A. Each county of this state shall every two (2) years have an audit made by the State Auditor and Inspector or a duly appointed deputy or deputies of all of the books, records and accounts of all the officers of each county of this state, which audit shall be general in its nature and shall include an audit of the books, records and accounts of all officers who collect or disburse monies, fees, fines or public charges of any kind including therein a tax roll audit, a claim audit, and an audit of each of the justices of peace within the county.

B. 1. For purposes of this subsection, an audit shall be a financial or performance audit defined as follows:

a.the financial audit shall be planned and conducted, and the results of the work reported, in accordance with auditing standards generally accepted in the United States and Government Auditing Standards issued by the Comptroller General of the United States,

b.the performance audit shall be planned and conducted, and the results of the work reported, in accordance with Government Auditing Standards issued by the Comptroller General of the United States. The performance audit shall encompass an audit of internal controls and compliance with laws and regulations based on an individual risk assessment.

The type of audit to be performed will be determined by the State Auditor and Inspector.

2. Unless the county elects to prepare its financial statement in accordance with Generally Accepted Accounting Principles as prescribed by the Governmental Accounting Standards Board, the county shall present their financial statements in a regulatory basis of accounting as prescribed in subsection C of this section.

C. 1. For county, primary government only, financial audits, the financial statements shall be presented on a fund-basis format with, at a minimum, the general fund and all other county funds which represent ten percent (10%) or greater of total county revenue. All other funds included in the audit shall be presented in the aggregate.

2. The financial statements shall include but not be limited to the following:

a.a statement of revenues or receipts, expenditures or disbursements, and changes in cash balances for the funds identified in the preceding paragraph, and

b.notes to the financial statements.

D. The report shall include but not be limited to the following supplemental information:

1. A combining schedule detailing by fund the information presented in the aggregate;

2. A comparison of the final adopted budget to the actual expenditures for all funds required by law to have an adopted budget; and

3. Notes to the budget to actual schedule.

E. An audit may include a performance audit, a financial audit, agreed-upon procedures, or limited review of the books and records. In addition to the above, the State Auditor and Inspector may require an audit of the books and records of any county official or custodian of any of the funds of the county upon the death, resignation or removal from office of the county official, covering a period from the date of the last general audit up to the date of the death, resignation or removal therefrom.

F. Each biennial county audit shall cover the two preceding fiscal years beginning as of July 1st immediately preceding the year in which the appropriation is made for the general audit, provided, that nothing herein shall prevent the State Auditor and Inspector from causing an audit to be made for any prior year of all the books, records and accounts of the county official.

Added by Laws 1933, c. 40, p. 77, § 1, emerg. eff. May 2, 1933. Amended by Laws 1979, c. 30, § 69, emerg. eff. April 6, 1979; Laws 2007, c. 132, § 2, eff. Nov. 1, 2007; Laws 2011, c. 18, § 1, eff. July 1, 2011.