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HomeMy WebLinkAboutC2021-053 - HeinfeldMeech1 Contract No. 2021-053 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND HEINFELD, MEECH & CO, PC THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into as of June 2, 2021 between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Heinfeld, Meech, and Co., PC, a(n) Arizona corporation. RECITALS A. The Town issued a Request for Proposals, RFP ”Financial Audit” (the “RFP”) on March 15, 2021, a copy of which is on file with the Town and incorporated herein by reference, seeking proposals from vendors interested in providing professional services consisting of financial auditing services for the Town (the “Services”). B. The Vendor responded to the RFP by submitting a proposal (the “Proposal”), attached hereto as Exhibit A and incorporated herein by reference. C. The Town desires to enter into an Agreement with the Vendor to perform the Services, as set forth below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Vendor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date first set forth above and shall remain in full force and effect until June 1, 2022 (the “Initial Term”), unless terminated as otherwise provided in this Agreement. After the expiration of the Initial Term, this Agreement may be renewed for up four (4) successive one-year terms (each, a “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal, (ii) at least 30 days prior to the end of the then-current term of this Agreement, the Vendor requests, in writing, to extend this Agreement for an additional one-year term and (iii) the Town approves the additional one-year term in writing (including any price adjustments approved as part of this Agreement), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Vendor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Vendor, elect to waive this requirement and renew this Agreement. The Initial 2 Term and all Renewal Terms, if any, are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2. Scope of Work. Vendor shall provide the Services as set forth in the Proposal attached hereto as Exhibit A and incorporated herein by reference. 3. Compensation. The Town shall pay the Vendor an aggregate amount not to exceed $198,695, at the rates set forth in the Fee Proposal attached hereto as Exhibit B and incorporated herein by reference. 4. Payments. The Town shall pay the Vendor monthly, based upon work performed and completed to date, and upon submission and approval of invoices. All invoices shall document and itemize all work completed to date. Each invoice statement shall include a record of time expended and work performed in sufficient detail to justify payment. This Agreement must be referenced on all invoices. 5. Documents. All documents, including any intellectual property rights thereto, prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town. 6. Vendor Personnel. Vendor shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Vendor agrees to assign specific individuals to key positions. If deemed qualified, the Vendor is encouraged to hire Town residents to fill vacant positions at all levels. Vendor agrees that, upon commencement of the Services to be performed under this Agreement, key personnel shall not be removed or replaced without prior written notice to the Town. If key personnel are not available to perform the Services for a continuous period exceeding 30 calendar days, or are expected to devote substantially less effort to the Services than initially anticipated, Vendor shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel possessing substantially equal ability and qualifications. 7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Vendor’s performance. The Vendor shall provide and maintain a self-inspection system that is acceptable to the Town. 8. Licenses; Materials. Vendor shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Vendor. The Town has no obligation to provide Vendor, its employees or subcontractors any business registrations or licenses required to perform the specific services set forth in this Agreement. The Town has no obligation to provide tools, equipment or material to Vendor. 9. Performance Warranty. Vendor warrants that the Services rendered will conform to the requirements of this Agreement and with the care and skill ordinarily used by members of the same profession practicing under similar circumstances at the same time and in the same locality. 3 10. Indemnification. To the fullest extent permitted by law, the Vendor shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, breach of contract, in connection with the work or services of the Vendor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 11. Insurance. 11.1 General. A. Insurer Qualifications. Without limiting any obligations or liabilities of Vendor, Vendor shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies authorized to do business in the State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Agreement at the Town’s option. B. No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Vendor. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Vendor from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement. C. Additional Insured. All insurance coverage, except Workers’ Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Agreement. D. Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Agreement are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Agreement. 4 E. Primary Insurance. Vendor’s insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured. F. Claims Made. In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. G. Waiver. All policies, except for Professional Liability, including Workers’ Compensation insurance, shall contain a waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Vendor. Vendor shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. H. Policy Deductibles and/or Self-Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self-insured retention amounts. Such deductibles or self-insured retention shall not be applicable with respect to the policy limits provided to the Town. Vendor shall be solely responsible for any such deductible or self-insured retention amount. I. Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Vendor shall execute written agreements with its subcontractors containing the indemnification provisions set forth in this Agreement and insurance requirements set forth herein protecting the Town and Vendor. Vendor shall be responsible for executing any agreements with its subcontractors and obtaining certificates of insurance verifying the insurance requirements. J. Evidence of Insurance. Prior to commencing any work or services under this Agreement, Vendor will provide the Town with suitable evidence of insurance in the form of certificates of insurance and a copy of the declaration page(s) of the insurance policies as required by this Agreement, issued by Vendor’s insurance insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Agreement and that such coverage and provisions are in full force and effect. Confidential information such as the policy premium may be redacted from the declaration page(s) of each insurance policy, provided that such redactions do not alter any of the information required by this Agreement. The Town shall reasonably rely upon the certificates of insurance and declaration page(s) of the insurance policies as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Vendor’s responsibility to forward renewal certificates and declaration page(s) to the Town 30 days prior to the expiration date. All certificates of 5 insurance and declarations required by this Agreement shall be identified by referencing the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without the appropriate RFP number and title or a reference to this Agreement, as applicable. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing the appropriate RFP number and title or a reference to this Agreement, as applicable, will be subject to rejection and may be returned or discarded. Certificates of insurance and declaration page(s) shall specifically include the following provisions: (1) The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: (a) Commercial General Liability – Under Insurance Services Office, Inc., (“ISO”) Form CG 20 10 03 97 or equivalent. (b) Auto Liability – Under ISO Form CA 20 48 or equivalent. (c) Excess Liability – Follow Form to underlying insurance. (2) Vendor’s insurance shall be primary insurance with respect to performance of this Agreement. (3) All policies, except for Professional Liability, including Workers’ Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Vendor under this Agreement. (4) ACORD certificate of insurance form 25 (2014/01) is preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the phrases in the cancellation provision “endeavor to” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives” shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 11.2 Required Insurance Coverage. A. Commercial General Liability. Vendor shall maintain “occurrence” form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims 6 arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of “your work” for that insured by or for you.” If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. B. Vehicle Liability. Vendor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Vendor’s owned, hired and non-owned vehicles assigned to or used in the performance of the Vendor’s work or services under this Agreement. Coverage will be at least as broad as ISO coverage code “1” “any auto” policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. C. Professional Liability. If this Agreement is the subject of any professional services or work, or if the Vendor engages in any professional services or work in any way related to performing the work under this Agreement, the Vendor shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Vendor, or anyone employed by the Vendor, or anyone for whose negligent acts, mistakes, errors and omissions the Vendor is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 annual aggregate. D. Workers’ Compensation Insurance. Vendor shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Vendor’s employees engaged in the performance of work or services under this Agreement and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 11.3 Cancellation and Expiration Notice. Insurance required herein shall not expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town. 12. Termination; Cancellation. 12.1 For Town’s Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Vendor of written notice by the Town. Upon termination for convenience, Vendor shall be paid for all undisputed services performed to the termination date. 7 12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non-defaulting party, such party will be in default. In the event of such default, the non-defaulting party may terminate this Agreement immediately for cause and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting party’s nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the defaulting party immediately (A) provides written notice to the non-defaulting party and (B) commences to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of such termination for cause, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days’ written notice to Vendor in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ. REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further obligations by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Town or any of its departments or agencies is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of any other party to this Agreement in any capacity or a Vendor to any other party of this Agreement with respect to the subject matter of this Agreement. 12.5 Gratuities. The Town may, by written notice to the Vendor, cancel this Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future employment, entertainment, gifts or otherwise, were offered or given by the Vendor or any agent or representative of the Vendor to any officer, agent or employee of the Town for the purpose of securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and withhold from the Vendor an amount equal to 150% of the gratuity. 12.6 Agreement Subject to Appropriation. This Agreement is subject to the provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of this Agreement for payment of funds by the Town shall be effective when funds are appropriated for purposes of this Agreement and are actually available for payment. The Town shall be the sole judge and authority in determining the availability of funds under this Agreement and the Town shall keep the Vendor fully informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is a current expense of the Town, payable exclusively from such annual appropriations, and is not a general obligation or indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding fiscal year, this 8 Agreement shall terminate at the end of then-current fiscal year and the Town and the Vendor shall be relieved of any subsequent obligation under this Agreement. 13. Miscellaneous. 13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venture, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Vendor acknowledges and agrees that the Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Vendor, its employees and subcontractors are not entitled to workers’ compensation benefits from the Town. The Town does not have the authority to supervise or control the actual work of Vendor, its employees or subcontractors. The Vendor, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Vendor meets the requirements as agreed in Section 2 above and in Exhibit A. Vendor is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Vendor do not intend to nor will they combine business operations under this Agreement. 13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 13.3 Laws and Regulations. Vendor shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Vendor is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 13.4 Amendments. This Agreement may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Vendor. 13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in this Agreement will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, this Agreement will promptly be physically amended to make such insertion or correction. 13.6 Severability. The provisions of this Agreement are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of this Agreement which may remain in effect without the invalid provision or application. 9 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting this Agreement. The parties acknowledge and agree that each has had the opportunity to seek and utilize legal counsel in the drafting of, review of, and entry into this Agreement. 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Vendor without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Vendor in violation of this provision shall be a breach of this Agreement by Vendor. 13.9 Subcontracts. No subcontract shall be entered into by the Vendor with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Vendor is responsible for performance under this Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any subcontract shall be a material breach of this Agreement by Vendor. 13.10 Rights and Remedies. No provision in this Agreement shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Agreement. The failure of the Town to insist upon the strict performance of any term or condition of this Agreement or to exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the Town’s acceptance of and payment for services, shall not release the Vendor from any responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Agreement. 13.11 Attorneys’ Fees. In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Agreement or on account of any breach or default hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’ fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall be deemed to have accrued on the commencement of such action and shall be enforced whether or not such action is prosecuted through judgment. 13.12 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 13.13 Offset. A. Offset for Damages. In addition to all other remedies at law or equity, the Town may offset from any money due to the Vendor any amounts Vendor owes to the Town for damages resulting from breach or deficiencies in performance or breach of any obligation under this Agreement. 10 B. Offset for Delinquent Fees or Taxes. The Town may offset from any money due to the Vendor any amounts Vendor owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Grady E. Miller, Town Manager With copy to: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney If to Vendor: Heinfeld, Meech, & Co., P.C. 10120 N. Oracle Rd. Tucson, Az. 85704 Attn: Diane Bradley, Partner or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 13.15 Confidentiality of Records. The Vendor shall establish and maintain procedures and controls that are acceptable to the Town for the purpose of ensuring that information contained in its records or obtained from the Town or from others in carrying out its obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Vendor’s duties under this Agreement. Persons requesting such information should be referred to the Town. Vendor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Vendor as needed for the performance of duties under this Agreement. 11 13.16 Records and Audit Rights. To ensure that the Vendor and its subcontractors are complying with the warranty under subsection 13.17 below, Vendor’s and its subcontractor’s books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Vendor and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit (A) evaluation and verification of any invoices, payments or claims based on Vendor’s and its subcontractors’ actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Agreement and (B) evaluation of the Vendor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to audit Records as set forth in this subsection, Vendor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Vendor pursuant to this Agreement. Vendor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this subsection. The Town shall give Vendor or its subcontractors reasonable advance notice of intended audits. Vendor shall require its subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-4401, the Vendor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Vendor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 13.18 Israel. Vendor certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 13.19 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the documents shall govern in the order listed herein. 13.20 Non-Exclusive Contract. This Agreement is entered into with the understanding and agreement that it is for the sole convenience of the Town. The Town reserves the right to obtain like goods and services from another source when necessary. 12 [SIGNATURES CONTINUE ON FOLLOWING PAGE] EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND HEINFELD, MEECH & CO, PC [RFP, Scope & Proposal] See following pages. EXHIBIT B TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND HEINFELD, MEECH & CO, PC, [Fee Schedule] See following pages. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first set forth above. “Town” TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation Grady E. Miller, Town Manager ATTEST: Elizabeth A. Klein, Town Clerk APPROVED AS TO FORM: Aaron D. Arnson, Town Attorney [SIGNATURES CONTINUE ON FOLLOWING PAGES] Elizabeth A. Klein (Jun 2, 2021 11:07 PDT) Elizabeth A. Klein “Contractor” ____________________________________, By: Name: Title: Heinfeld, Meech, & Co., PC Diane Bradley Partner - Administration 919425.2 TOWN OF FOUNTAIN HILLS FINANCE DIVISION REQUEST FOR PROPOSALS Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 SOLICITATION INFORMATION AND SELECTION SCHEDULE Solicitation Title: Financial Auditing Services Release Date: March 17, 2021 Advertisement Dates: March 17 and 24, 2021 – Fountain Hills Times March 18 and 25, 2021 – Arizona Business Gazette Final Date for Inquires April 5, 2021 MANDATORY Pre-Submittal Conference: April 14, 2021 10 a.m. (local time, Phoenix, Arizona) Fountain Hills Town Hall Council Chambers 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Proposal Due Date and Time: April 21, 2021 5 p.m. (local time, Phoenix, Arizona) Bid Opening Date April 22, 2021 3 p.m. (local time, Phoenix, Arizona) Fountain Hills Town Hall Council Chambers 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Shortlist Announced for Oral Interviews: Oral Interviews (if necessary) Target Town Council Award Date: April 26, 2021 April 30, 2021 June 1, 2021 Anticipated Agreement Start Date: June 2, 2021 Town Representative: Robert Durham, Procurement Officer *In the event that a Vendor cannot be selected based solely on Proposals submitted, Oral Interviews may be conducted at the Town’s sole discretion. ** The Town of Fountain Hills reserves the right to amend the solicitation schedule as necessary. EXHIBIT A TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 i TABLE OF CONTENTS Section A Page I. RFP Process, Award of Agreement A-1 II. Proposal Format; Scoring A-6 III. Oral Interviews; Scoring A-9 IV. Vendor Information Form A-10 Section B Sample Professional Services Agreement B TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-1 PART I. RFP PROCESS; AWARD OF AGREEMENT 1.1 Purpose; Scope of Work. The Town of Fountain Hills (the “Town”) is issuing this Request For Proposals (this “RFP”) seeking proposals (“Proposals”) from qualified, licensed firms (“Vendors”) interested in providing professional services consisting of financial auditing services (the “Services”), as more particularly described in the Scope of Work attached to the sample Professional Services Agreement as Exhibit B, and incorporated herein by reference. In accordance with the Town’s Procurement Code, the Town will accept sealed Proposals for the Services specified in the Scope of Work. 1.2 Preparation/Submission of Proposal. Vendors are invited to participate in the competitive selection process for the Services outlined in this RFP. Responding parties shall review their Proposal submissions to ensure the following requirements are met. A. Irregular or Non-responsive Proposals. The Town shall consider as “irregular” or “non-responsive” and reject any Proposal not prepared and submitted in accordance with this RFP, or any Proposal lacking sufficient information to enable the Town to make a reasonable determination of compliance to the minimum qualifications. Unauthorized conditions, limitations, or provisions shall be cause for rejection. Proposals may be deemed non - responsive at any time during the evaluation process if, in the sole opinion of the Town Manager or authorized designee, any of the following are true: (1) Vendor does not meet the minimum required skill, experience or requirements to perform or provide the Services. (2) Vendor has a past record of failing to fully perform or fulfill contractual obligations. (3) Vendor cannot demonstrate financial stability. (4) Vendor’s Proposal contains false, inaccurate or misleading statements that, in the opinion of the Town Manager or authorized designee, are intended to mislead the Town in its evaluation of the Proposal. B. Submittal Quantities. Interested Vendors must submit one original and four copies (five total submittals) of the Proposal. In addition, interested parties must submit one original copy of the Proposal on a USB drive in printable Adobe format (or other format approved by the Town). Failure to adhere to the submittal quantity criteria shall result in the Proposal being considered non-responsive. C. Required Submittal. The Proposal shall be submitted with a cover letter with an original ink signature by a person authorized to bind the Vendor. Proposals submitted without a cover letter with an original ink signature by a person authorized to bind the Vendor shall be considered non-responsive. The Proposal shall be a maximum of fifteen pages to address the Proposal criteria (excluding resumes and the Vendor Information Form, but including the materials necessary to address project understanding, general information, organizational chart, photos, tables, graphs, and diagrams). Each page side (maximum 8 1/2” x TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-2 11”) with criteria information shall be counted. However, one page may be substituted with an 11” x 17” sheet of paper, folded to 8 1/2” x 11”, showing a proposed project schedule or organizational chart and only having information on one side. Cover, back, table of contents and tabs may be used and shall not be included in the page count, unless they include additional project-specific information or Proposal criteria responses. The minimum allowable font for the Proposal is 11 pt, Arial or Times New Roman. Failure to adhere to the page limit, size and font criteria shall result in the Proposal being considered non-responsive. Emailed Proposals will not be considered. D. Vendor Responsibilities. All Vendors shall (1) examine the entire RFP, (2) seek clarification of any item or requirement that may not be clear, (3) check all responses for accuracy before submitting a Proposal and (4) submit the entire Proposal by the Proposal Due Date and Time. Late Proposals will not be considered. A Vendor submitting a late Proposal shall be so notified. Negligence in preparing a Proposal shall not be good cause for withdrawal after the Proposal Due Date and Time. E. Sealed Submittals. All Proposals shall be sealed and clearly marked with the RFP title, Financial Auditing Services, on the lower left hand corner of the mailing envelope. A return address must also appear on the outside of the sealed Proposal. The Town is not responsible for the pre-opening of, post-opening of, or the failure to open, any Proposals not properly addressed or identified. F. Pricing. The Vendor shall submit the same number of copies of the Fee Proposal as described in Subsection 1.2(B) (Submittal Quantities) in a separate, sealed envelope enclosed with the Vendor’s Proposal. Pricing shall be inclusive of all of the Services in the Scope of Work as described in the Professional Services Agreement in Exhibit B. A sample Fee Proposal is attached to the Professional Services Agreement as Exhibit C. G. Address. All Proposals shall be directed to the following address: Procurement Officer, 16705 East Avenue of the Fountains, Fountain Hills, Arizona 85268, or hand-delivered to the Procurement Officer at Town Hall by the Proposal Due Date and Time indicated on the cover page of this RFP. H. Pricing Errors. If price is a consideration and in case of error in the extension of prices in the Proposal, the unit price shall govern. Periods of time, stated as numbe r of days, shall be calendar days. I. Proposal Irrevocable. In order to allow for an adequate evaluation, the Town requires the Proposal to be valid and irrevocable for 90 days after the Proposal Due Date and Time indicated on the cover of this RFP. J. Amendment/Withdrawal of Proposal. At any time prior to the specified Proposal Due Date and Time, a Vendor (or designated representative) may amend or withdraw its Proposal. Any erasures, interlineations, or other modifications in the Proposal shall be initialed in original ink by the authorized person signing the Proposal. Emailed Proposal amendments or withdrawals will not be considered. No Proposal shall be altered, amended or withdrawn after the specified Proposal Due Date and Time. TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-3 1.3 Cost of Proposal Preparation. The Town does not reimburse the cost of developing, presenting or providing any response to this solicitation. Proposals submitted for consideration should be prepared simply and economically, providing adequate information in a straightforward and concise manner. The Vendor is responsible for all costs incurred in responding to this RFP. All materials and documents submitted in response to this RFP become the property of the Town and will not be returned. 1.4 Inquiries. A. Written Inquiries. Any question related to the RFP, including any part of the Scope of Work, shall be directed to the Town Representative whose name appears on the cover page of this RFP. Questions shall be submitted in writing by the date indicated on the cover page of this RFP. In the event the Town offices are closed on the Final Date for Inquiries, the Vendor may submit the question(s) to the Town Representative via e-mail or voicemail. Any correspondence related to the RFP shall refer to the title and number, page and paragraph. However, the Vendor shall not place the RFP number and title on the outside of any envelope containing questions, because such an envelope may be identified as a sealed Proposal and may not be opened until the Proposal Due Date and Time. B. Inquiries Answered. Verbal or telephone inquiries directed to Town staff will not be answered. Within two business days following the Final Date for Inquiries listed on the cover page of this RFP, all questions received in writing or via email will be answered by an email addressed to all parties who obtained an RFP package from the Town’s website and who provided an email address to the Town. No questions, submitted in any form, will be answered after the Final Date for Inquiries. C. Pre-Submittal Conference. A Pre-Submittal Conference may be held. If scheduled, the date and time of this conference will be indicated on the cover page of this RFP. This conference may be designated as mandatory or non-mandatory on the cover page of this RFP. Additionally, if the Pre-Submittal Conference is designated as mandatory, failure to attend shall render that Vendor’s Proposal non-responsive. Vendors are strongly encouraged to attend those Pre-Submittal Conferences designated as non-mandatory. The purpose of this conference will be to clarify the contents of this RFP in order to prevent any misunderstanding of the Town’s requirements. Any doubt as to the requirements of this RFP or any apparent omission or discrepancy should be presented to the Town at this conference. The Town will then determine if any action is necessary and may issue a written amendment or addendum to the RFP. Oral statements or instructions will not constitute amendments or addenda to this RFP. 1.5 Addenda. Any addendum issued as a result of any change in this RFP shall become part of the RFP and must be acknowledged in the Proposal submittal. Failure to indicate receipt of the addendum shall result in the Proposal being rejected as non-responsive. 1.6 Payment Requirements; Payment Discounts. Any Proposal that requires payment in less than 30 calendar days shall not be considered. Payment discounts of 30 calendar days or less will not be deducted from the Proposal Price in determining the low Proposal. The Town shall be entitled to take advantage of any payment discount offered, provided payment is made within the discount period. Payment discounts shall be indicated on Price Sheet. TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-4 1.7 Federal Excise Tax; Transaction Privilege Tax. The Town is exempt from Federal Excise Tax, including the Federal Transportation Tax. Transaction Privilege Tax, if any, shall be included in the unit price for each line item. It shall not be considered a lump sum payment item. 1.8 Public Record. All Proposals shall become the property of the Town and shall become a matter of public record available for review, subsequent to the award notification, in accordance with the Town’s Procurement Code. 1.9 Confidential Information. If a Vendor believes that a Proposal or protest contains information that should be withheld from the public record, a statement advising the Procurement Officer of this fact shall accompany the submission and the information shall be clearly identified. The information identified by the Vendor as confidential shall not be disclosed until the Procurement Officer makes a written determination. The Procurement Officer shall review the statement and information with the Town Attorney and shall determine in writing whether the information shall be withheld. If the Town Attorney determines that it is proper to disclose the information, the Procurement Officer shall inform the Vendor in writing of such determination. 1.10 Vendor Licensing and Registration. Prior to the award of the Agreement, the successful Vendor shall be registered with the Arizona Corporation Commission and authorized to do business in Arizona. The Vendor shall provide licensure information with the Proposal. Corporations and partnerships shall be able to provide a Certificate of Good Standing from the Arizona Corporation Commission. A Town of Fountain Hills business license is also required. 1.11 Certification. By submitting a Proposal, the Vendor certifies: A. No Collusion. The submission of the Proposal did not involve collusion or other anti-competitive practices. B. No Discrimination. It shall not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246. C. No Gratuity. It has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a Town employee, officer or agent in connection with the submitted Proposal. It (including the Vendor’s employees, representatives, agents, lobbyists, attorneys, and subcontractors) has refrained, under penalty of disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process with any person who may play a part in the selection process, including the Selection Committee, elected officials, the Town Manager, Assistant Town Managers, Department Directors, and other Town staff. All contact must be addressed to the Town’s Procurement Officer. Any attempt to influence the selection process by any means shall void the submitted Proposal and any resulting Agreement. D. Financial Stability. It is financially stable, solvent and has adequate cash reserves to meet all financial obligations including any potential costs resulting from an award of the Agreement. TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-5 E. No Signature/False or Misleading Statement. The signature on the cover letter of the Proposal and the Vendor Information Form is genuine and the person signing has the authority to bind the Vendor. Failure to sign the Proposal and the Vendor Information Form, or signing either with a false or misleading statement, shall void the submitted Proposal and any resulting Agreement. F. Professional Services Agreement. In addition to reviewing and understanding the submittal requirements, it has reviewed the attached sample Professional Services Agreement including the Scope of Work and other Exhibits. 1.12 Award of Agreement. A. Selection. A Selection Committee composed of representatives from the Town will conduct the selection process according to the schedule listed on the cover page of this RFP. Proposals shall be opened at the time and place designated on the cover page of this RFP. The name of each Vendor and the identity of the RFP for which the Proposal was submitted shall be publicly read and recorded in the presence of witnesses. PRICES SHALL NOT BE READ. The Selection Committee shall award the agreement to the responsible and responsive Vendor whose Proposal is determined, in writing, to be the most advantageous to the Town and best meets the overall needs of the Town taking into consideration the evaluation criteria set forth in this RFP. The amount of applicable Transaction Privilege or Use Tax of the Town shall not be a factor in determining the most advantageous Proposal. After the Town has entered into an Agreement with the successful Vendor, the successful Proposal and the scoring documentation shall be open for public inspection. B. Line Item Option. Unless the Proposal states otherwise, or unless otherwise provided within this RFP, the Town reserves the right to award by individual line item, by group of line items, or as a total, whichever is deemed most advantageous to the Town. C. Multiple Award. The Town, at its sole discretion, may elect to enter into Agreements with multiple Vendors who are qualified to provide the Services. The final terms and conditions of the proposed Agreement will be negotiated by the Town with the successful offerors. D. Form of Agreement. The selected Vendor will be required to execute the Town’s standard Professional Services Agreement in a form acceptable to the Town Attorney. A sample of the standard agreement is included with this RFP. If the Town is unsuccessful in negotiating an Agreement with the highest-scoring Vendor, the Town may then negotiate with the second, then third, highest-scoring Vendor until an Agreement is executed. Town Council approval may be required. The Town reserves the right to terminate the selection process at any time. E. Waiver; Rejection; Reissuance. Notwithstanding any other provision of this RFP, the Town expressly reserves the right to: (1) waive any immaterial defect or informality, (2) reject any or all Proposals or portions thereof and (3) cancel or reissue an RFP. TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-6 F. Protests. Any Vendor may protest this RFP, the proposed award of an Agreement, or the actual award of an Agreement. All protests will be considered in accordance with the Town Procurement Code. 1.13 Offer. A Proposal is an offer to contract with the Town based upon the terms, conditions and specifications contained in this RFP and the Vendor’s responsive Proposal, unless any of the terms, conditions, or specifications are modified by a written addendum or agreement amendment. Provided, however, that no contractual relationship shall be established until the Vendor has signed, and the Town has approved, a professional services agreement between the Town and the Vendor in the form acceptable to the Town Attorney. A sample Professional Services Agreement is included herein. PART II. PROPOSAL FORMAT; SCORING 2.1 Evaluation Process. Each submittal will be reviewed for compliance with the Proposal requirements by the Selection Committee. If necessary, the Selection Committee may conduct oral interviews with up to three of the highest ranked Vendors based upon the Proposal submittal scoring. 2.2 Proposal Format and Scoring. Proposals shall be organized and submitted in the format as outlined below. Failure to conform to the designated format, standards and minimum requirements may result in a determination that the Proposal is non-responsive. Additionally, the Selection Committee will evaluate and award points to each Proposal based upon the evaluation criteria as outlined in this document. Points listed below are the maximum number of points possible for each criteria; there is no minimum number that the Selection Committee must award. A. General Information - 10 pts. (1) One page cover letter as described in Subsection 1.2(C) (Required Submittal). (2) Provide Vendor identification information. Explain the Vendor’s legal organization including the legal name, address, identification number and legal form of the Vendor (e.g., partnership, corporation, joint venture, limited liability company, sole proprietorship). If a joint venture, identify the members of the joint venture and provide all of the information required under this section for each member. If a limited liability company, provide the name of the member or members authorized to act on the company’s behalf. If the Vendor is a wholly owned subsidiary of another company, identify the parent company. If the corporation is a nonprofit corporation, provide nonprofit documentation. Provide the name, address and telephone number of the person to contact concerning the Proposal. (3) Identify the location of the Vendor’s principal office and the local work office, if different. Include any documentation that supports the Vendor’s authority to provide services in Arizona. TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-7 (4) Provide a general description of the Vendor’s organization, including years in business. (5) Identify any contract or subcontract held by the Vendor or officers of the Vendor that have been terminated within the last five years. Briefly describe the circumstances and the outcome. (6) Identify any claims arising from a contract which resulted in litigation or arbitration within the last five years. Briefly describe the circumstances and the outcome. (7) Vendor Information Form (may be attached as separate appendix). B. Experience and Qualifications of the Vendor - 20 pts. (1) Provide a detailed description of the Vendor’s experience in providing similar services to municipalities or other entities of a similar size to the Town, specifically relating experience with respect to financial auditing services. (2) Provide a list of at least three current or former municipal clients of a similar size or similar operation to the Town in which work has been performed. This list shall include, at a minimum, the following: (a) Name of company or organization. (b) Contact name. (c) Contact address, telephone number and e-mail address. (d) Type of services provided. (e) Dates of service (3) Demonstrate involvement and support of national and local industry professional organizations. (4) Provide an affirmative statement that the firm is independent of the Town as defined by auditing standards generally accepted in the United States and the U.S. General Accounting Office’s Generally Accepted Government Auditing Standards. (5) Affirm that the firm is properly licensed for public practice as a certified public accountant. Affirm that your organization meets the independence requirements of Standards for Audit of Governmental organizations, Programs, Activities and Functions, published by the U.S. GAO or any subsequent amendments or superseding revisions. The above information must be current, as this will be used to verify references. Inability of the Town to verify references shall result in the Proposal being considered non-responsive. TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-8 C. Key Positions - 20 pts. (1) Identify each key personnel member that will render services to the Town including title and relevant experience required, including the proposed project manager and project staff. (2) Indicate the roles and responsibilities of each key position. Include senior members of the Vendor only from the perspective of what their role will be in providing services to the Town. (3) If a subcontractor will be used for all work of a certain type, include information on this subcontractor. A detailed plan for providing supervision must be included. (4) Attach a résumé and evidence of certification, if any, for each key personnel member and/or subcontractor to be involved in this project. Résumés should be attached together as a single appendix at the end of the Proposal and will not count toward the Proposal page limit. However, each resume shall not exceed two pages in length. (5) Describe any specialized skills, training, or background in public finance by assigned individuals. This may include participation in State or National professional organizations and speaker or instructor roles in conferences or seminars. D. Project Approach - 20 pts. (1) Describe the Vendor’s approach to performing the required Services in the Scope of Work described in the Professional Services Agreement in Exhibit B, and its approach to contract management, including its perspective and experience on partnering, customer service, quality control, scheduling and staff. Include hardware and software that will be utilized on site. (2) Describe any alternate approaches if it is believed that such an approach would best suit the needs of the Town. Include rationale for alternate approaches, and indicate how the Vendor will ensure that all efforts are coordinated with the Town’s Representatives and within necessary time frames. (3) Describe the Vendor’s ability to gather and process audit evidence efficiently using technology. E. Project Schedule - 20 pts. Provide a project schedule showing key project milestones and deliverables. The schedule shall demonstrate Vendor’s ability to meet the designated milestones as listed below. All Services of the successful Vendor must reach full completion and shall not exceed a 60 day period after the Notice to Proceed has been issued by Town. Assumptions used in developing the schedule shall be identified and at a minimum the proposed schedule shall include the following dates. TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-9 (1) Proposed Kick-Off Meeting (2) Phase I Report Due Date (3) Phase I Report Presentation Date (4) Phase II Implementation Start Date (5) Project Completion Date………….NLT November 30th annually F. Pricing - 10 pts. (1) Vendor shall submit the same number of copies of the Fee Proposal as described in Subsection 1.2(F) (Pricing) in a separate, sealed envelope enclosed with the Vendor’s Proposal with the signature of the representative of the Vendor who is authorized to make such an offer. The Fee Proposal must be provided in the format attached as Exhibit C of the Professional Services Agreement. The Fee Proposal shall list the individual cost for each of the program expenses and shall be provided in a spreadsheet format to enable the Town staff to determine (1) total labor hours, (2) key team member(s) proposed for each task and sub-task and (3) number of management, engineering, technical, drafting and support personnel hours proposed for the project. The hourly rate, name of the team member and staff classification shall be included in the spreadsheet. Identify all other costs to be billed to the project, including project expenses (no mark-up on expenses will be allowed) and subcontractor fees. (2) While fees are not a primary evaluation criterion, firms should be prepared to present and discuss pricing proposals for this type of engagement. The proposal should contain all pricing information relative to performing the Services described in this RFP. Include the method used for charging for any additional services that may be requested by Town staff or as a result of the specific recommendations included in any report issued on this engagement (GASB 34). Total Possible Points for Proposal: 100 PART III. ORAL INTERVIEWS; SCORING In the event that a Vendor cannot be selected based solely on the Proposals submitted, up to three Vendors may be selected for oral interviews. The selected Vendors will be invited to participate in discussions with the Selection Committee on the date indicated on the cover page of this RFP and awarded points based upon the criteria as outlined below. Vendors may be given additional information for these oral interviews. These discussions will relate less to the past experience and qualifications already detailed in the Proposals and relate more to identification of the Vendor’s project approach and to an appraisal of the people who would be directly involved in this Services for this RFP. Oral Interview 20 Experience and Qualifications of the Vendor 40 Key Positions 40 Project Approach 100 Total Possible Points for Oral Interview Total Points Possible for this RFP: 200 TOWN OF FOUNTAIN HILLS SECTION A FINANCE DIVISION 919425.2 A-10 IV.VENDOR INFORMATION FORM By submitting a Proposal, the submitting Vendor certifies that it has reviewed the administrative information and draft of the Professional Services Agreement’s terms and conditions and, if awarded the Agreement, agrees to be bound thereto. VENDOR SUBMITTING PROPOSAL FEDERAL TAX ID NUMBER PRINTED NAME AND TITLE AUTHORIZED SIGNATURE ADDRESS TELEPHONE FAX # CITY STATE ZIP DATE WEB SITE: E-MAIL ADDRESS: SMALL, MINORITY, DISADVANTAGED AND WOMEN-OWNED BUSINESS ENTERPRISES (check appropriate item(s): Small Business Enterprise (SBE) Minority Business Enterprise (MBE) Disadvantaged Business Enterprise (DBE) Women-Owned Business Enterprise (WBE) Has the Vendor been certified by any jurisdiction in Arizona as a minority or woman-owned business enterprise? If yes, please provide details and documentation of the certification. TOWN OF FOUNTAIN HILLS SECTION B FINANCE DIVISION 1855004.1 See attached Professional Services Agreement Sample 919425.2 EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND [Consultant’s Proposal] See following pages. 919425.2 EXHIBIT B TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND [Scope of Work] See following page(s). 919425.2 EXHIBIT C TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND [Fee Proposal] See following page(s). The Fee Proposal shall list the individual cost for each of the program expenses and shall be provided in a spreadsheet format to enable the Town staff to determine (1) total labor hours, (2) key team member(s) proposed for each task and sub-task and (3) number of management, engineering, technical, drafting and support personnel hours proposed for the project. The hourly rate, name of the team member and staff classification shall be included in the spreadsheet. Identify all other costs to be billed to the project, including project expenses (no mark-up on expenses will be allowed) and subcontractor fees. EXHIBIT B SCOPE OF WORK Contractor will: • The Agreement between the Town and the selected auditing firm will be for a one year term and may be renewed up to four (4) successive one-year (1) terms. The first audit will be for the fiscal year ending in 2021. • Prepare annual year-end adjusting journal entries, draft financial statements, notes to financial statements, supplementary information, and Expenditure Limitation Report utilizing general ledger, accounting records, Town prepared schedules, and other information provided by Town personnel. • Audit basic financial statements of the Town of Fountain Hills, Az. (“Town”) and provide an opinion as to whether the financial statements are fairly presented in all material respects, and are in conformity with U.S. generally accepted accounting principles. Audits will be conducted in accordance with U.S. generally accepted auditing standards, as set forth by the Auditing Standards Board of the American Institute of Certified Public Accountants; the standards for financial audits contained in Generally Accepted Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of Office of Management and Budget’s Uniform Guidance. • If necessary, prepare an annual Single Audit as required by law. • In connection with the above audits, provide supplementary information required by generally accepted accounting principles, including management’s discussion and analysis, and budgetary comparison schedules. • Provide an audited schedule of expenditures of Federal awards, and report on the fairness of this information when considered in relation to the financial statements as a whole. • Report on internal control related to the financial statements and compliance with laws, regulations and the provisions of contracts and grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Generally Accepted Government Auditing Standards. • Report on internal control related to major programs and provide an opinion (or disclaimer of opinion) on compliance with laws, regulations and the provisions of contracts and grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Uniform Guidance. • Provide professional education opportunities to Town personnel annually. In addition to the audit services described above, the Contractor shall be available for intermittent requests for information relevant to technical accounting issues and other significant issues that may affect the Town’s financial statements. All working papers and reports must be retained by the Contractor for a period of five years beyond the applicable contract period unless the firm is notified otherwise, in writing, by the Town. Milestones/Key Dates The CONTRACTOR shall comply with the following deliverables with the dates associated: 1. A draft copy of the financial statements, audit reports and management letter shall be delivered to the Town’s finance department on or before October 31st of each year. 2. An exit conference will then be held to review the financial statements, the audit reports and findings on or before November 15th of each year. 3. Contractor shall deliver to the Town’s finance department up to 20 copies of the annual reports on or before November 30th of each year. All but one copy of the annual reports and management letter shall be printed in color and bound for distribution. 4. Contractor shall, upon request by the Town, make an oral presentation of the annual reports to the Town Council. 5. Contractor shall be available by request to supply the Finance Director information relevant to technical accounting issues and other significant issues that may affect the Town’s financial statements. COPY TABLE OF CONTENTS CONTENTS PAGE General Information Cover Letter ............................................................................................................................. 1 Vendor Identification Information ........................................................................................... 2 Location of Offices .................................................................................................................. 2 General Description of Organization ....................................................................................... 2 Terminated Contracts ............................................................................................................... 3 Litigations and Arbitrations ..................................................................................................... 3 Vendor Information Form ........................................................................................................ 3 Experience and Qualifications of the Vendor Detailed Description of Experience ......................................................................................... 3 References ................................................................................................................................ 5 National and Local Industry Involvement ................................................................................ 6 Firm Independence ................................................................................................................... 7 License to Practice in Arizona ................................................................................................. 7 Key Positions Key Personnel Members .......................................................................................................... 7 Roles and Responsibilities of Key Positions ............................................................................ 7 Subcontractor ........................................................................................................................... 8 Resumes ................................................................................................................................... 8 Project Approach Audit Objectives....................................................................................................................... 9 Audit Phases and Work Plan .................................................................................................. 10 Extent and Use of EDP Software and Other Technology ...................................................... 12 Gaining an Understanding of Internal Controls ..................................................................... 12 Review and Quality Control Procedures ................................................................................ 12 Customer Service Philosophy ................................................................................................ 13 Alternate Approaches ............................................................................................................. 13 Ability to Gather and Process Audit Evidence Using Technology ........................................ 14 Use of Data Analytics Audit Methodology ............................................................................ 14 Project Schedule.......................................................................................................................... 15 Exhibits 1. Vendor Information Form 2. Key Personnel Resumes 2 VENDOR IDENTIFICATION INFORMATION Legal Name Heinfeld, Meech & Co., P.C. Corporate Address 10120 N. Oracle Rd., Tucson, AZ 85704 EIN 86-0558065 Legal form of vendor S-corporation (in good standing in Arizona) LOCATION OF OFFICES Our corporate headquarters is located at 10120 N. Oracle Rd., Tucson, AZ 85704. This engagement for the Town of Fountain Hills will be supervised by our Phoenix office, located at 3033 N. Central Ave., Suite 300, Phoenix, AZ 85012. The range of services performed by all of our offices is provided below. Assurance Services and Reporting:  Financial Statement audits  Single Audits  Agreed-upon procedures  Compliance audits  Preparation of governmental annual financial reports for award submission to GFOA  Assistance with financial statement preparation  Popular Annual Financial Reports (PAFRs) Consulting Services:  Recommendations for business operations  Reviews of accounting policies and procedures  On-site presentations and staff trainings  Fraud investigations  Cost allocation plans  Procurement reviews  Preparation of internal audit manuals  Compensation studies Heinfeld, Meech & Co., P.C. is a properly licensed Arizona Certified Public Accounting firm (license #463) and is a member firm of the American Institute of Certified Public Accountants. GENERAL DESCRIPTION OF ORGANIZATION Founded in 1986, we specialize in providing auditing and consulting services to local governmental and non-profit entities. Our leadership in industry programs, employee development, financial reporting excellence and quality control demonstrate our focus on governmental accounting and our commitment to keeping our clients and our own professionals informed about significant developments in the industry. The firm’s staff totals 54 with offices in Phoenix, Tucson, and Flagstaff, Arizona. Our entire client service team is dedicated to working with Arizona local governments and non-profits. Because of this specialization, we can assure you that the Town will receive high-quality, local service throughout the engagement. HeinfeldMeech’s staffing currently includes the following categories: Partners 12 Staff Associates 12 Managers 10 Audit Interns 3 In-Charge Accountants 12 Administrative 5 3 TERMINATED CONTRACTS Contracts are not renewed or otherwise terminated on occasion by either the firm or by the contracting entity. Per firm policy, HeinfeldMeech does not disclose information regarding former clients as it may violate the confidentiality requirements of contracts or other agreements between the firm and the entity. In addition, reasons for non-renewals or terminations by the contracting entity are typically not provided or made known by the contracting entity; however when the reason has become known it is generally due to the entity electing to obtain services from a firm that provided a lower fee arrangement. LITIGATION AND ARBITRATIONS Heinfeld, Meech & Co. is occasionally involved in responding to complaints or allegations that work performed by the firm failed to comply with professional standards. The firm and the professionals within the firm presently do not have any pending or ongoing litigation, formal investigations or administrative proceedings related to attestation or other professional services. In addition, we have no record of substandard work and there has been no disciplinary action taken or pending against the firm with regulatory bodies or professional organizations. Within the past five years, there has been one claim filed with the firm’s Professional Liability Insurance in the last five years related to complaints or allegations. This claim was resolved to the satisfaction of all parties. VENDOR INFORMATION FORM The completed form has been included in Exhibit 1. EXPERIENCE AND QUALIFICATIONS OF THE VENDOR Detailed Description of Experience HeinfeldMeech is an industry leader for governmental audit services in the State of Arizona, currently providing assurance services to over 185 governmental entities. Our firm is a member of the AICPA Governmental Audit Quality Center (GAQC), which is committed to the highest standards of quality in governmental audits. As a national community of CPA firms, this membership provides our team with access to best practices and tools that help ensure the quality of our audits while providing the up-to-date information needed to serve our clients. Our specialization in the governmental and nonprofit industries provides you with the security that serving these industries is our first priority, as we have no commercial, for-profit, or tax clients that demand our time or resources. Our focus on the public sector also ensures that the assigned audit team will be properly trained and supervised to address the unique audit and reporting challenges of local governments and non-profits. Two firm partners have served as members of the Executive Committee of the GAQC. 4 Below is a listing of municipalities for whom our firm has provided financial auditing services within the past year; further details about these engagements will be provided upon request. Municipality Name Audit Years Municipality Name Audit Years Town of Fountain Hills 2016-2020 City of Tucson 2017-2020 City of Scottsdale 2015-2020 Town of Oro Valley 2007-2020 City of Tempe 2005-2020 City of Tombstone 2009-2020 City of Chandler 2003-2020 City of Maricopa 2006-2020 Town of Gilbert 2004-2020 City of Sierra Vista 1991-2020 City of Buckeye 2019-2020 City of San Luis 2016-2020 City of Surprise 2018-2020 City of Yuma 1995-2020 Town of Carefree 2020 Town of Prescott Valley 2010-2020 City of Eloy 2013-2020 Town of Payson 2017-2020 As HeinfeldMeech primarily provides services to governmental entities, we commit significant resources to training our professional staff on governmental reporting standards and assisting our clients with the implementation of new reporting standards. This includes the participation by two of our partners on national AICPA committees. Participation on these committees also provides HeinfeldMeech with pre-issuance access and input to changes in GASB financial report requirements and audit methodology techniques. HeinfeldMeech has been assisting local governments with successful submissions of governmental annual financial reports for industry organization awards since 1986. Our firm reviews over half of the financial reports successfully submitted by Arizona local governments to GFOA for awards each year. In addition, several members of our firm, including two current audit managers, have served as Special Review Committee Members for the GFOA's CAFR certificate program. HeinfeldMeech also has considerable experience auditing federal programs under Uniform Guidance requirements, including over 40 percent of Single Audits completed each year for Arizona local governments. Due to our extensive experience and involvement on national industry committees, you can be assured that our audit teams are familiar with the current requirements for Federal programs testing and reporting. All supervisory staff of HeinfeldMeech are also required to obtain the Advanced Single Audit Certificate issued by the AICPA. As required by our profession and the State of Arizona, every three years HeinfeldMeech participates in a review of the firm’s system of quality controls. A report with a rating of pass was issued August 16, 2018, by the firm of Grant Bennett Associates, A.P.C. The quality control review included governmental audits performed by our firm, with an in-depth review of the working papers and reports. 5 References With 35 years of experience in the industry, HeinfeldMeech has performed over 4,100 audits for local governmental agencies, including over 175 within the past year. The following selection of references are Arizona municipalities whose financial statements have been audited by our firm with the past year. City of Chandler Contact: Kristi Smith, CPA, CFE, Accounting Manager MS 702/P. O. Box 4008, Chandler, AZ 85244-4008 (480) 782-2332 kristi.smith@chandleraz.gov Scope of work: Financial statement audit, Single Audit, review of annual report for GFOA submission, expenditure limitation report audit, HURF report, HUD-REAC agreed-upon procedures, ADEQ landfill assurance, and biennial agreed-upon procedures for development impact fees Audit dates: June 30, 2003 through 2020 City of Tempe Contact: Thomas Duensing, Deputy Internal Services Director P. O. Box 5002, Tempe, AZ 85280 (480) 350-8505 thomas_duensing@tempe.gov Scope of work: Financial statement audit, Single Audit, review of annual report for GFOA submission, HURF report, review of HUD REAC submission, expenditure limitation report audit, and biennial agreed-upon procedures for development impact fees Audit dates: June 30, 2005 through 2020 Town of Carefree Contact: Kandace French Contreras, CMC, Clerk/Treasurer P.O. Box 740, Carefree, AZ 85377 (480) 488-3686 kandace@carefree.org Scope of work: Financial statement audit, expenditure limitation report audit, HURF report, and financial statement audit of Carefree Water Company Audit dates: June 30, 2020 City of Buckeye Contact: William Kauppi, Chief Financial Officer 530 E. Monroe Ave., Buckeye, AZ 85340-2806 (623) 349-6161 wkauppi@buckeyeaz.gov Scope of work: Financial statement audit, Single Audit, expenditure limitation report audit, financial statement audits of community facility districts, review of annual report for GFOA submission, and biennial agreed-upon procedures for development impact fees Audit dates: June 30, 2019 and 2020 6 National and Local Industry Involvement We are involved with a number of industry organizations, committees and other activities. This provides our team with the opportunity to remain current on governmental audit and reporting issues. The involvement by our Arizona-based auditors and consultants includes:  Chris Goeman is a member of the Association of Government Accountants (AGA) Financial Management Standards Board.  Brittney Williams is a member of the AICPA PCPS Technical Issues Committee.  Brittney Williams and Corey Arvizu have both been members of the AICPA Governmental Audit Quality Center Executive Committee.  Joshua Jumper and Chris Goeman are Special Review Committee Members for the GFOA's financial report certificate program.  Christopher Heinfeld is a member of the DCPA (Digital CPA Conference) Advisory Board.  Eugene Park is a member of the AICPA Young Member Leadership Committee and the ASCPA Leadership and Growth Alliance Committee.  Jennifer Shields serves on the committee for the ASCPA Annual Governmental Accounting Conference.  Brittney Williams serves on the Financial Management Standards Board for the AGA.  We also frequently asked to share our expertise as presenters at conferences and trainings for organizations such as GFOAz, AGA, AICPA, and ASCPA. Our recent presentations include: Budgeting an Internal Audit Program (GFOAz 2021 Winter Conference) Single Audit Update (ASCPA 2021 Governmental Accounting Conference) Single Audit Developments Related to COVID-19 (GFOAz January 2021 Quarterly Training) Internal Controls over Compliance in a Single Audit (AICPA 2020 Governmental & Not-for-Profit Training Program) Effective and Efficient Single Audits (AICPA 2020 Governmental Accounting and Auditing Update) Capital Assets Reporting (AGA Phoenix Chapter lunch education seminar, May 2020) Fringe Benefits (GFOAz 2020 Winter Conference) Presenting to Governing Bodies (AICPA 2019 Governmental Accounting & Auditing Update Conference) Proactive Measures to Fight Fraud (ASCPA Northern Arizona Chapter Meeting, August 2019) Common Single Audit Findings & Exceptions (AICPA 2019 Not-for-Profit Industry Conference) Capital Assets through the Eyes of an Auditor (GFOAz 2019 Spring Training) What is a Single Audit? A Basic Background & Overview (AICPA Single Audit Fundamentals Series Webinar, November 2018) OPEB – The Time is Now! (AICPA 2018 National Governmental Accounting and Auditing Update) 7 Firm Independence We have established the proper procedures to query our employees for any possible independence issues for all of our firm’s audit engagements. We have determined that there are no independence issues as defined by auditing standards generally accepted in the United States of America and the U.S. General Accounting Office’s Government Auditing Standards (GAS) that would prevent us from issuing an opinion on the financial statements or financial reporting procedures of the Town of Fountain Hills. License to Practice in Arizona Heinfeld, Meech & Co., P.C. is a properly licensed Arizona certified public accounting firm (#463) and is a member firm of the American Institute of Certified Public Accountants. Ten firm partners and 17 other professional staff members are certified public accountants licensed in Arizona. In addition, all key professional staff assigned to this contract will be properly licensed to practice public accounting in the State of Arizona. KEY POSITIONS Key Personnel Members The supervisory staff for this engagement is planned as listed below. Due to the size of our firm and the breadth of our experience in the governmental industry, any losses in listed supervisory team members can be reassigned effectively to other auditors with similar qualifications. Any changes in key audit personnel will be approved by the Town prior to the proposed change. Engagement Partner – Jennifer L. Shields, CPA, CGFM Audit Supervisor – Joshua Jumper, CPA Roles and Responsibilities of Key Positions Direction and supervision over the audit team to ensure compliance with professional standards, as well as a high level of client service, includes the following. Responsibilities of the engagement partner include:  Assistance with scheduling and team assignments  Review of planning documentation and initial audit plan  On-site assistance as required for critical portions of the audit  Technical review of financial statements and working papers  Responsibility to address any concerns from Town management regarding audit matters  Responsibility to address and complete technical and complex audit procedures  Technical assistance to Town personnel  Authorization of issuance of audit reports to the Town and other parties 8 Responsibilities of the audit supervisor include: Assistance with planning of the audit engagement Planning and monitoring overall audit progress Fieldwork supervision when the engagement partner is not on-site Supervision of assigned associates during all phases of the audit Performance of testwork and evaluation of the Town’s internal controls as needed Evaluation of Town’s internal controls prior to substantive testing Evaluation of the Town’s financial records for compliance with generally-accepted accounting principles, federal and state laws, regulations, policies and procedures Additional analysis of Town’s accounts or performance of other audit work as necessary Responsibility to address and complete technical and complex audit procedures Technical assistance to Town personnel Initial reviews of working papers and certain compliance reports Our practice of providing a smaller, focused audit team led by an experienced supervisory associate creates efficiencies and reduces costs for audit engagements. However, if needed, other partners, managers and seniors will also be available to provide assistance. Subcontractor Our firm does not plan on utilizing a subcontractor for the completion of this engagement. Resumes Resumes for the assigned key team members, including information about their specialized skills, training and background in public finance, are provided in Exhibit 2. 9 PROJECT APPROACH Audit Objectives The following are audit objectives we expect to address for the financial statement audit conducted in accordance with Government Auditing Standards and Uniform Guidance for the Town. During the planning stage of the audit, we may identify additional objectives specific to the Town to be incorporated into our audit plan.  All cash and investments on the balance sheet are on hand, in transit, or on deposit with third parties (depositories) in the name of the Town.  Depositories are legally acceptable; adequate collateral has been pledged at depositories for the Town’s deposits; and separate depository accounts are maintained for each fund as required.  Cash balances reflect a proper cutoff of receipts and disbursements and are stated at the correct amount.  Payroll (wages, salaries, and benefits) disbursements are made only for work authorized and performed.  Payroll is computed using rates and other factors in accordance with contracts and relevant laws and regulations.  Expenditures and cash disbursements are properly recorded for goods or services authorized and received and related accounts payable have all been identified.  Expenditures for goods or services are authorized and in accordance with the budget and other regulations or requirements.  Expenditures for goods or services and related disbursements and liabilities have been recorded correctly as to account, fund, budget category, period, and amount.  All revenues resulting from valid transactions in this fiscal period have been recorded.  Revenues have been billed or charged and recorded at the correct amount and in the correct fund, and receivab les are stated at the net realizable amount.  Account balances and transactions are properly classified in the financial statements, and related disclosures are adequate.  Grants are administered, and grant revenues and expenditures are recorded, in accordance with grant provisions and related laws and regulations, including Uniform Guidance regulations, if applicable.  Capital assets have been recorded at the correct amount in the proper asset category and assigned an appropriate useful life over which the asset will be depreciated.  Fund balances and net position are properly stated.  Long-term liabilities of the Town and the related payments are properly recorded.  The Schedule of Federal Awards is properly stated in relation to the basic financial statements as a whole, if applicable. 10 Audit Phases and Work Plan This section provides an outline of work typically completed by HeinfeldMeech during each major phase of the audit. Audit Planning Audit planning procedures will begin at the time of the contract award. These procedures will develop the audit team’s understanding of the Town’s operations, will be used to clarify audit objectives, and will help with the development of a detailed audit plan.  Preparation and issuance of engagement letter  Conduct an entrance conference with key personnel as deemed necessary  Perform risk assessment procedures o Inquiries of management and staff o Preliminary analytical procedures o Observation of operations o Perform transaction walkthroughs o Engagement team discussions  Develop an understanding of client, the environment and internal controls o Review prior year financial statements and applicable accounting records o Review of industry guides, regulatory information, statutes, internal/external reports, etc. o Preparation of process and control memorandums o Completion and review of internal control questionnaires o Obtain understanding of information technology systems  Develop a preliminary judgment of materiality  Develop a detailed audit plan to include preparation of audit programs  Identification of major Federal programs for Single Audit, as applicable  Develop sampling scopes for tests of controls and compliance testing  Identify responsibilities and assign tasks to the audit staff and Town personnel  Submit audit questionnaires to audit liaison for assignment to Town staff  Other planning procedures, as deemed necessary 11 Audit Procedures Certain core audit procedures will be performed at the Town during scheduled fieldwork dates; however our firm also minimizes disruption for Town operations by conducting audit procedures from our office when appropriate and practical. Town management and staff should be available during any scheduled fieldwork dates for discussions and to provide requested materials.  Perform tests of key operational controls, such as: o Payroll and related benefits o Disbursements and accounts payable o Capital asset additions and deletions o Cash receipts, including taxes and charges for services  Develop and perform compliance tests for applicable compliance requirements  Perform substantive procedures over the Schedule of Expenditures of Federal Awards, if applicable  Perform substantive procedures on the primary financial statement accounts o Cash and investments o Receivables, including interfund balances o Capital assets o Payables, including accounts payable and accrued wages and benefits o Long-term debt, including compensated absences, bonds, loans, notes, and capital leases o Net position liability and related accounts o Intergovernmental revenues, including grants and contributions o Tax revenues o Charges for services (governmental and proprietary) o Other sources/uses, including interfund transfers, debt proceeds, and capital contributions o Payroll and related benefit expenditures/expenses o Goods and services expenditures/expenses o Debt service expenditures o Data analytic procedures on various account balances  Other necessary audit procedures, if applicable Audit Conclusion Audit conclusion procedures include the communication of the audit results to the Town’s management, quality control procedures over the audit, and drafting and final distribution of applicable audit reports.  Perform final analytical review procedures  Perform subsequent events review  Perform exit conferences with Town staff upon completion of audit  Perform final review of working papers and audit programs  Audit staff to draft applicable audit and compliance reports  Engagement partner to review financial statements and audit reports  Secondary partner review of financial statements and key audit documentation, in accordance with firm policy  Issuance of applicable audit communications 12 Extent and Use of EDP Software and Other Technology HeinfeldMeech utilizes the following technological resources during audit engagements:  Citrix server environment to ensure audit personnel have secured remote access to data throughout the audit;  CCH ProSystem fx Knowledge Coach audit software that provides customizable audit programs, interactive diagnostics, and automated workflow;  Microsoft basic software applications including word processing and spreadsheets to achieve our documentation and reporting objectives;  CaseWare IDEA Data Analysis software that will be utilized to audit large data volumes and perform sampling procedures. Gaining an Understanding of Internal Controls Auditing standards require us to obtain an understanding of internal controls to plan the audit and to assist in determining the nature, timing and extent of audit procedures to be performed. Our understanding of the Town’s internal control framework and related components will primarily be obtained through inquiry and discussions with management. In addition, an understanding of the Town’s internal controls over financial reporting will be completed and documented through a series of internal control questionnaires. Key controls will be tested though observation, inspection of documents and detail tests of transactions. Resources such as the Town’s budget, organizational charts, policy and procedure manuals, and assessment of information technology systems will be utilized accordingly to gain an understanding of the Town’s internal control structure. Review and Quality Control Procedures As required by quality control standards, HeinfeldMeech has developed and implemented quality control review procedures for the audit reports issued by the firm. The audit engagement partner is responsible for ensuring the financial and compliance audits issued comply with auditing standards generally accepted in the United States of America, Government Auditing Standards, Uniform Guidance, Arizona Revised Statutes, or other regulations, as applicable. Both the engagement partner and the audit manager perform quality control of the audit documentation requirements and adherence to audit standards throughout the audit. The engagement partner performs final quality control reviews on all reports and authorizes the release of the independent auditors’ report. Additional second quality control reviews by a non- engagement partner are completed for new industry areas, reports with complex or unusual accounting matters, or whenever deemed appropriate by the engagement partner. The quality control review process of the firm includes the following procedures –  Evaluation initial audit planning and risk assessment procedures by the engagement partner  Detailed working papers review by audit manager and engagement partner  Determination that audit procedures addressed relevant audit areas  Report referencing to disclosure checklist  Consideration of uncorrected audit adjustments, if any  Clearance of all open items prior to report issuance 13 Customer Service Philosophy The HeinfeldMeech approach to audit engagements has always been based upon a foundation of superior client service. To ensure that our teams are providing the best service possible, we request “report cards” at the end of each engagement year, asking our clients to rate their satisfaction. All client report cards are reviewed by the engagement partner and any concerns brought to our attention are addressed with the client immediately by either the engagement partner or our firm’s managing partner. Our firm’s satisfaction ratings are consistently high as demonstrated by the scores summarized below that were received from our audit clients within the past year. Our working relationships also rely upon open and regular communication with our clients and we recognize that your time is valuable and you often need assistance quickly. Our goal is to respond to all client questions within one workday whenever feasible. If your audit team happens to be unavailable, the Town also may request assistance from the other members of our firm. Since all members of our audit and consulting teams work exclusively with governmental and non- profit agencies, you know that you will receive knowledgeable assistance at any time throughout the year. As part of our dedication to high-quality client service, HeinfeldMeech will provide critical solutions and best practices throughout the audit and afterwards. Our commitment to providing resources to clients led to our annual conference on issues relevant to local governments, as well as other accounting and compliance trainings on a regular basis. As a client of the firm, the Town will receive a discount to attend these events. In addition to live trainings, our firm regularly publishes blog articles on accounting and management topics for governmental and non-profit audiences (http://bit.ly/HMarticles). In addition to our audit division, our firm also has a dedicated consulting division who specialize in providing year-round support to Arizona’s local governments. Unlike other firms who need to schedule additional projects around their existing audit contracts, our full-time consultants are available throughout the year to provide the Town with services according to your needs and priorities. Alternate Approaches No specific alternate approaches have been identified at this time; however procedures used during the planning stage of the will develop the audit team’s understanding of the Town’s operations, will be used to clarify audit objectives, and will help with the development of a detailed audit plan tailored to the Town. At the entrance meeting with the Town’s representatives, the audit team will discuss the plans and scope for the upcoming audit. 1 2 3 4 5 Courtesy & Helpfulness of Firm Associates Project Team's Performance Overall Quality of Communication Assistance with Improvements & Recommendations 14 Ability to Gather and Process Audit Evidence Using Technology For several years, HeinfeldMeech has been conducting remote audits, and continually invests in resources that allow us to perform remote audits efficiently and effectively. Some of the technologies and tools we utilize to conduct remote audits are listed below. CCH ProSystem fx Engagement Organizer is used to simplify the process of requesting, receiving and tracking audit documentation. Clients log into the Organizer to view all requests, upload documents, and make notes to the audit team. The Organizer even tracks due dates. All of these features make it easy for clients to see which requests are still outstanding. In addition, clients can grant multiple staff members access to the Organizer to allow for each department to manage their own audit requests. Below is a screenshot from an Engagement Organizer: Video technologies such as Microsoft Teams and Zoom are used to conduct interviews and internal control walkthroughs with your staff. These platforms also include capabilities for users to share their screens which can be useful in working through questions. Adobe Sign is utilized to obtain e-signatures. In a remote environment, this tool allows us to efficiently and securely sign engagement letters, management representation letters, and confirmations. If you choose to do so, the Town may also grant HeinfeldMeech electronic, read-only access to your financial software through a VPN or similar connection. HeinfeldMeech has the necessary policies and safeguards in place to ensure that data accessed by the firm is secure. Such access often creates efficiencies my minimizing the amount of time your staff need to spend fulfilling audit requests. Use of Data Analytics Audit Methodology HeinfeldMeech also utilizes CaseWare IDEA software, a comprehensive, powerful tool that allows for faster and more effective auditing techniques over various audit areas. The use of data analytics will allow for audit procedures to be focused on those items which appear to be anomalies as identified through this analysis. In some instances, the use of data analytics will allow for the testing of complete sets of data rather than the sampling of a limited number of transactions. In order to prioritize the use of technology-enabled data analytics, our staff includes a full-time data analyst, who holds a Master of Science in Business Analytics with advanced education in applied analytics and predictive modeling and is a Certified IDEA Data Analyst. In addition to the expertise of our highly qualified audit team members, our Data Analyst will assist in performing the data analytics audit procedures described above. 15 PROJECT SCHEDULE Our firm agrees to meet the time constraints and reporting deadline requirements specified in the Town’s request. We anticipate that fieldwork will be completed according to a similar timetable as used for the prior year, unless otherwise requested by the Town. Upon award of the contract, exact fieldwork dates will be determined in discussions between the HeinfeldMeech team and the Town’s audit liaison. Work Phase/Milestone Date Planning procedures May – September Interim fieldwork Late July – mid-August Final fieldwork September Draft copy of audit reports delivered to the Town By October 30 Exit conference Early November Final audit reports delivered to Town By November 30 Oral presentation of annual reports to Town Council As scheduled by the Town 16 EXHIBITS Exhibit 1. Vendor Information Form Exhibit 2. Key Personnel Resumes Engagement Partner – Jennifer L. Shields, CPA, CGFM A graduate of the University of Arizona, Jennifer Shields has 26 years of experience at Heinfeld, Meech & Co., P.C. and is a Certified Public Accountant (Arizona license #10065). As an engagement partner, she has overseen more than 1,200 audits for governments and non-profits and her clients have included municipalities, counties, state agencies, school districts, and non-profit organizations . Jennifer is also a member of the AICPA, ASCPA, Arizona Association of School Business Officials, ASBO International, Government Finance Officers Association, and Association of Government Accountants. In addition to financial audit services, Jennifer has participated in MAS compliance reviews for courts, tax return preparation for non-profits, internal audit services, claims audits, payroll audits, procurement audits, policy and procedural reviews, fraud reviews, and other special investigations and agreed-upon procedure engagements. Professional Development: Jennifer has directed her professional development toward quality control standards, as well as accounting and reporting issues in the governmental and non-profit niche. Her accomplishments include:  Committee member of the ASCPA’s Annual Governmental Accounting Conference  Speaker for AICPA and Arizona Association of School Business Officials conferences and trainings  Former member of the AICPA Task Force on Single Audit Training Needs and CPE Evaluation  Recipient of the Advanced Single Audit Certificate from the AICPA  Speaker and trainer at events sponsored by the AICPA, Association of School Business Officials International, and Arizona ASBO Selected Audit List:  Town of Fountain Hills  Town of Carefree  City of Yuma  Yuma County Intergovernmental Public Transportation Authority  Mesa Unified School District  Gilbert Unified School District  Paradise Valley Unified School District  Chandler Unified School District  Higley Unified School District  Tolleson Union High School District  Cartwright Elementary School District  Dysart Unified School District  Isaac Elementary School District  Glendale Union High School District  Carefree Water Company  City of Phoenix Health Care Benefit Trust  City of Phoenix Long-Term Disability Program  Yuma County  Murphy Elementary School District  Cave Creek Unified School District  Yuma Union High School District  Arizona Department of Transportation  Glendale Union High School District Employee Benefit Trust  Phoenix Union High School District Employee Benefit Trust  Children’s Museum Phoenix  Sonoran Prevention Works  New Life Center Contact Information: (623) 237-7950 jennifer.shields@heinfeldmeech.com Jennifer Shields Continuing Professional Education - 2018-2020 Date Class Sponsor Type Total Hours Gov. Hours 1/12/2018 January Training Day Heinfeld, Meech & Co., P.C. Live Seminar 5 1 1/18/2018 2018 Local and State Governmental  Conference Heinfeld, Meech & Co., P.C. Live Seminar 5 2 1/31/2018 AASBO Winter Conference Arizona Association of School  Business Officials (AASBO) Live Seminar 5.5 5.5 2/2/2018 Governmental Accounting Conference Arizona Society of Certified Public  Accountants (ASCPA) Live Seminar 8 8 3/15/2018 IDEA Tips, Tricks & Procedures Heinfeld, Meech & Co., P.C. Live Seminar 6 4/6/2018 AASBO Spring Conference AASBO Live Seminar 8 8 4/25/2018 Annual Working Paper Updates and  Inspection Training Heinfeld, Meech & Co., P.C. Live Seminar 8 0.5 7/21/2018 AASBO Summer Conference AASBO Live Seminar 12 12 8/14/2018 Governmental Accounting Conference American Institute of Certified Public  Accountants (AICPA) Live Seminar 16 12.5 11/14/2018 November Bi‐Monthly Meeting AASBO Live Seminar 3.5 3.5 1/11/2019 January Training Day Heinfeld, Meech & Co., P.C. Live Seminar 6 3 1/29/2019 AASBO Vendor/Buyer Conference AASBO Live Seminar 5.5 5.5 1/30/2019 AASBO Winter Conference AASBO Live Seminar 5.5 5.5 2/8/2019 Governmental Accounting Conference ASCPA Live Seminar 8 8 4/12/2019 Professional Ethics Update for Arizona  CPAs ASCPA Live Seminar 4 4/24/2019 Annual Working Paper Updates and  Inspection Training Heinfeld, Meech & Co., P.C. Live Seminar 8 1 6/12/2019 18th Annual Client Conference for School  Districts Heinfeld, Meech & Co., P.C. Live Seminar 5 5 7/20/2019 AASBO Summer Conference AASBO Live Seminar 12 12 1/10/2020 January Training Day Heinfeld, Meech & Co., P.C. Live Seminar 6 1.8 1/15/2020 January Bi‐Monthly Membership Meeting  & Webinar AASBO Online (Audio ‐ Live) 3.5 1/28/2020 AASBO Vendor/Buyer Conference AASBO Live Seminar 5.5 5.5 1/29/2020 AASBO Winter Conference AASBO Live Seminar 5.5 5.5 2/5/2020 Governmental Accounting Conference ASCPA Live Seminar 8 4 2/18/2020 CPA Ambassador Program AICPA Live Seminar 8 2/26/2020 But I Did It for Free! ‐ Hot Tips for Serving  on a Not‐for‐Profit Governing Boards ASCPA Online (Audio ‐ Live) 1 4/22/2020 Annual Working Paper Updates and  Inspection Training Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live) 7.6 6.4 4/29/2020 Brave New World: Remote work In the  New Normal CPA Leadership Institute, Inc. Online (Audio ‐ Live) 1.2 6/17/2020 2020 School District Webinar: Auditing  and Accounting Updates Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live) 3.2 3.2 7/16/2020 Auditor Technical Training Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live) 2.8 2.8 9/8/2020 Federal ICQ Training Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live) 1.2 1.2 9/11/2020 School District Updates in Regards to  COVID 19 Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live) 1.2 1.2 9/18/2020 Not‐for‐Profit Conference ASCPA Online (Audio ‐ Live) 12 TOTAL:197.7 124.6 Audit Supervisor – Joshua Jumper, CPA, CGFM Joshua Jumper received a M.S. in Accountancy and Information Systems from Arizona State University. He has 13 years of auditing experience with our firm. Joshua has been awarded his Certified Public Accountant license (Arizona #15338) and is a Certified Government Financial Manager (CGFM) recognized by the Association of Government Accountants (AGA). He is also a member of the AICPA, ASCPA, and AGA. Knowledge and Experience:  Supervisory experience on more than 180 financial and compliance audits for governmental and non-profit entities, including 36 for municipalities  Recipient of the Advanced Single Audit Certificate from the AICPA  Special Review Committee Member for the GFOA's financial report certificate program  Treasurer of the AGA Phoenix Chapter  Presenter at training events sponsored by GFOAz  Instructor for trainings and conferences sponsored by our firm  Development impact fee agreed-upon procedures for the City of Tempe, City of Chandler and City of Casa Grande  MAS compliance reviews for municipal courts Selected Audit Experience:  Town of Fountain Hills (2016 through 2020)  City of Chandler (2012 through 2020)  City of Tempe (2009 through 2020)  City of Peoria (2008 through 2011, and 2016)  Maricopa Association of Governments (2018 through 2020)  Town of Gilbert (2016)  Lake Havasu City (2010 through 2014)  Scottsdale Unified School District (2011 through 2019)  Chandler Unified School District (2012 through 2020)  Creighton Elementary School District (2013 through 2020)  Higley Unified School District (2013 through 2020)  Tempe Elementary School District (2016, 2017, 2019 and 2020)  Roosevelt Elementary School District (2012 through 2020)  Buckeye Elementary School District (2018 and 2020)  City of Chandler Workers’ Compensation and Employer Liability Trust (2014, 2015, 2017, 2018 , 2019 and 2020)  City of Chandler Self-Insurers’ Fund (2014 through 2020)  City of Tempe Housing Assistance Fund (2017 through 2020)  City of Phoenix Health Care Benefit Fund (2013, 2015 and 2018)  City of Phoenix Long-Term Disability Program (2013, 2015 and 2018)  Scottsdale Unified School District Insurance Trust (2019)  Gila Crossing Community School (2014 through 2020)  Yavapai Combined Trust (2009 and 2010)  The Council on Chiropractic Education (2010 through 2013, 2017, 2018 and 2020)  Arizona Association of School Business Officials (2011 through 2020)  Chandler Cultural Foundation (2018 through 2020) Contact Information: (623) 237-7952 joshua.jumper@heinfeldmeech.com Joshua Jumper Continuing Professional Education - 2018-2020 Date Class Sponsor Format Total Hours Gov. Hours 1/12/2018 January Training Day Heinfeld, Meech & Co., P.C. Live Seminar 5 1 3/15/2018 IDEA Tips, Tricks & Procedures Heinfeld, Meech & Co., P.C. Live Seminar 6 3/28/2018 Cybersecurity Association of Government  Accountants (AGA) Phoenix Chapter Online (Audio ‐ Live) 2 4/11/2018 Audit Risk Analysis and Other Considerations AGA Phoenix Chapter Live Seminar 22 4/25/2018 Annual Working Paper Updates and Inspection  Training Heinfeld, Meech & Co., P.C. Live Seminar 8 0.5 6/13/2018 Uniform Guidance ‐ Grant Policy Requirements Heinfeld, Meech & Co., P.C. Teaching (CE Presenter) 1 1 6/13/2018 17th Annual Client Conference for School Districts Heinfeld, Meech & Co., P.C. Live Seminar 4.5 4 7/21/2018 AASBO Summer Conference Arizona Association of School  Business Officials (AASBO) Live Seminar 12 12 8/10/2018 GFOAz 2018 Summer Conference Government Finance Officers  Association of Arizona (GFOAz) Live Seminar 14 7 1/11/2019 January Training Day Heinfeld, Meech & Co., P.C. Live Seminar 63 1/15/2019 GFOAz January Training GFOAz Live Seminar 55 1/17/2019 2019 Local and State Governmental Conference Heinfeld, Meech & Co., P.C. Live Seminar 5 2.5 1/23/2019 Grants Management: The Focus on Internal  Controls & Compliance AGA  Online (Audio ‐ Live) 2 2 4/12/2019 Professional Ethics Update for Arizona CPAs Arizona Society of Certified Public  Accountants (ASCPA) Live Seminar 4 4/24/2019 Annual Working Paper Updates and Inspection  Training Heinfeld, Meech & Co., P.C. Live Seminar 8 1 4/25/2019 Staying Positive Through Unprecedented Change Heinfeld, Meech & Co., P.C. Live Seminar 3 5/9/2019 GFOAz May Training GFOAz Live Seminar 44 8/9/2019 GFOAz Summer Conference GFOAz Live Seminar 14 5 1/9/2020 GFOAz Training GFOAz Live Seminar 55 1/10/2020 January Training Day Heinfeld, Meech & Co., P.C. Live Seminar 6 1.8 1/22/2020 Cybersecurity and Ransomware, It Could Happen  to You AGA Phoenix Chapter Live Seminar 2 2/5/2020 Governmental Accounting Conference ASCPA Live Seminar 84 4/10/2020 Risky Business ‐ Conducting Remote Audits in  Uncertain Times American Institute of Certified Public  Accountants Online (Audio ‐ Live) 1 4/22/2020 Annual Working Paper Updates and Inspection  Training Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live) 7.6 6.4 4/24/2020 2020 Phoenix AGA Professional Development  Training AGA Phoenix Chapter Online (Audio ‐ Live) 8.4 2.4 6/4/2020 Audit Considerations in COVID‐19 Training Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live)2.4 2.4 7/16/2020 Auditor Technical Training Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live)2.8 2.8 8/20/2020 Lead! 2020 Virtual AGA Online (Audio ‐ Live)3 9/8/2020 Federal ICQ Training Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live)1.2 1.2 9/10/2020 Successfully Empowering Your Team and Culture  in a Blended Environment Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live) 2.4 9/11/2020 School District Updates in Regards to COVID 19 Heinfeld, Meech & Co., P.C. Online (Audio ‐ Live)1.2 1.2 11/17/2020 Managing Virtual and Remote Work Teams ASCPA Online (Audio ‐ Live)1 TOTAL:157.5 77.2 EXHIBIT B