Specifications include, but are not limited to: 1. Content of Audited Financial Statements –Audit Reports A. There will be issued one set of financial statements that report both the Town and School Department’s individual funds and in combination. B. Draft copies of all audit reports and the management letter shall be submitted to the Treasurer/Finance Director and School Business Manager prior to exit conferences so that there will be adequate time for review before the conference is held. C. Following the completion of the audit of the fiscal year’s financial statements, the auditor shall report on: 1. The fair presentation of the basic 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. 2. supplementary financial statements, schedules and information being fairly stated in all material respects in relation to the basic financial statements as a whole. a. the supplementary information shall combining fund financial statements (and if applicable, general Fund combining financial statements), include the Annual Supplemental Transparency Report (MTP2, including the reconciliations), and the Tax Collector’s Annual Report. b. 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. 3. 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 4. Reports required under trust agreements, loan agreements, etc.
