Stricken language would be deleted from and underlined language would be added to present law.
Act 907 of the Regular Session
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 647
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5 By: Senator J. Dismang
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7 For An Act To Be Entitled
8 AN ACT TO AMEND THE LAW CONCERNING THE ANNUAL AUDITS
9 AND PROCEDURES OF WATER AND SEWER SYSTEMS; AND FOR
10 OTHER PURPOSES.
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13 Subtitle
14 TO AMEND THE LAW CONCERNING THE ANNUAL
15 AUDITS AND PROCEDURES OF WATER AND SEWER
16 SYSTEMS.
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19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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21 SECTION 1. Arkansas Code 14-234-119 is amended to read as follows:
22 14-234-119. Annual audits and procedures.
23 (a)(1) A county, municipality, improvement district, or not-for-profit
24 association or entity receiving fees from customers for providing sewage
25 services shall obtain an annual financial audit of the system if the system
26 has at least seven hundred fifty (750) two thousand (2,000) service
27 connections during a fiscal year.
28 (2) A county, municipality, improvement district, or not-for-
29 profit association or entity receiving fees from customers for providing
30 water services shall obtain an annual financial audit of the system if the
31 system has at least one thousand (1,000) two thousand (2,000) service
32 connections during a fiscal year.
33 (b)(1)(A) A county, municipality, improvement district, or not-for-
34 profit association or entity receiving fees from customers for providing
35 sewage services and having at least one hundred (100) but less than seven
36 hundred fifty (750) two thousand (2,000) service connections during a fiscal
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 SB647
1 year shall obtain an annual audit or an annual agreed-upon procedures and
2 compilation report.
3 (B) A county, municipality, improvement district, or not-
4 for-profit association or entity receiving fees from customers for providing
5 water services and having at least one hundred (100) but less than one
6 thousand (1,000) two thousand (2,000) service connections during a fiscal
7 year shall obtain an annual audit or an annual agreed-upon procedures and
8 compilation report.
9 (2) The agreed-upon procedures and compilation report engagement
10 shall be conducted in accordance with standards established by the American
11 Institute of Certified Public Accountants and subject to minimum procedures
12 prescribed by the Legislative Joint Auditing Committee.
13 (c) The audits or agreed-upon procedures and compilation reports shall
14 be completed within one (1) year following each system's fiscal year end.
15 (d) Each entity shall choose and employ accountants who are licensed
16 and in good standing with the Arkansas State Board of Public Accountancy.
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19 APPROVED: 4/26/21
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