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K-State Research and Extension
123 Umberger Hall
Manhattan, KS 66506-3401

January 23, 2018

New Audit Requirements

Submitted by Jim Lindquist

In response to legislation (K.S.A. 75-117) which raised the municipal audit thresholds and requires the use of agreed upon procedures or enhanced agreed upon procedures in lieu of an audit under certain circumstances, the State of Kansas Municipal Services Department of Administration has issued new audit guidelines:

• An audit, performed by a licensed certified public accountant, is required if annual receipts from any source total over $500,000.
• Municipalities with receipts in excess of $275,000 but less than $500,000 are required to have agreed upon procedures, in lieu of an audit, and if at that level for three consecutive years, enhanced agreed upon procedures are required in the third year.
• Municipalities with receipts of $275,000 or less do not meet the agreed upon procedures or audit requirements of the legislation, thus no audit is required.

Agreed Upon Procedures and Enhanced Agreed Upon Procedures have been added to the Use Of Funds document as item C3. The document can be found on the KSRE Employee Resources Website under the Financial Resources link: http://www.ksre.k-state.edu/employee_resources/county_district_financial_resources/. Click on Audit Requirements for Local Extension Units.