Fayette County Public Schools Sealed Solicitation

Title: Audit Services

Deadline: 2/28/2025 2:00 PM   (UTC-05:00) Eastern Time (US & Canada)

Status: Awarded

Solicitation Number: 12-25

Description:

      The proposal shall address three (3) activities, (a) financial audit (school and District wide), (b) management review and (c) ancillary services. 

A) The initial audit shall be for FY ending June 30, 2025. It shall be conducted in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, provisions of Office of Management Budget Circular 2CFR 200 Single Audit, Audits of State and Local Governments and auditing requirements prescribed by the Kentucky State Committee for School District Audits in Procedures for Auditing Local School Districts’ Fiscal Records.

The scope of the audit shall include funds referred to above, school activity funds in elementary, middle and senior high schools and completion of the Schedule of Federal Financial Assistance. Two (2) separate management letters shall be rendered: one (1) for The Board’s accounts and one (1) for school activity accounts as a group. The School Activity Audit’s management letter shall include a compilation in matrix format for errors detected, with error type on one axis and school location on the other.

B) Other ancillary accounting services will be required from time to time to be compensated separately outside the scope of the main audit. An example of such an ancillary accounting service is for advice on compliance with regulatory agencies, meeting GASB pronouncement requirements, strengthening internal controls and assistance with creation of financial statements, NOTES to comply with GASB pronouncements, and Management Discussion & Analysis (MD&A).  


Documents:

Documents as of 2/3/2025
RFP_12_25_Audit_Services.pdf
Addition 1

Posted: 4/29/2025

Type of Addition: Award Information

Overview: Awarded to LBMC

Documents:

Question 1

Posted: 2/12/2025

Question: Is the audit fieldwork completed onsite or virtual? Were all schools tested for activity fund testing or were some tested and others analytically tested? Are groupings provided for school activity fund accounts (general, instruction, special events, non-profit)? How is inventory spaced out, is a majority of inventory at one location?

Response: Is the audit fieldwork completed onsite or virtual? Both. It requires onsite work but some of it is virtual. Were all schools tested for activity fund testing or were some tested and others analytically tested? All schools are done throughout the year through either internal audit office or part of the external audit. In the past approximately 18 to 20 schools done annually. With all being done within a 3 year period externally, but all are done more frequently with the internal audit office. Are groupings provided for school activity fund accounts (general, instruction, special events, non-profit)? School activity funds have accounting structures that indicates the category of expenses and revenues. How is inventory spaced out, is a majority of inventory at one location? Fixed asset inventory is done within every 2 years with elementary done one year and middle and high done the 2nd year. We do this to assure compliance with grants omb circular 2CFR200 that requires all grant inventory to be done at least every 2 years. Thus with this process we do inventory of all locations within an every 2 year period.

Question 2

Posted: 2/14/2025

Question: Thanks for your response. Follow up to the inventory question response – looks like this response was for fixed asset inventory and I was referring to food/cafeteria inventory of $2.5M on the FY 2024 statements. Were there inventory observations held for the FY 2024 audit? If not, how is the inventory audited?

Response: Each operational department including food services is responsible for doing an annual consumable inventory and providing those documents to Finance. We have the documents and provide it to the auditors. How it is actually confirmed would be the auditors process.

Question 3

Posted: 2/14/2025

Question: The first bullet outlining the required order of submissions on page 23 of the RFP appears to ask for the entire 66 pages of the RFP. Does FCPS want all 66 pages of the RFP or just the pages that require signatures and information? If FCPS wants all 66 pages, should the pages that require signatures and information be completed for this requirement, just completed in the Addenda bullet, or completed in both requirements?

Response: All 66 pages completed with signatures.

Question 4

Posted: 2/14/2025

Question: The Contact and Requirements section of the RFP (Pages 30-36) indicates it is for the Fiscal Year 2022-2023. Is there an updated version of the Contract and Requirements, or are they still valid?

Response: The requirements change annually. What was in the RFP is an example of the requirements. New requirements are sent to districts in May of every year.

Question 5

Posted: 2/14/2025

Question: The RFP appears to have a conflicting order for the requirement listed in item #3 on page 23 of the RFP. The third bullet asks for “Response to each of 8 evaluation criteria, and the fourth bullet states that a list of items (Addenda and Forms) be “signed and inserted immediately following the Table of Contents.” The Table of Contents is identified as the second bullet. Should the Addenda and Forms be immediately following the TOC or after the response to the evaluation criteria?

Response: After response to the evaluation criteria

Question 6

Posted: 2/14/2025

Question: The “Cost Schedule Form” included in the RFP asks vendors to “Please provide the following information regarding estimated hours, hourly rates, and total.” The form only appears to include lines for totals and a single line for hourly rates for additional services. Does FCPS want vendors to provide all the requested information on the form or only provide amounts for the line items on the form?

Response: Provide all cost and then a total combined cost.

Question 7

Posted: 2/14/2025

Question: The final bullet outlining the required order of submissions on page 23 asks for “Company Profile, Organizational Chart, Principals Roster, & Project Assignments and Resumes, etc.” Much of this information will be provided in response to the “8 evaluation criteria items” asked for in bullet number three of the requirements. Should vendors provide duplicate responses for this bullet, or can they reference the response to the criteria section?

Response: They can reference the other response to avoid duplication.

Question 8

Posted: 2/14/2025

Question: If vendors have comments, suggestions, or exceptions regarding the General Terms and Conditions or the RFP document, where should they include them in their proposal?

Response: Please add them to the addenda section.

Question 9

Posted: 2/14/2025

Question: Could you please provide a copy of the written management letter (SAS 115) and SAS 114 communications from the predecessor auditor for the 2024 audit?

Response: Please email matthew.moore@fayette.kyschools.us and it can be provided.

Question 10

Posted: 2/14/2025

Question: Historically, has the external auditor used IT audit procedures to gain IT reliance? What are management’s expectations for use of IT auditors as part of the external audit process?

Response: It is our understanding the auditors determine the process. The expectation is that Cybersecurity and other related IT functions within the scope will be tested.

Question 11

Posted: 2/14/2025

Question: What is management’s plan regarding the implementation of GASB Statement No. 101, Compensated Absences, and GASB Statement No. 102, Certain Risk Disclosures, effective for the year ended June 30, 2025? What assistance is expected from the external auditor in the adoption of the new standards?

Response: As stated in the RFP. The expectation is that the external auditor chosen will assist with all GASB implementation and presentation thereof.

Question 12

Posted: 2/14/2025

Question: Does the FCPS Internal Audit function provide any audit assistance to external auditors? If yes, please provide number of hours and scope of work performed in most recent audit year.

Response: Yes and No. yes from the standpoint that all internal audits during the year are shared with the external auditors. No from the standpoint that the internal auditor assist with any of the external auditing.

Question 13

Posted: 2/14/2025

Question: Have there been any significant or unusual transactions, contingencies or litigation since June 30, 2024 that may impact the scope of the fiscal year 2025 audit engagement?

Response: NO. This was reported and in the 2024 audit report.

Question 14

Posted: 2/14/2025

Question: Are there any other expected regulatory financial, operation, or compliance audits (state, local, federal) covering similar audit periods?

Response: None at this time

Question 15

Posted: 2/14/2025

Question: Cost Schedule – Can you confirm the cost of the Single Audit should be included in Fund 2 (Special Revenue – Federal/State/Local Grants)? Typically, the Single Audit scope is impacted by the number of major programs subject to audit. How has this variability been addressed in the past related to scope and fee? What should we assume for purposes of proposing cost?

Response: Cost Schedule – Can you confirm the cost of the Single Audit should be included in Fund 2 (Special Revenue – Federal/State/Local Grants)? Typically, the Single Audit scope is impacted by the number of major programs subject to audit. Fund 2 is where the single audit grants are kept. Yes. How has this variability been addressed in the past related to scope and fee? What should we assume for purposes of proposing cost? The cost structure is outlined in the RFP. Respond accordingly.

Posted: 4/29/2025

Type of Addition: Award Information

Overview: Awarded to LBMC

Documents:

Posted: 2/12/2025

Question: Is the audit fieldwork completed onsite or virtual? Were all schools tested for activity fund testing or were some tested and others analytically tested? Are groupings provided for school activity fund accounts (general, instruction, special events, non-profit)? How is inventory spaced out, is a majority of inventory at one location?

Response: Is the audit fieldwork completed onsite or virtual? Both. It requires onsite work but some of it is virtual. Were all schools tested for activity fund testing or were some tested and others analytically tested? All schools are done throughout the year through either internal audit office or part of the external audit. In the past approximately 18 to 20 schools done annually. With all being done within a 3 year period externally, but all are done more frequently with the internal audit office. Are groupings provided for school activity fund accounts (general, instruction, special events, non-profit)? School activity funds have accounting structures that indicates the category of expenses and revenues. How is inventory spaced out, is a majority of inventory at one location? Fixed asset inventory is done within every 2 years with elementary done one year and middle and high done the 2nd year. We do this to assure compliance with grants omb circular 2CFR200 that requires all grant inventory to be done at least every 2 years. Thus with this process we do inventory of all locations within an every 2 year period.

Posted: 2/14/2025

Question: Thanks for your response. Follow up to the inventory question response – looks like this response was for fixed asset inventory and I was referring to food/cafeteria inventory of $2.5M on the FY 2024 statements. Were there inventory observations held for the FY 2024 audit? If not, how is the inventory audited?

Response: Each operational department including food services is responsible for doing an annual consumable inventory and providing those documents to Finance. We have the documents and provide it to the auditors. How it is actually confirmed would be the auditors process.

Posted: 2/14/2025

Question: The first bullet outlining the required order of submissions on page 23 of the RFP appears to ask for the entire 66 pages of the RFP. Does FCPS want all 66 pages of the RFP or just the pages that require signatures and information? If FCPS wants all 66 pages, should the pages that require signatures and information be completed for this requirement, just completed in the Addenda bullet, or completed in both requirements?

Response: All 66 pages completed with signatures.

Posted: 2/14/2025

Question: The Contact and Requirements section of the RFP (Pages 30-36) indicates it is for the Fiscal Year 2022-2023. Is there an updated version of the Contract and Requirements, or are they still valid?

Response: The requirements change annually. What was in the RFP is an example of the requirements. New requirements are sent to districts in May of every year.

Posted: 2/14/2025

Question: The RFP appears to have a conflicting order for the requirement listed in item #3 on page 23 of the RFP. The third bullet asks for “Response to each of 8 evaluation criteria, and the fourth bullet states that a list of items (Addenda and Forms) be “signed and inserted immediately following the Table of Contents.” The Table of Contents is identified as the second bullet. Should the Addenda and Forms be immediately following the TOC or after the response to the evaluation criteria?

Response: After response to the evaluation criteria

Posted: 2/14/2025

Question: The “Cost Schedule Form” included in the RFP asks vendors to “Please provide the following information regarding estimated hours, hourly rates, and total.” The form only appears to include lines for totals and a single line for hourly rates for additional services. Does FCPS want vendors to provide all the requested information on the form or only provide amounts for the line items on the form?

Response: Provide all cost and then a total combined cost.

Posted: 2/14/2025

Question: The final bullet outlining the required order of submissions on page 23 asks for “Company Profile, Organizational Chart, Principals Roster, & Project Assignments and Resumes, etc.” Much of this information will be provided in response to the “8 evaluation criteria items” asked for in bullet number three of the requirements. Should vendors provide duplicate responses for this bullet, or can they reference the response to the criteria section?

Response: They can reference the other response to avoid duplication.

Posted: 2/14/2025

Question: If vendors have comments, suggestions, or exceptions regarding the General Terms and Conditions or the RFP document, where should they include them in their proposal?

Response: Please add them to the addenda section.

Posted: 2/14/2025

Question: Could you please provide a copy of the written management letter (SAS 115) and SAS 114 communications from the predecessor auditor for the 2024 audit?

Response: Please email matthew.moore@fayette.kyschools.us and it can be provided.

Posted: 2/14/2025

Question: Historically, has the external auditor used IT audit procedures to gain IT reliance? What are management’s expectations for use of IT auditors as part of the external audit process?

Response: It is our understanding the auditors determine the process. The expectation is that Cybersecurity and other related IT functions within the scope will be tested.

Posted: 2/14/2025

Question: What is management’s plan regarding the implementation of GASB Statement No. 101, Compensated Absences, and GASB Statement No. 102, Certain Risk Disclosures, effective for the year ended June 30, 2025? What assistance is expected from the external auditor in the adoption of the new standards?

Response: As stated in the RFP. The expectation is that the external auditor chosen will assist with all GASB implementation and presentation thereof.

Posted: 2/14/2025

Question: Does the FCPS Internal Audit function provide any audit assistance to external auditors? If yes, please provide number of hours and scope of work performed in most recent audit year.

Response: Yes and No. yes from the standpoint that all internal audits during the year are shared with the external auditors. No from the standpoint that the internal auditor assist with any of the external auditing.

Posted: 2/14/2025

Question: Have there been any significant or unusual transactions, contingencies or litigation since June 30, 2024 that may impact the scope of the fiscal year 2025 audit engagement?

Response: NO. This was reported and in the 2024 audit report.

Posted: 2/14/2025

Question: Are there any other expected regulatory financial, operation, or compliance audits (state, local, federal) covering similar audit periods?

Response: None at this time

Posted: 2/14/2025

Question: Cost Schedule – Can you confirm the cost of the Single Audit should be included in Fund 2 (Special Revenue – Federal/State/Local Grants)? Typically, the Single Audit scope is impacted by the number of major programs subject to audit. How has this variability been addressed in the past related to scope and fee? What should we assume for purposes of proposing cost?

Response: Cost Schedule – Can you confirm the cost of the Single Audit should be included in Fund 2 (Special Revenue – Federal/State/Local Grants)? Typically, the Single Audit scope is impacted by the number of major programs subject to audit. Fund 2 is where the single audit grants are kept. Yes. How has this variability been addressed in the past related to scope and fee? What should we assume for purposes of proposing cost? The cost structure is outlined in the RFP. Respond accordingly.