260341 Audit

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.
I. 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.
A. 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.
B. 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.
C. 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.
D. 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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E. 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.
F. General Terms
a) 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.
b) 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.
c) 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.
d) Region 20 reserves the right to all warranties, express and implied.
e) All parties agree that venue for any litigation arising from this contract shall lie in San
Antonio, Bexar County, Texas.
f) 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.
g) All vendors will accept Region 20 purchase orders to guarantee event and will bill
Region 20 for all services and charges.
h) TERMINATION FOR CONVENIENCE. Either party to this agreement may terminate
this agreement upon 30 days written notice of such termination.
i) 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.
j) 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.
k) 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.
l) 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.
m) 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.
n) 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.
o) DEBARMENT OR SUSPENSION. The Contractor certifies that neither they nor their
subcontractor is debarred or suspended from receiving federal funds.
p) 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
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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.
q) 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
r) COPYRIGHT. All contracts paid from state or federal grants administered by TEA must
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.
s) 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.
t) 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).
u) EQUAL EMPLOYMENT OPPORTUNITY. 41 CFR 60-1.4(b) is hereby incorporated
by reference.
v) 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).
w) 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).
x) 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.
y) 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.
z) 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.
aa) 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
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(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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(4) Vendor's staff, agents, and subcontractors that are selected and employed in the
specific performance of this Contract shall be selected and employed solely on
merit and the ability to perform; and
(5) Vendor shall ensure that any subcontractors participating in the specific
performance of this Contract represent and warrant to the provisions of this Clause.
d) Biological Sex and No Preferred Pronouns: Vendor represents and warrants that it shall
ensure that all actions in specific performance of this Agreement shall comply with
federal and state law and reflect that there are only two sexes. Vendor's employees,
officers, representatives, subcontractors, and agents shall not, in performance of this
Contract, present, direct, request, or suggest the use of preferred personal pronouns in
professional correspondence or presentations.
e) Executive Orders: In performance under this Agreement, ESC-20 and any Local
Education Entities who are a party hereto, as applicable, will comply, or continue to
comply, with all applicable Federal and State executive orders. These orders include,
but are not limited to:
(1) Exec. Order No. 14214, 90 Fed. Reg. 9949 (2025), which prohibits schools and
other educational institutions that receive federal financial assistance from
conditioning student enrollment on COVID-19 vaccination status;
(2) Exec. Order No. 14168, 90 Fed. Reg. 8615 (2025), which prohibits the use of
Federal funds in the promotion of gender ideologies and further requires that
intimate spaces (e.g., restroom) are designated according to one's biological sex;
(3) Exec. Order No. 14190, 90 Fed. Reg. 8853 (2025), which prohibits the use of
Federal funds for direct or indirect activities or educational instruction related to
discriminatory equity ideology or social transitioning;
(4) Exec. Order No. 14201, 90 Fed. Reg. 9279 (2025), which requires Title IX of the
Education Amendments Act of 1972 be applied on the basis of biological sex, not
gender identity, and prohibits transgender-identifying athletes from participating in
all-women sports teams;
(5) Exec. Order No. 14173, 90 Fed. Reg. 8633 (2025), which requires adherence to
Federal anti-discrimination laws and its materiality to the government's payment
decisions and further requires certification that a party does not operate any
programs promoting DEI in a manner violative of Federal anti-discrimination laws
(which, by virtue of this assurance, the subrecipient certifies);
(6) Texas Exec. Order No. GA 55, which requires all people be treated equally,
regardless of race; and,
(7) Letter from Governor Greg Abbott to Chairmen and Executive Directors (Jan. 30,
2025), which requires Texas agencies to take actions on the basis of biological sex
and not gender identity.
f) Title VI of the Civil Rights Act of 1964 (Title VI): Title VI, as amended, (prohibiting
discrimination by race, color, or national origin), the regulations effectuating its provisions
contained in 34 CFR Part 100, and the provisions of the US Department of Education's Dear
Colleague Letter/Certification of April 3, 2025 pertaining to Title VI shall be applicable to
any and all services performed under this Agreement.
g) Compliance with Texas Government Code 2252 and 2271 - I, the vendor, am in compliance
with all applicable provisions of Government Codes 2252 & 2271. This code requires vendors
agree 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 the contract, vendor certifies compliance with this code.
h) The 83rd Texas Legislature passed House Bill 462 (HB462) which prohibits the adoption
and/or use of the Common Core Standards at the state, regional, and local level. Services
provided through and by ESC-20 are aligned with, and designed to support, the Texas
Essential Knowledge and Skills (TEKS) adopted by the State Board of Education. The
Contractor agrees to refer only to the Texas Standards and refrain from referencing or using
material aligned with the Common Core Standards while performing work for the Center.
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i) In accordance with Texas Education Code 8.0531 and notwithstanding any other provision of
Texas Education Code Chapter 8 Subchapter A or Section 8.001(c), the instructional lessons
developed as part of a curriculum management system by a regional education service center,
acting alone or in collaboration with one or more other regional education service center, shall
be subject to the same review and adoption process as outlined in Section 31.022.
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G. Form 1295
Certificate of Interested Parties (Form 1295 - must be filled out electronically with the Texas
Ethics Commission's online filing application, printed out, signed, and returned)
ESC, REGION 20 is required to comply with House Bill 1295, which amended the Texas
Government Code by adding Section 2252.908, Disclosure of Interested Parties. Section 2252.908
prohibits ESC, REGION 20 from entering into a contract resulting from this RFP with a business
entity unless the business entity submits a Disclosure of Interested Parties (Form 1295) to ESC,
REGION 20 at the time business entity submits the signed contract. The Texas Ethics
Commission has adopted rules requiring the business entity to file Form 1295 electronically with
the Texas Ethics Commission. The following definitions apply:
"Business Entity" means an entity recognized by law through which business is conducted,
including a sole proprietorship, partnership, or corporation. Tex. Gov't Code 2252.908(1).
(1) "Interested Party" means a person:
a) who has a controlling interest in a business entity with whom ESC, REGION 20
contracts; or
b) who actively participates in facilitating the contract or negotiating the terms of the
contract, including a broker, intermediary, adviser, or attorney for the business entity.
Tex. Gov't Code 2252.908(3).
(2) "Controlling interest" means:
a) an ownership interest or participating interest in a business entity by virtue of units,
percentage, shares, stock, or otherwise that exceeds 10 percent;
b) membership on the board of directors or other governing body of a business entity of
which the board or other governing body is composed of not more than 10 members; or
c) service as an officer of a business entity that has four or fewer officers, or service as one
of the four officers most highly compensated by a business entity that has more than four
officers. Tex. Ethics Comm. Rule 46.3(c).
(3) "Intermediary" means a person who actively participates in the facilitation of the contract or
negotiating the contract, including a broker, adviser, attorney, or representative of or agent for
the business entity who:
a) receives compensation from the business entity for the person's participation;
b) communicates directly with the governmental entity or state agency on behalf of the
business entity regarding the contract; and is not an employee of the business entity. Tex.
Ethics Comm. Rule 46.3(e).
As a "business entity," all vendors must:
(1) complete Form 1295 electronically with the Texas Ethics Commission using the online filing
application, which can be found at
(2) https://www.ethics.state.tx.us/filinginfo/QuickFileAReport.php
d) All vendors must complete Form 1295, even if no interested parties exist
e) In Section 2, insert "ESC, Region 20"
f) In Section 3, insert the ESC, REGION 20 RFP #260341 for this proposal
g) print a copy of the completed form (make sure that it has a computer-generated
certification number in the "Office Use Only" box)
h) have an authorized agent of the business entity sign the form
i) submit the completed, signed, Form 1295, with the certification of filing, along with this
proposal.
j) Vendor is exempt from filling out Form 1295 if they are a publicly traded business entity,
including a wholly owned subsidiary of the business entity. If you fall into this category
please indicate below to verify that you did not fill out Form 1295 and reason why.
Exempt?
Reason:_________________________________________________________
k) ESC, REGION 20 must acknowledge the receipt of the filed Form 1295 by notifying the
Texas Ethics Commission of the receipt of the filed Form 1295 no later than the 30th day
after the date the contract binds all parties to the contract. After ESC, REGION 20
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acknowledges the Form 1295, the Texas Ethics Commission will post the completed
Form 1295 to its website with seven business days after receiving notice from ESC,
REGION 20.
II. PROPOSAL CONTENT
A. Cover Letter
See conditions for submission of proposal in Section III.
B. Technical Component
To describe clearly the public accounting firm's understanding of the work to be done,
the proposer will:
1. Provide a definition of the term "generally accepted government auditing
standards" with clear distinctions between these standards and generally
accepted auditing standards for nongovernmental engagements;
2. Explain the proposer's approaches to performing an annual audit, including the
methodology, nature, and extent of audit procedures to be performed;
3. Describe how the approach to performing the audit would be affected if this was
a multi-year contract; and
4. Make a statement concerning the independence of the proposer including direct
and indirect financial interest; and the relationship of the proposed audit team to
employees of the Center and any of the Board Members.
C. Management Component
The proposer will furnish satisfactory evidence of capability to provide in a professional
and timely manner the services stated in the Request for Proposal. To meet this
requirement:
1. Provide the name of the external quality control review organization of which
the proposer is a member, and the proposer's length of membership. Also, state
the review organization's planned frequency of peer reviews;
2. State whether the firm has received a peer review and whether in the most recent
review an unqualified report was issued;
3. State whether the proposer is a national, regional or local public accounting
firm;
4. Provide evidence that the proposer has experience in performing service
center/school district/government audits. List current and past audit clients
along with the names and telephone numbers of contact persons and number of
years audit services were provided;
5. State whether the proposer is currently under the terms of a public or private
reprimand by the Texas State Board of Public Accountancy and/or licensing
boards of other states;
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6. Describe the proposed audit team, in terms of job positions in the firm;
7. List names of staff member(s) who will direct the overall audit throughout the
duration of the engagement, as well as those staff members who will be
responsible for planning, directing, and conducting substantial portions of the
field work or reporting on this audit engagement. Include the educational
background of all members named and professional licenses held;
8. Describe continuing professional education in government accounting and
auditing received by the proposed audit team during the last two years;
9. Provide the names and qualifications of any needed outside specialists and
consultants that will assist the proposer's staff members;
10. Describe staff rotation plans for audit team members if this is to be a multi-year
contract;
11. Describe the level of assistance that will be expected from Center personnel;
12. Provide evidence of the ability to comply with the requirements in Sections II
and VI of the Request for Proposal; and
13. Provide a list of three references for whom proposer has provided like services.
Educational agencies are preferred. This list may be placed in a separate
envelope and labeled "PROPRIETARY" and is not subject of public view.
D. Task/Activity Plan
The proposer will specify budgeted hours, timelines and sequence for audit procedures,
and names of staff to be assigned.
E. Evaluation
Criteria used to evaluate the interested accounting firm's methodologies, products, and
services are shown in Attachment A.
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