Specifications include, but are not limited to: The financial statements are prepared by the City’s Finance Department to conform fully to generally accepted accounting principles (GAAP) and to be in full compliance with the requirements of the Governmental Accounting Standards Board (GASB) and/or Financial Accounting Standards Board (FASB) as appropriate. The auditor’s opinion will be directed toward the fairness of presentation of the financial statements in accordance with GAAP. The auditor will also provide compliance reports as required under federal and state law, if applicable. The audit of the financial statements will be in accordance with: • The minimum standards for audits of Oregon Municipal Corporations as adopted by the Oregon Secretary of State and approved by the Board of Accountancy. • Generally accepted auditing standards. • Government auditing standards. • 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). General Activities The Auditor, as part of this engagement, will conduct the following activities utilizing the appropriate standards noted above: • Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether caused by error or fraud and conformity with GAAP. • Perform tests of documentary evidence supporting the transactions recorded in the accounts, which may include tests of the physical existence of inventories and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. • Perform tests of the City’s compliance with applicable laws and regulations and provisions of contracts and agreements. • Provide general accounting counsel. The City is responsible for closing the books, preparing trial balances, reconciling bank accounts, and performing other management functions. Yearend account combinations and all financial statements, including footnotes, shall be drafted by the City. The Audit firm is expected to be a subject matter expert and provide advice and preferred templates for new footnote disclosure requirements, new accounting standards, and preferred formats for common or standard footnotes when appropriate, as well as make recommendations on processes. City management will then review the footnote template drafts for completeness and correctness and will assume responsibility for the financial statements. • Prepare a report on compliance with specific requirements applicable to major federal financial assistance programs, if required. • Review the City’s internal accounting controls to the extent necessary to evaluate the system as required by applicable standards. • If needed, issue the appropriate reports to make recommendations for improvement. • Make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the appropriate party: the City Manager, Finance Director, and/or City Council.
