2-7-509. Audits of school-related organizations -- costs -- criteria.
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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 conducted and provide a proper basis for evaluating the operations of the organization.