HomeMy WebLinkAbout(2019, 02/12) - F-15 - AmendedF-15
EXTERNAL FINANCIAL AND COMPLIANCE REPORTING DISCLOSURE &
ANNUAL AUDITS
PURPOSE
To establish City policy regarding external financial reporting, financial disclosure
filings and contracting for annual audit services by an external accounting firm.
POLICY
Accounting standards boards and regulatory agencies set the minimum standards and
disclosure requirements for annual financial reports and continuing disclosure
requirements associated with municipal securities. The City places a high value on
transparency and full disclosure in all matters concerning the City's financial position
and results of operations. To this end, the City endeavors to make superior disclosure
in the City's Comprehensive Annual Financial Report and Continuing Disclosure filings
by going above and beyond the minimum reporting requirements including certificate
of achievement programs and voluntary event disclosure filings.
The City prepares its financial statements in conformance with Generally Accepted
Accounting Principles (GAAP). Responsibility for the accuracy and completeness of the
financial statements rests with the City. However, the City retains the services of an
external accounting firm to audit the financial statements on an annual basis. The
primary point of contact for the auditor is the Finance Director, but the auditors will
have direct access to the City Manager, City Attorney, Finance Committee or City
Council on any matters they deem appropriate.
The financial statement audit and compliance audits will be conducted in accordance
with the United States Generally Accepted Auditing Standards (GAAS), standards
applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller of the United States, and standards set by regulatory agencies if
applicable.
After soliciting and receiving written proposals from qualified independent accounting
firms, the Finance Director shall submit a recommendation to the Finance Committee
and City Council. Under the premise that multiyear audit agreements are more cost
efficient, allow for greater continuity and reduce audit disruption, the City may engage
auditors in multi-year contracts, but the term of each contract shall not exceed five
years. Generally, the City will request proposals for audit services every five years.
However, the Finance Committee may make an exception to the competitive proposal
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requirement if extraordinary circumstances exist and a change in auditors may not be
prudent. If the City Council is satisfied with the performance of the auditors, the
independent accountant firm may submit additional proposals through a competitive
selection process, but it is the City's policy to require mandatory audit firm rotation
after ten years of consecutive service.
After audit results have been communicated to the City, the Finance Department is then
responsible for responding to all findings within six months to the Finance Committee
and appropriate regulatory agencies, if applicable.
Adopted - January 24,1994
Amended - February 27,1995
Corrected - February 26, 1996
Amended - September 13, 2005
Amended - September 27, 2011
Amended - February 12, 2019
Formerly A-14
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