ND State Soil Conservation Committee
North Dakota State University - NDSU Extension
Service
Supervisor's Handbook Section - District Operations
This
sub-section contains the following topics:
Expenses and
Compensation of District Supervisors
Guidelines
for Notices and Conducting of Public Meetings/District
Meetings
How Soil
Conservation Districts are Financed
Depositing
of District Funds
District
Accounting Procedure
Soil
Conservation District
Records
State /
Federal Audit Requirements
Soil
Conservation District
Bonding
EXPENSES OF DISTRICT SUPERVISORS
N.D.C.C.
44-08-04 & 54-06-09
Each elective or appointive officer, employee, representative, or agent
of this State, or of any of its subdivisions, agencies, bureaus, boards, or
commissions, shall be paid an allowance
for meals, lodging and mileage while
engaged in the discharge of a public duty away from his/her normal working and
living residence. The rates are determined by the state legislature
and can only be
changed by them.
Allowable travel expense reimbursement rates for
IN-STATE TRAVEL are:
An individual
claiming travel must be away from his/her normal place of employment and
residence a minimum of four (4) hours to receive any reimbursement. All lodging is reimbursed at
actual
cost up to the maximum. Single
room rate only - when accompanied on a district-authorized trip by a
spouse, the individual should have the hotel/motel certify the room rate for
a
single person so only the appropriate amount can be charged to the district. Maximum quarter-day reimbursements for meals and lodging are
as follows:
|
|
|
Maximum Allowable |
|
Registration |
$20.00 |
$20.00 |
|
Breakfast |
5.00 |
5.00 |
|
Lunch |
8.00 |
7.50 |
|
Dinner |
15.00 |
12.50 |
|
Total |
48.00 |
45.00 |
|
|
|
Maximum
Allowable |
|
Registration: |
$48.00 |
$48.00 |
|
|
|
Maximum
Allowable |
|
Registration: Includes Dinner |
$35.00 |
$35.00 |
|
Breakfast |
5.00 |
5.00 |
|
Lunch |
8.00 |
7.50 |
|
Total |
48.00 |
47.50 |
By purchasing a package (registration where meals are included), you
can be reimbursed for the entire cost of the meals included in each package. However, if
a meal is included
in a registration fee, the applicable
quarter allowance cannot be claimed for the meal. Meals purchased singular on the registration form must
be
reimbursed at the maximum allowable
in-state rate.
Claims
may also be made for meals which are included as part of a registration fee
for a conference, seminar, or other meeting; however,
if a meal is included
in a registration
fee, the applicable quarter
allowance cannot be claimed for the meal.
Personal
vehicle mileage reimbursement is .45 cents
per mile. District supervisors and staff must follow state
guidelines and not county and/or federal rates
which may be higher
or lower.
Districts are political subdivisions of state government. District supervisors may establish personal vehicle mileage
reimbursement
rates for district operations below the
maximum allowed by state
government.
Personal
vehicle mileage reimbursement is .45
cents per mile if the travel is by truck, the use of which is
required
by the employing district.
Allowable travel expense reimbursement rates for
OUT-OF-STATE TRAVEL are:
---
When,
for reasons of personal preference or convenience, an individual uses a motor
vehicle for out-of-state travel, reimbursement will be limited to either
the
applicable commercial air rate or the normal out-of-state mileage rate (.45
cents per mile for 600 miles, 27
cents per mile for additional miles), whichever is less.
If more than one individual (board member/employee) travels in the same
vehicle, .45 cents for the entire trip will be allowed.
--- Due to
allowable meal rate variances between cities, please call the SSCC office for
allowable meal rates when traveling out-of-state.
--- If
registration fees cover any meals, those meals provided must be deducted as
stated in item 2 under In-State travel.
--- All lodging is reimbursed at actual lodging expense.
Single room rate only
- when accompanied on a district-authorized trip by a spouse, the
individual
should have the hotel/motel certify the room rate for a single person so only
the appropriate amount can be charged to the district.
Recommended
Policy for NACD Conventions:
· The State Soil
Conservation Committee recommends to North Dakota supervisors that districts
should limit themselves to the reimbursement
of allowable expenses of not more
than two delegates, and if more wish to attend the national convention, costs
should be pro-rated equally for all delegates.
No elective or appointive officer, employee, representative, or agent
of this state, or of any of its subdivisions, agencies, bureaus, boards, or
commissions, shall
willfully make claim
upon, or willfully receive, any public
funds for travel expenses, while engaged upon public business, in an amount in
excess of that allowed by
law for such travel.
Where more
than one public officer, employee, representative, or agent
travel in the same car while engaged upon official duty, whether
or not
belonging to different departments, subdivisions,
boards, or commissions, no
more than one mileage claim shall be made, such claim to be made by the
owner
or lessee of the car. Only supervisors, officers, employees, or assisting agency member
representing the district may be reimbursed those
expenses which are
provided by law.
The
expenses of a district supervisor’s spouse cannot be paid from district
funds.
SUPERVISOR COMPENSATION
This authority was provided through an amendment to the ND Soil
Conservation Districts Law, Section
4-22-22, ND Century
Code, which states,
“The
supervisors of soil
conservation districts are entitled to receive, upon a
majority vote of the supervisors, up to sixty-two dollars and fifty cents
for attending each
regular or special
meeting or for attending other meetings or events in the
performance of their official duties as compensation
for their services.”
Legal
Definitions
1. The law provides for a district to elect to pay its supervisors an
amount up to $62.50.
2. The
local districts determine the meetings and events they will receive supervisor
compensation for. The meetings
and events must be part of the
supervisor’s official duties.
3.
All soil
conservation district supervisors are entitled to receive up to $62.50
compensation (salary) if their district chooses to utilize the option of
providing this
compensation. However,
a supervisor need not accept the compensation if he/she so chooses.
For example, it is legal to have only three members on a five member
district board receiving this compensation and have the remaining two members
elect not to receive the compensation.
A supervisor does have this choice.
This action should be documented in the district minutes.
4. Social
Security (FICA) tax must be withheld from this compensation.
5. Advisors are not eligible for supervisor compensation.
Supervisors
are entitled to compensation at authorized meetings when a quorum is not
present but minutes are kept. Supervisors
are not entitled to compensation
if there is no
quorum and the meeting
canceled.
Back to top
GUIDELINES FOR NOTICES
These Guidelines were developed to assist Soil Conservation Districts
in complying with Section
44-04-20 of the North Dakota Century Code (Notice of
Meetings of All Public Bodies).
What
The Law Requires Of Soil Conservation Districts
I. PUBLIC NOTICE MUST BE GIVEN IN ADVANCE OF ALL MEETINGS.
A. WHAT MUST BE CONTAINED IN
THE NOTICE?
Date; Time; Place; Topics
to be considered, where practicable, including the general subject matter of
any executive session to be held during the meeting.
And, ADA disclosure and
request for
notification of need of auxiliary services (refer to ADA section).
B. WHAT KIND OF NOTICE
IS REQUIRED? Regular Soil Conservation
District Meetings--with an annual schedule.
-A schedule for these meetings must be filed with the County
Auditor by January 31 of the year
for which the schedule applies.
-In addition, a written notice of each meeting must be posted
in a conspicuous place at each soil conservation district’s main office, and
at the location
of the meeting on the day of the meeting.
-Each notice must be posted no later than the time the
supervisors of the soil conservation district are notified of the meeting. This would probably be as
soon as possible after the preceding soil conservation district meeting.
-Soil conservation districts should provide an Actual Notice of every
meeting to the public through local media representatives.
This notice should be
given to the media representatives even though
they may not have specifically made such a request.
Regular
Soil Conservation District Meetings -- with no annual schedule.
-For those soil conservation districts that hold a regular meeting,
but for which no certain date is set in an annual meeting schedule it establishes, one
written notice must be
posted in a conspicuous place at each place the soil conservation district regularly holds meetings
and its office. The notice must also
be filed with the County Auditor.
-Each posted notice must be posted no later than the time the
supervisors of the soil conservation district who are to meet are notified of the meeting.
This would probably be
as soon as possible after the preceding soil conservation district meeting.
Emergency or Special Soil Conservation District Meeting - Written notice must be posted in accordance with 1(b) and (c) or 2(a)
and (b), above.
- Written or oral notice must be given to the public entity's official
newspaper, if any, and any member of the news media who requests it. A soil conservation
district may
require news
media representatives to file a written request with the soil conservation district
at the beginning of every year if they want to be notified
of meetings on a regular basis. However, no
unwritten, or request given immediately preceding a meeting should be denied. To follow the spirit
of this law,
consideration should be given to giving news media representatives
notice of
your meetings even if they don't request it. The notice must contain the time, place,
date and
topics to be considered, and must be given at the same time as the members are notified.
- Topics that may be considered at an emergency or special
meeting are limited to those included in the Notice to the media.
C. WHO IS RESPONSIBLE FOR GIVING THESE NOTICES? The Chair of the soil conservation
district has the responsibility of assuring that the
public notice is given.
In most cases the
soil conservation district will have the district clerk send out or give
meeting notices.
II. AGENDAS AND SCHEDULES
A. WHAT IF THE AGENDA ISN'T
KNOWN AHEAD OF TIME?
The law requires the agenda, or topics to be considered, to be included
where practicable.
It would
seem
that at least some general topics would be known at the time most meeting
notices are given, even if a specific agenda isn’t determined until shortly
before the meeting.
However, if
no topics or agendas are available at the time notice is given, then it would
not be “practicable” to include them in the notice.
The law also provides that a departure from the agenda given out in the
notice, or the lack of an agenda included with the notice, will not affect the
validity of
the meeting.
It is advisable that you include an ADA disclosure and request of
notification of need for auxiliary services.
SUGGESTED ORDER OF BUSINESS
FOR DISTRICT MEETINGS
I.
Call to order
II. Roll call
A. Those present
B. Those absent
III Minutes of previous meeting
IV. Treasurer's Report
V. Old business
VI. Committee reports
A.
Standing committees of supervisors
B.
Other
VII. Correspondence
A. State Soil Conservation Committee
B. North Dakota Association of Soil Conservation Districts
C. Natural Resources Conservation Service
D. Other
VIII. Report of district employees
IX. Report of cooperating agencies
A.
District Conservationist
B. Extension Agent
C. Other
X. New business
XI. Approve applications and agreements
XII. Establish priorities and goals and review Annual Plan of Work
XIII. Plans for next meeting (activity, date, time, place)
XIV. Adjournment
Any material your district feels in time to come may have historical
value should be preserved and made a part of your permanent records.
COMMON RULES FOR CONDUCTING BUSINESS
After the minutes have been read, the chair may ask, “Are there any corrections or
additions to the minutes as read?” He
may wait a moment and if there are no
corrections, say,
“If not, they stand
approved as read.” However, it
is not out of order and it is often advisable to have such minutes accepted or
approved by a
formal vote. Such
action
would require a motion and a second.
Amendments to a motion must be seconded the same as the main motion to
which it applies. The amendments
should be voted on before action is taken
on the main motion.
A motion should not be discussed until it has been seconded and restated by the
chair.
Motions
which introduce business when no other motions are pending are referred to as “Main Motions” and must be seconded.
When it is moved that the
report of a nomination
committee be accepted
or that nominations cease or that the secretary be instructed to cast a
unanimous ballot for those nominated, this is a
main motion and as such
requires a second.
"Main Motions" should be opened for discussion before putting to a vote.
A “call of question” is a demand that the
motion be put to a vote.
Nominations made from the floor do not need
to be seconded.
The chair cannot ignore a motion.
The chair must “put” a motion to vote
if it has been properly made and
seconded.
The chair does not vote when the vote is by
acclamation (except in case of ties).
The chair may always vote when
the vote is taken by ballot or by roll
call.
In a business meeting, it is only after a member has addressed the presiding
officer and has been “recognized” that he
is privileged to speak and to
present his proposal or motion.
When a motion to adjourn is made and seconded, it must be put to
a vote without
discussion except
when a supplementary motion is made to fix a time to
adjourn.
It is the responsibility of the person serving as secretary for the
board to see that a complete and accurate set of minutes are kept of the
official board meetings.
The
district supervisors
may wish that the district clerk actually record the
minutes. It is suggested that
official minutes of meetings be kept in a minute book.
A careful record of all official business of the district
should be
maintained.
Minutes of official meetings
of the board of supervisors should include the following minimum information:
- Date, time, and place of meeting.
-Whether the meeting is regular or special and, if special, the purpose
of the meeting.
-The names of the supervisors present, the name of the presiding
officer, and a statement as to whether or not a quorum was present as declared
by the
presiding officer.
-The names of advisory personnel and visitors present.
-That minutes of the previous meeting were read and approved. If corrections were necessary, the corrections should be so stated.
-A brief review of each item of correspondence and a record of action
taken on correspondence.
-Each item of old and new business brought before the board, a record
of each motion made showing the exact wording of the motion, and the voting
result.
{Chapter
44-04-21,
N.D.C.C. requires that all votes of whatever kind taken at any public
meeting must be open, public votes, and all nonprocedural
(e.g., all issues,
major decisions, recommendations) votes must be recorded roll call votes, with
the votes of each member being made public at the open meeting.
The minutes must show the results of every vote taken at the meeting,
and must show the recorded vote of each member on every recorded roll call
vote.}
-Authorization for expenditure of funds. Such expenditures should be itemized.
-A brief account of reports by committees or by personnel assisting
districts.
-Comments by visitors.
-The time of adjournment.
Back to top
HOW SOIL CONSERVATION DISTRICTS ARE FINANCED
Services
For the most part districts are financed through the charges they make
for supplying special equipment or services provided cooperators.
All districts own and operate specialized types of machinery needed to
carry out soil conservation practices such as tree planters and maintenance
equipment,
no-till drills,
undercutters and shredders, and grass seeders.
Charges should be calculated at a minimum to pay for materials,
operating costs, equipment and overhead.
Charges for district services should pay all the above costs and
provide the necessary funds for the district to carry out its conservation
program. Also, it includes
education,
promotion, and/or other related services as deemed necessary by the
Board of Supervisors to complete the work.
Under no circumstances can a district make a charge for the technical services of Natural Resources Conservation Service personnel.
Newsletter
In order for districts to print a newsletter it is sometimes necessary
for the district to secure sponsors. When
this method is used it is customary for the sponsors
to be listed in
the
newsletter.
County
Commissioners (N.D.C.C.
4-22-23.1)
in the performance
of their duties.
Water
Resource District
Water Resource Districts have assisted districts with financial
assistance for Non Point Source 319 water quality programs in project
development and implementation.
State
General Funds
The State Soil Conservation Committee (SSCC) has provided state
appropriated funds to districts for the Soil Conservation District Technician
Program.
The funds may be
used
for the salaries and fringe benefits of a district technician. The NDSU Extension Service with direction from the Committee will
administer
state funding as of July 1, 1997.
Mill
Levy
Districts may levy a tax, not exceeding one mill, for the payment of
district expenses and programs (see mill levy authority). Districts may also seek additional
mill levy funding
by submitting a
request for a certain number of mills to a vote of the qualified electors in
the district (N.D.C.C. 4-22-26
(17).
Charitable
Gaming Funds
of
chance as
indicated by rule 99-01-02-01 and 99-01.1-04-04 of the State
Administrative Rules. Districts
may want to develop conservation proposals to submit
to their local
charitable organization(s) for funding.
NPS
319 Funds
North Dakota
Department of Health, 1200 Missouri Avenue, PO
Box 5520, Bismarck, ND 58502-5520, (701) 328-5150. Project funds can
be utilized for
various activities, such as technical
assistance, cost
share and education.
Other
Districts receive grants and enter into agreements with ND Department
of Health, ND Wetlands Trust, Ducks Unlimited, US Fish and Wildlife Service,
Natural Resources
Conservation Service, and others for funding of conservation
services and practices.
DEPOSITING OF DISTRICT FUNDS
Chapter
21-04
The North Dakota Soil Conservation Districts Law specifies that soil
conservation districts are governmental subdivisions of this state, and are a
public body,
corporate and political. All funds derived from income or any other source are considered public
funds.
The North Dakota Century Code specifically states that public funds
belonging to or in the custody of any public corporation shall be invested in
the Bank
of North Dakota or
in financial institutions which have been
designated as depositories. The designated depositories are:
The
Bank of North Dakota; State
and national banks insured by the
Federal Deposit Insurance Corporation;
State
chartered or federally chartered savings and loans insured by the Federal
Savings and Loan Insurance Corporation; and State
chartered or federally chartered credit unions insured by the National Credit
Union Administration.
The Soil Conservation Districts Law does
not grant the authority for investment of district funds, and therefore,
any placement of funds other than those
named above are
considered illegal
investments of district funds.
Section
21-10-06
Districts under
N.D.C.C. 21-10-06
may have their funds invested by the
North Dakota Retirement and Investment Office subject to an agreement with the
North Dakota
Industrial Commission. The
Industrial Commission includes the Governor, Attorney General, and Agriculture
Commissioner. Please contact the
State Soil Conservation Committee
office should you consider utilizing this
investment alternative. The law
sunsets at the close of each biennium. However,
the
Investment Office anticipates it will be renewed in each Legislative
Session.
DISTRICT ACCOUNTING PROCEDURE
A computerized accounting program called QuickBooks
and QuickPay has been provided to
the Soil Conservation District for its bookkeeping needs.
The computer Program
Standing committee assisted in reviewing, testing and selection of this program. QuickBooks is a complete
financial reporting program
allowing a district to prepare over 20 preset
reports for the district. Reports
include:
|
< Accounts Receivable |
< Payroll Report |
|
< Accounts Payable |
< Project on Job |
|
< Profit or Loss |
< Transaction |
|
< Balance Sheet |
< Itemized Income and Expense |
|
< Cash Flow Forecast |
< General Ledger |
|
< Budget Report |
< Check Detail |
QuickPay is designed to run
with QuickBooks, taking advantage of
them and adding features that take most of the work out of payroll.
QuickPay features are:
< Calculates gross wages
< Writes payroll checks
< Calculates federal, state and locals taxes
< Tracks liabilities to government
< Updates QuickBooks
records automatically
< Records employee pay, social security number, commission and tax
exemptions
< Handles various compensation reporting
< Allows you to specify extra taxes or deductions
It is necessary for all districts to keep a general ledger or chart of
accounts. The following
headings (developed by the North Dakota Conservation
District Employee
Association Computer Program Standing Committee) should be used for manual or
computerized accounting.
Income
· Custom work (casoron application, tree cleaning)
· Grants (Soil Conservation District Technician Program)
· Interest income
· Mill levy
· Miscellaneous income
· Reimbursed expense
· Equipment rental and lease (grass drills, tree scalper,
undercutter)
· Sale of asset
· Sales (tree hand plants, flags, stakes, tree protectors, tree
planting, weed barrier fabric)
· Special projects (NPS 319, water quality, watershed projects, US
Fish & Wildlife Service)
· Sponsors (newsletter, workshop, demonstration)
Expense
· Advertising/Promotion (newspaper, radio, booth, newsletter)
· Charges (bank service charge, finance charge)
· Cost of goods sold (stakes, flags, trees, tree protectors, weed
barrier fabric)
· Conservation education (achievement program, camps,
scholarships, education materials, soil stewardship, tours, demonstrations)
· Contributions
· Depreciation
· Dues and subscriptions
· Fuel, oil and grease
· Insurance expense (life, health, liability)
· Interest expense (loan)
· Miscellaneous
· Office supplies
· Payroll (Social Security, Medicare, Wages, Workers Compensation)
· Postage
· Professional fees (accounting, legal)
·
Purchase of fixed assets
· Rent (building, equipment)
· Repairs and maintenance (building, equipment, computer)
· Shop supplies
· Supervisors (meetings, district/area/state/national)
· Taxes (specials)
· Telephone
· Utilities (electricity, garbage, gas, water)
· Workshop training (employee attendance)
Requirements
And Recommendations:
retained as a
permanent record. Districts
utilizing QuickBooks can generate
this report from the reports menu under profit and loss.
An itemized income/expense account
report should be reviewed by the district board on a monthly basis. Districts utilizing QuickBooks can generate this report automatically
from reports menu
item 8.
An unpaid bill report should also be
reviewed monthly. Districts
utilizing QuickBooks can generate
this report automatically from the reports menu.
The status of districts outstanding
receivables should be reviewed monthly. Districts
utilizing QuickBooks can generate
this report automatically from the reports menu.
SFN 3820 (Annual Financial Statement) is required annually. One copy must be forwarded to the State Soil Conservation Committee at
the close of the business year.
The
district should keep a copy on file. You
may wish to give a more complete breakdown of receipts. Districts utilizing QuickBooks can
generate this report from the
reports menu.
Financial and district program plans can either be on a calendar or
fiscal year basis.
State Soil Conservation Committee Recommendation Regarding Internal
Controls for Handling District Funds and District Audits:
1.
Internal controls for handling district funds:
· Supervisors review a monthly financial statement listing
receipts and expenses
· Maintain a check register
· Reconcile bank statement monthly
· Checks compared with billing/invoice as they are signed
· Invoices signed by employee or supervisor
· Checks signed after being prepared (preferably with dual
signatures)
· Bills examined by board prior to approval (Exception, monthly
bills such as utilities can be paid, but should be approved at the next board
meeting.)
· Immediate receipt of all collections, including cash and
interest
· Petty cash fund replenished on receipt removal
· Unused check blanks stored in secure place
· Voided checks properly identified and retained
· Maintain a fixed asset record listing the asset, actual cost and
year purchased (include at a minimum all items purchased at $250 or greater)
· Conduct an annual inventory of all assets
· Maintain record of savings and certificate of deposit accounts
· Use stamp “for deposit only” for all deposits
· Supervisor required to sign payroll checks
· District employee time cards/sheets to be signed by the employee
and applicable supervisor
· All disbursements should be by check.
2.
District audits:
-
An audit should be conducted annually (internal or external)
-
At a minimum, an external audit should be conducted every three
years
a. Who can perform audits:
(1)
Supervisors
(2) External
—Certified
Public Accountants —Business/Tax
Agency
—Bank
Officials
—Accountants
—State
Auditor’s Office
—Business Instructor
—County
Auditor/Treasurer
—Licensed Public Accountants
b. Items to be reviewed
in an audit (both internal and external)
—Review district minutes, contracts and policies
—Review general ledger, checking for payments and receipt
—Check depositing of district funds
—Review savings and certificate of deposit accounts
—Inventory current and fixed assets
—Check district payroll
—Review internal controls for handling district funds
STATE AUDIT REQUIREMENTS
N.D.C.C. §
54-10-13.
Political subdivisions - Audits - State auditor powers.
The state auditor shall
perform audits of political subdivisions
pursuant to section
54-10-14 unless
otherwise requested by the governing
board, ordered by the governor or the legislative audit and fiscal review
committee, or on petition pursuant to
section
54-10-15, or at the discretion
of the state auditor for alleged improprieties.
54-10-14. Political subdivisions - Audits - Fees - Alternative audits and
reports. The state auditor
shall audit the following political subdivisions once
every two years, except
as
provided in this section or otherwise by law:
1.
Counties.
2.
Cities
3.
Park districts.
4. School districts.
5.
Firefighters relief associations.
6.
Airport authorities.
7.
Public libraries.
8.
Water resource districts.
9. Garrison diversion conservancy district.
10.
Rural fire protection districts.
11. Special education districts.
12. Area vocational and technology centers.
13.
Correction centers.
14. Recreation service districts.
15.
Weed boards.
16.
Irrigation districts.
17.
Rural ambulance service districts.
18.
Southwest water authority.
19.
Regional planning councils.
20. Soil conservation districts.
The state auditor shall charge the political subdivision an amount
equal to the fair value of the audit and any other services rendered. The political subdivision audited
shall pay to the
state treasurer the
fees for the audit performed by the state auditor. The state treasurer shall deposit the fees in the state auditor
operating account.
Expenses
relating to political subdivision
audits must be paid from the state auditor
operating account, within the limits of legislative appropriation.
In lieu of conducting an audit every two years, the state auditor may
require annual reports from school districts with less than one hundred
enrolled students,
cities with less than three
hundred population, and other
political subdivisions subject to this section, or otherwise provided by law,
with less than one hundred
thousand dollars of annual receipts. The reports
must contain the financial information required by the
state auditor. The state auditor
also may make any additional
examination or audit determined necessary in
addition to the annual
report. When
a report is not filed, the state auditor may charge the political subdivision
an amount
equal to the fair value of the additional examination or audit and
any other services
rendered. The
state auditor may charge a political subdivision a fee not to exceed fifty
dollars an hour for the costs of reviewing the annual report.
A political subdivision, at the option of its governing body, may be
audited by a certified public accountant or licensed public accountant rather
than by the state auditor.
The
public
accountant shall comply with generally accepted government auditing
standards for audits of political subdivisions. The report must be in the form and content
required by the state
auditor.
The number of copies of the audit report requested by the
state auditor must be filed with the state auditor when the public accountant
delivers
the audit report to the political
ubdivision. The state auditor shall review the audit report to determine if the
report is in the required form and has the required content, and if
the audit
meets generally accepted
government auditing standards. The state auditor also may periodically review the public
accountant’s workpapers to determine if the
audit meets generally accepted
government
auditing standards. If
the report is in the required form and has the required content, and the
report and workpapers comply with
generally accepted government auditing
standards,
the state auditor shall accept the audit report. The state auditor may charge the political subdivision a fee of up to
fifty dollars
an hour, but not to exceed five hundred dollars per review,
for
the related costs of reviewing the audit report and workpapers.
A political subdivision may not pay a public accountant for an audit
until the state auditor has accepted the audit. However, a political subdivision may make progress
payments to the
public accountant. A political subdivision shall retain twenty percent of any
progress payment until the audit report is accepted by the state audit.
The state auditor may require the correction of any irregularities,
objectionable accounting procedures, or illegal actions on the part of the
governing board, officers,
or employees of the
political subdivision disclosed
by the audit report or workpapers, and failure to make the corrections shall
result in audits being resumed by the state
auditor until the irregularities,
objectionable accounting procedures, or illegal actions are corrected.
54-10-15.
Audits of political subdivisions by order of governor or the
legislative audit and fiscal review committee, or upon petition.
The state auditor, by
duly appointed
deputy auditors or other
authorized agents, shall audit or review the books, records, and financial
accounts of any political subdivision when ordered by
the governor or the
legislative audit and fiscal review committee, requested by the governing
board, or upon petition of at least thirty-five percent of the qualified
electors
of any political subdivision
enumerated in section
54-10-14 voting
for the office of governor at the preceding general election or, in the case
of school districts, upon petition
of at least thirty-five percent
of the
qualified electors voting at the preceding school board election.
Fees for the audits must be paid in accordance with the provisions
of
section
54-10-14.
FEDERAL AUDIT REQUIREMENTS
· Non-federal entities expending more than $300,000 annually in
federal funds to have an audit. The new circular is A-133 and is called “Audits of State, Local
Governments, and Non-Profit Organizations”. Districts receiving less than the $300,000 level will not be required
to conduct an audit by federal standards effective
for the 1997 calendar year.
SOIL CONSERVATION DISTRICT BONDING
Effective July 1, 1992, each soil conservation district applied for and
is carrying its own bond through the North Dakota Insurance Department, State
Bonding
Fund,
at no charge to the districts. Prior to this time all districts were covered under a single blanket
bond through the State Bonding Fund.
The commercial blanket bond for public employees and/or public
officials insures each district against loss of money, securities and other
property through
any fraudulent,
dishonest or criminal act or acts committed
by any of its employees, acting alone or in collusion with others.
It is recommended that each district carry bond coverage at twenty-five
percent (25%) of the total funds handled over a period of one year and that
coverage
be reviewed
annually. For
example, if a district’s total funds (income plus expenses) for a period of
one year equaled $40,000, a $10,000 bond coverage
would be sufficient to meet
the 25% recommendation. Each
supervisor and employee in a position of handling money and/or property is to
be considered
for bonding. A district has 60 days to report an incident to the State Bonding Fund
from the time of discovery.
Property insurance
for district buildings and their contents can also be purchased from the State
Fire and Tornado Fund within the ND Insurance Department.
You may
direct your questions to:
North Dakota Insurance
Department
State Bonding Fund
918 East Divide Avenue, Suite 415
Bismarck, ND 58501
- (701-328-9600)
[District Operations Section Main Page] [Policy Guidelines for Expenditures] [Billing/Collection Policy] [Records Retention / Liabilities] [Expenses of Supervisors/Districts]
[Index General Soil Conservation Committee Soil Conservation District Laws District Operations Personnel Agreements Cooperating Organizations]