Project Information

Bid Title

Request for Proposals: 2026-0306 Audit Services

Issuing Agency

Town of Holly Springs

Location

North Carolina

Published Date

Feb 4, 2026

Closing Date

Mar 6, 2026

Government Level

State & Local

Status

Closed

Original Source

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Bid Documents

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Project Description

Request for Proposals: 2026-0306 Audit Services

• Due Date: March 6, by 2 p.m. via email
• Solicitation

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TOWN OF HOLLY SPRINGS, NORTH CAROLINA

REQUEST FOR PROPOSALS

RFP# 2026-0306 Audit Services

Issue Date: February 4, 2026

Due Date: March 06, 2026 by 2:00 PM

I. PURPOSE

The Town of Holly Springs is requesting proposals from 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.

II. SCOPE

Type of Audit

1. The audit will encompass a financial and compliance examination of the Town’s Annual

Comprehensive Financial Report (ACFR) 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 the 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,

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 Town staff on the

applicability of accounting and reporting standards as they become effective. These services must

be included in the base fee quote.

3. The financial audit opinion will cover the financial statements for the governmental activities, the

business-type activities, each major fund and the remaining funds’ 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 34, 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, and annually budgeted

major and special revenue funds. An opinion will not be given on the Management’s Discussion and

Analysis.

The working papers shall be retained and made available upon request for no less than three years

from the date of the audit report.

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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 final close.

c. Attendance at the Town Council meeting in November or December for presentation

of the financial statements by a Manager or Partner of the Audit Staff with comments

and potential questions from Town Council as requested.

5. The audit should encompass all funds and entity-wide activities as reported in the Town’s Annual

Comprehensive Financial Report (ACFR) at June 30, 2025 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 Town Council after completion of

the audit and assist management in implementing recommendations, as is practical. Town staff also

request that an informal letter be addressed to the Finance Director 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 Director prior to issuance.

7. The Town’s staff may require the auditor’s guidance or input on the completion of certain

schedules/documents as to proper format and content, so that they can be used in the audit process

as well as inclusion in the Town’s financial statements. 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 employees and permitted sub-contractors.

A planning meeting will be held each year to determine schedules that the Town will be responsible for

preparing. Estimated time frames will be established and interim audit work will be planned. Adequate

notification will be given prior to any changes in estimated times.

The Town’s audit engagement must be conducted in accordance with Generally Accepted Auditing

Standards (GAAS); Government Auditing Standards, 2018 revisions, issued by the Comptroller General of

the United States; and if applicable, the U. S. Office of Management and Budget’s (OMB) Uniform Guidance

and, if applicable, the State Single Audit Implementation Act, and any other applicable procedures for the

audit of a local government’s financial statements prepared in accordance with Generally Accepted

Accounting Principles (GAAP).

By accepting this engagement, the auditor warrants that they have 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.

RFP# 2026-0306 Audit Services

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The Town’s staff will prepare all standard year-end accruals and government-wide year-end adjusting

journal entries. The Financial Statement Preparer will prepare an electronic draft of the Annual

Comprehensive Financial Report (ACFR) by mid-October. The Town shall designate an individual, such as

the Finance Director, with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee

these services and accept responsibility for the results of the services performed. The Town’s 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 Town will need the assistance of the Financial Statement

Preparer for the preparation and proofing of the Basic Financial Statements. The Town’s Finance Director

will prepare the MD&A. The auditor will communicate all recommendations, revisions and suggestions for

improvement to the Finance Director. The Finance Director will complete the review of the comments as

expeditiously as possible. Once all issues for discussion are resolved and the auditor provides opinions and

compliance reports, the Finance Director will deliver the final electronic draft of the ACFR to the auditor.

The auditor will complete and submit the necessary Single Audit information to the Federal Audit

Clearinghouse on behalf of the Town.

Meeting Local Government Commission (LGC) deadlines is a high priority for the Town. The Town prefers

year-end fieldwork begin by mid-to-late August and must be completed by late September. An agreed upon

post-closing trial balance must exist by September 30. The Finance Director 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 above should ensure final completion and issuance of the Financial Statements/ACFR

no later than October 31.

The auditor is responsible for electronically submitting the required data input sheet and the final ACFR as

a text-based PDF file to the LGC when (or prior to) submitting the final invoice for audit services rendered

to the Commission. The Town will coordinate the preparation, printing and distribution of the ACFR.

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 Town Council 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 Town Council’s 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

November or December following the audit completion.

Description of the Town and Its Accounting System

Reference should be made to the most recent ACFR for a general overview of the Town. A copy of the most

recent ACFR is located on the Town’s website, at the following link.

https://www.hollyspringsnc.gov/Search?searchPhrase=acfr&pageNumber=1&perPage=10&departmentId

=-1

Funds

The Town of Holly Springs maintains the following funds:

Governmental Funds:

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General Fund

Powell Bill Fund

Law Enforcement Special Separation Allowance (Non-Trust) Fund

PayGo Fund

Debt Service Fund

Capital Project Funds:

Street and Sidewalk Projects Fund

Street Reserve Fund

Parks and Recreation Projects Fund

Parks and Recreation Reserve Fund

Town Building Projects Fund

Special Revenue Funds:

Emergency Telephone System Fund

Grants and Special Revenue Fund

Proprietary Funds – Enterprise Funds:

Utility Fund

Utility Debt Service Fund

Utility Reserve Fund

Water Projects Fund

Wastewater Projects Fund

Utility PayGo Fund

System Development Fee Fund

Stormwater Management Fund

Stormwater Reserve Fund

Stormwater Projects Fund

Fiduciary Fund:

OPEB Trust Fund

Grants, Entitlements, and Shared Revenues

A copy of the Schedule of Expenditures of Federal and State Awards and a Summary of Auditor’s Results

showing the major programs for the year ended June 30, 2025 can be found in the ACFR located on the

Town’s website.

Budgets

The Town’s annual budget is adopted for General Fund, Debt Service Fund, Emergency Telephone System

Fund and Enterprise Funds. Multi-year project ordinances are adopted for the Capital Project Funds. All

budgets are prepared using the modified accrual basis of accounting. All appropriations are made at the

departmental level. The Town 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 Town maintains all its accounting records at the finance office located at 128 S. Main Street, Holly

Springs, NC 27540. All accounting journals and subsidiary ledgers are maintained on Tyler Technologies’ New

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World ERP software.

Assistance Available to Auditor

The Town will designate an individual that understands the services to be provided in accordance with

GAGAS §3.73 (GAGAS 2018 Revision).

The Town will make available to the auditor sufficient help to pull and re-file records and prepare necessary

confirmations. An electronic version of the trial balance with budgeted amounts will be made available in

late August/early September. The following accounting procedures will be completed and documents

prepared by the Town’s staff no later than early September, date TBD.

The general ledger will be fully balanced.

All subsidiary ledgers will be reconciled to control accounts.

All bank account reconciliations for each month will be completed.

The Town’s personnel will prepare the following items:

General

1. Working Trial Balance for each fund.

2. Working Statement of Revenues, Expenditures, and Transfers for each fund.

3. General Ledger transaction detail report for each account.

4. A copy of the original budget, all amendments, and the final budget as of June 30, 2026.

5. A copy of all project ordinances and all amendments for active projects during the audit period.

6. A copy of board policies, including travel policies, investment policies, debt policies, fund balance

policies and purchasing policies including how the pre-audit process is performed.

7. Copies of all Town Council meeting minutes.

8. 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.

9. Required Supplementary Information for the ACFR, 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 investments for all funds at the audit date, showing book value and estimated market

value at fiscal year-end.

RFP# 2026-0306 Audit Services

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Commodity Codes

• NAICS 541211Offices of Certified Public Accountants

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