2.4.101 | INTRODUCTION |
This rule has been repealed.
2.4.102 | TRAVEL GUIDELINES |
This rule has been repealed.
2.4.103 | REIMBURSABLE EXPENSES |
This rule has been repealed.
2.4.104 | APPLICABLE STATE STATUTES |
This rule has been repealed.
2.4.105 | DEPARTURE AND RETURN TIME |
This rule has been repealed.
2.4.111 | USE OF STATE-OWNED VEHICLES |
This rule has been repealed.
2.4.112 | USE OF PERSONAL VEHICLES--REIMBURSEMENT RATES--GENERAL REQUIREMENTS |
This rule has been repealed.
2.4.113 | USE OF PERSONAL VEHICLES--REIMBURSEMENT AT STANDARD RATE |
This rule has been repealed.
2.4.114 | USE OF PERSONAL VEHICLES--REIMBURSEMENT AT HIGH RATE |
This rule has been repealed.
2.4.115 | USE OF PERSONAL VEHICLES--EXEMPTIONS |
This rule has been repealed.
2.4.116 | PERSONAL VEHICLE USE AUTHORIZATION FORM--WHERE OBTAINED |
This rule has been repealed.
2.4.121 | STATE AIRCRAFT |
This rule has been repealed.
2.4.126 | MEAL REIMBURSEMENT GENERALLY |
This rule has been repealed.
2.4.127 | MEAL REIMBURSEMENT--DEFINITION OF "TRAVEL SHIFT" |
This rule has been repealed.
2.4.128 | MEAL REIMBURSEMENT--TIME RANGES |
This rule has been repealed.
2.4.129 | MEAL REIMBURSEMENT FOR TRAVEL WITHIN TRAVEL SHIFT |
This rule has been repealed.
2.4.130 | MEAL REIMBURSEMENT FOR TRAVEL ONE-HALF OUTSIDE TRAVEL SHIFT |
This rule has been repealed.
2.4.131 | MEAL REIMBURSEMENT FOR TRAVEL OUTSIDE TRAVEL SHIFT |
This rule has been repealed.
2.4.136 | REIMBURSEMENT FOR RECEIPTABLE LODGING |
This rule has been repealed.
2.4.137 | REIMBURSEMENT FOR NONRECEIPTABLE LODGING |
This rule has been repealed.
2.4.138 | NO REIMBURSEMENT FOR PROVIDED LODGING |
This rule has been repealed.
2.4.141 | REIMBURSEMENT FOR MISCELLANEOUS TRAVEL EXPENSES |
This rule has been repealed.
2.4.146 | OUT-OF-COUNTRY TRAVEL |
This rule has been repealed.
2.4.147 | CHANGE IN TRAVEL STATUS |
This rule has been repealed.
2.4.148 | SPECIAL IN-LIEU ALLOWANCES |
This rule has been repealed.
2.4.149 | TRAVEL TIME ALLOWED |
This rule has been repealed.
2.4.150 | USE OF TRANSPORTATION PURCHASE ORDER FOR COMMERCIAL TRANSPORTATION |
This rule has been repealed.
2.4.151 | TRAVEL ADVANCES |
This rule has been repealed.
2.4.152 | TRAVEL EXPENSE VOUCHER, FORM DA-101 |
This rule has been repealed.
2.4.153 | TRAVEL EXPENSE VOUCHER--FREQUENCY OF FILING |
This rule has been repealed.
2.4.154 | TRAVEL EXPENSE VOUCHER--SUPERVISOR'S APPROVAL REQUIRED |
This rule has been repealed.
2.4.201 | MINIMUM REFUND |
This rule has been repealed.
2.4.202 | EXCEPTIONS TO MINIMUM REFUND RULE |
This rule has been repealed.
2.4.301 | VOLUME CAP ALLOCATION |
(1) The Department of Administration sets the state of Montana's volume cap as the maximum amount allowed by the Internal Revenue Service.
2.4.401 | ACCOUNTING AND FINANCIAL REPORTING STANDARDS |
(1) Except as provided in (2), all local government entities, as defined by 2-7-501(7), MCA, shall adhere to the accounting and financial reporting standards applicable to the reporting period adopted by the Governmental Accounting Standards Board (see ARM 2.4.411).
(2) If approved by the department, a local government entity shall adhere to the provisions described in the Small Government Financial Reporting Framework instead of the provisions provided in (1). The department shall not approve an application to report in accordance with the Small Government Financial Reporting Framework if the following circumstances are known to the department:
(a) the local government entity is subject to a compliance requirement prescribing the use of the provisions of (1); or
(b) the local government entity has a population of 5,000 or more as reported in the most recent decennial survey issued by the United States Census Bureau.
(3) The reporting provisions of the Small Government Financial Reporting Framework include:
(a) all aspects of accounting and reporting in accordance with generally accepted accounting principles, updated through June 30, 2019, as defined by the Governmental Accounting Standards Board, or its successor, excluding the following:
(i) the government-wide statement of net position and the government-wide statement of activities, which also excludes:
(A) reporting of discretely presented component units;
(B) reconciliations related to the government-wide statements; and
(C) notes related to the government-wide financial statements;
(ii) actuarially determined post-employment benefit information, which also excludes:
(A) recognition of non-employer contributions;
(B) related notes to the financial statements; and
(C) related required supplementary information;
(iii) the following supplementary information required by the Governmental Accounting Standards Board:
(A) the management's discussion and analysis;
(B) certain revenue and claims development information of public entity risk pools; and
(C) the schedules of assessed condition and estimated and actual maintenance and preservation costs for the modified approach for infrastructure assets;
(b) financial statements must include as basic financial statements:
(i) a statement of changes in governmental capital assets; and
(ii) a statement of changes in governmental long-term debt;
(c) financial statements must include major fund budgetary comparison information, including related required notes, as supplementary information, as defined by the Governmental Accounting Standards Board, when applicable; and
(d) financial statements must include the schedules of proportionate shares and required contributions, excluding related notes, prepared for the local government entity by the Montana Public Employee Retirement Administration and the Montana Teachers' Retirement System as other information, when applicable.
2.4.402 | REPORT FILING FEE |
(1) A local government filing fee is based on the following definitions:
(a) "Annual" means the fiscal year of the local government entity.
(b) "Revenues" means all receipts or inflows of resources from any source excluding the proceeds from bond issuances and other long-term debt not received from state or federal sources.
(i) Revenues must be based on the recognition criteria of the financial reporting framework presented in the audit report.
(ii) Revenues may be provisionally based on amounts presented in the financial report required by 2-7-503, MCA, until such time that the audit report for the same period is issued.
(iii) The department and the local government entity shall settle the balance of any resulting difference in the filing fee when the audited revenues are available.
(iv) When applicable, revenues do not include receipts or inflows of resources presented in the following types of financial statements:
(A) governmentwide;
(B) investment trust funds; or
(C) custodial funds.
(2) For school districts and associated cooperatives:
(a) revenues are based on the recognition criteria of the financial reporting framework presented in the annual financial report required by the Superintendent of Public Instruction;
(b) in the case of combined elementary and high school districts, the annual filing fee is based upon the combined annual revenue amounts of both districts; and
(c) in the case of school districts and associated cooperatives having an audit covering two fiscal years, the department shall calculate a separate fee based on the annual revenue amounts for each fiscal year covered by the audit.
(3) The annual filing fees for local government entities are:
Annual Revenues in Excess of: | Annual Revenues Equal to or Less Than: | Fee |
$750,000 | $1,000,000 | $550 |
$1,000,000 | $1,500,000 | $800 |
$1,500,000 | $2,500,000 | $950 |
$2,500,000 | $5,000,000 | $1,300 |
$5,000,000 | $10,000,000 | $1,700 |
$10,000,000 | $50,000,000 | $2,500 |
$50,000,000 | $3,000 |
This filing fee schedule is effective for annual financial reports due on or after July 1, 2017.
2.4.403 | PENALTIES FOR FAILING TO FILE REPORTS WITHIN PRESCRIBED TIME |
(1) The department shall assess a monthly penalty of 10 percent of the required filing fee established in ARM 2.4.402 when a local government entity does not submit by the due date the annual financial report required by 2-7-503, MCA.
(a) If the filing fee applicable to the reporting period is not known to the department, the department shall use the filing fee of the most recent reporting period available to calculate the late submission penalty.
(b) If the local government entity is not required to pay a filing fee, the late submission penalty must be calculated using the minimum filing fee.
(2) Rather than imposing the late submission penalty established in (1), the department may issue an order to withhold payment of any state financial assistance to the local government entity. The department shall notify state agencies of the order.
(a) Upon receipt of the required report, the department shall release any financial assistance withheld pursuant to the department's order to the local government entity.
(3) The department shall assess a $75 fine and provide public notice when a local government entity fails to file a report required by 2-7-503, MCA, within 180 days of the due date. Public notice means publishing in the local newspaper, if available, and posting on the department's website: https://sfsd.mt.gov/LGSB.
2.4.404 | PENALTY FOR FAILING TO PAY FILING FEE WITHIN 60 DAYS OF DUE DATE |
(1) The department shall assess a monthly penalty equal to 10 percent of the required filing fee in ARM 2.4.402 when a local government entity does not submit the filing fee required by 2-7-514, MCA, within 60 days of the due date.
(a) If the revenues and filing fee applicable to the reporting period have not been reported or are not known, the department shall use the filing fee of the most recent reporting period available to calculate the late filing fee penalty.
(2) Rather than imposing the late payment penalty established in (1), the department may issue an order to withhold payment of any state financial assistance to the local government entity.
(3) Upon receipt of the required filing fee, the department shall notify each state agency that any financial assistance withheld pursuant to the department's order has been released to the local government entity.
2.4.405 | AUDIT AND AUDIT REPORTING STANDARDS |
(1) When applicable, audits and audit reporting must conform to the requirements of the Federal Single Audit Act of 1984 as amended by the Single Audit Act Amendments of 1996 (P.L. 104-156) and the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as published in the Federal Register, Volume 78, No. 248 (see ARM 2.4.411).
(2) When approved by the department, audits and audit reporting of financial statements prepared in accordance with a small government financial reporting framework must apply the reporting requirements provided in ARM 2.4.401.
2.4.406 | ROSTER OF INDEPENDENT AUDITORS AUTHORIZED TO CONDUCT AUDITS OF LOCAL GOVERNMENT ENTITIES |
(1) To conduct audits of local government entities, an independent auditor must be on the department’s roster of authorized independent auditors.
(2) To be placed on the roster, an auditor shall complete a department-prescribed application form and meet the criteria in this rule.
(3) Auditors with separate offices shall submit separate application forms for each office that is to be separately identified on the roster.
(4) To be eligible for inclusion on the roster, an auditor must:
(a) if an individual, hold a current license to practice public accounting under 37-50-314, MCA;
(b) if a firm that has established or maintained offices in this state for the practice of public accounting, register annually as provided under 37-50-335, MCA;
(c) if a firm that does not have an office in this state, comply with the requirements contained in 37-50-335, MCA;
(d) meet the continuing education requirements specified in Government Auditing Standards, as established by the Comptroller General of the United States;
(e) have an external quality control review at least once every three years that meets the requirements specified in Government Auditing Standards, as established by the Comptroller General of the United States, and receive a peer review rating of "pass" or "pass with deficiencies" from the reviewing firm, team, or association;
(i) a firm that undergoes a board-sanctioned compliance or peer review process and receives a provisional pass with deficiencies rating must complete, or be in the process of completing, all required remediation required by the peer review program administrator;
(ii) upon request, firms with provisional pass with deficiencies ratings shall provide the department all interim and final communications with the peer review program administrator relating to the firm's remedial activities;
(f) not have been restricted in the conduct of governmental auditing by the Montana Board of Public Accountants;
(g) not have been debarred, suspended, proposed for debarment, declared ineligible, or otherwise excluded from performing audits by any state or federal department or agency; and
(h) not have been deemed ineligible to conduct local government entity audits by the department because of failure:
(i) to conduct local government entity audits under contract with the department during the previous two years in accordance with the audit standards described in 2-7-513, MCA, or ARM 2.4.405 or;
(ii) during the previous two years to adhere to the terms and conditions of an audit contract with the department.
(5) An auditor may be removed by the department from the roster for failure to continue to meet the eligibility requirements specified above.
(6) If an auditor is removed from the roster as provided in (5), the auditor must complete the application form prescribed by the department, meet the eligibility requirements set out in (4), and pay the fee specified in (9) to again be placed on the roster.
(7) To remain on the roster, an auditor shall complete and submit to the department on or before June 30 of each year a renewal form certifying that the individual or firm continues to meet the eligibility requirements specified above.
(8) To ensure that each auditor meets the eligibility requirements specified above, the department may, at any other time during the year, require the auditor to submit evidence that the auditor meets the above eligibility requirements, including, but not limited to, documentation of required continuing professional education and the required external quality control review.
(9) At the time of original application for placement on the roster and at the time the annual renewal form is submitted, each office separately identified on the roster shall pay to the department a fee of $100.
(10) If an auditor is removed from or does not renew to the roster, all contracts under the provisions of 2-7-506, MCA, to which the auditor is a party are terminated. If an auditor is removed from the roster, the department will not refund any portion of the roster application fee.
(11) Upon the department’s notification of the termination of a contract for a local government entity audit, the local government entity shall select another auditor from the roster and present a signed contract to the department for approval within 90 days of notification of the termination.
2.4.407 | CRITERIA FOR THE SELECTION OF THE INDEPENDENT AUDITOR |
(a) listing on department's roster of independent auditors authorized to conduct local government audits;
(b) independence, as defined by applicable auditing standards;
(c) demonstrated understanding of the work to be performed;
(d) technical experience of the independent auditor in conducting similar types of local government entity audits;
(e) qualifications of staff to be assigned to the audit;
(f) work history of the independent auditor; and
(g) the proposed audit fee.
(2) The department may require the local government entity to demonstrate that the independent auditor selected is qualified to conduct the audit based on an evaluation of:
(a) the criteria established in (1);
(b) any additional information requested by and used by the local government entity in selecting the independent auditor; and
(c) the results of oral interviews of independent auditors conducted by the local government entity, if appropriate.
2.4.408 | AUDIT CONTRACTS |
This rule has been repealed.
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 responses or planned corrective measures to findings reported in audit 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:
(a) the entity's good faith effort to implement corrective measures;
(b) circumstances outside of the entity's control; or
(c) 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.
2.4.410 | FINANCIAL REVIEWS |
(1) A "financial review" is defined as an agreed-upon procedures engagement in which an independent auditor issues a report of findings based on specific procedures in accordance with standards established by the American Institute of Certified Public Accountants (see ARM 2.4.411). The procedures to be performed during the financial review of a local government entity are prescribed by the department and specified in the contract referred to in (3).
(2) Financial reviews of a local government entity conducted at the direction of the department must be performed either by an independent auditor who is on the department's roster of independent auditors authorized to conduct audits of local government entities or by the department.
(3) Financial reviews required by the department must be performed pursuant to a contract. Work may not commence under the contract until it is signed by the department. All contracts for conducting financial reviews must be in a form prescribed by the department.
(4) The compensation to the independent auditor for conducting a financial review must be agreed upon by the local government entity and the independent auditor and must be paid in the manner that other claims against the local government entity are paid. If performed by the department, the department shall charge the local government entity an hourly rate to cover the costs of performing the financial review.
(5) An administrative fee of $75 will be charged to each entity required to have a financial review. Entities required to have a financial review will be notified in writing. The administrative fee is due within six months of the entity’s fiscal year end.
(6) The independent auditor shall file copies of the financial review report with the department. In the case of school districts or associated cooperatives, the independent auditor shall also file a copy of the review report with the Superintendent of Public Instruction.
(7) The provisions of 2-7-515, MCA, and ARM 2.4.409, regarding the actions of local government governing bodies to resolve and correct audit findings and the penalty for failure to do so apply to financial review reports.
(8) The provisions of 2-7-522, MCA, regarding audit report reviews by the department apply to financial review reports.
2.4.411 | INCORPORATION BY REFERENCE OF VARIOUS STANDARDS, ACCOUNTING POLICIES, AND FEDERAL LAWS AND REGULATIONS |
(1) The department adopts and incorporates by reference the Codification of Governmental Accounting and Financial Reporting Standards, updated through June 30, 2019, adopted by the Governmental Accounting Standards Board as the required standards for counties, cities, and towns, as provided by ARM 2.4.401.
(a) The standards incorporated by reference in (1) contain the generally accepted accounting principles to be followed by state and local governments and the financial reporting requirements to be utilized by those governments.
(b) The Codification of Governmental Accounting and Financial Reporting Standards adopted by reference in (1) may be obtained from the Governmental Accounting Standards Board, P.O. Box 5116, Norwalk, CT 06856-5116.
(2) The department adopts and incorporates by reference the Government Auditing Standards, 2011 and 2018 revisions, established by the Comptroller General of the United States, as provided by ARM 2.4.406.
(a) Government Auditing Standards incorporated by reference in (2) contain standards to be followed by an independent auditor in conducting financial audits of local government entities, including general standards, field work standards, and reporting standards.
(3) The department adopts and incorporates by reference the Federal Single Audit Act of 1984 as amended by the Single Audit Act Amendments of 1996 (P.L. 104-156) and Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as published in the Federal Register, Volume 78, No. 248, as provided by ARM 2.4.405.
(a) The Federal Single Audit Act of 1984, as amended by the Single Audit Act Amendments of 1996 and the Title 2 CFR Part 200 (Uniform Guidance), provide audit requirements for ensuring that federal funds are expended properly and are used in compliance with federal requirements.
(b) The Federal Single Audit Act of 1984 as amended by the Single Audit Act Amendments of 1996 is codified as Chapter 75 of Title 31 of the United States Code. The code can be accessed at http://uscode.house.gov/.
(c) Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) can be accessed at https://www.gpo.gov/.
(4) The department adopts and incorporates by reference the standards established by the American Institute of Certified Public Accountants for agreed-upon procedures engagements, updated through June 30, 2019, as provided by ARM 2.4.410, available at https://www.aicpa.org/.
(a) These standards contain:
(i) conditions for engagement performance;
(ii) the subject matter and related assertions;
(iii) the nature, timing, and extent of procedures;
(iv) the presentation of the results of applying agreed-upon procedures to specific subject matter in the form of findings;
(v) reporting requirements; and
(vi) written representations.