Tennessee Code Title 69. Waters, Waterways, Drains and Levees § 69-6-142

(a) The board of directors of each district shall cause an annual financial review of the district's receipts, disbursements, and balances to be made of the books and records of the district. The department of agriculture shall be responsible for determining that the annual financial reviews are made in accordance with procedures prescribed by the department of agriculture.

(b) The annual financial reviews shall be made by representatives appointed by the district's board of directors. If the governing body of the district fails or refuses to have the annual financial review made, then the department of agriculture may appoint a certified public accountant, or direct its department to make the annual financial review, the cost of such review to be paid by the district.

(c) The comptroller of the treasury may require an audit or investigation of a district if the comptroller believes it is necessary to ascertain or correct errors, irregularities, or defaults in the management and disbursement of funds controlled by the district, to be conducted by the department of audit or a certified public accountant approved by the comptroller; provided, that the comptroller or certified public accountant may also charge the district for such an audit.

(d) Each district shall prepare and submit a report regarding the annual financial review of its business affairs and transactions to the department of agriculture, the Tennessee soil and water conservation commission, and the comptroller of the treasury.