Audit Services

The City of Indianola is requesting proposals from qualified firms of certified public accountants for audit services relating to the audit for fiscal years ending June 30, 2027, - June 30, 2029, subject to review by Finance Department personnel after the conclusion of the initial audit. There will also be an option to extend the agreement to include fiscal years 2030, 2031, and 2032, with such extension to be exercised annually. Terms may be modified as mutually agreed by the audit firm and the City for purpose of the extension.

Below is the information relating to minimum specifications of services, data to be included in the proposal, evaluation criteria, and select information relating to the City of Indianola.

The audit shall be performed in accordance with the following:

• US generally accepted auditing standards
• The standards for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States
• The Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-profit Organizations, when applicable

The audit report should conform to:

• Reporting formats specified by the Iowa Auditor of State’s office
• AICPA Audit Guides
• The requirements of the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-profit Organizations, when applicable
• Applicable provisions of the Iowa Code and guidance from the Iowa Auditor of State

The audit report should include a management letter, if appropriate, which includes recommendations related to the financial statements, internal controls, accounting systems, and compliance issues.

City staff plan to take an active role in the preparation of the financial statements. Staff will prepare workpapers and work with the firm to produce accurate financial information. The firm will be responsible for all adjusting entries and final copies.

Report preparation, editing and printing shall be the responsibility of the firm. The City requires ten (10) bound copies of the final report and an electronic PDF copy. The firm will be responsible for properly and timely filing the final report with the Auditor of State.

The firm should have enough staff dedicated to the audit to complete on-site fieldwork within five (5) working days, unless extended by mutual agreement of the parties. Fieldwork time will be, whenever possible, in contiguous blocks of time on site. An exit conference with the City Manager and designated staff will take place on the last day of the fieldwork, or as scheduled by mutual agreement of the parties.

Following completion of the report, a representative of the firm will be responsible for presenting an overview of the audit to the City Council and answering any related questions.

**Two (2) hard copies** of the Firm’s proposal are due by **November 6, 2026 at 5:00 PM** to:

City of Indianola, Proposal for Audit Services, c/o City Clerk, 110 N 1st St., Indianola, IA 50125

The City Council plans to consider selecting an auditor on December 7, 2026. The City’s fiscal year begins on July 1 and ends on June 30. By statute, the audit must be filed with the State of Iowa by March 31 in the year following the completion of the applicable fiscal year, but the City would like the draft Audit completed by November 1 (for the completion of the Annual Financial Report) and the final audit report completed by or before November 30 to allow for a presentation of audit results to the City Council.

The proposal will be evaluated upon overall cost, including any out-of-pocket expenses for performance of the audit, proposed scope and ability to meet City deadlines, references and the qualifications and experience of the firm.

The agreement may be subject to renewal annually for a maximum of an additional three years, which includes the FY32 audit. A certificate of insurance will be required from the firm awarded the contract. The selected firm shall execute an engagement agreement in a form acceptable to the City.