PROFESSIONAL AUDITING SERVICES

REQUEST FOR PROPOSALS April 27, 2026
INTRODUCTION
General Information
The City of Jacksonville, Texas ("City") is requesting proposals from qualified firms of certified public
accountants to audit its financial statements for the fiscal year ending September 30, 2026, with the
option of auditing its financial statements for each of the four (4) subsequent fiscal years. These audits
are to be performed in accordance with generally accepted auditing standards as well as the following
additional requirements:
There is no express or implied obligation for the City to reimburse responding firms for any expenses
incurred in preparing proposals in response to this request.
A pre-proposal conference for all the firms interested in submitting a proposal will be held at 11:00 AM
on May 18, 2026 at 315 S. Ragsdale St., Jacksonville, TX 75766 in the City Council Chambers to answer
questions about the engagement. After this preproposal conference, any inquiries concerning the
request for proposals should be addressed to the Finance Director.
To be considered, one physical and one digital copy of the proposal must be received by the Finance
Director at 315 S. Ragsdale St., Jacksonville, Texas 75766 by 3:00PM on May 29, 2026. The physical
address is 315 S. Ragsdale St., Jacksonville, Texas 75766 and the mailing address is P.O. Box 1390
Jacksonville, Texas 75766-1390. The City reserves the right to reject any or all proposals submitted.
Proposals submitted will be evaluated by the City based on criteria established within this proposal.
During the evaluation process the City reserves the right, where it may serve the City's best interest, to
request additional information or clarification 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.
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 request for proposals, unless clearly and specifically noted in the proposal
submitted and confirmed in the contract between the City and the firm selected.
It is anticipated the selection of a firm will be completed by June 9, 2026. Following the notification of
the selected firm it is expected a contract will be executed between both parties by June 12, 2026.
Term of Engagement
A five (5) - year contract is contemplated, subject to annual review, the satisfactory negotiation of terms
(including a price acceptable to both the City and the selected firm), the concurrence of the City Council
and the annual availability of an appropriation.
Subcontracting
Firms submitting proposals may consider subcontracting portions of the engagement to small audit
firms or audit firms owned and controlled by socially and economically disadvantaged individuals. If this
is to be done, that fact, and the name of the proposed subcontracting firms, must be clearly identified in
the proposal. Following the award of the audit contract, no additional subcontracting will be allowed
without the express prior written consent of the City.
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REQUEST FOR PROPOSALS April 27, 2026
NATURE OF REQUIRED SERVICES
General
The City is soliciting the services of qualified firms of certified public accountants to audit its financial
statements for the fiscal year ending September 30, 2026, with the option to audit the City's financial
statements for each of the four (4) subsequent fiscal years. These audits are to be performed in
accordance with the provisions contained in this request for proposals.
Scope of Work to be Performed
The City values a collaborative working relationship and expects timely communication and
responsiveness throughout the audit process. The City desires the auditor to express an opinion on the
fair presentation of its governmental activities, its business-type activities, its aggregated discretely
presented component unit, each of its major funds, and its aggregated remaining fund information in
conformity with generally accepted accounting principles.
The auditor is not required to audit the combining and individual fund financial statements and
supporting schedules. However, the auditor is to provide an "in-relation-to" report on the combining
individual fund financial statements and supporting schedules based on the auditing procedures applied
during the audit of the basic financial statements.
The auditor is not required to audit the introductory and statistical sections of the report, but should be
reviewed for consistency with the audited financial statements.
The auditor shall also be responsible for performing certain limited procedures involving required
supplementary information required by the Governmental Accounting Standards Board as mandated by
generally accepted auditing standards.
The auditor's assistance and consultation will be required in implementing new GASB and FASB
statements at the earliest possible date, even if prior to the required effective date.
Auditing Standards to be Followed
The audit shall 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, as amended, and the Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (2 CFR Part 200, Subpart F).
The City anticipates that a Single Audit will be required for the foreseeable future due to federal funding
associated with the Texas Water Development Board (TWDB). Accordingly, the auditor shall include
Single Audit procedures and reporting as part of the base audit engagement.
Reports to be Issued
Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue a
report on the fair presentation of the financial statements in conformity with generally accepted
accounting principles.
The auditor shall communicate in a letter to management any reportable conditions found during the
audit. A reportable condition shall be defined as a significant deficiency in the design or operation of
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REQUEST FOR PROPOSALS April 27, 2026
the internal control structure, which could adversely affect the organization's ability to record, process,
summarize, and report financial data consistent with the assertions of management in the financial
statements.
Irregularities and illegal acts. Auditors shall be required to make an immediate written report of all
irregularities and illegal acts of which they become aware to the following parties:
City Manager
315 S. Ragsdale St.
Jacksonville, Texas 75766
(903) 586-3510
Report to the City Council and JEDCO Board of Directors. Auditors should ensure that the City Council
and JEDCO Board of Directors are informed of each of the following:
1. The auditor's responsibility under generally accepted auditing standards
2. Significant accounting policies
3. Management judgments and accounting estimates
4. Significant audit adjustments
5. Other information in documents containing audited financial statements
6. Disagreements with management
7. Management consultation with other accountants
8. Major issues discussed with management prior to retention
9. Difficulties encountered in performing the audit
Special Considerations
The City will send its Annual Comprehensive Financial Report (ACFR) to the Government Finance Officers
Association of the United States and Canada for review in their Certificate of Achievement for Excellence
in Financial Reporting program. It is anticipated that the auditor will be required to provide special
assistance to the City to meet the requirements of that program.
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 (5)
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 City or its designees.
In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor
auditors to review working papers relating to matters of continuing accounting significance.
NATURE OF ADDITIONAL SERVICES INCLUDED IN SCOPE
Scope of Additional Services
The auditor is responsible for assisting the City with the preparation of its ACFR.
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REQUEST FOR PROPOSALS April 27, 2026
Reports to Be Issued
ACFR - The auditor agrees to provide print-ready financial statements and audit opinion on or before
February 28, 2027. The auditor also agrees to provide the City with a print-ready version of the ACFR in
.pdf format to facilitate the printing of additional copies and posting the ACFR on the City's website.
The auditor will assist the City in the preparation of the ACFR, including the financial section and notes
to the financial statements. City management will be responsible for the final content and presentation.
DESCRIPTION OF THE GOVERNMENT
Name of Contact Persons/Organizational Chart/Location of Offices
The auditor's principal contact with the City will be the Finance Director; or a designated representative
who will coordinate the assistance to be provided by the City to the auditor.
An organizational chart (Appendix A) and a list of key personnel (Appendix B) are attached.
Background Information
The City serves an area of 14.1 square miles with an estimated population of 15,000. The City's fiscal
year begins on October 1st and ends on September 30th. The City provides the following services to its
citizens:
Public safety (Police, Fire, EMS), Library, Parks, Swimming Pool, Public Services (Water and Sanitary
Sewer), Streets and Street Lighting and Building and Code Enforcement. The City also owns and
manages Lake Jacksonville.
The City has a total budgeted payroll of $12,564,387 covering 144.6 full-time equivalent employees in
fiscal year 2026.
The City is organized into 26 departments. The accounting and financial reporting functions of the City
are centralized.
More detailed information on the government and its finances can be found in the City's Official Budget
document for the 2025-2026 Fiscal Year, and the City's ACFR. These reports can be found on the City's
website, Audits / Budgets / Tax Rates | Jacksonville, TX (jacksonvilletx.org). The City's Statement of
Fiscal and Budgetary Policies are also available on the website at Financial Policies | Jacksonville, TX
(jacksonvilletx.org).
Reporting Entity
* Discretely Presented Component Unit:
Jacksonville Economic Development Corporation (JEDCO)
o
* Major Governmental Funds
General Fund
o
Debt Service Fund
o
Capital Projects Fund
o
Grants Fund
o
* Non-major Governmental Funds
Vehicle / Equipment Replacement Fund
o
Hotel / Motel Occupancy Tax Fund
o
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REQUEST FOR PROPOSALS April 27, 2026
Court Building Security and Technology Fund
o
Court Child Safety Trust Fund
o
Police State Forfeiture Fund
o
Police Federal Forfeiture Fund
o
Police LEOSE Fund
o
Venue Project Fund
o
* Major Proprietary Funds
Water and Wastewater Utility Fund
o
* Fiduciary Fund
Beautification Fund
o
Budgetary Basis of Accounting
The City uses the cash basis of budgeting for all funds. By contrast, the audited financial statements
(ACFR) use modified accrual for governmental funds and accrual for proprietary and fiduciary funds.
Therefore, the basis of budgeting differs from the basis of accounting used in the ACFR.
Revenues are budgeted when cash is received; expenditures are budgeted when cash is paid. Each
fund's beginning balance represents the projected cash starting position (prior year estimated ending
cash/net position adjusted for timing).
Pension Plans
The City participates in the Texas Municipal Retirement System ("TMRS"), an agent multiple-employer
public employee retirement system.
Component Unit
The Jacksonville Economic Development Corporation (JEDCO) - Established in 1995, the Corporation is a
nonprofit industrial development corporation specifically governed by the Development Corporation
Act. The purpose of the Corporation is to promote, assist, and enhance economic development. The
corporation is governed by a board of directors appointed by the City Council.
Magnitude of Finance Operations
The finance department is headed by the Finance Director and consists of two (2) full time employees.
The principal functions performed within this department include general accounting, accounts payable
processing, purchase order processing, financial report generation, centralized payroll processing and
treasury functions.
Internal Audit Function
There is no designated internal auditor position. Finance duties are aligned so that most functions are
subject to a second approval or review. Monthly reconciliations are performed along with the
generation of monthly financial reports which are reviewed by the Finance Director.
Availability of Prior Audit Reports and Working Papers
Interested proposers who wish to review prior years' audit reports and management letters should
contact Paula Lowe at Pattillo, Brown & Hill, LLP. at (254) 772-4901 ext. 263. The City 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.
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REQUEST FOR PROPOSALS April 27, 2026
TIME REQUIREMENTS
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 April 27, 2026
Pre-proposal conference May 18, 2026
Due date for proposals May 29, 2026
Notification and Contract Dates
Firm selected by City Council June 9, 2026
Selected firm notified June 10, 2026
Contract date June 12, 2026
Audit Schedule
Schedule for the 2025-2026 Fiscal Year Audit (A similar time schedule will be developed for audits of
future fiscal years if the City exercises its option for additional audits).
An audit schedule for the Fiscal Year 2025-2026 is included herein as Appendix C. This schedule consists
of target due dates for:
1. Completion of Interim work
2. Development of an audit plan
3. Field work
4. Submission of draft reports
5. Conferences
6. Submission of Final Reports
7. Submission of ACFR
ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT
PREPARATION
Finance Department and Clerical Assistance
The finance department staff and responsible management personnel will be available during the audit
to assist the firm by providing information, documentation and explanations. The preparation of
confirmations will be the responsibility of the City.
Statements And Schedules to Be Prepared by the Staff of the City
The staff of the City currently prepares the PBC list which is included as Appendix D. Please include any
additional statement or schedule that may be required in your proposal.
Work Environment and Technology Access
The City utilizes a primarily electronic and remote audit environment. The City's preference is for audit
work to be performed remotely to the greatest extent possible, using secure electronic document
exchange and virtual communication methods.
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REQUEST FOR PROPOSALS April 27, 2026
The City will provide electronic access to financial records, supporting documentation, and reports
through its financial systems and secure file-sharing platforms. Virtual meetings can be accommodated
via Microsoft Teams or similar platforms.
If limited on-site work is required, the City will provide reasonable workspace, including desks and
chairs, as well as access to Wi-Fi and basic office equipment as needed. Any anticipated on-site work
should be clearly identified in the audit proposal.
The auditor shall utilize secure methods for all data transmission and document exchange, including the
use of a secure client portal or equivalent technology. The firm shall describe its data security protocols,
including encryption standards, access controls, and safeguards in place to protect confidential and
sensitive information.
PROPOSAL REQUIREMENTS
General Requirements
One physical and one electronic copy of the proposal must be received prior to 3:00 PM (local time),
Friday, May 29, 2026. All copies of the proposal must be under sealed cover and plainly marked as
"Professional Auditing Services Proposal" and delivered to:
Physical Address: Finance Director
315 S. Ragsdale St.
Jacksonville, Texas 75766
Mailing Address: Finance Director
P.O. Box 1390
Jacksonville, Texas 75766-1390
Inquiries regarding the RFP may be addressed by phone at 903-586-3510 or by e-mail at
finance@jacksonvilletx.org. Inquiries should be conducted during normal business hours, Monday
through Friday. Inquiries to any other person other than the person so named in this RFP may result in
elimination of the proposal from any further consideration.
Submission of Proposals
Separate proposals are to be submitted for required and optional services.
The following must be included in the proposal and is required to be received by 3:00 PM, Friday, May
29, 2026 for a proposing firm to be considered:
Title Page showing the request for proposals subject; the firm's name; the name, address, phone
number and e-mail address of the contact person; and the date of the proposal.
Table of Contents
Signed Transmittal Letter briefly stating the proposer's understanding of the work to be done, the
commitment to perform the work within the time period, a statement why the firm believes itself to be
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