Administrative Rule Review Report  #AR07-039

Legislative Service Office

11-Jul-07

AGENCY: Department of Audit, Public Funds Division.

DATE SUBMITTED: July 10, 2007.

SUBJECT: Chapters 1 through 8, Public Funds Audit Rules.

NATURE OF RULES:                   Legislative, Procedural

STATUTORY AUTHORITY:        W.S. 9-1-507

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION

SUBMITTED BY THE AGENCY TO LSO:  Apparently complete to date.

SUMMARY OF RULES:  The general purpose of the rules amended are to establish a system that will allow the director of the department of audit to ensure that public funds are being properly accounted for by certain public entities.  The existing rules are amended by increasing the amount of total revenue that would require a review level engagement or a higher level of audit service from $300,000 to $500,000.  The rules also add a lower level of review for special districts with total revenue that is less than $25,000.  Chapter 8 of the existing rules establishing an accounting system for money received and disbursed by circuit and justice courts is deleted, justice courts were deleted from statute in 2004 and W.S. 5-9-151 governing circuit courts was amended in 2005 so that the circuit court must submit accounts pursuant to rules prescribed by the supreme court rather than regulations promulgated by the department of audit.  The rules delete semi annual reports required of depositories of public funds which have pledged conventional real estate mortgages and also delete certain items that must be held when real estate mortgages have been pledged.  The rules delete the requirement that comparative memorandum totals must be included in the balance sheet if an audit was not performed for the prior year.  The rules also make other grammar corrections.

FINDINGS:  The rules appear to be within the scope of statutory authority and legislative intent.

STAFF RECOMMENDATION:  That the rules be placed on the Consent List and approved by the Council as submitted by the Agency.

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Joshua Anderson

Research Associate

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David K. Gruver

Assistant Director

JDA/