Knoxville's Community Development Corporation Sealed Solicitation

Title: Auditing and Tax Services for Limited Partnerships

Deadline: 5/31/2025 11:00 AM   (UTC-05:00) Eastern Time (US & Canada)

Status: In Review

Solicitation Number: Q2518

Description: KCDC will receive UPLOADED proposals for Auditing and Tax Services for Limited Partnerships as detailed in the solicitation document. Notes include:


1.  Upload your response as ONE document.
2.  Use KCDC forms and response pages.
3.  As a convenience to proposers, KCDC has also provided the MS Word version of the response pages.
4.  Submit any questions only through the platform.


Documents:

Documents as of 5/13/2025
Auditing_Services_for_Limited_Partnerships_Q2518.pdf
Auditing_Services_for_Limited_Partnerships_Q2518_Response_Pages.docx
Addition 1

Posted: 5/16/2025

Type of Addition: Addendum

Documents:

Addition 2

Posted: 6/2/2025

Type of Addition: In Review

Overview: KCDC received six proposals and the review is underway.

Question 1

Posted: 5/13/2025

Question: Does the proposal require submission exclusively by a Certified Public Accounting (CPA) firm, or would an individual currently studying for the Certified Internal Auditor (CIA) exam be eligible to apply?

Response: To submit a successful proposal, someone on the team must have and maintain a CPA.

Question 2

Posted: 5/15/2025

Question: Do the LP's use any third party management companies or are all the properties managed in-house?

Response: KCDC serves as the management company for all the properties.

Question 3

Posted: 5/15/2025

Question: Are the LP deals 9% or 4% or a mix?

Response: They are a mix.

Question 4

Posted: 5/15/2025

Question: How many of the LP audits fall under HUD for profit compliance requirements?

Response: All would fall under HUD for profit compliance requirements.

Question 5

Posted: 5/15/2025

Question: Can you please provide an understanding as to why these services are out to bid/RFP?

Response: KCDC needs to exercise proper due diligence and it is time to solicit new proposals for this service to be responsible. Additionally since KCDC last solicited proposals for this service, many additional tax credit properties have been added to KCDC’s portfolio so it is prudent to solicit new proposals.

Question 6

Posted: 5/15/2025

Question: Is there one investor / syndicator or are there a variety?

Response: Each tax credit property has one investor partner.

Question 7

Posted: 5/15/2025

Question: Are there any other tax incentives mixed in with thee LITHCs (ie – energy, historic)?

Response: None at this time.

Question 8

Posted: 5/15/2025

Question: Is there a preference of on-site vs remote work?

Response: No. Open to either option

Question 9

Posted: 5/15/2025

Question: Under General Information, question 1(l), it notes that the Partnership audit reports will be available as a supplement. Can you please provide a link to or upload the respective audit reports?

Response: The partnerships are presented a discretely presented component units in the KCDC audit on KCDC's website and now posted with this RFP. See pages 53-56.

Question 10

Posted: 5/19/2025

Question: What were the fees paid for these audit and tax services for each LP for the most recent year?

Response: Information not currently available.

Question 11

Posted: 5/20/2025

Question: 1. Can you please provide any prior year findings? 2. Do any of the investor limited partners have negative tax capital in any of the entities or have there been any special allocations that have been made in the tax returns in accordance with the partnership agreements? 3. Can you please provide the prior year tax returns?

Response: 1) No findings from prior years. 2) Yes. One of our LPs has negative equity capital on the tax return. 3) Tax returns can be provided upon selection.

Question 12

Posted: 5/20/2025

Question: On Solicitation Document G, it states, "Complete this form and submit it separately as dedicated earlier in this document." Earlier in the document it states to "Upload your information in the order indicated below as ONE document uploaded as detailed on the cover page. Can you please clarify if you would like firms to submit Solicitation Document G separately and provide two separate uploads or just include it with the other documents?

Response: Thank you for the question. This was KCDC's oversight. Please submit this form with your main document so that there is ONE uploaded document.

Question 13

Posted: 5/20/2025

Question: Can you provide access to the individual audit reports and tax filings?

Response: KCDC can provide individual audit reports and tax filings for each property upon selection.

Question 14

Posted: 5/20/2025

Question: Item 17 Deliverables Section notes Februrary 28th as the engagement completion date; however the Item 22 timelines notes a completion date of March 31st. Can you confirm which is the correct date?

Response: For February 28th, the selected party would be required to complete the audit process's initial engagement. This would mean that they would have the required items in hand and an initial draft audit prepared for review. For March 31st, the selected party would be required to have the audit process completed as well as the tax returns in process, according to the associated LPA.

Question 15

Posted: 5/20/2025

Question: Will the audits be awarded to one firm or could the proposal award be split?

Response: As noted in the solicitation document, KCDC may award to more than one firm.

Question 16

Posted: 5/20/2025

Question: Our firm is a licensed Pennsylvania CPA firm performing work in several states with the required experience to perform these services. Per current standards from the National Association of State Boards of Accountancy, https://cpamobility.nasba.org/, there is mobility to practice in Tennessee as a Pennsylvania CPA. Will this mobility allow us to meet your license requirement?

Response: Please consult your current state licensing board as well as AICPA for the requirements to practice in the state of Tennessee.

Posted: 5/16/2025

Type of Addition: Addendum

Documents:

Posted: 6/2/2025

Type of Addition: In Review

Overview: KCDC received six proposals and the review is underway.

Posted: 5/13/2025

Question: Does the proposal require submission exclusively by a Certified Public Accounting (CPA) firm, or would an individual currently studying for the Certified Internal Auditor (CIA) exam be eligible to apply?

Response: To submit a successful proposal, someone on the team must have and maintain a CPA.

Posted: 5/15/2025

Question: Do the LP's use any third party management companies or are all the properties managed in-house?

Response: KCDC serves as the management company for all the properties.

Posted: 5/15/2025

Question: Are the LP deals 9% or 4% or a mix?

Response: They are a mix.

Posted: 5/15/2025

Question: How many of the LP audits fall under HUD for profit compliance requirements?

Response: All would fall under HUD for profit compliance requirements.

Posted: 5/15/2025

Question: Can you please provide an understanding as to why these services are out to bid/RFP?

Response: KCDC needs to exercise proper due diligence and it is time to solicit new proposals for this service to be responsible. Additionally since KCDC last solicited proposals for this service, many additional tax credit properties have been added to KCDC’s portfolio so it is prudent to solicit new proposals.

Posted: 5/15/2025

Question: Is there one investor / syndicator or are there a variety?

Response: Each tax credit property has one investor partner.

Posted: 5/15/2025

Question: Are there any other tax incentives mixed in with thee LITHCs (ie – energy, historic)?

Response: None at this time.

Posted: 5/15/2025

Question: Is there a preference of on-site vs remote work?

Response: No. Open to either option

Posted: 5/15/2025

Question: Under General Information, question 1(l), it notes that the Partnership audit reports will be available as a supplement. Can you please provide a link to or upload the respective audit reports?

Response: The partnerships are presented a discretely presented component units in the KCDC audit on KCDC's website and now posted with this RFP. See pages 53-56.

Posted: 5/19/2025

Question: What were the fees paid for these audit and tax services for each LP for the most recent year?

Response: Information not currently available.

Posted: 5/20/2025

Question: 1. Can you please provide any prior year findings? 2. Do any of the investor limited partners have negative tax capital in any of the entities or have there been any special allocations that have been made in the tax returns in accordance with the partnership agreements? 3. Can you please provide the prior year tax returns?

Response: 1) No findings from prior years. 2) Yes. One of our LPs has negative equity capital on the tax return. 3) Tax returns can be provided upon selection.

Posted: 5/20/2025

Question: On Solicitation Document G, it states, "Complete this form and submit it separately as dedicated earlier in this document." Earlier in the document it states to "Upload your information in the order indicated below as ONE document uploaded as detailed on the cover page. Can you please clarify if you would like firms to submit Solicitation Document G separately and provide two separate uploads or just include it with the other documents?

Response: Thank you for the question. This was KCDC's oversight. Please submit this form with your main document so that there is ONE uploaded document.

Posted: 5/20/2025

Question: Can you provide access to the individual audit reports and tax filings?

Response: KCDC can provide individual audit reports and tax filings for each property upon selection.

Posted: 5/20/2025

Question: Item 17 Deliverables Section notes Februrary 28th as the engagement completion date; however the Item 22 timelines notes a completion date of March 31st. Can you confirm which is the correct date?

Response: For February 28th, the selected party would be required to complete the audit process's initial engagement. This would mean that they would have the required items in hand and an initial draft audit prepared for review. For March 31st, the selected party would be required to have the audit process completed as well as the tax returns in process, according to the associated LPA.

Posted: 5/20/2025

Question: Will the audits be awarded to one firm or could the proposal award be split?

Response: As noted in the solicitation document, KCDC may award to more than one firm.

Posted: 5/20/2025

Question: Our firm is a licensed Pennsylvania CPA firm performing work in several states with the required experience to perform these services. Per current standards from the National Association of State Boards of Accountancy, https://cpamobility.nasba.org/, there is mobility to practice in Tennessee as a Pennsylvania CPA. Will this mobility allow us to meet your license requirement?

Response: Please consult your current state licensing board as well as AICPA for the requirements to practice in the state of Tennessee.