Maryland Hospital Association
Request for Proposal (RFP)
Tax Preparation, Tax Compliance, and Financial Auditing Services
June 13, 2025
Purpose and Introduction
The Maryland Hospital Association, hereafter referred to as MHA, located in Elkridge, Maryland, is soliciting proposals from qualified certified public accounting (CPA) firms to provide both independent audit, compliance services, and annual tax preparation, filing, and advisory services for MHA and its affiliated entities. The engagement will cover the fiscal year ending June 30, 2025, with the option to renew annually for up to four additional years, contingent upon satisfactory performance, mutual agreement, and approval by MHA’s Board of Trustees.
Firms may submit proposals for one or both service areas of Tax Compliance & Auditing and Tax Preparation Services. With appropriate internal controls and clear management of any potential conflicts of interest, the same firm may be selected to perform both engagements.
Background
Founded in 1954 as the Hospital Council of Maryland, MHA is the advocate for Maryland’s hospitals and health systems. MHA is a 501(c)(6) organization with four affiliated entities, including:
- LogicQual Research Institute, a 501(c)(3)
- Maryland Hospital Association Political Action Committee (MHA PAC), a state-registered political action committee
- MHA Prime, Inc. a for-profit subsidiary of MHA
- MHA LLC, an LLC that manages MHA’s property holdings and property management functions
MHA and its affiliated entities employ approximately 45–50 staff across functional areas including government affairs, care transformation and financing, communications and external affairs, health care analytics, and operations. MHA’s annual consolidated operating budget is approximately $14 million, and MHA’s administrative office and records are located at 6820 Deerpath Rd., Elkridge, MD, 21075. The association maintains 91% ownership of its office building in Elkridge, Maryland, which it co-owns with the Maryland Health Care Education Institute (MHEI), and leases space to tenants including MHEI and the Maryland Patient Safety Center (MPSC) through MHA, LLC, an affiliated entity of MHA.
The Maryland Hospital Association (MHA) is a 501(c)(6) trade association representing Maryland’s hospitals and health systems. MHA serves as the unified voice of Maryland’s hospitals in policy, regulatory, and legislative matters at both the state and federal levels.
LogicQual Research Institute Inc, a wholly owned affiliate of MHA, a 501(c)(3) nonprofit organization, serves as the fiscal home for certain grant initiatives that align with MHA’s mission. LogicQual’s annual operating budget varies depending on awarded grants, and currently supports select initiatives with both local and federal partners.
Maryland Prime Inc., is a for-profit subsidiary of MHA established to support hospital operations and member services through business development partnerships, group purchasing opportunities, rebates and other revenue-generating initiatives that benefit the association and its members. Its primary sources of revenue include service contracts and strategic affiliations that promote innovation and savings in hospital operations.
The Maryland Hospital Association Political Action Committee (MHA PAC) is a state-registered political action committee that works in tandem with the American Hospital Association PAC at the Federal level. MHA PAC supports candidates for state office who advocate for policies that strengthen acute care in Maryland.
MHA provides both MHEI and MPSC with administrative shared services through MHA’s 501(c)(6), including IT, human resources, and financial and accounting services. MHEI and MPSC contract separately for their tax preparation and any required auditing services. The scope of this RFP does not include MHEI’s or MPSC’s auditing or tax preparation services, though they may request a separate quote for services from your firm in follow-up to your response.
Timeline
The anticipated timeline for the RFP process is as follows:
- RFP Release Date: June 13, 2025
- Proposal Due Date: June 27, 2025, 11:59PM EST
- Interviews (if needed): July 2025
- Firm Selected and Notified: July 28, 2025
- Engagement Start Date: On or about August 15, 2025
Submission Instructions and Contact for any Questions
Please submit your proposal by June 27, 2025, at 11:59PM EST, e-mail preferred:
Kristy Daphnis
Chief Operating Officer
Maryland Hospital Association
6810 Deerpath Road
Elkridge, MD 21075
Email: kdaphnis@mhaonline.org
With the subject line: “RFP RESPONSE: Tax/Audit Services”
Proposals must be submitted in PDF or Microsoft Word format.
Late submissions may not be considered.
All questions regarding this RFP should be directed to Kristy Daphnis, at the email address above.
Thank you and we look forward to reviewing your proposal.
Sincerely,
Melony G. Griffith
President and CEO
Maryland Hospital Association
Part 1:
Tax Compliance and Financial Auditing Services
Scope of Services
MHA seeks a firm to perform an independent tax audit and compliance review, with the goal of evaluating whether the organization’s tax-related accounting and internal controls comply with applicable laws, IRS regulations, and generally accepted accounting principles (GAAP). Specific services include:
- Conducting an independent review of MHA and its affiliates’ tax-related accounting practices
- Conducting an annual financial statement audit (and single audit, if applicable) of MHA and its affiliated entities
- Evaluating compliance with federal, state, and local tax regulations applicable to 501(c)(3), 501(c)(6), PAC, and for-profit entities
- Reviewing internal controls and documentation supporting tax-related financial activities
- Assessing prior-year filings (e.g., IRS Forms 990, 990-T, 1120, PAC reports) for consistency, completeness, and accuracy
- Identifying potential risk areas, red flags, or reporting inconsistencies
- Providing a written audit report and management letter with findings, recommendations, and remediation guidance
- Delivering a presentation of key findings to MHA senior leadership and, if requested, to the MHA Board of Trustees or other relevant parties
- Advising on changes in tax compliance obligations or accounting practices throughout the engagement period
- Conducting an annual audit of the MHA employee benefit plans
Proposal Requirements
Proposals must include the following information in the following order:
- Overview of the firm’s qualifications and past performance conducting independent audits and compliance reviews for nonprofit, PAC, and affiliated entities
- Description of the proposed engagement team, including biographies, relevant certifications, degrees, qualifications, and experience
- Statement of the firm’s audit approach, methodology, and work plan
- Proposed timeline for fieldwork and final report delivery
- Fee proposal, broken down by entity and service
- Copy of the firm’s most recent peer review report and management letter (if applicable)
- List of any potential conflicts of interest
- Describe any litigation that resulted in a finding of liability or a monetary judgement against your Firm in the past five years
- Three references from similar clients for whom similar tax compliance audit work has been performed
Evaluation Criteria
Proposals will be evaluated on the following criteria:
- Experience and expertise in nonprofit, PAC, and multi-entity tax audits
- Understanding of applicable IRS and Maryland state tax compliance requirements
- Technical approach and proposed methodology
- Qualifications and availability of the proposed audit team
- Cost effectiveness and clarity of fee proposal
- Client references and overall responsiveness of the proposal
Part 2:
Tax Preparation Services
Scope of Services
Firms submitting proposals must be prepared to deliver the following services
- Preparation and filing of applicable IRS Forms (e.g., 990, 990-T, 990-N, etc.) and related schedules for MHA and its affiliated entities
- Preparation and filing of IRS Form 1120 and other applicable forms for MHA’s for-profit affiliated entities
- Preparation and filing of all applicable IRS documents for the MHA PAC
- Consultation and advice regarding tax compliance, nonprofit governance, and IRS updates throughout the year
- Filing of appropriate state-level tax forms for MHA and its affiliated entities
- Timely communication with MHA management and Board of Trustees representatives
Proposal Requirements
Proposals must include the following information in the following order:
- Overview of the firm’s qualifications and past performance auditing 501(c)(6), 501(c)(3), for profit and PAC organizations (in the State of Maryland, and/or Federal)
- Identification of proposed engagement team members, along with their biographies, certifications, degrees, and other applicable qualifications
- Overview of methodology and approach to the engagement
- Timeline for deliverables
- Itemized fee proposal by entity and service
- Description of any value-added services included in the engagement
- Copy of the firm’s most recent peer review report and management letter (if applicable)
- Describe any litigation that resulted in a finding of liability or a monetary judgement against your Firm in the past five years
- Three references from similar clients
Evaluation Criteria
Proposals will be evaluated on the following criteria:
- Past performance and expertise in nonprofit and association tax matters
- Technical approach and understanding of the scope of work
- Cost effectiveness and clarity of pricing
- Qualifications of the team assigned
- Responsiveness, completeness, and client references