9-1. Scope of Work.pdf

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Scope of Work for Independent Financial Audit Services

Table of Contents

1. Overview and Vendor Requirements Independence Firm Qualifications and Experience Prior Engagements with Boulder County and Other Government Entities

2. Details of services required Revisions to 2 CFR Part 200 Audit Approach, Methodology, and Communications Single Audit, SEFA PERA Census Audit

3. Additional Audit-Related Services Required Data security for file exchanges Vendor as a resource

4. Deliverables Report Preparation and Responsibility Use of Financial Statements in future Bond Offerings, and on Boulder County’s website

5. Pricing and Payment Details Rates for Additional Professional Services

6. Time Requirements

7. Description of the Government

Contacts Background Electronic Systems and Data Storage Records

8. Fund Structure Budgetary Basis of Accounting Federal and State Awards Pension Plans Component Units Magnitude of Finance Operations Internal Audit Function Availability of Prior Audit Reports and Working Papers

9. Information provided by the county to the Auditor / Report Preparation Clerical Assistance, Data Processing Assistance, Remote Work

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Appendix A. Proposal-Specific Additional Information Appendix B. County structure

Appendix C. Schedule of Fees and Expenses ……………………………………………………………………………………………….18

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1. Overview and Vendor Requirements

Bouder County Office of Financial Management (OFM) seeks a qualified independent Certified Public Accounting firm to provide annual financial audit services for Boulder County for a contract term of January 1, 2027 through December 31, 2031: five (5) years.

The scope includes audit of the county’s financial statements for each individual fiscal year from 2026 through 2030, as required by Colorado State law and federal regulations.

The vendor will also audit Boulder County Public Health as a component unit, and perform additional procedures such as the PERA census audit.

Note on the Boulder County Housing Authority: a blended component unit, is audited separately and conducts its own auditor selection process. It is excluded from this scope of work.

Independence

The vendor must be independent of Boulder County, its agencies, and its component units as defined by Government Auditing (Yellow Book) standards. Vendor must disclose conflicts of interest that could impair the firm in the performance of its duties, and indicate if it is not fully independent from Boulder County as follows:

- List and describe the vendor’s or proposed subcontractors’ professional relationship(s) involving Boulder County as a primary government, and/or any of its component agencies or units, for the past five (5) years.

- The vendor must provide a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit.

Additionally, all assigned key professional staff must be properly licensed to practice in Colorado.

Note: The proposal must contain a clear affirmative statement confirming the above.

Firm Qualifications and Experience

The vendor must state the size of the firm, the size of the firm's governmental audit practice, the location of the office from which the work on this engagement is to be performed and the number and nature of the professional staff to be employed in this engagement on both full-time, and part-time basis.

If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium must be separately identified, and the firm that is to serve as the principal auditor must be noted, if applicable.

The firm must also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three (3) years. In addition, the firm must provide information on the circumstances and

Page 4/18 status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations.

The Auditors are expected to share the ongoing structure of any teams assigned to work with Boulder County, provide a description of each team’s specialized audit areas and coverage, and communicate any expected changes in staffing or areas.

The proposal must identify the principal supervisory and management staff, including engagement partners, managers, and other supervisors and specialists who will be assigned to the engagement.

The proposal must also specifically list the qualifications of Engagement Partners, Manager(s), and Senior Auditor(s) assigned to the Boulder County account.

Teams assigned to Boulder County work will ideally include the following main contacts:

- A principal client relationship manager

- A principal manager for Public Health Department audit

- A general audit manager/coordinator

- Supervising associates and senior staff assigned to the Boulder County Single audit

- A principal IT specialist and/or technical manager

The vendor must provide evidence of a successful external peer review and demonstrate experience with governmental organizations through prior government engagements, and share their most recent peer review and related information as part of their proposal. The vendor will assign a team of professionals with substantial experience in governmental auditing, single audits, and public sector accounting to Boulder County, and ensure all team members remain certified and engaged in ongoing professional training.

The proposal should contain information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit.

The vendor must demonstrate their commitment to staff retention and continuity on the Boulder County account throughout the engagement, to the extent possible; promptly communicate any changes in key personnel; and provide replacements with equal or greater qualifications if turnover does occur.

Prior Engagements with Boulder County and Other Government Entities

The proposal must list separately: all engagements with Boulder County, and similar engagements with other government entities having occurred or with within the last three years.

Provide a summary of key information such as total hours, type of engagement (i.e., audit, management advisory services, other), and client reference contact information (name and phone number).

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2. Details of services required

Note: Boulder County requests the Vendor Proposal structure match the structure of this Scope of Work document to aid in the efficiency of the evaluation process.

The independent audit of Boulder County’s financial statements will be completed in accordance with Generally Accepted Auditing Standards (GAAS), the General Accounting Office's (GAO) Government Auditing Standards, the provisions of the Federal Single Audit Act as amended, and U.S. Office of Management and Budget (OMB) Uniform Guidance: Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

The vendor will:

• Express an opinion on the fair presentation of the county’s basic financial statements, including governmental activities, business-type activities, aggregate discretely presented component units, each major fund, and aggregate remaining fund information.

• Work to form a strong relationship with the county involving ready exchange of information to effectively pinpoint existing or potential issues, and provide ongoing consultation for issue resolution and prevention (see “Vendor as a resource” in Section 3).

• Issue required reports, communications and recommendations about any significant deficiencies, material weaknesses, and potential operational improvements.

• Evaluate internal controls in the areas of financial reporting, compliance, procurement, grant administration, and subrecipient monitoring.

• Assist as needed with the preparation of financial statements, footnotes, and required supplemental schedules for Boulder County Public Health.

• Assist as needed with the preparation of pension and Other Post-Employment Benefit (OPEB) computations and footnotes for the county.

• Review and provide analysis of the Local Highway Finance Report (FHWA-536).

o The county may request an agreed-upon procedure for this review.

• Review, but do not express an opinion on, specific other portions of the Annual Comprehensive Financial Report (ACFR).

• Provide an “in relation to” report on Combining and Individual Fund Statements and supporting schedules.

• Submit required reporting to the Federal Audit Clearinghouse.

o The Auditors will reformat any templates or reports as required for these submissions.

Revisions to 2 CFR Part 200

The selected vendor must demonstrate proven expertise in the October 2026 revisions to 2 CFR Part 200, and apply the 2026 OMB Compliance Supplement in all audit planning and execution:

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• The vendor will demonstrate how it will transition from pre-2026 rules to the revised Oct 2026 2 CFR 200 and OMB Compliance supplement framework through updated audit programs and staff training.

• The vendor must commit to proactive communication of regulatory changes, interim findings, and emerging compliance risks.

• The vendor must also describe its internal quality control processes to ensure audit reliability, and deliver all required reports, management letters, and presentations to the governing board within agreed timelines.

Audit Approach, Methodology, and Communications

The vendor will employ a risk-based audit approach tailored to Boulder County’s operations, systems, and internal controls.

The vendor is expected to:

• Conduct regular planning meetings with county management to establish and maintain timelines, responsibilities, and communication protocols.

o This will include pre- and post-audit debriefs and presentations to the Board of County Commissioners, on a schedule agreed upon with OFM.

• Gain an understanding of the county’s operations, internal control structure, and IT systems including our current financial system (Oracle ERP) and payroll/timekeeping systems (UKG Dimensions).

• Perform tests of controls and substantive procedures to detect anomalies and enhance compliance testing, using analytical procedures and data analytics.

• Use statistical and non-statistical sampling methods as appropriate.

• Review and test compliance with applicable laws, regulations, contracts, and grant agreements.

• Proactively communicate regarding new accounting standards, regulatory changes, and emerging issues.

The proposal must include an outline of the vendor’s methodology for the general audit process, including the identification of high-risk programs under the new OMB October 2026 rules.

Methodology detail must include:

1) Proposed segmentation of the audit engagement.

2) Level of staff and number of hours to be assigned to each proposed segment.

3) Sampling methodology and the extent to which statistical sampling is to be used in the engagement.

4) Extent of use of data processing software, including a disclosure regarding the planned or current use of any Artificial Intelligence tools in work performed for Boulder County.

5) Type and extent of analytical procedures to be used in the engagement.

6) Approach to be taken to gain and document an understanding of Boulder County's internal control structure.

7) Approach to be taken in determining laws and regulations that will be subject to audit test work.

8) Approach to be taken in drawing audit samples for purposes of tests of compliance.

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9) Approach taken to identify, describe and resolve any anticipated or potential audit issues, including any special assistance requested from Boulder County in this identification and resolution process.

Single Audit, SEFA

The vendor will perform a Single Audit of federal awards in accordance with Uniform Guidance / 2 CFR Part 200, including:

• Identification and risk assessment of major federal programs.

• Review of, and providing guidance on draft SEFA submissions.

• Substantive testing of expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA).

• Testing of compliance for each major federal program, internal control over compliance, and preparation of

Schedule of Findings and Questioned Costs.

• Review of internal controls over compliance and regulations.

• Verifying accuracy, completeness, reconciliation to the general ledger, proper identification of clusters, and consistent treatment of indirect costs.

The vendor must demonstrate proven expertise in the October 2026 revisions to 2 CFR Part 200 and apply the 2026 OMB Compliance Supplement in all audit planning and execution.

The vendor will offer recommendations for improvement prior to final submission.

PERA Census Audit

As required by the Colorado Public Employees’ Retirement Association (PERA), the vendor will conduct annual census data audits, including testing of payroll and demographic information. The vendor will notify OFM when the PERA audit is required for any specific year.

3. Additional Audit-Related Services Required

Data security for file exchanges

The vendor will provide a non-generic, secure portal featuring end-to-end encryption and secure user authentication for all file exchanges. Ideally this portal will allow both uploading for the current year being audited.

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Vendor as a resource

The vendor is expected to provide staff training, consultation, workshops, debriefs, and technical assistance to county staff on upcoming GASB standards, SEFA preparation, ACFR disclosures, and compliance requirements as follows:

• Provide consultation throughout the year on accounting, compliance matters, and the impacts of upcoming changes in regulations or accounting standards.

• Address questions related to federal funding streams, and test compliance with their requirements.

• Maintain open communication with county staff, which includes holding regular progress meetings and providing timely status updates on audit progress, issues, and findings.

• Following a calendar agreed upon with OFM: hold entrance, status, and exit conferences with county management and officials.

• Collaborate with county staff to minimize disruption and ensure timely completion of all deliverables.

• Work with county staff to address findings from prior audits and support improvements in cash reconciliation, accounts receivable, fiduciary activity reporting, and financial reporting timelines.

• Retain working papers for a minimum of three years and make them available to the county, federal and state agencies, and successor auditors as required.

• Respond to reasonable inquiries from successor auditors and allow review of working papers relating to matters of continuing accounting significance.

4. Deliverables

Deliverables include but are not limited to:

• Independent Auditor’s Report on the county’s financial statements.

• Report on internal control over financial reporting and compliance.

• Report on compliance for each major federal program and internal control over compliance.

• Management letter with findings and recommendations.

• Written communication to those charged with governance.

• “In relation to” reports on combining and individual fund statements and SEFA.

• Separate audited financial statements for Boulder County Public Health, as required.

• Required reporting to the Federal Audit Clearinghouse.

Report Preparation and Responsibility

Unless another arrangement is agreed upon by both parties:

• ACFR preparation, editing and publication in electronic or print formats shall be the responsibility of the county.

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• Filings with the Government Finance Officers Association remain with Boulder County.

• The Auditor will be responsible for preparation and publication of the Single Audit report; for any auditors’ communications; and for preparation of Boulder County Public Health’s separate reports.

• The Auditor will be responsible for all required filings destined for the Federal Audit Clearinghouse.

Note: The proposal must include sample formats for required reports.

Use of Financial Statements in future Bond Offerings, and on Boulder County’s website

The proposal must include an affirmative statement that Boulder County has the right to use its Financial Statements, including the auditor’s opinion letter, in any subsequent year bond offerings and on the Boulder County website, without the need to update them.

5. Pricing and Payment Details

The vendor’s fee schedule for Boulder County will be detailed by year over the full five (5)-year contract period. Fees for all years must be provided both including, and excluding the optional PERA Census audit.

Line items for each year’s fees should list separately, and include at minimum:

- Boulder County Financial statements audit

- Boulder County Public Health financial statements audit

- Countywide Single audit

- PERA Census audit

The dollar cost should contain all pricing information relative to performing the audit engagement as described in this request for proposal (RFP) The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

The vendor must include a schedule of professional fees and expenses, presented in the format provided in Appendix C, to support the total all-inclusive maximum price. The cost of any special services should be disclosed as separate components of the total all-inclusive maximum price.

Any expansion of the scope requiring additional fees must be approved in advance and in writing by Boulder County’s Chief Financial Officer before work begins. Shifting deadlines within reason and auditing/accounting research done by the auditor will be considered a customary part of the audit and should be included in the all-inclusive maximum price.

Rates for Additional Professional Services

If it becomes necessary for Boulder County to request the auditors render any additional services to either 1) supplement the services requested in this RFP, or 2) to perform additional work as a result of the specific

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Any such additional work agreed to between Boulder County and the firm will be performed at the same rates set forth in the schedule of fees and expenses included in the cost section of the Proposal.

6. Time Requirements

Boulder County’s internal audit preparations for a fiscal year begin as early as November of that fiscal year, with the main bulk of the work starting in January.

Starting in 2027, Boulder County will utilze an online Software-as-a-Service platform for creation and publication of the ACFR. Audit teams will be provided platform access for review. The review will follow an agreed-upon schedule with milestones; currently, the county is aiming to finalize financial data by mid-April 2027.

The vendor will provide a proposed audit timeline including key milestones for the following separate items:

• Boulder County financial statement audit

• Boulder County Public Health financial statement audit

• Boulder County single audit

Boulder County reviews will be completed promptly. During an agreed-upon review period, the auditor will remain available for any review discussion. Once all issues are resolved, the final signed report shall be delivered to the Chief Financial Officer within ten working days.

Audit tasks must be completed with sufficient lead time to enable the county to meet the GFOA Certification deadline of June 30th.

7. Description of the Government

Contacts

The auditor's principal contacts with Boulder County will be among the senior management at OFM. Additional representative(s) may also be designated to coordinate any assistance provided by Boulder County to the auditor.

Boulder County will designate the auditor’s principal contact with Boulder County Public Health.

Organizational charts are provided in Appendix B.

- B.1: County organizational chart

- B.2: OFM structure

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- B.3: Public Health Department structure

Background

Boulder County serves an area of 750 square miles. The Colorado State Demography Office estimated its population as 330,000 in 2024. Boulder County's fiscal year begins on January 1 and ends on December 31.

Boulder County provides the full range of services contemplated by State Statute; general government functions, public protection and safety, health, social services, parks and open space, public improvements, road and bridge operations, planning and zoning.

Boulder County has received the GFOA Certification of Achievement for Excellence in Financial Reporting since 1990. It intends to continue submitting future Annual Comprehensive Financial Reports for certification each year.

The accounting and financial reporting functions of Boulder County are decentralized. The county incorporates the Boulder County Housing Authority’s audited financial statements into the county’s financial statements:

the Housing Authority is a blended component unit that issues stand-alone audited statements under a separate contract.

Electronic Systems and Data Storage

The county has been using Oracle ERP as its primary accounting software system since 2019. Oracle modules in use at Boulder County include: general ledger, accounts payable, PCard expenses reporting, accounts receivable, fixed assets, contracts, purchasing, projects, and awards. Security roles in the system are controlled by the Oracle Program Office, under the direction of OFM.

The county uses UKG Dimensions for timekeeping and payroll records. Payroll information is uploaded to Oracle through a journal entry each month.

Boulder County’s Information Technology Department (ITD) operates and directly maintains several systems critical to Boulder County’s IT infrastructure internally, provides support for externally-operated or hosted critical systems, and ensures the smooth operation of countywide cloud-based services. Boulder County runs a large portion of its core applications and data services in the Microsoft Government Community Cloud (GCC Low) ecosystem.

Records

The majority of accounting records for all county departments, offices and grants, excluding Housing and Human Services and Public Health, are contained within Oracle ERP or cloud-stored. Additional records may be available through the Office of Financial Management located at 2020 13th Street, 1st floor, Boulder CO, 80302.

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Records include, but are not limited to: invoices, contracts, purchase orders, computerized disbursement and receipt journals, journal entries, inventory records, bids and bid award documents, budgets, resolutions, audits, and cost allocation plans.

Accounting records for the following can be accessed electronically, minimizing any need to travel to these sites.

• Grant records located in OFM include the following: grant applications, grant awards and modifications, contracts, expenditure authorizations, fiscal reports submitted to grantor, and grant budgets.

• Grant Program records are kept in the various offices of the departments who administer them.

o Program records include the following: participant records and reports, client records, internal program correspondence and program reports to grantor agencies.

• The accounting records for Work Force Boulder County (WFBC) are maintained through its offices at 3482

Broadway, Boulder CO.

• The accounting records for Housing and Human Services are maintained at 2525 13th Street, Boulder, CO.

• The accounting records for the Public Health Department are maintained at at 3450 Broadway, Boulder, CO.

More detailed information on the government and its finances can be found in:

Boulder County Annual Comprehensive Financial Report page

Boulder County Budget page

8. Fund Structure

Boulder County uses the following fund types, account groups and general structure in its financial reporting.

Fund Type Number of Funds

General Fund 1 Special Revenue Funds 12 Capital and Debt Service Funds 5 Internal Service Funds 3 Enterprise Funds 1 Public Improvement District Funds 4 Discrete Component Units 7

Budgetary Basis of Accounting

Boulder County’s financial information is organized by funds, with each fund being considered a separate accounting unit. Resources are allocated to and accounted for in each fund based upon spending purposes. All https://www.bouldercounty.org/government/budget-and-finance/financial-reports/certified-annual-financial-report/ https://www.bouldercounty.org/government/budget-and-finance/county-budget/

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Governmental Funds use the modified accrual basis for budgeting, apart from the calculation of present value of minimum lease payments.

The full accrual basis is used for Proprietary Funds with the following exceptions: compensated absences, depreciation, and amortization.

Federal and State Awards

A review of all Federal and State Financial Assistance received is possible by obtaining the Annual Comprehensive Financial Report and Single Audit Reports available through the county’s Financial Reporting and Data site.

Pension Plans

Boulder County participates in the Colorado Public Employees’ Retirement Association (PERA).

Component Units

Boulder County is defined, for financial reporting purposes, in conformity with the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards, Section 2100.

Using these criteria, component units are included in Boulder County's financial statements.

The management of Boulder County identified the following component units for inclusion in Boulder County's financial statements:

Boulder County Public Health

This is a quasi-municipal organization organized by authority of state statute and resolution of the county Commissioners.

Boulder County Public Health is to be audited as part of the audit of Boulder County's financial statements.

Presentation: Discrete

Boulder County Housing Authority Established in 1975 to promote and provide quality, affordable housing for lower-income families, the elderly, and disabled people. Previous to 2003, the Housing Authority was a governmental entity independent of the county, governed by a seven-member board which now serves in an advisory capacity. Effective January 1, 2003, the Housing Authority became a component unit of the county and is governed solely by a board comprised of the county’s elected board of county commissioners. The Authority meets the definition of and operates as an enterprise fund of the county.

https://bouldercounty.gov/government/budget-and-finance/financial-reports/

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Note: The Housing Authority and its component units are audited under a separate contract and are excluded from this RFP.

Presentation: Blended

Discretely-Presented Component Units (DPCUs) The following Boulder County component units share the following characteristics:

• Housing development managed by the Boulder County Housing Authority.

• Each entity issues separately audited stand-alone financial statements.

• Each LLC meets the definition of a discrete component unit for the Housing Authority, and is therefore presented discretely in the county’s financial statements.

1. Aspinwall LLC

2. Kestrel I, LLC

3. Tungsten Village, LLC

4. Coffman Place, LLC

5. Willoughby Corner Seniors, LLLP

6. Willoughby Corner Multifamily, LLLP

Magnitude of Finance Operations

The Office of Financial Management (OFM) is a department under the Commissioner’s Office. As of July 2026, OFM consists of 32 Full-Time Equivalent employees. See the OFM organization chart in Appendix B.

Internal Audit Function

Boulder County has no formal internal audit function.

Availability of Prior Audit Reports and Working Papers

Interested proposers who wish to review prior years’ audit reports can find them on Boulder County’s Financial Reporting and Data site.

• Interested vendors who wish to review prior years' management letters and communications can request them in the Boulder County Procurement portal, before the Question Due Date (September 3, 2026, 2pm

MDT).

• Prior year working papers will be made available by Boulder County, upon request, to the awarded vendor.

Working papers are not available to vendors.

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9. Information provided by the county to the Auditor / Report Preparation

Clerical Assistance, Data Processing Assistance, Remote Work

OFM staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation and explanations.

The preparation of confirmations and other deliverables will be the responsibility of OFM.

The county stores backup documentation for most transactions electronically and will give the auditor read-only access to the financial system, allowing the auditor to directly access transaction detail and supporting documentation.

Personnel will be available to provide electronic data processing assistance, systems documentation and explanations as needed throughout the audit.

Auditors will be expected to work remotely the majority of the time. Boulder County will honor requests for onsite meetings / visits based on a predetermined calendar agreed upon by both parties prior to the audit start date. Onsite workspace will be provided to auditors if requested in advance.

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Appendix A – Proposal-Specific Additional Information

• Copies of the County’s latest Annual Comprehensive Financial Report, Single Audit Reports, and component unit financial statements are available on Boulder County’s public website at:

Financial Reporting and Data

• A copy of the most recent Management Letter will be made available with the requests in the Boulder County Procurement portal, before the Question Due Date (September 3, 2026, 2pm MDT).

• The RFP process may include an optional oral presentation component. This component will be determined based on the number and overall quality of proposals received. Should the County proceed with this component, the top-scoring vendors will be notified.

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Appendix B – County structure

Note: Names have been removed from all Organization Charts for confidentiality purposes.

Related Documents:

• B1. County Org Chart_2026.pdf

• B2. OFM Org chart_positions only.pdf

• B3. Agency BCPH Org Chart July 2026_letter.pdf

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Appendix C – Schedule of Fees and Expenses

Related document:

• C. Schedule of Fees and Expenses.xlsx

To be filled out and returned by proposers as part of the proposal.