Independent Auditor Request for Proposal (RFP)

• Audit of the consolidated financial statements for the fiscal year ending March 31
• Preparation of the related auditor’s communication and management letter
• Presentation of the audit results and the management letter to the ACLU-KY Finance Committee and full Board of Directors
• Consultation on financial and other matters related to the organization as required annually
• File taxes – Form 990 and 990-T (as applicable) – each year for the organization

The primary users of financial statements are the Board of Directors, the Finance Committee, potential grantors, donors and staff. In addition to the audit of the financial statements, meetings with management, meetings with the Finance Committee and the Board and tax preparation, we require a limited amount of partner and manager time for consultation with management throughout the year.

Specific questions for your response are listed in Exhibit I. Please note that your proposed fees should cover a three-year period, beginning with the year ending March 31, 2027, and should include the routine and consultative services outlined above.

To minimize the time required for you to prepare your proposal, we have enclosed the following background information for your consideration:

Exhibit I Proposal Requirement

Exhibit II Audit Timetable and Deliverables

Exhibit III Scope of Operation

A copy of your written proposal is due to our office by November 1, 2026 and will be reviewed by the ACLU-KY Finance Committee. Please limit your proposal to 4 pages in length. Please deliver an electronic version to T Gonzales at [email protected] with Subject: Auditor Proposal RFP. Once a final decision has been made, you will be notified of the Finance Committee’s selection no later than November 24, 2026.

The ACLU-KY reserves the right to reject any or all proposals.

By accepting to take part in this proposal process, you agree to keep in confidence all information imparted to you by ACLU-KY during the process, not to disclose it to third parties, and not to use it for any other purpose than for participation in the proposal process.

Firm Description:

1. Describe your firm on an overall basis, both locally and nationally.
2. Summarize the firm’s qualifications and experience regarding nonprofit organizations from an audit and tax perspective.
3. Describe your local audit staff turnover experience within the past three years and how you would provide continuity of assigned personnel on this engagement.
4. Describe the overall results of your firm’s most recent peer review.

Quality of Audit:

1. Describe your firm’s audit approach, including review of internal controls.
2. Describe how your firm will obtain a basic understanding of the ACLU-KY’s operations and activities for planning the audit.
3. Describe the local office’s experience in dealing with other nonprofit clients like the ACLU-KY.
4. Describe the key personnel to be utilized on the engagement along with resumes of key personnel. Indicate their degree of expertise and prior experience which would be appropriate for the engagement.
5. Describe your firm’s staff training and development policies and programs.
6. Details of your firm’s approach, processes and costs to transition the audit and 990 preparation services in the first year.
7. Describe your ability to prepare and file Form 990 and Form 990-T on an annual basis.

Management of Contract:

1. Describe procedures utilized to monitor the progress of the work for periodic evaluation and communication to management of ACLU-KY so that problems can be resolved.
2. Identify key local engagement personnel who will be continuously available for consultation or discussion.
3. Describe any relationships with your existing clients who might jeopardize your objectivity or independence.

Fees/Costs:

1. Estimate total fees and hours by employment classification and out-of-pocket cost annually for each of three years, given the services required as outlined in this document.
2. Estimate the “first time through” hours which would be required of your Firm and our staff.
3. Estimate the internal control review hours which your Firm is committed to providing.

Equity, Diversity, Inclusion, and Belonging

The American Civil Liberties Union of Kentucky (ACLU-KY) uses a range of vendor services as we work to meet our mission. We screen vendors to ensure our spending of donor and grant dollars aligns with our mission and our equity, diversity, inclusion, and belonging (EDIB) goals. We seek to work with local vendors who are directly impacted by the issues that we work on and use sustainable practices to reduce their business's negative environmental impact on our planet.

Please fill out ONE of these surveys as part of your proposal and to the best of your ability.

• Small businesses should fill out this survey.
• Corporations and large businesses should fill out this survey.

References and Other Information:

1. Submit client references for the lead auditor of the proposed client service team.
2. Submit local non-profit client references.
3. Provide any other information you deem desirable.

Projected Timetables Each Year: While the ACLU-KY fiscal year ends on March 31st annually, we are an affiliate of a national organization and we must first go through a reconciliation with our national office during the months of April and May before it is possible to start an audit of our affiliate finances.

Additionally, we expect to receive necessary information on our pension obligation from our national organization each year by late August or early September. We prefer to have a complete audit presented to the Finance Committee and then the Board of Directors during their September meeting, and the pension information may have an impact on this schedule. The Board meeting is held the third Sunday of September.

March 31 Year-End

June-July Audit Planning

August Audit Work

One week prior to September board meeting Copy of Audited Financial Statements

One week prior to September board meeting Management Letter

One week prior to September board Meeting Presentation to Finance Committee

September board meeting Presentation to the ACLU-KY Board

Deliverables:

1. Audited consolidated financial statements of ACLU-KY for year ending March 31.
2. Auditor’s communication and management letter comments.
3. Filing of audit report with Legal Services Corporation and completion of associated other reports.
4. ACLU-KY’s Finance Committee presentation of audit results and the management letter.
5. ACLU-KY’s Board presentation of the results of the audit and the management letter.

Other Consultation Services:

Financial, operational and tax preparation will be required annually on matters related to management. These services are expected to be included in your base fee for services which are expected to require a limited number of additional hours annually from a partner or manager.

The ACLU-KY was founded in 1955 as an affiliate of the national ACLU, which was founded in 1920. In the beginning, we were primarily a legal organization representing clients whose civil liberties had been violated through government overreach. Over time, the organization(s) developed robust advocacy programs, lobbying proactively and defensively on civil liberties related legislation at the state and federal level.

The ACLU-KY has seen tremendous growth over in recent years and is currently a staff of 15 across five departments – Legal, Advocacy, Development, Communications, and Administration. Racial justice has been, is now, and will continue to be central to our mission. We dedicate ourselves to pursue cases designed to have a significant and wide-reaching effect on communities of color, to work in coalition with other civil rights groups and local advocates to lobby in local and state legislatures, and to support grassroots movements. Through these efforts, we strive to educate and empower the public on how racism impacts the issues that we work on - including but not limited to criminal justice reform, reproductive freedom, voting access, LGBTQIA, and immigrants’ rights - and we commit to consider racial impacts when making hiring, policy, and administrative decisions for the organization.

Total annual revenue for the organization is approximately $2.5 million of which the majority is derived from grants and donors.

In an effort to reduce the amount of onsite time for the auditor, the staff at ACLU-KY focuses on organizing the required information ahead of the auditor’s arrival in an effort to help expedite the audit process.

Attachments: Audited Consolidated Financial Statement for year ended March 31, 2026.

Any additional information which you may require to prepare your proposal may be requested from T Gonzales, Deputy Director, at 502-581-9746 ext. 205 or [email protected].