Internal Audit Services

The vendor is required to provide encompasses two annual internal audits for each fiscal year, starting with fiscal year 2026 through fiscal year 2030, as follows: (1) an audit of the billing processes of authority maintenance contractor; and (2) an audit of authority financial procedures. - Risk assessment of maintenance contractor billing process
1. Conduct a risk assessment of the contractor’s billing process as it relates to authority by performing the following procedures:
• Develop an understanding of the contractor’s billing process through inquiries and inspection of relevant documents
• Document results of inquiries and inspections
• Test samples to determine whether the controls are working and effective
• Determine whether any improvements are necessary for the billing process
• Identify areas posing significant risk of inaccuracies in billing authority 
• Determine the samples sizes for tests of direct based on the results of risk assessment
• Report the results of the risk assessment review
- Verification of billings by authority maintenance contractor
• Compare agreed labor hours billed to timesheets
• Compare agreed labor rates billed to rates authorized per contract
• Compare agreed labor rates billed to actual labor rates per payroll registers
• Compare agreed labor hours per timesheets to the corresponding payroll register
• Determine over - or under- billing of indirect expenses by obtaining the actual audited overhead rate for the year of the audit and comparing it to the provisional rates used by the contractor for billing. 
• For contractors with an agreed overhead ceiling, actual overhead rates cannot exceed the overhead rate cap.
- Internal audit of authority financial procedures:
• Work collaboratively with authority staff to determine financial processes to be audited.
- Prior periodic internal audits addressed the following areas:
• Accounts payable
• Accounts receivable
• Bank reconciliation and interbank transfers
• Employee expense reimbursement
• Equipment inventory
• General ledger
• Procurement
• Investments
• Payroll
- Document results of inquiries and inspections.
- Test samples to determine whether the controls are working and effective.
- Determine whether any improvements are necessary for the financial processes that have been examined.
- Report the results of the internal audits.
- Contract Period/Term: 5 years
- Questions/Inquires Deadline: June 19, 2025