IDEX is seeking an accounting firm for the following services:
- Audit of the financial statements for the year ending June 30, 2016.
- Preparation of IRS Form 990 and CA Form 199 tax documents.
- Preparation of the related management letter.
- Presentation of the results of the audit and the management letter at the board’s Audit Committee meeting in November of each year.
- Consultation on financial and other matters related to the organization as required annually.
- Very limited consultation on tax matters as required.
The primary users of the financial statements are the Board of Directors and the Audit Committee. In addition to the audit of the financial statements and meetings with management and the Audit Committee, we also require approximately 20 hours of partner and manager time for consultation with management throughout the year.
Please submit a written proposal fees for a 5 year period, beginning June 30, 2016 and should be based on a single, annual fee for the routine and consultative services outlined above.
Any additional information which you may require to prepare your proposal may be obtained by scheduling an appointment with our interim CFO, Carol Cantwell or myself.
Your written proposal is due in our office by September 1, 2016 to email@example.com and will be reviewed by our Audit Committee in September 2017. Once a final decision has been made, you will be notified of the Audit Committee’s selection no later than September 30, 2016
The Audit Committee of the IDEX reserves the right to reject any or all proposals submitted and to also make award where it appears it will be to the best interest of IDEX.
Questions for Prospective Accounting Firm
Profile of Firm:
- Describe the Firm on an overall basis, both locally and nationally.
- Summarize the Firm’s qualifications regarding nonprofit organizations from an audit, EDP and tax perspective.
- Give the Firm’s present complement of personnel by specialty, division, and employment classification in the Bay Area office.
- Describe your local audit staff turnover experience within the past three years and how you would provide continuity of assigned personnel on this engagement.
- Describe the overall results of your Firm’s most recent peer review.
Quality of Audit:
- Describe the Firm’s audit approach, including review of internal controls.
- Describe how your Firm will obtain a basic understanding of IDEX operations and activities for planning the audit.
- Describe the local office’s experience on dealing with other nonprofit clients similar to the IDEX.
- Describe the local office’s capability to audit in a computer environment.
- Describe the key personnel to be utilized on the engagement along with resumes of key personnel. Indicate their degree of expertise and prior experience, which would be appropriate for the engagement.
- Describe any services, other than audits, that are offered by the local office especially as related to internal controls and EDP operations.
- Describe you Firm’s staff training and development policies and programs.
Responsiveness to IDEX:
- Describe procedures utilized to monitor the progress of the work for periodic evaluation and communication to management of the IDEX so that problems can be resolved.
- Identify key local engagement personnel who will be continuously available for consultation or discussion.
- Describe any relationships with your existing clients which might jeopardize your objectivity or independence.
Responsiveness to IDEX:
- Estimate total fees and hours by employment classification and out-of-pocket cost annually for each of three years, given the services required as outlined in the attached letter.
- Estimate the “first time through” hours, which would be required of your Firm and our staff.
- Estimate the “internal control review” hours, which your Firm is committed to provide to our staff.
Responsiveness to IDEX:
- Submit client references for each key member of the proposed client service team.
- Submit local non-profit client references.
- Provide any other information you deem desirable.
August – September: Audit Planning
October – November: Final Audit Work
13 November: Copy of Audited Financial Statements (We will be responsible for printing
13 November: Management Letter
15 November: Presentation to: Audit Committee
- Audited financial statements of IDEX for year ending June 30, 2016
- Management letter comments.
- Audit Committee presentation of the results of the audit and the management letter.
- IRS form 990 and CA Form 199.
Other Consultation Services:
Financial, operational, and very limited tax consultation will be required annually on matters related to management. These services are expected to be included in your base fee for services, which are expected to require approximately 20 additional hours annually from a partner or manager.
Scope of Operations
IDEX was organized and has been located in San Francisco, CA since May 16, 1985. It is a CA nonprofit corporation.
IDEX identifies, evaluates, and grows the best ideas from local leaders and organizations to alleviate poverty and injustice around the world. IDEX connects a passionate and engaged network of supporters in the Western world to the visionary leaders and organizations creating lasting solutions to their communities’ most pressing challenges.
Please visit our website for more information: www.idex.org and for our Theory of Change: https://www.idex.org/blog/2014/01/28/idex-theory-of-change/. Annually, IDEX’s partners build the power of approximately 1.5 million people in impoverished communities, including indigenous women, small-scale farmers, low-income urban residents, youth, sexual and ethnic minorities, and people with disabilities.
The board is governed by 12 directors elected by majority of the currently appointed board of directors. The directors meet 5 times each year and committees meet monthly or quarterly. The directors in turn elect the Executive Director.
There are 13 staff members at IDEX in geographically disparate locations.
Total annual income is approximately $2,500,000. Investments will vary seasonally from $2,000,000 – $3,500,000.
IDEX derives about 10% of its income individuals, 80% from foundations, and 10% from earned income.
The majority of IDEX’s income is used in support of community self-determination, organizational resilience, global solidarity, and social justice giving.
IDEX is self insured for staff medical and disability coverage, and for property and casualty insurance on all of its properties.