Miss. Admin. Code tit. 4 | Miss. Admin. Code Title 4 — Auditor

AUDITOR AUDITOR

Part 1 Organizational Rules

Chapter 1 Regulation Regarding Organization and Method of Operation Including Public Access to Information

4 Miss. Admin. Code Pt. 1, R. 1.1 Authority

This regulation is adopted as a rule to conform to the requirements of Section 25-43-2.104 of the Mississippi Code of 1972, Annotated as amended, regarding agency organization, method of operation, and where/how the public may obtain information.

History

Source: Miss. Code Ann. § 25-43-2.104 (Rev. 2006).

4 Miss. Admin. Code Pt. 1, R. 1.2 Authority of the Office of the State Auditor

The Mississippi Constitution in Section 134 creates the Office of the State Auditor whose specific powers derive from the Mississippi Code of 1972, as amended, including Section 7-7-211 which grants specific duties and powers related to prescribing systems of accounting, budgeting, and financial reporting for public offices in Mississippi. It also enumerates other statutory responsibilities including study and analysis of existing public managerial policies and practices; pre-audit and post-audit functions; investigation of suspected fiscal violations; recovering misspent and stolen funds; and a variety of related duties and responsibilities. (a) Organizational Structure. The organizational structure of the Office of the State Auditor consists of the Auditor‟s Executive Support Staff and eight divisions. The Auditor‟s Executive Support Staff assists in directing and supervising Office activities involving one or more the eight divisions. The Director of the Department of Audit coordinates and oversees this function, acting on behalf of the State Auditor when needed. The Office of the State Auditor is housed in three (3) locations. The central office is in Jackson with satellite offices in Ellisville and Grenada.

History

Source: Miss. Const. art. IV, § 134; Miss. Code Ann. §§ 7-7-203, 7-7-211.

4 Miss. Admin. Code Pt. 1, R. 1.3 Divisional Responsibilities

(a) The duties of the Administrative Services Division include: responsibility for all personnel matters; processing of invoices, travel vouchers and purchase orders, as well as all activities related to procurement of equipment and supplies; billing of entities for services rendered; preparing and administering the agency‟s annual budget. (b) The Financial and Compliance Audit Division, the largest division in the agency, is divided into five sections: Education Audit Section, State Agency Audit Section, County Audit Section, Electronic Data Processing (EDP) Audit Section and Report Processing Section. This division is responsible for conducting and overseeing audits of public entities. (c) The Average Daily Attendance Division is responsible for monitoring school district compliance with the student information system requirements developed by the Mississippi Department of Education. In addition, it conducts public school fixed asset audits. (d) The Information Technologies Division is responsible for in-house design and installation of information systems. Its primary duty is to provide intra-agency technical support and training access related to the agency‟s information management activities. (e) The Investigative Division is responsible for the investigation of alleged or suspected violations of Mississippi law, including fraud and embezzlement, by public officials related to the purchase, sale or use of any supplies, services, equipment or other public property. (f) The Performance Audit Division conducts programmatic and performance audits and reviews to evaluate selected operations of government, making recommendations aimed at enhancing efficiency, effectiveness and economy in government. (j) The Property Division is responsible for maintaining a master inventory of fixed assets for state agencies and universities. It also conducts fixed asset audits for these public entities and for county governments as well. (h) The Technical Assistance Division is responsible for providing accounting and compliance assistance to state and local governments. It also conducts related training and is responsible for the design of uniform accounting systems for local governments.

History

Source: Miss. Code Ann. §§ 7-7-203, 7-7-211.

4 Miss. Admin. Code Pt. 1, R. 1.4 Public Access Information

The Office of the State Auditor may be contacted to participate in formal and informal proceedings and related rule-making matters by mail, e-mail, or telephone, or in person during regular business hours utilizing the following contact information: State Auditor Office of the State Auditor Suite 801, Woolfolk State Office Building Post Office Box 956 Jackson, MS 39201 Phone: (601) 576-2800 Website: www.osa.state.ms.us

History

Source: Miss. Code Ann. §§ 25-43-2.104 to 25-43-2.105, 7-7-202, 7-7-211.

Chapter 2 Administrative Procedure Regulating the Adoption, Amendment, or Repeal of Agency Rules.

4 Miss. Admin. Code Pt. 1, R. 2.1 Authority

This administrative procedure is adopted in accordance with the requirements of Section 25-43-1.101 et seq. of the Mississippi Code of 1972, as amended.

History

Source: Miss. Code Ann. § 25-43-1.101, et seq.

4 Miss. Admin. Code Pt. 1, R. 2.2 Notice of Proposed Rule Action

The Office of the State Auditor, as required by Section 25-43-1.101 of the Mississippi Code of 1972, prior to the adoption, amendment or repeal (“rule action”) of any rule that implements, interprets or prescribes law or policy or describes the organization and its procedures and/or practices, shall give at least twenty-five (25) days‟ notice of its intended action. This notice shall include: (a) the docket number of the proposed rule action; (b) a description of the subjects and issues involved in the rule action; (c) and a description of how interested persons may present their views. The notice shall be filed by the Office of the State Auditor (OSA) with the Secretary of State‟s Office and mailed by OSA to all persons who have made timely request for advance notice of its rule action proceedings.

History

Source: Miss. Code Ann. §§ 25-43-1.101, 25-43-3.103.

4 Miss. Admin. Code Pt. 1, R. 2.3 Emergency Rule Procedure

Should the State Auditor determine that an emergency exists because of an imminent threat to the public, he or she may thereby invoke rule actions with fewer than twenty-five (25) days‟ notice. In any such instances, the Office of the State Auditor must state in writing its reasons for doing so. It may abbreviate or eliminate the rule action notice for a period of not longer than one hundred and twenty (120) days renewable one time for not more than ninety (90) days. After this time, the normal notice procedure would once again apply.

History

Source: Miss. Code Ann. § 25-43-3.108.

4 Miss. Admin. Code Pt. 1, R. 2.4 Public Participation

Within the twenty-five (25) day notice period, any interested person may submit written data, views, arguments, or other comments for consideration by the Office of the State Auditor prior to adoption of any policy or procedure. Any written comment should refer to the docket number appearing in the heading of the rule action notice and should be addressed to the Office of the State Auditor. The State Auditor may choose to extend the time period for submission of comments.

History

Source: Miss. Code Ann. § 25-43-3.104.

4 Miss. Admin. Code Pt. 1, R. 2.5 Hearings

The State Auditor may invite interested persons to present their views orally at an informal hearing or participate in any procedure enabling those views to be adequately expressed. An oral proceeding will be conducted in the event that it is requested in writing by a political subdivision, state agency, or ten (10) interested persons. The State Auditor shall send a notice which fixes a time and place for such a hearing to each party requesting an opportunity to be heard or who submitted written comments. Further, the State Auditor shall send a notice to all persons who have made timely request of the Office of the State Auditor for advance notice of its rule action proceedings. For purposes of law, hearings related to rule action proceedings are to be regarded as informal. Statutory provisions governing formal hearings and adjudicatory proceedings, therefore, do not apply. Any hearing held to solicit feedback regarding a given rule is a non-adversarial fact- finding proceeding. Any rule action taken under this procedure need not be based exclusively on the record of such hearings. In the event that a hearing is conducted, the State Auditor may designate a representative to conduct a hearing. (a) The presiding official shall determine all procedural questions, except for those specifically governed by this legislation. This includes the maximum number of speakers which can be accommodated in a single session and imposing any necessary and reasonable time and presentation limitations. (b) Anyone requesting an opportunity to be heard may attend a hearing, with or without legal counsel. A hearing participant may submit written comments. They may bring experts with them. The length of any presentations, remarks, or questions by these persons will also be determined by OSA‟s presiding official. (c) The obtaining and use of experts or other authorities or resource persons is the responsibility of the parties attending the meeting. Any person acting in this capacity may be questioned by the presiding official. (d) Any interested party in attendance at a public hearing shall have the opportunity to make an oral presentation. (e) The presiding official has the authority to exclude data or materials deemed to be improper or irrelevant. However, formal rules of evidence and other related judicial rules will not apply. (f) The minutes, along with any other pertinent record of the hearing, will be kept in the official rules file.

History

Source: Miss. Code Ann. § 25-43-3.104.

4 Miss. Admin. Code Pt. 1, R. 2.6 Rule Action Docket

The Office of State Auditor shall keep a rule action docket ledger in which the following shall be entered: (a) the docket number of each proposed rule action; (b) the date of the notice of the proposed rule action; (c) a short description of the proposed rule action;

(d) a short description of the comments received stating who made the comment and when it was received; (e) a description of the final action taken concerning the proposed rule action; and (f) the effective date of the action.

History

Source: Miss. Code Ann. § 25-43-3.102.

4 Miss. Admin. Code Pt. 1, R. 2.7 Rule File

The rule file will contain documents which are public records and which are part of specific rule actions procedures, including: (a) notices of each proposed rule action; (b) written comments and summary of any oral comments received in the event that a hearing is conducted; (c) requests to participate in an oral presentation of views; (d) any requests for extension of time; (e) any grants or denials of requests; (f) minutes or other records of informal hearings; (g) final rules; (h) statements of repeal of rules; and (i) any other notice or document relevant to the rule action and the rule action proceedings.

History

Source: Miss. Code Ann. § 25-43-3.102.

4 Miss. Admin. Code Pt. 1, R. 2.8 Effectiveness of Final Rule Action

All timely comments will be considered in taking any final rule action. Copies of all final rule actions shall be provided to all persons who had made timely request for advance notice of the Office of the State Auditor‟s rule action proceedings, and to all persons who have submitted written comments regarding the proposed rule action. As stated in Section 25-43-9 of the Mississippi Code of 1972, Annotated, as amended, each rule adopted in its final form is effective thirty (30) days after filing with the Office of the Secretary of State, except if: (a) a later date is required by statute or specified in the rule, in which case the later date is the effective date. (b) in accordance with any constitutional or statutory provisions, an emergency rule becomes effective immediately upon filing with the Secretary of State‟s Office as may be necessary because of imminent peril to the public health, safety or welfare. No rule shall become effective prior to the time limits imposed by Section 25-43-9 of the Mississippi Code of 1972, Annotated, as amended. No rule action is valid unless taken in substantial compliance with this regulatory procedure. Any party believing it is adversely impacted by a proposed rule action may seek review of the final rule action in a court of proper jurisdiction.

History

Source: Miss. Code Ann. §§ 25-43-1.101, 25-43-2.105, 25-43-3.113, 25-43-9.

Chapter 3 Declaratory Opinions

4 Miss. Admin. Code Pt. 1, R. 3.1 Authority

This regulation is adopted to conform to the requirements of Section 25-43- 2.105 of the Mississippi Code of 1972, Annotated, as amended.

History

Source: Miss. Code Ann. §§ 25-43-2.103 to 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.2 Requests for Opinions

Any person with direct substantial interest may make a written request for a declaratory opinion as to the applicability to specific circumstances of a statute, rule, or order administered by the agency or within its primary jurisdiction. The term „substantial interest‟ will include any person with direct involvement in implementing public programs or governmental activities for which the Office of the State Auditor is responsible. The term „primary jurisdiction‟ means that the agency has a constitutional or statutory grant of authority in the subject matter being considered. Written requests for opinions may be sent in a letter form or may be e-mailed to the agency according to written website instructions. Each written request shall: (a) be set forth the specific facts on which the opinion is to be based; (b) be limited to a single transaction or occurrence; and (c) contain all relevant contact information

History

Source: Miss. Code Ann. §§ 25-43-2.103 to 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.3 Subjects Which may be Addressed

The Office of the State Auditor will issue declaratory opinions regarding the application of specified facts to: (1) a statute administered or enforceable by OSA or (2) a rule it has promulgated. The agency will not issue a declaratory opinion regarding a statute or rule which is outside the primary jurisdiction of the agency.

History

Source: Miss. Code Ann. §§ 25-43-2.103 to 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.4 Circumstances in Which Declaratory Opinions will not be Issued

The Office of the State Auditor may, for good cause, refuse to issue a declaratory opinion. The circumstances in which declaratory opinions will not be issued include, but are limited to: (a) lack of clarity concerning the question presented; (b) pending or anticipated litigation, administrative action, or any other adjudication which might either answer the question or make an answer unnecessary; (c) The statute or rule on which a declaratory opinion is sought is clear and does not need interpreting to answer the question. (d) The facts provided are not sufficient to answer the question presented. (e) The request fails to contain required information. (f) The requestor either lacks substantial interest or the issue is outside the primary jurisdiction of the requesting agency. (g) The requestor is not substantially affected by the statute or rule on which the opinion is sought. (h) The requestor is not faced with an issue that requires an answer to be forthcoming. (i) The question concerns the legal validity of a statute or rule.

(j) The request is not intended to aid in future conduct, but instead is intended to primarily justify past conduct. (k) No clear answer is determinable. (l) The question involves the application of a criminal statute or a set of facts which may constitute a crime. (m) The answer to the question requires disclosure of information which is protected by law from such disclosure. (n) The question is currently the subject of an Attorney General‟s opinion or has been already answered in writing by the Attorney General. (o) A similar request is pending elsewhere, whereby a written OSA opinion might constitute the unauthorized practice of law. (p) Issuance of an opinion may affect the interests of the State, its officers, and employees in pending or anticipated litigation. (q) The question involves eligibility for a license, permit, or other approval and there is statutory or regulatory process by which eligibility would be determined.

History

Source: Miss. Code Ann. § 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.5 Where to Send Requests

All requests must be mailed, delivered or transmitted via facsimile to the Office of the State Auditor. They may also be submitted electronically via e-mail. No oral or telephone requests will be accepted for official opinions.

History

Source: Miss. Code Ann. §§ 25-43-2.103, 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.6 Agency Response

Written agency opinions prepared in response to this rule may be issued by the State Auditor or, with his authorization, by the Audit Department Director, or by the director of the division responsible for implementation of the statute, rule, or order. Within forty- five (45) days of receipt of a written request for a declaratory opinion, the agency, in writing, shall: (a) issue an opinion regarding the applicability of the statute, rule, or order in question to the specific circumstances; (b) agree to issue a declaratory opinion by a specified time, but no later than ninety (90) days after receipt of the written request; or (c) decline to issue a declaratory opinion, stating the reasons for its action. The forty-five (45) day period shall begin on the first State of Mississippi business day on or after the request is received by OSA.

History

Source: Miss. Code Ann. §§ 25-43-2.103, 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.7 Opinion Issuance

A copy of all opinions prepared in response to a written request for a declaratory opinion must be mailed within three (3) business days of issuance to the requesting person.

History

Source: Miss. Code Ann. §§ 25-43-2.103, 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.8 Opinion not Final for Thirty Days

A declaratory opinion shall not become final until the expiration of thirty (30) days after the issuance of the opinion. Prior to the expiration of thirty (30) days, the State Auditor may, in his discretion, withdraw or amend the declaratory

opinion for any reason which is not arbitrary or capricious. Reasons for withdrawing or amending an opinion include, but are not limited to, a determination that the requestor failed to meet the requirements of the rules or that the opinion contains a legal or factual error. Each opinion letter must state that the date when the opinion is final.

History

Source: Miss. Code Ann. §§ 25-43-2.103, 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.9 Procedural Rights of Persons Receiving Declaratory Opinions

When any person making a request receives a declaratory opinion, to the extent that the facts provided in the request apply to the actual situation, the agency will take no civil or criminal action against that person acting in the same circumstances, who, in good faith follows the direction contained in the opinion. However, if a court of competent jurisdiction, declares the opinion to be manifestly wrong and without substantial support, it shall be null and void.

History

Source: Miss. Code Ann. §§ 25-43-2.103, 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.10 Third Party Applicability

Any declaratory opinion issued by the Office of the State Auditor (OSA) shall not be binding or effective for any third party or person other than OSA and the person to whom the opinion is issued. It shall not, under any circumstances, be used as a precedent for any other transaction or occurrence beyond the facts and circumstances set forth by the requesting person.

History

Source: Miss. Code Ann. § 25-43-2.105.

4 Miss. Admin. Code Pt. 1, R. 3.11 Notice to Specific Third Parties

The Office of the State Auditor may give notice to any person, agency or entity that declaratory opinion has been requested and may receive and consider data, facts, arguments and opinions from other persons, agencies, or other entities other than the requestor.

History

Source: Miss. Code Ann. §§ 7-5-25, 25-43-2.103.

4 Miss. Admin. Code Pt. 1, R. 3.12 Requests for Opinions from the Attorney General

The authority of persons to request and receive agency declaratory opinions does not affect the ability of any person authorized to request a legal opinion from the Attorney General under Section 7-5-25 of the Mississippi Code of 1972, as amended.

History

Source: Miss. Code Ann. §§ 7-5-25, 25-43-2.103.

4 Miss. Admin. Code Pt. 1, R. 3.13 Public Access to Declaratory Opinions

They will be maintained in comprehensive agency file indexed by name and subject. The file will not include any information deemed to be confidential by statute or exempt from public disclosure as a result of another provision of law. All declaratory opinions and their respective written requests shall be available for public inspection and copying in accordance with the Public Records Act and OSA‟s public records request procedure, subject to any confidentiality provisions established by law.

History

Source: Miss. Code Ann. § 25-43-2.103.

Part 2 Reviewing CPA Audits

Chapter 1 Regulation Regarding Determination of Costs for Performing and Reviewing Audits

4 Miss. Admin. Code Pt. 2, R. 1.1 Determination of Costs for Performing Audits by the Office of the State Auditor

The Division of Financial and Compliance Audits currently has the responsibility for the following types of entity audits: Public School Districts, State Agencies, Local County Governments, Colleges and Universities. When audit planning and scheduling are completed, the section directors responsible for each of the above audit types will notify the Director of Financial and Compliance Audit Division for approval. During the engagement planning stage of each audit, the entity will be asked to sign an engagement letter which contains an estimated cost of conducting the audit. (a) All costs for preparing audits shall be billed to public entity. (b) All costs billed to the public entity will be based upon the actual time of the Office of the State Auditor employees used in preparing the audit. (c) All costs billed to the public entity will be billed at the rates provided by statute.

History

Source: Miss. Code Ann. §§ 7-7- 201, 7-7- 209 to 7-7-215, 7-217 to 7-7-221, 7-7-3, 37-37-5.

4 Miss. Admin. Code Pt. 2, R. 1.2 Determination of Costs for Reviewing CPA Audits

When audit planning and scheduling are completed and it is determined that the Office of the State Auditor staffing levels in the respective sections will not provide for timely completion of the necessary audits, the section directors responsible for each of the audit types cited in Section I will notify the Director of Financial and Compliance Audit Division. Upon approval from the Director of the Department of Audit, the section directors will notify the entities that they will need to contract their audit out to an Independent Certified Public Accounting Firm. Mississippi Code Annotated § 7-7- 211 provides that the Office of the State Auditor may contract with CPA firms to perform audits. In addition, Mississippi Code Annotated § 37-9- 18 provides that school districts may contract with CPA firms to perform audits. In every case, the Office of the State Auditor is to review these audits of public entities performed by CPA firms. (a) All costs for reviewing audits prepared by CPA firms which have contracted with public entities as provided by § 7-7- 211 or § 37-9-18 shall be billed to the public entity. (b) All costs billed to the public entity will be based upon actual time of the Office of the State Auditor employees used in reviewing the audit. (c) All costs billed to the public entity will be billed at the rates provided by statute.

History

Source: Miss. Code Ann. §§ 7-7- 211, 37-9-18.

Part 3 State Bonding Monitoring

Chapter 1 The Procedure Regulating the State Bond Monitoring Program

4 Miss. Admin. Code Pt. 3, R. 1.1 Project Application and Approval Process: Feasibility, Engineering Studies, Business Plans, Due Diligence Effort, etc

– Specific Project Criteria. (a) Document proper feasibility and engineering studies where applicable. (1) Certify that a professional consultant performed the feasibility study and that the results of the feasibility study were conclusive to the effect that the project is viable. (2) Certify that a professional and licensed engineer independent from the Company or Project owner performed the engineering study. Verify that the engineering study has been reviewed and approved as viable by a State contracted engineer before project is accepted. (b) Document due diligence efforts, where applicable. (c) Review any economic impact analyses related to project. (d) Review and Document, where applicable, business plans and other information relevant to project submitted to MDA by applicant. (e) Document that the project meets the specific criteria for the program under which it is listed. (1) Economic Development Projects: (i) Super Project Category: Total bonds issued over $50,000,000. (ii) Regular Project Category: Total bonds issued under $50,000,000. (2) MDA Multi-Project Programs: (Examples: Rural Impact, Small Municipalities Limited Populations Counties Fund, Land, Water and Timber, ACE, and all other economic development related programs) (i) Grants - Document that the Project meets the requirements for receiving a grand under the program’s requirement/regulations. (ii) Loans - Document that the Project meets the requirements/regulations for receiving a loan under each program. (iii) Loan Guarantees - Document that the Project meets the requirements/regulations for receiving a loan under each program.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.2 Issuance of Bonds (where applicable)

(a) Review and Include in permanent file legislative record, memoranda of understanding (MOU), any side agreements, business plans, applications, and any other information provided to MDA by project applicant related to project where funding is sought. (b) Include in permanent file the resolution requesting bonds to be sold. (c) Document the development of the capital project. (d) Document that the necessary board approvals have been obtained. (e) Document that the Department of Finance and Administration (DFA) and/or State Treasurer’s office properly monitors use of bond proceeds and arbitrage compliance. (f) Document that the State Bond Commission, where applicable, has reviewed applications, evaluated and analyzed how the project fits within the state’s debt structure, evaluated issuance costs, approves issuance and that a final report indicating the use of the funds was received from the relevant agencies. (g) Document any bond insurance or credit enhancement activity related to the bond issuance. (h) Document that the State Bond Attorney, where applicable, has issued an opinion on the legal issuance of the bonds and that the Office of the Attorney General approved the bond issue before delivery. (i) Document that the State Treasurer or its designee registered the bonds and recorded the sale of the bonds. (j) Document the purchase of the bond issue by the underwriter/syndicate. (k) Other documentation as necessary.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.3 Management of Funds Disbursement by Economic Development Project Category

(a) Category A: Super Project – External Management, External Oversight: These projects generally have external management and external oversight of construction in addition to MDA staff. (1) Submission and Approval of Invoices: (i) For a sample of invoices, document that the proper signatures are in place. (ii) Document, for a sample of invoices which require pre-approval that the appropriate signatures have been obtained from the project engineer/architect prior to being submitted for payment to MDA. (iii) Document the procedures which the Accounting Sr. Manager employs in the review of the invoices. (iv) Document that any discrepancies observed were resolved as described by the Project Engineer. (v) For a sample of invoices encompassing all accounts and expenditure classifications, ensure that each one paid bears the signature of the Project Director, the Executive Director and the Chief of Staff.

(2) Processing Payment of Invoices: (i) Document that the Mississippi Major Economic Impact Act (MMEIA) invoice is attached to the approved invoice. (ii) Document, on a sample basis, that the Accounting Auditor II’s input follows guidelines set forth in the MS Agencies Accounting Polices and Procedures Manual and in MDA’s internal accounting procedures manual. (iii) Document, on a sample basis, that the Accounting Auditor II sends invoices requiring Purchase Orders to the Purchasing department. (iv) Document that the payment vouchers are submitted with appropriate signatures and that the proper copies are submitted and filed in accordance with the procedure above. (v) Document, on a sample basis, that the proper dates and warrant numbers are properly filed in the Vendor Files by alphabetical order. (vi) Document the procedures performed and the results of the post audit review. (vii) Obtain current copy of the asset spreadsheet and review for completeness on a sample basis from invoices to the spreadsheet for the recording of capital assets. (viii) Obtain a copy of the spreadsheet maintained to track expenditures and to reconcile balances related to the project budget and test for clerical and formula accuracy.

(b) Category B: Regular Project – Local Management, External Oversight: Company Expenditures and Process (Example: Mississippi Major Economic Impact Act (MMEIA) and Mississippi Business Investment Act (MBIA): (1) Document, from a sample of invoices and requests for payment (RFPs) that each was authorized for payment by the above mentioned individuals. Also verify that none of the RFPs are for reimbursement of expenditures by the county or the company. (2) Document, from a sample of RFPs that amounts requested are within budget guidelines for the expenditure type. (3) Document that the budget was created in collaboration from the various individuals mentioned above. On a sample basis, perform independent research to ensure that, where possible, itemized budget amounts appear reasonable. (4) Document that the Company has committed, in writing, to covering the cost of budget overruns, where applicable. (5) The RFP package is then delivered to the Executive Director’s Office for signature. (6) Document that all paid RFPs bear the signature of the Executive Director or his/her proxy. (7) Document for a sample of RFPs that the appropriate copies are in the above referenced locations. (8) Document that the expenditures are tracked and that a running total of dollars expended for the project is available and accurate. (9) Document from a sample of RFPs that the proper dates sent and paid are recorded by MDA. (10) Document that a reconciliation of expenditures against the receipts is conducted monthly for a sample of months. (11) Document, for a sample of RFP packages, that the proper stamps are in place to demonstrate authorization.

(12) Document, for a sample of RFP packages, that the check was received and mailed and that a copy of the check was attached to the check pending file. (13) Document that the check payment date and the payment voucher number are recorded in the PV Log and that a copy of the RFP and the check is filed in the disbursement file for the proper and relevant budget component. (14) For a sample of contracts, document that no contracts were entered into by the County with individual contractors except where provided by exception. From the selected sample, document that the state laws of procurement, advertising and awarding of contracts were followed sufficiently.

(c) Category C: MDA Multi-Project Category: (1) Example I: Rural Impact Funds Request for Cash Process: (i) Document that the Request for Cash (RFC) is completed by the applicant and that it is signed by the appropriate official or designated person. (ii) Document the process by which the RFC is compared to the contract and on a sample basis, ensure that expenditures conform with the contract requirements. (iii) Document that all invoices, on a sample basis, bear the approval of the Bureau Manager and that the original and three copies of the RFC are sent to Accounting. (iv) Document that a sample of pending RFCs are located in the pending file. (v) For a sample of RFCs, document that the files are properly maintained for paid RFCs. Recommendation. The utilization of invoices for all disbursements is recommended as the best practice for ensuring that payments are related to services rendered or goods provided. Such documentation provides a means of providing assurance as to the propriety of the expenditures. (2) Example II: Land, Water, Timber Cash Disbursements Process: Approval of fund disbursement is currently at the discretion of the Land, Water and Timber Board. (3) Example III: All Other Multi-Project Categories: All other “Multi-Project” programs (which are economic development related and which utilize State bond proceeds) will be reviewed and documentation tested and collected based on the defined procedures, regulations, and requirements defined by MDA. These programs include, but are not limited to Small Municipalities, Limited Population Counties Program, ACE Program, Mississippi Business Investment Act, etc.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.4 Construction Management

(a) As Provided in the Memoranda of Understanding: Project performance analysis of Construction Management will include elements defined and described in the MOU for each project, where available.

(b) Recommendations in Addition to the Presented Activities of the Memoranda of Understanding: (1) Maintain updated file containing all material engineering plans and related change orders. (2) Through services provided by contract engineers/architects or consultants, review the feasibility of any changes to the construction plan of the project and the estimates associated with those changes. (3) Periodically and randomly, perform site visits with contract engineers/architects or consultants to track construction and progress with plans and project timeline. Document findings from these reviews and observations.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.5 Completed Project Analysis

(a) As provided in the Memoranda of Understanding: Final project analysis will include elements defined and described in the MOU for each project, where available. (b) Recommendations in Addition to the Presented Activities of the Memoranda of Understanding: (1) Upon the original date of stated completion, visit project site in order to perform the following for: (i) Tangible Project Components: (A) Document that the project is constructively complete in accordance with the terms of the agreement, Memoranda of Understanding and the engineering specifications of the project. (B) Document that the related infrastructure required to support the operations of the project is operational as defined by the terms of the agreement, if applicable. (ii) Intangible Project Components: (A) Document that the full amount of capital investment has been received as required by the completion date of the project from the project company. (B) Document that the number of jobs created by the completion date of the project is equal to or greater than the amount agreed upon in the MOU related to the employment aspect of the project. (C) Document that the project has the capacity and ability to produce the intended benefit within the timeframe specified by the MOU.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.6 Monitor Project Company Financial Viability (where applicable)

Throughout the life of the project, it is essential to monitor the financial viability of the project company to ensure that the state will know either that the company will be able to fulfill its obligations to remain in business and thus maintain its level of employment in keeping with the MOU or that the company will eventually be forced to discontinue its operations. In order to provide assurance as to the financial viability of the project company the following should be performed, where applicable:

(1) Review of investment and cash flow management and documentation of findings either by an external expert consultant or by a comparably qualified internal employee. (2) Review of the project company’s annual and interim financial statements and documentation of findings either by an external expert consultant or by an comparably qualified internal employee, and (3) Performance ratio comparisons (“Performance to earning” or PE ratios) within the relevant company industry to be performed by a qualified valuation analyst or by a comparably qualified internal employee. The results of these reviews should be documented within a report subsequent to the availability of company financial data, if available. If unavailable, at least an annual review of the company’s books should be performed and comparisons within the industry made to provide reasonable assurance that the company remains a going concern.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.7 Condition Surveys

On at least an annual basis, a report outlining the general condition of the project should be issued outlining the operational, environmental and aesthetic aspects of the project's buildings, equipment and grounds. Such a report is useful in determining the proper expenditure of maintenance funds, where applicable. The report should also contain a synopsis of working conditions and any obvious health, safety or other issues that are present upon review of the premises.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.8 Debt Service Payment

With cooperation of DFA and/or the State Treasurer’s office, (a) Document the payment of debt for outstanding bonds related to the project. (b) Document that payments are being made by the State in a timely fashion and that provisions for these payments are included in the budget for each fiscal year. (c) Conduct payment performance review. (d) Maintain a schedule of outstanding debt and expenses related to the bond issuance for the project to readily determine interest expense, issuance costs, and remaining balances for the purpose of economic cost benefit analysis.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.9 Covenant, Contractual and Memoranda of Understanding Monitoring

(a) On an annual basis, review project specific covenants, contractual requirements, Memoranda of Understanding and any side agreements and document the findings of these within the project’s annual report. (b) Perform a review of the reserve fund to ensure that the terms of the agreement are being upheld (where applicable). (c) Perform covenant monitoring to ensure that no covenants are being violated by either party to the agreements. (d) Perform insurance monitoring to insure the state is not exposed under the terms of the various project agreements (where applicable).

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 3, R. 1.10 Bond Retirement

(a) With cooperation from the DFA, document the retirement of bonds process. (b) Document the amount paid in the bond retirement for economic cost/benefit analysis. (c) Should the bonds be retired before the indicated date, document the reason and any savings due to interest rate fluctuations, swaps or other methods. (d) If the bonds are retired on the due date, record the amount for which the bonds were retired and update the outstanding bonds worksheet records. (e) Develop a schedule demonstrating the total cash paid for the bond financing and the cost represented as a present value based on the Consumer Price Index (CPI) from the issuance date to the retirement.

EXHIBIT 1 Ten Step Bond Management Process Summary Flow Chart

Issuance of Bonds 2. Completed Project Analysis Monitor Project Company Financial Viability Bond Retirement Issuance of Bonds Debt Service Payment Covenant Monitoring 4. 3. 5. 7. 8. Construction Management Management of Fund Disbursement 9. 10. Project Application Process 1.

History

Source: Miss. Code Ann. § 7-7-211.

Part 4 Administrative Procedure Regulating Inclusion of CPAs/CPA Firms on a Listing of CPAs/CPA Firms

Chapter 1 CPAs/CPA Firms Interested in Offering Audit Services to State Agencies and Local Governmental Entities

4 Miss. Admin. Code Pt. 4, R. 1.1 Authority

Section 7-7- 211 (j) of the Mississippi Code of 1972, Annotated, states the Office of the State Auditor (OSA) shall be in compliance with its statutory requirements to audit certain local governmental entities when the audit is made from the report of any audit certified by a certified public accountant and prepared by or under the supervision of such certified public accountant. Section 7-7- 211 (k) of the Mississippi Code of 1972, Annotated, states qualified public accounting firms may be contracted with to perform selected audits if funds are available from the governmental entity.

History

Source: Miss. Code Ann. § 7-7- 211.

4 Miss. Admin. Code Pt. 4, R. 1.2 Scope

To better assist state agencies and local governmental entities, the OSA will maintain a list of CPAs/CPA firms that are interested in offering audit services to state agencies and local governmental entities. This list will be maintained on a calendar year basis and posted to the OSA website to allow easy access by state agencies and local governmental entities.

History

Source: Miss. Code Ann. § 7-7- 211.

4 Miss. Admin. Code Pt. 4, R. 1.3 Policy

A list of CPAs/CPA firms that are interested in offering audit services to state agencies and local governmental entities will be maintained on a calendar year basis and posted to the OSA website to allow easy access by state agencies and local governmental entities. The listing is a mechanism to notify state agencies and local governmental entities of CPAs/CPA firms that are interested in offering audit services and have certified to the OSA that they have met certain requirements of regulatory agencies and applicable auditing standards.

To be included on this list CPAs/CPA firms must complete a registration form and return it along with the required attachment to the OSA. The following list applies to the registration process: (a) CPAs/CPA firms must register annually with the OSA. (b) If a CPA firm has multiple offices, each office wishing to be included on the list must register. (c) To be included on the list of registered CPAs/CPA firms, all prior contract audits under the purview of the OSA must have been submitted within the contract requirements. (d) Registration forms will not be processed by the OSA prior to November 1 preceding the calendar year of registration. (e) Registration forms received by the OSA during a calendar year will be processed within 15 days of receipt and the CPA/CPA firm will be placed on the list of registered CPAs/CPA firms if warranted. (f) Being placed on the OSA’s list of registered CPAs/CPA firms in no way assures a CPA/CPA firm of being awarded a contract by a state agency or local governmental entity. (g) Multi-year contracts are not prohibited. (h) While the registration form submitted by the CPA/CPA firm will be subject to the public information statutes, the only information that will be posted to the OSA website will be the CPA/CPA firm name, contact person, mailing address, phone number, fax number and e-mail address. (i) Being included on the OSA list of registered CPAs/CPA firms does not signify any level of assurance of the quality of work of the CPA/CPA firm by the OSA.

History

Source: Miss. Code Ann. § 7-7- 211.

4 Miss. Admin. Code Pt. 4, R. 1.4 Circumstances in Which a CPA/CPA Firm Will Not be Included on the OSA Listing

The OSA may, for good cause, not list a CPA/CPA firm on its list of CPAs/CPA firms interested in offering audit services to state agencies and local governmental entities. The circumstances leading to this decision include, but are not limited to: (a) non-submission of registration form (b) information on submitted registration form incomplete (c) information on submitted registration form inaccurate (d) required attachment to registration form not attached (e) receiving a failing PEER review

History

Source: Miss. Code Ann. § 7-7- 211.

4 Miss. Admin. Code Pt. 4, R. 1.5 Where to Submit the CPA/CPA Firm Registration Form

All requests must be mailed, delivered or transmitted via facsimile to the OSA. They may also be submitted electronically via e-mail.

MISSISSIPPI OFFICE of THE STATE AUDITOR CPA/CPA Firm Registration Form – Attachment 1 NOTES: 1. CPAs/CPA firms must register annually with the Office of the State Auditor. 2. If a CPA firm has multiple offices, each office wishing to be included on the list must register. 3. To be included on the list of registered CPAs/CPA firms, all prior contract audits under the purview of the Office of the State Auditor must have been submitted within the contract requirements. 4. Registration forms will not be processed by the Office of the State Auditor prior to November 1 preceding the calendar year of registration. 5. Registration forms received by the Office of the State Auditor during a calendar year will be processed within 15 days of receipt and the CPA/CPA firm will be placed on the list of registered CPAs/CPA firms if warranted. 6. Being placed on the Office of the State Auditor’s list of registered CPAs/CPA firms in no way assures a CPA/CPA firm of being awarded a contract by a state agency or local government. 7. The maintenance of a list of registered CPAs/CPA firms by the Office of the State Auditor in no way affects the method used by a state agency or local government to select an auditor.

I (We) desire to be included on the Office of the State Auditor’s calendar year _________ list of CPAs/CPA firms offering audit services to state agencies and local governments of the State of Mississippi: CPA/CPA Firm: Contact Person: Mailing Address:

Phone Number: Fax Number: E-mail Address:

OFFICE OF THE STATE AUDITOR USE ONLY Date Received: Processed By: Approved: Denied: Date of Approval Director of Financial & or Denial Compliance Audit: ATTACHMENT 1: PAGE 1

MISSISSIPPI OFFICE of THE STATE AUDITOR CPA/CPA Firm Registration Form - Attachment 1 1. If a CPA firm, does the firm have a CPA firm permit from the Mississippi State Board of Public Accountancy to practice in the State of Mississippi? (Miss. Code Ann. Section 73-33-1 (1972)). Yes No N/A If yes, CPA Firm Permit Number: 2. Provide a list of employees who may be working on governmental audits during the year. TOTAL YEARS OF YEARS OF GOVERNMENTAL NAME POSITION EXPERIENCE AUDIT EXPERIENCE

(Attach Additional Sheet if Necessary) 3. If applicable, are employees listed above in good standing with the Mississippi State Board of Public Accountancy and the American Institute of Certified Public Accountants? Yes No If No, please identify the employee and explain reason:

ATTACHMENT 1: PAGE 2

MISSISSIPPI OFFICE of THE STATE AUDITOR CPA/CPA Firm Registration Form – Attachment 1 4. Have all employees listed above met the CPE requirements as required by Government Auditing Standards? Yes No If No, please identify the employee and explain reason why not met:

If a CPA firm, is the firm in good standing with the Mississippi State Board of Public Accountancy? Yes No If No, please explain reason:
Have you or the CPA firm, if applicable, been disciplined by any regulatory, federal or state Jurisdiction? Yes No If Yes, please provide name of jurisdiction, date, reason and resolution:

ATTACHMENT 1: PAGE 3

MISSISSIPPI OFFICE of THE STATE AUDITOR CPA/CPA Firm Registration Form – Attachment 1 7. Have you had an external quality control review (peer review) conducted as required by Government Auditing Standards and the Mississippi State Board of Public Accountancy? Yes No If Yes, date of most recent review: If No, when is the next review planned:

(NOTE: A copy of your most recent external quality control review (peer review), including the letter of comments and letter of response, must accompany this form.)

THE ABOVE INFORMATION IS ACCURATE, TO THE BEST OF MY KNOWLEDGE: (Submission of incomplete or inaccurate information could result in the individual or firm being removed from the listing.)

Signature of CPA/CPA Firm’s Representative:

Printed Name:

Date:

Please Submit: 1. Completed application 2. Copy of your most recent external quality control review (peer review), including the letter of comments and letter of response (if applicable)

To: Office of the State Auditor Financial and Compliance Audit Division P.O. Box 956 Jackson, MS 39205

History

Source: Miss. Code Ann. § 7-7- 211.

Part 5 State Assessments

Chapter 1 Administrative Procedure Regulating Procedure for Settlement and Refund State Imposed Assessments

4 Miss. Admin. Code Pt. 5, R. 1.1 Definitions

(1) Assessments - The term assessments shall include all court imposed fees, fines, or other amounts imposed upon a defendant or other person responsible for such costs in municipal or county courts; which are required by state law to be collected by the court and settled to a state agency. These include, but not limited to, amounts to be collected for settlement to the state and classified as State Uniform Assessment (Section 99-19-73), State Court Constituents Assessment (Section 37-26-9), Crime Stoppers Assessments (Section 45-39-17), State Appearance Bond Fees (Section 83-39-31), State Game and Fish License Assessments (Section 49-7-21), State Criminal Justice fund Assessments (Section 97-19-67), Domestic Violence Fee (Section 25-7- 13), Drivers License Reinstatement Fee (Section 63-11-30), Drug Abuse Drivers License Reinstatement Fees (Section 63-1-71), Highway Patrol and Local Citation Assessment (Section 63-9-31), Adult Drivers Training Fee (Section 63-9-11), State Court Education Assessment (Section 37-26-3) and Compulsory Motor Vehicle liability Insurance Fines (Section 63-15-4). (2) State Agency - This term shall include, but not be limited to, the Department of Finance and Administration and the Mississippi Department of Public Safety.

History

Source: Miss. Code Ann. §§ 7-7-211, 25-7-13, 37-26-3, 37-26-9, 45-39-17, 49-7-21, 63-1-71, 63-9-11, 63-9-31, 63-11-30, 63-15-4, 83-39-31, 97-19-67, 99-19-73.

4 Miss. Admin. Code Pt. 5, R. 1.2 Collection of Assessments

(a) Who Collects Assessments - Only the clerk of the court or authorized deputy court clerk may receipt an assessment collection. (b) How Assessments are Collected - (1) Cash (2) Check from a Miss. resident paying a Title 63 Ch. 3, 5, or 7 traffic violation (required by Section 63-9-12). Court Clerks are not responsible for bad checks received in payment of these types of violations if a reasonable collection effort is made. (3) Other Check, Money Order, etc. (i) Clerk is responsible for bad collections, accepted at personal risk. (ii) If a bad check is received, Sec. 97-19-57 explains the procedure for notification to the defendant that a check has been dishonored and to authorize the service charge. (4) Working Assessments Off may be authorized by the court, Sec. 47-1-47 & Sec. 99-19-20 (A.G. Priscilla Daniels 10/3/90). The county does not reimburse the state for the loss. (The county also does not pay the constable for his loss A. G. Opinion Sue Gann, 9/11/91).

History

Source: Miss. Code Ann. §§ 7-7-211, 47-1-47, 63-9-12, 99-19-20.

4 Miss. Admin. Code Pt. 5, R. 1.3 Partial Collections

(a) Partial payments are classified as assessments based on judges “order of collection policy” (A. G. 9/25/86). However, Section 25-7-27(2) requires constables to be paid from first collections. (b) Partial collections must be settled monthly.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 5, R. 1.4 Accounting for Assessments

(a) Receipts, as required by state law, must be issued to support each collection. (b) Settlement of collections must be made (daily) Section 25-1-72. (c) Account Funds (1) Criminal assessments held by Court Clerks must be accounted for within the appropriate fund authorized by state law for use by the court. (2) Cash Bond Appearance Bond Fees collected in advance must be held in a “Clearing Account” a along with the bond until a determination of guilty, not guilty, dismissed, or nolle prosequi. (3) The Chancery Clerks and Municipal Clerks must maintain a “State Assessment Clearing Fund” to account for assessment collections received from court clerks; and to be settled to state agencies or refunded. (d) Accounting Records Court Clerks must maintain accounting records to support collection and disbursement of assessments. Accounting procedures required by state law for other funds in the custody of the Court Clerk shall apply.

History

Source: Miss. Code Ann. § 25-1-72.

4 Miss. Admin. Code Pt. 5, R. 1.5 Settlement of Assessments

(a) Daily Settlement – all collections of assessments must be settled by the court clerk into the depository/treasure within one working day. (See Miss. Code Ann. Section 25-1-72). (1) Monthly Settlement (i) County Courts - all collections of assessments in county courts must be settled and reported by the Court Clerks to the Chancery Clerk on no less than a monthly basis (See Section 9-11-19). The Chancery Clerk must make monthly settlement of assessments to the state as required by these regulations and Section 99-19-73. (ii) Municipal Courts - all collections of assessments in municipal court must be reported by the Court Clerk to the Municipal Clerk (at least) on a monthly basis. The Municipal Clerk must make a monthly settlement of assessments to the state as require by the regulations and Section 99-19-73. (2) Settlement Reports - Settlement reports prepared by Court Clerks must contain all information required by the State Agency to ultimately receive the assessment collections and other information as may be required by state law and the county or municipality, respectively. (3) Settlement Forms

(i) State Agencies - Each State Agency is authorized to prescribe a settlement form to be used by counties and municipalities when making assessment settlements. This form is to define assessments and provide such other information as the state agency may require for processing of the assessment settlement. (ii) Counties and Municipalities - Chancery Clerks and Municipal Clerks are required to prepare and provide these completed forms to State Agencies when settlements of assessments are made. (4) Settlement Codes - State Agencies prescribing settlement forms may also prescribe settlement codes to be associated with each type of assessments. Court Clerks, Chancery Clerks, and Municipal Clerks must account for and settle assessments in association with these codes. (5) Pre Code Assessment Collections - When collections are made of assessments that were imposed prior to being combined into the State Uniform Assessment system effective October 1, 1990, the amounts must be reclassified by type of violation and accounted for using the proper settlement code.

History

Source: Miss. Code Ann. §§ 9-11-19, 25-1-72, 99-19-73.

4 Miss. Admin. Code Pt. 5, R. 1.6 Refund of Assessments

(a) Refunds by Counties or Municipalities (1) Authorization of Refunds - Court Clerks may authorize a refund of an assessment when any of the following circumstances occur. (i) Over payments have been made due to collection error, (ii) upon a proper order of a court, (iii) or when a conviction has been overturned upon appeal. (2) Authorization Documentation - Certificates of Eligibility - Authorizations must be documented as follows. (i) How Documented - A “Certificate of Eligibility” is a mandatory document that must be issued by the Court Clerk to authorize refunds. This document must be prepared as a record of authorization, regardless of who makes the refund. (ii) Form of Certificate of Eligibility - A “Certificate of Eligibility” document must be written, signed and include the date, case number, payee, amount due and reason for the refund. This document may be take electronic form, as provided by Section 75-12-13 of the Mississippi Code of 1972, Annotated. (iii) Distribution of Certificate of Eligibility Copies - Copies of the certificate must be provided to the person seeking refund, the Chancery Clerk or Municipal Clerk who is to make the refund; and a copy of all certificates issued must be maintained as a record in the Court Clerk’s office.

(3) Payment of Refunds (i) County Refunds - In counties, the Chancery Clerk refunds previously settled collections which have been authorized by a “certificates of eligibility.” Copies of all certificates received must be maintained as a record to support payment of the refund. It shall not be necessary for the Board of Supervisors to approve such refunds. (ii) Municipal Refunds - In municipalities, the municipal clerk refunds previously settled collections which have been authorized by a “certificates of eligibility”. Copies of all certificates received must be maintained as a record to support payment of the refund. It shall not be necessary for the governing authorities of the municipality to approve such refunds. (iii) Court Clerk Refunds - Court Clerk’s having custody of collections authorized for refund, and who have authority to sign checks on the depository account holding the overpayment, may make refunds from the overpaid funds. (4) Source of Refunds (i) Refunds must be made from the funds into which the original money was settled. For example: an overpayment of state uniform assessment collections which was settled into the “State Assessment Clearing Fund” may only be refunded from funds currently available in that fund. (ii) If assessment money has already been settled to the state, refunds are made from later similar collections currently on hand. In counties, this includes the combined collections of similar funds from all county courts (justice, county, circuit and chancery courts). (iii) If refunds payable exceed funds on hand and/or which will be available within a reasonable amount of time, a refund may be requested from the State Agency to whom the funds were settled. See the following procedure for “Refunds by State Agencies.” (b) Refunds by State Agencies (1) Authorization of Refunds - A State Agency (Department of Finance and Administration, Mississippi Department of Public Safety, etc.) is authorized to refund assessments when any of the following circumstances occurs. (i) Overpayments of settlements have been made by a county or municipality to the agency. Overpayments may be due to, but not limited to, accounting errors, settlement errors, or overturned convictions. (ii) A court of competent jurisdiction orders a refund to be made.

(2) Authorization Documentation - A State Agency must have documentation that a refund has been authorized. Documentation includes a copy an official request for refund from the county or municipality; any of the following verifications. (i) A copy of a court order directing the refund. Such court order must be issued by a court of competent jurisdiction. (ii) An audited report issued by a Certified Public Account verifying an overpayment. (iii) A letter of verification of overpayment issued by the State Auditor or his designee. (3) Payment of Refunds - A State Agency may make authorized refund payments utilizing its usual procedures for issuing payments of obligations. (4) Source of Refunds - A State Agency may make payments from any funds legally available for payment of such obligations.

History

Source: Miss. Code Ann. §§ 7-7-211, 75-12-11, 75-12-13.

Part 6 Property Audits

Chapter 1 Regulation Regulating Property Inventory

4 Miss. Admin. Code Pt. 6, R. 1.1 Rule 1.1

All state agencies, colleges and universities are required to maintain complete and current inventory lists of each property with a cost of $1000 or more. If the price paid to acquire an item of property is unknown or if an item of property is donated, then the entity shall include the item on its property inventory if it had a fair market value of $1000 or more at the time of the acquisition.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 6, R. 1.2 Rule 1.2

The following property items shall be included on inventory regardless of the price paid to acquire the item or the fair market value of the item: (1) Weapons (2) Cameras and camera equipment (3) Two way radio equipment (4) Televisions (5) Law maintenance equipment (6) Cellular telephones (7) Computer and computer equipment (8) Chain saws (9) Air compressors (10) Welding machines (11) Generators (l2) Motorized vehicles Note: State departments and political subdivisions may be more restrictive than the provisions contained herein, but they cannot be less restrictive.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 6, R. 1.3 Rule 1.3

Items acquired through Surplus Property shall be added to an agency’s inventory list in accordance with Rule 2.01 of this Chapter: that is, Surplus Property items are added at the price the agency paid to acquire the item, not the original price of the item, nor the price it would take to purchase the item from a normal vendor.

History

Source: Miss. Code Ann. § 7-7-211.

4 Miss. Admin. Code Pt. 6, R. 1.4 Rule 1.4

In the event an agency is required to include an item on its property inventory list using the item’s fair market value, the agency will be required to maintain adequate documentation to justify how they arrived at the fair market value.

History

Source: Miss. Code Ann. § 7-7-211.

Part 7 Municipalities

4 Miss. Admin. Code Pt. 7 Municipalities

Title 4, Part 7, Chapter 1: Municipal Audit and Accounting Guide, REPEALED. Effective 11/18/2022

Part 8 Contract Audit Regulations for Counties and Public School Districts

Chapter 1 Contracts for Audits of Mississippi Counties

4 Miss. Admin. Code Pt. 8, R. 1.1 Authority

The State Auditor has authority “To postaudit and, when deemed necessary, preaudit and investigate separately the financial affairs of (i) the offices, boards and commissions of county governments and any departments and institutions thereof and therein ...”

History

Source: Miss. Code Ann. §7-7- 211

4 Miss. Admin. Code Pt. 8, R. 1.2 Scope

These regulations apply to audit contracts of Mississippi counties, including component units of counties, executed on or after September 1, 2012. Any new contracts executed after this date must conform to these regulations.

History

Source: Miss. Code Ann. §7-7- 211

4 Miss. Admin. Code Pt. 8, R. 1.3 Policy

Audits may be performed by the Auditor’s staff or by a firm registered with the State Auditor and selected by the County, unless the State Auditor decides to hire a firm. In the event the State Auditor hires a firm, the county will be billed by the State Auditor for the firm’s services. Payments made for these services will be made to the State Auditor, who will in turn pay the firm.

History

Source: Miss. Code Ann. §7-7- 211

4 Miss. Admin. Code Pt. 8, R. 1.4 Procedure

Before engaging a firm to perform an audit on his behalf, the State Auditor will obtain competitive proposals utilizing the procedures outlined in Chapter 3 of the Mississippi Procurement Manual for obtaining competitive sealed proposals.

History

Source: Miss. Code Ann. §7-7- 211, Mississippi Procurement Manual Chapter 3

4 Miss. Admin. Code Pt. 8, R. 1.5 Exception

In fiscal years in which the county is not audited by the State Auditor or his designee, the county may select a firm from a list of registered firms maintained by the State Auditor. The State Auditor shall be a party to the contract entered into for these audits, and has the right to reject the county’s choice of firm.

STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR STACEY E. PICKERING AUDITOR

History

Source: Miss. Code Ann. §7-7- 211

Chapter 2 Contracts for Audits of Mississippi Public School Districts

4 Miss. Admin. Code Pt. 8, R. 2.1 Authority

The State Auditor shall give reasonable notice to school districts regarding the times during which the State Auditor will perform such audits. In any fiscal year in which the State Auditor is not scheduled to perform an audit, the school board shall cause all the financial records of the superintendent of schools to be audited in accordance with Section 7-7- 211(e). If the school board so elects by resolution adopted each year, the audit shall be performed by the State Auditor. Contracts for the audit of public school districts shall be let by the school board in the manner prescribed by the State Auditor.

History

Source: Miss. Code Ann. §37-9- 18(2)

4 Miss. Admin. Code Pt. 8, R. 2.2 Scope

These regulations apply to audit contracts of Mississippi school districts executed on or after September 1, 2012. Any new contracts executed after this date must conform to these regulations.

History

Source: Miss. Code Ann. §7-7- 211

4 Miss. Admin. Code Pt. 8, R. 2.3 Policy

Audits may be performed by the Auditor’s staff or by a firm registered with the State Auditor and selected by the district, unless the State Auditor decides to hire a firm. In the event the State Auditor hires a firm, the district will be billed by the State Auditor for the firm’s services. Payments made for these services will be made to the State Auditor, who will in turn pay the firm.

History

Source: Miss. Code Ann. §7-7- 211

4 Miss. Admin. Code Pt. 8, R. 2.4 Procedure

History

Source: Miss. Code Ann. §7-7- 211, Mississippi Procurement Manual Chapter 3

4 Miss. Admin. Code Pt. 8, R. 2.5 Exception

In fiscal years in which the district is not audited by the State Auditor or his designee, the school district may select a firm from a list of registered firms maintained by the State Auditor. The State Auditor shall be a party to the contract entered into for these audits, and has the right to reject the school district’s choice of firm.

History

Source: Miss. Code Ann. §7-7- 211

Part 9 Annual Financial Reporting of Municipal Books

4 Miss. Admin. Code Pt. 9 Annual Financial Reporting of Municipal Books

Title 4, Part 9: OSA Circular No. 17

STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR SHAD WHITE AUDITOR

OSA Circular No. 17

ANNUAL FINANCIAL REPORTING OF MUNICIPAL BOOKS

The following reporting requirements are established by the Office of the State Auditor to be followed when municipal governing authorities contract for the municipality's annual financial report, in accordance with Section 21-35-31 of the Mississippi Code 1972 Annotated. These regulations are effective July 1. 2022.

There are reporting options that municipal authorities may contract for that will be acceptable in accordance with Mississippi Code Section 21-35-31. The requirements of each option may be located in the Financial Reporting Section of the Municipal Accounting and Audit Guide which is located on the State Auditors website at www.osa.ms.gov.

Source: Miss. Code Ann. §21-35-31 (Rev. 2018).