9-481. Audits of cities and towns; posting; budget

A. The governing body of each incorporated city or town shall cause an audit to be made by a certified public accountant who is currently certified by the Arizona state board of accountancy or who has a limited reciprocity privilege pursuant to section 32-725 and who is not an employee of the city or town. Audits shall be made for each fiscal year for all incorporated cities. Audits shall be made at least once for every two fiscal years for all incorporated towns, and the audit shall include financial transactions during both fiscal years.

B. The audit and the audit report shall include all of the accounts and funds of the city or town, including operating, special, utility, debt, trust and pension, and all other money or property for which the city or town, or any department or officer of the city or town, is responsible either directly or indirectly. The audits shall be made in accordance with generally accepted auditing standards. The consequent audit report shall contain financial statements that are in conformity with generally accepted municipal accounting principles and shall set forth the financial position and results of the operations for each fund and account of the city or town. The audit report shall also include the following:

1. The professional opinion of the accountant or accountants with respect to the financial statements or, if an opinion cannot be expressed, a declaration of the reasons an opinion cannot be expressed.

2. A determination as to whether highway user revenue fund monies received by the city or town pursuant to title 28, chapter 18, article 2 and any other dedicated state transportation revenues received by the city or town are being used solely for the authorized transportation purposes.

C. The audit shall begin as soon as possible after the close of the fiscal year, although interim auditing may be performed during the year or years under audit. The audit shall be completed and the final audit report shall be submitted within six months after the close of the fiscal year or years audited.

D. At least three copies of the audit report shall be signed by the auditor and filed with the city or town. The city or town shall immediately do the following:

1. Make one copy of the report a public record that is open to the public for inspection.

2. File one copy of the report with the auditor general pursuant to section 41-1279.07, subsection C.

3. Submit one copy of the report to the secretary of state.

E. The financial statements required to be filed with the auditor general pursuant to section 41-1279.07, including the audit report, must be posted in a prominent location on the official website of the city or town no later than seven business days after the date of filing the financial statements with the auditor general. The financial statements must be retained and accessible in a prominent location on the official website for at least sixty months. If the financial statements are not filed pursuant to section 41-1279.07, the form as prescribed by subsection F of this section shall be posted on the website of the city or town in place of the financial statements until the financial statements are filed.

F. If the financial statements for a city or town are not completed and filed as prescribed by section 41-1279.07 on or before the adoption of the city or town budget in the subsequent fiscal year, the governing body shall include a form, as prescribed by the auditor general, in the published budget in the subsequent fiscal year pursuant to sections 42-17103 and 42-17105 stating that the financial statements required to be filed with the auditor general pursuant to section 41-1279.07 are pending, the reasons for the delay and the estimated date of completion.

G. If the governing body of a city or town is required to complete the form as prescribed by subsection F of this section, the governing body shall send a copy of the form to the auditor general, the speaker of the house of representatives and the president of the senate.