Auditing Services

TABLE OF CONTENTS
I) SUBMISSION OF OFFER .................................................................................................. 3
A) Scope and Specifications of Procurement ................................................................... 3
B) Description of the government ..................................................................................... 4
C) Scope of work to be performed .................................................................................... 6
D) Report Preparation ....................................................................................................... 7
E) Time Requirements ..................................................................................................... 10
F) Assistance to be provided to the Auditor and Report Preparation ........................ 11
G) Proposal Requirements .............................................................................................. 12
H) Evaluation Procedures................................................................................................ 16
I) Insurance Checklist .................................................................................................... 18
J) Type of Contract ......................................................................................................... 20
K) Questions and Comments Regarding Terms of the Solicitation and Modification
of Terms ....................................................................................................................... 20
L) Method for Making Submission ................................................................................ 20
M) Vendor Information Form and Certifications ......................................................... 21
N) Compliance with Directions ....................................................................................... 22
II) EVALUATION OF OFFER .............................................................................................. 22
A) Net Prices and Delivery Terms; Tax Exemption and Responsibility ..................... 22
B) Required Elements of Offer Package ........................................................................ 23
C) Proposal Evaluation Framework............................................................................... 24
D) Determining if Vendor is Responsible ...................................................................... 25
E) Exceptions to Terms of the Solicitation .................................................................... 25
F) Offer Acceptance Period ............................................................................................ 25
G) Withdrawal of Offers .................................................................................................. 26
III) METHOD OF AWARD OF CONTRACT ....................................................................... 26
A) Negotiation and Award............................................................................................... 26
B) Award in Whole or in Part ......................................................................................... 26
C) Multiple Awards.......................................................................................................... 26
IV) FORM OF CONTRACT AND RELATED DOCUMENTS ........................................... 27
A) Use of Town Standard Form Contract ..................................................................... 27
B) Use of AIA and Similar Forms .................................................................................. 27
C) Differing Terms in Contractor-Supplied Forms ...................................................... 27
V) MISCELLANEOUS ........................................................................................................... 27
A) Authority of Agents ..................................................................................................... 27
B) This section intentionally left blank .......................................................................... 28
C) Examination of Documents ........................................................................................ 28
D) Definitions .................................................................................................................... 29
E) Nondiscrimination; Participation of Small, Women-Owned and Minority-Owned
Business ........................................................................................................................ 30
VENDOR INFORMATION FORM ......................................................................................... 32
ACKNOWLEDGMENT OF RECEIPT OF ADDENDA ....................................................... 34
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I) SUBMISSION OF OFFER
A) Scope and Specifications of Procurement
The Town is soliciting procurement of auditing services. The specifications for this
procurement are as follows:
___ Goods X Services ______ Insurance _____ Construction
General description of the subject of Procurement:
General Information
The Town of Culpeper (hereinafter referred to as the "Town") is requesting proposals from
qualified firms of Certified Public Accountants (hereinafter referred to as the "Offeror",
with the successful Offeror referred to as the "Auditor") to audit its financial statements
beginning with the Fiscal Year ending June 30, 2026, with the option of auditing its
financial statements for each of the five (5) subsequent fiscal years.
Questions concerning this RFP must be made in writing to the Contact Person listed on the
cover page of this RFP. Questions must be received by 5:00 pm on Thursday, January
27, 2026. A formal addendum responding to all questions received by the deadline will be
made available no later than January 30, 2026.
There is no expressed or implied obligation for the Town to reimburse responding firms
for any expenses incurred in preparing proposals in response to this request.
During the evaluation process the Town reserves the right, where it may serve the Town's
best interest, to request additional information or clarifications from Offerors, or to allow
corrections of errors or omissions. At the discretion of the Town, firms submitting
proposals may be requested to make oral presentations as part of the evaluation process.
The Town reserves the right to retain all proposals submitted and to use any ideas in a
proposal regardless of whether that proposal is selected. Submission of a proposal
indicates acceptance by the firm of the conditions contained in this request for proposals,
unless clearly and specifically noted in the proposal submitted and confirmed in the
contract between the Town and the firm selected
It is anticipated the selection of a firm will be completed by March 12, 2026.
Term of Engagement
The initial contract will be for a one-year (12 month) period corresponding with the Town's
Fiscal Year audit cycle, unless ended prior to the contract date under a mutual agreement
between the Town and the Auditor. The Town reserves the right to renew or extend the
contract, subject to an annual review and recommendation by the Director of Finance, the
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satisfactory negotiation of terms (including costs acceptable to both the Town and the
selected firm), and the annual availability of an appropriation, for five (5) additional one-
year periods, for a maximum contract period of six years.
B) Description of the government
1) Background Information
The Town is located in the Virginia Piedmont region, located approx. 70 miles
southwest of Washington, DC and 45 miles northeast of Charlottesville, VA. Culpeper
is an incorporated town serving an area of approx. 7 square miles within the boundaries
of Culpeper County, with an estimated population of 21,000.
The Town's fiscal year begins on July 1 and ends on June 30.
The Town provides the following services to its citizens: General government services
including police; sanitation; the construction and maintenance of highways, streets, and
infrastructure; general engineering; planning and community development; and also
operates and manages electric, water, and sewer utilities. The Town has approx. 220
employees, including elected officials.
The accounting and financial reporting functions of the Town are centralized under the
Finance Division. More detailed information on the government and its finances can
be found in the Annual Comprehensive Financial Report and Annual Budget
documents, which are available upon request, or on the Town website at
www.culpeperva.gov.
2) Fund Structure
The Town uses the following fund types and account groups in its financial reporting:
Fund Type/Accounting Group
General Fund
General Fund Capital
Enterprise Funds (3) - Electric, Water, Wastewater
Enterprise Funds Capital (3) - Electric, Water, Wastewater
Cemetery Permanent and Perpetual Care Fund
Discretely Presented Component Unit - Industrial Development Authority
3) Budgetary Basis of Accounting
The Town prepares its budgets on a basis consistent with generally accepted accounting
principles.
4) Federal and State Financial Assistance
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Town expects to receive financial assistance from various agencies for public safety
and road improvements.
5) Pension and OPEB Plans
The Town participates in the Virginia Retirement System, and provides OPEB benefits
including retiree health insurance and VRS group life.
6) Component Units
The Town has one component unit - Industrial Development Authority. This unit is
included in the Town's financial statements.
7) Joint Ventures
The Town does not report separately any joint ventures with other governments. The
Town and the County participate in a joint E911 Operations Center which is
administratively managed by the County, and the Culpeper Media Network which is
administratively managed by the Town. The Town electric utility is a member of the
Virginia Municipal Electric Association (VMEA), which is a nonprofit organization
created to purchase electricity from Dominion Virginia Power for resale to its members.
Starting in calendar year 2026, the Town will share operating costs with Culpeper
County for an outdoor pool facility located at the County Sports Complex and operated
by the County.
8) Magnitude of Finance Operations
The Finance Department is headed by the Director of Finance/Town Treasurer, and
consists of sixteen full time and part time employees, as follows:
Director of Finance/Town Treasurer 1
Assistant Finance Director 1
Deputy Treasurer 1
Bus Operations Supervisor 1
Utility Billing Specialist 2
Customer Service Representatives 3
Senior Accountant 1
Revenue and Collections Specialist 2
Payroll Specialist 1
Accounts Payable Specialist 1
Management Analyst 1
9) Computer Systems
The Town uses Tyler Munis Enterprise ERP v2024.3 as its ERP platform. The
following modules are currently implemented: General Ledger, Budget, Human
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Resources and Payroll, Purchasing, Accounts Payable, Cashiering and Tyler Payments,
Business Licenses, Permits and Zoning, Fixed Assets, Real Estate and Personal
Property Taxes, and Utility Billing.
10) Availability of Prior Audit Reports and Working Papers
Interested Offerors who wish to review prior years' audit reports and management
letters should contact Howard Kartel, CPA, Director of Finance/Town Treasurer, 400
S. Main St., Suite 109, Culpeper, VA 22701 (540) 829-8221. The Town will use its
best efforts to make prior audit reports and supporting working papers available to
proposers to aid their response to this request for proposals. The audit firm of PBMares,
LLP has performed the Town's audit for the most recent six years.
C) Scope of work to be performed
1) Financial Statements
The Auditor shall audit all funds and account groups of the Town in accordance with
generally accepted auditing standards; the standards for financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United
States; the provision of the OMB Circular A-133, Audits of State and Local
Governments; and the Specifications for Audits of Counties, Cities and Towns of the
Auditor of Public Accounts, Commonwealth of Virginia. The audit shall result in the
preparation of financial statements from the audited records of the Town with the
Auditor's opinion thereon. The Auditor's opinion shall be unmodified unless the
Auditor furnishes the Town, on a timely basis, the reasons for modifying the opinion,
disclaiming an opinion, or rendering an adverse opinion.
2) Supplemental Schedules and Statistical Schedules
The Auditor shall apply procedures and report on the supplementary schedules included
in the Annual Comprehensive Financial Report (ACFR), including the schedule of the
legal debt margin, the schedules of contributions for pension and OPEB plans, and the
schedule of federal assistance (SEFA), if applicable. The Auditor is not required to
apply procedures and report on statistical tables included in the ACFR.
3) Internal Controls
In connection with the audit of the financial statements, the Auditor shall consider, test,
and report on internal controls in accordance with General Accepted Auditing
Standards (GAAS), Government Auditing Standards.
4) Compliance Auditing - Single Audit
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In connection with the audit of the financial statements, the auditor shall also examine,
perform tests and report on the Schedule of Expenditures and of Federal awards and all
related reports according to Uniform Guidance (2 CFR 200).
5) APA Comparative Report Transmittal Forms
The Auditor of Public Accounts requires all local governments to complete
Comparative Report Transmittal Forms in accordance with the provisions of the
Uniform Financial Reporting Manual. The Auditor shall prepare the required forms,
perform the agreed upon procedures specified in the Uniform Financial Reporting
Manual, and submit the forms to the Town with sufficient time for review and to submit
to the Auditor of Public Accounts by December 15 following the end of the fiscal year.
D) Report Preparation
1) Required Reports
Based on the audit work performed, the Auditor shall include the following reports in
the ACFR unless otherwise indicated:
a) An opinion on the fair presentation of the general-purpose financial statements and
the combining, individual fund, and individual account group financial statements
in conformity with generally accepted accounting principles.
b) A report on the internal control structure based on the Auditor's consideration of
the internal control structure in accordance with Government Auditing Standards.
The Auditor shall communicate all reportable conditions (as defined by the AICPA)
found during the audit in the report on internal controls. Further, the Auditor shall
identify any material weaknesses in his report. The Auditor shall report other
weakness in internal controls not meeting the definition of reportable condition in
a separate letter to management referred to in the report on internal controls.
c) A report on the internal control structure used in administering federal assistance
programs. The Auditor shall communicate all reportable conditions (as defined by
the AICPA) affecting federal assistance programs in the report on internal controls.
Further, the Auditor shall identify any material weaknesses in his report in a
separate letter to management referred to in the report on internal controls.
d) A report on compliance based on the audit of the general purpose financial
statements performed in accordance with Government Auditing Standards. This
report includes, but is not limited to, compliance with state laws and regulations.
The Auditor shall communicate all instances of noncompliance that could have a
material effect on the general purpose financial statements in the report on
compliance. The Auditor shall report all other instances of noncompliance in a
separate letter to management referred to in the report on compliance.
e) An opinion on compliance with specific requirements applicable to major federal
assistance programs. The Auditor shall communicate all instances of
noncompliance with the specific requirements for major federal assistance
programs in the report on compliance or in the Schedule of Findings and
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Questioned Costs. If matters of noncompliance are disclosed in the Schedule of
Findings and Questioned Costs, the Auditor shall reference the Schedule in the
report on compliance.
f) A report on compliance with the general requirements applicable to federal
assistance programs. The Auditor shall communicate all instances of
noncompliance with the general requirements in the report on compliance or in the
Schedule of Findings and Questioned Costs. If matters on noncompliance are
disclosed in the Schedule of Findings and Questioned Costs, the Auditor shall
reference the Schedule in the report on compliance. The Auditor shall prepare a
report in accordance with provisions of the single Audit Act of 1984.
g) A report on compliance with the requirements applicable to nonmajor federal
assistance programs if the Auditor selected nonmajor program transactions during
the audit. The Auditor shall communicate all instances of noncompliance with the
requirements governing nonmajor programs in the report on compliance or in the
Schedule of Findings and Questioned Costs. If matters of noncompliance are
disclosed in the Schedule of Findings and Questioned Costs, the Auditor shall
reference the Schedule in his report on compliance.
h) A report disclosing the status of findings and recommendations from previous
audits in accordance with Government Auditing Standards and the Specifications
for Audits of Counties, Cities and Towns.
i) A report summarizing compliance matters tested in accordance with the Uniform
Financial Reporting Manual.
j) A report on the application of agreed upon procedures relative to the Comparative
Report Transmittal Forms. This report shall be forwarded to the Town for
submission with the forms to the Auditor of Public Accounts.
k) The Auditor shall be required to make an immediate, written report of all
irregularities and illegal acts of which they become aware to the following parties:
A. Director of Finance
B. Town Manager
C. Town Attorney
2) Draft Reports
The Auditor shall have drafts of the Auditor's report and recommendations to
management available for review by the Director of Finance. The Auditor shall prepare
a draft of the financial statements, notes, and all required supplementary schedules (and
statistical data) by October 25th of each year.
3) ACFR Preparation and Presentation
The Auditor shall be responsible for editing and printing of the final copy of the ACFR.
The Auditor will deliver fifteen (15) bound copies and one (1) electronic copy of the
report. The Auditor shall also present the audit results and ACFR to the Finance
Committee and also to the Town Council at a public session as required by Section
15.2-2511 of the Code of Virginia.
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4) GFOA Certificate of Achievement for Excellence in Financial Reporting
The Town will send its ACFR to the Government Finance Officers Association of the
United States and Canada for review in its Certificate of Achievement for Excellence
in Financial Reporting program. It is anticipated that the Auditor will provide special
assistance to the Town each year, including review of the disposition of prior year
GFOA comments and review of the ACFR for compliance with the GFOA program
requirements. Special assistance should be completed by December 15 of each year,
to allow the Town to meet the annual filing deadline of December 31.
5) Submission of Reports to the APA
The Town of Culpeper shall hold the ultimate responsibility for ensuring its ACFR and
the Comparative Report Transmittal Forms are submitted to the Auditor of Public
Accounts by December 15 of each year in accordance with Section 15.1-166 of the
Code of Virginia. The Auditor shall prepare the required forms, perform the agreed-
upon procedures specified in the Uniform Financial Reporting Manual, and submit the
forms (or deliver so the Town can submit them), including their report thereon, to the
APA by December 15 of each year.
6) VRS Census Data
The auditor shall examine and issue an opinion on the census data reported by the Town
to the Virginia Retirement System as mandated in accordance with Section 51.1-136
of the Code of Virginia.
7) Official Statement (OS/POS)
The Town does not have any current plans for sale of debt securities. The auditor shall
be required, if requested by the Town, to provide a separate opinion on the basic
financial statements to be used with debt offerings. Otherwise, the Town may use the
most recently completed financial statements and the auditor's report thereon.
8) GASB Pronouncements
The auditor shall keep the Town fully informed of new Governmental Accounting
Standards Board pronouncements, and assist the Town, when requested, to implement
and comply with these reporting requirements.
9) Working Paper Retention and Access to Working Papers
All working papers and reports must be retained at the Auditor's expense, for a
minimum of five years, unless the firm is notified in writing by the Town of the need
to extend the retention period. The Auditor will be required to make working papers
available, upon request, to the following parties or their designees:
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A. State Audit Agencies
B. U.S. General Accounting Office (GAO)
C. Parties designated by the Federal or State governments or by the Town
as part of an audit quality review process.
D. Auditors of entities of which the Town is a sub-recipient of grant funds.
In addition, the firm shall respond to the reasonable inquiries of a successor Auditor
and allow successor Auditor to review working papers relating to matters of continuing
accounting significance.
E) Time Requirements
1) Proposal Calendar
The following is a list of key dates up to and including the date proposals are due to
be submitted:
Request for Proposal issued December 22, 2025
RFP Questions due January 27, 2026
Date for receipt of proposals February 5, 2026
2) Notification and Contract Dates
Selected firm notified by March 12, 2026
Contract date by April 15, 2026
3) Schedule for the Fiscal Year Audit
The Auditor shall complete each of the following no later than the dates indicated.
i) Interim Work
The Auditor shall complete all interim fieldwork by June 30.
ii) Detailed Audit Plan
The Auditor shall provide the Town both a detailed audit plan and a list of all
schedules to be prepared by the Town by August 1.
iii) Fieldwork
The Auditor shall complete all fieldwork by September 30.
iv) Reports
The Auditor shall prepare and return to the Director of Finance, draft copies of
all financial statements, footnotes and required supplementary schedules by
October 25. The Director of Finance will review the drafts and prepare the
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