Common use of Required Communications Clause in Contracts

Required Communications. Significant Deficiencies – In the required reports on compliance and internal controls, the Consultant shall communicate any significant deficiencies found during the audit of the TDA claimants. A significant deficiency shall be defined as a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity’s financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control. Irregularities and illegal acts – The Consultant shall be required to make an immediate, written report of all irregularities and illegal acts or indication of illegal acts of which they become aware to the jurisdiction/agency and Commission’s audit oversight committee, Executive Director, and Chief Financial Officer. Planning meetings – The Consultant shall meet with the audit oversight committee designated by the Commission at least once a year upon completion of the audits and agreed-upon procedures. The audit oversight committee will be informed of each of the following: 1) The Consultant’s responsibility under generally accepted auditing standards; 2) The Consultant’s approach to the work performed; 3) Disagreements with management; 4) Management consultation with other accountants; 5) Major issues discussed with management prior to retention; 6) Difficulties encountered in performing the work; and 7) Results of the work performed.

Required Communications. Significant Deficiencies – In the required reports on compliance and internal controls, the Consultant shall communicate any significant deficiencies found during the audit of the TDA claimantsCommission. A significant deficiency shall be defined as a control deficiency, or combination of control deficiencies, that adversely affects the entityCommission’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entityCommission’s financial statements that is more than inconsequential will not be prevented or detected by the entityCommission’s internal control. Irregularities and illegal acts – The Consultant shall be required to make an immediate, written report of all irregularities and illegal acts or indication of illegal acts of which they become aware to the jurisdiction/agency and Commission’s audit oversight committee, Executive Director, and Chief Financial Officer. Planning meetings – The Consultant shall meet with the audit oversight committee designated by the Commission at least once a year upon completion of the audits and agreed-upon proceduresaudit. The audit oversight committee will be informed of each of the following: 1) The Consultant’s responsibility under generally accepted auditing standards; 2) The Consultant’s approach to the work performedSignificant accounting policies; 3) Management judgments and accounting estimates; 4) Significant audit adjustments; 5) Other information in documents containing audited financial statements; 6) Disagreements with management; 47) Management consultation with other accountants; 5) 8) Major issues discussed with management prior to retention;; and 69) Difficulties encountered in performing the work; and 7) Results of the work performedaudit.