1) As part of the Commonwealth’s reporting entity, please be advised that the financial statements must be prepared in accordance with generally accepted accounting principles. Please be aware that the following new governmental accounting standards are in effect for FY 2025: # GASB Statement No. 101, Compensated Absences # GASB Statement No. 102, Certain Risk Disclosures 2) The scope of the audit shall be a financial statement audit of Council on Postsecondary Education 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 Comptroller General of the United States. This audit should include a determination as to whether Council on Postsecondary Education’s federal expenditures have met the Single Audit threshold established by the Single Audit Act and the provisions of 2 CFR 200 Uniform Administrative Requirements, Cost Principles, And Audit Requirements. The scope shall include the Auditor’s assistance with closing out prior year books and preparation of the trail balance for the current year activity. Management will be responsible for approving the closing entries and supplying journal entries for the current year. For Federal Awards, and the performance of a single audit in accordance with these standards, if required. To facilitate the compilation of the Commonwealth’s ACFR: • All statements of cash flows should be prepared in the direct method format. • All infrastructure should be recorded on the modified approach; and • Component auditors must provide the APA, as the group auditor of the Commonwealth’s ACFR, 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 an audit of the closing package forms, which are submitted to the Finance and Administration Cabinet’s Reporting Team and a reconciliation of the information reported on the forms to the audited financial statements. The closing package is not required to be presented as supplementary information in the report on the financial statements for FY2025. 4) The scope shall also include updated subsequent events procedures for the period from the date of your auditor’s report on the Council’s financial statements until December 11, 2025 for consideration of any additional disclosures warranted for the ACFR. The Auditor shall detail the application of subsequent events audit procedures and report the results of those procedures in a letter that shall be issued to the APA no later than close of business, December 11, 2025. 5) The Finance and Administration Cabinet (FAC) intends to issue the Commonwealth’s Comprehensive Annual Financial Report by December 16, 2025. If this does not occur, it may be necessary for the Auditor to extend the subsequent events procedures through a later date. The APA office will contact CPE or the Auditor if this extension of procedures becomes necessary. This contract should provide for this contingency and address whether and how the auditor will be compensated for this additional work.
