STATE GOVERNMENT AND STATE AFFAIRS
67-450C. Independent financial audits of affiliated organizations to state governmental agencies or entities — Filing requirements. (1) The requirements set forth in section 67-450B(2), Idaho Code, are minimum audit requirements for all affiliated organizations to state governmental entities and include without limitation all state departments, commissions, institutions, colleges, or universities created pursuant to statute or the constitution and that receive an appropriation from the legislature.
(2) As used in this section, "affiliated organization" means an organization affiliated with an agency or entity of state government that meets all of the following criteria:
(a) The organization has separate legal standing, where neither direct association through appointment of a voting majority of the organization’s body nor fiscal dependency exists;
(b) The affiliation with a specific primary state government agency or entity is set forth in the organization’s articles of incorporation by reference to the name of the primary state government agency or entity in describing the purposes for which the organization was established; and
(c) The affiliation with a specific primary state government agency or entity is set forth in the organization’s application to the internal revenue service for exemption for payment of federal income tax pursuant to the Internal Revenue Code by reference to the name of the primary government in response to any of the questions contained in the exemption application, and the organization has been granted that exemption.
(3) Audits under these requirements are to be performed by independent auditors in accordance with generally accepted governmental auditing standards, as defined by the United States general accounting office. The auditor shall be employed on written contract.
(4) The affiliated organization’s governing body shall be required to include in its annual budget all necessary expenses for carrying out the provisions of this section.
(5) The affiliated organization shall file one (1) copy of each completed audit report with the legislative services office within nine (9) months after the end of the audit period.
(6) Federal audit requirements applicable because of expenditure of federal assistance supersede the minimum audit requirements referenced in subsection (1) of this section.
[67-450C, added 1997, ch. 209, sec. 1, p. 626; am. 2009, ch. 52, sec. 10, p. 141; am. 2021, ch. 89, sec. 18, p. 312.]