Charter review committee hears audit rules, single-audit requirements and case for internal audit function

John Halsey, a financial-management instructor with the Carl Vinson Institute of Government, told the Augusta City Charter Review Committee on Aug. 7 that the city must follow state and federal auditing rules and that the annual financial statement audit is a tool — not a substitute — for ongoing internal control and risk management.

Halsey outlined audit requirements in Georgia law and federal rules, including the ‘‘yellow book’’ Government Auditing Standards and the single-audit rules in 2 C.F.R. part 200. He said Augusta meets the thresholds that require an annual external audit and, when federal expenditures exceed $1 million, a single audit with additional compliance testing.

The presentation explained audit mechanics and timing: management prepares financial statements, an independent certified public accountant issues an opinion after fieldwork, and the completed report must be filed with the Georgia Department of Audits and Accounts within 180 days of the fiscal-year end. Halsey said, "everything starts with the budget, but it ends with the…