HomeMy WebLinkAbout(2005, 09/13) - F-15 - AmendedANNUAL AUDIT
PURPOSE
F -15
To establish City policy regarding contracting for annual audit services from an external
accounting firm.
POLICY
Consistent with the practices of other cities, as well as larger corporations in the private
sector, the City Council retains the services of an external accounting firm to audit the
City's financial procedures and records on an annual basis. The primary staff point of
contact for this contract and the day to day work done by the auditors is the
Administrative Services Director, but the auditors will have direct access to the City
Manager or City Council on any matters they deem appropriate.
The financial statement audits will be conducted in accordance with generally accepted
auditing standards as promulgated by the American Institute of Certified Public
Accountants in their audit guide, Audits of State and Local Governmental Units, and
will accordingly include such tests of the accounting records and such other auditing
procedures. The accounting and reporting principles adopted by the Governmental
Accounting Standards Board will be applied.
The compliance audit, the Single Audit, of the City will be performed as a single audit
as defined in Office of Management and Budget (OMB) Circular A -128 Audits of State
and Local Governments. The audit will encompass all Federal funds administered by
the City. Furthermore, it will be conducted in accordance with the provisions of:
Government Auditing Standards (1988) promulgated by the U.S. General Accounting
Office, which pertain to financial and compliance audits; Compliance Supplement for
Single Audits of State and Local Governments.
After soliciting and receiving written proposals from interested accounting firms, the
City will normally award an audit contract for a four -year period. The audit contract
may be renewed for an additional four -year period, without going through a new
invitation for bid procedure, with the same firm, if the City Council is satisfied with the
performance of the auditors and authorizes the extension. Only one such extension is
authorized without going through formal bid procedure.
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F -15 •
After audit results have been communicated to the City, the Administrative Services
Department is then responsible for responding to all findings within six months to the
City Council and appropriate regulatory agencies.
Adopted - January 24,1994
Amended - February 27,1995
Corrected - February 26,1996
Amended - September 13, 2005
Formerly A -14
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