Provide the Comprehensive Annual Financial Report and the Report for Compliance for Federal Grant Programs for the periods ending June 30, 2025, 2026, and 2027. 2. Financial Statements Prior to the commencement of field work for the year-end audit all closing and adjusting entries will be completed by the District and the financial statements prepared by the District, to the extent mutually agreed upon by both parties. In quoting fees, the District would like to receive two “base” quotes: Base quote #1 would be where the staff of the District completes the financial statements in their entirety, which would include the MD&A, the Basic Financial Statements (Statement of Net Assets/Statement of Activities), Fund Financial Statements (including reconciliations), Notes to Financial Statements, Combining and Individual Fund Statements (as deemed necessary), and the Schedule of Federal Financial Assistance (SEFA). Base quote #2 would be the same as Base Quote #1, except the auditor would prepare the reconciliations within the Fund Financial Statements (from fund level to government-wide statements) and the Basic Financial Statements (Statement of Net Assets/Statement of Activities). 3. Reporting The auditors will report the following information to the Superintendent of Schools and the Shelby Public Schools Board of Education via a Personnel, Policy, and Finance committee meeting (if requested) and a board presentation at the September board meeting: A. Internal accounting control based solely on a study and evaluation made as part of the audit of the general-purpose financial statements. B. Compliance with laws and regulations that may have a material effect on the financial statements. 5 C. Supplementary schedule of our federal financial assistance program. D. Accounting and administrative internal controls used in administering federal financial assistance programs. E. Compliance with laws and regulations applicable to federal financial assistance programs identifying all findings of noncompliance and questioned costs. 4. Taxes Shelby Public Schools District receives taxes from (9) municipalities; Benona Township, Claybanks Township, Ferry Township, Golden Township, Grant Township, Hart Township, Newfield Township, Otto Township, and Shelby Township. The district levies only in the winter months. The 2023 tax levy included 18 mills for operational purposes and 3.64 mills for debt fund purposes. 5. Bond Audit The District passed a bond in May 2021 and will collect proceeds in FY21 and FY23. It is anticipated that projects related to these bond issues will continue through 2026. It is expected that the auditor will audit these funds as applicable. 6. Work Papers The working papers shall be retained for at least three (3) years or as stated in the State Retention Guidelines, whichever is longer. The working papers will be available for examination by authorized representatives of the cognizant federal audit agency, the State of Michigan Department of Education, the General Accounting Office and the school district. 7. Other Requirements A personal presentation of the final report to the Board of Education by an audit manager or partner of the firm is required. In addition, assistance will be rendered in correcting errors and procedural shortcomings identified during the audit. The auditor will be responsible for providing guidance and counsel throughout the years as requested. 8. Audit Plan The auditor will be required to use a comprehensive audit plan and, to the extent permissible, must be willing to review this plan with the district. The plan should cover the study and evaluation of internal controls and the test of records to the extent necessary by the degree of such reliance. It is assumed that many of the tests will be conducted by a sampling of the records maintained in the files. It is understood that the auditor is responsible for the auditing procedures that in his or her professional judgment must consider the materiality of the audit area, the relation to specific standards and the relation to expressing an opinion on the statements as a whole. District officers should be consulted when such judgments result in a disproportionate amount of effort being expended on a particular subject.
