Specifications include, but are not limited to: 1. The audit will encompass a financial and compliance examination of the Town’s basic financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town, as well as the related notes to the financial statements. The financial and compliance audit will cover federal, state, and local funding sources in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the following: • Government Auditing Standards issued by the U.S. Government Accountability Office. • Provisions of the Federal Single Audit Act of 1984 (as amended in 1996), if applicable. • Provisions of the U.S. Office of Management and Budget (OMB) Circular No. A-133, Audits of States, Local Governments, and Non-Profit Organizations, if applicable. • All other applicable laws and regulations. 2. The Auditor will be responsible for the preparation and printing of the basic financial statements, supplementary information, and compliance reports. An electronic copy of the audit documents will also be provided in a searchable Adobe PDF file format. The Auditor will submit a draft of the financial statements to be reviewed in detail by the Finance Director prior to publishing. 3. The audit shall result in the preparation of financial statements from the audited records of the Town with the Auditor’s opinion thereon. The Auditor’s opinion shall be expressed in the report and include reasons for modifying the opinion, disclaiming the opinion, or rendering an adverse opinion. 4. The Auditor shall perform the audit and prepare all reports pertaining to the Single Audit Act of 1984 and the Single Audit Act Amendments of 1996, including submission through the federal clearing house portal. 5. The Auditor will be responsible for the preparation of the MS-535 Annual Report of the Town as required by the State of New Hampshire Department of Revenue Administration (DRA). Preparation shall be submitted to Town staff in time to allow ample review and corrections prior to the DRA’s deadline for setting the Town’s tax rate. 6. The Auditor shall be prepared to advise the Town of Salem staff on how to best implement both current and proposed GASB Statements. In addition, the auditor is also expected to provide informal advice and consultation throughout the year on matters relating to accounting and financial reporting. This would not necessarily include any task that entails significant research or a formal report. 7. Should circumstances arise during the audit that require significant additional work to be performed in excess of the amounts set forth in the contract, additional costs shall be negotiated prior to commencement of the work and an amended contract will be submitted for approval. 8. In planning and performing the audit, the Auditor shall consider the Town of Salem’s system of internal control as a basis for designing auditing procedures and for the purpose of expressing an opinion on the financial statements. The Auditor shall communicate in a written report titled Independent Auditor’s Report on 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 any material weaknesses in internal controls found during the audit. A material weakness shall be defined as a significant deficiency in internal controls, or combination of significant deficiencies that results in more than a remote likelihood that a misstatement of the City’s financial statements will not be prevented or detected by the City. Said report shall include written responses by the Director of Finance and Administration to the Auditor’s comments and recommendations. 9. Non-material conditions and/or other matters that come to the attention of the Auditor related to opportunities for strengthening internal controls and operating efficiencies shall be reported in a management letter with prior discussion to the Director of Finance & Administration. The management letter shall include written responses by the Director of Finance & Administration to the Auditor’s comments and recommendations. 10. As guided by AICPA Auditing Standards Board Statement on Auditing Standard No. 117, the Auditor should exercise due professional care in understanding the type of engagement and also requiring that if during the audit the Auditor becomes aware that the Town is subject to audit requirements which may not be encompassed in the terms of the engagement he or she should communicate to management and the audit committee or others with equivalent authority and responsibility that the audit may not satisfy the requirements. In addition to completing the annual audit, the auditing firm shall be available during normal business hours, throughout the contract period, to provide the Town with advice and guidance on financial accounting and reporting issues. The auditing firm will also be expected to keep the Town staff informed of the requirements of all new accounting and financial reporting pronouncements of the Governmental Accounting Standards board and the United States Office of management and budget and provide sufficient training the Town staff for them to effectively meet their responsibilities under all such new requirements. 11. It is expected that the successful proposer will designate a senior staff member, at the manager or partner level, who will be responsible for responding to Town phone calls and e-mail communications within one or two business days.
