ESBD_485034_1771601501811_240h TTSTC CPA Svcs (Official Resp to Questions vFinal).docx

Request for Proposals for Professional Certified Public Accounting Services For the Texas Treasury Safekeeping Trust Company RFP No. 240h CPA’s Official Responses to Questions from Potential Respondents February 20, 2026

1. What IT systems does the Trust Company use?

RESPONSE: Trust Company uses multiple IT systems, including Microsoft Office, Bloomberg, MIP, SimCorp Dimension, Clearwater Analytics (CWAN), Backstop CRM, CAPPS, USAS, My State Street, FedWire/PayPlus.

2. Do you have any new system implementations planned over the next 5 years?

RESPONSE: Yes, implementation of a data warehouse solution.

3. Have you had any recent system implementations?

RESPONSE: Yes. Trust Company is implementing Clearwater for our investment accounting system and Backstop as our records management system.

4. What were the audit fees paid for the 2024 and 2025 audits?

RESPONSE: 2024: $242,241; 2025: $253,637. See table below for further breakdown.

5. Is the incumbent allowed to bid?

RESPONSE: Yes.

6. Please provide a listing of all audit adjustments (posted and waived) for the 2025 audits.

RESPONSE: None.

7. Please provide a copy of the Report to Management listing any material weaknesses, significant deficiencies, or deficiencies if you received one over the last 2 years.

RESPONSE: No deficiencies noted. Prior year reports and management letters are available by visiting Trust Company’s website at: Texas Treasury Safekeeping Trust Company Reports and Policies (https://www.ttstc.org/reports/).

8. Have you had any turnover in the Finance department over the last year? Do you expect any turnover in the next 5 years?

RESPONSE: Yes, the Finance department has experienced some routine turnover over the last year. Trust Company anticipates further routine turnover through retirements and attrition.

9. What financially significant service providers exist? Are SOC reports received?

RESPONSE: State Street, CWAN, and Federated Hermes. SOC reports are periodically received from these service providers.

10. Did the previous auditor use any subcontractors?

RESPONSE: No.

11. What percentage of HUB/subcontractor participation was achieved by the previous auditors for 2025, with the understanding that the past HUB participation differs from the current VetHUB?

RESPONSE: See Response to Question 10.

12. If you require the use of VetHUB subcontractors, what percentage of the contract do you expect?

RESPONSE: Reference Section 4.2.13 (Veteran Heroes United in Business Subcontracting Plan).

13. In Part II, 2.2 Contract Term; Sample Contract, says “Each Respondent must review these terms and conditions in Exhibit A and otherwise in this RFP and address any concerns or issues in its transmittal letter”. If there are any exceptions to the sample contract, is it acceptable to provide an appendix with either a red-line of the contract with the exceptions or a table of exceptions, and refer to the appendix in the transmittal letter?

RESPONSE: Reference Section 4.2.1 (Transmittal Letter), last paragraph and Exhibit B (Execution of Proposal) part 36. Respondent exceptions, if any, must specifically and clearly identify the term or condition, explain the requested change, and offer alternative language in Respondent’s Proposal. Either approach provided in the question may be acceptable if meeting the RFP requirements.

14. General: Would the Comptroller please identify if the incumbent is permitted to bid on this scope of work?

RESPONSE: See Response to Question 5.

15. General: Has the Comptroller identified an estimated level of effort for the audits within the scope of work? If so, would the Comptroller please provide the estimated level of effort for each audit? If not, has the Comptroller identified a relative level of effort for each audit in terms of expected size/scope?

RESPONSE: Reference Sections 1.2 (Background), 2.1 (General), and 4.2.8 (Respondent Narrative), and Exhibit A, Section III (Services) for the minimum required services. Audits in scope are complex. It is Respondent’s responsibility to determine level of effort required for audits based on RFP requirements and Respondent’s ability to meet or exceed the requirements. Audit period runs from September through December for the Trust Company, TexPool, TexPool Prime and SWIFT audits, and from January through March for the Tobacco Fund audit. TTSTC makes its internal resources available during this period.

16. General: Would the Comptroller disclose the contracted fee for the June 30, 2025 with respect to the financial statement audits and compliance attestation services provided by the incumbent to the 1) Trust Company; 2) Tobacco Settlement Permanent Trust Account; 3) TexPool; 4) TexPool Prime; and 5) State Water Implementation Fund for Texas (SWIFT)?

RESPONSE: See Response to Question 4.

17. General: Would the Comptroller please clarify whether the engagement may be performed in a hybrid manner (i.e., on-site visits, scheduled as needed for the engagement, and the remainder performed virtually)? This clarification will assist us in providing a more accurate proposal of our Proposed Fee (p.15 & 41).

RESPONSE: Yes, the engagement can be performed in a hybrid manner.

18. Exhibit G (p. 55): Would Comptroller please confirm if completing the (a) certified cybersecurity training developed by the Texas Department of Information Resources and (b) Texas By Texas Self reporting Form, would satisfy the cybersecurity training requirement in the solicitation? Or would Comptroller please confirm this training is to be done after contract award, but prior to initiating of professional services?

RESPONSE: Reference Exhibit A, Section 14.38.e) (CPA-Required Security Awareness Training) and Exhibit G (Contractor Cybersecurity Training Attestation) that sets forth the approved security awareness training requirements.

19. Section 3.5, Anticipated Schedule of Events (p. 9): Would the Comptroller share an anticipated date of oral interviews to be part of its decision-making process? Does the Comptroller have an anticipated award date?

RESPONSE: Reference Section 5.1 (Evaluation Process), second paragraph: Trust Company may (but not must) request presentations from top scoring Respondents with such Respondents to be notified and presentation dates and times arranged in Trust Company’s discretion. Reference the anticipated Services Commencement Date in the Anticipated Schedule of Events on RFP page 1 and in Section 3.5 (Anticipated Schedule of Events); the anticipated Award Date will be on or before the anticipated Services Commencement Date.

20. Section 3.9, Confidential Information; Nondisclosure; Open Records (p. 10): In our proposal template utilized for similar solicitations, we include a Disclosure Restriction page that describes our alternative practice structure in accordance with the AICPA Professional Code of Conduct and applicable law, and also outlines the government’s ability to duplicate, use, or disclose the data in our proposal consistent with the government’s procurement rules. The footer of this page includes “© 2026 Sikich CPA LLC”. Would the Comptroller consider this use of “copyright” to be non-responsive?

RESPONSE: Reference Section 3.9 (Confidential Information; Nondisclosure; Open Records) including paragraphs 4 through 6, noting paragraph 6 states, “Copyrighted Proposals are unacceptable and are subject to disqualification as non-responsive.” Also reference Exhibit F (Certification Regarding Public Nature of the Proposal).

21. Section 4.2.4, Respondent Identifying Information (p. 12): Would Comptroller please clarify if it desires the names of all principals of our firm, only principals who could potentially provide service under the scope of work, or only principals specifically proposed under the scope of work?

RESPONSE: Reference Section 4.2.4 (Respondent Identifying Information), noting requirements of and difference between subparagraphs 2) names of all principals (emphasis added) and 13) full name and address for each member, partner, and employee of the Respondent (and any subcontractors) who will perform Services on this project.

22. Section 4.2.4, Respondent Identifying Information (p. 12): Would the Comptroller please confirm if the lack of offices in the State of Texas places our proposal at a disadvantage? Would the Comptroller confirm if including engagement team members in the proposal who reside in the State of Texas would suffice in lieu of a physical office in the State of Texas?

RESPONSE: The RFP does not include language requiring Respondent have offices in Texas, although Section 4.2.4 (Respondent Identifying Information), subsection 5) requires Respondent to identify the name and location of Respondent’s offices and facilities, including any in Texas, relating to Respondent’s performance under the Contract.

23. Section 2.1, General (p. 7): Would the Comptroller verify which State Board of Accountancy is referenced?

RESPONSE: Reference Section 1.2 (Background); State is defined as State of Texas.

24. Section 4.2.5, Proposed Subcontractor(s) Identifying Information (p. 13): Would the Comptroller confirm the impact on the evaluation of the submitted proposal if after going through the HUB subcontracting plan process and proper completion of the forms, the proposer determines not to utilize a subcontractor?

RESPONSE: Reference Part V (Proposal Evaluation and Selection) for the Evaluation Process and Selection Criteria.

25. Section 4.2.16, Conflict of Interest/Disclosure Statement (p. 17): Would the Comptroller confirm Exhibit E is to be completed by the individual authorized to sign on behalf of the Respondent and not by each member of the proposed engagement team?

RESPONSE: Reference Exhibit E, Section A (Disclosures) which requires Respondent disclose actual and potential conflicts of interest applicable to Respondent and any of Respondent’s proposed personnel and subcontractors, as applicable. Respondent should complete one Exhibit E and submit with Respondent’s Proposal.

26. Sample Contract, Section 14.41 Internal Revenue Service Data (p. 35): Would the Comptroller clarify if it expects auditee data to be classified as FTI? If so, could the Comptroller identify how much of the data is FTI and identify the related audit areas?

RESPONSE: During performance of services under the Contract, it is anticipated Successful Respondent may have access to some FTI. Most Trust Company data subject to audit would not be classified as FTI. However, TTSTC does hold some FTI data (primarily vendor payable information). Compliance with Exhibit A, Section 14.41 (Internal Revenue Service Data) is required.

27. 4.2.2. Executive Summary (p. 12 of 55): The solicitation states, “Respondent must provide an executive summary of its proposal and a representation that the Proposal addresses all of the requirements of this RFP. The Executive Summary must not include any information concerning the costs of the Proposal. The Executive Summary must not exceed three (3) pages, and must represent a full and concise summary of the contents of the Proposal.” (Emphasis added).

Would the Comptroller please confirm whether respondents should submit a compliance matrix aligning the solicitation requirements to the offerors’ proposal responses, in addition to the table of contents? If so, would the Comptroller please confirm that this is exempt from the 3-page limit for the required executive summary?

RESPONSE: Reference Section 4.2.2 (Executive Summary); the limitation of three (3) pages is exclusive to the requirements for the Executive Summary. Also reference Section 4.2.8 (Respondent Narrative) that requires Respondent provide explanation of how Respondent’s offered services will meet the requirements of the RFP. Respondent is neither required to, nor prohibited from, including a matrix demonstrating Respondent’s belief its Proposal meets RFP requirements; such matrix, if included, shall not serve in lieu of requirements of Section 4.2.2 (Executive Summary).

28. 4.2.7. Proposed Personnel (p. 14 of 55) / 3.9. Confidential Information; Nondisclosure; Open Records (p. 10 of 55): The solicitation states that respondents “must provide for each person…a full name (including full middle name).”

The solicitation also states, “Comptroller may upload to the LBB contract database the text of the complete Contract, including Successful Respondent’s Proposal (with limited redaction and appendix) no later than ten (10) days after the date of Contract award, if any…. Following the award of a Contract, responses to this RFP are subject to release as public information unless the response or specific parts of the response can be shown to be exempt from the Texas Public Information Act.”

Given this is personally identifiable information (PII), would the Comptroller please confirm that the full legal name of each proposed personnel is a post-award requirement and not necessary for inclusion with the proposal response?

RESPONSE: Reference Section 4.2.7 (Proposed Personnel) that requires Respondent’s Proposal (emphasis added) include full name, and other information, for each person that is management, supervisory, and key personnel that will be involved in performing the Services. The information is required to be submitted as part of the Proposal.. This is not a post award requirement. Under the Texas Public Information Act (Chapter 552 of the Texas Government Code) contracting information is public information. This includes the identity of all parties to the contract and includes subcontractors.

29. 4.2.7. Proposed Personnel (p. 14 of 55): The solicitation states that respondents “must provide for each person…a specific description of relevant experience and skills that person has with this type of services, that must include at least three (3) years of experience performing work similar to the required Services (limit to one page).”

The solicitation also states, “Resumes and biographies must present the required personnel information in sufficient detail to provide Trust Company with a convincing indication that the personnel involved can successfully provide the required Services.”

Would the Comptroller please clarify whether the “description of relevant experience and skills” should be considered the biographies requested and presented separately from proposed personnel resumes?

If so, would the Comptroller please confirm that personnel resumes may be included as an appendix to the proposal response and are not subject to the page limitations described above?

RESPONSE: Reference Section 4.2.7 (Proposed Personnel). For clarity, required resumes must include, at a minimum, all the information identified in the numbered list. The page limit (one page per each individual) applies only to each of two of the listed items (items 3) and 5)). There is no page limit applicable to any other listed or required information or to supplemental information that Respondent determines is necessary to meet the requirements of delivering resumes and biographies “in sufficient detail to provide a convincing indication that the personnel involved can successfully provide the required Services.” For efficiency in evaluation of Proposals, all required and supplemental information for each resume and biography should be included together within the Proposed Personnel section of Respondent’s Proposal. For purposes of the requirements of Section 4.2.7, the terms resumes and biographies are interchangeable.

30. 4.2.8. Respondent Narrative, A) (p. 14 of 55): The solicitation states, “In its Proposal, Respondent must also provide a preliminary Work Plan, with a table of contents….”

Would the Comptroller please clarify whether respondents should include the preliminary work plan as a separate file or as an appendix to the proposal response, rather than in the body of the proposal response, in order to aid in readability?

RESPONSE: Reference Section 4.2 (General Organization of Proposal Contents) for the requirements applicable to organization of Respondent’s Proposal and Section 4.2.8 (Respondent Narrative), subparagraph A) related to submission of the required Work Plan. Respondent should include the Work Plan as 4.2.8.A) of Respondent’s Proposal.

31. Prior Year Fees and Hours. Please provide the total audit fees paid for the most recent completed fiscal year, broken out by entity/fund and by audit component (financial statement audit, policy compliance, attestation, and any other required reports).

RESPONSE: See Response to Question 4.

32. Prior Year Fees and Hours. For the most recent completed fiscal year, please provide the total audit hours incurred, summarized by staff level (partner, manager, senior, staff) and by major audit area.

RESPONSE: Reference Exhibit A (Sample Contract), Section VII (Payments) and Attachment D (Authorized Personnel and Compensation), noting compensation under the Contract shall be based on total contract amount (including all costs and expenses of every kind) and based on completed work targets included in the Services performed in compliance with the Contract and accepted by Trust Company. Audit hours are not available.

33. Prior Year Fees and Hours. Were there any material scope changes or extraordinary items in the most recent year that significantly affected fees or hours? If so, please describe.

RESPONSE: There were no material scope changes or extraordinary items that significantly affected fees or hours in the most recent year.

34. Remote vs. On-Site Audit Work. What portions of the audit work are expected or permitted to be performed remotely versus on‑site, and are there minimum on‑site presence expectations (by phase or role)?

RESPONSE: See Response to Question 17.

35. Remote vs. On-Site Audit Work. Are secure remote access methods available for audit evidence (e.g., document portals, read‑only system access), and are there any restrictions that would require on‑site procedures for specific areas?

RESPONSE: Reference Exhibit A, Section 14.38 (CPA Data Safeguard Standards) including, but not limited to, subparagraphs c) and d) related to web-based and remote access to CPA Information Systems. Also reference Section 14.45 (Use of State Property). Yes, there are secure access remote methods for certain audit evidence. However, certain system internal controls are housed within the applications and may not be available remotely.

36. Remote vs. On-Site Audit Work. For Audit Committee meetings and required presentations, will virtual attendance be acceptable, or is in‑person attendance expected?

RESPONSE: Trust Company’s expectation is that the audit findings will be presented in person before the Comptroller’s Investment Advisory Board at one of the regularly scheduled quarterly meetings.

37. Audit Timing and Schedule. Please confirm the anticipated timeline for interim/preliminary procedures, year‑end fieldwork, draft deliverables, and final report issuance for each entity/fund.

RESPONSE: Reference Part II (Scope of Work) and the approximate deadlines listed therein.

38. Audit Timing and Schedule. Are there hard deadlines for draft and final deliverables tied to statutory, board, or stakeholder requirements that proposers should factor into staffing and scheduling?

RESPONSE: See Response to Question 37.

39. Audit Timing and Schedule. Is there flexibility in sequencing fieldwork across entities/funds, or are there preferred windows that should be prioritized?

RESPONSE: Reference Section 2.1 (General), second through last paragraphs. The preferred sequence of audit field is TexPool and TexPool Prime, SWIFT, Trust Company, and Tobacco Fund, with deviation from the preferred sequence subject to Trust Company approval.

40. Part IV PROPOSAL FORMAT Section 4.2.4 13) full name and address for each member, partner, and employee of the Respondent (and any subcontractors) who will perform Services on this project. Will the Agency accept this information for all key members of the engagement to align with section 4.2.7 of the RFP?

RESPONSE: Reference Section 4.1 (Introduction), second paragraph. Also reference Section 4.2 (General Organization of Proposal Contents) that identifies the required organization and provides that each of the subsection includes a description of the required information per subsection. Note subparagraph 4.2.2.4 requires specific Respondent Identifying Information and 4.2.2.7 requires identification of Proposed Personnel plus information specific to each of the Proposed Personnel.

41. Part IV PROPOSAL FORMAT Section 4.2.6 B) Cancellations or Terminations. - Respondent must list all contracts or purchase orders that Respondent executed or accepted within the last three (3) years and which were canceled or terminated prior to completion by any state agency or other entity with which Respondent contracted. We are a national firm with thousands of contracts in various industries, both regulated and private. Due to confidentiality reasons, we are unable to provide a full list of all contracts as requested. Would the Agency accept this response for all large Texas governmental entities that meet these requirements?

RESPONSE: Reference Section 4.1 (Introduction), second paragraph. Reference Section 4.2.6.B) “…list all…within last three (3) years and which were canceled…” requires only those that were canceled or terminated prior to completion. Reference Section 3.9 (Confidential Information; Nondisclosure; Open Records). Reference Sections 2.2 (Contract Term; Sample Contract), last paragraph, and 4.2.1 (Transmittal Letter), last paragraph, and Exhibit B, item 36.

42. What were prior year fees paid to the predecessor auditor?

RESPONSE: See Response to Question 4.

43. Can the Agency provide copies of all prior year reports?

RESPONSE: See Response to Question 7.

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