Request-for-Proposal-for-Audit-Services.pdf

Request for Proposal for Audit Services

Date: March 31, 2025

Due Date: Friday, April 11, 2025, by 5:00 p.m.

Dear Managing Partner:

Enclosed is the Town of Fuquay-Varina’s request for proposal for audit services. The Town of Fuquay-

Varina is seeking proposals from qualified auditors for the project entitled “Selection of the Independent

Auditor”. Enclosed are our specifications and bid proposal covering this work. Please review these documents carefully and the forms provided to submit your bid. All proposals are to be received by email or mail no later than Friday, April 11, 2025, by 5:00 p.m. Each proposal should be clearly marked: “RFP – Audit Services.”

These materials should be mailed or delivered to:

Town of Fuquay-Varina

Attention: Nicole Stevens, Assistant Finance Officer

RFP – Audit Services

134 N. Main Street

Fuquay-Varina, NC 27526

Email Address: nstevens@fuquay-varina.org with the subject line “RFP – Audit Services.”

*** Facsimile submissions will NOT be accepted***

Should you have any questions, please contact:

Nicole Stevens

Assistant Finance Director

Phone (919)552-1425

Email nstevens@fuquay-varina.org

NOTICE

Proposals will be received by the Town of Fuquay-Varina, until 5:00 p.m. Friday, April 11, 2025, in the

Finance office, 134 N. Main Street, Fuquay-Varina, NC, 27526 at which time they will be considered for the following:

RFP – Audit Services

The right is reserved to reject any or all bids and to waive all informalities concerning bid, or award bid to the lowest responsible bidder or bidders, taking into consideration quality, performance and the time specified in the proposals before the performance of the contract. Late proposals will not be accepted.

Request for Proposal – Audit Services

For purchasing division processing, please provide your company’s Federal Employer Identification

Number or alternate identification number (e.g. Social Security Number). Pursuant to North Carolina

General Statute 132-1.10(b) this identification number shall not be released to the public. This page will be removed and shredded, or otherwise kept confidential, before the procurement file is made available for public inspection.

This page is to be filled out and returned with your bid.

Failure to do so may subject your bid to rejection.

ID Number:

Federal ID Number or Social Security Number

Vendor Name

“All bidders are hereby notified that they must have the proper license as required under the North Carolina laws. All prospective contractors shall be responsible for complying with state law and local ordinances.”

TOWN OF FUQUAY-VARINA, NORTH CAROLINA

REQUEST FOR PROPOSALS

AUDIT SERVICES

The Town of Fuquay-Varina (hereinafter called the “Town”) invites qualified independent auditors who have sufficient governmental accounting and auditing experience in performing an audit in accordance with the specifications outlined in this Request for Proposal (RFP) to submit a proposal.

There is no expressed or implied obligation for the Town to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

The specific details shown herein shall be considered minimum unless otherwise shown. The specifications, terms and conditions included with this RFP shall govern in any resulting contract(s) unless approved otherwise in writing by the Town. Bidder consents to personal jurisdiction and venue in a state court of competent jurisdiction in Wake County, North Carolina.

SCOPE OF AUDIT

1. The audit shall be performed in accordance with the laws and regulations of the State of North Carolina, which include requirements for the minimum scope of the Town’s audit. The audit firm shall comply with generally accepted auditing standards as required by the American Institute of Certified Public Accountants and Government Auditing Standards, July 2018 revisions, issued by the Comptroller General of the United States. The audit firm shall apply auditing procedures necessary to render an opinion as to the general-purpose financial statements, taken as a whole, in conformance with generally accepted accounting principles. By accepting this engagement, the Auditor warrants that he has met the requirements for a peer review and continuing education requirements as specified in Government Auditing Standards.

2. The scope of the audit and all fee quotes presented should include all approved and known pronouncements through the date of proposal submission. This includes but is not limited to Governmental Accounting Standards Board statements and Government Auditing Standards.

Although some pronouncements will not be in effect until after the first year of the audit, estimates for future years should include pronouncements that will become effective during that contract period. The audit firm will be expected to advise appropriate Town staff on the applicability of accounting and reporting standards as they become effective.

3. The financial audit opinion will cover the financial statements for the governmental activities, the business-type activities, each major fund, and the remaining fund information, which collectively constitutes the basic financial statements. The combining and individual financial statements, schedules, and related information are not necessary for fair presentation, but will be presented as additional analytical data. This supplemental information, as required by GASB 34, will be subjected to the tests and other auditing procedures applied in the audit of the basic financial statements, and an opinion will be given as to whether the supplemental information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The auditor shall express an opinion on the budgetary comparison information for the General Fund, the major funds, and any annually budgeted special revenue funds. An opinion will not be given on the Management Discussion and Analysis.

The working papers shall be retained and made available upon request for no less than three years from the date of the audit report.

In the event that circumstances arise during the audit that require work to be performed in excess of the original estimates, any additional costs will be negotiated prior to commencement of the work and an amended contract will be approved by the governing board and forwarded to the staff of the Local Government Commission (LGC) for approval.

The audit will also include the following:

a. Pre-planning conference with Finance staff in April/May timeframe to discuss their expectations of the audit.

b. Interim audit work completed prior to June 30th.

c. Attendance at Town Board meeting in November or December for presentation of the financial statements by Town staff with comments and potential questions from Board as requested.

4. The compliance audits, in addition to the above requirement, shall comply with the requirements of Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards (Uniform Guidance), State Single Audit Implementation Act; and all other applicable laws and regulations. As part of the compliance audit, the auditor will be responsible for the completion and submission of the Data Collection Form to the designated federal clearing house and will provide an original and copy to the Town.

5. The audit should encompass all funds and entity-wide activities as reported in the Town’s Annual Comprehensive Financial Report (ACFR) on June 30, 2024, and any additional funds or entity-wide activities that may be added subsequent to that date.

6. If required, the audit firm will issue a management letter to the Town Council after completion of the audit and assist management in implementing recommendations, as is practical. Town staff also request that an informal letter be addressed to the Finance Director with any efficiency, internal control or accounting improvements that could be made based on the audit staff’s observation during their fieldwork. All content must be discussed with the Finance Director and/or Assistant Finance Director prior to issuance.

7. The Town staff may require the auditor’s guidance or input on the completion of certain schedules/documents as to proper format and content, so that they can be used in the audit process as well as inclusion in the Town’s financial statements. Guidance may be required for new note disclosures, all outstanding and effective authoritative standards and other reporting requirements at June 30 year-end. Cost for providing these services should be included in the auditor’s base fee quote and will not be considered extra for additional billings. In cases, however, where services requested would require a more in-depth scope and require work significantly above the original fee quote, such additional fees must be negotiated prior to commencement of work.

8. Guidance may be requested for all approved GASB standards and implementations, as well as other reporting requirements of the LGC and GFOA Certificate of Achievement for Excellence in Financial Reporting program. These services will be included in the base proposal.

9. Submission of the ACFR and all associated documents and forms to the LGC will be included in the base proposal.

AUDITOR REQUIREMENTS

1. The audit firm is considered to be an independent contractor and will be wholly responsible for the services and the supervision of its employees and permitted sub-contractors.

2. A planning meeting will be held each year to determine schedules that the Town will be responsible for preparing. Estimated time frames will be established and interim audit work will be planned. Adequate notification will be given prior to any changes in estimated times.

3. Meeting LGC deadlines is a high priority for the Town. Therefore, auditor reviews, comments and the financial opinion should be turned in to Town staff by the third week of October to make the LGC deadline of October 31. If the Town is unable to fulfill commitments outlined below, the timeframe will be appropriately extended.

4. Meeting LGC deadlines is a high priority for the Town. Therefore, the Town prefers interim fieldwork be completed by June 30th. Year-end fieldwork should begin by or before mid-August and be completed by late September. An agreed upon post-closing trial balance must exist by September 15th. The Finance Director will expect a listing of requested information needed for the audit at the preplanning conference, periodic conferences during the conduct of the audit, as well as an exit conference prior to the completion of fieldwork. The timing of the draft and review should insure final completion of the Financial Statements by the LGC deadline of October 31st. If the Town is unable to fulfill commitments outlined below, the timeframe will be appropriately extended.

5. Fifteen (15) copies of each audit report, management letter, and other applicable reports must be supplied to the Finance Director within the time frame cited above. In addition, the auditor is responsible for completing the required data input sheet and electronically submitting the ACFR to the Local Government Commission.

6. In addition, the auditor is responsible for complying with the requirements of the LGC for submitting the audit and all associated documents and forms as required for the year under audit when (or prior to) submitting the final invoice for audit services rendered to the Commission

7. The working papers shall be retained and made available upon request by the Town in accordance with North Carolina General Statute 159-34.

8. It is expressly agreed and understood that the auditor shall not at any time publicly disseminate any information concerning the agreement or scope of work outlined in the agreement without prior approval from the Town. Such approval will not be unreasonably withheld but may be given with certain stipulations, such as Town participation in the creation of the public product or Town review and the option to refuse ultimate release of the final product should it fail to meet the Town’ standards and goals. Public dissemination includes but is not limited to electronic, video, audio, photographic or hard copy materials serving as, in whole or part, professional papers or presentations, news releases, articles or other media products, and/or auditor business collateral pieces.

9. Liability insurance shall be maintained by the audit firm at all times during the term of the audit contract and during any extension thereof as follows: general liability insurance in the amount of

$1,000,000 per occurrence/ $2,000,000 aggregate, workers’ compensation with statutory limits and employer’s liability of $1,000,000 per occurrence, professional liability of no less than $1,000,000 per occurrence, or umbrella coverage in the amount of $1,000,000 per occurrence, which may be used if a policy is under the stipulated minimum, to provide the additional amounts needed to make the policy minimum. The Town shall be furnished with evidence of such insurance on an annual basis with copies of certificates accompanying the annual audit contract.

The Town shall receive a thirty-day prior written notice of any reduction in coverage or cancellation of such insurance. The Town shall be listed as an additional insured party under the firm’s general liability policy.

10. The LGC deadline of October 31 for the submission of the financial statements is a required deadline. Although Finance staff is responsible for the compilation of the financial statements, all auditor fieldwork must be completed, and opinions must be received in a timely manner in order to ensure adherence to this state mandate.

11. Either the manager or partner of the audit staff is required to attend the Town Council meeting in which the ACFR is presented. Required communications to the Council can be delivered at this point, as well as general comments regarding the audit process and the results of the audit.

Finance staff will coordinate this presentation and determine the date and time of the meeting, typically held in November or December following the audit completion.

OTHER SERVICES

If needed, the auditor will prepare the audited financial statements (or Annual Comprehensive Financial

Report) which will include the preparation of the GASB conversion entries. The auditor will submit a draft for review by the Finance Director. The Finance Director will return the draft with proposed revisions within 15 working days. In addition, if needed, the auditor will complete and submit the necessary Single Audit information to the Federal Audit Clearinghouse on behalf of the Town.

TOWN STAFF ASSISTANCE AND RESOURCES

1. Town staff will coordinate with audit staff with the goal of providing all necessary financial and compliance information (trial balance with adjusting journal entries in final form) for all funds.

The Town expects to deliver a draft ACFR report to the audit staff by October 15th. If the Town is unable to provide schedules/documents by the agreed upon time, the above time frame will be appropriately extended and coordinated between Town staff and audit staff. Certain sections of the ACFR may be completed and submitted prior to the October 15th date to aid in testing.

2. All financial statements, schedules, and notes to the financial statements (except the Schedule of Findings and Questioned Costs, Corrective Action Plan and Summary Schedule of Prior Year Audit Findings in the compliance section) will be drafted by Finance Staff.

3. A planning meeting will be held each year between Town staff and auditors to determine schedules that the Town will be responsible for preparing. Estimated timeframes will be established. Adequate notification by either party will be given prior to any changes in estimated times.

4. To the extent possible, Town Staff will prepare schedules and ensure supporting documentation is available as part of the audit effort. All journal entries will be prepared by Town Staff.

5. Space will be made available for audit staff fieldwork.

CONTRACT PERIOD

The Town intends to continue the relationship with the auditors for no less than three years starting with the fiscal year ending June 30, 2025. The Town is requesting bids for a three-year period on the basis of an annual negotiation after the completion of the first-year contract. Each year after negotiation has taken place an annual contract documenting the terms of the audit will be signed. Since the Town cannot bind future decisions of the Town Board, it is anticipated that the firm selected will serve as the Town’s auditors and will be retained for the entire three-year period. It is requested that proposals be prepared for the following years, with year one being the only obligated year:

July 1, 2024, to June 30, 2025 July 1, 2025, to June 30, 2026 July 1, 2026, to June 30, 2027

TIME SCHEDULE & PROPOSAL SUBMISSION

1. Summary schedule:

RFP Release Date March 31, 2025 (Monday)

Deadline for RFP Questions April 7,2025 (Monday) by 5:00 pm

Deadline for Receipt of Proposals April 11, 2025 (Friday) by 5:00 pm

*Any questions should be direct to Nicole Stevens at nstevens@fuquay-varina.org.

2. Proposals must include information as presented in the required components of audit proposal and must be signed by an authorized representative. Fee quotes must be submitted using the summary of audit cost sheet included. Proposals and quotes submitted otherwise will not be acceptable. All proposals will become the property of the Town and will not be returned. The specific details of all proposals become public information upon their receipt and acceptance by the Town.

3. Proposals must be received no later than 5:00 pm on Friday, April 11, 2025. Proposals should be clearly marked “Response to Auditing Services RFP”. Late proposals will not be accepted.

4. Proposals can either be submitted electronically (email) to nstevens@fuquay-varina.org or on paper by April 11, 2025, by 5:00 pm.

Envelopes containing proposals on paper should be clearly identified on the front with the words

“RESPONSE TO RFP FOR AUDIT SERVICES”.

Please note your electronic submission via email should include two separate pdf attachments for sections 1 and 2.

o Envelopes should include three (3) copies of the bound proposal (clearly separating section 1 and 2) and be delivered to

Town of Fuquay-Varina Finance Department – RFP – Audit Services 134 N. Main Street Fuquay-Varina, NC 27526 Attn: Nicle Stevens, Assistant Finance Director

AUDIT CONTRACT & PAYMENT OF SERVICES

The required current revision of the form “Contract to Audit Accounts” (Form LGC-205) is required to be executed as the contract document; however, the Auditor and the Town may also execute an engagement letter and/or a Town contract to include additional terms not addressed in the LGC-205. The entire audit contract must be approved by the staff of the LGC. Invoices are subject to approval by the Town staff and Local Government Commission (LGC) prior to processing payment by the Town. Interim or progress billings will be accepted up to 75% of the total fee prior to submission of the final audited financial statements to the staff of the LGC. The final 25% of the audit fees (final invoice) will be paid when the financial statements, single audit (if applicable), management letter, and amended contract (if applicable) have been reviewed or approved by LGC.

Requests for payment related to the agreed upon procedures do not require LGC approval. Final invoices for these services will be paid after the final report results and findings have been reviewed by Town staff.

SELECTION PROCESS

Potential respondents should email nstevens@fuquay-varina.org to acknowledge receipt of the RFP and to inform the Town of its intent to submit a proposal. Provide the name, title, address, telephone number and email address of the individual who can address inquiries related to this RFP and the respondent’s proposal.

Town Staff will evaluate proposals and make the audit firm recommendation to management and Town Board. Staff’s recommendation will be presented to Town Board, for final acceptance and approval. The selected audit firm is not required to be present at this meeting.

Proposals will be submitted in two sections. The first section will be comprised of the audit firm’s prior experience and qualifications of its personnel in performing governmental audits. Town staff will evaluate the auditor/firm on educational and technical qualifications. The top five firms from the first section will have their second section opened and evaluated. The firm best meeting the Town of Fuquay- Varina’s expectations for experience, audit approach and cost requirements will be selected.

Please keep in mind that cost, while an important factor, will not be a sole determining factor. Unusual low bids that are obviously out of line with other bidders or are significantly lower than our current fees will raise concern. The lowest bid will not automatically be awarded preferential consideration.

The Town of Fuquay-Varina requests that no Town of Fuquay-Varina Official be contacted during this process.

All communications between the Town and prospective Auditors regarding this RFP shall be in writing.

Any inquiries, requests for interpretation, technical questions, clarification, or additional information shall be directed to Nicole Stevens, Assistant Finance Director, at nstevens@fuquay-varina.org. Any additional information disclosed to participating audit firms prior to bid submission will be shared with all audit firms who have submitted their intent to bid and contact information. All questions shall be received no later than 5:00 pm, Monday, April 7, 2025.

The Town reserves the right to reject any or all bids, waive technicalities and to be the sole judge of suitability of the services for its intended use and further specifically reserve the right to make the award in the best interest of the town.

Failure to respond to any requirements outlined in the RFP, or failure to enclose copies of the required documents, may disqualify the bid. Firms must be registered with the North Carolina State Board of CPA Examiners and registered with the North Carolina Secretary of State (or hold a certificate of authority to do business in the State of North Carolina). Three (3) copies and one (1) PDF of the proposal should be submitted at the time and place indicated under the section entitled “Time Schedule for Awarding Contract.”

Section 1 - Profile of the Firm

The first section should address the requested information below. The corresponding responses should begin with the number below for the requested information.

1. Indicate the audit firm’s North Carolina office location(s) that will manage the audit.

2. Indicate the number of people (by level) located within local office that will handle the audit.

3. Provide a list of local office’s current and prior government audit clients, indicating the type(s) of services performed and the number of years served for each. Responsive firms should include any relevant information regarding audits performed on financial statements prepared under the new reporting model.

4. Indicate the experience of the local office in providing additional services to government clients by listing the name of each government, the type(s) of service performed and the year(s) of engagement.

5. Describe your audit organization’s participation in AICPA-sponsored or comparable quality control programs (peer review). Provide a copy of the firm’s current peer review.

6. Describe the professional experience in governmental audits of each senior and higher-level person assigned to the audit, the years on each job and his/her position while on each audit.

Indicate the percentage of time each senior and higher-level personnel will be on site. Again, relevant experience with the new reporting model should be clearly communicated.

7. Describe the relevant educational background of each person assigned to the audit, senior level and higher. This should include seminars and courses attended within the past three years, especially those courses in governmental accounting and auditing.

8. Describe the professional experience of assigned individuals in auditing relevant government organizations, programs, activities, or functions (e.g., utilities, solid waste, transit, Powell Bill, building inspections, DOT grants, American Rescue Plan Act funding, State Capital and Infrastructure Fund grant).

9. Describe any specialized skills, training, or background in public finance of assigned individuals.

This may include participation in State or national professional organizations, speaker or instructor roles in conferences or seminars, or authorship of articles and books.

10. Provide names, addresses, and telephone numbers of personnel of current and prior governmental audit clients who may be contracted for a reference.

11. Describe the firm’s Statement of Policy and Procedures regarding Independence under Government Auditing Standards (Yellow Book “July 2018 revision”). Provide a copy of the firm’s Statement of Policy and Procedures.

12. Is the firm adequately insured to cover claims? Describe liability insurance coverage arrangements.

13. Note if your firm is an equal opportunity employer.

14. Describe any regulatory action taken by any oversight body against the proposing audit organization or local office.

15. Comment on your knowledge of and relationship with the NC Local Government Commission and the University of North Carolina School of Government in Chapel Hill.

Section 2 – Audit Approach

Proposals should include completed cost estimate sheets and any other necessary cost information in a separate, sealed envelope marked – “Cost Estimate.” The town plans to evaluate the qualifications of all firms submitting proposals before considering the Cost Estimate.

This section should consist of completed cost estimate sheets, which will include the following information:

1. Type of audit program used (tailor-made, standard government or standard commercial).

2. Use of statistical sampling.

3. Use of automated processes and internal control testing methods.

4. Use of computer audit specialists.

5. Organization of the audit team and the approximate percentage of time spent on the audit by each member.

6. Information that will be contained in the management letter.

7. Assistance expected from the government’s staff, if other than outlined in the RFP.

8. Tentative schedule for completing the audit within the specified deadlines of the RFP.

9. Specify cost using the format below for the audit year July 1, 2024, to June 30, 2025. For the subsequent audit years list the estimated costs. The cost of the audit year ending June 30, 2025, is binding, while the following years are estimated costs. Cost estimates must indicate the basis for the charges and whether the amount is a “not-to-exceed” amount.

A. Personnel costs – Itemize the following for each category of personnel (partner, manager, senior, staff accountants, clerical, etc.) with the different rates per hour.

i. Estimated hours – categorize estimated hours into the following:

1. Interim - on-site work or virtually

2. Year-end - on-site work or virtually

3. Work performed in the auditor’s office.

ii. Rate per hour.

iii. Total cost for each category of personnel and for all personnel costs in total.

B. Travel – itemize transportation and other travel costs separately.

C. Cost of supplies and materials –itemize.

D. Other costs – completely identify and itemize.

E. If applicable, note your method of determining increases in audit costs on a year to year basis.

10. Please list any other information the firm may wish to provide.

DESCRIPTION OF TOWN SYSTEMS AND FINANCIAL INFORMATION

1. Reference should be made to the most recent ACFR for a general overview of the Town, including the number of employees and size of the Town. In addition, this is suggested so that the auditor/firm can obtain a basic understanding of the basis of accounting, system of budgetary control, number and type of funds used and other pertinent financial information.

2. Other general information can be accessed on the Town’s website at Annual-Comprehensive- Financial-Report---June-30-2024-PDF

TOWN INFORMATION

Fuquay-Varina was incorporated in 1909 and is located between the piedmont and coastal plain areas of

North Carolina. It is a thriving community located just 14 miles south of the State Capital Raleigh.

Fuquay-Varina has approximately 16.2 square miles within its borders which is approximately 30% expansion of the Town footprint due to voluntary annexations. The Town’s population is 43,817, which is a growth of 75% since 2013. With the increasing number of Single Family and Multi-family Home

Certificates of Occupancy, growth is expected to continue.

Fuquay-Varina operates under a Council-Manager form of government. The Town Board is a six-member governing board and is comprised of the mayor and five At-Large members. Each of the board members serve four-year staggered terms. The mayor is elected every two years. The Board members serve as the

Town’s policy making body, responsible for adopting an annual balanced budget, establishing legislative direction for the Town, and hiring a professional Town Manager to serve as chief executive and direct the daily activities and operations of the Town’s departments. The Town Board makes extensive use of appointed boards and committees in the development of policy decisions.

The Town provides its citizens with a full range of services, including police and fire protection, recreational activities, land use development, solid waste collection and disposal, general administration and management, and the construction and maintenance of streets, curbs, gutters, sidewalks, water lines, sewer lines and other infrastructure. This report includes all the Town’s activities in delivering and administering these services.

The Fuquay-Varina Town Board is required to adopt a balanced annual operating budget by July 1 of each year. The Town is empowered to levy a property tax on both real and personal property located within its boundaries. The Town’s budget ordinance creates a legal limit on spending authorizations and serves as the foundation for Fuquay-Varina’s financial planning and control. The Town Manager is authorized by the budget ordinance to make certain limited transfers within funds to facilitate budget execution consistent with Board’s intent.

GENERAL INFORMATION

1. The Town utilizes a variety of banking services, most of which are conducted electronically. Services include, but a not limited to:

a. Investment safekeeping

b. On-line banking

c. Direct deposit for payroll and accounts payable

d. Direct drafts

e. On-line and in-house merchant services (credit card acceptance)

f. Use of procurement cards

2. Bank reconciliations are performed on a monthly basis for each of the approximate 5 bank accounts, which include a detailed reconciliation of deposits and disbursements.

3. The Town has several cash collection sites that include payments for utility bills, permits, development fees and parks and recreation fees. Credit card payments are accepted, including on-line receipts.

4. The Town uses various methods for paying vendors and making other disbursements, including in-house checks, procurement cards, ACH, and wire.

5. The Town uses New World Systems that is designed for governmental entities and covers all of the financial related modules and most of the integrated modules.

FUNDS

The Town of Fuquay-Varina maintains the following funds:

Governmental Funds o General Fund o Capital Reserve Fund o Debt Service Fund o Special Revenue Fund

State and Local Fiscal Recovery Fund – American Rescue Plan

Office of State Budget and Management – State Capital and Infrastructure

Fund (SCIF) Grant o Capital Project Fund

Public Buildings Projects

Information Technology Projects

Fire Projects

Street Projects

Planning/Zoning Projects

Economic Development Projects

Parks and Recreation Projects

Proprietary Fund o Enterprise Fund

Water and Sewer Fund

Water and Sewer Capital Projects

Water and Sewer Debt Service Fund

Water and Sewer Capital Reserve

System Development Fee Capital Reserve

Water and Sewer Capital Reserve

BUDGETS

The Town annual budget is adopted for general, special revenue and enterprise funds. All budgets are prepared using the modified accrual basis of accounting. All appropriations are made at the departmental level. The Town also maintains an encumbrance system. Both the budgetary and encumbrance systems are integrated with the accounting system to provide comparison with actual expenditures.

ACCOUNTING RECORDS

The Town maintains all its accounting records at the Finance Office locate at 134 N. Main Street, Fuquay-Varina, NC 27526. The governmental unit maintains its cash receipts journal, cash disbursements journal, general ledger, and accounts receivable ledger on the New World System.

SIZE AND COMPLEXITY OF UNIT

Personnel/Payroll Number of Employees 453 Frequency of Payroll Bi-weekly and Monthly Number of Payroll Direct Deposit Advices All employees Number of Departments 25

Property Tax Billed and Collected by Wake County Total dollar amount of most recent year’s collections $30,609,292

Total dollar amount of levy $30,600,267 Purchasing

Number of purchase orders issued: 1,296 Bank Accounts Central Depository 1

NC Capital Management Trust 1 Other bank account(s) to management debt payment drafts 1 Project escrow account(s) for unspent debt proceeds 2

New World Software System General Ledger

Accounts Payable Utility Management (Billing/Collections) Purchasing Fixed Assets Human Resources/Payroll Employee Self Service (ExecuTime for timesheet entry)

GRANTS, ENTITLEMENTS AND SHARED REVENUE

A copy of the Schedule of Expenditures of Federal and State Awards for the year ended June 30, 2025, is enclosed with this RFP. Also included is a Summary of Auditor’s Results showing the major programs for the prior year.

APPENDIX B – PROPOSAL SUBMISSION

RFP Audit Services

Submit with Proposal

This Proposal is submitted by:

Company Legal Name:

It is understood that the Town of Fuquay-Varina reserves the right to reject any and all proposals, to make awards according to the best interest of the County, to waive formalities, technicalities, to recover and re-advertise this project. Proposal is valid for 120 days. Proposal is submitted by an executive of the company that has authority to contract with the Town of Fuquay-Varina, NC.

Name:

Title:

Signature:

Date:

APPENDIX C – ADDENDUM AND ANTI-COLLUSION

RFP Audit Services

Submit with Proposal

Please acknowledge receipt of all addenda by including this form with your Proposal. Any questions or changes received will be emailed in interested parties as an addendum

Addendum No.

Date Emailed

I certify that this proposal is made in good faith and without collusion with any other offeror or officer or employee of Town of Fuquay-Varina.

Company Name:

Name:

Title:

Email Address:

Signature:

Date:

TOWN OF FUQUAY-VARINA, NORTH CAROLINA

SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS

YEAR ENDED JUNE 30, 2024

Grantor/Pass-Through Federal Pass-through Federal State Grantor/Program Title CFDA # Grantor's # Expenditures Expenditures Total

Federal Grants:

US Dept of Transportation Passed through NC dept of Transportation Highway Planning & Constrution

Sunset/Purfoy/Main Intersection 20.205 HL-0027 36,687 - 36,687 SE Judd Parkway Pedestrian project 20.205 BL-0054 41,639 - 41,639 North East Judd & Hw 55 20.205 HL-0042 9,651 - 9,651 SE Judd & S Main Intersection 20.205 HL-0041 1,660,857 - 1,660,857 Jones St Sidewalk 20.205 BL-0038 76,769 - 76,769 Downtown Fuquay-Varina Pedestrian Improvements 20.205 BL-0022 191,461 - 191,461 Hwy 401/Mill creek 20.205 HL-0028 1,111,158 - 1,111,158 Alston Ridge Greenway Proj 20.205 BL-0091 33,010 - 33,010

3,161,232 - 3,161,232

NC Deptment of Natural and Cultural Resources Division of Parks & Recreation NC PARTF Grant - Community Center 20.219 U-5530 500,000 - 500,000

US Dept of Justice Office of Justice Programs

Body worn Cameras 16.607 180,000 - 180,000 COPS Grant - Police Accreditation 15JCOPS-23-GG-02108-PPSE 13,380 - 13,380

US Dept of Homeland Security (FEMA) Passed through NC Dept of Environmental Quality - ARPA Asset Inventory SRP-SW-ARP-0078 288,600 - 288,600 ARPA Storm Water SRP-SW-ARP-0078 22,173 - -

Total Assistance - Federal Programs 4,165,385 - 4,143,212

| 131

FY 2025 FY 2026 FY 2027

Base Audit

(includes personnel costs, travel, on-site work, etc.)

2 Financial Statement Preparation

3 Extra Audit Services

4 Other (list and explain)

5 Other (list and explain)

TOTAL

Appendix A - Summary of Audit Costs Sheet

Submitted with Proposal

RFP for Auditing Services