Independent Auditing Services

City of Lake Jackson
25 Oak Drive
Lake Jackson, Texas 77566
www.lakejackson-tx.gov
May 19th, 2026
Subject: Request for Sealed Proposals - Request for Proposal #26-05-004
Independent Auditing Services
Return Date - By 2:00 PM, June 3, 2026
TO WHOM IT MAY CONCERN:
The City of Lake Jackson is accepting sealed proposals from qualified firms of certified public
accountants to audit the City's financial statements for a three-year contract which will be subject
to annual review. The Request for Proposal (RFP) and conditions are attached. This is made
available so you may be aware of the contemplated terms and conditions of any resulting contract.
If you take exception to any of these terms and conditions, please elaborate in your proposal.
Respondents may submit a proposal for services described.
This is a negotiated procurement utilizing the Request for Proposal method and as such, award
does not have to be made to the respondent submitting the lowest priced proposal but rather to the
respondent submitting the most responsive proposal satisfying the City's requirements.
The City reserves the right to grant interviews with firms as deemed appropriate by the City and
to request additional information from the respondent. The City reserves the right to accept or
reject, in whole or in part, any proposal.
Three hard copies (One (1) original and two (2) copies) and one (1) electronic version of your
proposal(s) are to be submitted enclosed in a sealed envelope or envelopes or box or boxes bearing
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your firm name, address, and "Request for Proposal #26-05-004 Independent Auditing
Services", Return Date 2:00 PM, June 3, 2026 and if mailed, hand delivered, or express mailed
the envelope should be addressed to the City of Lake Jackson Purchasing Agent, 25 Oak Dr.
Lake Jackson, Texas 77566.
Proposals shall be opened so as to avoid disclosure of contents to competing bids and kept secret
during the process of negotiation; however, all proposals that have been submitted shall be open
to public inspection after award of the contract. Trade secrets and confidential information
contained in proposals shall not be open for public inspection.
As provided in the Request for Proposals, discussions may be conducted with those who submit
proposals determined to be reasonably qualified for selection for award. All submitters shall be
accorded fair and equal treatment with respect to any opportunity for discussion and revision of
proposals, and such revisions may be permitted after submissions and prior to award for the
purpose of obtaining best and final offers.
Proposals should be returned in sufficient time so as to be received on or before 2:00 PM, June 3,
2026. Proposals received after the above stated time will be rejected shall be considered void and
unacceptable.
Proposals received in the Purchasing Office, 25 Oak Dr., Lake Jackson, Texas 77566 on or
before 2:00 PM, June 3, 2026, will be publicly opened and the names of the prospective
vendors announced.
Questions or additional information regarding the RFP may be obtained by contacting the
Purchasing Office in writing at j.benge@lakejacksontx.gov.
The City of Lake Jackson appreciates your time and effort in preparing this proposal and your
interest in conducting business with the City of Lake Jackson.
Respectfully,
Janice Benge
Purchasing Agent
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Overview of Information, Terms and Conditions:
A. No Gratuities - Respondents shall not offer any gratuities, favors, or anything of
monetary value to any official or employee of the City of Lake Jackson for the purpose
of influencing this selection. Any attempt by the Respondent to influence the selection
process by any means, other than disclosure of qualifications and credentials through
the proper channels, shall be grounds for exclusion from the selection process.
B. All Information True - Respondent represents and warrants to the City of Lake
Jackson that all information provided in the response shall be true, correct and
complete. Respondents who provide false, misleading, or incomplete information,
whether intentional or not, in any of the documents presented to the City for
consideration in the selection process shall be excluded.
C. Confidential Material - Any material that is to be considered as confidential in nature
must be clearly marked as such and will be treated as confidential by the City of Lake
Jackson to the extent allowed by law. Submission of information relative to this RFP
shall not be released by the City during proposal evaluation process or prior to contract
award. Proposers are advised that the confidentiality of their proposals will be
protected to the extent permitted by law. Proposers are advised to consider the
implications of the Texas Open Records Act, particularly after the proposal process has
ceased and the contract has been awarded. Trade secrets and any material that is
considered as confidential in nature must be clearly marked and identified as such by
the consultant at the time of proposal submittal and will be treated as confidential by
the City of Lake Jackson to the extent allowed by the Texas Local Government Code
Chapter 252.049 and the Texas Open Records Act. The final decision as to what
information must be disclosed, however, lies with the Texas Attorney General. Failure
to identify proprietary/confidential information will result in all unmarked sections
being deemed non-proprietary upon public request.
D. Proposal Opening - So as to avoid disclosure of the contents to competing offerors,
proposals shall be kept secret during negotiations. All proposals shall be open for
public inspection after the contracts are awarded, with the exception of trade secrets
and confidential information contained in the proposal and identified by the proposer
as such to the extent allowed by law.
E. Late Proposals - Proposals received after the submission deadline shall be considered
void and unacceptable. The City of Lake Jackson is not responsible for lateness of the
mail, postal carrier, courier, etc.
F. Technical Questions - Any technical questions prior to the closing date of submittals
should be directed in writing to the Purchasing Office at j.benge@lakejacksontx.gov -
Any interpretations, corrections, or changes to this RFP will be made by addenda. Sole
issuing authority shall be vested in the City. Addenda may be obtained from the City
of Lake Jackson website www.lakejackson-tx.gov or from the Purchasing Office at
j.benge@lakejacksontx.gov.
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G. Interviews - After the initial evaluation of the statements of qualification, Respondents
will be notified by Email of their status in the selection process. Respondents who are
"short-listed" should expect and anticipate subsequent interviews which will most
likely focus not only on the Respondent's program approach but also on an appraisal
of the people who would be directly involved in the Project. The City reserves the right
to contact references from the Respondent's client list.
H. Inquiries -Do not contact the City of Lake Jackson or elected officials during the
selection process to make inquiries about the progress of this selection process.
Respondents will be contacted when it is appropriate to do so.
I. Cost of Responses - The City of Lake Jackson will not be responsible for the costs
incurred by anyone in the submittal of responses and interviews.
J. Contract Negotiations - This RFP is not to be construed as a contract or as a
commitment of any kind. If this RFP results in a contract offer by the City, the specific
scope of work, associated fees, and other contractual matters will be determined during
contract negotiations. To ensure that the appropriate staff is assigned to the Project,
the City intends to make the inclusion of a "key persons" clause a part of the contract
negotiations.
K. No Obligation - The City reserves the sole right to (1) evaluate the responses
submitted; (2) waive any irregularities therein; (3) reject any or all responses, should it
be deemed in the City's best interest, (4) cancel the entire process; or (5) to seek new
responses when such procedure is in the best interest of the City.
L. Equal Opportunity Employer - The selected consultant agrees that, during the term
of the contract, they shall not engage in any employment practices which have the effect
of discriminating against any employee or applicant for employment on the basis of
race, color, religion, national origin, sex, age, or handicap; further, successful
respondent will take affirmative steps that applicants are treated and employees are
treated during employment without regard to their race, color, religion, national origin,
sex, age or handicap.
M. Proposal Withdrawal - Respondents may not withdraw his/her proposals for a period
of ninety (90) days after the date of submitting proposals.
N. Negotiations - The selection committee may negotiate with the first preference firm.
If negotiations are unsuccessful, the bidding consultant will be notified that the
negotiations are terminated. Negotiations may then commence with the next
preference. Negotiations may be continued until mutually satisfactory arrangements
are concluded.
O. Required Forms and State Contract Requirement. As required by Chapter 176 of
the Texas Local Government Code. Respondents shall complete Form CIQ, Conflict
of Interest Questionnaire (attached appendices E) and include it with the original
submittal response. State law requires a vendor that wishes to conduct business or be
considered for business with a city to file this form, which was created by the Texas
Ethics Commission.
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HB 1295: Beginning January 1, 2016, state law requires awarded vendors contracting
with the City to complete and submit the Certificate of Interested Parties (Form
1295). This form is located on the Texas Ethics Commission website and should be
completed and submitted upon notification of pending award at
https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm..
HB 89: Beginning September 1, 2017, state law prohibits governmental entities from
contracting with companies who boycott Israel. The Texas State Comptroller
maintains a list of companies that boycott Israel. Inclusion on this list will prevent
the City of Lake Jackson from entering into a contract with the contractor. Effective
9/17/19 (per HB 793), HB 89 excludes sole proprietorship vendors and applies only
to a company with 10 or more full time employees and contracts with a value of $100k
or more. Below is a link to the list.
https://comptroller.texas.gov/purchasing/publications/divestment.php
SB 252: Beginning September 1, 2017, a governmental entity may not enter into a
governmental contract with a company that does business with Iran, Sudan, or any
known terrorist organization. The Texas State Comptroller maintains a list of
companies known to have contracts with or provide supplies or services to a foreign
terrorist organization. Inclusion on this list will prevent the City of Lake Jackson
from entering into a contract with the contractor. Below is a link to the list.
https://comptroller.texas.gov/purchasing/publications/divestment.php
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CITY OF Lake Jackson
REQUEST FOR PROPOSAL
FOR
RFP# 26-05-004 INDEPENDENT AUDITING SERVICES
DUE DATE FOR PROPOSALS: by 2:00 P.M. CST, June 3, 2026
Deliver to:
City of Lake Jackson
Purchasing Office
25 Oak Dr.
Lake Jackson, Texas 77566
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TABLE OF CONTENTS
I. Introduction .................................................................................. 9
II. Nature of Services Requested .............................................................12
III. Time Requirements .........................................................................17
IV. Assistance to be Provided to the Auditor and Report Preparation ................... 18
V. Proposal Requirements .....................................................................19
VI. Evaluation Procedures ......................................................................26
Appendices
A. Comprehensive Annual Financial Report, - Year Ended September 30, 2025
B. City of Lake Jackson Credit Ratings 2025
C. Financial Policies Adopted by the City Council
D. Lake Jackson City Charter
E. Conflict of Interest Questionnaire
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I. INTRODUCTION
A. Nature of Request
The City of Lake Jackson, Texas, is requesting proposals from independent CPA firms to
perform financial audits of the City for the fiscal years ended September 30, 2026, through
2029. In addition, the City may receive sufficient federal and state grant revenues in a given
year to require that a single audit be performed in accordance with federal government
requirements. The winning proposer will be awarded a three-year contract, subject to the
annual review and recommendation of the City, the satisfactory negotiation of terms, the
concurrence of the City Council and the annual availability of an appropriation approved by
City Council.
The Director of Financial Services or their designee will coordinate the City's working
relationship with the independent auditors as well as assist the auditors on day-to-day contacts
during the field work.
To assist in the preparation of the proposal, the following information has been attached as
appendices:
A. FY 2025 Comprehensive Annual Financial Report, including the Single Audit Report
B. City of Lake Jackson Credit Ratings 2025
C. Financial Policies Adopted by the City Council
D. Lake Jackson City Charter
E. Conflict of Interest Questionnaire
Additionally, the following documents can be obtained on our website at
https://www.lakejackson-tx.gov/
* FY2010 - FY2025 Annual Comprehensive Financial Reports (which include Single
Audit Reports)
* FY2011 - FY2025 Adopted Budgets
B. General Information
1. Background
Lake Jackson is part of Texas history. The land that Lake Jackson is built on was part of
Stephen F. Austin's original land grant from the Mexican government. The City of Lake
Jackson derives its name from Major Abner Jackson, who, in the 1800's, built his home
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near an oxbow lake, which he called Lake Jackson. Development of the City began in
December of 1941. The city incorporated in 1944. Dow leaders with a great vision for a
modern city created Lake Jackson in 1941. They wanted to build a community with a
heart for progressive development, a spirit for economic diversity and an eye to protect
natural resources. Seven decades later, Lake Jackson reigns as that city. The City of Lake
Jackson encompasses 18 square miles and has produced an orderly, well planned
residential community. Lake Jackson is located 50 miles south of Houston, 45 miles
southwest of Galveston and 8 miles north of the Gulf of Mexico. The City is readily
accessible via State Highway 332, State Highway 288, FM 2004, and the Port Freeport.
The City has a population of approximately 29,000 people; and is part of a larger
community of cities known as the Brazosport Area. This area represents a population of
over 73,000 and includes: Lake Jackson, Clute, Freeport, Oyster Creek, Quintana,
Angleton and Brazoria. Lake Jackson serves as the regional retail and medical center.
2. Structure
On January 30, 1954, the City adopted a Home Rule Charter and approved the
Council/Manager form of government with a Mayor and five City Council members,
elected on an "at-large", non-partisan basis for a term of two years. Operating under a
Home Rule Charter and the Council/Manager plan, the City Council is the legislative
body of the City. The City Manager, who is responsible for the general administration of
the City, is appointed by the City Council. The Basic Financial Statements of the City
include all government activities, organizations and functions for which the City is
financially responsible as defined by the Governmental Accounting Standards Board.
Based on these criteria, no other governmental organizations are included in this report.
For additional information on the reporting entity, refer to Note 1 to the basic financial
statements Description of the City
3. Component Units
Based upon the criterion set forth in generally accepted accounting principles, The Lake
Jackson Development Corporation is considered a component unit and currently includable
with the City's reporting entity.
4. Fund Structure
The City maintains nineteen (19) individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures, and changes in fund balances for the General Fund, Economic
Development Fund (special revenue fund), Coronavirus Recovery Fund (special revenue
fund), 2018 Downtown Improvement Fund (capital projects fund) and 2021 Infrastructure
Improvements Fund (capital projects fund); all of which are considered to be major funds.
Data from the other fourteen (14) funds are combined into a single, aggregated
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presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
The City maintains two categories of proprietary funds - Enterprise Fund and Golf Course
Operating Fund. Proprietary funds are used to report the same functions presented as
business-type activities in government-wide financial statements. The City uses proprietary
funds to account for its water and sewer, golf, and sanitation operations. Proprietary funds
provide the same type of information as the government-wide financial statements, only in
more detail. The basic proprietary fund financial statements can be found on pages 34
through 39 of this report.
Fiduciary funds are used to account for resources held for the benefit of parties outside of
the government. Fiduciary funds are not reported in the governmentwide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting used for fiduciary funds is much like that used for proprietary
funds. The City maintains no fiduciary funds.
5. Budget
The City Manager submits to the City Council a proposed operating budget for the fiscal
year beginning October 1. The adopted operating budget is legally enacted through
passage of an ordinance and represents the proposed fund appropriations. Modifications
are made by the City Council periodically. Unencumbered appropriations lapse at the end
of the year. Budgeted amounts may be transferred between accounts or divisions by the
City Manager on a limited basis. The budget, as well as all revenues, appropriations, and
encumbrances are recorded in the accounting records.
The City participates in the Texas Municipal Retirement System and also offers its
employees IRC 457 Deferred Compensation plans through Mission Square (formerly
known as ICMA).
More detailed information on the government and its finances, as well as a summary of
significant accounting policies can be found in the City's Annual Comprehensive Financial
Report (ACFR).
6. Accounting Process - Related Systems
The City's accounting records for general governmental operations are maintained on a
modified accrual basis, with revenues being recorded when available and measurable, and
expenditures being recorded when the services or goods are received and the liabilities are
incurred. Accounting records for the City's enterprise fund are maintained on the accrual
basis.
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