HomeMy WebLinkAbout2014 RFP Financial Audit: Package for External AuditorsCITY OF BOZEMAN
REQUEST FOR PROPOSALS
FOR
ANNUAL INDEPENDENT FINANCIAL AUDIT
The City of Bozeman is soliciting proposals for the annual independent audit of the City’s financial
records.
For documents, please contact:
Stacy Ulmen
City Clerk
P.O. Box 1230
Bozeman, MT 59771-1230
(406) 582-2321
sulmen@bozeman.net
or find them at www.bozeman.net under the “Business” tab and the RFP/BID drop down menu.
The original plus six copies of the responses will be received by the City Clerk, 121 North Rouse
Avenue, Suite 202 Bozeman, MT 59715, until 5:00 PM, MST, On Friday, April 25th 2014. The City
of Bozeman and its agents reserve the right to reject any or all proposals and to waive any
formality and technicality.
Discrimination in the performance of any agreement awarded under this RFP on the basis of
race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived
sexual orientation, gender identity or disability is prohibited. This prohibition shall apply to the
hiring and treatment of the awarded entity’s employees and to all subcontracts.
As such, each entity submitting under this notice shall include a provision wherein the
submitting entity, or entities, affirms in writing it will not discriminate on the basis of race,
color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived
sexual orientation, gender identity or disability and which also recognizes the eventual contract
will contain a provision prohibiting discrimination as described above and that this prohibition
on discrimination shall apply to the hiring and treatment of the submitting entity’s employees
and to all subcontracts.
Failure to comply with the above shall be cause for the City to deem the submittal non-
responsive.
The City of Bozeman is required to be an Equal Opportunity Employer
DATED at Bozeman, Montana, this 7th day of April, 2014
Stacy Ulmen, CMC
City Clerk
Legal Ad
Publish: Sunday, April 13, 2014
Sunday, April 20, 2014
CITY OF BOZEMAN
REQUEST FOR PROPOSALS
FOR
ANNUAL INDEPENDENT FINANCIAL AUDIT
PART I
A. Requirements for Submission of City Proposals.
1. RFP deadline:
a. 5:00 p.m. April 25th, 2014
b. Mail to: City Clerk
Stacy Ulmen
P.O. Box 1230
Bozeman, MT 59771-1230
The outer envelope in which proposals are offered
should be marked "PROPOSAL FOR EXTERNAL AUDIT OF CITY
OF BOZEMAN."
2. Original plus six (6) copies of sealed proposals are
required, not to be opened until after the final
submission date and hour noted above.
3. To be eligible to qualify as external auditor, the
following minimum requirements must be met:
a. The firm of certified public accountants must be
of widely recognized ability and standing, and
licensed to practice in Montana.
b. The CPA firm must be a member of the American
Institute of Certified Public Accountants and must
adhere to the AICPA professional standards of
audit practices and conduct.
c. The firm must have audited similar governmental
units and must have the capability of assisting
the City in retaining its Certificate of
Achievement for Excellence in Financial Reporting
awarded by the Government Finance Officers'
Association.
d. The audit examination shall result in financial
statements prepared in conformity with generally
accepted accounting principles for local
governments. The resulting financial statements
will conform to all applicable GASB Statements,
including GASB Statement #34.
e. The firm must include a statement of the all-
inclusive fee for which the work will be done for
fiscal years 2014 and 2015 (separate costs for
each year). A statement of the estimated total
number of hours required for each year for audit
staff is also required.
f. The CPA firm must satisfy the Government Auditing
Standards educational requirements issued by the
GAO.
g. The auditor must demonstrate compliance with the
CPE requirements for auditing and governmental
accounting.
4. The Auditor Selection Committee will schedule oral
presentations by selected firms if deemed necessary.
5. The auditor's report will be submitted to the City by
the first Monday in December, after the close of the
audited fiscal year. The audit work can be commenced
by the successful audit firm at any time after the
contract is awarded.
6. The audit contract will be between the audit firm, the
City, and the Department of Commerce. A copy of the
latest standard audit contract is attached. (see
ATTACHMENT 1) Auditors should be fully aware of any
changes contemplated by the Commerce Department.
Auditors must also comply with the terms of this RFP.
B. Scope of the Audit.
1. Periods to be Audited:
July 1, 2013 through June 30, 2014 - Fiscal Year 2014
July 1, 2014 through June 30, 2015 - Fiscal Year 2015
The City reserves the right to negotiate with the
successful proposer for two additional fiscal years to
be audited.
2. Standards and Guidelines - The audit shall be conducted
in accordance with:
-- Generally Accepted Auditing Standards (GAAS)
-- Government Auditing Standards issued by the
Comptroller General of the U.S. 2003 Revision (GAO
Standards).
-- AICPA Audit & Accounting Guide-Audits of State and
Local Governmental Units (ASLGU).
3. Audit Review - The audit should not be limited to a
specific review of the financial transactions and
statements of the City. It should include an overall
review of the City's financial and accounting systems
and procedures.
4. Specified "Deliverable" - The "deliverables" required
for this audit shall be provided within the time frame
specified in Item 5 of Part I. A. They are listed
below.
a. All certifications and audit reports required by
the Federal government for Federal monies the City
has received, including the Schedule of
Expenditures of Federal Awards (SEFA). This
includes but not limited to Federal Transit
Authority (FTA) funds, American Recovery and
Reinvestment Act (ARRA) funds, Save America’s
Treasures (SAT) Grant funds, and Staffing for
Adequate Fire and Emergency Response (SAFER) grant
funds.
b. All certifications and audit reports required by
the State for compliance with State Law regarding
the financial reporting of municipalities;
including the report on compliance with building
inspection codes as prescribed by Montana statute.
5. The auditors shall familiarize themselves with and
comply with the provisions of any and all Federal,
State and City orders, statutes, ordinances, Charter,
bond covenants, and administrative rules and
regulations which may pertain to the work required in
the engagement.
6. Audit Conferences:
-- The CPA firm will have an entrance conference with
the audit committee.
-- The CPA firm will meet with the Director &
Controller for the purpose of reviewing its audit
findings and recommendations prior to the issuance
of management letters, certifications, or reports.
-- The CPA firm will present the final reports to the
audit committee and the City Commission.
7. Scheduling and Procedures - The CPA firm shall develop
a time schedule and procedures to be observed during
the audit and prior to the beginning of each audit.
The schedule and procedures will be developed in
conjunction with the City and shall be subject to
approval by the City. The schedule will be approved
prior to the audit work commencing. The City’s goal is
to complete a preliminary close of its accounting
system by the 2nd week of September. Other than
interim audit work and confirmations, the auditors
should not expect to perform general field work prior
to this date.
8. The audit will meet the requirements of the Single
Audit Act of 1984 (31 U.S.C. 7501-7507), as amended by
the Single Audit Act Amendments of 1996 (P.L. 104-156)
and the Federal Office of Management and Budget's (OMB)
Circular A-133, when applicable.
C. City Responsibilities
1. The City will provide:
a. Draft Financial Statements. (See ATTACHMENT 2)
b. Such City-wide schedules as needed for closing.
c. Bank reconciliations, vouchers in support of
accounts payable, such checks, etc. as needed for
examination.
d. Typing services for confirmation letters.
2. The City will provide access to all files and records
of the City departments.
3. The City staff will not prepare auditor workpapers or
data entry, other than what may be agreed upon under #4
below.
4. At the City's option, the City would make a staff
member available to the auditor to assist in the audit.
The purpose is to allow one of the City's staff members
to gain a better understanding of auditing theory that
would be useful in their job.
5. The City will provide to the auditor an electronic
version of the financial statements and notes to the
financial statements received from the prior auditor.
D. Auditor Responsibilities
1. The auditors will:
a. Prepare the entire CAFR. This will include
preparation of the government-wide and fund level
statements, the combining and combined financial
statements, notes to the financial statements, and
schedule of Federal Financial Assistance. The
city will provide updated information for the
statistical section, MD&A, and Letter of
Transmittal. The final audit report prepared by
the auditor will include all required information
to receive the Certificate of Achievement for
Excellence in Financial Reporting. The management
letter will be issued separately.
b. Submit a draft copy of the financial statements to
the city at least 2 weeks prior to the final
report date to enable city officials to review the
financial statements for possible changes.
c. In addition to the auditors’ normal internal
control review procedures, the auditors will
perform an in-depth review of the city's internal
control procedures and internal audits of one area
each year as selected by the city.
d. Provide the city with 25 copies of the final audit
reports and 20 copies of the building inspection
report and the management letter. This does not
include copies that the auditors must submit to
the state.
2. If there is a substantial change in the firm's audit
staff (i.e. audit manager, managing audit partner,
etc.) prior to or during the audit, the city reserves
the right to void the contract.
3. Provide to the city electronic media containing the
information and format used by the auditor to prepare
the CAFR (i.e. word processing or spreadsheets
containing the same information as the CAFR). The city
may provide this same information to a subsequent
auditor for their use.
E. Information to be Requested from the Proposer
Section 1:
To provide for a uniform review process and to obtain
comparability, it is required that proposals be organized in
the manner specified below.
1. Title Page
Show the RFP subject, the name of the firm, address,
telephone number, name of the contact person, and the
date.
2. Letter of Transmittal
Limit to two pages.
a. Briefly state the proposer's understanding of the
work to be done and make a positive commitment to
perform the work within the time period.
b. Give the names of the persons who will be
authorized to make representations for the
proposer, their titles, addresses and telephone
numbers.
3. Profile of the Proposer
a. State whether the firm is local, regional, or
national.
b. Give the location of the office from which the
work is to be done and the number of partners,
managers, supervisors, seniors, and other
professional staff employed at that office.
c. Describe the range of activities performed by the
local office such as audit and accounting, tax,
and/or management advisory services.
d. The auditors must comply with the continuing
professional education requirements and the
external quality control review requirements as
set out in Government Auditing Standards, as
established by the Comptroller General of the
United States.
4. Summary of the Proposer's Qualifications
a. Identify the partners, managers and supervisors
who will work on the audit. Resumes for each
supervisory person to be assigned to the audit
should be included. The resumes may be included
as an appendix.
b. Describe local office auditing experience similar
to the type of audit requested and give the names
and telephone numbers of client officials who can
be contacted as references.
5. Scope Section
Describe your firm's approach to completing the scope
of work as described above, demonstrating an
understanding of the task and level of effort required.
6. Review Letter
The auditors will submit a copy of their most recent
peer review letter.
7. Additional Data
Since data not specifically requested must not be
included in the foregoing proposal sections, give any
additional information considered essential to the
proposal in this section. If there is no additional
information to present, state in this section, "There
is no additional information we wish to present".
Section 2 - Compensation
Estimate the total hours and the resulting all-inclusive
maximum fee for the requested work, separately stated for
fiscal years 2014 and 2015. An appendix stating the hourly
rates to be charged for each staff classification is
required. The auditor will not be reimbursed for any travel,
per diem, photo copying, telephone bills, or other related
expenses of the audit unless incurred at the specific request
of the City.
PART II
Evaluation of Proposals
Proposals will be evaluated using a predetermined method to
ascertain which proposer best meets the needs of the City.
In some circumstances, proposals may be so similar in quality
that oral interviews may have to be arranged to assist in
making the final selection. Evaluation considerations will
include the following.
1. Qualifications of the Firm:
a. Relevant auditing experience (governmental),
including experience in the implementation of GASB
Statement #34.
b. Reputation of firm (based on references).
c. Qualifications of personnel to be assigned
(experience, training, communicative skills.)
2. Technical Approach:
a. Ability to meet or exceed performance
expectations.
b. Ability to communicate audit plans in an
organized, clear and convincing manner.
3. Fees:
a. Estimated cost as compared with other bids.
The award to the audit firm will also conform to the
Administrative Rules of Montana, section 2.4.407, which
states:
2.4.407 CRITERIA FOR THE SELECTION OF THE INDEPENDENT
AUDITOR (1) In selecting an independent auditor to perform
an audit under 2-7-503, MCA, a local government entity shall
consider the following criteria:
(a) listing on department's roster of independent auditors
authorized to conduct local government audits;
(b) independence, as defined by applicable auditing
standards;
(c) demonstrated understanding of the work to be performed;
(d) technical experience of the independent auditor in
conducting similar types of local government entity audits;
(e) qualifications of staff to be assigned to the audit;
(f) work history of the independent auditor; and
(g) the proposed audit fee.
(2) The department may require the local government entity
to demonstrate that the independent auditor selected is
qualified to conduct the audit based on an evaluation of:
(a) the criteria established in (1) above;
(b) any additional information requested by and used by the
local government entity in selecting the independent auditor;
and
(c) the results of oral interviews of independent auditors
conducted by the local government entity, if appropriate.
Part III
Reservation of Rights
The issuance of this RFP and the receipt of proposals by the City
shall not constitute an agreement or representation by the City
that a contract for the work will actually be entered into by the
City.
The City reserves the right to issue written notice of changes to
the submittal process should the City determines in its sole and
absolute discretion that such changes are necessary or desirable.
In addition and notwithstanding any other provision of this RFP,
the City reserves the right to:
a. Waive any immaterial defect or informality in a submittal;
b. Extend or otherwise revise the submittal date;
c. Reject any or all submissions or portions thereof;
d. Select proposals that are in the best interest of the City
considering experience of the firm, workload of the firm,
and other qualifications evaluation criteria as well as any
other factor the City determines in its sole discretion to
be reasonable;
e. Negotiate terms and conditions of a contract;
f. Reissue a new or revised RFP or cancel this RFP; and
g. Request additional information from one or more respondents.
Employment Restriction and Indemnity
No person who is an owner, officer, employee, contractor or
consultant of a respondent shall be an officer or employee of the
City. No rights of the City’s retirement or personnel rules
accrue to a respondent, its officers, employees, contractors, or
consultants. Respondents shall have the responsibility of all
salaries, wages, bonuses, retirement, withholdings, worker’s
compensation and occupational disease compensation, insurance,
unemployment compensation other benefits and taxes and premiums
appurtenant thereto concerning its officers, employees,
contractors, and consultants. Each respondent shall save and hold
the City harmless with respect to any and all claims for payment,
compensation, salary, wages, bonuses, retirement, withholdings,
worker’s compensation and occupational disease compensation,
insurance, unemployment compensation other benefits and taxes and
premiums in any way related to each respondent’s officers,
employees, contractors and consultants.
Submittal Rejection/Right to Disqualify
Submittal of terms, condition and/or agreements may result in
rejection if such terms, conditions, or agreements are deemed
unacceptable by the City in its sole discretion. The City
reserves the right to disqualify any respondent who fails to
provide information or data specifically requested herein or who
provides materially inaccurate or misleading information or data
or who attempts to influence the selection process outside the
procedures established herein. The City reserves the right to
disqualify any respondent on the basis of any real or apparent
conflict of interest. This disqualification is at the sole
discretion of the City.
Discrimination
Discrimination in the performance of any agreement awarded under
this RFP on the basis of race, color, religion, creed, sex, age,
marital status, national origin, or actual or perceived sexual
orientation, gender identity or disability is prohibited. This
prohibition shall apply to the hiring and treatment of the
awarded entity’s employees and to all subcontracts.
As such, each entity submitting under this notice shall include a
provision wherein the submitting entity, or entities, affirms in
writing it will not discriminate on the basis of race, color,
religion, creed, sex, age, marital status, national origin, or
because of actual or perceived sexual orientation, gender
identity or disability and which also recognizes the eventual
contract will contain a provision prohibiting discrimination as
described above and that this prohibition on discrimination shall
apply to the hiring and treatment of the submitting entity’s
employees and to all subcontracts.
Failure to comply with the above shall be cause for the City to
deem the submittal non-responsive.
Accessibility
Upon reasonable notice, the City will provide assistance for
those persons with sensory impairments. For further information
please contact the ADA Coordinator James Goehrung at 406-582-
3232.
Governing Law
This RFP and any disputes arising hereunder or under any future
agreement for the sale and purchase of shares, interests, or
rights shall be governed hereafter and construed and enforced in
accordance with the laws of the State of Montana, without
reference to principles of choice or conflicts of laws.
Miscellaneous
No conversations or agreements with any officer, employee, or
agent of the City shall affect or modify any term of this RFP.
Oral communications or any written/email communication between
any person and the designated contact City staff shall not be
considered binding.
Staff Contact for Additional Information: Questions regarding
this Request For Proposals may be directed to Brian LaMeres at
blameres@bozeman.net or (406)582-2335
FORM/SAC01 Page 1 of 12 10/11
DEPARTMENT OF ADMINISTRATION
LOCAL GOVERNMENT SERVICES BUREAU
STANDARD AUDIT CONTRACT
THIS CONTRACT is made this day of , , by and between
Certified or Licensed Public Accountant
("Contractor"),
Governmental Entity
("Entity"),
and the Montana Department of Administration, Local Government Services Bureau, ("State"), PO Box
200547, Helena, MT 59620-0547 acting under the authority of Title 2, Chapter 7, Part 5, of the Montana Code
Annotated.
1. State Approval: This contract is not effective with respect to any party until it is approved and signed
by the State, as required by Section 2-7-506(3), MCA. The Contractor may not begin any audit work
until the State gives this approval. If the Contractor begins work before the State has approved and signed
the contract and the State subsequently does not approve and sign the contract, the Contractor is not entitled to
receive any compensation for the work performed.
2. Audit Period and Payment: This contract covers the following audit period(s):
, 20 to , 20 .
A. The Entity shall pay the Contractor for the audit work on the basis of time and necessary out-of-pocket
expenses, which will not exceed:
$ for initial (or sole) audit covering / / to / / .
$ for subsequent audit covering / / to / / .
$ for subsequent audit covering / / to / / .
The Entity shall pay the fees listed in Appendices A, B & C, as applicable, which are attached hereto
and incorporated by reference.
B. If the cost of any subsequent audit is not agreed upon at the time this contract is executed, the
Contractor and the Entity shall negotiate the cost at a later date. The results of this negotiation will be
set forth in the Appendices and made a part of this contract. The Contractor shall provide the State and
the Entity with a copy of the appropriate Appendices.
C. The contract payments do not include the cost of additional work that may be required if the Contractor
discovers a defalcation or material irregularity. Any change in the scope of the audit services to be
provided under this contract requires a contract amendment.
FORM/SAC01 Page 2 of 12 10/11
2. continued:
D. The Contractor may submit interim bills to the Entity each month, based upon the estimated percentage
of contract completion. The Entity may retain 10 percent of each of these estimates until the Contractor
has delivered the final audit report, at which time the Entity shall release the amount retained.
3. Audit Scope: The Contractor shall conduct a financial statement audit of the Entity as follows:
A. The Contractor shall conduct the audit in accordance with (i) generally accepted auditing standards
adopted by the American Institute of Certified Public Accountants and (ii) the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. The objective of the audit is the expression of the Contractor’s opinion on the Entity’s
financial statements. The Contractor shall obtain reasonable rather than absolute assurance about
whether the financial statements are free of material misstatement, whether caused by error or fraud.
Accordingly, a material misstatement may remain undetected. Also, the audit is not designed to detect
error or fraud that is immaterial to the financial statements. If the Contractor’s opinion on the Entity’s
financial statements is other than unqualified, the Contractor shall fully discuss the reasons with the
Entity in advance of issuing a report. If, for any reason, the Contractor is unable to complete the audit or
is unable to form or has not formed an opinion, the Contractor may decline to express an opinion or
decline to issue a report as a result of the engagement.
B. The Contractor shall include tests of internal control over financial reporting, but the audit is not
designed to provide an opinion on internal control or to identify significant deficiencies. The
Contractor, however, shall make the Entity aware, in writing, of any significant deficiencies that come
to the Contractor’s attention.
C. The Contractor shall include the following tests of compliance and other matters as required by
Government Auditing Standards. These tests, however, will not be designed to provide an opinion on
such compliance. The Contractor shall determine whether:
(1) the Entity has complied with all appropriate statutes and regulations, as required by Section 2-7-
502, MCA;
(2) the Entity has complied with the provisions of each of its revenue bond ordinances and indenture
agreements;
(3) if the audit is of a county, city or town, money is or has been retained in a local charge for services
fund contrary to the requirements of Sections 17-2-301 through 17-2-303, MCA, as required by
Section 17-2-302, MCA. The Contractor shall report any findings of noncompliance with the
provisions of these statutes, regardless of materiality; and
(4) if the audit is of a county or consolidated city/county government, the Entity has complied with
state laws relating to receipts and disbursements of agency funds maintained by the Entity, as
required by Section 2-7-505, MCA.
D. When applicable, the audit must meet all requirements of the Federal Single Audit Act of 1984, as
amended by the Single Audit Act Amendments of 1996 and OMB Circular A-133.
E. The audit scope with regard to federal financial assistance for each fiscal year covered by this audit
contract must be as specified in Appendices A, B and C.
FORM/SAC01 Page 3 of 12 10/11
3. continued:
F. Except as provided below, for purposes of determining the scope of the audit, the Entity is considered the
financial reporting entity as defined by the Governmental Accounting Standards Board. This provision
does not preclude the Entity from engaging a different audit firm for the audit of a segment, fund or
component unit of the Entity. However, both the Entity and Contractor shall notify the State whenever the
Entity elects to engage a different audit firm for the audit of a segment, fund or governmental component
unit. Such additional audit must be contracted for on the State’s Standard Audit Contract, and the audit
firm shall be on the Roster of Independent Auditors authorized to conduct audits of Montana local
governments that is maintained by the State.
If this contract is for an audit of a segment, fund, or governmental component unit of the primary
government, the Entity is considered to be the segment, fund or component unit.
G. Any school district audit must also include auditing procedures sufficient to provide an opinion as to
whether the following supplemental information is fairly stated in relation to the basic financial
statements:
(1) the school district's enrollment for the fiscal year or years being audited as reported to the Office of
Public Instruction in the Fall and Spring enrollment reports; and
(2) when applicable, the extracurricular funds for pupil functions.
H. If the Entity is a school district or associated cooperative, the Contractor shall contact the State Office of
Public Instruction and the county superintendent of schools before or during the audit of the Entity. The
Contractor shall determine whether those offices are aware of potential financial or legal compliance
problems relating to the Entity that could affect the scope of the audit.
I. The Contractor shall immediately notify the Entity and the State in writing of any material irregularities
it discovers. If the Entity is a school district or special education cooperative, the Contractor shall also
immediately notify the State Office of Public Instruction in writing.
J. The Contractor shall provide the Entity with a copy of its most recent external peer review report and
any letter of comment, and any subsequent peer review reports and letters of comment received during
the contract period.
K. The Contractor shall notify the Entity of all proposed audit adjustments and, if the Entity concurs, shall
obtain written acceptance of these proposed adjustments. The State reserves the right to request
documentation of these proposed and accepted audit adjustments.
4. Entity’s Responsibilities: The Entity shall be responsible for:
A. its basic financial statements, including note disclosures;
B. all supplementary information required by GASB and by provisions of this contract;
C. establishing and maintaining effective internal control over financial reporting, including internal
controls related to the prevention and detection of fraud;
D. ensuring that it complies with the laws and regulations applicable to its activities;
FORM/SAC01 Page 4 of 12 10/11
4. continued:
E. making all financial records and related information available to the Contractor;
F. the schedule of expenditures of federal awards required for audits conducted under OMB Circular A-
133;
G. approving all proposed audit adjustments before posting, if the Entity concurs with the proposed
adjustments;
H. adjusting the financial statements and accounting records to correct material misstatements and to agree
with the audited financial statements; and
I. providing the Contractor, at the conclusion of the audit engagement, with a letter that confirms certain
representations made during the audit, including an affirmation that the effects of any uncorrected
misstatements aggregated by the auditor during the current engagement and pertaining to the latest
period presented are immaterial, both individually and in the aggregate, to the financial statements taken
as a whole.
5. Dates for Annual Financial Report or Trial Balance of Accounts: The Entity shall prepare its annual
financial report or a trial balance of accounts no later than the dates specified in Appendices A, B and C. If
the Entity is unable to prepare its annual financial report or trial balance by the date specified in the
Appendices, the Entity shall notify the Contractor and the State in writing prior to the specified dates.
6. Beginning the Audit: The Contractor shall begin the audit field work based on the schedule established in
Appendices A, B and C. Under Section 2-7-503(3)(a), MCA, all audits must commence within nine months
from the close of the last fiscal year of the audit period.
7. Completion of Audit: The Contractor shall deliver the audit report to the Entity and the State, based on the
schedule established in Appendices A, B and C. If the Contractor cannot deliver the audit report to the Entity
and the State on the date specified in the Appendices, the Contractor shall notify the Entity and the State in
writing of that fact, and the reason(s) therefore. Under Section 2-7-503(3)(a), MCA, all audits must be
completed and the reports issued within one year from the close of the last fiscal year covered by the audit. If
the audit is conducted in accordance with the provisions of OMB Circular A-133, the Contractor shall also
complete the audit and issue the audit report within the time period required by that Circular, unless a longer
period has been agreed to in advance by the federal cognizant or oversight agency for audit. If the Entity has
requested and received an extension of the A-133 due date from a federal agency, the Entity shall submit a
copy of the approved extension to the State.
8. Audit Presentation: The final audit report must contain basic financial statements and required supplementary
information consistent with financial reporting standards in effect for the year or years being audited, as
established by the Governmental Accounting Standards Board. In addition, other supplementary information
required by provisions within this contract and by OMB Circular A-133 must also be included, if applicable.
A. The final audit report must also contain any other financial statements and supporting schedules and
information as agreed upon by the Entity and Contractor.
B. The financial statements presented must be in accordance with the financial reporting standards in effect
for the year or years being audited, as described above. If the accounting records or other circumstances
do not permit financial statements to comply with these requirements, the Contractor shall notify the
FORM/SAC01 Page 5 of 12 10/11
8. continued:
State of those conditions and describe the financial statements that will be presented. The applicable
auditor’s reports must also be modified as required to reflect a departure from generally accepted
accounting principles.
C. If the audit is of a school district with separate elementary and high school district general funds, the
general funds must be combined as a single major fund. All other funds must be separately considered
for major fund criteria.
D. If the audit is a biennial audit covering two years, the Contractor shall present complete financial
statements as specified above for each year covered by the audit. However, note disclosures for both
fiscal years may be in one set of notes, with separate fiscal year disclosures as necessary. The two years
must be presented under one audit report cover and opined upon in one Independent Auditor’s Report.
9. Auditor’s Reports: All audit reports must contain the following auditor's reports, which must comply with
applicable professional standards in effect for the fiscal year or years being audited:
A. an independent auditor's report on the financial statements of the Entity;
B. a report on internal control over financial reporting and on compliance and other matters based on an
audit of financial statements performed in accordance with Government Auditing Standards. If
applicable, this report must include information about fraud, illegal acts, significant violations of
provisions of contracts or grant agreements, and significant abuse, or indications of these acts.
C. a report disclosing any lack of compliance with State statutes, rules, regulations, or ordinances that
would not have a material effect on the financial statements, but of which the Contractor becomes aware
during the course of the audit. This report must be referred to in the report required in 9.B. above. This
report may be combined with other reports if appropriate, or the findings may be included in a
management letter. If included in a management letter, that letter must be included as a part of, or
accompanying, the audit report.
D. a report on any supplemental schedules or information presented, if any such schedules or information
are presented in the audit report. This report may be given in a supplemental information paragraph of
the auditor’s report on the financial statements (9.A. above), or in a separate report. For the following
supplemental information, the Contractor shall report on whether the information is fairly stated, in all
material respects, “in relation to” the financial statements as a whole, unless the condition of the
financial records do not allow the auditor to render such an opinion:
Supplemental schedule of school district enrollment required in paragraph 11.A;
Supplemental schedule of school district extracurricular fund financial activities required in
paragraph 11B; and
Supplemental schedule of expenditures of federal awards required by OMB circular A-133
and in paragraph 10.A.
E. a report disclosing the action taken by the Entity to correct any deficiencies or implement any
recommendations contained in the prior audit report. This report must be in a format that specifically
identifies, by title or summary, each deficiency or recommendation contained in the prior audit report
and the action taken by the Entity on each such deficiency or recommendation.
F. If the Contractor includes audit findings in the reports referenced in 9.B. and 9.C. above or in a
FORM/SAC01 Page 6 of 12 10/11
9. continued:
management letter, the views of Entity officials and their planned corrective actions must also be
included, as required by Government Auditing Standards, if they are available at the time the Contractor
files copies of the audit report with the State. If the views and planned corrective actions are not
available at that time, the Contractor shall so indicate in the reports.
10. Single Audits: All audit reports for single audits done in accordance with OMB Circular A-133 must also
contain the following:
A. a schedule of expenditures of federal awards. As required by OMB Circular A-133, the schedule must:
(i) list individual federal programs by federal agency. For federal programs included in a cluster
of programs, list individual federal programs within a cluster of programs;
(ii) for federal awards received as a subrecipient, include the name of the pass-through entity and
identifying number assigned by the pass-through entity;
(iii) provide total federal awards expended for each individual federal program and the CFDA
number or other identifying number when the CFDA information is not available;
(iv) include notes that describe the significant accounting policies used in preparing the schedule;
(v) to the extent practical, for pass-through entities identification in the schedule of the total
amount provided to subrecipients from each federal program; and
(vi) in either the schedule or a note to the schedule, the value of the federal awards expended in
the form of non-cash assistance, the amount of insurance in effect during the year, and loans
or loan guarantees outstanding at year end. While not required, it is preferable to present this
information in the schedule.
B. a report on the schedule of expenditures of federal awards. This report may be combined with other
reports as provided by OMB Circular A-133 and professional standards. This report must comply with
applicable professional standards in effect for the fiscal year or years being audited.
C. a report on compliance with requirements that could have a direct and material effect on each major
program and on internal control over compliance in accordance with OMB Circular A-133. This report
must refer to the separate schedule of findings and questioned costs described in paragraph 10.D. of the
contract. This report must comply with applicable professional standards in effect for the fiscal year or
years being audited.
D. a schedule of findings and questioned costs which must include the information required by OMB
Circular A-133.
E. the corrective action plan required by OMB Circular A-133, if that plan is available at the time the
Contractor files copies of the audit report with the State. This corrective action plan may be combined
with the Entity’s planned corrective actions related to findings reported in accordance with Government
Auditing Standards, as provided in paragraph 9.F., above.
11. School Districts: School district audit reports must also include the following as supplemental
FORM/SAC01 Page 7 of 12 10/11
11. continued:
information/schedules:
A. a schedule of the district's enrollment as reported to the Office of Public Instruction for the fiscal year or
years being audited. The schedule must contain the enrollment both as reported in the Fall and Spring
enrollment reports and as documented by the school district's enrollment records; and
B. a detailed schedule of extracurricular fund financial activities.
12. Written Report to Entity: The Contractor shall render a single, written report for the Entity audited. The
report must include, or be accompanied by, all written reports and letters discussing findings and
recommendations from the Contractor to the Entity, including but not limited to the reports and
schedules referred to in paragraphs 9 and 10 above as well as any management letters that include
findings and recommendations.
13. Exit Interview: Before submitting the final audit report, the Contractor shall hold an exit review conference
in which the audit results are discussed with those charged with governance and appropriate Entity officials
and employees. The Contractor shall ensure that all members of the governing body and key members
of management are notified of this exit conference. The Contractor further agrees that before submitting
the final report, it will not discuss the audit findings with anyone other than the Entity or the State. However,
once the Contractor delivers the final audit report, the report is deemed to be a public record.
14. Report Distribution: The Contractor and Entity shall file copies of the audit report as specified below:
A. The Contractor shall provide the Entity with the number of copies of the audit report specified in
Appendices A, B and C and the cost of those copies is included in the total price for the engagement as
set out in paragraph 2.A., above, and in the Appendices. The Contractor shall submit one of these copies
to the attorney for the Entity.
B. Upon request by the Entity, the Contractor shall provide additional copies of the audit report at a price
per copy agreed upon by the Entity and Contractor.
C. The Contractor shall provide the State with four copies of each audit report at no charge. These copies
must be sent to the State at the same time the Contractor delivers the final audit report to the
Entity and must include any management letters that include findings and recommendations. A
letter of transmittal must accompany the State's copies, advising the State of the date of the exit
conference, the date the final report was delivered to the Entity, the date of the audit report, the actual
number of hours spent by the Contractor in the conduct of the audit, the total audit fees billed the Entity,
whether the audit was conducted in accordance with the provisions of OMB Circular A-133, and whether
there were any findings or opinion qualifications in the audit report, and, if so, whether the entity’s
corrective action plan or response was included as part of or submitted with the audit report.
D. If the Entity is a school district or associated cooperative, the Contractor shall provide copies of the audit
report to the Office of Public Instruction, the county superintendent of schools, and the county attorney.
E. If the Entity is a city or town fire department relief association disability and pension fund, the
Contractor shall provide one copy of the audit report to the city or town clerk.
F. If the audit is a single audit conducted in accordance with the provisions of OMB Circular A-133, the
FORM/SAC01 Page 8 of 12 10/11
14. continued:
Entity shall provide copies of the reporting package defined in OMB Circular A-133 and the data
collection form to the federal clearinghouse designated by OMB. In addition, the Entity shall provide
either a copy of the reporting package, or the alternative written notification as described by OMB
Circular A-133 to all federal, state and other granting and pass-through agencies as required by Circular
A-133.
15. Entity Response: If not included in the audit report as provided in paragraphs 9.F. and 10.E., within 30 days
after receiving the audit report, the Entity shall notify the State in writing as to what action it plans to take to
correct any deficiencies or implement any recommendations identified or contained in the audit report, as
required by Section 2-7-515, MCA, and ARM 2.4.409. This notification must also address any findings
and recommendations contained in management letters, which are considered a part of the audit report
as prescribed in paragraph 12. If the audit is a single audit conducted in accordance with OMB Circular A-
133, this corrective action plan must also meet the requirements of Circular A-133 and contain all information
required by that Circular.
16. Entity’s Attorney: If requested by the State, the attorney for the Entity shall report to the State on the actions
taken or the proceedings instituted or to be instituted relating to violations of law and nonperformance of duty
as required by Section 2-7-515(4), MCA. The attorney shall report to the State within 30 days after receiving
the request.
17. Certification of Auditor Independence: The Contractor certifies that, as required by generally accepted
government auditing standards, it and its principals and employees are independent in all matters with respect
to this engagement. This contract shall not include non-audit services, and the Contractor shall neither arrange
for nor accept non-auditing work with the Entity which could in any way impair the Contractor's independence
in violation of professional standards. If required by the State, the Contractor shall document that
independence has been maintained in both fact and appearance as required by professional auditing standards.
18. Prime Contractor: The Contractor is the prime contractor and is responsible, in total, for all work of any
subcontractors. The Contractor shall obtain the written approval of the Entity and the State before
engaging correspondent Contractors, consultants, or subcontractors to provide services in connection with this
audit. Any Contractors subcontracted to perform audit work must be on the Roster of Independent
Auditors authorized to conduct audits of Montana local governments that is maintained by the Local
Government Services Bureau. The Contractor is responsible to the Entity and the State for the acts and
omissions of all correspondent Contractors, consultants, subcontractors, or agents and of persons directly or
indirectly employed by such correspondent Contractors, consultants, subcontractors or agents, and for the acts
and omissions of persons employed directly by the Contractor. Further, nothing contained within this contract
creates any contractual relationship between any correspondent Contractor, consultant, or subcontractor and
the State.
19. Entrance and Exit Conferences: The State may participate in all entrance and exit conferences between the
Entity and Contractor, as well as all major conferences dealing with audit exceptions and recommendations
regarding accounting or operating procedures, management policies, or internal control changes.
20. Access to Records: The Contractor shall give the State and, when required by law, the Montana Legislative
Audit Division, access to the Contractor's audit programs, supporting working papers, time records, and all
other documents relating to the audit. Access to these documents must be provided at the State's offices in
Helena, Montana. Access to working papers includes the right of the State to obtain copies of working papers,
as is reasonable and necessary. The Contractor shall make the audit programs and supporting working papers
FORM/SAC01 Page 9 of 12 10/11
20. continued:
available to the State for use by the State or other public accounting firms as directed by the State in future
audits of the Entity. The Contractor shall make the audit programs and supporting working papers available to
the cognizant or oversight agency for audit or its designee, federal agencies providing direct or indirect
funding, or the U.S. General Accounting Office, if requested. Access to working papers includes the right of
federal agencies to obtain copies of working papers, as is reasonable and necessary. The Contractor shall
retain the audit report, audit programs, and audit working papers for a minimum of five years from the date of
the audit report, unless the State notifies the Contractor to extend the retention period. If professional
standards or other applicable laws, rules, or regulations require a longer retention period, the Contractor shall
retain the above materials for that specified period.
21. State Review: As provided by Section 2-7-522, MCA, the State may review the audit report submitted by the
Contractor. If the State determines that reporting requirements have not been met, it will notify the Entity and
the Contractor of the significant issues of noncompliance. The Contractor shall correct the identified
deficiencies within 60 days of notification.
22. Independent Contractor: The Entity and the State recognize that the Contractor is an independent contractor
and neither its principals nor its employees are employees of the State or Entity for purposes of tax, retirement
system, or social security (FICA) withholding.
23. Workers’ Compensation: The Contractor certifies that it carries Workers’ Compensation for its employees
and that it has either elected Workers’ Compensation or has an approved Independent Contractor’s Exemption
covering the Contractor while performing work under this contract. (Montana Code Annotated, Title 39,
Chapter 71) Neither the Contractor nor its employees are State employees for the purposes of this paragraph.
24. Indemnification: The Contractor agrees to protect, defend, and save the State and Entity, their elected and
appointed officials, agents, and employees, while acting within the scope of their duties as such, harmless from
and against all claims, demands, and causes of action of any kind or character, including the cost of defense
thereof, arising in favor of the Contractor’s employees or third parties on account of bodily or personal
injuries, death, or damage to property arising out of services performed or omissions of services or in any way
resulting from the acts or omission of the Contractor and/or its agents, employees, representatives, assigns, and
subcontractors, except the sole negligence of the State or Entity, under this agreement.
If the Contractor is or may be obligated to pay any cost, settlement, judgment, fine, penalty, or similar award or
sanction as a result of a claim, investigation, or other proceeding instituted by any third party, then to the
extent that such obligation is or may be a direct or indirect result of the Entity’s intentional or knowing
misrepresentation or provision to the Contractor of inaccurate or incomplete information in connection with
this engagement, and not any failure on the Contractor’s part to comply with professional standards, the Entity
shall indemnify, defend, and hold harmless the Contractor against such obligations.
25. Insurance: Contractor shall maintain for the duration of the contract, at its cost and expense, occurrence
coverage insurance against claims for injuries to persons or damages to property which may arise from or in
connection with the performance of the work by the Contractor, and/or its agents, employees, representatives,
assigns, or subcontractors. The Contractor's insurance coverage shall be primary insurance for the
Contractor’s negligence as respects the State and Entity and their elected officers, officials, employees, and
volunteers. Any insurance or self-insurance maintained by the State and Entity, their officers, officials,
employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it
The Contractor shall purchase and maintain occurrence coverage to cover such claims as may be caused by any
FORM/SAC01 Page 10 of 12 10/11
25. continued:
act, omission, negligence of the Contractor or its officers, agents, representatives, assigns or subcontractors.
Note: If occurrence coverage is unavailable or cost-prohibitive, the state will accept ‘claims made’ coverage
provided the following conditions are met: 1) the commencement date of the contract must not fall outside the
effective date of insurance coverage and it will be the retroactive date for insurance coverage in future years,
and 2) the claims made policy must have a three-year tail for claims that are made (filed) after the cancellation
or expiration date of the policy.
The State and Entity reserve the right to require complete copies of insurance policies at all times.
26. Compliance with Laws: The Contractor shall, in performance of work under this contract, fully comply with
all applicable federal, state, or local laws, rules and regulations, including the Montana Human Rights Act, the
Civil Rights Act of 1964, the Age Discrimination Act of 1975, the Americans with Disabilities Act of 1990,
and Section 504 of the Rehabilitation Act of 1973. Any subletting or subcontracting by the Contractor
subjects subcontractors to the same provisions. In accordance with Section 49-3-207, MCA, the Contractor
agrees that the hiring of persons to perform the contract will be made on the basis of merit and qualifications
and there will be no discrimination based upon race, color, religion, creed, political ideas, sex, age, marital
status, physical or mental disability, or national origin by the persons performing the Contract.
27. Work Accommodations: The Entity shall provide the Contractor with reasonable space in which to conduct
the audit and respond promptly to requests for information as well as for all necessary books and records.
Support for clerical, equipment, and photocopying or reproduction services shall be agreed upon by the Entity
and the Contractor as specified in Appendices A, B and C.
28. Termination before Audit Has Commenced: Before the commencement of the audit, either the Contractor
or the Entity, with the State’s consent, or the State, may cancel this contract by providing 20 days’ written
notice to the other parties. The contract may be canceled under this paragraph for cause. Cause includes, but is
not limited to, failure of any party to comply with the terms of this contract or with any Administrative Rule
adopted by the State under the authority of Title 2, Chapter 7, Part 5, of the Montana Code Annotated.
In addition, if both the Contractor and the Entity mutually agree to cancel this contract before the
commencement of the audit, for convenience, the State shall consent to cancellation of the contract upon
written notification by the Contractor and the Entity of their agreement to cancel this contract.
The State, however, will not consent to the cancellation of an audit contract for the sole purpose of allowing
the Contractor and Entity to then enter into a new contract that extends the number of fiscal years to be audited
by the Contractor. Unless there are extenuating circumstances, the existing audit contract must be completed
first. This provision does not prohibit the cancellation of a contract for the purpose of replacing an annual
audit with a biennial audit.
29. Termination after the Audit Has Commenced: After the audit has commenced, but before the audit report
has been issued, either the Contractor or the Entity, with the State’s consent, or the State, may cancel this
contract for failure of any party to comply with the terms of this contract or with any Administrative Rule
adopted by the State under the authority of Title 2, Chapter 7, Part 5, MCA, or for other cause. This right of
cancellation may be exercised by providing the breaching party written notice of the default and, if applicable,
provide 20 days from the date of the notice to cure the default. If the Contractor is the breaching party and
fails to remedy the breach, then the Contractor is not entitled to the audit fee set out in this contract. If the
Entity is the breaching party, the Entity shall pay the Contractor a pro rata portion of the audit fee set out in
this contract, based on the percentage of work completed at the time of cancellation. In addition, if both the
FORM/SAC01 Page 11 of 12 10/11
29. continued:
Contractor and the Entity mutually agree to cancel this contract for convenience; the State shall consent to
cancellation of the contract upon written notification by the Contractor and the Entity of their agreement to
cancel this contract.
30. Professional Requirements: By signing this contract, the Contractor certifies that it is in compliance with the
continuing professional education requirements and the external quality control review requirements as set out
in Government Auditing Standards, as established by the Comptroller General of the United States. The State
may require the Contractor to provide evidence that it has met the above requirements.
31. Single Audit Act Certification: If the audit is required to meet the requirements of the Single Audit Act of
1984 as amended by the Single Audit Act Amendments of 1996 and OMB Circular A-133, the Contractor
certifies that neither it nor any of its principals is presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from performing audits by any Federal department or agency.
32. Governing Law and Venue: This Contract is governed by the laws of Montana. The parties agree that any
litigation concerning this Contract in which the State is named as a party must be brought in the First Judicial
District in and for the County of Lewis and Clark, State of Montana, and each party shall pay its own costs and
attorney fees. The parties also agree that any litigation concerning this Contract in which the State is not
named as a party must be brought in the Judicial District in and for the County in which the Entity is located,
and each party shall pay its own costs and attorney fees.
33. Notice: All notices under this contract must be in writing and will be deemed given if delivered personally, by
mail, certified, return receipt requested, or by e-mail. All notices will (a) if delivered personally, be deemed
given upon delivery, (b) if delivered by mail, be deemed given upon receipt, or (c) if delivered by e-mail be
deemed given upon receipt.
34. Invalid Provision: If any provision of this contract is held to be illegal or unenforceable and the parties’ rights
or obligations will not be materially and adversely affected, such provision will be (1) severed from the
contract, (b) the contract will be interpreted as if such provision was never a part of the contract and (c) the
remaining provisions will stay in effect.
35. Authority: Each party represents that the person signing this contract has the authority to bind that party.
36. Entire Agreement and Amendment: This contract and the attached Appendices contain the entire
understanding and agreement of the parties. No modification or amendment of this contract is valid unless it
is reduced to writing, signed by the parties, and made a part of this contract.
FORM/SAC01 Page 12 of 12 10/11
IN WITNESS WHEREOF, Contractor, Entity, and State have executed this Standard Audit Contract on the date first
above written:
Certified or Licensed Public Accountant
Firm Name
By: Date:
Authorized Representative
Governmental Entity
Entity Name
By: Date:
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
By: Date:
Approved By
FORM/SAC01 Page A1 10/11
APPENDIX A
Initial or Sole Audit under this Contract
GOVERNMENTAL ENTITY (ENTITY):
Telephone: Address: (Street Address or P.O. Box)
, MT
(City/Town) (Zip Code)
Contact Person(s):
PUBLIC ACCOUNTANT/ACCOUNTING
FIRM (CONTRACTOR):
Address:
Telephone: (Street Address or P.O. Box)
, MT (City/Town) (Zip Code)
Contact Person(s):
1. Audit Period and Dates of Engagement:
A. This audit will cover the fiscal year(s) ending
, (and ).
(Month & Day) (Year) (Year)
B. Date to commence audit work:
C. Date to submit final audit report
to Entity and State:
2. Time and Price for Engagement:
A. Estimated total hours -
B. Price for audit personnel $
Price for Travel
Price for typing, clerical
and report preparation
Total price for this
engagement $
3. The reporting entity contains the following discretely presented component units:
4. Date Annual Financial Report or a trial balance will be available:
5. Number of copies of audit report Contractor will provide to Entity:
FORM/SAC01 Page A2 10/11
6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor
as follows:
7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal
year(s) will be as indicated below:
The audit will be a single audit conducted in accordance with the provisions of OMB Circular A-133 because the
Entity expended a total amount of federal awards equal to or in excess of $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
OR
The audit will not be a single audit conducted in accordance with the provisions of OMB Circular A-133, and will
not include audit coverage of any federal financial assistance in accordance with requirements of that Circular,
because the Entity expended a total amount of federal awards of less than $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
Certified or Licensed Public Accountant
Firm Name
By: Date:
Authorized Representative
Governmental Entity
Entity Name
By: Date:
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
By: Date:
Approved By
FORM/SAC01 Page B1 10/11
APPENDIX B
Subsequent Audit under this Contract
GOVERNMENTAL ENTITY (ENTITY):
Telephone: Address: (Street Address or P.O. Box)
, MT
(City/Town) (Zip Code)
Contact Person(s):
PUBLIC ACCOUNTANT/ACCOUNTING
FIRM (CONTRACTOR):
Address:
Telephone: (Street Address or P.O. Box)
, MT (City/Town) (Zip Code)
Contact Person(s):
1. Audit Period and Dates of Engagement:
A. This audit will cover the fiscal year(s) ending
, (and ).
(Month & Day) (Year) (Year)
B. Date to commence audit work:
C. Date to submit final audit report
to Entity and State:
2. Time and Price for Engagement:
A. Estimated total hours -
B. Price for audit personnel $
Price for Travel
Price for typing, clerical
and report preparation
Total price for this
engagement $
3. The reporting entity contains the following discretely presented component units:
4. Date Annual Financial Report or a trial balance will be available:
5. Number of copies of audit report Contractor will provide to Entity:
FORM/SAC01 Page B2 10/11
6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor
as follows:
7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal
year(s) will be as indicated below:
The audit will be a single audit conducted in accordance with the provisions of OMB Circular A-133 because the
Entity expended a total amount of federal awards equal to or in excess of $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
OR
The audit will not be a single audit conducted in accordance with the provisions of OMB Circular A-133, and will
not include audit coverage of any federal financial assistance in accordance with requirements of that Circular,
because the Entity expended a total amount of federal awards of less than $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
Certified or Licensed Public Accountant
Firm Name
By: Date:
Authorized Representative
Governmental Entity
Entity Name
By: Date:
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
By: Date:
Approved By
FORM/SAC01 Page C1 10/11
APPENDIX C
Subsequent Audit under this Contract
GOVERNMENTAL ENTITY (ENTITY):
Telephone: Address: (Street Address or P.O. Box)
, MT
(City/Town) (Zip Code)
Contact Person(s):
PUBLIC ACCOUNTANT/ACCOUNTING
FIRM (CONTRACTOR):
Address:
Telephone: (Street Address or P.O. Box)
, MT (City/Town) (Zip Code)
Contact Person(s):
1. Audit Period and Dates of Engagement:
A. This audit will cover the fiscal year(s) ending
, (and ).
(Month & Day) (Year) (Year)
B. Date to commence audit work:
C. Date to submit final audit report
to Entity and State:
2. Time and Price for Engagement:
A. Estimated total hours -
B. Price for audit personnel $
Price for Travel
Price for typing, clerical
and report preparation
Total price for this
engagement $
3. The reporting entity contains the following discretely presented component units:
4. Date Annual Financial Report or a trial balance will be available:
5. Number of copies of audit report Contractor will provide to Entity:
FORM/SAC01 Page C2 10/11
6. The Entity will provide clerical, equipment, and photocopying or reproduction services to the Contractor as
follows:
7. The audit scope with regard to federal financial assistance received by the Entity for the above fiscal year(s)
will be as indicated below:
The audit will be a single audit conducted in accordance with the provisions of OMB Circular A-133 because the
Entity expended a total amount of federal awards equal to or in excess of $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
OR
The audit will not be a single audit conducted in accordance with the provisions of OMB Circular A-133, and will
not include audit coverage of any federal financial assistance in accordance with requirements of that Circular,
because the Entity expended a total amount of federal awards of less than $500,000 during the fiscal year(s), or
such other dollar amount as may be established by OMB that is effective for the fiscal year(s) being audited.
Certified or Licensed Public Accountant
Firm Name
By: Date:
Authorized Representative
Governmental Entity
Entity Name
By: Date:
Authorized Representative
Montana Department of Administration,
Local Government Services Bureau
By: Date:
Approved By
3/28/14
11:20 AM
1. 1
CITY OF BOZEMAN, MONTANA
FUND 010 GENERAL FUND
COMPARATIVE BALANCE SHEET
JUNE 30, 2013 AND JUNE 30, 2012
Current Prior
Year Year
____Actual_____ ____Actual_____
ASSETS AND OTHER DEBITS
Current Assets
Cash and Cash Equivalents $ 7,497,436 $ 6,888,488
Receivables
Property Taxes 961,660 1,178,339
Accrued Interest 8,016 10,750
Customers, Net 1,828,549 1,908,113
Special Assessments 333 5,315
Other Governments 2,443 187,236
Due From Other City Funds 36,166 461,553
----------------- -----------------
Total Current Assets ______10,334,603_ ______10,639,794_
Long Term Assets and other Debits
Prepaid Expenditures 189 -
----------------- -----------------
Total LT Assets and other Debits _____________189_ ________________-
Total Assets and other Debits $ 10,334,792 $ 10,639,794
================= =================
LIABILITIES, EQUITY AND OTHER
CREDITS
Accounts Payable $ 924,450 $ 975,322
Accrued Employee Benefits 242,619 220,832
Deferred Revenue 1,798,990 2,081,527
Escheate Property Payable 41,359 35,058
----------------- -----------------
Total Current Liabilties 3,007,418 3,312,739
----------------- -----------------
Long Term Liabilities
----------------- -----------------
----------------- -----------------
Total Liabilities $ 3,007,418 $ 3,312,739
================= =================
Equity and other credits:
Reserved Fund Balance
Unreserved Fund Balance
Undesignated Fund balance 7,327,377 7,327,054
----------------- -----------------
Total Equity and other Credits _______7,327,377_ _______7,327,054_
Total Liabilities + Equity $ 10,334,795 $ 10,639,793
================= =================
3/28/14
11:20 AM
CITY OF BOZEMAN, MONTANA 1. 1
FUNDS 010 GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
FOR THE YEAR ENDED JUNE 30, 2013
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2012
Original Amendment Current Current Variance Prior
Budget Year Year Year
_______________ _______________ ____Budget_____ ____Actual_____ _______________ ____Actual_____
REVENUES
Taxes $ 12,346,855 - $ 12,346,855 $ 11,744,306 $ (602,549) $ 11,535,471
Special Assessments - - - 7,041 7,041 9,257
Licenses and permits 285,250 - 285,250 301,817 16,567 294,411
Intergovernmental 5,658,618 - 5,658,618 6,277,896 619,278 6,139,548
Charges for Services 2,145,095 - 2,145,095 2,139,772 (5,323) 2,166,750
Fines and forfeitures 1,241,500 - 1,241,500 1,259,382 17,882 1,241,798
Interest on investments 30,000 - 30,000 48,582 18,582 55,104
Loan Repayment - - - - - -
Other __________46,500_ ________________- __________46,500_ __________10,627_ _________(35,873) __________25,425_
Total Revenues $_____21,753,818_ ________________- $_____21,753,818_ $_____21,789,423_ $_________35,605_ $_____21,467,764_
Current
General Government $ 5,268,342 $ 36,000 $ 5,304,342 $ 5,304,032 $ 310 $ 5,172,108
Public Safety 9,841,356 2,412,274 12,253,630 12,253,503 127 11,180,578
Public Service 138,878 29,000 167,878 167,537 341 125,634
Public Welfare 4,645,283 16,500 4,661,783 4,618,364 43,419 4,275,062
Other 2,271,105 (1,081,500) 1,189,605 1,169,445 20,160 374,779
Capital Outlay 1,434,820 (917,146) 517,674 487,316 30,358 771,296
Debt Service _________150,000_ _________162,000_ _________312,000_ _________311,887_ _____________113_ _________212,771_
Total expenditures $_____23,749,784_ $________657,128_ $_____24,406,912_ $_____24,312,084_ $_________94,828_ $_____22,112,228_
Revenues over(under)
expenditures $_____(1,995,966) ________________- $_____(2,653,094) $_____(2,522,661) $________130,433_ $_______(644,464)
OTHER FINANCING SOURCES (USES)
Operating Transfers in 2,171,149 - 2,171,149 3,174,742 1,003,593 1,952,844
Operating transfers out (439,186) (195,000) (634,186) (651,759) (17,573) (878,575)
Proceeds of long-term debt - - - - - -
Sale of fixed assets ________________- ________________- ________________- ________________- ________________- ________________-
Total other financing sources
(uses) $______1,731,963_ $_______(195,000) $______1,536,963_ $______2,522,983_ $________986,020_ $______1,074,269_
Revenues & other sources over
(under) expenditures & other $ (264,003) $ (852,128) $ (1,116,131) $ 322 $ 1,116,453 $ 429,805
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FUND BALANCE
Beginning of year ________________- ________________- ________________- _______7,327,055_ ________________- _______6,897,249_
FUND BALANCE
end of the year - - - $ 7,327,377 - $ 7,327,054
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