24.301.208 INCORPORATION BY REFERENCE OF INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES FOR CERTIFIED LOCAL GOVERNMENTS
(1) The department adopts and incorporates by reference a document dated July 17, 2020, and entitled: "Independent Accountant's Report on Applying Agreed-Upon Procedures for Certified Local Governments."
(2) For purposes of reporting direct charges against a building code enforcement program in an agreed-upon procedures audit, time and motion or cost allocation studies will not be acceptable as a basis to support direct charges.
(3) A city, county, or town with a certified building code enforcement program that had a building code program reserve fund balance in the preceding fiscal year in excess of $10,000 and had building permit revenues in the previous fiscal year of more than $10,000 shall require its independent auditor, in conjunction with the audit required by 2-7-503, MCA, to perform agreed-upon procedures to determine whether the city, county, or town has complied with the financial related statutes and administrative rules relating to city, county, or town building code enforcement programs. The department may require cities, counties, and towns with certified building code enforcement programs which do not meet the above criteria to provide such an audit on a case-by-case basis so the department can ensure program functions are being properly performed as required by 50-60-302, MCA. The agreed-upon procedures engagement must be performed and reported in accordance with standards prescribed by the American Institute of Certified Public Accountants. The engagement must include but is not limited to procedures necessary to provide the information necessary to fully and accurately satisfy the reporting format adopted by reference in (1), as provided for in 50-60-106, MCA, and ARM 24.301.203. Use of this reporting format is mandatory.
(4) A copy of the document identified in (1) may be obtained from the Department of Labor and Industry, Building and Commercial Measurements Bureau, P.O. Box 200517, 301 South Park, Helena, MT 59620-0517. Copies may also be obtained by e-mail request sent to email@example.com, or by downloading the document from the department's web site at www.buildingcodes.mt.gov.
(5) The cost of the agreed-upon procedures engagement shall be paid by the city, county, or town, but may be considered a direct cost of the code enforcement program.
(6) Copies of the report on applying agreed-upon procedures shall be filed with both the department and the Local Government Services Bureau of the Department of Administration.
History: 50-60-203, 50-60-302, MCA; IMP, 50-60-302, MCA; NEW, 1998 MAR p. 2563, Eff. 9/25/98; AMD, 1999 MAR p. 1885, Eff. 10/1/99; TRANS, from Commerce, & AMD, 2001 MAR p. 2293, Eff. 11/22/01; AMD, 2003 MAR p. 2299, Eff. 10/17/03; AMD, 2007 MAR p. 112, Eff. 1/26/07; AMD, 2019 MAR p. 2242, Eff. 12/7/19; AMD, 2022 MAR p. 911, Eff. 6/11/22.