RFP-Request for Proposals/ Professional Audit Services

1 | P a g e CHATTANOOGA METROPOLITAN AIRPORT AUTHORITY REQUEST FOR PROPOSALS PROFESSIONAL AUDIT SERVICES 1. INTRODUCTION The Chattanooga Metropolitan Airport Authority “Authority” is soliciting proposals from qualified firms of Certified Public Accountants “Auditor”, licensed in the State of Tennessee, for the preparation of our annual audited financial statements beginning with the 2024 fiscal year ending June 30, 2024. The awarded contract will be for an initial three years. The Authority reserves the right to continue this service for additional extensions on a year-to-year basis. The selected Auditor shall furnish all labor, materials, equipment, and supervision necessary for the audit services. Only audit firms having governmental audit experience are being asked to submit. The accounting policies of the Authority conform to the accounting principles generally accepted in the United States of America (GAAP) applicable to governmental entities. The more significant accounting

policies established in GAAP and used by the Authority are discussed in the audits attached. The Authority's financial statements are prepared in accordance with GAAP. The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments, including special purpose governments such as the Authority, through its pronouncements (Statements and Interpretations). The Authority’s fiscal year begins on July 1st and ends on June 30th. Copies of the previous two (2) years’ audits are available for examination if requested. Chattanooga Metropolitan Airport Authority is the authority created on May 29, 1985, to own and operate the Chattanooga Airport (“Airport” or “CHA”) located in Chattanooga, TN. The Authority is a public and governmental body acting as an agency of the City of Chattanooga, Tennessee. The principal purpose of the Authority is the management and operation of the Chattanooga Metropolitan Airport (the “Airport”). The Mayor of the City appoints all members of the 9-member Board of Commissioners to govern the Authority. The Board appoints the President who is the Chief Executive Officer of the Authority. The President appoints the remaining officers with Board confirmation. These officers manage and operate the airport with a staff of permanent employees. 2. TYPE OF AUDIT The audit is to be performed in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States; and the Specifications for Audit of Authorities, Boards, and Commissions issued by the Tennessee Comptroller of the Treasury; as well as additional requirements required by the U.S. Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly 2 | P a g e called “Uniform Guidance”) and the Federal Aviation Administration, Passenger Facility Charge Audit Guide for Public Agencies. 3. SCOPE OF WORK TO BE PERFORMED Following the completion of the audit of the fiscal year’s financial statements, the Auditor shall issue: A. A report on the fair presentation of the Authority’s financial position, including results from operation and cash flows, in conformity with generally accepted accounting principles. B. A report on compliance and internal controls over financial reporting based on the audit of the financial statements. C. A report on Compliance for Each Major Federal Program and on Internal Controls over Compliance Required by the Uniform Guidance. D. In the required report(s) on compliance and internal controls the Auditor shall communicate any reportable conditions found during the audit. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions shall be reported in a separate letter. The Auditor shall be required to make an immediate written report of all irregularities and illegal acts, or indications of illegal acts of which they become aware to the Authority. E. Reports on compliance and on internal control over compliance for the Passenger Facility Charge (PFC) program and on the schedule of passenger facility charges, investment income and related expenditures. F. A map of GL accounts to financials in audit report. An on-site review of documents will be available after August 16th. The Auditor may be required to present the reports to the Finance Committee at an agreed upon time and will present the Final Audit Report at the October Board meeting. The Auditor shall provide five (5) bound originals along with both a protected and an unprotected electronic copy of the final Financial Statements and Auditors Reports for the Authority no later than October 15th each year. 4. SUBMISSION OF PROPOSALS The following is a timeline for this RFP: - April 5, 2024: RFP issued. - April 12, 2024: All questions or additional data requests shall be submitted in writing via email to aivey@chattairport.com before 2:00 pm (EST) on April 12, 2024. Phone queries will not be accepted. - April 17, 2024: Authority response to questions. - April 24, 2024: Proposals will be accepted until 2:00 pm (EST) on April 24, 2024 via email to aivey@chattairport.com. Anne Marie Ivey’s direct phone number is 423-855-2280. Auditors must also confirm with the Anne Marie to ensure that she has received the RFP. - April 29, 2024: Interviews will be scheduled with respondents from April 29th to May 3rd. - May 7, 2024: Recommendation made by selection committee - May 13, 2024: Board decision. Firm notified of Award prior to Board meeting. 5. SUBMISSION FORMAT mailto:accounting@chattairport.com mailto:%20aivey@chattairport.com mailto:%20aivey@chattairport.com 3 | P a g e A. General Instructions Proposals shall be signed by an authorized representative of the Auditor. All information requested should be submitted. Failure to submit all information requested may result in the Authority requiring prompt submission of missing information and/or giving a lowered evaluation of the proposal. Proposals which are substantially incomplete or lack key information may be rejected by the Authority. Mandatory requirements are those required by law or regulation or are such that they cannot be waived and are not subject to negotiation. The Authority may, at its discretion, choose to contract for some of the services described in this Request for Proposals or may choose to reject any or all offers. B. Proposal Preparation Proposals should be prepared simply and economically, providing a straightforward, concise description of capabilities to satisfy the requirements of the RFP. Emphasis should be placed on completeness and clarity of content. C. Proposal Proposals should be as thorough and detailed as possible so that the Authority may properly evaluate your capabilities to provide the required professional services. Auditors are required to submit the following items as a complete proposal. Section 1 – Methodology/Specific Plan: Provide a description of methodology of the Auditors design and management processes incorporating an understanding of the scope of work of this Request for Proposal and how the Auditor intends to satisfy them. Provide a specific plan for providing these services. Section 2 – Experience: A written narrative statement to include: - Experience in providing the services described herein - Staffing: Provide the names, qualifications, degrees, certifications, experience and licenses of key employees to be assigned to the project - Office location and accessibility of key personnel to the Airport. - References: Provide at least four references for which work of a similar nature to that described herein was performed within the past three years. The reference should include the name, title, address, phone number, and email for the person on the owner’s team most intimate with the details of project being referenced. - Most recent Peer review report. Section 3 – Annual Fee Structure: Please provide fee for the scope of work presented in the RFP. 6. EVALUATION CRITERIA Methodology/ Specific Plan – 5 points Qualifications of Firm – 20 points Strength and stability of the firm; strength, stability, experience and technical competence of the Auditors; logic of project organization; adequacy of labor commitment and past performance. Related Experience – 20 points Experience in providing services similar to those requested herein; experience working with public agencies; assessment by client references. 4 | P a g e Local Audit Team – 10 points Quality Control – 10 points Responsiveness to RFP – 5 points Reasonableness of Cost and Price – 20 points While an important factor, it will not be a sole determining factor. The lowest bid will not automatically be awarded preferential consideration. Reasonableness and competitiveness of quoted firm-fixed prices with other proposals received; adequacy of the data in support of figures quoted; basis on which prices are quoted. 7. EVALUATION PROCEDURE All proposals received as specified will be evaluated by CMAA staff in accordance with the above criteria. During the evaluation period, CMAA may do any or all of the following: generate a “short list” and conduct interviews with the top candidates; conduct on-site visits and/or tours of the candidates’ places of business; conduct negotiations with the most qualified candidate(s). Auditors should be aware, however, that award may be made without Auditor visits, interviews, or further discussions or negotiations. 8. INSURANCE The Auditors to whom this contract is awarded shall maintain commercial general liability insurance applicable to the work of this contract. Auditors shall also maintain workers' compensation insurance providing statutory benefits. Auditor shall also provide and maintain professional liability insurance. An insurer that is approved to do business in Tennessee shall write coverage. The insurer shall agree to provide notice to the Authority not less than 30 days before any change in coverage. A certificate is required to evidence this insurance and shall be addressed to: Chattanooga Metropolitan Airport Authority, 1001 Airport Road, STE 14, Chattanooga, TN 37421. Please provide a COI with RFP.