RFP_2025-100_AnnualAuditingServices_MainBidDocument.pdf

Finance Department, Purchasing Division

100 N. Wilcox Street Castle Rock, Colorado 80104

Telephone: 720-733-2227 Finance | Castle Rock, CO - Official Website

REQUEST FOR PROPOSAL (RFP) NO. 2025-100

ANNUAL AUDITING SERVICES

SCHEDULE OF EVENTS

Bid Posting Date 08/27/2025

Deadline to submit questions 09/09/2025 @ 4:00 PM MST

City Responses Due 09/12/2025

Proposal Due Date and Time 09/17/2025 @ 3:00 PM MST

PROPOSAL CERTIFICATION

Vendor offers to furnish to Town of Castle Rock, Colorado the materials, supplies, products and/or services requested in accordance with the specifications and subject to the terms and conditions of the purchase(s) described herein:

COMPANY NAME:

ADDRESS: CITY: STATE:

ZIP: PHONE NUMBER: FAX NUMBER:

EMAIL:

BY:

(Printed or Typed Name)

(Written Signature)

TAXPAYER I.D. NUMBER:

Signature constitutes acceptance of all terms and conditions listed on this form and all documents attached.

https://www.crgov.com/1665/Finance https://www.crgov.com/1665/Finance

RFP No. 2025-100 Annual Auditing Services

Table of Contents

SECTION ONE ~ GENERAL INFORMATION

A. PURPOSE

B. SCOPE OF WORK

i. MANDATORY REQUIREMENTS:

ii. AUDIT ASSISTANCE

iii. REPORTS AND SPECIAL CONSIDERATIONS

iv. TOWN PROFILE

C. TERM

D. ANTICIPATED AUDIT DATES

E. GENERAL REQUIREMENTS

F. ROCKY MOUNTAIN E-PURCHASING (BidNet®)

G. VENDOR QUESTIONS AND REQUIREMENTS:

H. QUESTIONS, INQUIRIES, AND ADDENDUM

SECTION TWO ~ PROPOSAL CONDITIONS AND PROVISIONS

A. ETHICAL STANDARDS

B. NON-COLLUSIVE BIDDING CERTIFICATION

C. INDEMNIFICATION

D. INDEPENDENT CONTRACTOR

E. ASSIGNMENT OF PURCHASE ORDER OR CONTRACT

F. TERMINATION

G. EXAMINATION OF RECORDS

H. PRICE, PAYMENT, AND DELIVERY

I. TAXES

J. EXHIBITS

SECTION ONE ~ GENERAL INFORMATION

A. PURPOSE

Through this Request for Proposal (RFP), the Finance Department in coordination with the Town Manager of Town of Castle Rock, Colorado hereinafter referred to as the Town, requests proposals from responsible and qualified firms of Certified Public Accountants to perform the Town’s Financial Audit for the fiscal year ending December 31st annually.

B. SCOPE OF WORK

The audit will include the Federal Single Audit report and technical guidance associated with the preparation of the Annual Comprehensive Financial Report (ACFR). The audit shall be completed in accordance with generally accepted auditing standards, as included in the Statements of Auditing Standards published by the American Institute of Certified Public Accountants, the Government Auditing Standards published by the Comptroller General of the United States, and the Office of Management and Budget Audits of States, Local Governments, and Non-Profit Organizations. Respondents to this RFP should have extensive experience and qualifications in addition to a knowledgeable background.

i. MANDATORY REQUIREMENTS:

Failure to meet any of the mandatory requirements shall be ample cause for rejection of your proposal. The firm of Certified Public Accountants must represent the following:

a) The firm is independent as that term is defined in the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct.

b) The firm is licensed by the State of Colorado to perform an audit.

c) That supervision will be provided on a day-to-day basis and that the resulting work papers shall be adequate and shall be available for review by the auditors of the Federal, State, and Local Government.

d) All work papers and reports will be retained for a total of five (5) years, at the auditor’s expense, unless the firm is notified in writing by the Town of the need to extend the retention period.

e) The individuals who will be responsible for planning, directing, and reporting on the audit and who will be spending a substantial portion of the hours expended for the audit, shall complete (on an annual basis) continuing professional education programs in government accounting, auditing, financial reporting, and related subjects.

f) All responses must include a list of three (3) current Town Government references. All references shall include name, title, address, telephone number, and e-mail address. The failure to include references and/or the inability to contact the references shall be ample cause for rejection of your proposal.

g ) All respondents must submit written disclosure of any known potential conflicts of interest that may result during performance of the services listed herein.

h) List any and all legal disputes, mediations, arbitrations, and/or lawsuits in which your firm has been involved over the last five (5) years, and for each, include a description of all claims asserted, a synopsis of the underlying factual allegations, and a discussion of the status and/or outcome.

i) Colorado State Statute (Section 29-1-603, C.R.S.) requires that the audit report be submitted by the auditor to the local government within six months after the close of the fiscal year of the local government. The Government Finance Officers Association (GFOA) allows six months to submit the Annual Comprehensive Financial Report (ACFR) after the fiscal year-end.

ii. AUDIT ASSISTANCE

The extent and character of the audit services to be performed shall be subject to the general control and approval of the Town, primarily the Director of Finance, Assistant Finance Director, and the Town Manager.

The respondent must provide a detailed work plan describing the individual tasks to be performed and the relative scheduling of those tasks, including a detailed listing of resources, according to skill level. In addition, the respondent shall ensure a coordinated effort during the audit to openly communicate with the Director of Finance and the Assistant Finance Director, any potential problem areas and to provide regular progress reports.

Town staff and management personnel responsible will be available during the audit to assist in providing information, documentation, and explanations.

Town will provide a reasonable workspace, table, and chairs. The auditors will also be provided with access to wireless internet and photocopying.

iii. REPORTS AND SPECIAL CONSIDERATIONS

Reports to be issued:

• Federal Awards Report(s) in accordance with Uniform Guidance.

Special Considerations:

• The audit firm will provide technical guidance to the Town in the preparation of the Annual Comprehensive Financial Report (ACFR) and the Popular Annual Financial Report (PAFR).

• The audit firm will provide technical guidance to the Town regarding current and future GASB pronouncements.

• Data Collection Form.

iv. TOWN PROFILE

The Town is a local government established in 1881, home rule charter adopted in 1987. The Town has approximately 530 full-time employees and revenues of more than $183 million. The Town is located midway between Denver and Colorado Springs and encompasses 33 square miles. The Town is traversed by Interstate 25, is home to the Outlets at Castle Rock, Promenade at Castle Rock and is the seat of Douglas County. Castle Rock is home to slightly more than 87,100 people.

The Town provides a wide range of services that include law enforcement and public safety, planning and zoning, parks and open space, highways and streets, culture and recreation, water, sewer and stormwater, and general administrative services.

The Town operates under a council-manager form of government and is a Home Rule Municipality. The Town has six districts with a Town Council member elected from each district, and the Mayor at Large is also elected.

The Town Council employs a Town Manager to direct the day-to-day activities and functions of the Town.

All funds and all activities considered to be part of the reporting entity will be included. The Town maintains the following funds:

General Fund (*) (**) Capital Project Funds Enterprise Funds Special Revenue Funds Transportation Capital (**) Water (**)

Transportation (**) Parks and Recreation Water Resources (**) Conservation Trust Municipal Facilities Stormwater (**) Philip S. Miller Trust Fire Wastewater (**) Public Art Police Golf Police Forfeiture General Long-Term Planning Community Center Park & Rec Lodging Tax Internal Service Funds Development Services DDA TIF Employee Benefits Pension Trust Fund Castle Rock URA (***) Fleet FPPA Fire Volunteer Pension Festival Park Commons GID (***) Custodial Funds

Component Units - Discrete Add-On PIF Castle Rock DDA Special District Fee Miller’s Landing BID Use Tax Authority Development Fee

* General Fund (including Economic Development, Parking and TABOR excess funds) ** Major Fund *** Blended Component Unit

Town Council is charged with the responsibility of providing adequate budget appropriations to fund statutory functions, as well as responding to the service needs of the citizens. In turn, the Town Manager and Department Heads are charged with managing their authorized budgets to meet their statutory obligations and service demands as cost effectively as possible. Town Council is required to adopt a final budget by December 15th. The adopted budget becomes the Town’s annual financial plan and mechanism to control spending.

C. TERM

The term of this Agreement shall commence on the “Execution Date” to and including October 31, 2028. The Town shall have an option to renew this Agreement for two (2) additional one (1)-year periods under the same terms and conditions by a written amendment to this Agreement executed prior to the expiration of the Term.

This agreement and/or extension to the original period of a subject agreement shall be contingent upon vendor performance, annual funding being appropriated, budgeted, and otherwise made available for such purposes and subject to the Town’s unanimous satisfaction with the services received during the preceding agreement period.

D. ANTICIPATED AUDIT DATES

Interim Audit Week of December 8th Audit Plan + Client Assistance Schedule January 2026 Fieldwork April 20th (approximately 2-3 weeks) Draft Reports Week of May 25th or June 1st Audit Committee Presentation Week of June 1st or June 8th Final Report to Council (ACFR, PAFR and Single Audit Reports) June 16, 2026

E. GENERAL REQUIREMENTS

The Town reserves the right to reject any or all proposals, to waive formalities, informalities, or irregularities contained in the said proposal and furthermore, to award a contract for items herein, either in whole or in part, if it is deemed to be in the best interest of the Town to do so. Additionally, we reserve the right to negotiate optional items and/or services with the successful respondent.

All proposals submitted shall become property of the Town. All proposals shall include all of the information requested in this RFP and any additional data that the respondent deems pertinent to the understanding and evaluation of their proposal response. All proposals shall meet, at a minimum, all criteria outlined in the following sections. At the discretion of the Town, firms submitting proposals may be requested to make presentations as part of the evaluation process. The respondent should not withhold any information from their written response in anticipation of presenting the information orally, since oral presentations may not be solicited. The Town will not reimburse the respondents to this RFP for any costs associated with the preparation and submission of said proposals or in the preparation for and attendance at a presentation. The Town reserves the right to request any firm submitting a proposal to clarify its proposal or to supply additional information necessary to assist in the Town’s selection.

F. ROCKY MOUNTAIN E-PURCHASING (BidNet®)

The Town contracts with Rocky Mountain E-purchasing System (BidNet®) in the advertisement and facilitation of solicitations administered by the Finance Department Purchasing Division; therefore, respondents must ONLY rely on documents provided on the Rocky Mountain E-purchasing System (BidNet®) website or as communicated directly from the analyst.

Registration with BidNet® is available at NO CHARGE and allows Vendors access to view governmental bids posted on BidNet®; they offer an additional notification service option with an associated fee. All BidNet website/system questions must be addressed with BidNet Vendor Support at 800-835-4603, option 2.

Proposals shall be received ELECTRONICALLY ONLY through the Rocky Mountain E-Purchasing/BidNet System website at (https://www.bidnetdirect.com/colorado/town-of-castle-rock). It is the sole responsibility of the respondent to ensure that their response is received on time. Proposals will not be considered which are received after the time stated.

G. VENDOR QUESTIONS AND REQUIREMENTS:

All proposal responses must specifically address each of the following questions and be submitted with the ability to complete the work as described. To standardize the format of all proposals, vendors are required to respond to all questions in the order given and to list the item number and restate the question prior to giving their answer. Do not exclude any major or minor items of information not specifically mentioned, but which would normally and reasonably be provided. Please be advised that the greater the degree of specificity, the more likely it will be for the Town to review your response favorably. Proposal responses must include, but are not limited to, the following information:

a ) Provide a complete description of your firm to include the number of years you have been doing business in the State of Colorado and the prior experience you have had with the audits of similar-sized agencies.

b) Include a statement related to your complete understanding and compliance with all the general and mandatory requirements. Provide a detailed narrative of how your proposal intends to meet the objectives of the Town, as outlined, and your commitment to perform the work within the specified time period.

c) Identify the principal supervisory and management staff, including partners, managers, https://www.bidnetdirect.com/colorado/town-of-castle-rock supervisors, and specialists, to be assigned to the Town contract. Provide a resume for all staff members to be assigned on a full-time and part-time basis. Include education, government experience and membership in professional organizations relevant to the performance of this audit.

d) Provide a summary of the partnership that you envision with The Town. Include an illustrative narrative of what defines your company’s qualifications and sets you apart from your competitors.

e) Please describe your firm’s ability to provide a secure portal to transmit confidential Town documents. What measure would you take?

H. QUESTIONS, INQUIRIES, AND ADDENDUM

All questions related to this RFP must be submitted via email to the Purchasing Analyst named below. No attempts shall be made to contact any other Town employee regarding this solicitation.

Name: Christina Buster Email: cbuster@crgov.com

If it becomes necessary to revise any part of this RFP or if additional data is necessary to enable an exact interpretation of the provisions of this request, an addendum will be issued and posted on the Rocky Mountain E- Purchasing System. It is the responsibility of the respondent to ensure that they have received all addendums prior to submitting their RFP response.

SECTION TWO ~ PROPOSAL CONDITIONS AND PROVISIONS

All proposals must be submitted in accordance with all terms, conditions, specifications, and stipulations contained herein. Respondents shall carefully read and be familiar with all terms, conditions, specifications, and stipulations contained in this RFP, which shall become part of the final contract.

All proposals must be signed by a duly-authorized official of the respondent. The completed and signed proposal (together with all required attachments) must be uploaded to the Rocky Mountain E-Purchasing System before the due date and time shown on Page 1.

All participating respondents, by their signature hereunder, shall agree to comply with all of the conditions, requirements and instructions of this RFP as stated or implied herein. Any alteration, erasure or interlineation by the respondent in this RFP shall constitute cause for rejection by the Town. Exceptions or deviations to this RFP must not be added to the RFP pages and must be on company letterhead and accompany the proposal response.

All respondents are required to complete all the information requested in this RFP. Failure to do so may result in the disqualification of your proposal response.

Proposals shall be firm quotations subject to acceptance or rejection within ninety (90) days of the proposal’s opening date.

The Town reserves the right to negotiate optional items and/or services with the successful respondent.

The successful respondent will be required to provide proof of and the required limits of liability insurance, including Workers’ Compensation (see sample contract for coverage requirements). This proof of insurance must be in the form of a “Certificate of Insurance” and must show coverage in the amounts specified by the Laws of the State of Colorado for the duration of a contract issued as a result of this RFP. Additionally, the Town must be notified of any changes occurring in this coverage and the successful respondent must demonstrate to the Town that such changes do not in any way affect the minimum liability insurance required for this proposal.

All information submitted in response to this RFP may be subject to disclosure under the Colorado Open Records Act (CORA). Respondents are discouraged from providing information that they consider confidential and/or privileged as part of a response to this RFP. If any portion of your response is identified as proprietary and/or confidential, a redacted copy must be uploaded to the Rocky Mountain E-Purchasing System with your original response.

The successful respondent may be required, as a provision of this RFP, to submit proof of compliance with governmental health and safety codes, regulations and standards, as appropriate.

The Town reserves the right to waive any technical or formal errors or omissions and to reject any and all proposals, or to award a contract for the items herein, either in part or in whole, if it deems it to be in the best interest of the Town to do so.

No proposal shall be accepted from, and no contract will be awarded to, any person, firm or corporation that is in arrears to the Town, upon debt or contract, or that is a defaulter, as surety or otherwise, upon any obligation to the Town, or that has failed to attain or demonstrate compliance with any law, ordinance, regulation, or contract term or condition as may be provided for or required in any Town contract, or that may be deemed irresponsible or unreliable by the Town. The successful respondent may be required to submit satisfactory evidence that they have a practical knowledge of the particular work, as described, and that they have the necessary financial resources to perform and complete the work outlined in this RFP.

The successful respondent agrees to abide by all applicable laws, regulations and administrative rulings of the United States, the State of Colorado, and the Town, and shall secure all necessary licenses and permits in connection with this RFP.

This RFP requires a successful respondent to enter into a contract with the Town generally in the form attached hereto as the Sample Contract. The successful respondent will properly sign and furnish any documents that may be required by the Town within ten (10) days (unless a longer period is allowed by the Town) from the date of receipt of the final contract.

All respondents must take into consideration that only the Town’s contract will be used to memorialize the engagement that will result from this RFP. Respondents are responsible for reviewing the Town’s contract prior to submitting their proposal response. Any changes to the Town’s contract shall be requested by the respondent in their proposal; provided that the terms and conditions set forth in the Town’s contract shall take priority over and conflicting terms and conditions provided by the respondent.

A. ETHICAL STANDARDS

It shall be a breach of ethical standards for any person to offer, give, or agree to give any employee or former employee, or for any employee or former employee to solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other capacity in any proceeding of application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to any program requirement or a contract or subcontract, or to any solicitation or RFP therefore.

It shall be a breach of ethical standards for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher-tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order.

In the event that any gratuities or kickbacks are offered or tendered to any Town employee or representative, the proposal response shall be disqualified and shall not be reinstated.

B. NON-COLLUSIVE BIDDING CERTIFICATION

By submission of this proposal, the respondent certifies that:

a. The proposal has been arrived at by the respondent independently and has been submitted without collusion with any other respondent.

b. The contents of the proposal have not been communicated by the respondent; nor, to its best knowledge and belief, by any of its employees or agents, to any person not an employee or agent of the respondent or its surety on any bond furnished herewith, and will not be communicated to any such person prior to the official opening of this proposal.

c. No respondent shall submit more than one proposal, to include an alternate proposal or proposals, for this purchase.

C. INDEMNIFICATION

Indemnification by the Town:

The Town cannot lawfully agree to indemnify, hold harmless, exonerate or assume the defense of the respondent or any other person or entity whatsoever, for any purpose whatsoever.

Indemnification by the Respondent:

The successful respondent will agree to indemnify, defend, and hold harmless the Town, its officers, agents and employees from any and all claims, demands, suits, actions or proceedings of any kind or nature whatsoever, including Workers’ Compensation claims, in any way resulting from or arising out of any services performed pursuant to any contract issued as a result of this RFP.

D. INDEPENDENT CONTRACTOR

The successful respondent will perform services as an independent contractor. Notwithstanding any provision of this Agreement, all personnel assigned by the respondent to perform work under this Agreement shall be and remain at all times, employees of the respondent for all purposes. THE INDEPENDENT CONTRACTOR IS NOT ENTITLED TO WORKERS’ COMPENSATION BENEFITS THROUGH THE TOWN AND IS OBLIGATED TO PAY FEDERAL

AND STATE INCOME TAX ON ANY MONIES EARNED PURSUANT TO THE CONTRACT RELATIONSHIP.

E. ASSIGNMENT OF PURCHASE ORDER OR CONTRACT

The successful respondent may not assign or otherwise transfer any of its rights or obligations under any contract made and entered into pursuant to the Town RFP without the prior written approval of the Town’s Finance Department.

F. TERMINATION

The Town reserves the right to terminate any contract issued as a result of this RFP with or without cause.

G. EXAMINATION OF RECORDS

The successful respondent will agree that the Town shall, until the expiration of three (3) years after the final payment under a contract issued as a result of this RFP, have access to and the right to examine any directly pertinent books, documents, papers and records of the respondent concerning the services performed pursuant to such contract.

H. PRICE, PAYMENT, AND DELIVERY

All proposals shall include the price sheet as a separate file with their submission. All pricing information relative to performing the audit as described shall be included. Proposals shall include the fee schedule, attached and incorporated herein as Exhibit 2. Pricing shall also be provided for “major programs”, there is currently one (1) major program. Professional fees and expenses should support the total all-inclusive maximum price. All out-of-pocket expenses for audit personnel (e.g., travel, meals, etc.) will be included in the all-inclusive maximum price.

All payment terms shall be “Net 30”; consideration will be given to any discounts offered for payments made earlier than “Net 30”, please explain in your RFP response.

I. TAXES

All price quotations shall reflect all applicable tax exemptions for the Town:

• Federal Registration Number: 84-6000761

• State Registration Number: 98-04428

J. EXHIBITS

The following exhibits will be incorporated into the resulting contract with the selected awardee.

• EXHIBIT 1 – SCOPE OF SERVICES

• EXHIBIT 2 – FEE SCHEDULE

• EXHIBIT 3 – CONSULTANT’S CERTIFICATE OF INSURANCE

EXHIBIT 2

AUDIT SERVICES FEE SCHEDULE

STAFF HOURS COST PER HOUR ($) TOTAL COST ($)

(Hours X

Cost per Hour)

Partners

Managers/ Directors

Supervisory Staff

Staff

TOTAL HOURS:

(SUM OF HOURS)

GRAND TOTAL ($):

(SUM OF TOTAL COST)

TOTAL PRICE FOR THE 2025 AUDIT, NOT TO EXCEED $

Extension Year #1, 2026 Audit Cost $

Extension Year #2, 2027 Audit Cost $

Extension Year #3, 2028 Audit Cost $

Extension Year #4, 2029 Audit Cost $

Cost per Major Program (there are usually one to two (1 to 2) major programs) $____________________ EACH