Resolution #2014-29 AUDITING REQUIREMENTS

BACKGROUND

Local government entities must undergo an audit if they receive revenues and financial assistance in excess of the threshold dollar amount established by the director of the office of management and budget pursuant to 31 U.S.C. 7502(a)(3). (2-7-503, MCA) At present the threshold dollar amount is $500,000. Local government entities include districts that barely exceed this threshold amount. They are required to have their relatively simple financial records audited and the cost of an audit is significant considering the amount of revenues and financial assistance they receive.

ACTION

The League will support legislation to increase the threshold amount for requiring an audit of a local government entity to an amount more in line with the total revenues and financial assistance.