Section 118-5-4 - Fiscal Management4.1Budget. There shall be a formal, annualized line item budget, approved by the Governing Authority, indicating anticipated revenues and expenses for the current fiscal year.4.1.1 Revenue shall be documented by source.4.1.2 Expenses shall be categorized by line item, and shall be specific to each discrete program, service, facility or other management division.4.1.3 Revisions to the budget shall be clearly documented.4.1.4 Review and approval of the budget by the Governing authority shall be clearly documented, including date of approval.4.2Policies. The agency shall maintain written policies regarding the fiscal management of the agency. These shall include, but not necessarily be limited to who is responsible for: 4.2.1 purchasing and inventory;4.2.2 accounts receivable;4.2.4 setting of fees or charges for services;4.2.5 notification to clients of fee schedules and means to document such notification.4.3Audits. The agency shall have an annual audit or review of financial operation of overall agency operation and of each discrete program, service, facility or other management division, which shall conform to the requirements of General Audit and Accounting Principles (GAAP), or an inspection specifically approved in writing by OSA, and which shall be conducted by an independent auditor who does not have a conflict of interest, as defined by agency policy. 4.3.1 Audits shall be performed in accordance with applicable state and Federal regulations and shall accurately reflect the agency's financial position.4.3.2 Audit reports shall be reviewed and accepted by the Governing Authority.4.3.3 Documentation of such review shall be maintained, including the date of the review. Audit reports and the documentation of review shall be subject to the review of the Licensing Authority.