Financial Procedure FAQ 1

Is a city or village mandated by law to have a yearly audit performed by a certified public accountant?

Municipalities with a population of 25,000 or more must have an annual audit conducted in accordance with generally accepted auditing standards.  Such communities are required by the Department of Revenue to file annual audited financial reports.  See Wis. Admin. Code, Tax secs. 16.02 and 16.05.

Also, municipalities that have adopted the alternative system of approving financial claims against the municipal treasury under Wis. Stat. sec. 66.0609 must adopt an ordinance which provides in part that the governing body shall require an annual audit of its financial transactions and accounts by a public accountant. Wis. Stat. sec. 66.0609(3).

In addition, municipalities may be compelled to conduct a financial audit under other circumstances. For example, if a municipality receives a federal or state grant for a designated program, a program audit may be required as a condition of that grant.