RFP_2-26.pdf

City of Cheyenne / Request for Proposal #2-26 / Audit Services

REQUEST FOR PROPOSAL (RFP 2-26)

for

Auditing the Annual Financial Statements of the City of Cheyenne, Wyoming and its Board of Public Utilities

Issued by:

City Treasurer’s Office

City of Cheyenne, Wyoming

Proposal Statements due:

February 26, 2026

3:00 PM

at:

City of Cheyenne

Purchasing, Attn: TJ Barttelbort

2101 O’Neil Avenue

Cheyenne, WY 82001

(307) 773-1045

REQUEST FOR PROPOSAL

for Auditing the Annual Financial Statements of the City of Cheyenne, Wyoming and its Board of Public Utilities for fiscal years ending June 30, 2026, 2027, and 2028

I. General Information

A. The City of Cheyenne (“City”) is seeking proposals for auditing services for the City and its Board of Public Utilities (“Board”).

B. Audits for the last three years of both the City and the Board have been performed by

MHP, LLP. An unqualified opinion was given on the financial statements for each of the last three years.

C. Copies of prior year audit reports are available from both the City and the Board upon request.

D. PROPOSAL SUBMISSION INSTRUCTIONS:

The City will utilize a two-step process for selection through this solicitation. This process dictates that proposers divide their submittals into two parts: a technical proposal and a price proposal.

E. PROPOSAL SUBMISSION FORMAT:

Proposers shall submit / upload their technical proposal and price proposal simultaneously on the date and time specified in this RFP, via the OpenGov e-procurement portal, as follows:

TECHNICAL PROPOSAL:

Upload via the e-procurement portal (1) TECHNICAL Proposal, in PDF format.

(Please merge all documents relating to your proposal into one single PDF document).

PRICE PROPOSAL:

Upload via the e-procurement portal (1) PRICE Proposal, in PDF format.

(Please merge all documents relating to your proposal into one single PDF document).

F. SELECTION / SCORING CRITERIA:

A selection committee, which may include members of the City's staff and possibly one or more outside experts, will screen and review all Proposals according to the weighted criteria set forth below:

PROJECT: Audit Services

CRITERIA DESCRIPTION WEIGHT

SCORE

(0 - 10)

TOTAL

Approach to audit quality

Proposal outlines an audit approach that is tailor based on obtaining an understanding of the City’s activities, operating systems, personnel, industry type

Firm’s technical ability

Satisfactory completion of audits of the type under consideration; auditing of similar entities.

Qualifications of proposed staff

Supervisory personnel are qualified to perform audit;

Geographic Location

Proximity to Cheyenne for timely fieldwork.

References

Proposer provides adequate reference documentation as required for three similar governmental audits (preferably those in Wyoming)

Resident Contractor

Firm is a Resident Contractor, registered with Wyoming Workforce Services (Yes 10

Points, No 0 Points)

Price Proposal Weighted Scale - Assigned Value 8

Total

SELECTION CRITERIA – PRICE/COST

Although each Firm’s submitted Price/Cost will be considered, it is not the sole factor for determination of Award. The City will use a weighted scale to assign points (Lowest cost = most points, highest cost = fewest points) for the Price Submission.

The firm with the lowest cost will receive a Score of 10. Each firm with the next lowest cost will receive a Score of 9, and then 8, and this will continue for all received proposals. If more than

10 proposals are received, the scores will be assigned so that all firms receive some points for this scoring criteria.

SELECTION CRITERIA

The selection committee may require selected Proposers to attend an interview process with members of the selection committee.

The City of Cheyenne reserves the right to reject any and all proposals, with or without cause, to waive any informalities or irregularities not involving price in any proposals received, to re-advertise for proposals, or take any other such actions and/or award contracts pursuant to this

RFP that may be deemed to be in the best interest of the City of Cheyenne. The City of

Cheyenne shall be the sole judge of the submittal that is in its best interest, and its decision shall be final. The City of Cheyenne also reserves the right and sole discretion to reject any response or proposal at any time on grounds that include, without limitation, either that a response is non-responsive to the RFP or is incomplete or irregular in any way, or that a solicitation response is not in the City of Cheyenne’s best interest. The City of Cheyenne also reserves the right to consider and rely upon factors other than pricing in its selection process.

All proposals received will be considered public information by the City of Cheyenne. Proposers are advised that any information considered by them to be trade secret, privileged or confidential data should not be revealed in the proposal. Contents of proposals received will be made available to anyone requesting them after the selection process has been completed and the contract has been awarded. The City of Cheyenne assumes no liability for the use or disclosure of technical or cost data submitted by any responding Proposer.

II. Description of Entity and Records to be Audited

A. The City of Cheyenne is a First-Class City with a population of 65,700 (2025 US Census estimate) and a 2025 fiscal year budget of $231,682,967 (as adopted by the Governing

Body). Budgeted expenditures by fund type are as follows:

General Fund $ 80,244,623

Special Revenue Funds 26,304,905

Capital Projects Funds 71,978,225

Internal Service Fund 7,578,336

Enterprise Funds 33,858,412

Permanent Funds 47,500

Fiduciary Fund 11,670,965

Total $ 231,682,967

Budgeted 2025 fiscal year expenditures for the Board total $88,848,960 and are as follows:

B. The City is currently using Harris ERP Innoprise Software for all financial applications. The

Board is currently using Tyler Technologies Munis Software.

C. The scope of the audit will include the following funds and federal expenditures:

City of Cheyenne Funds

General Fund

Special Revenue Funds (16)

Capital Projects Funds (5)

Internal Service Fund (1)

Enterprise Funds (4)

Permanent Fund (1)

Fiduciary Fund (3)

Board of Public Utilities Funds

Enterprise Funds (2)

Water Fund $ 60,844,315

Sewer Fund 28,004,645

Total $ 88,848,960

Expenditures of Federal Awards for fiscal year 2025 were as follows:

U.S. Department of Housing and Urban Development $ 472,899

U.S. Department of the Interior 16,661

U.S. Department of Justice 324,079

U.S. Department of Transportation 3,434,034

U.S. Environmental Protection Agency 608,984

U.S. Department of Energy 150,720

U.S. Department of Health and Human Services 88,816

Corporation for National and Community Service 248,949

U.S. Department of Treasury 3,154,058

U.S. Department of Homeland Security

U.S. Department of Agriculture

U.S. Department of Commerce

1,752,509

55,000

167,701

Total $10,474,410

The number of funds may vary depending on the need for additional funds or the consolidation of funds.

III. Nature of Services Required

A. The annual financial and compliance audits will be performed in accordance with

Generally Accepted Auditing Standards, Government Auditing Standards issued by the

Government Accountability Office (GAO Yellow Book, 2024 revision), and all prevailing federal, state and local laws and regulations including 2 CFR Part 200, Uniform

Administrative Requirements.

B. The City of Cheyenne and the Board will require audits for the fiscal years ending June

30, 2026, 2027 and 2028.

C. The City of Cheyenne will require non-audit services to draft the City’s financial and compliance report, including footnote disclosures and related supplementary information.

E. The Board will require non-audit services to draft their Annual Comprehensive Financial

Report (ACFR) including footnote disclosures and related supplementary information.

F. The financial statements for the City and the Board will be prepared as illustrated in

Governmental Accounting, Auditing, and Financial Reporting. The Board’s report will be submitted to the Government Finance Officers' Association for participation in the

Certificate of Achievement for Excellence in Financial Reporting program. The City and the Board will also require any other reports as stipulated by 2 CFR Part 200, Uniform

Guidance.

G. Management letters specifying audit findings and recommendations may be issued to the City and the Board. The management letter should include suggestions as to how the entities can improve their operations. The auditors may meet with the Finance

Committee of the City prior to field work to discuss any areas of concern regarding management policies and procedures or other areas the Committee would like addressed. Should those areas require a significant amount of time, additional fees for those procedures will be discussed at that time.

H. An exit conference will be held at the conclusion of the audits. The purpose of the conference is to discuss the audit report, internal accounting controls, and the management letter with the Audit Committee of the City and the Administration

Manager of the Board.

I. The auditors may be asked to present the report to City Council at a work session. The auditors will present the report of the Board to a regular meeting of the Board of Public

Utilities.

IV. Qualifications of the Auditor / Proposal Format

TECHNICAL PROPOSAL FORMAT:

The responding firm must provide:

A. An affirmation that the respondent is properly licensed for public practice as a certified public accountant in the state of Wyoming and as an accounting firm in the state of

Wyoming.

B. An affirmation that the respondent meets the independence requirements contained in

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

C. An affirmation that the respondent does not have a record of substandard audit work, is not involved in any lawsuits with any governmental entity, nor has been dismissed from an engagement with any governmental entity.

D. An affirmation that the respondent meets any other specific qualification requirements imposed by federal or state laws and regulations.

E. Resumes of key personnel, including the individuals assigned to this specific engagement, indicating their experience with similar engagements.

F. A listing of at least three similar audits, preferably in Wyoming, that have been performed by the firm within the last two years. Provide dates, firm/company/government name, name of contact, title and telephone number.

G. An affirmation that the respondent has complied with the educational requirements of

Government Auditing Standards.

H. An affirmation that the respondent has, or is currently in the process of having, a peer review performed per AICPA Standards for Peer Review or equivalent under Government

Auditing Standards (Yellow Book) 2024 revision.

I. If selected, the respondent m u s t agree to indemnify, hold harmless and defend the

City from and against any and all liabilities, claims, penalties, forfeitures and suits, and the cost and expenses incident thereto, including reasonable attorney fees, which may arise out of this engagement.

J. The respondent will be required to enter into an Agreement with the City of Cheyenne, and provide proof of the following insurance coverages prior to commencement of the engagement, if selected:

Commercial General Liability Insurance

For claims arising out of bodily injury, illness or death, or from damage to or destruction of property of others, including loss or use thereof, with minimum limits of $1,000,000 per occurrence, $2,000,000 aggregate for the entire term of the engagement, complying with W.S. § 1-39-101 et seq. for governmental immunity.

Workers' Compensation

Workers' Compensation coverage shall be in effect for the entire term of the engagement for all employees or agents providing services under the engagement. Respondent will provide the City and the Board with proof of workers' compensation or employer's liability insurance coverage.

Professional Liability Insurance

The respondent will provide proof of professional liability insurance or errors and omissions liability insurance in an amount not less than $500,000 to protect the City and the Board from any and all claims arising from the respondent's negligence in the performance of duties under the engagement. It is preferred that this liability insurance coverage be provided pursuant to an "occurrence" policy.

If this coverage is provided pursuant to a "claims made" policy:

(1) Respondent shall, concurrently with the execution of this

Engagement, provide the City and the Board with a certificate of insurance demonstrating that such coverage is or shall be in effect at the time the

Respondent begins the provision of services under this Engagement; and

(2) In the event the Respondent's services extend into a future policy period, the Respondent shall, prior to the policy expiration date, provide the

City and the Board with a new certificate of insurance demonstrating that such coverage is or shall be in effect during all periods of time that Respondent will provide services under this Engagement; and

(3) Respondent shall maintain said "claims made" coverage for a period of five (5) years following the last date that Respondent has provided services under this Engagement; and

(4) In the event the Respondent or the insurer terminates "claims made" coverage prior to the expiration of the periods provided in subparagraphs (1), (2), or (3) of this paragraph, the Respondent shall provide to the City and the

Board advance written notification of the termination of said coverage and shall provide the City and the Board with an endorsement for an extended reporting period ("tail coverage") which shall be in effect for a period of time not less than five (5) years following the last date that Respondent has provided services under this Engagement.

Additional Insurance Information

The Respondent shall name the City of Cheyenne and the Board of Public Utilities as Additional Insureds by endorsement on its insurance policies, with the exception of worker's compensation and professional liability insurance, and shall provide the City and the Board with a copy of the endorsements.

Respondent shall provide the City and the Board with certificates of insurance acknowledging the above-stated coverages prior to beginning any work under this Engagement.

PRICE PROPOSAL FORMAT

COST OF WORK

a. Cover Letter. Identify the proposer’s name, mailing address, telephone number and contact person(s). The letter must be signed by the proposer and should be limited to two (2) pages. Consortiums, joint ventures or teams submitting proposals, although permitted and encouraged, will not be considered to be responsive unless it is established that all contractual responsibility shall rest solely with one consultant or one legal entity, which shall not be a subsidiary or affiliate with limited resources. Each submittal shall indicate the entity responsible for execution on behalf of the team.

b. Provide a completed Appendix A, and Appendix B.

V. Government Assistance Available to the Auditor

A. Preparation of confirmations.

B. Preparation of trial balances for each fund.

C. Preparation of work papers and schedules as requested.

D. Pulling and filing of documents.

E. Assistance with photocopying or electronic transmission of documents.

F. Assistance in preparing the Annual Comprehensive Financial Report which would include the following:

1. Introductory section.

2. Management’s discussion and analysis.

3. Statistical section.

4. Schedule of Expenditure of Federal Awards.

G. The City and the Board will provide work areas which will allow easy access to the accounting records.

H. The staff of the City and Board will be available to provide information and answer questions.

VI. Other Proposal Information

A. Time schedules:

1. The anticipated schedule for the City for fiscal year 2026 will be as follows:

a. Legal Advertisement February 5&12, 2026

b. Question Submission Deadline February 12, 2026

c. Addendum Response Deadline February 17, 2026

d. Deadline for responses February 26, 2026

e. Review of responses March 11, 2026

f. Agreement placed on City Council for Referral March 23, 2026

g. Agreement at Finance Committee April 7, 2026

h. Committee recommendation to City Council April 13, 2026

i. Execute Professional Services Agreement April 14-17, 2026

j. Commence preliminary field work June 15, 2026

k. Commence end-of-year field work September 2026

l. Preliminary report due December 15, 2026

m. Final report due December 30, 2026

2. The additional anticipated schedule for the Board for fiscal year 2026 will be as follows:

a. Recommendation to Board March 31, 2026

b. Award engagement April 20, 2026

c. Commence field work Mid-August 2026

d. Preliminary report due September 2026

e. Final report due October 2026

f. Presentation to Board October 2026

3. This schedule will be set for each successive year of the engagement.

B. Contractual arrangements

1. The contract will run from June 1, 2026 through May 31, 2029, with annual renewal options.

2. The audit fee will be paid when the audit reports are delivered. Progress billings will be allowed as work progresses.

3. Any violation of contract provisions by the audit firm will be cause for immediate termination.

4. The audit firm shall be required to sign a Professional Services Engagement with the Board and agree to the terms and conditions therein.

5. The audit firm shall be required to sign an Auditing Services Engagement with the City.

C. The engagement will be awarded to the firm who is determined to be the best qualified to do the audit. Price is a consideration, but not the single selection criteria.

D. Working papers

1. The audit firm shall retain all working papers for a minimum of three years following the delivery of the audit report and shall make them available to any succeeding audit firm after the contract term ends.

2. Working papers will be available for examination by Federal and State auditors and the City and Board accounting staffs.

3. Copies of work papers may be requested by the City and the Board upon acceptance of the report.

4. A copy of the final report shall be made available to the City and the Board, upon request, in electronic format.

E. Prior to the submission of the completed reports, the audit firm's staff will review the drafts of the proposed reports and management letters with the City Treasurer, and the

Board's Administration Manager.

F. The audit firm will deliver twenty (20) copies of the audit report and twenty (20) copies of the management letter to the City, and twenty (20) copies of the audit report and twenty (20) copies of the management letter to the Board by the following dates:

Board of Public Utilities September 30, of each year

City of Cheyenne December 30, of each year

G. The respondents will submit the price engagement sheets (Appendix A, B and C) for each audit period. The maximum fee for each fiscal year audit for the City and the Board should be stated separately.

H. The City and the Board reserve the right to reject any and all proposals submitted and to request additional information from all proposers. Any award will be made to the firm which is the best qualified in the opinion of the City's Audit Committee. All proposals will become a part of the City's official files without any obligation on the City's part.

I. Any error or omission discovered in this RFP will be communicated to all prospective firms by the City. The communication will amend the RFP accordingly.

J. The City and the Board are subject to the Wyoming Public Records Act (the “Act”). Once a contract is awarded, all submitted proposals are subject to public disclosure under the

Act. Respondents should consider the implications of the Act when submitting their proposals.

If a proposal contains any trade secrets, privileged information, confidential commercial information, or confidential financial information that a respondent does not want disclosed pursuant to a public records request, respondent shall designate such information as Proprietary by marking each page containing such information with the words “Proprietary Information.” If the City and the Board receive a public records request for such Proprietary Information, the City and the Board will notify the respondent so that the respondent may take actions necessary to protect such information.

APPENDIX A

Price of Engagements

Entity: City of Cheyenne, Wyoming

2101 O’Neil Ave.

Cheyenne, Wyoming 82001

307-637-6336

Contact: Robin Lockman, City Treasurer

Firm Name:

Address:

City: State: Zip:

Telephone:

Price of Financial Audit

Fiscal Year Ending June 30, 2026 $

Fiscal Year Ending June 30, 2027 $

Fiscal Year Ending June 30, 2028 $

Total Price for All Fiscal Years $

Price of Single Audit

Drafting of the City’s Financial and Compliance Report

APPENDIX B

Price of Engagements

Entity: Board of Public Utilities

2416 Snyder Ave.

Cheyenne, Wyoming 82001

307-637-6466

Contact: Brad Bowen, Administration Manager

Firm Name:

Address:

City: State: Zip:

Telephone:

Price of Engagement:

Drafting of the Board’s Annual Comprehensive Financial Report