The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Municipal Audits

Reference Number: MTAS-119
Tennessee Code Annotated
Reviewed Date: October 14, 2015
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Each municipality’s governing body is responsible for obtaining annual audits of "all departments, boards, and agencies under its jurisdiction that receive and disburse funds ... [including] general funds, highway funds, school funds, and public utilities." The official accounting records of the municipality are required to be closed and available for audit no later than two months after the close of the fiscal year. The audit must be completed "as soon as practicable after the end of the fiscal year". T.C.A. § 6-56-101.

Copies of the audit must be furnished to the mayor, the "chief executive officer," each member of the governing body, and the comptroller and "shall also be made available to the press". T.C.A. § 6-56-105. A copy is required to be placed in the main branch of the municipality’s public library and also may be posted on the Internet. T.C.A. § 6-56-104.

Such audits must meet minimum standards prescribed by the state comptroller and shall be approved by that office. The audits may be made by certified public accountants, public accountants, or auditors from the comptroller’s office. If a city fails to have an audit, the comptroller may require one at the city’s expense. T.C.A. § 6-56-105.

The Department of Audit in the comptroller’s office may establish minimum standards for audits by the internal audit staffs of local governments. The department also may require all such audits to contain a statement of compliance with those standards. T.C.A. § 4-3-304(9).

Responsible: