Page 110 - Pantego FY22 Operating Budget

III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING

A. ACCOUNTING. The Town is solely responsible for the reporting of its financial
affairs, both internally and externally. The Town Manager serves as the Town's Chief
Fiscal Officer and the head of the administrative branch of the Town.

B. AUDITING. An independent certified public accounting (CPA) firm will perform
annual financial audits.

1) Qualifications of the Auditor. In conformance with Texas Local Government
Code, Title 4, Chapter 103, the Town shall have its records and accounts audited
annually and shall have an annual financial statement prepared based on the
audit performed by external independent accountants ("auditor").

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 Town'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 in the state of Texas, capable of
demonstrating that it has sufficient staff which will enable it to conduct the Town's
audit.

3) Timing. The auditor's report on the Town's financial statements will be completed
within 150 days of the Town'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 Finance Director shall respond in writing to the Town Manager and
Town 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 year end
audit.

5) Responsibility of Auditor to Town Council. The auditor is accountable to the Town
Council and will have access to direct communication with the Town Council if
the Town 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 Town will circulate requests for proposal for audit
services at least every five years. Should the Town 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 no later than July 1st of each
year.

7) Auditor Accountability to Staff. The auditor shall provide the Finance Director with
copies of all work papers/support documentation and schedules upon completion
of the audit. Originals will be maintained at the auditor’s office.

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