Arkansas Code
Subchapter 4 - Arkansas Legislative Audit
§ 10-4-410. Audit costs

(a)
(1) The Legislative Auditor shall cause to be maintained a sufficient accounting of the audit costs incurred by Arkansas Legislative Audit in auditing entities of the state and political subdivisions of the state.
(2) The audit costs shall provide a basis for determining a reasonable reimbursement from entities of the state and political subdivisions of the state for the cost of auditing federal funds received by these entities.

(b)
(1) The administrative cost of auditing political subdivisions of the state shall be paid from the Ad Valorem Tax Fund as prescribed by § 19-5-906.
(2) If these taxes or any part thereof are no longer collected or deposited into the State Treasury or if there is a diminution in these taxes, then the operating cost of auditing the political subdivisions of the state incurred by Arkansas Legislative Audit shall be paid from other moneys deposited into the General Revenue Fund Account of the State Apportionment Fund.
(3) As soon as practical after the close of each fiscal year, the Legislative Auditor shall certify to the Chief Fiscal Officer of the State the amount of funds expended during the fiscal year just ending which is to be allocated to the state audit function and to the local audit function of Arkansas Legislative Audit.
(4) The Chief Fiscal Officer of the State shall utilize this certification in determining those expenses which are eligible to be reimbursed from the Ad Valorem Tax Fund.

(c) If it is determined by the Legislative Joint Auditing Committee that the reimbursement for the auditing of entities of the state is appropriate, the Legislative Auditor and the Secretary of the Department of Finance and Administration shall develop guidelines for effecting proper budgetary and accounting procedures for the reimbursements.

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