2012 Arizona Revised Statutes
Title 48 Special Taxing Districts
48-253 District audits and financial reviews

48-253. District audits and financial reviews

A. Each district that is organized under this title, that is not exempt under subsection F of this section and that is required to make an annual report under this article shall have its reports audited in accordance with generally accepted government auditing standards and the following:

1. Audits required by this section shall be performed annually for districts whose budgets are one million dollars or more. Districts whose budgets are one hundred thousand dollars or more but less than one million dollars shall have a financial review performed annually. Districts whose budgets are more than fifty thousand dollars and less than one hundred thousand dollars shall have a financial review performed at least biennially. Districts whose budgets are fifty thousand dollars or less shall have a financial review performed at the request of the county board of supervisors or on receipt of a request for a financial review that is signed by at least ten residents of that district. A district shall not be required to perform a financial review more than once per fiscal year.

2. A district may select an outside auditor who is a certified public accountant or a representative who is selected by the board of supervisors and who is trained as an auditor.

3. A district may advertise and use competitive bidding practices to select an agent to perform the audits or financial reviews required by this section.

B. Each district that submits a financial statement for the preceding fiscal year that has been attested to by an independent certified public accountant pursuant to section 48-251 is deemed to have complied with this section by submitting a copy of the financial statement to the county treasurer.

C. Each district shall submit a copy of the completed audit or financial review to the county treasurer and the board of supervisors within two hundred forty days after the close of the district's fiscal year or within one hundred eighty days after a request for a financial review is received by the district pursuant to subsection A, paragraph 1 of this section.

D. If a district fails to submit an audit or financial review as required by this section, any taxpayer residing in the district, the board of supervisors or the county treasurer may petition the superior court in a county where the district is organized to show cause why the audit or financial review has not been submitted. On a failure to show cause the court shall order the district to submit the audit or financial review within ten days after the judgment is entered.

E. If the court enters a judgment against the district under this section, the court may award the taxpayer, board of supervisors or county treasurer reasonable attorney fees and costs associated with bringing the action.

F. Districts organized under chapters 4, 6, 17, 22, 27 and 28 of this title are exempt from the requirements of this section.