48-253

48-253. District audits and financial
reviews

A. Each district that is organized under this title, that is not exempt under
subsection F of this section and that is required to make an annual report under this
article shall have its reports audited in accordance with generally accepted auditing
standards and the following:

1. Audits required by this section shall be performed annually for districts whose
budgets are one million dollars or more. Districts whose budgets are one hundred
thousand dollars or more but less than one million dollars shall have a financial review
performed annually. Districts whose budgets are more than fifty thousand dollars and
less than one hundred thousand dollars shall have a financial review performed at least
biennially. Districts whose budgets are fifty thousand dollars or less shall have a
financial review performed at the request of the county board of supervisors or on
receipt of a request for a financial review that is signed by at least ten residents of
that district. A district shall not be required to perform a financial review more than
once per fiscal year.

2. A district may select an outside auditor who is a certified public accountant or
a representative who is selected by the board of supervisors and who is trained as an
auditor.

3. A district may advertise and use competitive bidding practices to select an
agent to perform the audits or financial reviews required by this section.

B. Each district that submits a financial statement for the preceding fiscal year
that has been attested to by an independent certified public accountant pursuant to
section 48-251 is deemed to have complied with this section by submitting a copy of the
financial statement to the county treasurer.

C. Each district shall submit a copy of the completed audit or financial review to
the county treasurer and the board of supervisors within one hundred eighty days after
the close of the district's fiscal year or within one hundred eighty days after a request
for a financial review is received by the district pursuant to subsection A, paragraph 1
of this section.

D. If a district fails to submit an audit or financial review as required by this
section, any taxpayer residing in the district, the board of supervisors or the county
treasurer may petition the superior court in a county where the district is organized to
show cause why the audit or financial review has not been submitted. On a failure to
show cause the court shall order the district to submit the audit or financial review
within ten days after the judgment is entered.

E. If the court enters a judgment against the district under this section, the
court may award the taxpayer, board of supervisors or county treasurer reasonable
attorney fees and costs associated with bringing the action.

F. Districts organized under chapters 4, 6, 17, 22, 27 and 28 of this title are
exempt from the requirements of this section.