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HomeMy WebLinkAboutAnnual Audits RFP EFPRGRouP CPAsa 6390 Main Street,Suite 200 Williamsville,NY 14221 P 716.634.0700 7F 800.546.7556 F 716.634.0764 W EFPRgroup.com November 20, 2024 Ms. Laura Arena Senior Account Clerk Town of Southold P.O. Box 1179 Southold, New York 11971 Dear Ms. Arena: Enclosed is one original and seven copies of our technical proposal to provide audit and related services to the Town of Southold for the years ending December 31, 2024, 2025 and 2026. Please call me if you have any questions with regard to this proposal. Very truly yours, EFPR GROUP, CPA , LC o a . immerman, CPA P n e r DEZ:kms Enclosures r f Town of Southold COST PROPOSAL FOR PROFESSIONAL AUDITING SERVICES a. Name of Firm: EFPR Group, CPAs, PLLC b. The person signing the proposal indicated below is entitled to represent the EFPR Group, CPAs, PLLC, empowered to submit the bid and authorized to sign a contract with the Town of Southold. C. Our fee quote is based upon the estimated time we will spend on the engagement and the qualifications of the personnel that will be assigned. On the basis of our extensive experience with municipalities and other governmental organizations similar to yours, we have determined the total all-inclusive maximum price that we will charge for the required services for the years ending December 31, 2024, 2025 and 2026 to be as follows: 2024 2025 2026 Town's financial statement audit $ 55,600 57,700 60,000 Town Justice Court audit 1,800 1,900 2,000 Deferred Compensation Plan audit 8,500 8,850 9,200 Total $ 65,900 68,450 71,200 Single audit, if required $ 8,000 8,300 8,600 These are the ALL-INCLUSIVE FEES to be charged to the Town and include all costs, including report reproduction and similar expense (travel, phone, clerical, postage, etc.). We consider ourselves not only auditors but also advisors to our clients. Accordingly, we encourage our clients to contact us throughout the year to discuss any technical matters or other issues that arise. We consider this service an integral part of our overall client relationship and accordingly, do not bill separately for any of these questions. November 20, 2024 th iz Signature Date D E.Zimmerman, CPA rtner SCHEDULE OF-PROFESSIONAL FEES AND EXPENSES FOR . . ... .. ... ... ..THE.AUDIT OF 'T IE'FIN;t NCIAL STA Proposers Company .. Name. EFPR Group, CPAs; PLLG >(±'lseal Year. 2024 ,. (co�nplet .witli.year of proposed service): Hours .Starrdard Quoted, T'wal 4ourly Hoarly . Rates Rates Partiners. 60 . . $340 ... ... ... $290 17,400. . . Director 100. 245 195 . 19,500 Senior accountant 130 150- 130 16,900 Staff accountant . 110 135 110 . 12,100. Other{specify . N/A N/A N/A N/A . P T©tal'all-inclusive maxinxnurni rice fc�r audit; S 65;900 Note: The rate-quoted§hound not be presented.as a general percentage of the standard'hourly rate'pr as a gross det�uctiatn.fram the total ail=irclus..ia� rr►aximurra price: Alf:rates shall be..quotcd in.us.pollars. . 7. SCHEDULE OF-PROFESSIONAL FEES AND EXPENSES- FOR THE AUHIT [IF THE FINANCIAL,STATEMENTS: Propaseks Company Name. EFPR Group, CPAs, PLLC Fiscal Year. 2025. (complete with.year of proposed service) Tours Slandard Quoted Total Hourly. . Rourly Rates Ratek - Partners 60 $345 $295. 17,700 Director .. 100. . 250 200. 20,000 Senior accountant 130 155 135 17�550 Staff accountant � - 110. . 140 120 13,200 Other(specify. N/A. . . N/A .. N/A N/A. oW a114ncItisive niaxilnum pric:e-for,audit- 681-450 Note: the rate quoted shouild not be preserited.as a:8eneral percentage of'the standard hourly rate or.as a;gross deduction from the total.all-inclusive maximu n price: All,rates shall be.quested 'ian U:S.Dollars, 17 SCHEDULE OF PROFESSIONAI. LEES AND. EXPENSES FOR . ...THE.AUDIT`OF THE VINANCIAL.STATEMENTS: Proposcrs.Compan; I11ame. EFPR Group, CPAs, PLLC Fiscal.Year. 2026.. (cotnplet e with.year of proposed service) -Hours Standard Quoted Total Hourly ffouply Ratex Rates 60 $350 Partners. $300 18,000 Director 100 255__ 207 20,700 Senior accountant 130 160 140 18,200 Staff accountant . 110. . 145 130 . 14,300 Other(specify . . N/A N/A .. N/A N/A Total all-inclusive nnaximum price for audit: S 71,200 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.al➢=inclusive.maximurn price. All rates shall°be,. uoted �irn L1:g.I��allsars. a)EFPRGRouP CPAs 6390 Main Street,Suite 200 Williamsville,NY 14221 P 716.634.0700 TF 800.546.7556 F 716.634.0764 November 20, 2024 w EFPRgroup.com Ms. Laura Arena Senior Account Clerk Town of Southold P.O. Box 1179 Southold, New York 11971 Dear Ms. Arena: We are pleased to submit our proposal to provide audit and related services to the Town of Southold for the years ending December 31, 2024, 2025 and 2026. We confirm that we understand the scope of services to be provided and will commit the resources necessary to ensure performance of our services within the required timeframe. Our proposal is a firm and irrevocable offer for ninety (90) days. We believe the EFPR Group, CPAs, PLLC is highly qualified to provide audit and related services to the Town based on: • Our experience with regard to providing audit and related services for over 175 governmental organizations annually. Our Government Audit Practice Group provides timely services to governmental organizations located throughout New York State. • We were recently awarded the contract to provide audit and related services to the Southold Local Development Corporation. • Our experience providing audit and related services to municipalities, including the following: • County of Chemung • Town of Elmira • County of Delaware • Town of Erwin • County of Lewis • Town of Fishkill • County of Orleans • Town of Grand Island • County of Saratoga • Town of Ithaca • County of Washington • Town of Jasper • City of Beacon . Town of Lumberland • City of Fulton . Town of Mamaroneck • City of Kingston • Town of Mexico • City of Lackawanna . Town of Plattsburgh • City of New Rochelle • Town of Southeast • City of Niagara Falls • Town of Ulster • City of Port Richey • Town of Union • City of Rochester • Village of Cold Spring • Town of Alexander . Village of Delhi • Town of Alexandria • Village of Heuvelton • Town of Beekman • Village of Island Park • Town of Chili . Village of Montebello • Town of Corning . Borough of Sayre • Town of Cortlandt 0 Borough of South Waverly �Ms. Laura Arena November 20, 2024 • Our substantial experience with regard to providing audit and related services for organizations required to have audits which are performed in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. We audit over 350 organizations annually in accordance with Government Auditing Standards. • Our substantial experience with regard to providing audit and related services for organizations which require audits performed in accordance with the provisions of Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. We provide annual audit services for over 250 single audit compliant organizations. • Our experience providing audit and agreed-upon procedure services to municipal Justice Courts, Receiver of Taxes and Town Clerks, including the following: • Town of Cortlandt Justice Court • Town of Southeast Justice Court • Town of Ulster Justice Court • Town of Plattsburgh Justice Court • Town of Ithaca Justice Court • Town of Mamaroneck Justice Court • Town of Beekman Justice Court • Town of Beekman Receiver of Taxes • Town of Fishkill Justice Court • Town of Grand Island Justice Court • Town of Plattsburgh Town Clerk • Town of Plattsburgh Receiver of Taxes • Town of Southeast Receiver of Taxes • Our substantial experience with regard to providing audit and related services to numerous 457 Deferred Compensation Plans. We have experience providing annual audit services to the following 457 Deferred Compensation Plans: • County of Nassau • Town of Huntington • County of Chemung • Town of Ithaca • County of Monroe • Town of Union • County of Suffolk 401(a)Terminal Pay Plan • Monroe County Water Authority • City of Rochester • Our experience with various State agencies, including the following: • New York State Affordable Housing Corporation • New York State Assembly • New York State Bridge Authority • New York State Department of Agriculture and Markets/State Fair • New York State Department of Transportation • New York State Division of the Budget • New York State Executive Chamber o New York State Homeless Housing Assistance Corporation • New York State Office for People With Developmental Disabilities • New York State Office of Alcoholism and Substance Abuse Services • New York State Office of Children and Family Services • New York State Office of General Services • New York State Office of the State Comptroller o New York State Office of Temporary Disability Assistance ® New York State Senate o New York State Thoroughbred Breeding and Development Fund • New York State Unified Court System o New York State Urban Development Corporation ® Our ability to provide quality services on a timely basis for reasonable fees. �Ms. Laura Arena November 20, 2024 Our depth of experience working with many governmental entities throughout New York State should provide peace of mind that the Town would be served by a highly competent team of professionals committed to assist in whatever capacity you require. We understand that for our services to be valuable to the Town, we need to provide more than just financial reporting. At the EFPR Group, CPAs, PLLC,we take a proactive approach to our client relationships in order to ensure we are anticipating our client's needs before they call on us for assistance. We are available throughout the year to answer questions and address concerns that may arise. We would consider it a distinct privilege to provide professional services as outlined in this proposal or any additional services you desire. Simply put,we want to be your auditors and business consultants. Please contact us if there are any questions regarding this proposal. Very truly yours, EFPR GROUP, CPAs, PLLC ou a .Zimmerman, CPA P er FIRM PHILOSOPHY The EFPR Group, CPAs, PLLC was founded on the principle of providing our clients with the same high quality level of service expected from a national firm yet with the dedicated involvement that can only be developed by personal attention. The primary mission of our Firm has always been helping our clients succeed. We are committed to delivering services targeted to each client's critical needs and industry niche. KEY CONSIDERATIONS REGARDING THE EFPR GROUP Our Firm has achieved its present position in the accounting profession by providing quality services on a timely basis, for reasonable fees. Accounting firms should be evaluated in light of several important conditions: • The firm's qualifications, experience and its ability to provide auditing, accounting and consulting services for a reasonable fee. • The firm's ability to assemble and commit a team of professionals experienced in providing audit, accounting and consulting services for governmental organizations, specifically New York State municipalities. • The firm's involvement of client personnel and active participation and coordination on .a year-round basis. • The firm's commitment to provide services which will contribute to the success of our clients. In the following paragraphs, we shall demonstrate that the EFPR Group, CPAs, PLLC is the accounting firm best qualified to serve the Town of Southold. FRESH PERSPECTIVE Changing auditors does not have to be difficult. The professionals at the EFPR Group, CPAs, PLLC are excited about providing the Town with a fresh perspective on internal controls,compliance risks, and other operational matters. As noted throughout our proposal,our objective is to provide value beyond our financial and compliance audits. INDEPENDENCE The EFPR Group, CPAs, PLLC is independent of the Town of Southold as defined by generally accepted auditing standards and U.S. Government Accountability Office (GAO)'s Government Auditing Standards. Accordingly, no relationship exists between the EFPR Group, CPAs, PLLC and the Town or any of its employees, Board members or with any person or agency that constitutes a conflict of interest with respect to the Town. The EFPR Group, CPAs, PLLC has not had any professional relationships with the Town in the past five years. Our Firm will give the Town written notice of any professional relationships entered into during the period of the engagement which may constitute a conflict of interest. LICENSED TO PRACTICE IN NEW YORK STATE The EFPR Group, CPAs, PLLC is licensed to practice in New York State. Please see Appendix A for evidence of the firm's license to practice and licenses of key individuals to be assigned to the engagement. PRIOR ENGAGEMENTS WITH THE TOWN OF SOUTHOLD The EFPR Group, CPAs, PLLC has not had any engagements with the Town in the past ten years. Page 11 Town of Southold SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES Our Firm provides various audit services to numerous governmental organizations. The following individuals may be contacted to provide references with regard to the quality of our Firm's work: Fishers Island Ferry District Scope of work: Audit of financial statements, including compliance with Government Auditing Standards. Date: 2018 and ongoing Contact: Mr. Geb Cook Manager P.O. Box 607 Fishers Island, New York 06390 (203)410-8156 gcook@fiferry.com Town of Grand Island Scope of work: Audit of financial statements, including compliance with Government Auditing Standards and single audit, and audit of Town Justice Court. Date: 2021 and ongoing Contact: Mr.John C.Whitney, P.E. Town Supervisor 2255 Baseline Road Grand Island, New York 14072 (716)773-9600 ext 616 iwhitney@grand-island.ny.us City of Rochester Scope of work: Audit of financial statements, including compliance with Government Auditing Standards single audit, and New York State Department of Transportation audit. As part of this engagement we also audit the financial statements of the Land Bank and Public Library.We also assist in the preparation of the ACFR and submittal for GFOA certificate. Date: 2023 and ongoing Contact: Ms. Kim D.Jones Director of Finance City Hall- Room 201A 30 Church Street Rochester, New York 14614 (585)428-7151 kim.iones@citvofrochester.gov Town of Cortlandt Scope of work: Audit of financial statements, audit of Town Justice Court, and assist in the preparation of the ACFR and submittal for GFOA certificate. Date: 2016 and ongoing Contact: Ms. Patricia Robcke Comptroller 1 Heady Street Cortlandt Manor, New York 10567 (914) 734-1070 pattVr@townofcortiandt.com Page 21 Town of Southold Town of Mamaroneck Scope of work: Audit of financial statements, including compliance with Government Auditing Standards and single audit, and audit of Town Justice Court. Date: 2021 and ongoing Contact: Ms.Tracy Yogman, CPA Town Comptroller&Receiver of Taxes 740 West Boston Post Road Mamaroneck, New York 10543 (914)381-7851 tvogman@townofmamaroneckny.org Our Firm has assisted our governmental clients in obtaining a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). We are committed to providing the highest quality services and assisting governmental entities in meeting regulatory deadlines. Our Firm is familiar with the review process that the GFOA uses to evaluate the Annual Comprehensive Financial Report (ACFR) and can assist the County in obtaining the Certificate of Achievement for Excellence in Financial Reporting. Our firm has prepared the ACFR for the City of Rochester, Cities of Destin and Port Richey, Florida, Town of Cortlandt, and the Counties of Chemung, Putnam, Sullivan, Ulster, Cattaraugus and Steuben. The additional minimum requirements to prepare the CAFR are as follows: • Introduction section, including names of Town officials, • Combining statements of government funds, including comparisons of actual to budget, and • A statistical section. INTRODUCTORY STATEMENT The EFPR Group, CPAs, PLLC provides audit, accounting and consulting services to over 175 governmental organizations on an annual basis. We also serve more than 350 organizations which require an audit performed in accordance with Government Auditing Standards and over 150 clients that require audits performed in accordance with the provisions of Office of Management and Budget (OMB) Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards. Our Firm employs 200 professionals with 41 partners and directors. The Firm's Government Audit Practice Group consists of 40 highly trained professionals who provide audit and related services to governmental organizations on a year round basis. Our Firm has offices located in Williamsville, Rochester, and Corning, New York. The fieldwork associated with the engagement will be performed at the Town's office located in Southold, New York by the professionals from the Firm's Government Audit Practice Group. Please see Appendix A for detailed resumes of the Firm's key Government Audit Practice Group members and Appendix B for a partial listing of governmental organizations which are our clients. PROPOSED METHODOLOGY We confirm that we understand the scope of services to be provided and will commit the resources necessaryto ensure performance of our services. Our audits are made in accordance with auditing standards generally accepted in the United States of America and,accordingly, include such tests of the accounting records and other auditing procedures as we consider necessary and appropriate in order to express an opinion on the financial statements. Although audits conducted by different firms should all comply with certain professional requirements and thus might appear identical in nature, you should distinguish individual firms by at least two key factors: Page 31 Town of Southold 1. The extent to which the firm understands or expands its understanding of your Town in advance of the audit and tailors its auditing procedures to the conditions and needs of the Town. 2. The pertinent skills and processes the auditor can bring to bear upon the engagement to ensure an effective and efficient audit. Transition from Current Auditor Changing auditors for the Town should not be a difficult task. Fortunately, your proposed engagement team has had many opportunities over the years to step in as the new auditor. This experience helps ensure that the transition goes as smoothly as possible. From communicating with the predecessor auditor, reviewing their work papers, documenting and understanding your business processes,we will focus on minimizing the challenges that sometimes come with an auditor change. We will obtain as much information as possible from your predecessor auditor and then assemble a list of any items needed from the Town's management, along with mutually agreed- upon response dates. Our objective as your professional service provider will be to front load as much work as possible, including our transition as your external auditor. Because of your engagement team's experience with municipalities and other governmental organizations, our engagement team will hit the ground running, resulting in minimal disruption to your day-to-day operations. Financial Statement Audit Audit examinations performed by our Firm are conducted from a risk-based approach. This approach yields two major benefits: • Maximization of understanding of the Town's operating environment, and • Minimization of audit time by starting with broad considerations and narrowing to specific audit objectives in critical areas. The audit of the financial statements of the Town of Southold will consist of the following four phases: • Planning • Systems evaluation • Testing • Reporting • Planning is the first step in the audit engagement and provides the foundation for the direction of the audit. This phase of the audit involves meeting with the Audit Committee and management of the Town to clearly identify the lines of communication, perform the risk analysis, discuss the audit scope and concerns and set expectations. While facilitating an understanding between our firm and the Town,we highlight areas,which will receive emphasis during our audit. This type of analytical review process permits identification of critical areas. As a result, appropriate audit procedures are focused therein. ® Systems Evaluation consists of the following steps: - A review of internal control systems of the Town; - A review of the information technology systems utilized by the Town to prepare its accounting records and monitor compliance with regulatory requirements; - An identification of control strengths and weaknesses in management and accounting controls; and - The development of a tailored audit program to be responsive to the Town's concerns and reflective of the internal control system. Page 41 Town of Southold o Testing is the largest part of the audit process and includes both compliance test of internal controls and regulatory requirements and substantive test of the Town's financial data. The EFPR Group, CPAs, PLLC uses sampling in selecting items for examination by compliance and/or substantive tests where it is determined to be cost beneficial to sample the population. Our Firm has an Audit and Accounting Manual which contains procedures for the control and evaluation of sampling risk, selection of samples,and evaluation of sample results. Audit sampling will normally be used to perform the following tests: • Substantive tests as part of the audit of the Town's basic financial statements; • Compliance tests to provide reasonable assurance that internal control (accounting and administrative) procedures used in administering federal and state financial assistance programs are being applied as prescribed; and • Substantive tests of compliance with laws and regulations as part of the audit of the basic financial statements and for the purpose of reporting on compliance with laws and regulations as they relate to the schedule of federal financial assistance. • Reporting is completed at the conclusion of the audit process. This phase will include the preparation of the draft financial statements and management letter. Management of the Town will be provided drafts of all reports. These drafts will be reviewed in detail and any questions or concerns of management will be appropriately addressed. Reports will only be finalized after approval of management and the Audit Committee of the Town. Our management letter will discuss internal control recommendations and suggestions for procedural improvements we identified as part of the audit. The letter will also include observations about accounting methods and procedures, business and industry practices or issues, operational ideas, and suggestions to further enhance the Town's operations. We will advise you of any new accounting pronouncements that have been or may be issued and indicate their potential impact. Single Audit Approach,if Required Determining Maior Programs To meet the provisions of the Single Audit Act and Office of Management and Budget(OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, we will use a risk-based approach to determine which Federal programs are major programs. This risk-based approach will include consideration of current and prior audit experience, oversight by Federal agencies and pass-through entities, and the inherent risk of the Federal program. The following is the approach we will follow in our single audit: ® Determine Type A programs ® Determine high-risk Type A programs ® Determine high-risk Type B programs • Determine programs to be audited as major programs. Page 51 Town of Southold Identification of Material Compliance Requirements In performing the Single Audit,we will focus on testing those compliance requirements that are material to each program. The OMB compliance supplement identifies the general categories of material compliance requirements. The updated compliance supplement identifies specific requirements for the Federal programs determined to be major programs., While the compliance supplement will be used as a starting point to identify material compliance requirements, we will also review other documents to consider potential material requirements. Documents that may be considered include the Code of Federal Regulations, Assistance Listings (formerly the Catalog of Federal Domestic Assistance),program and grant award letters,and grant guides and audit manuals. We will also discuss program requirements, new regulations, and program changes with respective program managers during the planning phase of the engagement to identify additional or new material compliance requirements. Onlythose requirements that are considered to be material are subject audit test work. The following are the 12 categories of requirements identified in the compliance supplement: • Activities allowed or unallowed • Allowable costs/cost principles • Cash management • Eligibility • Matching, level of effort, earmarking • Period of availability of Federal funds • Procurement,suspension and debarment • Program income • Real property acquisition and relocation • Reporting • Subrecipient monitoring • Special tests and provisions OMB's compliance supplement describes characteristics of internal control relating to each of the five components of internal control that should reasonably assure compliance with the requirements of Federal laws, regulations, and program compliance requirements. A description of the components of internal control is as follows: • Control environment sets the tone of an organization influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. • Risk assessment is the entity's identification and analysis of relevant risks to the achievement of its objectives. This forms a basis for determining how the risks should be managed. • Control activities are the policies and procedures that help to ensure that management's directives are carried out. • Information and communication are the means to identify, capture, and exchange information in a form and time frame that enable people to carry out their responsibilities. • Monitoring is the process that assesses the quality of internal control performance over time. Reporting to the Board As required by professional standards,we will ensure that the Town Board will be informed of the following: • The Auditors' responsibility under auditing standards generally accepted in the United States of America • The Auditors' responsibility under Government Auditing Standards and if required, the provisions of Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ® Significant accounting policies ® Management judgments and accounting estimates ® Significant audit adjustments Page 61 Town of Southold • Other information in documents containing audited financial statements • Disagreements with management • Management consultation with other accountants ® Major issues discussed with management prior to retention • Difficulties encountered in performing the audit • Any other matter which may be important to the fair presentation of the Town's financial statements Value Added Services Management Consulting Services Understanding our client's operations and being involved throughout the year provides us with a unique opportunity to make recommendations and provide consulting services relating to operations which contributes to the success of your organization. The types of consulting services provided include, but are not limited to,the following areas: • Assist the Town in the implementation of new pronouncements issued by the Government Accounting Standards Board. • Review of leases and other legal agreements and interpretations of such provisions of leases and agreements. • Ability to provide better internal control recommendations as a result of our extensive internal control audit experience with regard to governmental organizations. • Budget reviews. • Exempt bond financing assistance. • Risk assessment and analysis. • Computer needs assessments, conversion phase and implementation. • Internal financial reporting systems. • Assessment of Employee Benefits alternatives. • Cash management analysis and budgeting. • Assistance in implementing a business plan and long-range planning. • Tax planning, consulting and preparation. o Acquisition or valuation studies. . Fraud Detection and Prevention Stonebridge Business Partners (SBP), an EFPR Group Company, provides a full suite of business valuation,forensic accounting and litigation services to an array of business clients across the United States. In addition,they now provide a state-of-the-art confidential, nationwide ethics hotline and on-line portal. Powered by Red Flag Reporting,the SBP ethics hotline and on-line portal system is recognized as the number one method of identifying and reporting unethical or unsafe conditions so you can prevent any threat to your organization's long-term sustainability. The Association of Certified Fraud Examiners recognizes this service as the most effective method of fraud detection and prevention saving clients thousands of dollars in losses and litigation exposure. The Stonebridge system provides: • 24-hour-a-day access for employees, strategic partners and suppliers • An easy to use and completely confidential telephone and on-line reporting system ® The ability to make reports in English and Spanish ® Certified Fraud Examiners to review each report ® Posters and wallet cards to create employee awareness and facilitate quick response a Quarterly emails to employees and newsletters to management ® A live fraud awareness seminar and pre-recorded issue awareness webinars ® Detained reports to pre-designated members of your organization ® "Reduced Risk" and increased "Peace of Mind" Page 71 Town of Southold WORKLOAD VOLUME 1. Describe the current total firm workload in comparison to undertaking the Town of Southold as a client. The EFPR Group, CPAs, PLLC is a growth-oriented Certified Public Accounting firm. Our Firm has entered into numerous multi-year contracts with New York State governmental organizations. Our Firm has been providing audit and related services to governmental organizations for over 50 years and has undertaken many engagements equal to or exceeding the magnitude of this project. We are confident that we can assemble a team of professionals that will respond rapidly and effectively to the needs of the Town of Southold. The Firm's professional staff provides over 325,000 hours annually of services to our clients. Adding the Town of Southold and approximately 400 hours necessary to properly service the Town is well within the capacity of the Firm. 2. Describe the firm's time constraints and deliverability of service to the Town. Upon receiving notice of appointment as auditors, we will meet with you and establish a definite time program for the performance of our services. The time program will be established to ensure that work is efficient and structured in such a way as to avoid disrupting the day-to-day routine duties of your staff. The following is an estimated timetable related to performance of our services on an annual basis: Task Deadline Complete interim fieldwork By December 31st Provide detailed audit plans By April 15th Begin final fieldwork for Deferred Comp Plan and the Justice Court By May 1st Begin final fieldwork for the Town By May 15th Complete final fieldwork for the Justice Court By May 15th Complete final fieldwork for Deferred Comp Plan By May 31st Issue draft reports for the Justice Court By June 1st Complete final fieldwork for the Town By June 15th Issue draft reports for the Deferred Comp Plan By June 15th Issue final reports for the Justice Court By June 15th Issue final reports for the Deferred Comp Plan By June 30th Issue draft reports for the Town By August 31st Issue final reports for the Town By September 30th The Firm has sufficient resources to ensure that the delivery of services to the Town is performed on a timely basis and will meet or exceed the Town's expectations. 3. Prices and staffing plans should be submitted for each year of the proposed three (3) year term. Our pricing plans have been submitted in our separate cost proposal. See below under qualifications for our proposed staffing plans for the engagement. Page 81 Town of Southold QUALIFICATIONS 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. Achieving our present position in the profession has come as a result of being responsive to the needs of our clients. A combination of a coordinated team approach and up-to-date knowledge allows for the most efficient approach to providing comprehensive professional services. Accordingly,we will assemble an engagement team that will include audit personnel with extensive governmental (New York State municipal) audit experience. The key individuals available to be assigned to these engagements and their roles are as follows: Douglas E. Zimmerman, CPA will serve as the partner in charge of our relationship with the Town of Southold. Doug will oversee all services provided and ensure that they are delivered in a timely and efficient manner. He will be responsible for all matters concerning accounting policy, participate in the planning phases of our engagement, review all working papers and reports prepared, and attend meetings with management and the Board. He will perform 2% of the work on this engagement. He has over 37 years of public accounting experience and currently functions as a partner in the Firm. He has extensive experience in providing audit, accounting and consulting services for numerous governmental organizations, including New York State municipalities. Doug is licensed in New York, Florida and Massachusetts as a Certified Public Accountant. John S. Costilow, CPA will serve as the engagement quality control review partner. John will provide a secondary review of all deliverables and critical engagement decisions and will be available throughout the engagement to consult and review on any auditing and accounting questions that may arise. He will perform 8%of the work on this engagement. He has over 17 years of public accounting experience. He currently functions as a partner in the Firm and has extensive experience in providing audit, accounting and consulting services for numerous governmental organizations, including New York State municipalities. John is licensed in New York State as a Certified Public Accountant. Brian D. Sawma, CPA will serve as the engagement director, overseeing the day-to-day performance of the audit. He will perform 12%of the work on this engagement. Brian has over nine years of public accounting experience. He currently functions as a director in the Firm and has extensive experience in providing audit,accounting and consulting services for numerous governmental organizations, including New York State municipalities. Brian is licensed in New York State as a Certified Public Accountant. Eric Schafer, MBA will be a senior accountant assigned to this engagement. Eric has over two years of public accounting experience. He currently functions as a senior accountant in the Firm and has extensive experience in providing audit,accounting and consulting services for numerous governmental organizations, including New York State municipalities. Staff Accountants: Your account will also be assigned an additional two staff accountants from the Firm's Governmental Audit Practice Group, who will work as part of the engagement team in performing your audit. They will perform 27% of the work on this engagement. Page 91 Town of Southold Continuing Professional Education With regard to continuing professional education (CPE), each of our staff members is required to complete an annual minimum of 40 hours of CPE programs approved by the American Institute of Certified Public Accountants. Additionally,since we perform audits in accordance with generally accepted Government Auditing Standards (GAGAS) (over 350 each year), our staff members must complete at least 24 of the SO hours (over a two-year period) of CPE in subjects directly related to the government environment and government auditing. Due to the substantial volume of governmental audits performed,our Firm continually monitors staff CPE compliance with the GAGAS requirements. All of the individuals listed above are in compliance with the CPE requirements. 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 firm's experience in performing Department of Transportation audits. The following is an outline of the services to be provided to the Town of Southold for the years ending December 31, 2024, 2025 and 2026: Town of Southold • Audit the basic financial statements 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 if required,the provisions of Office of Management and Budget(OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards.The primary purpose of this audit is the expression of an opinion as to the fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. • If required, audit the major federal programs, including the Schedule of Expenditures of Federal Awards, in accordance with the provisions of Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and issue an opinion on compliance and internal control over compliance relating to the major programs tested. • Issue a report on internal control overfinancial reporting and a report on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. • Prepare a letter to management detailing comments and suggestions for improvements in internal controls,general management techniques or changes in accounting principles that come to our attention during the audit. We will review and explain all observations and recommendations so that appropriate changes may be implemented. • Audit the statement of cash receipts,cash disbursements and cash balances of the Town Justice Court in accordance with auditing standards generally accepted in the United States of America.The primary purpose of these audits is the expression of an opinion as to the fair presentation of the financial statements in conformity with the cash basis of accounting. Page 10 1 Town of Southold • Audit the transportation assistance programs funded by the New York State Department of Transportation 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 Part 43 of NYCRR. • If required, prepare U.S. Form SF-SAC- "Data Collection Form for Reporting on Audits of States, Local Governments and Non-Profit Organizations." • Attend a meeting with the Town Board at a regularly scheduled meeting to review the results of our audit of the financial statements and trends that could impact the Town. • Maintain contact throughout the year to discuss: (a) changes in accounting which could affect the Town and (b) the progress toward fulfilling current needs and future objectives. Deferred Compensation Plan for Employees of the Town of Southold • Audit the financial statements of the Plan in conformity with auditing standards generally accepted in the United States of America, the AICPA Audit and Accounting Guide for Audits of Employee Benefit Plans and the standards for financial audits set forth in Government Auditing Standards,issued by the Comptroller General of the United States. The objective of this audit is the expression of an opinion as to the fair presentation of the financial statements of the Plan in conformity with generally accepted accounting principles. • Issue a letter to management detailing our suggestions for potential improvements to financial systems and internal controls. We will review and explain all observations and recommendations so that appropriate changes may be implemented. The EFPR Group,CPAs, PLLC provides audit, accounting, and consulting services to over 175 governmental organizations on an annual basis. Additionally,we serve more than 350 organizations which require an audit performed in accordance with Government Auditing Standards and over 250 clients that require audits performed in accordance with the provisions of Office of Management and Budget (OMB) Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards. The Firm's Governmental Audit Practice Group consists of 40 highly trained professionals who provide audit and related services to governmental organizations on a year round basis. The Firm has not made any staff reductions, reorganizations, or strategic changes in the past year nor are any actions planned. We have provided consulting services to our clients with regard to implementation of Governmental Accounting Standards Board (GASB) Statement No. 33 - "Accounting and Financial Reporting for Nonexchange Transactions,"and GASB Statement No.34-"Basic Financial Statements and Management's Discussion and Analysis." We have worked extensively with our government clients in ensuring that they have complied with the reporting requirements of GASB Statement No. 34. Consulting services offered to our clients with regard to implementation of GASB Standards include, but are not limited to,the following: • Implementation of infrastructure reporting ® Implementation of fixed asset policies and procedures • Reporting of infrastructure costs and assistance and guidance in preparing the Management Discussion and Analysis (MD&A) Page 111 Town of Southold We have also been assisting our clients with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 94, "Public-Private and Public-Public Partnerships and Availability Payment Arrangements."This standard addresses the accounting and financial reporting for these types of partnerships,which are becoming increasingly prevalent within governmental entities. We will evaluate the recognition, measurement, and disclosure of these transactions to ensure compliance with GASB 94. Our audit procedures will include an in-depth examination of any agreements entered into by our client that may fall under the purview of this standard, ensuring that all relevant activities are properly reported in the financial statements. Our goal is to provide assurance that the financial records accurately reflect the entity's involvement with these partnerships in accordance with the latest accounting principles. We have also been assisting our clients with the implementation of Governmental Accounting Standards Board (GASB)Statement No.96, "Subscription-Based Information Technology Arrangements" (SBITAs). This statement, effective for fiscal years beginning after June 15, 2022, requires government entities to recognize a right-to-use subscription asset and a corresponding liability. Our audit ensures that we are assessing our client's financial statements' adherence to the new standards and ensuring proper recognition and measurement of SBITAs and that we are providing guidance and insights on the implementation of GASB 96, ensuring that your team is well- informed and prepared. By incorporating GASB 96 into our audit strategy,we aim to provide a high level of assurance that your financial reporting is transparent,accurate,and fully compliant with the latest governmental accounting requirements New York State Department of Transportation-Our Firm currently provides annual financial statement and single audit services to six New York State counties and numerous other municipalities throughout New York State on an annual basis. The scope of services for the Counties includes preparation of the New York State Department of Transportation single audit report to test compliance 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 Part 43 of New York State Codification of Rules and Regulations (NYCRR). 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. Our Firm has provided various audit services to numerous municipalities and other governmental organizations. Please see Appendix B for a partial listing of governmental organizations which are our clients. The following individuals (which are current clients) may be contacted to provide references with regard to the quality of our Frm's work: Ms. Kim D.Jones Ms. Patricia Robcke Director of Finance Comptroller City of Rochester Town of Cortlandt ,City Hall- Room 201A 1 Heady Street 30 Church Street Cortlandt Manor, New York 10567 Rochester, New York 14614 (914)734-1070 (585)428-7151 pattvr@townofcortlandt.com kim.iones@cityofrochester.gov Ms.Tracy Yogman, CPA Mr.John C.Whitney, P.E. Town Comptroller& Receiver of Taxes Town Supervisor Town of Mamaroneck Town of Grand Island 740 West Boston Post Road 2255 Baseline Road Mamaroneck, New York 10543 Grand Island, New York 14072 (914) 381-7851 (716)773-9600 ext 616 tvogman@townofmamaronecknv.org iwhitney@grand-island.ny.us Page 121 Town of Southold Mr. Geb Cook Manager Fishers Island Ferry District P.O. Box 607 Fishers Island, New York 06390 (203)410-8156 gcook@fiferry.com 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. Our Firm has substantial experience providing audit, accounting and consulting services to various governmental organizations. We are very familiar with generally accepted Government Auditing Standards (GAGAS), issued by the Comptroller General of the United States. We perform approximately 350 GAGAS audits annually. Our team of professionals from our Government Audit Practice Group is well versed and keeps up-to-date on all standards affecting the government environment. Our Firm has substantial experience performing audits in accordance with the provisions of Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. We provide annual audit services for over 250 single audit compliant organizations,including having performed the Single Audit of the State of New York. New York State Counties-Our Firm currently provides annual financial statement and single audit services to six New York State counties and numerous other municipalities throughout New York State on an annual basis. Our audits of these counties are performed in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States,and Office of Management and Budget(OMB)Uniform Administrative Requirements,Cost Principles and Audit Requirements for Federal Awards. As part of these engagements,we issue a report on compliance and internal control over financial reporting. We currently provide financial statement audit,single audit and related services to the following New York State counties: • County of Chemung • County of Orleans • County of Delaware • County of Saratoga • County of Lewis • County of Washington The scope of services for the Counties includes preparation of the New York State Department of Transportation single audit report to test compliance 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 Part 43 of New York State Codification of Rules and Regulations (NYCRR). New York State Municipalities-Our Firm currently provides annual financial statement and single audit services to numerous municipalities throughout New York State on an annual basis. Our audits performed in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and, if required, Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. As part of these engagements,we issue a report on compliance and internal control overfinancial reporting. We currently provide financial statement audit, single audit (if required) and related services to the following New York State municipalities: Page 131 Town of Southold • City of Beacon • Town of Ithaca • City of Fulton • Town of Jasper • City of Lackawanna • Town of Lumberland • City of New Rochelle • Town of Mamaroneck • City of Niagara Falls • Town of Mexico • City of Port Richey • Town of Plattsburgh • City of Rochester • Town of Southeast • Town of Alexander . Town of Ulster • Town of Alexandria • Town of Union • Town of Beekman • Village of Cold Spring • Town of Chili • Village of Delhi • Town of Cortlandt . Village of Heuvelton • Town of Elmira • Village of Montebello • Town of Fishkill • Borough of Sayre • Town of Grand Island • Borough of South Waverly Municipal Justice Courts, Receiver of Taxes and Town Clerks-Our Firm provides audit and agreed-upon procedure services to the following municipal Justice Courts, Receiver of Taxes and Town Clerks: • Town of Cortlandt Justice Court • Town of Southeast Justice Court • Town of Ulster Justice Court • Town of Plattsburgh Justice Court • Town of Ithaca Justice Court • Town of Mamaroneck Justice Court • Town of Beekman Justice Court • Town of Beekman Receiver of Taxes • Town of Fishkill Justice Court • Town of Grand Island Justice Court • Town of Plattsburgh Town Clerk • Town of Plattsburgh Receiver of Taxes • Town of Southeast Receiver of Taxes New York State Urban Development Corporation d/b/a Empire State Development- We perform the annual audit of the general purpose financial statements of the Corporation (a component unit of the State of New York)in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. The Corporation's goal is to create and retain jobs and to reinvigorate economically distressed areas of the State. The.Corporation administers various economic development programs which provides tax incentives designed to attract new businesses to New York State and to enable existing businesses to expand and create more jobs. The Corporation has over 150 subsidiaries which are consolidated for financial reporting purposes. Our firm provides audit and related services to various subsidiaries of Empire State Development. Empire State Development has annual revenues in excess of$2.3 billion and assets of more than $26 billion. Fishers Island Ferry District-We perform the annual audit of the financial statements of the District in accordance with auditing standards generally accepted in the United States of America and the provisions of Government Auditing Standards, issued by the Comptroller General of the United States. City of Rochester- We perform the annual audit of the financial statements of the City in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. As part of this engagement we also perform an audit of the compliance requirements applicable to the major state transportation assistance program. We also assist with the preparation of the Annual Comprehensive Financial Report which is submitted to the Government Finance Officers Association to obtain a Certificate of Achievement for Excellence in Financial Reporting. Page 141 Town of Southold City of Niagara Falls-We perform the annual audit of the financial statements of the City in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. As part of this engagement we also perform an audit of the compliance requirements applicable to the major state transportation assistance program. Town of Cortlandt-We perform the annual audit of the financial statements of the Town in accordance with auditing standards generally accepted in the United States of America and the provisions of Government Auditing Standards, issued by the Comptroller General of the United States. We also assist with the preparation of the Annual Comprehensive Financial Report which is submitted to the Government Finance Officers Association to obtain a Certificate of Achievement for Excellence in Financial Reporting. Town of Mamaroneck-We perform the annual audit of the financial statements of the Town in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. As part of this engagement we also audit the statement of cash receipts, cash disbursements and cash balances of the Town Justice Court. 457 Deferred Compensation Plans-The EFPR Group, CPAs, PLLC performs the annual audit of the following 457 Deferred Compensation Plans: • County of Nassau • Town of Huntington • County of Chemung • Town of Ithaca • County of Monroe • Town of Union • County of Suffolk 401(a)Terminal Pay Plan • Monroe County Water Authority • City of Rochester 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. The EFPR Group, CPAs, PLLC provides audit services to over 175 governmental clients throughout New York State on an annual basis. Our clients range from small organizations with less than$1 million in assets or revenue to Empire State Development with assets of over$26 billion and revenue of $2.3 billion annually. Each audit is planned and staffed to ensure that the audit is completed in compliance with all applicable professional standards. All draft reports and final reports are issued in compliance with regulatory due dates and meeting the expectations of the clients Governing Board with contracts with our Firm. A listing of our current governmental clients can be found in Appendix B of our proposal. We have also provided references on pages 2 through 3 and 12 through 13 of our proposal. If the Town wishes to contact any additional clients,we would be happy to provide contact information upon request. Page 151 Town of Southold 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 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. The EFPR Group, CPAs, PLLC is licensed to practice in New York State. Please see Appendix A for evidence of the firm's license to practice and licenses of key individuals to be assigned to the engagement. The EFPR Group,CPAs, PLLC is independent of the Town of Southold as defined by generally accepted auditing standards and U.S. Government Accountability Office (GAO)'s Government Auditing Standards. Accordingly, no relationship exists between the EFPR Group, CPAs, PLLC and the Town or any of its employees, Board members or with any person or agency that constitutes a conflict of interest with respect to the Town. Peer Review The EFPR Group, CPAs, PLLC retains an independent accounting firm to conduct a review of its system of quality control every three years in accordance with the rigorous standards of the American Institute of Certified Public Accountants. In May 2023, our Firm successfully completed the most recent peer review of its accounting and auditing practice. The review determined that the Firm complies with the stringent quality control standards set by the American Institute of Certified Public Accountants. Our Firm has received the highest rating possible (pass)with no letter of comments being required in each of its last 11 peer reviews. According to the peer review team, less than one percent of the firms in the nation achieve this level of excellence. We believe that this attests to our commitment to quality. Peer reviews, which are performed every three years, are required of all CPA firms and are conducted in accordance with rules issued by the American Institute of Certified Public Accountants. (See Appendix C for a copy of the report issued in connection with our most recent peer review.) The peer review included a review of all of the firm's major client categories,including audits conducted in accordance with generally accepted Government Auditing Standards and the provisions of Office of Management and Budget (OMB) Uniform Administrative Requirements,Cost Principles and Audit Requirements for Federal Awards). Federal or Desk Audits/Disciplinary Action No federal or state desk review or field review of the EFPR Group, CPAs, PLLC's audits has been completed in the past five years. Additionally, neither the EFPR Group, CPAs, PLLC nor any of our employees has been the subject of any disciplinary action by State regulatory bodies or professional organizations. The firm's peer review opinion in Appendix C attests to the exceptional quality of the EFPR Group, CPAs, PLLC's audit work. ADDITIONAL INFORMATION Quality Assurance CPAmerica, Inc. EFPR Group,CPAs,PLLC is an independently owned and operated member firm is CPAmerica, Inc., one of the largest associations of CPA firms in the United States. Through our affiliation, we have instant access to the expertise and resources of more than 4,000 professionals and more than 700 partners. CPAmerica is a member of Crowe Global, providing our firm access to the eighth largest accounting network in the world, with over 200 independent accounting and advisory firms in 130 countries. By supplementing our services,CPAmerica allows us to: Page 161 Town of Southold • Enhance our client services and broaden our capabilities overall • Expand our domestic and international coverage • Gain greater technical knowledge in specialty areas • Utilize professionals with experience in a wide range of industries • Access the most up-to-date technical information • Participate in the latest training programs • Utilize state of-the-art, customized computer systems • Provide our clients with key contacts and sophisticated professionals throughout the U.S. CPAmerica brings us the necessary tools to help us better serve our clients with greater flexibility, efficiency and cost effectiveness. Government Audit Quality Center We are also a member of the American Institute of Certified Public Accountants Government Audit Quality Center (GAQC). The GAQC promotes the importance of quality governmental audits and the value of such audits to purchasers of governmental audit services. As members, we have access to the latest developments in accounting,auditing,and the various rules and regulations that affect governmental audits. We also receive periodic updates on current issues through news alerts and Webcasts. We are proud of the quality of our work and in order to ensure that this high level of quality is maintained, we have established a comprehensive quality assurance program. The program starts with hiring the best people available and continues with extensive continuing education, an annual minimum of 40 hours per staff member. Our involvement in the GAQC is optional,but indicates a level of commitment above non-member Certified Public Accounting firms. Our participation requires that our firm and personnel attain additional continuing professional education on an annual basis. Indemnification The EFPR Group, CPAs, PLLC will indemnify and save harmless the Town of Southold from and against all losses 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 Firm,subcontractor, his agent or employees in the performance of the contract. Other Significant Information • Experience-Since the EFPR Group,CPAs,PLLC"specializes"in providing audit and related services to governmental organizations, our field staff is experienced in providing such services. • Technology- All of our field staff are equipped with laptop computers and have access to various software packages and databases (e.g. data extraction software, flowchart software, Microsoft Office, etc.) and other electronic means to ensure that the audit is performed in the most efficient manner. • Continuing Education - With regard to continuing professional education, each of our staff members is required to complete an annual minimum of 40 hours of continuing education programs approved by the American Institute of Certified Public Accountants. Additionally, since we perform audits in accordance with Government Auditing Standards (over 350 each year), our staff members must complete at least 24 of the 80 hours(over a two-year period)of continuing education in subjects directly related to the government environment and government auditing. Page 171 Town of Southold • Affirmative Action -The EFPR Group, CPAs, PLLC is an equal opportunity employer and as such possesses a firm commitment to affirmative action and to hiring only the best- qualified candidates regardless of gender or ethnic origin. Our Firm does not discriminate against any employee or applicant for employment because of race, creed, color, national origin,sex, age, disability or marital status. We would consider it a distinct privilege to provide professional services as outlined in this letter or any additional services you may desire. Please contact us if there are any questions regarding this letter. A copy of this letter is enclosed; if the terms of this proposal are satisfactory to you please sign the copy and return it to me at your convenience. ACCEPTED: EFPR GROUP, CPAs, PLLC TOWN OF SOUTHOLD B � Y RY < o E.Zimmerman, CPA ner Date:November 20, 2024 Date: Page 181 Town of Southold _I TOWN OF SOUTHOLD Proposal to Provide Audit and Related Services Years.ending December 31,.2024, 2025 and 2026 I' �OF..SOUty0, I } . . EFPR GROUP, CPAs,.PLLC Douglas E. Zimmerman, CPA Partner dzimmerman@efprgroup.com I November 20,.2024 Town of Southold Table of Contents Page Transmittal Letter - Firm Philosophy 1 Key Considerations Regarding the EFPR Group 1 Fresh Perspective 1 Independence 1 Licensed to Practice in New York State 1 Prior Engagements with the Town of Southold 1 Similar Engagements with Other Governmental Entities 2-3 Introductory Statement 3 Proposed Methodology 3-7 Workload Volume - 8 Qualifications 9- 16 Additional Information 16- 18 Appendix A-Detailed Resumes of Key Personnel from the Firm's Government Audit Practice Group Appendix B-Partial Government Client List Appendix C-Peer Review Letter Appendix D- Required Forms i a)EFPRGRouP CPAs 6390 Main Street,Suite 200 Williamsville,NY 14221 P 716.634.0700 TF 800.546.7556 F 716.634.0764 November 20, 2024 w EFPRgroup.com } Ms. Laura Arena Senior Account Clerk Town of Southold P.O. Box 1179 Southold, New York 11971 Dear Ms. Arena: We are pleased to submit our proposal to provide audit and related services to the Town of Southold for the years ending December 31, 2024, 2025 and 2026. We confirm that we understand the scope of services to be provided and will commit the resources necessary to ensure performance of our services within the required timeframe. Our proposal is a firm and irrevocable offer for ninety (90) days. We believe the EFPR Group, CPAs, PLLC is highly qualified to provide audit and related services to the Town based on: • Our experience with regard to providing audit and related services for over 175 governmental organizations annually. Our Government Audit Practice Group provides timely services to governmental organizations located throughout New York State. • We were recently awarded the contract to provide audit and related services to the Southold Local Development Corporation. • Our experience providing audit and related services to municipalities, including the following: • County of Chemung • Town of Elmira • County of Delaware • Town of Erwin • County of Lewis . Town of Fishkill - • County of Orleans . Town of Grand Island • County of Saratoga • Town of Ithaca • County of Washington • Town of Jasper • City of Beacon . Town of Lumberland • City of Fulton • Town of Mamaroneck • City of Kingston • Town of Mexico • City of Lackawanna . Town of Plattsburgh • City of New Rochelle • Town of Southeast • City of Niagara Falls . Town of Ulster _1 • City of Port Richey • Town of Union • City of Rochester • Village of Cold Spring • Town of Alexander . Village of Delhi • Town of Alexandria . Village of Heuvelton • Town of Beekman . Village of Island Park • Town of Chili . Village of Montebello • Town of Corning . Borough of Sayre • Town of Cortlandt • Borough of South Waverly -`I Ms. Laura Arena - November 20, 2024 • Our substantial experience with regard to providing audit and related services for organizations required to have audits which are performed in accordance with —� Government Auditing Standards, issued by the Comptroller General of the United States. We audit over 350 organizations annually in accordance with Government Auditing Standards. 1 • Our substantial experience with regard to providing audit and related services for organizations which require audits performed in accordance with the provisions of Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. We provide annual audit services i for over 250 single audit compliant organizations. J • Our experience providing audit and agreed-upon procedure services to municipal Justice Courts, Receiver of Taxes and Town Clerks, including the following: • Town of Cortlandt Justice Court • Town of Southeast Justice Court • Town of Ulster Justice Court • Town of Plattsburgh Justice Court • Town of Ithaca Justice Court • Town of Mamaroneck Justice Court • Town of Beekman Justice Court • Town of Beekman Receiver of Taxes -� • Town of Fishkill Justice Court • Town of Grand Island Justice Court • Town of Plattsburgh Town Clerk • Town of Plattsburgh Receiver of Taxes • Town of Southeast Receiver of Taxes • Our substantial experience with regard to providing audit and related services to numerous 457 Deferred Compensation Plans. We have experience providing annual audit services to the following 457 Deferred Compensation Plans: • County of Nassau • Town of Huntington • County of Chemung • Town of Ithaca • County of Monroe • Town of Union • County of Suffolk 401(a)Terminal Pay Plan • Monroe County Water Authority • City of Rochester • Our experience with various State agencies, including the following: • New York State Affordable Housing Corporation • New York State Assembly - • New York State Bridge Authority — • New York State Department of Agriculture and Markets/State Fair J • New York State Department of Transportation • New York State Division of the Budget - • New York State Executive Chamber • New York State Homeless Housing Assistance Corporation • New York State Office for People With Developmental Disabilities New York State Office of Alcoholism and Substance Abuse Services • New York State Office of Children and Family Services • New York State Office of General Services _ • New York State Office of the State Comptroller ® New York State Office of Temporary Disability Assistance • New York State Senate _ • New York State Thoroughbred Breeding and Development Fund • New York State Unified Court System ® New York State Urban Development Corporation • Our ability to provide quality services on a timely basis for reasonable fees. Ms. Laura Arena November 20, 2024 1 Our depth of experience working with many governmental entities throughout New York State should provide peace of mind that the Town would be served by a highly competent team of professionals committed to assist in whatever capacity you require. We understand that for our services to be valuable to the Town,we need to provide more than just financial reporting. At the EFPR Group, CPAs, PLLC,we take a proactive approach to our client relationships in order to ensure J we are anticipating our client's needs before they call on us for assistance. We are available throughout the year to answer questions and address concerns that may arise. We would consider it a distinct privilege to provide professional services as outlined in this proposal or any additional services you desire. Simply put,we want to be your auditors and business consultants. Please contact us if there are any questions regarding this proposal. Very truly yours, EFPR GROUP, CPAs, PLLC ou a . Zimmerman, CPA P er i i J f J I �1 FIRM PHILOSOPHY - '_ The EFPR Group, CPAs, PLLC was founded on the principle of providing our clients with the 1 same high quality level of service expected from a national firm yet with the dedicated involvement that can only be developed by personal attention. The primary mission of our Firm has always been -� helping our clients succeed. We are committed to delivering services targeted to each client's j critical needs and industry niche. -� KEY CONSIDERATIONS REGARDING THE EFPR GROUP Our Firm has achieved its present position in the accounting profession by providing quality services on a timely basis, for reasonable fees. Accounting firms should be evaluated in light of several important conditions: -� • The firm's qualifications, experience and its ability to provide auditing, accounting and consulting services for a reasonable fee. • The firm's ability to assemble and commit a team of professionals experienced in _. providing audit, accounting and consulting services for governmental organizations, specifically New York State municipalities. • The firm's involvement of client personnel and active participation and coordination on _ a year-round basis. • The firm's commitment to provide services which will contribute to the success of our - clients. In the following paragraphs, we shall demonstrate that the EFPR Group, CPAs, PLLC is the accounting firm best qualified to serve the Town of Southold. --i FRESH PERSPECTIVE 1 Changing auditors does not have to be difficult. The professionals at the EFPR Group, CPAs, PLLC are excited about providing the Town with a fresh perspective on internal controls,compliance risks, and other operational matters. As noted throughout our proposal,our objective is to provide -i value beyond our financial and compliance audits. -� INDEPENDENCE The EFPR Group, CPAs, PLLC is independent of the Town of Southold as defined by generally _i accepted auditing standards and U.S. Government Accountability Office (GAO)'s Government Auditing Standards. Accordingly, no relationship exists between the EFPR Group, CPAs, PLLC and -? the Town or any of its employees, Board members or with any person or agency that constitutes a conflict of interest with respect to the Town. The EFPR Group, CPAs, PLLC has not had any professional relationships with the Town in the past five years. Our Firm will give the Town written notice of any professional relationships entered -� into during the period of the engagement which may constitute a conflict of interest. I LICENSED TO PRACTICE IN NEW YORK STATE -J The EFPR Group, CPAs, PLLC is licensed to practice in New York State. Please see Appendix A for evidence of the firm's license to practice and licenses of key individuals to be assigned to the engagement. PRIOR ENGAGEMENTS WITH THE TOWN OF SOUTHOLD Y Ji The EFPR Group, CPAs, PLLC has not had any engagements with the Town in the past ten years. Page 11 Town of Southold _j I� SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES Our Firm provides various audit services to numerous governmental organizations. The following individuals may be contacted to provide references with regard to the quality of our Firm's work: Fishers Island Ferry District Scope of work: Audit of financial statements, including compliance with Government Auditing Standards. _J Date: 2018 and ongoing Contact: Mr. Geb Cook —� Manager P.O. Box 607 Fishers Island, New York 06390 (203)410-8156 gcook@fiferry.com _ Town of Grand Island Scope of work: Audit of financial statements, including compliance with Government Auditing J Standards and single audit, and audit of Town Justice Court. Date: 2021 and ongoing Contact: Mr.John C.Whitney, P.E. Town Supervisor 2255 Baseline Road Grand Island, New York 14072 (716)773-9600 ext 616 iwhitney@grand-island.ny.us City of Rochester Scope of work: Audit of financial statements, including compliance with Government Auditing Standards, single audit, and New York State Department of Transportation audit. As part of this engagement we also audit the financial statements of J the Land Bank and Public Library.We also assist in the preparation of the ACFR and submittal for GFOA certificate. Date: 2023 and ongoing Contact: Ms. Kim D.Jones _ Director of Finance City Hall-Room 201A 30 Church Street Rochester, New York 14614 r (585)428-7151 kim.iones@citvofrochester.gov Town of Cortlandt Scope of work: Audit of financial statements, audit of Town Justice Court, and assist in the - preparation of the ACFR and submittal for GFOA certificate. Date: 2016 and ongoing Contact: Ms. Patricia Robcke -- Comptroller _ 1 Heady Street Cortlandt Manor, New York 10567 (914) 734-1070 Pattvr@townofcortiandt.com — Page 21 Town of Southold -1 - Town of Mamaroneck Scope of work: Audit of financial statements, including compliance with Government Auditing f Standards and single audit, and audit of Town Justice Court. —� Date: 2021 and ongoing _ Contact: Ms.Tracy Yogman, CPA Town Comptroller& Receiver of Taxes _ 740 West Boston Post Road Mamaroneck, New York 10543 (914) 381-7851 tvogman@townofmamaronecknv.org Our Firm has assisted our governmental clients in obtaining a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). We are committed to providing the highest quality services and assisting governmental entities in meeting regulatory deadlines. Our Firm is familiar with the review process that the GFOA uses to evaluate the Annual Comprehensive Financial Report (ACFR) and can assist the County in obtaining the Certificate of —1 Achievement for Excellence in Financial Reporting. Our firm has prepared the ACFR for the City of Rochester, Cities of Destin and Port Richey, Florida, Town of Cortlandt, and the Counties of Chemung, Putnam, Sullivan, Ulster, Cattaraugus and Steuben. The additional minimum requirements to prepare the CAFR are as follows: ,I • Introduction section, including names of Town officials, • Combining statements of government funds, including comparisons of actual to budget, and • A statistical section. INTRODUCTORY STATEMENT i The EFPR Group, CPAs, PLLC provides audit, accounting and consulting services to over 175 _ governmental organizations on an annual basis. We also serve more than 350 organizations which require an audit performed in accordance with Government Auditing Standards and over 150 clients _ that require audits performed in accordance with the provisions of Office of Management and Budget (OMB) Uniform Administration Requirements, Cost Principles and Audit Requirements for ? Federal Awards. Our Firm employs 200 professionals with 41 partners and directors. The Firm's Government Audit Practice Group consists of 40 highly trained professionals who provide audit and related services to governmental organizations on a year round basis. Our Firm has offices located in Williamsville, Rochester, and Corning, New York. The -J fieldwork associated with the engagement will be performed at the Town's office located in _ Southold, New York by the professionals from the Firm's Government Audit Practice Group. Please see Appendix A for detailed resumes of the Firm's key Government Audit Practice Group members and Appendix B for a partial listing of governmental organizations which are our clients. PROPOSED METHODOLOGY We confirm that we understand the scope of services to be provided and will commit the - resources necessaryto ensure performance of our services. Our audits are made in accordance with auditing standards generally accepted in the United States of America and,accordingly, include such tests of the accounting records and other auditing procedures as we consider necessary and appropriate in order to express an opinion on the financial statements. Although audits conducted by different firms should all comply with certain professional requirements and thus might appear identical in nature, you should distinguish individual firms by 1 at least two key factors: -' Page 31 Town of Southold J --' 1. The extent to which the firm understands or expands its understanding of your Town in advance of the audit and tailors its auditing procedures to the conditions and needs of the Town. _J 2. The pertinent skills and processes the auditor can bring to bear upon the engagement to ensure an effective and efficient audit. JTransition from Current Auditor Changing auditors for the Town should not be a difficult task. Fortunately, your proposed engagement team has had many opportunities over the years to step in as the new auditor. This experience helps ensure that the transition goes as smoothly as possible. From communicating with the predecessor auditor, reviewing their work papers, documenting and understanding your business processes,we will focus on minimizing the challenges that sometimes come with an auditor change. We will obtain as much information as possible from your predecessor auditor and then assemble a list of any items needed from the Town's management, along with mutually agreed- -; upon response dates. Our objective as your professional service provider will be to front load as much work as possible, including our transition as your external auditor. Because of your -" engagement team's experience with municipalities and other governmental organizations, our engagement team will hit the ground running, resulting in minimal disruption to your day-to-day a operations. Financial Statement Audit Audit examinations performed by our Firm are conducted from a risk-based approach. This approach yields two major benefits: • Maximization of understanding of the Town's operating environment, and • Minimization of audit time by starting with broad considerations and narrowing to specific audit objectives in critical areas. The audit of the financial statements of the Town of Southold will consist of the following four phases: • Planning • Systems evaluation - • Testing • Reporting • Planning is the first step in the audit engagement and provides the foundation for the direction of the audit. This phase of the audit involves meeting with the Audit Committee and management of the Town to clearly identify the lines of communication, perform the risk analysis, discuss the audit scope and concerns and set expectations. While facilitating an understanding between our firm and the Town,we highlight areas,which will receive emphasis during our audit. This type of analytical review process permits identification of critical areas. As a result, appropriate audit procedures are focused therein. • Systems Evaluation consists of the following steps: - A review of internal control systems of the Town; -- - A review of the information technology systems utilized by the Town to prepare its accounting records and monitor compliance with regulatory requirements; - An identification of control strengths and weaknesses in management and accounting controls; and - The development of a tailored audit program to be responsive to the Town's - concerns and reflective of the internal control system. Page 41 Town of Southold �i J • Testing is the largest part of the audit process and includes both compliance test of internal controls and regulatory requirements and substantive test of the Town's 1 financial data. _ The EFPR Group, CPAs, PLLC uses sampling in selecting items for examination by ? compliance and/or substantive tests where it is determined to be cost beneficial to s sample the population. Our Firm has an Audit and Accounting Manual which contains procedures for the control and evaluation of sampling risk, selection of samples,and evaluation of sample results. Audit sampling will normally be used to perform the following tests: • Substantive tests as part of the audit of the Town's basic financial statements; • Compliance tests to provide reasonable assurance that internal control (accounting and administrative) procedures used in administering federal and state financial assistance programs are being applied as prescribed; and • Substantive tests of compliance with laws and regulations as part of the audit of -' the basic financial statements and for the purpose of reporting on compliance _ with laws and regulations as they relate to the schedule of federal financial assistance. • Reporting is completed at the conclusion of the audit process. This phase will include - the preparation of the draft financial statements and management letter. Management of the Town will be provided drafts of all reports. These drafts will be reviewed in detail and any questions or concerns of management will be appropriately addressed. Reports will only be finalized after approval of management and the Audit Committee of the Town. -' Our management letter will discuss internal control recommendations and suggestions for procedural improvements we identified as part of the audit. The letter will also include observations about accounting methods and procedures, business and industry practices or issues, operational ideas, and suggestions to further enhance the Town's operations. We will advise you of any new accounting pronouncements that have been or may be issued and indicate their potential impact. J Single Audit Approach,If Required Determining Maior Programs To meet the provisions of the Single Audit Act and Office of Management and Budget(OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, _J we will use a risk-based approach to determine which Federal programs are major programs. This _} risk-based approach will include consideration of current and prior audit experience, oversight by Federal agencies and pass-through entities, and the inherent risk of the Federal program. The J following is the approach we will follow in our single audit: • Determine Type A programs J • Determine high-risk Type A programs ® Determine high-risk Type B programs o Determine programs to be audited as major programs. Page 51 Town of Southold J J' Identification of Material Compliance Requirements In performing the Single Audit,we will focus on testing those compliance requirements that r are material to each program. The OMB compliance supplement identifies the general categories of material compliance requirements. The updated compliance supplement identifies specific requirements for the Federal programs determined to be major programs._ While the compliance supplement will be used as a starting point to identify material compliance requirements, we will - ' also review other documents to consider potential material requirements. Documents that may be considered include the Code of Federal Regulations, Assistance Listings (formerly the Catalog of 1t Federal Domestic Assistance),program and grant award letters,and grant guides and audit manuals. We will also discuss program requirements, new regulations, and program changes with respective program managers during the planning phase of the engagement to identify additional or new jmaterial compliance requirements. Only those requirements that are considered to be material are subject audit test work. The following are the 12 categories of requirements identified in the compliance supplement: • Activities allowed or unallowed • Allowable costs/cost principles • Cash management • Eligibility • Matching, level of effort, earmarking • Period of availability of Federal funds • Procurement,suspension and debarment • Program income • Real property acquisition and relocation • Reporting • Subrecipient monitoring • Special tests and provisions OMB's compliance supplement describes characteristics of internal control relating to each of the five components of internal control that should reasonably assure compliance with the -; requirements of Federal laws, regulations,and program compliance requirements. A description of i the components of internal control is as follows: • Control environment sets the tone of an organization influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. • Risk assessment is the entity's identification and analysis of relevant risks to the achievement of its objectives. This forms a basis for determining how the risks should be managed. • Control activities are the policies and procedures that help to ensure that management's I directives are carried out. • Information and communication are the means to identify, capture, and exchange information in a form and time frame that enable people to carry out their responsibilities. • Monitoring is the process that assesses the quality of internal control performance over i time. J Reporting to the Board As required by professional standards,we will ensure that the Town Board will be informed of the following: • The Auditors' responsibility under auditing standards generally accepted in the United j States of America O The Auditors' responsibility under Government Auditing Standards and if required, the provisions of Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards • Significant accounting policies © Management judgments and accounting estimates j e Significant audit adjustments Page 61 Town of Southold i i • Other information in documents containing audited financial statements • Disagreements with management • Management consultation with other accountants • Major issues discussed with management prior to retention • Difficulties encountered in performing the audit • Any other matter which may be important to the fair presentation of the Town's financial statements Value Added Services Management Consulting Services Understanding our client's operations and being involved throughout the year provides us j with a unique opportunity to make recommendations and provide consulting services relating to J operations which contributes to the success of your organization. The types of consulting services provided include, but are not limited to,the following.areas: • Assist the Town in the implementation of new pronouncements issued by the Government Accounting Standards Board. — • Review of leases and other legal agreements and interpretations of such provisions of leases and agreements. • Ability to provide better internal control recommendations as a result of our extensive -- internal control audit experience with regard to governmental organizations. • Budget reviews. • Exempt bond financing assistance. • Risk assessment and analysis. • Computer needs assessments,conversion phase and implementation. - • Internal financial reporting systems. • Assessment of Employee Benefits alternatives. ! • Cash management analysis and budgeting. • Assistance in implementing a business plan and long-range planning. • Tax planning,consulting and preparation. • Acquisition or valuation studies. Fraud Detection and Prevention Stonebridge Business Partners (SBP), an EFPR Group Company, provides a full suite of business valuation,forensic accounting and litigation services to an array of business clients across the United States. In addition, they now provide a state-of-the-art confidential, nationwide ethics hotline and on-line portal. Powered by Red Flag Reporting,the SBP ethics hotline and on-line portal system is recognized as the number one method of identifying and reporting unethical or unsafe conditions so you can prevent any threat to your organization's long-term sustainability. The - Association of Certified Fraud Examiners recognizes this service as the most effective method of fraud detection and prevention saving clients thousands of dollars in losses and litigation exposure. _ The Stonebridge system provides: • 24-hour-a-day access for employees, strategic partners and suppliers • An easy to use and completely confidential telephone and on-line reporting system • The ability to make reports in English and Spanish • Certified Fraud Examiners to review each report ® Posters and wallet cards to create employee awareness and facilitate quick response • Quarterly emails to employees and newsletters to management • A live fraud awareness seminar and pre-recorded issue awareness webinars ® Detained reports to pre-designated members of your organization • "Reduced Risk" and increased "Peace of Mind" i Page 71 Town of Southold J WORKLOAD VOLUME 1. Describe the current total firm workload in comparison to undertaking the Town of Southold _J as a client. The EFPR Group, CPAs, PLLC is a growth-oriented Certified Public Accounting firm. Our Firm has entered into numerous multi-year contracts with New York State governmental organizations. Our Firm has been providing audit and related services to governmental organizations for over 50 years and has undertaken many engagements equal to or exceeding the magnitude of this project. _i We are confident that we can assemble a team of professionals that will respond rapidly and effectivelyto the needs of the Town of Southold. The Firm's professional staff provides over 325,000 hours annually of services to our clients. Adding the Town of Southold and approximately 400 hours necessary to properly service the Town is well within the capacity of the Firm. 2. Describe the firm's time constraints and deliverability of service to the Town. Upon receiving notice of appointment as auditors, we will meet with you and establish a definite time program for the performance of our services. The time program will be established to ensure that work is efficient and structured in such a way as to avoid disrupting the day-to-day routine duties of your staff. The following is an estimated timetable related to performance of our services on an annual basis: Task Deadline Complete interim fieldwork By December 31st Provide detailed audit plans By April 15th Begin final fieldwork for Deferred Comp Plan and the Justice Court By May 1st Begin final fieldwork for the Town By May 15th Complete final fieldwork for the Justice Court By May 15th Complete final fieldwork for Deferred Comp Plan By May 31st Issue draft reports for the Justice Court By June 1st Complete final fieldwork for the Town By June 15th Issue draft reports for the Deferred Comp Plan By June 15th Issue final reports for the Justice Court By June 15th Issue final reports for the Deferred Comp Plan By June 30th Issue draft reports for the Town By August 31st —� Issue final reports for the Town By September 30th { The Firm has sufficient resources to ensure that the delivery of services to the Town is performed on a timely basis and will meet or exceed the Town's expectations. i —� 3. Prices and staffing plans should be submitted for each year of the proposed three (3) year term. Our pricing plans have been submitted in our separate cost proposal. See below under qualifications for our proposed staffing plans for the engagement. J Page 81 Town of Southold 1 _J QUALIFICATIONS l 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. _J Achieving our present position in the profession has come as a result of being responsive to the needs of our clients. A combination of a coordinated team approach and up-to-date knowledge -' allows for the most efficient approach to providing comprehensive professional services. _' Accordingly,we will assemble an engagement team that will include audit personnel with extensive governmental (New York State municipal) audit experience. The key individuals available to be assigned to these engagements and their roles are as follows: Douglas E.Zimmerman, CPA will serve as the partner in charge of our relationship with the Town of Southold. Doug will oversee all services provided and ensure that they are delivered in a timely and efficient manner. He will be responsible for all matters concerning accounting policy, participate in the planning phases of our engagement, review all working papers and reports prepared, and attend meetings with management and the Board. He will perform 2% of the work on this engagement. He has over 37 years of public accounting experience and currently functions as a partner in the Firm. He has extensive experience in providing - audit, accounting and consulting services for numerous governmental organizations, including New York State municipalities. Doug is licensed in New York, Florida and Massachusetts as a Certified Public Accountant. John S. Costilow, CPA will serve as the engagement quality control review partner. John will provide a secondary review of all deliverables and critical engagement decisions and will be _- available throughout the engagement to consult and review on any auditing and accounting questions that may arise. He will perform 8% of the work on this engagement. He has over 17 years of public accounting experience. He currently functions as a partner in the Firm and has extensive experience in providing audit, accounting and consulting services for numerous governmental organizations, including New York State municipalities. John is licensed in New York State as a Certified Public Accountant. f Brian D. Sawma, CPA will serve as the engagement director, overseeing the day-to-day -- performance of the audit. He will perform 12% of the work on this engagement. Brian has over nine years of public accounting experience. He currently functions as a director in the Firm and has extensive experience in providing audit,accounting and consulting services for numerous governmental organizations, including New York State municipalities. Brian is licensed in New York State as a Certified Public Accountant. Eric Schafer, MBA will be a senior accountant assigned to this engagement. Eric has over two years of public accounting experience. He currently functions as a senior accountant in -� the Firm and has extensive experience in providing audit,accounting and consulting services for numerous governmental organizations, including New York State municipalities. Staff Accountants: Your account will also be assigned an additional two staff accountants from the Firm's Governmental Audit Practice Group, who will work as part of the engagement team in performing your audit. They will perform 27% of the work on this engagement. f Page 91 Town of Southold t Continuing Professional Education With regard to continuing professional education (CPE), each of our staff members is required to complete an annual minimum of 40 hours of CPE programs approved by the American Institute of Certified Public Accountants. Additionally, since we perform audits in accordance with generally accepted Government Auditing Standards (GAGAS) (over 350 each year), our staff members must complete at least 24 of the 80 hours (over a two-year period) of CPE in subjects directly related to the government environment and government auditing. Due to the substantial volume of governmental audits performed,our Firm continually monitors staff CPE compliance with the GAGAS requirements. All of the individuals listed above are in compliance with the CPE requirements. 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 firm's experience in performing Department of Transportation audits. The following is an outline of the services to be provided to the Town of Southold for the years ending December 31, 2024, 2025 and 2026: Town of Southold • Audit the basic financial statements in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits k contained in Government Auditing Standards, issued by the Comptroller General of the United States and if required,the provisions of Office of Management and Budget(OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for J( Federal Awards.The primary purpose of this audit is the expression of an opinion as to the fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. J • If required, audit the major federal programs, including the Schedule of Expenditures of Federal Awards, in accordance with the provisions of Office of Management and Budget ,I (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and issue an opinion on compliance and internal control over compliance relating to the major programs tested. • Issue a report on internal control over financial reporting and a report on compliance and - ' other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. ® Prepare a letter to management detailing comments and suggestions for improvements in internal controls,general management techniques or changes in accounting principles that come to our attention during the audit. We will review and explain all observations and recommendations so that appropriate changes may be implemented. • Audit the statement of cash receipts,cash disbursements and cash balances of the Town Justice Court in accordance with auditing standards generally accepted in the United States of America.The primary purpose of these audits is the expression of an opinion as to the fair presentation of the financial statements in conformity with the cash basis of accounting. —' Page 10 1 Town of Southold • Audit the transportation assistance programs funded by the New York State Department of Transportation in accordance with auditing standards generally accepted in the United r States of America,the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Part 43 of NYCRR. _ • If required, prepare U.S. Form SF-SAC-"Data Collection Form for Reporting on Audits of States, Local Governments and Non-Profit Organizations." Attend a meeting with the Town Board at a regularly scheduled meeting to review the results of our audit of the financial statements and trends that could impact the Town. • Maintain contact throughout the year to discuss: (a) changes in accounting which could affect the Town and (b) the progress toward fulfilling current needs and future objectives. Deferred Compensation Plan for Employees of the Town of Southold • Audit the financial statements of the Plan in conformity with auditing standards generally accepted in the United States of America, the AICPA Audit and Accounting Guide for Audits of Employee Benefit Plans and the standards for financial audits set forth in Government Auditing Standards,issued by the Comptroller General of the United States. The objective of this audit is the expression of an opinion as to the fair presentation of the financial statements of the Plan in conformity with generally accepted accounting principles. • Issue a letter to management detailing our suggestions for potential improvements to financial systems and internal controls. We will review and explain all observations and —' recommendations so that appropriate changes may be implemented. ! The EFPR Group, CPAs, PLLC provides audit, accounting, and consulting services to over 175 J governmental organizations on an annual basis. Additionally,we serve more than 350 organizations which require an audit performed in accordance with Government Auditing Standards and over 250 clients that require audits performed in accordance with the provisions of Office of Management _-' and Budget (OMB) Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards. The Firm's Governmental Audit Practice Group consists of 40 highly trained professionals who provide audit and related services to governmental organizations on a year round �+ basis. The Firm has not made any staff reductions, reorganizations, or strategic changes in the past year nor are any actions planned. 'i J We have provided consulting services to our clients with regard to implementation of Governmental Accounting Standards Board (GASB) Statement No. 33 - "Accounting and Financial Reporting for Nonexchange Transactions,"and GASB Statement No.34-"Basic Financial Statements _ and Management's Discussion and Analysis." We have worked extensively with our government clients in ensuring that they have complied with the reporting requirements of GASB Statement No. -� 34. Consulting services offered to our clients with regard to implementation of GASB Standards include, but are not limited to,the following: • Implementation of infrastructure reporting • Implementation of fixed asset policies and procedures © Reporting of infrastructure costs and assistance and guidance in preparing the Management Discussion and Analysis (MD&A) — Page 111 Town of Southold f J -I We have also been assisting our clients with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 94, "Public-Private and Public-Public Partnerships and Availability Payment Arrangements."This standard addresses the accounting and financial reporting for these types of partnerships,which are becoming increasingly prevalent within governmental entities. We will evaluate the recognition, measurement, and disclosure of these transactions to ensure compliance with GASB 94. Our audit procedures will include an in-depth examination of any agreements entered into by our client that may fall under the purview of this standard, ensuring that all relevant activities are properly reported in the financial statements.Our J r goal is to provide assurance that the financial records accurately reflect the entity's involvement with these partnerships in accordance with the latest accounting principles. We have also been assisting our clients with the implementation of Governmental Accounting Standards Board (GASB)Statement No.96,"Subscription-Based Information Technology --` Arrangements" (SBITAs). This statement, effective for fiscal years beginning after June 15, 2022, requires-government entities to recognize a right-to-use subscription asset and a corresponding liability. Our audit ensures that we are assessing our client's financial statements' adherence to the new standards and ensuring proper recognition and measurement of SBITAs and that we are providing guidance and insights on the implementation of GASB 96, ensuring that your team is well- informed and prepared. By incorporating GASB 96 into our audit strategy,we aim to provide a high level of assurance that your financial reporting is transparent,accurate,and fully compliant with the latest governmental accounting requirements New York State Department of Transportation-Our Firm currently provides annual financial statement and single audit services to six New York State counties and numerous other municipalities throughout New York State on an annual basis. The scope of services for the Counties includes preparation of the New York State Department of Transportation single audit report to test 1 compliance in accordance with auditing standards generally accepted in the United States of _ America,the standards applicable to financial audits contained in Government Auditing Standards, f issued by the Comptroller General of the United States, and Part 43 of New York State Codification —' of Rules and Regulations (NYCRR). 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. Our Firm has provided various audit services to numerous municipalities and other _. governmental organizations. Please see Appendix B for a partial listing of governmental organizations which are our clients. The following individuals (which are current clients) may be --> contacted to provide references with regard to the quality of our Firm's work: --' Ms. Kim D.Jones Ms. Patricia Robcke Director of Finance Comptroller City of Rochester Town of Cortlandt City Hall- Room 201A 1 Heady Street 30 Church Street Cortlandt Manor, New York 10567 Rochester, New York 14614 (914) 734-1070 (585)428-7151 Pattvr@townofcortlandt.com kim.iones@cityofrochester.gov Ms.Tracy Yogman, CPA Mr.John C.Whitney, P.E. Town Comptroller& Receiver of Taxes Town Supervisor _ Town of Mamaroneck Town of Grand Island 740 West Boston Post Road 2255 Baseline Road Mamaroneck, New York 10543 Grand Island, New York 14072 (914) 381-7851 (716) 773-9600 ext 616 r ttvogman@townofmamaroneckny.org iwhitnev@grand-island.nv.us — Page 121 Town of Southold i -- Mr. Geb Cook Manager Fishers Island Ferry District - P.O. Box 607 Fishers Island, New York 06390 (203)410-8156 Rcook0fiferry.com 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. Our Firm has substantial experience providing audit, accounting and consulting services to various governmental organizations. We are very familiar with generally accepted Government -_r Auditing Standards (GAGAS), issued by the Comptroller General of the United States. We perform approximately 350 GAGAS audits annually. Our team of professionals from our Government Audit - Practice Group is well versed and keeps up-to-date on all standards affecting the government environment. i Our Firm has substantial experience performing audits in accordance with the provisions of - Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. We provide annual audit services for over 250 single audit compliant organizations,including having performed the Single Audit of the State of New York. New York State Counties-Our Firm currently provides annual financial statement and single audit services to six New York State counties and numerous other municipalities throughout New - York State on an annual basis. Our audits of these counties are performed in accordance with j auditing standards generally accepted in the United States of America, the provisions of --' Government Auditing Standards,issued by the Comptroller General of the United States,and Office of Management and Budget(OMB)Uniform Administrative Requirements,Cost Principles and Audit t' Requirements for Federal Awards. As part of these engagements,we issue a report on compliance and internal control over financial reporting. We currently provide financial statement audit,single audit and related services to the following New York State counties: • County of Chemung • County of Orleans - • County of Delaware • County of Saratoga • County of Lewis • County of Washington The scope of services for the Counties includes preparation of the New York State Department of Transportation single audit report to test compliance 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 Part 43 of New York State Codification of Rules and Regulations (NYCRR). New York State Municipalities-Our Firm currently provides annual financial statement and single audit services to numerous municipalities throughout New York State on an annual basis. Our r audits performed in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and, if required, Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. As part of these engagements,we issue a report on compliance and internal control overfinancial reporting. We currently provide financial statement audit,single audit(if required) and related services to the following New York State municipalities: Page 131 Town of Southold r - • City of Beacon • Town of Ithaca • City of Fulton • Town of Jasper • City of Lackawanna • Town of Lumberland - • City of New Rochelle • Town of Mamaroneck • City of Niagara Falls • Town of Mexico • City of Port Richey • Town of Plattsburgh • City of Rochester • Town of Southeast • Town of Alexander • Town of Ulster • Town of Alexandria • Town of Union • Town of Beekman • Village of Cold Spring • Town of Chili • Village of Delhi • Town of Cortlandt • Village of Heuvelton • Town of Elmira • Village of Montebello • Town of Fishkill • Borough of Sayre - • Town of Grand Island • Borough of South Waverly Municipal Justice Courts, Receiver of Taxes and Town Clerks- Our Firm provides audit and agreed-upon procedure services to the following municipal Justice Courts, Receiver of Taxes and Town Clerks: • Town of Cortlandt Justice Court • Town of Southeast Justice Court • Town of Ulster Justice Court • Town of Plattsburgh Justice Court j • Town of Ithaca Justice Court • Town of Mamaroneck Justice Court _- • Town of Beekman Justice Court • Town of Beekman Receiver of Taxes • Town of Fishkill Justice Court • Town of Grand Island Justice Court • Town of Plattsburgh Town Clerk • Town of Plattsburgh Receiver of Taxes • Town of Southeast Receiver of Taxes New York State Urban Development Corporation d/b/a Empire State Development - We perform the annual audit of the general purpose financial statements of the Corporation (a - component unit of the State of New York)in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. The Corporation's goal is to create and retain jobs and to reinvigorate economically distressed areas of the State. The Corporation administers various economic development programs which provides _ tax incentives designed to attract new businesses to New York State and to enable existing businesses to expand and create more jobs. The Corporation has over 150 subsidiaries which are consolidated for financial reporting purposes. Our firm provides audit and related services to various subsidiaries of Empire State Development. Empire State Development has annual revenues in excess of$2.3 billion and assets of more than $26 billion. Fishers Island Ferry District-We perform the annual audit of the financial statements of the -_ District in accordance with auditing standards generally accepted in the United States of America _ and the provisions of Government Auditing Standards, issued by the Comptroller General of the United States. - City of Rochester-We perform the annual audit of the financial statements of the City in accordance with auditing standards generally accepted in the United States of America, the d provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost .� Principles and Audit Requirements for Federal Awards. As part of this engagement we also perform an audit of the compliance requirements applicable to the major state transportation assistance —` program. We also assist with the preparation of the Annual Comprehensive Financial Report which is submitted to the Government Finance Officers Association to obtain a Certificate of Achievement for Excellence in Financial Reporting. Page 141 Town of Southold City of Niagara Falls-We perform the annual audit of the financial statements of the City in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. As part of this engagement we also perform an audit of the compliance requirements applicable to the major state transportation assistance program. Town of Cortlandt-We perform the annual audit of the financial statements of the Town in accordance with auditing standards generally accepted in the United States of America and the provisions of Government Auditing Standards, issued by the Comptroller General of the United States. We also assist with the preparation of the Annual Comprehensive Financial Report which is submitted to the Government Finance Officers Association to obtain a Certificate of Achievement for Excellence in Financial Reporting. Town of Mamaroneck-We perform the annual audit of the financial statements of the Town -" in accordance with auditing standards generally accepted in the United States of America, the provisions of Government Auditing Standards, issued by the Comptroller General of the United j States, and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. As part of this engagement we also audit the statement of cash receipts, cash disbursements and cash balances of the Town Justice Court. T 457 Deferred Compensation Plans-The EFPR Group, CPAs, PLLC performs the annual audit - of the following 457 Deferred Compensation Plans: • County of Nassau • Town of Huntington • County of Chemung • Town of Ithaca • County of Monroe • Town of Union • County of Suffolk 401(a)Terminal Pay Plan • Monroe County Water Authority • City of Rochester S. 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. The EFPR Group, CPAs, PLLC provides audit services to over 175 governmental clients throughout New York State on an annual basis. Our clients range from small organizations with less than$1 million in assets or revenue to Empire State Development with assets of over$26 billion and revenue of $2.3 billion annually. Each audit is planned and staffed to ensure that the audit is completed in compliance with all applicable professional standards. All draft reports and final reports are issued in compliance with regulatory due dates and meeting the expectations of the _ clients Governing Board with contracts with our Firm. A listing of our current governmental clients can be found in Appendix B of our proposal. We have also provided references on pages 2 through -` 3 and 12 through 13 of our proposal. If the Town wishes to contact any additional clients,we would be happy to provide contact information upon request. r- r 'w� Page 151 Town of Southold C -f 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 Standards for Audit of d 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. _ The EFPR Group, CPAs, PLLC is licensed to practice in New York State. Please see Appendix A for evidence of the firm's license to practice and licenses of key individuals to be assigned to the - engagement. - The EFPR Group,CPAs, PLLC is independent of the Town of Southold as defined by generally accepted auditing standards and U.S. Government Accountability Office (GAO)'s Government Auditing Standards. Accordingly, no relationship exists between the EFPR Group, CPAs, PLLC and the Town or any of its employees, Board members or with any person or agency that constitutes a conflict of interest with respect to the Town. Peer Review The EFPR Group, CPAs, PLLC retains an independent accounting firm to conduct a review of its system of quality control every three years in accordance with the rigorous standards of the American Institute of Certified Public Accountants. In May 2023, our Firm successfully completed the most recent peer review of its accounting and auditing practice. The review determined that the Firm complies with the stringent quality control standards set by the American Institute of _ Certified Public Accountants. Our Firm has received the highest rating possible (pass)with no letter of comments being required in each of its last 11 peer reviews. According to the peer review team, -, less than one percent of the firms in the nation achieve this level of excellence. We believe that this attests to our commitment to quality. Peer reviews, which are performed every three years, are required of all CPA firms and are conducted in accordance with rules issued by the American Institute of Certified Public Accountants. (See Appendix C for a copy of the report issued in connection with our most recent peer review.) The peer review included a review of all of the firm's major client categories, including audits conducted in accordance with generally accepted Government Auditing Standards and the -_'s provisions of Office of Management and Budget(OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards). Federal or Desk Audits/Disciplinary Action No federal or state desk review or field review of the EFPR Group, CPAs, PLLC's audits has been completed in the past five years. Additionally, neither the EFPR Group, CPAs, PLLC nor any of our employees has been the subject of any disciplinary action by State regulatory bodies or professional organizations. The firm's peer review opinion in Appendix C attests to the exceptional quality of the EFPR Group, CPAs, PLLC's audit work. n i ADDITIONAL INFORMATION Quality Assurance - CPAmerica,Inc. EFPR Group,CPAs,PLLC is an independently owned and operated member firm is CPAmerica, Inc., one of the largest associations of CPA firms in the United States. Through our affiliation, we have instant access to the expertise and resources of more than 4,000 professionals and more than 700 partners. CPAmerica is a member of Crowe Global, providing our firm access to the eighth largest accounting network in the world, with over 200 independent accounting and advisory firms in 130 countries. By supplementing our services, CPAmerica allows us to: Page 161 Town of Southold -' • Enhance our client services and broaden our capabilities overall • Expand our domestic and international coverage • Gain greater technical knowledge in specialty areas • Utilize professionals with experience in a wide range of industries • Access the most up-to-date technical information • Participate in the latest training programs _. • Utilize state of-the-art, customized computer systems • Provide our clients with key contacts and sophisticated professionals throughout the U.S. CPAmerica brings us the necessary tools to help us better serve our clients with greater flexibility, efficiency and cost effectiveness. i Government Audit Quality Center We are also a member of the American Institute of Certified Public Accountants Government Audit Quality Center (GAQC). The GAQC promotes the importance of quality governmental audits and the value of such audits to purchasers of governmental audit services. As members,we have access to the latest developments in accounting,auditing,and the various rules and regulations that affect governmental audits. We also receive periodic updates on current issues through news alerts and Webcasts. We are proud of the quality of our work and in order to ensure that this high level of quality is maintained, we have established a comprehensive quality assurance program. The program starts with hiring the best people available and continues with extensive continuing education, an annual minimum of 40 hours per staff member. Our involvement in the GAQC is optional,but indicates a level of commitment above non-member Certified Public Accounting firms. Our participation requires that our firm and personnel attain additional continuing professional education on an annual basis. Indemnification The EFPR Group, CPAs, PLLC will indemnify and save harmless the Town of Southold from and against all losses 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 Firm,subcontractor, his agent or employees in the performance of the contract. Other Significant Information • Experience-Since the EFPR Group,CPAs,PLLC"specializes"in providing audit and related services to governmental organizations, our field staff is experienced in providing such services. • Technology-All of our field staff are equipped with laptop computers and have access __J to various software packages and databases (e.g. data extraction software, flowchart software, Microsoft Office, etc.) and other electronic means to ensure that the audit is performed in the most efficient manner. L • Continuing Education - With regard to continuing professional education, each of our i staff members is required to complete an annual minimum of 40 hours of continuing education programs approved by the American Institute of Certified Public Accountants. Additionally, since we perform audits in accordance with Government Auditing Standards (over 350 each year), our staff members must complete at least 24 of the 80 hours(over a two-year period)of continuing education in subjects directly related to the government environment and government auditing. � r Page 171 Town of Southold Affirmative Action -The EFPR Group, CPAs, PLLC is an equal opportunity employer and as such possesses a firm commitment to affirmative action and to hiring only the best- qualified candidates regardless of gender or ethnic origin. Our Firm does not discriminate against any employee or applicant for employment because of race, creed, color, national origin,sex, age, disability or marital status. y We would consider it a distinct privilege to provide professional services as outlined in this letter or any additional services you may desire. Please contact us if there are any questions regarding this letter. A copy of this letter is enclosed; if the terms of this proposal are satisfactory to you please sign the copy and return it to me at your convenience. --- ACCEPTED: i, EFPR GROUP, CPAs, PLLC TOWN OF SOUTHOLD By: o E.Zimmerman, CPA ner Date:November 20, 2024 Date: I' i, Page 181 Town of Southold JY it 1 I i Appendix A Detailed Resumes of Key Members of the - Firm's Government Audit Practice Group r r 0 I J --------------- License Number 41SKEY D. P iMEL PAUL E fln"Ft3. UP R", s RANKJR &Oil `idN�8111112_ ,- I". 0 E"'. JIMAPASCO JAMES IMMANUEL DREW -:EN.MACDONALD . ... ... ... .. 1, RCQ)BER JAMES gog -g-,"v DOODY MICHAECROBERT 'COSTILWJHN. O OS -It P 4W f %iffil XMR o V__�a4A NA livEll M KLEEHAMMER VitTTORIA LYNN-,,,. W JENSEN�BRENT M ,wg g� • PIPER JASON MATTHEW IBM HAEL NYS ED 0 —see so — 0 3 GROUP Certified .ubIicAccountants - Douglas E..Zimmerman, CPA Partner Doug.has.over 38.years of public accounting experience. He currently functions. as: a. Partner of. the -EFPR Group, CPAs, PLLC and has responsibility for.providing- audit, accounting and consulting services for numerous municipalities and governmental organizations. Doug received a Bachelor.of Science degree in Accounting from State I' University of New. York College at Geneseo. He is licensed in New York; Florida.and.Massachusetts as.a Certified,Public Accountant. - PRACTICE AREAS ' Doug "serves as the partner or engagement review partner for Governmental Accounting numerous municipality clients listed in Appendix.B of our proposal, Higher Education including Saratoga,County, Delaware County, Lewis County, City of Nonprofit Rochester, City of Niagara Falls, Town- of Grand Island, Town of Mamaroneck,-town.of.Fishkill, and.Village.of Cayuga Heights. EDUCATION SUN__Y Geneseo-B.S.;Accounting Professional Affiliations. American Institute of Certified Public Accountants (AICPA) CONTACT, New.York State Society of Certified Public Accountants (NYSSCPA) PHONE (716) 204-5704 CELL(716) 445-4018 FAx (716) 634 0764 E-MAIL dzimmerman@efprgroup.com i + 1 EFPR GRouP,CPAs;PLLC Certified-Public Accountants I Business Consultants J ZIMMERMAN DOUGLAS EDWARD LICENSEE INFO i-04 r M Ne M IR a,I,N kf "HIR" m,-�,— r. • i"- -- , , z MR, flil.i 5 8. 'a- H M-00 PRO 10. St I fit" '5, �,-A n nw—cl �4-.ME lk 'JAI" 014 ILI'wmsml 1 - zw� P R ENT1,0114 Ygggg;m It >al00% & I�� am "V�116, 'I'M ", , ,- -�- 0,g lu E D r '15 f�j MRS PF- gL Hl. November 19,2024 0 :19 AM (ET) hftps://eservices.nysed.gov/professionsivedficafion-search?licenseNumber--060798&professionCode=007 I, FPR � GROUP Certified Public Accountants John:S. COSVIOW, 'CPA Partner . John has over 17 years.of public.accounting experience. He currently C functions.as„a Partner of.the Firm and'has responsibility for providing audit, accounting and consulting services for numerous municipalities and other governmental organizations. John received..a Bachelor of Science degree.in Accounting from State University of New York College.at.Buffalo. . He is licensed in New York. State as.a.Certified Public.Accountant.. 1 PRACTICE AREAS John has experience providing 'audit services to numerous New York Governmental Accounting State municipalities, including Saratoga-County, .City of Niagara Falls, Higher Education City of:Lackaw.anna,Town.of Grand Island, Town of Fishkill, and Town- of Southeast. . . .. EDucaTlolV SUNY Buffalo—B.S., Accounting N Professional Affiliations . -'.American.Institute of Certified Public Accountants.(AICPA) CONTACT - New York.State.Society.of.Certified,Public Accountants.(NYSSCPA) . PHONE (716) 204-5719 FAx (716) 634-0764 E-MAIL icostilow@efprgroup.com ti I . EFPR GROUP,CPAs,PLLC Certified Public.Accountants I Business Consultants COSTILOW JOHN S LICENSEE INFO Now ............ -1 M U�r WE.......... fum kwp 01 U ,gg g • ip IN -awl ,wl 5--RCH liq—TW®R, ig ON�P1 If vorwi, ram. ice, aya` OUR our, 4el H-1 K—R— 11 �TJr.............. November 19,2024 09:19 AM(ET) hftps://eservices.nysed.gov/professions/Verificafion-search?licenseNumber--098396&professionCode=007 Certified P.ublicAccountants Thomas E:..Smith, CPA Partner Tom has over 12 years of public accounting experience. He currently. functions as.,a Partner.of.the,Firm and has responsibility for.providing audit, accounting and consulting services for numerous municipalities and other governmental organizations. Tom received,a Bachelor of Science degree in Accounting.and a Master of Science degree.in Accounting from State University of New York. - - College. at Buffalo.... He is licensed..in New York and Florida as a . ' Certified Public Accountant. PRACTICE AREAS Governmental Accounting Tom has experience providing audit services to numerous New. York Higher Education i+ State municipalities, including Washington County,.Delaware County; Lewis ..County, City . of Port .:Richey, Town of Union, Town .of EDucA'r N Mamaroneck, Town.of.Ithaca, Town of Beekman, Town of Plattsburgh, . SUNY.Buffalo-B.S., Accounting y Town of Alexandria,,and Village of Cayuga Heights... SUNY Buffalo= M.S., Accounting - Professional Affiliations. CONTACT ... . ... . . American Institute of Certified Public Accountants (AICPA) PHONE (716) 204-5774 . Government Finance Officers Association (GFOA). FAx (716) 634-0764 . E-MAIL tsmith@efprgroup.com r EFPR GROUP,CPAs,PLLC Certified Public Accountants i Business Consultants �- FPRs-ROUR Certified P.ublicAccountants Brent-M. Jensen,,.'CPA Partner Brent. has.over 17.years of public.accounting experience. He currently functions as,.a Partner of,the Firm and has responsibility for providing audit, accounting and consulting services for numerous municipalities and other governmental organizations. v Brent received a Bachelor.of Science degree in Accounting.from State University of New York College at Buffalo. . He is licensed .in.New York State as a.Certified Public.Accountant..: PRACTICE AREAS Brent has experience providing:audit services to numerous New York Governmental Accounting State Public municipalities, including City of:Rochester, City'of,Fulton, Higher Education 1 Town of Cortlandt,Town of Chili, and Village.of Newark. EDUCATION Professional Affiliations SUNY Buffalo.—B.S., Accounting American Institute.of Certified P.ublic'Accountants (AICPA) . Government.Finance.OfficerSAssociation (GF.OA) CONTACT PHONE (716) 204-5749 FAx:(716) 634-0764 . E-MAIL bienseriffiDefiargroup.com r EFPR R OUP,CPAs,PLLC ;t Certified Public Accountants I Business Consultants v. Pg • P GROU Certified Public Accountants David Grek, CPA. Director Dave.has over 26 ears of public.accountin, He,currently . `r- ', functions as.a Director of-the. Firm.and has responsibility for providing . �. audit, accounting and consulting services for numerous municipalities and governmental organizations. Dave received a .Bachelor of:Science degree in.. Accounting from Canisius. . He is .licensed in .New. York State. as a Certified Public -� Accountant.... \\ r PRACTICE AREAS Professional Affiliations.. Governmental Accounting American Institute of Certified Public Accountants (AICPA) Higher Education New York State Society of.Certified Public Accountants (NYSSCPA) Nonprofit_ EDUCATION Canisius College—B.S. cc A ounting CONTACT PHONE (716) 204-5736 . FAx (716,) 634-0764 E-MAIL _ _ dgrek@efprgroup.com i �I EFPR GROUP,CPAs,PLLC Certified Public.Accountants I .Business Consultants '. FP.RoRQUR �.. Certified Public Accountants I. . .-Brian-M Sawma, CPA Director Brian. has. over..nine..years .of..public accounting experience. He currently functions as.a Director.of the Firm and has.responsibility for providing audit, accounting .and consulting services for numerous f municipalities and other governmental organizations. { Brian .received a .,Bachelor of Business Administration degree in �1 Accounting and 'a. .Masters of Business Administration 'degree in Accounting from Niagara. University.. Brian. is, licensed in.New York , State as a Certified Public Accountant. PRACTICE AREAS Governmental Accounting Brian has experience providing audit services to numerous New York Higher Education State Public municipalities, including .Chemung County, Washington Nonprofit - County;.Town of Fishkill,Town of Mexico,Village of Montour Falls, and. Village of Delhi. 'EDUCATION' er -Niagara Univ sity. B B.A:,. - Community Affiliations Accounting ". . .716.Promoting Animal.Welfare and, Safety, Inc., Board.Treasure.r Niagara University- M.B.A., Accounting CONTACT J.. . - PHONE (716) 204, 5733 ". . . FAx (716).634-0764 E-MAIL { bsawma�efpr roup:com EFPR GROUP,CPAs,PLLC Certified Public Accountants .Business Consultants SAWMA ERIAN DEAN LICENSEE INFO - J_ i. I - - i , z, .._.._.._.,.,.._..., .:._,..._^ .... � _. _ ,.... �.. :I. }„-..:t.... , ..-.,.:�:emu..:,...,-.,....._.. _ t.f:.,...♦,j Y..- _ 14 ..r i - s _ n\_ p- ,•:1"- :iR�> iiya:;:',:'£ �..T:��':-`'Fc_£f"4Ya:l:: S - s Lt�e _ F f :. x - =:ti-x .. . .... .........._.:._ ....._... _....... .:__,.,a] _a:.,>....._...:... ..,.—+..::,..,,,_t ...�•}�:",';�i°:;^.`ram=:;':"' _ _ _ ... .. ..:-n...i .. . 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Gabel, CPA - I . Director Dave,has over 35 years of public accounting experience. He currently .'.functions,as,a Director of the Firm and has responsibility for providing audit, accounting and consulting services for numerous municipalities and other governmental organizations. Dave received.a, Bachelor of'Science degree in Accounting.from State ` University.of New York College at Fredonia. He was licensed in New York State as a Certified Public Accountant. PRACTICE AREAS Dave. has experience providing audit services to numerous New York Governmental Accounting State'Public municipalities,including Village of Delhi: Higher Education Construction and'Real Estate Professional Affiliations American lnstitute.of Certified Public Accountants (AICPA) EDUCATION . New York State Society of'Certified Public Accountants (NYSSCPA) SUNY.F.redonia .. B.S.,Accounting Affordable .Housing. Association of. Certified Public Accountants (AHACPA) CONTACT PHONE (716) 204-5706 — FAx (716) 634-0764 E-MAIL dgabel@efprgroup.com — EFPR GROUP,CPAs,PLLC ..Certified Public.Accountants Business Consultants R: upP Certified Public Accountants Jeffrey N. Jones, CPA' MSA -.I Director Jeff has over nine_years of public accounting experience. He currently 1 functions.as.a hire_ctor of the_ Firm and has responsibility for providing audit, accounting and consulting services for numerous municipalities =: and other governmental organizations. j Jeff received a Bachelor of Science and.a Master of Science degree in , Accountancy from Daemen College. Jeff is.licensed in New York State I, . as a Certified:Public Accountant. 1 PRACTICE AREAS. Jeff has experience providing audit services to numerous New York Governmental Accounting _ State municipalities, including Lewis County, City of Rochester, Town Higher Education of.Cortlandt,Town-of Lumberland, Town of Ithaca, Town.of Southeast, and Village of Montebello: EDUCATION Daemen College—B.S.,. Accountancy• Daemen College- M.S.A., Accountancy. - CONTACT PHONE (716).204-5775 fAx.(716) 634-0764 E-MAIL. iiones@efprRroup.com i -I i EFPR GROUP,CPAs,PLLC Certified Public.Accountants I .Business Consultants t_ FPRG`R0UR .. Certified Public Accountants Michael .Prentice Manager. Mike has over six years of public.accounting experience. He currently functions as .a Manager.of.the Firm and has responsibility for providing audit, accounting and consulting services for numerous municipalitiesk` and other governmental organizations. Mike received a Bachelor of.Science degree in .Accounting and .a Bachelor of Science.degree in .Finance from State University of New r. York Co.11ege.at Fredonia.., PRACTICE AREAS Mike h as experience providing audit services to numerous New York Governmental Accounting State municipalities, including Del aware.County;City-of Rochester, City Higher Education -of. Port Richey, City of Lackawanna, City of Niagara Falls; Town of — Fishkill, .Town of Union, Town of Mamaroneck, Town of Grand Island;- EDUCATION and Town of North Elba. SUNY.Fredonia-.B.S., Accounting SUNY Fredonia - B.S., Finance CONTACT" PHONE (716) 204-5728 FAx (716) 634-0764 . . E-MAIL mprentice@efugroup.com- i EFPR GROUP,CPAs,PLLC Certified Public Accountants I Business Consultants �FPRGRO UR" ..: Certified Public Accountants . Aaron Woodward,. CPA, MACC Supervisor 2 .. .Aaron has over.-.five years .of public accounting experience. He. currently functions as a•Supervisor in the Firm and has responsibility for.providing audit; accounting and consulting services for numerous municipalities and other governmental organisations. Aaron..received a -Bachelor 'of.Science degree in Accounting and a J Master of Science degree in Accounting-from State University of New York College.:at Brockport. Aaron is.licensed.in New.York State as a Certified Public Accountant: PRACTICE AREAS- Governmental Accounting Aaron has experience providing audit services to. numerous'New York Higher Education 'State Public municipalities,.including Town of Cortlandt. EDUCATION SUNY Brockport- B.S.;Accounting SUNY Brockport.- M.S.; ` Accounting CONTACT PHONE (716) 204-5720• FAx (716) 634-0764 . . E-MAIL awoodward@efprgroup.com EFPR GRouP,CPAs,PLLC Certified Public.Accountants l Business Consultants I FPR GROUP Certified Public Accountants Jason Cukierski Supervisor. . Jason ..has. over .three. years of, public accounting experience. He currently functions as a.Supervisor.in.the Firm and has responsibility for providing audit, accounting-and consulting services for numerous ` municipalities and other governmental organizations. Jason ...received .a Bachelor, of Science degree in Business Administration with concentrations in Finance and.. Management Information.Systems.and.a Juris Doctor degree.with concentrations in Finance and Development'and Intellectual Property and Privacy..Law PRACTICE AREAS. - from.University at Buffalo. Governmental Accounting -- Higher Education Jason- has experience-providing.auditservices to numerous New York State.Public municipalities, including Delaware County, Lewis County, EDUCATION Town. of.Ithaca; Town.of Lumberland, Town of Plattsburgh, Village of. . University At Buffalo=B.S. Cayuga.Heights... Business Administration t University a Buffalo-J.D.. CONTACT PHONE (716) 204-5769 Fax (7'16) 634-0764 E-MAIL icukierski@efpr>;roup.com EFPR GROUP,CPAs;.PLLC I Certified Public.AccoUntants .Business Consu tants YEFPRGROUR .. Certified Public Accountants Justin Pepe r Supervisor Justin has over three years of..public accounting experience. He •. currently functions as.a Supervisor for the Firm and has responsibility for providing audit, accounting and consulting services for numerous municipalities and other governmental organizations. Justin..received a .Bachelor of. Science degree in Finance from the J. University.at Buffalo and a Master of Business Administration degree. in ProfessionalAccounting from Canisius College. PRACTICE AREAS -- Justin has experience providing audit and related services to many Governmental Accounting municipalities;.including County of Washington, Town of Grand Island, Higher Education Town of South.east,:and Town of Beekman. EDUCATION University at Buffalo- B.S., Finance Canisius College- M.B.A., Professional Accounting CONTACT PHONE (716) 204-5758 FAx(716) 634-0764 - E-MAIL. ipepe@efprgroup.com EFPR GROUP,CPAs,PLLC Certified Public.Accountants I Business Consultants OUR FPR6- R. Certified Public Accountants Eric Schafer, MBA Senior Accountant Eric has.over awo.years of public.accounting experience. He currently . . functions.as Senior.Accountant of-the Firm and has.responsibility for providing audit, .accounting and consulting services, for numerous ?� public benefit corporations and other governmental organizations. r Eric received.,a Bachelor..of Science .degree In Accounting and a -Masters ,of..Business Administration' degree _from St. Bonaventure. (� - .University . . ". PRACTICE AREAS Eric has experience providing audit services to numerous New York Governmental Accounting' State Public, municipalities, including .County of"Lewis, County of Higher Education Delaware,Town of Alexander, and Town of Fishkill. . Nonprofit. EDUCATION St.,Bonaventure.University—B.S., Accounting St. Bonaventure University'- M.B.A., Accounting " CONTACT _. o " PHONE (716) 204-573 FAx (716).634-076 4. E-MAIL . eschafer@efprgroup.com - " EFPR GROUP,CPAs,PLLC Certified Public Accountants .Business Consultants v GROUPS . Certified Public Accountants Shelina Overstreet Senior Accountant Shelina..has over four years of public accounting experience. She -- currently functions as a. Senior Accountant of the Firm and has res onsibilit for providing- audit, accounting and consulting services for numerous municipalities and other.governmental organizations. Shelina received a: Bachelor of. Science degree in Accounting from - State University of .New. York College at .Fredonia and a Master of Business. .Ad min istration..degree, in .Accounting from. Southeastern Oklahoma State.University: PRACTICE AREAS Governmental Accounting __- Shelina has experience providing audit services to numerous New York Nonprofit State-Public municipalities, including City of Rochester.and Town of Lumberland..: EDUCATION SUNY Fredonia . B.S.;Accounting Southeastern Oklahoma State University—M.B.A.,.Accounting CONTACT PHONE (716) 204-5763 FAx (716) 634=0764 E-MAIL soverstreet@efprigrou p.com r EFPR GROUP,CPAs,PLLC Certified Public.Accounta s Business Consultants i Appendix B _ Partial Government Client List PARTIAL LISTING OF GOVERNMENTAL ORGANIZATIONS WHICH ARE OUR CLIENTS Amagansett Union Free School District * Amsterdam Housing Authority * Binghamton City School District Binghamton-Johnson City Joint Sewage Board * Brentwood Union Free School District * Buffalo Municipal Housing Authority Cayuga County Health Insurance Consortium Chelsea Fire District Chemung County Property Development Corporation Chemung Tobacco Asset Securitization Corporation * City of Beacon * City of Kingston City of Lackawanna - * City of New Rochelle * City of Niagara Falls * City of Oneonta Housing Authority City of Port Richey - * City of Rochester * City School District of Albany * City School District of Mount Vernon * City School District of New Rochelle City University of New York(CUNY) * Cohoes Housing Authority Copiague Union Free School District * Cornwall Central School District * Cortland Housing Authority * County of Chemung * County of Delaware * County of Lewis * County of Orleans * County of Saratoga * County of Washington Deferred Compensation Plan for the Employees of Chemung County Deferred Compensation Plan for the Employees of Delaware County Deferred Compensation Plan for the Employees of Monroe County Deferred Compensation Plan for the Employees of Monroe County Water Authority - Deferred Compensation Plan for the Employees of the Town of Huntington Deferred Compensation Plan for the Employees of the Town of Ithaca * Audit conducted in compliance with the provisions of Office of Management and Budget(OMB)Uniform Administrative Requirements,Cost Principles and Audit Requirements for Federal Awards. PARTIAL LISTING OF GOVERNMENTAL ORGANIZATIONS WHICH ARE OUR CLIENTS Deferred Compensation Plan for the Employees of the Town of Union i Dunkirk Industrial Development Agency Dunkirk Local Development Corporation Dutchess County Department of Public Works Dutchess County Soil and Water Conservation District * East Islip Union Free School District * East Quogue Union Free School District * East Ramapo Centra School District * Elmsford Union Free School District * Empire State Development Corporation * Enlarged City School District of Troy Fire District No. 1-Town of Elmira Fire District No. 3 of the Town of Plattsburgh Fishers Island Ferry District Fishers Island Union Free School District * Franklin County Regional Housing and Redevelopment Authority Genesee Tobacco Asset Securitization Corporation - * Geneva Housing Authority Greene County Economic Development Corporation Greenwood Lake Joint Fire District HealthSource RI Trust * Harlem Community Development Corporation Harrietstown Housing Authority * Hempstead Union Free School District Henrietta Fire District * Herkimer Housing Authority * Hudson River Park Trust * Ilion Housing Authority Islip Resource Recovery Agency * Ithaca Housing Authority Lake Champlain-Lake George Regional Planning Board Land Reutilization Corporation of the Capital Region LeRoy Fire District Long Beach Housing Authority * Lower Manhattan Development Corporation - Lucas Metropolitan Housing Authority - Merrick Union Free School District Monroe County Department of Transportation * Audit conducted in compliance with the provisions of Office of Management and Budget(OMB) Uniform '_ Administrative Requirements,Cost Principles and Audit Requirements for Federal Awards. i PARTIAL LISTING OF GOVERNMENTAL _. ORGANIZATIONS WHICH ARE OUR CLIENTS Monroe County Water Authority Morrisonville Fire District * Nashua Housing and Redevelopment Authority Nassau County Deferred Compensation Plan New York City Administration for Children's Services New York City Department of Corrections New York City Department of Social Services New York City Department for the Aging New York City Department of Citywide Administrative Services New York City Department of Health and Mental Hygiene New York City Department of Homeless Services New York City Department of Probation New York City Human Resources Administration New York City Tax Lien Trusts (four trusts) * New York Convention Center Development Corporation New York Convention Center Operating Corporation (Javits Convention Center) * New York Empowerment Zone Corporation * New York Job Development Authority New York State Assembly New York State Affordable Housing Corporation New York State Bridge Authority - New York State Dairy Promotion Order * New York State Department of Taxation and Finance New York State Department of Transportation l New York State Division of the Budget New York State Executive Chamber New York State Homeless Housing Assistance Corporation New York State Legislative Bill Drafting Commission New York State Office for People With Developmental Disabilities New York State Office of the State Comptroller - New York State Office of General Services -- New York State Olympic Regional Development Authority New York State Senate New York State Unified Court System * New York State Urban Development Corporation * Newark Housing Authority * Newburgh Enlarged City School District N.F.C. Development Corporation * Audit conducted in compliance with the provisions of Office of Management and Budget(OMB)Uniform Administrative Requirements,Cost Principles and Audit Requirements for Federal Awards. PARTIAL LISTING OF GOVERNMENTAL ORGANIZATIONS WHICH ARE OUR CLIENTS Niagara Falls Urban Renewal Agency Niagara-Orleans Regional Land Improvement Corporation * Nyack Union Free School District * Ogdensburg Bridge and Port Authority — * Orleans County Industrial Development Agency Palisades Interstate Park Commission New Jersey Section and New York Section * Palmyra-Macedon Central School District * Pawling Central School District - Pine Hill Fire District No.5 * Port Jefferson Union Free School District Poughkeepsie Public Library district Quassaick Bridge Fire District Remsenburg-Speonk Union Free School District * Rhinebeck Central School District * Rochester Housing Authority * Rockville Centre Union Free School District * Roosevelt Island Operating Corporation - * Roosevelt Union Free School District * St.Johnsville Housing Authority * Sachem Central School District * Schuylerville Central School District * Shenendehowa Central School District Southern Cayuga Lake Intermunicipal Water Commission * Springs Union Free School District Steuben County Economic Development Corporation Steuben County Industrial Development Agency * Suffern Central School District Suffolk County 401(a)Terminal Pay Plan Suffolk County Department of Public Works * Syracuse Housing Authority *Three Village Central School District - . Tioga County Local Development Corporation * Town of Alexander Town of Alexandria Town of Beekman Town of Chili -- Town of Corning * Town of Cortlandt * Audit conducted in compliance with the provisions of Office of Management and Budget(OMB) Uniform - Administrative Requirements,Cost Principles and Audit Requirements for Federal Awards. J PARTIAL LISTING OF GOVERNMENTAL ORGANIZATIONS WHICH ARE OUR CLIENTS Town of Elmira Town of Erwin Town of Fishkill *Town of Grand Island Town of Hempstead Sanitary District Number Two Town of Hempstead Sanitary District Number Seven *Town of Huntington Housing Authority Town of Ithaca * Town of Jasper Town of Lumberland Town of Mamaroneck Town of Mexico Town of Plattsburgh *Town of Southeast Town of Ulster Town of Union Trust for Cultural Resources of the City of New York * Ulster County Community College University at Albany Athletics Department * Utica Municipal Housing Authority Valley Joint Sewer Authority Village of Cold Spring *Village of Delhi Village of Heuvelton Village of Island Park - Village of Massena Village of Montebello Washington Tobacco Asset Securitization Corporation Waterfront Commission of New York Harbor *Watertown Housing Authority Wayne County Civic Facility Development Corporation - Wayne County Industrial Development Agency * Westbury Union Free School District * William Floyd Union Free School District Williamsville Central School District - * Winooski Housing Authority * Audit conducted in compliance with the provisions of Office of Management and Budget(OMB) Uniform - Administrative Requirements,Cost Principles and Audit Requirements for Federal Awards. Appendix C Peer Review Letter a TaY ` udit & At testationa • Planning I_'ssa Q.'L�I:t9e.ha1''E1;. ORK ".•7h•s�p E..'Petr%IIa, C-RA :Qt:f•ne'y'.P: '4haoui'au; CPA Ni SA S:ta.+'e'y A:'SaAclars; C'?.. .;. C•S-EP yDE. .-LUZ-1. I C•o:l F;.• aeisa•e,r, .PA • D:ani,el. 4iF,. �i1Gt.Iki,ns.,• CPA REPQR'F 4?N Tl FIRtVL'�-S OF..MLALITY CONTROL °£o tlie,Partneis.-pfEEPR Group•LLP arid:he National.Peei,It,@Y.IoW?committee VU'e hiavereviei d ttie:sy n>a 'cjuality°c nTrol for the aeco"Oting::and'auditing.practice of WPLi: roug'LI;P -! :..• tiie Arm :�effecfi for: 6'.jear'�nded Nnveinber zla;20�2;•Qur:pder'review wvas°:conducted.h(accoa�ddnee W. #Iie S as s far•Peri'tarmW :and Reportin .:otlftr:Rgevier�s e's blislisd ttae:l?eer Review Board cif ••the.American.Institute:;of.Certified Public Ace0p4taA4_.(Standsrd$;: . A'swnmar,I*ai`tiae:nal re;ob}eetives;,scope;'} itations:cifi.�uiit.titegr cedures.gerfc'rined'in•aSystemreview as.iid§c hied"uY e'S#audatd's MAY.- dna:'org�prsummahr Tlie summary ti}s�►inc}udes.:an eYpiWatic�zi.'of'Iow. ngap i�aetits: ide�it eit' s:not pet orm�l•'or•ieparted iq co if�or:mit --,with.applieabie ' pi sional'stapi3a d ,:if: �:, evttluatecl u reviewer tC1 datemr,ue•a eer teuiew ratirlQ. any '' p .. • ..•Fires R�s�onsibtity. .. . • • ' . _ . . . . • .. ... .. .• .. .. •:..•••. reslion'.b. for:diew` is :.-:system-of quality°control'and'cdinplying w th.it to pride the firm. with reas�nabte assurance aflierforcrdn :aild reporting in:eonforiritty v ;tit'apiiicd6le:professional standards in=ull-mdaiai.r±effects-Defirm.;is:also,remooOtefpr`evaluat ni'actionst(yproMptty reinediate.eria.�gements deemed os riot,perfer .teit .Qr.ceportect 'h� •cattfortxt'ity.vW#i-the 'requirements•Q .applicA1q-prQfessiona} standards;'t lien appzczpriate;and fox:remediatrta .�►+eal esses'iu:ils system pf gWit e+on#ral;if any. PQ af-Vres 4rnewe r"s R' &too•flesx Til r peisfis� . tted of the.system afq ua .-:co-ntra aAd tl)e'fine azo cos onsl complaaceetewitth tig9ed•wour review. Vie,quu�d:SeIecfions and. .onsiderauibns Eu ein IIIIIs seleetett far:review ttel ded a a naen perfaimed uiitier Govept7r ent Apdiririg,Srandards; ariGAliliri�coin,f�aix¢e audite under:the S'in edit,A anrt autCil :c�f ei .lo ee lienet• laris. A; a'part:of cur :eer review we•e, ,siders«d•reuiews'l3 reUulato entities.as c�ztnunicateil la •the finny if p y .. . ry Y - app�iilr�i}rie;•m:detemiui�n the uatar�andextent:a :our.. rncedures. .. lh:iiuir rpmionx..ttlo. Ys em ofquality ontrQl for the.accouhti gaud ohditing Of oficerxf-1 PPR GrauP-LLP' in effect for tYie'. t'ended i iQveintier'3;Q;102.2 ias:-ban:suitbly desi;ned aud-+cotriplied-with tio-prou t}elhe farm: ritli reasc�nabfe.:assurance .of perfottmit�g aid-repprting..in canfoxmity:vuith. app}icahk-prQfessibi al r , . : sta€a lards to all:materlul iespects. 1*irms.can receive a r�attn�:of czssx pass ti�Tt�r�de• ienc (res)or fail. E R WM_ b . P y Cxoi p'LLPhas receivedApee�rreAgw rating of past.. leg Del' Cm' any LQ t? tl t xx f.4)P a5l RarKq -Avenue Suite t1-Greensburg PA.15601 1/ P 7 724i838-8322 f-724agMar 6500 •,. <� �° 45 aauth 23rd kreee Suite' 102 P•i•ttshur. h,1)A 15263 f! p-412 4el-'1900 // f-4i2-481-192c Appendix D Required Forms _r Noi! Collusive Proposal Certification The.undersigi1ed proposer.affirms as true,under the penalties of penury, as follows: . .(I). The..prices and.practices in.his/leer proposal.have been arrived at independently without collusion, consultation, communication, or agreement for the purpose of restricting competition, as to any matter rclating to such prices with any other proposer or'with any competitor; (2) Unless.otherwise required-by late, 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 grade 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,.ennployee or.stockholder holding in excess of''tivo :(. �/a):percent. ince st the corporation, .is an officer or employee of the town of Southold;_or paid with The Town finds, or required to disclose an interest pursuant to the Town . of Southold Code of Ethics. PRlNT'NAME. Douglas E.Zimmerman. CPA - (SIGNED). ''�� i CORPORATE TITLE (iF it PPLICA13LE Partner - Corporate Seal i 7 Professional Auditing and Accounting Services For The Town of Southold; Suffolk County, New. York Request for Proposal . PROPOSAL SUBMITTED.BY Af igna of Prop-Deer) Douglas E.Zimmerman, CPA,.Partner {Printed Na=and Title of Proposer} 'EFPR Group, CPAs, PLLC November 20, 2024 (Company or.Corporatidn) Date 6390 Main Street,Suite 200,Williamsville, New York 14221 Address,Town,.State,Zip Phone:(716) 634-0700/Fax: (716) 634-0764/Email: dzmmmerman@ef rg Prou .com p Telephones FAX;Paler#e-s�aaal.address r_oRi:oRATL SEAL 26. COPY TOWN OF SOUTHOLD PROPOSAL FOR PROFESSIONAL AUDITING AND ACCOUNTING SERVICES DOLLAR COST BID a. Name of firm: Nawrocki Smith LLP Certified Public Accountants b. Certification: I hereby certify that I am a partner in the public accounting firm of Nawrocki Smith LLP and accordingly, I am entitled to represent the firm, empowered to submit the bid (stated below), and authorized to sign a contract with the Town of Southold. 40"& .5�1V December 2, 2024 David M. Tellier Date c. Total all-inclusive maximum price (includes Town audit, Justice Court audit, Federal and State Single Audits and Deferred Compensation Plan audit): 2024 $103,000 2025 $105,000 2026 $107,500 NjawrockiSmith- SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Nawrocki Smith LLP— Fiscal Year-December 2024 Level of Hourly Projected Total Proposed Staff Rate Hours Cost Incurred Audit of the consolidated financial Partner $300 50 $15,000 statements Manager 225 125 28,125 Supervisor 175 105 18,375 Senior 150 110 16,500 Staff 125 170 21,250 560 $99,250 $70,000 Level of Hourly Projected Total Proposed Staff Rate Hours Cost Incurred Audit of the Town's Justice Court Partner $300 5 1,500 Manager 225 10 2,250 Senior 150 20 3,000 Staff 125 20 2,500 55 9,250 $7,000 Level of Hourly Projected Total Proposed Staff Rate Hours Cost Incurred Audit of the Town's Deferred Compensation Partner $300 10 $3,000 Plan Manager 1 225 40 1 9,000 Staff 1 125 40 1 5,000 90 $17,000 1 $13,000 Level of Hourly Projected Total Proposed Staff Rate Hours Cost Incurred Single audit performed in accordance with the Uniform Guidance and applicable state award programs Partner $300 10 $3,000 Manager 225 25 5,625 Senior 150 30 4,500 Staff 125 30 3,750 95 $16,875 $13,000 Total all inclusive maximum price of audit $103,000 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: Proposers Company Name Nawrocki Smith LLP Fiscal Year December 2024 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates 75 $300 $300 $22,500 Partners Managers 200 $225 $225 $45,000 105 $175 $175 $18,375 Supervisory Staff 160 $150 $150 $24,000 Senior 260 $125 $125 $32,500 Other(specify Total all-inclusive maximum price for audit: Proposed Cost $ 103,000 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 COPY TOWN OF SOUTHOLD PROPOSAL FOR PROFESSIONAL AUDITING AND ACCOUNTING SERVICES DECEMBER 2024 Firm's Name: Nawrocki Smith LLP Certified Public Accountants Address: 100 Motor Parkway, Ste 580 Hauppauge, NY 11788 Telephone No.: 631.756.9500 NawrockiSmith Contact Person: David M. Tellier, Partner dmt@ns.cpa Proposal Date: December 2, 2024 TOWN OF SOUTHOLD TABLE OF CONTENTS PROPOSAL FOR PROFESSIONAL AUDITING AND ACCOUNTING SERVICES DECEMBER 2024 Page(s) Letter of Transmittal of Technical Proposal for Professional Auditing Services to 1 the Town of Southold Detailed Technical Proposal for Professional Auditing Services to the Town of 6 Southold Ernest Patrick Smith David M.Tellier Lauren M.Agunzo Christopher Angotta John K. Hoffman John M. Spatola Michael E. Nawrocki Dimitris Bantileskas Darin V. lacobelli NawrockiSmith CERTIFIED PUBLIC ACCOUNTANTS CPY BUSINESS CONSULTANTS December 2, 2024 Ms. Michelle Nickonovitz, CPA Town Comptroller Town of Southold 54375 Main Road Southold, New York 11971 Re: Letter of Transmittal of Technical Proposal for Professional Auditing and Accounting Services to the Town of Southold Dear Ms. Nickonovitz: Executive Summary Thank you for the opportunity to submit our proposal to provide professional auditing services to the Town of Southold (the "Town"). Our enthusiasm for an association with the Town is matched only by our.confidence that we can render the Town 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 Board of Commissioners 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. 5. 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 local government and school district 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 honor our commitments, as we have done with all our clients over the past 35 years. We are committed to "locking in" our audit fee for the entire period of the contract which is included in the dollar cost bid proposal. We are very sensitive to the Organization's need to carefully budget its expenses. NawrockiSmith 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 year ended December 31, 2024 through 2026: — Audit and issue an opinion on the general purpose financial statements of the Town — 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 — 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 of the Justice Court of the Town — Audit and issue an opinion of the Town's Deferred Compensation Plan — 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 (including preparing the financial statements) 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 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. 2 NawrockiS ith 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 13 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 11 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 have been working 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. 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 underdone 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 NawrockiSmith 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 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 Nawr©cki! mith 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. Very truly yours, NAWROCKI SMITH LLP By: David M. Tellier 5 Nawrocki Smith DETAILED TECHNICAL PROPOSAL FOR AUDIT 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 Audit Services. 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 be rendered to the Town of Southold for the year ended December 31, 2024 through 2026. 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 assigned to the engagement are properly licensed to practice public accounting in the State of New York. D. Prior Engagements With The Town Of Southold Please be advised that the Firm of Nawrocki Smith LLP has not had any prior engagements with the Town within the last ten years. E. Similar Engagements With Other Government Entities The following represents five of our significant governmental clients for which our Firm has had audit responsibility: 6 Na roc iSmith Town of Southampton 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, 2023 Engagement partner: David M. Tellier Total audit hours: 1450 Principal client contact: Mrs. Dorothy Godlewski, 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, 2023 Engagement partner: David M.Tellier Total audit hours: 1200 Principal client contact: Mrs. Rebecca Hansen, Budget Officer(631) 907-8719 White Plains Central School District 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 June 30, 2024 Engagement partner: David M.Tellier Total audit hours: 650 Principal client contact: Mrs.Ann Vaccaro-Teich, School Business Administrator(914)422-2061 Deer Park 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, 2024 Engagement partner: David M.Tellier Total audit hours: 500 Principal client contact: Mrs.Marguerite Jimenez,Assistant Superintendent for Business(631)274-4020 7 awroc iSmith Incorporated Village of Hempstead 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, 2024 Engagement partner: David M. Tellier Total audit hours: 400 Principal client contact: Mr. Joseph Gil,Treasurer(516)488-3400 F. Introductory Statement 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 accounting firm. The Firm currently provides audit and other related services to over 80 local governments throughout Long Island, and is comprised of seventy-two professionals and support staff with offices in Hauppauge, Long Island. Thirty-five 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 CPA's licensed to practice in New-York have completed the required professional education. We are also members of the American Institute of Certified Public Accountants ("AICPA"), the AICPA Government Audit Quality Center, the NYS Government Finance Officers' Association and the New York State Society of Certified Public Accountants. — 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: 8 NawrockiSmith 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. — 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 requirements, as well as procedural testing in the financial accounting areas. — Final Audit Procedures - Upon closing of the books and records, final audit 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 Engagement: — "First-Time-Through" Work (30 hours) — Audit Planning (40 hours) — Preliminary Audit Procedures (80 hours) — Final Audit Procedures (570 hours) — Reporting Procedures (80 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. 9 NawrockiSmith 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 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. 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 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, 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 timeline for the 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: 10 Na rackiSmith Initial planning meeting with management Upon appointment Planning procedures and risk assessment Upon appointment "First-time-through" and preliminary audit procedures (including internal control testing and compliance) January and April Final audit procedures (including internal control testing and compliance) May "Sign off" on audit July Exit conference July Provide draft of financial statements Late August Deliver final reports No later than September 15 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 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 five years. 11 € awrockiSmith Qualifications And Experience 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 (Engagement Audit Partner) Christopher Angotta (Advisory Partner) Lauren Agunzo (Risk Considerations Advisory Partner) Craig Hauser (Senior Manager) David M. Tellier is a Certified Public Accountant, Certified Government Financial 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. Christopher Angotta 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. Craig Hauser is a Certified Public Accountant 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. Dave, Chris 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 ensure 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 audit. 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. Lauren Agunzo, a Certified Public Accountant and Certified Fraud Examiner will oversee our implementation of the requirements relating to the Consideration of Fraud in a Financial 'Statement Audit. Resumes accompany this proposal. 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 engagement would report directly to Dave and Craig, who would then report to the Town's designee for audit responsibility. 12 NawrockiSmith 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. 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 Annual Audit Services to the Town of Southold" in the section titled "Our Understanding Of The Work To Be Completed". 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. 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. 13 Flaherty Flaherty Salmin LLP Certified Public Accountants 2300 Buffalo Road.Building 200,Rochester,NY 14624-1365 SalminCDAS office 585 279-0120 fax 585 279-0166 www.fs-cpa.com PrimeGlobal Stmight Answers.Trusted Solutions. 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 September 30, 2021. 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/prsumma!Y. 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. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including a compliance audit under the Single Audit Act, an audit of an employee benefit plan 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. 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 September 30, 2021 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. ,�ta!t¢2fy J Z&Z-u,"Po Rochester,New York March 9, 2022 P7 David M . Tellier CPA / CFF , ' CGFM , CITP O: 631.756.9500 dmt@ns.cpa C: 631.514.5896 - • - ■ New York State Certified Public Accountant ■ Certified Government Financial Manager ■ Certified in Financial Forensics ■ Certified Information Technology Professional ■ 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 s - - February 1998- Present Attestation,Assurance&Quality Control Partner ■ Nawrocki Smith LLP, Hauppauge, NY ■ Overall client service responsibilities for over 100 audit, review and compilation engagements, primarily in the for-profit, not-for-profit, employee benefit plan and governmental sectors ■ Not-for-profit clients with revenues ranging from$100,000 to$75,000,000 annually ■ Government clients encompass Towns, Villages, School Districts, Fire Districts, Libraries and Special Districts with revenues ranging from$1,000,000 to$250,000,000 annually ■ Performs engagement and systems reviews(peer review)for accounting firms ■ Responsible for the Firms quality control policies and procedures ■ Responsible for the Attestation and Audit Division continuing professional education March 2002- Present President ■Candle in the Darkness Foundation, Inc. ■Sayville, NY ■ 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 St.Joseph's University, Patchogue, NY September 1996-May 1998 ■ Bachelor of Science in Accounting ■ Dean's List Suffolk Community College, Selden, NY September 1994-May 1996 ■ Associates Degree,Arts&Science ■ Dean's List • • ■ 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, benefit plan and audit matters(i.e. planning, compliance testing, internal control evaluation and reporting matters) Christopher Angotta , CPA O: 631.756.9500 cangotta@ns.cpa C: 631.804.2504 ■ New York State Certified Public Accountant ■ 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 September 2009 - Present Audit and Assurance Partner ■ Nawrocki Smith LLP, Hauppauge, New York ■ Overall client service responsibilities for over 100 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 $75,000,000 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 ■ Broker dealer clients with revenues ranging from $100,000 to $165,000,000 annually ■ Responsible for the Firms quality control policies and procedures ■ Responsible for the Attestation and Audit Division continuing professional education Dowling College, Oakdale, New York September 2005 - May 2009 ■ Bachelor of Business Administration in Accounting ■ Dean's List ■ Member of Alpha Chi National College Honor Scholarship Society and Delta Mu Delta International Honor Society in Business Administration • ■ 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) Craig B . Hauser , CPA 0: 631.756.9500 chauser@ns.cpa C: 516.404.0897 ■ New York State Certified Public Accountant ■ Member of American Institute Corporation of Certified Public Accountants ■ Member of New York State Society of Certified Public Accountants July 2013-Present Audit and Assurance Senior Manager ■ Nawrocki Smith LLP, Hauppauge, New York ■ 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 with partners ■ Compile and review audit workpapers to ensure quality control ■ Preparation and review of various reports/returns which include; Financial Statements, Internal Control Recommendations Letters, IRS Form 990 NYS Chr 500, FASS PHA (HUD), Uniform Guidance Reports and Data Collections Reports ■ Present and assist partners when presenting during presentation to Finance Committees and/or Board of Director's meetings State University of New York at New Paltz, New Paltz, New York September 2012-May 2013 ■ Master's Degree in Business Administration in Accounting ■ 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, New York September 2008-May 2012 • Bachelor of Science in Accounting and Finance • Magna Cum Laude • Deans List all four years • Honors in Business • Activities: Two year Member of varsity basketball team; two year member of student athlete organization that communicated with administrative personnel to set goals for student athletes and improve their experience in the school • - • M • ■ 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) Professional Auditing and Accounting Services For The Town of Southold, Suffolk County, New York Request for Proposal PROPOSAL SUBMITTED BY: (Signature of Proposer) David M. Tellier (Printed Name and Title of Proposer) Nawrocki Smith LLP December 2, 2024 (Company or Corporation) Date 100 Motor Parkway, Ste 580, Hauppauge,NY 11788 Address, Town, State, Zip 631.756.9500/631.756.9818--dmt@ns.cpa Telephone, FAX, Pager, e-mail address CORPORATE SEAL 26 Y Born, Sabrina From: Reisenberg, Lloyd Sent: Tuesday, October 29, 2024 3:50 PM To: Born, Sabrina Subject: RE:Audit RFP Legal Notice All set Sabrina. Lloyd H. Reisenberg Network and Systems Administrator Town of Southold, New York www.Southoldtownny.gov Iloyd.reisenberg@town.southold.ny.us 0: 631-765-1891 1 M:631-879-1554 CONFIDENTIALITY NOTICE: This communication with its contents may contain confidential and/or legally privileged information. It is solely for the use of the intended recipient(s). Unauthorized interception, review, use or disclosure is prohibited and may violate applicable laws including the Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of the communication. From: Born,Sabrina <sabrina.born@town.southold.ny.us> Sent:Tuesday, October 29, 2024 3:22 PM To: Doherty,Jill<jill.doherty@town.southold.ny.us>; Doroski, Greg<greg.doroski@town.southold.ny.us>; Evans, Louisa <louisae@town.southold.ny.us>;Johnson, Benjamin<benjaminj@southoldtownny.gov>; Krupski, Al <alk@town.southold.ny.us>; Lisa Finn (lisaahfinn@gmail.com) <lisaahf inn @gmail.com>; McGivney,Julie <juliem@southoldtownny.gov>; Mealy, Brian<brian.mealy@town.southold.ny.us>; DeChance, Paul <pauld@southoldtownny.gov>; Reisenberg, Lloyd <Lloyd.Reisenberg@town.southold.ny.us>; Schlachter,Amy <amys@southoldtownny.gov>;Smith,Anne<anne.smith@town.southold.ny.us>; Squicciarini,James <jacks@southoldtownny.gov>; Standish, Lauren<Lauren.Standish@town.southold.ny.us>;Tomaszewski, Michelle <michellet@town.southold.ny.us>;Tomaszewski,Zachary<zact@southoldtownny.gov> Subject:Audit RFP Legal Notice Importance: High Good Afternoon, Please see attached. Thank you, ,$a�iicza??Z�orut Sabrina M. Born Sub-Registrar& Deputy Town Clerk Senior Account Clerk ` Southold Town Clerk's Office 53095 Route 25 P.O. Box 1179 Southold,NY 11971 Ph: 631-765-1800 ext. 1226 Fax: 631-765-6145 z TOWN OF SOUTHOLD 54375 MAIN ROAD, SOUTHOLD, NEW YORK 11971 PHONE: 631-765-4333 /FAX: 631-765-1366 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 October 31St,2024 PLACE OF OPENINGS: DATE OF OPENINGS: TIME OF OPENINGS: TOWN OF SOUTHOLD December 5t',2024 2:00 PM TOWN CLERKS OFFICE 53095 MAIN ROAD SOUTHOLD,NY 11971 CONTACT PERSON: Michelle Nickonovitz, CPA Town Comptroller 631-765-4333, michellen@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: October 22, 2024 Denis Noncarrow, Town Clerk TOWN OF SOUTHOLD 54375 MAIN ROAD, SOUTHOLD, NEW YORK 11971 PHONE: 631-765-4333 / FAX: 631-765-1366 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 October 311t,2024 PLACE OF OPENINGS: DATE OF OPENINGS: TIME OF OPENINGS: TOWN OF SOUTHOLD December 5t",2024 2:00 PM TOWN CLERKS OFFICE 53095 MAIN ROAD SOUTHOLD,NY 11971 CONTACT PERSON: Michelle Nickonovitz, CPA Town Comptroller 631-765-4333, michellen@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: October 22, 2024 Denis Noncarrow, Town Clerk Town of Southold 54375 Main Road PO Box 1179 Southold, NY 11971 FOtl(�oG a Request for Proposal Professional Auditing and Accounting Services For the Town of Southold, Suffolk County, New York October 31, 2024 TOWN OF SOUTHOLD NEW YORK TOWN SUPERVISOR ALBERT J. KRUPSKI JR. TOWN BOARD JILL DOHERTY GREG DOROSKI LOUISA EVANS BRIAN MEALY ANNE SMITH TOWN COMPTROLLER MICHELLE NICKONOVITZ, 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 REQUEST FOR PROPOSALS PLEASE TAKE NOTICE that sealed proposals will be received up until 2:00 p.m., on DECEMBER 5, 2024, 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 October 31, 2024 Albert J. Krupski Jr. Town Supervisor 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 2024, 2025 and 2026 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. i 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) Non exempt 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 an Annual Comprehensive 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 an annual comprehensive financial report (ACFR), 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 ACFR. 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 (5) 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 Michelle Nickonovitz, 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: Number.of Fund Type, Individual Funds'Y General Fund 1 Special Revenue Funds 9 Highway Fund Part Town General Fund Part Town Community Housing Fund 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, 2024. Future Fiscal Year Audit Calendars are subject to change.) Financial Statement Audit 1. June (April for 2025 and 2026 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 2025 and 2026 years)—Auditor commences audit field work. 15 3. July/August (July for 2025 and 2026 years) — Auditor completes audit field work and presents draft audit findings with recommendations and suggested adjustments to the Town Comptroller for review and response. 4. On or before September 15 (August 3 Pt for 2025 and 2026 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 31" for 2025 and 2026 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 2025 and 2026 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 2025 and 2026 years)—Auditor commences and finishes audit field work. 3. July (May/early June for 2025 and 2026 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 2025 and 2026 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 2024 year(June 301h for 2025 and 2026 years). Justice Court Audit 16 1. June/July (March/April for 2025 and 2026 years) — Auditor provides the Town 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 2025 and 2026 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 1" 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 2025 and 2026 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 (2024, 2025 and 2026) • 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 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 ACFR'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. i 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: Michelle Nickonovitz, CPA, Town Comptroller 54375 Main Road PO Box 1179 Southold,NY 11971 Telephone: 631-765-4333 Fax: 631-765-1366 E-mail: michellen@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 s 34c48d6e sabrina.born@town.southold.ny.us AFFIDAVIT OF PUBLICATION The Suffolk Times State of New York, County of,Suffolk County, The undersigned is the authorized designee 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: 11/07/2024 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 Christina Henke Rea Printed Name Subscribed and sworn to before me, This 11 day of November 2024 Digitally signed DOUGLASWREA by douglas w rea Notary Public•State of New York Date: 2024.11.11 NO,OIRE6398443 14:26:19 +00:00 Qualified in Albany County My Commission Expires Sep 30,2027 t.% LEGAL NOTICE REQUEST FOR PROPOSALS NOTICE IS HEREBY GIVEN that sealed proposals are sought and requested for the following: "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 October 31 st, 2024. PLACE OF OPENINGS: Southold Town Clerk's Office 53095 Main Road Southold, NY 11971 DATE &TIME OF OPENING: December 5, 2024 at 2:00 PM CONTACT PERSON: Michelle Nickonovitz, CPA Town Comptroller 631-765-4333, michellen@southoldtownny.gov VENDORS MUST SUBMIT BIDS IN SEALED ENVELOPES. PLEASE PRINT ON THE FACE OF ENVELOPE: 1) NAME &ADDRESS OF BIDDER 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 cop off 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: October 22, 2024 Denis Noncarrow, Town Clerk LEGAL NOTICE REQUEST FOR PROPOSALS NOTICE IS HEREBY GIVEN that sealed proposals are sought and requested for the following: "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 October 31 st, 2024. PLACE OF OPENINGS: Southold Town Clerk's Office 53095 Main Road Southold, NY 11971 DATE &TIME OF OPENING: December 5, 2024 at 2:00 PM CONTACT PERSON: Michelle Nickonovitz, CPA Town Comptroller 631-765-4333, michellen@southoldtownny.gov VENDORS MUST SUBMIT BIDS IN SEALED ENVELOPES. PLEASE PRINT ON THE FACE OF ENVELOPE: 1) NAME &ADDRESS OF BIDDER 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: October 22, 2024 Denis Noncarrow, Town Clerk LEGAL NOTICE REQUEST FOR PROPOSALS NOTICE IS HEREBY GIVEN that sealed proposals are sought and requested for the following: "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 October 31", 2024. PLACE OF OPENINGS: Southold Town Clerk's Office 53095 Main Road Southold,NY 11971 DATE & TIME OF OPENING: December 5, 2024 at 2:00 PM CONTACT PERSON: Michelle Nickonovitz, CPA Town Comptroller 631-765-4333, michellen@southoldtownny.gov VENDORS MUST SUBMIT BIDS IN SEALED ENVELOPES. PLEASE PRINT ON THE FACE OF ENVELOPE: 1)NAME&ADDRESS OF BIDDER 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: October 22, 2024 Denis Noncarrow, Town Clerk STATE OF NEW YORK) SS: COUNTY OF SUFFOLK) Denis Noncarrow, Town Clerk of the Town of Southold,New York being duly sworn, says that on the 30th day of October, 2024, 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.southoldton=.gov 2024-2026 Annual Audit RFP L"'Derg N arro Southold Town Clerk Sworn to before me on the 301h day of October, 2024 T-(��4Notaryublic SABRINA M BORN Notary Public,State of New York No.01 B06317038,Suffolk COUPAY1 Commission Expires Dec.22,20 AW RESOLUTION 2024-921 wk . ADOPTED DOC ID: 20733 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2024-921 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON OCTOBER 22, 2024: 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 2024, 2025 and 2026 fiscal years, subject to the approval of the Town Attorney. Denis Noncarrow Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Anne H. Smith, Councilwoman SECONDER:Greg Doroski, Councilman AYES: Doroski, Mealy, Smith, Krupski Jr, Doherty, Evans rl� PKF Lj v aCONNOR RECEIVED D"I ES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 DEC li 5 2024 Southold Town Clerk PROPOSALFOR AUDIT & ACCOUNTING SERVICES DOLLAR COST PROPOSAL For the fiscal years ended December 31,2024, 2025 and 2026 PRESENTED TO TOWN OF SOUTHOLD, SUFFOLK COUNTY, NEW YORK DATE December 5, 2024 CONTACT Jeffrey Davoli jdavoli@pkfod.com 631.299.3444 878 Veterans Memorial Highway Hauppauge, NY 11788 der KNOWr , Q EAT E 'D VALUIE PKF (YCONNOR DAVIES 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 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, 2024, 2025 and 2026 are as follows: Fees: Fees: Fees: Audit of Financial Statements, Supporting Schedules $72,000 $75,000 $78,000 and Preparation of Management Letter Audit of Deferred Compensation Plan $13,000 $13,000 $14,000 Audit of Justice Court—Cash Receipts & Disbursements $7,500 $7,500 $7,500 Total fees $92,500 $95,500 $99,500 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. 1 . Partner $520 $520 +2% Director $335 $335 +2% Senior $295 $295 +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 Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2024 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 75 $520 $200 $15,000 Managers 250 $335 $100 $25,000 Senior Staff 200 $295 $80 $16,000 Staff Auditors 225 $135-$195 $71 $16,000 Other Rounding - Total Hours 750 Total all-inclusive maximum price for audit: $ $72,000 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. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2025 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 75 .$520 $208 $15,600 Managers 250 $335 $104 $26,000 Senior Staff 200 $295 $83 $16,640 Staff Auditors 225 $135-$195 $74 $16,640 Other Rounding $120 Total Hours 750 Total all-inclusive maximum price for audit: $ $75,000 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. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2026 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 75 $530 $216 $16,224 Managers 250 $342 $108 $27,040 Senior Staff 200 $300 $87 $17,306 Staff Auditors 225 $138-$199 $77 $17,306 Other Rounding $124 Total Hours 750 Total all-inclusive maximum price for audit: $ $78,000 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. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE DEFERRED COMPENSATION PLAN Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2024 & 2025 (per year, same rate) (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 22 $520 $225 $4,950 Director 40 $335 $134 $5,360 Senior Staff 18 $295 $84 $1,512 Staff Auditors 15 $135-$195 $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 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: 2026 (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 22 $530 $264 $ 5,800 Managers 40 $342 $135 $ 5,400 Senior Staff 18 $300 $87 $ 1 566 Staff Auditors 15 $138-$199 $77 $ 1,155 Other Rounding $ 79 Total Hours 125 Total all-inclusive maximum price for audit: $ $ 14,000 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. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE JUSTICE COURT Proposers Company Name: PKF O'Connor Davies Fiscal Years: 2024 - 2026 (per year, same rate) (complete with year of proposed service) Hours Standard Quoted Total Hourly Hourly Rates Rates Partners 10 $520 $225 $ 2,250 Director 25 $335 $134 $ 3,350 Senior Staff 13 $295 $ 84 $ 1,092 Staff Auditors 10 $135-$195 $ 75 $ 750 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. A 013PKF CYCONNOR DAVIES ACCOUNTANTS AND ADVISORS PKF O'Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms. PKF CIFY 000NNOR DAVI ES RECEIVED ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 DEC 5 2024 Southold Town Clerk PROPOSALFOR AUDIT & ACCOUNTING SERVICES TECHNICAL PROPOSAL For the fiscal years ended December 31, 2024, 2025 and 2026 PRESENTED TO TOWN OF SOUTHOLD, SUFFOLK COUNTY, NEW YORK DATE December 5, 2024 CONTACT Jeffrey Davoli jdavoli@pkfod.com 631.299.3444 878 Veterans Memorial Highway Hauppauge, NY 11788 �3 WIN VALUE ° �0PKF ./ OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 December 5, 2024 Michelle Nickonovitz, CPA-Town Comptroller Town of Southold 54375 Main Road Southold, NY 11971 Dear Michelle: PKF O'Connor Davies is pleased to present this proposal for providing audit services to the Town of Southold for the fiscal years ended December 31, 2024, 2025 and 2026. We are confident that 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 Director 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 John Shillingsford Governmental Partner Employee Benefit Plans Partner jdavoli@pkfod.com.3444.com jshillingsford@pkfod.com 631.299.3444 631.299.3440 PKF O'CONNOR DAVIES 878 Veterans Memorial Highway,Fourth Floor,Hauppauge,NY 11788 1 Tel:631.434.95001 Fax:631.434.9518 1 www.pkfod.com PKF V aCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 TABLE OF CONTENTS TRANSMITTAL LETTER.....................................................................................................................4 INDEPENDENCE................................................................................................................................5 LICENSE TO 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 PROPOSED TIME FRAME...............................................................................................................16 REFERENCES..................................................................................................................................19 YOUR ENGAGEMENT TEAM ..........................................................................................................20 FIRMOVERVIEW.............................................................................................................................21 WHAT SETS US APART..................................................................................................................22 APPENDICES...................................................................................................................................23 A. Engagement Team Biographies B. Peer Review Report PKF CYCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 TRANSMITTAL 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 Davoll Partner jdavoli@pkfod.com 631.299.3444 CPKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 INDEPENDENCE 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. 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 Town of Southold 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. � t"Q% PKF 000NNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 LICENSE TO PRACTICE 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. J / . GREATER VALUE* fm* PKF %./ MONNOR D"I ES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1691 OUR UNDERSTANDING 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, 2024, 2025 and 2026. ■ 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. CPKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 ENGAGEMENT DETAILS 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, 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 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 organizations as well as numerous government and accounting organizations, including: ■ GFOA-Government Finance Officers Association: National, New York and Connecticut Chapters ■ ASBO-Association of School Business Officials: National, New York and New Jersey Chapters ■ AICPA-American Institute of Certified Public Accountants ■ 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 ■ Boroughs ■ Hospitals and Nursing Homes ■ Public Authorities 0 School Districts 0 Educational Institutions CIPW OrCONNOR D"I ES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 PRIOR ENGAGEMENTS WITH THE TOWN OF SOUTHOLD TotalDef. Def. Justice Justice Audit Audit Comp. Comp. Court Court Year hours billings Hours Billings Hours Billings Billing$ 2023* 750 $72,000 115 $ 13,000 65 $ 7,500 $ 92,500 2022 765 $ 70,983 110 $ 13,000 - 65 $ 7,500 $ 91,483 2021 755 $69,150 110 $ 13,000 65 $7,500 $ 89,650 2020 750 $69,150 110 $ 13,000 65 $7,500 $ 89,650 2019 755 $84,150 115 $ 13,000 70 $7,500 $ 104,650 2018 675 $82,500 100 $ 13,000 70 $ 7,500 $ 103,000 2017 650 $ 80,900 105 $ 13,000 50 $ 7,500 $ 101,400 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 1 $ 95,250 * Exclusive of audit of CSLFRF ($ 9,500) and assistance with AFR filing ($ 9,500) 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 2017. 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. PKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES ScopeGovernment Entity Engagement of Work Total Hours Partner Town of Riverhead Jeanette DiPaola Director of Finance Jeffrey Davoli Audit 1,200 dipaola@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 Laura Carey Audit Comptroller Jeffrey Davoli (ACFR) 1,200 Icarey@huntingtonny.gov (631) 351-3310 Town of Oyster Bay Steve Ballas Accounting Comptroller Jeffrey Davoli Services 3,000 sballas@oysterbayny.gov (516) 624-6440 Town of Shelter Island Amber Brach-Williams Councilwoman Jeffrey Davoli Audit 600 abwilliams@shelterislandtown.us (631) 749-0291 Some recent GFOA awards (ACFR) submissions we've worked on are: ■ Town of Huntington ■ Town of Oyster Bay 0 PKF 000NNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1B91 QUALIFICATIONS 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 20% ■ Manager 40% ■ Senior Staff 20% ■ Staff Auditors 20% 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. 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. COW 000NNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1691 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 We conduct our audit using a phased approach, which includes planning/risk assessment procedures, fieldwork, reporting and communication. The following describes each phase: SUBSTANTIVE O • • PROCEDURES 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. 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 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 GPKF OrCONNOR 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 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. 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 achieve optimal audit efficiency by focusing our substantive testing on areas with the highest risk,of a material misstatement. Substantive Testing 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. These procedures can include observation, vouching, tracing, recalculating, evaluation of estimates, independent confirmations, reading contracts and agreements, and more. Improve Efficiency with Technology 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. Phase 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 GPKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1691 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 ■ Offer solutions for enhancing internal controls ■ Serve as your resource for information, insight, recommendations and industry best practices Phase IV—Continuous Communication 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. PKF (YCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 v ANTICIPATED POTENTIAL AUDIT 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. tmW PKF 000NNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 PROPOSED TIME FRAME Financial Statement Audit Dates Planning Auditor provides the Town Comptroller with a detailed audit plan; a list of all schedules to be prepared by the Town and a MARCH list and format of confirmations to be prepared by the Town. Auditor conducts preliminary engagement activities. Field Work MARCH/MAY Auditor commences and finishes audit field work. Presentation of Draft Audit Findings Auditor completes audit field work and presents draft audit JUNEMULY findings with recommendations and suggested adjustments to the Town Comptroller for review and response. Financial Statements, Notes and Supplementary Schedules The auditor shall prepare draft financial statements, notes and AUGUST 15 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 August 15t'' Deliver Final Reports 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 AUGUST 31 discuss the audit reports. Once all issues for discussion are resolved, the final signed report shall be issued no later than August 31 st of the year following the year under audit. CIDPKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Deferred Compensation Audit Planning Auditor provides the Town Comptroller with a detailed audit APRIL 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. Field Work MAY Auditor commences and finishes audit field work. Presentation of Draft Audit Findings 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 MAY/EARLY JUNE response on or before June 15th. 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 JUNE 30 shall be issued no later than June 30th 0`1 PKF OrCONNOR D"I ES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Justice Court Audit Planning Auditor provides the Town Comptroller and the Justice Court Director with a detailed audit plan; a list of all schedules to be FEBRUARY prepared by the Town and a list and format of confirmations to be prepared by the Town.Auditor conducts preliminary engagement activities February—Auditor commences and finishes audit field work. Field Work Auditor completes audit field work, prepares draft financial MARCH/APRIL 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 April 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. Deliver Final Reports MAY 15 Once all issues for discussion are resolved, the final signed report shall be issued no later than May 15th. KNOW GREATER VALUE* 18 PKF OrCONNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 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 Jeanette DiPaola Director of Finance dpaola@townofriverheadny.gov (631) 727-3200 Town of Brookhaven Tamara Branson Director of Finance tbranson@brookhavenny.gov (631)451-6681 Town of Huntington Laura Carey Comptroller lcarey@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 Supervisor abwilliams@shelterislandtown.us (631) 749-0291 CaPKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 YOUR ENGAGEMENT TEAM 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 - a Jennifer Clark Director jclark@pkfod.com 631.299.3476 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. GPKF OrCONNOR DIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 FIRM OVERVIEW We exist to serve clients at a higher level. 130+ Years 11500 200 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 #26 REGIONAL PRESENCE. GLOBAL REACH. RANKING PKF O'Connor Davies is the lead North American on Accounting Today's representative in PKF International, a global network Top 100 list of legal 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. GPKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 WHAT SETS 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. ■ 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. ■ 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. ■ Direct Partner Involvement, Dedicated Engagement Teams 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 200 partners and 1,500 professionals serve clients at 18 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. CIPW CYCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 APPENDICES 011W (YCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Appendix A: Engagement Team Biographies Jeffrey S. Davoli 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 industries, manufacturers, wholesale distributors and engineering, as - -- - - w 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. 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. 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 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. Active in the AICPA, NYSSCPA, PICPA and ACFE. PKF OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 x: r Jennifer Clark, CPA, CIA t Director Jennifer is a Director at PKF O'Connor Davies with more than 16 years' experience in public accounting and auditing, including more than nine years of experience in governmental accounting and auditing. Her primary responsibilities include on-site supervision of audit engagements serving local governments including towns, school districts, villages and special districts. 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 is a certified internal auditor("CIA"). COW 000NNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Appendix B: Peer Review Report ORVIE111 KAPLAN REPORT ON THE FIRM'S SYSTEM OF QUALITY CONTROL January 25.2024 To the Partners of PKF O'Connor Davies,LLP and the National Poor Roviow Committee 4Ve have reviewed the system of quality control for the accounting and auditing practice of PKF O'Connor Davies,ILLP(the firm)applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended December 31,2022. 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 w6nw.alcpa.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 and complying with a system of quality control to provide the firm with reasonable assurance of performing and reporting in conformity with the requirements of applicable professional standards in all malarial respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported on In conformity with the requirements of applicable 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 and compliance with the fum's system of quality control therewith based on our review. 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;and examinations of services organizations(SOO 1 and SOC 2 engagements). As a part of our peer review,vie considered reviews by regulatory entities as communicated by the firm,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 PKF O'Connor Davies,LLP applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended December 31,2022,has been suitably designed and compiled 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 doriciency(ios),or fa+iL PKF O'Connor Davies,LLP has received a peer review rating of pass. �brLT A64, DAVIE KAPLAN,CPA,P.C. 0.1.K-CPA r`C Ca<Mn eLttt A[tovu.vn� • GREATER VALUE' Professional Auditing and Accounting Services For The Town of Southold, Suffolk County, New York Request for Proposal PROPOSAL SUBMITTED BY: If (Signs(re of Proposer) Jeffrey Davoli, Partner (Printed Name and Title of Proposer) PKF O'Connor Davies,LLP December 5, 2024 (Company or Corporation) Date 878 Veterans Memorial Highway, Hauppauge,NY 11788 Address, Town, State, Zip 631.299.3444, 631.434.9500,jdavoli@pkfod.com 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 Jeffrey Davoli,Partner (SIGNED) /1M CORPORATE TITLE (IF APPLICABLE Corporate Seal 7