Engagement Description and Cycle Audit of State funded portion of the finances of the UD in accordance with 29 Del. C. §2906 (h) and 14 Del. C. §5109. Engagement Standards To meet the requirements of this RFP, the engagement must be performed in accordance with generally accepted auditing standards accepted in the United States as established by the American Institute of Certified Public Accountants (AICPA) and contained in Government Auditing Standards, issued by the Comptroller General of the United States. The Selected Firm must immediately notify the AOA regarding any known or potential fraud, waste, or abuse identified during the engagement, regardless of materiality. The course of action and additional procedures, if necessary, will be determined by the AOA. Failure to notify the AOA immediately about any identified known or potential fraud, waste, or abuse is considered contract non-compliance. Other Engagement Information The engagement letter must not have any contract terms or an offer to provide additional services. The engagement letter in no way modifies or adds conditions or terms to the contract and is not considered part of the contract with AOA. A Statements on Standards for Attestation Engagements (SSAE) 18 report performed on the State’s accounting and payroll systems is available for the Selected Firm to use during the engagement. The Selected Firm agrees it will not prepare the financial statements, note disclosures, or management discussion and analysis (MD&A). The Selected Firm should notify AOA immediately of any request to perform such services. The Selected Firm agrees it will not provide auditor’s reports (e.g., audit opinions) to the auditee for incorporation into its reporting packages. The Selected Firm must obtain the auditee-prepared report (e.g., financial statements), insert the Selected Firm’s opinion and signature, and provide the complete reporting package[footnoteRef:1] directly to AOA. [1: Financial reporting packages, for example, include, but are not limited to, the Independent Auditors’ Report,Management Discussion & Analysis (MD&A), financial statements, note disclosures, Required SupplementaryInformation (RSI), Supplementary Information (SI), and the Report on Internal Control over Financial Reporting,including findings, if applicable. All reports received must be in compliance with generally accepted governmentauditing standards (GAGAS). The firm must send each report in one, complete electronic file to AOA.Any management letter comments and communications with those charged with governance must also be providedto AOA. Any management letter comments and communications with those charged with governance must also be provided to AOA.] The selected Firm must provide to AOA all audit exceptions, whether verbal, observation, or finding, even if the Firm deems the exception to be inconsequential to the engagement. Following the completion of the engagement, the Selected Firm must provide a written reporting package in accordance with standards discussed in Section 4.2a. above. AOA will finalize and distribute copies of the reporting packages, with the exception of the management letter and any confidential information, to the appropriate officials. The Selected Firm is not to distribute or issue any work products, reporting packages, or findings without prior written consent from AOA. However, communicating exceptions to management in a timely manner is encouraged, along with discussion and in-depth review of the issue. Retention and Access to Engagement Documentation The Selected Firm shall maintain engagement documentation, reporting packages, records, documents, and other evidence pertaining to the workpapers and reports related to this engagement to the extent and in such detail as shall adequately reflect performance hereunder for a period of five (5) years from the completion of the engagement. Records involving any litigation-related matters shall be retained for one (1) year following the termination or final resolution of such litigation. The Selected Firm agrees to make such records available for inspection, audit, or reproduction to any authorized AOA representative in the performance of its duties under the contract. Upon written notice given to the Selected Firm, representatives of AOA or other duly authorized State or Federal agency may inspect, monitor, and/or evaluate the cost and billing records or other material relative to this contract. The cost of any contract audit disallowances resulting from the examination of the Selected Firm’s financial records will be borne by the Selected Firm. Reimbursement to AOA for disallowances shall be drawn from the Selected Firm’s own resources and not charged to contract cost or cost pools indirectly charging contract costs. Upon completion of each engagement, the Selected Firm agrees to provide an electronic copy of all support documents and workpapers related to this engagement to AOA, either in binder form suitable for upload into CCH ProSystem FX Engagement software application or in native form electronic documents when the CCH ProSystem FX Engagement binder is impractical.
