Project Information

Bid Title

RFP 6900 Financial and Compliance Audit Services

Issuing Agency

City of Johnson City

Location

Tennessee

Published Date

Mar 19, 2026

Closing Date

Mar 31, 2026

Government Level

State & Local

Status

Closed

Original Source

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Bid Inquiries

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Bid Documents

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Project Description

Submittals due by March 31, 2026 at 11:00am ET.
Attached Document :


RFP 6900 FINANCIAL AND COMPLIANCE AUDIT SERVICES.pdf

Attachment Preview

Request for Proposal

FINANCIAL AND COMPLIANCE AUDIT SERVICES

City of Johnson City, Tennessee

RFP # 6900

Proposal Due Date/Time

March 31, 2026, 11:00 a.m. ET

(at which time it will be publicly opened)

City of Johnson City

Purchasing Department

209 Water Street

Johnson City, TN 37601

REQUEST FOR PROPOSAL

RFP# 6900- FINANCIAL AND COMPLIANCE AUDIT SERVICES

City of Johnson City, Tennessee

Purpose

The City of Johnson City has issued this Request for Proposal (RFP) to interested independent certified

public accounting firms to perform the annual financial and compliance audit of the City of Johnson City

for the fiscal year ending June 30, 2026, with four (4) additional one-year renewal periods at the City’s

discretion. The audit must be conducted in accordance with generally accepted auditing standards

(GAAS), Government Auditing Standards, and the requirements of the Tennessee Comptroller of the

Treasury.

General Information

Information regarding the City’s organizational structure and funds can be obtained online in the City’s

prior year ACFR and 2026 budget document, which are located at:

• https://www.johnsoncitytn.org/services/finance/index.php

• https://www.johnsoncitytn.org/departments/budget.php

The City utilizes Oracle Cloud Fusion software for accounting functions, Teller for point of sale and

collections, OpenGov for property taxes, and Local Government for utility billing. The school system

utilizes Skyward software.

Scope

• Conduct an audit of the City’s financial statements in accordance with:

o GAAS

o Government Auditing Standards (Yellow Book)

o Tennessee Comptroller Requirements

o GASB Standards

• Perform a Single Audit in accordance with 2 CFR 200 Subpart F (Uniform Guidance)

• Perform Agreed Upon Procedures specific to compliance with the Federal Transit Authority

(FTA) National Transit Data (NTD) reporting policy manual.

• Prepare and submit the Annual Comprehensive Financial Report (ACFR).

• Issue all required reports, including:

o Independent Auditor’s Report

o Report on Internal Control and Compliance

o Schedule of Findings and Questioned Costs

o Management Letter (if applicable)

• Submit all required documents to the Tennessee Comptroller’s Office by the statutory deadline.

• Prepare and submit the Tennessee Comptroller’s required chart of accounts crosswalk

• Meet with management and the governing body to present audit results.

General Requirements

(1) The auditor will prepare the ACFR. The City will provide the transmittal letter, the

Management’s Discussion and Analysis, and the statistical schedules as required. The auditor

shall file the ACFR with the Tennessee Comptroller of the Treasury and the Single Audit

Clearinghouse. The City will print final copies.

(2) The ACFR must be prepared to meet GFOA’s Certificate of Achievement for Excellence in

Financial Reporting program requirements.

(3) The auditor shall, as part of the written audit report, submit to the City’s governing bodya report

containing an expression of an unqualified or modified opinion on the financial statements, as

prescribed by the State of Tennessee Comptroller’s Audit Manual and provide all “in-relation-

to” opinions.

(4) Following the completion of the audit of the fiscal year’s financial statements, the auditor shall

issue and provide copies of the following reports and schedules, or any amended schedules as

required by the Comptroller of the Treasury:

(a) Report on Internal Control over Financial Reporting and on Compliance and Other

Matters Based on an Audit of Financial Statements Performed in Accordance with

Government Auditing Standards.

(b) Report on Compliance with Requirements Applicable to Each Major Federal Program

and Internal Control over Compliance in Accordance with OMB Circular A-133.

(c) Schedule of Findings and Questioned Costs.

(d) Any management letters or related correspondence (copies must also be filed with the

Comptroller).

(5) The Audit may begin prior to June 30 of each year and shall be completed, and the report filed

with the Tennessee Comptroller of the Treasury within six (6) months after the fiscal year-end.

(6) The auditor shall retain the working papers for no less than five (5) years, and they shall be

available for review by the Comptroller of the Treasury or a designated representative or review

by federal auditors.

(7) Any evidence of fraud, such as defalcation, misappropriation, misfeasance, malfeasance,

embezzlement or other illegal acts shall be reported by the auditor, in writing immediately upon

discovery, to the Comptroller of the Treasury, State of Tennessee, who shall under all

circumstances have the authority, at the discretion of the Comptroller, to directly investigate

such matters. If the circumstances disclosed by the audit call for a more detailed investigation

by the auditor than necessary under ordinary circumstances, the auditor shall inform the City’s

governing body in writing of the need for such additional investigation and the additional

compensation required, therefore. Upon approval by the Comptroller of the Treasury, an

amendment to the state contract may be made by the City’s governing body and the auditor for

such additional investigation.

(8) The auditor shall present an overview of the completed audit at a regularly scheduled City

Commission meeting. At this time, the findings and recommendations regarding compliance

and internal control shall be discussed. Audit findings and recommendations should be brought

to management’s attention as they are discovered during the audit to allow time for research and

comment before this meeting. The City Finance Director shall have the opportunity to respond

in writing to the findings. Responses shall be included in the audit report.

(9) The auditor must be able to satisfy the requirements of the standard Contract to Audit Accounts

that must be approved by the Comptroller of the Treasury, State of Tennessee, prior to

conducting the audit. This contract requires that the participating auditors are in compliance

with requirements of the State Board of Accountancy, that the auditor’s organization has

participated in an external quality control review at least once every three years that was

conducted by an organization not affiliated with the auditor’s firm, that all members of the staff

assigned to the audit have obtained the necessary hours of continuing professional education

required by Government Auditing Standards and that all auditors participating in the

engagement are independent under requirements of the AICPA and Government Auditing

Standards.

(10) In the event that circumstances arise during the audit that require work to be performed above

original estimates, such cost must be approved by the City prior to commencement of the work.

(11) The records of the City will not be removed from their respective offices except with the

expressed written permission of the City Finance Director. However, copies may be obtained of

documents to supplement the auditors’ work papers.

(12) All adjusting entries will be submitted to City Finance Department staff in writing with

sufficient explanation so that they can be easily understood and properly posted to the financial

records.

(13) The City will provide the general ledger crosswalk that was prepared by the previous auditors.

The auditors will update the crosswalk annually and submit it to the Comptroller’s Office along

with the ACFR. At the end of each audit year, the final crosswalk will also be submitted for

retention to the City.

Contract period

This is a five (5) year contract subject to annual renewals provided all terms, conditions, and prices

remain unchanged and the vendor is in agreement. Prices contained herein shall remain firm for each

renewal term of the contract. The City reserves the right to re-solicit at the end of any one (1) year period.

Contacts

Inquiries concerning the scope or requirements of this request for proposals must be made to:

Stephanie S. Laos, CPA

Director of Finance/City Recorder

SLaos@johnsoncitytn.org ; 423.434.6033

Submittal questions please contact Debbie Dillon, Director of Purchasing, 423.975.2717,

ddillon@johnsoncitytn.org.

Proposal Format

The submission shall be styled at the discretion of the submitter; however, at a minimum it must address

these areas:

Firm Profile:

• Firm name, address, and contact information

• Size and structure of the firm and office that will serve the City

• Breadth and depth of the firm’s municipal auditing experience, including:

o Experience with municipalities, utility systems, and school systems

o Participation in the AICPA or other peer review program (include most recent report)

Engagement Team:

• Names and qualifications of assigned staff

• Resumes of partners, managers, and key field staff

• Staff continuity practices

• Training and CPE compliance under Government Auditing Standards

• Availability for specialized consultation

Technical Approach:

• Proposed audit methodology

• Understanding of City operations

• Approach to internal controls and risk assessment

• Expected timeline and milestones

References:

• At least three (3) Tennessee municipal clients audited within the last five years

• Indicate those clients who have received the Certificate of Achievement for Excellence in

Financial Reporting from GFOA during your audit term

Selection Process

Proposals will be evaluated by a review committee. Considerations for award shall include, but not

limited to: experience, qualifications, availability and fee structure. All respondents must initially

represent themselves solely by their written submittal. Based upon the selection committee’s findings, the

finalist may be requested to provide additional information.

Proposal Submission

Proposers must submit a complete response to this RFP using the format provided. Proposals can

submited electronically per link below or place submittal response in a sealed envelope plainly identified

on the outside with vendor name and proposal name and number. If submitting paper copies, submit 4

color copies of entire response. Vendor responsible for delivery to Johnson City Purchasing Dept., Debbie

Dillon- Director, 209 Water Street, Johnson City, TN 37601 on or before the proposal deadline of March

31, 2026 11:00 a.m. ET at which time it will be publicly opened.

ELECTRONIC RESPONSES: CLICK HERE

A list of respondents will be available the following business day at 8:00 a.m. on the Johnson City

Purchasing website: https://www.johnsoncitytn.org/business/purchasing/index.php

Late submittals will not be considered. Telephone, facsimile or emailed offers will not be accepted.

Submittals must be signed by the agent authorized to bind the Proposer to its provisions. Unsigned offers

will not be accepted and will be declared non-responsive. Electronic signatures are acceptable.

The contents of any proposal received shall become contractual obligations upon the execution of a

contract by authorized representatives of both the City and the Proposer. Failure of the selected proposer

to accept these obligations may result in cancellation of the award.

This request for proposal will neither commit the City to commence the award, nor in any way limit the

discretion of the City in selecting a proposal.

Proposals shall remain valid for a period of at least ninety (90) days.

Solicitations will be opened publicly via a web conference and in-person, simultaneously.

Join Zoom Meeting:

RFP 6900 - Financial and Compliance Audit Services virtual proposal opening

Commodity Codes

• NAICS 541211Offices of Certified Public Accountants
• NAICS 541219Other Accounting Services
• NAICS 541611Administrative Management and General Management Consulting Services

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