Download Audit Information for RFP

REQUEST FOR PROPOSALS
Financial and Compliance Audits
June, 2011
Rebecca Mitchell, C.P.M.
Director of Acquisition Management
[email protected]
CHEROKEE NATION
P.O. Box 948
Tahlequah, OK 74465
(918) 453-5215
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TABLE OF CONTENTS
I.
Introduction
II.
Summary
III.
Background
IV.
Contractor’s Acknowledgements
V.
General Information and Conditions
VI.
Cherokee Nation Indian Preference Policy
VII.
Instructions for Preparation of Proposals
A.
Technical Proposal
B.
Cost Proposal
Attachment A:
General Audit Information
Attachment B:
Cherokee Nation Businesses
Attachment C:
Cherokee Nation Entertainment LLC
Attachment D:
Tsa-La-Gi Village Apartments
Attachment E:
Cherokee Nation Gaming Commission
Attachment F:
Cherokee Nation Industries
Attachment G:
Will Rogers Downs, LLC
Attachment H:
Aerospace Products S.E., Inc.
Attachment I:
Cherokee CRC, LLC
Attachment J:
Cherokee Nation Businesses, LLC
(Blended Component Units of CNB)
Attachment K:
SAMPLE Contract
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INTRODUCTION
The Cherokee Nation is the federally recognized government of the Cherokee
people and thereby has sovereign status granted by treaty and law. Tribal
sovereignty is the right to self-governance. It is essentially the right to decide
issues which affect the good of the population; to design and implement
programs in response to specific needs of the population; and, to establish goals
for the improvement of the organization’s ability to achieve program objectives.
The seat of tribal government is the W.W. Keeler Complex near Tahlequah,
Oklahoma, capital of the Cherokee Nation. The Cherokee tribal registry lists
more than 230,000 citizens, and half approximately live in the 14-county
jurisdiction of the Cherokee Nation.
SUMMARY
The Cherokee Nation is receiving proposals from well-qualified firms to perform
financial and compliance audits. The contract award will be for three (3) years
with an option for the Cherokee Nation to renew the contract annually for up to
two (2) additional years. Contract award and renewals will be subject to
availability of funds and satisfactory delivery of services. The contract will
contain a cancellation clause in favor of the Cherokee Nation.
The audits will consist of services to the Cherokee Nation, Cherokee Nation
Businesses and majority-owned subsidiaries, and the Tsa-La-Gi Apartments in
Sallisaw, Oklahoma as follows:
1)
2)
3)
4)
5)
6)
7)
8)
9)
Single audit report (OMB Circular 133 compliance) for Cherokee Nation,
and audit of the Nation’s Comprehensive Annual Financial Report;
Financial audit for Cherokee Nation Entertainment and regulatory
compliance audit for Nation Indian Gaming Commission;
Financial audit for Will Rogers Downs and regulatory compliance audit for
the State of Oklahoma and Oklahoma Horse Racing Commission;
Financial audit of Cherokee Nation Businesses;
Financial audit of Cherokee Nation Industries;
Financial audit of Cherokee CRC;
Financial audit of Aerospace products S.E.;
Financial audit of two additional CNB component units;
Compliance audit of the Nation’s HUD 202 Housing project Tsa-La-Gi
Apartments.
Copies of the Request for Proposal may be downloaded from the Cherokee
Nation bid website www.cherokeebids.org under the Cherokee Nation
procurements icon. Copies may also be requested from Rebecca Mitchell,
C.P.M, Director of Acquisition Management, Cherokee Nation, at
[email protected].
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The Cherokee Nation reserves the right to determine a proposal in terms of
meeting RFP requirements. The Cherokee Nation reserves the right to accept or
reject any and all proposals received and to negotiate with offerors regarding the
terms of their proposal or parts thereof. The Cherokee Nation reserves the right
to award a contract in the best interests of the Cherokee Nation.
All questions, correspondence and communication regarding this RFP
must be directed to Rebecca Mitchell at [email protected]. Contact
with other employees of the Cherokee Nation in relation to this RFP is
prohibited, and may result in disqualification of the offerors proposal.
BACKGROUND
The Cherokee Nation is the sovereign Tribal Government of the Cherokee
people and functions within the framework of the Cherokee Constitution adopted
in 1975. The jurisdiction is in 14 counties of Northeastern Oklahoma and is
headquartered in Tahlequah, Oklahoma. The fiscal year begins on October 1
and ends on September 30. The government is composed of three branches,
Executive, Legislative and Judicial. The Cherokee Nation has approximately
2,800 employees and receives funding from some 29 funding sources that
includes funding from federal agencies, state agencies, corporate and private
funding sources, enterprise activities, various land and lease operations and trust
funds. As of 2010, the Cherokee Nation has adopted GASB Statement No. 34,
The Nation has 5 discretely presented component units and one blended
component unit. In addition, the Nation operates a HUD section 202 apartment
project which requires a separate audit. A complete listing of compent units can
be found in the Nation’s FY2010 Comprehensive Annual Report (CAFR) at the
following weblink:
http://www.cherokee.org/Docs/Org2010/2011/3/24227Fiscal_Year_Ended_Sept_
30_2010_-_V2.pdf
The following entities are included in this Request for Proposals:
The first component unit is the Cherokee Nation Businesses, LLC. (CNB), a
100% owned tribal corporation which was created on June 16, 2004, to provide
“decision support” services and strategic coordination to the Nation and to act as
a holding company for certain Cherokee Nation investments in business
enterprises. A listing of CNB’s majority owned component units can be found in
Attachment J.
Tsa-La-Gi Village Apartments, a 90-unit apartment property, is owned and
operated by Cherokee Nation and located in Sallisaw, Oklahoma. Tsa-La-Gi
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Village Apartments has been shown in previous audits as an enterprise fund
used to account for the operations of the Nation’s federally subsidized lowincome housing apartment complex.
Cherokee Nation Economic Development Trust Authority (CNEDTA), a
Community Development Financial institution, is certified by the U.S. as a
mechanism to promote economic development. Its mission is to provide
opportunities for income generation through economic development, to provide
loans for business creation/expansion, and to provide loans to qualified
individuals whom have traditionally been denied through conventional lending
sources. It is accounted for in the special revenue governmental fund for
FY2011.
The above entities are are to be included in the audit proposal.. Attachments A-J
have detailed descriptions of entities to be included in the audit proposal.
Further information may be found in the Attachments to this RFP.
CONTRACTOR’S ACKNOWLEDGEMENTS
By submitting a proposal in response to this RFP, the Contractor understands,
represents and acknowledges that:
*
All information provided by, and representations made by, the Contractor
in the proposal are material and important and will be relied upon
by the Nation in awarding any contract;
*
No employee of the Nation has an ownership interest in the business or is
an employee of the business;
*
The price and amount of this proposal have been arrived at independently
and without consultation, communication or agreement with any
other Contractor or potential Contractor;
*
Neither the price nor the amount of this proposal have been disclosed to
any other firm or person who is a Contractor or potential Contractor,
and they will not be disclosed on or before the proposal submission
deadline specified in the cover letter of this RFP:
*
No attempt has been made or will be made to induce any firm or person to
refrain from submitting a proposal on this solicitation, or to submit a
proposal higher than this proposal, or to submit any intentionally
high or noncompetitive proposal or other form of complementary
proposal;
*
The proposal is made in good faith and not pursuant to any agreement or
discussion with, or inducement from, any firm or person to submit a
complementary or other noncompetitive proposal;
*
To the best knowledge of the person signing the proposal for the
Contractor, the Contractor, its affiliates, subsidiaries, officers,
directors, and employees are not currently under investigation by
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*
any governmental agency and have not in the last four (4) years
been convicted or found liable for any act prohibited by federal,
state, local or tribal law in any jurisdiction, involving conspiracy or
collusion with respect to bidding or proposing on any public
contract;
To the best of the knowledge of the person signing the proposal for the
Contractor and except as otherwise disclosed by the Contractor in
its proposal, the Contractor has no outstanding, delinquent
obligations to any federal, state, local or tribal entity, including but
not limited to, any tax liability.
GENERAL INFORMATION AND CONDITIONS
The Cherokee Nation will receive proposals from well-qualified firms to perform
financial and compliance audits for the benefit of the Cherokee Nation as per the
scope of work and terms and conditions contained in this Request for Proposal.
The contract will contain a cancellation clause in favor of the Cherokee Nation.
The Cherokee Nation reserves the right to award to more than one firm. The
Cherokee Nation will make this Request for Proposal and the successful bidder’s
proposal a part of the contract.
All correspondence and questions regarding this Request for Proposal and
requests for additional information must be directed to Rebecca Mitchell, C.P.M.,
Director of Acquisition Management, Cherokee Nation, at
[email protected]. No interpretation of the meaning of the Request for
Proposal will be made to any Contractor orally. No telephone inquiries please. A
copy of this Request for Proposal will be posted on the Cherokee Nation bid
website www.cherokeebids.org under Cherokee Nation procurements icon. All
questions regarding this RFP must be directed to Rebecca Mitchell, Cherokee
Nation at [email protected] no later than 5:00 p.m., Monday, July 11,
2011. The Nation anticipates responding to any questions submitted on or
before 5:00 p.m., Monday, July 18, 2011. Responses to any questions that
may be posed or updates and/or addendums issued during the RFP
process will be posted on the Cherokee Nation bid website
www.cherokeebids.org under Cherokee Nation procurements. It is the
responsibility of each bidder to monitor the Cherokee Nation bid website
www.cherokeebids.org for information posted regarding this Request for
Proposal. Failure of any Contractor to receive any such addendum or
interpretation shall not relieve such Contractor from any obligation under
their proposal as submitted. All addenda so issued shall become part of the
contract documents. No contact should be made with any Cherokee Nation
personnel regarding this RFP other than to the individual named above.
Each proposal must be submitted in a sealed envelope bearing on the outside
the name of the proposing firm and the name of the project for which the
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proposal is submitted. If forwarded by mail, the sealed envelope containing the
proposal must be enclosed in another envelope addressed as specified above.
Proposals will be accepted until 5:00 p.m., Monday, July 25, 2011. Three copies
of the proposal should be submitted. Proposals must be sealed and designated
as “RFP – Financial Audits – DO NOT OPEN”. Proposals may be mailed to the
attention of Rebecca Mitchell, C.P.M., Director of Acquisition Management,
Cherokee Nation, P.O. Box 948, Tahlequah, Oklahoma, 74465, or may be hand
delivered to Ms. Mitchell at the Cherokee Nation Financial Resources Building,
located at 17665 S. Muskogee Avenue, Tahlequah, Oklahoma, 74464, which is
approximately 3.5 miles south of Tahlequah on Highway 62. Any proposal
received after the time stated above will not be considered.
Term: The contract award will be for three (3) years with an option for the
Cherokee Nation to renew the contract annually for up to two (2) additional years.
Contract award and renewals will be subject to availability of funds and
satisfactory delivery of services. The contract will contain a cancellation clause
in favor of the Cherokee Nation.
Indian Preference: Preference will be given to Cherokee-owned firms, Other
Indian-owned firms, and Major Cherokee Employers as certified by the Cherokee
Nation Tribal Employment Rights Office (TERO), P.O. Box 948, Tahlequah,
Oklahoma, 74465. Proof of current certification must accompany all proposals.
To receive points during the evaluation process for Indian preference, the bidder
must demonstrate they will control, direct and perform at least 51% of the Scope
of Services.
In addition, by submitting a proposal in response to this RFP, the Contractor
agrees to the following:
The Cherokee Nation shall to the greatest extent feasible give preference in the
award of contracts to Indian organizations and Indian-owned economic
enterprises. All contracting is required to comply with procedures for selection of
Contractors and Sub-contractors as set forth in the Cherokee Nation Tribal
Employment Rights Office, Resolution No. 84-50 and Ordinance Section No. 4.8
which provides for preference to Indians in the awarding of contracts, as well as
the Cherokee Nation Acquisition Management Interim Policies and Procedures
(January - 1997). All work to be performed under any contract is also subject to
Section 7(b) of the Indian Self-Determination Act.
Section 7(b) states:
Any contract, subcontract, grant, or subgrant pursuant to this act, the Act of April
16, l934 (48 Stat. 596) as amended, (the Johnson-O'Malley Act) or any other Act
authorizing federal contracts with or grants to Indian organizations or for the
benefit of Indians, shall require to the greatest extend feasible;
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1)
2)
Preference and opportunities to training and employment in connection
with the administration of such contracts or grants shall be given to
Indians; and
Preference in the award of subcontracts and subgrants in connection with
the administration of such contracts or grants shall be given to Indian
organizations and to Indian-owned economic enterprises as defined in
Section 3 of the Indian financing Act of l974 (88 Stat. 77).
Modification of Proposals: Any offeror may modify his proposal at any time
prior to the scheduled closing time for receipt of proposals, provided such
communication is received in writing by the Cherokee Nation prior to the closing
time.
Withdrawal of Proposals: Any proposal may be withdrawn prior to the above
scheduled due date. Any proposals received after the date and time specified
shall not be considered. No Contractor may withdraw a proposal within 30 days
after the actual due date. Any Contractor may modify their proposal at any time
prior to the scheduled closing time for receipt of proposals, provided such
communication is received in writing by the designated contact person for this
Request for Proposal prior to the closing time. No public bid/proposal opening
will be held. All proposals will be submitted based on the information contained
in this Request for Proposal. Unless a specific note is made to the contrary, we
will assume each Contractor’s proposal conforms to the specifications contained
herein. All deviations to any part of these specifications must be submitted in
writing and clearly identified. Any deviation deemed to be significant by the
Nation will disqualify the proposal. Failure by Contractors to identify any such
deviation(s) will not in the future accrue to the disadvantage of the Nation in any
manner.
Subcontractors or Joint Ventures: Where two or more offerors desire to
submit a single response to this RFP, they should do so on a primesubcontractor basis rather than as a joint venture or informal team. The Nation
will contract only with the Contractor and expects the Contractor to perform the
work. Should the Contractor propose to employ a Subcontractor, the request
must be made in writing to the Nation. The Nation must approve in writing any
person, firm or party proposed by the bidder to award a subcontract. The Nation,
in giving such acceptance, assumes no responsibility in connection with the
terms of the Subcontractor and their performance will be the responsibility of the
Contractor. All Contractors who determine a need for subcontracting must state
so in the initial proposal.
Cost of Submitting Proposal: All costs in connection with the preparation and
submission of this proposal will be paid by the Contractor. All proposals
submitted in response to this RFP become the property of the Nation.
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Confidentiality: It is understood any information submitted to the Contractor by
the Nation in respect to this Request for Proposal embodies certain proprietary
information and is loaned to the Contractor on a confidential basis. Any
information acquired at the Nation or otherwise relating to processes belonging to
the Nation incorporated into this Request for Proposal shall be kept confidential.
The Contractor agrees not to use in any unauthorized manner or communicate to
others any such confidential items without the prior written consent of the Nation
and will undertake such measures as are necessary to require its employees and
all approved Subcontractors or Joint Ventures to maintain complete
confidentiality.
Debarment: By submitting a response to this Request for Proposal, the
Contractor certifies to the best of their knowledge and belief that the Contractor,
the firm, or any of its principals are not presently debarred, suspended, or
proposed for debarment by any federal, state, local or tribal entity. This
certification is a material representation of fact upon which reliance was placed
when making award. If it is later determined the Contractor rendered an
erroneous certification, in addition to other remedies available to the Nation or its
entities, the Nation may terminate the contract resulting from this Request for
Proposal for default.
Verification of Scope of Work: Each Contractor must inform themselves fully
of the Scope of Work and all terms and conditions in this Request for Proposal.
Failure to do so will not relieve a successful Contractor of his obligation to carry
out the provisions of this contract. All applicable laws and ordinances, and the
rules and regulations of all authorities having jurisdiction over this project shall
apply to the contract throughout, and they will be deemed to be included in the
contract the same as though written out in full. Insofar as possible, the offeror, in
performing work under this contract, will employ such methods or means as will
not cause any interruption of or interference with the work of the Cherokee
Nation.
Insurance Requirements:
The Contractor shall purchase and maintain such insurance as will protect the
Nation against any and all claims and demands arising from the execution of the
contract. The Contractor shall maintain the following types of insurance and
limits:
Before performing contractual services on the behalf of or for the Cherokee
Nation, compliance with the following insurance requirements must be verified:
** Provide an original Certificate of insurance naming the Cherokee Nation as a
certificate holder and additional insured with respect to general liability,
automobile liability, and builders risk policies, as their interest may appear with
respect to the operations defined in this proposal packet. The certificate shall
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reflect that coverage has been placed with an AM Best Rated Carrier of at least
A IX and will contain the following information for each required coverage:
1)
Type of insurance
2)
Policy number
3)
Effective date
4)
Expiration date
5)
Limits of Liability (this amount is usually stated in thousands)
6)
Thirty day notice of cancellation, except ten-day cancellation clause
will apply for nonpayment of premium.
** Required Coverages:
1)
Worker's Compensation and Employer's Liability:
Limits of Liability:
Bodily Injury by Accident: $100,000 each accident
Bodily Injury by Disease: $500,000 policy limit
Bodily Injury by Disease: $100,000 each employee
Oklahoma Statute requires Worker's Compensation coverage for anyone
with one (1) or more employees. Contractor’s worker’s compensation
policy shall include a waiver of subrogation in favor of Cherokee Nation of
Oklahoma.
2)
General Liability:
Coverages:
Commercial (including products/completed operations). In addition
to the additional insured endorsement, the commercial general
liability policy shall also include a waiver of subrogation in favor of
Cherokee Nation of Oklahoma.
Limits of Liability:
Bodily Injury and Property Damage Combined: $1,000,000
(each occurrence)
3)
Automobile Coverage:
Vehicles Covered:
All Autos
Hired Autos
Non-owned Autos
Limits of Liability:
Bodily Injury and Property Damage Combined: $1,000,000
NOTE:
The Contractor shall either: (1) require each of his subcontractors
to procure and to maintain during the life of his subcontract,
identical insurance for the type and in the same amounts as
specified above, or (2) insure the activities of all subcontractors in
his own policy. Each subcontractor policy must also name
Cherokee Nation as an additional insured with respect to general
liability and auto liability.
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Governing Laws and Contract: The Cherokee Nation will make this Request
for Proposal and the successful Contractor’s proposal a part of the contract. This
Request for Proposal and any subsequent contract shall be construed under the
laws of the United States and where applicable, the Cherokee Nation. Nothing in
this Request for Proposal, any subsequent documents or contract shall be
construed as a waiver of limitation upon the Nation’s sovereign immunity. To the
extent this statement is found to be inconsistent with any other language in this
Request for Proposal or any subsequent document or contract, this statement
shall control. This statement shall survive the completion or termination of any
subsequent contract. By submitting a proposal in response to this Request for
Proposal, the Contractor agrees to these terms and conditions. In the event of
any dispute which may affect this Agreement, the Contractor agrees the
Agreement shall be governed by the laws of the United States, and where
applicable, the laws of the Cherokee Nation. The Cherokee Nation will make the
final decision on the contract format to be utilized for any award(s) under this
procurement.
Nation’s Right to Inspect: The Nation reserves the right to inspect and
investigate thoroughly the establishment, facilities, equipment, business
reputation and other qualifications of the Contractor and any proposed
Subcontractors and to reject any proposal irrespective of price if it shall be
administratively determined that the Contractor is deficient in any of the
essentials necessary to assure acceptable standards of performance. The
Nation reserves the right to continue this inspection procedure throughout the life
of the contract that may arise from this RFP.
Evaluation Process: An Evaluation Committee of qualified persons will
evaluate each proposal received. As part of the evaluation process, the
Committee reserves the right to direct Acquisition Management to contact
responding parties with questions regarding the proposal. The Committee
reserves the right to schedule presentations with prospective Contractors.
Contractors may be asked to provide additional data or oral discussion for the
purpose of addressing identified concerns or questions in the proposal, clarify
any ambiguities, and discuss aspects of the cost and/or delivery of services. The
Committee may make such investigations as they deem necessary to determine
the ability of the Contractor to perform the work, and the Contractor shall furnish
to the Committee all such information and data for this purpose as may be
requested.
Technical Evaluation: Each technical proposal that is timely received will be
independently evaluated in accordance with the Evaluation Criteria in this
Request for Proposal.
Cost/Price Evaluation: After review of all technical proposals, cost/price
proposals shall be reviewed primarily in terms of relation to technical proposals.
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The technical appraisal of proposed prices should focus on the level of system
services and the necessary support resources under the contract requirements.
Pre-Award On-Site Visit: Prior to award of a contract, the Cherokee Nation
reserves the right to conduct a pre-award survey of any offeror under
consideration to confirm any part of the information furnished by the offeror, or to
require other evidence of interim system managerial, financial, technical, and
other capabilities which is determined by the Cherokee Nation to be necessary
for the successful performance of the contract. The Cherokee Nation may solicit
from all available sources additional experience data concerning an offeror’s past
performance and will consider such information in its evaluation. Offerors should
refer also to section regarding Qualifications of Offerors.
Award Without Discussion: Negotiations may be conducted with offerors
whose proposals are in the competitive range; however, the Cherokee Nation
reserves the right to award a contract on the basis of initial proposals submitted
without negotiation and without a call for best and final offers. Award of an initial
contract will not obligate the Cherokee Nation to exercise any contractual option.
Prior to exercising any option, the Cherokee Nation will make a determination
that:
Funds are available
The requirement covered by the option fulfills an existing need of the
Cherokee Nation
The exercise of the option is the most advantageous method of fulfilling
the Cherokee Nation’s need, price and other factors considered.
Failure to exercise an option(s) shall not obligate the Cherokee
Nation to pay any charges other than the contract price including
exercised options.
Oral or Written Presentation: Oral or written presentations supporting the
written proposal for this effort may be requested during the selection process.
Offerors may be asked to provide additional data or oral discussion for the
purpose of addressing identified deficiencies in the technical proposal, clarify any
ambiguities, and discuss aspects of the cost proposal. After these presentations,
offerors may be requested to submit revisions or a best and final offer. The date
of final receipt of such offer will be common to all offerors. The Technical
Proposal Evaluation Team will reassess each proposal and prepare a
supplemental report to the Director of Acquisition Management, who, after
consideration of the report, shall select the proposal, which offers the best
combination of technical merit and related costs.
Notification of Award - All offerors will be notified by letter when their proposal
is no longer considered for award.
Term of Contract - The contract period shall begin from the date of award
through September 30, 2013, with options for renewal as follows:
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Fiscal Year 2011
Fiscal Year 2012:
Fiscal Year 2013:
Fiscal Year 2014:
Fiscal Year 2015:
October 1, 2010 to September 30, 2011
October 1, 2011 to September 30, 2012
October 1, 2012 to September 30, 2013
October 1, 2013 to September 30, 2014
October 1, 2014 to September 30, 2015
Evaluation Criteria - A description of each of the evaluation factors,
together with the method of evaluation, is set forth below. Mandatory
requirements and experience factors will be scored. Offerors are cautioned
not to minimize the importance of adequate responses in any area.
I.
Technical Evaluation
1) Work Plan and Staffing Plan
2) Experience
A) Corporate
a) Offeror is properly licensed for public practice as a Certified
Public Accountant in the State of Oklahoma
b) The offeror meets the independence requirements of the
Standards for Audit of Governmental Organizations, Programs,
Activities and Functions, 2003 revision, published by the United
States General Accounting Office
c) The offeror meets any other specific qualification requirements
imposed by Tribal, Federal, State or Local law.
B) Team Member Experience
a) Resumes
b) Similar Project Participation Over the Past 3 Years
C) Past Experience (in last 3 years)
a) Audits that match the scope of work required under the Request
for Proposal will be evaluated higher than audits that do not
match the required work. Offerors who have performed the
same audit or similar audits as that required under the Request
for Proposal will be evaluated higher than offerors who have not
performed the same or similar audits.
b) Offerors who have performed audits that correspond closely or
exceed the complexity of the required audit will receive higher
evaluation than offerors whose past experience is limited to less
complex tasks.
c) Offerors who have performed audits that are of the same
approximate size (dollar value) or larger than the proposed
contract will be evaluated higher than offerors whose
experience is limited to contracts smaller than the proposed
contract.
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3) References (clients within last 3 years)
A) A minimum of three (3) corporate references, including name of
principle, title and phone number, are to be provided for each line of
business.
a) Tribal Governments
b) Gaming
c) Enterprises
d) Housing
e) Manufacturing
II.
Cost Evaluation
1. Total proposal price for 3 years
2. Price rate blended for each component unit
III.
Other
1.
Indian Preference - Proposals will be accepted from Indian and
non-Indian firms. Preference will be given to Cherokee-owned
firms, Other Indian-owned firms, and Major Cherokee Employers as
certified by the Cherokee Nation Tribal Employment Rights Office
(TERO), P.O. Box 948, Tahlequah, Oklahoma, 74465. Proof of
current certification must accompany all proposals. To receive
points during the evaluation process for Indian preference, the
bidder must demonstrate they will control, direct and perform at
least 51% of the Scope of the Services.
2.
Deliverables – The following table describes the due dates for
deliverables required by this contract. Each component unit or
organization has one or more specific audit requirement to meet.
All final audit reports shall go to the Treasurer of the Cherokee
Nation. In addition, reports will be presented to the CNE Tribal
Compliance Agency as required herein and the Audit Committees
of applicable entities.
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FY 2011
Cherokee
Nation
CNE
TCA – CNE
Gaming
Reports
Year end
30-Sep
30-Sep
30-Sep
Progress
Report
Each Month
on the 15th
Each Month
on the 15th
Each Month
on the 15th
CNB
30-Sep
30-Sep
Each
Month
Each Month
on the 15th on the 15th
Cherokee Aerospace Will Rogers
CRC
Products
Downs
Tsa La
S.E., Inc.
Gi Apts
30-Sep
30-Sep
30-Sep
Each
Month
on the
15th
Each
Month
on the
15th
Each
Month
on the 15th
Including
Including
investments
all
in majority Companies
owned
and
businesses
activities
On all
locations
plus blended
components
Combining of
Net Assets
CNI
MICS and
state
compact
compliance
letters as
required
Agreed Upon
Procedures
OHRC
Compliance
letters as
required
Draft Audit &
Mgmt Letter
15 Feb
10 copies
15-Dec
10 copies
5-Jan
10 copies
15-Jan
10 copies
1-Jan
10 copies
15-Dec
15-Dec
10 copies 10 copies
15-Dec
10 copies
Final Audit &
Mgmt Letter
30 Mar
25 copies
15-Jan
50 copies
1-Feb
50 copies
15-Feb
50 copies
1-Feb
50 copies
15-Jan
15-Jan
50 copies 50 copies
15-Jan
50 copies
Award: An award for this project will be made subject to available funding. An
award for this project will be made at the discretion of the Nation. The Nation
reserves the right to determine a proposal acceptable in terms of meeting
Request for Proposal requirements. The Nation reserves the right to accept or
reject any and all proposals received and may negotiate with Contractors
regarding the terms of their proposals or parts thereof. The Nation reserves the
right to award a contract in the best interests of the Nation. The Nation is not
obligated to award the contract based on cost alone. All proposals, documents,
and paperwork associated with this Request for Proposal become the property of
the Nation.
The Cherokee Nation may make such investigations as they deem necessary to
determine the ability of the Contractor to perform the work and the Contractor
shall furnish to the Cherokee Nation all such information and data for this
purpose as the Cherokee Nation may request. The Cherokee Nation reserves
the right to reject any submittal if the evidence submitted by, or investigation of,
such Contractor fails to satisfy the Cherokee Nation such Contractor is properly
qualified to carry out the obligations of the contract and to complete the work
contemplated herein. Conditional bids will not be accepted.
Drug Free and Tobacco Free Workplace: The Contractor understands and
recognizes that all Cherokee Nation buildings, whether leased or owned by the
- 15 -
30-Sep
Nation to be a tobacco free workplace. The Contractor will ensure all employees,
subcontractors, and other workers will abide by this policy.
Assignment: No assignment of the contract or of any right or obligation under
this RFP will be made by either party without the prior consent of the nonassigning party.
Audit/Examination/Retention of Records: The Contractor, any
subcontractors, or joint ventures shall maintain books and records related to the
performance of this contract in accordance with applicable law, terms and
conditions of any contract with the Nation, and generally accepted accounting
standards. Contractor shall maintain these books and records for a minimum of
three (3) years after the completion of the contract, final payment, or completion
of any contract, audit, or litigation, whichever is later. All books and records shall
be available for review or audit by the nation, its representatives, and other
governmental entities with monitoring authority upon reasonable notice and
during normal business hours. Contractor agrees to cooperate fully with any
such review or audit.
CHEROKEE NATION INDIAN PREFERENCE POLICY IN CONTRACTING
The Cherokee Nation shall to the greatest extent feasible give preference in the
award of contracts to Indian organizations and Indian-owned economic
enterprises. All contracting is required to comply with procedures for selection of
Contractors and Sub-contractors as set forth in the Cherokee Nation Tribal
Employment Rights Office, Resolution No. 84-50 and Ordinance Section No. 4.8
which provides for preference to Indians in the awarding of contracts, as well as
the Cherokee Nation Acquisition Management Interim Policies and Procedures
(January - 1997). All work to be performed under any contract is also subject to
Section 7(b) of the Indian Self-Determination Act.
Section 7(b) states:
Any contract, subcontract, grant, or subgrant pursuant to this act, the Act of April
16, l934 (48 Stat. 596) as amended, (the Johnson-O'Malley Act) or any other Act
authorizing federal contracts with or grants to Indian organizations or for the
benefit of Indians, shall require to the greatest extend feasible;
(l) Preference and opportunities to training and employment in connection with
the administration of such contracts or grants shall be given to Indians; and
(2) Preference in the award of subcontracts and subgrants in connection with the
administration of such contracts or grants shall be given to Indian organizations
and to Indian-owned economic enterprises as defined in Section 3 of the Indian
financing Act of l974 (88 Stat. 77).
- 16 -
A prospective contractor seeking to receive Indian Preference under this contract
must be certified as an Indian-owned firm by the Cherokee Nation Tribal
Employment Rights Office (TERO) and submit proof of that certification with their
proposal.
INSTRUCTIONS FOR PREPARATION OF PROPOSALS
Each proposal submission must be submitted in two sections. The first section
shall contain a Technical Proposal and the second section shall contain the Cost
Proposal. The following considerations shall be addressed in the proposal;
Technical Proposal
1. Work Plan - The work plan includes the audits of the Cherokee Nation and its
component units, Cherokee Nation Businesses, LLC and Tsa-La-Gi
Apartments. Component units of Cherokee Nation Business to be included in
the annual consolidated audit proposal are listed at Attachment J. Two or
more additional component units of Cherokee Nation Business may be added
to the annual audit requirement each year. At the discretion of the Cherokee
Nation Businesses Audit Committee, two or more of the component units may
be selected annually for financial audits. Each entity’s general purpose
financial statements shall be audited as well as an audit of compliance to the
law and regulations related to federal and state grants. In addition, Federal
and Tribal Minimum Internal Control standards and State Compact
regulations require certain financial and compliance reports. Oklahoma
Horse Racing Commission (OHRC) regulations may require an additional
compliance report related to Will Rogers Downs operations. The audits shall
be conducted in accordance with Generally Accepted Auditing Standards,
standards applicable to financial audits contained in Government Auditing
Standards, Office of Management and Budget Circular A-133, provisions of
the Consolidated Audit Guide for Audit of HUD Programs and the Single Audit
Act Compliance Supplement.
The audits will be performed on site of the particular component unit or
related organization being audited. The component units have varying
reporting requirements that the auditor will need to address. Consideration
should be given to testing and support available through internal audit
departments of the Cherokee Nation and its component units.
2. Requirements of Completion of Deliverables - The annual audit report for the
period ending September 30, 2011 shall be submitted within 30 days of
completion of the audit but no later than 150 days after contract execution.
All subsequent reports shall be submitted within 30 days after completion of
the audit, but no later than 150 days after the end of the audit period. See
- 17 -
Table under section labeled Deliverables on page 10. NIGC required
financials and reports must be written within 120 days after the end of the
fiscal year of gaming operations, therefore all of CNE’s reports must be
finalized in advance (25 CFR 571.12).
3. References – The offeror shall provide a minimum of three (3) corporate
references for each line of business as follows; Gaming, manufacturing, tribal
government, housing, non-gaming for profit enterprises. Each reference
shall include the name of the principle, the title and the phone number. The
references should be relative to the last three years of business.
Cost Proposal
The cost proposal will consist of professional fees and out-of-pocket expenses
identified with each audit in the proposal. The professional fees should be stated
for a Partner, Senior Manager, Manager and other staff; then a blended rate
should be calculated and applied to each of the proposed audit projects. The
out-of-pocket expenses can be estimated or a percentage applied.
Partner
$
Sr. Manager $
Manager
$
Other staff $
hr
hr
hr
hr
Professional Fees:
FY 11
Hrs.
$
FY12
Hrs.
FY 13
$
Hrs.
Cherokee Nation
Cherokee Nation
Businesses (CNB)
Cherokee Nation
Entertainment (CNE)
Cherokee Nation
Industries (CNI)
Will Rogers Downs
(WRD)
Cherokee CRC, LLC
(CCRC)
Aerospace Products
S.E., Inc. (APSE)
- 18 -
$
Total $
Tribal Compliance
Agency – CNE
Gaming reports
Tsa La Gi
Apartments
SUB-TOTAL FEES
Out of Pocket Costs:
FY 11
Cherokee Nation
$
FY 12
$
FY 13
$
Total $
$
A.. Travel – Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY11
Cherokee Nation
Businesses, LLC
$
FY 12
$
FY 13
$
Total $
$
A.. Travel – Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY11
Tribal Compliance Agency
– CNE Gaming Reports
$
FY 12
$
FY 13
$
Total $
$
A.. Travel – Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY11
Cherokee Nation
Entertainment, LLC
$
FY 12
$
FY 13
$
Total $
$
A.. Travel – Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY11
Cherokee Nation
Industries, LLC
$
FY 12
$
FY 13
$
A.. Travel – Provide Details
- 19 -
Total $
$
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY11
FY 12
FY 13
Total $
Will Rogers Downs, LLC
$
$
$
$
A.. Travel – Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY11
FY 12
FY 13
Total $
Cherokee CRC, LLC
$
$
$
$
A.. Travel – Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY11
Aerospace Products S.E.,
Inc.
$
FY 12
$
FY 13
$
Total $
$
A.. Travel - Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
FY 11
Tsa La Gi
Apartments
$
FY 12
$
FY 13
$
Total $
$
A.. Travel - Provide Details
B. Supplies
C. Typing, etc.
Sub-Total - OUT OF POCKET
Summary of all costs:
FY11
FY12
FY13
Out of
Out of
Out of
Professional Pocket Professional Pocket Professional Pocket
Fees
Costs
Fees
Costs
Fees
Costs
Cherokee
Nation
- 20 -
Total
Cherokee
Nation
Businesses,
LLC
TCA-CNE
Gaming
Cherokee
Nation
Entertainment,
LLC
Cherokee
Nation
Industries,
LLC
Will Rogers
Downs, LLC
Cherokee
CRC, LLC
Aerospace
Products S.E.,
Inc.
Tsa La Gi
Apartments
Total of Fees
and Expenses
- 21 -
ATTACHMENT A
Audit Information for RFP
Organization
The Cherokee Nation is the sovereign Tribal Government of the Cherokee
people and functions within the framework of the Cherokee Constitution adopted
in 1975. The jurisdiction is in 14 counties of Northeastern Oklahoma and is
headquartered in Tahlequah, Oklahoma. The fiscal year begins on October 1
and ends on September 30. The government is composed of three branches,
Executive, Legislative and Judicial.
Organizational Description
The Cherokee Nation has approximately 3,350 employees and receives funding
from some 32 funding sources that includes funding from federal agencies, state
agencies, corporate and private funding sources, enterprise activities, various
land and lease operations and trust funds.
Summary of Significant Accounting Policies and Specific Audit
Requirements
a) Financial compliance audit for FY 2011 through FY 2013, with option to renew
for FY 2014 and FY 2015.
b) Internal control review for each year for which the audit is performed.
c) Management Letter for each year for which the audit is performed should
include findings and recommendations relative to internal controls, fiscal
affairs and other significant observations. All reports required by the Single
Audit Act must be provided.
d) Audit performed in accordance with GAAS, GASB, and OMB Circular A-133,
etc. (Yellowbook).
e) Summary of significant accounting Principles.
f) Listing of Grants and Contracts (See Schedule of Federal Financial
Assistance).
g) Presentation of Selected Account Data for FY 2010:
Volume Statistics
Annual Budget
$600,000,000
Funding Sources
32
Number of Active Budgets
525
MONTHLY ESTIMATE
Monthly Estimated Accounts Payable Checks
4,500
Monthly Estimated Payroll Direct Deposits
6,900
Monthly Estimated Deposits Processed
600
- 22 -
1. Description of hard copy records and audibility for Financial Resources
Group for FY 2011 (i.e.-location, types of records available, hard copy
reports available). Hard copy information is available in the Financial
Resources group.
2. Description of automated data/reports available for FY 2011. Most of the
financial data is available in electronic form.
3. Description of hardware & software environment used for the Cherokee
Nation accounting functions. See MIS environment below.
4. Accounting procedures (See Manual of Accounting Policies and
Procedures).
MIS Environment
The Nation utilizes the Lawson Enterprise Resource Planning system Other
software packages include Microsoft office applications, Kronos timekeeper and
RPMS (patient management system for health care operations).
Names of CEO and CFO
Principal Chief: Chadwick Smith
Treasurer: Callie Catcher
- 23 -
ATTACHMENT B
CHEROKEE NATION BUSINESSES, LLC
Audit Information for Joint RFP
Organization
Cherokee Nation Businesses, LLC (CNB) is a discretely presented component
unit of the Cherokee Nation (the Nation) and is reported as such in the Nation’s
comprehensive annual financial report. CNB is a tribal limited liability company of
the Nation. It was created in June 2004 to provide shared services and strategic
coordination of the Nation and to act as a holding company for certain Nation
investments in business enterprises. CNB and the companies it owns are
managed by a common CEO, CFO and Board of Directors.
Organizational Description
CNB’s corporate headquarters is located in Catoosa, OK. A listing of CNB’s
blended component units is attached as Attachment J. CNB currently employs
approximately 212 staff. Our fiscal year end is September 30.
Summary of Significant Accounting Policies and Audit Requirements
CNB’s accounting and reporting policies conform to generally accepted
accounting principles for units of local government as promulgated by the
Governmental Accounting Standards Board (GASB) as well as all applicable
GASB and FASB pronouncements.
a) FY 2011 – 2013, with option to renew for FY 2014 and FY 2015
b) Internal control review for each year for which the audit is performed
c) Management Letter for each year for which audit is performed should
include recommendations relative to internal controls, fiscal affairs and
other significant observations
d) Audit performed in accordance with GAAS
e) Summary of significant accounting principles
f) Audited Financial Statements presented in accordance with GASB
g) Combining schedules of Net Assets for all majority owned investments
h) Combining schedules of Revenues, Expenses and Changes in Net
assets for all majority owned investments
i) Deliverables – on or before February 15, present audit and
management letter to CNB Board of Directors/Audit Committee.
- 24 -
MIS Environment
CNB utilizes a Microsoft Windows environment. PeopleSoft Enterprise Resource
Planning system is used for financial reporting and human capital management.
Kronos is used for timekeeping.
Volume Statistics
Capital Assets
Revenue
Approx. $460 Million
Approx. $600 Million (annually)
Names of CEO and CFO
Chief Executive Officer:
Chief Financial Officer:
David Stewart
Don LaBass
- 25 -
ATTACHMENT C
CHEROKEE NATION ENTERTAINMENT, LLC.
Audit Information for RFP
Organization
Cherokee Nation Entertainment, LLC (CNE) is a tribal limited liability company
organized under the laws of the Nation which operates eight State compacted
gaming casinos, a horse racing facility with electronic gaming machines, one
retail smoke shop facility that includes electronic gaming machines and other
retail facilities, including an additional smoke shop, a travel plaza, convenience
stores and gift shops. CNE’s gaming entertainment operations include food and
beverage venues, hotels and motels, live entertainment venues and an 18-hole
and a 9-hole golf course. CNE has two blended component units, Will Rogers
Downs, LLC and Cherokee Hotels, LLC.
Organizational Description
CNE’s corporate headquarters is located in Catoosa, OK. Employee population is
approximately 3,600 with the gaming section being the largest component. The
company has a gaming and non-gaming division. Each casino has a general
manager reporting to the Sr. Director of Operations. Each non-gaming facility
has a store/location manager, some reporting up through Gaming Operations,
while others report to Marketing. All CNE operations report to the COO. CNE is
under the oversight of the CNB CEO and Board of Directors. Accounting is
performed at each gaming facility with consolidations and financial reporting
performed at corporate by the CNB Chief Financial Officer and staff. Our fiscal
year end is September 30.
Summary of Significant Accounting Policies and Audit Requirements:
j) FY 2011 – 2013, with option to renew for FY 2014 and FY 2015
k) Internal control review for each year for which the audit is performed
l) Management Letter for each year for which audit is performed should
include recommendations relative to internal controls, fiscal affairs and
other significant observations
m) Audit performed in accordance with GAAS
n) Summary of significant accounting principles
o) Audited Financial Statements presented in accordance with GASB
p) Combining schedules of Net Assets for all majority owned investments
q) Schedules of Net Assets, Revenues, Expenses and Changes in Net
Assets and Cash Flows for NIGC-Regulated Gaming Operations
r) Audited schedule of Adjusted Gross Revenue and Exclusivity Fees.
- 26 -
s) Deliverables – on or before January 15, present audit and
management letter to CNB Board of Directors/Audit Committee.
The Tribal Compliance Agency (TCA) is responsible for an audit of each gaming
facility, which may be performed in conjunction with the corporate audit to be
submitted to the Nation Indian Gaming Commission (NIGC) by February 1 st each
year. Please refer to the attached TCA information outlining such requirements.
MIS Environment
CNE utilizes CNBs Microsoft Windows, PeopleSoft and Kronos environments.
Additionally, CNE uses IGT’s Advantage system. Retail locations use MICROS
and Fastrax POS software. Food and Beverage locations use MICROS. Hotel
and Golf operations use the OPERA system.
Volume Statistics
Capital Assets
Revenue
Monthly Estimate
Accounts Payable Checks
Payroll Checks
Deposits Processed
Approx. $445 Million
Approx. $460 Million (annually)
1,900
7,684
1,500
- 27 -
ATTACHMENT D
TSA-LA-GI VILLAGE APARTMENTS
Audit Information for RFP
Organization
The Tsa-La-Gi Village Apartments is a non-profit apartment complex designed
for occupancy by elderly, handicapped and disabled persons. It is located in
Sallisaw, Oklahoma.
Organizational Description
Tsa-La-Gi is a 90-unit apartment project owned by the Cherokee Nation. The
apartment complex is designed to accommodate elderly, handicapped and
disabled persons. Residents receive rent subsidies from the Department of
Housing and Urban Development through a Section 8 contract between HUD
and the Cherokee Nation. It has two full-time employees. Tsa-La-Gi Village
Apartments has been shown in previous audits as an enterprise fund.
Summary of Significant Accounting Policies and Specific Audit
Requirements
Financial statements will be audited in accordance with generally accepted
auditing standards, the standards for financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States and
with the provisions of the Consolidated Audit Guide for Audit of HUD programs.
The Single Audit Act Compliance Supplement rather than HUD Handbook
2000.04 governs the compliance coverage of non-profit projects.
The Audit must be electronically filed with HUD within 60 days of the fiscal year
end of September 30. In addition, four are to be submitted to Tsa-La-Gi and
twenty copies to the Secretary –Treasurer of the Cherokee Nation.
MIS Environment
Financial information for Tsa-La-Gi is maintained on the Nation’s Lawson ERP
system. Other software packages include Excel and Microsoft Word.
Volume Statistics
Manage a ninety-unit apartment project.
- 28 -
Names of the CEO and CFO
Manager:
Principal Chief:
Treasurer:
Margo Nofire
Chadwick Smith
Callie Catcher
- 29 -
ATTACHMENT E
CHEROKEE NATION GAMING COMMISSION
Tribal Compliance Agency
Audit Information for Joint RFP
Organization
The Gaming Commission of the Cherokee Nation has been established as part
of the Executive Branch of the sovereign government of the Cherokee Nation, in
order to carry out the responsibilities of the Cherokee Nation pursuant to the
Indian Gaming Regulatory Act, 25 U.S.C. sections 2501 et seq., the Regulations
of the National Indian Gaming Commission, 25 C.F.R. section 501 et seq., and
the provisions of the Cherokee Nation Tribal Gaming Act, 4 CNCA section 1 et
seq., and acting as the Tribal Compliance Agency as set forth in the Tribal-State
Compact, part 5, F; as such, we are requesting proposals to perform financial
and compliance audits of Cherokee Nation Entertainment, LLC (CNE), a tribal
limited liability company wholly owned by CNB, a tribal limited liability company
wholly owned by the Cherokee Nation, which operates nine (9) licensed gaming
operations in Northeastern Oklahoma (within the 14-county Cherokee Nation
jurisdiction). In addition, CNE operates several other small businesses; the audit
for CNE’s gaming operations may be performed in conjunction with the
consolidated corporate audit.
Reporting Requirements
The Cherokee Nation Gaming Commission is requesting proposals to perform a
Certified Financial Statement Audit of the gaming operations of Cherokee
Nation Entertainment, LLC as of fiscal year ending September 30, 2011. The
audit is to be conducted in accordance with Generally Accepted Auditing
Standards and would include the following reports.

Report on Financial Statements (Independent Auditor’s Report).

Report on audit of the balance sheet and related statement of revenues,
expenses, and changes in retained earnings, and cash flow.

Report to Management and Tribal Compliance Agency.

Report on Compliance with Laws and Regulations; including a Report on
Compliance with Minimum Internal Control Standards promulgated by the
Cherokee Nation Gaming Commission inclusive of any National Indian
Gaming Commission approved variances and compliance with TribalState Compact provisions for each of the CNGC licensed facilities.
- 30 -

Separated financial statements and compliance reports should be issued
for each gaming operation individually, and not include such non-gaming
activities as hotel, golf course, or other non-gaming related businesses.
Further, all revenues generated from Covered/Compacted games shall be
reported and audited separately from Class II games.

In accordance with Tribal-State Compact, Schedule of Adjusted Gross
Revenues and Exclusivity Fees and related Independent Auditor’s Report.

All gaming related contracts that result in purchases of services, supplies,
licenses, etc. for more than $25,000 in any year (except contracts for
professional legal or accounting services) shall be specifically included
within the scope of the audit. The inclusion of such contracts specifically
within the scope of the audit implies that they be subjected to relevant
audit procedures and shall be included in the presentation of selected
accounting data.

The selected Audit firm shall report directly to the Cherokee Nation
Gaming Commission regarding all gaming related issues, including the
use of net gaming revenues. Reporting contingencies shall include notice
of all entrance, interim, and exit conferences with management, and notice
of scheduled fieldwork in regards to licensed gaming operations. The
State Compliance Agency may have access to all work papers concerning
Covered/Compact games and may meet with the auditor upon request.

The independent auditor must perform their audit in accordance with
generally accepted auditing standards and must express an opinion on the
financial statements. The Audit firm shall have unrestricted access to all
records, books, policies and procedures, etc. necessary to perform their
audit and express an opinion. Limitations by the Tribe or management of
the gaming operation on the auditor’s scope of work are unacceptable and
shall be reported to the Cherokee Nation Gaming Commission.

The independent auditor must conform to the requirements established by
the Commission, inclusive of the NIGC requirements outlined in the
Cherokee Gaming Commission Minimum Internal Control Standards
(CNGC MICS), Section 3 – Compliance, CPA Testing and Guidelines.
1. Submit brief resumes of the key staff members that would be
involved in the audit, including anticipated hours of each staff
member on the audit (may be submitted as part of cost proposal).
2. Provide a list of Indian gaming operations, the firm has or currently
serves.
- 31 -
3. Provide and coordinate staffing plan for year-end observations and
compliance activities.
Deliverables
The National Indian Gaming Commission (NIGC) required financials and reports
must be written within 120 days after the end of the fiscal year of gaming
operations, therefore all of CNE’s reports must be finalized in advance (25 CFR
571.12) and shall be submitted through the Director of the Cherokee Nation
Gaming Commission to the NIGC and present the audit report, management
letter, and MICS compliance report to the Gaming Commission on or before
January 27, 2012.
Names of Chairman and Director
Gaming Commission Chairman: Larry Adair
Director:
Jamie Hummingbird
- 32 -
ATTACHMENT F
CHEROKEE NATION INDUSTRIES, LLC
Audit Information for RFP
Organization
Cherokee Nation Industries, LLC (CNI) is a tribal limited liability company wholly
owned by Cherokee Nation Businesses, LLC (CNB), a tribal limited liability
company wholly owned by the Nation. CNI is included as a blended component
unit of CNB, which is a component unit of the Nation.
CNI earns revenues predominately from production and assembly of electronic
component parts and wiring systems used primarily by the defense and
communications industries, from services provided on certain medical employee
leasing contracts and from the sale of parts and services to the government and
from sale of telecommunications equipment. Products and services are sold
primarily in the United States.
Organizational Description
CNI’s corporate headquarters is located in Stillwell, Oklahoma. CNI has blended
component units that are for-profit limited liability companies formed under the
laws of the Cherokee Nation as well as some created under the laws of the State
of Oklahoma. A listing of CNI’s blended component units can be found in
Attachment J. All CNI companies are under common management of the CNB
CEO and under the direction of the CNB Board of Directors. Accounting is
performed at the CNI corporate offices with consolidations and financial reporting
performed at corporate by the CNB Chief Financial Officer and staff. Employee
population is approximately 443. Our fiscal year end is September 30.
Summary of Significant Accounting Policies
Audit Requirements:
t) FY 2011 – 2013, with option to renew for FY 2014 and FY 2015
u) Internal control review for each year for which the audit is performed
v) Management Letter for each year for which audit is performed should
include recommendations relative to internal controls, fiscal affairs and
other significant observations
w) Audit performed in accordance with GAAS
x) Summary of significant accounting principles
y) Audited Financial Statements presented in accordance with GASB
z) Combining schedules of Net Assets for all majority owned investments
- 33 -
aa) Combining schedules of Revenues, Expenses and Changes in Net
assets for all majority owned investments
bb) Deliverables – on or before February 1, present audit and
management letter to CNB Board of Directors/Audit Committee.
MIS Environment
CNI utilizes a Microsoft Windows environment. Accura Enterprise Resource
Planning system is used for financial reporting while CNB PeopleSoft is used for
human capital management. Kronos is used for timekeeping.
Volume Statistics
Revenues Approx.
Capital Asset Approx.
Monthly Estimate
Accounts Payable Checks
Payroll Checks
Deposits Processed
$ 110 Million (annually)
$7.5 Million
80
886
425
- 34 -
ATTACHMENT G
WILL ROGERS DOWNS, LLC.
Audit Information for RFP
Organization
Will Rogers Downs, LLC (WRD) is a tribal limited liability company organized to
own and operate a horse racing and gaming facility and ancillary activities on
nontribal lands in Claremore, Oklahoma. CNE is the sole member owning 100%
of the units of WRD. WRD is under the jurisdiction of the State Compact and the
Oklahoma Horse Racing Commission (OHRC).
Organizational Description
WRD is as a blended component unit of CNE, which is a component unit of CNB.
Day to day operations at WRD is under the management of CNE COO. WRD is
under the oversight of the CNB CEO and direction of the CNB Board of Directors.
Employee population is approximately 206. Kronos is used for timekeeping and
payroll is processed by the CNB Payroll Department. Accounts payable for WRD
is processed by the CNB Accounts Payable Department. Accounting is
performed at the location with consolidations and financial reporting performed at
CNB corporate by the CNB Chief Financial Officer and staff. Our fiscal year end
is September 30.
Summary of Significant Accounting Policies
Audit Requirements:
cc) FY 2011 – 2013, with option to renew for FY 2014 and FY 2015
dd) Internal control review for each year for which the audit is performed
ee) Management Letter for each year for which audit is performed should
include recommendations relative to internal controls, fiscal affairs and
other significant observations
ff) Audit performed in accordance with GAAS
gg) Summary of significant accounting principles
hh) Audited Financial Statements presented in accordance with GASB
ii) Deliverables – on or before January15, present audit and management
letter to CNB Board of Directors/Audit Committee.
MIS Environment
Included in CNE MIS environment.
- 35 -
5. Volume Statistics
Revenues (annually)
Capital Assets
Approx.
Approx.
$ 24 Million
$ 5 Million
- 36 -
ATTACHMENT H
AEROSPACE PRODUCTS S.E., Inc.
Audit Information for RFP
Organization
Aerospace Products S.E., Inc. (APSE) was formed in 1987 in Huntsville,
Alabama. On August 28, 2009 CNB acquired 75% of the stock of APSE, and
APSE Holdings, LLC. acquired 25%. APSE earns revenues predominately from
the distribution and management of military specification, high-strength aircraft
parts to customers located throughout the United States.
Organizational Description
APSE’s corporate headquarters is located in Huntsville, Alabama and has offices
in San Antonio, TX and Wichita, KS. The CNB interest in APSE is managed by
the CNB CEO and under the direction of the CNB Board of Directors. CNB
accounts for the investment in APSE using the equity method. Our fiscal year
end is September 30.
Summary of Significant Accounting Policies
Audit Requirements:
jj) FY 2011 – 2013, with option to renew for FY 2014 and FY 2015
kk) Internal control review for each year for which the audit is performed
ll) Management Letter for each year for which audit is performed should
include recommendations relative to internal controls, fiscal affairs and
other significant observations
mm) Audit performed in accordance with GAAS
nn) Summary of significant accounting principles
oo) Audited Financial Statements presented in accordance with FASB
pp) Deliverables – on or before January 15, present audit and
management letter to CNB Board of Directors/Audit Committee.
MIS Environment
APSE utilizes Microsoft Nav 4.0 for financial reporting and a third party service
provider for payroll processing.
Volume Statistics
Revenues Approx.
Total Assets Approx.
$ 11 Million (annually)
$ 6 Million
- 37 -
ATTACHMENT I
CHEROKEE CRC, LLC
Audit Information for RFP
Organization
Cherokee CRC, LLC (CCRC) is a tribal owned limited liability/ 8(a) company
organized under the laws of the Cherokee Nation. CCRC was formed in March
2005 by CNB (51% ownership) and an individual (49% ownership). The targeted
business of CCRC is to engage in the business of providing services to
customers in the businesses described in the North American Industry
Classification Codes 54162 (Environmental Consulting Services), 541330
(Engineering Services), 562910 (Remediation Services), 541710 (Research and
Development in the Physical, Engineering and Life Sciences), 541380 (Testing
Laboratories) and to customers in homeland security under governmental
contracts which Section 8(a) status provides a competitive advantage.
Organizational Description
CCRC’s corporate headquarters is located in Tulsa, OK. CNB interest is
managed by the CNB VP of Diversified Businesses and under the oversight of
the CNB CEO and Board of Directors. CNB accounts for the investment in CCRC
using the equity method. Our fiscal year end is September 30.
Summary of Significant Accounting Policies
Audit Requirements:
qq) FY 2011– 2013, with option to renew for FY 2014 and FY 2015
rr) Internal control review for each year for which the audit is performed
ss) Management Letter for each year for which audit is performed should
include recommendations relative to internal controls, fiscal affairs and
other significant observations
tt) Audit performed in accordance with GAAS
uu) Summary of significant accounting principles
vv) Audited Financial Statements presented in accordance with FASB
ww) Deliverables – on or before January 15, present audit and
management letter to CNB Board of Directors/Audit Committee.
MIS Environment
QuickBooks is the software utilized for accounting and payroll at CCRC.
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Volume Statistics
Revenues Approx.
Total Assets Approx.
$20 Million (annually)
$8 Million
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ATTACHMENT J
CHEROKEE NATION BUSINESSES, LLC
Audit Information for RFP
Blended component units of CNB
Wholly Owned Subsidiaries
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Cherokee Nation Entertainment, LLC (CNE)
CNE blended components:
o Will Rogers Downs, LLC (WRD)
o Cherokee Hotels, LLC (CH)
Cherokee Nation Industries, LLC (CNI)
CNI blended components:
o CND, LLC
o Cherokee Medical Services, LLC (CMS)
o Cherokee Nation Healthcare Services, LLC (CNHS)
o Cherokee Nation Red Wing, LLC (CNRW)
o Cherokee Nation Logistics, LLC (CNL)
o Cherokee Nation Distribution, LLC (CNDist)
o Cherokee Nation Aerospace and Defense, LLC (CNAD)
o Cherokee Nation Metal Works, LLC (CNMW)
o Cherokee Nation Protective Services, LLC (CNPS)
Compass Development, LLC (CD)
Cherokee Services Group, LLC (CSG)
Cherokee Nation Technologies, LLC (CNTech)
Cherokee Nation Security and Safety, LLC (CNSS)
Cherokee Nation Property Management, LLC (CNPM)
Cherokee Nation Technology Solutions, LLC (CNTS)
Cherokee Nation Construction Services, LLC (CNCS)
Cherokee Nation Management Corporation (CNMC)
CNB Economic Development Company, LLC (CNB EDC)
Cherokee Nation Mission Solutions, LLC (CNMS)
Cherokee Nation Government Solutions, LLC (CNGS)
Cherokee Nation Assurance, LLC (CNA)
Mobility Plus, LLC
Joint Ventures
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Cherokee CRC, LLC (CCRC)
Aerospace Products S.E., Inc. (APSE)
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____________________________
Print Name
_____________________________
Title
_____________________________
Company
_____________________________
Physical Address
_____________________________
City/State/Zip
_____________________________
Date
_____________________________
E-Mail Address
_____________________________
Telephone Number
_____________________________
Fax Number
_____________________________
Signature of Authorized Individual
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ATTACHMENT K
SAMPLE Contract
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SAMPLE
CHEROKEE NATION
MEMORANDUM OF AGREEMENT
This Agreement is made and entered into this
day of _________________,
2010, by and between Cherokee Nation, P.O. Box 948, Tahlequah, Oklahoma 74465
(hereinafter referred to as the "NATION"), and contractor’s name and address, Social
Security Number ***-**-______ or Federal Identification Number (hereinafter referred to
as the "CONTRACTOR").
WHEREAS, the NATION wishes to enter into an agreement with the CONTRACTOR to
provide brief description of services, as per this contract, the Cherokee Nation Request
for Proposal incorporated as Attachment “A”, and,
WHEREAS, the CONTRACTOR hereby affirms he is an independent contractor in
accordance with the laws of the State of Oklahoma and the Internal Revenue Service, and
further maintains he is qualified, willing, and able to perform the services herein described,
and
NOW THEREFORE, and in consideration of the mutual covenants, promises,
agreements, understandings, and conditions herein contained, the parties hereto mutually
promise to the other, agree, and understand as follows, to wit:
TERM:
The term of this Agreement shall be from start date, 2011, through end
date , 2012, unless canceled or extended in writing by both parties hereto.
NOTICES:
All notices required hereunder shall be sent via U.S. Mail, postage paid as
follows:
To the NATION:
Cherokee Nation Department/Program
Attention: name and title
P.O. Box 948
Tahlequah, OK 74465
With a copy to:
Cherokee Nation Acquisition Management
Attention: Contracts Office
P.O. Box 948
Tahlequah, OK 74465
To the CONTRACTOR:
name
address
city, state, zip
PERFORMANCE REQUIREMENTS OF THE CONTRACTOR:
The CONTRACTOR shall furnish all labor, materials, administration, services, supplies,
equipment, transportation, and quality control necessary to provide complete description
of services
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PERFORMANCE REQUIREMENTS OF THE NATION:
The NATION shall make all necessary arrangements for the site of the completion
description of CN’s duties.
ASSIGNMENT OR NON-ASSIGNMENT PROVISION:
The NATION and the CONTRACTOR hereby agree the services specified in this
Agreement may not be delegated or assigned without the prior written approval of the
NATION.
TERMINATION OR CANCELLATION CLAUSE:
This Agreement may be terminated by either party, with or without cause, upon ten (10)
days written notice by certified letter. In the event this Agreement is terminated or
canceled by either party, the NATION shall compensate the CONTRACTOR only for
services provided up to the point of termination or cancellation.
STATUS OF THE PARTIES:
The parties hereto stipulate and agree the CONTRACTOR is an independent contractor,
and the NATION is interested only in the results of the CONTRACTOR'S services and
shall not control the means and methods by which the CONTRACTOR'S services are
rendered. The CONTRACTOR is not eligible for federal, Social Security, State Workers'
Compensation, or Unemployment Insurance Benefits from the NATION by virtue of
payment received and shall be responsible for all federal and state taxes related to
payments received from the NATION under this Agreement.
INDEMNIFICATION:
Each party shall be responsible for the acts and/or omissions of its respective
employees, agents, and/or representatives and agrees to assume the entire
responsibility and liability for losses, damages, and claims arising out of injury to their
respective employees, agents, and/or representatives, or damage to their equipment or
other property and agree to indemnify, defend, and hold each other harmless against
all claims or expenses for such losses, arising out of the performance of this
Agreement excluding any liability caused by the negligence of the other party or its
respective employees, agents, and/or representatives. Nothing herein shall constitute a
waiver of the NATION'S sovereign immunity.
DRUG FREE and TOBACCO FREE WORKPLACE
a) Any contractor performing work for the Cherokee Nation agrees to publish a
statement notifying all employees, subcontractors, and other workers that the
unlawful manufacture, distribution, dispensing, possession or use of a controlled
substance is prohibited in the contractor’s workplace and specifying the actions that
will be taken against violators of such prohibition.
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b) The NATION will consider lack of enforcement or lax enforcement of the statement
by the CONTRACTOR a default of the Agreement.
c) The CONTRACTOR further agrees to provide all persons engaged in performance
of the contract with a copy of the statement.
d) A copy of the Contractor’s Drug Free Workplace statement shall be included with
any bid submitted or the Contractor will be deemed to accept and agree to use the
statement provided by the NATION.
e) The CONTRACTOR understands and recognizes that all Cherokee Nation
buildings, whether leased or owned, and the grounds surrounding those facilities are
considered by the NATION to be a tobacco free workplace. The CONTRACTOR will
ensure all employees, subcontractors, and other workers will abide by this policy.
DEBARMENT, SUSPENSION, PROPOSED DEBARMENT, AND OTHER
RESPONSIBILITY MATTERS:
The CONTRACTOR certifies to the best of its/his/her knowledge and belief that neither
the CONTRACTOR, nor any of its/his/her principals, are presently debarred, suspended,
proposed for debarment, or declared ineligible for the award of contracts by any federal,
state, local, or tribal agency. The CONTRACTOR also certifies to the best of its/his/her
knowledge and belief that it/he/she has not, within a three-year-period preceding this
Agreement, been convicted of or had a civil judgment rendered against it/him/her for:
commission of a fraud or a criminal offense in connection with obtaining, attempting to
obtain, or performing a public (federal, state, local, or tribal) contract or subcontract;
violation of federal or state antitrust statutes relating to submission of offers or
commissions or embezzlement, theft, forgery, bribery, falsifications or destruction of
records, and/or making false statements; and is not presently indicted for, or otherwise
criminally or civilly charged by a governmental entity with, commission of any of the
offenses enumerated in this provision. The CONTRACTOR certifies it/he/she has not
within a three-year period preceding this Agreement, had one or more contracts
terminated for default by a federal, state, local, or tribal agency.
SOVEREIGN IMMUNITY:
The NATION is a sovereign nation and enjoys the full privileges of a sovereign’s
immunity from suit, as recognized by Congress and the United States Supreme
Court. Execution of this Agreement shall not be construed to be a waiver of
sovereign immunity, and neither shall any clause herein be construed to
effectuate the consent to suit, as the NATION expressly declines to waive
sovereign immunity.
GOVERNING LAWS AND CONFLICT OF LAW:
This Agreement shall be governed by, construed, and enforced in accordance with the
laws of the United States and where applicable, the laws of the Cherokee Nation. If it
should appear that any of the Agreement terms are in conflict with any rule of law or
statutory provision of the United States, or where applicable, with any rule of law or
statutory provision of the Cherokee Nation, such conflicting term(s) shall be deemed
inoperative and null and void insofar as it may be in conflict with such rule of law or
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statutory provision, and shall be deemed modified to conform to such rule of law or
statutory provision. However, such conflict shall not operate to nullify or void the entire
Agreement.
INTEGRATION AND WAIVER:
This Agreement contains the complete expression of the parties’ agreement with
respect to the subject matter hereof, and shall bind the parties, their successors and
assigns. There are no previous or contemporary understandings, representations, or
warranties not set forth herein. No subsequent amendment or modification of this
Agreement shall be of any force or effect unless in writing and signed by the parties to
be bound thereby. No provision of this Agreement shall be considered waived by the
NATION unless such waiver is in writing and signed by the NATION. No such waiver
shall be a waiver of any past or future default, breach, or modification of any of the
provisions of this Agreement unless expressly stipulated in such waiver. The parties
further state to the best of their knowledge, no employee of the NATION who exercises
any functions or responsibilities in connection with the performance hereunder has any
personal interest, direct or indirect, in this Agreement. This Agreement shall supersede
any and all written or oral statements, agreements, and/or representations of the
parties made prior to or contemporaneously with the execution hereof. The parties
agree their respective performances hereunder shall be governed by an obligation of
good faith.
AVAILABILITY OF FUNDS:
The NATION'S obligation for payment under this Agreement is contingent upon the
availability of appropriated funds from which payment for services can be made. Funds
are available for performance under this Agreement when appropriated or authorized by
the Tribal Council of the Cherokee Nation. No legal liability on the part of the NATION for
any payment may arise hereunder until funds are made available by the designated
officer of the NATION for performance and until the CONTRACTOR receives notice of
availability from the NATION'S designated officer through issuance of a purchase order.
PROMPT PAYMENT:
The CONTRACTOR certifies that all sums due to any suppliers have been paid or will
be paid within ten (10) days of receipt of any money received from the Cherokee
Nation under this Agreement.
CONSIDERATION OR COMPENSATION:
In consideration for the services provided, the NATION shall compensate the
CONTRACTOR in the amount of INSERT AMOUNT HERE ($
). Any travel
incurred under this Agreement shall be included in the CONTRACTOR’S fee and is the
responsibility of the CONTRACTOR. The CONTRACTOR shall submit an original
invoice for completed work to the attention of PROGRAM EMPLOYEE’S NAME HERE
Cherokee Nation, P.O. Box 948, Tahlequah, OK 74465. The CONTRACTOR'S
invoice(s) shall include a description of the services provided, date(s), and amount(s).
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The NATION shall make full payment for completed work within a reasonable time,
upon certification of the work as satisfactorily completed and approved for payment by
an authorized Cherokee Nation personnel and receipt and approval of the
CONTRACTOR’S properly prepared invoice(s). The CONTRACTOR certifies that all
sums due to subcontractors, laborers and material suppliers have been paid or will be
paid within ten (10) days of receipt of payment by Cherokee Nation. This Agreement
shall not exceed INSERT AMOUNT HERE ($
) without the prior written consent of
the Principal Chief, Cherokee Nation or his authorized designee.
CONTRACTOR:
_______________________________
Name, Title
Company Name
______________________
Date
CHEROKEE NATION:
_______________________________
Name,
Group Leader,
Department
______________________
Date
_______________________________
Rebecca Mitchell, C.P.M.,
Director of Acquisition Management
______________________
Date
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