Pursuant to state law, all governmental agencies are required to have their financial affairs thoroughly examined and audited each year by the Office of the State Auditor or independent auditors approved by the office. Certain local public bodies may be eligible to simply file a self-certification form or complete an agreed-upon procedures report (AUP) in lieu of a full audit.
To determine which financial reporting requirement applies to your local public body click here (Tiered System of Financial Reporting Determination Form).
Each year, the Office of the State Auditor awards a limited number of grants to small political subdivisions to help cover auditing costs. Among the factors considered in evaluating requests for funding, the office looks at financial need and whether completing the audit(s) or AUP(s) will prevent the entity from losing state or federal funding.