§ 2-7-509

2-7-509. Audits of school-related organizations -- costs -- criteria. (1) The legislative auditor may conduct or have conducted an audit of the records of organizations referred to in 2-3-203(2). (2) Before public funds are transferred to the organization, a member shall obtain the organization's written consent to: (a) the audit provided for in subsection (1); and (b) pay the costs of the audit. (3) An audit of an organization performed under this section must determine if: (a) the organization is carrying out only those activities or programs authorized by state law and its articles of incorporation, bylaws, and policies; (b) expenditures are made in furtherance of authorized activities in accordance with applicable laws and its articles of incorporation, bylaws, and policies; (c) the organization properly collects and accounts for all revenues and receipts arising from its activities in accordance with generally accepted accounting principles; (d) the assets of the organization or the assets in its custody are adequately safeguarded and are controlled and used in an efficient manner; and (e) reports and financial statements fully disclose the nature and scope of the activities

the assets in its custody are adequately safeguarded and are controlled and used in an efficient manner; and (e) reports and financial statements fully disclose the nature and scope of the activities conducted and provide a proper basis for evaluating the operations of the organization. History: En. Sec. 1, Ch. 678, L. 1991.