The CITY proposes to enter into a contract for audit services with an independent Certified Public Accounting Firm. The scope of work shall also include consultations by telephone throughout the year, as needed, for accounting and financial presentation related items. The duration of the contract will be for three years with the option of the CITY to renew for additional years. Under no circumstance shall the CITY contract for more than six years with the same auditor or with another auditor who employees the same staff as utilized by the previous auditor. The audit of the City’s financial statements shall be performed in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, the provisions of Oregon Revised Statutes, as specified in Oregon Administrative Rules 162-010-0000 through 162-010-0320 of the Minimum Standards for Audits of Oregon Municipal Corporations, as well as any other applicable audit guidelines needed for compliance and reporting, and perform tests necessary to provide the following opinions: City of Yachats – Request for Proposal, Audit Services Page 2 1. An opinion that CITY’s general purpose financial statements fairly represent CITY’s financial condition and results of operations in accordance with Generally Accepted Accounting Principles (GAAP). 2. An opinion that individual grants were examined for accuracy and that CITY has complied with material terms of federal and state grant contracts. 3. A study and evaluation of the internal control systems including applicable internal administration controls used in administering CITY’s federal financial assistance programs and report any material weaknesses. 4. An opinion regarding CITY’s OAA, OPI, USDA, Title XIX Medicaid, ODOT, EPA, FMHA and any other funds’ financial reports and their conformance to grantor accounting and reporting requirements. 5. Audit comments and disclosures required to municipal corporations under Oregon law. 6. Any other opinions needed for compliance and reporting. 7. As may be necessary, a management letter to CITY’s City Council identifying weaknesses or breakdowns in internal controls that could cause a material misstatement of CITY’s financial conditions, or that could unnecessarily expose CITY to risk or loss. 8. A management letter to CITY’s City Manager identifying any recommendations that may improve financial operations but are not included in the management letter to CITY’s City Council as necessary. 9. Recommendations about changes needed in the financial reporting system for the adoption of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments. 10.Present audit to CITY’s City Council.
