Audit Policy

I. Policy

As required by the Colorado Revised Statutes, Local Government Audit Law, 29-1-601 through 29-1-608, and Library Law, 24-90-109, the Board of Trustees of the Arapahoe Library District shall ensure that an annual audit of the financial affairs and transactions of all funds and activities of the Library District be conducted for each fiscal year.

II. The audit report

A. Content

1. Financial statements setting forth the financial position and results of operation of each fund and activity of the Arapahoe Library District and a comparison of actual figures with budgeted figures for each fund or activity for which a budget has been prepared.

2. The opinion of the auditor with respect to the financial statements of the Library District.

3. Full disclosure by the auditor of violations of state or local law which are identified during the audit process.

B. Submission of report

1. Audit shall be completed and the audit report submitted by the auditor to the Arapahoe Library District Board of Trustees no later than the June Board meeting.

2. One copy of the audit shall be sent to the state auditor by June 30.

III. Responsibilities

A. An audit committee, comprised of two members of the Board of Trustees, working with the Director of Administrative Services, will initiate a formal Request for Proposal (RFP) process every three years, at a minimum, to acquire the services of an auditor. The committee will participate in evaluation of submitted proposals, conduct interviews if necessary, and recommend a certified public accounting firm to the Board of Trustees for approval. The contract for audit services will be for one year, and may be renewed pending annual approval of the audit committee and the Board of Trustees.

B. The Board of Trustees shall approve the selection of a certified public accountant or partnership of certified public accounts, based on the recommendation of the Audit Committee, at the close of each fiscal year.

C. The Manager of Finance will be responsible for the preparation of a working trial balance, documentation to support financial records, contracts, bank confirmations, and any additional schedules or information necessary to complete the audit. The Manager of Finance will also be responsible for the production work necessary to complete the final audit report.

ADOPTED: 12/1999
REVISED: 5/2002
REVIEWED: 6/2006
REVISED: 8/2007
REVISED: 08/2014

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