Specifications include, but are not limited to: 4.1Engagement Description and Cyclea.The proposer shall conduct an annual financial statement audit of both the Department of Natural Resources and Environmental Control (DNREC), Delaware Drinking Water State Revolving Loan Fund (DWSRF) and the Delaware Water Pollution Control Revolving Loan Fund, commonly known as the Clean Water State Revolving Loan Fund (CWSRF). Both funds’ fiscal year begins on July 1 and ends on June 30. 4.2Engagement Standardsa.To meet the requirements of this RFP, the engagement must be performed in accordance with the applicable standards established by the American Institute of Certified Public Accountants (AICPA) and Government Auditing Standards, issued by the Comptroller General of the United States. b.The Selected Firm must immediately notify OAOA 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 OAOA. Failure to notify OAOA immediately about any identified known or potential fraud, waste, or abuse is considered contract non-compliance.4.3Other Engagement Information a.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 OAOA.b.A Statements on Standards for Attestation Engagements (SSAE) 16 report performed on the State’s accounting and payroll systems is available for the Selected Firm to use during the engagement. c.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 OAOA immediately of any request to perform such services. d.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 mustobtain the auditee-prepared report (e.g., financial statements), insert the Selected Firm’s opinion and signature, and provide the complete reporting package1 directly to OAOA. e.OAOA reserves the right to review the Selected Firm’s engagement difference schedule throughout the engagement and any findings the Selected Firm deems inconsequential to the engagement. f.Following the completion of the engagement, the Selected Firm must provide a written reporting package in accordance with standards discussed in Section 4.2a. OAOA 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 OAOA. However, communicating exceptions to management in a timely manner is encouraged, along with discussion and in-depth review of the issue.
