1. (a) The Office of the Inspector General in the Department shall conduct or contract for a financial and compliance audit of each local department at an interval of 4 years unless the Office of the Inspector General determines, on a case-by-case basis, that an audit occur at an interval of 3 years.

2. (b) In determining the audit interval for a local department, the Office of the Inspector General shall take into consideration:

   1. (1) the materiality and risk profile of the local department's programs and fiscal activities;
   2. (2) the nature and extent of prior audit findings of the local department; and
   3. (3) any other factor related to risk.
3. (c) The audit shall comply with the auditing standards issued by the Institute of Internal Auditors.

4. (d) A written report of the audit findings shall be prepared and distributed to:

   1. (1) the local board; and
   2. (2) the local governing authority.

Added by Acts 2007, c. 3, § 2, eff. Oct. 1, 2007. Amended by Acts 2010, c. 147, § 1, eff. Oct. 1, 2010; Acts 2025, c. 417, § 1, eff. Oct. 1, 2025; Acts 2025, c. 418, § 1, eff. Oct. 1, 2025.