a. Audit and Examination The Firm will perform an audit and examination of CEFA’s Fund as required by law. The audit will include an evaluation of CEFA’s internal controls in accordance with generally accepted auditing standards as set forth in Statements on Auditing Standards, published by the American Institute of Certified Public Accountants, and the SCO Minimum Audit Requirements and Reporting Guidelines for California Special Districts, which shall include at the minimum the following: 1) A disclosure of fees imposed on borrowers by or on behalf of CEFA’s Fund. 2) A disclosure of expenditures related to those fees made by or on behalf of CEFA’s Fund. 3) The dollar amount and nature of these fees and expenses. 4) A confirmation of the assets held by CEFA. 5) A disclosure of the amount of bonds authorized but unsold at the end of the time period covered by the audit. 6) A disclosure of the amount of bonds CEFA has issued during the period covered by the audit and the amount of bonds outstanding at the end of the time period covered by the audit. 7) Treat all information in a confidential manner with all recommendations to be stated only in the audit reports provided to CEFA for appropriate release by CEFA as required by law. b. Audit Report and Findings 1) The report shall be prepared in the format as outlined in the SCO’s minimum standards for conducting audits and reporting requirements. 2) The report shall include a statement of the scope of the audit and examination for the Fund; the period covered by the audit and examination; and a list of the financial statements included in the report. 3) The report shall include a statement of material audit findings and recommendations regarding the financial statements, internal control and accounting systems, and legality of actions for the Fund. 4) Audited financial statements in the report shall include a "Statement of Operations" (Income Statement), "Statement of Assets and Liabilities" (Balance Sheet), and a "Statement of Cash Flows” for the Fund. 5) The Audit report shall include a Management Letter. 6) The audit report shall include any other material information required by CEFA, SCO, or under the Government Code. 7) The audit will be for fiscal years 2024/2025, 2025/2026 and 2026/2027...
