Specifications include, but are not limited to: 1. The scope of the audit shall be a financial statement audit of KET to be performed in accordance with auditing standards generally accepted in the United States of America; and the standards applicable to financial audits contained in Government Auditing Standards (GAGAS), issued by the United States General Accounting Office. This audit should include a determination as to whether KET’s federal expenditures have met the Single Audit threshold established by the Single Audit Act and the provisions of Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Not-For-Profit Organizations Receiving Federal Awards, and the performance of a single audit in accordance with these standards, if required. 2. To facilitate the compilation of the Commonwealth’s Comprehensive Annual Financial Report: • all statements of cash flows should be prepared in the direct method format, • all infrastructure should be recorded on the modified approach, and • because the audit of the Commonwealth’s CAFR is a group audit, component auditors must provide the APA, as the group auditor, information it has deemed necessary to meet relevant auditing standards for group audits. This includes information contained below in the section entitled “Required Auditor Correspondence with the APA”, as well as subsequent requests made directly from the APA to the component auditor. 3. The scope shall also include the completion of the closing package forms, which are submitted to the Finance and Administration Cabinet’s Reporting Team.