The existing auditing services contract with Patillo, Brown, and Hill ended after the completion of the FY 2023-24 audit and the approval of the Annual Comprehensive Financial Statement on March 18, 2025.

Staff published a Request for Proposals (RFP) for auditing services and received 6 responses. Members of the Finance Staff reviewed the proposals and scored based on the criteria set in the RFP with 30 pts for the proposer's qualifications, abilities, and reputation; 30 points for the proposed quality of proposed services/system; 10 points for the responsiveness of the proposal; and 30 points for the cost. Based on the evaluation, the firm ABIP, PC received the highest score.

Audit services are professional services and as such, are not subject to competitive procurement requirements. However, award must be made on the basis of competence/qualifications. If council wanted to award the contract to another firm on the list (with demonstrated competence) to complete the requested services, it would be allowed. To verify the selection, staff met with the Audit Committee consisting of the City Manager's Office, the Finance Director and Assistant Director, the Mayor, Councilmember Watson, and Councilmember Heyward on July 3, 2025. The Audit Committee reviewed the RFP, the services requested, the scores, and asked clarifying questions on different proposals that were received. At the end of the meeting, the committee's recommendation to the full Council is to award a contract to ABIP, PC.

The proposed agreement would be for a maximum of 5 years and could be terminated early if necessary.

To award a contract for Auditing Services.

Having an external review of the City's financial records and internal controls benefits the city and residents by helping to prevent fraud and help make financial decisions based on accurate information.

Staff recommends approval of Resolution 25-R-095

The proposed cost schedule is as follows:

Description	Cost	Cost w/Single Audit
City of Schertz Year1	$54,180	$58,905
Schertz Economic Development Corp	$6,300
City of Schertz Year 2	$56,900	$61,900
Schertz Economic Development Corp	$6,620
City of Schertz Year 3	$59,800	$65,000
Schertz Economic Development Corp	$6,950
City of Schertz Year 4	$62,800	$68,300
Schertz Economic Development Corp	$7,300
City of Schertz Year 5	$66,000	$71,700
Schertz Economic Development Corp	$7,700

Staff and Audit Committee recommend approving Resolution 25-R-095