By Jeannie M. Foley - Public Affairs Staff Writer
As detailed in the Spring 2010 edition of Best Practices, this new program offers qualifying entities an attractive alternative to a standard financial audit.
The new option is a less costly engagement known as an Agreed Upon Procedure (AUP). To date, more than 300 smaller government entities – including townships, villages, public libraries and agricultural societies – have qualified for and chosen an AUP. About 100 additional AUPs are now being completed, promising an even greater total savings when all the results for 2010 are in.
While individual results have varied, the total savings to clients who chose AUPs are nearly $500,000 when compared to the previous financial audit. On average, costs have been reduced approximately 40 percent for those who have opted for an AUP, and in some cases the savings are even higher.
In each example on the right, savings are computed by comparing this year’s AUP cost to charges for the previous financial audit. For more details about the AUP option, including eligibility requirements, see the Spring 2010 Best Practices newsletter or Auditor of State Bulletin 2009-012.