§ 14-234-119 - Annual audits and procedures. - Arkansas Statutes

14-234-119. Annual audits and procedures.

(a) Any county, municipality, improvement district, or not-for-profit association or entity receiving fees from customers for providing water or sewage services shall obtain an annual financial audit of the system if the system has at least five hundred (500) service connections during any fiscal year.

(b) (1) Any county, municipality, improvement district, or not-for-profit association or entity receiving fees from customers for providing water or sewage services and having at least one hundred (100) but less than five hundred (500) service connections during any fiscal year shall obtain an annual audit or an annual report of agreed-upon procedures.

(2) The agreed-upon procedures and format of the report shall be prescribed by the Legislative Auditor and shall include at a minimum:

(A) Proof and reconciliation of cash;

(B) Confirmation of cash balances;

(C) A statement of assets and liabilities on a cash basis;

(D) A statement of cash receipts and cash disbursements;

(E) A test of water and sewer revenues tracing deposits to source documents; and

(F) A report of agreed-upon procedures.

(c) Such audits or agreed-upon procedures reports shall be completed within one (1) year following each system's fiscal year end.

(d) Each such entity shall choose and employ accountants who are licensed and in good standing with the Arkansas State Board of Public Accountancy.