(1) The department adopts and incorporates by reference the Codification of Governmental Accounting and Financial Reporting Standards adopted by the Governmental Accounting Standards Board as 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 chart of accounts prescribed by the department in the Budgetary, Accounting and Reporting System for Montana Cities, Towns and Counties for use by counties, cities, and towns, as provided by ARM 2.4.401.

(a) The chart of accounts incorporated by reference in (2) contains the required fund classifications, balance sheet accounts, revenue accounts, expenditure accounts, and objects of expenditure to be used by counties, cities, and towns.

(b) The chart of accounts adopted by reference in (2) may be obtained from the Montana Department of Administration, Local Government Services Bureau, 301 South Park Avenue – Room 340, P.O. Box 200547, Helena, MT 59620-0547.

(3) The department adopts and incorporates by reference the Government Auditing Standards established by the Comptroller General of the United States for financial audits as required standards for independent auditors in conducting audits of local government entities, as provided by ARM 2.4.405.

(a) Government Auditing Standards incorporated by reference in (3) 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.

(b) Government Auditing Standards established by the Comptroller General of the United States adopted by reference in (3) may be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20401. These standards may also be accessed at the following web site address: http://www.gao.gov/.

(4) 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 the OMB Circular A-133, "Audits of States, Local Governments and Non-Profit Organizations," as requirements to which local government audits must conform, 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 OMB Circular A-133 relate to the following:

(i) background and purpose;

(ii) applicability of the act and circular;

(iii) audit requirements and scope of audits conducted under the act and circular;

(iv) frequency of audits;

(v) federal agency and pass-through entity responsibilities;

(vi) requirements relating to subrecipients and vendors;

(vii) relation to other audit requirements;

(viii) auditee responsibilities;

(ix) illegal acts or irregularities;

(x) audit report requirements;

(xi) audit resolution;

(xii) audit working papers and reports;

(xiii) audit costs and auditor selection; and

(xiv) sanctions.

(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 is available at many public libraries and at law offices, and can be accessed at the following web site address: http://www.access.gpo.gov/uscode/title31/subtitlev_chapter75_.html.

(c) The circular is available from the federal Office of Management and Budget. A hard copy can be obtained by calling (202) 395-3080. It can also be accessed at the following web site address: http://www.whitehouse.gov/omb/circulars/a133/a133.html.

(5) The department adopts and incorporates by reference the standards established by the American Institute of Certified Public Accountants for agreed-upon procedures engagements under which financial reviews of local government entities must be conducted, as provided by ARM 2.4.410.

(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.

(b) The standards for agreed-upon procedures engagements are contained in Section 201 of the Codification of Statements on Standards for Attestation Engagements, which may be obtained from the American Institute of Certified Public Accountants by calling (888) 777-7077 or at the following web site address: https://www.cpa2biz.com.