260341 Audit

Location:	Texas
Posted:	Apr 16, 2026
Due:	May 21, 2026
Agency:	Education Service Center
Type of Government:	State & Local
Category:	R - Professional, Administrative and Management Support Services
Publication URL:	To access bid details, please log in.

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REQUEST FOR PROPOSAL #260341

ANNUAL FINANCIAL AUDIT

EDUCATION SERVICE CENTER, REGION 20

Education Service Center, Region 20 (the “Center”) is requesting proposals from public

accounting firms to perform the annual audit for fiscal year ending August 31, 2026. Proposals

must be received no later than 2:00 p.m. May 21, 2026.

BACKGROUND INFORMATION

Auditing requirements for education service centers is contained in the Texas Education Agency

Financial Accountability System Resource Guide which is the authoritative document adopted by

reference as a rule of the State Board of Education, through Title 19, Texas Administrative Code,

Section 109.41.

The Center employs approximately 400 full-time and 190 part-time employees. The Center

receives financial assistance from approximately 60 to 70 federal projects and 45 to 55 State

projects. The 2025 fiscal year, total governmental funds operating revenues were $76,284,379, of

which $19,131,850 were from federal sources and $13,819,778 were from state sources. The 2025

fiscal year, total governmental funds operating expenditures were $70,671,989. The Center has six

Internal Service Funds, these include Print Services, ESC-20 Facilities, Adjunct Employees,

Billable Hours, Centralized Registration, and Center wide Network with annual expenses totaling

$21,467,195, in fiscal year 2025. The Center also has one Enterprise Fund, Braille Services, with

annual expenses of $825,365, in fiscal year 2025.

The Center’s Annual Financial and Compliance Report for the year ended August 31, 2025, has

been included with this Request for Proposal.

Purpose of the Audit

The purpose of the Request for Proposal is to obtain the services of a public accounting

firm for the annual audit for fiscal year ending August 31, 2026. The organization-wide

audit will encompass the financial statements as required by GASB Statement No. 34 and

the Texas Education Agency Financial Accountability System Resource Guide for the

Center for the fiscal year ending August 31, 2026. The audit is to be performed in

accordance with generally accepted auditing standards and generally accepted

government auditing standards contained in the Texas Education Agency Financial

Accountability System Resource Guide.

The financial statement audit is to determine whether (1) the financial statements present

fairly the financial position, results of operations, and cash flows or changes in financial

positions in accordance with generally accepted accounting principles, and (2) whether

the Center has complied with laws and regulations for those transactions and events that

may have a material effect on the financial statements. The financial related audit will

also include determining whether (1) financial reports and related items are fairly

presented, (2) financial information is presented in accordance with established or stated

criteria, and (3) the Center has adhered to specific financial compliance requirements.

As a part of the audit of the basic financial statements, the annual audit will also include

obtaining an understanding of the Center's internal control and reporting any significant

deficiencies or material weaknesses relating to the internal control systems coming to the

attention of the auditors. To comply with 2 CFR, Subpart F, a study and evaluation of

internal control will include internal accounting and administrative controls for all major

federal financial assistance programs, in accordance with standards for risk assessment

for major federal financial assistance. Any material weakness noted during the study and

evaluation of internal accounting and administrative controls and other kinds of

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noncompliance and questioned costs will be reported in compliance with the Single Audit

Act.

As part of the audit of the financial statements, transactions and records pertaining to

federal programs will be tested for material compliance with federal laws, rules, and

regulations, and all instances of noncompliance will be reported to the Center.

The audit will include the performance of certain audit procedures for the purpose of

reviewing the accuracy of fiscal information provided by the Center through the Public

Education Information Management System (PEIMS), as required by Section 44.008(b)

of the Texas Education Code.

Other Requirements

The accounting firm should be capable of providing an annual audit report in a form

acceptable to the Texas Education Agency and within the time frame stipulated in TEC

44.008 (d) of 150 days subsequent to the close of the fiscal year for which the audit was

made.

The Center provides completed financial statements and supporting schedules for auditor

review during the completion of the audit.

It is requested that the interested accounting firm include a detailed description of each

step in the audit approach that will be taken in the audit engagement including estimated

hours for each.

The firm, upon being awarded this engagement, will be expected to review the detailed

audit work plan and schedule with the Chief Operating Officer prior to commencing the

audit assignment each year.

Financial statements, must be in a format that complies with the requirements of the

Texas Education Agency.

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 Center of the need to extend

the retention period. The auditor will be required to make working papers available, upon

request, to auditors from the Texas Education Agency, The Government Accountability

Office, or other applicable governmental agencies, they are not otherwise considered to

be records open to the general public.

Independent Auditor

The interested accounting firm must demonstrate the capability to perform the annual

audit in accordance with generally accepted government auditing standards and State

Board of Education auditing rules. Public accounting firms that have performed annual

audits for similar entities are encouraged to file a proposal.

Term of the Audit Engagement

The contract for audit services based upon Board approval of the proposal will be for the

fiscal year ending August 31, 2026. The Center may request to extend this agreement for

another four years through fiscal year August 31, 2030, following satisfactory delivery of

the services specified in the proposal and engagement letter.

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Dispute Resolution

Disputes concerning the terms of contracted services that cannot be resolved will be

brought before and independent mediation center, whose decision will be binding upon

both parties.

General Terms

All contracts and agreements between vendors and Education Service Center, Region 20

shall strictly adhere to the statutes as set forth in the Uniform Commercial Code as last

amended in 1990 by the American Law Institute in the National Conference of

Commissioners on uniform state laws. Reference: Uniform Commercial Code, 1990

Official Text, 2/Sales.

Vendors are advised that Region 20 contracts are subject to all legal requirements

provided for in the Texas Education Code, Subchapter B, Section 44.031 and/or

applicable state and federal statutes. Any proposal after award becomes subject to the

Open Records Act, Article 6252-17a VTCS.

If product and/or service provided is not satisfactory to Region 20, this agreement can be

terminated at any time upon a 30-day written notice.

Region 20 reserves the right to all warranties, express and implied.

All parties agree that venue for any litigation arising from this contract shall lie in San

Antonio, Bexar County, Texas.

It is understood and agreed that Education Service Center, Region 20 reserves the right to

make minor modifications to conditions of this proposal due to unforeseen circumstances,

by mutual agreement with selected supplier, both at the time of acceptance of this

quotation offer as so modified, and subsequent thereto.

All vendors will accept Region 20 purchase orders to guarantee event and will bill

Region 20 for all services and charges.

TERMINATION FOR CONVENIENCE. Either party to this agreement may terminate

this agreement upon 30 days written notice of such termination.

TERMINATION FOR CAUSE. The Center may at its option immediately terminate this

agreement by giving 30 day written notice of termination to the Contractor on the

occurrence of any of the following.

(a) The willful breach of this Agreement by the Contractor in the course of

engagement, unless by the Center.

(b) The habitual neglect by the Contractor of its duties, unless waived by the Center.

The Contractor may at its option immediately terminate this agreement by giving written

notice of termination to the Center on the occurrence of any of the following.

KICKBACKS. It is a breach of ethics for any payment, gratuity or offer of employment

to be made by or on behalf of a subcontractor under a contract to the prime contractor or

higher tier subcontractor for any contract of a school district, local government or any

person associated therewith, as an inducement for the award of a subcontract or order.

RIGHTS TO INVENTIONS. The Contractor agrees to be compliant with the

Rights to Inventions Made by Nonprofit Organizations and Small Business Firms

Under Government Grants and Contracts.

CLEAN AIR ACT AND THE FEDERAL WATER POLLUTION CONTROL ACT.

The Contractor agrees to be compliant with the Clean Air Act and the Federal Water

Pollution Control Act and their implementing regulations.

ENERGY POLICY AND CONSERVATION ACT. The Contractor agrees to be

compliant with the Energy Policy and Conservation Act pertaining to mandatory

standards and policies relating to energy efficiency contained in the state energy

conservation plan.

DEBARMENT OR SUSPENSION. The Contractor certifies that neither they nor their

subcontractor is debarred or suspended from receiving federal funds.

LOBBYING CERTIFICATION AND DISCLOSURE OF LOBBYING (BYRD ANTI-

LOBBYING AMENDMENT). The Contractor certifies that it has not and will not

use any federal funds to lobby. If non-federal funds are used to lobby, the contractor

aa)

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must complete the Disclosure of Lobbying and forward the disclosure to the next tier,

who must forward it through each tier to the federal awarding agency.

COMPLIANCE CERTIFICATION WITH TEXAS GOVERNMENT CODES 2252 &

2270. Vendor agrees to NOT boycott Israel or do business with companies that boycott

Israel. In addition vendor cannot do business with Iran, Sudan or a known terrorist

organization. By submitting a response to this solicitation, vendor certifies compliance

with this code

retain copyright for the Texas Education Agency (TEA) and for the federal government

(if a federally funded contract) unless otherwise negotiated in writing with TEA. Pursuant

to the provisions in 2 CFR § 200.315, title to intangible property vests in the District or

Center as long as such property is used for authorized purposes. However, TEA and the

federal awarding agency reserve a royalty-free, nonexclusive and irrevocable right to

reproduce, publish, or otherwise use the work for federal purposes, and to authorize

others to do so.

SOLID WASTE DISPOSAL ACT AND ITS IMPLEMENTING REGULATIONS. The

Contractor certifies that it is compliant with section 6002 of the Solid Waste Disposal Act

and its implementing regulations. 2 CFR § 200.322.

PROFIT AS A SEPARATE ELEMENT OF PRICE. For purchases using federal funds

in excess of $150,000, a Cooperative member may be required to negotiate profit as a

separate element of the price; 2 CFR 200.323(b).

EQUAL EMPLOYMENT OPPORTUNITY. 41 CFR 60-1.4(b) is hereby incorporated

by reference.

DAVIS-BACON ACT. For all Cooperative member prime construction

contracts/purchases in excess of $2,000, vendor shall comply with the Davis-Bacon Act

(40 USC 3141-3144, and 3146-3148) as supplemented by Department of Labor

regulations (29 CFR Part 5). Vendor further agrees to that it shall also comply with the

Copeland “Anti-Kickback” Act (40 USC 3145), as supplemented by Department of

Labor regulations (29 CFR Part 3).

CONTRACT WORK HOURS AND SAFETY STANDARDS ACT. For all contracts or

purchases in excess of $100,000 that involve the employment of mechanics or laborers,

vendor agrees to comply with 40 USC 3702 and 3704 as supplemented by Department of

Labor regulations (29 CFR Part 5).

NON-COLLUSION STATEMENT. The vendor affirms that he/she is duly authorized to

execute a contract, that this company, corporation, firm, partnership or individual has not

prepared this proposal in collusion with any other Proposer, and that the contents of this

proposal as to prices, terms or conditions of said proposal will not be communicated by

the undersigned nor by any employee or agent to any other person engaged in this type of

business prior to the official opening of a proposal. The proposer also affirms that they

have not given; offered to give, do not intend to give at any time hereinafter any

economic opportunity, future employment, gift, loan, gratuity, specified discount, trip,

favor, or service to a private service in connection with this contract.

RECORD RETENTION. When federal funds are expended by Cooperative and all

Cooperative members for any contract resulting from this procurement process, the

vendor certifies that it will comply with the record retention requirements detailed in

2CFR 200.333. The vendor further certifies that vendor will retain all records as required

by CFR 200.333 for a period of three years after grantees or sub grantees submit final

expenditure reports or quarterly or annual financial reports, as applicable, and all other

pending matters are closed.

BUY AMERICAN ACT. Vendor certifies that vendor is in compliance with all

applicable provisions of the Buy American Act. Purchases made in accordance with the

Buy American Act must still follow the applicable procurement rules calling for free and

open competition.

LEGAL REMEDIES. Contracts for more than the simplified acquisition threshold

currently set at $150,000 which is the inflation adjusted amount determined by the

Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council

(Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or

legal remedies in instances where contractors violate or breach contract terms, and

provide such sanctions and penalties as appropriate. Pursuant to Federal Rules (A) above,

when federal funds are expended by Cooperative and all Cooperative members,

Cooperative and all Cooperative members reserves all rights and privileges under the

applicable laws and regulations with respect to this procurement in the event of breach of

contract by either party.

bb) Executive Orders:

a) Compliance with Texas Education Code Chapter 28: Pursuant to Texas Education Code

Chapter 28, as amended, Vendor verifies that any and all training services offered and

prepared by Vendor are in compliance with those requirements as set out in Section 28.0022.

TEC 28.0022 explicitly prohibits employees of a state agency, school district, or open-

enrollment charter school from teaching, instructing, or training any administrator,

teacher, or staff member of a state agency, school district, or open-enrollment charter

school to adopt any of the following concepts:

(1) One race or sex is inherently superior to another race or sex;

(2) An individual, by virtue of the individual ’s race or sex, is inherently

racist, sexist, or oppressive, whether consciously or unconsciously;

(3) An individual should be discriminated against or receive adverse treatment solely or

partly because of the individual ’s race or sex;

(4) An individual ’s moral character, standing, or worth is necessarily

determined by the individual’s race or sex;

(5) An individual, by virtue of the individual ’s race or sex, bears responsibility, blame,

or guilt for actions committed by other members of the same race or sex;

(6) Meritocracy or traits such as a hard work ethic are racist or sexist or were

created by members of a particular race to oppress members of another

race;

(7) The advent of slavery in the territory that is now the United States

constituted the true founding of the United States; or

(8) With respect to their relationship to American values, slavery and racism are anything

other than deviations from, betrayals of, or failures to live up to the authentic

founding principles of the United States, which include liberty and equality.

b) In the event any questions or concerns arise regarding the content of what you are

distributing and/or presenting and whether it may incorporate one of the above

statutorily prohibited concepts, please submit your instructional and/or training

materials to the ESC-20 Chief Operating Officer, at least fifteen (15) days prior to

distributing and/or presenting the material to allow the Service Center adequate time to

review and offer possible adjustments and suggestions to bring the materials into

compliance with TEC 28.0022

c) Equal Treatment of All Persons: Pursuant to Article I, Section 3a of the Texas

Constitution, the Fourteenth Amendment to the United States Constitution, federal and

State law, and Executive Order No. GA-55, Vendor verifies that any and all services

offered and prepared by Vendor are in compliance with the following:

(1) all conduct under this Agreement shall be administered and performed in a neutral

manner without regard to race of persons;

(2) Vendor shall not, in the specific performance of this Contract, elevate one

individual person over another, or advantage any one person over another, due to

race;

(3) Vendor shall not, in the specific performance of this Contract, employ practices or

engage in any advancement of the programs known as diversity, equity and

inclusion, critical race theory, affirmative action, or other similar, divisive

agendas;

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260341 Audit

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