Project Information

Bid Title

26-009 RFP To Provide Audit Services

Issuing Agency

City of Hickory

Location

North Carolina

Published Date

Jan 29, 2026

Closing Date

Feb 27, 2026

Government Level

State & Local

Status

Closed

Original Source

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Bid Documents

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Project Description

26-009 RFP To Provide Audit Services

Request for Proposal

Sales Tax Certification

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Life. Well Crafted.

City of Hickory

Finance Department

76 N. Center St.

Hickory, NC 28601

Phone: (828) 323-7472

Email: kdunlap@hickorync.gov

City of Hickory’s Request for Proposal (RFP)

To Provide Audit Services

DATE: January 20, 2026

PROPOSAL: Bid # 26-009

Pursuant to Section 159-34 of the General Statute of North Carolina and City policy, the City of

Hickory will receive proposals for Audit Services.

Proposals signed by authorized officials will be received by Megan Hodges, Accounting

Technician-Purchasing, until February 27, 2026, at 3:00 P.M. The Finance Director will review

the proposals and make a recommendation to the City Council on March 17, 2026, at which

time the contract will be awarded.

All submittals must be received electronically by email to kdunlap@hickorync.gov or at

the location listed below by 3:00 P.M., February 27, 2026.

City of Hickory

Finance Department

76 N. Center St.

Hickory, NC 28601

Pre-submittal questions should be submitted via email to Kari Dunlap, Finance Director, at

kdunlap@hickorync.gov by February 13, 2026 at 3:00 P.M. Responses to all questions received

will be published in the form of an addendum on the City’s website www.hickorync.gov on

February 20, 2026.

If you have any questions about the bidding procedures, please contact the Purchasing Division

at 828-323-7472.

Request for Proposal

The City Council of City of Hickory, North Carolina (hereinafter called the “City”) invites

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.

There is no expressed or implied obligation for the City of Hickory to reimburse firms for any

expenses incurred in preparing proposals in response to this request.

The specific details shown herein shall be considered minimum unless otherwise shown.

The specifications, terms, and conditions included with this RFP shall govern in any resulting

contract(s) unless approved otherwise in writing by the City of Hickory. The bidder consents

to personal jurisdiction and venue in a state court of competent jurisdiction in Catawba

County, North Carolina.

Type of Audit

1. The audit will encompass a financial and compliance examination of the unit’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 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 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 City staff on

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

services must be included in the base bid.

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

activities, the business-type activities, each major fund and the remaining fund 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, the major funds and any annually

budgeted special revenue funds. An opinion will not be given on the Management Discussion

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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.

4. The audit will also include the following:

a. Pre-planning conference with Finance staff in April/May timeframe where both

the auditor and Finance staff discuss their expectations of the audit.

b. Interim audit work prior to June 30th and/or prior to final close.

c. Attendance at the Audit Committee meeting and the City Council meeting in

November for presentation of the financial statements by Manager or Partner of

the Audit Staff with comments and potential questions from Council as requested.

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

Annual Comprehensive Financial Report (ACFR) June 30th and any additional funds or entity-

wide activities that may be added subsequent to that date.

6. The City 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 City’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. Guidance may be requested regarding applicability of

accounting and reporting standards (i.e. GASB statements, etc.) and day-to-day questions

concerning payroll, internal control procedures, grants, IRS issues, and accounting issues. As

these types of situations should not be frequent, this service should be bid as part of the cost

proposal. Cost for providing these services should be included in the auditor’s base fee quote

and will not be considered extra for additional billings.

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 own employees and permitted sub-contractors.

A planning meeting will be held each year to determine schedules that the City will be

responsible for preparing. Estimated timeframes will be established and interim audit work

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

The audit 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; the U.S. Office of Management and Budget (OMB) Uniform Guidance;

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 Auditing 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.

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The City staff will prepare all standard year-end accruals and other adjusting journal entries.

The Financial Statement Preparer will prepare the government wide year-end adjusting

journal entries as well as any necessary entries to allocate the state pension balances. The

City shall designate an individual, such as the Finance Director, with the suitable skills,

knowledge, and/or experience (SKE) necessary to oversee the services and accept

responsibility for the results of the services performed. The City 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 City will need the assistance

of the Financial Statement Preparer for the preparation, typing, proofing, printing, and

copying of the Basic Financial Statements, supplementary information and compliance

reports. The City of Hickory’s Finance Director will prepare the MD&A. A preliminary draft

of the audit and required adjusting journal entries must be submitted to the Finance Director

by October 15 for proofing and reconciliation to the City’s records to allow ample time for

review and corrections before it is sent to the Local Government Commission. The City of

Hickory’s Finance Director will return the draft to the Financial Statement Preparer with

proposed revisions within 5 working days. The financial statement preparer will be ultimately

responsible for the preparation, typing, proofing, printing, and copying of the Basic

Financial Statement, supplementary information and all applicable compliance reports.

Meeting LGC deadlines is a high priority for the City. The City prefers interim fieldwork be

completed between May - June. Year-end field work for the audit should be substantially

completed by September 15. 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 draft and review should ensure final completion of the Financial Statements

by October 31st or no later than the annual deadline of December 31st.

Thirty copies of each Audit report, management letter, and other applicable reports must

be supplied to City within the time frame cited above. In addition, the auditor is responsible

for complying with the requirements of the LGC for submitting the audit and all associated

documents and forms as required for the year under audit when (or prior to) submitting the

final invoice for audit services rendered to the Commission.

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 governing

board 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 City

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 following the audit

completion.

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Audit Contract: Period & Payment of Audit Fees

The City intends to continue the relationship with the auditor for no less than three years,

based on annual negotiation, after the completion of the first- year contract. Continuation

after the first-year contract will be based on an annual review of the Auditor, recommendation

of the department staff, satisfactory negotiation of terms (including price), and availability of

appropriation. Each year after negotiation has taken place, an annual contract documenting

the terms of the audit will be signed. Since one governing board may not obligate future

governing boards, the remaining years of the agreement are subject to annual governing

board approval. After the initial three-year period, an annual extension may be granted by

the City based on the above-mentioned criteria and governing board approval or until a

determination is made to request new proposals. The City reserves the right to request

proposals at any time following the first year of the contract. Proposals should be prepared

for the following years with the first year being the only binding year:

July 1, 2025 to June 30, 2026

July 1, 2026 to June 30, 2027

July 1, 2027 to June 30, 2028

The required current revision of the form “Contract to Audit Accounts” (form LGC-205) is

required to be executed as the contract document; however, the auditor and the City may

also execute an engagement letter and/or a City contract to include additional terms not

addressed in the LGC-205. The entire audit contract package must be approved by the staff

of the Local Government Commission. Invoices are subject to approval by the LGC prior to

payment by the City. Interim or progress billings for services rendered marked approved

by the LGC will be paid up to 75% of the total fee prior to submission of the final audited

financial statements to the staff of the Local Government Commission. The final 25% of the

Audit fees (final invoice) will be paid when the financial statements, single audit, management

letter and amended contract (if applicable) have been reviewed or approved by the LGC.

The LGC only approves invoices for audit related work. Requests for payment related to any

additional agreed upon procedures or AFIR work do not require LGC approval. Final invoices

for these services will be paid after the final report’s results and findings have been reviewed

and deemed satisfactory by City staff.

Description of Selection Process

The City requests that no City officials be contacted during this proposal process. Submit

questions regarding the RFP in writing via email to kdunlap@hickorync.gov. Any additional

information disclosed to participating audit firms prior to bid submission will be shared with

all interested parties

Proposals will be submitted in two sections and must be physically signed by an authorized

representative of the Audit firm. The first section will be comprised of the audit firm’s prior

experience and qualifications of its personnel in performing governmental audits. The

second section will consist of completed cost estimate sheets. Finance and City Management

will evaluate the audit firm on educational and technical qualifications. The City Manager

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Commodity Codes

• NAICS 541211Offices of Certified Public Accountants

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