The Performance, Medicaid and Local Government Audits Division: conducts performance audits on state programs; conducts operational audits on systems, processes, and procedures; performs regulatory board audits pursuant to the Sunset Act; drafts Fiscal Notes on retirement and regular Bills; administers non-profit contracts; administers reports of all government retirement systems; performs Medicaid audits on nursing homes, hospitals and other providers; performs financial audits of municipalities requesting assistance; and performs special projects. The Local Government Audits Section performs desk reviews of legally-required audit reports submitted by local governments, and, as directed by law, notifies governing authorities, performing auditors, appropriate General Assembly members, and newspapers of discrepancies, failure to correct discrepancies, or failure to file required reports. The Section also performs financial audits for municipalities that request this service.In 1980, Georgia Code Annotated 36-81-7 required all local governments to cause to be made annual financial audits and to submit them to the State Auditor for review. Implementation of this requirement did not occur until 1984. Prior to this change, the State Auditor was responsible primarily for auditing counties for funds allocated for road and bridge construction projects. (See RG19-2-15) The documents of this series relate to all city and county financial audits and financial audits of municipalities requesting assistance. Included are: annual or biennial audit reports prepared by independent certified CPA's (these reports contain: financial statements that include balance sheets, statements of revenues, expenditures, changes in financial condition and earnings or equity; and notes to financial statements that summarize significant accounting policies, state violations of finance related legal and contractual provisions and whether or not litigation is pending and its potential effect on the government's financial condition, and include comments on various fund activities, obligations and liabilities; and supporting schedules); "Local Government Audit Review" checklists used in performing desk reviews; and correspondence to and from government officials and performing auditors relating to requests for audit report revisions, deficiencies that must be corrected and requests from municipalities for audit services.