A. Auditing Standards To Be Followed To meet the requirements of this request for proposals, the audit shall 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, issued by the Comptroller General of the United States , the provisions of the Single Audit Act and the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The Audit also shall be performed in accordance with the Minnesota Legal Compliance Audit Guide for Local Governments and Minnesota Statutes. B. Reports to Be Issued The auditor shall issue the following reports at the completion of the audit: 1. Issue an opinion letter on the City’s basic financial statements in conformity with accounting principals generally accepted in the United States of America. 2. Issue a report on the consideration of the City’s internal controls over financial reporting. 3. Issue a report on compliance with applicable laws and regulations. 4. Communicate in a letter to management any reportable conditions found during the audit. 5. If a single audit is needed, issue an auditor’s report on the internal control over compliance for major federal programs, an opinion on compliance with requirements applicable to each major federal program, and a summary of auditor’s results and a schedule of findings and questioned costs, if any, required by OMB. 6. Present opinions, procedures and overview of the City’s financial condition to the City Council. The auditor shall perform the following non-audit services: 1. Propose journal entries necessary to present the financial statements in accordance with the regulatory basis of accounting. 2. Assist with the drafting of the City’s financial statements in accordance with the regulatory basis of accounting. 3. Assist with the preparation of the City Financial Reporting Form. C. Presentation The auditor shall make a separate presentation to the City Council upon completion of the audit. The auditor shall inform the City Clerk/Treasurer of each of the following: 1. The auditor’s responsibility under generally accepted auditing standards 2. Significant accounting policies 3. Management judgments and accounting estimates 4. Significant audit adjustments 5. Other information in documents containing audited financial statements 6. Disagreements with management 7. Management consultation with other accountants 8. Major issues discussed with management prior to retention 9. Difficulties encountered in performing the audit The auditor shall provide recommendations for the improvement of financial management and condition of the city.
