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ELIZABETH A.NEVILLE,MMC aQ. �/� Town Hall,53095 Main Road TOWN CLERK ® P.O.Box 1179 CWA Southold,New York 11971 REGISTRAR,OF VITAL STATISTICS 5 ® Fax(631)765-6145 MARRIAGE OFFICER ®� Telephone(631)765-1800 RECORDS MANAGEMENT OFFICER ®,� �►� www.southoldtownny.gov FREEDOM OF INFORMATION OFFICER OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD August 17, 2021 Jeffrey Davoli PKF O'Connor Davies, LLP 25 Suffolk Court Hauppauge,NY 11788 Dear Mr.Davoli: Congratulations. At the regular Town Board meeting held on July 27, 2021, the Town Board accepted the proposal of PKF O'Connor Davies, LLP for providing Audit and Accounting Services. A certified copy of the resolution is enclosed. Thank you for your Proposal. Very truly yours, 444-,�y Lynda M Rudder Deputy Town Clerk Ens. - :y'%• ELIZABETH A.NEVILLE,MMC �,�® �� Town Hall,53095 Main Road TOWN CLERK ® P.O.Box 1179 Southold,New York 11971 REGISTRAR,OF VITAL STATISTICS ® Fax(631)765-6145 MARRIAGE OFFICER RECORDS MANAGEMENT OFFICER �� ��$®� Telephone FREEDOM OF INFORMATION OFFICER www.southoldtownny.gov 765-1800 www.southoldtownny.gov OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD August 17, 2021 David M. Tellier Nawrocki Smith, LLP 290 Broad Hollow Road Melville,NY 11747 Dear Mr. Tellier: At the regular Town Board meeting held on July 27, 2021, the Town Board accepted the proposal of PKF O'Connor Davies, LLP for providing Audit and Accounting Services. A certified copy of the resolution is enclosed. Thank you for your Proposal. Very truly yours, �a&-`c\, Lynda M Rudder Deputy Town Clerk Ens. ELIZABETH A.NEVILLE,MMC �� Town Hall,53095 Main Road TOWN CLERK ® P.O.Box 1179 Southold,New York 11971 REGISTRAR OF VITAL STATISTICS 9 Fax(631)765-6145 MARRIAGE OFFICER ®� Telephone(631)765-1800 RECORDS MANAGEMENT OFFICER www.southoldtownny.gov FREEDOM OF INFORMATION OFFICER OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD August 17, 2021 Timothy J. Doyle The Bonaadio Group 488 Madison Avenue, 23`d flr New York,NY 10022 Dear Mr. Doyle: At the regular Town Board meeting held on July 27, 2021, the Town Board accepted the proposal of PKF O'Connor Davies, LLP for providing Audit and Accounting Services. A certified copy of the resolution is enclosed. Thank you for your Proposal. Very truly yours, Lynda M Rudder Deputy Town Clerk Ens. Southold Town Board - Letter Board Meeting of July 27, 2021 RESOLUTION 2021-616 Item 4 5.16 si ADOPTED DOC ID: 17265 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2021-616 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JULY 27, 2021: RESOLVED that the Town Board of the Town of Southold hereby accepts the request for proposal and authorizes and directs Supervisor Scott Russell and Town Comptroller to execute an engagement letter with PKF O'Connor Davies, LLP in connection with the fiscal years' 2020, 2021 and 2022 annual audits, including one Federal Single Audit and the NYS DOT Audit of the Town, at a fee not to exceed $69,150 for 2021, $69,150 for 2021, and $70,833 for 2022, and that said fees shall be a legal charge to the General Fund Whole Town Independent Auditing and Accounting budget (A.1320.4.500.300), and that said engagement letter is subject to review and approval by the Town Attorney. 0 Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Louisa P. Evans, Justice SECONDER:Robert Ghosio, Councilman AYES: Nappa, Dinizio Jr, Doherty, Ghosio, Evans, Russell a Generated July 29, 2021 Page 26 Southold Town Board - Letter Board Meeting of July 27, 2021 `UF4 RESOLUTION 2021-617 Item 4 5.17 yap• 7�°� ADOPTED DOC ID: 17266 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2021-617 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JULY 2712021: RESOLVED that the Town Board of the Town of Southold hereby accepts the request for proposal and authorizes the execution of an engagement letter with PKF O'Connor Davies, LLP in connection with the audits of the Town of Southold Deferred Compensation Plan as of December 31, 2020, December 31, 2021 and December 31, 2022 at a fee not to exceed $13,000, $13,000 and $13,260, respectively, and that said fee shall be a legal charge to the General Fund Whole Town Independent Auditing and Accounting budget (A.1320.4.500.300), and that said engagement letter is subject to review and approval by the Town Attorney. Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Robert Ghosio, Councilman SECONDER:Louisa P. Evans, Justice AYES: Nappa, Dinizio Jr, Doherty, Ghosio, Evans, Russell Generated July 29; 2021 Page 27 Southold Town Board - Letter Board Meeting of July 27, 2021 RESOLUTION 2021-618 Item 4 5.18 o } ADOPTED DOC ID: 17267 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2021-618 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JULY 27, 2021: RESOLVED that the Town Board of the Town of Southold hereby accepts the request for proposal and authorizes the execution of an engagement letter with PKF O'Connor Davies, LLP in connection with the audits of the Town of Southold Justice Court as of December 31, 2020, December 31, 2021 and December 31, 2022 at a fee not to exceed $7,500, $7,500 and $7,650, respectively, and that said fee shall be a legal charge to the General Fund Whole Town Independent Auditing and Accounting budget (A.1320.4.5 00.3 00), and that said engagement letter is subject to review and approval by the Town Attorney. ?�e� Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Sarah E.Nappa, Councilwoman SECONDER:Jill Doherty, Councilwoman AYES: Nappa, Dinizio Jr, Doherty, Ghosio, Evans, Russell Generated July 29. 2021 Page 28 LOPW CCONNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 t - PROPOSALFOR AUDIT & ACCOUNTING SERVICES TECHNICAL PROPOSAL i � PRESENTED TO MASTER TOWN OF SOUTHOLD, SUFFOLK COUNTY, NEW YORK DATE June 9, 2021 CONTACT Jeffrey Davoli jdavoli@pkfod.com 631.299.3444 25 Suffolk Court Hauppauge, NY 11788 ow GREATER z- VALUE PKF O`CONNOR -- DAV I E S ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 i 1 ' PROPOSALFOR AUDIT & ACCOUNTING SERVICES TECHNICAL PROPOSAL PRESENTED TO MASTER TOWN OF SOUTHOLD, SUFFOLK COUNTY, NEW YORK ii DATE June 9, 2021 CONTACT Jeffrey Davoli i jdavoli@pkfod.com 631.299.3444 25 Suffolk Court Hauppauge, NY 11788 KNOW f r' GREATER VALUE it Y -- � PKF 000NNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 June 9, 2021 Kristie Hansen-Hightower-Town Controller Town of Southold 54375 Main Road Southold, NY 11971 Dear Kristie: PKF O'Connor Davies is pleased to present this proposal for providing audit services to the Town of I_ Southold for the fiscal years ended Dec. 31, 2020, 2021 and 2022. We are confident that the combination of practices with AVZ as of Jan. 1, 2021, with our seasoned professionals, experience in the government sector and significant level of partner involvement will exceed your highest expectations. As detailed In this proposal, we are committed to performing the required work within - the timeframe established by the Town of Southold. The following Technical Proposal is firm and irrevocable for a period of 90 days. We are very pleased that the Town of Southold and PKF O'Connor Davies have enjoyed a successful 10+ year.partnership. Our knowledge of, and insight into, your organization provides us with - the ability to "hit the ground running" once again, delivering cost and other efficiencies throughout the entire lifecycle of this engagement. Our extensive credentials and experience providing accounting, auditing and management advisory services to government entities for more than 60 years equips our specialists to help navigate the regulatory requirements and industry pressures facing the Town of Southold today and deliver the support it takes to remain competitive. Combining deep industry knowledge, cross-functional insight and expertise, our specialists are ideally qualified to assist with all aspects of the Town of Southold's financial and management operations. We will assign professional staff members that not only possess extensive experience in the - government sector, but are considered experts in their field. Our plan is to assign two partners, one manager and two senior staff to the various aspects of the engagement. This significant commitment of resources acknowledges our desire to insure a high level of service. The members of the Firm that will be assigned to the engagement will be lead by Jeffrey Davoli. Our team has gained years of relevant experience through the provision of professional services to large municipal clients, inclusive of state authorities, counties, cities, towns, villages and school districts. Our specialists in governmental accounting and management advisory services will be instrumental in assisting the Town of Southold to address the challenges that lie ahead and reach ! your strategic goals. While other accounting firms may propose similar services, PKF O'Connor Davies believes that no other firm possesses the depth of our knowledge and experience. - Sincerely, effrey Davoli fJohn Shillingsford Governmental Partner Employee Benefit Plans Partner jdavoli@pkfod.com jshillingsford@pkfod.com - 631.299.3444 631.299.3440 - PKF O'CONNOR DAVIES,LLP 25 Suffolk Court I Hauppauge, NY 11788 1 Tel 631 434 9500 1 Fax 631 434 9518 I V4WW.pkfod.com PKF O'Connor Davies,LLP Is a member firm of the PKF International Limited network of legally Independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms KNOW GREATER VALUE* �_ I CPKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 TABLE OF CONTENTS L J TransmittalLetter...................................................... ... .... ............................................................. 4 Independence .................................................................................................... ............. ............... 5 LicenseTo Practice............................................................................... ..................... ........... ........ 6 Our Understanding of Your Needs.............................................................. ............................ ........ 7 EngagementDetails........................ ............................................................................................ ... 8 Prior Engagements with the Town of Southold ................................................................................ 9 Similar Engagements with Other Government Entities..... ........................ ....... ..............................10 Qualifications................................................................. .. ... ... .... ...................... .... .. .. ... ..........11 Anticipated Potential Audit Problems......... .......................................................... ..........................15 ProposedTime Frame.. .... ................... ..................................................... ...................................16 References.................................................................................... ... ........ ................................. ..19 Your Engagement Team ................................. .......... ... .... ... .... ............................. ...................20 FirmOverview................. .... .......................... .. ............................................. .... ........................22 � i What Sets Us Apart................ ....................................................... .. ......23 ....... ...... ...................... Appendices...................................................... ............................................................... ... ..........24 A. Engagement Team Biographies B. Peer Review Report C. Non-Collusive Proposal Certification L D. Request for Proposal Submission Form I PKF MONNOR DAVIES ACCOUNTANTS AND ADVISORS L - ESTABLISHED IN 1691 TRANS i T 11AL LETTER PKF O'Connor Davies appreciates the comprehensiveness of the RFP materials and as such confirms our understanding of the work to be done as detailed in the section "Our Understanding of Your Needs." We furthermore confirm our commitment to perform the required duties within the allotted timeframe. PKF O'Connor Davies believes its successful partnership with the Town of Southold on previous engagements and its important differentiators detailed in the section "What Sets Us Apart" of this proposal places us as the best qualified to perform this engagement by meeting and/or exceeding your needs through our focused and personalized customer-centric service model. This proposal stands as a firm and irrevocable offer as defined within for a period of 90 days. Sincerely, Jeffrey Davoli Partner jdavoli@pkfod.com 631.299.3444 1 .` KNOW GREATER VALUF i � t� C PKF }r 000NNOR 1- DIES ACCOUNTANTS AND ADVISORS '-- ESTABLISHED IN 1891 O19 UIEFIE 1 V®ENCIE J The Firm is independent of the Town of Southold as defined by Generally Accepted Auditing Standards and the U.S. Comptroller General's Government Auditing Standards. We have assessed our current and potential future relationship with the Town of Southold or any of its agencies for the past ten (10) years. This includes assessing our Firm's relationship as well as assessing each of our Firm members' relationship with the Town of Southold. In addition, we will give the Town of Southold written notice of any professional relationships entered into during the period of this agreement that might affect our actual or perceived independence. a_j Furthermore, we confirm that we are independent of the component units of the Town of Southold as defined by those same standards and that we are independent of the Suffolk County Government and any other component units of that entity, as defined by those same standards. _ PKF O'Connor Davies does not have any subcontractor relationships concerning this proposed engagement. KNOW GREATER VALUE' I 1_ s ` I i t1a% PKF 000NNOR f DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 �J License to Practice in New York State — PKF O'Connor Davies is a firm of certified public accountants licensed to practice in the State of New York. All key personnel assigned to the engagement are licensed to practice in New York State and have satisfied all continuing professional education ("CPE") requirements as required by the State Department of Education, the American Institute of Certified Public Accountants and the Comptroller General of the United States. In order to perform an audit of federal funds, known as the "Single Audit," 24 hours of CPE every two years must be in subjects related to governmental auditing. All supervisory staff assigned to public sector audits meet this requirement. - , The PKF O'Connor Davies' Firm Partnership ID number is 069980. The Firm is registered to do business in the State of New York with the Secretary of the State and is current on our annual filings. i _1 I I "li Imo' !-1 L _ r j -J li KNOW GREATER VALUE7 f-, 40'W PKF 000NNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 f - M //(���M py�� YOUR OUR UNDERSTANDHO OF YOUR NEEDS - Based on the information provided to us, it is our understanding that you require the following services for the years ending December 31, 2020, 2021 and 2022. ® Audit of your organization's General Purpose Financial Statements in accordance with Government Auditing Standards, GASB 34 and supporting schedules ® Audit of Deferred Compensation Plan Audit of Justice Court and a report on the fair presentation of Town of Southold's Justice Courts' Combining Schedule of Cash Collections and Disbursements and a communication regarding internal control matters identified in the audit to those charged with governance and management. As part of our responsibility to perform these services, our engagement team is available to you throughout the year for consultation on these and any other issues that may arise. We look forward to the opportunity to work with you on this important engagement. 1-, I � 1 1� L li I '. KNOW GREATER ' J PKF J aCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 ENGAGEMENT ®ET/r LS Services for the Public Sector For those who choose a life in public service, the rewards are many. The challenges, however, _ include changing budgetary priorities, restrictive regulations and time-consuming demands for transparency. Not only do these challenges divert attention from everyday operations, they require the development of specific solutions, customized procedures and processes —which is why so many government officials and managers seek the help of experts like ours. PKF O'Connor Davies is recognized as one of the tri-state area's premier providers of accounting, J auditing and advisory services for public sector organizations. Offering a bridge between accounting practices and financial management, we assist our clients in resolving complex regulatory issues, fulfilling critical reporting requirements and more. We deliver extensive resources to public sector organizations of every size while simultaneously offering the concentrated personal attention that many larger firms cannot. The Singular Focus Only Specialists Can Deliver Proactive, thorough and efficient—these are the qualities that equip our public sector services professionals to forge productive, long-lasting relationships with clients. Our specialists deliver attentive, responsive service to government officials and managers on a continuous basis. They are ` J led by partners who are actively involved in the engagement on a daily basis. As a result, our clients rely on us for exceptional and cost-effective service. Each of our specialists participates in extensive, ongoing municipal finance training in order to stay abreast of the latest issues and trends. Many are involved in various national and local professional 7 organizations as well as numerous government and accounting organizations, including: i ' El GFOA- Government Finance Officers Association: National, New York and Connecticut r - Chapters 13 ASBO - Association of School Business Officials: National, New York and New Jersey Chapters D AICPA -American Institute of Certified Public Accountants a NYSSCPA- New York State Society of Certified Public Accountants CTCPA- Connecticut State Society of Certified Public Accountants NJCPA–New Jersey Society of Certified Public Accountants Trusted by a Diverse Constituency Our client base extends throughout the tri-state area and includes: Towns Counties Justice Courts Villages State Agencies Fire Districts Cities 13 Boroughs Hospitals and Nursing Homes Public Authorities 11 School Districts El Educational Institutions r — KNOW c L J j GREATER r , C PKF UCONNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 PMOR ENGAGEMENTS MTH THE TOWN OF SOU7 TOLD Def. Def. Justice Justice L,a Audit Audit Comp. Comp. Court CourtTotal HoursYear •s Hours Billings • • Billings r j 2019 755 $ 84,150 115 $ 13,000 70 $ 7,500 $ 104,650 2018 675 $ 82,500 100 $ 13,000 70 $ 7,500 $ 103,000 r-i 2017 650 $ 80,900 105 $ 13,000 50 $ 7,500 $ 101,400 t _1 2016 635 $ 79,400 70 $ 13,000 50 $ 7,500 $ 99,900 2015 550 $ 77,100 85 $ 12,750 35 $ 7,500 $ 97,350 2014 620 $ 77,100 60 $ 12,750 25 $ 5,400 $ 95,250 2013 690 $ 74,700 85 $ 12,750 25 $ 5,300 $ 92,750 2012 665 $ 72,800 65 $ 12,750 25 $ 5,200 $ 90,750 2011 675 $ 71,400 60 $ 12,500 35 $ 5,100 $ 89,000 I PKF O'Connor Davies have been the auditors for many years for the Town Audit, the Justice Court Audit and The Deferred Compensation Audit. Robert Posner was the engagement partner on all engagements through 2019 (the last year done). Since that time, Jeffrey Davoli has taken over as the engagement partner for the Justice Court and the Town Financial Audit in 2018. All services have been and will continue to be performed from our Hauppauge, NY office. i KNOW GREATER VALUE' I � r � G PKF j 000NNOR -� D"IES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 r 1, i Y :,J SOWL AR ENGAGEMENTS WTH OTHER GOVERNMENT EN=0 Es Government Entity Engagement Scope of Work Total Hours Partner _ Town of Riverhead William Rothaar Director of Finance Jeffrey Davoli Audit 1,200 rothaar@townofriverheadny.gov (631) 727-3200 Town of Brookhaven Tamara Branson Director of Finance Jeffrey Davoli Audit 1,500 tbranson@brookhavenny.gov (631) 451-6681 Town of Huntington Peggy Karayianakis Audit Comptroller Jeffrey Davoli (ACFR) 1,200 pkarayianakis@huntingtonny.gov (631) 351-3310 Town of Oyster Bay Steve Ballas Accounting Comptroller Jeffrey Davoli Services 3,000 sballas@oysterbayny.gov (ACFR) (516) 624-6440 � j Jl Town of Shelter Island Amber Brach-Williams - Councilwoman Jeffrey Davoli Audit 600 abwilliams@shelterislandtown.us (631) 749-0291 4_ II; , Some recent GFOA awards (ACFR) submissions we've worked on are: Town of Huntington Town of Hempstead Town of Oyster Bay �, KNOW GREATER VALUE* 10 PKF 000NNOR DIES ACCOUNTANTS AND ADVISORS L ESTABLISHED IN 1891 QUALMCAYMNS 1 _ We have in excess of 75 full-time professionals in our Public Sector Practice who are involved with and dedicated to public sector audits on a year-round basis. The Public Sector Practice is led by 18 partners and principals. Over the years, we have had extensive involvement with the State of New York on emerging issues. We have often been requested to provide our views on planned pronouncements. Today's complex business environment necessitates specialization. The accounting and other professions are not immune. Accounting firms have always been organized by such disciplines as audit, tax and management advisory services. The current environment has resulted in the establishment of sub-specialty areas. Public Sector accounting and auditing is clearly a specialty area. Its uniqueness is exemplified through the establishment and separate governing authority, the Governmental Accounting Standards Board ("GASB"). The sole purpose of GASB is the issuance of authoritative accounting principles for government. The percentages of work by each category of staff breaks out as follows: ® Partners: 10-20% Manager: 30-35% Senior Staff: 20-25% Staff Auditors: 20-25% -' The undertaking of this engagement with the Town of Southold would represent less than 1% of our workload volume. PKF O'Connor Davies doesn't have any time constraints regarding its ability for the deliverability of the proposed engagement in accordance with the timeline provided in the RFP. 1 � PKF O'Connor Davies shall, as part of the agreement for services, indemnify and save harmless the Town of Southold from and against any and all losses and any and all claim, demands, payments, suits, actions, recoveries and judgments of every kind or nature, brought or recovered against the Town of Southold by reason of any act or omission of the Proposer, subcontractor, his agent or employees, in the performance of the contract. l � It Li KNOW GREATER VALUE' PKF aCONNOR DAVIES ACCOUNTANTS AND ADVISORS ' ESTABLISHED IN 1891 4_J Our Audit Approach Our commitment to open communication is evident from the beginning of our engagement with you. We will meet with you to confirm our understanding of audit risk, your issues of concern, �- expectations and timing. Based on these meetings, we will create an engagement plan that reflects our dedication to providing the high quality services you expect and deserve. Our flexible, risk-based approach requires attention from the most experienced members of the engagement team. Partners on the engagement team are actively involved in all phases of the audit to ensure that we target audit risk areas, audit objectives and conduct the audit in the most efficient manner possible. Audit Phases J We conduct our audit using a phased approach, which includes planning/risk assessment procedures, fieldwork, reporting and communication. The following describes each phase: COMM p� o D !Phase I — Planning/Risk Assessment Understanding Your Needs Our first step is to confirm our understanding of your needs, issues of concern and deadlines. We accomplish this through meetings and discussions with senior management and by communicating with those charged with governance (TCWG), typically either the owners, audit committee or board of directors, as applicable. __1 Assessing Risk A thorough risk assessment is essential to ensuring that the audit is both effective and efficient. Our risk assessment process evaluates the likelihood of a material misstatement of the financial statements whether due to error or fraud. This risk assessment process involves obtaining an understanding of your organization, including but not limited to, its structure, operations, industry, economic conditions, regulatory environment and reporting framework. We obtain this understanding i by, among other procedures, inquiry of personnel and management, review of historical data, and reading various documents. Review of Internal Controls -, During the risk assessment process, we gain an understanding of the internal controls that affect your financial reporting to both determine where misstatements may occur and to assist in designing our audit procedures. This understanding is obtained by a combination of inquiry, observation, re- performance and walkthroughs. Although not required, if deemed efficient, we may conduct further testing of controls to increase our reliance on those controls and reduce the amount of substantive testing. It is important to note that while risk assessment occurs early in the audit engagement, the process continues throughout the engagement as new risks are identified that may require a change to our planned audit approach. KNOW GREATER VALUE* 12 � I C PKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Information Technology Environment We will review your information technology environment to determine its effect on financial reporting and how it affects the risk of material misstatement. This review is scaled to the sophistication and L complexities of the information system. Where necessary, we will deploy specialists to evaluate your information system. Review Financial and Other Data We will perform analytical procedures during our risk assessment. These procedures may include trend analysis, ratio analysis, reasonableness and regression analysis. These procedures are designed to detect anomalies in financial data and identify potential misstatements. We use computer aided audit techniques (CAATs) to evaluate large sets of data. Frequently, we benchmark certain ratios against industry benchmarks. Identify Critical Audit Areas Critical audit areas typically relate to either financial statement amounts or financial statement disclosures. To discern whether there are any areas that require focused attention, we leverage our experience,judgment and sophisticated audit applications. Once risk has been assessed, we determine the nature and timing of audit procedures required to reduce such risk to an acceptable level. To streamline the audit effort, we concentrate a majority of - our substantive testing procedures on those areas with the greatest risk of material misstatement. r Conversely, we test areas with less risk to a lesser extent. Phase II - Substantive Testing Develop a Customized Audit Program Based upon our review of the current year's risk assessment, we tailor our audit programs to i achieve optimal audit efficiency by focusing our substantive testing on areas with the highest risk of � I a material misstatement. 1 Substantive Testing i_ Substantive testing covers a wide variety of audit procedures all aimed at reducing the risk that the financial statements contain a material misstatement that is not detected by our audit procedures. ti These procedures can include observation, vouching, tracing, recalculating, evaluation of estimates, independent confirmations, reading contracts and agreements, and more. Improve Efficiency with Technology s ' t We use a paperless audit methodology to increase efficiency in workpaper preparation, review and distribution. We also use various software to work remotely and efficiently. CAATs automate many audit functions, such as those that simplify data sorting and summarization, population stratification and sampling, duplicate and sequence gap analyses. CAATs equip us to perform data sampling '- more quickly. CAATs also allow us to test large populations' data or to test 100% of a population. jPhase III -'Reporting ' Reporting on Financial Statements At the completion of the audit, we review the financial statements in draft form with your organization's management. The financial statements are the responsibility of your organization and management PKF aCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 must make the final decisions concerning amounts and disclosures. Nevertheless, we must be satisfied with the classification of amounts, the fairness of the overall presentation and the thorough- ness of disclosures. To this end, the engagement partners and audit manager review the financial statements and provide recommendations for changes to disclosures and/or presentation. A final review is then performed by an experienced, independent Quality Control Review Member. Improving Controls —Substantive Reports for Management To help promote the efficient operation of your organization, we will communicate our thoughts about where improvements can be made. Our management letter comments are designed to focus attention on the most significant and relevant findings in areas such as essential improvements to internal accounting controls, revenue enhancement or cost reduction opportunities and ineffective or inefficient operating controls and policies. At the conclusion of the audit, we meet with management and TCWG to discuss these comments as well as financial statements, results of the audit and any other issues identified during the audit. We are committed to keeping you informed of developments that relate to your business as they unfold. You have our commitment that we will: © Deliver forward-thinking ideas - m Offer solutions for enhancing internal controls ® Serve as your resource for information, insight, recommendations and industry best practices 7 Phase1V.-°Continu"o0s:C®mmu'nication Once we complete the initial audit, we continue our ongoing dialogue with you through the beginning of the next audit. This phase is one of ongoing communication during which we exchange ideas and advice. In addition to a continuous, year-round dialogue between your management and our team, we recommend periodic meetings with management and TCWG. We also help you stay informed of _ changes within your industry, the accounting profession and by regulatory authorities through publications we distribute via email as issues arise. Audit Quality Control and Issue Resolution To fulfil the responsibility set by the AICPA's Quality Control Standards, we have established and maintain a system of quality control for our accounting and auditing practice. Our system is designed to ensure that all differences in viewpoint are given full consideration, including disputes between our client and our engagement team as well as any among engagement team members. In such cases, we leverage the knowledge, experience and competence of those within our firm to resolve disagreements. Our firm's culture, structure and chain of command ensure strict adherence to this process, the result of which is exemplary client service. I KNOW GREATER VALUE* 14 PKF aCONNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 ANT�C�PATED POTENT�AL AWT PROBLEMS Based on review of the documents provided with the RFP we have not identified any issues at this time. It is our policy to meet with the client during the planning phase of the audit and identify and address any potential issues at that time. i ' KNOW GREATER x 9 ` t S r I i I i 4 VALUE* PKF OOCONNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 PROPOSED TWE FRAME 1� Financial Statemen.t-Audit Dates Plan'nin`g' JUNE ,Auditor provides'the aTown Comptroller with`safrdetailed auditplan,'e (April for 2021 and `IisY.of°all�sctiedules to.`be prepaeed;by.:fhejown an' -a-list and°format 2022 years) of,confirmations`xto be%prepared`-bytti6Town.Auditor conducts preliminary�engagemenfactivities: :Field Work` ;.' JUNE/JULY (May for 2021 and AUI:46r commences`and finrishe's audif field-worK ,° <z` 2022 years) Presentation`°of,Draft'Auditndings`` JULY/AUGUST (July for 2021 and Auditor`completes'audit fieldwork,.`a'nd presents draft'audit findingsR' 2022 years) witf,recommendations{.and°suggested adjustments'`to the,Town`, Com ptrollerfor°review:and response: ; 'Financiel`Sfatements Notes S'chedules -The,a9uditor:shall prepare draft financial,statements;notes and-a"ll"'-': , SEPTEMBER 15 required,.,supplementa'ryrschedules nand'statistical.data.=The auditor$ (August 31st for 2021 and :shall provide alinrecomm`endations, revisions,and,s'uggestions,for', w 2022 years) improvement-.to:the,Town"Comptroller„vuith'dr"aft.ieport; in6ludiri6, draft auditor;sreportby`,September�15th (August°31st for 2021arid` ," 2022 years)of the year following`the 6a under audit::` -Deliver°I-'na'l,-Reports.rc"' .The Town Comptr6ller,-will corriplet6',th review of the-,draft:report,bs aezpeditiously as,possible:-curing"the review$period, the audito' ' , n should,l a available forrtany meeting's that,may,be necessary to:: SEPTEMBER 30 discuss`,the`.audita'eports.-� nee1all.issues for:discussiomare resolved;:: :the final;signed report be issuedl no later'-than September 3'0`.o ` the year following,the£year under:audit. t`%O PKF OCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Deferred • • • Audit Planning. JUNE Auditor provides the Town Comptroller with a detailed audit plan; a (April for 2021 and list of all schedules to be prepared by the Town and a list and format 2022 years) of confirmations to be prepared by the Town. Auditor conducts preliminary engagement activities. Field Work JUNE/JULY (May for 2021 and Auditor commences and finishes audit field work. 2022 years) Presentation of Draft Audit Findings Auditor,completes audit field work, prepares;draft financial - statements,.notes and all required supplementary schedules and JULY presents draft audit findings with recommendations and suggested (May/early June for 2021 adjustmentsio the Town Comptroller for review and response on or and 2022 years) before August 1st(June 15th-for 202T and 2022 years):The Town Comptroller will complete the review of the draft report as expeditiously as possible. During the review period, the auditor.' should be available for any meetings that may be necessary to discuss the audit reports. Deliver'Final Reports Once all issues for discussion are resolved,-the final signed report AUGUST 15 shall be issued no later than August,15th for the 2020 year (June (June 30th for 2021 and 30th for 2021',and 2022 years). 2022 years) PKF `./ aCONNOR DIES J ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 L_ Justice Court Audit Dates Planning - JUNE/JULY Auditor provides the Town Comptroller and the Justice Court Director (March/April for 2021 and with a detailed audit plan; a list of all schedules to be prepared by the 2022 years) _ Town and a list and format of confirmations to be prepared by the Town. Auditor conducts preliminary engagement activities May— Auditor commences and finishes audit field work. i Field Work i Auditor completes audit field work, prepares draft financial statements,'notes and all required supplementary schedules and JULY/AUGUST 1 -- presents draft audit findings with recommendations and suggested (April/May for 2021 and adjustments to the Town Comptroller for review and response on or 2022 years) before August 1 st. The Town Comptroller will complete the review of the draft report as expeditiously as possible. During the review ` .period, the auditor should be available for any meetings that may be necessary to discuss°,the audit reports. Deliver Final Reports AUGUST 15 (June 15th of the year Once all issues,for discussion are resolved, the final signed report following the year under shall be issued no later than August 15th (June 15th of the year, audit for the 2021 and following the year under audit for the 2021 and 2022 years). 2022 years). i j- I C PKF ' 0 CONNOR D"I ES ACCOUNTANTS AND ADVISORS '--- ESTABLISHED IN 1699 REFERENCES To gain a firsthand understanding of the caliber of service and attention from which our clients benefit, we invite you to speak directly with them. Below you'll find contact information for individuals who have enthusiastically offered to describe their experiences with our Firm. Current Clients Town of Riverhead '- William Rothaar Director of Finance rothaar@townofriverheadny.gov (631) 727-3200 Town of Brookhaven Tamara Branson Director of Finance tbranson@brookhavenny.gov (631) 451-6681 Town of Huntington Peggy Karayianakis Comptroller pkarayianakis@huntingtonny.gov (631) 351-3310 Town of Oyster Bay Steve Ballas Comptroller sballas@oysterbayny.gov (516) 624-6440 Town of Shelter Island Amber Brach-Williams Councilwoman abwilliams@shelterislandtown.us (631) 749-0291 PKF 000NNOR DAVIES ' ACCOUNTANTS AND ADVISORS -' ESTABLISHED IN 1841 YOUR ENGAGEMENT TEAM I_ i t - Jeffrey Davoli Partner on GPFS and Justice Court jdavoli@pkfod.com 631.921.4918 John Shillingsford Partner on Deferred Compensation Plan jshillingsford@pkfod.com -- 631.299.3440 i � f vk .. e Jennifer Clark Manager jclark@pkfod.com - 631.299.3476 I KNOW GREATER VALUE' 20 PKF (YCONNOR D"I ES I ACCOUNTANTS AND ADVISORS ESTABLISHED IN 7091 I- Jennifer Vega Senior on GPFS and Justice Court jvega@pkfod.com j = ' 631.299.3487 4 1 . Octavio Chacon Senior on Deferred Compensation Plan ochacon@pkfod.com 631.299.3489 1 Appendix A includes descriptions of the expertise and experience of those PKF O'Connor Davies Partners who will lead your engagement and of the members of their team, all of whom will be available to you for consultation throughout the year. PKF �./ MONNOR DAVIES i ACCOUNTANTS AND ADVISORS '--' ESTABLISHED IN 1891 i j M R<1 Uf 41 ® V ERC! EM i 1 j We exist to serve clients at a higher level. 130 years 900 100+ DELIVERING TOP-TIER PARTNERS EXEMPLARY SERVICE SPECIALISTS Actively leading through trusted, enduring client in Audit, Tax client engagements relationships since 1891. and Advisory - 400+ locations #27 i REGIONAL PRESENCE. GLOBAL REACH. RANKING PKF O'Connor Davies is the lead North American on Accounting Today's { J representative in PKF International, a global network Top 100 list of legally independent accounting and advisory firms located in more than 400 locations in 150 countries around the world. We go beyond passive value protection to active value creation. Our clients benefit from deeper knowledge, keener insight, a potent commitment to responsiveness and integrity along with greater agility and cost efficiency than many of our larger counterparts can offer. CPKF 000NNOR DAVIES ACCOUNTANTS AND ADVISORS /� ESTABLISHED IN 1897 WHAT T SITS US APART With roots tracing back to 1891, PKF O'Connor Davies has a proven record of achievement delivering high-quality service and building lasting client relationships. In fact, our clients regularly -- acknowledge the value we bring: higher levels of expertise, commitment, service and integrity— frequently at a lower cost than our larger counterparts. 11 Comprehensive Services Our expertise is profound, diverse and deep and our clients are the beneficiaries of an outstanding breadth of support from assurance, accounting, audit and tax services to the full complement of family office business advisory and services. 0 Agility and Responsiveness Count on access to resources that match those of larger firms in scope —delivered with the agility only a firm of our size can provide. Consistent Service, Talented Professionals A top priority has been, and will remain, to attract, develop, reward and retain superior talent. In fact, our firm surpasses industry standards for staffing continuity. High caliber teams delivering consistent attention to detail make PKF O'Connor Davies stand out among our peer firms. i Direct Partner Involvement, Dedicated Engagement Teams 0 Our Partners are involved in the day-to-day management of all engagements, ensuring a high degree of client service and cost effectiveness. Leading potent, cross-functional teams, they are integral to helping your organization remain competitive, technologically advanced and secure, ready to pursue ongoing growth and success. ® Regional Presence, Global Reach Throughout the U.S. tristate and mid-Atlantic regions, over 100 partners and 900 professionals serve clients at 14 strategically located business offices. Your engagement team also serves as liaison to more than 400 member firms located in 150 countries thanks to our leadership role in the PKF International Network of accountants and business advisors—ensuring you access to expertise wherever you take your operations and wherever you envision your growth. We encourage you to visit our website pkfod.com for information on industry specializations, conferences and events, thought leadership and additional advantages we can bring your organization. PKF �./ O`CONNOR - D"I ES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 i APPENDMES KNOW GREATER VALUE* 24 l 1 i r , i , i - PKF OrCONNOR D"I ES ACCOUNTANTS AND ADVISORS '- ESTABLISHED IN 1891 Appendx A: Engagement Team MograpMes Jeffrey S. Davoli a° Partner Jeffrey S. Davoli is a Partner at PKF O'Connor Davies and has over 30 years of experience with a diverse client base, including service j industries, manufacturers, wholesale distributors and engineering, as -� -=- - ---" well as governmental entities and school districts. He provides advisory services to individuals, corporations and business owners in financial projections, business and estate tax ' planning, litigation support and forensic accounting. In addition, he advises governmental clients and school districts on new standards adoption, compliance and preparation of financial statements in accordance with the Certificate of Achievement for Excellence in Financial Reporting program. r Jeff received his Bachelor's degree in Accounting from C.W. Post College and is a member of the AICPA, NYSSCPA, GFOA, ACFE and NYSASBO. In addition, he holds the FINRA Series 7 and NASAA Series 66 licenses. (r John Shillingsford, CPA, ABV, CFE Partner John Shillingsford is a Partner at PKF O'Connor Davies with over 28 years of professional experience in accounting, auditing, and taxation - !;for closely held businesses His wide-ranging client base includes - _- - manufacturing, wholesale, distribution, professional service based companies and employee benefit plans. He aids closely held businesses in succession planning whether by sale or transition and has developed a strategic M&A book for closely J held family businesses to facilitate successful transition as well as maximizing value and preserving wealth. John received his Bachelor's degree in Accounting from Elizabethtown College, passed the FINRA Series 7 and NASAA Series 66 and holds a New York State Life and Health Insurance license. In addition, he is active in the AICPA, NYSSCPA, PICPA and ACFE. ` I KNOW GREATER VALUE* 25 PKF aCONNOR DIES ACCOUNTANTS AND ADVISORS --' ESTABLISHED IN 1891 Jennifer Clark, CPA, CIA Manager ` Jennifer is a Manager at PKF O'Connor Davies with more than five years' experience in public accounting and auditing. Her primary " responsibilities include on-site supervision of audit engagements serving local governments including school districts, fire districts and villages. She currently serves as a Manager for Audit and Advisory services for school districts, water districts, villages and other governmental entities. In this role she is responsible for the planning, organization, !_ supervision and administration of all phases of the audit from the planning stages through the preparation of financial statements. Jennifer received her Master's in Business Administration and her Bachelor's degree in Economics from SUNY Stony Brook. Prior to joining PKF O'Connor Davies, Jennifer was an audit manager at R.S. Abrams, & Co. LLP, where she was responsible for supervising external as well as internal audits for school districts, fire districts and L villages. Jennifer is a certified internal auditor ("CIA"). � I KNOW GREATER VALUE* 26 , I tJ G PKF �J 000NNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Appendix Bo Fear Review Report L-1 DAVIE II KAPLRN r Cert,fi d Public Accountants II REPORT ON THE FIRM'S SYSTEM OF QUALITY CONTROL June 16,2020 To the Partners of PKF O'Connor Davies, LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of PKF O'Connor Davies, LLP (the firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended December 31, 2019. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants(Standards). - A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummary.The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards,when appropriate,and for remediating weaknesses in its system of quality 1`_ control,if any. Peer Reviewers Responsibility - Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. Required Selections and Considerations ( I Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act, audits of employee benefit plans, audits of broker-dealers, and examinations of service organizations SOC 1 and SOC 2 engagements. As a part of our peer review,we considered reviews by regulatory entities as communicated by the firm, if applicable,in determining the nature and extent of our procedures. Davie Kaplan,CPA,P.C. --, 1000 First Federal Plaza • Rochester.New York 14614 Tel-585-454-4161 • Fax'585-454-2573 . www-daviekaplan corn { f � I L I j Opinion In our opinion, the system of quality control for the accounting and auditing practice of PKF O'Connor Davies, LLP applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended December 31, 2019, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies)or fail. PKF O'Connor Davies, LLP has received a peer review rating of ' pass. DAVIE KAPLAN, CPA, P.C. it I Davie Kaplan,CPA,PC. Certified Public Accountants i KNOW GREATER VALUE* 28 jl Appen x Co Non-C aflusNe Proposal CoRtfflca oon Non Collusive Proposal Certification The undersigned proposer affirms as true,under the penalties of perjury,as follows: (1) The prices and practices in his/her proposal have been arrived at independently without collusion, consultation, communication, or agreement for the purpose of restricting competition, as to any matter relating to such prices with any other proposer or with any competitor; (2) Unless otherwise required by law, the presentation which has been quoted in this proposal has not knowingly been disclosed by the proposer and will not knowingly be disclosed by the proposer prior to opening, directly or indirectly, to any other proposer or to any competitor; 1 (3) No attempt has been made or will be made by the proposer to induce any other person, partnership or corporation to not submit a proposal for the purpose of restricting competition;and (4) Neither the undersigned nor, if the proposer is a partnership, joint venture or corporation, any partner, principal, oficer, director, employee or stockholder holding in excess of five (5%) percent interest in the corporation, is an officer or employee of the Town of Southold, or paid with The Town funds,or required to disclose an interest pursuant to the Town of Southold Code of Ethics. PRINT NAME:Jeffrey Davoli (SIGNED) CORPORATE TITLE -Not Applicable(Partnership) (IF APPLICABLE Corporate Seal Appendix ®o Request for Proposa0 Submossoon Form Professional Auditing and Accounting Services For The Town of Southold, Suffolk County, New York Request for Proposal PROPOSAL SUBMITTED BY: (Signature of Proposer) `. I Jeffrey Davoli,Partner (Printed Name and Title of Proposer) ;- PKF O'Connor Davies,LLP June 9,2021 � r (Company or Corporation) Date 25 Suffolk Court,Hauppauge,NY 11788 Address,Town,State,Zip 631.299.3444-idavoli@pkfod.com Telephone,FAX,Pager,e-mail address l Not Applicable(Partnership) - CORPORATE SEAL GPKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 I i l PROPOSALFOR AUDIT & ACCOUNTING SERVICES T DOLLAR COST PROPOSAL PRESENTED TO MASTER TOWN OF SOUTHOLD, ,- SUFFOLK COUNTY, NEW YORK DATE June 9, 2021 CONTACT Jeffrey Davoli jdavoli@pkfod.com 631.299.3444 25 Suffolk Court Hauppauge, NY 11788 KNOW� r GREATER VALUE �r �Y PKF 000NNOR - D"I ES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 PROPOSALFOR AUDIT & ACCOUNTING SERVICES DOLLAR COST PROPOSAL PRESENTED TO MASTER TOWN OF SOUTHOLD, SUFFOLK COUNTY, NEW YORK DATE June 9, 2021 CONTACT Jeffrey Davoli jdavoli@pkfod com 631.299.3444 25 Suffolk Court Hauppauge, NY 11788 li KNOW GREATER VALUE w f H. �= d I P K F O`CONNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 ENGAGEMENT FEES We are as committed to delivering our services at a fair and reasonable cost as we are to providing i you with exceptional talent, attention and responsiveness. The extensive training programs and review processes we've developed help us maintain our outstanding record of performance. Our fees reflect regular accounting, tax and business consulting. Rather than charging for each phone call, for example, we encourage regular communication and the opportunity to deal with issues as they arise. Our fees for the years ended December 31, 2020, 2021 and 2022 are as follows: ` 2020 2021 2022 Professional Services: Fees: Fees: Fees: Audit of Financial Statements, Supporting Schedules $84,150 $84,150 $85,833 and Preparation of Management Letter Audit of Deferred Compensation Plan $13,000 $13,000 $13,260 Audit of Justice Court—Cash Receipts & Disbursements $7,500 $7,500 $7,650 Total fees $104,650 $104,650 $106,743 Standard Hourly Billing Rates Our hourly billing rates are shown below. Our quote above is at a discount to our standard hourly billing rates. Actual rates may vary by department and staff experience levels. Level 2020 2021 2022 Partner $415 $415 +2% Manager $225-250 $225-250 +2% Senior $145-190 $145-190 +2% Out-of-Pocket Expenses Our fees above are our all-inclusive cost proposal including any out-of-pocket fees. Out-of-Scope Billing Should we, at your request, perform services outside the scope of the audit process that require additional staff and consultants, we bill separately—and only with your prior approval of estimated fees. Final Note on Fees We have prepared a fee estimate that we believe is appropriate for the scope of work required. If professional fees become an issue during your analysis of our proposal, we would appreciate the opportunity to discuss your concerns. We are committed to providing you with exceptional service at a fair cost, not only initially but also on a long-term basis. We welcome the opportunity to answer any questions related to our fees. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS : 1 Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2020 & 2021 (per year, same rate) (complete with year of proposed service) Hours Standard Quoted Total HourlyHourly y Rates Rates Partners 75 $415 $225 $16,875 Managers 250 $225-$250 $134 $33,500 Senior Staff 200 $145-$190 $ 84 $16,800 Staff Auditors 225 $100-$125 $ 75 $16,875 Other Rounding $ 100 - Total Hours 750 Total all-inclusive maximum price for audit: $ $84,150 Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2022 _ (complete with year of proposed service) i ; �- Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 75 $415 $230 $17,250 Managers 250 $225-$250 $135 $33,750 ,J Senior Staff 200 $145-$190 $ 87 $17,400 i Staff Auditors j225 $100-$125 $ 77 $17,325 Other Rounding $ 8 Total Hours 750 Total all-inclusive maximum price for audit: $ $85,733 Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE DEFERRED COMPENSATION PLAN Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2020 & 2021 (per year, same rate) (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 22 $415 $225 $ 4,950 Managers 40 $225-$250 $134 $ 5,360 Senior Staff 18 $145-$190 $ 84 $ 1,512 Staff Auditors 15 $1004125 $ 75 $ 1,125 Other Rounding $ 53 Total Hours 125 Total all-inclusive maximum price for audit: $ $ 13,000 Note: The rate quoted should not be presented as a general percentage of the standard hourly LJ rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE DEFERRED COMPENSATION PLAN Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2022 (complete with year of proposed service) Hours Standard Quoted Total _ Hourly Hourly Rates Rates 22 $415 $230 $ 5,060 Partners _J _- Managers 40 $225-$250 $135 $ 5,400 Senior Staff 18 $145-$190 $ 87 $ 1,566 a � Staff Auditors 15 $100-$125 $ 77 $ 1,155 Other Rounding $ 79 Total Hours 125 Total all-inclusive maximum price for audit: $ $ 13,260 Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE JUSTICE COURT Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2020 & 2021 (per year, same rate) � I (complete with year of proposed service) i Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 10 $415 $225 $ 2,250 Managers 25 $225-$250 $134 $ 3,350 Senior Staff 13 $145-$190 $ 84 $ 1,092 Staff Auditors 10 $1004125 $ 75 $ 750 I Other Rounding $ 58 Total Hours 75 Total all-inclusive maximum price for audit: $ $ 7,500 Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. I i s j SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE JUSTICE COURT Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2022 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 10 $415 $230 $ 2,300 Managers 25 $225-$250 $135 $ 3,375 Senior Staff 13 $145-$190 $ 87 $ 1,131 Staff Auditors 10 $1004125 $ 77 $ 770 Other Rounding $ 74 Total Hours 75 f , Total all-inclusive maximum price for audit: $ $ 7,650 Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. I ' MASTER COPY TOWN OF SOUTHOLD J PROPOSAL FOR PROFESSIONAL AUDITING AND ACCOUNTING SERVICES JUNE 2021 Firm's Name: Nawrocki Smith LLP Certified Public Accountants Contact Person: David M. Tellier, Partner Address: 290 Broad Hollow Road Melville, New York 11747 Telephone Number: (631) 756-9500 Cell Number: (631) 514-5896 Email: dmt@nsllpcpa.com �% Date of Proposal: June 7, 2021 TOWN OF SOUTHOLD TABLE OF CONTENTS PROPOSAL FOR PROFESSIONAL AUDITING AND ACCOUTNING SERVICES JUNE 2021 Page Letter of Transmittal of Technical Proposal for Professional -, Auditing and Accounting Services to the Town of Southold 1 Detailed Technical Proposal for Professional Auditing and Accounting Services to the Town of Southold 6 Q u Michael E.Nawrocki Lauren M.Agunzo Ernest Patrick Smith John K.Hoffman Darin V.lacobelli David M.Tellier awrockiSith CERTIFIED PUBLIC ACCOUNTANTS&BUSINESS CONSULTANTS June 7, 2021 Ms. Kristie L. Hansen-Hightower, CPA Town Comptroller Town of Southold 54375 Main Road, P.O. Box 1179 Southold, New York 11971 Re: Letter of Transmittal of Technical Proposal for Professional Auditing and Accounting Services to the Town of Southold Executive Summary Thank you for the opportunity to submit our proposal to provide professional auditing and accounting services to the Town of Southold (the "Town"). Our enthusiasm for a possible association with the Town is matched only by our confidence that we can render the Town of Southold with outstanding client service. We believe our firm is uniquely qualified to provide superior service to the Town for the following reasons: 1. We have a proven track record of timely, responsive and quality services provided to our existing clients based on our tenure as their external auditors. 2. We have undergone an audit by the NYS Comptroller and found to be in conformity with professional standards. 3. We utilize specialized audit techniques and personnel in addressing the fraud related -� requirements of our external audit, ensuring the expectations of the Town Board and government regulators are satisfied. 4. Our staff "turnover" is historically low thus ensuring we can return the same audit team to your engagement each year, resulting in a more efficient, responsive audit. S. We make ongoing investments in technology to ensure our audit approach and techniques are on the cutting edge of professional standards. Our firm was the first CPA firm to introduce "data mining" software to municipal audits, a technique now employed by other firms and the NYS Comptroller. 6. Historically, we expend more professional hours on our external audits than other firms. 7. There are no "hidden costs" when it comes to our firm. We keep to our word and C honor our commitments, as we have done with all our clients over the past 30 years. We are very sensitive to the Town's need to carefully budget its expenses. -1- C1 Nawrocki Smith LLP 1 290 Broad Hollow Road,Suite 115E I Melville,New York 11747 1 w. nsllpcpa.com I t• 631.756.9500 1 f:631.756.9818 �J Ivawr®ckiSmit We have carefully read your Request For Proposal and have made every effort to ensure that all of your information requests are specifically addressed. Our Understanding Of The Work To Be Completed Our proposed services are to include the following for the fiscal years ended December 31, 2020, 2021 and 2022: — Audit and issue an opinion on the general purpose financial statements of the Town — Audit and issue an opinion on the Schedule of Expenditures of Federal Awards and the Town's compliance with the requirements described in the Uniform Guidance — Audit and issue an opinion on the Town's Justice Court — Audit and issue an opinion on the Town's Deferred Compensation Plan — Audit and issue an opinion on the Town's compliance with Draft Part 43 of the New York State Codification of Rules and Regulations as they relate to State Transportation Funding — Issue a management letter which findings and recommendations for improving internal controls within the Town — Provide on-call assistance, as required, in the preparation of the Town's Annual Update -� Document to the State Comptroller's Office — Provide on-call assistance, as required, at the sole discretion of the Town — Assist in the compliance of all Government Accounting Standards Board (GASB) Pronouncements J The aforementioned services are to be performed in accordance with U.S. generally accepted auditing standards, the standards set forth for financial audits in the General Accountability Office's "Government Auditing Standards", the Single Audit Act Amendments of 1996, the Uniform Guidance and professional standards promulgated by the American Institute of Certified Public Accountants. Our Firm is also available to provide other special audit services, including "on-call assistance", as required, at the sole discretion of the Town should any unspecified additional work arise which requires additional time. Charges for such work would be based on the professional hours incurred at the billing rates set forth in the "Schedule of Professional Fees and Expenses" section of this proposal. We would always provide you with a fee estimate C-? before proceeding with any special services. With respect to fees, we make every effort to ensure there is always a clear understanding of the requisite arrangements prior to commencing the work involved. Also, you will not be billed for routine telephone discussions and questions. We view this as an integral part of our annual arrangement in maintaining an open line of communication on developments which occur throughout the course of the year. 0 -2- (1 NawrockiSmit Commitment To Perform The Work Within The Time Period Please be advised of our Firm's commitment to perform the aforementioned work within the time period established with the Town. (Please refer to the detailed technical proposal for our proposed audit timing, which may certainly be modified with the Town.) Why Our Firm Believes Itself To Be Best Qualified To Perform The Engagement We believe our Firm is especially qualified to render professional accounting and auditing services to the Town of Southold for the following reasons: Our track record for timely, responsive and quality service is unmatched by our competitors on Long Island. For this reason, we have been entrusted with assisting several high profile municipalities navigate through difficult times and returning them to fiscal stability including: — Roslyn Union Free School District - Our firm was selected to address what has been described as the "largest scandal in American educational history" and was very successful in bringing this district back to fiscal stability through an effective { ; financial planning and control structure. — Town of East Hampton - Over the past 11 years, we have assisted this Town in addressing a myriad of budget, accounting and financial reporting issues, to the point it now receives the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. — Town of Southampton - Over the past 9 years, we have assisted this Town in performing a comprehensive risk assessment, while enhancing its accounting procedures, internal controls and financial reporting systems to the point it now receives the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. — Hempstead Union Free School District - While this is still a "work in process", we worked with the Board of Education and administration of this troubled district. We are confident our recommendations will be brought to fruition, and this district will return to fiscal stability and educational excellence. C3 Our Firm has proficiently addressed all significant accounting, reporting and auditing technical issues as they arise, our Firm has been very successful in achieving all established timetables. Follow-up report letters by New York State, Federal awarding agencies and other regulators have included little or no comments or findings on our resulting reports. Most importantly, as a major provider of professional audit services to municipalities on Long Island, our Firm has undergone an audit by the New York State Comptroller who concluded that our Firm met professional standards in the performance of our external audit work. -3- Nawr®ckiSrnith Our experiences as the independent auditors for the Roslyn Union Free School District following what has been termed one of "the largest local government scandals in American history" had a dramatic impact on our approach to performing audits of local governments. In addition to financial auditors with experience in government accounting and auditing, our auditors confer with a special forensic audit team with trained professionals (including Certified Fraud Examiners) in the areas of fraud detection, information technology and internal controls. This unique "team approach" ensures the audit process is not only thorough but meets or exceeds the expectations of governing boards and regulators. The resources we devote to critical risk and fraud susceptible areas are of great value to our government clients. We will assign only experienced, seasoned professionals in carrying out the audit of the Town of Southold. (You will not find yourself training our staff. They will be fully briefed and ready to service you.) We are very fair when it comes to fees. You will find our rates and fee structure to be competitive and fair. — Prior to the formation of our Firm in 1986, our founding partners were associated with our nation's largest public accounting firm. During that time, a significant effort was devoted to the servicing of governmental organizations. The technical proficiency and quality control in rendering professional services learned at this large firm has become one of the cornerstones of Nawrocki Smith LLP. This is evident by our most recent peer 1 review as a member of the Private Companies Practice Section of The American Institute of Certified Public Accountants, in which for the tenth straight time our Firm received the highest evaluation rarely afforded to members of this voluntary organization dedicated to providing high quality client service. — We will make an investment in your Town. Our "first-time-through work" which will be performed at no cost to you, will provide the basis for a detailed presentation as to our initial observations and recommendations in the areas of organizational structure, accounting procedures and internal accounting control. — Our creativity is an important resource to our clients. We don't just do, we think as we (� do. In this manner, ideas and suggestions to improve your operations are brought to your attention throughout the course of our work. — In addition to our proficiency in auditing local governments and municipalities, our Firm has significant expertise in other areas of financial accounting, forensic auditing, operational management, internal control and internal audit, all of which will be brought to bear in servicing the Town of Southold. -4- U Nawr®ckiSmith A Firm And Irrevocable offer We hereby confirm to the Town that the accompanying proposal is a firm and irrevocable offer for services to be rendered. The accompanying detailed proposal provides additional information in accordance with the requests set forth in the Request For Proposal. Thank you again for this important opportunity for our Firm. We are confident that we can provide the Town of Southold with excellent client service. If there is further information that you need or you have any questions or comments on this proposal, please contact David Tellier at (631) 756-9500. U Very truly yours, NAWROCKI SMITH LLP � 1 By: David M. Tellier �.1 �J -5- NawrockiSmith DETAILED TECHNICAL PROPOSAL FOR PROFESSIONAL AUDITING AND ACCOUNTING SERVICES TO THE TOWN OF SOUTHOLD This technical proposal is presented in accordance with the specific information request guidelines set forth in the Town of Southold Request For Proposal for Professional Auditing and {� Accounting Services (2020 through 2022). Additional clarifying information has been presented where deemed appropriate. A. General Requirements The accompanying transmittal letter presents in detail our understanding of the services to 'J be rendered to the Town of Southold for the years ended December 31, 2020, 2021 and 2022. B. Independence Please be advised that the Firm of Nawrocki Smith LLP is independent of the Town of Southold and all component units as defined by generally accepted auditing standards, as well as the U.S. General Accountability Office's "Government Auditing Standards". There are no conflicts of interest between our Firm and the Town of Southold and any component units. If applicable, our Firm shall certainly give the Town of Southold written notice of any professional relationships with the Town of Southold or its component units entered into during the period of this engagement. C. License To Practice In The State Of New York Please be advised that the Firm of Nawrocki Smith LLP and all professional staff to be r assigned to the engagement are properly licensed to practice public accounting in the State of New York. D. Prior Engagements With The Town Please be advised that the Firm of Nawrocki Smith LLP has not entered into any prior engagements with the Town. E. Similar Engagements With Other Government Entities The following represents three of our significant governmental clients for which our Firm has had audit responsibility: -6- ✓y NawrockiSmith Town of Southampton Scope of Work: Full audit in accordance with generally accepted auditing standards, Government Auditing l Standards and the provisions of the Uniform Guidance and issued a CAFR. Most recent audit: As of December 31,2020 Engagement partner: David M.Tellier Total audit hours: 1450 i Principal client contact: Mr. Len Marchese, Comptroller(631)702-1888 Town of East Hampton Scope of Work: Full audit in accordance with generally accepted auditing standards, Government Auditing Standards and the provisions of the Uniform Guidance and issued a CAFR. Most recent audit- As of December 31, 2019 rJ Engagement partner: David M.Tellier Total audit hours: 1100 Principal client contact: Mr. Len Bernard, Budget Officer(631)907-8719 Incorporated Village of Hempstead t Scope of Work: Full audit in accordance with generally accepted auditing standards, Government Auditing Standards and the provisions of the Uniform Guidance. Most recent audit: As of May 31,2020 Engagement partner: David M.Tellier r Total audit hours. 750 Principal client contact: Mr.Joe Gill,Treasurer(516)488-3400 Farmingdale Union Free School District Scope of Work: Full audit in accordance with generally accepted auditing standards, Government Auditing Standards and the provisions of the Uniform Guidance. Most recent audit: As of June 30,2020 Engagement partner: David M.Tellier Total audit hours: 450 Principal client contact: Mr. Michael Motisi,Assistant Superintendent for Business(516)752-6506 Shelter Island Union Free School District Scope of Work: Full audit in accordance with generally accepted auditing standards and Government Auditing Standards. Most recent audit: As of June 30,2020 Engagement Partner: David M.Tellier Total audit hours: 280 Principal client contact: Mrs. Deborah Vecchio,Treasurer(631)749-0302 -7- Nawr®ckomith F. Introductory Statement C) Nawrocki Smith LLP (the "Firm") is a New York State Limited Liability Partnership duly licensed and authorized to practice by the New York State Education Department. — Nawrocki Smith LLP is a regional public accounting firm established in 1986 by the Firm's founding partners, who were previously associated with the nation's largest public C1 accounting firm. The Firm currently provides audit and other related services to over 80 local governments throughout Long Island, and is comprised of fifty-two professionals and support staff with offices in Melville, Long Island. Thirty members of our Firm's professional staff have experience in rendering professional service to government entities. The individuals who would be assigned to the Town of Southold engagement will include personnel to be selected from this team of individuals. In essence, all professionals to be assigned to the engagement will have experience in auditing government entities. Nawrocki Smith LLP is registered with the NYS Education Department, and all professional staff to be assigned to the engagement are properly licensed to practice public accounting in the State of New York. Please note that our Firm is a member of the following associations: American Institute of Certified Public Accountants (AICPA) Private Companies Practice Section of the AICPA — AICPA Governmental Audit Quality Center AICPA Employee Benefit Quality Center New York State Society of Certified Public Accountants New York State Government Finance Officers' Association, Inc. Our Firm has demonstrated a sound working knowledge of all GASB Statements with respect to our government clientele, as demonstrated by clients we serve being some of the first to implement current statements, with the resulting reports being accepted without comment by regulatory agencies. G. Proposed Methodology ( The following information is provided with respect to our proposed methodology: The following sets forth our specific audit approach that we will follow in performing the audit of the requisite financial statements of the Town of Southold: 1. Proposed Segmentation of the Engagement -The following represents the segments in which our audit would be performed: "First-Time-Through" Work - Our initial work involves obtaining an understanding of the Town and its environment in order to perform an overall risk assessment to facilitate our audit plans. -8- �F awr®cii — Audit Planning - The nature, extent and timing of our audit procedures _ (including scopes and information requests) are established. -' — Preliminary Audit Procedures - Every effort is made to perform as much preliminary work as possible, particularly in the area of compliance testing under the Single Audit Act and Uniform Guidance requirements, as well as procedural testing in the financial accounting areas. — Final Audit Procedures - Upon closing of the books and records, final audit r procedures on the year end balances may be performed. — Reporting Procedures - This phase of the engagement involves preparation of the requisite reports and discussion with the various levels of management and Town Board. 2. Level of Staff and Number of Hours to be Assigned to Each Proposed Segment of the �r Engagement: — "First-Time-Through" Work (50 hours) — Audit Planning (70 hours) — Preliminary Audit Procedures (120 hours) — Final Audit Procedures (520 hours) — Reporting Procedures (90 hours) Specific staff assignments will be based on the complexity of the work in each segment. 3. Sample Sizes and Utilization of Statistical Sampling - In connection with the audit planning phase of the engagement, evaluations as to levels of materiality as well as the nature and extent of sample sizes to be utilized in compliance and procedural testing are developed in accordance with various AICPA guidelines, including the AICPA audit guide, "Audit Sampling" as well as guidelines for statistical sampling provided by Practitioners Publishing Company's, "Audits of Local Governments" to which our Firm subscribes. 4. Extent and Use of EDP Software - As with our experience in other government entities, we plan to make extensive use of microcomputer software developed by t� the AICPA and other companies in order to streamline audit and testing procedures in this area. 5. Type and Extent of Analytical Procedures to be Used in the Engagement - Specific analytical procedures to be utilized will be identified during the planning phase of the engagement. As with our other engagements, variation analyses, reviews for trends and unusual items, as well as predictive tests of balances are among the procedures typically utilized by our Firm in carrying out analytical audit procedures. -9- r" 10 NawrockiSmith _ 6. Approach to be Taken to Gain and Document an Understanding of the Town's Internal Control Structure - Our Firm subscribes to the comprehensive publication services, "Audits of Local Governments" and "Single Audits" as published by Practitioners Publishing Company. Both of these services (which would be utilized on the Town's audit) provide extensive resources for developing an understanding of the internal control structure, as a basis for performing compliance testing and f developing audit scopes for performance of the audit of the general purpose financial statements. 7. Approach to be Taken in Drawing Audit Samples for Tests of Compliance - While statistical sampling is used, we also exercise professional judgment in determining the nature and extent of samples in addressing compliance requirements, 1 particularly in the area of Federal Financial Assistance Programs. 8. Approach to be Taken In Determining Laws and Regulations That Will be Subject to Audit Test Work - Our Firm has developed a library of resource material from New York State as to laws and regulations of a general nature that should be considered in addressing compliance with laws and regulations. Our work on compliance with laws and regulations specifically related to Federal Financial Assistance Programs will be based on guidelines established by the various federal circulars and supplements provided to address requirements in these areas. The following presents our overall proposed time line for the 2020 annual audit of the Town, which would be further refined with the Town administration upon appointment and can be adjusted to an earlier timeframe if needed: Initial planning meeting with management Upon appointment Planning procedures and risk assessment Upon appointment iJ "First-time-through", preliminary and final audit procedures (including internal control testing and compliance) Upon appointment "Sign off" on audit Mid July Exit conference Mid July Provide draft of financial statements August 1 Deliver final reports No later than August 15 -10- ��r NaWr®ckiSmith H. Workload Volume 1. Our Firm provides professional accounting and auditing services to numerous local governments, municipalities and not-for-profit organizations on Long Island; however most of that concentration occurs during the beginning and later part of the year. We have more than adequate availability during the early and middle part of the year, which is manageable and affords us the opportunity and flexibility to undertake the Town of Southold as a client. 2. We would have no time constraints or problems meeting your requirements and delivering outstanding service to the Town of Southold. Our track record for timing is impeccable. If we commit, we deliver. In fact, we are the only major accounting firm on Long Island providing professional audit services to school districts, which has achieved 100% on-time delivery of audit reports which are subject to a stringent reporting deadline. 3. It is currently contemplated that the engagement team would consist of an engagement r partner, a manager, a supervisor, a senior associate and two staff associates, however the final engagement team will be based on specific timing established with the Town of Southold. 4. As instructed, Attachment A has been provided which indicates the estimated number of hours, the hourly billing rate by staff classification, out-of-pocket expenses and the resulting all-inclusive maximum prices for the services to be performed for each of the proposed three years. I. Qualifications And Experience u' 1. While the final engagement team will be based on specific timing established with the Town, it is currently contemplated that the following individuals would be assigned to the audit: David M. Tellier (Audit Partner) 10%of the work to be performed _ Darin lacobelli (Advisory Partner) 1% of the work to be performed �- Craig Hauser(Manager) 17% of the work to be performed -11- U Nawr®ckiSmith David M. Tellier is a Certified Public Accountant, Certified Government Financial �f Manager, Certified in Financial Forensics, a Certified Information Technology Professional and a member of the American Institute of Certified Public Accountants, the New York State Society of Certified Public Accountants and the New York State Government Finance Officers' Association, Inc. Darin lacobelli is a Certified Public Accountant, Certified Fraud Examiner and a member of the American Institute of lJ Certified Public Accountants and the New York State Society of Certified Public Accountants. Craig Hauser is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants. Dave, Darin and Craig have extensive government auditing experience in New York State, as well as continuing professional education during the past several years. Most importantly, they have significant experience in auditing New York State local governments. The direct involvement of Dave Tellier in the planning, execution, wrap-up and reporting of the audit engagement will assure the quality of staff work over the term of the agreement with the Town of Southold. As members of our Firm's Information Technology Committee, which was established to identify and implement computerized audit and accounting applications, Dave and Craig would oversee utilization of various computer applications on the Town audits. In addition, our Firm has a large forensic accounting practice and accordingly, forensic auditors (including Certified Fraud Examiners) are available as the need may arise. Darin will oversee our implementation of the requirements relating to the Consideration of Fraud in a Financial Statement Audit. Resumes accompany this proposal. 0 Dave Tellier would be ultimately responsible for the relationship with the Town and Craig Hauser would provide day-to-day direction of the required work. All staff assigned to the Town engagements would report directly to Dave and Craig, who would then report to the Town's designee for audit responsibility. Professional personnel rendering audit services to our municipal clients complete all continuing professional education requirements to satisfy the United States General Accounting Office (GAO) standards. We understand that the Town of Southold retains the right to approve or reject any replacements to the staff assigned to the engagement. Our intent would be for any audit personnel to be changed to have substantially the same or better qualifications or experience than their predecessors. r�l 2. The services that our Firm would provide the Town of Southold as independent accountants is fully described in our "Letter of Transmittal of Technical Proposal for Professional Auditing and Accounting Services to the Town of Southold" in the section titled "Our Understanding Of The Work To Be Completed". -12- t�i U\ awr®cki mith Our Firm has been servicing the public sector, and in particular local governments since 1990. Our reputation for outstanding competence, leadership, quality and timeliness in this area of the market has always distinguished our Firm from its competition, and our Firm is considered to be one of the largest public accounting firms based on Long Island as recently reported by Long Island Business News. 3. Identification of Anticipated Potential Audit Problems - While areas of recommendation as cited by the existing auditors will be followed-up for implementation, no areas of concern have been initially identified. To the extent problems may arise, our Firm's policy is to work with the various tiers of authority. In essence, our initial discussion of potential problems will be with individuals who have primary responsibility for the area in which the problem arose. Following initial discussions, follow-up dialogue may �1 transpire with successive levels of management and the Town Board. 4. Our Firm will provide all necessary insurance certifications and policies upon award of the proposal. I personally attest to the fact that our firm maintains insurance coverage equal to or in excess of that which is required in the Request for Proposal. If any additional information with respect to the areas discussed above is necessary, please contact David Tellier at (631) 756-9500. ,J t - U -13- ;Lj awr®ci i David_--Al® Te flier, CRA, Cr gFJW1CFF.C_TTP 22 Budenos Drive (631) 514-SB96 Sayville, New York 11782 dmt@nsllpcpa.com PROFESSIONAL EXPERIENCE Nawrocki Smith LLP February 1998-Present Melville, New York Attestation, Assurance and Quality Control Partner ® Overall client service responsibilities for over 60 audit, review and compilation engagements, primarily in the not-for-profit and governmental sectors • Not-for-profit clients with revenues ranging from $100,000 to$50,000,000 annually ® Government clients encompass Towns, Villages, School Districts, Fire Districts, Libraries and Special Districts with revenues ranging from $1,000,000 to $200,000,000 annually • Responsible for the Firms quality control policies and procedures • Responsible for the Attestation and Audit Division continuing professional education Candle in the Darkness Foundation, Inc. March 2002-Present Sayville, New York President ( Coordinate annual benefit walk in the Town of Sayville to raise money to grant wishes of terminally-ill children who do not qualify for Make-A-Wish grants • Average annual revenues of$20,000 ® Prepare and maintain general ledger and annual informational tax returns EDUCATION 0 Saint Joseph's College September 1996-May 1,998 Patchogue, New York • Bachelor of Science in Accounting ® Dean's List Suffolk County Community College September 1994-May 1996 Selden, New York L • Associate Degree, Arts and Sciences • Dean's List CREDENTIALS • New York State Certified Public Accountant �' • Certified Government Financial Manager • Member of American Institute Corporation of Certified Public Accountants • Member of New York State Society of Certified Public Accountants ® Member of New York State Government Finance Officers Association • Associate Member of New York State Association of School Business Officials CONTINUING PROFESSIONAL EDUCATION Over 80 hours of Continuing Professional Education have been obtained during the past two years, including 48 hours of education in not-for-profit and governmental accounting, single audit and related audit matters (i e. planning, compliance testing, internal control evaluation and reporting matters). J NawrockiSmith CRAIG R. HAUSER, CPA E-mail-chauser(alnsllpcpa.com Syosset,NY 11791 t " (516)404-0897 EXPERIENCE Nawrocki Smith LLP,Melville,NY July 2013 -Present Audit and Assurance Manager • Plan, oversee and assist in the work performed during engagements for over 35 audit, review and compilation engagements in the following sectors: governmental, not-for-profit, Employee Retirement and Income Security Act("ERISA"), and Uniform Guidance • Train and supervise new staff associates while communicating directly with partners • Compile and review audit workpapers to ensure quality control • Preparation and review of various reports/returns which include; Financial statements, Internal Control Recommendation Letters, IRS Form 990,NYS Char 500, FASS PHA(HUD),Uniform Guidance Reports and Data Collection Reports • Present and assist partners when presenting during presentations to Finance Committees and/or Board of Director's meetings EDUCATION State University of New York at New Paltz,New Paltz,NY June 2013 • Graduated with a Master's degree in Business Administration with a concentration in Accounting • Honors: Magna Cum Laude, Dean's List, NYS Society of CPAs Accounting Honor Award, Student Academic Honor Award State University of New York at New Paltz,New Paltz,NY May 2012 • Graduated with a Bachelor of Science degree in Accounting and Finance • Honors: Magna Cum Laude,Dean's List all four years, graduated with honors in business • Activities: Two year member of the varsity basketball team; two year member of the student athlete organization that communicated with administrative personnel to set goals for student athletes and improve their experience at the school LREDENTIAL S • Certified Public Accountant- State of New York • Member of American Institute of Certified Public Accountants 1 • Member of New York State Society of Certified Public Accountants CONTINUING PROEE IONAL EDUCATION • 80 hours of Continuing Professional Education have been obtained during the past two years, including 48 hours of education in not-for-profit and governmental accounting and audit matters (i.e. planning, compliance testing,internal control evaluation and reporting matters) V r� FlahertyFlaherty Salmin LLP Certified Public Accountants /� 2300 Buffalo Road,Building 200,Rochester,NY 14624-1365 Salmin c f D A S office 585 279-0120 fax 585 279-0166 Straight Answers.Trusted Solutions. 00PrImeGlObal Report on the Firm's System of Quality Control To the Partners of Nawrocki Smith LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Nawrocki Smith LLP (the firm), applicable to engagements not subject to PCAOB permanent inspection, in effect for the year ended June 30, 2018. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants(Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummarX. The �f summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing a system of quality control and complying with it to ' provide the finn with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards,when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing (1 Standards, including a compliance audit under the Single Audit Act, audits of employee benefit plans, an audit of a broker-dealer and an examination of a service organization (SOC 2 engagement). As part of our peer review,we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. 0 Opinion In our opinion, the system of quality control for the accounting and auditing practice of Nawrocki Smith LLP, applicable to engagements not subject to PCAOB permanent inspection, in effect for the year ended June 30, 2018 has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies)or fail. Nawrocki Smith LLP has received a peer review rating of pass. JA40*SA&Un-f-W Rochester,New York February 27, 2019 V Professional Auditing and Accounting Services For The Town of Southold, Suffolk County, New York Request for Proposal PROPOSAL SUBMITTED BY: (Signature roposer) (Printed Name and Title of Proposer) Md✓�6 L tLi r'411 /t U//111 (Company or Corporation) Date Z9 0 ,���w✓ ,� �, � N //7,�47 Address,Town, State, Zip 401 -79-1. -9S-dolP �1I- 7,r -- (f (F� Telephone, FAX,Pager, e-mail address CORPORATE SEAL 26 Non Collusive Proposal Certification The undersigned proposer affirms as true, under the penalties of perjury,as follows: (1) The prices and practices in his/her proposal have been arrived at independently without collusion, consultation, communication, or agreement for the purpose of restricting competition, as to any matter relating to such prices with any other proposer or with any competitor; (2) Unless otherwise required by law, the presentation which has been quoted in this proposal has not knowingly been disclosed by the proposer and will not knowingly be disclosed by the proposer prior to opening, directly or indirectly, to any other proposer or to any competitor; (3) No attempt has been made or will be made by the proposer to induce any other person, partnership or corporation to not submit a proposal for the purpose of restricting competition;and (4) Neither the undersigned nor, if the proposer is a partnership, joint venture or corporation, any partner, principal, officer, director, employee or stockholder holding in excess of five (5%) percent interest in the corporation, is an officer or employee of the Town of Southold, or paid with The Town funds, or required to disclose an interest pursuant to the Town of Southold Code of Ethics. PRINT NAME (SIGNED) CORPORATE TITLE (IF APPLICABLE Corporate Seal 7 MASTER COPY SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company LL � Name Ali 6✓/o(�F�! bl�tci�t Gla Fiscal Year Z_'0?y (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners g5- �o Z l, Z,-O j Managers 7r Supervisory Staff SCA 4 SA4�aff gets Other(specify r Total all-inclusive maximum price for audit: $ 0"1—.000 Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. 27 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company Name Fiscal Year ZO Z( (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners SU 2S-0 2�O 000 01 Managers A/O 175"- Supervisory Staff 13a /r6 ZL ran S-eA nor SfA ll?' �30 /z�� f� 2jo Managers- Other(specify �a� baa 3a 600 C237,S-, Total all-inclusive maximum price for audit: $ 90 OJU Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. r" 27 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company Name Fiscal YearZZ (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners D Zf0 Do a Managers A10 Supervisory Staff /ro `,-0 Z2 S130 o� /6 Zs o Other(specs �o D lOc7 �o a pd < � 3 2-S , Total all-inclusive maximum price for audit: Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S.Dollars. 27 I i 6 i -( Proposal for Professional `- Auditing and Accounting Services June 99 2021 _ TECHNICAL ORIGINAL Submitted to: Scott A. Russel, Town Supervisor Town of Southold 54095 Main Road P.O. Box 1179 Southold, New York 11971 I " Submitted by: Timothy J. Doyle, CPA, Partner Heather Briggs, CPA, Principal The Bonadio Group 488 Madison Avenue 23rd Floor New York, NY 10022 -- �y Phone: (212) 600-2854 `�---- -.tdoyleCaD-bonadio.com I wIIY YY. �.r• y ' AOL I TABLE OE CONTENTS Section 1:Transmittal Letter Audit Approach 2-11 Workload Volume 12 Statement of Qualifications • Firm Experience and Expertise - • References 13-31 • Engagememt Team Qualifications i Attachments Request for Proposal • Non Collusive Proposal Certification �� • Peer Review • Use of IT in Our Audits r-1 II R L�! I THE BONADIO GROUP June 9, 2021 CPAs,Consultants More F-11 Scott A. Russel, Town Supervisor Town of Southold 54095 Main Road P O Box 1179 I Southold, New York 11971 1 RE: Proposal for Independent Audit and Accounting Services k —! Dear Mr. Russel It is The Bonadio Group's (Bonadio) pleasure to submit this proposal to provide j Independent audit and accounting services to the Town of Southold (the Town), its Deferred Compensation Plan and Its Justice Court for the years ending December 31, 2020, 2021 and 2022, relating to the following: audit the financial statements of the Town; audit of the Town's compliance with Draft Part 43 of the NYS Codification of Rules and Regulations related to New York State Transportation Funding. Please note that we understand from correspondence with the Town that no federal Uniform guidance is anticipated, however, we have included our experience and a separate quote should that change in the future The Town of Southold is a complex governmental organization that strives for excellence. That is why you need a firm with the experience to truly understand what you do and assist you in complying with your reporting and operational goals We are that firm Bonadio provides a wide variety of accounting, audit and consulting services to many state and local governments throughout New York State and we look forward to adding the Town to our client portfolio. This is why a move to Bonadio is the right decision: We know the complex landscape of New York State government. We are, hands down, an expert in governmental entities in New York State. Our government -" experience is second to none. Bonadio is one of the leading audit and advisory firms to government organizations in New York State, and we currently provide accounting and auditing services to over 300 government entities, including a variety of New York �J State agencies, public authorities, towns, counties, cities, school districts, and other local governments. Fill We have a wealth of experience in working with dozens of towns throughout the -- State, delivering services ranging from financial statement audits to aiding in the preparation of comprehensive annual financial reporting to specialty financial consulting protects. Our government team does only that—governments. Our breadth of resources allows us to keep you abreast of all critical financial and regulatory matters impacting the Town. 488 Madison Ave.,23rd Floor New York,NY 10022 F p(212)600-2854 We're specialists. The Town will be served, at all levels, by professional staff who understand the complex issues that It faces. In addition, Bonadio has the bench www lonad,o.com strength to ensure that the Town's engagement is not reliant or dependent on any I single individual. Our depth of resources includes 12 partners and 8 principals who _ have devoted their entire careers to working in the government sector. These individuals are supported by a related complement of managers and staff-level resources that have specific government experience { ALBANY • BATAVIA BUFFALO • EAST AURORA • GENEVA • NYC • ROCHESTER • RUTLAND, VT • SYRACUSE • UTICA i I C� As a Top 40 nationally ranked accounting firm, we have the necessary resources to serve you at fees you will find very competitive and reflective of our desire to serve as your auditors. We will perform your audit in a timely and responsive fashion, with fieldwork scheduled in accordance with your timelines, we will work with you to meet all requirements. Our overarching principles are centered around the concept of no surprises; all adjustments and findings, if any, will be discussed with you prior to being reported. Our Government team works solely on governments throughout the year. That is why we are able to complete our December 31st clients during the 2nd (� quarter of the year, as our team is not conflicted with tax deadlines. We are best equipped and commit to meet the deadlines noted in your RFP. Responsible office locations: The Town engagement will be led by our NYC office, located at 488 Madison Avenue, 23rd Floor, New York, New York with additional resources available from any of our _ statewide offices. Transition: It is important to realize that change often leads to new and fresh perspectives. We have successfully transitioned many clients over the years.Our new clients have often expressed recognition ---! of our differing style noting that the ongoing communication, "no surprises"approach, well-trained staff and adherence to their timetables were a welcomed improvement. We would be happy to provide- recent references of transitions to demonstrate these recognitions. In fact,we transitioned nearby Town FP of Smithtown from your current firm last year. They can share their positive experience with you Firm and 'irrevocable offer Bonadio agrees to all of the requirements and contract terms, and to provide all the services as outlined in your Request for Proposal. This is a firm irrevocable offer for a period of ninety (90) days. We want to work for you! Our firm is the best option for the Town due to our deep bench strength, past performance on large complex municipalities and proven track record of meeting our clients'timetables. The opportunity to serve as your auditors and advisors is important to us. We are committed to demonstrating that Bonadio is a cost effective, high quality audit firm that adds value to the audit process. What's more, our team has proven, in-depth experience performing specialized work for government entities across New York State. We understand complex organizations and always approach our work from your perspective. If you have any questions regarding the information contained in this proposal or on any other matter, please contact Tim Doyle at(212)600-2854 or email tdoyle@bonadio com. We are available, at your --I convenience,to meet with you to discuss any questions you may have and to demonstrate our interest f in serving the Town. Very truly yours, THE BONADIO GROUP Y_e�� Timothy J. Doyle, CPA Heather Briggs, CPA Partner Principal ( i I f rl Independence �__I We assure you that our relationship with other towns that are current Bonadio clients will not affect our ability to serve the Town with the type of dedication, commitment, and professionalism you expect We will provide a secure, discreet, and confidential environment and would like the Town to note the following i � • Team members will maintain the strictest confidentiality related to information obtained during the audit process. I We currently work with other towns and have maintained our commitment to discretion and I - confidentiality. We have a wealth of experience in providing confidential and discreet services to multiple clients Bonadio is independent with respect to the Town in accordance with Rule 101 of the AICPA's "Code of -" Professional Conduct," and its interpretations and rulings. Bonadio is independent of the Town as defined by auditing standards generally accepted in the United States of America, the U.S. General Accounting Office's Government Auditing Standards and no conflicts of interest exist. We have not provided any services to the Town in the past five years. In order to ensure that we are independent with all existing and new attest clients, we have an annual Ci process of surveying all employees and obtaining a response in writing as to any potential conflicts, which are then reviewed in detail and resolved. This process involves an individual, detail review of our full firm client list and answering a questionnaire with specific independence-related issues. In addition, on an ongoing basis, we inform our people of proposal opportunities to identify any potential conflicts that arise throughout the year Conflict of Interest i Bonadio affirms that our engagement with the Town will not create any potential conflict of interest or appearance of impropriety relating to other clients/customers of Bonadio or former officers and employees of the Town. Our firm has not been engaged by the Town in the last ten years. License to Practice in the State of New York Bonadio and all assigned key personnel and staff are properly credentialed to practice in New York State f, The staff assigned to this engagement have met all of the continuing education requirements necessary to satisfy the United States General Accounting Office (GAO)standards Federal or State Desk Reviews IBecause of the significant number of governmental agencies to whose regulations and standards we and our clients are subject, we periodically undergo routine inspections of various aspects of our professional practice. Should you engage us to provide services for you,we will discuss the nature and results of these I inspections, to the extent appropriate in the circumstances. However, no state (or federal) regulatory i 4 agencies or professional organizations have taken any disciplinary action(nor is there any pending)against our firm during the past five years. i Indemnification If engaged, we would need to discuss the indemnification clause noted in the RFP with the Town and propose some alternative wording as the clause noted is far reaching in that it does not in any way limit the exposure to our firm. We routinely work with other municipalities in coming to agreement in these matters. IF 11m BOIVADIO GROUP 1 L CPAs,Consultants &Vlore i l Core Services and Specific Audit Approach We have developed a process that results in increased satisfaction and better recommendations for our clients. In addition, our approach includes the use of a fully secure client portal that aids in the efficiency 1 of our audits. Please refer to Appendix B for more information on our use of technology in our audits. i Our approach is simple: M ® � LFi.II.tl LLL.➢1.1�1 i 1 ® � o m '� a J Timely, relevant Completion of Deliverables F! communication at preliminary and final provided on a timely the start of audit audit procedures basis and in an cycle based on pre- understandable • Clear, concise determined timelines format. requests for Communication with Keeping the Town - information for all key personnel and Board Members phases of the audit throughout audit apprised of key 9 On-line file portal for . Assignment of items impacting the sharing information qualified staff to your Town (industry, engagement GASB, etc.). ' Onsite involvement Attendance by - of manager and partner or principal (71 partner on level personnel at I engagement Board meetings. I ' L.) We integrate our standard audit procedures with the procedures for purposes of the Uniform Guidance. This allows us to deliver both reports to you simultaneously. Our approach is designed to provide you with efficient, high quality service at a reasonable cost. Based on the results of our planning, we will provide you with a list of information that will be required to complete the audit. This is done before work begins to give you sufficient time to gather the information. l THE BONADIO GROUP 2 CPAs,Consultants CBS More Core Services and Specific Audit Approach (Continued) C—} • Audit and issue an opinion on the General Purpose Financial Statements of the Town of Southold for the year ended December 31, 2020, such statements to be delivered to the Town not later than August 31, 2021 and July 31St in future years. Il -� • Audit and issue an opinion of the Town's compliance with Draft Part 43 of the New York State Codification of Rules and Regulations as they related to State Transportation Funding for the year i ended December 31, 2020 (if applicable). • Audit and issue an opinion of the Town's compliance with Uniform Guidance requirements for the I� year ended December 31, 2020 (if applicable) • Audit and issue an opinion of the Town's deferred comp plan for the year ended December 31, 2020 • Perform an agreed upon procedure related to the Town's Justice Courts for the year ended December 31, 2020. • Provide on-call assistance, as required. Should any special work arise that requires additional time, such as special audits, we will perform the additional services and provide a proposal for additional time and costs. Work Allocation and (Responsibilities Our audit work plans are not specifically assigned to staff levels, as we do not operate on such a rigid platform We are structured to meet the requirements of the engagement, which allows for flexibility in the audit areas assigned In general, the senior and staff accountants perform audit fieldwork. Technical matters are handled by principals and partners Bonadio will perform the audit of the financial statements of the Town,in accordance with auditing standards generally accepted in the United States of America as well as Government Auditing Standards. The objective of our audit is to issue an opinion as to the fair presentation of your financial statements in ` accordance with accounting principles generally accepted in the United States of America. _ In order to accomplish these objectives we emphasize effective planning on each engagement. Planning r includes:(1)a review of prior year financial statements and identification of any issues related to accounting LJ or financial reporting matters; (2) review of current year interim results of operations, budgets, and policies and procedure manuals(3)review of information systems and processing routines; (4)consideration of any new accounting, reporting, regulatory, and compliance requirements which would affect the Town, (5) and performance of interim audit procedures, if considered necessary _ This information is discussed with you in advance and is used as a basis to target our work to high-risk iareas rather than utilizing a"shotgun" approach. It also allows us to identify issues at the beginning of our work, prior to year-end. This approach provides the opportunity for you to address issues while action is still possible f L J THE BONADIO GROUP 3 Ms.Consultants(%More i~ Based on the results of our planning, we provide you with a list of information that will be required in order to complete the audits This is done before fieldwork begins to give you sufficient time to gather the information Our objective, of course, is to develop sufficient evidential matter to support our opinion without becoming too detailed and directing audit activities on insignificant or immaterial accounts. i Audit Dates Our experience with large municipal clients and our governmental team's year round focus ensures that we can complete your engagement in a timely manner. Our governmental team perform audits and consulting for our December year-end municipalities during traditional tax season occurring in the first quarter of the _ year Our team's lack of a"tax season"ensures that we can focus on you. We have prepared the schedule below based upon the information provided by you in your RFP for years after December 31, 2020. Should L the Town wish to discuss or change the schedule and tailor it in the future, our governmental group has the capacity and flexibility to meet the Town's request. Audit conducted in 2021 (quick turnaround) Focus Area Preliminary Final Draft .Final . ,.'` Work°_ Fieldwork Reports `Retoorts, . Town-wide General Purpose F/S Audit July 2021 ~ August August September and Management Letter(Including Deferred Comp Plan) Audit of the Town Under Uniform July 2021 August August September Guidance and for its compliance with ( Draft Part 43 of the New York State Codification of Rules and Regulations as they related to State Transportation Funding_(if applicable) Agreed upon procedures related to the July 2021 July July August r Justice Court On-call assistance As needed August August September Audit conducted 2022 and forward r- i . Focus Area Preliminary Final Draft Final Work Fieldwork_ Reports` Reciorts Town-wide General Purpose F/S Audit Dec 2021 May June July and Management Letter(Including Deferred Comp Plan) Audit of the Town Under Uniform Mar 2022 May June July Guidance and for its compliance with Draft Part 43 of the New York State f— Codification of Rules and Regulations as they related to State Transportation Funding (if applicable) (y Agreed upon procedures related to the Jan 2022 Jan'2022 February March Justice Court On-call assistance As needed March-Apr May As needed I� L THE B®NADIO GROUP 4 CPAs,Consultants C8Wore - , Estimated Hours by Staff Level (Uniform Guidance and NYS®OT audits excluded) Task Partner Principal Supervisory Staff Staff Planning . 20 20 30 60 � j 'Fieldwork 15 30 60 125 Total 35_ 5-0 90 i f I � i 'SHE MNADIO GROUP 5 CPAs.Consultants(&bio re � f I I � jOur typical audit tirrnel'ine is as follows: The Town is a large, dynamic and complex organization with diverse audit needs. We have found that I collaborative advance planning is the key to performing audits such as the Town's. Our firm has the size and experience to devote significant resources to first breaking the audit down into its individual components,then we will work with you to develop a timeline and audit approach that meets your needs. The following timeframe ensures year-round communication, significant Partner involvement, and sufficient - hours to fulfill your needs and expectations. We have prepared our best estimate of the timing of the engagement; however, we will work with the Town to establish a timeframe that is appropriate We are ( l committed to meeting your deadlines. Day I • Conduct meetings with management to discuss audit process,timing, and further understand the Town's needs and expectations. • Understand, assist, prioritize, and plan for current-year issues affecting the Town o Impact of new and proposed accounting and auditing standards o Impact of new and proposed governmental accounting and audit standards. 4 o Regulatory developments (especially Uniform Guidance issues and GASB) o Governmental industry developments -, • Prepare engagement letter I i As soon as practical after appointment • Complete our review of the prior audit reports to gain perspective on potential issues and historical background. • Meet with prior auditors and review prior workpapers Gather and review permanent file documents < 0 Develop a summary of audit requirements and client assistance list and provide to the Town finance _ personnel and various departments. • Meet with management to review audit strategy and timing. December-January (July in year 1) • Complete review of internal accounting controls and operating, financial, information systems and compliance processes This will be accomplished through interviews and testing of procedures Perform interim testing of significant accounts as necessary I Prepare preliminary detailed audit plan • Perform preliminary analytical procedures -, 0 Identify accounts for which confirmations will be required. • Conduct progress meetings Provide detailed list of schedules needed F � 1 �t THE BoNADio GROUP 6 1 CPAs.ConadtantSC$Wore I r �l Our typical audit timeline (Continued) May (August in Year 1) • Perform year-end audit fieldwork at the Town • Perform final analytical procedures Perform audit partner and quality assurance review. t � .Dune-July (September in Year 1) iPreliminary audit report draft and review management letter comments with management LJ9 Conduct progress meetings Review draft of financial statements, management letter,financial highlights,and reporting package ? with Audit Committee and management August(September in Year 1) Review financial highlights and audit results with management and Council as appropriate. • Conduct closing meetings. • The Town and Bonadio Meeting ("Exit conference") o Meet with management to discuss service and review the"measured value"against needs and expectations in the client service plan o Final reports issued Lj �Y 1 l ! 'SHE BONADIO GROUP 7 CPAs.Consonants C81I itifore nyq ? `-` Perform General Planning (—} • Online file portal for sharing of info. y ' 3 • Obtain understanding of Town and operations Assess overall control —' Source Data environment Determine significant accounts Identify significant information i and processes • Consider types of errors or possible misstatements N° I Risk Assessment • Perform test of controls Assign risk assessments • Identify and evaluate relevant _°_ ° n •� controls to all audit areas k`+rtn Develop audit program based on assessments Execute Audit - On-site fieldwork -, Perform substantive tests of balances - 77`a7 ' Obtain relevant audit 4 evidence from internal and f l Reporting external sources • Prepare and assist in financial statements • Meetings with management D" _` and committees • Present final reports to Prepare Board Discuss recently completed audit ' Discuss impact of future factors (Town initiatives, GASB pronouncements, etc.) . F LJ �r F THE BONADIO GROUP 8 CPAs,Consultants(&More Single Audit for Federal and State (Programs We utilize an insightful and fully coordinated audit approach in order to perform efficient single audits. Our procedures and approach will include • Evaluation of internal controls impacting Federal and covered State programs to determine management controls subject to testing, appropriate manner to evaluate and document controls over J Federal and State financial assistance programs; and how the internal control structure impacts the related tests of compliance with laws and regulations F . Perform dual-purpose tests relative to tests of compliance with laws and regulations to determine that stated controls comply with Federal and State administrative requirements The terms and conditions of each award will be reviewed to determine compliance with their specific Federal and State �{ requirements, as applicable. Our testing methodology provides an efficient and effective approach l � • Determine the number of transactions selected for testing based on compliance requirements, assessed levels of internal control risk,and other evidence gathered through related audit procedures. L; • Discussion of all single audit exceptions with the Town and responsible individuals to ensure complete communication, understanding, adequate opportunity for response and timely resolution of issues. The number of findings an organization experiences can vary widely, depending on the organization's commitment to excellence Our experience at both ends of this spectrum will guide the Town through the required reporting process. i Approach to be taken to document and test internal controls. To document our client's internal controls,we employ: • efficient, practical and proven interview techniques, including interviews with key personnel outside the finance area, . review of existing policies and procedures documentation, and questionnaires, flowcharting and memoranda After we have documented our understanding of the Town's internal controls,we will assess which controls we will test for the purpose of reliance on the systems they support. This assessment will be based on how effective we deem certain processes to be as designed coupled with the efficiencies to be gained by reducing substantive testing in certain areas i Approach to be taken to determine laws and regulations subject to audit and test for each entity. To determine the laws and regulations subject to audit, we will obtain and review copies of all material contracts, governing laws, grants and other agreements into which the Town has entered In addition,we will discuss and confirm additional information with respect to laws and regulations, as deemed appropriate with the Town's internal and external legal counsel. Similarly,we will review various relevant laws and regulations to which the Town is subject by virtue of its relationship with New York State and the Federal government r-- 1 l � tm BONADIO GROUP 9 F CPAs,ConsuJ=Li(&More L Sample sizes for tests of controls, compliance and substantive work to be performed at each entity. In determining sample sizes for our testing of internal controls as well as compliance with provisions of laws, i regulations, contracts and grants, our sample size will be dependent on the number and amount of transactions comprising the area to be tested. We will also consider the frequency of manual intervention in the account or area being tested in determining sample size For substantive tests, which will focus primarily on balance sheet accounts, where we will consider materiality thresholds calculated at the opinion unit level, j and the risk associated with a particular account or financial statement line item Anticipated Potential Audit Problems Although we do not anticipate any problems in our audit, matters do often arise that can delay the audit or create inefficiencies in the process. These problems are often a result of poor communication At Bonadio, we pride ourselves in providing proactive communication and "no surprises". We will communicate with you early and often and set up protocols that will avoid any problems in the audit process We encourage i you to talk to our client and have them tell you of the problem free audits we deliver Information Technology Approach to Audit After a significant investment, Bonadio has implemented systems and procedures, which make efficient use of technology as part of the audit process. Our "paperless" audit environment (ProSystems Fx Engagement) allows us to use information you provide in electronic form to minimize the time and cost associated with you having to provide us with paper copies of the data and support we need for our audit ` documentation In addition,we utilize a client portal to facilitate an efficient process by allowing us to share timetables, document requests and file transfers with our clients over a secure network. This use of 1r technology in the audit process saves our clients and us time, money and resources. We also subscribe to on-line research tools to provide us real time access to accounting pronouncements, professional standards and regulatory information related to audit, accounting, regulatory and tax matters �1 With growing reliance on information technology, the Town expects and deserves an auditor who understands complex, highly interconnected systems, processes and fund-based applications and their day-to-day user and privileged access control requirements. We understand a variety of general ledger software packages as well as the databases supporting your business information systems As part of our ` audit procedures, we will involve members of our Enterprise Risk Management (ERM) Group experience to gather, update and test the IT general computer controls and application controls necessary to be able to develop an effective and efficient audit strategy. 4 Bonadio will identify key controls relating to user and privileged access to critical systems and confidential r-� data and will highlight risks that may exist related to the system and application change controls and system security. We will also work with you to ensure that you are maximizing the functionality of your general ledger software Finally, we will prepare our data assurance recommendations focused on the Town's controls—those uniquely needed for you, not to some nebulous standard or process rf The additional tools and steps we'll employ for our audits include the use of Bonadio IT professionals whose ' extensive experience helps them to foresee potential problems early in the process and raise the concerns to an appropriate level of management. These professionals are required to follow the highest ethical standards and training provided in the industry from organizations such as the AICPA, IIA, ISACA, and ACFE, including minimum continuing professional training and ongoing Bonadio and industry education in the SAS rules and processes, audit standards, and controls. We will meet with management, finance r committee and board members to present the results of our work. l J� THE BONADIO GROUP 10 �- CPAs,ConsultanLT&X1ore Management letters (SAS 'I IS) Professional standards outline and dictate the types of internal control matters that are required to be reported in this letter We utilize this separate report to provide our assessment of your operations both financially and operationally and highlight suggestions designed to improve profitability or efficiency. We will devote a substantial amount of time preparing this report using knowledge of your operations and our business experience We will meet with you to review this report and then work with you to implement change. Financial statements, management letters and all other presentation materials are reviewed with -� you prior to finalization in order to ensure that all information is accurate and there are no surprises. ( Client Assistance r i ` We will request supporting documentation related to the balance sheet accounts as well as key revenue and expenditure activity. The information we request will be provided to you well in advance and will be able to be loaded directly to a client data portal that facilitates the exchange of documents between you and Bonadio in a secure format. No more sending large files or sensitive data through email. Our process eliminates the confusion of lost emails that occurs in typical audits. Our clients love utilizing this feature when working on the audit. Because we are a paperless audit practice, it is very rare that we need to retain any paper copy client documents. Our audit documentation is stored electronically, and when necessary, scanned immediately onsite During our procedures, we will obtain client documents for testing purposes, but that information is returned to you in the manner it was presented to us Workpaper Review Process �- We may from time to time, and depending on the circumstances, be required to make working papers available, upon request, to parties or designees outlined in your request for proposal and to successor auditors In making our workpapers available,we may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly,we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, or when such an agreement is not required,you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider L� THE B®NADIU GROUP 11 i CPAs.ConsWtantS(&More �l� i Workload Volume Our government team is just that— a team of professionals exclusively dedicated to government clients. ( i There are no tax or other competing deadlines we have to meet that could take us away from serving you. Combined with our significant resources and bench strength, Bonadio is uniquely positioned to provide the Town with unparalleled client service and to exceed expectations on all deliverables. �I Last year, our Government team performed audit and consulting work for our over 300 government clients y last year totaling over 66,000 hours. Our positive employee retention is an indicator of the strong culture we have built that rewards hard work while also embracing a work life balance. Our positive client references will attest that they experience consistency in the teams that serve them and outstanding service by experts in the industry. � I 1_ r t_ J i F, l_ + THE BONADIO GROUP 12 CPAs.Consultants CBI lIlore F` [Pam am&� IF 2 jBig Firm Capability. Small Firm Personality l Overview of - Bonadio Group .e 100 CPA Firm 10 locations Client Types&Services • Albany • New York City Who We Serve: Services: . Batavia . Rochester . Governments • Accounting • Buffalo • Syracuse • Public Authorities &Auditing • East Aurora • Utica • Real Estate Developers • Business Advisory L • Geneva • Rutland,VT • Healthcare • Healthcare • Individuals Consulting ' Unions • IT Consulting Approximately 750 employees More than$100 million/year in firm revenues Tax-Exempt : Risk Management • Public Companies Tax Planning Fr 140+partners/principals • Small Businesses &Preparation 110+managers • Mid-Sized Privately-Held • Colleges and Universities I_ a Bonadio was founded in 1978 with two partners and one part-time employee. Our firm has grown to be the largest independent provider of accounting, business advisory and financial services in New York. Our offices employ approximately 750 full-time employees We serve organizations that desire quality professional accounting and other services at a reasonable cost and who need personalized and timely delivery. Bonadio provides an environment where creative, people-oriented professionals practice accounting and consulting services without some of the constraints inherent in large, bureaucratic firms. We believe that our size is a reflection of the outstanding service level we provide to all of our clients. It is this combination that has made us successful and is responsible for our continued growth We provide highly technical and quality service commensurate with that of the largest certified public accounting firms. However, we are able to respond quickly and personally to the needs of our clients because we are structured to service our clients in this way. You will interact regularly with our most experienced personnel, i e., our partners, principals and managers. This is in sharp contrast to most accounting firms where quality involvement of their most experienced personnel is limited. There is no national office hierarchy to contend with so any matters requiring consultation can be dealt with in our office. This enables prompt turnaround and the ability to deliver timely and outstanding service to our clients. • A Top 100 CPA Firm in the U.S. by Public Accounting Report and Inside Public Accounting. Ranked 431d in 2020 on Accounting Today's list of Top 100 Firms _ Identified by Practical Accountant as a CPA Innovative Firm. • Identified by Accounting&Financial Women's Alliance(AFWA)and the American Women's Society of Certified Public Accountants(AWSCPA)as a Best Accounting Firm for Women -` 'SHE BONADIO GROUP 13 CPAs Constiltams(&.More r Specific Expertise ® . fI Simply put The Bonadio Group's government • City of Cortland • County of Schoharie experience and expertise is extensive and growing. • City of Long Beach • County of Seneca In addition to being one of the largest independent • City of Niagara Falls • County of Steuben CPA firms in the State, we maintain one of the • City of Troy • County of Sullivan largest government practices With a roster of • City of Syracuse • Eastern Suffolk BOCES more than 300 government clients and the • City of Port Jervis • Haverstraw—Stony Point bench strength of 12 partners averaging over . City of New Rochelle Central School District ( ? twenty years' experience, we are confident in . City of Utica • Irvington Union Free our ability to serve your needs. Town of Albion School District • Town of Canandaigua • Nassau BOCES Audit Quality Center Participation • Town of Clarkstown • Newburgh Enlarged City Town of Glennville School District I , • Town of Greece • Orange Ulster BOCES • Town of Grand Island • Putnam Northern A I C PA6 Town of Irondequoit Westchester BOCES + 4CT. • Town of Murray • Rochester-Genesee Governmental Audit • Town of North Castle Regional Transportation f Quality Center Town of Penfield Authority • Town of Pittsford • Southern Westchester �� • Town of Perry BOCES We are a member of AICPA's Government Audit • Town of Schodack • Suffolk Community 1 Quality Center. We are proud of the quality of our • Town of Windham College work. of Smithtown • Monroe County Airport T work. In order to ensure that this high level of quality is maintained, we have established a Chautauqua County Authority comprehensive quality assurance program. This County of Broome • Monroe County Water program starts with hiring the best people available County of Nassau Authority and continues with extensive training - 80 hours County of Erie • Western Regional Off- annually, per person, on average. We are also County of Greene Track Betting ( members of the AICPA Center for Public Company County of Livingston Corporation Audit Firms and Moore Stephens International. We County of Monroe • Western Suffolk BOCES L annually attend the AICPA National Government County of Niagara • 50+Other School Conference and all managers,seniors and staff are County of Onondaga Districts h required to attend annual in-house training on I audits of government agencies County of Ontario (Health facility and Of most importance to us is our commitment to the project work) ^� AICPA Government Audit Quality Center Involvement in this is optional but indicates a level of commitment above all other non-member CPA firms. Our participation requires that our firm and personnel attain additional continuing professional education on an annual basis. We have an established program which ensures that all audit engagement personnel possess current knowledge, appropriate to their level of involvement in the engagement, of applicable professional standards, rules, and regulations. Our clients all benefit from Bonadio's commitment to quality Quality is not an add-on process at Bonadio. Rather, it is engrained in our corporate culture and is integral to all aspects of our client service.The quality process begins with a well thought out approach to service delivery From the selection of experienced personnel to serve you and development of a client specific comprehensive audit plan, you will gain from our commitment to quality in providing the requested services. �a -- IYM BONADID GROUP 14 CPAs.ConsultTviv;( More Similar Engagements with Other Government Entities When it comes to the business of government, Bonadio is all business. Whether it's performing an annual financial statement audit, analyzing cost containment and savings opportunities, or attacking Medicaid fraud and abuse, !; Bonadio is prepared to deliver outstanding results for reasonable fees. On an annual basis, Bonadio conducts hundreds of different types of audits for a variety of governmental entities r We audit financial statements, perform compliance and operational audits, help our clients assess and remediate risk, help with preparation of the Comprehensive Annual Financial Report, &More. Our auditors are charged with .a understanding and applying the most recent Govemment Accounting Standards Board (GASB), Government Auditing Standards ("Yellow Book"), and other auditing standards, and are known for their responsiveness, I ~; dedication to detail, insightful management reports, and ability to communicate findings in an understandable manner. Beyond audits, Bonadio works with governmental entities to find ways to cut operational costs, streamline operations, eliminate waste, and identify fraud. Our CPAs and MBAs bring real world, hands-on experience backed by academic and professional credentials in internal auditing, information systems auditing, forensic accounting, integrated resource management, and purchasing management, among other services 1 Bonadio provides a comprehensive array of services to its clients. Our current offerings include audit and accounting, tax, and consulting (including both systems and operational review capabilities, health care consulting, business advisory services, personal and family finance). The breadth of services we are able to provide ensures that your needs are met both timely and effectively by your client service team. In addition to core audit services, examples of special projects where we have assisted government clients include: PILOT studies (Industrial Development Agencies &for municipalities) Analysis of workforce needs • Recommendations on rates to be charged for municipal services r� Developing cash receipts procedures and the related training of staff L Various internal control analyses, including financial and operational f Procedures documentation �s • Health services delivery models ff Project audits related to grant reimbursement submissions • Public Authority Accountability Act mandatory training r NYSDOT closeout audits � x u • Occupancy tax audits Comprehensive Annual Financial Report Preparation and Reviews THE BONADIO GROUP 15 CPAs,ConsWtanLi(&14ore L , . P Similar Engagements with Other Government Entities/References We have provided references for five relevant engagements that are similar in region or services below. We serve over 300 government clients and would be happy to provide additional references, if desired r' Nassau,County, _g Scope of Work: Consulting CAFR preparation Scope of Work:Audit, Uniform Guidance, State DOT, Engagement Partner:Tim Doyle Landfill compliance Total Hours: 500 Engagement Partner: Tim Doyle r Years Engaged: Since 2019 Total Hours: 450 Contact: Kim Brandeau, Deputy Comptroller Years Engaged: Since 2019 �- (516) 571-1129 Contact: Paul Rubano, Comptroller, or Katherine Corr 240 Old Country Road 631-360-7533 Mineola, NY 11501 40 Maple Avenue ? Smithtown, NY 11787 City of Long Beach Scope of Work: Audit, Uniform Guidance,State DOT, Scope of Work:Audit Engagement Principal: Heather Briggs Engagement Partner: Randy Shepard Total Hours: 600 Total Hours: 300 Years Engaged: 2019-2020 Years Engaged: Since 2009 Contact: Inna Resnick, Comptroller Contact: Pam Barton, Supervising Accountant (516)705-7223 (716) 773-9600 c . One West Chester Street 2255 Baseline Road Long Beach, NY 11561 Grand Island, NY 14072 �I Town G Scope of Work:Audit, Uniform Guidance, State DOT, CAFR, Justice audits Engagement Partner:Tim Doyle (� Total Hours: 300 Years Engaged: Since 2012 Contact:Abbas Surra, Director of Finance �l (914)273-3000 T 15 Bedford Road Armonk, NY 10504 ij A } Yi THE BONADIO GROUP 16 CPAs,Consultants(&NIore 1 1111111211111 Elm mill Deferred Compensation Plan Experience Bonadio performs over 400 plan audits each year and is one of the 30 largest CPA firms in the country in terms of the number of plans audited and the total dollars of Plan assets audited. We currently are the auditors of the Deferred Compensation Plans for Livingston, Monroe, Onondaga, Seneca, Steuben, and Yates Counties and the City of Syracuse I Uniform Grant Guidance Audi Experience Bonadio performs over 150 Uniform Grant Guidance audits for a variety of clients Our experience in this area is unmatched in the Upstate region. Our approach to completing audits under Uniform Grant Guidance is based on integrating, to the extent possible, audit procedures under Uniform Grant Guidance with the financial statement audit. As such, our total time is reduced and the disruption to your accounting staff is minimized. r-� We believe it is important to never lose sight of the risks and costs of noncompliance. Our extensive experience in this area can keep you focused on all emerging compliance issues. Any exceptions with regulations that are noted as part of our Uniform Grant Guidance audit will be discussed with the appropriate level of Town management. ! I Our approach to the audit of non-federal grants and contracts is similar to our federal approach—integration with the financial statement and Uniform Grant Guidance audits, obtaining a full understanding of the compliance required, and evaluation of internal controls and systems relating to the administration of the grants and contracts. These are areas we focus on to ensure an effective and efficient audit while at the same time, providing valuable insight to management relating to the programs I � Bonadio recognizes that regulatory compliance related to federally (and state) funded programs poses the greatest risk not only to our clients, but to our firm. As such, a large percentage of our hours will be centered on j testing of controls, transactions and compliance related to this area. You may see larger sample sizes than the past, and we will be spending considerable time auditing, documenting, and testing these awards. Comprehensive Annual Financial Report Experience ' Two members of our government team including your engagement partner Tim Doyle, are reviewers for the GFOA's Certificate of Achievement For Excellence In Financial Reporting Program Special Review Committee. Ir Each year they review numerous Comprehensive Annual Reports from municipalities nationwide in addition to the those that the firm audits. Our report quality control team, led by Heidi Bresler, CPA is independent of the delivery team and contains a professionals that have specific government industry experience. i 1_Y j � 1 �1 � k THE BONADIO GROUP 17 iCPAs,Consultants BC�More { TVIII With Bonadio,the Town will get an independent quality control process that ensures that all deliverables -a met all professional standards by a team that understands the National GFOA Certificate of Excellence process. During the last year, our Quality Control team reviewed the following Comprehensive Annual Financial Reports as part of the GFOA's Certificate of Achievement for Excellence In Financial Reporting Program Special Review Committee. County of Person North Carolina Town of Ayden, North Carolina Ramsey County, Minnesota Township of Falls, Pennsylvania -t Heartland Community College City of Modesto, California Village of Romeoville, Illinois Atlanta Independent School System Additionally,the following Comprehensive Annual Financial Reports have been prepared and/or audited by Bonadio: County of Steuben, New York County of Onondaga, New York County of Nassau, New York s Town of North Castle, New York City of New Rochelle, New York County of Broome, New York r-� i ! lYm BONADIO GROUP 18 CPAs,Coi-sLfl=9(&More I E ° MC d5M v NYS Department of Transportation Siegle Audit Experience and Expertise Bonadio performs over a dozen NYS Department of Transportation (NYSDOT) single audits for our clients. We understand the programs subject to this audit requirement and communicate with the personnel at NYS enforcing these standards. A partial list of clients that we have performed NYSDOT audits for Include, -, County of Greene City of New Rochelle City of Syracuse Onondaga County —' Madison County City of Long Beach i � Town of North Castle Steuben County Seneca County Monroe County Livingston County Town of Smithtown In addition,we also perform several closeout audits for local governments as required by NYSDOT. Client Project Department County of Columbia Various bridge projects NYS Department of Transportation County of Seneca Various bridge projects NYS Department of Transportation Town of Avon Avon Opera Block Project NYS Office of Parks and Recreation — Town of Wallkill Bridge Project NYS Department of Transportation Village of Fayetteville Canal Landing Park NYS Office of Parks and Recreation Village of Kinderhook Sidewalk project NYS Department of Transportation State of Connecticut Various Roads and Bridge Conn Department of Transportation �- Protects F), i l m BDNADI®GROIIP 19 I - CP?s,Consultants( More t Professional Excellence & Quality Control Bonadio has a strong and continual commitment to quality and education and dedicates significant professional resources necessary to ensure that our clients receive the highest possible quality of attestation services and deliverables. We have an entire team within our firm dedicated to ensuring that all of the firm's quality control processes and procedures are in accordance with Professional Standards. This team is known as the Professional Excellence Division. This team consists of partners, principals and managers who consult with Firm engagement teams on technical matters The Professional Excellence Division's expertise covers all industries serviced by the Firm. Additionally, the Professional Excellence Division is well versed in highly technical arenas, such as financial institutions (including broker-dealers), Uniform Guidance audits and employee benefit plan engagements, which provides yet another resource for you In addition, this team is responsible for a number of different areas, including • Performing all second partner quality reviews for (all Bonadio has a strong and continual offices), including on PCAOB engagements. commitment to quality and education,and dedicates significant • Researching all new technical accounting and auditing professional resources necessary _- pronouncements and providing appropriate communication to ensure that our clients receive i (technical memoranda,training sessions, etc.)on how they the highest possible quality of _ impact your engagement attestation services and _ • Performing inspections of income tax returns to ensure deliverables. quality and compliance with IRS regulations. • Developing and delivering a comprehensive training curriculum for all personnel of the firm (all divisions and j offices). • Facilitating outside continuing professional education seminars,on topics such as the American Jobs Creation Act • Peer review responsibilities, including internal monitoring of attest engagements on an annual and on-going basis. nJ, ' Assisting clients with the implementation of accounting pronouncements, including the new revenue recognition, and leasing standards In addition to the above responsibilities, the Professional Excellence Division is available to consult with you and your engagement team on a real time basis. We work with you to ensure that you receive real time advice on issues that you are experiencing We believe that this is a benefit that you will not find with other accounting firms and sets us further apart from our competition. The firm has a policy that requires every attest report issued by us to be reviewed and approved by the -1 Professional Excellence Division. Finally, yet importantly, our quality assurance program is complemented by a triennial peer review, the most recent of which was executed in October 2020; see Appendix A I f tm BONADIO GROUP 20 CPAs,Consultants(&Fiore v'Wuuu�=.).:a=.0 ® l:M.ILLIJI 0 ` `7••'�' � ��r. CPAS, Consultants and More i Value-added services. We offer a vast array of professional services beyond traditional accounting and tax services, most of which have grown out of the fact that our client relationships put us in a unique position to use a holistic approach to serving our clients. As opposed to using multiple service providers that don't have the relevant understanding of you and your business, we provide highly targeted solutions specifically designed for you We provide these services with the same passion and intensity as our traditional lines of business, often I hiring experts from various non-traditional fields to lead these service offerings for our firm Some of the additional services we provide include financing, IT consulting services, staffing services, cost segregation studies, tangible property regulations analysis, and business valuations. We bring these ancillary (� services to the table when needed, to help you save money and achieve your goals. The Bonadio Group engagement team knows governments. Our knowledge and expertise enable us to guide our clients and help them operate successful and thriving businesses We are familiar with the risks and issues facing your business, and we will help you find solutions before these issues become problems. We take aProactive approach to keeping clients apprised of the latest policies and changes by offering on-site annual staff training in cyber security and accounting updates. These concise presentations review best practices and provide a forum for your staff to get answers from our subject matter experts We find these training opportunities to be mutually beneficial as they ensure that everyone stays current on the latest industry developments. j Sonadlo Services for Government Entities We have significant experience working with the following' • Auditing- 0 Financial • Uniform Grant Guidance • Claims • Internal • Employee Benefit Plans(457 Plans) - . Operational, Efficiency, Performance l • Vendor Requirements, Performance, Billing �— Benchmarking & Best Practice Projects • Human resources consulting �! Board Governance:Assessment, Program Development, &Training • Cost Allocation • Contract Performance Monitoring irk Cost Containment&Savings Assessments • Cost/Benefit Analysis • Expense Reduction Analysis • Forensic Accounting • Internal Control Assessment, Remediation, Documentation, &Testing • Internal Departmental Audits • Management Information Systems Analysis &Enhancements •SAS 70 ( •Strategic Planning � I I � I I ; Dm BONADIO GROUP 21 CPAs,Consukants(&�Iore Li r � 4 Professional Affiliations We are members of the following professional organizations(not all inclusive)- New York State Society of CPAs Public Schools Committee L Governmental Finance Officers Association (National and Local) New York State Association of Counties Association of School Business Officials -- American Institute of Certified Public Accountants (AICPA) (includes AICPA Quality Center) Association of Certified Fraud Examiners In addition, we have provided continuing education sessions to these groups on topics such as GASB 75, Fraud, Internal Controls, Reading Financial Statements, Government Accounting Standards, and Ethics. Tim Doyle is the At Large Board member serving the northeast region for the New York State Government Finance Officers Association. Tim is also a member of the GFOA's Accounting, Auditing & Financial Reporting that recently tested before GASB on the proposed new governmental reporting model. r I I ri I ! �i if I I i THE BONADIO GROUP 22 r I CPAs,Consultants(&,More Partner, Supervisory and Staff Qualifications and Experience i We believe that our people make the difference. The personnel assigned to serve you have a unique blend I of audit, governmental, and business consulting experience. The Town's audit will be serviced from our Metro NYC office,which means we are available on short notice to meet with you or for phone discussions. Each member of the audit staff assigned to this engagement has exceeded all of the continuing education requirements necessary to satisfy the Single Audit Act and the United States Government Accountability I r Office(GAO) standards Bonadio offers stable engagement teams comprised of professionals with longevity. Our Firm experiences very low turnover, providing consistency in staffing. Team members included in this proposal will return in each year to ensure efficiency and limit re-training. Bonadio places special emphasis on staff continuity Each individual included in this proposal has been carefully selected based upon relevant experience. F-, Bonadio has not made any staff reductions, reorganization, or strategic changes in the past year, nor are there any planned that would affect the professional performance of the engagement with i- the Town. Our team of audit professionals employ a hands on approach which, combined with experience-leveraged knowledge, ensures a smooth, efficient audit from planning through delivery. Our engagement professionals possess the expertise necessary to form a dynamic delivery team. Each member of the team will have responsibility for specific aspects of your engagement, and the ultimate team goal: effective and timely completion of the entire project. i Tim Doyle will have overall responsibility for your audit services. r , CPE Requirements Please note that each member of the staff assigned to this engagement has met or exceeded all of the U continuing education requirements necessary to satisfy the Single Audit Act and the United States General Accountability Office(GAO) standards for the last 3 years i Each of our government team members have exceeded the minimum 24 hours of biennial CPE required by Government Auditing Standards; in fact many of our team members receive 30 or more governmental hours on an annual basis Our commitment and dedication to continuing professional education is second to none among our competitors. L-f Our proposed service team is outlined on the following page. If i ( i I � THE BoNADio GROUP 23 CPAs,ConsuItants( A4ore ii Ilk- 1 Personnel Qualifications and Experience Clint Service Team r We believe that our people make the difference. The personnel assigned to serve you, Heather Briggs, Tim Doyle, Alan Walther, Gregg Evans, Kristen Clark, Tom Bruckel and Carl Cadregan have a unique blend of audit, and governmental consulting experience. �_~! Our proposed client service team is outlined below. Alan Walther Timothy Doyle Gregg Evans } Advisory Partner Heather Briggs Engagement Partner Advisory Partner Audit Principal l ' ` -C, Kristin Clark Tom Bruckel Carl Cadregari Quality Assurance Partner Tax Partner EVP-IT/ERM Managers and Staff h 1 Keri Lyke In Charge Auditor I � THE BONADIO GROUP 24 Ms,Consultants(L More . ,- Ir 7 Tim Doyle, CPA Kristen Clark, CPA Role: Engagement Partner Role: Quality Control Partner Duties: Tim is responsible for the overall Duties: Kristen will be responsible for the second F; engagement relationship. He is also the signing partner review and assisting as necessary on _ partner which means that he is ultimately technical matters as they arise Kristen and the responsible for the technical matters and all entire Professional Excellence Division are critical deliverables. In this way, Tim is the sole point of resources for all of our engagement teams. This j contact to ensure the consistent and timely delivery allows matters to be resolved timely and accurately of every aspect of this account. All members of the In addition, Kristen and her team are available,to team report to him. meet with you as necessary I � 1 � Heather Briggs, CPA Carl Cadregari, CISA Role: Audit Principal Role: Information Risk Management EVP Duties: Heather will function as an audit principal Duties: Carl is the head of our Information Risk Management Division and is responsible for all IT and oversee the day-to-day activities of the staff assigned to the engagement. She will be a key assessments performed in connection with our audit contact and resource for the audit team, as well as engagements. Each of our audits includes an ' the day-to-day accounting personnel at the allocation of resources towards the internal controls respective entity. Heather will report directly to Tim surrounding the IT environment, which is included in our audit costs. Carl will report directly to Heather. Kerr! Lycke Role: In Charge Auditor Tom Bruckel, CPA Role: Tax Advisory Partner Duties: Kerri is an In-Charge accountant in our government team with several years of professional Duties: Tom's breadth of knowledge and expertise experience providing audit and accounting services in the tax issues surrounding businesses, j in our Government, Compliance, and Labor government and individuals makes him an integral - Division. She focuses primarily on government part of our client service team. Tom will support clients including counties, cities, towns, school the Town when questions arise related to payroll r districts and public authorities Kerri will report to taxes, 1099s, or other tax matters Heather — Gregg Evans, CPA Alan Walther, CPA Role: Government Advisory Partner Role: Government Advisory Partner Duties: Gregg has nearly 20 years of experience } working closely with governments. In addition to Duties: It is Bonadio's philosophy to assign two providing technical reviews, Gregg utilizes his partners to our significant client engagements to expertise to provide expert solutions to the firm's ensure continuous communication and oversight at diverse client base. He has wide-ranging expertise all times during the engagement. While Tim will with financial statement audits, internal control ultimately be responsible for signing reports and evaluations, compliance requirements related to overall engagement management, Alan will be federal funding and fraud investigations equally knowledgeable and available to serve the Town. L I ' THE BONADIO GROUP 25 CPAs,Consultams(&More [J Timothy Doyle, CPQ,—Engagement Partner(tdoyle@bonadio.com) I ' Ift qhfmmun Tim Doyle is a partner in the Government Division of The Bonadio Group. He is a r licensed CPA in New York State and has met all federal and New York State continuing I ijE�- professional education requirements for supervision of audits performed under govermental auditing standards. With more than 30 years of experience in private and public accounting,Tim specializes in providing accounting, consulting and auditing services for a variety of government clients including counties, cities, towns, school districts, BOCES, community colleges, and New York State agencies. 1_% Tim is a frequent author, lecturer and panel member on topics including GASB 84, GASB 87;the new OMB Uniform Guidance audit requirements and other technical topics. He has presented at meetings of the New York State Government Finance Officers Association, the New York State Association of School Business Officers and the New York State Association of Counties, among others. Tim is an active member of the New York State Society of Certified Public Accountants, for which he currently serves on the board as Immediate Past President of the Northeast Chapter Tim is also a member of the NYS Society of CPAs Public School Accounting Committee and the BOCES Sub-committee,and co- chairs the Public Schools Accounting and Auditing Conference. He is also a member of the American Institute of Certified Public Accountants. During 2016, Tim began a ten-year term as the Northeast Region At-Large Board member of the NYS Government Finance Officers Association. i Tim is a graduate of the State University of New York at New Paltz. Tim currently serves as the Engagement Partner for the following relevant clients • Town of North Castle(OMB Uniform Guidance Audit, NYSDOT audit, CAFR) • Town of Smithtown (OMB Uniform Guidance Audit, NYSDOT audit, CAFR) • Town of Schodack(Financial Statement audit) • Town of Windham(Financial Statement audit) • City of New Rochelle(OMB Uniform Guidance Audit, NYSDOT, CAFR) • City of Yonkers(Internal audit) • Suffolk County Community College(OMB Uniform Guidance Audit) Nassau BOCES(OMB Uniform Guidance Audit) • Western Suffolk BOCES(OMB Uniform Guidance Audit) • Eastern Suffolk BOCES(OMB Uniform Guidance Audit) • County of Nassau(CAFR preparation and consulting) • Westbury UFSD (Accounting and reporting consulting) • Manhasset UFSD(Internal audit) • Jacob Javits Center(Internal audit) • State of Connecticut(DOT audits) r � F) THE i , -r r BONAI)IO GIt®UP 26 CPAs,Consul[ants CBS More L 1 1 � ppqq �V �! Heather Briggs, CPPB—Engagement Principal (hbriggs(),bonado.com) i � Heather is a principal in Bonadio's Government Division. Over two decades worth of accounting experience has given her extensive knowledge in the audits of government rt agencies in accordance with Uniform Grant Guidance including counties, cities, universities and school districts,to name a few. Heather spent time as a school district treasurer in the Capital District before returning to x l Public Accounting That experience helped her to better understand the audit process from the school district's perspective and to make the audit process more efficient. �- Heather audits approximately 7-8 Towns, Cities and Counties annually across the state i ; ' Heather's family was established on Long Island in the 1950's in Suffolk County, with business interests across the island as well. Heather is a member of the American Institute of Certified Public Accountants. She received her B.S. degree in Accounting from SUNY New Paltz in 1997 and a Masters in Accountancy from Phoenix University in 2010. Heather is a resident of Suffolk County Heather has served as the engagement lead on the following clients during the last 5 years; Suffolk County Community College Western Suffolk BOCES Eastern Suffolk BOCES Mattituck-Cutchogue SD ( ? Haverstraw-Stony Point CSD �! Putnam Northern Westchester BOCES City of Long Beach Town of Smithtown Town of Jerusalem Town of Springwater Village of Perry Imo, L� I ` r THE BHNADIH GROUP 27 CPAs,Consultants(&Nfore 101 - (— Alan Walther, CPA—Advisory Partner(awalther@bonadio com) ti Alan is a partner in the Government Division of The Bonadio Group, upstate New York's largest CPA and financial services firm. Prior to their merger with Bonadio, Alan was 1 - + � the partner in charge of Dorfman-Robbie's government/school district practice. He has been with the firm since 1987. He is a licensed CPA in New York, Massachusetts and Vermont and has met all federal and New York State continuing professional education requirements for supervision of audits performed under governmental auditing standards. �t Alan provides business, accounting, and auditing services for a variety of clients including NYS agencies, towns, cities, counties, libraries, and school districts. He has a concentration in large, multi-faceted audits and is accustomed to dealing with clients with complex organizational structures, multiple locations, and sophisticated IT operations.As a result of this work,Alan has developed extensive experience with respect i_ to compliance and reporting requirements for these organizations, knowledge of Governmental Accounting Standards Board (GASB) pronouncements, as well as the evaluation and design of internal accounting �1 systems. Alan received his B.S. degree in accounting from the State University of New York at Albany He is a member of the American Institute of Certified Public Accountants, NYS Society of Certified Public (I Accountants, Capital Chapter of the NYS ASBO, and serves on both the Public School Accounting Committee and Government Accounting Committees of the NYS Society of CPAs. Gregg Evans, CPA, CFE—Advisory Partner(gevans@bonadio com) Gregg is a partner and Government Compliance and Labor team leader in our j Syracuse office. He has 20 years of professional experience providing auditing, consulting, and accounting services to a variety of clients including municipalities, public authorities and other tax-exempt entities. As a result of this work, he has developed extensive experience with respect to compliance and reporting �- requirements for these organizations, knowledge of Governmental Accounting Standards Board (GASB) pronouncements, the NYS Public Authorities Reform Act, F federal compliance requirements, as well as the evaluation and design of internal controls. Greggs a graduate of Le Moyne College. He is a member of the New York State 99 9 Y 9 Society of Certified Public Accountants, American Institute of Certified Public Accountants and ! Association of Certified Farad Examiners 1 � Gregg serves on the Board of Directors for Central New York Services He is a recipient of the Central New York 40 Under Forty Award. i I � 1 , THE BONADIO GROUP 28 CPAs,Consultants CK�More I F! Thomas R, 11, uckel, CPA—Tax Partner(tbruckel@bonadio corn) Tom is a partner in Bonadio's Tax Division Prior to joining The Bonadio Group, Tom was a tax partner with PwC and the partner in charge of the upstate tax practice of Arthur Andersen& Co F1 :i# -' Tom works with clients of all sizes and specializes in closely held businesses with the objective of maximizing family wealth. He provides a wide variety of services including tax planning, ESOP feasibility studies, due diligence, entity structuring and restructuring, L! r compensation planning (including equity based), mergers and acquisitions (both domestic and foreign jurisdiction)and R&D credits. He is an expert in both international and multi-state tax issues and an innovator in the development of tax minimization strategies for all entities i Tom graduated with distinction in 1982 from Cornell University He is a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants. He is a past co-chair of RIT Tax Institute. V Ker! Lycke, In Charge (klycke@bonadio corn) Keri is an In-Charge Auditor in our NYC office with three years of professional experience providing audit and accounting services in our Government, Compliance, and Labor Division. She focuses primarily on government clients including over a dozen school district audits. Theresa graduated in 2012 with her B.S. in Accounting from Siena College. + i She went on to receive a M.S., in Accounting from The College of Saint Rose. I 3 _ - Keri is a Suffolk County resident. F1 YJ Kristen M. Clark, CPA, FHFMIiA—Quality Assurance Partner(kclark@bonadio com) Kristen is a member of our Board and serves as the Managing Partner of our Syracuse l Office, where she has responsibility for overall client service, partner and employee * engagement and market growth. In addition to this role, Kristen is Practice Leader for the ' firm's Professional Excellence Division,which is responsible for overall risk management, quality and education for the firm Kristen's experience has included providing ll r professional services to a wide range of tax-exempt and government organizations. This experience has included financial audits, special project consulting, and other professional engagements. Because of her work with not-for-profit, and governmental organizations, she has extensive knowledge of grant funding requirements and compliance auditing and reporting I Kristen received her B.S. degree in Accounting from St. John Fisher College in 1986. She is a fellow of the t_ Healthcare Financial Management Association (HFMA), a member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants,where she is a member of a statewide committee on peer reviews. C` She is also active in the local civic community as a Board member of Empire Justice Center,a Board member and past president of the Rochester Regional Chapter of the HFMA, a member of St John Fisher College School of Business Dean's Leadership Circle, and the United Way Women's Leadership Council Kristen lwas a finalist for the Athena Award and a recipient of the Rochester Business Journal's 40 Under 40 Award and finalist in the 2018 Athena Awards. r� 1�1 THE PONADIO GROUP 29 �� CPA.s,Consultants &More Carl Cadregarl, CiSA—Executive Vice President (ccadregari@bonadio corn) Carl is an executive vice president and the practice lead of Bonadio's IT/IS Enterprise _ Risk Management Team. Prior to joining Bonadio, Carl served as a technical marketing manager with a $1 billion information technology supplier, a business development consultant with a national engineering and consulting firm, and a systems engineer with an international electronics distribution company. Carl has more than 28 ears of experience in Information Technology and Information Y P 9Y Systems Security and Architecture, Deployment, project management, Security by Design, and governance. His expertise in technology controls, physical, administrative, and technical security, System Development Life Cycling, Enterprise Risk Management, Y Business Impact Analysis, and disaster recovery planning has been applied across companies with 10 to _ 17,000+employees across almost all vertical markets. In addition, Carl has more than 14 years in auditing rand standards compliance experience in HIPAA, HITECH, Red Flag Rule, Sarbanes Oxley, SAS70/SSAE16, WebTrust, SysTrust, Graham-Leach Bliley, PCI DSS, ISO 27001/2, FERPA, FISMA controls, and the successful application of the best practices of ISACA, OWASP, CSA, GTAG, COBIT, COSO, OAG, OVAL, ITIL Foundation, and IIA/AICPA, creates a valuable and unique blend of talent He is a member of the Information Systems Audit and Control Association (ISACA), HIMSS, Healthcare Financial Management Association (HFMA), Systems Administration Networking and Security Institute (SANS), and the Association of Certified Fraud Examiners (ACFE). He is a certified HIPAA Privacy and Security Auditor, Certified Information Systems Auditor(CISA), and Certified GIAC PCI Auditor, and holds a Master Certification in Computer Forensics from the IEEE.Carl is a member of the Healthcare Information Technology Standards Panel of the American National Standards Institute (ANSI). He has also published articles on The CIA Triad: Confidentiality, Integrity and Availability—Ethical Hacking for Internal Risk Management—Document Retention How to Avoid Six-Figure Legal Fees, and Cloud Computing Audit and Security Requirements. -- Staff Continuity - ; As a professional service firm, we understand that a primary concern of most clients is continuity of people assigned.We are extremely sensitive to this issue and assure you that we will make every effort to maintain continuity of personnel on your engagement to ensure that you will be served by the individuals most familiar with your account. Our proposed team is committed to maintaining a long-term professional relationship that will benefit you in future years. Given the importance of the Town to our firm,we may assign additional supervisory resources to assist the audit team to ensure all deliverables are issued with our agreed to timelines These resources are full-time employees and will be managed by Tim j Bonadio's current staff turnover rate is approximately 12% per year, well below the accounting industry norms of up to 30%. We are strongly committed to driving our retention rate up as a means of ensuring staff continuity for our clients ( , 11m BoNoio GR®UP 30 Lf CPAs,Consultants(&More — ',V_',""`�Y�t7` �4 :,'�-a' ,v `�'�,"rr �,p•. fir= .�T"Y.,'� ��, 1117 M' r Client Service, Responsiveness and Proactive Communications f Frequent Maximum Interaction with ' 5'•y_`hf-int`` .. - our partners ' value for t ! and principals feesipald + j Client Service j The foundation of our service plan is our high standards of quality and responsiveness, the depth and diversity of services we can deliver, and the partner, principal and manager expertise that we bring. It is these attributes that differentiate us from other firms Ultimately,we want you to view us as a business asset, not an overhead cost R } i THE BON010 GROUP 31 CPAs,Consultants(&More l_t Req6lred'Documants CN t � � l I r_. I ` �K �-t F? Professional Auditing and Accounting Services For The Town of Southold, Suffolk County, New York i k I ' Request for Proposal �j PROPOSAL SUBMITTED BY: (Signature of Proposer) Timothy J.Doyle,CPA,Partner (Printed Name and Title of Proposer) F1Bonadio&CO..LLP June 8,2021 (Company or Corporation) Date F! _1 488 Madison Avenue,New York,NY 10022 Address,Town, State, Zip r-r Ph:212-600-2854,Fax: 518-464-4087,Email:tdoyle@bonadio.com � Telephone,FAX,Pager, e-mail address CORPORATE SEAL � 26 �_i �—z _i Non Collusive Proposal Certification r- � r IJ The undersigned proposer affirms as true,under the penalties of perjury, as follows: (1) The prices and practices in his/her proposal have been arrived at independently without collusion, consultation, communication, or agreement for the purpose of restricting + competition, as to any matter relating to such prices with any other proposer or with any tr; r1 competitor; (2) Unless otherwise required by law, the presentation which has been quoted in this proposal has not knowingly been disclosed by the proposer and will not knowingly be disclosed by the proposer prior to opening, directly or indirectly, to any other proposer or to any competitor; (3) No attempt has been made or will be made by the proposer to induce any other _J person, partnership or corporation to not submit a proposal for the purpose of restricting competition; and (4) Neither the undersigned nor, if the proposer is a partnership, joint venture or corporation, any partner, principal, officer, director, employee or stockholder holding in excess of five (5%) percent interest in the corporation, is an officer or employee of the Town of Southold, or paid with The Town funds, or required to disclose an interest pursuant to the Town of Southold Code of Ethics. 1 PRINT NAME Timothy J.Doyle,CPA Partner I ? (SIGNED) !— CORPORATE TITLE J (IF APPLICABLE Corporate Seal 7 P&N 8550 United Plaza ,Ste - Baton Rouge,LA 70809 � 225-922-4600 Phonene - 225-925-9 22-4611 Fax - pncpa coin Postlethwaite&Netterv+tte A Professional Accounting Corporation { P Report on the Firm's System of Quality Control To the Partners of Bonadio&Co.,LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Bonadio&Co.,LLP(the firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended April 30,2020. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants ( r (Standards). I � - A summary of the nature,objectives,scope,limitations of,and the procedures performed in a System Review as described in the Standards maybe found at www aicna.org,/yrsumrnarv. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards,if any,are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control,if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review I Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act;audits of employee benefit plans,an audit performed under FDICIA,an audit of a broker-dealer,and examinations of service organizations[SOC 1 and SOC 2 engagements]. As part of our peer review,we considered reviews by regulatory entities as communicated to the funs,if applicable, in determining the nature and extent of our procedures Opinion In our opinion,the system of quality control for the accounting and auditing practice of Bonadio & Co., LLP applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended April 30,2020, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects Firms can receive a rating of pass,pass with deficiency(:es)or fail Bonadio&Co.,LLP has received a peer review rating of pass Baton Rouge,Louisiana October 19,2020 i� i 1 ' L a .�' '• :fir# fxx'"'-'-y'� k,8- ,,.v. � 1 Use of Technology in Our Audits Our staff are empowered with tools that allow us to provide our clients with efficient yet effective audits. In each audit, we utilize software that enables us to provide our clients with timely reporting and a focused approach that utilizes and efficient use of your staff's time while providing sound, sufficient audit evidence. Some examples include: -; Paperless audit approach—We obtain as much audit evidence from our clients digitally in the form of pdfs, excel, word or text files as possible in an effort to go green as well as eliminate the -- time and cost of our clients generating lengthy reports. All of our staff are equipped with dual monitors and scanners. Any document that cannot be provided in a digital format can be scanned into our audit package. This method is very efficient for the auditee as well as the auditor. • Dynamic "Live" Financial Statements — For each engagement, the financial statements, including the footnotes, are dynamically linked to the client's trial balance within our audit software. That means that from the time the trial balances are loaded to the last audit entry (assuming there are any), the financial statements are being updated"live" in the field. � j j I Focused automated risk assessment—We utilize a software package that enables our auditors to document their understanding of your specific control environment and produce an audit approach that is tailored to your strengths and weaknesses. • Data mining,sample selections,etc. —We utilize IDEA and ACL data extraction software that allows us to analyze large amounts of data in a very efficient manner. Use of the software allows us to note patterns of data, search for specific items such as related party transactions, stratify data and many other functions Additionally,we utilize random number generators to ensure that no bias exists in our sampling. I � � I I I ; 4 I a i I 1 � I � 1 '+ fl i Use of T,echnolFi Bonadio Client Portal The Bonadio Client Portal is a secure cloud based portal providing several tools that streamline the audit —' process and ensure that everyone is on the same page with no surprises. Portal Actions:2 Selecteo- 1j - + https://bonadlo.myportal.team Download Set Item Add Hide Export Documents Private Item /Show PBC to Sections Excel Open Engagement/Project View and Customize Alerts f �..yPOTtBt Chan a Plcture .. V. 4 — F7'• �� i q0� � i Drag and Drop— d" " -• User Assigned •- ""'"'° Search Engagements/Projects Add New Client Users aen,u_er 1 ;1 Remove Client Users oue lvovm,c Users on Engagement/Project 1 amm u., ------ r VlewItem `�'""�• `"+ History Manage Files- r s sig,.,os�o.v.r;, Communicate( : ..�..- .�„,.•, ,. _,m,..°� on Item f i i Outstanding Received Q Verified Requires Revislon High Priority Item 1•:4—a E Only Client users assigned to this item can see the documents,comments and history 1 1 I `s r I I � r f r r- l Cisco WebEX Cisco WebEx is a video conferencing solution that allows us to interface face to face with our clients Video conferencing is not a replacement for face-to-face meetings, however, we do see this as a significant enhancement to our current client communications. The ability to host web based -r�• j - meetings will allow our client's audit committees to hold a i °�. ` _ �� �- virtual meeting should they - have travel issues or committee members that are out of town. Additionally, we believe a M face-to-face video call with our clients, including the ability to collaborate and comment on documents I -) shared on-screen, is significant enhancement to - -- the traditional phone call. This technology also allows us to host webinars for our clients throughout the state on emerging topics as they arise Our commitment to technology ensures that our clients obtain unmatched timeliness, cost efficiency and limited �- interruption to their staff. � i -j While we believe strongly that these capabilities have and continue to provide the most efficient audit to our clients, we remain flexible to what works best for our clients. ll lr- � I i ' i I � r , I Sealed Dollar Cost Bid Proposal For Professional Auditing Services June 9, 2021 ORIGINAL ---- ------------ - - - - -- Submitted to: Town of Southold Scott A. Russel Town Supervisor 54095 Main Road -� P.O. Box 1179 Southold, New York 11973 Submitted by: Tim Doyle, CPA, Partner i Heather Briggs, CPA, Principal Bonadio&Co., LLP 488 Madison Avenue New York, New York 10022 212-600-2854S hbriggs@bonadio.com = www.bonadio corn • firm capability. personality, THE BoNamo Roup 'Wt a ore � I I Bonadio&CO.,LLP June 9, 2021 Certified Public Accountants ' f Mr. Scott A. Russel Town Supervisor Town of Southold 54095 Main Road P O Box 1179 Southold, New York 11973 Dear Mr. Russel: It Is The Bonadio Group's (Bonadio) pleasure to submit this proposal to provide audit and accounting services to Town of Southold (the Town)for the year ending December 31, 2020, 2021 and 2022. Fees Our fees are based on the anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant events occur which change the level of effort required to complete your audit(I e., change in your key personnel, significant expansion in services, changes in auditing standards, etc.), we will discuss with you the need for a revised fee estimate and agree on an appropriate amount with you. We do not charge for out-of-pocket costs (mileage, postage, copying, etc.). To the extent that those costs are required, they are included In our fixed fee. Unlimited phone support In order to properly serve our clients, we need to know what the Issues affecting them are. We realize, however, that clients are sometimes hesitant to call us as they are concerned they will be nickeled and dimed with fees for phone calls. To encourage regular contact with our clients, we offer unlimited phone support throughout the year Because we will provide ongoing access to the accounting, auditing, and business advice you need on a fixed-price basis, you will not be Inhibited from seeking timely advice by fear of the meter endlessly running We want to offer you access to the accumulated wisdom of the firm through CPAs with substantial experience who can help you achieve your goals. I Very truly yours, The Bonadio Group 488 Madison Ave,23rd Floor Timothy J Doyle, CPA Heather Briggs, CPA New York,NY 10022 Partner Principal j p(212)600-2854 p www bonadio corn I ALBANY BATAVIA BUFFALO DALLAS EAST AURORA NY METRO AREA ROCHESTER RUTLAND SYRACUSE UTICA i Name of Firm Bonadio&Co, LLP (The Bonadio Group) Certification Timothy J. Doyle, CPA, Partner is authorized to submit the proposal, represent the firm and sign a contract with the Town. Proposed Annual Fee (Flat Rate Bid) Annual audit of Financial Statements Fee Fiscal Year ending December 31, 2020 $66,850 Fiscal Year ending December 31, 2021 $69,075 Fiscal Year ending December 31, 2022 $71,300 i ' Note — Uniform Guidance audits are required when federal awards exceeding $750,000 have been expended in the fiscal year.Additionally, NYSDOT audits are only required when a Uniform Guidance audit is required and the local government has expended NYSDOT awards in excess of the NYSDOT threshold Therefore, we have quoted those fees separately as they will likely not be required. Uniform Guidance and NYSDOT audit, if required Fee Fiscal Year ending December 31,2020 $ 9,850 Fiscal Year ending December 31, 2021 $10,100 Fiscal Year ending December 31,2022 $10,350 Out of Pocket Expenses We will not submit reimbursements for any out of pocket expenses(lodging, meals, etc.) To the extent we incur such expenses, they will be absorbed by us. Fees for additional services Should the Town desire additional consulting services, an agreed upon fee will be negotiated with you prior to our commencing any work You will never receive a bill from us that has not been previously authorized by you. � I Rates by Partner, Principal, Supervisory and Staff Level for additional services Hourly Rate Partner $325 Principal $295 Manager $255 Senior $175 j Staff Accountant $135 Manner of Payment Periodic invoices will be produced on the basis of hours of work completed during the course of the - engagement, up to the not to exceed price for the engagement Interim billings shall cover a period of not less than a calendar month The engagement will be billed monthly during the course of the engagement Tm BONADIO GROUP CPAs.Consult,um( Afore SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company Name Bonadio &CO.,LLP Fiscal Year 2020 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates I Partners 35 $454 $325 $11,375 Principals 50 $424 $295 $14,750 Supervisory Staff 90 $254 $175 $15,750 Staff 185 $179 $135 $24,975 Discount Other(specify Total all-inclusive maximum price for audit: $ 66,850 � I Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. i I 27 i I1 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company Name Bonadio &CO.,LLP Fiscal Year 2021 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 35 $454 $335 $11,725 Principal 50 $424 $305 $15,250 Supervisory Staff 90 $254 $180 $16,200 Staff 185 $179 $140 $25,900 Discount Other(specify Total all-inclusive maximum price for audit: $69,075 Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. 27 i SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company Name Bonadio &CO., LLP Fiscal Year 2022 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 35 $454 $345 $12,075 Principals 50 $424 $315 $15,750 Supervisory Staff 90 $254 $185 $16,650 Staff 185 $179 $145 $26,825 Discount Other(specify i Total all-inclusive maximum price for audit: $71,300 l Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. i , i 27 f34e3e03-94d1-4b61-9320-606f81ba6e4e lynda.rudder@town.southold.ny.us AFFIDAVIT OF PUBLICATION The Suffolk Times State of New York, County of Suffolk, The undersigned Is the authorized designee of Andrew Olsen,the publisher of The Suffolk Times,a Weekly Newspaper published in Suffolk County,New York. I certify that the public notice,a printed copy of which is attached hereto,was printed and published in this newspaper on the following dates: May 27,2021 This newspaper has been designated by the County Clerk of Suffolk County,as a newspaper of record in this county,and as such,is eligible to publish such notices. Signature Eliot T. Putnam Printed Name Subscribed and sworn to before me, This 04 day of lune 2021 NotarySigna re FN z NOTARY PUBLIC: w ALBANY OIRE63"M3 Notary Public Stamp rE A0 �•`�,,• SOUTHOLD TOWN BOARD 466 f34e3eO3-94d1-4b61-9320-606f81ba6e4e lynda.rudder@town.southoid.ny.us AFFIDAVIT OF PUBLICATION The Suffolk Times LEGAL NOTICE REQUEST FOR PROPOSALS NOTICE IS HEREBY GIVEN THAT SEALED PROPOSALS ARE SOUGHT AND REQUESTED FOR THE FOLLOWING: PROPOSAL NAME: "PROFESSIONAL AUDITING AND ACCOUNTING SERVICES FOR THE TOWN OF SOUTHOLD"A copy of the detailed proposal request may be obtained at the Southold Town Clerk's Office beginning May 19,2021 PLACE OF OPENINGS: TOWN OF SOUTHOLD DATE OF OPENINGS: June 10,2021 TIME OF OPENINGS:2:00 PM TOWN CLERKS OFFICE 53095 MAIN ROADSOUTHOLD,NY 11971 CONTACT PERSON: Kristie Hansen- Hightower,CPATown Comptroller 631-765-4333,kristieh@southoldtownny.gov VENDORS MUSTSUBMIT PROPOSALS IN SEALED ENVELOPES,PLEASE PRINT ON THE FACE OF ENVELOPE: 1)NAME&ADDRESS OF VENDOR AND 2)PROPOSAL NAME It is the proposer's responsibility to read the detailed Request for Proposals and provide a proposal. It is understood that the proposer has read,fully understands and will comply with all requirements.A non-refundable fee of$10.00 will be charged for a copy of the Request for Proposals and all attached documentation. Payment can be made by either money order,cash or business check(payable to the Town of Southold).The Town of Southold welcomes and encourages minority and women-owned businesses to participate in the proposal process.Dated: May 18,2021BY THE ORDER OF THESOUTHOLD TOWN BOARDElizabeth A.NevilleSouthold Town Clerk SOUTHOLD TOWN BOARD 457 STATE OF NEW YORK) SS: COUNTY OF SUFFOLK) ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold,New York being duly sworn, says that on the 24th day of May, 2021, a notice of which the annexed printed notice is a true copy was affixed, in a proper and substantial manner, in a most public place in the Town of Southold, Suffolk County,New York, to wit: Town Clerk's Bulletin Board, 53095 Main Road, Southold,New York and the Southold Town Website: www.southoldtownny. og_v RFP Audit Elizabeth A. Nbville Southold Town Clerk Sworn to before me on the 24th day of May , 2021 rn otary Public LYNDA M RUDDER Notary Public, State of New York No.01 RU6020932 Qualified in Suffolk County ;Commission Expires March 8,20-2.3 r • i Town of Southold 54375 Main Road PO Box 1179 Southold, NY 11971 co Request for Proposal Professional Auditing and Accounting Services For the Town of Southold, Suffolk County, New York May 18, 2021 t TOWN OF S OUTHOLD NEW YORK TOWN SUPERVISOR SCOTT A. RUSSELL TOWN BOARD JAMES DINIZIO, JR. JILL DOHERTY LOUISA EVANS ROBERT GHOSIO SARAH NAPPA TOWN COMPTROLLER KRISTIE L. HANSEN-HIGHTOWER, CPA 2 ATTENTION******************* Read thoroughly "Instructions to Bidders" and the legal advertisement relative to bid and other details on submitting offers. If bidder is a co-partnership, all partners must execute the bid, unless one partner has been authorized to sign for the co-partnership, in which case evidence of such authority shall be submitted. If a bidder is a corporation, the President and Secretary or a shareholder shall execute the bid. The Corporate Seal must be affixed. In the event that this bid is executed by a Vice-President in lieu of the President, please attach hereto a certified copy of that section of Corporate By-Laws authorizing the Vice-President to execute contracts of this kind. 3 T REQUEST FOR PROPOSALS PLEASE TAKE NOTICE that sealed proposals will be received up until 3:00 p.m., on June 9, 2021, at Southold Town Clerk, 54095 Main Road, PO Box 1179, Southold, NY 11971, for the following: PROFESSIONAL AUDITING AND ACCOUNTING SERVICES FOR THE TOWN OF SOUTHOLD Specifications may be obtained on the Town's website at or by contacting the Southold Town Clerk, Town Hall, 54095 Main Road, Southold, New York 11973 (631-765-1800). The Town of Southold reserves the right to reject any and all proposals, to waive all formalities on same and to accept those proposals which are in the best interest of the Town of Southold. Date: Southold, New York May 18, 2021 SCOTT A. RUSSEL Town Supervisor 4 4 Scope and Introduction to Request for Proposal A. General The Town of Southold ("the Town") is soliciting the services of qualified firms of certified public accountants to audit the financial statements of the Town, its Deferred Compensation Plan and its Justice Court for the 2020, 2021 and 2022 fiscal years. These audits are to be conducted in accordance with the provisions contained in this RFP. These audits may be awarded together or to separate firms. B. Scope of Work to be Conducted Town Financial Statements The auditor will issue a report on the fair presentation of the financial statements in conformity with generally accepted accounting principles, and a communication regarding internal control matters identified in the audit to those charged with governance and management. If applicable, the auditor will conduct an audit of each major federal program and on internal control over compliance as required by the OMB Compliance Supplement. The auditor will issue a report on internal control over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with Government Auditing Standards, and a report on compliance for each major federal program and on internal control over compliance as required by the Uniform Guidance, as applicable. Please note, there have been no major program audits in the last several years. The auditor will conduct an audit in accordance with 43 NYCRR that are applicable to the transportation assistance programs offered by the NYSDOT and issue a report on compliance and controls over State transportation assistance expended based on an audit of the financial statements performed in accordance with Government Auditing Standards. NOTE: Copies of prior year audited financial statements and annual budgets are available on the Town's website @ southoldtownny.gov. 5 Town Deferred Compensation Plan The auditor will issue a report on the fair presentation of the Deferred Compensation Plan for Employees of the Town of Southold's financial statements in conformity with generally accepted accounting principles, and a communication regarding internal control matters identified in the audit to those charged with governance and management. The audit shall be conducted with auditing standards generally accepted in the United States of America except that, as permitted by Regulation 29 CFR 2520.103-8 of the DOL's Rules and Regulations for Reporting and Disclosure under ERISA, no auditing procedures will be performed with respect to information prepared and certified to by Mass Mutual Retirement Services, the trustee, in accordance with DOL Regulation 29 CFR 2520.103-5, other than comparing the information with the related information included in the financial statements and supplemental schedules. Town Justice Court Audit The auditor will issue a report on the fair presentation of Town of Southold's Justice Courts' Combining Schedule of Cash Collections and Disbursements in conformity with generally accepted accounting principles, and a communication regarding internal control matters identified in the audit to those charged with governance and management. The audit shall be conducted with auditing standards generally accepted in the United States of America, and will include tests specifically to bail accounts. The Town reserves the right to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. The Town reserves the right to request additional information or clarifications from proposers, or to allow corrections of errors or omissions. Following review of submissions, and upon reasonable prior notice, proposers may be requested to make an oral presentation to the Town Board regarding their qualifications and bid proposal. The Town is not obligated in any way to require an oral presentation from each and every proposer. 6 Non Collusive Proposal Certification The undersigned proposer affirms as true, under the penalties of perjury, as follows: (1) The prices and practices in his/her proposal have been arrived at independently without collusion, consultation, communication, or agreement for the purpose of restricting competition, as to any matter relating to such prices with any other proposer or with any competitor; (2) Unless otherwise required by law, the presentation which has been quoted in this proposal has not knowingly been disclosed by the proposer and will not knowingly be disclosed by the proposer prior to opening, directly or indirectly, to any other proposer or to any competitor; (3) No attempt has been made or will be made by the proposer to induce any other person, partnership or corporation to not submit a proposal for the purpose of restricting competition; and (4) Neither the undersigned nor, if the proposer is a partnership, joint venture or corporation, any partner, principal, officer, director, employee or stockholder holding in excess of five (5%) percent interest in the corporation, is an officer or employee of the Town of Southold, or paid with The Town funds, or required to disclose an interest pursuant to the Town of Southold Code of Ethics. PRINT NAME (SIGNED) CORPORATE TITLE (IF APPLICABLE Corporate Seal 7 THE TOWN OF SOUTHOLD, NEW YORK Professional Auditing and Accounting Services For The Town of Southold, Suffolk County, New York REQUEST FOR PROPOSAL The undersigned, in submitting this proposal to the Town of Southold, declares that he/she is or they are the only person or persons interested in the same proposal; that it is made without any connection with any person making another proposal for the same agreement; that the proposal is in all respects fair and without collusion, fraud or mental reservation, and that no official of the Town or any person in employ of the Town is directly or indirectly interested in said proposal or in the supplies or work to which it relates, or in any portion of the profits thereof. The undersigned also hereby declares and agrees that he/she or they have carefully examined and reviewed the specifications and that he/she or they have personally examined the sites of the proposed operations and understand that in signing this proposal he/she or they waive all rights to plead any misunderstanding regarding the same. The undersigned further understands and agrees that he/she is or they are to operate in strict accordance with the terms of the agreement and specifications. All writing must be in ink. Proposals may be rejected if they show any alteration of terms, conditions or alternate proposals that are not invited, incomplete forms, or irregularities of any kind. More than one proposal from an individual, firm, or partnership, corporation or association under the same or different names will not be considered. No proposer may charge the Town for any costs associated with the preparation of any portion of his/her proposal contained herein. 8 This RFP constitutes only an invitation to make a proposal to the Town. The Town reserves, holds, and may in its sole discretion exercise the following rights and options with respect to the RFP and subsequent agreement: • To waive any informalities with respect to the submission requirements. • To reject any or all proposals. • To cancel this RFP with or without the substitution of another RFP. • To supplement, amend, or otherwise modify this RFP, prior to the time of public opening. • To issue additional and or subsequent RFPs. • To negotiate with the proposers for amendments or other modifications to their proposals. • To select and enter into an agreement with a vendor whose proposal best satisfies the overall interests of the Town. This RFP is not a strictly competitive bid. The Town reserves the right to select a proposal, without the amount offered as an annual cost being the sole determinative factor. The Town's decision-making process, which may include a public hearing before the Town Board, will be discretionary and will be in the best interests of the Town. The Town Board will consider an award to a responsible proposer, who best demonstrates relevant experience and expertise; who, upon evaluation of all proposals received, best responds to this Request for Proposals and who, in the judgment of The Town of Southold, will best serve the public interest. Scope of Work to be Conducted The auditor will issue a report on the fair presentation of the financial statements in conformity with generally accepted accounting principles, and a communication regarding internal control matters identified in the audit to those charged with governance and management. 9 If applicable, the auditor will conduct an audit of each Major federal program and on internal control over compliance as required by the OMB Compliance Supplement. The auditor will issue a report on internal control over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with Government Auditing Standards, and a report on compliance for each major federal program and on internal control over compliance as required by the Uniform Guidance. The auditor will conduct an audit in accordance with 43 NYCRR that are applicable to the transportation assistance programs offered by the NYSDOT and issue a report on compliance and controls over State transportation assistance expended based on an audit of the financial statements performed in accordance with Government Auditing Standards. Non Attest Services The auditor will provide the following nonattest services as it relates to the financial statements: • Assist in the drafting and/or preparation of the financial statements and the related notes including those of the Town, the schedule of expenditures of federal awards (if applicable), and the schedule of state assistance expended and related notes in conformity with United States generally accepted accounting principles and the Uniform Guidance and Part 43 of NYCRR based on information provided. These non audit services do not constitute an audit under Government Auditing Standards and are to be performed in accordance with applicable professional standards. Responsibility for the review and presentation of the aforementioned items remains with the Town of Southold's management. The auditor will issue a report on the fair presentation of the Deferred Compensation Plan for Employees of the Town of Southold's financial statements in conformity with generally accepted accounting principles, and a communication regarding internal control matters identified in the audit to those charged with governance and management. The audit shall be conducted with auditing standards generally accepted in the United States of America except that, as permitted by Regulation 29 CFR 2520.103-8 of the DOL's Rules and Regulations for Reporting and Disclosure under ERISA, no auditing procedures will be performed with respect to information 10 prepared and certified to by Mass Mutual Retirement Services, the trustee, in accordance with DOL Regulation 29 CFR 2520.103-5, other than comparing the information with the related information included in the financial statements and supplemental schedules. Additionally, the following supplementary schedules accompanying the basic financial statements, as applicable, and will be subject to the auditing procedures applied in our audit of the financial statements: 1) Assets (Held at End of Year) and Assets (Acquired and Disposed of Within Year). 2) Loans or Fixed Income Obligations in Default or Classified as Uncollectible. 3) Leases in Default or Classified as Uncollectible. 4) Reportable Transactions. 5) Nonexempt Transactions. 6) Delinquent Participant Contributions. Non Attest Services The auditor will provide the following nonattest services as it relates to the Plan: • Assist in the drafting and/or preparation of the financial statements; • Assist in the drafting and/or preparation of footnotes related to the financial statements; • Assistance in adjusting the financial statements as necessary. The auditor will issue a report on the fair presentation of Town of Southold's Justice Courts' Combining Schedule of Cash Collections and Disbursements in conformity with generally accepted accounting principles, and a communication regarding internal control matters identified in the audit to those charged with governance and management. Non Attest Services The auditor will provide the following nonattest services as it relates to the Justice Court: • Assist in the preparation of a draft of the Statement of Cash Receipts and Cash Disbursements and related notes based on information provided 11 Auditing Standards to be Followed To meet the requirements of this request for proposals, the financial statement audit shall be conducted in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and, as applicable, the provisions of the Uniform Guidance and 43 NYCRR applicable to transportation assistance programs offered by NYSDOT. To meet the requirements of this request for proposals, the Deferred Compensation Plan statement audit shall be conducted with auditing standards generally accepted in the United States of America except that, as permitted by Regulation 29 CFR 2520.103-8 of the DOL's Rules and Regulations for Reporting and Disclosure under ERISA, no auditing procedures will be performed with respect to information prepared and certified to by Mass Mutual Retirement Services,' the trustee, in accordance with DOL Regulation 29 CFR 2520.103-5, other than comparing the information with the related information included in the financial statements and supplemental schedules. To meet the requirements of this request for proposals, the Justice Court audit shall be conducted in accordance with auditing standards generally accepted in the United States of America. Reports to be Issued Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue a report on the fair presentation of the financial statements in conformity with generally accepted accounting principles (auditor's report), a report on internal control over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with Government Auditing Standards, and a communication of internal control matters identified in the audit to those charged with governance and management. Where applicable, the auditor shall also issue a report on compliance for each major federal program and on internal control over compliance required by the Uniform Guidance, a report on compliance and controls over State Transportation Assistance expended based on an audit of the 12 financial statements performed in accordance with Government Auditing Standards, and any other report(s) required by federal, state, or local laws, rules or regulations. The reports on compliance shall include all instances of non-compliance irregularities and illegal acts, and the auditor shall be required to make an immediate, written report of all irregularities and/or illegal acts of which the auditor becomes aware to the Town Manager and Town Comptroller. Following the completion of the Deferred Compensation plan audit of the fiscal year's financial statements, the auditor shall issue reports in conformity with the Department of Labor's (DOL) Rules and Regulations for reporting and Disclosure under Employee Retirement Income Security Act of 197 4 (ERISA). Following the completion of Justice Court Audit, report on the fair presentation of the financial statements in conformity with generally accepted accounting principles (auditor's report). Special Considerations The auditor, from time to time, will be requested to assist in accounting and management issues. The proposer should detail experience and timeliness of responses to inquiries. The Town of Southold does not send a Comprehensive Annual Financial Report to the Government Finance Officers Association of the United States and Canada for review in their Certificate of Achievement for Excellence in Financial Reporting program, but may want to do so in future years. If it does decide to produce a comprehensive annual financial report (CAFR), it would be anticipated that the auditor would be required to provide special assistance to the Town of Southold to meet the requirements of that program. It is understood that a separate fee would need to be negotiated, should the Town decide to prepare a CAFR. The Town of Southold currently anticipates it will prepare one or more official statements in connection with the sale of debt securities which will contain the general purpose financial statements and the auditor's report thereon. The auditor shall be required, if requested by the 13 fiscal advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor and any necessary "comfort letters." Working Paper Retention and Access to Working Papers All working papers and reports must be retained, at the auditor's expense,for a minimum of five (S) years, unless the firm is notified in writing by the Town of Southold of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees: • State of New York • Parties designated by the federal or state governments or by the Town of Southold as part of an audit quality review process In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance, in accordance with the professional standards. Name and Telephone Number of Contact Persons The auditor's principal contact with the Town of Southold will be Kristie Hansen-Hightower, CPA, Town Comptroller, who will coordinate the assistance to be provided by the Town to the auditor. Telephone (631) 465-7333. Component Units Discretely Presented: • Fisher's Island Ferry District • Fisher's Island Waste Management District Blended: • Cutchogue-New Suffolk Park District • Mattituck Park District • Orient-East Marion Park District • Orient Mosquito District • Southold Park District 14 Fund Structure The Town of Southold uses or may use the following fund types and account groups in its financial reporting: .«r•A��-�ar:;r,;= ;�5x' ?t` s�a;;t�r., .B�.w.,w,.�„',°''""°�a.-a�"�' �t���;.c .+-•• _r:,,- .,n"zy�•`� L��:pv°i°�7..2, .�Aue ,�?�"��yp?s'F,tY" aa.e$;*, •..�-c;a- . k sw r"t�.,``W«5i"^'pC^"p„” r",,�r`i+b„;-,'F �'"g ,d�^� 8rg@m„,k',�q C�, �Js..'"�_;,�gR,��lvtd .�^i p � >!�?,o����..�,-< S"='�` �a"jn� °��- -,�.„e!�✓�w^+-a• .�,5.��*'rfi,� "x r:,i�SP„d General Fund 1 Special Revenue Funds 8 Highway Fund Part Town General Fund Part Town Community Preservation Fund Special Grant Fund East-West Fire Protection District Southold Wastewater District Fishers Island Sewer District Solid Waste Management District Capital Projects Funds 1 Agency Funds 1 Availability of Prior Audit Reports Prior years' audit reports are available to proposers to aid their response on the Town's website @ www.southoldtownny.gov. Anticipated Annual Audit Calendar(for the Year Ended December 31, 2020. Future Fiscal Year Audit Calendars are subject to change.) Financial Statement Audit 1. June (April for 2021 and 2022 years) —Auditor provides the Town Comptroller with a detailed audit plan; a list of all schedules to be prepared by the Town and a list and format of confirmations to be prepared by the Town. Auditor conducts preliminary engagement activities. 2. June/July (May for 2021 and 2022 years)—Auditor commences audit field work. 3. July/August (July for 2021 and 2022 years) — Auditor completes audit field work and 15 presents draft audit findings with recommendations and suggested adjustments to the Town Comptroller for review and response. 4. On or before September 15 (August 31St for 2021 and 2022 years) — The auditor shall prepare draft financial statements, notes and all required supplementary schedules and statistical data. The auditor shall provide all recommendations, revisions and suggestions for improvement to the Town Comptroller with draft report, including a draft auditor's report, by September 15th (August 31St for 2021 and 2022 years)of the year following the year under audit. 5. The Town Comptroller will complete the review of the draft report as expeditiously as possible. During the review period, the auditor should be available for any meetings that may be necessary to discuss the audit reports. Once all issues for discussion are resolved, the final signed report shall be issued no later than September 30 of the year following the year under audit. Deferred Compensation Audit 1. June (April for 2021 and 2022 years) —Auditor provides the Town Comptroller with a detailed audit plan; a list of all schedules to be prepared by the Town and a list and format of confirmations to be prepared by the Town. Auditor conducts preliminary engagement activities. 2. June/July (May for 2021 and 2022 years)—Auditor commences and finishes audit field work. 3. July (May/early June for 2021 and 2022 years) — Auditor completes audit field work, prepares draft financial statements, notes and all required supplementary schedules and presents draft audit findings with recommendations and suggested adjustments to the Town Comptroller for review and response on or before August 1St (June 15th for 2021 and 2022 years). The Town Comptroller will complete the review of the draft report as expeditiously as possible. During the review period, the auditor should be available for any meetings that may be necessary to discuss the audit reports. Once all issues for discussion are resolved, the final signed report shall be issued no later than August 15th for the 2020 year (June 30th for 2021 and 2022 years). Justice Court Audit 1. June/July (March/April for 2021 and 2022 years) — Auditor provides the Town 16 Comptroller and the Justice Court Director with a detailed audit plan; a list of all schedules to be prepared by the Town and a list and format of confirmations to be prepared by the Town. Auditor conducts preliminary engagement activities May — Auditor commences and finishes audit field work. 2. July/August (April/May for 2021 and 2022 years) — Auditor completes audit field work, prepares draft financial statements, notes and all required supplementary schedules and presents draft audit findings with recommendations and suggested adjustments to the Town Comptroller for review and response on or before August 1st The Town Comptroller will complete the review of the draft report as expeditiously as possible. During the review period, the auditor should be available for any meetings that may be necessary to discuss the audit reports. Once all issues for discussion are resolved, the final signed report shall be issued no later than August 15th (June 15th of the year following the year under audit for the 2021 and 2022 years). Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested of the Town in resolving these problems. • Name and address of the firm • Name, title, telephone number, fax number and email address of the contact person for the firm • A total all-inclusive maximum ("not-to-exceed") price for the audit of each entity for the three fiscal years ending December 31 (2019, 2020 and 2021) • A signed certification that the person signing the proposal is entitled to represent the firm, empowered to submit the proposal and authorized to sign a contract with the Town. 17 Assistance to be Provided to the Auditor and Report Preparation Town Comptroller and Clerical Assistance- The Town Comptroller staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation and explanations. The preparation of confirmations will be the responsibility of the auditor. The auditor may be responsible to pull filed documents for testing; the Town will re-file the documents. Work Area, Telephones, Photocopying and Internet Considering COVID concerns and guidelines, the auditors should be prepared to perform as much work as possible remotely, with limited time at the Town of Southold offices. When a physical presence is needed, the Town of Southold will provide the auditor with reasonable workspace, desks and chairs. The auditor will also be provided with access to telephone lines, photocopying facilities and internet. Report Preparation Report preparation, editing and printing shall be the responsibility of the auditor. Proposal Requirements A master copy (so marked) of a Technical Proposal and seven (7) copies to include the following: 1) Title Page Title page showing the request for proposals subject, the firm's name, the name, address and telephone of the contact person and the date of the proposal • Table of Contents • Transmittal Letter A signed letter of transmittal briefly stating the proposer's understanding of the work to be done, the commitment to perform the work within the time period, a statement why the firm believes itself'to be best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer which is valid for a period of ninety (90) days. 18 Technical Proposal The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capabilities of the firms seeking to undertake an independent audit of the Town of Southold in conformity with the requirements of this Request for Proposals. As such, the substance of proposals will carry more weight than their form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the request for proposals requirements. The Technical Proposal should address all the points outlined in the Request for Proposals (excluding any cost information which should only be included in the sealed dollar cost bid). The Proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer's capabilities to satisfy the requirements on the Request for Proposals. Independence The firm should provide an affirmative statement that is independent of the Town of Southold as defined by U.S. generally accepted auditing standards/the U.S. General Accounting Office's Government Auditing Standards. The firm should also list and describe the firm's (or proposed subcontractors') professional relationships involving the Town of Southold or any of its agencies or oversight unit for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. In addition, the firm shall give the Town of Southold written notice of any professional relationships with the Town of Southold, or its component units, entered into during the period of this agreement. 19 License to Practice in the State of New York An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in New York State. Prior Engagements With the Town of Southold: List separately all engagements within the last ten (10) years, ranked on the basis of total staff hours, with the Town of Southold by type of engagement (i.e., audit, management advisory services, other). Indicate the scope of work, date, engagement partners, total hours, the location of the firm's office from which the engagement was performed, and the name and telephone number of the principal client contact. Similar Engagements With Other Government Entities List the most significant engagements (maximum of 5), for the firm's office that will be assigned responsibility for the audit, performed in the last five years that are similar to the engagement described in this Request for Proposal. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours and the name and telephone number of the principal client contact. List any CAFR's the firm has prepared within the last five years (maximum of 4). Indicate how many of these were first time filers for the GFOA award and how many were successful in receiving the award. 20 Specific Submission Requirements Proposals submitted in response to this RFP must comply with the following requirements: INTRODUCTORY STATEMENT Provide a brief introduction of the firm. PROPOSED METHODOLOGY Based on the item's description and requested services, please discuss how the firm would provide the appropriate accounting services and manage the assignment. WORKLOAD VOLUME 1. Describe the current total firm workload in comparison to undertaking the Town of Southold as a client. 2. Describe the firm's time constraints and deliverability of service to the Town. 3. Prices and staffing plans should be submitted for each year of the proposed three (3) year term. 4. This pricing document must be separate from the balance of the proposal and submitted in a clearly marked sealed envelope. (see Page 24 of this document) Indicate the estimated number of hours, the hourly billing rate by staff classification, the description and amounts of out-of-pocket charges and the resulting all-inclusive maximum prices for the services to be performed. Qualifications And Experience This section describes the required information regarding the experience and qualifications of the Proposer, including joint ventures, which must be set forth in proposals submitted to the Town. Failure to submit the required information may result 21 in disqualification from consideration. Any knowingly false statement(s) shall be grounds for termination of negotiations or the awarded contract. QUALIFICATIONS Proposers are to submit all information as requested. 1. Identify specifically the members of the firm who will be assigned to represent the Town of Southold, as well as the percentages of work that would be performed by each. Please provide brief resumes of these individuals. 2. Specify in detail the services the firm would provide as independent accountants. Indicate the firm's commitment to municipal accounting. Describe any staff reduction, reorganization or strategic changes that the firm has made in the past year and indicate whether any further actions are planned. Indicate the firm's expertise in performing in accordance of GASB 34. Indicate the firms experience in performing Department of Transportation audits. 3. Five (5) references are required. The reference information should include the names, addresses and telephone numbers of individuals that are the firm's current or former clients that the Town may contact. 4. Describe the firm's experience in providing professional municipal accounting and auditing services and all contracts/agreements involving similar services for any town, county, municipality or special districts. 5. List and provide the following information: name, address and telephone number of county, town, municipality or special district; location, name, title, address and telephone number of principal office, principal official to contact; start and completion dates of contract, description of services provided. 6. Provide an affirmation setting forth that the firm is properly licensed for public practice as a Certified Public Accountant and the independence requirements of the 22 Standards for Audit of Governmental Organizations, Programs, Activities and Functions published by the United States General Accounting Office, and that no records of substandard audit work exists. Include a copy of the firm's most recent Peer Review. Additional Requirements Indemnification Proposer shall, as part of the agreement for services, indemnify and save harmless the Town of Southold from and against any and all losses and any and all claim, demands, payments, suits, actions, recoveries and judgments of every kind or nature, brought or recovered against the Town of Southold by reason of any act or omission of the Proposer, subcontractor, his agent or employees, in the performance of the contract. One (1) original and seven (7) copies of the technical response to this Request for Proposal must be submitted in a sealed envelope along with all additional submissions, addressed as follows: 23 Auditing and Accounting Technical Proposal For The Town of Southold Southold Town Clerk PO Box 1179 Southold,NY 11971 The proposer shall also submit one (1) original and seven (7) copies of a dollar cost proposal (see page 24 of this proposal) for each year, together in a separate sealed envelope along with all of the other required submissions marked as follows: SEALED DOLLAR COST BID PROPOSAL FOR TOWN OF SOUTHOLD PROFESSIONAL AUDITING SERVICES The packages must clearly display the name and return address of the party submitting the RFP. The only acceptable evidence of timely filing is a signed receipt from the Town Clerk Office, available upon request, at the time of delivery of your proposal. Proposals properly completed and executed on the forms provided by the Town, along with any supporting documents, may be delivered in person by the bidder or his agent or may be mailed to the office of the Town Clerk. The Town Clerk or their designee must receive all bid proposals, without exception, not later than the time specified for the bid proposal being opened on the Notice to Proposers. The proposer assumes all risk of any delay, for any reason, for the delivery of their proposal if it is mailed utilizing the U.S. Postal service or if by personal delivery or any commercial package delivery service. 24 Expenses of Proposal Preparation: Each proposal prepared in response to this RFP, will be prepared at the sole cost and expense of the proposer and with the expressed understanding that there will be no claims whatsoever for reimbursement from the Town for any cost or any expense in its preparation. Independent Contractor: The Vendor, his/her subcontractors, agents and representatives will at all times be independent contractors and in no way will be an employee, lessee or agent of the Town of Southold. Additional information pertaining to this Request For Proposal may be obtained by contacting: Kristie Hansen-Hightower, CPA, Town Comptroller 54375 Main Road PO Box 1179 Southold, NY 11971 Telephone: 631-765-4333 Fax: 631-765-1366 E-mail: kristieh@southoldtownny.gov 25 Professional Auditing and Accounting Services For The Town of Southold, Suffolk County, New York Request for Proposal PROPOSAL SUBMITTED BY: (Signature of Proposer) (Printed Name and Title of Proposer) (Company or Corporation) Date Address, Town, State, Zip Telephone, FAX, Pager, e-mail address CORPORATE SEAL 26 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company Name Fiscal Year (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners Managers Supervisory Staff Managers Other (specify Total all-inclusive maximum price for audit: $ Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. All rates shall be quoted in U.S. Dollars. 27 Southold Town Board - Letter Board Meeting of May 18, 2021 RESOLUTION 2021-401 Item # 5.25 yap% Baa ADOPTED DOC ID: 17046 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2021-401 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON MAY 18, 2021: RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs the Town Clerks office to advertise for Requests for Proposals for annual audits of the Town of Southold's financial statements, Justice Court and Deferred Compensation Plan for the 2020, 2021 and 2022 fiscal years, subject to the approval of the Town Attorney. Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Sarah E. Nappa, Councilwoman SECONDER:Louisa P. Evans, Justice AYES: Sarah E. Nappa, Jill Doherty, Robert Ghosio, Louisa P. Evans ABSENT: James Dinizio Jr, Scott A. Russell Generated May 19. 2021 Page 41 LEGAL NOTICE REQUEST FOR PROPOSALS NOTICE IS HEREBY GIVEN THAT SEALED PROPOSALS ARE SOUGHT AND REQUESTED FOR THE FOLLOWING: PROPOSAL NAME: "PROFESSIONAL AUDITING AND ACCOUNTING SERVICES FOR THE TOWN OF SOUTHOLD" A copy of the detailed proposal request may be obtained at toe Southold Town Clerk's Office beginning May 19,2021 Ij PLACE OF OPENINGS: DATE OF OPENINGS: TIME OF OPENINGS: TOWN OF SOUTHOLD June 10,2021 2:00 PM TOWN CLERKS OFFICE 53095 MAIN ROAD SOUTHOLD,NY 11971 CONTACT PERSON: Kristie Hansen-Hightower, CPA Town Comptroller 631-765-4333, kristieh@southoldtownny.gov VENDORS MUST SUBMIT PROPOSALS IN SEALED ENVELOPES. PLEASE PRINT ON THE FACE OF ENVELOPE: 1)NAME &ADDRESS OF VENDOR 2) PROPOSAL NAME It is the proposer's responsibility to read the detailed Request for Proposals and provide a proposal. It is understood that the proposer has read, fully understands and will comply with all requirements. A non-refundable fee of$10.00 will be charged for a copy of the Request for Proposals and all attached documentation. Payment can be made by either money order, cash or business check (payable to the Town of Southold). The Town of Southold welcomes and encourages minority and women-owned businesses to participate in the proposal process. Dated: May 18, 2021 BY THE ORDER OF THE SOUTHOLD TOWN BOARD Elizabeth A.Neville Southold Town Clerk LEGAL NOTICE REQUEST FOR PROPOSALS NOTICE IS HEREBY GIVEN THAT SEALED PROPOSALS ARE SOUGHT AND REQUESTED FOR THE FOLLOWING: PROPOSAL NAME: "PROFESSIONAL AUDITING AND ACCOUNTING SERVICES FOR THE TOWN OF SOUTHOLD" A copy of the detailed proposal request may be obtained at the Southold Town Clerk's Office beginning May 19,2021 PLACE OF OPENINGS: DATE OF OPENINGS: TIME OF OPENINGS: TOWN OF SOUTHOLD June 10,2021 2:00 PM TOWN CLERKS OFFICE 53095 MAIN ROAD SOUTHOLD,NY 11971 CONTACT PERSON: Kristie Hansen-Hightower, CPA Town Comptroller 631-765-4333, kristieh@southoldtownny.gov VENDORS MUST SUBMIT PROPOSALS IN SEALED ENVELOPES. PLEASE PRINT ON THE FACE OF ENVELOPE: 1)NAME &ADDRESS OF VENDOR 2)PROPOSAL NAME It is the proposer's responsibility to read the detailed Request for Proposals and provide a proposal. It is understood that the proposer has read,fully understands and will comply with all requirements. A non-refundable fee of$10.00 will be charged for a copy of the Request for Proposals and all attached documentation. Payment can be made by either money order, cash or business check (payable to the Town of Southold). The Town of Southold welcomes and encourages minority and women-owned businesses to participate in the proposal process. Dated: May 18, 2021 BY THE ORDER OF THE SOUTHOLD TOWN BOARD Elizabeth A.Neville Southold Town Clerk STATE OF NEW YORK) SS: COUNTY OF SUFFOLK) ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold,New York being duly sworn, says that on the 19th day of May , 2021, a notice of which the annexed printed notice is a true copy was affixed, in a proper and substantial manner, in a most public place in the Town of Southold, Suffolk County, New York, to wit: Town Clerk's Bulletin Board, 53095 Main Road, Southold,New York and the Southold Town website, www.southoldtownny.gov . Bid: RFP for Auditing Services izabeth A. Neville uthold Town Clerk Sworn before me this 191h day of Ma 20 Notary Public LYNDA M. RUDDER Notary Pubic, State of New York No.01 RU6020932 Qualified in Suffolk county Commission Expires March 8,20z