A. Financial audits – The independent auditor will examine all funds of the agencies in accordance with auditing standards generally accepted in the United States of America; the standards for financial audits contained in Government Auditing Standards (GAS) issued by the Comptroller General of the United States; the provisions of the OMB Circular A-133, Audits of States, Local Governments and NonProfit Organizations; and the Specifications for Audits of Counties, Cities and Towns issued by the Commonwealth of Virginia’s Auditor of Public Accounts (APA). The examination shall result in the preparation of an annual financial report for the agency with the auditor’s opinion included therein. If the opinion is not unqualified, the auditor shall furnish to the agency and County their reasons for disclaiming an opinion, issuing a qualified opinion or rendering an adverse opinion. Financial reports are to be prepared on the accrual basis of accounting in accordance with generally accepted accounting principles and meet the reporting requirements found in Statement of Financial Accounting Standards (SFAS) No. 117, “Financial Statements of Not-for-Profit Organizations”. B. Management letter – The auditor shall issue to the applicable agency and the County a report of recommendations to strengthen internal controls of the agency. C. IRS Form 990 – Return of Organization Exempt from Income Tax -- The auditor shall prepare IRS Form 990 and submit the form to the Internal Revenue Service by the applicable deadline for the agency, the 15th day of the fifth month after the agency’s accounting period ends. D. Exit conference with volunteer agent President and Treasurer – The auditor, with County staff if needed, shall attend a final exit conference meeting with all volunteer agencies to review audit statements (in general) and answer questions regarding management letter comments.
