RFP - Professional Auditing Services - 2026.pdf

Queen Anne's County

Department of Budget & Finance

Request for Proposals For

Professional Auditing Services

February 2, 2026

Proposals Due February 20, 2026 at 3:00pm EST

Request For Proposals

Professional Auditing Services

The County Commissioners of Queen Anne’s County through the Queen Anne's County Department of Budget

& Finance are seeking to engage in a contract with a Certified Public Accounting Firm to perform an audit of the financial statements of Queen Anne’s County for the fiscal years ending June 30, 2026, 2027, and 2028.

INSTRUCTIONS TO PROPOSERS

SECTION 1 ‐ GENERAL INFORMATION

BACKGROUND: The County of Queen Anne’s, Maryland, is seeking proposals from qualified Certified Public

Accounting Firms to perform an audit of the financial statements of Queen Anne’s County for the fiscal years ending June 30, 2026, 2027, and 2028.

Period to be Audited

July 1, 2025 through June 30, 2026 – Fiscal Year 2026

July 1, 2026 through June 30, 2027 – Fiscal Year 2027

July 1, 2027 through June 30, 2028 – Fiscal Year 2028

There will be two additional option years, for Fiscal Years 2029 and 2030, at the County’s discretion.

SECTION 2 – SCOPE OF INDEPENDENT AUDIT SERVICES

A. Financial Audit

These audits are to be conducted in accordance with U.S. generally accepted auditing standards; Government

Auditing Standards, issued by the Comptroller General of the United States; the provisions of the Office of

Management and Budget (OMB) Circular A‐133, Audits of States, Local Governments, and Non‐Profit

Organizations; any other applicable procedures for the audit of a government’s financial statements prepared in accordance with generally accepted accounting principle; any requirements imposed by the Department of

Fiscal Services of the State of Maryland; and the laws and regulations of the State of Maryland.

1. The audit will begin with a planning meeting between the Auditor and the County to determine the information that is to be provided by the County and to establish due dates for information to be exchanged between the Auditor and the County. The County expects that most fieldwork will be completed remotely; however, hybrid or on‐site methods may be approved by mutual agreement. The auditor shall coordinate with the prior auditor, if applicable, to ensure a smooth transition.

2. The audit must be completed and all reports provided no later than six (6) months (by December 31st) following the fiscal year end, unless the deadline is extended by the Director of Budget and Finance.

3. The Auditor will be responsible for assisting with the preparation of some year‐end adjusting entries.

4. The Auditor will prepare most financial statements presented in the Annual Comprehensive Financial

Report (ACFR). The County will prepare the MD&A, Letter of Transmittal, certain note disclosures, and the Statistics sections.

5. The auditor will provide the printed ACFR reports at year‐end. Currently, the County needs 10 printed copies.

6. The Independent Auditors’ Report shall indicate whether the statements are accurate in all material respects and reported in such a manner that the financial position and results of the County’s activities are presented fairly. The auditor’s opinion shall be unqualified unless the auditor furnishes to the

County, within a timely basis, the reasons for qualifying an opinion, disclaiming an opinion or rendering an adverse opinion.

7. The combining and individual financial statements, related information, and supplemental schedules will be included for analytical purposes. As required by GASB 34, they will be subjected to the same tests and other auditing procedures applied in the examination of the basic financial statements. The

Auditor will also test and apply auditing procedures to the budgetary comparison information for all funds.

8. The Auditor will issue a management letter to the County Commissioners reporting audit findings and recommending corrective action, if needed. In addition, the Auditor may prepare a letter disclosing and discussing informal/non‐material comments not included in the management letter. In the additional letter, the auditor shall offer suggestions for improving the County’s administrative methods and management operations, and making cost reductions, when considered by the auditor to be appropriate and documentable within the scope of the audit.

9. The Director of Budget and Finance may request the Auditor to make a presentation of the financial statements to the County Commissioners.

10. The auditor shall retain all working papers and supporting documentation related to the County’s audit for no less than five (5) years from the date of the audit report or the length of time required by State or Federal regulations, whichever is longer. Work papers and other audit documentation shall be available to the County, authorized representatives of any State or Federal funding agency and any subsequent audit firm upon request of the Director of Budget and Finance.

11. The auditor may perform interim audit work, as deemed necessary, at any time during periods covered by the contract. The County prefers interim work to be completed as soon as possible in order to ensure a timely audit.

12. If circumstances arise during the audit that require work to be performed that is beyond the scope of the original contract, any additional fees will be negotiated prior to the commencement of the work.

13. The auditor shall be responsible for advising the County of new GASB rulings and other reporting requirements that may affect the County’s financial reporting and for offering guidance to the County on complying with new regulations in effect at June 30th year end.

14. The County plans to apply to the Government Finance Officers Association for the Certificate of

Achievement for Excellence in Financial Reporting and may request assistance to do so.

15. The Auditor may not subcontract the Audit, or any portion of the audit work, to another auditor, CPA or Audit firm without the specific knowledge and advance approval of the County Commissioners.

B. Compliance Audit

The financial statements relating to Federal grant funds shall be examined for compliance with applicable laws, regulations and regulatory pronouncements as reference through the Office of Management and Budget’s

Compliance Supplement for Single Audits of State and Local Governments, Uniform Administrative

Requirements for Grants in Aid to State and Local Governments commencing in 1986, the Single Audit Act of

1984, and OMB Circular A‐133, Audits of States, Local Governments, and Non‐Profit Organizations.

C. Uniform Financial Report

The Department of Fiscal Services of the State of Maryland requires all localities to file a Uniform Financial

Report (UFR). The auditor shall be expected to review and sign the required forms (prepared by County staff) prior to submission to the State. The UFR is due to the State of Maryland by December 31st.

D. OMB Circular A‐133 Audit

The auditor shall prepare a Single Audit Report of federal grants in accordance with the applicable federal requirements and in a form satisfactory to the County’s cognizant agency. The auditor shall prepare the Form

SF‐SAC data and upload a copy of the A‐133 reporting package into the Federal Audit Clearinghouse (FAC)

Internet Data Entry System (IDES). The County staff will assist with the data collection forms and the Schedule of Expenditures of Federal Awards. The Single Audit Report is due on March 31st.

E. Report on Agreed‐Upon Procedures

The County staff prepares the Report on Applying the Agreed Upon‐Procedures to comply with the requirements of Maryland Environmental Service for Queen Anne’s County’s obligation for the Mid Shore

Regional Landfill. The auditors shall be required to review the report prior to submission.

F. Detailed Schedules for Community Partnerships for Children (Local Management Board)

The County staff prepares the schedules, which are included in the County’s financial statements.

G. 911 Trust Fund Audit

The County staff completes the “Actual Revenue and Expenditure Form” sent from the Emergency Numbers Systems Board. The auditor shall prepare the 911 Audit report and submit by the December 31st deadline.

H. Compliance with Legal Requirements

The audit shall be familiar with and comply with the provisions of any and all Federal, State and County administrative rules and regulations with may pertain to the work required in the engagement.

I. Audit Review

The audit shall include an overall review of the County’s financial and accounting system and procedures. The audit should not be limited to a specific review of the financial transactions and statements of the County.

All accounting records supporting the above reports are maintained by the Budget and Finance Office, which is also responsible for preparing the reports.

J. GFOA Certificate of Achievement

The County participates in the GFOA Certificate of Achievement for Excellence in Financial Reporting program. The auditor shall assist in preparing the County’s Annual Comprehensive Financial Report (ACFR) in a format that complies with GFOA award criteria. The auditor shall review the ACFR draft and provide feedback to help maintain award eligibility.

K. Deliverable Timeline

Separate deliverables include the audited financial statements (ACFR), the Single Audit (Uniform

Guidance), management letter, and SAS 114 communication. Target delivery dates include:

• Individual pages of the ACFR for County review: November 20

• Draft ACFR: December 9

• Final ACFR and audit opinion: December 23, with December 30 as drop‐dead date.

• Single Audit: March 15

• Management Letter: With or shortly after ACFR

SECTION 3 – DESCRIPTION OF THE GOVERNMENT

A. Names of Contact Persons and Key Personnel

The auditor's principal contact with the County during the course of the audits will be Justine Franzen, Chief Accounting Officer, who will coordinate the assistance to be provided by the County to the auditor.

B. Background Information

The County Commissioners of Queen Anne’s County serve an area of 373 square miles of land with a population of approximately 53,400. The County's fiscal year begins on July 1 and ends on June 30.

The County has a total annual payroll of approximately $61.2 million covering approximately 633 full‐ time and 62 part‐time employees.

The financial statements of the County include all funds, agencies, boards and commissions that are controlled by or dependent on the County. Control by or dependence upon the County is determined on the basis of budget adoption, taxing authority, outstanding debt secured by revenues or general taxing authority of the County.

The County is administered by an appointed County Administrator who is responsible to the County

Commissioners.

The accounting and financial reporting functions of the Queen Anne’s County are centralized and are the responsibilities of the Department of Budget and Finance.

More detailed information on the government and its finances can be found in the June 30, 2025

Annual Comprehensive Financial Report (ACFR), which can be found on the County’s website www.qac.org.

C. The County has one (1) General Fund, two (2) Capital Projects Funds, eighteen (18) Special Revenue

Funds, seven (7) Enterprise Funds, two (2) Private Purpose Trust Funds, and six (6) Custodial Funds.

D. Component Units

The financial statements of the reporting entity include those of the Queen Anne’s County

Government (the primary government) and its component units. Using the criteria as set forth in

Section 2100 of GASB’s Codification of Governmental Accounting and Financial Reporting Standards, the following organizations are considered component units of Queen Anne’s County Government.

Their respective financial data is discretely presented in the County’s financial statements.

1. Board of Education of Queen Anne’s County

2. Queen Anne’s County Free Library

3. Queen Anne’s County Public Housing Authority

The fiscal year end of all the above component units is June 30. The financial statements of the Board of Education, the Library, and the Housing Authority are audited separately by CPA firms selected by those entities. The auditors of the component units are contractually obligated to provide information needed for the audit of the County in sufficient time to complete the audit as scheduled.

E. Computer Systems

The County utilizes Tyler EERP financial software to record and report all financial transactions.

Virtually all audit processes (such as the creation of the financial statements) are created annually with

Excel and Word programs.

F. Report Preparation

The County will provide specific notes, MD&A, Letter of Transmittal, Statistics and other predetermined schedules. Report preparation, editing and printing shall be the responsibility of the Auditor.

SECTION 4 – ELIGIBILITY REQUIREMENTS

A. To be eligible for consideration, the following minimum requirements must be met:

1. The firm of Certified Public Accountants (CPA) must be of recognized ability and standing, and licensed to practice in the State of Maryland.

2. The CPA firm must be a member of the American Institute of Certified Public Accountants and must adhere to the AICPA professional standards of audit practices and conduct.

3. The firm and its staff proposed for the audit must have audited similar governmental units and must have demonstrated ability to assist the County (if necessary) in producing financial statements in accordance with the standards determined by GASB, and interpreted by the AICPA Audit and

Accounting Guide for State and Local Governments.

4. The firm must have demonstrated ability to prepare single audit reports for local governments of a similar size which are in conformance with MOB Circular A‐133, and are acceptable to the cognizant agency and other federal funding agencies.

5. The firm must have experience auditing automated data processing financial management systems of at least the size of the County’s system.

6. The firm must demonstrate the ability to provide ongoing consultation throughout the year.

SECTION 5 – BILLING AND INVOICING

The payment schedule for auditing services shall include periodic progress invoicing, each of which shall not exceed seventy percent (70%) of the total audit cost. Each invoice should specify a cost breakdown among major programs and audit activities. A final invoice shall be due and payable upon the submission of the final audit reports.

SECTION 6 ‐ COMPLIANCE WITH LAWS, STANDARDS AND PRACTICES

Proposals must comply with all federal, state, county, and municipal laws.

SECTION 7 ‐ PRICING

Provide a price schedule for the services described in the RFP – which should also include the pricing for any proposed add‐ons that the vendor may suggest be part of the program.

SECTION 8 ‐ SCHEDULE

PROPOSED TIMETABLE – RFP to CONTRACT

Request for Proposal to Prospective Proposers Monday, February 2, 2026

Proposal Due Date Friday, February 20, 2026 at

3:00pm (EST)

Staff Review Complete Friday, March 6, 2026

Meeting with Selected Firms March 16, 2026 to March 20, 2026

Potential Negotiations Complete Monday, March 30, 2026

Recommendations to County Commissioners Tuesday, April 14, 2026

Project Contract Award Wednesday, April 15, 2026

Copies of the RFP may be obtained from:

Justine Franzen

Queen Anne’s County Office of Budget and Finance

107 N Liberty St

Centreville, MD 21617

(410) 758‐4064

Or from the Queen Anne’s County website located at https://qac.org/bids.aspx

Or from eMD Marketplace: https://emma.maryland.gov

SECTION 9 ‐ INSTRUCTIONS

1. Proposal Format: A complete and thorough response is encouraged, as this RFP and response will be incorporated into the final contract by reference. The proposal should be structured as outlined below:

a. Cover letter from authorized individual responsible for response and proposal content.

i. All requested information sent in an email to JFRANZEN@QAC.ORG with subject line

“Professional Auditing Services.” Refer to the following RFP sections for required responses:

b. Scope of Independent Audit Services – please indicate ability to meet each individual requirement in Section 2;

c. Proposer Qualifications – respond with requested information in Section 4;

d. State whether the firm is local, regional, or national.

e. State the location of the office from which the work is to be completed and the number of partners, managers, supervisors, seniors, and other professional staff at that office.

f. Proposing firms should indicate the names and titles of all staff who will be assigned to the

County’s audit. A job responsibility description should be provided for each staff member assigned to the engagement. One person should be identified as the primary contact with the

County for the overall supervision of the audit. The County understands that engagement partners, managers, and other supervisory staff and specialists identified in response to this

RFP may be changed during the term of this proposal. However, Queen Anne’s County reserves the right to approve or reject replacement personnel. Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications and/or experience.

g. Describe the range of activities performed by the local office such as auditing, accounting, or management services.

h. Provide pertinent references of governmental ACFR clients (include the contact person and telephone number for three (3) clients).

i. Schedule – Specify the approximate date the audit will begin (including preliminary field work) and end, as well as approximate dates for delivery of the financial statements and the management letter.

j. Specify staff hours required to complete the engagement by personnel levels, i.e. total hours for partners, managers, supervisors, seniors, and juniors.

k. Pricing – respond in accordance with Section 8.

l. Since it is the intent of the County to extend the contract for an additional two (2) years, indicate in the proposal the annual fee if the contract were to be extended for FY2029 and

FY2030.

m. Completed Proposal Form – appendix A

n. Provide any further information you believe would be available in the evaluation of the proposal.

2. Submission: One electronic submission via email with subject line labeled “Professional Auditing

Services” by 3:00pm, February 20th, 2026 to the following email address: JFRANZEN@QAC.ORG

Proposals received after 3:00pm, February 20th, 2026, cannot be considered. All proposals will remain on file for at least sixty (60) days. Queen Anne’s County reserves the right to reject any and all proposals.

3. Communication with the County: Proposers shall designate one (1) representative to serve as liaison with the County. This individual’s name and contact information should be included in the proposal response. All communication between the County and the Proposer will be directed through this individual and shall be in writing. Email correspondence will be accepted. Any inquiries concerning the contents of this RFP should be directed as follows: Justine Franzen, Queen Anne’s County Office of

Budget and Finance, 107 N Liberty St, Centreville, MD 21617 Telephone (410) 758‐4064 x2094 Email

JFRANZEN@QAC.ORG

4. Other Services: Evaluation of proposals will be based on requested services, however, any new, enhanced or innovative services proposed will also be considered. Proposer may offer suggestions and pricing for alternative services offered.

5. Joint Proposals: Proposers shall respond by and on behalf of their organization only. No joint proposals will be considered. Please provide details of any third party arrangements necessary for services to be primarily provided by your organization/firm.

6. Withdrawal: No proposal may be withdrawn once submitted to the County Office of Budget and

Finance.

7. Proposal Expenses: Expenses incurred in the preparation of the proposal are the responsibility of the

Proposer.

SECTION 10 – EVALUATION AND AWARD

The proposals will be evaluated by a committee based on the following considerations:

1. Evaluation criteria:

a. Complete response to all required items;

b. Ability to provide timely, responsive, effective services;

c. Ability to meet current and projected project requirements over the term of the agreement;

d. The character, integrity, reputation, judgment, experience, and efficiency of the firm;

e. The quality of performance of previous contracts;

f. The sufficiency of the financial resources and ability of the firm to perform the contract;

g. Such other information as may be secured having a bearing on the decision to make the award;

and

h. Price

2. Proposal Evaluation Criteria:

a. Experience and qualifications of the firm – 30%

b. Understanding of County’s needs and approach – 25%

c. Experience with Maryland counties or ACFR prep – 20%

d. References – 15%

e. Cost proposal – 10%

All proposing firms must be licensed to practice public accounting in the State of

Maryland and must provide evidence of a successful external peer review conducted in accordance with AICPA standards. The firm must also have recent experience auditing

Maryland counties or similar‐sized local governments.

3. Terms and Conditions:

a. The County reserves the right to reject any and all proposals, to waive any irregularities in any proposal or in the proposal procedures and to accept or reject any item or combination of items. The award will be to the proposer or proposers whose proposal, in the opinion of the

County, is the best proposal taking into consideration all aspects of the proposer’s response.

b. Proposers shall thoroughly examine and be familiar with these specifications. The failure or omission of any proposer to examine and/or understand this document shall in no way relieve the proposer of obligations with respect to this proposal or the subsequent contract.

c. Proposers shall in no way make unauthorized changes to the specifications, forms or terms.

Doing so may render the response invalid.

Appendix A Page 1

County Commissioners of Queen Anne’s County

PROPOSAL FORM

FOR PROFESSIONAL AUDITING SERVICES

DATE: Bidders Name and Address

Justine Franzen, Chief of Accounting c/o The County Commissioners of Queen Anne’s County 107 N. Liberty Street Centreville, Maryland 21617

JFRANZEN@QAC.ORG

This proposal is submitted in accordance with your Request for Proposals for Professional Auditing Services for the Queen Anne’s County Government.

Having carefully examined the Request for Proposal and accompanying documents and being familiar with all phases and conditions of the work, the undersigned agree to furnish all materials, labor and all else necessary to complete the audits and required reports for the fees listed below:

FY 2026 Dollars ($ )

FY 2027 Dollars ($ )

FY 2028 Dollars ($ )

FY 2029 Dollars ($ )

FY 2030 Dollars ($ )

PROPOSAL FORM ‐ PAGE 2

DATE: Bidders Name and Address

The fee for the first year of the engagement is based on the following:

Hours Hourly Rates Total

Partners

Managers

Supervisory staff

Seniors

Juniors

Other (specify):

TOTAL

Location of office which will perform audit:

Signature

Title

CONFLICT OF INTEREST DISCLOSURE & EMPLOYMENT OF ALIENS STATEMENT

In connection with the undersigned's participation in the bid process or request for proposals being considered by the County Commissioners of Queen Anne's County ("the County") the undersigned does affirm under the penalties of perjury as follows:

I have reviewed the materials provided by the County in connection with my proposed bid or proposal and reviewed such records of my company and business as necessary to make the following statements:

(Check all appropriate boxes)

To the best of my knowledge and belief, neither I, the company identified below, nor any employee of the company have been involved or are presently involved in any situations or actions that might be regarded as an actual or potential conflict of interest in the event of a successful bid or award.

It appears that I, the company identified below or an employee of the company have been involved in some situations or actions that might be regarded as a potential conflict of interest should I submit the successful bid or proposal. Details of such situations and/or actions are as follows (attach additional sheets as necessary):

1.

2.

The following situations or actions in which I, my company or an employee of the company are presently involved might be regarded as a potential conflict of interest if I submit the successful bid or proposal (attach additional sheets as necessary):

1.

2.

I have attached a list of all present contracts between the company named below and the County.

Furthermore, vendors providing goods or services to Queen Anne’s County Government, as a condition of doing business with the County, are required to comply with all applicable laws and regulations relating to the employment of aliens.

Should vendors providing goods or services to Queen Anne’s County fail to comply with applicable laws and regulations relating to the employment of aliens, such failure shall constitute a material breach of the vendor’s contractual relationship with Queen Anne’s County and the County may take all reasonable steps to terminate the County’s contractual relationship with the vendor. If you have questions, please consult the County Department that manages your vendor contract.

Signature: Date:

Name: (please print)

Company/Organization:

Address:

Phone Number: