4.0412 Audit procedures and requirements.

Cite as [A.S.C.A. § 4.0412 ]

(a) At the conclusion of an audit, the Territorial Auditor or his designee shall discuss the audit with the officials whose agency, grant, contract, or activity was subjected to the audit and submit to them a list of his proposed findings which may be included in the audit report. The preliminary audit and proposed findings shall not be made public prior to the receipt of comments from the agencies solicited. If the officials are not available for personal receipt of the list of audit findings, then delivery shall be deemed made when it is delivered to the agency. The agency shall submit to the Territorial Auditor within 30 days after the receipt of the list of findings its written statement of explanation or rebuttal concerning any of the adverse or critical audit findings, including any corrective action to be taken to preclude a recurrence of any adverse findings. The Territorial Auditor shall publish the substance of the agency response in the audit report.

(b) An audit report shall make special mention of:

(1) any apparent violation of laws within the scope of the audit; and

(2) any improper expenditures, any improper accounting procedures, all failures to properly record financial transactions, and all other inaccuracies, irregularities, shortages, and defalcations.

(c) Specific allegations naming a person involved in improper or illegal acts found in connection with an audit shall be included in a separate confidential special report which

shall be transmitted only to the attorney general and federal agencies when applicable.

History: 1985, PL 19-21 § 1.