Request for Proposal

This page contains information relating to all open and recently closed RFPs for the Environmental Quality Division at the City and County of Denver Department of Environmental Health.

Financial Auditing Services Associated with Landfill and Composting Operations

Proposal submittal due no later than 4 p.m. local time, August 29, 2014

The City is requesting proposals from qualified firms to review financial statements of WMC associated with landfill and composting operations and to conduct an audit of that WMC’s performance and compliance with its contracts with the City. Very generally, we are requesting an audit of WM files to confirm that the City is receiving the landfill’s best gate rate and whether various royalties and other fees are accurately reported and paid.  Of note, the audit is due December 31, 2014.

Question #1

Received 8/7/14: Please clarify whether the need for a Certified Public Accountant and attestation work is a requirement or option.

Response #1

It is not required; it is optional.

Question #2

Received 8/19/14: When do you think the earliest date the work would begin based on Contracting Process? 

Response #2

The City anticipates that work would begin no later than November 1, 2014, and possibly sooner pending the contracting process. Given the possible start date, the City may be somewhat flexible with the anticipated project completion date of December 2014.

Question #3

Received 8/20/14: Please define “present” as it relates to the audit of the composting facility.

Response #3

We anticipate “present” will be through and including third quarter 2014.

Question #4

Received 8/20/14: Can you provide a copy of an audit of the City landfill for the prior three years?

Response #4

The report is not available for review as it contains Confidential and Proprietary business information.

Question #5

Received 8/20/14: Do you have a fee range estimate?

Response #5

The City anticipates that the cost will be less than $100,000 and, if needed, certain aspects of the scope of work may be flexible with respect to the project cost.

Question #6

8/20/14: Referring to question #1 – How can the audit requirements be fulfilled without the use of a certified public accountant?

Response #6

The City requires the financial review and performance audit to be conducted in accordance with the applicable generally accepted auditing standards in the United States contained in the “Statements on Auditing Standards,” published by the American Institute of Certified Public Accountants and other common industry practices and accounting literature.

Question 7

Received 8/20/14: Can we expect the contractor – Waste Management Colorado – to draft the audit report to include a balance sheet, income statement, statement of changes in equity, statement of cash flows, and footnotes?

Response #7

No. In accordance with the City’s rights under the landfill agreement, the City will arrange access to the books and records for the a) financial review to determine whether the WMC disposal rates charged to the City are the lowest and best, and b) performance audit to determine items such as whether WMC has accurately calculated royalty payments owed to the City, whether WMC is accurately and properly charging the Environmental Maintenance Fees and Hazardous Substances Response Fund fees, whether volumes are accurately reported, whether the Minimum Royalty Guarantee is properly calculated, and whether an increase in the Bonds (or letter of credit) is considered necessary.