RFP Audit Services 2026 - Roanoke Rapids, NC

City of Roanoke Rapids' Request for Proposal (RFP)
To Provide Audit Services
Responses Due: Wednesday, May 13, 2026 by 3:00 p.m.
Contact:
Carmen Johnson, Finance Director
1040 Roanoke Avenue (P.O. Box 38)
Roanoke Rapids, NC 27870
252-533-2871
cjohnson@roanokerapidsnc.gov
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Request for Proposal
The City of Roanoke Rapids, North Carolina (hereinafter called the "City") invites qualified
independent auditors (hereinafter called "auditor") having sufficient governmental accounting and
auditing experience in performing an audit in accordance with the specifications outlined in this
Request for Proposal (RFP) to submit a proposal.
There is no expressed or implied obligation for the City of Roanoke Rapids to reimburse firms for any
expenses incurred in preparing proposals in response to this request.
The specific details shown herein shall be considered minimum unless otherwise shown. The
specifications, terms, and conditions included with this RFP shall govern in any resulting contract(s)
unless approved otherwise in writing by the City of Roanoke Rapids. The bidder consents to
personal jurisdiction and venue in a state court of competent jurisdiction in Halifax County, North
Carolina.
Type of Audit
1. The audit will encompass a financial and compliance examination of the unit's Comprehensive
Annual Financial Report (CAFR) in accordance with the laws and/or regulations of the State of North
Carolina, which include requirements for the minimum scope of the audit. The financial and
compliance audit will cover federal, state, and local funding sources in accordance with generally
accepted auditing standards; Government Auditing Standards, July 2018 revisions; the provisions of
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the State Single Audit
Implementation Act; and all other applicable laws and regulations.
2. The scope of the audit and all fee quotes presented should include all approved
and known pronouncements through the date of proposal submission. This includes,
but is not limited to, the Governmental Accounting Standards Board (GASB)
statements and Government Auditing Standards. Although some pronouncements will
not be in effect until after the first year of the audit, estimates for future years should
include pronouncements that will become effective during that contract period. The
audit firm will be expected to advise appropriate City staff on the applicability of
accounting and reporting standards as they become effective.
3. The financial audit opinion will cover the financial statements for the governmental activities, the
business-type activities, each major fund, discretely presented component units (as applicable) and
the remaining fund information, which collectively constitutes the basic financial statements. The
combining and individual financial statements, schedules, and related information are not necessary
for fair presentation, but will be presented as additional analytical data. This supplemental information,
as required by GASB 103 , will be subjected to the tests and other auditing procedures applied in the
audit of the basic financial statements, and an opinion will be given as to whether the supplemental
information is fairly stated in all material respects in relation to the basic financial statements taken as
a whole. The auditor shall express an opinion on the budgetary comparison information for the General
Fund, annually budgeted major and special revenue funds. An opinion will not be given on the
Management Discussion and Analysis.
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The working papers shall be retained and made available upon request for no less than three years
from the date of the Audit report.
4. The audit will also include the following:
a. Pre-planning conference with Finance staff where both the auditor and Finance staff
discuss their expectations of the audit.
b. Interim audit work prior to June 30th and/or prior to final close.
c. Attendance at the City Council meeting in January for presentation of the financial
statements by Auditor with comments and potential questions from the Board as
requested. The Council meeting is typically held on the 1st and 3rd Tuesday of each month
at 5:30 PM.
5. The audit should encompass all funds and entity-wide activities as reported in the City's
Comprehensive Annual Financial Report (CAFR) at June 30, 2026 and any additional funds or entity-
wide activities that may be added subsequent to that date.
6. If required, the audit firm will issue a management letter to the City Council after completion of
the audit and assist management in implementing recommendations, as is practical. City staff also
request that an informal letter be addressed to the Finance Officer with any efficiency, internal control
or accounting improvements that could be made based on the audit staff's observation during their
fieldwork. All content must be discussed with the Finance Officer prior to issuance. The audit firm is
encouraged to discuss the content while the management letter is in draft form to ensure that all parties
fully understand the circumstances that lead to auditor comments.
7. The Auditor will be responsible for the completion of certain schedules/documents as to proper
format and content, including the Basic Financial Statements, supplementary information and
compliance reports such as the AIFR. The Auditor will also prepare the MD&A. Guidance may be
required for new note disclosures, all outstanding and effective authoritative standards and other
reporting requirements at June 30 year-end. Cost for providing these services should be included in
the auditor's base fee quote and will not be considered extra for additional billings. In cases, however,
where services requested would require a more in-depth scope and require work significantly above
the original fee quote, such additional fees must be negotiated prior to commencement of work.
Auditor Requirements
The audit firm is considered to be an independent contractor and will be wholly responsible for the
services and the supervision of its own employees and permitted sub-contractors.
A planning meeting will be held each year to determine estimated timeframes that will be established
and interim audit work will be planned. Adequate notification will be given prior to any changes in
estimated times.
If the City of Roanoke Rapids audit engagement is subject to the standards for audit as defined in
Government Auditing Standards, 2018 revisions, issued by the Comptroller General of the United
States, then by accepting this engagement, the Auditor warrants that he has met the requirements
for a peer review and continuing education as specified in Government Auditing Standards. The
Auditor must provide a copy of their most recent peer review report with their proposal.
The City staff will prepare all standard year-end accruals and other adjusting journal entries. The
Auditor will prepare the government wide year-end adjusting journal entries as well as any necessary
entries to allocate the state pension balances. The City shall designate an individual, such as the
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Finance Officer, with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee
the services and accept responsibility for the results of the services performed. The City management
will ultimately be responsible for the preparation and fair presentation of the financial statements,
which includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements. The Auditor will do the preparation, typing,
proofing, printing, and copying of the Basic Financial Statements, supplementary information and
compliance reports such as the AIFR. The Auditor will prepare the MD&A. A preliminary draft of the
audit and required adjusting journal entries must be submitted to the Finance Officer by December 1st
for proofing and reconciliation to the City's records to allow ample time for review and corrections
before it is sent to the Local Government Commission. The City of Roanoke Rapids' Finance Officer
will return the draft to the Financial Statement Preparer with proposed revisions within 10 working
days. The financial statement preparer will be ultimately responsible for the preparation, typing,
proofing, printing, and copying of the Basic Financial Statement, supplementary information and all
applicable compliance reports.
Meeting LGC deadlines is a high priority for the City. Therefore, City of Roanoke Rapids prefers
interim fieldwork be completed in March. Year-end fieldwork should begin October 1st and be
completed by October 31st. An agreed upon post-closing trial balance must exist by November
10th. The Finance Officer will expect a listing of requested information needed for the audit at
the preplanning conference, periodic conferences during the conduct of the audit, as well as an exit
conference prior to the completion of fieldwork.
The timing of the draft and review should insure final completion of the Financial Statements by
November 30th For every week the audit is late due to no fault of the City of Roanoke Rapids, there
will be a reduction in the audit fee of $100.00.
The auditor is responsible for completing the required data input sheet and electronically submitting
the final Audit report/ CAFR as a text-based PDF file to the State & Local Government Financial
Division when (or prior to) submitting the final invoice for audit services rendered to the Commission.
In the event that circumstances arise during the audit that require work to be performed in excess of
the original estimates, any additional costs will be negotiated prior to commencement of the work
and an amended contract will be approved by the governing board and forwarded to the staff of
the LGC for approval.
Either the manager or partner of the audit staff is required to present and attend the City Council
meeting in which the Audit report is presented. Required communications to the Council can be
delivered at this point, as well as general comments regarding the audit process and the results of the
audit. Finance staff will coordinate this presentation and determine the date and time of the meeting,
typically held in January following the audit completion.
Audit Contract: Period & Payment of Audit Fees
The City intends to continue the relationship with the auditor for no less than three (3) years starting
with fiscal year ending June 30, 2026. Continuation after the first-year contract will be based on an
annual review of the Auditor, recommendation of the department staff, satisfactory negotiation of terms
(including price), and availability of an appropriation. Each year after negotiation has taken place an
annual contract documenting the terms of the audit will be signed. Since one governing board may
not obligate future governing boards, the remaining years of the agreement are subject to annual
governing board approval. After the initial three-year period, an annual extension may be granted by
the City based on the above-mentioned criteria and City Council (Board) concurrence for up to two
additional years or until a determination is made to request new proposals. The years identified under
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this RFP are:
July 1, 2025 to June 30, 2026
July 1, 2026 to June 30, 2027
July 1, 2027 to June 30, 2028
The required current revision of the form "Contract to Audit Accounts" (form LGC-205) is required to
be executed as the contract document; however, the auditor and the City may also execute an
engagement letter and/or a City contract to include additional terms not addressed in the LGC-205.
The entire audit contract package must be approved by the staff of the Local Government
Commission. Invoices are subject to approval by the LGC prior to payment by the City. Interim or
progress billings for services rendered marked approved by the LGC will be paid up to 75%
of the total fee prior to submission of the final audited financial statements to the staff of the Local
Government Commission. The final 25% of the Audit fees (final invoice) will be paid when the financial
statements, single audit (if applicable), management letter and amended contract (if applicable) have
been reviewed or approved by the LGC.
The LGC only approves invoices for audit related work. Requests for payment related to any
additional agreed upon services do not require LGC approval. Final invoices for these services will
be paid after the final report results and findings have been reviewed and deemed satisfactory by
City staff.
Description of Selection Process
The City requests that no City officials be contacted during this proposal process. Submit
questions regarding the RFP in writing via email to cjohnson@roanokerapidsnc.gov. Any additional
information disclosed to participating audit firms prior to bid submission will be shared with all
interested parties
Proposals must be submitted in two sections and must be physically signed by an authorized
representative of the Audit firm. The first section will be comprised of the audit firm's prior
experience and qualifications of its personnel in performing governmental audits. The second
section will consist of completed cost estimate sheets. The Finance Office staff will evaluate the
auditor/firm on educational and technical qualifications. The firm best meeting the City's expectations
for experience, audit approach, and cost requirements will be selected.
Please keep in mind that cost, while an important factor will not be a sole determining factor. Unusually
low bids that are obviously out of line with other bidders or are significantly lower than our current fees
will raise concern. The lowest bid will not automatically be awarded preferential consideration.
The City reserves the right to reject any or all bids, waive technicalities, and to be the sole judge of
suitability of the services for its intended use and further specifically reserve the right to make the
award in the best interest of the City.
Failure to respond to any requirements outlined in the RFP, or failure to enclose copies of the
required documents, may disqualify the bid. Firms must be registered with the North Carolina
State Board of CPA Examiners.
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Section 1 - Profile of the Firm
The first section should address the requested information below. The corresponding responses
should begin with the number below for the requested information.
1. Indicate the Audit firm's North Carolina office location(s) that will handle the audit.
2. Indicate the number of people (by level) located within the Audit firms local office that will
handle the audit.
3. Provide a list of the audit firms' local office's current and prior government audit clients,
indicating the type(s) of services performed and the number of years served for each.
4. Indicate the experience of the local office in providing additional services to government clients
by listing the name of each government, the type(s) of service performed, and the year(s) of
engagement.
5. Describe your audit organization's participation in AICPA sponsored or comparable quality
control programs (peer review). Provide a copy of the firm's current peer review.
6. Describe the professional experience in governmental audits of each senior and higher level
person assigned to the audit, the years on each job, and his/her position while on each audit.
Indicate the percentages of time each senior and higher-level personnel will be on site.
7. Describe the relevant experience and education with the new GASBS reporting requirements,
seminars and courses attended within the past three years. Courses in governmental accounting
and auditing should be clearly communicated.
8. Describe the professional experience of assigned individuals in auditing relevant government
organizations, programs, activities, or functions (e.g., Water/Sewer service functions).
9. Describe any specialized skills, training, or background in public finance of assigned individuals.
This may include participation in State or national professional organizations, speaker or
instructor roles in conferences or seminars, or authorship of articles and books.
10. Provide names, addresses, and telephone numbers of personnel of current and prior
governmental audit clients who may be contracted for a reference.
11. Describe the firm's Statement of Policy and Procedures regarding Independence under
Government Auditing Standards (Yellow Book), July 2018 Revision. Provide a copy of the firm's
Statement of Policy and Procedures.
12. Is the firm adequately insured to cover claims? Describe liability insurance coverage
arrangements.
13. Describe any regulatory action taken by any oversight body against the proposing audit
organization or local office.
14. Comment on your knowledge of and relationship with the NC Local Government Commission
and the University of North Carolina School of Government in Chapel Hill.
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Section 2 - Audit Approach and Cost Estimate
Proposals should include completed cost estimate sheets and any other necessary cost information
in a separate, sealed envelope marked - "Cost Estimate." The City will evaluate the qualifications of
all firms submitting proposals before considering the Cost Estimate.
1. Type of audit program used (tailor-made, standard government, or standard commercial).
2. Use of statistical sampling.
3. Use of automated processes and internal control testing methods
4. Use of computer audit specialists.
5. Organization of the audit team and the approximate percentage of time spent on the audit by
each member.
6. Information that will be contained in the management letter.
7. Assistance expected from the government's staff, if other than outlined in the RFP.
8. Tentative schedule for completing the audit within the specified deadlines of the RFP.
9. Specify costs using the format below for the audit year July 1, 2025 to June 30, 2026. For the
two audit years, which follow, list the estimated costs. The cost for the audit year ending June
30, 2026 is binding, while the second and third years are estimated costs. Cost estimates must
indicate the basis for the charges and whether the amount is a "not-to- exceed" amount.
A. Audit firm personnel costs - Itemize the following for each category of personnel (partner,
manager, senior, staff accountants, clerical, etc.) with the different rates per hour.
* Estimated hours: please categorize estimated hours into the following: interim
work, year-end work, and financial statement preparation and compliance reports work.
* Rate per hour.
* Total cost for each category of personnel and for all personnel costs in total.
B. Travel - itemize transportation and other travel costs separately.
C. Cost of supplies and materials - itemize.
D. Other costs - completely identify and itemize.
* If applicable, note your method of determining increases in audit costs on a year to
year basis
10. Please list any other information the firm may wish to provide.
11. Please include the Summary of Audit Costs Sheet with your proposal.
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Time Schedule for Awarding the Contract
RFP Release Date
April 13, 2026
Deadline for RFP Questions * April 27, 2026 by 5:00 pm
Questions to be Answered No
Later Than May 1, 2026 by 5pm
Deadline for Receipt of Proposals May 13, 2026 by 3:00 pm
** City of Roanoke Rapids, Finance
Department
Attn: Carmen Johnson, Finance Officer
1040 Roanoke Ave (PO Box 38)
Roanoke Rapids, NC 27870
Notice of Recommended Firm May 15, 2026
Council Approval May 19, 2026
*Any questions should be directed to Carmen Johnson, Finance Officer, at (252) 533-2841 or
cjohnson@roanokerapidsnc.gov. Appointments may be scheduled to discuss further any specific
matters necessary in preparing your proposal.
** Proposals can either be submitted electronically (email) to cjohnson@roanokerapidsnc.gov or on
paper by May 13, 2026 by 3:00 pm. Envelopes containing proposals on paper should be clearly
identified on the front with the words "RESPONSE TO RFP FOR AUDIT SERVICES".
Please note your email should include two separate pdf attachments for sections 1 and 2
Envelopes should include Three copies of the bound proposal (clearly separating
section 1 and 2) should be delivered to: City Hall, Attn: Finance Department, 1040
Roanoke Avenue, Roanoke Rapids, NC 27870
City of Roanoke Rapids reserves the right to request additional information deemed necessary to aid
in the selection process.
The evaluation and selection criteria and process contained in this RFP will be used by the Review
Committee, consisting of the City Manager, Finance Director, Deputy Finance Director and
Purchasing Agent, to evaluate the Proposals. The Finance Director plans to report the evaluation
outcome to the City Council and seek the City of Roanoke Rapids City Council's concurrence and
authorization to consider entering into an agreement with the selected Prospective Auditing Firm at
the May 19, 2026 Council meeting. The City will enter into a contract with the Prospective Auditing
Firm that is selected by the City of Roanoke Rapids City Council.
Description of the Governmental Entity and Its Accounting System
Reference should be made to the most recent CAFR/Audit report for a general overview of the City. A
PDF copy of the most recent CAFR/Audit report is located on the City's website see below or by
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emailing cjohnson@roanokerapidsnc.gov.
www.roanokerapidsnc.gov
Funds
City of Roanoke Rapids maintains the following funds:
Governmental Funds:
General Fund
Police Evidence Fund
Drug Enforcement Fund
Capital Outlay
Fixed Assets
Proprietary Funds
Enterprise Funds: Solid Waste Fund
Grants, Entitlements, and Shared Revenues
A copy of the Schedule of Federal and State Expenditures and a Summary of Auditor's Results
showing the major programs for the year ended 2025 can be found in the CAFR (OR AUDIT REPORT)
located on the City's website.
Budgets
The City annual budget is adopted for the General Fund, Police Evidence Fund, Drug
Enforcement Funds, Capital Outlay, Fixed Assets and one enterprise fund, Multi Year project
ordinances are prepared for Capital Project funds throughout the year.
All budgets are prepared using the modified accrual basis of accounting. All appropriations
for annually budgeted funds are made at the departmental level and at the project level for
the multi-year funds. The City also maintains an encumbrance system. Both the budgetary
and encumbrance systems are integrated with the accounting system to provide comparison
with actual expenditures.
Accounting Records
The City maintains all its accounting records at the finance office located at 1040 Roanoke Avenue,
Roanoke Rapids, NC 27870. All accounting journals and subsidiary ledgers are maintained on
OpenGov Financials software.
Assistance Available to Auditor
The City has designated the Finance Director as the person with suitable skills, knowledge, and/or
experience necessary to oversee the services and accept responsibility for the results of the services
performed. An electronic version of the trial balance with budgeted amounts will be made available
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October 1st. The following accounting procedures will be completed and documents prepared by the
City's staff no later than October 1st.
The books of account will be fully balanced.
All subsidiary ledgers will be reconciled to control accounts.
All bank account reconciliation's for each month will be completed.
The City's personnel will prepare the following items:
General
1. Working Balance Sheet for each fund.
2. Working Statement of Revenues, Expenditures, and Transfers for each fund.
3. Working Statement of Cash Flows where required.
4. General Ledger transaction detail report for each account.
5. A copy of the original budget, all amendments, and the final budget as of June 30, 20xx.
6. A copy of all project ordinances and all amendments for active projects during the audit
period.
7. A copy of board policies, including travel and investment policies, debt policies, fund balance
policies and purchasing policies including how the pre-audit process is performed.
8. Copies of all signed Board meeting minutes.
9. Copies of all correspondence with the staff of the Local Government Commission, including
semiannual Cash and Investment Reports (LGC-203), unit letters, letters regarding the audited
financial statements and compliance reports for the previous year.
10. Required supplementary information, e.g. actuarial information for the Law Enforcement
Officers' Separation Allowance and Other Postemployment Benefits (OPEB)
Cash and Investments
1. All bank reconciliations for each month.
2. List of outstanding checks by account, showing check number, date, and amount.
3. Schedule of all investments for all funds at the audit date, showing book value and estimated
market value at fiscal year-end.
Receivables
1. Listing of unpaid tax bills in detail totaled by year as of fiscal year end.
2. Listing of outstanding receivables by account as of the fiscal year end.
3. Listing of outstanding receivables in detail as of the fiscal year end.
4. Schedule of miscellaneous receivables booked as of the fiscal year end.
Other Assets
1. Schedule of insurance coverage.
Capital Assets
1. Listing of all capital assets
2. Printout of all capital asset acquisitions made during the audit year.
3. Printout of all capital asset dispositions made during the audit year.
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