REQUEST FOR PROPOSAL FOR ANNUAL AUDIT SERVICES INCLUDING FEDERAL SINGLE AUDIT
Issue date: February 1, 2021
Proposal deadline: March 1, 2021
PROPOSALS RECEIVED AFTER THE DEADLINE WILL NOT BE CONSIDERED
The Board of Trustees of the Hospitality Industry Training and Education Fund (“HITEF” or “Trust Fund”) dba Hospitality Training Academy (HTA) is seeking to engage a firm to provide annual auditing services in connection with the Board’s annual reporting obligations, including preparation of a Federal Single Audit.
Notwithstanding other provisions of this Request for Proposal, applicants are hereby advised that this RFP is a solicitation of proposals only.
I. HITEF Background Information
HITEF, which does business as the Hospitality Training Academy (HTA), is a labor-management trust fund regulated by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and organized pursuant to section 302(c)(6) of the Labor Management Relations Act of 1947. HITEF is qualified as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. HITEF provides training and apprenticeship programs to benefit both the members of UNITE HERE Local 11 (“Local 11”) and its contributing employers.
HITEF is governed pursuant to a Trust Agreement by a Board of Trustees comprised of equal numbers of representatives appointed by hospitality industry employers and by Local 11. Employers contribute to the Trust Fund pursuant to collective bargaining agreements with Local 11. The Board of Trustees meets on a quarterly basis, and day-to-day operations are conducted by a professional staff of approximately 17 employees led by an Executive Director, Adine Forman. A third-party administrator, Benefit Programs Administration (“BPA”), maintains the Trust Fund’s books and records. BPA also serves as third-party administrator for other labor-management trust funds that provide pension, health and welfare, and legal services benefits to Local 11 members. Payroll auditing services are provided by Henningfield & Associates on behalf of this entire family of trust funds. HITEF’s legal counsel is Gilbert & Sackman, a Law Corporation. HITEF files an annual Form 990 and California Form 199. HITEF does not currently file a Form 5500.
Local 11 members work for employers of hotels, airport concession companies, large event/sports venues, private universities, theme parks, restaurants, food service companies, corporate cafeterias, convention centers, and casinos. HITEF uniquely offers new and incumbent workers with the tools to succeed in Southern California and Arizona’s vital, high-growth hospitality industry, and provides training to place participants into jobs and then move the workers up the career ladders in this industry. The Local 11 membership is incredibly diverse, comprised of workers from many immigrant communities, as well as high percentages of African American, Latino, and Asian American workers. The members are predominantly women and people of color.
HITEF provides Registered U.S. Department of Labor (US DOL) and State of California Division of Apprenticeship Standards (DAS) Apprenticeship Programs for Culinary/Line Cook and Room Attendant/Housekeeper, and has received numerous grants to run specialized programs, including employment/workforce services and ESL/Workplace English programs. HITEF has received funding from various government agencies, including the US DOL, Workforce Innovation and Opportunity Act (WIOA) funds from the State of California and local government entities, and California Employment Training Panel funding, as well as funds from private philanthropic foundations. With these funds, HITEF provides low-income job seekers with job skills training in hospitality occupations and employment assistance, including resume preparation, mock-interviews, and referrals to job opportunities that pipeline these clients into unionized hospitality jobs with good wages and benefits.
For more information, visit www.LAHTA.org.
II. Audit Services Information
The audit report, including federal single audit, and financial statements for HITEF’s plan year 2020 must be completed by July 1, 2021. The single audit report is required to be submitted to the Board of Trustees of HITEF and the Federal Audit Clearinghouse. The completed audit report may be submitted at an earlier date; however, if the Bidder fails to make delivery of the completed audit report by July 1, 2021 or if the Bidder does not conform to all provisions of the contract, authorized representatives of HITEF may, by written notice of default to the Bidder, terminate the whole or any part of the contract. HITEF’s contract with the selected auditor will be subject to claims for breach of contract and professional liability in a case of non-performance, incorrect information or related conditions.
The single audit will include the financial statements of the governmental activities, each major special revenue fund and the aggregate remaining fund information, which collectively comprise the entity’s basic financial statements. A management letter addressing findings of noncompliance with 2 C.F.R. § 200, et seq., ERISA, other related laws, rules and regulations pertaining to compliance items under the Workforce Innovation and Opportunity Act (WIOA) shall be prepared. The management letter should also include a statement of audit findings and recommendations affecting financial statements, internal control, accounting, accounting systems and any other material matters.
The Bidder shall furnish a progress report to the HITEF Director of Finance and Executive Director monthly while completing the audit. This report will describe progress to date and identify planned action to be taken that will lead to the completion of the audit within established timelines.
Required Annual Audit Services
The following annual audit and reporting services, including preparation of a Federal Single Audit, are required for the Board commencing with the plan year beginning January 1, 2020 and ending December 31, 2020:
financial statements and books and records, and expressing an opinion on whether the financial statements and supporting schedules are presented fairly in conformity with generally accepted auditing standards. In a separate written report accompanying your auditors’ report on the financial statements, provide an opinion in relation to the financial statements taken as a whole:
III. General Proposal Information
The Board of Trustees (“Board”) is initiating a process for the selection of an auditing firm to provide annual auditing and related reporting services, including preparation of an annual Federal Single Audit in connection with the Board’s annual Federal grant funding obligations.
The proposal process will follow HITEF’s procurement policy as well as 2 C.F.R. § 200. This professional services procurement activity will follow a two-step process:
Step 1 includes submission and evaluation of a firm’s responsiveness to the RFP in the three key evaluation areas of:
(1) relevant experience, audit plan and approach,
(2) availability of staff with professional qualifications and technical abilities and recent past performance with single audits and Taft-Hartley fund audits, and
(3) results of peer and external quality control reviews references and questionnaire.
Step 2 of the procurement process will include consideration of proposal price, which will be requested and considered only after evaluation of the offeror’s proposal.
HITEF will make a positive effort to utilize small businesses, minority owned firms and women’s business enterprises. The Board reserves the right to accept or reject any and all proposals received and is not required to accept the lowest bid or any unsolicited bids. The Board will meet for the purpose of evaluating the replies received in response to this RFP. Please have a representative available for a potential personal or Zoom interview in connection with this evaluation. You will be notified of the time and place of the interview, if requested, after all proposals are received. The full Board will make the final selection. The Board reserves the right to select no proposals, make no award, and resolicit proposals through a subsequent RFP.
Proposal documents are the property of the Trust Fund. They are to be used only by the firms to whom copies have been sent, and then, solely for the purpose of obtaining quotations for the services described herein. All proposals shall remain firm for at least ninety (90) days after the proposal closing date.
The cost for developing and preparing a proposal is solely the responsibility of the Bidder, whether or not any award results from this solicitation. Further, the cost of developing and preparing responses to this RFP will not be allowed as direct or indirect charges under any resulting contract. Notwithstanding other provisions of this RFP, applicants are hereby advised that this RFP is an informal solicitation of proposals only.
Please e-mail one completed, signed electronic PDF copy of the proposal to the Director of Finance, HITEF at Jorge.Galvez@lahta.org, and also provide a copy to Annette Mora at BPA at firstname.lastname@example.org. Proposals should be clearly marked “Proposal for HITEF Annual Audit Services.” Questions are to be directed to Jorge Galvez.
PROPOSALS ARE DUE BY March 1, 2021. Late proposals will be rejected as untimely. It is the responsibility of the submitting firm to make sure the proposal is delivered electronically by the specified date above.
Submission of a proposal shall constitute acknowledgement and acceptance of all terms and conditions contained in this RFP. Any response to this request must be according to the instructions herein. All questions asked in the Questionnaire should be fully answered. Failure to adhere to the requirements may be cause for rejection of the proposal. An evaluation instrument and evaluation methodology will be used. The basic evaluation factors, equally weighted, are audit plan and approach, documented, recent past performance with federal single audits, experience in working with Taft-Hartley plans or partnerships, and assessment of proposal questionnaire.
This RFP does not commit the Board to award a contract or to pay any costs incurred in the preparation of any proposal responsive to this request. The Board reserves the right to accept all or part of any proposal or to cancel in part or in its entirety this RFP. The Board further reserves the right to accept the proposal that it considers to be in the best interests of the participants and beneficiaries of the Trust Fund. While price is a consideration, the Board reserves the right to award a contract on the basis of its overall evaluation.
It is the intent of the Board that no person or firm shall be excluded from participation in, denied the benefits of, or otherwise be discriminated against in the award and performance of any Board contract on the grounds of race, ethnicity, creed, religion, color, national origin, age, sex, sexual orientation, or gender identity.
In order for your proposal to be considered and accepted, your organization must provide answers to the questions presented in this section. Each question must be answered specifically and in detail. Reference should not be made to a prior response, or to your contract, unless the question expressly gives you that option.
Please provide an annual fee quote for all of the services set forth in the RFP using standard industry fee format. Include any related services as needed, including start-up costs, travel expenses to board meetings located near Downtown Los Angeles, hourly rates. As an option, fees for second- and third-year engagements may also be included.