University Union Policies and Procedures

AUDIT FIRM SELECTION
Adopted: March, 1981
Updated: November, 2001

GENERAL STATEMENT
In order to ensure appropriate accounting and dispensation of all Union funds and to be in full compliance with the rules and regulations of a not for profit corporation and a CSU Auxiliary, an annual audit must be performed by an independent auditor with final report submitted to the full Board of Directors for acceptance.

POLICIES
For the University Union Operation of California State University, Sacramento, it is the policy of the Board of Directors that the annual audit firm selection and audit process shall include the following steps:

1. Review audit firms' reputation, capability and cost prior to annual audit firm selection and letter of appointment.

2. Select audit firm and/or audit firm's personnel on a cyclical basis to ensure that new audit perspectives are brought forward.

3. Ensure that the audit firm reports be provided to and reviewed by the full Board of Directors in a prompt and timely manner.

4. Provide to the audit firm all instructions, procedures and formats required by the CSUS Standing System-wide Accounting and Reporting Systems with these instructions, procedures and formats being a part of the audit requirements.

5. Require that the Board, Union management, and audit firm shall, if necessary, discuss and answer questions concerning management performance and the financial and internal control functions within the Union operations, and the audit firm to work closely with Union management to achieve any desired improvements. Auditing firm shall make a presentation to both the Budget and Finance Committee and the Board of Directors.

6. Transmit this policy to the Union Director and to the Union's accounting, bookkeeping, and cashiering contractors, if any, and require that the Director and such contractors shall additionally provide all necessary efforts to ensure its implementation.

GUIDELINES AND PROCEDURES

1. University Union Director, and if there is a contract for accounting services shall work collaboratively with said organization, in the selection porcess of the Annual Auditor.

2. There shall be a Request For Proposal process (RFP) soliciting proposals from local qualified Certified Public Accounting Firms. This policy shall be included as a part of the RFP process.

3. Selection of the Auditor can be a multi-year agreement if financially acceptable.

4. Firms must be reviewed for any potential conflict of interest issues.

5. Upon final review, the Board of Directors makes selection recommendations to the Budget and Finance Committee and subsequent final selection by the Board of Directors.