Specifications include, but are not limited to: A. The auditing services performed by the auditor shall allow the firm to: • Express an opinion on whether the financial statements of the City present fairly the financial operations in conformity with Generally Accepted Accounting Principles (GAAP); • Express an opinion on whether the City has complied with laws and regulations that may have a material effect on the audited financial statements in accordance with Government Auditing Standards; • Report on internal controls related to the financial statements and major programs and issue an opinion on compliance with laws, regulations and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133; and • Issue a management letter. B. A minimum standard for audits of Alaska Municipal Corporations, adopted by the Secretary of State and approved by the State Board of Accountancy, shall govern the audit. C. The financial and compliance audit shall apply industry standards for auditing, and shall be made in accordance with all of the following: • Generally accepted governmental procedures as prescribed in the American Institute of CPAs (AICPA) Industry Audit Guide – Audits of State and Local Government Units and in Governmental Accounting, Auditing, and Financial Reporting (GAAFR); • Generally accepted auditing standards, Government auditing standards, and Alaska minimum standards; • The Single Audit Act and OMB A-133: and • Applicable laws and regulations. D. Recommendations based upon the auditing firm’s review of the adequacy of internal accounting controls and other audit investigations shall be made a part of a formal management report separate from the financial audit. Such associated costs shall be included in the audit fee. The discussion of these recommendations shall be with the City Administrator and Finance Director. Recommendations to management, opinion, comments or recommendations relating to internal controls, accounting systems, compliance with laws, rules and regulations, or any other matters that come to the attention of the auditor during the course of the audit must be discussed with appropriate City officials prior to publication. E. The auditor shall meet with the Finance Director prior to the commencement of each audit to discuss the planned approach to the audit work and to provide a list of schedules to be prepared by City personnel prior to the beginning of field work. An exit conference is required of the auditing firm on completion of all field work so as to inform the City Administrator and Finance Director of pertinent findings. A summary presentation of the audit findings shall be made to the City Council.
