§ 9-1-507 — Examination of books of state institutions, agencies and certain districts and entities; independent audit authorized; guidelines

Wyoming § 9-1-507

• Jurisdiction: Wyoming
• Title 09: Administration of the Government
• Ch. 1: STATE OFFICERS
• Art. 5: DIRECTOR OF THE STATE DEPARTMENT OF AUDIT

Text

(a) The director of the state department of audit shall:
(i) Supervise the books, financial accounts and
financial records of all state agencies and institutions,
counties, school districts and municipalities within the state;
(ii) Repealed by Laws 1993, ch. 75, § 2.
(iii) Require state institutions, state agencies, the
entities described in W.S. 16-4-125(c), special districts and
other entities specified in W.S. 16-12-202(a) and incorporated
cities and towns with a population of less than four thousand
(4,000) inhabitants to file with the department such reports of
the books and accounts of the institution, agency, district or
entity as the director deems necessary. The director shall
promulgate rules under which special districts and entities
described in W.S. 16-4-125(c) or other entities specified in
W.S. 16-12-202(a) shall prepare and file an annual report of
their books and records with the department of audit. These
rules shall apply to special districts which are subject to
administration by the courts as provided in subsection (e) of
this section. These rules shall provide for different levels of
oversight, at the expense of the district, depending upon the
higher of the total revenues received or expenditures made by
the district during the fiscal year under review subject to the
following limitations:
(A) At least one million dollars
($1,000,000.00)-an audit by a certified public accountant shall
be required;
(B) At least one hundred thousand dollars
($100,000.00) but less than one million dollars
($1,000,000.00)-requirements shall be greater than those in
subparagraph (C) of this paragraph but less than those in
subparagraph (A) of this paragraph. The rules shall provide for
more stringent oversight requirements for districts with higher
total revenues within this range than the requirements for
districts with lower total revenues within this range;
(C) Less than one hundred thousand dollars
($100,000.00) but more than twenty-five thousand dollars
($25,000.00)-the only requirements shall be a proof of cash
procedure conducted by an independent third party with a
certification from two (2) authorized representatives of the
district that the proof of cash procedure was performed by the
independent third party in accordance with procedures required
by the director and that to the best of their knowledge the
financial information used was complete and accurate;
(D) Twenty-five thousand dollars ($25,000.00) or
less – the only requirement shall be the annual report of
district revenues, expenses and ending cash balance.
(iv) Require corrections of faults or erroneous
systems of accounting and when necessary instruct county and
municipal officers in the proper mode of keeping accounts;
(v) Perform an audit or specified procedures of any
books and records of any state institution, state agency,
incorporated city or town with a population of less than four
thousand (4,000) inhabitants or any special district or entity
described in W.S. 16-4-125(c) or other entities specified in
W.S. 16-12-202(a) whenever the director feels the audit or
procedures are necessary. In lieu of performing such audit or
procedures, the director may accept an audit or specified
procedures performed by a certified public accountant. Specified
procedures shall include procedures conducted under one (1) of
the following standards:
(A) Current government audit standards issued by
the United States comptroller general;
(B) Generally accepted principles and quality
standards formally approved by the Association of Inspectors
General;
(C) Standards recognized by the Institute of
Internal Auditors; or
(D) Standards recognized by the Association of
Certified Fraud Examiners.
(vi) Conduct performance measure reviews based on the
standards developed in W.S. 28-1-115(a)(ii)(A). The director
shall determine the means to be used to verify and validate the
performance measures. The results of the reviews shall be
reported to the agency head, governor and secretary of state;
(vii) Require counties, cities, towns and special
districts and entities described in W.S. 16-4-125(c) or other
entities specified in W.S. 16-12-202(a) in this state to report
to the department revenues received and expenditures made each
fiscal year. The reports shall be made not later than September
30 for the prior fiscal year. The format of the reports
required by this paragraph shall be established by the
department of audit by rule. Not later than December 31 of each
year, the department shall provide a copy of the report on
special districts and entities described in W.S. 16-4-125(c)
that receive funding from a municipality as defined by W.S. 16-
4-102(a)(xiv) or other entities specified in W.S. 16-12-202(a)
under this paragraph to the board of county commissioners for
each special district and other entity located in that county;
(viii) Beginning 2018, require each special district
and other entities specified in W.S. 16-12-202(a) in this state,
no matter how formed, except districts created by and subject to
administration by the courts, to report to the department and to
the county clerk of the county where the special district or
other specified entity is located its proposed budget for the
next fiscal year. If a special district or other specified
entity operates in multiple counties, the special district or
other specified entity may post the proposed budget
conspicuously on its website or file the proposed budget with
each county clerk of the counties in which the special district
or other specified entity operates. The report or posting shall
be made not later than June 1 of each year. The format of the
reports required by this paragraph shall be established by the
department of audit by rule no later than December 31, 2017;
(ix) In lieu of the rules described in subparagraphs
(iii)(A) through (D) of this subsection, fire protection and
water and sewer districts shall be required to comply with the
rules to provide for different levels of oversight as follows:
(A) At least one million dollars ($1,000,000.00)
- an audit by a certified public accountant shall be required;
(B) At least one hundred thousand dollars
($100,000.00) but less than one million dollars ($1,000,000.00)
- requirements shall be greater than those in subparagraph (C)
of this paragraph but less than those in subparagraph (A) of
this paragraph. The rules shall provide for more stringent
oversight requirements for districts with higher total revenues
within this range than the requirements for districts with lower
total revenues within this range;
(C) Less than one hundred thousand dollars
($100,000.00) but more than twenty-five thousand dollars
($25,000.00) - the only requirements shall be a proof of cash
procedure conducted by an independent third party with a
certification from two (2) authorized representatives of the
district that the proof of cash procedure was performed by the
independent third party in accordance with procedures required
by the director and that to the best of their knowledge the
financial information used was complete and accurate;
(D) Twenty-five thousand dollars ($25,000.00) or
less – the only requirement shall be the annual report of
district revenues, expenses and ending cash balance.
(b) Repealed by Laws 1993, ch. 75, § 2.
(c) Audit procedures performed on all state agencies,
institutions and municipalities as defined in W.S.
16-4-102(a)(xiv) within the state shall be performed in
accordance with current government audit standards issued by the
United States comptroller general and within the standards for
audit of governmental units as promulgated by the American
Institute of Certified Public Accountants.
(d) Repealed by Laws 2002, Ch. 26, § 2.
(e) The director may waive the oversight requirements of
paragraph (a)(iii) of this section for special districts created
by and subject to administration by the courts, if the district
provides to the director:
(i) An annual written request for a waiver within
thirty (30) days after the required annual filing of financial
information with the court;
(ii) A copy, certified by the court, of the receipts
and disbursements of the district for the fiscal year for which
the waiver is requested;
(iii) A copy of the annual budget with the court
authorized assessments for the year following the year for which
the waiver is requested;
(iv) Other information as the director may reasonably
require.
(f) No state agency or board shall impose requirements for
audit procedures to be performed upon any public entity
described in subsection (c) of this section which exceed the
requirements of subsection (c) of this section unless those
requirements have been authorized through rules or regulations
promulgated by the director of the department of audit and the
state agency or board provides funding for the additional audit
requirements.
(g) No state agency or board shall require of any
recipient of grants or funds, as a condition of receiving the
grant or funds, any audit procedures to be performed which
exceed the requirements in subsection (c) of this section unless
the state agency or board provides funding for the additional
audit requirements through a specific amount in the grant of
funds, or unless the requirements are specifically authorized by
statute. All state agencies and boards shall verify that all
applicants and recipients of state grants or loans are in
compliance with the applicable reporting requirement under
paragraph (a)(vii) of this section as a condition of receiving
the grant or loan. For purposes of this section, a state grant
or loan shall not be those grants or loans which include any
federal funds or monies paid in consideration for services
rendered to the state agency or board.
(h) The department of audit shall have authority to
promulgate rules and regulations to carry out the provisions of
the audit procedures authorized by this section including,
unless otherwise provided, setting the dollar limits at which
audits authorized under subsections (f) and (g) of this section
are to be performed for governmental entities in this state and
any recipient of state funds.
(j) The director of the department of audit shall certify:
(i) Repealed by Laws 2024, ch. 48, § 2.
(ii) To the director of the state department of
revenue by October 5 of each year, a list of counties, cities
and towns that failed to comply with paragraph (a)(vii) of this
section. Notwithstanding any other provision of law, the
director of the department of revenue shall withhold monthly
disbursements of state and local sales, use and lodging tax
revenues under W.S. 39-15-111, 39-15-211, 39-16-111 and 39-16-
211 to the noncompliant county, city or town for the period
after October 15 until the noncompliant county, city or town has
come into compliance unless good cause for noncompliance is
shown to the director of the department of audit as described in
W.S. 9-1-510(b). All withheld disbursements under this paragraph
shall be retained by director of the department of revenue in
the account from which the disbursement would be made until the
county, city or town is in compliance with paragraph (a)(vii) of
this section, or as otherwise provided by law. The director of
the department of audit shall certify to the director of the
department of revenue when a county, city or town comes into
compliance with paragraph (a)(vii) of this section. The director
of the department of revenue shall certify monthly to the
department of audit, the legislature and the noncompliant
county, city or town the amount of disbursements withheld until
the noncompliant county, city or town has come into compliance;
(iii) Repealed by Laws 2024, ch. 48, § 2.
(iv) To the board of county commissioners and to the
special district or entity described in W.S. 16-4-125(c) that
receives funding from a municipality as defined by W.S. 16-4-
102(a)(xiv) or other entities specified in W.S. 16-12-202(a) by
October 5 of each year any special district or other entity in
the county, no matter how formed, that failed to comply with
paragraph (a)(vii) of this section. If, by November 30 of that
same year, the district or other entity has failed to comply
with paragraph (a)(vii) of this section, the director of the
department of audit shall file notice with the county
commissioners, the county treasurer and the county clerk. The
county commissioners shall place a public notice in a newspaper
of general circulation in the county indicating the special
district or other entity is in danger of being dissolved due to
failure to comply with the legal reporting requirements. The
county commissioners shall assess the special district or other
entity the cost of the public notice. Notwithstanding any other
provision of law, the county treasurer shall withhold any
further disbursements of money to the district or other entity
until the department certifies to the county treasurer that the
district or other entity has complied with all reporting
requirements unless good cause for noncompliance is shown to the
director of the department of audit as described in W.S. 9-1-
510(b). If the special district or other entity fails to file
the required report on or before December 30 of that same year,
the county commissioners shall seek to dissolve the special
district or other entity in accordance with the process
described by W.S. 22-29-401 et seq. This paragraph shall apply
in addition to any other provision for dissolution in the
principal act for a special district or other entity. The county
treasurer shall certify monthly to the department of audit, the
legislature and the noncompliant district or entity the amount
of disbursements withheld until the noncompliant district or
entity has come into compliance.
(k) The director of the department of audit shall report
on or before December 31 of each year to the governor and the
legislature, financial information regarding counties, cities,
towns and special districts. The information shall be obtained
from the annual reports collected from the required reports in
this section and shall be in a form required by the director.
The annual reports and the required reports in this section
shall be open for public inspection.
(m) The director of the department of audit shall have the
authority to obtain the financial and criminal background of any
employee or employment applicant of the department in accordance
with W.S. 7-19-106 and 7-19-201.
(n) The director of the department of audit shall have the
authority to appoint a public funds administrator who shall
serve at the pleasure of the director. The administrator shall
have not less than seven (7) years of experience holding all the
requirements to practice as a certified public accountant or
certified internal auditor. The administrator shall assist the
director in his duties to supervise books, financial accounts
and financial records of all state agencies and institutions,
counties, school districts and municipalities within this state.