Page 59 - Burleson FY22 City Budget

2) Auditor Repute. The auditor must be a CPA firm of good reputation and must demonstrate that it has the breadth
and depth of staff to conduct the City's audit in accordance with generally accepted auditing standards and
contractual requirements. The auditor must be registered as a partnership or corporation or certified public
accountants, holding a license under Article 41a-1, Section 9, of the Civil Statutes of Texas, capable of
demonstrating that it has sufficient staff which will enable it to conduct the City's audit in accordance with generally
accepted auditing standards as required by the City Charter and applicable state and federal laws.

3) Timing. The auditor's report on the City's financial statements will be completed within 150 days of the City's fiscal
year end.

4) Management Letter. The independent CPA firm shall provide a management letter, if one is issued, no later than
March 31 following the end of each fiscal year. The auditor will prepare and will jointly review the management letter
with the Finance Committee within 20 working days of its receipt by the staff. Within 10 days of this joint review, the
Finance Director shall respond in writing to the City Manager and City Council regarding the auditor's management
letter, addressing the issues contained therein. The Council shall schedule its formal acceptance of the auditor's
report upon the resolution of any issues resulting from the joint review.

5) Responsibility of Auditor to City Council. The auditor is accountable to the City Council and will have access to direct
communication with the City Council if the City Staff is unresponsive to auditor recommendations or if the Auditor
considers such communication necessary to fulfill its legal and professional responsibilities.

6) Rotation of Auditor. The City will not require an auditor rotation, but will circulate requests for proposal for audit
services at least every five years. Should the City Council be dissatisfied with the auditor's performance, it may
request new proposals at any time. Year to year authorization to continue shall be done by July 1st of each year.

7) Auditor Accountability to Staff. The following will be provided to City Staff by the auditor:

a. Hourly time sheets accounting for time spent both by audit phase and level of auditor will be submitted to the
City on a monthly basis.
b. Copies of all work papers, either electronically or on paper, will be furnished to the City upon completion of the
audit. Originals will be maintained at the auditor's office.

C. FINANCIAL REPORTING.

1) External Reporting.

a. Scope. The Financial Report shall be prepared in accordance with generally accepted accounting principles
(GAAP).

b. Timing. The Report shall be presented to the Council within 150 calendar days of the City’s fiscal year end. If
City staffing limitations preclude such timely reporting, the Finance Director will inform the City Council of the
delay and the reasons thereof.

c. Awards. The Report shall be presented annually to the Government Finance Officer's Association (GFOA) for
evaluation and consideration for the Certificate of Achievement for Excellence in Financial Reporting. (For a
discussion of this award, see XI.C. below).

2) Internal Reporting. The Finance Department will prepare internal financial reports, sufficient to plan, monitor, and
control the City's financial affairs. Internal financial reporting objectives are addressed throughout these policies.
(See Section IV. Budgeting, C. Reporting, below).

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