REQUEST FOR PROPOSALS – PROFESSIONAL AUDITING SERVICES 

Purpose 

The purpose of this request for proposal (RFP) is to solicit the services of a qualified firm of Certified Public Accountants to provide annual auditing services to the Southwestern Water Conservation District (“SWCD”).  A five-year contract term is currently contemplated. 

Background 

SWCD was established by the legislature in 1941 to protect, conserve, use and develop the water resources of the Southwestern basin for the welfare of the District, and safeguard for Colorado all waters to which the state is equitably entitled.  Following this mandate, SWCD advocates for southwestern Colorado’s water interests at the local, state and regional level.  SWCD also administers a small grant program to support water projects and other efforts within the District. 

SWCD’s work is funded primarily by a small property tax in Archuleta, Dolores, La Plata, Montezuma, San Juan, San Miguel, and parts of Hinsdale, Mineral, and Montrose counties in southwestern Colorado.  Total annual operating expenses average around $2 million. 

SWCD is governed by a nine-member board, which employs a full-time general manager and programs coordinator and contracts with various consultants to fulfill its statutory mandate. SWCD’s office is located in Durango, Colorado. More about SWCD can be found on our website: swwcd.org. 

SWCD has one general fund.  SWCD’s recent audited financial statements and adopted budgets are available upon request. 

Services Required 

SWCD is required to submit an annual audit report to the State of Colorado.  The scope of the engagement will be for the selected firm to: 

• Perform a timely financial audit of, issue a report covering, and submit SWCD’s financial statements and other required documents for the fiscal year ending December 31, 2024, with the option on mutual agreement of the parties to audit SWCD’s financial statements for each of the four subsequent fiscal years,  in accordance with U.S. generally accepted auditing standards and state law; 

• Review and recommend adjustments to SWCD’s Chart of Accounts or General Ledger as needed; 

• Prepare a detailed letter to management at the completion of each annual audit; 

• Prepare a draft financial audit, including all findings and recommendations, by an agreed to date that allows staff sufficient time to review, and 

• Make a formal presentation on the annual audit to SWCD’s Board of Directors at their regularly scheduled meeting in June. 

Proposal Process and Criteria for Selection 

Firms are requested to provide three written and one digital copy of their written proposals to Mo Rock at the address and email below by the close of business (5:00 p.m.) on December 2, 2024.  Late or incomplete proposals will not be considered.  Please limit proposals to 25 pages or less.  

At a minimum, all proposals should include: 

• Description of qualifications, including the governmental experience and training of staff to be assigned to the audit; 

• Contact information for the individual(s) principally responsible for conducting the audit; 

• At least two references, ideally from governmental entities; 

• Tentative audit work plan, including deadlines for documentation submittal and date for draft audit to be provided to staff; and 

• Annual cost of the audit (please include the total annual audit fee or applicable hourly rate(s) and estimated hours for the audit of SWCD’s 2024 financial audit and any anticipated cost increases over the following four years, as well as any anticipate out-of-pocket expenses including travel expenses for which the firm will seek reimbursement from SWCD). 

Select members of the board and staff will evaluate the merits of proposals received in accordance with the following criteria: 

• Firm must be licensed to practice in the State of Colorado as a certified public accounting firm. 

• Adequacy and completeness of the proposal. 

• Experience and timeliness of the firm in serving similar governmental organizations. 

SWCD reserves the right to reject any or all proposals.  All materials submitted become the property of SWCD and will not be returned.  This RFP does not commit SWCD to award a contract, or to pay any costs incurred in the preparation, presentation or submission of a proposal submitted in response to this RFP.  During the evaluation process, SWCD may request firms to make an oral presentation to answer questions about their proposal.  SWCD will select the firm that it believes, in its sole discretion, is best able to provide the required services at a reasonable cost.  A formal contract will be prepared and negotiated between SWCD and the selected firm. 

If you have questions about the process or SWCD’s operations before making the decision to submit a proposal, please contact either person listed below. 

Term of Engagement 

A five-year contract is contemplated, subject to annual review and recommendation of SWCD’s Board of Directors, the satisfactory negotiation of contract terms (including, but not limited to, a price acceptable to both SWCD and the selected firm), and the annual availability of an appropriation to cover audit costs. 

Key Dates 

The following schedule will be followed with respect to this RFP: 

• Please submit all questions in writing to morock@swwcd.org by Friday, November 15, 2024. 

• SWCD’s answers to written questions will be posted on the District’s website no later than Thursday, November 21, 2024. 

• Firms are requested to provide three written and one digital copies of their written proposals to Mo Rock at the address below by the close of business (5:00 p.m.) on Monday, December 2, 2024. 

• SWCD anticipates announcing the selected firm no later than Thursday, December 12, 2024. 

• All firms who submitted proposals will be notified of the results no later than Monday, December 16, 2024. 

Contacts 

Steve Wolff, General Manager, stevew@swwcd.org, 970-247-1302 x2 

Mo Rock, Programs Coordinator, morock@swwcd.org, 970-247-1302 x1 

Southwestern Water Conservation District, 841 E 2nd Avenue, Durango, CO  81301 

Can you tell me a little about your organization? 

The Southwestern Water Conservation District (SWCD) was created on April 16, 1941 by the Colorado General Assembly through House Bill #795 (Statute 37-47-101). The District is comprised of nine counties: Archuleta, Dolores, La Plata, Montezuma, San Juan, San Miguel, and parts of Hinsdale, Mineral, and Montrose. Each Board of County Commissioners appoints a representative to the District Board of Directors, which meets bi-monthly. SWCD’s statutory authority is to protect, conserve, use and develop the water resources of the Southwestern basin for the welfare of the District, and safeguard for Colorado all waters of the basin to which the state is entitled. Following this mandate, the District has assumed a broad strategic role on behalf of its diverse constituents. District representatives advocate for southwestern Colorado’s water interests at the local, state and regional level. Funded by property taxes, SWCD currently funds a variety of essential work, including vital stream flow data collection by the US Geological Survey, water quality sampling through the Colorado Department of Public Health and Environment, water supply augmentation through weather modification, endangered fish species recovery efforts in the San Juan Basin, and compact water bank programs in Colorado. The District’s most recent budgets approved by the board each December can be found on the Colorado Department of Local Affairs website. SWCD’s substantial grant program supports local efforts across the District, among them water supply projects, recreational development, environmental improvements, collaborative community processes, and water quality studies. For more than 20 years, the District has spearheaded regional water education by sponsoring an Annual Children’s Water Festival for students across the basin and administering the Water Information Program with contributions from participating entities. For more than 30 years, the District has invited prominent experts to share their expertise at the Annual Water Seminar in Durango. Several significant water storage reservoirs have been built within the District to ensure adequate water supplies to meet current and future needs.

Number of employees? 

SWCD has two full-time employees and no part-time employees. The District outsources some work to independent contractors.

What has been the revenue for the last couple of years, and what are your projections for the next couple?

Please review our budgets at the Colorado Department of Local Affairs Website at: Local Government Filings - Budget | Colorado Department of Local Affairs. District Revenues have ranged from 1.5 – 2 million.

Current CPA firm?

MBE recently bought out Fredrick Zink and Associates, our Auditor, for the last three years.  

Why are you leaving your current Auditor?

We regularly rotate auditing firms. 

What have you’ve been paying?

As a government entity, our budgets are public and can be found at: Local Government Filings - Budget | Colorado Department of Local Affairs,. Please review our budget for allocated funding on an annual basis. 

Any notes from the last few years of management reports?

There were no notable notes from the auditor in the last few years audit reports. Please refer to our previous audits for further information and the full management reports:  OSA: Local Government Portal

Can you share a copy of the last audit performed?

SWCD’s annual audit is available on the state auditors website: OSA: Local Government Portal

What is your timeframe?

As the RFP indicates, SWCD asks that all questions be submitted in writing by Friday, November 15, 2024. SWCD will also note any questions asked by interested parties via phone. SWCD will answer and post all questions to SWCD’s website no later than Thursday, November 12th. Firms are requested to provide three written and one digital copy of their written proposals to Mo Rock at the address below by the close of business on Monday, December 02, 2024. SWCD anticipates announcing the selected firm no later than Thursday, December 12, 2024. All firms that submitted proposals will be notified of the results no later than Monday December 16, 2024.

How is Payroll Handled in your Organization?

Payroll is outsourced from the District to the Payroll Department. A local payroll firm in Durango Colorado that specializes in government, nonprofit, and other payroll services.

What software does the District use for accounting?

SWCD uses QuickBooks Online for accounting and Bill.com for invoicing and billing services.

Remote or Onsite?

SWCD is open to onsite or virtual auditing services. 

Timeline of the Audit?

SWCD follows the State of Colorado’s Submission Deadlines as defined by the Office of the State Auditor. Audits are typically due at the end of July; please visit the State Audit Website for more details. Local Government | Colorado General Assembly