REQUEST FOR PROPOSALS
FOR 2011-2012 AUDIT (Attest Function) and IRS TAX RETURN PREPARATION (non-attest function)
IRVINGTON SPRINGFIELD AVENUE BUSINESS IMPROVEMENT DISTRICT
FOR: Irvington Springfield Avenue Business Improvement District Management Corporation
P.O. Box 323
Irvington, NJ 07111-0323
Audit and IRS form 990 Return Preparation services by a qualified New Jersey Certified Public Accountant are sought by the Irvington Springfield Avenue Business Improvement District Management Corporation (ISABID) for the fiscal year ended June 30, 2012. The ISABID is a private, non-profit 501(c)6 organization incorporated in the State of New Jersey with an annual budget of approximately $236,000.
DEADLINE: Wednesday, November 21, 2012 (must be received at ISABID post office box)
The selected CPA will audit the statement of financial position of ISABID as of June 30, 2012, and the related statement of activities, functional expenses, and cash flow for the fiscal year then ended.
The objective of the audit is the expression of an opinion about whether the ISABID financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. The audit will be conducted in accordance with U.S. generally accepted auditing standards and will include tests of the ISABIDís accounting records and other procedures we consider necessary to enable the auditor to express such an opinion. If the auditorís opinion is other than unqualified, he/she will discuss the reasons with the ISABID in advance. If, for any reason, the auditor is unable to complete the audit or are unable to form or have not formed an opinion, he/she may decline to express an opinion or to issue a report as a result of this engagement.
The auditorís procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain
other assets and liabilities by correspondence with selected funding sources, creditors, and financial
institutions. At the conclusion of the audit, the auditor will require certain written representations from the ISABID about the financial statements and related matters.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, the audit will involve judgment about the number of transactions to be
examined and the areas to be tested. Also, the auditor will plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether from errors,
fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the ISABID or to acts by management or employees acting on behalf of the ISABID. Because an audit is designed to provide reasonable, but not absolute, assurance and because the auditor will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by the auditor. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, the auditor will inform the ISABID of any material errors and any fraudulent financial reporting or misappropriation of assets that come to his/her attention. The auditor will also inform the ISABID of any violations of laws or governmental regulations that come to his/her attention, unless clearly inconsequential. The auditorís responsibility as auditors are limited to the period covered by the audit and does not extend to any later periods for which the auditor is not engaged.
The audit will include obtaining an understanding of internal control sufficient to plan the audit and to
determine the nature, timing, and extent of audit procedures to be performed. An audit is not designed to
provide assurance on internal control or to identify reportable conditions, that is, significant deficiencies in the design or operation of internal control. However, during the audit, if the auditor becomes aware of such reportable conditions, the auditor will communicate them to the ISABID.
The ISABID is responsible for making all financial records and related information available to the auditor and for the accuracy and completeness of that information. The auditor will advise the ISABID about appropriate accounting principles and their application and will assist in the preparation of the ISABIDís financial statements, but the responsibility for the financial statements remains with the ISABID. This responsibility includes the establishment and maintenance of adequate records and effective internal controls over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. The ISABID is responsible for adjusting the financial statements to correct material misstatements and for confirming to the auditor in the management representation letter that the effects of any uncorrected misstatements aggregated by the auditor during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The ISABID is also responsible for identifying and ensuring the ISABID complies with applicable laws and regulations.
The auditor will assist the ISABID with the preparation of all cash, accounts receivable, and other confirmations as required and that the ISABID will locate and submit any documents selected by us for testing.
As part of the auditorís engagement, he/she will also prepare the federal information return for the fiscal year ended June 30, 2012.
The ISABID has filed for extension of filing of the IRS form 990 through February 15, 2013. The audit is expected to begin after November 15, 2012, as soon as the records are delivered to the auditorís office, including reports, journals, and bank statements for the prior fiscal year. The auditor will complete the ISABIDís information returns no later than February 15, 2013, the double extended filing deadline for the IRS, from the information contained in the ISABIDís 2011-2012 accounting reports and journals. The auditor will estimate the date of the completion of the audit once all the pertinent information is received.
The auditor estimates that his/her fees for these services will range from
$______ to $______ for the audit and $______ to $______ for the federal information return.
The ISABID will also be billed for travel and other out-of-pocket costs such as report production (a minimum of 15 copies of the audit will be necessary), typing, postage, etc. Additional expenses are estimated to be $______.
The fee estimate is based on anticipated cooperation from the ISABIDís representatives and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, the auditor will discuss it with the ISABID and arrive at a new fee estimate before incurring the additional costs.
The auditor requires a deposit of one half an estimated average fee of $______ or a minimum of $______to be paid prior to the commencement of this engagement, with the balance due upon delivery of either the report and/or the returns. If the auditor elects to terminate services for nonpayment, his/her engagement will be deemed to have been completed upon written notification of termination, even if the report is not completed. The ISABID will be obligated to compensate the auditor for all time expended and to reimburse all out-of-pocket expenditures through the date of termination.
This letter correctly sets forth the understanding of Irvington Springfield Avenue Business Improvement District Management Corporation.
Officer signature: _________________________________________________________________
The auditor may perform this audit entirely off-site, mostly through electronic media, i.e., with all required
original documentation delivered to his/her office either by USPS, Certified Mail, or by courier, prior to the
commencement date. The auditor may require transmission of supplementary documents by Fax, or by attachment to emails. The auditor will transmit his/her request for information to Luz Carde for gathering and submitting all accounting information. Prior to commencement, after receiving ISABIDís deposit, the auditor will submit a list of information required for planning the audit, including a listing of officers, directors, and employees, with their job title and address, assigned duties, telephone and fax numbers, and email addresses, so that the auditor can complete sections of the IRS form 990.
This engagement letter does not cover registration of the corporation with the state of New Jersey. It does not cover any filings with the state or responses to inquiries or notices from the IRS for prior filings or other matters. Those services are required to be under a separate engagement letter.