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RFP: Audit Proposal

I - Information Furnished by the Requester
The Requester is: Housing Authority of The City Of Kinston (KHA)

Questions concerning the proposal should be directed to:
Jennitra Veal, Finance Director
Housing Authority of The City of Kinston
608 North Queen Street
Post Office Box 697
Kinston, NC 28502

252.523.1195 Ext. 230
Email Jennitra Veal

To qualify for consideration

  • Mail 3 copies of your proposal
    or
  • Email 1 copy to the housing authority

By May 25, 2023, at 5:00 PM

Sealed envelopes should be clearly marked "Audit Proposal". Late proposals will be rejected as not meeting the requirements of this request for proposal.

II - Nature of Services Provided

Each proposal must address conducting an examination and expression of opinion upon the Kinston housing authority and those properties under the management of the Kinston housing authority including preparation of general-purpose financial statements. The audit of each property must be based on the fiscal year of that property beginning with fiscal years ending December 31, 2023 and continuing through the fiscal year for all subsequent fiscal year ends.

The examination must be performed in accordance with generally accepted auditing standards; government auditing standards, including GASB 34 and all subsequent standards issued by the comptroller general of the United States; single audit act of 1984 and the provisions of the office of management and budget's (OMB) circular A-133, "Audits of States and Local Governments" and the single Audit Act Amendments of 1996. In addition, the audit should be conducted in accordance with PH Notice 96-32 including (PHAS) testing. Also, testing of the SEMAP indicators for the section 8 program must be performed.

III-Description of the Entity

The housing authority of the city of Kinston is a public body and a body corporate and political created under the authority of the general statues of North Carolina. The authority was created for the purpose of providing safe and sanitary housing for the low-income citizens of Kinston, North Carolina. The authority's programs are administered at the local level, in accordance with federal and state laws. The Kinston housing authority also manages several non-subsidized properties. A complete list of developments and programs are listed in this request for proposal.

IV - Audit Information

The Kinston housing authority is seeking an audit firm to conduct the financial audit of all the programs under its management beginning with fiscal years ending December 31, 2023, 2024 and 2025 with a renewal option for two additional years.

V - Audit Information

A. Years to be Audited:
KHA is requesting proposals to audit the books and records for the fiscal years ending December 31, 2023, 2024 and 2025 with a renewal option for two additional years.

B. Conduct of Audit:
The audit will be conducted under the single Audit Act of 1984. Certified public accountants who bid on this work should be familiar with the scope of work including any supplemental program audit guides and its requirements, plus be prepared to provide the additional financial review and schedules outlined in these specifications.

The auditor should also follow the standards established by the comptroller general of the United States and the "standards for audits of government organizations, programs, activities and functions" commonly referred to as the "yellow book". Respondents must comply with the North Carolina licensing requirements and meet the single audit act definition of an independent auditor.

VI - Audit Scope
The various programs under the management of the agency require audit submission to their regulatory agency at a time specified by that agency. We would expect the firm selected to complete this audit work in a timely manner. To maintain financial controls and ensure the timely close of fiscal year and preparation of financial statements, the audit firm should conduct on-site work at the end of the first six months of the fiscal year and other times as may be appropriate.

The audit report will contain the following:

  1. General purpose financial statements including notes thereto (GPFS) prepared in accordance with generally accepted accounting principles (GAAP)
  2. All required single audit reports and opinions
  3. All statements and schedules required by the United States department of housing and urban development (HUD)
  4. Electronic submission of audited financial statements within nine (9) months of the end of the fiscal year
  5. Provide separate financial statements and schedules for each program in addition to united states department of housing and urban development (HUD) required consolidated statements

The auditors should demonstrate their ability to submit a report containing all the above-listed requirements.

The auditor will type, prepare, and electronically submit the audit report as required. Twelve (12) copies of the audit report will be provided to the KHA, in addition to the copies mailed to the appropriate HUD officials and other federal and state entities as required. An electronic copy may be provided to be submitted to HUD and other entities in lieu of providing additional copies for HUD and other entities.

VII - Information and Data Required of Each Officer.

  1. Method for providing the requested services
    1. Your understanding of the audit steps necessary to perform the work.
    2. A description of your audit approach for auditing public housing authority clients under the single audit act including your approach to understanding the internal control systems of the authority.
  2. Qualifications and experience.
    1. Demonstrate the ability of the on-site staff to carry out the audit, by prior experience in similar audits.
    2. Demonstrate the ability of other specifically named key personnel to carry out the assignment as evidenced by prior experience in executing similar responsibilities.
    3. Estimate the level of effort in terms of the time commitment to the job by listing the accountants on the job by level within the firm (partner, manager, senior, or junior), hours needed and hourly rate.
  3. Officer experience
    1. Demonstrate experience and capability of the officer in conducting audits of this nature and in the scope required by this request for proposal. Include a list of housing authorities that are similar in size and/or activities to the Kinston housing authority for which you have performed services in the past three years.
    2. Demonstrate experience and capability of the officer in providing stability, continuity and responsiveness of both staff and management. For instance, will the staff that conduct the audit this year be available to work on the examination next year?
    3. Describe the characteristics of your firm that differentiate you from other firms and/or would enable your firm to better serve the Kinston housing authority.
  4. Minority business enterprise participation
    1. Set forth the degree, if any, of participation by minority business enterprises in the work under the proposal.
  5. Cost
    1. Provide your bid for the audit by year, for each of the three fiscal years as previously described. Also, please provide an hourly rate by level within the firm for additional services which may be required.
  6. Time frame
    1. The auditor should provide completion of fieldwork on or before august 31st after the close of the fiscal year.
    2. The final audit report should be delivered to the authority and mailed to all appropriate agencies on or before September 30th after the close of the fiscal year.
    3. The auditor should also make the required electronic submission of the audit report to the department of housing and urban development.
    4. The proposal submission must provide evidence of agreement with the listed time frame and the ability of the audit firm to meet the timeline.
    5. The officer must indicate how much Kinston housing authority staff time will be required to complete the audit and what type and level of people will be needed.

VIII - Selection Criteria

The auditor will be selected based on their responses to the above criteria. An audit evaluation sheet (see section x) is enclosed to show respondents the evaluation criteria.

IX - Description of Programs

The Housing Authority of The City of Kingston Operates the Following Programs:

  • Public Housing
    • Number of Units - 641
    • Operating Budget (7-Amps) - $5,100,000
  • Section 8 Program
    • Vouchers/Housing Choice
    • Number of Vouchers Authorized - 889
    • Number of Vouchers Leased - 702
    • Hap Annual Contributions Required - $3,800,000
    • Administrative Fee - $568,000
  • Capital Fund Grants - 2019 Grant Year
    • Status - Closed
    • Budget - $1,687,250
  • Capital Fund Grants - 2020 Grant Year
    • Status - Open
    • Budget - $1,804,865
  • Capital Fund Grants - 2021 Grant Year
    • Status - Open
    • Budget - $1,759,735
  • Capital Fund Grants - 2022 Grant Year
    • Status - Open
    • Budget - $2,320,494
  • Capital Fund Grants - 2023 Grant Year
    • Status - Open
    • Budget - $2,374,161
  • Ross - 2023 Grant Year
    • Status - Open
    • Budget - $132,000
  • Investment Properties
    • Number Of Units - 6
    • Operating Budget - $47,000

Component Units of The Kinston Housing Authority:

  • Kinston Towers (223 Elderly Housing)
    • Number of Units - 148
    • Operating Budget - $989,000
  • Six Churches Plaza (202 Elderly Housing)
    • Number Of Units - 110
    • Operating Budget - $705,000
  • Roland L. Paylor Apartments (202 Elderly Housing)
    • Number Of Units - 40
    • Operating Budget - $322,000
  • Elderly Housing Corp. (No Operating Budget)
    • Unrestricted Net Assets - $274,593
  • Central Office Cost Center
    • Operating Budget - $1,000,000

X - Audit Evaluation Sheet

The following criteria will be used in evaluating proposals:

  1. Qualifications and experience of the firm and specific individuals who will be working directly with KHA in the areas listed under the scope of services. Previous government and housing authority experience. (30 points)
  2. Ability of the respondent firm and support staff to perform the scope of services as detailed above. (20 points)
  3. Cost-maximum hourly rate and other fees including out-of-pocket expense. (20 points)
  4. Thoroughness of proposal (including technical plan or systematic approach to audit). (15 points)
  5. Quality of references. (15 points)

Audit Evaluation Sheet

The following criteria will be used in evaluating proposals, qualifications, and experience of the firm and specific individuals who will be working directly with KHA in the areas listed under the scope of services.

  1. Previous government and housing authority experience. (30 points)
  2. Ability of the respondent firm and support staff to perform the scope of services as detailed above. (20 points)
  3. Cost-maximum hourly rate and other fees including out-of-pocket expense. (20 points)
  4. Thoroughness of proposal (including technical plan or systematic approach to audit. (15 points)
  5. Quality of references. (15 points)