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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
local government; audits; public meeting
Purpose
Requires, within 90 days after completing an audit, the governing body of a city, town, county or community college district to have the performer of the audit present the results and any findings to the body without the use of a consent agenda.
Background
The governing body of each incorporated city or town must cause a financial audit to be made by a certified public accountant who is certified by the Arizona State Board of Accountancy and is not an employee of the city or town. A financial audit must be made for each fiscal year for all cities and made at least once every two fiscal years for all incorporated towns and the audit must include financial transactions made during both fiscal years. The audit and the audit report must include all the accounts and funds of the city or town, including operating, special, utility, debt, trust and pension and all other money or property for which the city or town directly or indirectly responsible. The audit report must also include the professional opinion of the accountant or accountants with respect to the financial statements or a declaration of the reasons an opinion cannot be expressed (A.R.S. § 9-481).
The Auditor General (OAG) must prescribe a uniform expenditure reporting system for all political subdivisions subject to the constitutional expenditure limitation (A.R.S. § 41-1279.07). The financial statements required to be filed with the OAG must be posted in a prominent location on the official website of the county no later than seven days after the date of the filing of the financial statements with the OAG (A.R.S. § 11-661). Additionally, the OAG must determine the accounting systems, accounting methods and accounting procedures to be used by a community college district. The OAG, in conjunction with the community college districts, must prescribe a uniform system of accounting for use by all community college districts. The financial statements required to be filled with the OAG must be posted in a prominent location on the official website of the community college no later than seven business days after the date of filing of the financial statements with the OAG (A.R.S. § 15-1473).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the governing body of a city, town, county or community college district to have the results and findings of a statutorily required financial audit presented by the certified public accountant or auditor who conducted the audit at a regular meeting within 90 days of the audit's completion.
2. Prohibits the governing body of a city, town, county or community college district from using a consent agenda for the financial audit presentation.
3. Requires the governing body of a city, town, county or community college district to accept the financial audit results and any findings by a roll call vote.
4. Makes technical changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 3, 2021
MH/HF/gs