Request For Proposal

Sustainable Energy Fund Accounting Services

The Sustainable Energy Fund is requesting proposals from accounting firms for the preparation of an annual audit and applicable tax returns beginning with the 7/1/11- 6/30/12 fiscal year. 

Sustainable Energy Fund (SEF) is a 501(c)(3) non-profit corporation formed to promote, research and invest in clean and renewable energy technologies, energy conservation, energy efficiency and sustainable energy enterprises that provide opportunities and benefits for PPL ratepayers. The Fund was formed pursuant to a joint settlement agreement arising from the Pennsylvania Utility Commission (PUC) electric utility deregulation proceedings in 1998. The agreement provides, in part, a rate surcharge on electric power consumers (ratepayers) which expired on December 31, 2006. The Fund is managed by a president who reports to a Board of Directors. The Sustainable Energy Fund has a June fiscal year end.

On December 5, 2005 Sustainable Energy Fund created Green Connexions as a for-profit entity. The purpose of Green Connexions is to support SEF and its mission in a manner that is equitable, purposeful and competitive in the sustainable/renewable energy market.  Green Connexions, a C Corp with a June fiscal year end, is a wholly owned subsidiary of Sustainable Energy Fund.

On October 26, 2010, the Green Connexions Board created Sustainable Energy Systems.  Sustainable Energy Systems provides an environmentally and socially conscious owner affordable and abundant onsite energy that utilizes renewable resources as its primary energy source. Sustainable Energy Systems, LLC, a wholly owned subsidiary of Green Connexions, has a June fiscal year end.

SCOPE OF ENGAGEMENT

The engagement will include the following:  (1) audited financial statements of the Sustainable Energy Fund (including subsidiaries) with generally accepted auditing standards and applicable state and federal grant regulations, including the internal control structure reports, reports on compliance with applicable laws and regulations, and a management letter.  The presentation of the financial statements should be comparative, with your report making reference to the audit of the prior year. The scope of the engagement also includes the applicable tax returns for all entities.

A copy of the June 30, 2011 audited financial statements with supplementary schedules of Sustainable Energy Fund are available at:

http://www.thesef.org/Portals/0/Graphics/auditors%20report%202011.pdf

ASSISTANCE PROVIDED TO AUDITOR BY THE ORGANIZATION

Sustainable Energy Fund shall provide clerical and accounting support as needed to prepare schedules and account analysis and to pull and/or copy original documents for the audit.  Auditors will prepare bank confirmations.  We will expect a list of documents and work papers needed for the audit, and request that this list be provided to us at least one month prior to the commencement of final fieldwork.

A list of items and schedules to be completed by Sustainable Energy Fund/Green Connexions/Sustainable Energy Fund is provided on the final page of the Request For Proposal.  Any additional schedules are to be included in the price of the accounting services.

ENGAGEMENT TIMETABLE

Sustainable Energy Fund will be ready for audit fieldwork by August 1st.  Our preferred timetable would be fieldwork from August 1^st through August 15^th.  Dates of preliminary fieldwork are negotiable.

REPORTS AND DEADLINES

(1)  Audited Financial Statements with Supplementary Schedules

• Draft report by September 15th
• Interview with Finance Committee at the SEF October meeting
• Interview with Executive Committee at the SEF October meeting
• Final report including twenty (20) originals by October 30^th

(2)  Applicable Federal and State tax returns

• Sustainable Energy Fund
• Green Connexions

PROPOSAL REQUIREMENTS

1. A multiple year relationship is anticipated, but not guaranteed.  Proposals should outline the cost per year for a three-year period. 

2. After the initial three year period, the incumbent Accounting Firm will be asked for an estimate of costs for the upcoming year.  Based on the input of the appropriate staff at Sustainable Energy Fund, the Finance Committee may recommend to the Executive Committee that the Incumbent Accounting Firm be retained for another year.  The Executive Committee will then accept or reject this recommendation.  This process many continue for an indefinite number of years.

3. In the event that the Executive Committee votes not to retain the Incumbent Accounting Firm, a new 3 year RFP will be requested with the intention of establishing a long-term relationship.

4. There will be no changes in the work to be performed hereunder or in the price for such work without the prior written approval of Sustainable Energy Fund, which may be withheld in their sole and absolute discretion.  However, Sustainable Energy Fund will approve changes in the work and increases in the contract price for any work expressly requested by Sustainable Energy Fund which is beyond the scope of the work required to complete the audit as contemplated hereby and for any additional work which the auditing firm reasonably believes is necessary to complete the audit if the need to perform such work was not reasonably foreseeable by the auditing firm at the time it submitted its proposal; provided however, that prior to performing any such work, the auditing firm shall submit a written Change Order request setting forth a detailed narrative of the nature and reason for the Change Order request, the proposed increase to the contract price, a detailed itemization of such work, the estimated amount of time to perform each such item of work, the employee(s) who will be performing such work, and the applicable hourly rates.  Sustainable Energy Fund and the auditing firm shall use all reasonable efforts to reach a mutually acceptable agreement regarding such change order requests.  However, if the parties cannot agree thereon, the work will be performed in the manner and for the price approved by Sustainable Energy Fund, subject to the auditing firm’s right to arbitrate the dispute as set forth herein.

5. Please provide a schedule of proposed hours by staff classification and staff rates upon which your fee has been based.

6. Provide a summary of your firm’s qualification to perform these services, including resumes for the partner, manager, and in-charge accountants expected to be assigned to the audit.  Also describe any specific experience related to non-profit organizations.

7. Provide three clients references, with telephone numbers, whom the Sustainable Energy Fund is authorized to contact.  Preferably, references should include clients for whom your firm has performed similar services.

8. Provide a copy of your firm’s most recent peer review or quality review.

9. Provide a schedule of hourly rates for additional services that may be required.

MISCELLANEOUS

1. If the auditing firm requires Sustainable Energy Fund to execute an engagement letter or similar document, then acceptance of its proposal is hereby conditioned upon and subject to Sustainable Energy Fund’s approval and acceptance of such document.  Notwithstanding Sustainable Energy Fund’s execution of such document, any term or condition thereof which is inconsistent or in conflict with, different from, or in addition to, any term or condition of this request for proposal or any related document provided to the auditing firm by or on behalf of Sustainable Energy Fund shall be deemed a nullity and shall not constitute a part of the contract between the parties for the work described herein.

2. The parties agree that any and all disputes or disagreements concerning the auditing firm’s fees and payment of such fees, including but not limited to, any proposed increases in the contract price as permitted herein to which Sustainable Energy Fund has not agreed in whole or in part, shall be resolved by arbitration, using one arbitrator, in Luzerne County, Pennsylvania, in accordance with the Commercial Arbitration Rules of the American Arbitration Association, for which the decision of the arbitrator shall be final and binding on the parties thereto and the judgment upon any award rendered may be entered in any court of competent jurisdiction.  In any arbitration, the “prevailing party”, as determined by the arbitrator, shall be entitled to an award of all of its reasonable attorney’s fees and litigation expenses incurred in such arbitration from the non-prevailing party.

AWARD OF CONTRACT

If you are interested in this opportunity, please contact Jennifer Hopkins in writing by

March 1, 2012 (email: jhopkins@thesef.org).  If necessary, a conference will be scheduled for March 5, 2012 with interested parties to discuss Sustainable Energy Fund’s operations, accounting systems, and the scope of the engagement. 

Your sealed proposal must be received by March 30, 2012 and should be mailed or delivered to:

Jennifer Hopkins, President

Sustainable Energy Fund

1005 Brookside Road

Suite 210

Allentown, PA  18106

A subcommittee of the Finance committee will review all proposals.  The selection of the auditor will be based upon technical qualifications, appropriateness of the staff level, hours committed to the engagements, client references, proximity to the area of operations, and cost.  Sustainable Energy Fund plans to award the contract by April 30, 2012.

List of items and schedules to be completed by Sustainable Energy Fund/Green Connexions/Sustainable Energy Fund:

• Copies of minutes of the Board of Directors and Finance Committee meetings
• List of Board of Directors who served during the year
• Schedule of stipends paid to each Board member
• List of related party transactions
• Trial Balance
• Bank account reconciliations for all bank accounts including list of outstanding checks with check #, date, payee and amount and detail and any other reconciling items
• Schedule of Accounts Receivable and supporting documentation
• Schedule of fixed asset additions including date, vendor, description and amount (supporting vendor invoices also available)
• Loan Loss/Equity Valuation Allowance analysis
• Analysis of Deposits
• Accounts Payable Aging Detail
• Schedule of Accrued Payroll
• Schedule of Accrued Benefits
• Schedule of Deferrals
• Functional expense allocation worksheet

Available in the office:

• Agreements with grantees, investees and borrowers
• Program related investment files with updated compliance control schedules and all supporting financial statements and documents
• Investment account statements for the year
• Investment manager’s performance reports for the twelve months ending June 30
• Payroll registers