Utah Admin. Code R5 — Auditor

R123 Administration

R123-5 Requirements for Accounting Services of Political Subdivisions and Governmental Nonprofit Corporations

Utah Admin. Code R123-5-1 Authority

1. As required by Section 51-2a-301, this rule provides the guidelines, qualifications criteria, and procurement procedures for accounting services for those entities required by Section 51-2a-201 to report to the Office.

History

• KEY: accounting services, accounting reports, auditing, governmental nonprofit corporations
• Date of Last Change: November 7, 2019
• Notice of Continuation: May 25, 2022
• Authorizing, and Implemented or Interpreted Law: 51-2a-201

Utah Admin. Code R123-5-2 Definitions

1. "Office" means the Office of the State Auditor.

2. "Auditor" means a certified public accountant licensed to conduct audits in the state and includes any certified public accounting firm as defined by Section 58-26a-102.

3. "Accounting services" means a financial audit, a state compliance audit, or an agreed-upon procedures engagement provided by an auditor.

a. "Financial audit" means an audit as defined in Section 51-2a-102(2).

b. "State compliance audit" means an engagement provided by an auditor in accordance with the compliance audit guide maintained by the Office.

c. "Agreed-upon procedures engagement" means an engagement provided by an auditor in accordance with Attestation Standards established by the AICPA, Government Auditing Standards (GAS) issued by the Comptroller General of the United States, and the guide for agreed-upon procedures for local government entities developed by the Office.

4. "Political subdivision" means all municipalities, counties, school districts, local and special service districts, interlocal organizations, and any other entity established by a local governmental unit that receives tax exempt status for bonding or taxing purposes. "Political subdivision" does not include state entities.

5. "State entity" means any state agency, state office, or any other governmental unit of the state. State entity includes a governmental entity for which the state exercises majority control or for which one or more state officials collectively exercise majority control.

6. "Governmental nonprofit corporation" means any governmental nonprofit corporation as that term is defined by Section 11-13a-102.

History

• KEY: accounting services, accounting reports, auditing, governmental nonprofit corporations
• Date of Last Change: November 7, 2019
• Notice of Continuation: May 25, 2022
• Authorizing, and Implemented or Interpreted Law: 51-2a-201

Utah Admin. Code R123-5-3 Reporting Standards and Requirements

1. The audits of all entities required to have an audit made by Section 51-2a-201 shall be performed in accordance with Government Auditing Standards most recently published and issued by the Comptroller General of the United States.

2. The Office shall adopt and maintain a compliance audit guide containing those fiscal laws and compliance requirements for state funds distributed to, and expended by, political subdivisions and governmental nonprofit corporations. This compliance audit guide may specify:

a. the general compliance requirements applicable to all political subdivisions and governmental nonprofit corporations, and the audit requirements applicable to general compliance requirements,

b. the format for the auditor's statement expressing positive assurance with state fiscal laws identified by the Office, and

c. those items related to internal controls and other financial issues which shall be included in the auditor's letter to management that must be filed with the Independent Auditor's Report in accordance with the compliance audit guide maintained by the Office.

3. All entities required to have an audit made by Section 51-2a-201 shall have performed the financial audit and a state compliance audit in accordance with the compliance audit guide maintained by the Office.

4. The guidelines, criteria, procedures, and reporting requirements for all accounting and compliance reports required to be submitted to the Office are posted on the Office's website.

History

• KEY: accounting services, accounting reports, auditing, governmental nonprofit corporations
• Date of Last Change: November 7, 2019
• Notice of Continuation: May 25, 2022
• Authorizing, and Implemented or Interpreted Law: 51-2a-201

Utah Admin. Code R123-5-4 Procurement of Accounting Services

1. Unless otherwise specified by the Office, the decision to retain an entity's auditor rests with the governing body of the entity. However, the auditor providing the accounting services must meet the peer review and continuing education requirements of Government Auditing Standards issued by the Comptroller General of the United States. In addition, the auditor must satisfy the periodic workpaper review performed by the Office. The entity must competitively procure accounting services through the following matter at least every five years:

a. The entity shall distribute a "request for proposal" to all auditors who meet the qualification criteria set by the procuring organization and who are interested in submitting a proposal for the accounting services. As a minimum, the request for proposal shall contain the following:

(i) the name and address of the entity requesting the accounting services and its designated contact person,

(ii) the entity for which the accounting services are to be performed, the scope of services to be provided, and specific reports, etc. to be delivered,

(iii) the period(s) pertaining to the accounting services,

(iv) the format in which the proposals should be prepared,

(v) the date and time proposals are due,

(vi) the criteria to be used in evaluating the proposal,

(vii) the relative weight to be assigned to each criteria in R123-5-4(a)(vi), and

(viii) The overall weight of the cost criteria in relation to other evaluation criteria.

b. The entity must consider proposals from any interested and qualified auditor in the state, which may include the auditor currently performing the entity's accounting services. Notice shall be given to potential auditors through invitation and by notice as described in Section 63G-6a-112(2). To promote competition, it is recommended that at least three auditors participate in proposing for the accounting services. If the entity fails to receive three qualified proposals, prior to awarding the contract the entity shall notify the Office, and the entity shall provide 5 business days for the submission of additional proposals. The Office may direct the entity to revise and reissue its request for proposal whenever the Office deems the procurement process was not competitive.

c. The entity may reject any and all competitive proposals but must document the justification for each rejection. The entity may reissue its request for proposal at any time prior to the awarding of a contract for accounting services.

d. Management of the entity may not participate in the evaluation of proposals for accounting services.

History

• KEY: accounting services, accounting reports, auditing, governmental nonprofit corporations
• Date of Last Change: November 7, 2019
• Notice of Continuation: May 25, 2022
• Authorizing, and Implemented or Interpreted Law: 51-2a-201

Utah Admin. Code R123-5-5 Responsibility for Quality of Accounting Services

1. The governing body of each political subdivision or governmental nonprofit corporation is responsible to ensure that the political subdivision or governmental nonprofit corporation obtains a quality review of its financial records.

2. The governing body may appoint an audit committee with the responsibility of making recommendations to the governing body for selection of an auditor, ensuring that the auditor meets qualification requirements, and ensuring that the auditor complies with professional standards.

3. If the governing body appoints a separate audit committee, then the governing body shall review the recommendations of the audit committee and make the selection of the auditor.

4. The audit committee will report its assessment of the auditor's compliance with professional standards to the governing body.

5. The auditor shall report the results of the accounting services to the governing body.

6. The governing body shall respond to the specific recommendations included in the auditor's letter to management. This response shall be remitted with the audited financial statements or agreed-upon procedures report to the Office.

History

• KEY: accounting services, accounting reports, auditing, governmental nonprofit corporations
• Date of Last Change: November 7, 2019
• Notice of Continuation: May 25, 2022
• Authorizing, and Implemented or Interpreted Law: 51-2a-201

R123-6 Allocation of Money in the Property Tax Valuation Agency Fund

Utah Admin. Code R123-6-1 Authority

As required by Section 59-2-1603, this rule provides the formula for disbursing monies from the property tax valuation agency fund.

History

• KEY: counties, property tax
• Date of Last Change: May 3, 2024
• Notice of Continuation: July 15, 2024
• Authorizing, and Implemented or Interpreted Law: 59-2-1603

Utah Admin. Code R123-6-2 Definitions

1. "Combined levy" means the sum of the local levy and the multi-county levy.

2. "Local levy" means a property tax levied in accordance with Subsection 59-2-1602(4).

3. "Multi-county levy" means a property tax levied in accordance with Subsection 59-2-1602(2).

4. "Fund" means the Property Tax Valuation Agency Fund created in Section 59-2-1602.

5. "Office" means the Office of the State Auditor.

6. "GIS parcel data" means the information specified in Subsection 63A-16-505(3)(b)(vi) for the statewide parcel layer in the State Geographic Information Database.

7. "UGRC" means the Utah Geospatial Resource Center created in Section 63A-16-505.

History

• KEY: counties, property tax
• Date of Last Change: May 3, 2024
• Notice of Continuation: July 15, 2024
• Authorizing, and Implemented or Interpreted Law: 59-2-1603

Utah Admin. Code R123-6-3 Disbursements

1. To receive disbursements from the Fund, a county shall:

a. Annually submit to UGRC, no later than December 31, its most recent GIS parcel data used for the property assessment for the current calendar year;

b. Provide the requested intermediate assessment book data conforming to the Assessor Data Request List for evaluation of the county's mass appraisal system by June 9 of each year; and

c. Comply with the statutory requirement of mass appraisal and in-depth review described in Section 59-2-303.1.

2. Subject to Subsection (3), the disbursement to eligible counties of monies held in the Fund shall be determined based on the following:

a. Sixth class counties whose respective combined levy exceeds the mean of the combined levies of all counties shall receive an amount from the Fund equal to 80% of the amount calculated when multiplying the county's Proposed Tax Rate Value, as calculated by Utah State Tax Commission, by the portion of their combined rate that exceeds the mean rate;

b. Fifth class counties whose respective combined levy exceeds the mean of the combined levies of all counties shall receive an amount from the Fund equal to 50% of the amount calculated when multiplying the county's Proposed Tax Rate Value, as calculated by Utah State Tax Commission, by the portion of their combined rate that exceeds the mean rate;

c. Fourth class counties whose respective combined levy exceeds the mean of the combined levies of all counties shall receive an amount from the Fund equal to 20% of the amount calculated when multiplying the county's Proposed Tax Rate Value, as calculated by Utah State Tax Commission, by the portion of their combined rate that exceeds the mean rate but not to exceed 0.000100; and

d. a sixth class county shall not receive less than $20,750 annually from the Fund.

3. If available monies held in the Fund are not sufficient to cover amounts calculated in Subsection (2):

a. Full distributions shall be made to sixth class counties;

b. Distributions to fourth and fifth class counties shall be reduced on a pro-rata basis based on monies available after the distributions in Subsection (3)(a); and

c. Notwithstanding Subsection (3)(b), fourth and fifth class counties who have received previous distributions shall receive distributions which minimize reductions compared to previous year distributions.

4. If available monies held in the Fund exceed amounts calculated in Subsection (2), distributions shall be increased on a pro-rata basis.

5. The Office shall authorize these disbursements on an annual basis.

History

• KEY: counties, property tax
• Date of Last Change: May 3, 2024
• Notice of Continuation: July 15, 2024
• Authorizing, and Implemented or Interpreted Law: 59-2-1603

R123-7 Required Governmental Entities' Posting of Financial Information to Transparent Utah, formerly known as the Utah Public Finance Website

Utah Admin. Code R123-7-1 Purpose

The purpose of this rule is to establish procedures related to the posting of reasonably complete and accurate financial information from qualifying entities to the Utah Public Finance Website.

History

• KEY: Utah Public Financial Website, Transparent Utah, financial transparency, state employees, finance
• Date of Last Change: July 9, 2025
• Authorizing, and Implemented or Interpreted Law: 67-3-12; 63G-2-304; 63G-2-302; 63G-2-305; 63G-2-303

Utah Admin. Code R123-7-2 Authority

This rule is established pursuant to Section 67-3-12, which authorizes the Office of the State Auditor to make rules governing the posting of financial information for qualifying entities to the Utah Public Finance Website.

History

• KEY: Utah Public Financial Website, Transparent Utah, financial transparency, state employees, finance
• Date of Last Change: July 9, 2025
• Authorizing, and Implemented or Interpreted Law: 67-3-12; 63G-2-304; 63G-2-302; 63G-2-305; 63G-2-303

Utah Admin. Code R123-7-3 Definitions

(1) Terms used in this rule are defined in Section 67-3-12.

(2) Additional terms are defined as follows:

(a) "Utah Public Finance Website" (UPFW) or "Transparent Utah" means the website created in Section 67-3-12 accessible to the public at transparent.utah.gov.

(b) "Division" means the Division of Finance of the Department of Government Operations.

(c) "FINET" means the State of Utah centralized accounting system.

(d) "Office" means the Office of the State Auditor.

History

• KEY: Utah Public Financial Website, Transparent Utah, financial transparency, state employees, finance
• Date of Last Change: July 9, 2025
• Authorizing, and Implemented or Interpreted Law: 67-3-12; 63G-2-304; 63G-2-302; 63G-2-305; 63G-2-303

Utah Admin. Code R123-7-4 Public Financial Information

(1)(a) Except as provided in Subsection (1)(b), each qualifying entity shall submit to the Office its detail revenue and expense transactions from its general ledger accounting system to the UPFW at least quarterly and within one month after the end of the fiscal quarter.

(b) The Division shall ensure that detailed transactions for all participating state entities that post finances to FINET, are available to the Office.

(2)(a) Except as provided in Subsection (2)(b), each qualifying entity shall submit to the Office its employee compensation detail information on a basis consistent with its fiscal year to the UPFW at least once per year and within three months after the end of the fiscal year.

(b) The Division shall ensure that employee compensation detail information that is recorded in the central payroll system of the State is available to the Office.

(c) Employee compensation detail information will, at a minimum, break out the following amounts separately for each employee, including any full-time contract employees:

(i) total wages or salary, including incentive awards and leave paid;

(ii) total benefits, including reimbursements. Benefit details that are protected by Subsection 63G-2-302(1)(g) may not be disaggregated.

(d) In addition, the following information will be submitted for each employee:

(i) name;

(ii) hourly rate for those employees paid on an hourly basis;

(iii) job title; and

(iv) gender.

(3) An entity may not submit any data to the UPFW that is classified as private, protected, or controlled by Sections 63G-2-302, 63G-2-303, 63G-2-304, and 63G-2-305 or any other statute. All detail transactions or records are required to be submitted; however, the words "redacted" or "not provided" shall be inserted into any applicable data field in lieu of private, protected, or controlled information. The word "redacted" is preferred.

History

• KEY: Utah Public Financial Website, Transparent Utah, financial transparency, state employees, finance
• Date of Last Change: July 9, 2025
• Authorizing, and Implemented or Interpreted Law: 67-3-12; 63G-2-304; 63G-2-302; 63G-2-305; 63G-2-303

Utah Admin. Code R123-7-5 UPFW Data Submission Procedures

(1) Each entity that submits data for the UPFW must upload its files to the Office's State Reporting System.

(2) Each entity that submits data for the UPFW must submit it according to the following file specifications:

(a) The public financial information required in Section R123-7-4 shall be submitted to the Office in a pipe delimited text file. The detail file layout is available from the Office.

(b) Each transaction must contain the information required in the detail file layout including:

(i) Organization - Categorizes transactions within the entity's organization structure. If applicable, a transaction will contain at least two levels of meaningful organization. The Office may require an entity to report additional levels of organization detail.

(ii) Category - Categorizes transactions and describes the financial nature of the transaction. If applicable, a transaction will contain at least two levels of meaningful category. The Office may require an entity to report additional levels of category detail.

(iii) Fund - Categorizes transactions by fund types and individual funds. If applicable, a transaction will contain at least the identifiable fund. The Office may require an entity to report additional levels of fund detail.

(iv) Program -- Categorizes transactions by a plan of coordinated activities to accomplish specific objectives. Required reporting for all entities within the system of public education. If applicable, a transaction will contain at least the identifiable program. The Office may require an entity to report additional levels of program detail.

(v) Function -- Categorizes transactions according to the purpose of the financial activity. Required reporting for all entities within the system of public education. If applicable, a transaction will contain at least two levels of meaningful function. The Office may require an entity to report additional levels of function detail.

(vi) Uniform Chart of Account Code -- Code provided by the Office that maps an entity's chart of account to the corresponding uniform chart of account for that entity type. If applicable, a transaction will map to the closest matching available code. The Office, in conjunction with the Utah State Board of Education, has promulgated a uniform chart of account for all local education agencies. The Office has also promulgated a uniform chart of account for all other local governmental entities that are not local education agencies.

History

• KEY: Utah Public Financial Website, Transparent Utah, financial transparency, state employees, finance
• Date of Last Change: July 9, 2025
• Authorizing, and Implemented or Interpreted Law: 67-3-12; 63G-2-304; 63G-2-302; 63G-2-305; 63G-2-303