Pre-Advertisement Notice for Airport Concessions Assessments

Airport Concessions Assessments - Agreed-Upon Procedures
(AUP) Engagements
1. Introduction
1.1 Purpose
The City of Atlanta Department of Aviation ("DOA"), owner and operator of
Hartsfield-Jackson Atlanta International Airport ("Airport"), is soliciting sealed bids
from qualified professional services firms to perform Agreed-Upon Procedures
("AUP") that assess gross receipts reported by Airport concessionaires. The
selected firm shall report factual findings only and shall not express an audit
opinion or assurance conclusion.
The purpose of these services is to provide the DOA with independent assessments
regarding the accuracy, completeness, and reliability of monthly gross receipts
reported by Airport concessionaires. The successful proponent shall randomly
select a minimum of sixty (60) concession loca(cid:415)ons each DOA fiscal year (July
through June) and perform specifically defined procedures to test six (6)
consecu(cid:415)ve months of reported gross receipts for each selected loca(cid:415)on.
1.2 Background
Hartsfield-Jackson Atlanta International Airport operates one of the nation's largest
and most diverse airport concessions programs. The concessions program includes
retail, food and beverage, and passenger service locations operating throughout
the atrium and seven concourses. Currently, there are approximately 394
concessions locations operating throughout the Airport.
Under the Concessions Program, the City of Atlanta Department of Avia(cid:415)on (DOA)
contracts with prime concessionaires to operate and manage groups of concession
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loca(cid:415)ons throughout Airport. Under these agreements, prime concessionaires are
responsible for the day-to-day opera(cid:415)on of mul(cid:415)ple retail, food and beverage, and
service concession and ensuring revenues are reported to DOA as per the
agreements.
2. Scope of Services
The selected Proponent shall randomly select a minimum of sixty (60) concession
locations per DOA fiscal year (July - June) to examine and test six (6) consecutive
months of reported gross receipts for each concession location.
2.1 Agreed-Upon Procedures Engagements
The Proponent shall perform Agreed-Upon Procedures ("AUP") engagements in
accordance with applicable professional standards. The Proponent shall execute
specifically defined procedures and report factual findings without expressing an
audit opinion or assurance conclusion.
2.2 Gross Receipts Assessments
The Proponent shall randomly select a minimum of sixty (60) concession locations
per DOA fiscal year and perform specifically defined procedures to test six (6)
consecutive months of gross receipts reported to the DOA to determine whether
concessionaires are accurately reporting monthly gross receipts in accordance
with:
Applicable concession agreements
Reporting requirements
Lease terms and conditions
Policies and procedures
2.3 Review Procedures
The Proponent's procedures may include, but are not limited to, the following:
Reviewing concession agreements and lease terms
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Reviewing monthly gross receipts reports
Comparing reported revenues to Point-of-Sale ("POS") transaction records
Reviewing sales receipts and supporting documentation
Reviewing Georgia sales and use tax reports
Comparing reported gross receipts to Georgia sales and use tax reports
Comparing sales records to bank deposits, where applicable
Reviewing voids, refunds, discounts, and promotional transactions
Conducting interviews with concessions personnel and Department of
Aviation staff
Reviewing policies and procedures for capturing and reporting gross receipts
Performing walkthroughs of concession locations to gain an understanding
of operations, if necessary
Identifying discrepancies, variances, and exceptions
2.4 Audit Program Development
The Proponent shall develop and document a standardized audit program that
identifies the testing methodology, sampling approach, review procedures,
documentation standards, and report protocols for each assessment.
The Proponent will maintain a standardized data request package with an
understanding that all data requested from concessionaires may not look the same.
2.5 Standardized Date Request Package
The Proponent shall maintain a standardized data request package while
recognizing that the data provided by concessionaires may vary in format and
presenta(cid:415)on.
2.6 Reporting Requirements
The Proponent shall prepare written reports for each assessment, maximum 2
pages, summarizing procedures performed, factual findings, identified
discrepancies, exceptions, variances, recommendations for corrective action, if
applicable, and management responses from concessions location and DOA.
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3. Deliverables
The selected Proponent shall provide the following deliverables:
Audit work plan and methodology
Standardized audit program and testing procedures
Draft assessment reports, if necessary
Final assessment report for each concession location
o
1-2 page report
o
Verified gross receipts
o
Variances identified
o
Potential under/over payments
o
Recommendations for corrective action
o
Response from Concessionaire/DOA
An annual report summarizing results upon completion
Maintain working papers for each assessment for review upon request
The Proponent shall complete and submit, at a minimum, one (1) individual
assessment report within fifty (50) calendar days from issuance of the Notice to
Proceed. Thereafter, assessment reports may be submitted monthly until all
assigned assessments are completed.
4. Minimum Qualifications
Proponent shall demonstrate the following minimum qualifications:
Experience performing Agreed-Upon Procedures engagements
Experience conducting revenue audits or gross receipts assessments
Certified Public Accountant ("CPA") firm in good standing
Knowledge of Government Auditing Standards and applicable accounting
principles
Ability to provide qualified staff and resources necessary to perform the
services
Experience evaluating Point-of-Sale ("POS") systems and revenue reporting
controls preferred
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Experience in preparing factual findings reports and exception-based
reporting
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