Professional_Audit_Services.pdf

CITY OF ZEPHYRHILLS

2025-010

PROFESSIONAL AUDIT SERVICES

AN EQUAL OPPORTUNITY EMPLOYER

FLORIDA TAX EXEMPT #85-8012740166C-4

FEDERAL IDENTIFICATION NUMBER #59-6000455

I. INTRODUCTION TO REQUEST FOR PROPOSALS

II. SCOPE OF WORK

III. PROPOSAL SUBMITTAL AND REQUIREMENTS

IV. COST PROPOSAL

V. EVALUATION CRITERIA & RANKING PROCESS

VI. RESPONSE PACKAGE CRITERIA

VII. ADDITIONAL CONDITIONS

VIII. VENDOR REQUIREMENTS AND ACKNOWLEDGEMENTS

Attachments:

A - 2024 Zephyrhills Audit

B - 2024 CRA Zephyrhills Audit

C - 2022 SVB Tennis and Wellness Center Audit

1. INTRODUCTION TO REQUEST FOR PROPOSALS

1.1. Invitation

The City of Zephyrhills (the “City”), invites responses (“Responses”) from Vendors which offer to provide the services described in Section “Scope of Work".

1.2. Vendor

A Vendor is an individual, firm, or corporation submitting a Response to the City for the services requested in the RFP.

1.3. Agreement Terms and Conditions

The Vendor(s) selected to provide the service(s) requested herein (the “Successful Vendor(s)”) shall be required to execute an Agreement with the City. In the event that the proposer to whom the contract is awarded does not execute a contract within thirty (30) days after such award, the

City of Zephyrhills may give notice to such proposer of intent to award the contract to the next ranked Vendor, or to call for new responses.

After a contract is signed, failure to comply with any of the terms and conditions of this RFP by the awarded Vendor will be cause for termination of the "Professional Audit Services"

Agreement.

1.4. Additional Information or Clarification

Requests for additional information or clarifications must be made in the City's e-Procurement

Portal at https://procurement.opengov.com/portal/zephyrhillsfl and in accordance with the Cone of Silence. The Cone of Silence is applied to all communications concerning any bid, RFP or

RFQ before intent to award are issued. Any request for additional information, or for questions seeking clarifications must be received in writing no later than Friday, August 29, 2025 by 10:00 am.

The City will issue responses to inquiries and any other corrections or amendments it deems necessary through the City's e-Procurement Portal located at https://procurement.opengov.com/portal/zephyrhillsfl, prior to the Response Submission Date.

Vendors should not rely on any representations, statements or explanations other than those made in this RFP or any written addendum to this RFP. Where there appears to be conflict between the RFQ and any addenda issued, the last addendum issued shall prevail.

It is the Proposer’s responsibility to assure receipt of all addenda. Proposers will be required to acknowledge all addendum within their submission through the eProcurement Portal.

All communications are to be directed to the Purchasing Agent through the City's e-Procurement

Portal located at https://procurement.opengov.com/portal/zephyrhillsfl.

1.5. Award of Agreement

An Agreement may be awarded to the Successful Proposer(s) by the City Council as applicable, based upon the requirements reflected herein. The City reserves the right to execute or not execute, as applicable, an Agreement with the Successful Proposer(s) that is determined to be in the City’s best interest.

https://procurement.opengov.com/portal/zephyrhillsfl https://procurement.opengov.com/portal/zephyrhillsfl

1.6. Agreement Execution

By submitting a Response, the Proposer(s) agree to be bound to and execute the Agreement for: Professional Audit Services. Without diminishing the foregoing, the Proposer may request clarification and submit comments or proposed revisions to the language concerning the

Agreement for City’s consideration. Any such comments or proposed revisions identified after the Response has been received need not be considered by the City. None of the foregoing shall preclude the City from seeking to negotiate changes to the Agreement during the negotiation process.

1.7. Response Package

Careful attention must be given to all requested items contained in this RFP. Proposers are invited to submit Responses in accordance with the requirements of this RFP. PLEASE READ

THE ENTIRE SOLICITATION BEFORE SUBMITTING A RESPONSE. Proposers shall make the necessary entry in all blanks and forms provided for the Response.

1. Each Response that is submitted for evaluation must meet the requirements specified in the RFP.

2. Failure to submit all required items in the manner specified may result in your submittal being found unacceptable.

3. Any submittal found unacceptable will not be considered for selection for this project.

1.8. Changes/Alterations

Proposer may change or withdraw a Response at any time prior to Response Submission

Deadline by clicking on "Unsubmit" Proposal via eProcurement Portal. All changes or withdrawals shall be made City's e-Procurement Portal located at https://procurement.opengov.com/portal/zephyrhillsfl. Oral/Verbal modifications will not be allowed. Written modifications will not be accepted after the Response deadline.

1.9. Discrepancies, Errors, and Omissions

Any discrepancies, errors, or ambiguities in the RFP or addenda (if any) should be reported to the City of Zephyrhills Purchasing Agent in the manner prescribed in RFP Section “Additional

Information or Clarification”. Should it be necessary, the City will issue a written addendum to the RFP clarifying such conflicts or ambiguities.

1.10. Disqualification

The City reserves the right to disqualify Responses before or after the submission date, upon evidence of collusion with intent to defraud or other illegal practices on the part of the

Proposer. It also reserves the right to waive any immaterial defect or informality in any

Response; to reject any or all Responses in whole or in part, or to reissue a Request for

Proposals.

1.11. Reject Responses

The City of Zephyrhills, Florida reserves the right to reject any or all responses, waive informalities, request additional information and to negotiate a contract with the most qualified

Vendor for professional services at compensation which the agency determines is fair, competitive and reasonable in keeping with the best interests of the City.

1.12. Vendor’s Expenditures

Proposers understand and agree that any expenditure they make in preparation and submittal of

Responses or in the performance of any services requested by the City in connection with the

Responses in response to this RFP are exclusively at the expense of the Proposers. The City shall not pay or reimburse any expenditure or any other expense incurred by any Proposer in preparation of a Response or anticipation of an Agreement award or to maintain the approved status of the Successful Proposer(s) if an Agreement is awarded.

1.13. Compliance with Applicable Law

The laws of the State of Florida shall govern the agreement. Comply with all applicable federal, state, county and municipal laws, ordinances, regulations and rules related to the services to be performed there under. Conduct no activity or provide any service that is unlawful or offensive.

1.14. Conflicts of Interest

No Vendor shall be eligible for selection on any project and no work shall be assigned to a

Vendor which conflicts with or is duplicative of any work by the Vendor or any affiliated business entity, including, but not limited to, partnerships, joint ventures, and subsidiaries of the same parent corporation or Vendor.

1.15. Indemnification

Indemnity: Vendor shall defend, indemnify and hold harmless the City of Zephyrhills and all of the City of Zephyrhills’s officers, agents, and employees from and against all claims, liability, loss and expense, including reasonable costs, collection expenses, attorneys’ fees, and court costs which may arise because of the negligence (whether active or passive), misconduct, or other fault, in whole or in part (whether joint, concurrent, or contributing), of Vendor, its officers, agents or employees in performance or non-performance of its obligations under the Agreement generated from this solicitation. Vendor recognizes the broad nature of this indemnification and hold harmless cause, as well as the provision of a legal defense to the City of Zephyrhills when necessary, and voluntarily makes this covenant and expressly acknowledges the receipt of such good and valuable consideration provided by the City of Zephyrhills in support of these indemnification, legal defense and hold harmless contractual obligations in accordance with the laws of the State of Florida. This clause shall survive the termination of the Agreement from this solicitation. Compliance with any insurance requirements required elsewhere within the

Agreement shall not relieve the Vendor of its liability and obligation to defend, hold harmless and indemnify the City of Zephyrhills as set forth in this article of the Agreement.

It is further agreed that liability and exposure for indemnification (including, but not limited to the amounts of any indemnification owed by a governmental entity) will be limited to and governed by the provisions of Section 768.28(5), Florida Statutes.

Insurance: Vendor shall, at its sole costs and expense, procure and maintain throughout the term of the contract, Comprehensive General Liability and Worker's Compensation insurance, including Employer Liability insurance, with minimum policy limits of

1.16. Insurance

Vendor shall, at its sole cost and expense, procure and maintain throughout the term of the contract, Comprehensive General Liability and Worker’s Compensation insurance, including

Employer Liability insurance, with minimum policy limits of $1,000,000 combined Single

Limits, or to the extent and in such amounts as required and authorized by Florida law, and will provide endorsed certificates of insurance generated and executed by a licensed insurance broker, brokerage or similar licensed insurance professional evidencing such coverage, and naming the City of Zephyrhills as a named, additional insured, as well as furnishing the City of

Zephyrhills with a certified copy, or copies, of said insurance policies. Certificates of insurance and certified copies of these insurance policies must accompany the signed contract. Said insurance coverages procured by the Vendor as required herein shall be considered, and the

Vendor agrees that said insurance coverages it procures as required herein shall be considered, as primary insurance over and above any other insurance, or self-insurance, available to the City of

Zephyrhills, and that any other insurance, or self-insurance available to the City of Zephyrhills shall be considered secondary to, or in excess of, the insurance coverage(s) procured by the

Vendor as required.

Nothing shall be construed to extend the City of Zephyrhills’s liability beyond that provided in section 768.28, Florida Statutes.

1.17. Termination (Cause and/or Convenience)

A. This contract may be terminated in whole or in part in writing by either party in the event of substantial failure by the other party to fulfill its obligations under this contract through no fault of the terminating party, provided that no termination may be effected unless the other party is given (1) not less than thirty (30) calendar days written notice

(delivered by certified mail, return receipt requested) of intent to terminate and (2) an opportunity for consultation with the terminating party prior to termination.

B. This contract may be terminated in whole or in part in writing by the local government for its convenience, provided that the other party is afforded the same notice and consultation opportunity specified in 1(a) above.

C. If termination for default is effected by the local government, an equitable adjustment in the price for this contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due to the

Vendor at the time of termination may be adjusted to cover any additional costs to the local government because of the Vendor's.

If termination for convenience is effected by the local government, the equitable adjustment shall include a reasonable profit for services or other work performed for which profit has not already been included in an invoice.

For any termination, the equitable adjustment shall provide for payment to the Vendor for services rendered and expenses incurred prior to receipt of the notice of intent to terminate, by the Vendor relating to commitments which had become from prior to receipt of the notice of intent to terminate.

D. Upon receipt of a termination action, the Vendor shall (1) promptly discontinue all affected work (unless the notice directs otherwise) and (2) deliver or otherwise make available to the local government all data, drawings, reports specifications, summaries and other such information, as may have been accumulated by the Vendor in performing this contract, whether completed or in process.

E. Upon termination, the local government may take over the work and may award another party a contract to complete the work described in this contract.

F. If, after termination for failure of the Vendor to fulfill contractual obligations, it is determined that the Vendor had not failed to fulfill contractual obligations, the termination shall be deemed to have been for the convenience of the local government. In such event, adjustment of the contract price shall be made as provided in paragraph (c) above.

1.18. RFP Availability

RFP documents, plans, addendums can be viewed and downloaded from the City's e-

Procurement Portal at https://procurement.opengov.com/portal/zephyrhillsfl. Registration is

FREE. It is your responsibility to ensure you have downloaded all addendums published before the bid opening. You must be a registered vendor for the City of Zephyrhills prior to any work with the City. Should you have questions concerning this site, contact Customer Support via the

City's e-Procurement Portal to provide assistance. Responses will be opened after the deadline online. A listing of those Vendors who submitted a response will be posted.

1.19. Response Submission

One electronic response package shall be submitted through the City's e-Procurement Portal located at https://procurement.opengov.com/portal/zephyrhillsfl, prior to the Opening time of

Friday, September 5, 2025 by 10:00 am.

The City shall not, under any circumstances, be responsible for delays caused by the issues caused in uploading or for other delays. All responses must be manually and duly signed by authorized authority to bind said Vendor or individual, and Vendor must affix their corporate seal (if any) to the response. In the absence of a corporate seal, the response must be notarized by a Notary public.

The submittal of a response by a preparer will be considered by the City as constituting an offer by the Vendor to perform the required services at the stated fees.

Each Vendor is solely responsible for the reading and completely understanding the requirement of this RFP. The opening time shall be and must be scrupulously observed. Under no circumstances will responses delivered to the office be accepted. All responses are to be uploaded via City's e-Procurement Portal online. Late submissions will not be accepted.

1.20. Appropriations Clause

The City, as an entity of government, is subject to the appropriation of funds by its legislative body in an amount sufficient to allow continuation of its performance in accordance with the terms and conditions of this contract for each and every fiscal year following the fiscal year in which this contract shall remain in effect. Upon notice that sufficient funds are not available in the subsequent fiscal years, the City shall therefore be released of all terms and other conditions.

1.21. Oral Presentations

At the City's sole discretion, a formal oral presentation may be required by each Vendor that is short list selected during the initial review process. The City will provide a week's notice, if selected. If required, presentations should be in support of the Vendor's response or to exhibit or https://procurement.opengov.com/portal/zephyrhillsfl otherwise demonstrate the information contained herein. If the Audit Selection Committee wishes additional clarification of any information, Vendors maybe requested to submit that information in writing.

1.22. Acceptance of Applicable Policies & Procedures.

A. Vendors responding to this RFP agree by submission of such response to accept and comply with the City policies and procedures that apply to the selection process for this project.

B. All Vendors should be licensed in the State of Florida and professionally qualified.

C. Any concerns, or issues, relating to current policies and procedures may be addressed with City staff, but separate from this selection process.

1.23. Audit Selection Committee Process

The audit selection committee will review and evaluate the proposals of all interested

Vendors. This committee shall select at least three (3) firm's that are licensed in the State of

Florida and are otherwise professionally qualified.

The audit selection committee will present their recommendations to the City Manager based on their review of the written responses. The City Manager will present the Committee’s recommendations to City Council for their consent for approval. A member from the ranking committee will be present to respond to any detailed questions the Council may have. City

Council will vote on the Committee’s recommendation.

1.24. Written Selection Process

The audit selection committee will review submittals for responsiveness and responsibility. Those found responsive and responsible based on an initial review shall proceed to the interview portion if the audit selection committee deems it to be necessary.

1.25. Interview Format

The Vendors selected to make a presentation to the Audit Selection Committee will be notified by the City. Each Vendor selected for further consideration shall be notified in writing and informed of a place and time for the interview sessions. The time allotted to each Vendor for the presentation and interview shall not exceed forty five (30) minutes. (5 Minutes for setup, 20 minutes for presentation, 5 minutes for questions). All members of the Audit Selection

Committee will be present during the formal interview.

1.26. Issues to Address at Interview

The intent of the formal interview process is to provide the audit selection committee with in-depth information from the Vendor in order to make a final selection of the best-suited Vendor for the contract. What makes your firm and proposal better suited for this solicitation than the other firms. Firms should focus their presentations on the detailed plan for the tasks, evaluations, interviews, schedule and quality of the services to be provided and any unique characteristics or services the Vendor offers.

Firms are discouraged from reviewing company history and past experience evaluated during the written submittals unless this information is relevant to the discussion.

1.27. Award Criteria

The audit selection committee recommendation will be made from their in depth review of the written responses and the evaluation of the interview responses based on various criteria including but not limited to:

• Approach to the implementation, performance and satisfaction of City requirements.

• Demonstrated professional skills and credentials.

• Demonstrated understanding and success of similar projects

• Demonstrated ability to communicate well.

• Ability to perform the work within the stated timeframe.

1.28. Final Evaluation

Upon completion of the evaluation process by the Audit Selection Committee, the

Firms/Proposals will be ranked in descending order of recommendation. The Audit Selection

Committee shall present their final ranking to the City Manager for presentation to the City

Council for approval of the committee’s recommendation. The City will begin negotiations with the number one ranked Vendor. Should the City be unable to negotiate a satisfactory contract with the top-ranked Firm at a price determined to be fair and reasonable, negotiations shall be terminated with that Firm and the City shall initiate negotiations with the second ranked Vendor to arrive at an acceptable contract, and so on.

The final negotiated contract is presented to City Council for approval and authorization by the

City Manager.

1.29. Exception to the RFP

Vendors may take exceptions to any of the terms of this RFP unless the RFP specially states where exceptions may not be taken. Should a Vendor take exception where none is permitted, the response will be rejected as nonresponsive. All exceptions taken must be specific, and the

Vendor must indicate clearly what alternative is being offered to allow the City a meaningful opportunity to evaluate and rank responses.

Where exceptions are permitted, the City shall determine the acceptability of the proposed exceptions and the responses will be evaluated based on the responses as submitted. The City, after completing evaluations, may accept or reject the exceptions. Where exceptions are rejected, the City may request that the Vendor furnish the services or goods described herein, or negotiate an acceptable alternative.

1.30. Openness of Procurement Process

Written competitive responses, other submissions, correspondence, and all records made thereof, as well as negotiations conducted pursuant to this RFP, shall be handled in compliance with

Chapters 119 and 286 Florida Statutes. The City gives no assurance as to the confidentiality of any response once submitted.

1.31. Cooperative Purchases

This is a cooperative purchase contract. State law allows any government agency and any accredited school in the state to buy off this contract without going to bid, as long as it does not conflict with any of their local regulations.

1.32. Negotiations

The City may award a contract on the basis of initial offers received, without further negotiations, or may negotiate a final contract. Therefore, each initial offer should contain the

Vendor’s best terms from a cost or price and technical standpoint.

The City reserves the right to enter into contract negotiations with the selected Vendor. If the

City and the selected Vendor cannot negotiate a successful contract, the City may terminate said negotiations and begin negotiations with the next selected Vendor. This process will continue until a contract has been executed or all Vendors have been rejected. No Vendor shall have any rights against the City arising from such negotiations.

1.33. Right to Protest

Any actual or prospective Vendor who is aggrieved in connection with the solicitation or award of a contract may seek resolution of its complaints by contacting the City Manager. All Protests must be presented one (1) week after the solicitation deadline or one (1) week after Council approval of ranking.

1.34. Public Records

In accordance with 119.0701 F.S. Vendor shall:

IF A VENDOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER

119, FLORIDA STATUTES, TO THE CONSULTANT’S DUTY TO PROVIDE PUBLIC

RECORDS RELATING TO THIS AGREEMENT OR CONTRACT, THEY SHALL

CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT:

RICARDO QUINONES, CITY CLERK

CITY OF ZEPHYRHILLS

5335 8TH STREETH

ZEPHYRHILLS, FLORIDA 33542

RQUINONES@CI.ZEPHYRHILLS.FL.US

813-780-0000

1.35. ACH-EFT Payments

The City will make payments for services provided under this contract by means of an ACH-

EFT process. This method is quicker and eliminates fraud activity. This will need to be setup before any payment processing. The City reserves the right to revise this program as necessary.

2. SCOPE OF WORK

2.1. Introduction

The City of Zephyrhills (The City) is seeking the services of a certified professional accounting firm (Firm) to review, evaluate, and provide audit services, risk assessment, and annual financial audits of the City's accounts and records in accordance with Chapter 218.391, Florida State

Statutes, and governmental auditing standards as adopted by the Florida Board of Accountancy.

The selected Firm shall issue an opinion of the fair presentation of the City's financial statements in conformity with generally accepted accounting principles, beginning with the fiscal year ending September 30, 2025. It is the intent of the City to continue these services with the selected Firm for the fiscal year periods ending September 30, 2026, September 30, 2027, with a mailto:LHILLMAN@CI.ZEPHYRHILLS.FL.US potential of two (1) one-year extension options.

Certified Public Accounting (CPA): The Firm shall be a certified public accounting firm duly licensed under F.S. Chapter 473 and qualified in accordance with Florida State Statute 218.391 as described in Section 3(a) to conduct annual financial audits of its accounts and records in accordance with the government auditing standards as adopted by the Florida Board of

Accountancy and have been in business for a minimum of five (5) years.

Proposals must be from a single CPA firm capable of providing all required services. No sub-contracting or joint venture will be considered.

2.2. Auditing Standards

The audit services shall be performed in accordance with auditing standards, and procedures recommended by the American Institute of Certified Public Accountants, the standards for financial audits set forth in the U.S. General Accounting Officer's Government Auditing

Standards, the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, "Audits of State, Local Governments and Non-Profit Organizations", Florida Statute 215.97

Florida Single Audit Act, and the rules of the State of Florida Auditor General. The auditor shall use financial condition assessment procedures to assist in detection of deteriorating financial condition as established under Florida Statute 218.503, and any other applicable rules or regulations.

2.3. General

The following tasks and deliverables are required of the selected Firm:

• The Firm shall perform an annual examination of the City's financial statements for the purpose of expressing an opinion on the fairness with which the statements present the financial positions, results of operations, and changes in the City's financial position. The opinion shall reference the examination of the City’s governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information.

• The Firm shall audit the City's government-wide, and combined statements for all fund types including major and non-major funds. The Firm is to provide an "in-relation-to" report on the supporting schedules and required supplementary information based on the auditing procedures applied during the audit of the general-purpose financial statements.

Furthermore, the auditor shall audit and provide an “in-relation-to” report on the schedule of federal and state financial assistance based on the auditing procedures applied during the audit of the financial statements.

• The Firm shall evaluate the City's internal management and operational controls to ensure efficiency, reliability and compliance with laws and regulations, and to assess the City's control risk. Significant deficiencies and material weaknesses shall be communicated with the appropriate level of management before it is included in a separate letter

(referred to as Management Letter) to the City Council.

• The Firm shall provide the City staff with continuing professional education that includes current industry changes, regulations, and best practices.

• The Firm is not required to audit the statistical section of the report if the City adds a statistical section; however, the Firm is responsible for performing certain limited procedures involving supplementary information required by the Governmental

Accounting Standards Board as mandated by generally accepted auditing standards.

While the City has not in the past submitted the ACFR to the GFOA for the Certificate of

Achievement in Financial Reporting, it could choose to do so at any point during the length of the engagement. The scope of the audit shall include any additional activities necessary to establish compliance with the term “financial audit” as defined and used in

Government Auditing Standards.

2.4. Specialty Audits

The Firm shall perform a separate financial audit for the City’s Community Redevelopment

Agency (CRA) pursuant to F.S. 163.387 and provide an opinion in accordance with generally acceptable auditing standards. The cost for this audit should be bid separately.

Should the City choose to audit the financial operation of the SVB Tennis Center (less than

$2,000,000 in annual revenue), the firm is expected to perform the audit. A copy of the 2022 audit is available for review.

The City has two Subscription-Based Information Technology Arrangements (SBITA) and 14 leases. The Firm should have the necessary expertise to assist the City in complying GASB 96 and 87, including be able to recommend software or cloud-based solutions.

2.5. Reports

Following completion of the audit of the fiscal year financial statements, the Firm shall issue the following reports regarding the financial statements of the City:

• A report on the basic financial statements. This report must include, at a minimum:

o A statement as to whether the financial statements are presented fairly in accordance with generally accepted accounting principles.

o An expression of opinion regarding the financial statements taken as a whole, or an assertion to the effect that an opinion cannot be expressed including the reasons;

therefore, and o A statement that the audit was conducted in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in

Government Auditing Standards issued by the Comptroller of the United States.

• A report on compliance and internal control over financial reporting based on auditors’ understanding and assessment of control risk.

• A report on compliance and internal control over compliance applicable to each major federal program and state project.

• A management letter as required by Florida Statutes 218.39 and 215.97 and Rules of the

Auditor General, Chapter 10.550 which shall identify any management weaknesses observed, assess their effect on financial management and propose steps to correct or eliminate those weaknesses.

• Data Collection Form to the Federal Audit Clearinghouse (SF-SAC) as required by OMB

Circular A-133.

• Other reports required by the Federal Single Audit Act and the Florida Single Audit Act including:

o An “in-relation-to” report on the Schedule of Expenditures of Federal Awards and

State Financial Assistance; and o A separate schedule of findings and questioned costs, including a summary of audit results related to financial statements, internal controls, and compliance.

• In the required reports on internal controls, the Firm shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficient in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.

Reportable conditions that are also material weaknesses shall be identified as such in the report.

• Non-reportable conditions discovered by the Firm shall be included in the ACFR and reported as an appendix to the Management Letter. The reports on compliance shall include all instances of non-compliance.

• Firm shall provide the City with information relating to regulation changes affecting the

City and its operations, such as changes proposed by GASB, FASB, or GAO.

• Irregularities and Illegal Acts—The auditor shall make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties: Mayor, City Manager, Chief Financial Officer, or the City

Commission as appropriate.

• The Firm shall provide the City with one (1) original set of all financial statements, including footnotes and other required disclosures for the Annual Comprehensive

Financial Report (ACFR). The City will be responsible for the preparation of

Management’s Discussion and Analysis, and, at the city staff’s option, the statistical section of the report, which will be incorporated by the Firm in the report.

• Annual Financial Report (AFR) to the State of Florida Chief Financial Officer

Department of Financial Services.

2.6. Audit Schedule

Timeliness is critical in the performance of the annual audit. The Firm shall coordinate with the

Chief Financial Officer (or designee) and endeavor to accomplish the audit in a phased approach throughout the year to reduce the year-end workload on both the Firm and City staff. The City will make the necessary records available to the Firm throughout the year to assist in this regard.

It is anticipated that each of the following tasks be completed no later than the dates indicated, however dates may be changed if mutually agreed upon by both parties:

• The Firm shall provide the Chief Financial Officer with a list of all schedules to be prepared by the City no later than October 15.

• The schedules will be prepared by the City and will be made available to the Firm no later than December 15 with the exception of external entities.

• The Firm shall complete all fieldwork, including that required by the single audit, no later than January 31.

• The Firm shall report to the City at least bi-weekly the status of any potential audit adjustments so that the City may have adequate opportunity to investigate, gather information and respond if necessary.

• The Firm shall deliver to the City, in draft form, all required reports no later than

February 28, provided that the City has supplied the OPEB actuarial valuation report by this time.

• Responses to management letter comments and single audit findings will be prepared by the City and returned to the Firm for review no later than March 7.

• All final required reports shall be delivered to the City no later than March 16.

• Twelve (12) bound copies of each report shall be provided to the City, along with one (1) unbound copy, and one (1) final report printed to PDF.

2.7. Presentation to City Commission

The Firm partner in charge of the audit and/or the audit manager or other CPA assigned to the audit shall attend one or more public meetings, as deemed necessary by the City Commission, for discussion of the audit report.

2.8. Annual Comprehensive Financial Report (ACFR)

The City will issue a bound Annual Comprehensive Financial Report (ACFR) following the completion of the audit of the fiscal year's financial statements.

The City may send its ACFR to the Government Finance Officers Association of the United

States and Canada to review in its "Certificate of Achievement for Excellence" in Financial

Reporting program.

The schedule of federal and state financial assistance and related audit, as well as on the internal control structure and compliance, are to be issued as part of the comprehensive annual financial report.

The City will require the Firm's overall evaluation of the efficiency and adequacy of accounting and assistance with the implementation of any new GASB statements.

The Firm will produce based on data provided by City staff the following sections of the ACFR:

• Introductory section

• Financial section o Management's discussion and analysis o Basic financial statement

▪ Government-wide financial statements

▪ Fund financial statements.

▪ Notes to financial statements o Required supplemental information.

o Individual fund statements and schedules

• Statistical section o GASB requirements o Secondary Market disclosure

• Compliance section o List of federal and state awards o Impact Fee Affidavit

The Firm will provide for inclusion in the ACFR:

• Independent Auditors' Report of Internal Control over Financial Reporting and on

Compliance and Other Matters based on an Audit of Financial Statements Preformed in

Accordance with Government Auditing Standards

• Schedule of Findings and Questioned Cost

• Summary Schedule of Prior Audit Findings

• Managements Response to Audit Findings

• Independent Auditors' Report on Compliance for Each Major Federal Program and

Report 011

• Internal Control over Compliance in Accordance with the Uniform Guidance.

• Independent Auditor's Management Letter Required by Office of Auditor General

• Independent Accountants' Examination Report.

2.9. Additional Services

The City may issue one or more official statements for the sale of bonds during the term of the contract. The official statement will contain the basic financial statements or an extraction from the Annual Comprehensive Financial Report. The Firm shall be required to issue, upon request, a consent and citation of expertise as auditor, “comfort letters” and other documents necessary to issue the bonds. Unless significant additional staff time is required of the auditor, fees for such requests made by the City shall be included in the base fee submitted by the City.

2.10. Retention and Access to Working Papers

The work papers will be the property of the Firm and shall be held for a period of six years.

Work papers shall be available for examination or duplication, without charge, to authorized City personnel, representatives of Federal or State Agencies upon request of that Agency or The City of Zephyrhills in accordance with Federal Law, State Law, and other regulations. Working papers shall also be made available for examination, at no charge, or duplication at a reasonable charge, to subsequent auditors engaged by the City.

The Firm shall notify the City immediately if any regulatory or other government agencies request a review of the audit work papers concerning the City or any other government client audited by the Firm.

2.11. Other Requirements

The Firm shall notify the City immediately should any disciplinary actions be taken, or complaints filed with any regulatory bodies against any of the Firm’s staff or the Firm itself.

The Firm shall make an immediate written report of all irregularities and illegal acts.

The Firm must designate two (2) “key members” of the audit team. The Firm shall reserve the right to approve any substitutions or changes in those staff designated as “key”.

The Firm shall provide the City with a copy of each external quality control review report and letters of comment for each review conducted during the time engaged by the City.

2.12. Information to be Provided by the City

The City will provide information to assist the Firm in performing the annual audit including but not limited to:

• General Ledger/Trial Balance printouts on September 30 and any other time periods requested by auditor. The City’s ERP is Tyler Munis.

• Statements of Revenues and Expenditures, Estimated vs. Actual Revenues, and

Expenditures vs. Appropriations as of September 30 and any other time periods requested by Firm.

• Electronic file containing end of year general ledger, revenue and expenditure balances for all accounts in the City's accounting system for download into audit software.

• Confirmation letters.

• Paid invoices, canceled checks, and other supporting documentation as requested by the

Firm.

• Other information requested by the Firm and mutually agreed upon.

• It would be favorable if the City provides an “auditor” credentials to Tyler Munis so that purchase orders, invoices, and checks can be electronically copied to the firm's computer system.

3. PROPOSAL SUBMITTAL AND REQUIREMENTS

3.1. General

The purpose of the Proposal Submission and Requirements Section is to demonstrate the qualification, competence, and capacity of the Firms seeking to undertake the Independent Audit

Services for The City of Zephyrhills in conformity with the requirements of this solicitation. As such, the substance of the proposals will be evaluated based on what is deemed to be in the best interest of the City.

Firms shall provide the following information in narrative form for each of the following sections. The information submitted will be used in the evaluation of proposals received.

Qualifications and Expertise

At a minimum, this section must include the following information:

• History of the make-up and composition of the Firm, including competitive advantages over others within the same industry.

• Description of Firm's experience in preparing governmental financial statements, and in aiding in obtaining the Certificate of Achievement for Excellence in Financial Reporting for municipal entities of similar size and scope.

• A copy of the two most recent external quality control review reports and letters of comment along with a statement indicating whether the reviews included a review of specific governmental engagements, a copy of Firm's most recent peer review report, and results of any Federal or State desk review or field audits during the past three years.

• Total staff available for this audit and the anticipated percent of audit work to be performed by various levels of staff.

• Designation of two (2) “key members” of the audit team.

• Positive affirmation that all CPAs assigned to the engagement have properly maintained

CPE in governmental accounting and have completed Ethics Couse within last two years as required by the Board of Accountancy.

• Any staff members who are proficient in using Tyler Munis Accounting software that can pull reports, invoices, purchase orders, and contracts.

• Resumes of key members, partners, managers and other staff assigned to this audit, which shall include the following information:

• Experience in public accounting and governmental auditing.

• Copy of active CPA license for all individual CPAs assigned to the audit and for the firm in the State of Florida from the Florida Board of Accountancy.

Project Approach

Describe the Firm's approach and the understanding of the City’s objectives and requirements for by providing:

• Location where audit will be held.

• Proposed segmentation of the engagement, including staff levels and number of hours to be assigned to each proposed segment.

• Extent of use of technology in the engagement.

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

• Approach to be taken to gain and document an understanding of the City's internal control structure.

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

• Tentative schedule for performing key aspects of the audit.

• Clear and consistent plan for accomplishing the specified work.

• Detailed information on how Firm will communicate with the assigned City throughout the term of the contract.

• The City is granting access to the City-staff prepared schedules for the 2024 audit. Would the number or the schedules significantly expand or diminish?

References and Other Considerations

List public agencies for which Firm has provided similar consulting services.

• Identify at least three (3) current and three (3) former municipalities the City may contact as references and who can attest to your expertise to perform the service. References should be of similar scope size to The City of Zephyrhills.

• Disclose any existing or potential conflicts of interest between the scope of work required by the City and Firm’s other business activities.

• Disclose any circumstances and status of any disciplinary actions taken or pending against the Firm or any partners or employees of the Firm by state regulatory bodies or professional organizations during the past three years.

• Describe extent of staff training for continuing professional education with industry changes, regulatory, and best practices.

• Describe any litigation or proceeding whereby, during the past three years, a court or any administrative agency has ruled against the Firm or any of the professional staff in any manner related to its professional activities.

Pricing Proposal

Cost Proposal below must be filled out and submitted in OpenGov.

• Firm shall provide all pricing information for each task outlined and relevant services

(Note: Projected out-of-pocket expenses should be included within your quoted fees.)

• Annual Audit Cost - The proposal shall include all pricing information relative to performing the independent audit services throughout the anticipated contract engagement term beginning with FY2025 and each of the following years contemplated and as described in this request for proposal.

• Optional Items Annual Cost - the proposal shall include all pricing information relative to performing the optional items throughout the anticipated contract engagement term beginning with FY2025 and each of the following years contemplated and as described in this request for proposal.

• Additionally, a separate schedule of hourly rates to be used if additional work is required during the term of the contract must be included with proposal submission.

• Additional Cost for auditing the SVB Tennis Center.

• Any costs for assisting with SBITA or lease reporting, GASB 96 & 87.

4. COST PROPOSAL

Line Item Description Unit of

Measure No Bid 2025 2026 2027 2028 2029 NOTES

1 AUDIT FEE

(CITY)

EA

2 AUDIT FEE (CRA) EA

3 AUDIT FEE (SVB

TENNIS CENTER)

EA

4 ACFR

PREPARATION

EA

5 STATE AFR

PREPARATION

EA

6 GASB 96 -

SUBSCRIPTION-

BASED

INFORMATION

TECHNOLOGY

ARRANGEMENTS

(SBITA)

EA

7 GASB 87 - LEASE

ACCOUNTING

STANDARD

EA

8 OPTIONAL

ADDITONAL

SERVICES

EA

5. EVALUATION CRITERIA & RANKING PROCESS

A. General Ranking. The evaluation and ranking of all Competitive responses received shall be accomplished utilizing the criteria described in this Section.

B. Selection Criteria. All responses shall be equally evaluated with respect to the completeness of the data provided, support for all claims made, and the overall approach taken. The following criteria shall be utilized in the evaluation of the response.

No. Evaluation Criteria Scoring Method Weight (Points)

1. Experience and Qualifications of Firm Points Based 15 (15% of Total)

2. Project Approach Points Based 40 (40% of Total)

3. References and Other Considerations

References may be called regarding the level of satisfaction with services rendered by the by the proposing firm, its technical ability, cost, education of and presentation to Governing bodies.

Points Based 20 (20% of Total)

4. Pricing Proposal Points Based 25 (25% of Total)

6. RESPONSE PACKAGE CRITERIA

6.1. TABLE OF CONTENTS

A. Materials shall be arranged in the order indicated on the TABLE OF CONTENTS.

B. Responses should be page numbered to indicate the location for each of the listed items.

6.2. Technical Response

All bid submission shall be made through the City's e-Procurement Portal located at https://procurement.opengov.com/portal/zephyrhillsfl. Firm's response must contain the following:

A. Table of Contents

B. Cover Letter

C. Responses to the proposal submittal and requirements

D. Resumes

E. Licenses

F. Online Addenda Acknowledgement

7. ADDITIONAL CONDITIONS

The Owner reserves the right to reject any or all Responses received. The Owner is not obligated to request clarifications or additional information but may do so at its discretion. The Owner reserves the right to extend the deadline for submittals.

7.1. Confidentiality of Documents

Upon receipt of a response to the Owner, the response shall become the property of the Owner without compensation to the proponent, for disposition or usage by the Owner at its discretion.

7.2. Equal Employment Opportunity

During the performance of this Contract, the Firm/Vendor agrees as follows: The

Firm/Vendor/Subcontractor will not discriminate against any employee or applicant for employment because of race, creed, color, sex, or national origin in any of its employment practices, or procurement practices with respect to the work force of the firm, or procurement services in connection with these projects.

7.3. Event of Tie

In the event of a tie, if one of the businesses involved in the tie is a minority or female owned, they shall be ranked above the other firm or firms involved in the tie.

7.4. Joint Venture

The Owner does not desire to enter into "joint-venture" agreements with multiple Construction

Management Firms.

7.5. Audit Selection Committee

The Audit Selection Committee desires to review information on the firm's major consultants/contractors. The firm is requested to name principal consultants/contractors and submit qualifications, including therein all of the information requested of the fir..

8. VENDOR REQUIREMENTS AND ACKNOWLEDGEMENTS

8.1. FEIN Number*

Enter FEIN Number

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8.2. Are you a Parent Company?*

Please verify whether you are a Parent Company

☐ Yes

☐ No

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When equals "Yes"

8.2.1. Parent Company Name*

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When equals "Yes"

8.2.2. Former Parent Company Information, if any*

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*Response required

8.3. Firm Principal Information*

Enter Name/Title/Phone Number of two Principals in the firm.

*Response required

8.4. Present Office Locations and Number of Personnel*

Enter Present Office locations, City/State/Number of personnel for each

*Response required

8.5. Request for Proposal Confirmation*

PROJECT IDENTIFICATION NUMBER: 2025-010

PROJECT NAME: Professional Audit Services

RFQ DEADLINE: Friday, September 5, 2025, 10:00 am

The undersigned, hereby declares that no person or other persons other than the undersigned are interested in this RFP, as Principal, and this response to request for qualifications is made without collusion with others; and that we have carefully read and examined the specifications, and with full knowledge of all conditions under which the services herein is contemplated must be furnished, hereby proposed and agree to furnish this service according to the requirements set out in the specifications for said purchase and service.

☐ Please confirm

*Response required

8.6. Will you be using subcontractors/consultants?*

☐ Yes

☐ No

*Response required

When equals "Yes"

8.6.1. Subcontractors or Subconsultants for this project.*

Please download the below documents, complete, and upload.

• FIRM_DATA_SHEET_-_SUB-CONSU...

*Response required

8.7. Business References…