The contractor shall provide auditing services of the state revolving fund for the Department of Natural Resources, Financial Assistance Center in accordance with the provisions and requirements stated herein and to the sole satisfaction of the state agency. The contractor shall conduct an independent financial and compliance audit of financial transactions and activities of the Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF). The CWSRF audit and DWSRF audit must include a review, verification and testing of the state agency’s accounting records, procedures, and processes in order to determine the program complies with the terms and conditions in the federal grant agreement with EPA and to fulfill the requirements set forth in 40 CFR 35.3165 for CWSRF and 40 CFR 35.3570 for DWSRF and including the following: a. Knowledgeably express an opinion on the fair presentation of each State Revolving Funds’ (SRF) financial statements in conformity with generally accepted accounting principles. b. Issue a report on internal controls related to the financial statements of each SRF; and c. Express an opinion on the state agency’s compliance, in all material respects, with laws and regulations and provisions of each SRF capitalization grant programs and other Federal and State laws, as applicable.
