PURPOSE: The state auditor has authority to establish standards and reporting requirements for audits performed on fire protection districts in St. Louis and Greene Counties. This rule sets forth the scope of the audit.

1. (1) Nothing in the rules promulgated for audits of fire protection districts shall be construed as restricting, limiting, or relieving the independent auditor of his/her professional judgment or responsibility.

2. (2) The independent auditor shall prepare an engagement letter in accordance with generally accepted government auditing standards. The contents of this letter should include, but are not limited to:

   1. (A) Provision that all audit documentation will be made available to the state auditor for his/her review upon his/her request; and
   2. (B) Provision that the auditor will comply with applicable rules issued by the state auditor under 15 CSR 40.

3. (3) The audit shall include those tests of the accounting records and other audit procedures which the independent auditor considers necessary in the circumstances to conform to generally accepted government auditing standards.

   1. (A) As part of the audit, the auditor shall obtain an understanding of the district and its environment, including its internal control, and assess the risk of material misstatement of the financial statements. The auditor shall also test compliance with provisions of applicable laws, regulations, contracts, and grant agreements.

   2. (B) Legal provisions which the auditor should consider in the audit include, but are not limited to:

      1. 1. Article III, Sections 38(a) and 39(3)

and Article VI, Section 25, Constitution of Missouri limitations on use of funds and credit;

1. 2. Article VI, Section 26, Constitution

of Missouri limitations on indebtedness without popular vote;

1. 3. Article VI, Section 29, Constitution

of Missouri application of funds derived from public debts;

1. 4. Article VII, Section 6, Constitution of

Missouri penalty for nepotism;

1. 5. Chapter 67, RSMo, budgetary

requirements;

1. 6. Sections 70.210 to 70.230, RSMo,

and section 432.070, RSMo, contracts;

1. 7. Section 105.145, RSMo, annual

report;

1. 8. Chapter 105, RSMo, conflict of inter-

est;

1. 9. Chapter 108, RSMo, bond issues;

and

1. 10. Chapter 321, RSMo, fire protection

districts.

AUTHORITY: section 321.690, RSMo 2000.* Original rule filed May 12, 1978, effective Sept. 11, 1978. Amended: Filed Dec. 2, 1985, effective Feb. 13, 1986. Amended: Filed June 14, 1994, effective Nov. 30, 1994. Amended: Filed Dec. 17, 2009, effective July 30, 2010. *Original authority: 321.690, RSMo 1977, amended 1981, 1986, 1991, 1993, 1998.