Section 6505 Of Article 1. Joint Powers Agreements From California Government Code >> Division 7. >> Title 1. >> Chapter 5. >> Article 1.
6505
. (a) The agreement shall provide for strict accountability of
all funds and report of all receipts and disbursements.
(b) In addition, and provided a separate agency or entity is
created, the public officer performing the functions of auditor or
controller as determined pursuant to Section 6505.5, shall either
make or contract with a certified public accountant or public
accountant to make an annual audit of the accounts and records of
every agency or entity, except that the officer need not make or
contract for the audit in any case where an annual audit of the
accounts and records of the agency or entity by a certified public
accountant or public accountant is otherwise made by any agency of
the state or the United States only as to those accounts and records
which are directly subject to such a federal or state audit. In each
case the minimum requirements of the audit shall be those prescribed
by the Controller for special districts under Section 26909 and shall
conform to generally accepted auditing standards.
(c) When an audit of an account and records is made by a certified
public accountant or public accountant, a report thereof shall be
filed as public records with each of the contracting parties to the
agreement and also with the county auditor of the county where the
home office of the joint powers authority is located and shall be
sent to any public agency or person in California that submits a
written request to the joint powers authority. The report shall be
filed within 12 months of the end of the fiscal year or years under
examination.
(d) When a nonprofit corporation is designated by the agreement to
administer or execute the agreement and no public officer is
required to perform the functions of auditor or controller as
determined pursuant to Section 6505.5, an audit of the accounts and
records of the agreement shall be made at least once each year by a
certified public accountant or public accountant, and a report
thereof shall be filed as a public record with each of the
contracting parties to the agreement and with the county auditor of
the county where the home office of the joint powers authority is
located, and shall be sent to any public agency or person in
California that submits a written request to the joint powers
authority. These reports shall be filed within 12 months after the
end of the fiscal year or years under examination.
(e) Any costs of the audit, including contracts with, or
employment of certified public accountants or public accountants, in
making an audit pursuant to this section shall be borne by the agency
or entity and shall be a charge against any unencumbered funds of
the agency or entity available for the purpose.
(f) All agencies or entities may, by unanimous request of the
governing body thereof, replace the annual special audit with an
audit covering a two-year period.
(g) Notwithstanding the foregoing provisions of this section to
the contrary, agencies or entities shall be exempt from the
requirement of an annual audit if the financial statements are
audited by the Controller to satisfy federal audit requirements.