11.36 - REVIEW OF ENTITIES RECEIVING PUBLIC MONEYS.
11.36 REVIEW OF ENTITIES RECEIVING PUBLIC MONEYS.
1. The auditor of state may, at the request of a department,
review, during normal business hours upon reasonable notice of at
least twenty-four hours, the audit working papers prepared by a
certified public accountant covering the receipt and expenditure of
state or federal funds provided by the department to any other entity
to determine if the receipt and expenditure of those funds by the
entity is consistent with the laws, rules, regulations, and
contractual agreements governing those funds. Upon completion of the
review, the auditor of state shall report whether, in the auditor of
state's judgment, the auditor of state believes the certified public
accountant's working papers adequately demonstrate that the laws,
rules, regulations, and contractual agreements governing the funds
have been substantially complied with. If the auditor of state does
not believe the certified public accountant's working papers
adequately demonstrate that the laws, rules, regulations, and
contractual agreements have been substantially complied with or
believes a complete or partial reaudit is necessary based on the
provisions of section 11.6, subsection 4, paragraph "a",
subparagraph (1) or (2), the auditor of state shall notify the
certified public accountant and the department of the actions the
auditor of state believes are necessary to determine whether the
entity is in substantial compliance with those laws, rules,
regulations, and contractual agreements. The auditor of state may
assist departments with actions to determine whether the entity is in
substantial compliance. Departments requesting the review shall
reimburse the auditor of state for the cost of the review and any
subsequent assistance provided by the auditor of state.
2. The auditor of state may, at the request of a department,
review the records covering the receipt and expenditure of state or
federal funds provided by the department to any other entity which
has not been audited by a certified public accountant to determine if
the receipt and expenditure of those funds by the entity is
consistent with the laws, rules, regulations, and contractual
agreements governing those funds. Upon completion of the review, the
auditor of state shall report whether, in the auditor of state's
judgment, the auditor of state believes the entity adequately
demonstrated that the laws, rules, regulations, and contractual
agreements governing the funds have been substantially complied with.
If the auditor of state does not believe the entity adequately
demonstrated that the laws, rules, regulations, and contractual
agreements have been substantially complied with, the auditor of
state shall notify the department of the actions the auditor of state
believes are necessary to determine whether the entity is in
substantial compliance with those laws, rules, regulations, and
contractual agreements. The auditor of state may assist a department
with actions to determine whether the entity is in substantial
compliance. Departments requesting the review shall reimburse the
auditor of state for the cost of the review and any subsequent
assistance provided by the auditor of state.
3. When, in the auditor of state's judgment, the auditor of state
finds that sufficient information is available to demonstrate that an
entity receiving state or federal funds from a department may not
have substantially complied with the laws, rules, regulations, and
contractual agreements governing those funds, the auditor of state
shall notify the department providing those funds to the entity of
the auditor of state's finding. The department shall cooperate with
the auditor of state to establish actions to be taken to determine
whether substantial compliance with those laws, rules, regulations,
and contractual agreements has been achieved by the entity receiving
the state or federal funds from the department. Departments
providing the state or federal funds shall reimburse the auditor of
state for any actions taken by the auditor of state to determine
whether the entity has substantially complied with the laws, rules,
regulations, and contractual agreements governing the funds provided
by the department for costs expended after the date the auditor of
state notifies the department of an issue involving substantial
compliance pursuant to the requirements of this subsection. Section History: Early Form
[C81, § 7A.8] Section History: Recent Form
C87, § 11.36
2006 Acts, ch 1153, §10; 2007 Acts, ch 22, §4; 2008 Acts, ch 1032,
§193
See also § 216A.98