence in Financial Reporting for the past 28 years. Therefore, the completion date of May 31st is considered of the essence to the City. 1. Detailed Audit Plan The auditor shall provide the City of Highland Park both a detailed audit plan and a list of all schedules to RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 31 be prepared by the City prior to the audit by no later than December 1st of the audit year. 2. Fieldwork The auditor shall begin the fieldwork portion of the by the second week in March and complete all fieldwork within four weeks of initiation of the audit. The City shall be notified, in advance, of the audit team to be assigned to the City’s engagement. 3. Draft Reports The auditor shall supply the first draft of the CAFR including the auditor’s report, financial statements, and notes to the financial statements and recommendations to management no later than the last week of April each year. 4. Final Reports All financial statements and reports must be delivered to the City in final and complete form by no later than May 31st of each year. F. ASSISTANCE TO BE PROVIDED TO THE AUDITOR Finance Department staff and responsible management personnel will be available during the audit to assist the consultant by providing information, documentation and explanations. The preparation of confirmation letters will be the responsibility of the City of Highland Park. The mailing of the confirmation letters shall be the responsibility of the auditing firm. The City will have personnel available to assist the auditor in performing the engagement. Information Systems personnel will also be available to provide system documentation and explanations. The staff of the City of Highland Park will provide the auditors with work papers and supporting schedules by the first day of scheduled fieldwork each year: The City of Highland Park will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to one telephone and fax line, inquiry access into the accounting software and photocopying facilities. G. FEE PROPOSAL 1. Total All-inclusive Maximum Price The dollar cost proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposals on an annual "not to exceed" basis for the years ending December 31, 2017 through December 31, 2019, along with a City option for years 2020 and 2021. The option will be solely that of the City based on satisfactory negotiations or the fee with the auditor at that time. The total all-inclusive maximum price proposed is to contain all direct and indirect costs including all out-of-pocket expenses. Budget for the proposed work to include:  Estimated Hours - by level of Professional personnel. Also summarize estimated hours by major project timelines. i.e., planning, field work, report preparation, etc.  Support Personnel Costs  Report reproduction fees, if applicable 2. Prices for Ancillary Services The City of Highland Park requests a separate dollar cost proposal for services outside the scope of audit services described above. The City reserves the right to reject any or all proposals for ancillary services, to waive any irregularities or informalities in the selection process and to accept or reject any item or combination of ancillary items proposed. The City requests a separate dollar cost proposal for the following agreed upon procedures: a) Review of pension benefit calculations as prepared for the City’s public pension funds. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 32 SPECIAL PROVISIONS – VILLAGE OF DEERFIELD SCOPE OF WORK JULY 2017 I. GENERAL INFORMATION A. DESCRIPTION OF THE VILLAGE The Village of Deerfield was incorporated in 1903 and operates under the council/manager form of government. The legislative body consists of the Mayor and Board of six Trustees, all elected on an at-large basis to overlapping four-year terms. The Village Manager is responsible for the day-to-day operation of the Village. The Village is a home rule municipality as defined by the Illinois Constitution. Located approximately 25 miles north of the City of Chicago, in both Cook and Lake Counties, the Village occupies a land area of 7.0 square miles and has a certified 2010 Census of 18,458. The Village provides a number of general governmental services including police protection, water and sewer utilities including sewerage treatment, street construction and maintenance, code enforcement, planning and zoning and general administrative services. Fire protection service is provided by a separate fire protection district. As of December 31, 2016 the Village of Deerfield utilized fund structures in accordance with current governmental accounting standards and the detail is as follows: General Fund Special Revenue Funds  Motor Fuel Tax (Non-Major)  Enhanced 911 (Non-Major) Debt Service Funds  Debt Service (Major)  2011 B Sinking Fund (Non-Major) Capital Project Funds  Infrastructure Replacement Fund (Major)  Bond Proceeds Fund (Non-Major) Enterprise Funds  Water (Major)  Sewerage (Major)  Refuse (Major)  Commuter Parking Lot (Non-Major) Internal Service Funds  Vehicle and Equipment Replacement (Non-Major)  Garage (Non-Major) Trust and Agency Funds  Police Pension (Non-Major)  Deposit (Non-Major)  East Shore Radio Network (Non-Major) During the current fiscal year (2017), the Village of Deerfield expects to receive the following financial assistance and state revenues sources:  Federal Assistance: Various Capital Projects and Public Works Department related grants.  State Payments: Income Tax, Motor Fuel Tax, Sales and Use Taxes, Municipal Telecommunications Tax, and Personal Property Replacement Tax.  Local Programs: Home Rule Sales Tax, Hotel/Motel Tax, Food & Beverage Tax, Electric Utility Tax. The Village of Deerfield participates in two (2) pension plans. These are the Illinois Municipal Retirement Fund (multi-employer, agent) and the Village of Deerfield Police Pension Fund (single-employer, defined benefit). Actuarial services for Other Post Employment Benefits and the Police Pension Fund are provided by independent actuaries. No other legally separate entity qualifies as a component unit of government. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 33 The Village of Deerfield is a participant in the Solid Waste Agency of Lake County. B. FINANCE DEPARTMENT The Finance Department is headed by the Director of Finance. The department consists of seven full time employees committed to finance related functions including Human Resources and Risk Management. The principal functions performed are general ledger, accounts payable, accounts receivable, payroll, purchasing, debt management, cash management, water billing, external audit coordination, budget preparation, risk management and claims administration for non-workers’ compensation claims. The City uses Tyler Technologies Munis software product for maintaining and processing financial data. Specific modules include general ledger, human resources, permit & code enforcement, payroll, utility billing, accounts receivable, accounts payable and purchasing. E. FINANCIAL ACTIVITY Following is information on the Village’s financial activity: Vendor Checks Issued for FY 2016 4,000 2016 Annual Payroll: $10,935,681 2016 Employer Contributions to Pension Plans: Police Pension $ 934,918 Illinois Municipal Retirement Fund $ 809,012 FY 2017 General Fund Operating Budget: $25,765,671 Water Customers: 6,262 Water Bills Issued Annually: 27,687 Penalty Bills Issued Annually: 3,130 Village Cash and Investments at 12/31/16: $32,603,757 Police Pension Cash and Investments at 12/31/16: $43,092,623 F. CONTACTS Principal Contact: Eric L. Burk, CPA Director of Finance Village of Deerfield 850 Waukegan Road Deerfield, IL 60015 (847) 945-5000 Contracting Authority: Village Manager Village of Deerfield 850 Waukegan Road Deerfield, IL 60015 (847) 945-5000 Coordination of Audit: Rich Jett, CPA Village Accountant Village of Deerfield 850 Waukegan Road Deerfield, IL 60015 (847) 945-5000 II. NATURE OF SERVICES REQUIRED A. SCOPE OF WORK TO BE PERFORMED 1. The Village of Deerfield is requesting an audit which includes all the funds, accounts, capital assets, long term debt and activities of the Village. 2. The Village of Deerfield desires the auditor to express an opinion on the fair presentation of the financial position of the governmental activities, the business-type activities, and the fiduciary funds in conformity RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 34 with accounting principles generally accepted in the United States of America. The auditor will issue an “in relation to” opinion on the Village of Deerfield’s combining and individual fund statements and schedules. The auditor is not required to audit the introductory or statistical information sections of the CAFR. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. 3. The auditor shall prepare, edit and produce all sections of the CAFR of the Village each year based on financial and other information provided by the Village of Deerfield. This shall include GASB 34 conversion statements as well as all financial statement related schedules in the statistical section. The Village of Deerfield shall be responsible for and provide to the auditor for inclusion in the final document the Transmittal Letter, MD&A and the non-financial statement sections. 4. The auditor is responsible for the compilation of the State of Illinois Annual Financial Report for the Village. This shall include preparation of the Annual Financial Report and electronically filing the report with the Comptroller of the State of Illinois. This item will be priced separately in the proposal and th e Village may elect to prepare/file the report itself. 5. As a recipient of Federal financial assistance, the Village may be required to have an audit performed in accordance with OMB Circular A-133 (Single Audit Act). If such audit is required, the auditing firm will be required to prepare a report in accordance with this Act and electronically submit the certified Data Collection Form. This item will be priced separately in the proposal. 6. The Deerfield Public Library issues separate audited financial statements. The Library is not a component unit of the Village of Deerfield. However, the Village approves the Library’s tax levy, processes the Library’s payroll and acts as the Library’s agent for IMRF and health insurance. The Library desires the auditor to express an opinion on the fair presentation of the financial position of the governmental activities and the major fund of Deerfield Public Library in conformity with accounting principles generally accepted in the United States of America. This item will be priced separately in the proposal. The auditor is responsible for the compilation of the State of Illinois Annual Financial Report for the Library. This shall include preparation of the Annual Financial Report and electronically filing the report with the Comptroller of the State of Illinois. This item will be priced separately in the proposal and the Library may elect to prepare/file the report itself. B. REPORTING Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue the following reports: 1. Twenty-Five (25) bound copies and one (1) unbound copy of the CAFR. The auditor will prepare all financial statements and notes to the financial statements. The auditor will assist in preparation of the statistical section of the CAFR and will prepare appropriate schedules. The Village of Deerfield will provide a cover design for the CAFR, but the auditor will provide binders and dividers. The auditor will furnish the Village with a bookmarked PDF copy of the CAFR to be incorporated into the Village website. 2. Two (2) copies and the electronic filing of the Illinois Comptroller’s Annual Financial Report for the Village of Deerfield, if prepared by auditor. 3. A letter to management containing appropriate suggestions for improvement of accounting procedures and internal controls for the Village’s consideration. This letter should contain comments and recommendations for controlling any internal weaknesses discovered and shall be reviewed by the Finance Director before finalizing. 4. Ten (10) copies of a report on the financial statements, internal control and compliance in accordance with the audit guide and standards for compliance with the Single Audit Act, as may be required. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 35 C. SPECIAL CONSIDERATIONS 1. The Village of Deerfield will send its comprehensive annual financial report to the GFOA for review in its Certificate of Achievement for Excellence in Financial Reporting program. In accordance with this award program, the auditor shall assure that the Village’s CAFR conforms to the provisions of the program and shall prepare annually the Village's response to comments made by the award program on the preceding year's report as submitted to the program. It is the auditor’s responsibility to confirm with the Village that any and all comments have been incorporated into the current year’s report. 2. The Village of Deerfield will file the CAFR with each Nationally Recognized Municipal Securities Information Repository to comply with SEC filing requirement 15c-2-12 by the appropriate deadline and, therefore, the auditor will not be required to provide this service. 3. The Village of Deerfield as need arise will prepare one or more official statements in connection with the sale of debt securities which will contain the general purpose financial statements and the auditor's report thereon. The auditor shall be required, if requested by the financial advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor and any required communication. D. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS Working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the consultant is notified in writing by the Village of Deerfield 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 designee: 1. Village of Deerfield; 2. Deerfield Public Library; 3. Auditors of entities of which the Village of Deerfield is a sub-recipient of grant funds. In addition, the consultant shall respond to the reasonable inquires of successor auditors and allow successor auditors to review working papers from prior years’ audits. E. TIME REQUIREMENTS The Village of Deerfield will make all records and management personnel available to meet with the consultant's personnel any time after the award of agreement. The Village expects an entrance conference no later than December 1st of the audit year with the auditor. The Village expects to have fully-adjusted trial balances available no later than the first day of scheduled fieldwork. The start of engagement date shall be agreed upon by and with the Village of Deerfield, but shall commence no later than the first week in April in the year subsequent to the audit year. The Village prides itself in the ability to obtain the GFOA Certificate of Achievement for Excellence in Financial Reporting for the past 33 years. Therefore, the completion date of May 31st is considered of the essence to the Village. 1. Detailed Audit Plan The auditor shall provide the Village of Deerfield both a detailed audit plan and a list of all schedules to be prepared by the Village prior to the audit by no later than December 1st of the audit year. 2. Fieldwork The auditor shall begin the fieldwork portion of the audit by the first week in April and complete all fieldwork within four weeks of initiation of the audit. The Village shall be notified, in advance, of the audit team to be assigned to the Village’s engagement. 3. Draft Reports The auditor shall supply the first draft of the CAFR including the auditor’s report, financial statements, and notes to the financial statements and recommendations to management no later than the end of the first week of May each year. 4. Final Reports All financial statements and reports must be delivered to the Village in final and complete form by no later than May 31st of each year. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 36 F. ASSISTANCE TO BE PROVIDED TO THE AUDITOR Finance Department staff and responsible management personnel will be available during the audit to assist the consultant by providing information, documentation and explanations. The preparation of confirmation letters will be the responsibility of the Village of Deerfield. The mailing of the confirmation letters shall be the responsibility of the auditing firm. The Village will have personnel available to assist the auditor in performing the engagement. Information Systems personnel will also be available to provide system documentation and explanations. The staff of the Village of Deerfield will provide the auditors with work papers and supporting schedules by the first day of scheduled fieldwork each year: The Village of Deerfield will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to one telephone and fax line, inquiry access into the accounting software and photocopying facilities. G. FEE PROPOSAL 1. Total All-inclusive Maximum Price The dollar cost proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposals on an annual "not to exceed" basis for the years ending December 31, 2017 through December 31, 2019, along with a Village option for years 2020 and 2021. The option will be solely that of the Village based on satisfactory negotiations or the fee with the auditor at that time. The total all-inclusive maximum price proposed is to contain all direct and indirect costs including all out-of-pocket expenses. Budget for the proposed work to include:  Estimated Hours - by level of Professional personnel. Also summarize estimated hours by major project timelines. i.e., planning, field work, report preparation, etc.  Support Personnel Costs  Report reproduction fees, if applicable RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 37 REFERENCES Please list below five (5) references for which your firm has performed similar work for Municipalities as identified in the Proposal Qualifications. Municipality: Address: City, State, Zip Code: Contact Person/ Telephone Number: Dates of Service/Award Amount: Municipality: Address: City, State, Zip Code: Contact Person/Telephone Number: Dates of Service/Award Amount: Agency: Address: City, State, Zip Code: Contact Person/ Telephone Number: Dates of Service/Award Amount: Agency: Address: City, State, Zip Code: Contact Person/ Telephone Number: Dates of Service/Award Amount: Agency: Address: City, State, Zip Code: Contact Person/ Telephone Number: Dates of Service/Award Amount: RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 38 DISQUALIFICATION OF CERTAIN OFFERORS PERSONS AND ENTITIES SUBJECT TO DISQUALIFICATION No person or business entity shall be awarded an agreement or subagreement, for a stated period of time, from the date of conviction or entry of a plea or admission of guilt, if the person or business entity: (A) has been convicted of an act committed, within the State of Illinois or any state within the United States, of bribery or attempting to bribe an officer or employee in the State of Illinois, or any State in the United States in that officer’s or employee’s official capacity; (B) has been convicted of an act committed, within the State of Illinois or any state within the United States, of bid rigging or attempting to rig bids as defined in the Sherman Anti-Trust Act and Clayton Act 15 U.S.C.; (C) has been convicted of bid rigging or attempting to rig bids under the laws of the State of Illinois, or any state in the United States; (D) has been convicted of an act committed, within the State of Illinois or any state in the United States, of price-fixing or attempting to fix prices as defined by the Sherman Anti-Trust Act and Clayton Act 15 U.S.C. Sec. 1 et sig.; (E) has been convicted of price-fixing or attempting to fix prices under the laws of the State of Illinois, or any state in the United States; (F) has been convicted of defrauding or attempting to defraud any unit of state or local government or school district within the State of Illinois or in any state in the United States; (G) has made an admission of guilt of such conduct as set forth in subsection (A) through (F) above which admission is a matter of record, whether or not such person or business entity was subject to prosecution for the offense or offenses admitted to; (H) has entered a plea of nolo contendere to charges of bribery, price fixing, bid rigging, bid rotating, or fraud; as set forth in subparagraphs (A) through (F) above. Business entity, as used herein, means a corporation, partnership, trust, association, unincorporated business or individuall y owned business. By signing this document, the bidder hereby certifies that they are not barred from bidding on this contract as a result of a violation of either Section 33E-3 or 33E-4 of the Illinois Criminal Code of 1961, as amended. (Signature of Bidder if the Bidder is an Individual) (Signature of Partner if the Bidder is a Partnership) (Signature of Officer if the Bidder is a Corporation) The above statements must be subscribed a sworn to before a notary public. Subscribed and Sworn to this _____ day of ______________, 2017 Notary Public Failure to complete and return this form may be considered sufficient reason for rejection of the proposal. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 39 ANTI-COLLUSION AFFIDAVIT AND CERTIFICATION ______________________________________, being first duly sworn, deposes and says that he is ________________________________________ (Partner, Officer, Owner, Etc.) of (Consultant) The party making the foregoing proposal or bid, that such bid is genuine and not collusive, or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any bidder or person, to put in a sham bid or to refrain from bidding, and has not in any manner, directly or indirectly, sought by agreement or collusion, or communication or conference with any person; to fix the bid price element of said bid, or of that of any other bidder, or to secure any advantage against any other bidder or any person interested in the proposed agreement. The undersigned certifies that he is not barred from bidding on this contract as a result of a conviction for the violation of State laws prohibiting bid-rigging or bid-rotating. (Name of Bidder if the Bidder is an Individual) (Name of Partner if the Bidder is a Partnership) (Name of Officer if the Bidder is a Corporation) The above statements must be subscribed a sworn to before a notary public. Subscribed and Sworn to this _____ day of ______________, 2017 Notary Public Failure to complete and return this form may be considered sufficient reason for rejection of the proposal. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 40 CONFLICT OF INTEREST ___________________________________________________, hereby certifies that it has conducted an investigation into whether an actual or potential conflict of interest exists between the bidder, its owners and employees and any official or employee of a Municipality identified herein. Bidder further certifies that it has disclosed any such actual or potential conflict of interest and acknowledges if bidder has not disclosed any actual or potential conflict of interest, the Municipality may disqualify the proposal or the affected Municipality may void any award and acceptance that the Municipality has made. (Name of Bidder if the Bidder is an Individual) (Name of Partner if the Bidder is a Partnership) (Name of Officer if the Bidder is a Corporation) The above statements must be subscribed a sworn to before a notary public. Subscribed and Sworn to this _____ day of ______________, 2017 Notary Public Failure to complete and return this form may be considered sufficient reason for rejection of the proposal. RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 41 TAX COMPLIANCE AFFIDAVIT ,being first duly sworn, deposes and says that he is ________________________________________ (Partner, Officer, Owner, Etc.) of _________________________ ___________ (Consultant) The individual or entity making the foregoing proposal or bid certifies that he is not barred from contracting with the Municipality identified herein because of any delinquency in the payment of any tax administered by the Department of Revenue unless the individual or entity is contesting, in accordance with the procedures established by the appropriate revenue act. The individual or entity making the proposal or bid understands that making a false statement regarding delinquency in taxes is a Class A Misdemeanor and, in addition, voids the agreement and allows the Municipality to recover all amounts paid to the individual or entity under the agreement in civil action. (Name of Bidder if the Bidder is an Individual) (Name of Partner if the Bidder is a Partnership) (Name of Officer if the Bidder is a Corporation) The above statements must be subscribed and sworn to before a notary public. Subscribed and Sworn to this _____ day of _________________, 2017 Notary Public Failure to complete and return this form may be considered sufficient reason for rejection of the proposal. 1 Purchasing Division Village of Glenview 2500 East Lake Ave Glenview, IL 60026 July 21, 2017 ADDENDUM #1 (1 of 1 Pages) RFP #217019 RFP ON: Audit Services RFP Due Date: August 2, 2017, 2:00 p.m. CST Please note the following clarifications, revisions, and additions to the bid documents. 1. Please note the following clarifications: The RFP requires ONE proposal that includes a response to each municipality’s requirements. Bidder should provide ONE original proposal, NIINE copies of proposal, and ONE electronic copy (flash drive, CD, or DVD but no email). 2. Please note the following revisions: The term of Agreement should read: The term of this Agreement shall be five (5) years. The Municipality reserves the right to renew their agreement for five (5) additional years, subject to acceptable performance by the Consultant. At the end of the initial or renewal term, the Municipality reserves the right to extend this agreement for a period of up to ninety (90) days for the purpose of getting a new agreement in place. Any other reference to the term of the Agreement throughout the document should read as written above. Please include a copy of this document in your bid submittal. PLEASE SIGN THIS FORM AND EMAIL BACK TO hbresson@glenview.il.us WITHIN 24 HOURS. RETURN ORIGINAL WITH YOUR BID. I will be submitting a bid _______ or I will not be submitting a bid because _____________________________________________________________________________________________ _____________________________________________________________________________________________ Sincerely, Acknowledged and Accepted 217019-1: Hannah Bresson Signature: _____________________________________ Village of Glenview Purchasing Analyst Company: _____________________________________ END ADDENDUM #1 1 Purchasing Division Village of Glenview 2500 East Lake Ave Glenview, IL 60026 July 26, 2017 ADDENDUM #2 (1 of 12 Pages) RFP #217019 RFP ON: AUDIT SERVICES FOR THE MUNICIPALITIES OF DEERFIELD, GLENVIEW AND HIGHLAND PARK RFP Due Date: August 2, 2017, 2:00 p.m. CST Please note the following clarifications, revisions, and additions to the bid documents. 1. Please note the following addition: In your proposal response please provide information regarding discount pricing if one or more municipalities award to the same vendor. If discount pricing is proposed and the municipalities award to the same vendor, the discount pricing would remain in place for the entirety of the agreement. If a municipality were to cancel the agreement at any time the discounted pricing would remain in place and would have no impact on the municipalities currently in an agreement with the vendor. 2. Please note the following addition: JOINT PURCHASING/PURCHASING EXTENSION The purchase of goods and services pursuant to the terms of this Agreement shall also be offered for purchases to be made by the Municipalities, as authorized by the Governmental Joint Purchasing Act, 30 ILCS 525/0.01, et seq. (the “Act”). All purchases and payments made under the Act shall be made directly by and between each Municipality and the successful bidder. The bidder agrees that the Village of Glenview shall not be responsible in any way for purchase orders or payments made by the other Municipalities. The bidder further agrees that all terms and conditions of this Agreement shall continue in full force and effect as to the other Municipalities during the extended term of this Agreement. Bidder and the other Municipalities may negotiate such other and further terms and conditions to this Agreement (“Other Terms”) as individual projects may require. In order to be effective, Other Terms shall be reduced to writing and signed by a duly authorized representative of both the successful bidder and the other Municipality. The bidder shall provide the other Municipalities with all documentation as required in the RFB, and as otherwise required by the Village of Glenview, including, but not limited to:  Certificate of insurance naming each additional Municipality as an additional insured 3. Please note the following clarifications: Glenview 1) Why is the Village requesting RFPs this year? The Village routinely tests service provider pricing in the market. 2 2) Is your current service provider allowed to submit a proposal? Yes. 3) Will the Village provide copies of the most recent management letter? If not, what was the nature of the management letter comments? The management letter is on our website. http://glenview.il.us/government/Pages/Finance.aspx 4) Approximately how many and what types of audit entries were made in the prior year? Is this typical? Zero audit entries were made in the 2016 audit – this is typical. 5) Does the Village maintain detailed capital asset ledgers with accumulated depreciation and depreciation expense by function for reporting in the Statement of Activities? Yes. 6) Please confirm our understanding that all year end accrual (modified accrual & full accrual for government wide statements) entries prepared by the Village and that adjustments are then posted by the auditor to the CAFR. The Village posts year end accrual entries to the general ledger before it provides the trial balance to the auditors. The trial balance is provided to the auditors on the first day of fieldwork. 7) Does the Village prepare the information for the cash and investment disclosures for the Village and the pension funds as required by GASB Statement #40 and #72? No – the auditor prepares those disclosures. 8) Does the Village prepare the Schedule of Expenditures of Federal Awards? Yes. 9) What was the total amount federal awards expended in 2016? $300,091 How many major programs did the Village have in 2016? N/A Does the Village expect to have the same number of major programs in 2017? The Village has not yet made that determination. 10) What type of assistance does the Village need in conducting a periodic, year-end inventory of Village supplies, computers and peripheral and fleet of vehicles and/or subject to best practices? The Village maintains perpetual inventory of computers and vehicles. At year end staff conducts an inventory count of meters, fuel, parts and salt. The Village is not seeking assistance in this matter. 11) Have there been any TIF compliance findings in the past two fiscal years? No. 12) What assistance does the Village expect they will need from the auditors for implementation of new GASB statements? The auditors have almost fully implemented the new GASB prouncements as the Village has implemented them. We have worked with the auditors, but they have taken the lead on this process. 13) Has the Village offered any Early Retirement/Termination programs which require compliance with GASB 47? No. 14) Are there any stand-alone programs that may or may not be integrated with the general ledger, such as payroll processing or fixed asset management programs? The accounting software has modules such as payroll and utility billing that are integrated with the general ledger. However, there are other programs such as fixed asset management that are both a module (not integrated with the general ledger) and Excel worksheets that record the fixed assets and their corresponding depreciation. 15) Have there been any changes in the Village’s insurance since fiscal year 2016? Who is the third-party administrator the Village’s workmen’s’ compensation and liability insurance self insurance plans and pools? No. CCMSI is the third-party administrator. 16) Does the Village anticipate having any new bond issues for 2017? No. 3 2016 2015 2014 Financial Statements(CAFR) 50,000 48,500 47,000 Single Audit 5,000 8,300 AFR 550 540 530 TIF Compliance Report 1,125 1,100 1,075 Waukegan Golf TIF Report 1,125 1,100 1,075 52,800 56,240 57,980 17) Approximately how many cash and investment accounts are maintained? 30 cash accounts and 18 investment accounts. 18) Are all cash and investment accounts reconciled on a monthly basis with investments adjusted to fair values? Yes, reconciled every month. Investment purchases are recorded at cost. 19) Excluding operations of the component unit, how many cash collection points are there? Administration Office and Police Records each have a collection point. Two commuter lots with parking machines. 20) Does the Village maintain the general ledger, capital assets, and long-term debt for the Public Library or any other component units, such as the Pension Funds? The Village maintains the general ledger, capital assets and long-term debt for the Library, but not the Pension Funds. The Pension Funds general ledgers are maintained by Lauterbach & Amen. 21) Besides State of IL AFR reports, any other bound documents needed? Who provides the other info for the TIF reports for the State of IL? The CAFR is a bound document. The TIF Reports are prepared by the Village with the auditor supplying a TIF Compliance Letter. 22) Is the Village willing to release the prior fee? Yes. 23) Who prepares the LOOKBACK calculations for the internal service funds? The Village does not produce a lookback calculation for its Internal Service Funds. 24) Please confirm that the Village accounting software permit exporting of electronic versions of trial balances with budgets and that budgets are tracked by original and amended versions. Yes - confirmed. 25) What is the typical fieldwork duration and normally how many auditors are in the field? The fieldwork has been 4 weeks and there are 2-4 auditors in the field. 26) What were the audit fees for the fiscal year 2016 audit for each community broken down in the same structure as the pricing sheets requested in the RFP? 27) Who provides actuarial services for the Pension and OPEB plans? Are the reports generally received timely? a. OPEB - MWM Consulting Group b. Fire Pension – Lauterbach & Amen c. Police Pension – Foster & Foster Actuaries d. All reports are received timely 28) Are there any significant offsite cash receipt collections (not processed by the Finance Department)? The majority of the collections occur at the Village’s resolution center or police records which are both in the Village Hall building. 29) Are there any significant debt issuances expected in the next 5 years? Unknown at this point. 4 30) Were there any additional billings by the predecessor audit firm for services beyond the scope of the audit? No. 31) Does the municipality anticipate any additional TIF districts during the term of the RFP? Not at this time 32) Please confirm that each municipality will provide information needed for statistical section tables of the CAFR that do not feed directly from the financial statements (ie. Overlapping debt, principal taxpayers, etc.) - Confirmed. 33) It does not appear that a single audit has been submitted to the Federal Audit Clearinghouse for 2016. Was a single audit required in 2016? No. Will a single audit be required in 2017 and beyond? The Village has not been awarded a federal grant in excess of the threshold as of July 2017, but the Village applies for various capital grants throughout the year. 34) For TIF reporting, does the Village require a separate TIF financial and compliance report? Or does the Village require a compliance report only? TIF compliance report only. 35) The RFP indicates that the CAFR be issued no later than June 5th. However, the 2016 and 2015 CAFRs were issued on June 14th. Has there been any specific reason leading to the delay in issuance? Does the Village anticipate any changes that would result in an early issuance in line with the timelines identified in the RFP? Our goal is to present the audit at the first board meeting in June, but can present at the second meeting if scheduling issues arise. 36) Does the Village maintain documentation of its processes and controls over significant transaction cycles, such as payroll, cash disbursements, utility billing, etc.? Yes. 37) Does the Village anticipate any significant debt issuances, capital projects, or changes in operations in 2017 or during the life of the audit contract? Debt issuances – unknown at this time. Capital Projects - No, the Village has a 5 year CIP plan with a budget of $14M per year which is primarily funded through available cash. 38) How is the accounting for the Police and Fire pensions handled? Is it done by the Village, the individual pensions, or by an outside 3rd party? 3rd party - Lauterbach & Amen 39) Is the incumbent auditor expected to propose and will they be seriously considered? All proposal responses will be considered. 40) What additional elements are you looking for in an auditor that you have not been experiencing? All proposals will be reviewed to determine what elements each firm provides. 41) What grants have been received and are being expected in the current and future years? IDOT grant engineering reimbursements. 42) What is required of the auditor with regard to the annual TIF filing with the State Comptroller? So you only need the opinion? TIF compliance report. Yes. 43) Has the prior year management letter comment regarding capital assets been resolved or is the issue ongoing? Finance team is working on resolving the issue by the end of the FY2017. 44) For the pdf of the CAFR, the RFP asks that it be bookmarked. What bookmarks are you specifically looking to be included? The tabs in the CAFR document should match the PDF bookmarks. 45) The Village stated that the auditor proposed no Journal entries for the Village. Were any required for the Library? If so, can you please provide them? No entries required for the Library. 5 46) Are there any areas of the audit preparation that the Village relies on the auditors to prepare? What parts of the CAFR does the Village prepare? Audit preparation: The Village prepares all confirmation letters after receiving prior year feedback from auditor on any changes/edits they would like in the current year. CAFR preparation: Village prepares Letter of Transmittal, MD&A narrative after receiving the MD&A Tables & Charts from the auditor and the auditor prepare the Financial Trends pages of the Statistical Section while the Village prepares the rest of the Statistical Section. 47) The Village reports the Special Tax Allocation Fund (the Glen TIF) as a major fund. Has the Village considered designating the Waukegan Golf TIF as a major fund? No, unless it needs to be disclosed as a major fund. 6 Highland Park 1) Why is the City requesting RFPs this year? The City routinely tests service provider pricing in the market. 2) Is your current service provider allowed to submit a proposal? Yes. 3) The RFP indicated a need for an Agreed Upon Procedures (AUP) or review of pension benefit calculations. What is the status of the 2016 AUP? The City contracts Nyhart for public safety pensions actuarial valuation and CAFR pension reporting data, which is generally provided prior to the start of final fieldwork. The auditors relay on the actuary reports, generally without questions to the client. The auditors obtain related information from IMRF, without questions to the client. 4) Will the City provide copies of the most recent management letter? If not, what was the nature of the management letter comments? Yes. 5) Approximately how many and what types of audit entries were made in the prior year? Is this typical? No adjusting audit entries in 2016 – this is typical. 6) Does the City maintain detailed capital asset ledgers with accumulated depreciation and depreciation expense by function for reporting in the Statement of Activities? Yes. 7) Please confirm our understanding that all year end accrual (modified accrual & full accrual for government wide statements) entries are prepared by the City and that the auditor takes the City support and posts the activity to the CAFR. The City posts all modified accrual entries. The City posts full accrual adjustments for government wide statements to separate “funds” that the auditors use for CAFR preparation. 8) Does the City prepare the information for the cash and investment disclosures for the City and the pension funds as required by GASB Statement #40 and #72? The City provides the information necessary for the auditors to prepare required disclosures in the CAFR. 9) Does the City prepare the Schedule of Expenditures of Federal Awards? The auditors prepare the SEFA for the City. 10) Does the City expect to have the same number of major programs in 2017 for the Single Audit? Yes. 11) What type of assistance does the City need in conducting a periodic, year-end inventory of City supplies, computers and peripheral and fleet of vehicles and/or subject to best practices? The City maintains perpetual inventory of computers and vehicles. The City is not seeking assistance in this matter. 12) Have there been any TIF compliance findings in the past two fiscal years? No. 13) What assistance does the City expect they will need from the auditors for implementation of new GASB statements? The auditors have almost fully implemented the new GASB pronouncements as the City has implemented them. We have worked with the auditors, but they have taken the lead on this process. 14) Has the City offered any Early Retirement/Termination programs which require compliance with GASB 47? No. 15) Are there any stand-alone programs that may or may not be integrated with the general ledger, such as payroll processing or fixed asset management programs? The accounting software has modules such as payroll and utility billing that are integrated with the general ledger. Fixed assets are tracked in an 7 access database and the City posts year-end journal entries to adjust corresponding accounts. The City intends to implement the accounting software fixed asset module, when systems issues are resolved. 16) Have there been any changes in the City’s insurance since fiscal year 2016? Who is the third-party administrator the City’s workmen’s’ compensation and liability insurance self-insurance plans and pools? The City changed insurance brokers from Mesirow Insurance to Arthur J. Gallagher for liability insurance plans, effective January 1, 2017. The third party administrator for workmen’s compensation is CCMSI. The City works with a number of different insurance companies for the liability package. The City reports claims directly to those companies. 17) Does the City anticipate having any new bond issues for 2017? The City issued new bonds in 1Q’17 and none are expected for the remainder of 2017. 18) Approximately how many cash and investment accounts are maintained? 9 cash account and 17 investment accounts. 19) Are all cash and investment accounts reconciled on a monthly basis with investments adjusted to fair values? Yes, the City reconciles every month. The City records investment purchases at cost. 20) Excluding operations of the component units, how many cash collection points are there? City Hall, Police Records, Community Development, the Senior Center and the Library each have a collection point. The City also has numerous cash +parking meters. 21) Does the City maintain the general ledger, capital assets, and long-term debt for the Public Library or any other component units such as the Pension Funds? The Library maintains its own separate General Ledger. The City uses Lauterbach & Amen to account for two public safety pension plans and IMRF for one pension plan for other employees. 22) Besides State of IL AFR reports and the AUP, any other bound documents needed? The CAFR is a bound document. The TIF Reports are prepared by the City with the auditor supplying a TIF Compliance Letter. 23) Is the City willing to release the prior fee? Yes, $51,480 for 2016. 24) Who prepares the LOOKBACK calculations for the internal service funds? The auditors prepare the lookback calculation for the Internal Service Funds. 25) Please confirm that the City accounting software permits exporting of electronic versions of trial balances with budgets and that budgets are tracked by original and amended versions. Yes. 26) What is the typical fieldwork duration and normally how many auditors are in the field? Interim 3 days, 1-2 auditors. Final 10 days 2-3 auditors. 27) Who provides actuarial services for the Pension and OPEB plans? Are the reports generally received timely? Pension – Nyhart, OPEB - Lauterbach & Amen, Yes. 28) Are there any significant offsite cash receipt collections (not processed by the Finance Department)? The vast majority of collections occur in the City Hall Finance Department. City Hall, Police Records, Community Development, the Senior Center and the Library each have a collection point. The City also has numerous cash parking meters. 29) Are there any significant debt issuances expected in the next 5 years? Unknown at this point. The City typically issues GO Bonds through competitive bids. Debt issuances are generally </= $10 million in a single year. The City’s budget document, which can be found on the City’s website, includes a five-year 8 capital improvement program with funding sources, including debt. 30) Were there any additional billings by the predecessor audit firm for services beyond the scope of the audit? No. 31) Does the municipality anticipate any additional TIF districts during the term of the RFP? Unknown at this point. 32) Please confirm that each municipality will provide information needed for statistical section tables of the CAFR that do not feed directly from the financial statements (i.e. Overlapping debt, principal taxpayers, etc.). Confirmed. 33) Can you elaborate on the scope of the ancillary services? Will this review be completed on annual basis or as a one-time service? Has the City developed an expectation on how detailed the review should be (i.e. are all benefits being reviewed or a sample of benefits)? The City of Highland Park is withdrawing the request for price quote for ancillary services. Please see revised pricing sheet for Highland Park only. 34) To clarify, will the City still require the issuance of a separate Library audit report? Yes. 35) Please provide the fees for the past couple of years. 2015 $50,980, and 2016 $51,480. 36) Is the incumbent auditor expected to propose and will they be seriously considered? Yes and Yes. 37) What additional elements are you looking for in an auditor that you have not been experiencing? The RFP was not a result of auditor service dissatisfaction. The City routinely tests service provider pricing in the market. 38) What grants have been received and are being expected in the current and future years? 2016 grants were US Department of Justice (Bulletproof Vest Partnership), IDOT (Local Roads and Streets), Illinois Clean Energy Community Foundation, IEPA (Water Meter Replacement), IDOT (Transportation Grant and Traffic Safety Grant), D.A.S Charitable Trust (K-9 Grant), IHPA (Illinois Arts Council (IACA) Grant), IDPH (Death Certificate Surcharge Fund), Illinois Liquor Control Tobacco Grant. Prospective grants are not known at this time. 39) The City stated that the auditor proposed no adjusting journal entries for the City. Were any required for the Library? If so, can you please provide them? No. 40) What is required of the auditor with regard to the annual TIF filing with the State Comptroller? So you only need the opinion? The TIF Reports are prepared by the City with the auditor supplying a TIF Compliance Letter. 41) Are there any areas of the audit preparation that the City relies on the auditors to prepare? The City posts all modified accrual entries. The City posts full accrual adjustments for government-wide statements to separate “funds” that the auditors use for CAFR preparation. The City prepares the auditor-requested PBC documents. The City provides the information necessary for the auditors to prepare required disclosures in the CAFR. The auditors prepare the SEFA for the City. 9 Deerfield 1) Why is the Village requesting RFPs this year? – The Village routinely tests service provider pricing in the market. 2) Is your current service provider allowed to submit a proposal? - Yes 3) What is the status of the 2016 audited financial statements and Single Audit (if applicable)? The 2016 CAFR wasn’t available on the Village website as of July 11? - Completed. http://www.deerfield.il.us/ArchiveCenter/ViewFile/Item/276 No Single Audit was required. 4) Will the Village provide copies of the most recent management letter or Single Audit report? If not, what was the nature of the management letter comments and Single Audit findings? – Yes. 5) Approximately how many and what types of audit entries were made in the prior year? Is this typical? – No audit entries in 2016. This is typical. 6) Does the Village maintain detailed capital asset ledgers with accumulated depreciation and depreciation expense by function for reporting in the Statement of Activities? – Yes. 7) Please confirm that the Village prepares all year end accruals (modified accrual & full accrual for government wide statements) entries and the auditor is then required to post the adjustments to the CAFR? – The Village posts all modified accrual entries. The Village posts full accrual adjustments for government wide statements to separate “funds” that the auditors use for CAFR preparation. 8) Does the Village prepare the information for the cash and investment disclosures for the Village and the pension fund as required by GASB Statement #40 and #72? – The Village provides the information necessary for the auditors to prepare required disclosures in the CAFR. 9) Does the Village prepare the Schedule of Expenditures of Federal Awards? – The auditors prepare the SEFA, if needed. A Single Audit has not been required for several years. 10) What was the total amount federal awards expended in 2016? – n/a How many major programs did the Village have in 2016? – n/a Does the Village expect to have the same number of major programs in 2017? – n/a 11) What type of assistance does the Village need in conducting a periodic, year-end inventory of Village supplies, computers and peripheral and fleet of vehicles and/or subject to best practices? – The Village is not seeking this type of assistance, but is open to suggestions should the need arise. 12) What assistance does the Village expect they will need from the auditors for implementation of new GASB statements? – General assistance relating to timing, form and nature of new statements. 13) Has the Village offered any Early Retirement/Termination programs which require compliance with GASB 47? – No. 14) Are there any stand-alone programs that may or may not be integrated with the general ledger, such as payroll processing or fixed asset management programs? – No. Payroll processing and utility billing are fully integrated with the general ledger. Fixed assets are tracked in excel and the Village posts year-end journal entries to adjust corresponding accounts. 10 15) Have there been any changes in the Village’s insurance since fiscal year 2016? Who is the third-party administrator the Village’s workmen’s’ compensation and liability insurance pools? – No changes. The Village carries coverage through MICA. 16) Does the Village anticipate having any new bond issues for 2017? – Yes. One issue that included a refunding and new money. 17) Approximately how many cash and investment accounts are maintained? – The Village maintains five accounts at a local WinTrust bank. (Depository, Accounts Payable, Payroll MaxSafe Money Market & Pension) The Village also maintains various IL Funds accounts. (General, Bond Proceeds, Pension, etc.) The Pension Fund maintains a Vanguard account with three mutual funds. Finally, the Village maintains four custody accounts for DVP investment purchases. (2 Village & 2 Pension) 18) Are all cash and investment accounts reconciled on a monthly basis with investments adjusted to fair values? - Yes 19) How many cash collection points are there? The vast majority of collections occur in the Finance Department. We also collect fees in Community Development (permits) and Police (tickets). All three are in the same building. Police personnel collect cash from the commuter parking lots each day and bring it to the Finance Department. 20) As the Village services as the fiscal agent for the Library and processes payroll, IMRF and health insurance (as well as approves the annual Tax Levy), does the Village process other general ledger functions for the Library, such as capital assets, receipts and accounts payable? – No. The Library handles its own accounting. 21) Does the Village process accounting information for the Police Pension or is this function outsourced? – The Village processes accounting information for the Police Pension fund. 22) Besides State of IL AFR reports, any other bound documents needed? – CAFR is a bound document. 23) Is the Village willing to release the prior fee? – Yes. $35,116 for CAFR; $2,228 for Single Audit (not need in 2016); $5,092 for Library. 24) Who prepares the LOOKBACK calculations for the internal service funds? – Auditors prepare LOOKBACK calculations as a part of writing the CAFR. The Village maintains two internal service funds. (Garage fund & Vehicle and Equipment Replacement fund) 25) Please confirm that the Village accounting software permits exporting of electronic versions of trial balances with budgets and that the budgets are tracked by original and amended versions. – Confirmed. 26) What is the typical fieldwork duration and normally how many auditors are in the field? – Fieldwork is typically scheduled for two weeks, but completed in approximately a week and a half. Fieldwork consisted of Partner, on-site Manager and 1-2 staff. 27) What were the audit fees for the fiscal year 2016 audit for each community broken down in the same structure as the pricing sheets requested in the RFP? - $35,116 for CAFR; $2,228 for Single Audit (not need in 2016); $5,092 for Library (billed separately to Library). 28) Who provides actuarial services for the Pension and OPEB plans? Are the reports generally received timely? – Lauterbach & Amen. Yes. 29) Are there any significant debt issuances expected in the next 5 years? – Unknown at this point. The Village has typically issued GO Bonds through competitive bids. 11 30) Were there any additional billings by the predecessor audit firm for services beyond the scope of the audit? – No. 31) Does the municipality anticipate any additional TIF districts during the term of the RFP? – No. 32) Please confirm that each municipality will provide information needed for statistical section tables of the CAFR that do not feed directly from the financial statements (ie. Overlapping debt, principal taxpayers, etc.) – Confirmed 33) Would you be willing to provide a copy of the 2016 Deerfield Public Library audit report? –Yes. It available on the Library’s website. http://deerfieldlibrary.org/library-financial-information/ 34) Does the Village anticipate any significant debt issuances, capital projects, or changes in operations in 2017 or during the life of the audit contract? – No changes for 2017. Future capital projects may be funded with additional debt issuances. 35) What grants have been received and are being expected in the current and future years? – The Village anticipates approximately $500,000 in grant revenue for infrastructure projects in 2017 and approximately $2 million total for 2018 and 2019. Unknown beyond 2019. Please include a copy of this document in your proposal submittal. PLEASE SIGN THIS FORM AND EMAIL BACK TO hbresson@glenview.il.us WITHIN 24 HOURS. RETURN ORIGINAL WITH YOUR PROPOSAL. I will be submitting a proposal _______ or I will not be submitting a proposal because _________________________________________________________________________________________ _________________________________________________________________________________________ Sincerely, Acknowledged and Accepted 217019-2: Hannah Bresson Signature: ____________________________________ Village of Glenview Purchasing Analyst Company: ____________________________________ END ADDENDUM #2 12 SUBMISSION INFORMATION City of Highland Park 1707 St. Johns Avenue Highland Park, IL 60035 DUE DATE: August 2, 2017 TIME: 2:00 P.M. Local Time LOCATION: Village of Glenview REQUEST FOR PROPOSALS INFORMATION Company Name: ____________________________________ Address: __________________________________________ City, State, Zip Code: ________________________________ Contact Person: _________________________________________ PROFESSIONAL AUDITING SERVICES per the specifications identified herein Submit 1 original, 3 copies & 1 electronic copy (electronic copy can be a flash drive, CD or DVD – no e-mail) CITY OF HIGHLAND PARK – PRICING SHEET AUDIT SERVICES – ANNUAL NOT TO EXCEED AMOUNT Fiscal Year Ending 12.31.2017 12.31.2018 12.31.2019 12.31.2020 12.31.2021 Financial Statements (CAFR) $ $ $ $ $ Single Audit (if required) $ $ $ $ $ Annual Report for the State of Illinois Comptroller $ $ $ $ $ Ravinia TIF Compliance Report $ $ $ $ $ TOTAL PROPOSAL PRICE $ $ $ $ $ 9 EXHIBIT B The Proposal 10 EXHIBIT C Exceptions BAKER TILLY EXCEPTIONS TO AUDITING SERVICES RFP #2217019 General Terms and Conditions Page 14, Section 17.6.2, is revised to read as follows: The CGL Policy shall name each Municipality as additional insured as their interest may appear, and Consultant shall provide thirty (30) days’ notice, in writing, of cancellation or material change. Page 14, Section 17.6.4, is revised to read as follows: The Consultant shall provide the Village of Deerfield, the Village of Glenview, and the City of Highland Park with (i) Certificates of Insurance for all policies, and (ii) endorsements naming the Municipalities as additional insured on the CGL policy only, evidencing the above required insurance, prior to commencement of an agreement. Thereafter, Consultant shall provide the Municipalities with certificates (and endorsements as concerning the CGL policy only) evidencing renewals or replacements of said policies of insurance promptly following such renewal or replacement. Page 15, Section 17.7, is revised to read as follows: Failure to Comply: In the event Consultant fails to obtain or maintain any insurance coverages required under this agreement, the Municipality may terminate this Agreement. Page 15, Section 18, is revised to read as follows: 18. HOLD HARMLESS & LIMITATION ON DAMAGES The Consultant agrees to indemnify, save harmless and defend the Village of Deerfield, the Village of Glenview, and the City of Highland Park, and their respective elected and appointed officials, employees, agents, consultants, attorneys and representatives (each a “Covered Person”) and each of them against and hold it and them harmless from any and all lawsuits, claims, injuries, demands, liabilities, losses, and expenses (collectively “Claims”); including court costs and reasonable attorney’s fees to the extent such Claim or Claims have arisen out of the willfull misconduct, negligent, or other wrongful acts or omissions of Consultant in connection with the services provided by Consultant pursuant to this Agreement. The foregoing indemnity and save harmless obligations shall apply except if such Claim(s) is caused solely by the direct willful and wanton conduct of the Village of Deerfield, the Village of Glenview, and the City of Highland Park, their agents, servants, or employees or any other person indemnified hereafter. The obligations of the Consultant under this provision shall not be limited by the limits of any applicable insurance required of the Consultant. Notwithstanding the foregoing, the indemnity and save harmless obligations in this Section shall not apply to Consultant, its subsidiaries and their present or former partners, principals, employees, officers and agents: (i) in the event that the lawsuits, claims, injuries, demands, liabilities, losses, and expenses arise as a result of the sole acts or omissions of the Municipality or such Covered Person; or (ii) to the extent that Consultant’s obligations under this Section would violate Consultant’s independence requirements under the AICPA Code of Conduct. Furthermore, because of the importance of the information that the Municipality provides to Consultant with respect to Consultant’s ability to perform the services, and provided that Consultant provides the services in a manner consistent with the standards of professional practice by recognized auditing firms providing services of a similar nature, the Municipality hereby releases Consultant and its present and former partners, principals, agents and employees from any liability, damages, fees, expenses and costs including attorneys’ fees, relating to the services to the extent that the same arise from or relate to any information, including representations by management, provided by the Municipality, its personnel or agents, that is not complete, accurate or current. The liability (including attorney’s fees and all other costs) of Consultant and its present or former partners, principals, agents or employees related to any claim for damages relating to the services performed under this Agreement shall not exceed two million dollars, except to the extent finally determined to have resulted from the willful misconduct or fraudulent behavior of Consultant relating to such services. No party, except to the extent finally determined to have resulted from the willful misconduct or fraudulent behavior of Consultant relating to such services, shall be liable for any loss profits, lost business opportunities, lost data, consequential, special, incidental, exemplary or punitive damages, delays or interruptions arising out of or related to this Agreement even if the other party has been advised of the possibility of such damages. Any legal proceedings arising from or in conjunction with the services provided under this Agreement must be commenced within twenty-four (24) months after the delivery of the audit report relating to the services for which the action is brought, without consideration as to the time of discovery of any claim. Each party recognizes and agrees that the warranty disclaimers and liability and remedy limitations in this Agreement are material bargained for bases of this Agreement and that they have been taken into account and reflected in determining the consideration to be given by each party under this Agreement. The terms of this section 18 shall apply regardless of the nature of any claim asserted (including, but not limited to, contract, tort or any form of negligence, whether of the Municipality, Consultant or others), but these terms shall not apply to the extent finally determined to be contrary to the applicable law or regulation. These terms shall also continue to apply after any termination of this Agreement. Page 16, Section 26, is revised to read as follows: Each Municipality reserves the right to terminate their respective portion of their agreement, or any portion thereof, upon thirty (30) days’ written notice. In case of such termination, Consultant shall be entitled to receive payment from the terminating Municipality for work completed to date in accordance with the terms and conditions of their agreement. Pages 16-17, Section 32, is revised to read as follows: The Consultant shall maintain for seven (7) years books, records, documents, and other evidence directly pertinent to any invoices issued under this Agreement, and shall make such information available to the Municipalities upon request. Consultant shall maintain working papers, records, reports, and other documents directly pertinent to the performance of the work and consistent with generally accepted accounting standards in accordance with the American Institute of Certified Public Accountants Professional Standards (collectively, “Work Papers”) in accordance with Section II.D (Special Provisions – Glenview Scope of Work), Section II.D (Special Provisions – Highland Park Scope of Work), and Section II.D (Special Provisions – Deerfield Scope of Work) of the RFP. Page 17, Par. 33 (new paragraph to read as follows): 33. CONSULTANT ENTITY Baker Tilly Virchow Krause, LLP, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English Company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. Baker Tilly Virchow Krause, LLP, is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly Virchow Krause, LLP, not any of the other member firms of Baker Tilly International has any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited. Special Provisions – Village of Glenview Scope of Work Page 24, Section II.D, is revised to read as follows: Working papers, records, documents, reports, and other documents directly pertinent to the performance of the work and consistent with generally accepted accounting standards in accordance with the American Institute of Certified Public Accountants Professional Standards (collectively, “Work Papers”) must be retained, at auditor’s expense, for a minimum of seven (7) years, unless the consultant is notified in writing by the Village of Glenview of the need to extend the retention period. Consultant will be required to make Work Papers available, upon request, to the following parties or their designees: 1. Representatives of the State of Illinois to the extent required by applicable law; 2. Auditors of entities of which the Village of Glenview is a sub-recipient of grant funds. In addition, the consultant shall reference Work Papers as needed to respond to the reasonable inquiries of the Village of Glenview, to the extent that doing so does not violate the consultant’s independence requirements under the AICPA Code of Conduct. Consultant shall also respond to the reasonable inquiries of successor auditors and shall allow successor auditors to review Work Papers from prior years’ audits. Special Provisions – City of Highland Park Scope of Work Page 30, Section II.D, is revised to read as follows: Working papers, records, reports, and other documents directly pertinent to the performance of the work and consistent with generally accepted accounting standards in accordance with the American Institute of Certified Public Accountants Professional Standards (collectively, “Work Papers”) must be retained, at auditor’s expense, for a minimum of seven (7) years, unless the consultant is notified in writing by the City of Highland Park of the need to extend the retention period. Consultant will be required to make Work Papers available, upon request, to the following parties or their designees: 1. Representatives of the State of Illinois to the extent required by applicable law; 2. Auditors of entities of which the City of Highland Park is a sub-recipient of grant funds. In addition, the consultant shall reference Work Papers as needed to respond to the reasonable inquiries of the City of Highland Park, to the extent that doing so does not violate the consultant’s independence requirements under the AICPA Code of Conduct. Consultant shall also respond to the reasonable inquiries of successor auditors and shall allow successor auditors to review Work Papers from prior year’s audits. Special Provisions – Village of Deerfield Scope of Work Page 35, Section II.D, is revised to read as follows: Working papers, records, reports, and other documents directly pertinent to the performance of the work and consistent with generally accepted accounting standards in accordance with the American Institute of Certified Public Accountants Professional Standards (collectively, “Work Papers”) must be retained, at auditor’s expense, for a minimum of seven (7) years, unless the consultant is notified in writing by the Village of Deerfield of the need to extend the retention period. Consultant will be required to make Work Papers available, upon request, to the following parties or their designees: 1. Representatives of the State of Illinois to the extent required by applicable law; 2. Auditors of entities of which the Village of Deerfield is a sub-recipient of grant funds. In addition, the consultant shall reference Work Papers as needed to respond to the reasonable inquiries of the Village of Deerfield, to the extent that doing so does not violate the consultant’s independence requirements under the AICPA Code of Conduct. Consultant shall also respond to the reasonable inquiries of successor auditors and shall allow successor auditors to review Work Papers from prior year’s audits. 11 EXHIBIT D Rate Schedule RFP Number 217019 Due: August 2, 2017, 2:00 PM Professional Auditing Services 6 SUBMISSION INFORMATION Village of Deerfield 850 Waukegan Road DUE DATE: August 2, 2017 Deerfield, IL 60015 TIME: 2:00 pm LOCATION: Village of Glenview REQUEST FOR PROPOSALS INFORMATION Company Name: ____________________________________ Address: __________________________________________ City, State, Zip Code: ________________________________ Contact Person: _________________________________________ PROFESSIONAL AUDITING SERVICES per the specifications identified herein Submit 1 original, 3 copies & 1 electronic copy (electronic copy can be a flash drive, CD or DVD – no e-mail) VILLAGE OF DEERFIELD – PRICING SHEET AUDIT SERVICES – ANNUAL NOT TO EXCEED AMOUNT Fiscal Year Ending 12.31.2017 12.31.2018 12.31.2019 12.31.2020 12.31.2021 Financial Statements (CAFR) $ $ $ $ $ Single Audit (if required) $ $ $ $ $ Annual Report for the State of Illinois Comptroller (if prepared) $ $ $ $ $ Deerfield Public Library Audit $ $ $ $ $ TOTAL PROPOSAL PRICE $ $ $ $ $ Baker Tilly Virchow Krause, LLP 1301 W. 22nd St., Suite 400 Oak Brook, IL 60523 Jason Coyle 30,550 4,500 1,200 5,400 41,650 31,470 4,640 1,200 5,560 42,870 32,410 4,780 1,200 5,730 44,120 33,380 4,920 1,200 5,900 45,400 34,380 5,070 1,200 6,080 46,730 REVISED