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OFFICE OF THE AUDITOR

STATE OF HAWAI‘I

REQUEST FOR STATEMENTS OF QUALIFICATIONS

TO PROVIDE AUDITING, ACCOUNTING, AND

RELATED PROFESSIONAL SERVICES

(RFQ NO. 2021-01)

DATE OF ISSUANCE: JANUARY 4, 2021

TABLE OF CONTENTS

PAGE SECTION I: INTRODUCTION 3

SECTION II: PURPOSE OF THE REQUEST FOR QUALIFICATIONS 4

SECTION III: SCOPE OF SERVICES 5

SECTION IV: SUBMISSION REQUIREMENTS 6

SECTION V: EVALUATION AND SELECTION CRITERIA 8

SECTION VI: QUESTIONS AND COMMUNICATIONS 11

SECTION VII: ATTACHMENT 12 • Attachment 1: Statement of Qualifications Form, Form SOQ 2021-01

RFQ NO. 2021-01 SECTION I

INTRODUCTION

Article VII, Section 10 of the Hawai‘i State Constitution and Section 23-4, Hawai‘i Revised

Statutes (HRS), require the Auditor, State of Hawai‘i (State Auditor), to conduct post-audits of the transactions, accounts, programs, and performance of all departments, offices, and agencies of the State of Hawai‘i (State) and its political subdivisions. They further require the State

Auditor to certify to the accuracy of all financial statements issued by the respective accounting officers of the State.

The Office of the Auditor is issuing this Request for Qualifications (RFQ) to solicit Statements of Qualifications from prospective offerors demonstrating successful experience in providing auditing, accounting, and related professional services and intends to employ the services of certified public accounting firms to conduct such engagements.

This RFQ may be cancelled and any and all Statements of Qualifications may be rejected in whole or in part when it is in the best interest of the State.

RFQ NO. 2021-01 SECTION II

PURPOSE OF THE REQUEST FOR QUALIFICATIONS

The purpose of this RFQ is to solicit and evaluate current Statements of Qualifications from prospective offerors and prepare a list of pre-qualified offerors from which the State Auditor may choose to select prospective contractors to provide professional services as needed by the State

Auditor. Prospective offerors pre-qualified under this RFQ are not guaranteed a contract.

Pursuant to Section 3-122-149, Hawai‘i Administrative Rules (HAR), relating to multi-term contracts, all prospective offerors should be aware that funds for services as agreed shall be available for only the initial fiscal year of a multi-term contract. Further, the contractual obligations of both parties in each subsequent fiscal year is subject to the appropriation and availability of funds. A contract will be cancelled when funds are not appropriated or otherwise made available to support continuation of performance in any fiscal year succeeding the initial term of the contract; however, this does not affect either the State’s rights or the contractor’s rights under any termination clause of the contract. A contractor will be notified on a timely basis by the State Auditor, as Head of the Purchasing Agency (HOPA), on the availability of funds for the continuation of the contract for each succeeding fiscal year as required under

Section 3-122-149(f)(6), HAR. In the event of cancellation, as noted above, the contractor will be reimbursed the unamortized, reasonably incurred, nonrecurring costs pursuant to

Section 3-122-149(f)(7), HAR.

RFQ NO. 2021-01 SECTION III

SCOPE OF SERVICES

This scope of services provides general guidelines for the work the State Auditor expects to be performed, and is not a complete listing of all services that may be required:

Financial audits, reviews, agreed-upon procedures, and other related professional services

The State Auditor seeks certified public accountants (CPAs) with government accounting and fiscal expertise interested in providing the following services:

1. Post-audits of the transactions, accounts, programs, and performance of departments,

offices, and agencies of the State and its political subdivisions;

2. Post-audits and examinations to discover evidence of any unauthorized, illegal, irregular,

improper, fraudulent, or unsafe handling or expenditure of state funds, or other improper

practice of financial administration;

3. Reviews of the audited entities’ governing laws and rules to determine entity adherence

to them; and

4. Financial reviews, internal control examinations, agreed-upon procedures, and other

related services, including reviews of the efficiency and effectiveness of information,

accounting, and other related systems and procedures.

RFQ NO. 2021-01 SECTION IV

SUBMISSION REQUIREMENTS

The Office of the Auditor is issuing this RFQ in accordance with the Hawaii Public Procurement

Code, specifically, Section 103D-304, HRS. Certified public accounting firms interested in being considered to provide the auditing, accounting, and related professional services described in the Scope of Services in Section III above for the fiscal year ending June 30, 2021, and up to two (2) additional fiscal years should submit a letter of interest along with a current Statement of

Qualifications (SOQ). The accurate completion of Form SOQ 2021-01 (Attachment 1), in its entirety, should provide sufficient information upon which to evaluate such qualifications.

Pursuant to Section 3-122-63(b), HAR, a prospective offeror may submit a written request to the

Office of the Auditor for portions of the offeror’s SOQ to remain confidential and not open to public inspection under Section 3-122-58, HAR. Any portion of an offeror’s SOQ designated as confidential must be readily separable in order to facilitate public inspection of the nonconfidential portions of the SOQ. Upon request by the Office of the Auditor, the prospective offeror has the responsibility to provide the Office of the Auditor with an explanation of the basis for its position that the portions designated are confidential and the burden of establishing that the information can be withheld under the Uniform Information Practices Act (Modified),

Chapter 92F, HRS.

RFQ NO. 2021-01 Prospective offerors shall submit one (1) paper copy and one (1) electronic copy of the

Form SOQ 2021-01 in its entirety. Responses and all related materials must be clearly marked

“RFQ No. 2021-01 - Procurement of Auditing, Accounting, and Related Professional

Services” and received by 2:00 p.m. (Hawai‘i Standard Time), Friday, February 5, 2021.

Responses must be delivered to:

Office of the Auditor

465 South King Street, Room 500

Honolulu, Hawai‘i 96813

Postmarks will not be considered in judging timeliness of submissions. Responses submitted by facsimile or email will not be accepted. Late submissions will not be considered, including those submitted late due to mail or delivery service failure.

Prospective offerors must also submit a consolidated Certificate of Vendor Compliance issued by the Hawai‘i State Procurement Office via the online system, “Hawai’i Compliance Express.”

Details regarding this online application process may be viewed at: http://vendors.ehawaii.gov/hce/

RFQ NO. 2021-01 SECTION V

EVALUATION AND SELECTION CRITERIA

Pursuant to Section 103D-304(c), HRS, all completed SOQs received by the deadline specified in Section IV above will be evaluated by a review committee designated by the State Auditor, as the HOPA. Upon evaluation, the review committee will prepare a list of qualified firms. Based on the information provided in the SOQs, the review committee will also categorize the list of qualified firms (e.g., by areas of interest, firm size, capacity of the qualified firms, experience and areas of expertise, etc.).

When the need for professional services arises during the fiscal year, the State Auditor, as the

HOPA, will designate a selection committee to examine and evaluate the SOQs, performance data of the qualified firms, and related information such as references and reports. The selection committee will rank a minimum of three (3) firms from the list of qualified firms based on the selection criteria set out in Section 103D-304(c), HRS, for review by the State Auditor, as the

HOPA. The selection committee will rank those qualified firms holding the same qualifications in a manner that ensures equal distribution of contracts.

Both the review committee and the selection committee shall consist of a minimum of three (3) persons with sufficient education, training, licenses, and credentials. At the State Auditor’s discretion, designated members may serve on both the review and selection committees concurrently.

RFQ NO. 2021-01 Selection Criteria

Pursuant to Section 103D-304(e), HRS, the selection criteria employed in descending order of importance are:

A. Experience and professional qualifications relevant to the project type;

B. Past performance on projects of similar scope for public agencies or private

industry, including corrective actions and other responses to notices of

deficiencies;

C. Capacity to accomplish work in the required time; and

D. Any additional criteria determined in writing by the selection committee to be

relevant to the Office of the Auditor’s needs or necessary and appropriate to

ensure full, open, and fair competition for professional services contracts.

The selection committee may also evaluate the form and content of offerors’ responses to assess writing competencies and other qualifications, such as attention to detail and completeness in the responses.

The State Auditor reserves the right to approve or disapprove of any representative of the prospective offeror assigned to an engagement before and throughout the contract term. The

State Auditor also reserves the right to, at any time, approve, disapprove, or modify proposed project plans, timelines, and deliverables.

RFQ NO. 2021-01 Finally, a prospective offeror’s past performance on any prior engagement with the Office of the

Auditor will be considered by the selection committee when evaluating prospective offerors for both qualifications and ranking, as applicable.

The relevant selection criteria covered on Form SOQ 2021-01 are as follows:

A. Experience and professional qualifications relevant to the project type.

Part III: Experience and Qualifications of Firm

B. Past performance on projects of similar scope for public agencies or private

industry, including corrective actions and other responses to notices of deficiencies.

Part IV: Past Performance on Projects

C. Capacity to accomplish the work in the required time.

1. Part VI: Human Resources (Capacity)

2. Part VII: Areas of Interest

D. Any additional criteria determined in writing by the selection committee to be

relevant to the State Auditor’s needs or necessary and appropriate to ensure full,

open, and fair competition for professional services contracts.

RFQ NO. 2021-01 SECTION VI

QUESTIONS AND COMMUNICATIONS

To ensure fair and equal access to information about this RFQ No. 2021-01, any questions regarding this solicitation must be submitted in writing and be received by 12:00 p.m., Hawai‘i

Standard Time, on January 18, 2021. Questions should be directed to Ms. Lauren Kawajiri,

Administrative Deputy Auditor, via email at [email protected].

A summary of the questions and answers pertaining to this solicitation will be posted on the

Office of the Auditor’s website at http://auditor.hawaii.gov/solicitations by 4:30 p.m., Hawai‘i

Standard Time, on January 25, 2021.

RFQ NO. 2021-01 SECTION VII

ATTACHMENT

• Attachment 1: Statement of Qualifications Form, Form SOQ 2021-01

RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

Part I. General Information

Firm Name (include dba, if applicable):

Type of Entity: (check only one box)

Sole Proprietorship Corporation Partnership LLP LLC Joint Venture Other (describe):

Business Address of Hawai‘i Office, if applicable:

Federal Employer Identification Number (FEIN):

Hawai‘i State General Excise Tax Number:

Year Established in Hawai‘i:

Main Telephone No. of Hawai‘i Office:

Name of Person in Charge of Hawai‘i Office:

Contact Person: Name: Position: Telephone No.: Fax No.: Email:

Type of Firm: (check only one box)

a. National Firm b. Regional Firm c. Hawaii (Only) Firm

NameU (s) of Firm Partner(s)/Principal(s): U 1)

Average Number of Employees Over the Previous Five (5) Years:

Form SOQ 2021-01 1 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

Part II. Licensing

A. CERTIFIED PUBLIC ACCOUNTING FIRMS YU ESU NU OU 1. Is the firm incorporated, organized, or registered under the laws of the State of Hawai‘i?

If yes, attach copy of the most current annual exhibit filed with the State of Hawai‘i Department of Commerce and Consumer Affairs. 2. Is the firm authorized to do business in the State of Hawai‘i?

If yes, attach copy of firm general excise tax license. 3. Does the firm have a current and valid permit to practice public accountancy in the State of Hawai‘i? If yes, provide firm license identification number: ______

4. In the past 5 years, has any permit for the firm to practice public accountancy in any jurisdiction been suspended, revoked or otherwise subject to any

professional disciplinary action? If yes, attach detailed description. 5. Are there any lawsuits, complaints, administrative actions or professional disciplinary actions pending against the firm in any jurisdiction? If yes, attach detailed description. 6. In the past 5 years, has the firm filed a lawsuit or commenced any administrative proceeding in connection with any professional services contract with a federal,

state or local government entity? If yes, attach detailed description. 7. In the past 5 years, has the firm failed to complete a professional services contract with a federal, state or local government entity? If yes, attach statement of the following for each such contract: a. Contracting parties’ names;

b. Effective date of contract; c. Description of scope of services; and d. Specify if contract was terminated for default, terminated for convenience, or describe other circumstances of the firm’s failure to complete the contract. 8. Does the engagement partner/partner in charge have a current and valid license to practice public accountancy in the State of Hawai‘i? If yes, provide partner name and license number: Name: ______Hawai‘i License No.: ______

9. In the past 5 years, has any CPA license issued to the engagement partner/partner in charge in any jurisdiction been suspended, revoked or

otherwise subject to any professional disciplinary action? If yes, attach detailed description. 10. Are there any lawsuits, administrative actions or professional disciplinary actions pending against the engagement partner/partner in charge in any

jurisdiction? If yes, attach detailed description. Form SOQ 2021-01 2 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

A. CERTIFIED PUBLIC ACCOUNTING FIRMS YU ESU NU OU 11. Is the firm in good standing with the American Institute of Certified Public Accountants (AICPA)? 12. Does the firm have a current quality control review report required by AICPA? If yes, attach copy. If no, when is the review scheduled? ______(Qualification is subject to completion of this review.) 13. Does the firm have: a. A current State of Hawai‘i Department of Taxation “Tax Clearance

Certificate” (Form A-6)? b. A current State of Hawai‘i Department of Labor and Industrial

Relations “Certificate of Compliance” (Form #LIR27)? c. A current State of Hawai‘i Department of Commerce and Consumer Affairs “Certificate of Good Standing”? 14. Does the firm have professional liability insurance? If yes, attach copy of valid certificate of insurance. 15. Does the firm’s audit staff who may be assigned to the engagement meet the continuing professional education (CPE) requirements as prescribed by the 2018

revision of Government Auditing Standards issued by the Comptroller General of the U.S. Government Accountability Office? 16. Will the firm’s staff who may be assigned to the engagement include Hawai‘i- licensed CPAs or will they be directly supervised by a Hawai‘i-licensed CPA?

If yes, attach list of name(s) of Hawai‘i-licensed CPAs and Hawai‘i license numbers. 17. Is the firm independent from Hawai‘i state agencies? If no, attach list of the Hawai‘i state agencies for which independence is impaired.

Form SOQ 2021-01 3 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

Part III. Experience and Qualifications of Firm

Provide information related to the experience and qualifications of the firm and partners,

principals, managers and seniors available for engagements with the Office of the Auditor.

Form SOQ 2021-01 4 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

Part III. Experience and Qualifications of Firm (continued)

PERSONAL HISTORY STATEMENT OF PARTNERS/PRINCIPALS ASSIGNED TO OFFICE OF THE AUDITOR ENGAGEMENTS

Name:

Position with Firm:

As Partner/Principal As Partner/Principal Total in This Firm in Other Firms

Years of Experience: ______

Current CPE Requirements met: Yes No (In accordance with 2018 revision of Government Auditing Standards)

Education (College; Degree; Specialization):

Membership in Professional Organizations:

License(s) (State; Type; Original License Date; License Expiration Date):

Responsibilities on Previous Government or Similar Type of Engagements:

Form SOQ 2021-01 5 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

Part III. Experience and Qualifications of Firm (continued)

PERSONAL HISTORY STATEMENT OF MANAGERS/SENIORS ASSIGNED TO OFFICE OF THE AUDITOR ENGAGEMENTS

Name:

Position with Firm:

As Manager/Senior As Manager/Senior Total in This Firm in Other Firms

Years of Experience: ______

Current CPE Requirements met: Yes No (In accordance with 2018 revision of Government Auditing Standards)

Education (College; Degree; Specialization):

Membership in Professional Organizations:

License(s) (State; Type; Year; Original License Date; License Expiration Date):

Responsibilities on Previous Government or Similar Type of Engagements:

Form SOQ 2021-01 6 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

IV. Past Performance on Projects

Provide a list of professional services completed within the last five (5) years for Hawai‘i state

and local government entities. Indicate the name(s) of the report(s) issued.

Financial Statement Audits:

Agency/Name of Audit Fiscal Year Total Hours

Single Audits:

Agency/Name of Audit Fiscal Year Total Hours

Accounting Services:

Agency/Description Fiscal Year Total Hours

Consulting Services:

Agency/Name of Project Fiscal Year Total Hours

Form SOQ 2021-01 7 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

V. References

Provide a minimum of three (3) references, two (2) of which that have had services rendered during the past year.

1. Client Name: Client Address: Client Contact Person: Client Telephone Number: Client Email: Nature of Services Provided: Date(s) of Engagements(s):

2. Client Name: Client Address: Client Contact Person: Client Telephone Number: Client Email: Nature of Services Provided: Date(s) of Engagements(s):

3. Client Name: Client Address: Client Contact Person: Client Telephone Number: Client Email: Nature of Services Provided: Date(s) of Engagements(s):

Form SOQ 2021-01 8 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

Part VI. Human Resources (Capacity)

Provide detailed information regarding the number of personnel currently employed in the organization as a whole.

Current number of personnel in the organization*:

Employee Classification Audit Tax Consulting Total

Partners/Principals ______

Senior Managers/Managers ______

Supervisors/Seniors ______

Staff ______

Clerks, typists, and other supporting staff ______

TOTAL Organization Employees ______

*Do not double count your employees between audit and other categories. List each employee under only one category.

Number of personnel available for assignment to Office of the Auditor engagements:

Employee Classification Audit Tax Consulting Total

Partners/Principals ______

Senior Managers/Managers ______

Supervisors/Seniors ______

Staff ______

Clerks, typists, and other supporting other supporting staff ______

TOTAL Employees Available ______

Form SOQ 2021-01 9 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

VII. Areas of Interest

Our firm is interested in financial audits single audits other related services for the following size projects: (check each box that applies)

UpU to 1,000 Hours U

1,001 to 2,500 Hours

2,501 to 5,000 Hours

5,000+ Hours

Department of the Attorney General

Department of Education

Department of Hawaiian Home Lands

Department of Transportation – Harbors Division

Department of Transportation – Highways Division

Hawai‘i Public Housing Authority

Department of Accounting and General Services – Stadium Authority

Form SOQ 2021-01 10 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

VIII. Other Information

Provide the following additional information:

(1) Statement indicating any conflicts of interest under the Hawai‘i State Ethics Code in

performing services for the Office of the Auditor and/or the State of Hawai‘i. Please

attach a list of all firm employees who serve on Hawai‘i state boards, commissions, etc.

For additional information, please refer to the State Ethics Code, Chapter 84, HRS, or go

to the Hawai‘i State Ethics Commission website at http://ethics.hawaii.gov;

(2) Promotional or descriptive literature the firm desires to submit; and

(3) Any other pertinent data the firm desires to disclose.

Form SOQ 2021-01 11 ATTACHMENT 1 RFQ NO. 2021-01 STATE OF HAWAII OFFICE OF THE AUDITOR FORM SOQ 2021-01 STATEMENT OF QUALIFICATIONS

I hereby certify that the information included in the preceding Statement of Qualifications and

any additional information included with the Statement of Qualifications is a true statement of

fact.

I further certify that Prospective Offeror shall immediately inform the Office of the Auditor of any

change in information furnished which would disqualify the Prospective Offeror from being

considered for a contract award.

Perspective Offeror: (Organization Name) ______

Person Authorized to Sign: (Print Name) ______

Signature of Person Authorized to Sign: ______

Title of Person Authorized to Sign: ______

Date: ______

Form SOQ 2021-01 12 ATTACHMENT 1 RFQ NO. 2021-01