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RFP 2025-10: Professional Auditing Services Questions 1-13 Submitted To: Morgan Kwapis, Otsego County Finance Director Submitted By: Gregory Soule, CPA, Partner at AHP PLC on Monday July, 7, 2025 at 12:50pm Question 1: Why is the County seeking audit proposals at this time? Are the any disagreements with the current auditor and have they been invited to propose? Otsego County’s Response to Question 1: The County is seeking proposals as the previous contract cycle is complete. There have been no disagreements and they are able to propose. Question 2: Does the county prefer the audit to be conducted onsite or remotely? What is the current method the audit is conducted? If onsite, how many people and for how long are the auditors onsite? Otsego County’s Response to Question 2: The County does not currently have a preference as to remote or onsite. The 2023 audit is currently being conducted remotely. In the past, the audits conducted onsite have included 4-5 people for 10-13 days. Question 3: What accounting software does the County use? Otsego County’s Response to Question 3: BS&A Question 4: Does the County record all material accruals at year-end for audit purposes and provide the auditor with the necessary reconciliations? Are there any areas where you know you’ll need assistance (capital assets, leases, SBITAs, pension/OPEB, other accruals)? ---PAGE BREAK--- Otsego County’s Response to Question 4: We are currently under contract with H&S Companies and all required reconciliations will be provided. Question 5: How many journal entries did the auditors propose for the prior audit and what was the nature of those entries? Otsego County’s Response to Question 5: None Question 6: Do you anticipate continuing to need a Single Audit for 2024 or beyond (federal expenditures over $750,000 / $1,000,000)? Otsego County’s Response to Question 6: Yes Question 7: Have there been any changes in the staffing of the accounting department recently? Otsego County’s Response to Question 7: Yes, the prior finance director unexpectedly resigned in December 2024. Since then, a new finance director and deputy finance director have been hired. Question 8: Have there been any changes to the County’s finances or programs that would affect the audit since 2022? Otsego County’s Response to Question 8: No ---PAGE BREAK--- Question 9: We noticed that the 2022 audit listed the Otsego County Road Commission as a component unit that the Auditors did not audit, but they were not listed as a component unit on page 12 of the RFP. Has there been any change in the relationship between the County and the Road Commission since 2022? Otsego County’s Response to Question 9: Otsego County Road Commission is a component unit of Otsego County but audited separately. Question 10: Who maintains the capital asset and debt records and how is depreciation calculated? Otsego County’s Response to Question 10: The County maintains records with assistance this year from H&S Companies. Straight-line depreciation is used. Question 11: Who prepares the Act-51, F-65, Qualifying Statement, and 5572 reports? Otsego County’s Response to Question 11: Act-51 is prepared separate from the County audit under the Bus System audit. The F-65 is to be prepared by the auditor. The qualifying statement is to be prepared by the County and the 5572 Reports are to be prepared by MERS. Question 12: What was the price the County paid for the most recent audit (2022 or 2023)? Did you receive any unexpected additional bills from your auditors for the past several years? Otsego County’s Response to Question 12: The 2022 audit fee was $39,000, this included the single audit at $2,500. Question 13: We noticed that the 2023 audit is not yet completed; what is the expected timing for that? We also noticed that 2022 was filed late as well. What has caused the County to complete and file the audits late? ---PAGE BREAK--- Otsego County’s Response to Question 13: Workpapers were submitted to the auditor on March 25, 2025. We were advised that we will have a rough draft this week.