2-2026.5.14 South Weber Audit RFP.pdf

REQUEST FOR PROPOSAL

TO PROVIDE AUDIT SERVICES FOR

SOUTH WEBER CITY

CITY INFORMATION

The City of South Weber was incorporated in 1938 and later became a city in 1971. The city operates under a six-member council form of government, with a mayor and five city council members. The city is in northern Davis County with a population of approximately 8,155 residents. The city provides general administrative services, water, sewer and sanitation services, planning/zoning services, and public safety services to its residents. The city employs 21 full-time employees and 88 part-time employees to provide the necessary services offered by the city.

FINANCIAL INFORMATION

The City prepares financial statements in accordance with GAAP as outlined by GASB. Total revenue for fiscal year 2025 was over $12 million and current fiscal year (2026) budget of approximately $13 million.

Federal expenditures are less than $500,000, therefore, no single audit is anticipated for the current fiscal year. The city uses Caselle ERP system.

The City utilizes the following funds:

Governmental Funds:

• General Fund

• Recreation Fund

• Transportation Fund

• Local Building Authority Fund

• Capital Projects Fund

Enterprise Funds:

• Water Utility Fund

• Sewer Utility Fund

• Sanitation Utility Fund

• Storm Sewer Utility Fund

Internal Service Fund:

• Fleet Management Fund

South Weber City is required by State law to provide an annual audit of its financial statements by a

Certified Public Accountant in accordance with generally accepted auditing standards. This audit must be submitted to the Office of the Utah State Auditor within 180 days after the end of the fiscal year.

OBJECTIVE AND SCOPE

A financial audit is requested for the fiscal year ending June 30, 2026. The audit shall be performed in accordance with generally accepted auditing standards, as promulgated by the American Institute of

Certified Public Accountants (AICPA); the AICPA Audits of State and Local Governmental Units audit and accounting guide; and the Government Auditing Standards, published by the U.S. General

Accounting Office. A single audit is not anticipated for FY2025-2026.

The audit must be completed, and the report issued prior to November 30, 2026. The auditor must present the audit report to the City Council in their first meeting in December, which is typically the 2nd Tuesday of the month. The auditor must deliver an electronic copy of the report to the Office of the Utah State

Auditor and to the Finance Department of South Weber City.

The auditor will be involved in drafting, typing, and printing financial statements, and will assist management’s efforts to obtain the Government Finance Officers Association’s Certificate of

Achievement of Excellence in Financial Reporting.

REPORT REQUIREMENTS

A. For financial audits, the auditor shall examine the financial statements and records of the entity and shall issue an auditor’s opinion on the entity’s financial statements with an in-relation-to opinion on combining and supplementary information, if any. Such financial statements shall be prepared in conformity with generally accepted accounting principles.

B. The auditor shall issue a compliance report based on an audit of general purpose or basic financial statements and a report on the internal control structure; both in accordance with Government

Auditing Standards.

C. The auditor shall prepare and include a statement expressing positive assurance of compliance with State fiscal laws identified by the state auditor and other financial issues related to the expenditure of funds received from Federal, State, or local governments.

D. The auditor shall prepare a comprehensive management letter including the auditor’s findings and recommendations relative to the internal accounting and administrative controls, compliance with laws and regulations as applicable and adherence to generally accepted accounting principles.

E. The auditor shall include the written responses from South Weber City for each recommendation included in the state compliance letter and the management letter required by the State of Utah

Legal Compliance Audit Guide.

F. The auditor shall review the Annual Comprehensive Financial Report for completeness. The report will be compiled and prepared by the city along with its’ 3rd-party financial consultant.

AUDIT ENGAGEMENT TERMS

A. An engagement year/period shall end on January 31st following the end of the applicable fiscal year (FY) unless otherwise specified.

B. It is anticipated that the agreement will initially cover 3 years, with an option to extend 5 years.

Upon satisfactory performance, completion, and city council evaluation of the audit for FY 2026, it is anticipated that the same firm be awarded 2 more successive years covered by an initial contract award, with a city option to extend up to 2 more years. Current year and potentially 4 successive years are as follows:

1. July 1, 2025 through June 30, 2026 (Current FY 2026)

2. July 1, 2026 through June 30, 2027 (FY 2027)

3. July 1, 2027 through June 30, 2028 (FY 2028)

4. July 1, 2028 through June 30, 2029 (FY 2029)

5. July 1, 2029 through June 30, 2030 (FY 2030)

PROPOSAL QUALIFICATION REQUIREMENTS

Interested certified public accounting firms should include the following information in their proposal to perform the audit of the fiscal year ending June 30, 2026:

A. Profile of the Independent Auditor

The profile of the proposers should provide general background information. This should include:

1. The organization and size of the proposer, whether it is local, regional, national or international in operations.

2. The locations of the office from which the work is to be done and the number of professional staff, by staff level, employed at the office.

3. A statement on the proposer’s staff capability to audit computerized systems.

4. A positive statement that the following mandatory criteria are satisfied:

a. An affirmation that the proposer is properly licensed for practice as a certified public accountant in the State of Utah.

b. An affirmation that the proposer meets the independence requirements of the American

Institute of Certified Public Accountants and the Government Auditing Standards, 2003 revision, published by the U.S. General Accounting Office.

c. An affirmation that the firm meets the continuing education and external quality control review requirements contained in the Government Auditing Standards, 2003 revision, published by the U.S. General Accounting Office.

B. Proposer’s Qualifications

1. Identify the audit partners, audit managers, field supervisors and other staff who will work on the audit, including staff from other than the local office. Resumes including relevant experience and continuing education for the staff auditors up to the individual with final responsibility for the engagement should be included.

2. Describe the recent local office auditing experience similar to the type of audit requested.

3. If other auditors are to participate in the audit, those auditors should be required to provide similar information.

C. Proposer’s Approach to the Examination

Submit a general audit work plan to accomplish the scope defined in these guidelines. The audit work plan should demonstrate that the proposer understands the audit requirements and the audit tests and procedures to be applied in completing the audit plan. The plan should detail the expected number of audit hours by staff level. The planned use of specialists should also be specified.

D. Time Requirements

Detail how the reporting deadline requirements of the audit will be met.

E. Fees

Supply the billing rates, estimated number of billable hours, other billable expenses and a “not-to-exceed” fee for the audit, inclusive of travel, per diem and all other out-of-pocket expenses. As noted in section

IV, it is expected that if the selected certified public accounting firm performs satisfactorily for the June

30, 2026 audit, it will be engaged to perform the audit for the succeeding three years. Therefore, the not-to-exceed fee information requested above should be provided on an annual basis for three years.

F. Non-discrimination Clause

Affirm that the firm does not discriminate against any individual because of race, religion, sex, color, age, handicap or national origin, and that these shall not be a factor in consideration for employment, selection of training, promotion, transfer, recruitment, rates of pay, or other forms of compensation, demotion, or separation.

CONTRACTUAL ARRANGEMENTS

A. Audit programs, work papers, and reports must be retained for a period of three years after the completion of the audit and made available for inspection by South Weber City or government auditors if requested by them.

B. Payment for the audit will be made upon receipt of the audit reports required in the reports section above.

C. South Weber City staff will be available to prepare schedules, trial balances, and provide documentation to assist the auditor as their schedules permit during the course of the audit.

SUBMITTAL REQUIREMENTS

Submit proposals electronically through the Utah Public Procurement Place (U3P) by 5:00 p.m.

(MST) on June 5, 2026. Proposals submitted electronically through U3P may require uploading of electronic documents. U3P accepts most document types, such as: Word, Excel, PDF. Typical unacceptable file types, but not limited to, zip files, movies, mp3 files, or password protected files, etc.

Proposals received after this deadline will be late and ineligible for consideration. Following the deadline, the names of those responding to the RFP may be made public.

It is the intention of the City to issue a purchase order (or contract) with reasonable promptness, to the highest scoring responsive and responsible offeror that meets the RFP requirements and specifications;

however, the City does not guarantee to make any purchase based upon this RFP.

EVALUATION OF PROPOSALS

The evaluation process will be based solely on these evaluation criteria. The evaluation process may include a numeric-scoring.

1. Geographic location of key personnel and responsible office 10- Points

2. Size and structure of firm, considering the scope of the audit 10- Points

3. Ability to maintain staff continuity 10- Points

4. Technical experience of the firm 20- Points

5. Experience in working with the city or a city of similar size 30- Points

6. Qualifications of staff 30- Points

7. Experience in audit performance 20- Points

8. Reasonableness of time estimates and total audit hours 20- Points

9. Reference comments 20- Points

10. Cost proposal 30- Points

Cost Formula: 30 x (2- (Proposed Price/Lowest Proposed Price)).

FORMATION OF THE CONTRACT WITH THE SELECTED APPLICANT

After selecting an applicant, the City may conduct additional negotiations with the applicant to arrive at a best and final offer. When both parties are in agreement, a contract will be entered into and executed by the City Manager. The selected applicant will be bound by provisions of the Sample Contract attached to this RFP.

INCURRING COSTS

South Weber City will not be liable for any cost that applicants may incur in the preparation of their proposals. Proposals should be concise, straightforward, and prepared simply and economically.

Expensive displays, bindings, or promotional materials are neither desired nor required.

QUESTIONS

Any questions that arise after the release of this RFP, which may significantly impact the responses, should be submitted through the RFP Question and Answer section on the U3P portal.

Only written clarifications and addenda issued by the Purchasing Department will be binding for RFP evaluation and award of contract. Questions are due by June 1, 2026 at 12:00 p.m. (MST).