reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 11. Executive Branch Records › 2-6-1107. State records committee -- composition and meetings

2-6-1107. State records committee -- composition and meetings.
(1) There is a state records committee composed of:
(a) representatives of:
(i) the department of administration;
(ii) the legislative auditor;
(iii) the attorney general;
(iv) the secretary of state;
(v) the Montana historical society;
(vi) the governor;
(vii) the clerk of the supreme court; and
(viii) the state chief information officer; and
(b) five members representing executive branch agencies designated pursuant to subsections (4) and (5).
(2) The state records committee is administered by the secretary of state, and the secretary of state's representative serves as the presiding officer for the committee.
(3) The committee members representing the agencies in subsection (1)(a) are designated by the heads of the respective agencies, and their appointments must be submitted in writing to the secretary of state. These committee members serve at the pleasure of the heads of their respective agencies.
(4) To implement subsection (1)(b), the committee members in subsection (1)(a) shall develop a rotation by which each of the executive branch agencies is designated to select a representative to serve a 2-year term as a committee member. The secretary of state shall adopt the rotation by administrative rule.
(5) The committee shall establish guidelines for the heads of executive branch agencies in appointing representatives to ensure the executive branch representatives provide a balance of perspectives from records management, information technology, and legal professionals.
(6) The committee shall meet at least quarterly.
(7) Committee members shall serve without additional salary but are entitled to reimbursement for travel expenses incurred while engaged in committee activities as provided for in 2-18-501 through 2-18-503. Expenses must be paid from the appropriations made for operation of their respective agencies.
History: En. Sec. 15, Ch. 348, L. 2015.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 11. Executive Branch Records › 2-6-1108. State records committee -- duties and responsibilities

2-6-1108. State records committee -- duties and responsibilities.
The purpose of the state records committee is to act as a resource for executive branch agencies and others by staying at the forefront of records management best practices. The committee shall:
(1) gather and disseminate information on all phases of records management;
(2) advise the secretary of state in developing records management standards, guidelines, and training materials;
(3) develop guidelines to help agencies identify, maintain, and secure their essential records;
(4) serve as a forum for continuing collaboration among records management, information technology, and legal professionals throughout state agencies;
(5) make recommendations to the secretary of state for rulemaking regarding public records management;
(6) regularly review existing public records laws and make recommendations to the secretary of state regarding pursuing statutory change; and
(7) report biennially to the governor and, as provided in 5-11-210, the legislature on the activities of the committee, improvements in records management in state government, aspects of records management requiring further improvement, and committee recommendations and plans for further improvement.
History: En. Sec. 16, Ch. 348, L. 2015.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 11. Executive Branch Records › 2-6-1109. Retention and disposition subcommittee -- approval required for record disposal

2-6-1109. Retention and disposition subcommittee -- approval required for record disposal.
(1) There is a subcommittee of the state records committee to be known as the retention and disposition subcommittee. The subcommittee is composed of the members of the state records committee who represent the following offices:
(a) the department of administration;
(b) the legislative auditor;
(c) the attorney general;
(d) the secretary of state; and
(e) the Montana historical society.
(2) The subcommittee shall approve, modify, or disapprove the recommendations on retention schedules of all public records.
(3) Except as provided in subsection (4), no public record may be disposed of or destroyed without the unanimous approval of the subcommittee. When approval is required, a request for the disposal or destruction must be submitted to the subcommittee by the agency concerned.
(4) The subcommittee may by unanimous approval establish categories of records for which no disposal request is required if those records are retained for the designated retention period.
History: En. Sec. 17, Ch. 348, L. 2015.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 11. Executive Branch Records › 2-6-1112. Historic records -- Montana historical society -- powers and duties

2-6-1112. Historic records -- Montana historical society -- powers and duties.
To ensure the proper management and safeguarding of historic records, the Montana historical society shall:
(1) establish and operate the state archives as authorized by appropriation for the purpose of storing, preserving, and providing access to historic records transferred to the custody of the state archives;
(2) in cooperation with the secretary of state, the local government records committee, and the state records committee, establish guidelines to inventory, catalog, retain, transfer, and provide access to all historic records;
(3) maintain and enforce restrictions on access to historic records in the custody of the state archives in accordance with the provisions of this part; and
(4) in accordance with the guidelines established pursuant to subsection (2), remove and destroy duplicate records and records considered to have no historical value.
History: En. Sec. 18, Ch. 348, L. 2015.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 11. Executive Branch Records › 2-6-1113. Constitutional officer records -- Montana historical society

2-6-1113. Constitutional officer records -- Montana historical society.
(1) All constitutional officer records are the property of the state. The records must be delivered by outgoing constitutional officers to their successors, who shall preserve, store, transfer, destroy, or dispose of and otherwise manage them in accordance with the provisions of this section.
(2) Within 2 years after taking office as a constitutional officer, the current constitutional officer shall consult with staff members of the Montana historical society and transfer to the Montana historical society all of the constitutional officer records of the prior officeholder that are not necessary to the current operation of that office and are considered worthy of preservation.
(3) An outgoing constitutional officer, in consultation with staff members of the Montana historical society, shall review constitutional officer records and isolate any items of a purely personal nature. The personal papers are not subject to this section, but they may be deposited along with the constitutional officer records at the Montana historical society at the constitutional officer's discretion.
(4) An outgoing constitutional officer, in consultation with staff members of the Montana historical society, may restrict access to certain segments of that officer's records. Restrictions may not be longer than the lifetime of the depositing official. Restricted access may be imposed only to protect the confidentiality of personal information contained in the records. Restricted access may not be imposed unless the demand of individual privacy clearly exceeds the merits of public disclosure.
(5) Any question concerning the transfer or other status of constitutional officer records arising between the state archives and a constitutional officer's office must be decided by a four-fifths vote of the members of the retention and disposition subcommittee provided for in 2-6-1109.
History: En. Sec. 19, Ch. 348, L. 2015.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 11. Executive Branch Records › 2-6-1114. Permanent records -- agency responsibilities -- state records center

2-6-1114. Permanent records -- agency responsibilities -- state records center.
(1) All permanent records no longer required in the current operation of the office where they are made or kept and all records of each agency or activity of the executive branch of state government that has been abolished or discontinued must be maintained by the agency or transferred to the state records center in accordance with approved records retention schedules.
(2) When records are transferred to the state records center, the transferring agency does not lose its rights of control and access. The state records center is merely a custodian of the agency records, and access is only by agency approval. Agency records for which the state records center acts as custodian may not be subpoenaed from the state records center but must be subpoenaed from the agency to which the records belong. The state records center may charge fees to cover the cost of records storage and servicing.
(3) Prior to transferring a permanent record to the state records center, the transferring agency shall consult with the state archivist to determine whether the record is also a historic record. If the record is found to be a historic record, it must be transferred to the Montana historical society in accordance with the provisions of 2-6-1112.
History: En. Sec. 20, Ch. 348, L. 2015.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 12. Local Government Records › 2-6-1201. Local government records committee -- composition and meetings

2-6-1201. Local government records committee -- composition and meetings.
(1) There is a local government records committee.
(2) The committee consists of the following eight members:
(a) the state archivist;
(b) the state records manager;
(c) a representative of the department of administration;
(d) two local government records managers appointed by the director of the Montana historical society;
(e) two local government records managers appointed by the secretary of state; and
(f) a person representing the Montana state genealogical society, appointed by the secretary of state, who shall serve as a volunteer.
(3) Committee members subject to appointment shall hold office for a period of 2 years beginning January 1 of the year following their appointment.
(4) Vacancies must be filled in the same manner they were filled originally.
(5) The committee shall elect a presiding officer and a vice presiding officer.
(6) The committee shall meet at least twice a year upon the call of the secretary of state or the presiding officer.
(7) Except for the member appointed in subsection (2)(f), members of the committee not serving as part of their compensated government employment must be compensated in accordance with 2-18-501 through 2-18-503 for each day in committee attendance. Members who serve as part of their compensated government employment may not receive additional compensation, but the employing governmental entity shall furnish, in accordance with the prevailing per diem rates, a reasonable allowance for travel and other expenses incurred in attending committee meetings.
History: En. Sec. 22, Ch. 348, L. 2015.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 12. Local Government Records › 2-6-1202. Local government records committee -- duties and responsibilities

2-6-1202. Local government records committee -- duties and responsibilities.
The local government records committee shall:
(1) approve, modify, or disapprove proposals for local government records retention and disposition schedules;
(2) appoint a subcommittee, known as the local government records destruction subcommittee, to handle requests for disposal of records that are not listed on an approved retention schedule. The subcommittee consists of the state archivist, one of the local government records managers, and the representative of the department of administration. Unless specifically authorized by statute or by the retention and disposition schedule, a local government public record may not be destroyed or otherwise disposed of without the unanimous approval of the subcommittee. When approval is required, a request for the disposal or destruction of local government records must be submitted to the subcommittee by the entity concerned. If there is not unanimous approval of the subcommittee, the issue of the disposition of a record must be referred to the local government records committee for approval. When approval is obtained from the subcommittee or from the local government records committee for the disposal of a record, the local government records committee shall consider the inclusion of a new category of record for which a disposal request is not required and shall update the schedule as necessary.
(3) establish a retention and disposition schedule for categories of records for which a disposal request is not required. The local government records committee shall publish the retention and disposition schedules. Updates to those schedules, if any, must be published at least annually.
(4) develop guidance for local governments to identify, maintain, and secure their essential records;
(5) respond to requests for technical advice on matters relating to local government records; and
(6) provide leadership and coordination in matters affecting the records of multiple local governments.
History: En. Sec. 23, Ch. 348, L. 2015; amd. Sec. 1, Ch. 678, L. 2023.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 12. Local Government Records › 2-6-1205. Disposal of local government public records prohibited prior to offering -- central registry -- notification

2-6-1205. Disposal of local government public records prohibited prior to offering -- central registry -- notification.
(1) A local government public record that is more than 50 years old may not be destroyed unless it is first offered to the Montana historical society, the state archives, Montana public and private universities and colleges, local historical museums, local historical societies, Montana genealogical groups, and the general public.
(2) The availability of a public record to be destroyed must be noticed to the entities listed in subsection (1) at least 30 days prior to disposal.
(3) (a) Claimed records must be given to entities in the order of priority listed in subsection (1).
(b) All expenses for the removal of claimed records must be paid by the entity claiming the records.
(c) The local government records committee shall establish procedures by which public records must be offered and claimed pursuant to this section.
(d) The local government records committee shall develop and maintain a central registry of the entities identified in subsection (1) who are interested in receiving notice of the potential destruction of public records pursuant to this section. The registry must be constructed to allow a local government entity to notify the local government records committee when the entity intends to destroy documents covered under this section and allow the local government records committee to subsequently notify the entities in the registry. A local government entity's notice to the local government records committee pursuant to this subsection (3)(d) and the records committee's notice to the entities listed on the registry fulfill the notification requirements of this section.
(4) A local government entity shall ensure that any record that contains confidential information or is otherwise protected from disclosure is not added to the central registry under subsection (3).
History: En. Sec. 24, Ch. 348, L. 2015; amd. Sec. 2, Ch. 678, L. 2023.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 15. State Agency Protection of Personal Information › 2-6-1502. Protection of personal information -- compliance -- extensions

2-6-1502. Protection of personal information -- compliance -- extensions.
(1) Each state agency that maintains the personal information of an individual shall develop procedures to protect the personal information while enabling the state agency to use the personal information as necessary for the performance of its duties under federal or state law.
(2) The procedures must include measures to:
(a) eliminate the unnecessary use of personal information;
(b) identify the person or state agency authorized to have access to personal information;
(c) restrict access to personal information by unauthorized persons or state agencies;
(d) identify circumstances in which redaction of personal information is appropriate;
(e) dispose of documents that contain personal information in a manner consistent with other record retention requirements applicable to the state agency;
(f) eliminate the unnecessary storage of personal information on portable devices; and
(g) protect data containing personal information if that data is on a portable device.
(3) Except as provided in subsection (4), each state agency that is created after October 1, 2015, shall complete the requirements of this section within 1 year of its creation.
(4) The chief information officer provided for in 2-17-511 may grant an extension to any state agency subject to the provisions of the Montana Information Technology Act provided for in Title 2, chapter 17, part 5. The chief information officer shall inform the governor, the office of budget and program planning, and the legislative finance committee of all extensions that are granted and of the rationale for granting the extensions. The chief information officer shall maintain written documentation that identifies the terms and conditions of each extension and the rationale for the extension.
History: En. Sec. 26, Ch. 348, L. 2015; amd. Sec. 3, Ch. 227, L. 2023.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 6. Public Records › Part 15. State Agency Protection of Personal Information › 2-6-1504. Immediate notification

2-6-1504. Immediate notification.
On discovery or notification of a security incident, a state agency shall provide immediate notification without unreasonable delay to the chief information security officer.
History: En. Sec. 1, Ch. 227, L. 2023.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 1. Studies and Reports › 2-7-101. Repealed

2-7-101. Repealed.
Sec. 21, Ch. 3, L. 1985.
History: En. Sec. 1, Ch. 93, L. 1969; R.C.M. 1947, 82-4001.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 1. Studies and Reports › 2-7-102. Repealed

2-7-102. Repealed.
Sec. 14, Ch. 125, L. 1983.
History: En. Sec. 2, Ch. 93, L. 1969; amd. Sec. 1, Ch. 134, L. 1971; R.C.M. 1947, 82-4002; amd. Sec. 1, Ch. 335, L. 1979.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 1. Studies and Reports › 2-7-103. Review of executive branch by governor

2-7-103. Review of executive branch by governor.
The office of the governor shall continuously study and evaluate the organizational structure, management practices, and functions of the executive branch and of each agency. The governor shall, by executive order or other means within the authority granted to the governor, take action to improve the manageability of the executive branch.
History: En. 82-1315 by Sec. 1, Ch. 238, L. 1973; R.C.M. 1947, 82-1315; amd. Sec. 2, Ch. 125, L. 1983; amd. Sec. 51, Ch. 61, L. 2007.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 1. Studies and Reports › 2-7-104. Revenue studies -- report to governor and legislature

2-7-104. Revenue studies -- report to governor and legislature.
The director of revenue shall study fiscal problems and tax structures of state and local governments and submit the studies to the governor and to the legislature in accordance with 5-11-210.
History: En. 82A-1804 by Sec. 1, Ch. 272, L. 1971; amd. Sec. 64, Ch. 391, L. 1973; R.C.M. 1947, 82A-1804(part); amd. Sec. 4, Ch. 112, L. 1991; amd. Sec. 4, Ch. 349, L. 1993; amd. Sec. 3, Ch. 261, L. 2021.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 1. Studies and Reports › 2-7-105. Tax information submitted

2-7-105. Tax information submitted.
It shall be the duty of all public officers of the state and of any municipality to give to the department of revenue information in their possession relating to taxation when required by the department and cooperate with and aid the department in every manner in its efforts to secure a fair, equitable, and just enforcement of the taxation and revenue laws of the state.
History: En. Sec. 15, Ch. 3, L. 1923; re-en. Sec. 2122.15, R.C.M. 1935; amd. Sec. 8, Ch. 516, L. 1973; R.C.M. 1947, 84-715.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-502. Short title -- purpose

2-7-502. Short title -- purpose.
(1) This part may be cited as the "State of Montana Single Audit Act".
(2) The purposes of this part are to:
(a) improve the financial management of local government entities with respect to federal, state, and local financial assistance;
(b) establish uniform requirements for financial reports and audits of local government entities;
(c) ensure constituent interests by determining that compliance with all appropriate statutes and regulations is accomplished;
(d) ensure that the financial condition and operations of the local government entities are reasonably conducted and reported;
(e) ensure that the stewardship of local government entities is conducted in a manner to preserve and protect the public trust;
(f) ensure that local government entities accomplish, with economy and efficiency, the duties and responsibilities of the entities in accordance with the legal requirements imposed and the desires of the public; and
(g) promote the efficient and effective use of audit resources.
History: En. 82-4517 by Sec. 3, Ch. 380, L. 1975; R.C.M. 1947, 82-4517; amd. Sec. 2, Ch. 489, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-504. Accounting methods

2-7-504. Accounting methods.
(1) Unless otherwise required by law, the department shall prescribe by rule the general methods and details of accounting for the receipt and disbursement of all money belonging to local government entities and shall establish in those offices general methods and details of accounting. All local government entity officers shall conform with the accounting standards prescribed by the department.
(2) The rules adopted by the department must be in accordance with:
(a) generally accepted accounting principles established by the governmental accounting standards board or its generally recognized successor; or
(b) a small government financial reporting framework that is defined by the department and derived from the generally accepted accounting principles referenced in subsection (2)(a).
History: En. 82-4530 by Sec. 16, Ch. 380, L. 1975; R.C.M. 1947, 82-4530; amd. Sec. 1, Ch. 1, Sp. L. June 1989; amd. Sec. 1, Ch. 11, Sp. L. June 1989; amd. Sec. 4, Ch. 489, L. 1991; amd. Sec. 6, Ch. 430, L. 1995; amd. Sec. 35, Ch. 278, L. 2001; amd. Sec. 1, Ch. 73, L. 2019.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-505. Audit scope and standards

2-7-505. Audit scope and standards.
(1) Each audit must be a comprehensive audit of the affairs of the local government entity and must be made in accordance with auditing standards and in accordance with federal regulations adopted by the department by rule.
(2) The department, with cooperation from state agencies, shall prepare a local government compliance supplement that contains state and federal regulations applicable to local government entities. Auditors shall use the compliance supplement adopted pursuant to this section in conjunction with government auditing standards adopted by the department to determine the compliance testing to be performed during an audit.
(3) When auditing a county or a consolidated government, auditors shall perform tests for compliance with state laws relating to receipts and disbursements of custodial funds maintained by the entity. Findings related to compliance tests must be reported in accordance with the reporting standards for financial audits prescribed in government auditing standards adopted by the department.
History: En. 82-4518 by Sec. 4, Ch. 380, L. 1975; R.C.M. 1947, 82-4518; amd. Sec. 2, Ch. 573, L. 1981; amd. Sec. 5, Ch. 489, L. 1991; amd. Sec. 36, Ch. 278, L. 2001; amd. Sec. 1, Ch. 185, L. 2019.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-506. Audit by independent auditor

2-7-506. Audit by independent auditor.
(1) The department may prepare and maintain a roster of independent auditors authorized to conduct audits of local government entities. The roster must be available to local government entities subject to the reporting requirements of 2-7-503.
(2) The department, in consultation with the board, shall adopt rules governing the:
(a) criteria for the selection of the independent auditor;
(b) procedures and qualifications for placing applicants on the roster;
(c) procedures for reviewing the qualifications of independent auditors on the roster to justify their continuance on the roster; and
(d) fees payable to the department for application for placement on the roster.
(3) An audit made 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. The department must be a party to the contract and the contract may not be executed until it is signed by the department. All contracts for conducting audits must be in a form prescribed or approved by the department.
(4) The department shall notify the local government entity of a required audit, the date the report is due, and the requirement that the local government entity, the independent auditor, and the department must be parties to the contract.
(5) If a local government entity fails to present a signed contract to the department for approval within 90 days of receipt of the audit notice, the department may designate an independent auditor to perform the audit. The costs incurred by the department in arranging the audit must be paid by the local government entity to the department in the manner of other claims against the local government entity.
History: En. 82-4525 by Sec. 11, Ch. 380, L. 1975; R.C.M. 1947, 82-4525; amd. Sec. 3, Ch. 573, L. 1981; amd. Sec. 1, Ch. 260, L. 1989; amd. Sec. 6, Ch. 489, L. 1991; amd. Sec. 1, Ch. 146, L. 2011.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-507. Duty of officers to aid in audit

2-7-507. Duty of officers to aid in audit.
The officers and employees of the local government entities referred to in this part shall provide all reasonable facilities for the audit and shall furnish all information to the independent auditor necessary for the conduct of the audit.
History: En. 82-4527 by Sec. 13, Ch. 380, L. 1975; R.C.M. 1947, 82-4527; amd. Sec. 7, Ch. 489, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-508. Power to examine books and papers

2-7-508. Power to examine books and papers.
The independent auditor may examine any books, papers, accounts, and documents in the office or possession of any local government entity.
History: En. 82-4528 by Sec. 14, Ch. 380, L. 1975; R.C.M. 1947, 82-4528; amd. Sec. 8, Ch. 489, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-509. Audits of school-related organizations -- costs -- criteria

2-7-509. Audits of school-related organizations -- costs -- criteria.
(1) The legislative auditor may conduct or have conducted an audit of the records of organizations referred to in 2-3-203(2).
(2) Before public funds are transferred to the organization, a member shall obtain the organization's written consent to:
(a) the audit provided for in subsection (1); and
(b) pay the costs of the audit.
(3) An audit of an organization performed under this section must determine if:
(a) the organization is carrying out only those activities or programs authorized by state law and its articles of incorporation, bylaws, and policies;
(b) expenditures are made in furtherance of authorized activities in accordance with applicable laws and its articles of incorporation, bylaws, and policies;
(c) the organization properly collects and accounts for all revenues and receipts arising from its activities in accordance with generally accepted accounting principles;
(d) the assets of the organization or the assets in its custody are adequately safeguarded and are controlled and used in an efficient manner; and
(e) reports and financial statements fully disclose the nature and scope of the activities conducted and provide a proper basis for evaluating the operations of the organization.
History: En. Sec. 1, Ch. 678, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-511. Access to public accounts -- suspension of officer in case of discrepancy

2-7-511. Access to public accounts -- suspension of officer in case of discrepancy.
(1) The independent auditor may count the cash, verify the bank accounts, and verify all accounts of a public officer whose accounts the independent auditor is examining under law.
(2) If an officer of any county, city, town, school, or other local government entity refuses to provide the independent auditor access during an audit of the officer's accounts to cash, bank accounts, or any of the papers, vouchers, or records of that office or if the independent auditor finds a shortage of cash, the independent auditor shall immediately file a preliminary report showing the refusal of that officer or the existence of the shortage and the approximate amount of the shortage with the respective county, city, or town attorney and the governing body of the local government entity.
(3) Upon filing of the statement, the officer of the local government entity shall after notice and the opportunity for a hearing be suspended from the duties and emoluments of office and the governing body of the local government entity shall appoint a qualified person to the office pending completion of the audit.
(4) Upon the completion of the audit by the independent auditor, if a shortage of cash existed in the accounts of the officer, the independent auditor shall notify the governing body of the local government entity of the shortage.
(5) If the governing body finds that a shortage exists and that the officer suspended is, by act or omission, responsible for the shortage, the officer's right to the office is forfeited and the report of the audit must be referred to the county attorney.
History: En. 82-4526 by Sec. 12, Ch. 380, L. 1975; R.C.M. 1947, 82-4526; amd. Sec. 1, Ch. 43, L. 1981; amd. Sec. 9, Ch. 489, L. 1991; amd. Sec. 52, Ch. 61, L. 2007.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-512. Exit review conference

2-7-512. Exit review conference.
Upon completion of each audit, the independent auditor is required to hold with the appropriate officials an exit review conference in which the audit results must be discussed.
History: En. 82-4519 by Sec. 5, Ch. 380, L. 1975; R.C.M. 1947, 82-4519; amd. Sec. 10, Ch. 489, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-513. Content of audit report and financial report

2-7-513. Content of audit report and financial report.
(1) The audit reports must comply with the reporting requirements of government auditing standards issued by the U.S. comptroller general and federal regulations adopted by department rule.
(2) The department shall prescribe general methods and details of accounting for the financial report for local government entities other than schools. The financial report must be submitted in a form required by the department. The superintendent of public instruction shall prescribe the general methods and details of accounting for financial reports for schools.
History: En. 82-4520 by Sec. 6, Ch. 380, L. 1975; R.C.M. 1947, 82-4520; amd. Sec. 11, Ch. 489, L. 1991; amd. Sec. 7, Ch. 430, L. 1995; amd. Sec. 37, Ch. 278, L. 2001.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-514. Filing of audit report and financial report

2-7-514. Filing of audit report and financial report.
(1) Completed audit reports must be filed with the department. Completed financial reports must be filed with the department as provided in 2-7-503(1). The state superintendent of public instruction shall file with the department a list of school districts subject to audit under 2-7-503(3). The list must be filed with the department within 6 months after the close of the fiscal year.
(2) At the time that the financial report is filed or, in the case of a school district, when the audit report is filed with the department, the local government entity shall pay to the department a filing fee. The department shall charge a filing fee to any local government entity required to have an audit under 2-7-503, which fee must be based upon the costs incurred by the department in the administration of this part. Notwithstanding the provisions of 20-9-343, the filing fees for school districts required by this section must be paid by the office of public instruction. The department shall adopt the fee schedule by rule based upon the local government entities' revenue amounts, except that a local government meeting the requirements of 2-7-503(3)(b) shall pay only the administrative fee set by the department in rule.
(3) Copies of the completed audit and financial reports must be made available by the department and the local government entity for public inspection during regular office hours.
History: En. 82-4521 by Sec. 7, Ch. 380, L. 1975; R.C.M. 1947, 82-4521(1), (3); amd. Sec. 1, Ch. 169, L. 1985; amd. Sec. 2, Ch. 140, L. 1989; amd. Sec. 12, Ch. 489, L. 1991; amd. Sec. 1, Ch. 509, L. 1995; amd. Sec. 2, Ch. 439, L. 2017.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-515. Actions by governing bodies

2-7-515. Actions by governing bodies.
(1) Upon receipt of the audit report, the governing bodies of each audited local government entity shall review the contents and within 30 days shall submit to the department a corrective action plan detailing what action or actions they plan to take on any findings or recommendations contained in the audit report. If no findings or recommendations appear in the audit report, notification is not required. If the local government entity is a school district, the local government entity shall also send a copy of the corrective action plan to the superintendent of public instruction.
(2) Notification to the department shall include a statement by the governing bodies that noted findings or recommendations for improvement have been acted on by adoption as recommended, adoption with modification, or rejection.
(3) Within 30 days of receipt of the corrective action plan, the department shall notify the entity of the acceptance or rejection of the corrective measures. If the department and the local government entity fail to agree on the corrective measures, a conference between the parties must be held within 30 days of the department's decision not to accept the local government entity's corrective measures. Failure to resolve significant findings or implement corrective measures must result in the withholding of financial assistance in accordance with rules adopted by the department pending resolution or compliance.
(4) In cases where a violation of law or nonperformance of duty is found on the part of an officer, employee, or board, the officer, employee, or board must be proceeded against by the attorney general or county, city, or town attorney as provided by law. If a written request to do so is received from the department, the county, city, or town attorney shall report the proceedings instituted or to be instituted, relating to the violations of law and nonperformance of duty, to the department within 30 days after receiving the request. If the county, city, or town attorney fails or refuses to prosecute the case, the department shall refer the case to the attorney general to prosecute the case at the expense of the local government entity.
History: En. 82-4521, 82-4522 by Secs. 7, 8, Ch. 380, L. 1975; R.C.M. 1947, 82-4521(2), 82-4522; amd. Sec. 1, Ch. 128, L. 1991; amd. Sec. 13, Ch. 489, L. 1991; amd. Sec. 1, Ch. 268, L. 2019.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-516. Audit fees

2-7-516. Audit fees.
(1) The compensation to the independent auditor for conducting an audit must be agreed upon by the governing body or managing or executive officer of the local government entity and the independent auditor and must be paid in the manner that other claims against the local government entity are paid.
(2) The compensation for an audit conducted by the department must be paid by the local government entity to the state treasurer and be deposited in an enterprise fund to the credit of the department.
History: En. 82-4524 by Sec. 10, Ch. 380, L. 1975; R.C.M. 1947, 82-4524; amd. Sec. 4, Ch. 573, L. 1981; amd. Sec. 3, Ch. 277, L. 1983; amd. Sec. 14, Ch. 489, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-517. Penalties -- rules to establish fine

2-7-517. Penalties -- rules to establish fine.
(1) Except as provided in 15-1-121(12)(b), when a local government entity has failed to file a report as required by 2-7-503(1)or make payment required by 2-7-514(2) within 60 days, the department may issue an order stopping payment of any state financial assistance to the local government entity or may charge a late payment penalty as adopted by rule. Upon receipt of the report or payment of the filing fee, all financial assistance that was withheld under this section must be released and paid to the local government entity.
(2) In addition to the penalty provided in subsection (1), if a local government entity has not filed the audits or reports pursuant to 2-7-503 within 180 days of the dates required by 2-7-503, the department shall notify the entity of the fine due to the department and shall provide public notice of the delinquent audits or reports.
(3) The department may grant an extension to a local government entity for filing the audits and reports required under 2-7-503 or may waive the fines, fees, and other penalties imposed in this section if the local government entity shows good cause for the delinquency or demonstrates that the failure to comply with 2-7-503 was the result of circumstances beyond the entity's control.
(4) The department shall adopt rules establishing a fine, not to exceed $100, based on the cost of providing public notice under subsection (2), for failure to file audits or reports required by 2-7-503 in the timeframes required under that section.
History: En. Sec. 6, Ch. 573, L. 1981; amd. Sec. 3, Ch. 3, L. 1985; amd. Sec. 15, Ch. 489, L. 1991; amd. Sec. 7, Ch. 42, L. 1997; amd. Sec. 2, Ch. 289, L. 2011; amd. Sec. 3, Ch. 173, L. 2017; amd. Sec. 2, Ch. 373, L. 2023.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-518. Deposit of fees

2-7-518. Deposit of fees.
All fees received from local government entities must be deposited in the enterprise fund to the credit of the department of administration for administration of Title 2, chapter 7, part 5.
History: En. Sec. 7, Ch. 573, L. 1981; amd. Sec. 3, Ch. 277, L. 1983; amd. Sec. 1, Ch. 287, L. 1983; amd. Sec. 16, Ch. 489, L. 1991; amd. Sec. 9, Ch. 483, L. 2001.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-521. Publication

2-7-521. Publication.
(1) (a) After the expiration of the 30-day period provided for in 2-7-515(1), the local government entity shall send a copy of each audit report to a newspaper of general circulation in the area of the local government entity. However, each county audit report must be sent to the official newspaper of the county.
(b) For an audit report of a county or an incorporated city or town, the county, city, or town shall send to the appropriate newspaper a copy of a summary of significant findings regarding the audit report. The summary, which may not exceed 800 words, must be prepared by the independent auditor and contain a statement indicating that it is only a summary and is not intended to be used as an audit report.
(2) For an audit report of a county or incorporated city or town, a newspaper is required to publish only:
(a) the summary of significant findings provided for in subsection (1)(b); and
(b) a statement to the effect that the audit report is on file in its entirety and open to public inspection.
(3) For an audit report of a local government entity other than a county or incorporated city or town, the newspaper is required to publish only the statement provided for in subsection (2)(b) and a statement providing that the audited local government entity will send a copy of the audit report to any interested person upon request.
(4) Publication costs must be borne by the audited local government entity.
History: En. 82-4523 by Sec. 9, Ch. 380, L. 1975; R.C.M. 1947, 82-4523; amd. Sec. 1, Ch. 386, L. 1983; amd. Sec. 3, Ch. 140, L. 1989; amd. Sec. 1, Ch. 607, L. 1989; amd. Sec. 17, Ch. 489, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-522. Report review

2-7-522. Report review.
(1) The department shall determine whether the provisions of this part have been complied with by the independent auditor.
(2) Upon receipt of the audit report from the local government entity the department shall review the report. If the department determines the reporting requirements have not been met, the department shall notify the local government entity and the independent auditor submitting the report of the significant issues of noncompliance. The notification must include issuance of a statement of deficiencies by the department. The department shall allow the independent auditor 60 days to correct the identified deficiencies.
(3) If the corrections are not made within 60 days of the department's notice, the department shall notify the local government entity that the report has not been received. Failure to submit a report shall result in the withholding of payment of the audit fee pending resolution of the identified deficiencies or receipt of a corrected report.
(4) Upon review of the report, if the department determines the independent auditor has issued a report that fails to meet the auditing standards referred to in 2-7-513 or contains false or misleading information, the department shall notify the board.
(5) The department shall review the audit report findings and the response of the governing body or executive or managing officer of the local government entity submitted under 2-7-515. When the findings concern financial assistance, the department shall notify the state agency that is responsible for disbursing the state or federal funding.
(6) The department must have access in its office to the working papers of the independent auditor.
History: En. Sec. 18, Ch. 489, L. 1991.
2023 Montana Code Annotated › Title 2. Government Structure and Administration › Chapter 7. Studies, Reports, and Audits › Part 5. Audits of Political Subdivisions › 2-7-523. Cause of action -- failure to file reports and audits or resolve findings

2-7-523. Cause of action -- failure to file reports and audits or resolve findings.
(1) If a local government entity fails to file an annual financial report with the department as required by 2-7-503(1), to complete and submit an audit or financial review to the department as required by 2-7-503(3), or to resolve significant audit findings or implement corrective measures as required by 2-7-515(3) within 2 years of the applicable deadlines, a person identified in subsection (2) of this section who has received a written determination from the department under 2-7-524(3)(c) or (4)(b) may bring a cause of action against the local government entity for failure to comply with the local government entity's fiduciary requirements.
(2) The following parties may bring a cause of action under the provisions of subsection (1):
(a) any person who pays property taxes to the local government entity;
(b) any elected officer of any local taxing jurisdiction that collects revenue from or distributes revenue to the local government entity;
(c) any person residing within the jurisdictional boundaries of the local government entity who can demonstrate a specific personal and legal interest, as distinguished from a general interest, and has been or is likely to be specially and injuriously affected by the local government entity's failure to meet the requirements as set forth in subsection (1).
(3) The cause of action must be filed in the district court in the county where the local government entity is located.
(4) In addition to any other penalty provided by law, the court may grant relief that it considers appropriate, including but not limited to providing declaratory relief, appointing a financial receiver for the local government entity, or compelling a mandatory duty required under this part that is imposed on a state or local government officer or local government entity. If a party identified in subsection (2) prevails in an action brought under this section, that party must be awarded costs and reasonable attorney fees.
History: En. Sec. 4, Ch. 268, L. 2019.