HomeMy WebLinkAbout(1995, 02/27) - F-15 - Amended0
ANNUAL 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 Finance 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 three year period.
The audit contract may be renewed for an additional three 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 Finance Department is then
responsible for responding to all findings within six months to the City Council and
appropriate regulatory agencies.
Adopted - January 24,1994
Formerly A -14
Amended - February 27, 1995
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