(1) As provided by 2-7-506(3) , MCA, an audit of a local government entity by an independent auditor must be pursuant to a contract entered into by the governing body or managing or executive officer of the local government and the independent auditor.

(2) The department must be a party to the contract, and work under the contract may not commence until the contract is signed by the department.

(3) All contracts for conducting audits must be in a form prescribed by the department.

(4) The department will not enter into a contract in which the independent auditor and local government entity have not provided all of the information required by the contract form.

(5) The department will not enter into an audit contract covering more than three consecutive fiscal years.