Internal Audit Services

REQUEST FOR PROPOSAL
Bid Number 2026-004
Internal Audit Services
Finance Department
501 Main Street South
Southbury, CT
March 19, 2026

Overview:
A. General Information
The Town of Southbury invites proposals from qualified accounting firms interested in providing
internal audit functions for the Town. The internal audit function will be performed to ensure
that the operating procedures including all internal controls are being followed and all
expenditure of funds are in accordance with, laws, regulations, and Town policy.
To be considered, three (3) copies of a proposal must be received by Dan Colton, Finance
Director, at 501 Main Street South, Southbury CT, by 12:00 PM on April 9, 2026. The Town
reserves the right to reject any or all the proposals submitted.
The Town reserves the right to request an interview from proposers as part of the evaluation
process.
It is anticipated the selection of a firm will be completed by April 23, 2026. Following the
notification of the selected firm, a contract will be prepared for review and approval by the
Chairman of the Board of Finance on or before May 1, 2026. The Town reserves the right to
reject any or all proposals, to waive any non-material irregularities or information in the
proposal, and to accept or reject any items or combination of items.
B. Term of Engagement
It is the intent of the Town of Contract for the services presented herein for a term of three (3)
years.
The proposal package shall present all-inclusive audit fees for each year of the contract.
Scope of Work:
The internal audit will evaluate the adequacy of internal financial controls with an emphasis on
areas vulnerable to fraud and abuse, the competence of the Town's current financial policies and
procedures, and the appropriateness of the Towns financial and auditing structure. The
objectives of the engagement are:
An annual review and update of risk assessment
Annual testing and evaluation of one or more of the Towns departments
considering risk, control weaknesses, and complexity of operations:
o Make an independent selection of key controls for testing to ensure
controls are appropriate and effective when applied.
o Test the design and effectiveness of these internal controls to detect
deficiencies.
o Perform audit procedures designed to identify unusual and/or questionable
transactions.

Preparation of reports which analyze significant risk assessment findings,
recommended changes for strengthening internal controls and reducing identified
risks.
Areas that may be addresses include but are not limited to:
Accounting records
Bank reconciliations
Receipts and revenues
Purchasing
Accounts payable and expenditures
Payroll
Financial reporting
Grants management
Capital assets
Financial management system administration
Work Paper Retention:
All working papers and reports must be retained at the auditor's expense for a minimum of five
(5) years, unless the Town notifies in writing of a need to extend the retention period. The
auditor will be required to make working papers available to the Town.
Time Requirements:
The Town will be ready to start the internal audit by October 15th each year.
The auditor shall provide all drafts and recommendations for improvements to the Board of
Finance Audit Committee within a reasonable timeframe after the last day of fieldwork. The
auditor should be available for any meetings that may be necessary to discuss the draft audit
report. Once all issues of discussion are resolved, the completed reports shall be delivered to the
Board of Finance Audit Committee. It is expected that this process will be completed and the
final product delivered by December 31st.

CONTRACT CONSIDERATIONS
EQUAL OPPORTUNITY - AFFIRMATIVE ACTION
The successful firm shall comply in all aspects with the Equal Employment Opportunity Act. A
firm with 15 or more employees shall be required to have an Affirmative Action Plan that
declares that the Contractor does not discriminate based on race, color, religion, sex, national
origin, or age, which specifies goals target dates to assure the implementation of equal
employment. A firm with fewer than 15 employees shall be required to have a written equal
opportunity policy statement declaring that it does not discriminate based on race, color,
religion, sex, national origin, or age.
Findings of noncompliance with applicable State and Federal equal opportunity laws and
regulations could be sufficient reason for revocation or cancellation of this contract.
INDEMNIFICATION
The awarded firm agrees to indemnify, defend, and save harmless, the Town of Southbury, as
well as its officers, agents, and employees from any and all claims and losses to the extent
caused by the negligent act, error, or omission of the awarded firm resulting from the
performance of this contract, except to the extent caused by the negligent acts of the Town of
Southbury or its officers, agents or employees.
The Town, as a sovereign government, cannot indemnify businesses or individuals.
INSURANCE
Prior to the execution of any contract, the Town of Southbury requires that any awarded
contractor providing materials, equipment, or services to the Town must provide to the Town
a certificate of insurance (Acord or other approved format) naming the Town of Southbury as
additional insured, for the following:
General liability (including completed operations coverage) in the amounts of
$1,000,000 (combined single limit) Bodily Injury/Property Damage coverage per
occurrence and $2,000,000 general aggregate coverage.
Automobile Liability in the amount of $1,000,000 (combined single limit),
Property Damage, and Bodily Injury coverage
Professional Liability, in an amount not less than $500,000.00 per
occurrence and $1,000,000.00 aggregate.
Worker's Compensation as defined in the Connecticut General Statutes
Any subcontractor to a contracted firm shall be likewise covered and shall furnish certificates
of coverage acceptable to the Town before starting work.
The awarded firm shall maintain professional liability insurance until the expiration of the statute
of limitations. In the event there is no statute of limitations specifically applicable to this project,

the awarded firm shall maintain coverage for a reasonable period after the date of substantial
completion of the project as agreed to by the Town and the awarded firm.
INVOICING AND PAYMENT
Invoices shall be paid promptly by the Town unless any items thereon are questioned, in which
case payment will be withheld pending verification of amount claimed and the validity of the
claim. Standard payment terms are Net 30 Days from receipt of properly executed invoice(s). If
your firm submits a proposal that includes payment schedules based on the completion of
designated phases, those stages must be clearly outlined in your proposal. The Town cannot
make payments for "execution of contract" (payments due upon contract signing). The Town is
tax-exempt and shall not be charged tax.
AWARD CONSIDERATIONS
The Town may reject any or all proposals or submittals for such reason as it may deem proper. In
acceptance of proposals or submittals, the Town will be guided by consideration of the interests
of the Town. The Town also reserves the right to negotiate further with one or more of the firms
as to any features of their proposals or submittals and accept modifications of the work and price
when such action will be in the Town's best interests.
Firms selected for an interview will be provided with the interview panel's content; the selected
firms will be required to submit affidavits relating to their relationship(s) with members of the
panel. The names of interview committee members will be released solely for the purpose of
preparation of affidavits; the selected firms shall not directly contact the panel members prior
to immediately following the interview process.
The individual signing this submittal hereby declares that no person or persons other than
members of his/her own organization are interested in this project or in the contract proposed to
be taken; that it is made without any connection with any other person or persons making a
proposal for the same work and is in all respects fair and without collusion or fraud; that no
person acting for or employed by the Town of Southbury is directly or indirectly interested
therein, or in the supplies or works to which it relates or will receive any part of the profit or any
commission therefrom in any manner which is unethical or contrary to the best interests of the
Town of Southbury.
Unless otherwise noted within a proposal, proposals received in response to this document,
including proposed fee schedules, are assumed to be valid and binding for one hundred and
twenty (120) days from receipt of the proposal. If an award is not made within such time, the
proposal can be deemed to be either no longer valid or can be extended with the mutual consent
of the Town and the firm submitting the proposal. Documents/reports/data become the property
of the Town of Southbury.

TOWN OF SOUTHBURY
NOTICE TO CONTRACTORS
CODE OF ETHICS/CONFLICT OF INTEREST ORDINANCE
The Contractor shall comply with all applicable provisions of said Ordinance. The Contractor
acknowledges receiving a copy of said Ordinance. The Contractor further agrees that any
instance of its violating any provisions of the Code of Ethics/Conflict of Interest Ordinance will
be sufficient cause for the Town to terminate any or all of the Contractor's contracts or
pending contracts with the Town. The Contractor agrees that the above clause will also be
incorporated in all of its contracts with its subcontractors and consultants.
ACKNOWLEDGEMENT OF RECEIPT
I have read the Code of Ethics/Conflict of Interest Ordinance and agree to abide by its
terms.
Name _______________________
Signature___________________________
Company Name______________________
Date_______________________________

Code of Ethics/Conflict of Interest Ordinance
A. Declaration of Policy.
1. The proper operation of the government of the Town of Southbury requires that public
officers, employees, and members of boards, commissions and committees be independent,
impartial and responsible to the people; that governmental decisions and policies be made in
the proper channels of the government structure and free from coercive or other improper
influence; that public office and employment not be used for personal gain; and that the
public have confidence in the integrity of its government.
2. The purpose of this Ordinance is to set forth standards of ethical conduct to
assist public officers, employees, members of boards, commissions and committees
and persons dealing with them, when they are in the performance of their duties, so
as to maintain and enhance a tradition of responsible and effective public service.
3. In the interest of ensuring that concerns regarding possible conflict of interests are
promptly raised, this Ordinance permits a concern that a conflict of interest may exist to be
raised by any person, regardless of whether the person would be considered an aggrieved
party as that term is interpreted under Connecticut law. Any failure to observe the procedures
set forth in this Ordinance shall not, however, afford a basis for an action for damages against
the Town, any Town board, commission, agency or employee, or any member of any Town
board or commission, or for challenging a decision, license, permit or other action of a Town
employee, board or commission or member of same by a person who would not, but for the
provisions of this Ordinance, have standing to bring such an action.
B. Definitions.
The following definitions shall apply to this Ordinance:
1. Conflict of Interest. A conflict of interest shall be deemed to exist if any Town
officer, employee, or member of any board or commission has a financial or personal
interest, direct or indirect, in any purchase, contract, transaction, or decision involving his
office, board, commission or employment. Indirect interest is defined as an interest in
which an officer, member or employee might influence a decision or event so as to
achieve gain, financial or otherwise, on behalf of a family member, friend or associate or
that creates an actual or perceived monetary or personal indebtedness to any party.
2. Financial Interest. A financial interest shall be deemed to exist if:
a. Any such officer, member or employee might, directly or indirectly, derive
pecuniary or financial gain or suffer loss from any purchase, contract, transaction or
decision involving his office, board, commission or employment; or

b. A business or professional enterprise in which such officer, employee or member
has any interest as an owner, member, partner, officer, employee or stockholder or
has any other form of participation that will be affected by the outcome of the
matter under consideration.
3. Personal Interest. A personal interest shall be deemed to exist if any such officer,
member or employee shall have an interest with a person involved in any such
contract, transaction or decision by reason of:
a. Relationship within the fourth degree by blood or marriage; or
b. Close business relationship; or
c. An interest that is averse to the interests of the Town with respect to the
matter under consideration.
4. Material Conflict of Interest. A conflict of interest shall be deemed to be material
where a reasonable person would conclude that the financial or personal interest:
a. is incompatible, or would to a reasonable person appear to be incompatible,
with the proper discharge of official duties; or
b. would tend to impair, or would to a reasonable person appear to impair,
independence of judgment and action in the performance of official duties.
5. Public Official. An elected or appointed official, whether paid or unpaid, full or
part-time, of the Town.
6. Ethics Commission. The Town of Southbury Commission on Ethics as authorized by
Section 7-148h of the Connecticut General Statutes.
C. Disclosure of Conflict.
1. Any Town officer, employee, or member of any Town board or commission who has a
conflict or potential conflict of interest as defined herein, whether or not such conflict
or potential conflict is material, shall disclose the interest causing such conflict or
potential conflict in writing to the Board of Selectmen.
2. Any member of any Town board or commission who has a conflict of interest, whether or
not such conflict is material, shall, in addition to the disclosure required by this Ordinance,
disclose the interest causing such conflict to such board or commission, and such disclosure
shall be recorded in the board's or commission's minutes.
D. Determination of Materiality.

1. In the event that a disclosure or a claim of a conflict of interest with respect to any
Town officer or employee has been made to the Board of Selectmen, and the officer or
employee does not disqualify himself from matters with respect to which the conflict of
interest allegedly exists, the Board of Selectmen promptly shall inquire into the facts of
the matter and determine whether or not a conflict exists and if so, whether it is material.
2. In the event that a disclosure or a claim or a conflict of interest with respect to any
member of a Town board or commission has been made to such board or commission, and
the member does not disqualify himself from matters with respect to which the conflict of
interest allegedly exists, the board or commission shall forthwith determine by a
majority of those members present, excluding the member whose interest is in question,
whether or not a conflict exists and, if so, whether it is material.
E. Disqualification.
If it has been determined that a material conflict of interest exists, the Town officer,
employee or member of any Town board or commission who has the conflict shall be
disqualified from discussing or acting upon any matter encompassed by that conflict of
interest, and shall leave the room during any public hearing, discussions or deliberations
regarding the matter. Any Town officer, employee or member of any Town board or
commission may disqualify himself even though the conflict of interest is not material.
F. Claim of Conflict.
If a formal written complaint is made to the Ethics Commission that any Town officer,
employee, or member of any Town board or commission has an undisclosed conflict
of interest, the Ethics Commission shall record the claim in its minutes.
G. Gifts and Favors.
No Town officer, employee, or member of any Town board or commission shall accept or
receive, directly or indirectly, anything of value (whether by rebate, gift, promise, obligation or
contract for future reward or Compensation or otherwise) for awarding or influencing the
award of any decision, permit, license, contract or purchase order by the Town. Anything of
value when in the form of a gift shall not be deemed relevant if the actual cost of that item is
less than $10.00.
H. Representation.
1. Without the prior written consent of the Ethics Commission, no Town employee or
public official shall appear for Compensation before any Town board or agency in which
he/she was formerly employed or served as an official at any time within a period of
one (1) year after termination of his/her service with the Town.

2. Without the prior written consent of the Ethics Commission, no present or former
Town employee or public official shall represent anyone other than the Town
concerning any particular matter in which he/she participated personally and
substantially while in municipal service.
3. No Town employee or public official shall disclose or use confidential information
acquired in the course of and by reason of his/her official duties, for personal
and/or financial gain for himself/herself or others.
4. No former Town employee or public official who participated substantially in the
negotiation or award of municipal contract or who supervised the negotiation or award of
such a contract shall accept employment with a party to the contract other than the Town
for a period of one (1) year after such contract is signed.
I. Independent Contractors.
Before hiring any consultant, independent Contractor or other advisor, the officer, employee,
board or commission that proposes to hire the independent Contractor shall inquire whether
the independent Contractor has any conflict of interest as that term is defined in this
Ordinance or as defined in any code of ethics or similar code applicable to the independent
Contractor. Any such conflict shall be specified in the appropriate Town records (such as
minutes of any relevant board or commission). Prior to hiring any independent contractor
with a conflict, the officer, employee, board or commission proposing to hire the independent
Contractor must make a determination that the conflict is not material and/or that despite
the conflict, the independent Contractor should be hired. The decision and the reasons
therefore must be a matter of public record.
No consultant, independent Contractor or other advisor of the Town shall represent a private
interest in any action or proceeding against the interest of the Town which is in conflict with the
performance of his/her duties as such consultant, independent Contractor or advisor. No
consultant, independent Contractor or advisor may represent anyone other than the Town
concerning any matter in which he/she participated personally and substantially as a consultant
to the Town. Neither shall such consultant, independent Contractor or advisor disclose
confidential information learned while performing his/her duties for the Town, nor shall he/she
use such information for the personal and/or financial interests of himself/herself or others.
J. Procedure.
All claims pertaining to a violation of this Ordinance shall be made, in writing, to the Ethics
Commission in accordance with the rules and regulations promulgated by that Commission
which shall be found in the Town of Southbury Ethics Commission Statement of Procedures.
These rules shall require the Complainant to specify the facts that gave rise to his/her claim
and the specific provision of this Ordinance that has been breached on a Form provided by the
Ethics Commission. The Ethics Commission may, but is not required to consider claims made