Mont. Admin. r. 2.4.409 - ACTIONS BY GOVERNING BODIES TO RESOLVE OR CORRECT AUDIT FINDINGS AND PENALTY FOR FAILURE TO DO SO
(1) If a local
government entity does not submit its planned corrective measures to findings
reported in audit and financial review reports required by Title 2, chapter 7,
part 5, MCA, to the department within 30 days of the report issuance date, the
department shall notify the entity of the delinquency and publish notice of the
delinquency on the department's website.
(2) The department shall determine
acceptability of the local government entity's responses or planned corrective
measures based on the risks, facts, and circumstances of the findings and of
the entity.
(3) The planned
corrective measures must be responsive to the findings identified and provide
for a probable resolution of the findings within a reasonable period.
(4) If the department does not receive
acceptable corrective measures for findings the department deems to be
significant, the department may, in addition to its statutory remedies, request
additional details, supporting information, or evidence of implementation of
the corrective measures.
(5) The
department shall determine the significance of findings based on the risks to
the entity of a doubtful going concern, significantly distressed operations, or
a failure to protect a substantial public interest.
(6) Any financial assistance withheld must be
released to the local government entity once the department finds that the
local government entity has initiated or taken corrective measures sufficient
to provide for a probable resolution of the findings within a reasonable
period.
(7) The department shall
obtain the concurrence of the Superintendent of Public Instruction before
accepting or rejecting any planned corrective measures or withholding or
releasing any financial assistance of any school district or associated
cooperative.
(8) If the subsequent
audit report repeats a significant finding, the department shall withhold
financial assistance from the entity.
(9) The financial assistance withholding
process may be suspended if the entity demonstrates good cause for the failure
to resolve the finding or implement corrective measures. Good cause may be
demonstrated with sufficient evidence of:
(i)
the entity's good faith effort to implement corrective measures;
(ii) circumstances outside of the entity's
control; or
(iii) an inability to
address a finding or findings because of the passage of time.
(10) If the subsequent audit report
is delinquent, the department may withhold financial assistance until the
department receives the delinquent audit report that does not repeat a
significant finding.
(11) For those
local governments that are not required to have an audit for the subsequent
fiscal year, the department may require the entity to have a financial review
as defined in ARM
2.4.410.
The department shall determine the requirement for a financial review on a
case-by-case basis, based on the quality of supporting documentation received
from the entity to confirm corrective measures have been taken.
(12) The department shall notify all state
agencies any time the department issues an order to withhold or release
financial assistance.
Notes
AUTH: 2-7-515, MCA; IMP: 2-7-515, MCA
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