The Kentucky Association of Counties, Inc. (hereinafter “KACo”) requests proposals from qualified certified public accountants or certified public accounting firms to perform the annual audits of the consolidated financial statements of KACo and its wholly owned subsidiary, the Kentucky Association of Counties Insurance Agency, Inc. (hereinafter “KIA”), as required by KRS 65.312(5).

About the KACo

KACo is a 501(c)(3) tax exempt, non-profit Kentucky corporation organized in 1974 to, render technical, informational and other services to the county governments of Commonwealth of Kentucky for the improvement of county government and the general welfare of the people of Kentucky.  Working with its separate but affiliated entities, KACo provides services, products, resources and technical assistance to assist counties in matters of finance, risk management, insurance, technology, governance and other critical areas, enabling them to operate efficiently, transparently and in compliance with legal requirements.  KACo is managed by its Board of Directors and its Executive Committee and operates on a fiscal year beginning on July 1 and ending on the following June 30.

KIA is a for-profit Kentucky corporation and Kentucky licensed insurance agency organized in 1997.  KIA provides group health insurance and other employee benefit products through an agreement with its insurance broker for which KIA receives commissions and directly writes public official bonds on a commission basis through authorized insurers. KIA is managed by its Boad of Directors and operates on a fiscal year beginning on July 1 and ending on the following June 30.

In addition to KIA, KACo administers the insurance and financial programs of its four additional affiliate entities through contractual agreements with the affiliate’s governing boards. The affiliate entities pay KACo program administration and management fees for those services.

As reported on KACo’s audited financial statements for the fiscal year ended June 30, 2025, KACo and KIA had total combined assets of $31.4 million, total liabilities of $4.3 million and total net assets of $27.1 million as of June 30, 2025.  For the fiscal year ended June 30, 2025, the KACo and KIA had combined revenues of $11.3 million, including $7.4 million in program administration and management fees from the affiliate entities, total expenses of $9.6 million and net income of $1.7 million.  KACo’s most recent annual audit, for the fiscal year ending June 30, 2025, was performed by Cherry Bekaert LLP.

Proposed engagement term

The proposed engagement period shall be for four (4) fiscal years, commencing with the audit for KACo’s fiscal year ending June 30, 2026, with an option to renew for an additional four (4) fiscal years upon agreement of the parties. The performance of each audit shall be subject to the execution of an engagement letter executed by the parties.

The duties and responsibilities of the successful respondent shall, at the direction of KACo and subject to final agreement of the parties, include:

• Prepare an annual engagement letter between the successful respondent and KACo setting out the terms and conditions of the audit engagement for each fiscal year. The engagement letter shall specify that the successful respondent shall forward a copy of the audit report and management letters to the Kentucky Auditor of Public Accounts (hereinafter “the APA”) and that the APA shall have the right to review the work papers before and after the release of the audit as required by KRS 65.312(5)(a) and (b).
• Commence audit work as soon as practicable following completion of KACo’s fiscal year.
• Perform the audit in accordance with auditing standards generally accepted in the United States of America.
• Complete the audit work and submit a draft of the audit report by the date agreed upon by the parties in the annual engagement letter.
• Present the audit report at a meeting of the KACo Audit Committee.
• Issue the final audit report by the date agreed upon by the parties in the annual engagement letter.
• Provide consultation and advice regarding accounting issues to KACo’s representatives throughout the term of the engagement.

Responses to this solicitation shall include:

• Name and address of your firm, primary contact person and their telephone number;
• Brief history of your firm;
• Identify the persons who would have significant responsibilities for servicing the account, including the key person(s) who would be communicating with our organization, including detailed biographies of such persons;
• Firm qualifications and experience in providing similar services;
• Pricing methodology, including rates, fees and expense structure;
• Proposed engagement letters, contracts, licensing agreements and other agreements with the complete terms and conditions for the relationship;
• List of clients for which the firm provides similar services, including name, title, and telephone number of each reference; and
• Any additional information that you feel is relevant.

Miscellaneous

Each respondent must independently evaluate all information provided by KACo. KACo makes no representations or warranties regarding any information presented in this solicitation, or otherwise made available during this procurement process, and assumes no responsibility for conclusions or interpretations derived from such information. In addition, KACo will not be bound by or be responsible for any explanation or conclusions regarding this solicitation or any related documents other than those provided by an addendum issued by KACo. Respondents may not rely on any oral statement by KACo or its agents, advisors, or consultants. If a respondent identifies potential errors or omissions in this solicitation or any other related documents, the respondent should immediately notify KACo Chief Financial Officer Karen Y. Basham at (502) 223-7667 or karen.basham@kaco.org.

This solicitation does not constitute an offer by KACo. No binding contract, obligation to negotiate, or any other obligation shall be created on the part of KACo unless KACo and the successful respondent execute a written contract. No recommendations or conclusions from this solicitation process concerning the respondent shall constitute a right (property or otherwise) under the Constitution of the United States or under the Constitution, case law, or statutory law of Kentucky.

All elements of the response (including all statements, claims, declarations, prices, and specifications) shall be considered firm and irrevocable for purposes of future contract negotiations unless specifically waived in writing by KACo. The respondent chosen for award should be prepared to have its proposal and any relevant correspondence incorporated into the written contract, either in part or in its entirety, at KACo’s election.

KACo provides equal opportunity for all businesses and does not discriminate against any respondent regardless of race, color, religion, age, sex, and national origin or disability.

No advertising, sales promotion or other materials of any respondent or its agents or representatives may identify or reference KACo in any manner absent the prior written consent of KACo.

Respondents may change or withdraw a previously submitted proposal at any time prior to the proposal due date. Withdraw should be directed to Ms. Basham in writing.

Respondents or their authorized representatives must fully inform themselves as to all conditions, requirements and specifications of this solicitation before submitting proposals. Failure to do so will be at the respondent’s own risk.

Schedule and process

Responses shall be submitted by email to procurement@kaco.org and must be received no later than 4:00 p.m. EDT on Monday, March 9 2026, to be considered.  KACo anticipates that the award, if any, to the successful respondent will be made on or before Thursday, April 30, 2026, and all responses shall be valid through that date.

Additional information regarding this solicitation may be obtained by contacting Karen Y. Basham, KACo Chief Financial Officer, at (502) 223-7667 or karen.basham@kaco.org. 

KACo reserves the right to:

• Utilize additional information contained within any response;
• Waive irregularities in any response;
• Reject any or all responses; and
• Negotiate with any party regarding their response.

Solicitation posted Friday, February 27, 2026.