External Audit Services

The vendor is required to provide Internal audit team is seeking an external firm to audit the private markets sub programs of private equity and real assets.
- Financial-services hub and manages an array of responsibilities including the investment of public funds and trust funds, issuing state bonds, proving financial and banking services to state agencies, and protecting public funds.
- Programs to be audited
• Real assets (expected audit October/November 2025)
• Private equity (expected audit February/March 2026)
1. Governance and oversight
• Policies, procedures, manuals, strategies, etc.
• Investment strategies e.g., strategic asset allocation, tactical asset allocation board.
• Management oversight
• Private equity committee oversight
• Conflicts of interest
• Material non-public information (MNPI)
• Board reporting and review (management and consultants reports)
• Delegated authority
2. Investment managers
• New manager (s) selection, thesis review, questionnaire review, scoring & underwriting
• Initial diligence and onboarding
• Existing manager(s) due diligence (odd/IDD), termination, etc.
• Existing manager(s) performance review
• Relationship management
• Portfolio structuring and management
• Existing managers fees and expenses determination, review, etc.
• Capital calls, commitment and distribution
• Conflict of interest (COI), code of ethics (COE), disclosures
• Material non-public information (MNPI)
3. Legal and compliance
• Contract negotiation
• Legal agreement process e.g., IMA (investment agreement), LPA (limited partnership agreement), separately managed agreements (SMA), GP (general partnerships), investment advisor and consultancy contracting process
• Periodic review of controls, segregation of duties
• Compliance review and monitoring e.g., trading,
4. Risk management, fiduciary management and monitoring:
• Research and performance assessment
• Asset class studies, annual reviews & allocation 
• ALM framework
• Data management and integrity
• System access, controls and segregation of duties
• Proxy voting and engagement 
• ESG and climate-related risks
• Investment fair valuation and related management and consultant review
• Audited investment manager accounts and process
• Regulatory framework
• Portfolio monitoring calls and site visits
• Staff monitoring travels
5. Investment accounting and operations
• Custodial accounting and accounting book of record
• Private markets investment accounting & reporting
• Reconciliations and consolidation into final accounts
a. Audit planning:
• Audit engagement plan and planning memo
• Audit approach, methodology, communication plan and audit timelines/framework
• Audit scope, and audit objectives
• Entrance agenda and meeting document
• Risk and control matrix with risk ranking
• Audit program description
• Sampling and testing procedures
• Audit team
b. Audit fieldwork:
• Testing work papers
• Request items – schedule of testing items
• Summary of findings document
• Supporting documentation for findings
c. Audit reporting:
• Statement of findings and observations
• Draft audit report
• Exit meeting document
• Schedule of processes tested and audited
• Schedule of meetings held
• Final draft report with management responses.
• Final audit report.
- Contract Period/Term: 3 years
- Questions/Inquires Deadline: June 27, 2025