1-Sharon Hill RFP Independent Municipal Audit Services FINAL Accepted.pdf

SHARON HILL BOROUGH | DELAWARE COUNTY, PENNSYLVANIA

BOROUGH OF SHARON HILL

Request for Proposals Independent Municipal Auditing Services

Fiscal years ending December 31, 2023-2025 with two optional annual renewals for 2026 and 2027

RFP Number 2026-AUD-01

Anticipated Issue Date September 29, 2026

Questions Due October 9, 2026, by 4:00 p.m. Eastern Time

Proposal Due October 23, 2026, by 3:00 p.m. Eastern Time

Primary Contact Joy Taylor, Borough Manager

Borough Address 250 Sharon Avenue, Sharon Hill, PA 19079

Telephone 610-586-8200 www.sharonhillboro.com

Contents

• 1. Invitation and purpose

• 2. Borough background and audit environment

• 3. Term of engagement and appointment requirements

• 4. Scope of services

• 5. Deliverables and performance schedule

• 6. Borough responsibilities

• 7. Minimum qualifications

• 8. Proposal content and organization

• 9. Fee proposal requirements

• 10. Questions, addenda, and communications

• 11. Submission instructions

• 12. Evaluation and selection

• 13. Contract terms and conditions

• 14. Required certifications

• Appendix A - Cost proposal form

• Appendix B - Proposal submission checklist

1. Invitation and purpose

The Borough of Sharon Hill, Delaware County, Pennsylvania (the “Borough”), invites proposals from qualified independent certified public accounting firms to provide annual municipal auditing and related financial reporting services. The Borough seeks a firm that will deliver an objective, timely, well-managed audit; meet all applicable Commonwealth filing and publication requirements; communicate clearly with Borough Council and management; and offer practical recommendations that strengthen internal controls, compliance, and public accountability. The Borough only issues the DCED audit report and does not issue a GAAP financial statement.

The required base engagement will cover the Borough's fiscal years ending December 31, 2023, 2024, and 2025. The Borough requests a separate fixed fee for each required audit and optional pricing for the fiscal years ending December 31, 2026 and 2027. Optional-year work is subject to annual appointment by Borough Council, appropriation of funds, satisfactory performance, mutual agreement, and applicable law.

2. Borough background and audit environment

Sharon Hill Borough is a municipal borough in Delaware County, Pennsylvania, chartered in 1890. The

Borough had a 2020 Census population of 6,014 and operates on a calendar fiscal year. Borough operations include general administration, police, public works, code and zoning, sanitation and sewer-related functions, recreation and community services, and other activities authorized by Borough

Council.

The engagement shall include every Borough fund, account, activity, and financial record required for a complete statutory audit, including all general, special revenue, capital project, debt service, enterprise or proprietary, fiduciary or custodial, pension-related, grant, liquid fuels, escrow, and other funds or accounts maintained by or for the Borough. The final fund listing will be provided to the selected firm during contracting and audit planning.

Accounting and payroll systems: Quick Books |Complete Payroll Resources

Current reporting basis and prior-year status: Annual 01/01- 12/31

The Borough has historically used financial reporting practices prescribed or permitted by the

Pennsylvania Department of Community and Economic Development (DCED). Each proposer shall state the reporting-basis assumptions used in its fee and identify any effect on price or deliverables if the

Borough requires full financial statements prepared under generally accepted accounting principles.

3. Term of engagement and appointment requirements

The required base engagement consists of three prior-year audits covering the fiscal years ending

December 31, 2023, 2024, and 2025. The selected firm shall organize and staff the work to complete the outstanding audits efficiently while maintaining a separate audit file, opinion, financial report, DCED filing, management letter, and all other required deliverables for each fiscal year. The Borough also requests two optional annual renewals covering fiscal years 2026 and 2027. The Borough is not obligated to exercise either renewal.

Council authorization and annual appointment: Because fiscal years 2023-2025 have already closed, the award resolution and final agreement shall address Council authorization for those audits in the manner advised by the Borough Solicitor, taking into account the Borough's enabling ordinance and any prior appointment actions. Consistent with 8 Pa.C.S. § 1005(7), each optional audit for fiscal years

2026 and 2027 requires a separate annual appointment by Council resolution before the close of that fiscal year, assuming the enabling ordinance remains in effect. The optional pricing and master agreement do not themselves appoint the firm for either optional year.

An optional year may be exercised only upon written notice or agreement, Council action as required, continued independence, satisfactory performance, and availability of appropriated funds. The Borough may elect to issue a new solicitation at any time permitted by law.

4. Scope of services

4.1 Required base services

• Plan and conduct an annual independent audit of the Borough's financial records and accounts in accordance with auditing standards generally accepted in the United States of America and any other standards legally or contractually applicable to the engagement, including Government Auditing

Standards when required.

• Perform the powers and duties applicable to an independent borough auditor under 8 Pa.C.S. §

1059.11 and related provisions of the Pennsylvania Borough Code, including the annual examination, audit, and settlement of all accounts in which the Borough is concerned.

• Audit all Borough funds, accounts, activities, and material financial statement balances, including cash, investments, receivables, revenues, expenditures, payroll, benefits, debt, capital assets when applicable, grants, interfund activity, pensions and other post-employment benefits when applicable, escrow and agency activity, and commitments and contingencies.

• Evaluate the design and implementation of relevant internal controls and perform testing sufficient for the audit. Communicate control deficiencies, significant deficiencies, material weaknesses, noncompliance, questioned costs, and other matters required by professional standards or law.

• Prepare or assist in preparing the Borough's audited financial statements, schedules, notes, and required supplementary information on the reporting basis agreed in the engagement letter. Clearly identify any departure from generally accepted accounting principles and the effect on the auditor's report.

• Prepare and electronically file the DCED Municipal Annual Audit and Financial Report (currently

DCED-CLGS-30), including all required schedules and certifications, within the statutory deadline.

Provide evidence of each required filing to the Borough.

• Prepare the concise financial information required for newspaper publication and provide it to the

Borough promptly enough to meet the publication deadline under 8 Pa.C.S. § 1059.1. Provide the publishing newspaper any full report required by law when the publication request is submitted.

• Prepare and facilitate filing of the audit report with the Borough Secretary, the appropriate

Delaware County court office, the Pennsylvania Department of Transportation, DCED, and any other agency or repository required by law or applicable funding agreement.

• Issue an independent auditor's report and all other reports required by the applicable auditing and reporting framework.

• Issue a separate management letter describing findings, root causes when determinable, risk or operational effect, and practical corrective recommendations. Distinguish required findings from advisory observations.

• Promptly notify the Borough Manager, Council President, and Borough Solicitor of suspected fraud, material misstatement, illegal acts, material noncompliance, significant delays, scope limitations, or other urgent concerns, consistent with professional standards and law.

• Conduct an entrance conference and exit conference with management and present the final audit, findings, and recommendations to Borough Council at a public meeting when requested, at no additional charge.

• Provide reasonable routine consultation during the engagement and any exercised optional audit year on audit preparation, implementation of audit recommendations, new GASB pronouncements, DCED reporting, internal controls, and financial reporting matters. The proposal shall state the number of consultation hours included in the fixed fee and identify what would be considered an additional service.

• Review prior audit findings and report on their status. Coordinate professionally with any predecessor auditor, actuary, pension administrator, tax collector, grant administrator, or other service provider whose records are relevant to the audit.

4.2 Conditional and separately priced services

The following services shall be priced separately and performed only when authorized in writing:

• A Single Audit or program-specific audit under the Single Audit Act and 2 C.F.R. Part 200, if the

Borough meets the applicable federal expenditure threshold.

• Grant-specific compliance audits, agreed-upon procedures, or schedules not included in the base statutory audit.

• Preparation of full government-wide financial statements under generally accepted accounting principles if not included in the base proposal.

• Implementation assistance for new accounting standards, complex transactions, corrective-action plans, or financial statement reconstruction beyond ordinary audit adjustments.

• Forensic accounting, fraud investigation, litigation support, or other consulting services outside the audit scope.

The selected firm shall evaluate all nonaudit services for independence and shall not accept management responsibilities. No separately billable work may begin without a written scope, fee or not-to-exceed amount, independence determination, and authorization by the Borough Manager or

Borough Council as required.

5. Deliverables and performance schedule

Target Deliverable

Within 10 business days after engagement Kickoff meeting; records inventory; secure data-transfer protocol;

communication plan; identification of missing records and known barriers

Within 15 business days after engagement

Detailed recovery schedule for the 2023-2025 audits; staffing by audit year;

client assistance/PBC lists; sequencing and quality-review plan

Target Deliverable

Within 45 calendar days after engagement

Complete planning and substantially complete fieldwork for fiscal year 2023, subject to timely Borough records and third-party confirmations

Within 90 calendar days after engagement

Draft fiscal year 2023 reports and substantially complete fiscal year 2024 fieldwork

Within 120 calendar days after engagement

Final fiscal year 2023 reports; draft fiscal year 2024 reports; substantially complete fiscal year 2025 fieldwork

Within 150 calendar days after engagement Final fiscal year 2024 reports and draft fiscal year 2025 reports

Within 180 calendar days after engagement

Final fiscal year 2025 reports; required filings and publication support for all three years; consolidated status briefing and Council presentation schedule

The Borough welcomes a faster schedule. A proposer that cannot meet any target shall state its earliest feasible date, explain the reason, and propose a recovery plan. If proposing optional fiscal year 2026 services, the firm shall specifically explain how it will address that audit's statutory filing requirements while completing the prior-year audits. Any delay caused by incomplete Borough records shall be documented promptly, together with the specific missing items, responsible party if known, impact on the critical path, and proposed recovery plan.

6. Borough responsibilities

• Designate the Borough Manager and Treasurer, or their designees, as primary contacts for the engagement.

• Provide reasonable access to financial records, agreements, minutes, policies, systems, personnel, facilities, and third-party information under Borough control.

• Prepare agreed schedules and reconciliations identified in the client assistance/PBC list and respond to audit inquiries in a timely manner.

• Provide suitable workspace and reasonable access to Borough technology when on-site work is authorized. The firm shall provide its own computers and ordinary audit equipment.

• Review drafts, proposed audit adjustments, findings, and management responses promptly.

• Publish concise financial information and take Council action when legally required, with technical assistance from the auditor.

7. Minimum qualifications

• The proposer must be a certified public accounting firm licensed or otherwise legally authorized and in good standing to practice in the Commonwealth of Pennsylvania.

• The firm and engagement team must be independent of the Borough under applicable AICPA, Government Auditing Standards, Pennsylvania law, and other relevant requirements.

• The firm must have at least five years of recent experience auditing Pennsylvania municipalities or comparable local governments, including DCED reporting and Borough Code requirements.

• The engagement partner and manager must demonstrate substantial governmental audit experience and satisfy all applicable continuing professional education requirements.

• The firm must maintain a system of quality management and provide its most recent external peer review report, related letter of comments if any, and the firm's response.

• The firm must disclose any pending or concluded disciplinary, regulatory, quality-control, or litigation matter within the past five years that could reasonably affect the Borough's evaluation.

• The firm must have sufficient staff and technology to meet the required schedule and maintain secure handling of Borough financial, personnel, law-enforcement-related, and personally identifiable information.

• The firm must maintain insurance in the types and amounts stated in this RFP or otherwise approved by the Borough and provide certificates before work begins.

8. Proposal content and organization

To support a fair review, proposals shall follow the order below and use clearly labeled sections:

1. Cover letter signed by a person authorized to bind the firm, including the proposal contact's name, title, address, telephone number, and email address.

2. Executive summary stating the firm's understanding of the engagement, principal strengths, and commitment to the required schedule.

3. Firm profile, ownership and legal structure, office that will serve the Borough, years in business, governmental audit practice, and total number of professional staff and CPAs.

4. Relevant Pennsylvania municipal experience, including at least five comparable engagements completed or active during the past five years.

5. Proposed engagement team, roles, relevant licenses and credentials, résumés, municipal experience, anticipated hours by staff level, and confirmation that substitutions require Borough approval.

6. Technical approach and work plan covering risk assessment, internal controls, sampling, information technology considerations, grant compliance, communication, audit adjustments, quality review, and use of secure technology.

7. Detailed schedule showing planning, client assistance/PBC requests, fieldwork, draft review, final reporting, filing, and Council presentation.

8. Independence and conflict disclosure, including all professional or financial relationships involving the Borough, its officials, employees, authorities, or component units during the past five years.

9. Most recent peer review report and any related comment letter; disclosure of relevant federal or state desk/field reviews and disciplinary matters during the past five years.

10. At least three references from Pennsylvania municipalities or comparable public entities, including contact name, title, telephone, email, engagement years, and services performed.

11. Completed cost proposal using Appendix A, including all assumptions, exclusions, optional services, and hourly rates.

12. List of every exception or requested modification to this RFP. Silence will be treated as acceptance, subject to negotiation of a final agreement.

13. Completed certifications and proposal checklist in Appendix B.

9. Fee proposal requirements

The cost proposal shall state a total all-inclusive maximum fixed fee for each fiscal year. The fixed fee shall include all labor, supervision, quality review, ordinary travel, lodging, meals, technology, secure data transfer, report preparation, filing, routine consultation, meetings, and other expenses necessary to complete the required base services. No travel or other out-of-pocket expense will be reimbursed unless specifically identified in the proposal and authorized in the final agreement.

• State the fixed fee separately for the required fiscal year 2023, 2024, and 2025 audits and for the optional fiscal year 2026 and 2027 audits.

• State fees for a Single Audit, each major federal program if applicable, full GAAP government-wide statements if not included in the base fee, and other optional services.

• Provide hourly rates by staff classification for authorized additional services and state how long those rates will remain effective.

• Identify the estimated hours by staff classification for each required audit and the minimum planned involvement of the engagement partner and manager.

• Explain all assumptions that could change the fee, including accounting basis, number of funds, condition of records, prior-year completion status, number of major programs, report preparation responsibilities, and on-site versus remote work.

• The final agreement shall require written authorization before any work outside the fixed fee is performed.

10. Questions, addenda, and communications

All questions concerning this RFP must be submitted in writing to Joy Taylor, Borough Manager, via the

“Ask a Question” feature in PennBid at https://pennbid.bonfirehub.com by October 2, 2026, at 4:00 p.m. Eastern Time..

Bidding Documents can be obtained at no cost on PennBid at https://pennbid.bonfirehub.com.

The Borough expects to issue any material clarification by written addendum which will be posted on

PennBid and proposers are responsible for checking PennBid for addenda. Notification of addenda will be issued via Public Notice sent to Bidders who have registered with and downloaded documents from

PennBid. Oral explanations are not binding. Proposers and their representatives shall not contact

Council members, Borough officials, employees, consultants, or agents regarding this procurement.

Unauthorized contact may result in disqualification.

https://pennbid.bonfirehub.com/

11. Submission instructions

Proposals must be received no later than October 23, 2026, at 3:00 p.m. Eastern Time and must be submitted electronically via PennBid at https://pennbid.bonfirehub.com.

Attention Joy Taylor, Borough Manager

Late proposals will not be accepted. The Borough is not responsible for delivery failures. Proposals may be withdrawn, altered or otherwise modified within PennBid at any time prior to the due date and time.

Proposals shall remain valid for at least 120 days after the deadline.

12. Evaluation and selection

A review team designated by the Borough will evaluate responsive proposals. The Borough may request clarifications, check references, verify qualifications, negotiate with one or more firms, or invite finalists to interviews. The Borough intends to select the firm offering the best overall value and demonstrated ability to satisfy the engagement, not necessarily the lowest fee.

Evaluation factor Points

Relevant Pennsylvania municipal audit experience and understanding of Borough requirements 25

Qualifications, capacity, continuity, and experience of the proposed engagement team 20

Audit approach, work plan, quality controls, and ability to meet the required schedule 20

Understanding of internal controls, compliance, findings, and practical improvement support 10

Peer review, references, independence, and overall record of performance 10

Fixed fees, optional-service pricing, assumptions, and overall value 15

Total 100

The anticipated recommendation date is November 19, 2026. Any selection is subject to Borough

Council action, completion of responsibility and conflict checks, confirmation of insurance, negotiation of acceptable terms, and the appointment or other authorization requirements applicable to each audit year. The Borough may select more than one firm for different services or may make no award.

13. Contract terms and conditions

Reservation of rights. The Borough may reject any or all proposals; waive immaterial defects; cancel, amend, or reissue the RFP; request additional information; negotiate scope and price; or make the award deemed most advantageous to the Borough, subject to law.

No obligation or proposal costs. This RFP is not an offer or contract. The Borough is not responsible for costs incurred in preparing, submitting, presenting, or negotiating a proposal.

Public records. Proposals and related records may be subject to the Pennsylvania Right-to-Know Law. A proposer shall clearly identify information it believes is protected and state the legal basis, but the

Borough will make disclosure decisions under applicable law and will not be bound by a blanket confidentiality designation.

Independence and conflicts. The selected firm shall maintain and document independence throughout the engagement, promptly disclose any actual or potential conflict, and avoid relationships that impair or appear to impair objective performance.

Insurance. Unless modified in the final agreement, the selected firm shall maintain workers' compensation as required by law; commercial general liability of at least $1,000,000 per occurrence and

$2,000,000 aggregate; professional liability/errors and omissions of at least $1,000,000 per claim;

automobile liability of at least $1,000,000 when vehicles are used; and cyber/privacy liability of at least

$1,000,000 when Borough data is electronically stored or processed.

Indemnification. The final agreement shall contain indemnification provisions acceptable to the

Borough Solicitor and consistent with Pennsylvania law. Proposers shall identify any requested exception.

Data security and confidentiality. The firm shall use reasonable administrative, technical, and physical safeguards; limit access to authorized personnel; encrypt sensitive data in transit and at rest when appropriate; notify the Borough promptly of suspected loss, unauthorized access, or security incident;

and securely return or destroy Borough data as directed and permitted by professional standards.

Workpapers and access. Audit workpapers remain the firm's property, but shall be retained for at least seven years after report release, or longer when required by law, grant, litigation hold, or professional standard. The firm shall provide reasonable access to the Borough, successor auditors, and authorized federal or Commonwealth agencies, subject to applicable standards and confidentiality protections.

Key personnel and subcontractors. The engagement partner and manager identified in the proposal shall remain assigned unless the Borough approves a substitution. No material subcontractor or assignment is permitted without prior written approval. The firm remains responsible for all work.

Nondiscrimination and compliance. The selected firm shall comply with all applicable federal, Commonwealth, and local laws, including nondiscrimination, professional licensing, records, tax, and employment requirements.

Termination. The final agreement may allow the Borough to terminate for convenience on 30 days' written notice or for cause after a reasonable cure period when appropriate. Payment shall be limited to accepted services properly performed through the effective termination date, subject to the agreement.

Governing law. The final agreement shall be governed by Pennsylvania law, with venue in a court of competent jurisdiction serving Delaware County, unless otherwise required by law.

Order of precedence. If the RFP, proposal, engagement letter, and final agreement conflict, the order of precedence shall be stated in the executed agreement. No proposal exception is accepted unless expressly included in the final agreement.

14. Required certifications

• The proposal is genuine, submitted without collusion, and signed by an authorized representative.

• The firm is properly licensed and in good standing to perform the proposed services in Pennsylvania.

• The firm and proposed team are independent of the Borough under all applicable standards, except as specifically disclosed.

• The firm has disclosed all actual or potential conflicts, disciplinary matters, litigation, and peer-review findings required by this RFP.

• The firm can meet the schedule stated in its proposal and will notify the Borough immediately of any material change.

• The firm acknowledges that the optional fiscal years 2026 and 2027 require separate annual Council appointments and are not guaranteed by the optional pricing or master agreement.

• The firm accepts the RFP requirements except for exceptions expressly listed in its proposal.

Appendix A - Cost proposal form

The Cost Proposal Form is included with the Bidding Documents for Reference. Bidders shall complete the electronic bid form within PennBid (“Prepare Your Submission” tab), inclusive of all pricing items and required supporting documents as identified.

Firm name: ______________________________________________________________

Office performing the work: _________________________________________________

Authorized representative: _________________________________________________

Service All-inclusive fee

Required base audit - FY ending 12/31/2023 $________________

Required base audit - FY ending 12/31/2024 $________________

Required base audit - FY ending 12/31/2025 $________________

Optional renewal - FY ending 12/31/2026 $________________

Optional renewal - FY ending 12/31/2027 $________________

Single Audit - base charge, if applicable $________________

Single Audit - each major program $________________

Full GAAP government-wide statements, if not included $________________

Council presentation beyond one included presentation $________________

Hourly rates for authorized additional services

Classification Rate

Engagement partner $________ / hour

Director / principal $________ / hour

Manager $________ / hour

Senior $________ / hour

Staff $________ / hour

IT / specialty audit professional $________ / hour

Classification Rate

Other: __________________ $________ / hour

Estimated hours by audit year and classification (attach detail if needed): _______________________

Included routine consultation hours per year: ____________________________

Pricing assumptions and exclusions (attach additional page if needed):

Appendix B - Proposal submission checklist

☐ Signed cover letter

☐ Executive summary

☐ Firm profile and Pennsylvania licensure information

☐ Relevant municipal audit experience

☐ Engagement team, résumés, staffing hours, and continuity plan

☐ Technical approach and detailed schedule

☐ Independence and conflict disclosure

☐ Most recent peer review report and related response/comment letter

☐ Regulatory, disciplinary, litigation, and quality-review disclosures

☐ At least three municipal/public-sector references

☐ Completed Appendix A cost proposal

☐ List of assumptions, exclusions, and requested exceptions

☐ Evidence or commitment to provide required insurance

☐ Acknowledgment of all addenda

☐ Required certifications and authorized signature

Proposer acknowledgment

The undersigned certifies that the proposer has reviewed the complete RFP, included all required information, disclosed all exceptions, and acknowledges that the engagement is subject to Council action, an executed agreement, appropriations, applicable law, and separate annual appointment for each exercised optional year.

Firm: ______________________________________________________________________

Authorized signature: ____________________________________ Date: _____________

Printed name/title: __________________________________________________________