This bill revises various provisions governing comptroller of the treasury audit and accounting requirements, as follows:
(1) Under present law, the finance department in a county operating under the County Financial Management System of 1981 administers the finances of a county for all funds of the various departments, agencies and boards that are handled by the county trustee. The department is responsible for establishing a system of fiscal management, control, accounting, budgeting, purchasing, and cash management that "conforms to generally accepted principles of governmental accounting and is in substantial agreement with the recommendations of the national council of governmental accounting, and the rules and regulations established by the comptroller of the treasury, commissioner of education, and state law."
This bill revises the above provisions to instead require that the system "conform to generally accepted accounting principles and be in substantial agreement with the comptroller of the treasury uniform audit manual, the rules established by the commissioner of education, and state law." This revision will also apply to the maintenance of the department's system of fiscal procedure, control, and centralized accounting.
(2) Under present law, as provided in the Utility District Law of 1937, the utility management review board has the authority to review rates charged and services provided by public utility districts. The review may only be initiated by a petition containing the genuine signatures of at least 10 percent of the customers within the authorized area of the public utility district, and the review by the board is held only upon public hearings, after notice. Present law requires the board to review the petitions pertaining to rates "on the basis of all provisions governing the establishment of rates, provisions of any bond resolutions or other debt contract instruments binding upon such utility districts, and rules and regulations promulgated by the comptroller of the treasury."
This bill requires the utility management review board to review the petitions based on "the uniform audit manual prepared by the comptroller of the treasury" instead of "rules and regulations promulgated by the comptroller."
(3) Present law requires the commissioners of each utility district to create an audited annual financial report of the books and records of their district. The comptroller, through the department of audit, is responsible for determining that such audits are prepared in accordance with generally accepted governmental auditing standards, and that such audits meet the minimum standards prescribed by the comptroller.
Present law requires the comptroller to prepare "a uniform accounting manual and promulgate other rules and regulations" as are required to assure that the books and records are kept in accordance with generally accepted accounting principles and that audit standards prescribed by the comptroller are met.
This bill requires the comptroller to prepare "a uniform audit manual" instead of "a uniform accounting manual along with other rules and regulations."
(4) Under present law, the following entities are required to annually audit their books and records:

(A) Each political subdivision special taxing district, board, commission, educational cooperative, intergovernmental cooperative or other governmental agency of a local government;
(B) Each emergency communications district;
(C) Joint and cooperative entities under the Education Cooperation Act;
(D) Comprehensive career or technical education facilities acting jointly;
(E) The East Tennessee regional agribusiness marketing authority; and
(F) The Cumberland regional business and agribusiness marketing authority.
Under present law, the comptroller, through the department of audit, is responsible for promulgating rules and regulations to assure that such audits are prepared in accordance with generally accepted governmental auditing standards and meet the minimum standards prescribed by the comptroller.
This bill revises the above provisions to instead require the comptroller to prepare a uniform audit manual as is required to assure that the books and records are kept in accordance with generally accepted accounting principles and that the minimum audit standards prescribed by the comptroller are met.

Statutes affected:
Introduced: 49-6-2202(b)(5), 49-6-2202, 49-6-2206(b)(2), 49-6-2206