Auditing Services Addendum 1

Agency:	The Military College of South Carolina
State:	South Carolina
Type of Government:	State & Local
NAICS Category:	541219 - Other Accounting Services
Posted Date:	Feb 2, 2024
Due Date:	Feb 22, 2024
Solicitation No:	RFP 24012-JM
Bid Source:	Please Login to View Page
Contact information:	Please Login to View Page
Bid Documents:	Please Login to View Page

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Solicitation Number RFP 24012-JM

Addendum # 1

Date Issued 02/02/2024

Procurement Officer Jeff Molloy

Phone 843-953-6873

E-Mail Address procurement@citadel.edu

SOLICITATION TITLE: RFP 24012-JM Auditing Services

TYPE OF ADDENDUM:

☒ Questions posed regarding the Solicitation and their respective answers by The Citadel.

Questions:

1. What were the fees for the College audit, The Citadel Trust Audit, the 990 and the NCAA AUPs for

fiscal year 2022 and 2023?

A. Fees for FY 2023:

a. College:

i. $57,250 Engagement Letter Fee

ii. $3,450 GASB 96 Adoption

iii. $17,700 Additional Billings for financial statement drafting and formatting assistance

b. Trust:

i. $25,500 Engagement Letter Fee

ii. $2,250 Trust Form 990-T

c. Other:

i. $11,150 NCAA AUP FY 2023 Engagement Letter Fee

B. Fees for FY 2022:

a. College:

i. $54,000 Engagement Letter Fee

ii. $8,000 Additional billing for additional major program test work

iii. $17,700 Additional billings for financial statement drafting and formatting assistance

b. Trust:

i. $24,000 Engagement Letter Fee

ii. $3,150 Trust Form 990-T

c. Other

i. $10,500 NCAA AUP FY 2023 Engagement Letter Fee

2. In The Citadel’s 2023 financial statements, it is disclosed that the Citadel Trust also issues its own

financial statements. Would the successful auditor be preparing the College’s and the Trusts financial

statements? Or would the financial statements be prepared by the College and or Trust?

A. The auditor will need to prepare stand-alone financial statements for both The Citadel and The Citadel

Trust.

3. Could we get a copy of the separately issued Trust financial statements as of June 30, 2023?

A. The awarded vendor may request a copy once the award and protest period are complete,

4. Would the College be open to starting preliminary compliance testing in April/May, primarily the single

audits?

A. Yes

5. Typically how may weeks do the auditors schedule for fieldwork and when is that typically scheduled?

A. Student financial aid and some planning is performed on site and remotely, usually in May or June with

wrap up occurring during or after the financial statement audit. All other audit work is completed

remotely. Refer to question 7 for actual hours spent during the last two fiscal years.

6. Would it be okay if we emailed the electronic copy or sent it by another secure means in addition to

mailing the hard copies?

A. The required number of hard copies and usb are required. Please refer to bid instructions on pg 1.

7. In an effort to understand the level of effort exerted by the current auditing firm, may we be provided

with:

a. Hours billed

b. Prior year fees

c. How did the fees charged compare to the fees quoted in the proposal?

A. Total financial statement audit hours for the College & Trust (not tracked separately)

a. FY 2023 – 710.80 hours

b. FY 2022 – 714.70 hours

B. Total NCAA AUP hours

a. FY 2023 – 70 hours

b. FY 2022 – 69 hours

C. See response to question 1 for prior year fees

D. Actual hours were more than proposed hours

8. Can you provide a schedule of auditors in the field from the prior year including number of people and

timing (for example, 4 people for 4 weeks in June and 6 people for 8 weeks in September and

October)? Please also comment on the timing of the single audit and NCAA testing, if performed at a

later date.

A. Student financial aid and some planning is performed on site and remotely, usually in May or June with

wrap up occurring during or after the financial statement audit. Year-end is performed starting in early-

August and throughout September. NCAA AUP is done in the November/December timeframe.

B. The financial statement audit and single audit team consists of a partner, second reviewer, manager,

senior, and two to three staff members. The NCAA AUP team consists of a partner, second reviewer,

manager, and a senior.

9. In the past, has there been delays in the readiness of any information and if so, was there an impact on

the overall timing of the audit?

A. Information is provided timely to the audit team. The only delays we encounter are the preliminary

and final investment statements from our investment managers because of level 3 investments. When

there have been delays in readiness, the College and its auditors have worked together to meet the

State’s October 1 deadline.

10. Are you satisfied with the current auditors (a) timeliness (b) pro-activeness on communications (c)

involvement outside of the audit process and (d) value they provide to your organization?

A. Yes to a), b), c), and d)

11. Has there been any disagreement with the current auditor firm? If yes, please provide some

background on the issue.

A. No

12. Has there been any untimely (not retirement related) resignations of management level

A. No.

13. Has the Citadel investigated a fraud in the last two years?

A. No

14. What are the two most significant issues facing the Citadel in the next two years?

A. Enrollment cliff and the economic impacts to operations.

15. Describe any relationships with third party service providers used by the entity that may have an

impact on the accounting or financial reporting of the entity (i.e. Actuaries, etc).

A. No third-party providers offer accounting support

16. Are there any improvements you would like to see in the audit process?

A. We are satisfied with our current audit process

17. Are there any significant changes in operations in the current year vs. the prior year including changes

in policies and procedures, personnel, or the reporting entity?

A. No significant changes year over year.

18. In prior years, have there been any delays in the audit due to delays in receiving information from third

parties or other reasons?

A. Information is provided timely to the audit team. The only delays we encounter are the preliminary

and final investment statements from our investment managers because of level 3 investments. When

there have been delays in readiness, the College and its auditors have worked together to meet the

State’s October 1 deadline.

19. Are there any significant regulatory or legal issues facing the Citadel?

A. No

20. Have there been any recent audits from the Department of Education, State auditors, IRS or other

sources?

A. No

21. May we be provided with copies of any management letters, if issued, in FY23?

A. There are none available.

22. Can you provide the mail pickup schedule from on-campus US Postal service to the Procurement

Services Department so we can ensure timely delivery of the proposal? Is this specific to items sent via

USPS or would another mail delivery service be preferred to ensure timely delivery?

A. Citadel Post Office hours are Monday through Friday 8:30 a.m. - 4 p.m. Hand delivering your bid to the

procurement office is the surest way to be sure your bid is received. Please refer to the mail pick-up

reference on pg. 13. Bids not received in the procurement office prior to the deadline will be rejected.

23. As it relates to the Fee for Consent to the Use of Audit Report in the Official Document for Revenue

Bonds- What is the extent of Auditor involvement in this process? Should a fee be provided for this

work? There is no line item earmarked in the fee schedule.

A. Auditor involvement was limited.

B. No, please refer to Lot 5, and change in Scope of Work and Price Schedule. Add additional response to

question (highlighted).

24. As it relates to the request for assistance with Higher Education Financial and Accounting Issues- the

RFP indicates this is referenced as Lot 3 but Lot 3 is identified as tax services. Should we create a new

lot or what is the best approach to pricing for these services?

C. No, if any additional work is required The Citadel will pay on an as needed basis. Please refer to Lot 5,

and change in Scope of Work and Price Schedule

25. Can you clarify the following statement as there is no part B listed in Section III “Any proposal which

does not include all the required statements and affirmations called for in Section III, part B will

automatically be rejected as not being responsive.

A. Comment removed please refer to change in Scope of work and revised price proposal.

26. Price Schedule. May additional lines be added within a lot as long as we maintain the presentation of a

total All Inclusive Fee?

A. No

27. Would it be okay if we emailed the electronic copy or sent it by another secure means in addition to

mailing the hard copies?

A. No, a usb must be provided as requested.

☒ Other Change: Bid Submission Date and Award Date

Bid Submission date has been moved to: Thursday, February 15, 2024

Award date has been moved to: Thursday February 22, 2024

☒ Change or clarification to the Solicitation’s specifications, requirements, or scope of work and price

schedule.

Scope of Work and Price Schedule are modified as follows:

III. SCOPE OF WORK/SPECIFICATIONS

The Citadel is seeking a qualified Accounting Firm to prepare Financial Audit Documents for The Citadel and The Citadel

Trust for an initial one (1) year period and four (4) optional one (1) yearly renewal periods not to exceed five years.

Nature of Services Required

Each proposal must address itself to providing the following services:

Financial and Compliance Audits – Each proposal must address itself to the conduct of an audit and expression of an opinion

upon The Citadel (the “College”) and The Citadel Trust (TCT) financial statements for the years ended June 30, 2024, 2025,

2026, 2027, and 2028. The proposal must address itself to the conduct of an audit performed in accordance with auditing

standards generally accepted in the United States of America, the provisions of Government Auditing Standards issued by

the Comptroller General of the United States, and the audit requirements of U.S. Code of Federal Regulations, Title 2, part

200, Subpart F, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

(“2CFR200”). The audit must include audit procedures to ensure compliance with State laws, rules and regulations that, if

not followed, could materially affect the basic financial statements.

National Collegiate Athletic Association (NCAA) Agreed-Upon Procedures – Each proposal must address itself to the

conduct of the NCAA required annual agreed-upon procedures reporting all applicable revenues, expenses and capital

expenditures for or on behalf of a member institution’s intercollegiate athletics programs, including those by any affiliated

or outside organization, agency or group or individuals for the years ending June 30, 2024, 2025, 2026, 2027, and 2028.

The NCAA financial reporting, including any requirements of the Equity in Athletics Disclosure Act (EADA), must

comply with NCAA legislation mandated under provisions of the NCAA Bylaw 3.2.4.15 (Operating and Capital Financial

Data Report).

Referenced as Lot 4 on Price Schedule

Fee for Consent to the Use of Audit Report in the Official Document for Revenue Bonds – The Citadel may include the

audited financial statements in documents issued in connection with the issuance of revenue bonds. The Auditor shall

cooperate in all aspects to facilitate inclusion of the financial statements, and not place an undue burden, demand, or restriction

in incorporating the financial statements in these documents.

Fee for the Preparation of The Citadel Trust Federal 990/990-T and South Carolina state returns.

Assistance with Higher Education Financial and Accounting Issues – Each proposal must address itself to the following

services. Referenced as Lot 3 on Price Schedule

• Additional auditing or accounting services either to supplement audit services or due to a material change in the

scope of work required services;

• Assistance in reviewing policy and presentation issues related to GASB pronouncements;

• Assistance with federal and related indirect cost proposals;

• Assistance in tax issues for higher education institutions;

• Assistance in bond issues topics;

• Assistance in identifying and implementing best business practices for higher education institutions; and

• Other consulting services offered to higher education institutions.

The successful offeror may provide additional professional services to address areas of special emphasis defined by The

Citadel. Optional professional services must be specified on an hourly rate by staffing and skill level.

A formal entrance conference will be held annually to review audit objectives and strategies, current year considerations, the

impact of new accounting and auditing developments, the coordination of effort between audit teams, and any changes in the

State deadlines.

The Citadel is included in the statewide GAAP financial statements for the State of South Carolina. It is of extreme

importance, therefore, that you meet the preliminary draft and final report delivery dates set out in this RFP.

You must deliver to the Associate Vice President – Finance & Business, no later than 5:00 p.m. on the dates specified in the

“Time Considerations and Requirements” section of this RFP, the final audit report. A formal exit conference is to be held

with the appropriate Citadel representatives. The Citadel is to be given an opportunity to provide a written response to any

internal control comments and to any findings of noncompliance. Responses will be included in the formal communications

document when it is issued.

Auditing Services Addendum 1

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See Also

Solicitation Number	Description	Issue Date	Due Date
RFP 24012-JM	Auditing Services Addendum 1	February 2, 2024	February 22, 2024