2012 -- S 2316

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LC00964

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TOWNS AND CITIES -- AUDIT OF ACCOUNTS AND INSTALLATION OF

SYSTEMS

     

     

     Introduced By: Senators DiPalma, Doyle, DaPonte, and Sosnowski

     Date Introduced: February 07, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 45-10 of the General Laws entitled "Audit of Accounts and

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Installation of Systems" is hereby amended by adding thereto the following section:

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     45-10-17. Municipal accounting compliance. – (a) The office of auditor general and the

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division of municipal finance shall promulgate a uniform system of accounting, including a chart

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of accounts based on the recommendations of the advisory council on municipal finance, and

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require all accounts of the municipality to be kept in accordance therewith; provided, that in any

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case in which the uniform system of accounting is not practicable, the office of auditor general in

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conjunction with the division of municipal finance shall determine the manner in which the

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accounts shall be kept.

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     (b) For the purpose of securing a uniform system of accounting and a chart of accounts

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the advisory council on municipal finances, as defined in section 45-10-16 may make such

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surveys of the operation of municipalities as they shall deem necessary.

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     (c) If any municipality fails to install and maintain the uniform system of accounting,

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including a chart of accounts, or fails to keep its accounts and interdepartmental records, or

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refuses or neglects to make the reports and to furnish the information in accordance with the

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method prescribed by the office of auditor general and the division of municipal finance or

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hinders or prevents the examination of accounts and financial records, the auditor general and the

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division of municipal finance may make a report to the general assembly, specifying the nature

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and extent of the failure, refusal, neglect, hindrance, or prevention, and the general assembly is

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hereby authorized and directed to review the matter so reported. If the general assembly shall find

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that failure, refusal, neglect, hindrance, or prevention exists and that the municipality should

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properly comply in the matter so reported, the general assembly shall direct the municipality, in

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writing, to so comply. If the failure, refusal, neglect, hindrance, or prevention shall continue for a

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period of ten (10) days following the written direction, the general assembly may withhold

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distribution of state aid to the municipality.

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     SECTION 2. This act shall take effect upon passage.

     

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LC00964

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES -- AUDIT OF ACCOUNTS AND INSTALLATION OF

SYSTEMS

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     This act would create a uniform system of auditing for municipal finances.

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     This act would take effect upon passage.

     

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LC00964

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S2316