ESBD_493591_1775145540172_Annual Financial Audit Services Q&A - Final.pdf
PDF 225 KB Posted
- Attached to
- Audit Financial Services RFP 462-2026-0003
- Solicitation number
- 462-2026-0003
- Issued by
- Travis County, Austin City, Texas
About this file
This document is a Responses to Proposers' Questions for an Annual Financial Audit Services Request for Proposals issued by the Texas Department of Licensing and Regulation (TDLR) for the Texas Lottery. The RFP number is 452-2026-0003, and this Q&A document addresses questions submitted by prospective proposers prior to the March 25, 2026 deadline. A pre-proposal conference was held on March 12, 2026, though no questions were raised during that meeting. The RFP requires an independent annual financial audit of the Texas Lottery as mandated by Texas Government Code 466.017. TDLR indicated that interim work is preferred for late July or early August, with field work to begin no sooner than the third full week in October. The fiscal year-end remains August 31, with the most recent financial statements issued for the fiscal year ended August 31, 2025. TDLR declined to respond to certain questions, including inquiries about prior contracted fees, total hours incurred by the previous auditor, anticipated operational challenges, and planned changes to third-party service providers, stating that such information would either fall outside the RFP scope or be addressed directly with the successful proposer.
The document indicates that no significant changes are anticipated regarding accounting methodology, key assumptions for estimates, investment strategy, or allocation. No current incumbent auditor was identified, and the current Texas State Auditors are not performing this audit function. TDLR reserved the right to withhold responses to questions when providing information would impair competition or harm its interests. Proposers were directed to review the entire RFP scope and make their own recommendations regarding priorities and improvements. Any exceptions to RFP requirements were required to be noted in proposals as specified in Section 2.7 of the RFP. A separate document addressing Historically Underutilized Business (HUB) Subcontracting Plan questions was noted as being maintained throughout the procurement process.
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Text version
TEXAS DEPARTMENT OF LICENSING AND
REGULATION
REQUEST FOR PROPOSALS FOR
ANNUAL FINANCIAL AUDIT SERVICES
No. 452-2026-0003
RESPONSES TO PROPOSERS’
QUESTIONS
April 2, 2026
REQUEST FOR PROPOSALS
FOR
ANNUAL FINANCIAL AUDIT SERVICES
RESPONSES TO PROPOSERS’
QUESTIONS
Note to All Prospective Proposers:
The following responses include questions raised and answers provided during the pre-proposal conference held on March 12, 2026, and questions submitted in writing by the RFP deadline.
The Texas Department of Licensing and Regulation (TDLR) has provided responses to questions.
Some answers may clarify the RFP or result in an RFP amendment, and every Prospective Proposer is on notice of each answer’s content. Answers apply only to the facts as presented in each specific question.
TDLR reviewed all questions submitted by the deadline but declines to respond to some questions when TDLR believes providing the information would impair competition or otherwise harm the interests of TDLR.
Proposers shall review all sections of the RFP along with this document to ensure a complete understanding of the requirements. Any exceptions to the RFP shall be noted in the proposal, as required under Section 2.7 of the RFP.
Please note: Any questions regarding the HUB Subcontracting Plan (HSP) are in a separate document that will be updated throughout the procurement process.
PRE-PROPOSAL CONFERENCE QUESTIONS AND RESPONSES -
MARCH 12, 2026.
There were no questions received during the Pre-Proposal Conference.
WRITTEN QUESTIONS RECEIVED BY MARCH 25, 2026 @ 4 P.M.
1. Outside of the nature of services required, are there any specific expectations of focus that you are looking for in your next service provider to prioritize?
RESPONSE: The Successful Proposer shall review the entire scope of the RFP and make its own recommendations on what to prioritize.
2. What are the top concerns and challenges for operations and financial reporting that you are currently facing in the next several years?
RESPONSE: TDLR confirms the question is outside the scope of the RFP and will address with the Successful Proposer.
3. Do you incorporate artificial intelligence (AI) into your business and financial reporting processes? And if not, do you have a plan or desire to do so in the next several years?
RESPONSE: The Successful Proposer shall review the entire scope of the RFP and make its own recommendations.
4. What are your current key financial accounting and gaming systems and what are they used for? Are there any plans for change in the next several years?
RESPONSE: Refer to Section 6.15.1.(d).
5. Are there any anticipated changes in key third party service providers in the next year
(investment custodian, actuary, etc.)?
RESPONSE: TDLR confirms the question is outside the scope of the RFP and will address with the Successful Proposer.
6. Are relevant SOC reports available and obtained and reviewed by management?
RESPONSE: Refer to Section 6.15.1.(d). TDLR confirms the question is outside the scope of the RFP and will address with the Successful Proposer.
7. What is the preference for onsite/offsite timing for performance of the audit?
RESPONSE: The preference for interim work is late July or early August. It is preferred that field work begin no sooner than the third full week in October. Refer to Section 6.7. for additional timeline requirements.
8. Are there any significant changes expected to methodology or key assumptions for significant estimates (including the actuarial methodology/valuation), cost sharing methodology, or changes in accounting policy?
RESPONSE: No.
9. Any changes in your investment strategy/allocation or new types of investments compared to the prior year?
10. Is the incumbent the TX State Auditors?
11. Why is the RFP issued and why is the TX Lottery not using the State Auditors?
RESPONSE: Texas Government Code §466.017 requires an annual independent audit of the Lottery.
12. If possible, can you please provide the prior contracted fees and total hours the previous auditor incurred to deliver the scope of work on an annual basis for the previous contract?
RESPONSE: TDLR confirms the question is outside the scope of the RFP.
13. FY25 financial statements were issued for the year ended August 31, 2025. Can you confirm whether the Lottery’s fiscal year-end or reporting period is changing? If so, what is the reason for the change?
RESPONSE: The Lottery’s fiscal year-end or reporting period is not changing.
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