As a Metropolitan Planning Organization (MPO), SACOG receives federal funds directly from federal agencies and federal funds pass through the California Department of Transportation (Caltrans). Therefore, SACOG must annually undergo a financial audit by an independent financial auditor and issue a report on the financial position of SACOG at June 30, of each year.

The Auditor or auditor team shall perform all technical and other necessary analysis to complete the scope of work. The auditor receives general direction from the SACOG Finance Director or designee. The auditor shall examine the financial statements and records of SACOG and prepare an annual audit of the financial transactions and records in accordance with the applicable laws and regulations and contracts that have been entered by SACOG.

Task 1:

In accomplishing the foregoing, the auditor shall be required to do the following:

1. Submit a pre-work program to SACOG.

1. The audit firm will perform an audit of SACOG ‘s general fund and special revenue funds. The audit will be conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller of the United States.

1. The auditor will perform an audit and provide all required reports (and opinions) in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). This audit shall also include the audit activities required to meet the audit requirements of the State Transportation Improvement Program (STIP) Planning, Programming and Monitoring funds (PPM) and other funds, if applicable.

1. The audit firm will render their auditors’ report on the basic financial statements which will include both the government-wide financial statements and Fund Financial Statements. The audit firm will also apply limited audit procedures to the Management’s Discussion and Analysis (MD&A) and Required Supplementary Information.

1. The auditor will provide a Management letter and the required Statement on Auditing Standards 114: Auditor’s Communication with Those Charged with Governance letter. The management letter should include a summation statement of audit findings and recommendations affecting the financial statements, internal control, accounting systems, compliance determination, and any other material matters. The management letter must also include a review and update of the findings from the prior year.

1. Advise and assist SACOG staff in establishing controls and procedures as may be required during the audit performance.

1. Express an opinion on the fairness of presentation of SACOG’s financial position.

1. Perform the year-end electronic reporting of Single Audit reporting data to appropriate federal, state, and other agencies.

1. Prepare SACOG’s Annual Comprehensive Financial Report (ACFR). The ACFR will be fully compliant with all GASB statements. SACOG has been a recipient of the GFOA award and will continue to seek this certification indefinitely.
2. Confer with and provide planning assistance to appropriate SACOG staff for the purpose of filing for and obtaining a “Certificate of Achievement for Excellence in Financial Reporting” from the Government Finance Officers Associations (GFOA).
3. If conditions are discovered, which lead to the belief that material errors, fraud, or other irregularities may exist, or of any other circumstances are encountered that require extended services, the auditor shall promptly advise SACOG’s Finance Director. No extended services shall be performed unless they are authorized in a separate contractual agreement or in an amendment to this Agreement.
4. From time to time, SACOG’s board, Executive Director or Finance Director may request the auditor to perform services in addition to the required services in this Scope of Work. These additional services would generally include special matters or performing special examinations upon request. Such additional services must be approved in writing by SACOG prior to their performance. Charges for such services will be paid to the auditor in addition to the auditor’s charges for the required services and be based on negotiation between SACOG and the auditor.

Deliverables:

1. One electronic copy (PDF) of the Annual Comprehensive Financial Report (ACFR), accompanying by the Management Letter which include audit findings and recommendations affecting the financial statements, internal control, accounting systems, compliance determination, and any other material matters must be submitted to SACOG’s Finance Director by November 30th of each year, or earlier if possible. However, at least fifteen (15) days prior to the submission of the final report, the auditing firm’s staff is required to review the management letter with the designee.
2. Attend one to two SACOG Policy and Innovation Committee meetings to communicate the audit scope and present results of the current audit and answer questions from the Committee. May be asked to attend and speak at the SACOG Board meeting should the need arise.

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Audit Services #2: SACOG Financial Audit

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