1. The audit firm will perform an audit of all funds of the City. The audit will be conducted in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller of the United States. 2. The City desires the auditor to prepare a ACFR in the future. The ACFR will be prepared in accordance with the latest Governmental Accounting Standards Board (GASB) pronouncements, as required. The cost of preparing ACFR should be separately presented in the cost proposal. 3. The audit firm will express an opinion asto the fair presentation of the basic financial statements of the City, in accordance with GASB, and applicable laws and regulations. The audit firm will also apply limited audit procedures to Management’s Discussion and Analysis (MD&A), and required supplementary information pertaining to the General Fund and each major fund of the City. The audit firm will provide the City with assistance in developing necessary charts and tables for the MD&A. 4. The audit firm will perform financial audits on and prepare financial reports for the Local Transportation Funds - Transit and Non-Transit, for submission to the Tulare County Association of Governments (TCAG). 5. The audit firm will be required to assist/train staff in development of year end entries to recognize pension and Other Post Employment benefit (OPEB) costs based on current actuarial reports. 6. The audit firm will review as part of the annual financial audit the City’s Gann Limit pursuant to Article 13B Section 1.5 of the State Constitution. 7. The audit firm will perform a single audit, if required, on the expenditures of federal grants, in accordance with OMB Circular A-133, and render the appropriate audit reports on Internal Control over Financial Reporting, based upon the audit of the City’s financial statements in accordance with Government Auditing Standards, and the appropriate reports on compliance with Requirements Applicable to each Major Program, Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards, required by OMB Circular A-133. The single audit report will include appropriate schedule of expenditures of federal awards, footnotes, findings, and questioned costs, including reportable conditions and material weaknesses, and follow up on prior audit findings, where required. The audit firm submits the report to the Federal Clearinghouse. 8. The audit firm will express an opinion on the City’s compliance with current governmental Generally Accepted Accounting Principles (GAAP); the audit firm shall also be required to provide assistance with the implementation of applicable GASB pronouncements not yet in effect, such as Statements 87 “Leases”. The costs for these services should be included in the base proposal price and contractual agreement.
