Specifications include, but are not limited to: Audit Contract The audit contract may cover one, two or three fiscal years. Each year must be treated as a separate audit. The contract period shall not exceed three years. Audit contracts covering more than one year shall specify an audit fee for each year. The audit fee shall be inclusive of all expenses. Continuation beyond the initial fiscal year of the three-year contract will be at the discretion of the City of Central Falls. Any representations made by the audit firm with the submission will be relied upon and if proven to be false will be grounds for termination of the contract, if awarded. False representations will also be grounds for forfeiture of all payments under the contract. This will not limit the municipality from seeking any other legal or equitable remedies. Audit Standards The audit shall be conducted in accordance with generally accepted auditing standards established by the American Institute of Certified Public Accountants. The audit shall be conducted in accordance with the standards for financial audits set forth in Government Auditing Standards issued by the Comptroller General of the United States. The audit shall be conducted in accordance with the standards contained in the amended (July 1996) Single Audit Act of 1984 and the provisions of OMB Guidance 2 CFR part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform Guidance) - Subpart F – Audit Requirements. Audit Reports Draft copies of all audit report(s) and the management letter shall be submitted to the City’s Finance Director, prior to the exit conference so that there will be adequate time for review. Following the completion of the audit of the fiscal year’s financial statements, the auditor shall report on: The fair presentation of the financial statements in conformity with generally accepted accounting principles based on an audit performed in accordance with generally accepted auditing standards and Government Auditing Standards. The auditor shall also make reference to, but not opine on, required supplementary information consistent with reporting guidance in the applicable AICPA Audit Guide. Supplementary financial statements, schedules and information being fairly stated in all material respects in relation to the basic financial statements as a whole. The supplementary information shall include combining fund financial statements (and if applicable, General Fund combining financial statements), the Annual Supplemental Transparency Report (MTP2, including the reconciliations), and the Tax Collector’s Annual Report. If the supplementary schedule of expenditures of federal awards is issued with the financial statements, the auditor is to provide an "in-relation-to" opinion on that schedule, based on the auditing procedures applied during the audit of the financial statements. Internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. Reports required under trust agreements, loan agreements, etc., if any. Reports and summaries related to federal financial assistance (as appropriate in the circumstances) as required by OMB Guidance (the auditor should refer to applicable OMB guidance in effect and the applicable AICPA Audit Guide for reporting guidance). and a completed Form SF-SAC, “Data Collection Form for Reporting on Audits of State, Local Governments and Non-Profit Organizations” to be submitted in accordance with the current method of submission for Form SF-SAC and Single Audit reporting packages (per OMB public Notice), to the Federal Audit Clearinghouse Internet Data Entry System. If the supplementary schedule of expenditures of federal awards is issued separately from the financial statements, the auditor is to provide an "in-relation-to" opinion on that schedule, based on the auditing procedures applied during the audit of the financial statements. Other reports requested by the municipality and/or the Director of Revenue and/or the Auditor General or as required by the applicable section of the general laws.
