Professional Auditing Services

TOWN OF CHARLESTOWN
REQUEST FOR PROPOSALS
PROFESSIONAL AUDITING SERVICES
The Town of Charlestown is soliciting proposals from qualified firms of Certified Public
Accountants, licensed to practice in the State of Rhode Island, to audit the Town of Charlestown's
financial statements for the fiscal year ending June 30, 2026, with the option of auditing the Town
of Charlestown's financial statements for each of the 4 subsequent years. Continuation beyond the
initial fiscal year of the five-year contract will be at the discretion of the Town. The audit is to be
performed in accordance with generally accepted auditing standards established by the American
Institute of Certified Public Accountants, the standards for financial audits set forth in Government
Auditing Standards issued by the Comptroller General of the United States, the provisions of the
amended Federal Single Audit Act of 1984 and U.S. Office of Management and Budget (OMB)
Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F - Audit Requirements and
any and all additional requirements that may be in place at time of said audit. Firms expressing
interest will be provided with a copy of a Request for Proposal (RFP), by contacting Patrick
Gormley at the Treasurer's Office, 4540 South County Trail, Charlestown, RI 02813. Sealed
proposals must be submitted to the Town Clerk's Office, at the above address, by Friday,
June 5, 2026, at 3 o'clock p.m. clearly marked in the lower left corner "RFP, Auditing
Proposal".
The Town reserves the right to reject any or all bids and accept the one that it deems to be in the
best interest of the Town.
Jeffrey Allen
Town Administrator

Audit RFP 2026
I. INTRODUCTION
A. General Information
The Town of Charlestown is requesting proposals from qualified firms of certified public
accountants to audit its financial statements for the fiscal year ending June 30, 2026, with the option
of auditing its financial statements for each of the four [4] subsequent fiscal years. Continuation
beyond the initial fiscal year of the three-year contract will be at the discretion of the Town.
These audits are to be performed in accordance with auditing standards generally accepted in the
United States of America, and the standards for financial audits set forth in Government Auditing
Standards issued by the Comptroller General of the United States, the provisions of the federal
Single Audit Act of 1984 as amended by the Single Audit Act Amendments of 1996 and U.S.
Office of Management and Budget (OMB) Guidance 2 CFR part 200 - Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform
Guidance) - Subpart F - Audit Requirements.
The minimum requirements of the Office of the Auditor General of the State of Rhode Island and
the Division of Municipal Finance of the State of Rhode Island should also be followed.
There is no expressed or implied obligation for the Town of Charlestown to reimburse the
responding firms for any expenses incurred in preparing proposals in response to this request.
To be considered, three (3) copies of a proposal must be received by the Office of the Town Clerk
at Town of Charlestown, 4540 South County Trail, Charlestown, RI 02813 by 3:00PM on June 5,
2026. The proposals will be opened on June 5, 2026, at 3:00PM. The Town of Charlestown reserves
the right to reject any or all proposals submitted.
During the evaluation process, the Town reserves the right, where it may serve the Town of
Charlestown's best interest, to request additional information or clarifications from proposers, or to
allow corrections of minor errors or omissions. At the discretion of the Town of Charlestown, firms
submitting proposals may be requested to make oral presentations as part of the evaluation process.
The Town of Charlestown reserves the right to retain all proposals submitted and to use any ideas in
a proposal regardless of whether that proposal is selected. Submission of a proposal indicates
acceptance by the firm of the conditions contained in this request for proposal, unless clearly and
specifically noted in the proposal submitted and confirmed in the contract between the Town of
Charlestown and the firm selected.
It is anticipated that the selection of a firm will be completed by June 5, 2026. Following the
notification of the selected firm, it is expected a contract will be executed between both parties by
June 14, 2026.
B. Term of Engagement
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Audit RFP 2026
A five-year contract is being considered, subject to the annual review and recommendation of the
Town Administrator and Town Treasurer with the concurrence of the Charlestown Town Council.
II. NATURE OF AUDIT SERVICES REQUIRED
A. General
The Town of Charlestown is soliciting the services of qualified firms of certified public accountants
to audit its financial statements for the fiscal year ending June 30, 2026, with the option to audit the
Town of Charlestown's financial statements for each of the two subsequent fiscal years. These
audits are to be performed in accordance with the provisions contained in this request for proposal.
B. Scope of Work to be Performed
The Town of Charlestown desires the auditor to express an opinion on the fair presentation of its
basic financial statements, which will include government-wide financial statements, fund financial
statements, and notes to the financial statements in conformity with generally accepted accounting
principles.
The auditor shall also be responsible for performing certain limited procedures involving required
supplementary information as required by the Governmental Accounting Standards Board as
mandated by generally accepted auditing standards.
Required Supplementary Information shall include:
* Management's Discussion and Analysis
* Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
* Schedules related to defined benefit pension plans and OPEB plans, if applicable
The Town also desires the auditor to express an "in-relation-to" opinion on the supplementary
financial statements and schedules based on the auditing procedures applied during the audit of the
basic financial statements.
Supplementary financial statements, schedules and information shall include:
* Combining fund financial statements shall be presented as supplementary information for all
non-major governmental funds. Each non-major fund (included within the Special Revenue
Funds, Capital Projects Funds, Debt Service Funds, and Permanent Funds) shall be
presented as separate columns in the combining fund financial statements. Similarly,
combining financial statements shall also be presented for each of the other fund types when
there is more than one internal service fund, enterprise fund, and fiduciary fund.
* Combining financial statements shall be presented for the General Fund when separate funds
are maintained within the accounting system, but the funds do not qualify as special revenue
funds, in accordance with generally accepted accounting principles, and are merged with the
General Fund for financial reporting purposes.
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If applicable, an audit of major federal programs shall be performed in accordance with the criteria
outlined in OMB Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards - Subpart F - Audit Requirements.
* The auditors shall audit major programs as required by OMB Guidance 2 CFR part 200-
Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal
Awards (OMB Uniform Guidance) - Subpart F - Audit Requirements and express an opinion
on compliance for each major program.
* Major Programs shall be determined in accordance with guidance provided in OMB
Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principals, and
Audit Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F - Audit
Requirements.
* The auditor is not required to audit the supplementary schedule of expenditures of federal
awards. However, the auditor is to provide an "in-relation-to" report on that schedule based
on the auditing procedures applied during the audit of the financial statements.
Other schedules may be required by the Town and/or the State of Rhode Island Director of Revenue
or Auditor General, or as required by the applicable section of the general laws such as, Rhode
Island General Law Section (RIGL) 45-10-6 (Contents of Audit Report).
* The Tax Collector's Annual Report shall be presented within Other Supplementary
Information to meet the requirements of RIGL 45-10-6 for additional information to the
basic financial statements. The Tax Collector's Annual report should be presented in
accordance with the revised format requirements of the RI Department of Revenue -
Division of Municipal Finance (contact the Division for the most current template). The
auditors engaged to audit the municipality's financial statements shall also report on the Tax
Collector's Annual Report, as supplementary information ("fairly presented in relation to the
municipality's basic financial statements").
* Municipal Transparency Portal (MTP) - Enacted legislation amended Rhode Island General
Laws 45-12-22.2 and 44-35-10 to improve required reporting by creating the Municipal
Transparency Portal (MTP) which will represent a centralized location for municipal
financial information. Each municipality shall include their Annual Supplemental
Transparency Report, MTP2, within their annual audited financial statements. This requires
one schedule that includes municipal reportable government services. The Annual
Supplemental Transparency Report, MTP2, included within the annual audit report shall
also include reconciliation to the amounts included in the fund level financial statements.
The auditors engaged to audit the municipality's financial statements shall also report on the
Annual Supplemental Transparency Report (including the reconciliations), MTP2, as
supplementary information ("fairly presented in relation to the municipality's basic financial
statements").
Auditors are not required to opine on the municipality's determination of "reportable
government services" (RGS) as defined in Section 2.1 of the Municipal Transparency Portal
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Audit RFP 2026
Implementation Guidance. The municipality will make the determination of "reportable
government services" for inclusion in the various reports required to be submitted through
the municipal transparency portal. However, auditors will be expected to review the
reconciliations as part of the Annual Supplemental Transparency Report, MTP2, (required
for inclusion in the audited financial statements as supplementary information) to assess the
inclusion of amounts reported which are not within the municipality's general fund.
The format of the required MTP schedules and related reconciliations, as well as the typical
timeline for filing of the annual municipal data report and coordination with annual financial
statement audit, are detailed in the MTP Implementation Guidance (available on the
Division of Municipal Finance website: Municipal Transparency Portal | RI Division of
Municipal Finance).
The Independent Auditor's Report shall include reference to the Annual Supplemental
Transparency Report, MTP2, as supplementary information. See the Municipal
Transparency Portal Implementation Guidance for additional information.
C. Auditing Standards to be Followed
To meet the requirements of this request for proposal, the audit shall be performed in accordance
with:
* Generally accepted auditing standards as set forth by the American Institute of Certified
Public Accountants,
* The standards for financial audits set forth in the Government Auditing Standards issued by
the Comptroller General of the United States,
* The provisions of the Single Audit Act of 1984 (as amended by the Single Audit Act
Amendments of 1996),
* The provisions of U.S. Office of Management and Budget (OMB) Guidance 2 CFR part 200
- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (OMB Uniform Guidance) - Subpart F - Audit Requirements
* The auditing and reporting requirements of the RI Auditor General.
D. Reports to be Issued
Upon completion of the audit of the fiscal year's financial statements, the auditor shall report on:
1. The fair presentation of the financial statements in conformity with generally
accepted accounting principles based upon an audit performed in accordance
with generally accepted auditing standards and Government Auditing Standards.
The auditor shall also make a reference to, but not open on, required
supplementary information consistent with reporting guidance in the applicable
AICPA Audit Guide.
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Audit RFP 2026
2. Supplementary financial statements, schedules and information being fairly
stated in all material respects in relation to the basic financial statements as a
whole.
* The supplementary information shall include combining fund financial
statements (and if applicable, General Fund combining financial
statements), the Annual Supplemental Transparency Report (MTP2,
including the reconciliations), and the Tax Collector's Annual Report.
3. A report on internal control over financial reporting and on compliance and other
matters based on an audit of financial statements performed in accordance with
Government Auditing Standards.
4. Reports and summaries related to federal financial assistance as required by
OMB Guidance (the auditor should refer to applicable OMB guidance in effect
and the applicable AICPA Audit Guide for reporting guidance) and a completed
Form SF-SAC, "Data Collection Form for Reporting on Audits of State, Local
Governments, Indian Tribes, Institutions of Higher Education, and Non-Profit
Organizations" to be submitted in accordance with the current method of
submission for Form SF-SAC and Single Audit reporting packages (per OMB
Public Notice), to the Federal Audit Clearinghouse Internet Data Entry System.
5. The supplementary schedule of expenditures of federal awards (SEFA) - the
auditor is to provide an "in-relation-to" opinion on the SEFA, based on the
auditing procedures applied during the audit of the financial statements.
6. Other reports that may be requested by the Director of Revenue and/or Auditor
General or as required by the applicable section of the general laws.
In the required reports on internal controls, the auditor shall communicate any significant
deficiencies during the audit. A significant deficiency shall be defined as a deficiency, or
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented or
detected and corrected on a timely basis.
Significant deficiencies that are also material weaknesses shall be identified as such in the report.
Other matters, for example, control deficiencies that are not significant deficiencies or material
weaknesses discovered by the auditor should be reported in a separate letter to management.
The report on compliance shall include all material instances of noncompliance. All nonmaterial
instances of noncompliance shall be reported in a separate management letter.
The management letter should include comments, and/or recommendations beyond those included
in the reports described above, on such matters as:
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Audit RFP 2026
1. Policies, procedures and practices employed by the municipality.
2. Weaknesses in the internal controls that are not "significant deficiencies" or
material weaknesses.
3. Use of resources to provide a governmental service in a reasonable, judicious,
economical, and efficient manner.
4. Compliance with state laws pertaining to the municipality and with rules and
regulations established by the municipality.
Upon completion of the audit, the management letter will be submitted to the Charlestown Town
Treasurer with copies to the Director of Revenue and the Auditor General.
The accounting firm will hold an exit conference with the Town Treasurer to discuss the audit as it
relates to the respective departments. Draft copies of all audit reports and management letters shall
be submitted to the Town's Treasurer prior to the exit conference so that there will be adequate time
for review.
At the conclusion of the audit, a representative of the accounting firm will be expected to appear
before the Town Council to discuss the findings of the audit.
Fraud, irregularities, and illegal acts.
Auditors shall be required to make an immediate, written report of all fraud, irregularities, and
illegal acts of which they become aware to the Town Administrator and Town Council.
E. Special Considerations
Outlined below are certain additional requirements, which the Town requires. The cost of providing
these services should be included in the all-inclusive maximum price.
1. Difficulties may be encountered in implementing and complying with specific reporting
requirements mandated by the GASB. The auditor will be responsible for working with
the Treasurer to ensure proper implementation and compliance with any new
pronouncements effective during the contract. In accordance with Government Auditing
Standards, if the firm provides non-audit services, it must evaluate whether providing the
services creates independence impairment with respect to the audit of the Town.
F. Potential Additional Work
1. Any amendments to the contract for additional work will be negotiated in good faith.
Provided, however, in the event when the parties cannot mutually agree upon additional
work to be performed and the cost for said work, then the Town, at its option may
rescind the option period. All potential additional work outside of the scope of the
contract will be discussed in advance of the work being completed. Such amendments
must have a written estimate to include the number of hours and dollar amounts required
to complete the task to be submitted to the Treasurer.
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Audit RFP 2026
2. Any such additional work agreed to between the Town and the audit firm shall be
performed at the same rates set forth in the schedule of fees and expenses included in the
sealed dollar cost bid.
G. Audit Documentation Retention and Access to Audit Documentation
All audit documentation 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 Town of the need to extend the retention
period. The auditors will be required to make copies of all working papers requested by the
Treasurer.
In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow
successor auditors to review audit documentation relating to matters of continuing accounting
significance.
As required by Section 45-10-4 of the RI General Laws, it is understood that the contract between
the municipality and the audit firm shall require the auditor or the audit firm to release any and all
information obtained in the course of the engagement to the Rhode Island State Auditor General (or
his designee). This information includes, but is not limited to, financial data, analysis, audit
documentation, and memoranda. Audit documentation of the independent auditors shall be made
available to the Auditor General (or his designee) upon request. The audit firm shall respond to a
request by the Auditor General for such information promptly. Failure to provide this information
shall constitute a breach of contract and the contract shall give the Auditor General standing in a
court of competent jurisdiction to enforce this provision.
III. DESCRIPTION OF THE GOVERNMENT
A. Name and Telephone Number of Contact People
Patrick Gormley Town Treasurer 401-364-5990 Treasurer's Office
Jeannine Raymond Assistant Treasurer 401-364-1235 x6674 Treasurer's Office
Pamela Baron Cash Accountant 401-364-1235 x5989 Treasurer's Office
B. Background Information
The Town of Charlestown serves an area of 36 square miles with an estimated population of 7,827
as of the 2010 Census. The Town of Charlestown's fiscal year begins on July 1 and ends on June
30.
The accounting and financial reporting functions of the Town of Charlestown are centralized within
the Finance department (Treasurer's Office, Tax Collector's Office, and Town Assessor's Office).
C. Fund Structure
The Town of Charlestown used the following fund types and account groups in its financial
reporting for the fiscal year ending June 30, 2026:
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Audit RFP 2026
Number of Number With
Individual Legally Adopted
Fund Type/Account Group Funds Annual Budgets
General fund 1 1
Special revenue funds 35 0
Component Unit 0 0
Debt service funds 0 0
Capital projects funds 12 0
Enterprise funds 2 2
Internal service funds 13 0
Private purpose trust funds 0 0
Permanent funds 2 0
Pension trust funds 0 0
OPEB trust funds 1 0
Custodial Funds 0 0
D. Budgetary Basis of Accounting.
The Town of Charlestown prepares its budgets on a basis consistent with generally accepted
accounting principles.
E. Computer Systems
The Town presently utilizes Infinite Vision (accounting), Vision Government Solutions (collections
and assessment), and ADP (payroll) along with Microsoft Office for ancillary purposes. All
financial applications are processed through these systems.
F. Availability of Prior Year Audit Reports and Working Papers
Interested proposers who wish to review prior years' audit reports should contact Patrick Gormley at
4540 South County Trail, Charlestown RI 02813 or by calling (401) 364-5990 or by email
pgormley@charlestownri.gov. The Town of Charlestown will make the prior year audit reports
available to applicants to aid their response to this request for proposal. The audited financials
statements can also be found on the Town's website www.charlestownri.gov.
IV. TIME REQUIREMENTS
A. Proposal Calendar
The following is a list of key dates up to and including the date proposals are due to be submitted:
Request for proposals issued May 19, 2026
Due date for proposals Friday, June 5, 2026, 3:00 PM
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Audit RFP 2026
B. Notification and Contract Dates
Selected firm notified June 2026
Contract date July 14, 2026
C. Date Audit May Commence July 2026
The Town will have all records ready for audit as specified in the engagement letter.
D. Schedule for the 2026 Fiscal Year Audit (A similar schedule will be developed for
audits of future fiscal years if the Town of Charlestown exercises its option for additional audits.)
The auditor shall complete each of the following no later than the dates indicated.
1. Interim Work
The auditor shall complete all interim work by July 31, 2026
2. Detailed Audit Plan
The auditor shall provide the Town of Charlestown by July 31, 2026, both a detailed
audit plan and a list of all schedules to be prepared by the Town of Charlestown.
3. Fieldwork
The Town Treasurer shall prepare preliminary trial balances, and all required
supplementary schedules by October 16, 2026. The auditor shall complete all
fieldwork by November 17, 2026.
4. Draft Reports
The auditor shall have drafts of the audit report(s) along with recommendations,
revisions, and suggestions for improvements to management for review by the Town
Treasurer by November 27, 2026.
5. Final Report
The Town Treasurer will complete the review of the draft report as expeditiously as
possible. It is expected that this process should not exceed one week. During that
period, the auditor should be available for any meetings that may be necessary to
discuss the audit reports of the Town. Once all issues for discussion are resolved, the
final signed report shall be delivered to the Town Treasurer within 14 working days.
It is anticipated that this process will be completed, and the final report delivered no
later than December 19, 2026.
The final report, 9 signed copies and an electronic version of the full report in pdf
format suitable for posting on the Town's website are anticipated to be received by
the Town no Later than December 19th and it will be the audit firm's responsibility to
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