LCUAS members weigh $12,000 local bid, $6,000 out‑of‑state offer as Jan. 28 audit deadline looms
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Summary
Board members reviewed competing audit bids — a roughly $12,000 local estimate and a $6,000 out‑of‑state offer — and debated whether an out‑of‑state firm could meet the nonprofit’s bylaws requiring a Texas‑licensed auditor. The finance committee may be asked to act if proposals fall under a preset cap.
At a meeting that began at 4:42 p.m., LCUAS members discussed contracting an independent auditor to meet a Jan. 28 audit deadline and weighed a roughly $12,000 local estimate against a lower, $6,000 bid from a firm based outside Texas.
A board member said the $12,000 figure came from Benjamin Delagaza, describing him as a local CPA with nonprofit experience, and that another firm had offered to do the work for about $6,000. "They offered 6,000," one member said while noting the lower bidder was not based in Texas and would seek permission to practice here.
The group also discussed a potential candidate, Patrick Hall of Corpus, who had been given the RFP and was expected to deliver a formal proposal. Supporters said Hall’s experience auditing municipal and governmental entities could provide useful guidance establishing financial protocols for the organization.
On the question of whether an out‑of‑state firm could legally perform the attestation services, one board member summarized state guidance: "Texas has adopted statutory CPA mobility and practice privileged positions that permit qualified out of state CPA firms and CPAs to perform attestation services in Texas," and said such an audit report would be valid in Texas if statutory conditions were met.
At the same time, another member read the organization’s bylaws, section 7, which says the board "shall have an annual audit prepared by an independent auditor who is duly licensed or certified as a public accountant in the state of Texas." That reading prompted officials to flag a potential mismatch between the state’s mobility rules and the nonprofit’s existing bylaw language.
Members discussed operational details the low bidder might need, such as insurance and a rush fee that had been included in the lower estimate, and noted a typical audit engagement could take about six weeks to complete once started. Several board members suggested setting a dollar cap — figures of $8,000 to $10,000 were mentioned in discussion — so the finance committee could approve a vendor promptly if a proposal fell within that limit, avoiding the need for a special full board meeting.
No final contractor selection was made at the meeting. Members discussed options including (a) authorizing the finance committee to accept a proposal below a preapproved cap and report to the board, (b) waiting a few days for additional proposals (including the expected Hall submission), or (c) calling a special meeting with three business days’ notice if needed. A member also said a CPA had advised that documenting engagement activity and showing the audit had been started could be sufficient for meeting the organization’s timing requirements and for requesting an extension if necessary.
The meeting recessed after a motion to take a break was moved, seconded and approved. The board did not make a final decision on contracting an auditor during the session; members said they would return after the break to continue consideration and await any further proposals.
