Bids, Notices and Solicitations RFP for Audit Services

RFP for Audit Services

Request for Proposal RFP #2026-002
Financial Audit Services

Please contact Debbie Strickland, Director of Finance, for paperwork required for submission - dstrickland@fmhanc.org.

The Fayetteville Metropolitan Housing Authority (FMHA), located in Fayetteville, NC is inviting proposals from independent public accounting firms to perform an audit of various programs for fiscal years ending September 30, 2026, 2027, & 2028, with two additional years at the sole option of the FMHA.

The audit shall be conducted in accordance with Generally Accepted Auditing Standards, as well as, Generally Accepted Government Auditing Standards (Yellow Book) issued by the United States Government Accountability Office. The audit and financial statements shall meet the requirements of federal single audit regulations as prescribed by the Single Audit Act and Single Audit Act Amendments, OMB Circular A-133, Audit for State and Local Governments, GASB- 34 Basic Financial Statement's and Management's Discussion and Analysis for State and Local Governments and Subpart F-Audit Requirements of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. §§ 200.500-.521, as well as, their applicable supplements and amendments. The financial statements are to be prepared by the auditor in accordance with Generally Accepted Accounting Principles (GAAP) and HUD's timetable for submission. This includes assistance with electronically submitting Financial Data Schedules (FDS) via the internet as required by the Real Estate Assessment Center (REAC).

Interested firms should submit three copies of their Proposal which addresses the Proposal Requirements described in the Scope of Work section. One email copy of the proposal will be accepted, but the additional two hard copies should be mailed to the address below.

Proposals will be accepted until Thursday, April 23, 2026 at 4:30 PM (EST)

They should be submitted to:

Financial Audit Services
Fayetteville Metropolitan Housing Authority
Attn: Debbie Strickland, Director of Finance
P.O. Drawer 2349
Fayetteville, NC 28302

If you have any questions concerning this request, please email Director of Finance, Debbie Strickland at dstrickland@fmhanc.org.

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General Information
Scope of Work
Evaluation of Audit Proposals
Proposal Format and Requirements
Contract Terms and Conditions
Bidders Questions
Calendar of Events
Attachments

General Information

The Authority was established as a tax-exempt quasi-governmental entity under the United States Housing Act of 1937 for the purpose of providing affordable housing to low- and moderate-income families in Cumberland County, North Carolina. The governing body of the Authority is composed of an 8-member appointed Board of Commissioners (the "Board"). The Mayor appoints the Board, who in turn hires the Executive Director. The Authority is governed by its charter and by-laws, state and local laws, and federal regulations. The Board is responsible for the establishment and adoption of policy. The execution of such policy is the responsibility of the Authority's management.

For financial reporting purposes, the financial reporting entity consists of (1) the primary government (the "Authority"), (2) organizations for which the primary government is financially accountable and (3) other organizations for which the nature and significance of their relationships with the primary government are such that exclusion would cause the primary government's financial statements to be misleading or incomplete. The Authority has two component units: Hillside - FMHA, LLC and FMHA Empowerment Institute, LLC.

FMHA operates 3 public housing AMPS with a total of 552 public housing units, a Housing Choice Voucher Program, with 1576 vouchers, 32 RAD units and 56 public housing pass- through units throughout various HOPE VI locations. The Authority also manages a VASH voucher program, a Mainstream voucher program and an Emergency Housing Voucher Program. FMHA also receives and manages the ROSS grant program. It is anticipated that within the next two years, FMHA will be managing another 500 RAD Tax Credit units as well as the reverting the HOPE VI properties back to the Authority. The Authority has two component units, Hillside-FMHA, LLC, a 32-unit elderly RAD converted entity, one hundred (100%) percent owned by FMHA and FMHA Empowerment Institute, LLC, incorporated to coordinate and/or provide educational resources and training to FMHA residents through the FMHA Job Skills Training/Pre-Apprenticeship Pilot Program, which is also one hundred (100%) owned by FMHA. In conjunction with the HOPE VI program, the Authority has HOME program and CDBG grant program. FMHA will be creating several more separate entities as they convert more public housing units to RAD. It is important that any Firm have the ability to audit and report on these entities both separately and consolidated.

FMHA's fiscal year begins on October 1 and ends on September 30. The last audit was performed for the 12-month period that ended on September 30, 2024. The last unaudited submission for FMHA in HUD's Real Estate Assessment Center (REAC) was for the 12-month period ending September 30, 2025. Prior year financial statements may be reviewed upon request.

Below is a list of major federally assisted programs of FMHA as of September 30, 2024:

U.S. Department of Housing and Urban Development

Federal Grantor/Program Title Number: Low Rent Public Housing Program
- Federal CFDA: 14.850
- Direct or Indirect: Direct
- Federal Expenditures: $3,888,741
Federal Grantor/Program Title Number: Housing Choice Voucher Program
- Federal CFDA: 14.871
- Direct or Indirect: Direct
- Federal Expenditures: $20,149,464
Federal Grantor/Program Title Number: Public Housing Capital Fund Program
- Federal CFDA: 14.872
- Direct or Indirect: Direct
- Federal Expenditures: 2,480,613
Federal Grantor/Program Title Number: Section 8 Housing Assistance Payments Program
- Federal CFDA: 14.195
- Direct or Indirect: Direct
- Federal Expenditures: 139,228
Federal Grantor/Program Title Number: HOME Investment Partnerships Program
- Federal CFDA: 14.239
- Direct or Indirect: Indirect
- Federal Expenditures: 1,415,539
Federal Grantor/Program Title Number: Community Development Block Grants/Entitlement Grants
- Federal CFDA: 14.218
- Direct or Indirect: Indirect
- Federal Expenditures: 11,367
Federal Grantor/Program Title Number: Resident Opportunity and Self-Sufficiency Grant
- Federal CFDA: 14.898
- Direct or Indirect: Indirect
- Federal Expenditures: 74,617
Federal Grantor/Program Title Number: Mainstream Voucher Program
- Federal CFDA: 14.879
- Direct or Indirect: Direct
- Federal Expenditures: 595,546
Federal Grantor/Program Title Number: Emergency Housing Voucher Program
- Federal CFDA: 14.EHV
- Direct or Indirect: Direct
- Federal Expenditures: 367,120
Total Expenditures of Federal Awards: $19,122,235

It is not the intent of the FMHA to allow for joint proposals or subcontracting.

Scope of Work

A financial statement and compliance audit of FMHA for fiscal years ending September 30, 2026, September 30, 2027, and September 30, 2028 performed in accordance with paragraph two of the RFP cover letter.

The statement should include the following:

Independent Auditors Report
Management Discussion and Analysis
Statement of Net Position
Statement of Revenues, Expenses and Changes in Net Position
Statement of Cash Flows
Notes to Financial Statements
Required Supplementary Information Schedules
- Schedule of Proportionate Share of Net Pension Liability
- Schedule of Pension Contributions
- Schedule of Proportionate Share of Net OPEB
- Schedule of OPEB Contribution of RHIA/RHIPA
- Schedule of Liability and Related Ratios for Single Employer OPEB
Combining Financial Statements and Other Schedules
- Program Combining Statements
  - Net Position
  - Revenues, Expenses and changes in Net Position
  - Cash Flows
- Business Activity Program Combining Statements
  - Net Position
  - Cash Flows
- Financial Data Schedule
  - Project Balance Sheet Summary
  - Project Revenues and Expense Summary
  - Entity Wide Balance Sheet Summary
  - Entity Wide Revenues and Expense Summary
- Statement and Certification of Actual Modernization Costs
  - Notes to Statement and Certificate of Actual Modernization Costs
Budget to Actual Supplemental Schedules
Grant Compliance - Single Audit
- Report on Compliance and Internal Control over Financial Reporting
- Report on Compliance and Internal Control over Major Programs
- Schedule of Findings and Questioned Costs
- Schedule of Expenditures of Federal Awards
- Notes to Schedule of Expenditures of Federal Awards

Report on compliance with applicable laws, regulations, and grant agreements for:
- Section 8 Housing Assistance Programs
- Section 9 Housing Assistance Programs
- Family Self-Sufficiency Grant Program
- ROSS Program
- Locally owned units, locally managed units, and local funds
- Financial Data Schedule
  
  The above procedures shall be in compliance with standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
- Report on Internal Controls in accordance with Governmental Auditing Standards and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance.
- Prepare Bureau of Census Data Collection Form
- Provide any needed technical assistance in completing Management Discussion and Analysis
Attestation by auditors on Financial Data System (FDS) data as to its "fair presentation in relation to audited basic financial statements" in accordance with Government Auditing standards.
If the need for other audit services arises concerning the fiscal year under audit, FMHA expects to be able to negotiate with the selected auditor to obtain the additional services needed.
Reports
1. One electronic and 12 bound, paper copies, of audit opinion, financial statements and compliance report shall be submitted to the Executive Director within eight months of the close of FMHA's fiscal year. It is anticipated that financial records will be closed and ready for audit by November 15th of each year. The Single Audit Act and REAC stipulates a submission due date of nine (9) months after the fiscal year end. However, FMHA requires that the audit report shall be submitted within eight months after the closing of the FMHA's fiscal year end.
2. Preparation of the Data Collection Form for submission to the Federal Audit Clearinghouse.
3. Certification of Actual Modernization Cost Statements must be included in the audit reports as completed.
4. Any other reports as requested by FMHA and as required by HUD's Uniform Financial Reporting Standards (UFRS) for a Public Housing Authority.
5. Preparation and submission of IRS form 990 for Hillside FMHA, LLC and FMHA Empowerment, LLC.
6. The auditor will be expected to communicate to the Executive Director any non-reportable conditions and immaterial instances of noncompliance, if noted. The auditor will also be expected to communicate any general recommendations or observations made during the audit that could be helpful to the management of FMHA.
7. The auditor will be expected to attend a meeting with the Executive Director and Board of Commissioners to present the audit report and costs associated with this presentation should be included in the fee schedules

Evaluation of Audit Proposals

Evaluation Committee - Proposals received will be evaluated by an Evaluation Committee that will make a recommendation to the Board of Commissioners.
Review of Proposals - The Evaluation Committee will use a two-step method
- Step 1: Proposals must meet certain mandatory criteria in order to qualify for further evaluation. Any "no" answer to the first two questions will disqualify the proposal. A "yes" answer to the third question will require a written explanation and may disqualify the proposal.
  
  1. Is the firm properly licensed?
  2. Is the firm independent?
  3. Has disciplinary action been taken or pending against the law firm?
- Step 2: Proposals will be evaluated using the following technical criteria. Proposals should address each question.
  - Does the firm have a quality control program to help ensure adherence to high professional standards?
  - Does the firm subject itself to "Peer Review" in order to provide an independent review of its quality control policies and procedures?
  - Did the "Peer Review" cover the governmental auditing section and was "Peer Review" opinion attached?
  - Does the proposal fully respond to the needs of FMHA with regard to this audit?
  - Will the firm be able to meet FMHA's deadline? Does the number of hours indicated by the firm to complete the audit and other related tasks to fully complete the audit engagement appear reasonable?
  - Is the quality of the firm's professional personnel to be assigned to the engagement and quality of the firm's management support personnel available for technical consultation adequate?
  - Has the firm audited other Housing Authorities? If so, please list the Housing Authorities and indicate if we may contact them.
  - Does the proposal adequately describe in a clear concise, and understandable manner the work to be performed including sampling techniques and analytical procedures to be used?
  - Does the proposal demonstrate the firm's familiarity with general accepted accounting principles (GAAP) as they apply to Housing Authorities?
  - Have the firm's prior experiences with FMHA or another Housing Authority, if any, been acceptable?

Proposal Format and Requirements
In order to secure information in a form which will ensure that your proposal will be properly evaluated, you are asked to submit your proposal in the format listed below. Tabbed proposal formats are required and should be prepared in the following format:

Tab 1 - Executive Summary
The Executive Summary should include:
A brief non-technical overview of the Firm's business including prior experience in auditing housing authorities, non-profit organizations, and local governments from the audit team. Other items addressed in the Executive summary should include information as to the approach, timing, and work program of the engagement team, a brief description of your audit approach as to consideration of laws and regulations. a proposed work plan and time schedule addressing the scope of work, and an outline with the level of support your firm will require of the FMHA staff. Additionally, this summary should include any prior or pending disciplinary actions against the firm or audit team members. If there have been actions, disclose the results of those actions.
Tab 2 - HUD Form 5369-C and Form of Non-Collusive Affidavit
Certification and Representations of Offerors, Non-Construction Contracts. This form is attached hereto as Attachment 2 and 6 to this RFP. HUD form 5369-C form must be fully completed, executed where provided thereon and submitted under this tab as a part of the proposal submittal. Attachment 6 must be completed and notarized and submitted under this tab as part of the proposal submittal.
Tab 3 - Profile of the Firm Form
The Profile of the Firm. Form is attached hereto as Attachment 1 to this RFP document. This 3-page form must be fully completed, executed, and submitted under this tab as part of the proposal submittal.
Tab 4 - Proposed Services
The proposer shall place under this tab documentation further explaining the proposer's services and showing how the proposer intends to fulfill the Agency's requirements including, but not limited to:
- Demonstrated understanding of the agency's requirements.
- Quality of technical approach and the services proposed
- Technical capabilities (in terms of personnel) and the management plan (including the ability to provide the services proposed)
- Demonstrated, relevant experience in performing similar work and successful past performance (including meeting costs, schedules and performance requirements of contract work substantially similar to that required by this solicitation as verified by reference checks or other means)
- A summary of the firms quality assurance program
Tab 5 - Managerial Capacity/Financial Viability/Staffing Plan
The proposer entity must submit under this tab a concise description of its managerial and financial capacity to deliver the proposed services including brief professional resumes for the persons identified within areas (5) and (6) of Attachment 1 - Profile of the Firm Form. Such information shall include the proposer's organizational chart.
Tab 6 - Client Information
The propose shall submit a listing of current clients, including Public Housing Agencies for whom the proposer has performed similar or like services to those being proposed herein.
- The Client's Name
- The Clients contact name
- The client's telephone number and email address
- A brief description of scope of services and the dates the services were/are provided
Tab 7 - Total Proposed Costs
All proposers must complete Attachment 2, note there is a separate page for each of the three years.
Tab 8 - Equal Opportunity Certification
All proposers must complete this form as HUD form 92010 - Attachment 3.
Tab 9 - Section 3
All proposers much complete Certification for Section 3 Businesses and should include the fully completed and executed Section 3 Business Preference Certification Form attached hereto as Attachment 4 and any documentation required by that form.
Tab 10 - Other Information (Optional Item)
The proposers may include any other general information that the proposers believe is appropriate to assist the Agency in its evaluation.

Optional Tabs. If no information is to be placed under any of the above noted tabs (especially the "Optional" tabs), please place there under a statement such as "NO INFORMATION IS BEING PLACED UNDER THIS TAB" or "THIS TAB LEFT INTENTIONALLY BLANK" Do not eliminate of the tabs.

Contract Terms and Conditions

Contract Award

Contract Award Procedure: If a contract is awarded pursuant to this RFP, the following detailed procedures will be followed:
By completing, executing and submitting a proposal, the "proposer is thereby agreeing to abide by all terms and conditions pertaining to this RFP as issued by the Agency including the contract clauses already attached as Attachments. Accordingly, the Agency has no responsibility to conduct after the submittal deadline any negotiations pertaining to the contract clauses already published.
Contract Conditions: The following provisions are considered mandatory conditions of any contract award made by the Agency pursuant to this RFP.
Contract Form: The Agency will not execute a contract on the Contractor's form-contracts will only be executed on the Agency form and by submitting a proposal the Contractor agrees to do so (please note that the Agency reserves the right to amend this form as the Agency deems necessary).
Mandatory HUD Forms: Please note that the Agency has no legal right or ability to (and will not) at any time negotiate any clauses contained within ANY of the HUD forms included as a part of this RFP.
Assignment of Personnel: The Agency shall retain the right to demand and receive a change in personnel assigned to the work if the Agency believes that such change is in the best interest of the Agency and the completion of the contracted work.
Unauthorized Sub-Contracting Prohibited: The Contractor shall not assign any right, nor delegate any duty for the work proposed pursuant to this RFP (including, but not limited to, selling or transferring the contract) without the prior written consent of the Authority. Any purported assignment of interest or delegation of duty, without the prior written consent of the Authority shall be void and may result in the cancellation of the contract with the Agency, or may result in the full or partial forfeiture of funds paid to the Contractor as a result of the proposed contract; either as determined by the Authority.
Contract Period. The Agency anticipates that it will initially award a contract for the period of 3 years with the option, at the Agency's discretion, of 2 additional one-year option periods, for a total maximum contract period of 5 years.
No Negotiation of Proposed Fees after the Submittal Deadline: The Agency WILL NOT, after the submittal deadline, negotiate an increase to any costs or fees proposed prior to the submittal deadline; accordingly, proposers are strongly cautioned to submit a realistic price for each Pricing Item identified.
Payment terms: FMHA will make progress payments for the compensation for services, as included in the accepted proposal, up to fifty percent (50%) after the completion of field work, forty percent (40%) shall be payed after acceptance and approval by HUD-REAC and the remaining 10% will be paid after the presentation of the audit report to the Board of Commissioners.
Licensing and Insurance Requirements: Prior to award (but not as a part of the proposal submission) the Contractor will be required to provide:
Workers Compensation Insurance: An original certificate evidencing the proposer's current industrial (worker's compensation) insurance carrier and coverage amount (NOTE: Workers Compensation Insurance will be required of any Contractor that has employees other than just the owner working on-site to provide the services);
Professional Liability Insurance: An original certificate showing the proposer's professional liability and/or "errors and omissions" coverage (minimum of $1,000,000 each occurrence, general aggregate minimum limit of $1,000,000), with a commercially reasonable deductible (e.g. "commercially reasonable," meaning not greater than 1% of the "general aggregate minimum" of the policy, with a maximum deductible amount of $50,000)
Contract Service Standards: All work performed pursuant to this RFP must conform and comply with all applicable local, state, and federal codes, statutes, laws, and regulations.
Prompt Return of Contract Documents. Any and all documents required to complete the contract, including contract signature by the successful proposers, shall be provided to the Agency within 10 workdays of notification by the Agency.

Proposals must be received by April 23, 2026 at 4:30 p.m. EST. All proposals not received by this time will be considered late and will be returned. Submissions via fax will not be accepted. One email submission will be accepted.

Bidders Questions

Any technical questions concerning the request for proposal should be submitted in writing (by email) to:

Debbie Strickland, Director of Finance
Fayetteville Metropolitan Housing Authority
P.O. Drawer 2349
Fayetteville, NC 28302
Email: dstrickland@fmhanc.org

Such questions must be received by the date and time stipulated in the calendar of events. If necessary, written responses to these questions will be provided to all firms holding RFPs no later than April 9, 2026 4:30 PM EST.

Calendar of Events

Listed below are the important actions and dates/times by which the actions must be taken or completed. If FMHA finds it necessary to change any of these dates, it will be done by addendum. Addendum(s) issued in regards to this RFP will be posted on the FMHA's website. It is the responsibility of the Offeror to check the website for any/all addendum(s) issued.

March 9 - Issue Date
March 30, 2026 4:30 PM EST - Deadline for questions regarding RFP
April 9, 2026 4:30 PM EST - FMHA responses to questions
April 23, 2026 4:30 PM EST - Proposal submission deadline

Attachments

Attachment 1: Profile of Firm
Attachment 2: Certification and Representations of Offerors, Non-Construction Contracts, HUD form 5369-C
Attachment 3: Equal Opportunity Certification - HUD Form 92010
Attachment 4: Section 3 Business and Certification Form
Attachment 5: Total Proposed Costs
Attachment 6: Form of Non-Collusive Affidavit