CITY OF WAUSAU

REQUEST FOR PROPOSALS

2025-2029

AUDITING SERVICES

October 17, 2025

Maryanne Groat Finance Director

Proposals Due: 12:00 Noon, Wednesday November 5, 2025

SECTION I - GENERAL INFORMATION

As required by the City’s procurement policy, the City of Wausau, Wisconsin, is requesting proposals for the services of a Certified Public Accounting Firm to conduct the annual financial and compliance audits of the City of Wausau’s operations for the calendar years ending 2025, 2026, 2027, 2028 and 2029. These audits are to be performed in accordance with generally accepted auditing standards and the standards set forth for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the provisions described in the U.S. Office of Management and Budget (OMB) Compliance Supplement, the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the compliance requirements described in the State Single Audit Guidelines, issued by the Wisconsin Department of Administration, statutory requirements, as well as City of Wausau policy.

The City has been satisfied with past audit services, and the incumbent firm is invited to propose.

1. INFORMATION ON THE CITY AND RECORDS

The City of Wausau is a municipal entity with a Mayor/Alderperson form of government. By City Charter the financial and accounting functions are under the direction of the City Finance Director.

The City reporting entity includes the Community Development Authority, which is classified as a discretely presented component unit, and the City-County Information Technology Commission, which is classified as a Joint Venture. In addition, the Community Development Authority manages Riverview Towers, LLC which is included in the Statement of Work summary.

The city also has one Business Improvement District, which is also included in the scope of work.

• The City’s operations have been audited by CLA (CliftonLarsonAllen LLP) since

2019.

• Copies of past financial reports, including ACFR, Budget Reports, Federal and State

Awards Reports, and Auditors’ Management Communication Reports, can be found on the City of Wausau website at https://www.wausauwi.gov/your-government/finance/annual-financial-reports

The Finance Department staffing is as follows:

Finance Director – Maryanne Groat – 30 years with the City Assistant Finance Director – Season Welle, MBA – 1 year with the City Revenue Accountant – Nicharee Kasamwat – 6 months with the City Enterprise Accountant – Monica Dvorak – 2 years with the City Payroll Accountant – Peggy Steinke – 11 years with the City Accounting Assistant – Jennifer Norton – 10 years with the City

The CDA staffing is as follows:

Executive Director – Randy Fifrick – 3 years with the City Assistant Director, Community Development Authority – Juli Birkenmeier – 12 Years at the CDA

The accounting records are centralized for all funds except the Community Development Authority and the City-County Information Technology Commission. The Authority accounting records are maintained at Riverview Towers, which is located at 550 E. Thomas Street, https://www.wausauwi.gov/your-government/finance/annual-financial-reports https://www.wausauwi.gov/your-government/finance/annual-financial-reports approximately four blocks from City Hall. The City-County Information Technology Commission is situated in City Hall but maintains separate accounting records.

The City received the Certificate of Achievement for Excellence in Financial Reporting for the years ending December 31, 1997, to 2019. The city intends to submit the 2025 financial statements to the GFOA financial reporting program. The city will prepare the introductory section, management’s discussion and analysis, and the statistical section. The audit firm will prepare the financial statements and supplementary information as outlined in the scope of work.

The total City budget is $169 million, including Water and Sewer Utility activities.

The City County Information Technology Commission provides the City's data processing services. The City County Data Center is audited separately and should not be reflected within the scope of work.

Software Used Year Started Software Purpose 2023 Workday General Ledger, Accounts Payable, Payroll, Accounts Receivable, Purchase Orders

2023 Adaptive Planning Budget 2023 Teller (Can/Am Technologies) Cash Collections 2019 Ascent Real Estate and Personal Property Taxes 2021 TiPSSCourt (Titan Public

Safety Solutions) Municipal Court Payments

2021 Portfol (BMI) Community Development Loan Receivables

2023 SA Manager (ETI) Special Assessments and Special Charges 2018 UMS by CUSI (Continental

Utility Solutions Inc) Utility Billing

2022 Passport Parking Citation Management 2013 Evolve Licensing and Permitting

The city has outsourced EMS billing to EMS|MC.

The city maintains the following funds and account groups:

General Funds 101 General Fund

Special Revenue Funds 215 ARPA Fund 228 Environmental Clean Up Fund 230 Community Development Fund 231 Community Development Grant Fund 232 Revolving Loan Fund 233 DLAD Program Income 234 HCRI Program Fund 236 Federal Rental Rehab Program Income Fund 237 WRRP Program Income Fund 239 Home Program Income Fund 240 Home Rental Rehabilitation Fund

241 Home Administration Fund 242 Neighborhood Stabilization Fund 243 Housing Stock Improvement Fund 244 WRRP Administration Fund 251 Room Tax Fund 252 Public Access Fund 253 Recycling Fund 255 Economic Development Fund 265 Police Grants Fund 267 Animal Control Fund 275 Parks Grant Fund 277 400 Block Grant Fund 281 Fire Grant Fund 287 EMS Grant Fund 289 Hazardous Material Response Fund 290 Other Special Purpose and Gifts Fund

Debt Service Funds 300 Debt Service Fund

Capital Projects Fund 400 Capital Projects Fund 403 Tax Increment District Three 406 Tax Increment District Six 407 Tax Increment District Seven 408 Tax Increment District Eight 409 Tax Increment District Nine 410 Tax Increment District Ten 411 Tax Increment District Eleven 412 Tax Increment District Twelve 440 Capital Projects Fund – Bond Proceeds 451 Central Capital Purchasing Fund

Proprietary Funds – Enterprise Funds 650 Water Utility Fund 660 Wastewater Utility Fund 670 Wausau Downtown Airport 680 Parking Fund 690 Transit Fund

Proprietary Funds – Internal Service Funds 700 Employee Benefits Insurance Fund 710 Property and Casualty Insurance Fund 770 Motor Pool 771 CVMIC Self-Insurance Fund

Fiduciary Funds 800 Wausau Events 801 Cemetery Trust Fund 802 Wausau Business Incubator/EEC 805 Tax Collection Fund

The city has a total payroll of about $26,379,000, covering approximately 330 full-time employees and 47 part-time employees. The FTE count includes city staff assigned to the Community Development Authority. The pay is processed bi-weekly, and all staff are paid through direct deposit. The City is self-insured for workers’ compensation and dental insurance.

The City is a member of CVMIC for liability insurance and MPIC for property insurance.

The Community Development Authority is presented as a discretely presented component unit.

The Community Development Authority accounting records are maintained by Hawkins Ash CPAs. The company provides year-end financial statements and disclosures. The Authority’s portfolio includes:

Riverview Towers LLC – 149 units – Mixed Finance - Low Income Housing Tax Credits (LIHTC) and RAD Project-Based Vouchers

Riverview Terrace – 36 units of independent elderly housing– Project-Based Vouchers

Scattered Sites – 46 units – Public Housing - Family Section 8 HCV Program – 435 Vouchers (approx.)

Redevelopment

The auditor is required to complete and submit the REAC report to HUD by September 30th each year. The Community Development Authority also requires tax return preparation and a presentation to the board, along with an exit conference with the executive director.

The CDA and Riverview Towers LLC shall be invoiced separately from the city.

The City uses Teller Point of Sale software in the Finance Department, Police Department and MetroRide for cash collection. In addition, the city utilizes the retail lockbox services of US Bank for real estate taxes and utility collections. This entails the use of a remittance coupon and an envelope with invoices. These payments are mailed to a PO Box in Milwaukee, addressed to the bank. The retail lockbox service performs mail procedures, imaging, depositing, and reading of the MICR code on the invoice. A file is transmitted daily, which updates the transactions in the city’s accounts receivable systems. In addition, the City utilizes the services of various financial institutions within the community for tax collection during the year. These institutions collect the taxes and deposit funds directly into the City’s account. City staff enters the corresponding activity within the accounts receivable systems. The City utilizes online credit card payments of taxes, utilities, municipal court, parking, and other miscellaneous receivables.

The city offers ACH payment of taxes and utility bills. Credit card payments are accepted at the Customer Service counter through the Teller software. Permitting and licensing is performed online through Evolve software. The city employs the State of Wisconsin TRIP and SDC systems for delinquent accounts.

City staff will prepare CITY work papers and lead schedules, either in advance or during fieldwork, as requested by the audit firm. Staff will be available for questions and other assistance during fieldwork. The City also prepares, exclusive of CDA grant activity, a schedule of federal and state assistance for the auditors, the Department of Revenue Annual Financial Report, and the PSC Report. Auditor will assist with related footnote disclosures as new GASB pronouncements are adopted.

CDA staff will be available for questions and records for the CDA and Riverview Towers audit.

Reasonable workspace, Wi-Fi, and access to Workday software will be available.

The approximate number of annual transactions (excluding the Community development authority) processed:

Journal Entries 1,517 Receipts 64,202 Accounts Payable Payments (Check and ACH) 6,713 Payroll Direct Deposit Transactions 16,387 Utility Accounts 16,292 Invoices 11,232 Purchase Orders 228

2. SCOPE OF SERVICES

These audits are to be performed in accordance with generally accepted auditing standards and the standards set forth for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the provisions described in the U.S. Office of Management and Budget (OMB) Compliance Supplement, the audit requirements of Title 2 U.S.

Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the compliance requirements described in the State Single Audit Guidelines, issued by the Wisconsin Department of Administration, statutory requirements, as ell as City of Wausau policy.

A list of services is summarized in the table below.

City of Wausau

Wausau Community Development

Authority Riverview Towers

LLC

Scope of Audit Services Audit Financial Statements x x x

Evaluate and Report On:

Supplementary Information (RSI) x x x Schedule of Federal Awards x x Schedule of State Awards x x Audited Administrative Rule - Tax 16 Report x

Nonaudit Services Preparation of financial statements and related notes x x x Required Supplementary Information (RSI) x x x Preparation of the supplementary information x x x Preparation of adjusting journal entries x x x Preparation of the Data Collection Form SF-SAC x x Roll forward & calculation of GASB 87 & 96 activities x x x Preparation of Depreciation Schedules x Preparation of Schedule of Expenditures for Federal Awards x Supplementary information required by HUD x

Business Tax Return x Presentation to Board or Committee x x

City of Wausau - Statement of Work

The auditor will provide advice and counsel throughout the year concerning any changes that would affect the annual report.

Work papers will remain the property of the auditor. However, they will be made available to any US or State agencies requesting information, the City of Wausau, and any predecessor audit firms.

The City typically issues debt on an annual basis. We have included our financial statements and the audit opinion in our official statement and expect to continue this practice.

If any circumstances are encountered that require additional procedures outside the normal scope of the project, the firm must advise the city and provide a written cost proposal before beginning the procedures.

Work Product Completion Target Completion Date Printed Copies City Preliminary Fieldwork Nov, Dec or January City Yearend Fieldwork Mid May Rollforward & calculation GASB 87 & 96 Mid April Riverview Towers LLC Fieldwork, Reports and Tax Returns, GASB 87 &96 02/28/2025 10 CDA fieldwork, financial report, single audit and HUD reporting, GASB 87 &96 Mid April 10 City Tax Rule 16 Report Mid June - City ACFR Report Release and related communications Mid June - City Single Audit and Data Collection and related communications Mid June -

3. SUBCONTRACTING

All subcontracts shall be pre-approved by the City before any work begins. Subcontractors must abide by all terms and conditions of the proposal. The prime contractor shall be responsible for all subcontractor(s) work and payment.

SECTION II - INSTRUCTIONS AND CONDITIONS FOR PROPOSAL SUBMISSION

1. RFP ADMINISTRATORS

The individuals responsible for administering this RFP, to whom all inquiries and correspondence should be addressed, are:

Maryanne Groat, CPA Finance Director/Treasurer City of Wausau 407 Grant Street Wausau, WI 54403-4783

Maryanne.groat@wausauwi.gov

(715) 261-6645

2. RFP MODIFICATIONS

The City of Wausau reserves the right to amend, alter, or revoke this RFP in any manner at any time. Any modifications, clarifications, or additions to the RFP will be posted on the City’s website.

3. PROPOSED PREPARATION COSTS

The vendor shall wholly absorb all costs incurred in the preparation and presentation of this proposal.

4. INSTRUCTIONS ON SUBMITTING PROPOSALS

Proposal Due Date: Wednesday, November 5, 2025, 12:00 NOON

Place: Finance Department City of Wausau 407 Grant Street Wausau, WI 54403

Accepted Forms 2 copies in a sealed envelope marked Audit Proposal.

Proposers may be requested to be available to discuss their proposal with the Finance Committee.

5. PROPOSAL CONTENT

WE APPRECIATE PROPOSALS THAT ARE CONCISE AND DO NOT REPEAT

INFORMATION.

Name and address of the Certified Public Accounting Firm.

Provide a concise summary of the work to be completed and your work plan or audit approach.

Provide resumes for the audit team. Indicate name, title, and number of years of governmental experience. Include resumes of all partners within the office performing the audit engagement.

Indicate whether the audit team will be staffed from one or several office locations.

Indicate whether offshore subcontractors will be utilized to perform core audit procedures that require professional judgment or access to sensitive client information.

Provide information regarding the firm's experience and commitment to providing services to the governmental sector.

Provide references for not less than three government clients, preferably cities, for whom services have been provided within the last year. Include a contact name and telephone number.

Provide a list of other services provided by your firm to governmental clients.

Provide references for preferably not less than three Housing Authority clients, for whom services have been provided within the last year. Provide contact name and phone number.

Please provide specific examples of the firm's experience in performing single audits, as well as its knowledge and expertise with the Certificate of Achievement in Excellence in Financial Reporting awarded by the GFOA.

Provide detailed information about the size of your firm. Provide detailed information about the government section.

Affirmation that the firm meets the independence requirements of the Generally Accepted Government Auditing Standards as they relate to the City of Wausau and Community Development Authority.

A description of your firm’s quality control procedures that ensure compliance with firm and AICPA standards. Highlight participation in peer review programs and provide a copy of your most recent external quality control review letter.

Describe any situations where you have failed to complete work awarded to you or defaulted on a contract. Provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the last three years with federal or state regulatory bodies or professional organizations.

Provide your understanding of the fieldwork schedule, list of reports to be completed and final submission dates.

Provide the Name, title, address, and telephone number of the individual to whom all inquiries about the proposal should be addressed.

Indicate on the attached fee schedule, Appendix A, the total cost of the audit engagement, along with an allocation of the portion of the audit pertaining to the Community Development Authority, Community Development Department, Transit, Water, and Sewer Utility. The fee quoted should be the ANNUAL total all-inclusive maximum price, including out of pocket expenses, for each year 2025-2029 to provide the services requested in the RFP.

The city staff will review the proposals, contact references, and consider the necessity of interviews. Proposals will be evaluated using the ranking criteria established in Appendix B. It is expected that a recommendation will be presented to the Finance Committee on November 11th.

5. REPORT SUBMISSIONS

All reports issued shall be addressed to the Mayor and the Common Council of the City of Wausau.

6. THE CITY’S OPTION

The City of Wausau reserves the right to reject any or all proposals, to waive any informality in the proposals received, and to accept the proposal deemed in the best interest of the City.

Appendix A

2025 2026 2027 2028 2029 Community Development Authority (Invoice Separately)

Audit Financial Statement Preparation GASB 87 & 96 Rollforward and calculations REAC filing Total 0 0 0 0 0

Riverview Towers LLC (Invoice Separately) Audit GASB 87 & 96 Rollforward and calculations Financial Statement Preparation Tax Return Preparation Total 0 0 0 0 0

City of Wausau (Invoice Separately) Audit

Water Utility Wastewater Utility Community Development Fund Transit Utility All Other

GASB 87 & 96 Rollforward and calculations Financial Statement Preparation Other Costs Total 0 0 0 0 0

Fee Itemization

Appendix B

Ranking Criteria

1. Mandatory Is the firm properly licensed? Yes No Is the firm independent? Yes No Has disciplinary action been taken or pending against the firm? Yes No

2. Technical Qualifications Does the firm have a quality control program to ensure adherence to high professional standards?

Does the firm subject itself to "Peer Review" in order to provide an independent review of its quality control policies and procedures?

Did the "Peer Review" cover the governmental auditing section? Yes No Was a "Peer Review" opinion attached? Yes No

Does the size of the firm or office provide flexibility of staff and professional backgrounds?

Does the proposal satisfy the scope of work requested?

Does staff assigned to the engagement have the necessary experience to perform the audit effectively, efficiently and provide the necessary technical consultation?

Has the firm audited local governments similar to the City?

Has the firm audited Housing Authorities with similar programs as the City of Wausau?

3. Audit Approach Does the proposal adequately describe the work to be performed?

Is the proposed staffing realistic?

Does the proposal adequately describe the audit approach?

4. Audit Fee Lowest cost of all proposals/Cost of the proposal *35

0-10

0-35

0-5

0-5

0-7 0-10

0-15 0-20

Possible Points

0-20

0-10 0-10

Appendix C

It is understood that the insurance required by the City of Wausau is primary coverage.

1) The consultant agrees to procure and maintain in force during the term of this contract, at its own cost, the following coverages:

a) Worker's Compensation Insurance in the amount of the statutory limits under Wisconsin law and

Employers' Liability Insurance in the amount of $500,000.

b) Commercial General or Business Liability Insurance with minimum combined single limits of ONE MILLION DOLLARS ($1,000,000.00) each occurrence and TWO MILLION DOLLARS ($2,000,000.00) general aggregate.

c) Automobile Liability Insurance with minimum combined single limits for bodily injury and property damage of not less than $500,000 or Limits of $250,000 each person/$500,000 each accident for bodily injury and $100,000 for property damage. Must cover any auto including owned, non-owned and hired automobile liability.

d) Professional Liability coverage with minimum limits of ONE MILLION DOLLARS ($1,000,000.00) each claim. If approved by city, evidence of qualified self‐insured status may be substituted for one or more of the foregoing insurance coverages.

2) Consultant shall procure and maintain the minimum insurance coverages listed herein. Such coverages shall be procured and maintained with forms and insurers acceptable to the city, acceptance of which shall not be unreasonably withheld. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the consultant pursuant to this contract. In the case of any claims made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage.

3) A Certificate of Insurance shall be completed by the consultant’s insurance agent(s) as evidence that policies providing the required coverage, conditions, and minimum limits are in full force and effect, and shall be subject to review and approval by the city. The Certificate shall identify with this contract and shall provide that the coverages afforded under the policies shall not be canceled, terminated, or limits reduced until at least 30 days' prior written notice has been given to the city. In addition the policy shall contain an endorsement listing the City of Wausau and its elected and appointed boards, officers, officials, agents, employees and volunteers as additional insureds with respect to liability arising out of activities performed by or on behalf of the consultant pursuant to its contract with the City;

products and completed operations of the Consultant; premises owned, occupied or used by the Consultant;

automobiles owned, leased, hired or borrowed by the Consultant.