Present law requires the governing body of each municipality to make an annual audit of the accounts and records of all departments, boards, and agencies under its jurisdiction that receive and disburse funds. The audit must include general funds, highway funds, school funds, public utilities, and municipal courts. Present law requires such audits to be completed as soon as practicable after the end of the fiscal year of the municipality. The preparer of the audit must furnish one copy of each audit to the mayor, chief executive officer, each member of the governing body, and the comptroller of the treasury ("comptroller). Copies of each audit must also be made available to the press. This bill requires the audits to now be completed and submitted to the comptroller no later than six months following the end of the municipality's fiscal year. As a penalty for a municipality having two or more outstanding late annual audits, this bill requires sales tax revenue collected and distributed by the state to the municipality to be reduced by an amount mutually agreed upon by the comptroller and the commissioner of revenue. However, the sales tax revenue reduction must not exceed 15% of the total amount due to the municipality in a fiscal year, until the municipality is in compliance with this bill. The amounts so reduced must be held in reserve by the department of revenue and allocated to the municipality after the municipality complies with this bill. The comptroller may waive such a penalty in accordance with policies and procedures established by the comptroller.

Statutes affected:
Introduced: 6-56-105(e), 6-56-105