4-RFP 994-25-27 Annual Financial Audit Service 11.17.25.pdf

Tomball Independent School District

Request for Proposals for Annual Financial Audit Services

RFP # 994-25/27

RFP DEADLINE: January 7, 2026 by 4:00 pm

Tomball Independent School District is requesting Proposals from public accounting firms to perform the annual audit for fiscal years 2025-2026 & 2026-2027 with the option of three additional one (1) year renewals.

All RFP's must be addressed to the Administration at the address listed below and marked as follows:

RFP # 994-25/27 REQUEST FOR PROPOSALS FOR ANNUAL FINANCIAL AUDIT

SERVICES

ATTN: Zack Boles, Chief Financial Officer Tomball ISD

310 South Cherry Street Tomball, TX 77375

All submissions, responses and questions will be done via Bonfire link on the Tomball Independent School District website. Request for Proposals shall be received no later than 4:00 PM on Wednesday, January 7th, 2026 via:

https://tomballisd.bonfirehub.com/portal/?tab=openOpportunities

All questions must be submitted in Bonfire by 4:00 PM on Tuesday, December 9th, 2025.

Responses to questions asked will be posted to Bonfire by 5:00 pm on December 16th.

It is the responsibility of the submitting firm to ensure the RFP submissions are received prior to the deadline. RFP submissions received after the above date and time will not be considered.

Proposals shall include the forms contained in this solicitation and submitted in accordance with the guidelines listed. Proposals containing any conditions, omissions, unexplained erasures, alternates, items not called for or irregularities of any kind may be rejected by Tomball ISD.

Proposals will not be publicly opened.

https://tomballisd.bonfirehub.com/portal/?tab=openOpportunities

BACKGROUND INFORMATION:

Auditing requirements for Texas public school districts are contained in the Texas Education Agency Financial Accountability System Resource Guide(‘FASRG’), which is the authoritative document, adopted by reference as a rule of the State Board of Education, through Title 19, Texas Administrative Code, Section 109.41.

Tomball Independent School District (“the District”) has a student enrollment of more than 23,000 in grades Pre-K through 12, on twenty-five (25) campuses. The District expended federal financial assistance for several programs, including but not limited to, the National School Lunch Program, School Breakfast Program, ESEA Title I, Part A Improving Basic Programs, IDEA-Part B Formula, Title III Part A-English Language Acquisition and Language Enhancement, and Career and Technical-Basic Grant. The Board of Trustees adopted budgeted expenditures for 2025/26 of $238,300,000 for the General Fund, $77,343,915 for the Debt Service Fund and $12,827,000 for Child Nutrition. Further information regarding the district’s operating budget and completed financial audits can be found on the district’s website at Financial Reports - Tomball Independent School District

The District’s Annual Comprehensive Financial Report for the year ending June 30th, 2024 has been included and can be found at Financial Reports - Tomball Independent School District.

NOTE: The audit report for fiscal year ending June 30, 2025 was not approved by the release date of this RFP because of the federal government shutdown. The finalized ACFR will be uploaded to the District’s website as soon as it becomes available.

Site Location:

Tomball Innovation Center Building #2

11211 FM 2920

Tomball, TX 77375

RFP Schedule

RFP Release Date: November 19th, 2025

Questions Due: December 9th, 2025

Responses to Questions: December 16th, 2025

RFP Deadline: January 7th, 2026

Optional Interviews: January 12th – January 16th, 2026

Award Date: February 11th https://www.tomballisd.net/about-tisd/departments/finance/financial-reports https://www.tomballisd.net/about-tisd/departments/finance/financial-reports https://www.tomballisd.net/about-tisd/departments/finance/financial-reports

A. Purpose of the Financial Audit:

The purpose of the Request for Proposals is to obtain the services of a public accounting firm for the annual audit for fiscal year 2025-2026 & 2026-2027 with three additional one (1) year renewals.

The organization-wide audit will encompass the financial statements, combining statements and other schedules for the Tomball Independent School District as required by GASB Statement No.

34 and the Texas Education Agency Financial Accountability System Resource Guide for the fiscal year ending June 30, 2026. The audit is to be performed in accordance with generally accepted government auditing standards contained in the Texas Education Agency Financial Accountability System Resource Guide and requirements found in the Compliance Supplement 2 CFR Part 200 as published by the Office of Management and Budget (OMB). The Annual Comprehensive Financial Report is to be prepared for submission for the Government Finance Officers Association award.

The financial statement audit is to determine whether (1) the financial statements present fairly the financial position, results of operations, and cash flows or changes in financial positions in accordance with generally accepted accounting principles, and (2) whether the District has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements. The financial related audit will also include determining whether

(1) financial reports and related items are fairly presented, (2) financial information is presented in accordance with established or stated criteria, and (3) the school district has adhered to specific financial compliance requirements.

As part of the audit of the basic financial statements, the annual audit will include obtaining an understanding of the District's internal control structure and reporting any reportable conditions relating to the internal control systems brought to the attention of the auditors to District leadership.

To comply with Office of Management and Budget Circular A-133, a study and evaluation of internal controls will include internal accounting and administrative controls for all major federal financial assistance programs, in accordance with standards for risk assessment for major federal financial assistance.

Any material weakness noted during the study and evaluation of internal accounting and administrative controls and other kinds of non-compliance and questioned costs will be reported in accordance with the Single Audit Act.

As part of the audit of the financial statements, transactions and records pertaining to federal programs will be tested for material compliance with federal laws, rules, and regulations and all instances of noncompliance will be reported to the school district.

The audit will include the performance of certain audit procedures for the purpose of reviewing the accuracy of fiscal information provided by the District through the Public Education Information Management System (PEIMS), as required by Section 44.008(b) of the Texas Education Code. The audit will include procedures applicable to compensatory education funds as required by Module 9 of the Financial Accountability System Resource Guide, if required.

The engagement will be based on agreed upon procedures between the school district and the independent auditor and any other requirements as set by the State of Texas.

B. Other Requirements:

1. The accounting firm should provide an annual audit report in a form acceptable to the Texas

Education Agency and within the time frame stipulated in TEC 44.008(d) of 150 days subsequent to the close of the fiscal year for which the audit was made.

2. The Board of Trustees Audit Committee would expect to meet with the auditor(s) at least annually. The meeting would be to discuss the audit findings prior to audit approval.

3. The District intends to sell bonds from time to time, which may require the audited financial statements and Auditors opinion to be printed in total or as a part of the section of or addendum to the Official Statement for bond issues. Also, certification may be required for Interest and Sinking Fund reserve balances as a point in time other than year end.

4. The District will provide a draft copy of completed financial statements and supporting schedules for auditor review at the close of the fiscal year. Attachment B includes a listing of audit schedules that the District has prepared.

5. All audit data must be saved in MS Excel format and the firm must have the capability to transfer these files back and forth to the District via a secure client portal. Normal email attachment/transmission of these trial balance files cannot be utilized, due to the size of the MS Excel files and the compiled ACFR document. Secure transfer of all data is paramount.

6. The firm selected must have an understanding of the District’s accounting systems and the records needed for analysis and testing of the check registers and payroll registers. This is important because the District maintains very large data files and processes substantially all of its activities electronically.

7. It is requested that the interested accounting firm include a detailed description of each step in the audit approach that will be taken in the audit engagement including estimated hours for each.

8. The firm upon being awarded this engagement will be expected to review the detailed audit work plan and schedule with the Director of Finance and/or Chief Financial Officer prior to commencing the audit assignment each year.

9. Financial statements developed by the Auditor must be in a form that complies with the requirements for the GFOA Certificate of Achievement, the ASBO Certificate of Excellence, and the Texas Education Agency.

10. All working papers and reports must be retained, at the auditor’s expense, for a minimum of five (5) years, unless the firm is notified in writing by the District of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to auditors from the Texas Education Agency, The Government Accountability Office, or other applicable governmental agencies, they are not otherwise considered to be records open to the general public.

11. The firm, as part of the audit engagement, will assist the District with nonattest services related to the pension and OPEB-related government-wide journal entries and note disclosures and Leases (GASB 87) and SBITAs (GASB 96).

C. Independent Auditor:

The interested accounting firm must demonstrate the capability to perform the annual audit in accordance with generally accepted government auditing standards and State Board of Education auditing rules. Public accounting firms that have performed annual audits for similar entities are encouraged to file a proposal.

D. Term of the Audit Engagement:

The contract for audit services will be for the fiscal years ending June 30th, 2026 and June 30th, 2027. Tomball Independent School District may request to extend this agreement for another three years through the fiscal year ending June 30th, 2030 following satisfactory delivery of the services specified in the proposal and engagement letter.

E. Dispute Resolution:

Disputes concerning the terms of contracted services that cannot be resolved will be brought before an independent mediation center, whose decision will be binding upon both parties.

REQUEST FOR PROPOSALS CONTENT

A. Cover Letter

See Conditions for Submission (Section III)

B. Technical Component

To describe clearly the public accounting firm's understanding of the work to be done, the proposer will:

1. Provide a definition of the term "generally accepted government auditing standards" with clear distinctions between these standards and generally accepted auditing standards for nongovernmental engagements;

2. Explain the accounting firm’s approaches to performing an annual audit, including the methodology, nature, timing and extent of audit procedures to be performed;

3. Describe how the approach to performing the audit would be affected since this is a multi- year contract; and

4. Make a statement concerning the independence of the accounting firm, including direct and indirect financial interest, and the relationship of the proposed audit team to employees of the district and any of the board members.

C. Management Component

The interested accounting firm will furnish satisfactory evidence of capability to provide in a professional and timely manner the services stated in the Request for Proposals (RFP). To meet this requirement, the interested accounting firm will:

1. Provide the name of the external quality control review organization of which the accounting firm is a member, and the proposer's length of membership;

2. State whether the accounting firm has received a peer review and whether in the most recent review an unqualified report was issued. Also state the review organization's planned frequency of peer reviews;

3. State whether the accounting firm is a national, regional or local public accounting firm;

4. Provide evidence that the interested accounting firm has experience in performing school district/government audits. Provide a minimum of three (3) current and past audit clients (indicating the last year of service) along with the names and telephone numbers of contact persons and number of years audit services were provided;

5. Provide evidence that the interested accounting firm has experience in performing Texas public school district audits with fiscal years ending June 30th.

6. State whether the accounting firm is currently under the terms of a public or private reprimand by the Texas State Board of Public Accountancy and/or licensing boards of other states;

7. Describe the proposed audit team, in terms of job positions in the firm;

8. List names of staff member(s) who will direct the overall audit throughout the duration of the engagement as well as those staff members who will be responsible for planning, directing, and conducting substantial portions of the fieldwork or reporting on this audit engagement. Include the educational background of all staff members named and professional licenses held;

9. Describe continuing professional education in governmental accounting and auditing received by the proposed audit team during the last two years;

10. Provide the names and Proposals of any needed outside specialists and consultants that will assist the interested accounting firm's staff members;

11. Describe staff rotation plans for audit team members since this is to be a multi-year contract;

12. Describe the level of assistance that will be expected from District personnel.

D. Task/Activity Plan

The interested accounting firm will specify budgeted hours, timelines and sequence for audit procedures, and names of staff to be assigned.

E. Evaluation

Criteria used to evaluate the interested accounting firm’s methodologies, products, and services are shown in Attachment A.

CONDITIONS FOR SUBMISSION

All proposals in response to this request must meet the following conditions to be considered:

A. Proposals must include a cover letter clearly stating the name of the firm and, address, email and telephone number of the proposer's representative, listing or principals/officers, years in business;

B. Proposals must address each of the audit requirements as stated in this Request for Proposals (RFP);

C. Tomball Independent School District reserves the right to reject any and all

Proposals, and to negotiate portions thereof. Proposals that address only part of the requirements contained in this Request for Proposals will not be considered;

D. Tomball Independent School District reserves the right to select any proposal, considering the quoted estimated fees and other factors;

E. The accounting firm shall furnish such additional information that the District may reasonably require;

F. Tomball Independent School District will not be liable for any cost incurred in the preparation of Proposals; and

G. Tomball Independent School District may ask interested accounting firms to send a representative for an oral interview prior to Board of Trustee approval of a proposal. The District will not be liable for the costs incurred by the accounting firm in connection with such interview.

H. The District and interested accounting firms may enter into discussions and revisions of proposal, as necessary. Discussions/negotiations may be conducted with interested accounting firms who are deemed to be within the final competitive range; however, the District reserves the right to award a contract without discussions/negotiations. The best and final proposal may be required as early as twenty-four (24) hours after completion of negotiations/discussions.

I. Proposals must be signed by an authorized individual to contractually bind their firm when submitting the Proposals. Failure to sign the Proposals will be considered as a “mistake in Proposals”, and the Proposals will be rejected as “non-responsive”.

J. By submitting a proposal, the interested accounting firm affirms that its company, corporation, firm, partnership or individual has not prepared this proposal in collusion with any other bidder and that the contents of this proposal as to prices, terms, or conditions have not been communicated by the undersigned or by any employee or agent to any other person or firm engaged in this type of business prior to the official opening of this proposal.

K. Upon notification of potential selections for award, the person or entity submitting this proposal must give notice to the district if the person or an owner or operator of the business entity has been convicted of a felony. The notice must include a general description of the conduct resulting in this conviction of a felony (this requirement does not apply to a publicly held corporation).

L. In the event that any one or more of the provisions contained in this Request for

Proposals (or resulting purchase order) shall be held by a court of competent jurisdiction to be invalid, illegal or unenforceable, such provisions shall not affect any other provision hereof, and this Request for Proposals (or any resulting purchase order) shall be construed as if the invalid, illegal or unenforceable provision(s) had never been contained herein.

PROCEDURES FOR SUBMITTING PROPOSALS

A. DELIVERY

Responses to the Request for Proposals should be addressed to:

Zack Boles, CFO

310 South Cherry Street Tomball, Texas 77375

Proposals must be submitted via Bonfire on TISD website no later than 4:00 PM on January 7th, 2026. Oral or telegraphic Proposals transmitted via the District’s facsimile machine are not acceptable. Proposals must be submitted via Bonfire link on TISD website.

DO NOT FAX OR EMAIL YOUR PROPOSALS!

B. ASSISTANCE TO PROPOSERS

All questions must be submitted electronically via Bonfire link by 4:00 PM on Tuesday, December 9th, 2025. Responses to questions asked will be on Bonfire by December 16th, 2025 at:

https://tomballisd.bonfirehub.com/portal/?tab=openOpportunities

C. STATEMENT OF REQUIREMENTS

1. The independent auditor will provide one (1) camera ready copy of the final Annual Comprehensive Financial Report that meets the requirements of Texas Education Agency Financial Accountability System Resource Guide, the requirements for the GFOA Certificate of Achievement, and the ASBO Certificate of Excellence and a copy in .pdf format, and separately issued Single Audit Report including the Schedule of Expenditures of Federal Awards, SF-SAC Data Collection Form and assist in the review of the Annual Comprehensive Financial Report;

2. A preliminary draft of the audit report(s) will be presented to the District prior to submission of the final draft. Timing of the submission must allow District personnel sufficient time to review the report.

3. Satisfactory delivery of the services specified by the Request for Proposals and the engagement letter shall be accomplished no later than the January meeting of the Board of Trustees for the financial audit.

4. The independent auditor will be required to present the audit report to the Board of

Trustees each year at the November meeting of the Board of Trustees.

5. The independent auditor is required to provide a management letter containing comments oriented toward constructive improvements. Copies of selected audit working papers will be provided as requested by the District and as provided for in the engagement letter. If a management letter is issued, the auditor will provide the District ten (10) copies.

6. The auditor will prepare and provide one (1) copy of the Data Collection Form for

Reporting on Audits of States, Local Governments and Nonprofit Organizations.

https://tomballisd.bonfirehub.com/portal/?tab=openOpportunities https://www.nbisd.org/page/bus.bids https://www.nbisd.org/page/bus.bids https://www.nbisd.org/page/bus.bids

D. PROPOSED SCHEDULE

Proposals Timing:

January 7, 2026 Proposals due to the District at 4:00 pm via EUNA/Bonfire February 10, 2026 Approval of firm by Board of Trustees

Audit Timing (subject to change):

April/May 2026 Interim field work August 2026 Final field work October 2026 Draft financials statements and management letter due to the

Director of Finance for review November 2026 Presentation of the issued financial statements to the Audit

Committee and to the Board of Trustees.

E. BOARD OF TRUSTEE APPROVAL

The Board of Trustees expects to engage an audit firm for 5 years. However, the Board of Trustees expressly reserves the right to reject all bids and to review the relationship on an annual basis and to formally approve each year’s extension. Tomball Independent School District reserves the right to cancel any contract resulting from this Request for Proposals at any time, for any reason (or for no reason) with a thirty (30) day written notice to the firm.

The firm may cancel any resulting contract, at any time for any reason, or for no reason with a sixty

(60) day written notice. Any notice required or permitted to be delivered to the firm shall be deemed to be delivered when mailed by registered or certified mail, return receipt requested, postage prepaid, and addressed to the bidder’s address appearing on the face of the Request for Proposals (or as subsequently revised or changed).

Any compensation due the firm will be limited to items received and/or services performed and accepted by the District. It is possible that the Board could terminate the relationship at any time.

However, the Board of Trustees does not desire or expect that to be the case and assumes that a long and satisfactory relationship will be the experience.

F. OTHER INFORMATION

Auditors will be allowed to work on site after 5:00 p.m. and on weekends if necessary and desirable.

However, it cannot be guaranteed that Staff will be available to answer questions at those times.

Arrangements should be made in advance if these after-hours periods are necessary.

ATTACHAMENT A - EVALUATION WORKSHEET

This worksheet is to be used to document the District’s evaluation of the interested accounting firms’ Proposals Points within the ranges specified are to be assigned to the below-listed criteria as a means for quantifying the relative strengths and weaknesses of the various proposals.

In the event that oral interviews are necessary to break a tie or for making final clarification in the evaluation process, additional points may be awarded. It should be understood that while the total score is a significant factor, the District reserves the right to consider other factors in making a final selection.

A. PROFESSIONAL PROPOSALS

The evaluation of professional Proposals of the proposers will be based on the following criteria:

I. Mandatory Criteria:

Proposals will not be considered for further evaluation unless there is compliance with all of the following criteria. The interested accounting firm:

a. Must be an independent auditor properly licensed for public practice.

b. Must meet the independence standards of Government Auditing Standards, 2011

Revision United States General Accounting Office (GAO).

c. Must not have a record of sub-standard work.

d. Must submit a proposal meeting all of the requirements of the Request for

Proposals.

e. Must be able to comply with all Section I. B. Audit Requirements #1 through 10.

f. Must agree to Section D. Audit Timing Schedule.

II. Technical Criteria

Understanding the Audit Requirements Section Maximum: 15 points Does the proposal (both in the statement of the audit requirements and elsewhere) demonstrate that the proposer has an understanding of the audit's objective(s), Tomball ISD's needs, and the final products to be delivered? (maximum 10 pts.)

Does the proposal show the proposer's intention to start the audit when required and complete the audit as indicated in Section VII? (maximum 5 pts.)

Soundness of Technical Approach Section Maximum: 10 points

Does the proposal contain a sound technical plan and a realistic estimate of time required to complete the audit? (maximum 2 pts.)

Does the technical plan in the proposal show a practical approach to meeting benchmarks and specific deadlines? (maximum 3 pts.)

Does the proposal indicate that the proposer will use (1) a systematic approach to examining systems and internal controls and (2) effective procedures, including consideration of risk and materiality, to determine the extent of audit testing and review necessary? (maximum 5 pts.)

Proposals of the Audit Organization Section Maximum: 22 points

Do prior clients have a positive opinion of the proposer’s firm? (maximum 10 pts.)

Has the audit organization passed its latest peer review? (maximum 2 pts.)

Does the audit organization have experience in performing the required work for school districts of Tomball ISD’s size? (maximum 10 pts.)

Note: Evaluators reserve the right to review supporting documentation for any experience claimed by the audit organization or its key personnel.

Proposals of the Audit Team Section Maximum: 28 points

Does the proposal clearly show the collective experience of the team to be assigned to the audit? (maximum 5 pts.)

Does the proposal indicate that key personnel have continuing professional education and experience in the type of work that the audit entails? (maximum 8 pts.)

Does the proposal indicate the extent to which Tomball ISD's personnel would be expected to contribute to the work effort? (maximum 10 pts.)

Does the proposal specify that Tomball ISD will be notified in writing of changes in key personnel? (maximum 3 pts.)

Does the proposal provide an approach for planning and conducting the work efforts of the subsequent year(s) of this multi-year contract? (maximum 2 pts.)

TOTAL POINTS for Technical Criteria (0 to 75 points)

III. Professional Fees and Additional Services

Professional Fees Section Maximum: 15 points Professional Fees for the Audit (maximum 15 points) Non-Attest Services Section Maximum: 10 points Is the firm able to provide Non-Attest Services? (maximum 10 pts)

• Lease maintenance and reporting in accordance with GASB 87

• SBITA maintenance and reporting in accordance with GASB 96

• Pension and OPEB Calculation

TOTAL POINTS for Professional Fees and Additional Services (0 to 25 points)

IV. Oral Interviews (If Necessary)

Interview Points Awarded (0 to 15 points)

*The District reserves the right to reject any or all proposals for any reason, and may re-issue the RFP.*

ATTACHMENT B – DISTRICT AUDIT INFORMATION

Trial Balance

1) Original and Final Amended Budget

2) Trial Balances

Single Audit

1) Schedule of Expenditures of Federal Awards as of the audit date (final adjusted amounts)-K-1

Cash

1) June & July bank statements for all bank accounts

2) June reconciliations for all bank accounts

Investments

1) Schedule of investments by fund, including: the type of investment, date of purchase, maturity date, interest rate, accrued interest (if any), and market value.

2) An accrued interest reconciliation showing all of the securities with accrued interest (if any)

3) Copies of all safekeeping receipts

4) If needed, a reconciliation of investments to the General Ledger

Due To/From

1) A detailed schedule of all due to/due froms (all due to/due froms should balance with each other, including special revenue funds)

Other Assets

1) Perpetual inventory listings as of the audit date and, if needed, any reconciliation of that listing to the general ledger

Capital Assets

1) Capital Asset/Accumulated Depreciation roll-forward by asset type

2) A reconciliation of capital asset additions to capital outlay in general ledger, if applicable

3) A detail of assets acquired with special revenue sources

Accounts Payable

1) Check runs detailing all checks written after the audit date and sorted by fund

2) List of outstanding retainages at year-end, if any

Accruals

1) Report used for calculation of accrued wages

2) An actuarial report for all self-insurances

3) Detail listing of any other accruals as of the audit date, with amounts broken down as either short or long-term

Long-Term Debt

1) Bond schedules

2) Detail listing of year-end interest expense by fund, and then by bond issue within each fund

3) Calculation of refunding gain/loss on any new issuances and amortization tables

4) Calculations of premiums, discounts, and amortization

5) Accretion schedules (BOSC)

6) Computation of accrued interest payable on long-term debt (for the government-wide statement of net assets)

Revenue/Receivables

1) Tax office monthly report

2) Detailed schedule of all amounts in the "Adjustments" on the Tax Collector Monthly Report

(with supporting documentation)

3) Delinquent tax receivables report by year

4) Property tax schedules (for Statistical Section of CAFR)

5) Delinquent property tax collections

Miscellaneous

1) Detail general ledger for fiscal year

2) Listing of all employees with more than $5,000 in overtime pay

3) A copy of the Actuarial Valuation Report for the worker's compensation program

Investments

1) Copy of the Tomball ISD Annual Investment Report and quarterly reports

2) A completed "Public Funds Investment Act Compliance Checklist"

3) Copy of updated investment policy, if changes were made during the fiscal year

Capital Assets

1) For GASB 34, a computation of depreciation expense by function for the year (by major asset class) for government-wide statement of activities

Payroll

1) Calculation of compensated absences, classified as either short or long-term

2) A listing of all employees who are age 55 or older who also have 10+ years of service with TISD and their sick leave balances

Long-Term Debt

1) Report on arbitrage from party hired to evaluate arbitrage

2) Official statements for new issuances

Revenue/Receivables

1) "Combined Statement of Revenues, Expenditures, & Changes in Fund Balance" (comparison of budget to actual for each fund)

2) For GASB 34, revenue allocations to functions

Leases and SBITAS

1) Copies of Lessee and Lessor contracts.

2) Listing of software programs obtained in the year audited

Miscellaneous

1) Confirmations

2) ASBO and GFOA comments

3) List of principal officials

4) Organization chart

5) CAFR covers and dividers

6) Letter of Transmittal, MD&A

7) Statistical section

ATTACHMENT C – ORGANIZATIONAL CHART