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RFP Montana Reinsurance Association

Request for Proposal for Annual Audit Services

November 6, 2020

To Whom it May Concern:

This letter is a Request for a Proposal (RFP) for Annual Audit and Presentation of Financial Statements for the Montana Reinsurance Association.

Background:  River 9 Consulting, a private company, is the Administrator of the Montana Reinsurance Association, which is a program governed by a Plan of Operations.   The program has a Board of Directors and the Montana Reinsurance Association (hereinafter referred to as the “program” or MRA) is an independent public body, corporate and politic.  The program performs an essential governmental function in the exercise of powers conferred upon it in The Montana Reinsurance Association Act (Senate Bill 125) that was signed into law on April 30, 2019, and codified in Title 33, chapter 22, part 13, of the Montana Code Annotated. Any assessments imposed or collected pursuant to the operation of the program shall at all times be free from taxation of every kind.

River 9 consists of 2 professionals, including the President who reports to the MRA Board of Directors and the Montana CSI and one accountant.  The administrator performs the administrative functions required under this Plan of Operation.  The administrator is responsible, along with the board and the carriers, for the fair, equitable and reasonable administration of the program.

Review services to be provided:  This RFP is for an external audit of the Program and preparation of audited financial statements.  The selected independent party will:

  1. Form and express an opinion about whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America.
  2. Plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
  3. Consider the internal control of the Program solely for the purpose of determining audit procedures.
  4. Plan and perform the required Single Audit for subrecipient for MRA’s 1332 Grant.
  5. Plan and perform the carrier audit in addition to the financial audit. The carrier audit consists of taking a sample of the claims paid and the individuals ceded in the program and tracing the information back to source documents which might include the policy application, UB92 or HICFA documents.
  6. Communicate significant matters related to the audit that are relevant to the responsibilities in overseeing the financial reporting process for the Program.

The response to this RFP should identify the membership and credentials of the review team, and the primary contact’s information.  The review team will include insurance audit experience.

The independent party shall prepare a written report upon completion of the audit that is addressed to the Board of Directors.  A presentation on the audit results will be made to the Board of Directors.

Fee Estimate Assumptions:  Your fee estimate should incorporate the following assumptions:

  • The project will be performed in February 2021, with a preliminary report submitted by May 21, 2021, and the final report issued and presented by June 30, 2021.
  • Fees should include the cost, plus any estimated expenses.

Submission and Selection:  Proposals for the annual audit must be submitted by November 27, 2020.  The Board of Directors of the Montana Reinsurance Association will review each proposal.  Selection of the vendor is tentatively set for December 2, 2020, after interviews of finalists.  Additional information requests should be coordinated through my office at (208) 794-8840.

Other Matters:  Please provide references.  

We are looking forward to working with you, and please do not hesitate to contact me if you have any additional questions at 208-794-8840. We will consider all proposals received by November 27, 2020.

Sincerely,

 

Laren R Walker

River 9 Consulting, Inc

Administrator for Montana

Reinsurance Association


cc:       Richard Miltenberger, Chairman

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