The annual audit shall consist of preparation and examination of the governmental activities, each major fund, and the aggregate remaining fund information (collectively referred to as “basic financial statements”). The financial statements will be presented in accordance with the financial reporting model described in the current GASB Statements. The annual audit shall consist of an examination of the basic financial statements conducted in accordance with generally accepted auditing standards and Government Auditing Standards. In addition, the annual audit is to be based on the additional requirements of the Single Audit Act Amendments of 1996, OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the regulations prescribed by the Illinois State Board of Education. The District maintains the following major funds that should be included in the audit examination: Educational, Operations and Maintenance, Transportation, Social Security/ Municipal Retirement, Bond and Interest, Site and Construction, Working Cash, Tort and Fire Prevention and Life Safety. Other funds to be included in the audit examination: Student Activity. The audits for Orland School District 135, shall include a review of the system of internal controls to ensure that there is effective control over revenue, expenditures, assets and liabilities, and a proper accounting of resources, liabilities and accounting operations. The audits shall also consist of tests of compliance with requirements of applicable state laws and regulations of material effect on the financial statements. The examination shall be sufficient in scope so as to render an opinion on the fairness of the basic financial statements in accordance with generally accepted accounting principles for state and local governments. All audit work must be performed by audit staff of the proposing firm; no audit work is to be performed by subcontractors. The District and the Auditor will enter into a letter agreement for up to five years as presented, however, the contract will be renewable annually. The agreement shall also provide for early termination by the District, if for any reason, the District is dissatisfied with the professional services rendered. The audit is to include an examination of the governmental activities, each major fund, and the aggregate remaining fund information, and the examination shall be made in accordance with generally accepted auditing standards promulgated by the American Institute of Certified Public Accountants. The auditor shall also perform tests of the compliance with the OMB Circular A-133 as required by the Office of Management and Budget, and render a separate opinion of the financial statements and tests of compliance in accordance with OMB-133. The customary independent auditor’s report expressing an opinion of the financial statements shall meet requirements of the American Institute of Certified Public Accountants and the Illinois Program Accounting Manual for Local Education Agencies of the Illinois State Board of Education. The auditor shall review and assist the Internal Auditor in preparing the following printed and bound reports: ● Comprehensive Annual Financial Report for the District to include governmental activities, each major fund, and the aggregate remaining fund information. Supplementary schedules consistent with prior years reports. Report should ensure compliance with current GASB Statements. ● Annual Financial Report (ISBE 50-35) (AFR) for the District to be prepared for submission to the Illinois State Board of Education and a copy of the Annual Financial Report (ISBE 50-35) on the accrual basis of accounting including required by ISBE the schedule of Expenditures of Federal Awards and related documentation, along with the Consolidated Year-End Financial Report (CYEFR). ● Annual Federal Financial Compliance Section Report (Single Audit), OMB Circular A-133 for the District consistent with prior year’s report. ● Data Collection Form (SF-SAC) and initial filing consistent with prior year’s report ● Management Letter for the District ● Student Activity Report consistent with prior year’s report ● A report of all Adjusting Journal Entries required ● Other reports, as may be required to be submitted, to the Illinois State Board of Education and any other regulatory agencies under the Single Audit Act Amendments of 1996. The auditor is also expected to consult with District staff as requested for preparation of the MD&A, Transmittal Letter, and other additional schedules and be available from time to time to answer questions as they arise. Tentative drafts of all reports shall be submitted to the Director of Finance/CSBO prior to final preparation. A meeting shall be held to review these tentative drafts within ten days after their receipt. The final audit reports shall be completed and submitted by the October Board of Education meetings unless by mutual agreement a later date is determined.
