11.2 - ANNUAL SETTLEMENTS.
11.2 ANNUAL SETTLEMENTS.
1. The auditor of state shall annually, and more often if deemed
necessary, make a full settlement between the state and all state
officers and departments and all persons receiving or expending state
funds, and shall annually make a complete audit of the books and
accounts of every department of the state.
a. Provided, that the accounts, records, and documents of the
treasurer of state shall be audited daily.
b. Provided further, that a preliminary audit of the
educational institutions and the state fair board shall be made
periodically, at least quarterly, to check the monthly reports
submitted to the director of the department of administrative
services as required by section 8A.502, subsection 9, and that a
final audit of such state agencies shall be made at the close of each
fiscal year.
2. In conjunction with the audit of the state board of regents
required under this section, the auditor of state, in accordance with
generally accepted auditing standards, shall perform audit testing on
the state board of regents' investments. The auditor shall report to
the state board of regents concerning compliance with state law and
state board of regents' investment policies. The state board of
regents is responsible for remedying any reported noncompliance with
its own policy or practices.
a. The state board of regents shall make available to the
auditor of state and treasurer of state the most recent annual report
of any investment entity or investment professional employed by an
institution governed by the board.
b. All contracts or agreements with an investment entity or
investment professional employed by an institution governed by the
state board of regents shall require the investment entity or
investment professional employed by an institution governed by the
state board of regents to notify in writing the state board of
regents within thirty days of receipt of all communication from an
independent auditor or the auditor of state or any regulatory
authority of the existence of a material weakness in internal control
structure, or regulatory orders or sanctions against the investment
entity or investment professional, with regard to the type of
services being performed under the contracts or agreements. This
provision shall not be limited or avoided by another contractual
provision.
c. The audit under this section shall not be certified until
the most recent annual reports of any investment entity or investment
professional employed by an institution governed by the state board
of regents are reviewed by the auditor of state.
d. The review of the most recent annual report to
shareholders of an open-end management investment company or an
unincorporated investment company or investment trust registered with
the federal securities and exchange commission under the federal
Investment Company Act of 1940, 15 U.S.C. § 80(a), pursuant to 17
C.F.R. § 270.30d-1 or the review, by the person performing the audit,
of the most recent annual report to shareholders, call reports, or
the findings pursuant to a regular examination under state or federal
law, to the extent the findings are not confidential, of a bank,
savings and loan association, or credit union shall satisfy the
review requirements of this paragraph.
e. As used in this subsection, "investment entity" and
"investment professional" exclude a bank, savings and loan
association, or credit union when acting as an approved depository
pursuant to chapter 12C. Section History: Early Form
[C97, § 161; S13, § 161-a; C24, 27, 31, § 340; C35, § 101-a2; C39,
§ 101.2; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 11.2]
Section History: Recent Form
92 Acts, ch 1156, §1; 2003 Acts, ch 145, §131; 2007 Acts, ch 126,
§4; 2008 Acts, ch 1032, § 201
Referred to in § 24.24, 262.14, 422.72