Grant Compliance Audit Services

The vendor is required to provide grant compliance audit services to span four years, 2025-2029, recurring phases each fiscal year and one final close out phase.
1. Planning and risk assessment
•    Engagement scoping meeting with the agency, the project management team to confirm reporting entity, materiality, key controls, and any changes in the funding agreement. 
•    Risk register alignment with the project’s risk log to focus audit effort on high value and high risk cost streams (e.g., construction draws, change orders, land acquisitions). 
•    Audit strategy and materiality memo documenting the planned standards approach, reliance on controls vs. substantive testing, use of experts (if any), and timetable.
2. Interim fieldwork and controls testing
•    During interim fieldwork the auditor will walk through key processes, including procurement, contract change management, progress payment certification, holdback release, and grant claim preparation—then perform design  and operating effectiveness tests with defined sample sizes, attribute checks, and exception follow up. 
•    Fraud risk procedures will also be applied, using journal entry analytics. 
•    Findings will be summarized in an optional interim management letter that flags any control deficiencies requiring remediation before year end.
3. Year-end substantive procedures
•    Trial balance tie out and variation analysis versus budget and prior year. 
•    Sampling and vouching of construction costs, professional service invoices, and land and row payments to original contracts, change orders, and inspection certificates. 
•    Confirmation of payables and holdbacks with major contractors and suppliers. 
•    Cut off tests to ensure costs and revenues are recorded in the correct fiscal period. 
•    Grant compliance testing against funding agreement annexes (eligible cost categories, milestone linkage, reporting format). 
•    Analytical review of overhead allocations, interest, and contingency usage. 
•    Subsequent events review to the date of the audit report.
4. Reporting and close out
•    The auditor will review draft financial statements and accompanying notes to ensure standards compliance and consistency with commission disclosures, issue an independent auditor’s report in the standards format (anticipating an unmodified opinion barring any material misstatement).
•    The auditor will carry out a one time, terminal cut off audit that encompasses the final construction draw, the release of any outstanding holdbacks, and the recognition of warranty accruals; will validate capital asset classifications and useful life estimates, including any Ps 3280 asset retirement obligation considerations; and will issue a final project close audit report ready for grant wrap up and public disclosure within 90 days of project completion.

- Questions/Inquires Deadline: October 18, 2025