Policies and Procedures

Policy Number:  3.1003
Subject Area:  Business Services and Finances 
Adopted: 03/23/2013
Revised: 03/23/2013

An audit shall be made at the end of each fiscal year by an accountant licensed to practice public accounting in Illinois and appointed by the Board of Trustees.  The audit examination shall be conducted in accordance with generally accepted audit principles and standards and in accordance with the requirements set forth in the Illinois Public Community College Act.

The selection of an audit firm shall be made in accordance with the following process:

  • The College shall request a four-year proposal for the annual audit.  Such proposal shall include the provision that the contract with the auditing firm selected may be renewed by the College Administration on an annual basis for up to four additional years, for a combined total of eight years.  Such annual renewals are contingent on the College Administration’s determination that the audit firm has performed satisfactorily during the preceding period.  The College is not obligated to extend the contract with the audit firm beyond the initial four-year term and reserves the right to seek new proposals at any time after the initial four-year contract is completed.
  • Once an audit firm has performed the College audit for eight (8) consecutive years, the College will request new proposals for auditing services.  When such proposals are sought, all firms licensed to practice public accounting in Illinois, to include the audit firm that has completed the eight-year audit cycle just ended, shall be eligible to submit a proposal.

The audit firm that is performing the College audit at the time the above provisions are approved shall be permitted to continue as the College audit firm, pursuant to the above provisions.  The eight-year maximum, as outlined above, shall include the years such firm was engaged as the College’s audit firm prior to the above provisions being approved.

Approval History:  Replaces Audit Policy 4.1 Approved July 15, 1993 and March 23, 2013