Sarbanes Oxley applicability to Municipalities 2



  • Anyone have any comments regarding whether the municipal sector will look to implement any of the requirements of Sarbane Oxley even though its not subject to them?



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  • Government municipalities (at least in my area) are severely behind in technology. I doubt the SOX Act will even make them consider bringing their resources up to date. Most municipalilties are struggling with more important matters. They don’t want to worry about a law that doesn’t even pertain to them.



  • I don’t agree that municipalities can ignore the provisions of SOX. The issues of Financial Statement fraud, fiscal responsibility and performance measurement is just as relevant for government entities as it is for commercial organizations and other non-profits. I have seen discussions at the State DOJ and Audit Department levels that suggest that the monitoring and accountability for municipalities will come under similar scrutiny in the foreseeable future as are other organizations.
    If the Government Agencies themselves are not technology-equipped for the task, CPA firms that specialize in auditing municipalities will take this on as part of their audits, and, potentially increase the audit expenditures.


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