RFQ 26-03 Professional Audit Services

CITY OF LA MARQUE, TEXAS
REQUEST FOR QUALIFICATIONS (RFQ)
PROFESSIONAL AUDIT SERVICES
RFQ No. 26-03
Issued by: Finance Department
Proposal Due Date: August 1, 2026 @ 10:00 A.M.
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City of La Marque, Texas
Request for
Qualification
Professional Audit
Services
Table of Contents
1. INTRODUCTION ................................................................................ 3
2. CALENDAR OF EVENTS........................................................................ 4
3. EVALUATION CRITERIA ....................................................................... 4
4. SCOPE OF AUDIT SERVICES REQUIRED ..................................................... 5
5. DESCRIPTION OF THE CITY ................................................................... 7
6. SUPPLEMENTARY INFORMATION ............................................................. 9
7. AUDIT QUALIFICATIONS & QUESTIONS .................................................... 10
8. BIDDING INSTRUCTIONS/REQUIREMENTS ................................................. 11
APPENDIX I ........................................................................................ 15
APPENDIX II ....................................................................................... 16
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INTRODUCTION
11..1 The City of La Marque, Texas (the City) and La Marque Economic Development
Corporation (EDC) are soliciting proposals from qualified firms of certified public
accountants to audit each (the City and its component unit, EDC) financial statements
separately, for a three-year period for the fiscal years ending September 30, 2026,
September 30, 2027, and September 30, 2028, with an option to renew for a term of
two (2) additional fiscal years. These audits are to be performed in accordance with
generally accepted auditing standards, the standards set forth for financial audits in the
U.S. Government Accountability Office's (GAO) Government Auditing Standards, the
provisions of the federal Single Audit Act of 1984, as amended, and U.S. Office of
Management and Budget (OMB) Uniform Guidance (2 CFR Part 200, Subpart F).
1.2 There is no expressed or implied obligation for the City to reimburse responding
firms for any expenses incurred in preparing proposals to respond to this request.
1.3 During the evaluation process, the City reserves the right, where it may serve the
City's best interest, to request additional information or clarifications from proposers, or
to allow corrections of errors or omissions. At the discretion of the City, firms
submitting proposals may be requested to make oral presentations as part of the
evaluation process.
1.4 The City 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 RFQ, unless clearly
and specifically noted in the proposal submitted and confirmed in the contract between
the City and the firm selected.
1.5 It is anticipated that selection of a firm will be completed no later than August 31,
2026.
1.6 Term of engagement. A three year agreement, with an optional one-time two-
year extension is contemplated, subject to the review and recommendation of the
Finance Department and the satisfactory negotiation of terms (including a price
acceptable to both the City and the selected firm), and the annual availability of
appropriation. The total term of the engagement will not exceed five (5) years.
1.7 Subcontracting. No subcontracting will be permitted without the express prior
written consent of the City.
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CALENDAR OF EVENTS
2Th.e following is a proposed calendar of events for the auditor selection. Dates are
subject to change.
Date Description of Events
July 17, 2026 Issue Request for Qualifications
July 17, and July 24, 2026 Publish Notice for RFQ in local newspaper
August 1, 2026 Receive proposals by 10:00 a.m.
No later than August 24, 2026 Final recommendation to City Council/EDC Board
EVALUATION CRITERIA
33..1 The City Finance Department will review the submitted proposals. The
recommendation will be based on the proposal determined to be most advantageous on
behalf of the City and La Marque EDC.
3.2 Proposals delivered in response to this RFQ will be reviewed and evaluated by
Finance Department.
3.3 Proposals received in response to the RFQ will be evaluated based on the
Respondent's financial qualifications, demonstrated ability to meet the City's and
EDC's objectives for the requested services, experience in providing these and similar
services, and cost proposal. The Respondent's Proposal will be reviewed against the
terms of this RFQ for completeness and responsiveness and how well the Respondent
satisfies the evaluation criteria, specifically the criteria outlined in the Proposal Scope
and Audit Qualifications Section.
3.4 Proposal for City of La Marque and proposal for La Marque Economic Development
Corporation MUST be submitted SEPARATELY.
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While the City desires to achieve a cost-effective audit, the emphasis shall be on quality.
The contract will be awarded on the basis of demonstrated competence and
qualifications to perform the services for a fair and reasonable price, in accordance
with the Professional Services Procurement Act, Texas Government Code chapter 2254.
Fee information will be used to determine whether the proposed price is fair and
reasonable. COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF AN AUDIT
FIRM.
3.5 Proposal All proposals received shall be evaluated based on the best value for the City.
Best value shall be determined by considering all or part of the criteria listed below, as
well as any relevant criteria specifically listed in the solicitation.
Qualifications; 30%
Reputation of the Proposer and of Proposer's goods and services including the
references provided; 30%
The quality of the Proposer's goods or services; 15%
The extent to which the goods or services meet the City's needs; 15%
Proposer's past relationship with the City. All vendors shall be evaluated on their
past performance and prior dealings with the City to include, but not limited to,
failure to meet specifications, poor quality, poor workmanship, and late
delivery. 5%
Geographic location in relation to the city of La Marque 5%
SCOPE OF AUDIT SERVICES REQUIRED
44..1 The City desires the auditor to express an opinion on the fair presentation of the
City's general purpose financial statements in conformity with generally accepted
accounting principles.
4.2 The City also desires the auditor to express an opinion on the fair presentation of
its combining and individual fund and account group financial statements and schedules
in conformity with generally accepted accounting principles. The auditor is not required
to audit the statistical section of the report.
4.3 The auditor is responsible for the preparation of (1) an Annual Comprehensive
Financial Report (ACFR) for the City and (2) an Annual Financial Report for La Marque
Economic Development Corporation. (Separate reports and separate bills). In
addition, any required Schedule of Expenditures of Federal Awards (SEFA) will be
completed with the ACFR audits. An optional inclusion of a Popular Annual Financial
Report (PAFR) will be desired as well but not required.
4.4 To meet the requirements of this RFQ, the audit should be performed in accordance
with Generally Accepted Auditing Standards (GAAS) as set forth by the American
Institute of Certified Public Accountants, the standards for financial audits set forth in
the U.S. Government Accountability Office's Government Auditing Standards, the
provisions of the Single Audit Act of 1984, as amended, and the provisions of U.S. Office
of Management and Budget (OMB) Uniform Guidance (2 CFR Part 200, Subpart F).
Additionally, the single audit work will be conducted in accordance with generally
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accepted governmental auditing standards to meet all federal grant audit requirements.
4.5 Additionally, the contract will include language noting the Auditor must deliver a
final audit in time for the City to meet its Chapter 103 filing deadline.
4.6 The auditors should submit a list of requested client-prepared schedules to Finance
prior to the start of fieldwork. Because the accounting division must carry on its normal
operations during the audit, time constraints should be taken into account.
4.7 The financial statements of the La Marque Economic Development Corporation are
included as a component unit of the City. However, the La Marque Economic
Development Corporation would like to have a separate Annual Financial Report from
the City's annual audit.
4.8 Annual Comprehensive Financial Report (ACFR). The City may send its ACFR to
the Government Finance Officers Association of the United States and Canada (GFOA)
for review in its Certificate of Achievement for Excellence in Financial Reporting
program. It is anticipated that the auditor may be required to provide special assistance
to meet the requirements of that program.
4.7.1 The City previously received the Certificate of Achievement for Excellence in
Financial Reporting. The City therefore searches for a firm that actively participates
in technically assisting clients that have previously been awarded the certificate.
4.7.2 The auditor agrees to provide print-ready financial statements and audit opinion
to the City on or before March 28th.
4.7.3 The auditor assumes full responsibility for printing and binding the ACFR. The
auditor agrees to provide the City with a print-ready version of the ACFR in .pdf format.
4.7.4 The introductory and statistical sections of the ACFR will be prepared by the
auditors, with assistance from City staff.
4.7.5 The auditor will compile and prepare all financial statements and schedules in
the financial section of the ACFR.
4.7.6 The notes to the financial statements will be a joint effort of the City and the
auditors, and will be prepared by the auditor.
4.7.7 The financial section of the ACFR will be prepared by the auditor.
4.7.8 The City reserves the right to edit the auditor's ACFR and make
recommendations and/or modifications to the ACFR, in accordance with all applicable
governmental reporting requirements.
4.7.9 Certificate of Achievement. The auditors should have the City's ACFR
completed at the earliest possible date. The auditor may also prepare written
responses as required by the GFOA Certificate of Achievement for Excellence in
Financial Reporting, resulting from the prior year ACFR review.
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4.7.10 The schedule of federal financial assistance and related auditor's report, if
required, as well as reports on internal control structure and compliance are to be
issued as part of the ACFR.
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4.9 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 three (3) years,
unless the firm is notified in writing by the City of the need to extend the retention
period. The auditor will be required to make working papers available, upon request, to
the Finance Director, and/or the City Manager of the City.
4.10 Warranties.
4.9.1 Proposer warrants that it is willing and able to obtain an errors and
omission insurance policy providing a prudent amount of coverage for the willful
or negligent acts, or omissions of any officers, employee or agencies thereof.
4.9.2 Proposer warrants that it will not delegate or subcontract its
responsibilities under an agreement without the express prior written
permission of the City.
DESCRIPTION OF THE CITY
55..1 The Finance Director, will coordinate the City's day-to-day working relationship
with the independent auditors.
5.2 The City's population estimate is 20,500. The City's fiscal year begins on October
1st and ends on September 30th of the following year.
5.3 More detailed information about the City and its finances can be found in prior
ACFRs and budget presentations. These are available to the proposers upon request or
on the City's website at La Marque, TX - Official Website | Official Website.
5.4 Fund Structure. As of October 1, 2025, the City's fund structure is as follows:
Number of Number with
Individual Legally
Fund Type/Account Group Funds Adopted
Ann al
General fund 1 1
Special revenue funds (*) 17 17
Debt service funds 1 1
Capital projects funds 4 4
Enterprise funds 2 2
Internal service funds 1 1
Agency funds 1 1
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Pension trust funds 0 0
General fixed assets
account group 1 N/A
General long-term debt
account group 1 N/A
(*) - Includes Component Unit - La Marque Economic Development Corporation
5.5 The City prepares its budgets on the modified accrual basis of accounting for all
funds. Depreciation is not budgeted in enterprise fund, and capital outlay is budgeted
as an expense in enterprise fund.
5.6 During the fiscal year(s) to be audited, the City may receive the following grants
and/or financial assistance: Community Development Block Grant funds from GLO and
TDA, Federal Criminal Justice Division grants, Federal Emergency Management Agency
(FEMA), Texas Parks and Wildlife, American Rescue Plan Act, Galveston County, and the
State of Texas.
5.7 Pension Plans. The City participates in the Texas Municipal Retirement System
(TMRS).
5.8 Component units. The City reporting entity currently includes the La Marque
Economic Development Corporation (EDC) as a component unit in its ACFR. The
Members of the La Marque Economic Development Corporation are comprised of five
Board members appointed by the City Council. Since the composition of this board is
significantly influenced by the City, this organization is included as component units of
the City.
5.9 Availability of Prior Audit Reports and Working Papers. Interested proposers who
wish to review prior years' audit reports and management letters should submit a
request to financedirector@cityoflamarque.gov.
The City shall endeavor to make prior audit reports and supporting working papers
available to proposers to aid their response to this RFQ.
5.10 Computer Systems. The City currently uses OpenGov (used to be STW) for
financials, cashiering and utility billing and Library, and Tyler Technology, Incode
Version 10 for municipal court and its cashiering function. Payroll and Human Resources
uses NeoGov from January 2026 forward and used STW prior to the transition.
Permitting and Code offices use Smart Gov to process permits and licenses, code
compliance and liens, and cashiering for permits inspections and code activities but are
transitioning to OpenGov.
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5.11 Work area, telephones and photocopying. The City will provide the auditor with
reasonable work space, desk and chairs. The auditor will also be provided reasonable
access to appropriate telephones, photocopying and internet connections. Remote
work is acceptable when able.
SUPPLEMENTARY INFORMATION
66..1 The financial section of the ACFR will include supplementary data to which the
opinion must extend with respect to the manner in which the City has carried out the
requirements of its bond ordinances. This will include a schedule showing the revenue
bond debt service coverage. Any of the information upon which the auditor expresses
an opinion may be used by the City as a part of an Official Statement or as a stand-alone
document in selling any City bonds or debt.
6.2 The opinion will also extend to an aggregating schedule of balance sheet accounts
and an aggregating schedule of revenues, expenses, and retained earnings accounts for
all Water and Wastewater Funds. The schedules will follow the combining financial
statements and will provide details as to the operating accounts, debt service accounts,
and capital project accounts which aggregate to the enterprise fund totals. These
schedules are to be prepared by the auditors.
6.3 Implementing New Accounting Standards. The auditor's assistance and
consultation will be required in implementing new GASB statements at the earliest
possible date, even if prior to the required effective date.
6.4 Management Letter.
6.4.1 The auditor will communicate in a letter to management any reportable
conditions found during the audit. A reportable condition is defined as a significant
deficiency in the design or operation of the internal control structure, which could
adversely affect the City's ability to record, process, summarize, and report financial
data consistent with the assertions of management in the financial statements.
Reportable conditions that are also material weaknesses should be identified as such
in the report.
6.4.2 The management letter will be presented no later than April 30th to the City's
Finance Director, City Manager, and City Council. However, all significant management
recommendations should be discussed with the Finance Director as they are
discovered, so that the City can ensure immediate correction of any problems. An
interim management letter may be requested depending on the nature of findings.
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