In Tennessee, the records of all local governments must be audited annually.  T.C.A. § 9-3-211.  The state comptroller of the treasury through the Division of Local Government Audit is given the authority to establish accounting standards (T.C.A. §§ 5-8-501, 9-3-212(b)) and auditing standards. T.C.A. § 9-3-212(b).  The county legislative body contracts with a certified public accountant or the state Division of Local Government Audit to make the annual audit.  T.C.A. § 9-3-212. However, the county must receive approval of a private auditor from the Division of Local Government Audit and comply with other requirements of that office. The contract cost to use the state department of audit is $0.36 cents for each person in the county based on the most recent federal census with an annual 3% fee increase set to begin July 1, 2017.  T.C.A. § 9-3-210.  Regardless of who performs the audit, a certified copy of it must be submitted to the state comptroller. T.C.A. § 9-3-213. In the event state-shared funds are misappropriated or misused, the state is authorized to withhold state funds for the amount misused.  Also, the state may collect on the individual official's surety bond if the misused funds result from that official's unlawful or dishonest acts.  T.C.A. §§ 9-3-301, 9-3-302.  If a public servant, with intent to deceive, to knowingly misrepresents information to an auditor, this action constitutes a Class C misdemeanor.  T.C.A. § 39-16-407.