HB1571

House Bill 1571 amends Arkansas law regarding the financial audit requirements and reporting procedures for counties and municipalities. The bill defines auditing standards, establishes reporting formats, and provides options for using either a regulatory basis or an alternative basis for financial statements. It mandates that audit reports and agreed-upon procedures be submitted to the Legislative Auditor within specified timeframes and in approved electronic formats. Furthermore, the bill establishes enforcement mechanisms for non-compliance, including the withholding of state turnback funds by the Treasurer of State if required reports are not filed within eighteen months of the end of a fiscal year. If the non-compliance persists for longer than twelve months after withholding begins, the funds may be redistributed to other municipalities. The bill also updates terminology related to accounting methods and defines the scope of audits for municipal water and sewer systems.