A Review of Best Practices for Internal Control of Limited Purpose Entities

At the request of the Legislative Audit Committee, President Niederhauser and Speaker Hughes, the Office of the Legislative Auditor General performed a review of the governance practices, policies and procedures of Local and Special Service Districts, interlocal agencies, governmental non-profits, and other independent government agencies (Special Purpose Entities).  This audit report has been generated as a result of that review.

Please review the checklist of Best Practices for Board Members of Special Purpose Entities, along with the transmittal letter from President Niederhauser and Speaker Hughes found in Appendix A on pages 63 through 66.  The checklist provides specific guidance addressing the weaknesses observed in many entities by providing affirmative guidance on policies and/or procedures that should be addressed and implemented to protect public funds, and to assist public entities in fulfilling their fiduciary responsibility to the citizens whom they serve.

Please use the Best Practices Checklist on an ongoing basis to evaluate and improve the effectiveness of your entity in protecting the interests and resources of the citizens of the State of Utah.