Financial Audit Services FY24

Purpose

NAICA is seeking proposals from qualified contractors to provide financial audit services for the organization. This document is a Request for Proposal (hereafter ‘RFP’) for the services described below and does not obligate NAICA to accept responses from eligible contractors. The RFP establishes the minimum requirements a bidder must meet, to be eligible for consideration as well as information to be included in the contractor’s bid response.

The selection of the successful contractor will be made based on NAICA’s evaluation and determination of the relative ability of each bidder to deliver quality services in a cost-effective manner.

Proposal Requirements

To be considered for this engagement, the audit firm must submit a comprehensive proposal that includes the following components:

1. 1. Firm Overview
      • Brief description of the audit firm, including history, expertise, and size.
      • Detailed experience in auditing nonprofit organizations, especially with NYC and NYS funding, private donations, financial consolidation, and HDFCs.
   2. Relevant Experience
      • Case studies or references from prior nonprofit clients, particularly those that received NYC and NYS funding and/or had affiliations with HDFCs.
      • Detailed examples of audits that included complex financial structures, such as multiple funding sources, affiliations, and consolidation.
   3. Audit Team
      • Resumes and qualifications of key personnel who will be assigned to the engagement, including relevant experience with nonprofit audits and the specific areas mentioned in this RFP.
      • Roles and responsibilities of each team member, ensuring the right mix of expertise.
   4. Audit Approach and Methodology
      • A detailed audit plan, including the approach, methods, and tools the firm will use to conduct the audit.
      • Description of the process for reviewing NYC and NYS funding, private donations, affiliations, and HDFC operations.
      • Proposed timeline for completing the audit, including key milestones and deadlines.
   5. Cost Proposal
      • A detailed breakdown of the audit fees, including hourly rates, fixed costs, or other pricing models.
      • Any additional fees or costs related to the audit services, if applicable.
   6. References
      • At least three references from nonprofit organizations or entities similar to ours, specifically those that have involved NYC and NYS funding, private donations, financial consolidation, and HDFCs.

Evaluation Criteria

Proposals will be evaluated based on the following criteria:

• Expertise and experience in auditing nonprofit organizations, particularly with NYC and NYS funding, private donations, financial consolidation, and HDFCs.
• Approach and methodology for conducting the audit, including the ability to ensure compliance with applicable regulations.
• Cost-effectiveness and transparency of the pricing structure.
• Reputation and reliability of the audit firm, based on references and previous experience.
• Ability to meet the proposed timeline and provide clear, actionable recommendations.

NAICA is not obligated to accept the lowest bid and reserves the right to reject any and all bids or amend the scope of the project. All bidders must be duly licensed or otherwise have the ability to perform work in accordance with all governing local authorities and to the satisfaction of those authorities.

Conflicts of Interest

Subcontractor(s) must divulge any known potential conflicts of interest to include all known relations or associations by anyone employed or having an interest in the contracted company submitting any bid as follows:

• Relations/Associations to any NAICA Board member.
• Relations/Associations to any Senior or Executive employee of NAICA.
• Relations/Associations to Directors employed by NAICA.
• Vested personal or financial interest in NAICA or to any company organization that does business with NAICA and which may be construed as a conflict of interest.

Scope of Services

The selected audit firm will be responsible for providing comprehensive audit services, including but not limited to the following areas:

1. Nonprofit Operations
   • Audit of financial statements to ensure compliance with nonprofit accounting standards (GAAP, FASB, etc.).
   • Evaluation of internal controls and governance processes to ensure compliance with nonprofit regulations and best practices.
   • Verification of tax-exempt status and compliance with IRS regulations, including the filing of Form 990.
2. NYC and NYS Funding
   • Review and audit of all funding received from New York City (NYC) and New York State (NYS), including grants, contracts, and other public funding sources.
   • Examination of compliance with applicable NYC and NYS regulations, grant terms, and reporting requirements.
   • Ensure proper documentation, utilization, and financial reporting for NYC and NYS-funded programs.
3.  Private Donations and Contributions
   • Audit of private donations, contributions, and fundraising efforts, ensuring proper reporting and accounting for these sources of revenue.
   • Review of donor restrictions and conditions on funds, ensuring that the organization adheres to these requirements in its financial practices.
   • Evaluation of fundraising compliance with relevant laws, including IRS regulations governing charitable giving.
4.  Financial Consolidation
   • Consolidation of the financial statements for the parent organization and any affiliated entities.
   • Review of intercompany transactions, adjustments, and elimination entries in accordance with appropriate accounting standards.
   • Ensure the proper consolidation of financials in compliance with applicable rules and guidelines.
5.  Affiliations
   • Audit of financial and operational relationships with affiliated entities, ensuring compliance with reporting and governance standards.
   • Evaluation of transparency and consistency in the financial practices of affiliated organizations.
6. Housing Development Fund Corporations (HDFCs)
   • Audit of financial statements for any affiliated Housing Development Fund Corporations (HDFCs).
   • Review of HDFC operations, including compliance with housing regulations, revenue recognition, expenses, and management of public funds.
   • Ensure proper accounting for housing-related activities in compliance with local, state, and federal regulations.
7. General Audit Services
   • Provide an independent audit opinion on the organization’s financial statements for the fiscal year.
   • Offer recommendations for improving internal controls, financial reporting, and operational efficiency.
   • Identify areas of risk and provide solutions to mitigate financial and operational risks

Contract Award and Terms

The selected firm will enter a formal contract with NAICA to perform the financial audit services outlined in this RFP. The initial term of the contract will cover fiscal year 2024, with the possibility of extending the contract for subsequent years based on mutual agreement and performance.

Confidentiality and Compliance

The audit firm must ensure that all financial and operational information related to the organization remains confidential. The firm must also adhere to all applicable local, state, and federal laws and regulations related to nonprofit organizations, housing entities (HDFCs), and the specific funding sources detailed in this RFP.

We look forward to receiving your proposal and thank you for your interest in partnering with NAICA to support our financial integrity and compliance.