RFP - AUDITING SERVICES - Additional Information for the Auditor RFP

RFP - AUDITING SERVICES

RFP - AUDITING SERVICES PACKET

Additional Information for the Auditor RFP

Is the City electing to change auditors, required to rotate or just required to go out for RFP? Were there any issues with the completion of the audit or with auditor findings? ?The City of Krum is required to go out for RFP. The lack of prioritization given to city matters contributed to deadlines not being met. No issues were found with the audit findings.

If the City were to transition to a new auditor, what would be most important to you in order to experience a smooth transition? Coordination between outgoing and incoming auditors is also important to ensure a seamless transition. In addition, a clear understanding of city processes, expectations, and timelines would help ensure an efficient and seamless transition.

Are there any areas in which your auditor can create added value for your City?

Yes. The city’s auditor can provide added value beyond the annual audit by delivering clear, actionable recommendations to strengthen internal controls, improve financial reporting processes, and enhance overall compliance with applicable standards. The auditor should also serve as a proactive advisor throughout the engagement, communicating observations in real time and assisting the city in addressing issues before they become material findings.

Are there any other unusual issues anticipated for FY2026 that were not present in FY2025 that I should be aware of?? No

How many audit entries were proposed in the last audit completed? ?26

Have there been any management letters issued in the last two years, and if so were any considered a material weakness? No

Approximately how many days and how many auditors were on site for the prior year audit? 4 days required and 1-2 auditors were on site.

What is the City’s expectation for on-site, remote, or hybrid fieldwork? Prior to audit completion, the city requires no fewer than four completed on-site fieldwork visits. Interim fieldwork is included in this requirement.

Is management open to an interim fieldwork visit before year end? ??Yes, we encourage interim fieldwork.

What accounting software does the City use? Have you changed the accounting software since your last audit? ?No changes have been made, Tyler Tech Incode 9 is the current accounting software the City of Krum uses.

Will the City encounter any disciplinary actions from external agencies/entities? If so, please describe.? No

Does the City have any Public Improvement Districts (PIDs) that you maintain a fiduciary responsibility for? Yes, one at this time.

Has there been any fraud at the City in the past two years??? No

Has there been significant turnover in upper management or accounting personnel in the past two years?? No

What were the audit fees for fiscal year 2025?? $67,575

Were there any excess billings from the 2025 auditor for problem areas? If so, what were they? No